Kehua Holdings Co Ltd Class A

Kehua Holdings released its 2026 interim report. Total operating revenue was 1.036 billion yuan, down 4.02 percent year on year. Net profit attributable to the parent company was a loss of 3.8 million yuan, swinging from profit to loss and down 59.4 million yuan from the same period last year, a decline of 106.84 percent. Net cash inflow from operating activities was 81.08 million yuan, down 73.62 percent year on year. The company's asset-liability ratio was 47.85 percent, gross margin was 13.53 percent, return on equity was negative 0.26 percent, and diluted earnings per share was negative 0.02 yuan.

Kehua Holdings disclosed its earnings forecast, expecting a net loss attributable to the parent of 3 million to 4.5 million yuan in the first half of 2026, compared with a profit of 55.5951 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 10 million to 15 million yuan, versus a profit of 27.8472 million yuan a year earlier. The company stated that the decline in performance was mainly due to intensified market competition leading to lower sales volumes and prices of major products, reduced gross profit, and significant exchange losses caused by the appreciation of the renminbi. In addition, gains from changes in fair value and government subsidies fell sharply compared with the same period last year. The company said it will step up market development, optimize product mix, strengthen lean management, and deepen exchange rate risk management to enhance profitability.