Chongqing Sifang New Material Co. Ltd.

Sifang New Materials disclosed its 2026 semi-annual report on August 29. In the first half of the year, it achieved total operating revenue of 428 million yuan, down 20.82 percent year on year, but net profit attributable to the parent company was 7.32 million yuan, turning from a loss to a profit compared with the same period last year. Net profit after deducting non-recurring items was a loss of 0.83 million yuan, sharply narrowing from a loss of 43.35 million yuan in the same period last year. Net cash flow from operating activities was 45.87 million yuan, down 67.82 percent year on year. The company focuses on the research, production and sales of ready-mixed concrete, while also producing sand and gravel aggregates for construction. During the reporting period, the company's total non-recurring gains and losses were 8.15 million yuan, including debt restructuring gains and losses of 7.93 million yuan.

Sifang New Materials disclosed an earnings forecast, expecting net profit attributable to the parent company of 6 million to 9 million yuan in the first half of 2026, compared with a loss of 26.3261 million yuan in the same period last year, achieving a turnaround from loss to profit. The company's operating revenue for the same period is expected to be 428 million yuan, down 20.82 percent year on year. Deducted non-recurring net loss is expected to be 0.8 million to 1.2 million yuan, significantly narrowing from a loss of 43.3452 million yuan a year earlier. The improvement in performance is mainly due to an adjustment in the value-added tax calculation method. Starting from January 1, 2026, the company's commercial concrete and similar products shifted from simplified taxation to general taxation, and compliant deductible VAT input tax is no longer included in inventory production costs, reducing unit product costs and improving gross margins. At the same time, the company stepped up efforts to collect accounts receivable, resulting in a decrease in credit impairment compared with the same period last year. Sifang New Materials' main business is the research, development, production and sales of commercial concrete, with its main market in Chongqing.