Hongxing Shares released its 2026 interim report on August 26. During the reporting period, the company achieved operating revenue of 843 million yuan, up 2.49% year on year. Net profit attributable to the parent company was 15.7892 million yuan, up 37.50% year on year. Non-GAAP net profit was 11.351 million yuan, up 35.09% year on year. The profit growth was mainly driven by product mix optimization and cost reduction and efficiency improvement. Revenue from the high-margin homewear category reached 454 million yuan, up 10.86% year on year, raising its share of total revenue to 53.82%, with a gross margin of 41.50%, up 1.97 percentage points year on year. However, net cash flow from operating activities was negative 34.609 million yuan, a significant widening of net outflow compared with the same period last year, mainly due to increased payments to suppliers and higher operating expenses. Ending inventory was approximately 660 million yuan, up 10.86% from the beginning of the period, with inventory turnover days reaching 205 days, warranting attention to destocking pressure. The company said it will leverage its vertically integrated advantages across the entire supply chain and its multi-brand portfolio to benefit from rising industry concentration, while facing inventory impairment risks and intensifying industry competition.
Guangdong Hongxing Industrial Co. Ltd.Net profit up 37.5% driven by product mix optimization and cost reduction, though cash flow and inventory pressures noted.
