Huilong Shares released its 2026 semi-annual report. First-half revenue was 8.547 billion yuan, up 3.26% year on year. Net profit attributable to the parent was 113 million yuan, a slight increase of 1.51%. Non-GAAP net profit attributable to the parent was 60.2156 million yuan, surging 73.4% year on year. However, the high growth in non-GAAP net profit was built on a low base in the same period last year, and non-recurring gains and losses within net profit attributable to the parent reached as much as 52.37 million yuan, accounting for nearly half. Among them, fair value changes and disposal gains on financial assets of 45.5654 million yuan provided important support. Even more striking, net cash flow from operating activities was negative 417 million yuan, plunging 283% year on year. The company explained this as a decrease in cash received from selling goods and providing services. Accounts receivable surged from 578 million yuan at the end of last year to 1.361 billion yuan, an increase of 135%. Inventory balance was 3.346 billion yuan, up about 300 million yuan from the end of last year. In the first half, inventory write-down losses of 24.02 million yuan were already recognised. Agricultural materials products, which accounted for 81.83% of revenue, had a gross margin of only 4.89%, down 0.09 percentage points year on year. Fine chemical products had a gross margin of 20.30%, up 2.40 percentage points year on year. Subsidiary Haihua Technology, as the first domestic company to connect the m-cresol, thymol and L-menthol industrial chain, maintained solid market share for its core products. On the debt side, short-term borrowings soared from 805 million yuan to 1.647 billion yuan, more than doubling. Restricted monetary funds reached as high as 522 million yuan, mainly used as margin for bank acceptance bills. In the secondary market, Huilong Shares fell from a March high of 7.19 yuan to a June low of 4.38 yuan, a maximum decline of more than 30%. As of the close on August 12, the stock reported 5.12 yuan, with a total market value of less than 4.8 billion yuan and a cumulative decline of about 14% for the year.
Anhui Huilong Agricultural Means of Production Co LtdOperating cash flow plunged 283% and accounts receivable surged 135%, indicating deteriorating cash collection and potential liquidity issues.
