Shengli Pipeline (01080) expects profit for the medium term and total comprehensive income for the period to be no less than $22 million, respectively, turning a year-on-year loss into a profit

According to Zhitong Finance App News, Shengli Pipeline (01080) announced that the Group expects to record profit for the first half of 2026 and total comprehensive income for the period of not less than RMB 22 million, while for the six months ending June 30, 2025 (first half of 2025), the total loss recorded for the period and total consolidated loss for the period is approximately RMB 25.4 million and approximately RMB 39.6 million, respectively.

The board of directors believes that the shift in the first half of 2025 from loss for the period and total consolidated loss for the period to profit for the first half of 2026 and total comprehensive profit for the period is mainly due to the following factors:

1. The Group's welded pipe business sales increased significantly in the first half of 2026 compared to the first half of 2025, while national pipelines and anti-corrosion treatment services with high gross margins all increased significantly compared to the first half of 2025. As a result, gross profit increased from about RMB 44.8 million in the first half of 2025 to no less than RMB 75 million in the first half of 2026;

2. The one-time litigation provision confirmed in profit and loss for the first half of 2025 was approximately RMB 18.4 million; in the first half of 2026, the Group confirmed that the lawsuit provision was not less than RMB 300,000; and in the first half of 2025, the fair value change loss for unlisted equity investments designated to include other comprehensive income at fair value was approximately RMB 14.3 million, and there was no change in fair value after the sale of the investment in the first half of 2026.