Hangzhou First Applied Material (603806) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 was RMB 3.37 billion, down 6.95% year-over-year.

• Net profit attributable to shareholders was RMB 311.79 million, a 22.27% decrease year-over-year.

• Operating cash flow improved but remained negative at RMB -117.77 million, compared to RMB -435.62 million last year.

Financial highlights

• Total assets at quarter-end were RMB 21.00 billion, up 1.87% from year-end 2025.

• Shareholders’ equity increased 1.31% to RMB 16.66 billion.

• Basic EPS was RMB 0.120, down 22.08% year-over-year.

• Weighted average ROE was 1.88%, down 0.53 percentage points year-over-year.

Outlook and guidance

• Profit decline mainly attributed to increased credit impairment losses compared to the same period last year.