Triumph New Energy Company Limited released its unaudited third-quarter 2026 financials, highlighting a sharp contraction in top-line performance and a further deterioration in profitability.
Revenue and Profitability • July–September revenue fell 58.26% year-on-year to RMB 418.80 million, mirroring softer demand and lower average selling prices. • The quarterly net loss attributable to shareholders widened to RMB 383.83 million, versus a RMB 147.28 million loss a year earlier. • Year-to-date (9M 2026) revenue declined 40.14% to RMB 1.60 billion, while the cumulative attributable net loss more than doubled to RMB 1.22 billion. • Basic EPS dropped to –RMB 0.59 for the quarter (9M 2026: –RMB 1.89), and the weighted average ROE deteriorated to –18.52% in Q3 and –49.05% for the nine-month period.
Cost and Expense Dynamics • Q3 operating costs decreased 35.99% to RMB 711.44 million, lagging the steeper revenue contraction and pressuring margins. • Finance expenses rose 30.23% to RMB 36.69 million due to reduced interest capitalization. • R&D spending was cut 48.88% in the quarter to RMB 17.87 million, and 32.60% year-to-date to RMB 68.62 million. • Government subsidies recognized as other income plunged 92.96% to RMB 4.74 million in Q3.
Cash Flow and Balance Sheet • Operating cash outflow expanded to RMB 226.97 million in Q3, though the nine-month deficit narrowed 9.42% to RMB 666.53 million, aided by lower receivables and inventory levels. • Net cash outflow from investing activities fell 48.43% in Q3 to RMB 53.71 million as project spending eased. • Financing inflows surged 160.18% to RMB 296.07 million during the quarter, driven by increased borrowings; total interest-bearing debt rose, with non-current borrowings of RMB 2.55 billion and short-term borrowings of RMB 2.99 billion at period-end. • Total assets declined 7.96% from end-2025 to RMB 12.53 billion, while owners’ equity contracted 39.39% to RMB 1.88 billion, reflecting accumulated losses. Fixed assets expanded 31.64% to RMB 7.93 billion following the transfer of construction-in-progress assets.
Key Balance Sheet Movements (9M 2026 vs. FY 2025) • Construction in progress decreased 66.80% to RMB 1.11 billion. • Notes receivable dropped 32.42% to RMB 276.03 million amid lower sales. • Notes payable contracted 74.89% on maturity settlements, while other payables more than doubled to RMB 465.31 million due to higher business engagements. • Retained losses deepened to RMB 2.60 billion, contributing to the 39.39% reduction in shareholder equity.
Shareholder Structure As of 30 September 2026, Triumph New Energy had 32,450 ordinary shareholders. HKSCC Nominees Limited remained the largest shareholder with a 38.46% stake, followed by China Luoyang Float Glass (17.22%) and CNBM New Material Research Institute Group (9.89%).
Outlook Considerations Management attributed the earnings pressure primarily to lower sales volumes, falling prices, and increased impairment provisions, while noting reduced capex and R&D outlays. The group faces heightened leverage and ongoing operating cash deficits heading into the final quarter of 2026.
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