China National Building Material Company Limited Issues First Quarter 2026 Profit Alert

Key Points and Investor Takeaways

• Significant Reduction in Losses: The company expects unaudited loss attributable to equity holders for Q1 2026 to be approximately RMB170 million, compared to a much larger loss of RMB517 million in Q1 2025. This represents a substantial improvement in the Group’s financial performance year-on-year.
• Factors Driving Loss Reduction: The improvement is primarily due to:
  • Increase in sales prices and decrease in cost of sales for major products, especially glass fibers.
  • Higher sales volume of electronic fabrics and lithium battery separators.
  • Increase in net profit from fair value changes of financial assets recognized at fair value through profit or loss.
  • Growth in profits contributed by associates.
  • However, these gains are partially offset by a decrease in sales volume of cement.
• Potential Price Sensitivity:
  • The sharp reduction in loss is a positive signal for investors and could potentially impact the share price.
  • Market participants should pay attention to the underlying improvements in operational efficiency and product mix.
  • The expected results are based on unaudited preliminary data and may differ from final figures.
• Timing of Official Results: The finalised Q1 2026 results are scheduled to be published before the end of April 2026. Investors should monitor for the official announcement for confirmation and additional insights.
• Caution Advised: The company repeatedly advises shareholders and potential investors to exercise caution when dealing in its shares, given that the figures are preliminary and unaudited.

Additional Details

• Reporting Basis: Financial figures are prepared under PRC accounting principles.
• Regulatory Compliance: Announcement made pursuant to Part XIVA of the Securities and Futures Ordinance (SFO) and Rule 13.09(2)(a) of the Listing Rules of the Stock Exchange of Hong Kong Limited.
• Board Composition: As of the announcement date, the board comprises executive directors (Mr. Zhou Yuxian, Mr. Wei Rushan, Mr. Wang Bing, Ms. Miao Xiaoling), non-executive directors (Mr. Wang Yumeng, Mr. Chen Shaolong), and independent non-executive directors (Mr. Sun Yanjun, Mr. Liu Jianwen, Mr. Zhou Fangsheng, Mr. Li Jun, Ms. Xia Xue).

What Shareholders Should Know

• The significant improvement in net loss suggests the company is turning a corner operationally, driven by both pricing and volume improvements in key product segments.
• Ongoing challenges in cement sales may temper some of the positive news, but overall trends point to enhanced profitability and operational resilience.
• Investors should remain vigilant as the actual audited results may differ from preliminary estimates. Any material deviation could influence share prices.
• The company’s explicit cautionary statement underscores the importance of careful consideration when trading shares during this period of uncertainty.

Conclusion

The announcement indicates a strong improvement in financial performance for China National Building Material Company Limited in the first quarter of 2026, reducing losses by nearly RMB347 million year-on-year. This development, driven by favorable product pricing, volume increases in high-growth segments, and financial asset revaluation gains, could be viewed as a positive signal by the market and may affect share values. Investors are urged to await the full quarterly report and exercise prudence in trading decisions.

Disclaimer

This article is based on unaudited preliminary information provided by China National Building Material Company Limited as of 17 April 2026. Actual results may differ from those stated. Investors are advised to exercise caution and consult official company disclosures before making investment decisions.

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