Tongwei (600438) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 was RMB 12.13 billion, down 23.90% year-over-year, reflecting a contraction in business scale.

• Net loss attributable to shareholders was RMB -2.44 billion, a slight improvement of 5.72% year-over-year.

• Operating cash flow was negative at RMB -2.66 billion, impacted by increased restricted deposits.

Financial highlights

• Gross margin pressure persisted as operating costs declined less than revenue.

• Basic and diluted EPS were both -0.5430, improving from -0.5759 in Q1 2025.

• Total assets at quarter-end were RMB 187.0 billion, nearly flat from year-end 2025.

• Shareholders’ equity decreased 6.3% to RMB 36.44 billion.

• Actual operating cash flow, excluding restricted deposits, was approximately RMB -390 million, up 73.21% year-over-year.

Outlook and guidance

• No explicit forward-looking guidance provided, but management commentary suggests ongoing focus on cash flow and cost control.