Guangdong Banbao Toy Co Ltd

ST Mubang announced that its wholly-owned subsidiary Guangxi Mubang High-Tech New Energy Company has been ordered by the Inspection Bureau of the Guilin Municipal Tax Service, State Taxation Administration, to repay retained value-added tax refunds and late payment fees totaling about 103 million yuan, including late fees of 26.22 million yuan, because it did not meet the conditions for VAT retained refunds. Guangxi Mubang had not officially commenced production from its establishment through the end of 2024 and had no manufacturing sales revenue, so it did not qualify for the retained refund. The company fully repaid the retained VAT refund of 76.04 million yuan in May 2026, and now needs to pay late fees of 26.22 million yuan. The company stated that this tax treatment does not involve administrative penalties, is expected to reduce current net profit by about 26.219 million yuan, and does not involve corrections to prior financial data.

ST Mubang released its 2026 interim report, with net profit attributable to the parent company at negative 221 million yuan, widening the loss by 8.1384 million yuan compared with the same period last year. Total operating revenue was 168 million yuan, up 19.27 percent year on year. Net cash outflow from operating activities was 154 million yuan, an increase of 137 million yuan from a year earlier. The asset-liability ratio rose to 104.58 percent, and gross margin was negative 58.00 percent.

ST Mubang disclosed its earnings forecast, expecting a net loss attributable to the parent company of 170 million to 200 million yuan in the first half of 2026, compared with a loss of 212 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 150 million to 180 million yuan, compared with a loss of 209 million yuan a year earlier. The company's main businesses include the research, development, production and sales of photovoltaic monocrystalline silicon rods and wafers, as well as educational toy operations. Reasons for the performance change include supply-demand imbalances in the photovoltaic industry and intense market competition leading to persistently low product selling prices, as well as weak downstream demand and orders falling short of expectations. At the same time, the company paid an administrative penalty for information disclosure violations, and a wholly-owned subsidiary confirmed litigation losses that were included in non-recurring gains and losses.