Zhongqi New Materials: Net profit of 3.7711 million yuan in the first quarter, a year-on-year increase of 191.23%

Zhongqi New Materials Announcement, operating revenue in the first quarter of 2026 was 87.1711 million yuan, a year-on-year increase of 7.65%. Net profit was 3.7711 million yuan, a year-on-year increase of 191.23%. The main reasons for the company’s operating performance and cash flow changes during the reporting period are as follows:
Main reasons for profit improvement:

1. The company’s net profit for 2025 was negative, mainly due to provisions for asset impairment losses and credit impairment losses. These impairment provisions were fully recognized at the end of 2025, and no new significant impairments were made in the first quarter of 2026, having a minimal impact on current period profit and loss;
2. The company’s interest expense for 2025 was 10.95 million yuan, mainly due to interest expenses from convertible corporate bonds. The aforementioned convertible bonds were delisted and terminated on December 30, 2025, and will no longer generate related interest expenses in 2026, having a minimal impact on current period profit and loss;
3. In the first quarter of 2026, the proportion of export sales increased, and the gross profit margin of export business is relatively high, driving the overall sales gross profit increase;
   Main reasons for cash flow changes:
   Net cash flow from operating activities increased, mainly due to an increase in collections upon maturity and an increase in customer prepayments received during the reporting period.