Jihua Group Corp Ltd

601718.CG▼

ST Jihua's 2026 interim report shows net loss of 288 million yuan, widening year-on-year

ST Jihua released its 2026 interim report, with net profit attributable to the parent company at negative 288 million yuan, a loss expansion of 209 million yuan compared with the same period last year. The company's total operating revenue was 2.411 billion yuan, down 24.84 percent year-on-year. Net cash flow from operating activities was negative 624 million yuan, an increase of 272 million yuan compared with the same period last year, achieving growth for two consecutive years. The company's latest asset-liability ratio was 33.52 percent, down 9.26 percentage points from the same period last year. Gross margin was 10.20 percent, down 3.81 percentage points year-on-year. Return on equity was negative 2.42 percent, down 1.79 percentage points from the same period last year. Diluted earnings per share was negative 0.07 yuan, a decrease of 0.05 yuan compared with the same period last year.

601718.CG ▼

Jiemian·5dRead more ▾

601718.CG▼

ST Jihua's first-half 2026 revenue was 2.411 billion yuan, with losses widening

ST Jihua disclosed its 2026 semi-annual report. In the first half, total operating revenue was 2.411 billion yuan, down 24.84% year on year. Net loss attributable to the parent was 288 million yuan, compared with a loss of 79.03 million yuan in the same period last year. Net loss after deducting non-recurring items was 328 million yuan, compared with a loss of 146 million yuan a year earlier. Net cash flow from operating activities was negative 624 million yuan, versus negative 897 million yuan in the prior-year period. Basic loss per share was 0.066 yuan, and the weighted average return on equity was negative 2.39%.

601718.CG ▼

中国证券报·5dRead more ▾

601718.CG▼

ST Jihua's first-half loss widens to 288 million yuan

ST Jihua released its 2026 interim report, with net profit attributable to the parent company widening to a loss of 288 million yuan. Operating revenue was 2.41 billion yuan, down 24.8 percent year on year. Net profit attributable to the parent after deducting non-recurring items was a loss of 328 million yuan. Net operating cash flow was negative 624 million yuan, an improvement of 30.4 percent year on year. Second-quarter operating revenue was 1.06 billion yuan, down 32.5 percent year on year, and net profit attributable to the parent was a loss of 167 million yuan. The company said its operations were affected by the bidding rhythm of some traditional key customers and phased qualification factors, and it is actively rectifying the situation, focusing on its core business, and improving quality and efficiency.

601718.CG ▼

财中社·6dRead more ▾

601718.CG▲

ST Jihua to Acquire 49% Stake in Hubei Jihua Knitting for 99.093 Million Yuan, Achieving Full Ownership

ST Jihua announced that it plans to acquire a 49% stake in Hubei Jihua Knitting Co., Ltd. from Xinxing Jihua Investment Co., Ltd. for 99.093 million yuan. After the transaction, ST Jihua will directly and indirectly hold 100% of Hubei Jihua Knitting, achieving full ownership. This transaction constitutes a related-party transaction but does not constitute a major asset restructuring.

601718.CG ▲

CLS·28dRead more ▾

601718.CG▼4

ST Jihua Fined RMB 7 Million for Disclosure Violations, Inflated Revenue Exceeded RMB 5 Billion

ST Jihua has been fined RMB 7 million by the China Securities Regulatory Commission for illegal information disclosure. An investigation found that a wholly-owned subsidiary recognized land sale revenue across periods, leading to a reduction in total profit of RMB 502 million in the 2020 annual report, accounting for 60.26 percent of the disclosed total profit for that period. In addition, the company inflated operating revenue through financing trade and agency business, inflating revenue by RMB 5.098 billion and RMB 2.998 billion in 2018 and 2019 respectively, representing 22.48 percent and 14.17 percent of the disclosed operating revenue for those periods. In 2020 and 2021, revenue was inflated by RMB 551 million and RMB 1.013 billion respectively, accounting for 3.68 percent and 6.54 percent of the disclosed operating revenue for those periods. The company has been ordered to rectify the issues and given a warning. Responsible individuals including former chairmen Li Yiling and Yuan Haili have also been fined varying amounts. ST Jihua stated it will correct errors and make retrospective adjustments to its financial reports, and pledged to improve the quality of information disclosure.

601718.CG ▼

财中社·29dRead more ▾

601718.CG

ST Jihua: Related-party transaction estimates based on upper limits; procurement prices no higher than independent third parties

ST Jihua has responded to shareholders' right of suggestion regarding the resubmission for review of a related-party transaction proposal after it was vetoed by minority shareholders. The company stated that the total estimated amount of daily related-party transactions for 2026 has increased by approximately 368.08 percent compared to the actual amount in 2025, mainly because it jointly established a supply chain company with its controlling shareholder, Xinxing Cathay International Group, and Xinxing Ductile Iron Pipes. Some raw materials will gradually be procured from this supply chain company, and the amount under the "procurement of goods" item is expected to increase by 220 million yuan as a result. At the same time, production capacity improvements in certain business segments have led to reasonable growth. The company has consistently applied the principle of "upper limit management" to related-party transaction estimates, and the 2026 estimates are based on the maximum possible upper limits. In addition, the final transaction prices for procurement from the supply chain company will not be higher than comparable prices for procurement from independent third parties, nor will they be higher than the prices it charges to other non-related customers. In the first quarter of 2026, ST Jihua achieved revenue of 1.348 billion yuan and a net loss attributable to the parent company of 122 million yuan.

601718.CG 000778.CS

财中社·37dRead more ▾