Fuxing China Group (AWK) investor relations material

Executive summary

• 1H2026 revenue was RMB330.659m, down from RMB335.088m; gross profit rose 28% to RMB31.429m and net profit was RMB5.367m versus a RMB9.519m loss.

• Higher zipper selling prices, improved margins and cost discipline supported the return to profit; softer Trading and Processing revenue partly offset zipper growth.

Financial highlights

• Profit before tax was RMB6.330m versus a loss before tax of RMB8.086m; profit attributable to shareholders was RMB5.068m versus a loss of RMB9.580m.

• Operating cash flow was RMB17.617m versus RMB36.365m; higher inventories and prepayments reduced cash generation.

• Cash and cash equivalents were RMB180.779m; cash and short-term deposits were RMB199.3m at 30 June 2026.

• Total equity was RMB602.1m at 30 June 2026.

Outlook and guidance

• 1H2026 performance was in line with the profit guidance issued on 6 August 2026.

• Results over the next 12 months may be affected by high production costs, low gross margins, uncertain customer demand and challenging China economic growth.

• Margin initiatives include automation and digitalisation, operational efficiency, direct-to-brand sales, product innovation and quality improvements; management is cautiously optimistic on sustaining margin gains if these succeed.

• Priorities include cost control, capital structure optimisation, receivables monitoring and faster collections to support financial flexibility and working capital.