MEGA P&C Advanced Materials (Shanghai) Company Limited

Mega P&C Advanced Materials released its 2026 interim report, with net profit attributable to the parent company at 37.8576 million yuan, down 65.61% from the same period last year. Total operating revenue was 834 million yuan, down 6.04% year-on-year. Net cash flow from operating activities was negative 24.2808 million yuan, down 113.48% year-on-year. The latest gross margin was 19.36%, down 4.14 percentage points from a year earlier. Diluted earnings per share were 0.36 yuan, down 65.38% year-on-year.

Mega P&C released its 2026 interim report. Affected by a decline in container coatings business and front-loaded expenses for new businesses, both revenue and profit fell, but the new energy segment has surpassed marine equipment to become the main profit pillar. During the reporting period, the company achieved operating revenue of 834 million yuan, down 6.04 percent year on year. Net profit attributable to the parent company was 37.86 million yuan, down 65.61 percent year on year. Non-GAAP net profit was 30.17 million yuan, down 68.27 percent year on year. New energy segment sales revenue was 337 million yuan, up 20.22 percent year on year, with its revenue share rising to 40.41 percent and gross profit contribution reaching as high as 70.29 percent. The company plans to distribute a cash dividend of 3.20 yuan per 10 shares, including tax, to all shareholders, totaling approximately 34.15 million yuan, accounting for 90.21 percent of current net profit attributable to the parent company. Second quarter revenue and net profit rose 32.43 percent and 176.05 percent quarter on quarter respectively, indicating that short-term negative factors are being absorbed.

Mega Paints disclosed its earnings forecast, expecting a net profit attributable to the parent company of 35 million to 41 million yuan for the first half of 2026, a year-on-year decline of 62.76% to 68.21%. The company stated that although sales revenue and gross profit from wind power coatings increased year-on-year, sales revenue and gross profit from container coatings fell year-on-year due to declining industry demand, and the revenue contribution from new businesses has a lag effect, while selling expenses also increased.