Pearl River Steel Pipe (01938) Fa Ying Guan expects the comprehensive net profit for the first half of 2026 to be no less than 40 million yuan

According to the Zhitong Finance App, Pearl River Steel Pipe (01938) announced that the company's consolidated net profit as of the first half of 2026 will be no less than RMB 40 million, compared with the audited comprehensive net profit of RMB 246 million as of December 31, 2025 and the unaudited comprehensive net profit of RMB 172 million for the six months ended June 30, 2025. The decline in net profit was due to the tense and turbulent geopolitical situation in the Middle East, which affected the Group's delay in the delivery of steel pipes in the first half of 2026.

The board of directors remains cautiously optimistic, believing that the development of the oil and gas industry in the “15th Five-Year Plan” and China's continued emphasis on energy security and the promotion of clean energy will speed up the construction of pipeline network facilities and drive demand for the Group's steel pipes. Furthermore, after the situation in the Middle East stabilizes, the repair or construction of oil and gas pipelines will increase dramatically, bringing greater benefits to the Group. The Group anticipates that revenue associated with delayed deliveries will be made up after the situation in the Middle East stabilizes.