Skshu Paint released its 2026 interim report. First-half revenue was 6.04 billion yuan, up 3.8% year on year, but net profit attributable to the parent was 301 million yuan, down 30.9% year on year, and net operating cash flow was only 8.78 million yuan, a sharp year-on-year decline of 97.5%. Second-quarter revenue was 3.6 billion yuan, down 2.2% year on year, and net profit attributable to the parent was 194 million yuan, down 41.2% year on year. The company said operating costs rose 7.01% year on year, outpacing revenue growth and squeezing gross margin, while continued provisions for credit impairment losses and asset impairment losses, as well as a year-on-year reduction of 62.69 million yuan in government subsidies, all dragged on profit. In addition, the company has a large accounts receivable balance, with a closing book balance of 5.056 billion yuan and a bad debt provision of 1.568 billion yuan. A high proportion of customers are linked to the property chain, so impairment pressure persists.
Skshu Paint Co LtdNet profit fell 30.9% and operating cash flow plunged 97.5% due to rising costs, impairments, and reduced subsidies.
