Skshu Paint Co Ltd

Skshu Paint released its 2026 interim report. First-half revenue was 6.04 billion yuan, up 3.8% year on year, but net profit attributable to the parent was 301 million yuan, down 30.9% year on year, and net operating cash flow was only 8.78 million yuan, a sharp year-on-year decline of 97.5%. Second-quarter revenue was 3.6 billion yuan, down 2.2% year on year, and net profit attributable to the parent was 194 million yuan, down 41.2% year on year. The company said operating costs rose 7.01% year on year, outpacing revenue growth and squeezing gross margin, while continued provisions for credit impairment losses and asset impairment losses, as well as a year-on-year reduction of 62.69 million yuan in government subsidies, all dragged on profit. In addition, the company has a large accounts receivable balance, with a closing book balance of 5.056 billion yuan and a bad debt provision of 1.568 billion yuan. A high proportion of customers are linked to the property chain, so impairment pressure persists.

SKSHU Paint's actual controller and controlling shareholder Hong Jie, on July 29, 2026, placed 2.8009 million of his unrestricted tradable shares into a supplementary pledge, with Huaneng Guicheng Trust Co., Ltd. as the pledgee. This pledge accounts for 0.47% of Hong Jie's holdings in the company and 0.32% of the company's total share capital. After this supplementary pledge, Hong Jie's cumulative pledged shares reached 142.8793 million, representing 24.08% of his holdings and 16.14% of the company's total share capital.