Crystal New Material Q1 2026 Revenue Plunges 51%, Net Profit Down 82% - AI Acquisition Yet to Boost Earnings

Consolidated revenue for Q1 2026 was 54.8M RMB, down 51.4% YoY from 112.8M RMB in Q1 2025. Operating profit plunged 80.2% to 2.6M RMB, indicating severe earnings deterioration.
Net profit dropped 82.1% to 1.8M RMB from 10.0M RMB a year earlier. EPS fell to 0.01 RMB from 0.08 RMB, diluting shareholder value.
The acquisition of GeneVision AI (completed December 2025) has not yet contributed meaningfully to revenue or profit, leaving the core synthetic mica and graphene segments as the main drag.
Financial position remains solid: cash and equivalents of 1,521M RMB, total liabilities of 117.9M RMB, resulting in a net cash position and minimal debt reliance.
A 4:1 reverse stock split was approved at the April 2026 AGM, which will reduce outstanding shares from 143,260,004 to approximately 35,815,001, potentially supporting share price.
[AI Summary]The sharp decline in revenue and profit poses a near-term risk to the stock price, and the delayed contribution from the AI subsidiary highlights the weakness in the legacy synthetic mica/graphene business. However, the company's massive cash holdings and debt-free balance sheet provide a downside cushion, and the reverse stock split could act as a positive catalyst for the share price.