Beijing New Building Materials (000786) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 was ¥12.63 billion, down 6.84% year-over-year; net profit attributable to shareholders was ¥1.38 billion, down 28.72% year-over-year.

• Gross margin for the period was 28.76%, with basic EPS at ¥0.808, down 29.25% year-over-year.

• The company maintained its “One Body, Two Wings, Global Layout” strategy, focusing on gypsum board, waterproofing, and coatings, with continued international expansion.

• Major acquisitions included the consolidation of two waterproofing companies and a new gypsum board subsidiary.

Financial highlights

• Operating income: ¥12.63 billion, down 6.84% year-over-year.

• Net profit attributable to shareholders: ¥1.38 billion, down 28.72% year-over-year.

• Operating cash flow: ¥684.91 million, down 28.80% year-over-year.

• Gross margin: 28.76%; net margin: 10.89%.

• Total assets at period end: ¥37.80 billion, up 4.73% from year-end 2025.

• Non-recurring gains totaled ¥57.65 million, mainly from government subsidies and investment income.

Outlook and guidance

• The company expects continued pressure on demand due to real estate market adjustments but aims to enhance profitability through cost control, product innovation, and channel optimization.

• Focus remains on expanding high-value product lines and international markets.