China Resources Building Materials Posts 354.91 Million Yuan Third-Quarter Loss
Key Facts
China Resources Building Materials Technology swung to a net loss of 354.91 million yuan in the third quarter of 2026, after posting a profit of 24.32 million yuan in the same period a year earlier. Revenue was 4,189.05 million yuan, compared with 4,863.99 million yuan a year earlier, according to data cited by MarketScreener from S&P Capital IQ. The results reflect a simultaneous decline in sales and profitability during the quarter. The company also reported a basic loss per share of 0.051 yuan, compared with basic earnings per share of 0.003 yuan in the third quarter of 2025. The figures place the quarter’s performance within a broader period of accumulated losses over the first nine months.
For the first nine months of 2026, sales fell to 12,825.02 million yuan from 15,069.57 million yuan in the same period last year. The company recorded a net loss of 796.16 million yuan during the period, after earning a net profit of 330.97 million yuan a year earlier. In its profit warning, the company had forecast a loss attributable to owners of between 750.0 million and 850.0 million yuan for the nine months ended Sept. 30, 2026. It compared that range with a profit attributable to owners of 331.0 million yuan in the same period of 2025. The reported net loss falls within the range the company forecast, although net loss is a different measure from the loss attributable to owners cited in the warning.
The company attributed pressure on gross profit to lower selling prices for cement, concrete and aggregates, alongside a slight rise in the cost of cement sales as coal prices continued to climb. By contrast, unit costs for concrete and aggregates fell from a year earlier, according to the company’s disclosure. But cost reductions were not enough to offset the impact of lower selling prices and higher coal costs. The company said, "The contribution from cost-cutting measures was unable to offset the impact of lower selling prices and higher coal prices." It added that the pressure led to declines in consolidated gross profit and gross margin. The company’s explanation points to a combination of revenue and cost pressures during the period, despite lower costs for some products.
The company’s results coincided with broader weakness in Chinese property investment. National fixed-asset investment, excluding rural households, fell 7.2% year over year in January–September 2026 to 33,411.5 billion yuan, according to China’s National Bureau of Statistics. In the same period, investment in real estate development declined 20.6% year over year. The floor area of new-home sales fell 13.2%, while sales value declined 13.9% year over year. These indicators provide context for the building materials market because they relate to property investment and home sales, but do not by themselves determine the market’s impact on any individual company’s results.
September data showed that value added in the non-metallic mineral products manufacturing sector, which includes building materials products, fell 2.4% year over year. Meanwhile, the official manufacturing purchasing managers’ index was 50.1% in the same month, up 0.3 percentage points from August and back in expansion territory. The readings present a mixed picture: the broader manufacturing index returned to expansion while output in this sector contracted year over year. The general index alone does not establish a recovery in demand for cement or building products. The data come amid the company’s results, which it linked to lower selling prices and higher coal costs.