Xiamen Jihong Co., Ltd. (Jihong Co.; HKEX: 02603) reported unaudited results for the three months ended 30 September 2026 showing solid top-line growth but a sharp decline in earnings due mainly to exchange-rate movements and ongoing capacity expansion.
Revenue Performance • Third-quarter revenue rose 13.85% year on year to RMB 2.06 billion, lifting nine-month revenue to RMB 5.79 billion, up 14.93% compared with the same period of 2025.
Earnings Trend • Net profit attributable to shareholders dropped 55.60% to RMB 43.28 million in Q3. • Nine-month attributable net profit slipped 6.77% to RMB 201.03 million. • After excluding non-recurring items, nine-month core earnings were RMB 186.29 million, down 9.55% year on year. • Management cited higher foreign-exchange losses, initial spending on new domestic and overseas production bases, and intensified market competition as the primary drivers of the profit contraction. Adjusting for FX losses, nine-month attributable profit would have been RMB 244.21 million, representing an 8.66% year-on-year increase.
Balance-Sheet Highlights (30 September 2026) • Total assets expanded 17.79% since year-end 2025 to RMB 5.09 billion. • Equity attributable to shareholders grew 5.57% to RMB 2.85 billion, underscoring continued capital accumulation despite profit pressure.
Investor Considerations The figures are based on internal management accounts and remain unaudited. The board cautioned investors to interpret the data prudently and noted that intensified market competition, foreign-exchange volatility, and upfront investments will continue to influence near-term profitability.
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