Sifang New Materials disclosed an earnings forecast, expecting net profit attributable to the parent company of 6 million to 9 million yuan in the first half of 2026, compared with a loss of 26.3261 million yuan in the same period last year, achieving a turnaround from loss to profit. The company's operating revenue for the same period is expected to be 428 million yuan, down 20.82 percent year on year. Deducted non-recurring net loss is expected to be 0.8 million to 1.2 million yuan, significantly narrowing from a loss of 43.3452 million yuan a year earlier. The improvement in performance is mainly due to an adjustment in the value-added tax calculation method. Starting from January 1, 2026, the company's commercial concrete and similar products shifted from simplified taxation to general taxation, and compliant deductible VAT input tax is no longer included in inventory production costs, reducing unit product costs and improving gross margins. At the same time, the company stepped up efforts to collect accounts receivable, resulting in a decrease in credit impairment compared with the same period last year. Sifang New Materials' main business is the research, development, production and sales of commercial concrete, with its main market in Chongqing.
Chongqing Sifang New Material Co. Ltd.Expects net profit turnaround from loss to profit in H1 2026, driven by VAT method change and improved credit impairment.