Beijing Jingcheng Machinery Electric Company Limited (Jingcheng Machinery Electric) reported first-quarter 2026 operating revenue of RMB 309.40 million, down 4.25% year on year, as emerging hydrogen-energy operations remained in incubation phase and overall market demand lagged expectations.

The revenue decline, coupled with higher impairment and finance charges, pushed the group into a deeper loss. Total profit swung to a negative RMB 37.26 million (Q1 2025: ‑RMB 8.06 million). Net loss attributable to shareholders expanded to RMB 32.21 million, compared with a RMB 11.91 million loss a year earlier. Excluding extraordinary items, the attributable loss widened to RMB 34.39 million.

Cost structure pressures persisted: • Operating costs rose 1.60% to RMB 266.71 million, narrowing the gross margin. • Financial expenses more than tripled to RMB 7.07 million, driven by higher interest expense. • Asset impairment charges surged to RMB 12.66 million (Q1 2025: RMB 4.52 million).

Cash flow from operations improved but stayed negative at ‑RMB 37.63 million versus ‑RMB 58.39 million in the prior-year period, reflecting higher cash receipts from sales offset by increased working-capital use. Free cash flow was further pressured by RMB 10.58 million in capital expenditure, while net financing cash outflows totalled RMB 76.54 million as the company repaid RMB 70 million in borrowings.

On the balance sheet, total assets declined 3.85% quarter on quarter to RMB 3.01 billion, mainly due to a 20.1% reduction in cash and bank balances to RMB 497.61 million. Inventories climbed 12.0% to RMB 303.56 million, and contractual assets rose 66.5% to RMB 51.07 million, signalling work in progress yet to be billed. Total liabilities fell 4.6% to RMB 1.70 billion after a RMB 70 million cut in short-term borrowings, but the debt load remains substantial with RMB 153.38 million in long-term loans and RMB 204.19 million in lease liabilities.

Shareholders’ equity attributable to the parent contracted 3.7% to RMB 825.52 million, driving the annualised first-quarter return on equity deeper into negative territory at ‑3.83% (Q1 2025: ‑1.10%). Basic and diluted losses per share widened to RMB 0.06.

Management attributed the underperformance primarily to the nascent stage of its hydrogen-energy-related businesses, where revenue and profitability have yet to scale. Extraordinary gains of RMB 2.17 million—mainly government subsidies and other non-operating income—partially offset losses but were insufficient to reverse the overall deficit.

As at 31 March 2026, state-owned Beijing Jingcheng Machinery Electric Holding Co., Ltd. remained the largest shareholder with a 44.88% stake, while HKSCC Nominees held 18.20%.

The unaudited results highlight ongoing margin compression, elevated impairment charges and significant working-capital outflows as key areas of focus for Jingcheng Machinery Electric in the coming quarters.