China Hainan Rubber Industry Group (601118) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB 15.12 billion, down 25.4% year-over-year; net loss attributable to shareholders was RMB -130 million, narrowing from -176 million last year.

• Operating cash flow was positive at RMB 1.01 billion, but net profit remained negative.

• The company remains the global leader in natural rubber planting, processing, and trading, with a strong international presence and industry influence.

• Fitch Ratings upgraded the company's long-term issuer default rating to BBB+ with a stable outlook in June 2026.

Financial highlights

• Revenue: RMB 15.12 billion, down 25.4% year-over-year.

• Net loss attributable to shareholders: RMB -130 million, improved from -176 million last year.

• Operating cash flow: RMB 1.01 billion, down 51.9% year-over-year.

• Total assets: RMB 32.67 billion, down 3.4% from year-end 2025.

• Basic EPS: -0.0305; weighted average ROE: -1.31%.

Outlook and guidance

• The company continues to focus on stabilizing planting, production, and market share, while deepening processing and internationalization.

• Ongoing reforms and digitalization are expected to enhance operational efficiency and risk management.

• No interim dividend or capital increase from reserves is planned for H1 2026.