Daqing Huake released its 2026 interim report. In the first half, net profit attributable to the parent company was 3.8 million yuan, down 58.1 percent year-on-year, while net profit attributable to the parent company excluding non-recurring items was a loss of 380,000 yuan, down 104.7 percent year-on-year. The company's operating revenue was 981 million yuan, up 2.2 percent year-on-year, but operating costs rose 3.98 percent year-on-year. The increase in costs outpaced revenue growth, squeezing gross profit margins in the main business. Among these, revenue from C5 fraction products fell 14.19 percent year-on-year, and operating costs for this product exceeded its operating revenue, resulting in negative gross profit. Although revenue from C9 fractions, petroleum resin, and polypropylene products grew, it was not enough to offset the losses from C5 products. Profit for the period was mainly supported by non-recurring gains and losses totaling 4.1767 million yuan, primarily from gains on disposal of non-current assets of 3.7257 million yuan and some government subsidies. Excluding these items, the main business itself was in a loss-making state. At the end of the reporting period, current liabilities were 89.8057 million yuan, a sharp increase from 46.9244 million yuan at the beginning of the period. This was mainly because accounts payable rose from 19.5253 million yuan at the beginning of the period to 42.7205 million yuan, other current liabilities rose from 1.2856 million yuan to 13.8609 million yuan, and accrued expenses increased significantly. Short-term operating liability pressure rose. The company had no short-term or long-term bank borrowings and no interest-bearing debt.
Daqing Huake Co LtdFirst-half net profit halved and non-GAAP net profit turned to a loss, with main business loss-making.
