China Hongqiao Group Limited disclosed unaudited first-quarter 2026 figures from its subsidiary Shandong Hongqiao New Material Co., Ltd., prepared under PRC GAAP.

Operating performance • Total operating income reached RMB 41.55 billion, up 3.40% year-on-year. • Operating costs fell 3.65% to RMB 29.06 billion, helping lift operating profit to RMB 10.77 billion, a 26.14% increase. • Net profit attributable to shareholders climbed to RMB 8.27 billion, up 30.31% versus the prior-year period. • Financial expenses declined 18.56% to RMB 0.53 billion, reflecting lower interest costs. • Asset impairment losses widened to RMB 0.35 billion from RMB 0.02 billion, partially offsetting earnings gains.

Balance sheet highlights (as at 31 March 2026) • Total assets stood at RMB 224.45 billion, broadly unchanged from year-end 2025. • Cash and cash equivalents declined to RMB 40.10 billion from RMB 47.84 billion, mainly due to debt repayment. • Total liabilities contracted by 8.72% to RMB 92.59 billion, reducing the liability-to-asset ratio to 41.3% from 45.1%. • Short-term borrowings decreased 32.46% to RMB 6.80 billion, while long-term borrowings inched up 2.15% to RMB 25.01 billion. • Shareholders’ equity attributable to the parent expanded 6.39% to RMB 124.37 billion, driven largely by retained earnings.

Cash flow and liquidity • The cut in short-term debt and the rise in long-term financing helped extend the company’s maturity profile. • Notes payable fell 32.46% to RMB 0.22 billion, further easing near-term payment pressures.

Equity structure • Undistributed profits increased RMB 7.50 billion to RMB 98.17 billion, underpinning the rise in total equity. • Minority interests rose to RMB 7.48 billion from RMB 6.71 billion, reflecting improved performance at non-wholly owned subsidiaries.

Outlook considerations The unaudited figures indicate continued revenue growth, margin expansion and a stronger balance-sheet position at China Hongqiao’s core subsidiary. Management advises investors that the data have not been reviewed or audited and that caution is warranted when interpreting the results.