Changhong Meiling Co Ltd B

Changhong Meiling has released its 2026 interim report. Net profit attributable to the parent company for the first half was 57.98 million yuan, down 86.10 percent year on year. Net profit excluding non-recurring items was negative 8.96 million yuan, swinging from profit to loss. The company achieved operating revenue of 16.14 billion yuan in the first half, down 10.71 percent year on year. Air conditioning revenue was 9.03 billion yuan, and refrigerator and freezer revenue was 4.84 billion yuan, together contributing more than 80 percent of total revenue. The gross margin of the household appliance manufacturing business fell 2.29 percentage points year on year to 7.87 percent, mainly affected by the property market adjustment, insufficient end-market demand, and rising raw material and sea freight costs. Total non-recurring gains and losses of 66.94 million yuan provided key support to net profit, including 42.96 million yuan from changes in fair value of financial assets and disposal gains or losses, and 23.16 million yuan in government subsidies. The company will not pay a cash dividend for the first half of 2026. Controlling shareholder Sichuan Changhong Electric Co., Ltd. maintained its 24.12 percent stake, and Li Xiaodong was elected chairman.

Changhong Meiling released its 2026 interim report, with net profit attributable to the parent company at 57.98 million yuan, down 86.10% from the same period last year. Total operating revenue was 16.14 billion yuan, a decrease of 1.94 billion yuan, or 10.71% year-on-year. Net cash inflow from operating activities was 324 million yuan, down 1.04 billion yuan, or 76.21% year-on-year. The company's latest asset-liability ratio was 76.97%, up 5.03 percentage points from the previous quarter. Gross margin was 8.18%, down 1.34 percentage points from the previous quarter. Return on equity was 0.99%, down 5.77 percentage points from the same period last year. Diluted earnings per share were 0.06 yuan, down 85.83% year-on-year.

Changhong Meiling has issued a mid-year earnings forecast, estimating first-half net profit between 52 million and 60 million yuan, a year-on-year decline of 85.62% to 87.54%. In the same period last year, the company posted a profit of 417 million yuan. Deducted non-recurring profit swung to a loss, with an estimated first-half loss of 16 million to 8 million yuan. Following the news, the company's shares opened lower and continued to slide, falling 5.67% to 5.16 yuan per share as of press time, bringing the year-to-date decline to around 21%. The company attributed the profit drop mainly to rising prices of bulk raw materials such as non-ferrous metals and chemical feedstocks, as well as higher shipping costs. This was compounded by adjustments in the real estate market, weak end-user demand, and extended channel inventory digestion cycles, which intensified industry competition and pushed down average product prices. In addition, the company continued to increase strategic investments in intelligent transformation, digital upgrades, and brand building, which also weighed on current profits. Over the past two years, revenue grew by 17.32% and 6.32% respectively, but net profit attributable to shareholders fell by 4.97% and 41.31%, marking two consecutive years of revenue growth without profit growth. In the first quarter of this year, net profit dropped 61.33%, and the decline widened further in the first half. As of the end of 2025, the company held cash of 10.19 billion yuan on its books, far exceeding its interest-bearing debt. However, market observers noted that raw material prices such as copper remain high, shipping cost volatility persists, and price wars continue amid intense competition in the domestic home appliance market, squeezing profit margins.