China Saftower International Holding Group Limited reported a sharp contraction in first-half 2026 revenue, falling 48.8 % year-on-year to RMB 86.19 million, as weaker demand and a deliberate shift toward shorter customer credit terms weighed on volumes.
Gross margin slipped from 0.4 % to –2.5 %, producing a RMB 2.14 million gross loss (1H 2025: RMB 0.66 million gross profit). Management cited higher raw-material and subcontracting costs as well as under-utilised polymer-materials capacity that left fixed costs under-absorbed.
Other income rose 145 % to RMB 2.08 million, driven mainly by increased rental receipts and government subsidies. Tight cost control lowered selling and distribution expenses by 66.7 % to RMB 0.26 million and trimmed administrative and other expenses by 52.6 % to RMB 6.47 million.
Finance costs nearly halved to RMB 1.35 million due to reduced interest on borrowings, while a RMB 0.60 million deferred-tax credit further eased the bottom line. Loss attributable to shareholders narrowed 54.2 % to RMB 6.88 million, translating into a basic and diluted loss per share of RMB 0.04 (1H 2025: RMB 0.12).
Balance-sheet pressure persisted: • Total assets fell 17.2 % to RMB 107.16 million. • Net current liabilities stood at RMB 157.72 million; current ratio deteriorated to 0.23 (FY 2025: 0.27). • Total borrowings were RMB 55.02 million, with 83 % maturing within 12 months; RMB 16.73 million were in default at period-end. • Equity remained negative at RMB 108.30 million (FY 2025: negative RMB 100.14 million).
Operating cash outflow reached RMB 6.20 million (1H 2025: inflow RMB 1.62 million). Cash and cash equivalents inched up to RMB 0.26 million. Pledged assets—primarily buildings and land—totalled RMB 29.00 million.
No interim dividend was declared. Post-period, the Group disposed of its 51 % stake in subsidiary Fuzhou Dasong for RMB 0.20 million in August 2026.
Management expects ongoing challenges from raw-material volatility and financing constraints but sees medium-term demand support from infrastructure, renewable-energy projects and digitalisation initiatives in China. Focus remains on cost optimisation, product mix adjustment and cash-flow discipline.