China Longevity posts 22% jump in attributable profit for 1H26 despite margin pressure

Bulletin Express
09/16

China Longevity Group reported revenue of RMB646.09 million for the six months ended 30 June 2026, a year-on-year increase of 9.20%. Growth was led by its high-performance PVC composite materials segment (“Material Products”), which contributed 92.68% of total revenue.

Gross profit was broadly flat at RMB101.04 million, but the gross margin slipped to 15.6% from 17.0% a year earlier, reflecting higher input costs linked to geopolitical disruptions. Material Products’ margin narrowed to 16.3% (1H25: 17.6%), while the smaller Building Material Products line recorded a 6.9% margin (1H25: 9.8%).

Selling and distribution costs fell 34.2% to RMB15.41 million and administrative expenses dropped 7.5% to RMB55.30 million, cushioning the impact of the lower margin. Finance costs rose 20.5% to RMB11.12 million on higher bank borrowings.

Profit attributable to owners of the company climbed 22.4% to RMB21.06 million, equivalent to basic earnings per share of RMB2.47 cents. No interim dividend was declared.

The balance sheet showed total equity of RMB889.04 million, up 1.9% from end-2025. Net gearing remained stable at 36.2%. Cash and cash equivalents stood at RMB124.71 million, while interest-bearing bank borrowings increased to RMB748.60 million.

Management reiterated its focus on green materials, R&D investment (RMB26.20 million, or 4.1% of revenue) and digital transformation to navigate a volatile global backdrop. No significant post-balance-sheet events, contingent liabilities or acquisitions were reported.

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