Xingfa Aluminium Holdings Limited reported unaudited interim results for the six months ended 30 June 2026 (1H 2026). Revenue rose 4.0% year on year to RMB 9.69 billion, supported by strength in non-construction profiles, while net profit attributable to shareholders declined 37.0% to RMB 170.72 million as industry-wide fee pressure and higher aluminium prices compressed margins.

Gross profit fell 25.5% to RMB 460.52 million; overall gross margin contracted to 4.8% from 6.6% a year earlier. Construction aluminium profiles, accounting for 77.2% of sales, generated RMB 7.48 billion in revenue, flat year on year, with volume down 11.3% to 294,725 tonnes and margin slipping to 4.2%. Non-construction profiles delivered RMB 1.98 billion in revenue, up 26.1%, on a 13.5% rise in volume to 85,026 tonnes, yet margin narrowed to 1.5% amid intense competition.

Operating profitability weakened: operating cash flow dropped to RMB 119.31 million from RMB 680.41 million. Distribution and administrative expenses were cut by 26.9% and 10.5% respectively, but finance costs increased 24.2% to RMB 56.04 million due to higher borrowings.

Capital expenditure accelerated to RMB 736.0 million, largely for new plants in Mainland China, Vietnam and Australia. Total bank and other borrowings climbed to RMB 4.76 billion from RMB 2.97 billion, lifting the gearing ratio to 27.2% (end-2025: 19.8%). Cash and cash equivalents stood at RMB 2.09 billion, up from RMB 1.65 billion at end-2025.

Management highlighted progress on its “Rooted in Construction, Advancing Energy Storage & Computing” strategy. The Vietnam facility entered trial production, while the Australian project advanced certification processes. The group’s product mix continued to shift toward high-value non-construction applications such as energy-storage liquid cooling plates, computing-power equipment and lightweight automotive components.

No interim dividend was declared. The board cited continued industry headwinds, including subdued real-estate demand, elevated aluminium input costs and intensifying competition, but expressed cautious optimism on opportunities from new-energy and overseas markets.