Huida Sanitary Ware Co Ltd

Huida Sanitary Ware disclosed its semi-annual report on the evening of August 27. Affected by the continued adjustment of the domestic real estate industry and weak end-market demand, the company swung from profit to loss in the first half of the year compared with the same period last year. Data shows that the company achieved operating revenue of 1.148 billion yuan in the first half of 2026, down 19.41 percent year on year. Net loss attributable to shareholders of the listed company was 80.21 million yuan, a year-on-year decline of 546.31 percent. Net loss after deducting non-recurring items was 107 million yuan, compared with a loss of 29.86 million yuan in the same period last year. The company said the decline in performance was mainly affected by factors such as the real estate industry adjustment, intensifying market competition, international geopolitical conflicts, the cancellation of export tax rebates, and exchange rate fluctuations. Previously, the company's controlling subsidiary Beiliu New Shengda transferred 100 percent equity in Guangxi New Gaosheng and related claims for 1 yuan. The subsidiary was insolvent, with an appraised value of negative 63.08 million yuan. The transaction has been completed, and Guangxi New Gaosheng is no longer included in the consolidated financial statements.

Huida Sanitary Ware disclosed its earnings forecast, expecting a net loss attributable to shareholders of 72 million to 90 million yuan in the first half of 2026, compared with a profit of 17.9718 million yuan in the same period last year. The company expects revenue of 1.148 billion yuan for the period, down 19.41 percent year on year. Its non-recurring net loss is expected to be 96 million to 120 million yuan, compared with a loss of 29.8585 million yuan a year earlier. The change in performance was mainly affected by multiple factors, including adjustments in the domestic real estate industry, weak end-user demand, intensified competition in the sanitary ware market putting pressure on retail and engineering businesses, as well as international geopolitical conflicts, the cancellation of export tax rebate policies, and increased exchange losses caused by exchange rate fluctuations. The company said it is currently in a phase of deep strategic transformation, systematically adjusting its organization and omni-channel operation management mechanisms, with revenue scale under phased pressure. However, its asset-liability structure remains robust, and its ability to sustain operations and withstand risks is relatively good.

Huida Sanitary Ware announced that its holding subsidiary Beiliu New Shengda plans to transfer its 100% equity in Guangxi New Gaosheng and the related debt claims of the company and Beiliu New Shengda against Guangxi New Gaosheng to Shengli Huafu. The equity transfer price is 1 yuan, and the debt claim transfer amount is 68 million yuan. This transaction is expected to reduce the company's net profit attributable to the parent by approximately 32 million yuan in 2026.