Huaibei GreenGold Industry Investment Co., Ltd. released its 2026 interim report, detailing sharp top-line contraction and a swing to a wider loss amid sustained weakness in China’s construction-materials market.

Revenue and Profitability • Group revenue fell 58.5% year-on-year to RMB52.80 million, driven by a 53.0% slide in aggregate sales volume to 1.33 million tonnes and an 11.6% decline in average selling price to RMB39.8 per tonne. • Gross profit plunged 98.2% to RMB0.90 million, compressing gross margin to 1.8% from 40.5% a year earlier. • The Group recorded a loss attributable to equity shareholders of RMB16.80 million, widening from a RMB2.79 million loss in 1H25, mainly reflecting lower prices, reduced volumes and thinner margins.

Cost and Expense Dynamics • Cost of sales decreased 31.6% to RMB51.88 million, broadly in line with lower output. • Administrative expenses were cut by 37.4% to RMB10.40 million following stricter cost controls. • Finance costs fell 17.6% to RMB27.59 million after the settlement of long-term payables and partial repayment of bank borrowings. • A RMB0.18 million reversal of trade-receivable impairment contrasted with a RMB5.95 million provision in the prior-year period.

Balance Sheet and Liquidity • Total assets declined 5.1% to RMB2.02 billion; total equity slipped to RMB628.94 million, reflecting the interim loss. • Interest-bearing bank borrowings rose to RMB1.31 billion; 24.7% of this balance matures within one year. • The gearing ratio edged down to 68.9% from 69.3% at end-2025. • Cash and cash equivalents climbed to RMB98.82 million (31 Dec 2025: RMB7.90 million), supported by trade-deposit refunds. • Capital expenditure contracted to RMB1.60 million (1H25: RMB10.70 million) as Phase II of the Gaoloushan mine expansion reached completion.

Operational Highlights • Phase II of Gaoloushan Mine, with 8 million-tonne annual capacity and 164 million-tonne reserves, entered operation, extending mine life to 2031. • Management introduced price concessions, transport subsidies and tiered pre-payment incentives to defend market share and stabilise prices amid industry oversupply and muted construction demand. • Aggregate prices stopped falling and showed a modest rebound in 2Q26 following coordinated actions with neighbouring mines and building-material companies.

Market Environment • Northern Anhui’s construction-materials sector faced policy-driven supply reforms and weakened housing starts, leading to significant volume and price pressure. • Infrastructure projects—including expressways and waterway upgrades—provided partial demand support but were insufficient to offset the real-estate slowdown. • Stricter environmental and mining regulations are expected to accelerate consolidation, favouring large-scale compliant producers such as Huaibei GreenGold.

Outlook and Strategy • Management anticipates stronger regional aggregate demand in 2H26 as key transportation projects progress. • The Group intends to maximise mine utilisation, deepen engagement with major project customers, enlarge its sales footprint in northern Anhui and eastern Henan, and pursue further cost-efficiency measures. • No interim dividend was declared.