Triumph New Energy (TRIUMPH NEW EN) reported a steepening first-half 2026 net loss attributable to shareholders of RMB 838.48 million, up 86.75 % year on year, as weak photovoltaic-glass pricing and high inventory writedowns eclipsed cost-cutting moves.

Revenue and Profitability • Operating revenue fell 29.27 % to RMB 1.18 billion, reflecting a protracted slump in China’s PV glass market. • Operating costs declined only 8.71 % to RMB 1.76 billion, leaving the core business in negative gross profit. • Inventory impairment charges surged to RMB 106.24 million versus a RMB 2.21 million reversal a year earlier. • Weighted average return on equity dropped to –31.24 % (H1 2025: –11.84 %). • Basic and diluted EPS both stood at –RMB 1.30 (H1 2025: –RMB 0.70).

Cash Flow and Balance-Sheet Metrics • Net cash used in operations improved to –RMB 439.55 million from –RMB 744.82 million a year earlier, supported by tighter working-capital controls. • Total assets slipped 5.66 % since end-2025 to RMB 12.84 billion; net assets attributable to shareholders decreased 27.02 % to RMB 2.26 billion. • The debt-to-asset ratio rose to 79.03 % (end-2025: 73.33 %); interest-bearing borrowings totalled RMB 6.80 billion, including RMB 3.08 billion in short-term loans. • Capital commitments not yet recognised reached RMB 2.55 billion, mainly for capacity expansion at multiple PV glass bases.

Operational Highlights • Management cited an industry-wide downturn characterised by oversupply, falling prices and sluggish demand. • Cost-reduction initiatives—centralised procurement, inventory cuts and debt re-profiling—partially cushioned cash outflows but have yet to return the business to profitability. • Eight intelligent PV-glass production bases remain the core operating asset network.

Capital Expenditure and Projects • Major projects under construction, including Jiangsu Triumph’s 1.5 million-ton ultra-thin PV-glass line and Luoyang New Energy’s encapsulation-material facility, carried a combined book value of RMB 1.11 billion after transfers of completed assets worth RMB 2.27 billion to fixed assets during the half. • Long-term borrowings of RMB 2.68 billion include project-linked mortgages; significant pledges cover land-use rights and production equipment.

Risk Management • Management flagged ongoing credit, liquidity and market-price risks, underscoring a year-end debt ratio of 79.03 % and concentrated receivables—20.95 % of accounts receivable are owed by the top five customers. • Fixed-asset and inventory impairments rose sharply in response to low PV-glass prices and excess capacity.

Dividend • No interim dividend was proposed.

Outlook The Board plans to continue prioritising cash preservation, loss reduction and operational efficiency while advancing key capacity-upgrade projects to position the firm for eventual photovoltaic market recovery.