China Oriental Posts H1 FY26 Net Profit Growth Amid Revenue Slide; Withholds Interim Dividend

Bulletin Express
08/31

China Oriental reported a RMB 251.00 million net profit for the six months to 30 June 2026, up 3.20% year on year, despite revenue contracting 8.30% to RMB 18.22 billion.

Gross profit fell 23.70% to RMB 948.18 million, as gross margin on self-manufactured steel narrowed to RMB 198 per tonne (-15.40%). Group EBITDA slipped 5.10% to RMB 1.01 billion, yet the EBITDA margin edged up to 5.5% from 5.4% a year earlier. EBIT dropped 16.80% to RMB 382.00 million, while profit before tax decreased 18.40% to RMB 343.80 million.

Sales of self-manufactured steel products slid 1.0% to 3.96 million tonnes; average selling price was broadly flat at RMB 2,995 per tonne (-0.1%). Segment revenue eased 1.20% to RMB 11.87 billion. Power-equipment sales retreated 18.80% to RMB 1.54 billion, and trading of steel, iron ore and other materials contracted 18.80% to RMB 4.79 billion. Real-estate revenue more than halved to RMB 0.02 billion.

Adjusted profit—excluding property and loan-impairment charges—declined 16.60% to RMB 322.00 million. The Group booked a RMB 46.41 million impairment on property assets and RMB 24.46 million on loan receivables tied to lower-tier PRC property markets.

Share of results from the new-energy soft-magnetic material (NEMM) joint ventures with ArcelorMittal swung to a profit of RMB 126.59 million, supporting bottom-line growth.

Cash generated from operations contracted to RMB 951.06 million (-48.60%). Capital expenditure reached RMB 1.17 billion, mainly for green upgrades, digitalisation and the ongoing NEMM upstream steelmaking revamp. Total assets slipped 2.30% to RMB 49.46 billion, while the debt-to-capital ratio improved to 60.6% from 65.7%.

The Board declared no interim dividend, citing persistent industry headwinds and the need to fund strategic projects. Management will review full-year payout after assessing second-half performance and cash requirements.

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