Orient International Enterprise released its 2026 interim report on August 27. Leveraging the coordinated efforts of its three core businesses—goods trade, modern logistics, and comprehensive health—the company maintained operational resilience amid external demand pressure, with core business profitability steadily improving. At the same time, fair value fluctuations in financial assets weighed on current-period profit to a certain extent, and operating cash flow experienced a phased outflow due to the progress of export tax rebates. Financial data show that during the reporting period, the company achieved operating revenue of 15.958 billion yuan, up 3.09 percent year on year; net profit attributable to the parent company was 123 million yuan, up 5.82 percent year on year; and net profit attributable to the parent company excluding non-recurring items was 140 million yuan, up 17.21 percent year on year. Net cash flow from operating activities was negative 878 million yuan, with the net outflow widening compared with the same period last year, mainly because export tax rebates for some trading subsidiaries were still being processed. Revenue and profit grew in tandem, and the growth rate of net profit excluding non-recurring items was significantly higher than that of net profit attributable to the parent company, reflecting an improvement in core business earnings quality. However, fair value change losses on financial assets within non-recurring items suppressed overall performance. In terms of business structure, the company's main operations cover textile and apparel import and export, international logistics, and medical device supply chain services. During the reporting period, the trade segment deepened its self-operated plus integrated overseas supply chain system and promoted the transformation of its sweater business from OEM to ODM and OTM, effectively offsetting cost pressure. The logistics segment coordinated efforts across ocean freight, air freight, and warehousing, optimized global route layouts, and expanded incremental markets beyond the United States. The comprehensive health segment focused on medical equipment tendering, import, and supply chain services, and tapped incremental demand from new hospital construction and expansion projects. Although traditional textile and apparel exports faced the challenge of shrinking external demand, the company achieved overall stability in import and export business scale by focusing on high-value-added products and expanding into emerging markets. The performance growth was mainly driven by improved gross margins from core business quality and efficiency gains, as well as an increase in investment income, with investment income from the associated company Suzhou New District contributing significantly. However, the decline in the fair value of held financial assets resulted in negative fair value change gains, which to some extent offset the growth achievements of the core business. Looking ahead, escalating global trade protectionism and supply chain restructuring remain the main risks. Stricter rules of origin reviews and logistics cost fluctuations caused by geopolitical conflicts may squeeze profit margins. In addition, raw material price volatility and two-way exchange rate fluctuations also pose challenges to cost control. The company will respond to uncertainty by building a highly resilient supply chain and using financial instruments to hedge exchange rate and raw material risks. Going forward, attention should be paid to the recovery of operating cash flow as export tax rebates return, as well as the continued positive impact of a rising share of high-value-added products on gross margins.
Orient International Enterprise LtdCore business profitability improves with net profit excluding non-recurring items up 17.21%.
Suzhou New District Hi Tech Industrial Co Ltd