Zhejiang Yongqiang: Expected to turn from profit to loss in the first half of 2026, with a net profit loss of RMB 3 million to RMB 5.5 million

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Zhejiang Yongqiang Announcement: It is expected that for the first half of 2026, the net profit attributable to shareholders of the listed company will be a loss of RMB 3 million to RMB 5.5 million, compared with a profit of RMB 513 million in the same period last year, resulting in a turnaround from profit to loss. The net profit after deducting non-recurring gains and losses will be RMB 173 million to RMB 178 million, down 43.46%-45.05% year on year. Basic earnings per share will be a loss of RMB 0.0014 to RMB 0.0025. Reasons for the change in performance: Although revenue from the principal business has increased, gross profit margin has declined year on year due to the appreciation of the RMB exchange rate and rising raw material prices; exchange rate fluctuations have led to a significant increase in net foreign exchange losses; the business involving the company’s held stocks and equity-to-receive swap derivatives, in total, is expected to affect net profit by approximately -RMB 182 million due to the decline in prices in the secondary market. In the same period last year, there were compensation and resettlement payments of RMB 93 million; no such matter occurred in the current period.
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