Guotong Corporation released its 2026 interim report on August 26. During the reporting period, the company achieved operating revenue of 170 million yuan, down 10.47 percent year on year. Net loss attributable to the parent company was 101 million yuan, widening 297.93 percent year on year. Net loss after deducting non-recurring items was 69 million yuan, widening 176.33 percent year on year. Revenue from the company's core product, PCCP pipes, accounted for 86.36 percent of total revenue, but its gross margin was only 11.62 percent, down 25.27 percentage points year on year, dragging the overall gross margin of the building materials segment down to 12.28 percent. The decline in performance was mainly due to fewer orders and a sharp drop in the gross margin of PCCP products. At the same time, the company made a provision of about 25.41 million yuan for losses from pending litigation, and recorded an investment loss of 7.84 million yuan from the disposal of long-term equity investments. Although operating cash flow turned positive, the company still faces risks such as a high asset-liability ratio and frozen assets related to litigation. Going forward, attention should be paid to the stabilization of gross margins and the progress of litigation.
XinJiang GuoTong Pipeline Co LtdInterim report shows revenue down, net loss widened sharply, and core product gross margin plunged.
