Xiamen XGMA Machinery Co Ltd

XGMA Machinery released its 2026 interim report. During the reporting period, the company's total operating revenue was 357 million yuan, up 14.75 percent year-on-year, but net profit attributable to the parent company was a loss of 51.21 million yuan, swinging from profit to loss year-on-year and down 1,622.50 percent. Net cash flow from operating activities was negative 203 million yuan, a decrease of 139 million yuan year-on-year. The company's asset-liability ratio was 28.46 percent, gross margin was 8.70 percent, return on equity was negative 3.63 percent, and diluted earnings per share was negative 0.03 yuan. The number of shareholders was 55,400, and the top ten shareholders held 55.29 percent of total share capital.

Xiamen XGMA Machinery disclosed a performance forecast, estimating a net loss attributable to the parent company of 42 million to 58 million yuan in the first half of 2026, compared with a profit of 3.36 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 54 million to 70 million yuan, compared with a loss of 26.69 million yuan a year earlier. The company explained that the change in performance was mainly due to a decline in gross profit from shield tunneling machine leasing as infrastructure construction such as urban subway projects slowed down, intensified competition in the construction machinery industry leading to lower gross margins for earthmoving machinery sales, and exchange losses from foreign currency fluctuations that increased financial expenses. In addition, the company made supplementary provisions for credit impairment losses on accounts receivable, and the amount of recoveries of historical bad debts, gains on asset disposals, and investment income were all lower than the same period last year, resulting in a year-on-year decline in non-operating income.