en.Wedoany.com Reported - China Hainan Ruize New Building Materials Co., Ltd. (002596.SZ) released its semi-annual performance forecast on July 15, 2026, expecting a net loss attributable to shareholders of the listed company of between 67.5 million yuan and 49.5 million yuan for the period from January to June 2026, compared with a loss of 68.0317 million yuan in the same period last year; the net profit after deducting non-recurring gains and losses is expected to be a loss of between 69 million yuan and 51 million yuan, compared with a loss of 78.6933 million yuan in the same period last year.
Hainan Ruize New Building Materials Co., Ltd. was established in 2002, headquartered in Sanya City, Hainan Province, and listed on the Shenzhen Stock Exchange in 2011. The company's main business covers three major sectors: commercial concrete, municipal sanitation, and landscaping. It is one of the larger commercial concrete producers in Hainan Province, with operations primarily concentrated in Hainan Province and surrounding areas.
The announcement indicates that the main reasons for the performance loss include three aspects: First, during the reporting period, competition in the commercial concrete market intensified, leading to a decline in sales prices, while the overall cost reduction of major raw materials was lower than the decline in sales prices, resulting in a decrease in the company's commercial concrete business revenue and comprehensive gross profit margin; second, competition in the municipal sanitation business market became increasingly fierce, leading to a decline in revenue; third, the company intensified its efforts to collect long-aged accounts receivable, resulting in a decrease in impairment loss provisions compared to the same period last year; meanwhile, the performance of associated companies improved, leading to an increase in investment income.
The commercial concrete industry is highly correlated with the prosperity of the construction sector. In the first half of 2026, affected by factors such as the continued downturn in real estate investment and insufficient funding for infrastructure projects, the overall demand for commercial concrete in Hainan Province and nationwide was weak, with prominent industry overcapacity issues and intense price competition. At the same time, although prices of raw materials such as cement and sand and gravel have fallen, the decline has not fully offset the profit erosion caused by the drop in product selling prices. In the municipal sanitation business, as local government finances come under pressure and the industry becomes more market-oriented, bidding competition for sanitation service projects has intensified, and the service prices and contract scales of some existing projects are facing compression.
This performance forecast from Hainan Ruize indicates that the company still faces significant operational pressure in the first half of the year, but the loss range is basically flat compared to the same period last year. The reduction in impairment losses and the increase in investment income have, to some extent, cushioned the impact of the main business decline. With the advancement of infrastructure projects in Hainan Province in the second half of the year and the arrival of the traditional peak construction season, the company's operating conditions may improve. Hainan Ruize stated that this performance forecast has not been pre-audited by an accounting firm, and the specific data will be based on the 2026 semi-annual report.
