Tian Di Science & Technology Co Ltd

Tiandi Science & Technology released its 2026 interim report. Total operating revenue was 12.565 billion yuan, down 11.01% year-on-year. Net profit attributable to the parent company was 735 million yuan, down 64.68% year-on-year. Net cash flow from operating activities was negative 3.173 billion yuan, an increase of 630 million yuan compared with the same period last year. The company's asset-liability ratio was 44.56%, gross margin was 29.52%, ROE was 2.93%, and diluted earnings per share was 0.18 yuan. The number of shareholders was 75,100, and the top ten shareholders held 64.65% of the total share capital.

Ningxia Tiandi Benniu Transmission Technology, an indirectly controlled subsidiary of Tiandi Science and Technology, has been fined 300,000 yuan for environmental violations. Under Article 112, Paragraph 1, Item 3 and Paragraph 2 of the Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste, the company was fined 300,000 yuan, and the penalty information was disclosed by the relevant regulatory authority on July 17, 2026. The administrative penalty decision, document number Yinhuan Fa [2026] No. 048, shows that during an on-site inspection, 22 waste oil drums were found stacked in the open about 50 meters north of the hazardous waste temporary storage room at the Tiandi Benniu plant, with six of the drums containing waste cutting fluid and waste lubricating oil. Tiandi Benniu is mainly engaged in the manufacture and sale of gears, gear reducers and gearboxes, as well as metal surface treatment, with an annual output of 1,700 reducers.

Tiandi Science & Technology has disclosed its earnings forecast, estimating that net profit attributable to the parent company for the first half of 2026 will be between 709 million and 758 million yuan, a year-on-year decline of 63.6% to 65.9%. Deducted non-recurring net profit is expected to be between 633 million and 665 million yuan, down 36.8% to 39.8% year-on-year. The main reason for the sharp decline in performance is that in the first half of 2025, its sub-subsidiary Tiandi Wangpo recognized a disposal gain of 2.527 billion yuan from the transfer of its equity in Qinnan Energy, while there is no such non-recurring gain or loss in the same period of 2026. Based on the closing price on July 14, the company's price-to-earnings ratio is approximately 17.55 to 18.35 times, the price-to-book ratio is about 0.8 times, and the price-to-sales ratio is about 0.69 times.