Zhejiang Huada New Materials Co Ltd

Huada New Materials released its 2026 interim report. Total operating revenue was 4.215 billion yuan, and net profit attributable to the parent company was 30.2502 million yuan, down 56.04% from the same period last year, a decrease of 38.5646 million yuan. Net cash inflow from operating activities was 382 million yuan. The company's asset-liability ratio was 73.16%, gross margin was 4.43%, ROE was 1.23%, and diluted earnings per share was 0.06 yuan, down 55.36% year-on-year. The number of shareholders was 16,300, and the top ten shareholders held 73.75% of the total share capital.

Huada New Materials has disclosed its earnings forecast, expecting attributable net profit for the first half of 2026 to be between 25 million and 36 million yuan, a year-on-year decline of 47.69% to 63.67%. Deducted non-recurring net profit is expected to be between 16.5 million and 24.5 million yuan, a year-on-year decline of 54.41% to 69.29%. The company is mainly engaged in the research, development, production and sales of multi-functional color-coated sheets, hot-dip galvanized sheets and their base plates. The change in performance is mainly due to short-term pressure on sales prices and narrowing purchase-sales spreads leading to a decline in gross margin, relatively high per-unit depreciation costs after the trial production of the Nantong project production line, and increased exchange losses due to the appreciation of the renminbi.