China Oriental Group Company Limited (China Oriental, 00581.HK) disclosed the first-quarter results of its 40.5%-owned subsidiary, Qingdao Huijintong Power Equipment Co., Ltd. (HJT), for the three months ended 31 March 2026.
• Revenue and Costs HJT generated operating income of RMB801.28 million, down 4.32% from a year earlier. Cost of sales fell by 3.36% to RMB701.51 million, trimming gross profit to RMB99.77 million and the gross margin to 12.45% (Q1 2025: 13.32%).
• Profitability Operating profit edged up 1.4% to RMB14.34 million, while net profit attributable to shareholders declined 9.03% to RMB13.60 million. Total net profit, including minority interests, was RMB14.24 million, a 9.82% year-on-year decrease. Basic and diluted EPS dropped to RMB0.0401, compared with RMB0.0441 in the prior-year period. The net margin narrowed to 1.78% (Q1 2025: 1.89%).
• Expense Breakdown Selling and administrative expenses rose a combined 5.8% to RMB30.94 million, while research and development spending contracted 6.0% to RMB29.27 million. Finance costs declined 5.9% to RMB24.37 million, reflecting lower interest expenses.
• Balance-Sheet Highlights As at 31 March 2026, HJT’s total assets stood at RMB6.03 billion, 3.64% lower than at year-end 2025, largely due to a RMB206.05 million reduction in current assets. Total liabilities decreased by RMB242.00 million to RMB3.98 billion, improving the debt-to-asset ratio to 66.1% from 67.6%. Equity attributable to owners inched up 0.69% to RMB1.97 billion, supported by earnings retention.
• Cash Flow and Capital Position Non-current liabilities contracted 28.55% to RMB603.75 million, indicating reduced long-term debt exposure. Current liabilities were broadly stable at RMB3.38 billion.
The above figures pertain solely to HJT and do not represent consolidated results for China Oriental Group.
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