Jinneng Science&Tech Co Ltd

Jinneng Technology released its 2026 interim report, with net profit attributable to the parent company at negative 589 million yuan, swinging from profit to loss. Total operating revenue was 8.524 billion yuan, down 0.28 percent year on year. Net cash flow from operating activities was negative 538 million yuan, down 218.48 percent year on year. The company's latest asset-liability ratio was 61.82 percent, gross margin was negative 3.98 percent, return on equity was negative 7.81 percent, and diluted earnings per share was negative 0.69 yuan.

Jinneng Technology disclosed its earnings forecast, expecting a net loss attributable to the parent company of 588 million to 598 million yuan in the first half of 2026, compared with a profit of 26.4349 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 600 million to 625 million yuan, compared with a loss of 32.8612 million yuan in the same period last year. The company stated that the change in performance was mainly affected by three factors. First, the conflict between the Middle East and the United States and Iran led to a sharp increase in the prices of polypropylene and propylene raw materials, but downstream demand was insufficient, making it difficult to pass on costs through product selling prices, and previously locked-in low-price orders resulted in significant losses. Second, the overall weakness in the coke and carbon black industries, with high upstream raw material prices and downstream demand falling short of expectations, narrowed price spreads and squeezed profit margins. Third, the annual shutdown and maintenance of some units at subsidiaries increased related fixed costs.