Shaanxi Fenghuo Electronics Co Ltd

Fenghuo Electronics released its 2026 interim report. Total operating revenue was 598 million yuan, down 2.77 percent year on year. Net loss attributable to the parent company was 125 million yuan, with the loss widening by 35.7281 million yuan compared with the same period last year. Net cash flow from operating activities was negative 86.2831 million yuan, but increased by 245 million yuan from a year earlier, marking a second consecutive year of improvement. The company's asset-liability ratio was 55.81 percent, gross margin was 28.98 percent, return on equity was negative 4.42 percent, and diluted earnings per share was negative 0.15 yuan. The number of shareholders was 88,400, and the top ten shareholders held 57.37 percent of total share capital.

Fenghuo Electronics disclosed its earnings forecast, expecting a net loss attributable to the parent company of 125 million to 230 million yuan in the first half of 2026, compared with a loss of 89.6079 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 130 million to 235 million yuan, compared with a loss of 92.6713 million yuan a year earlier. The company is mainly engaged in the research, production, and sales of communication equipment and electroacoustic devices. The change in performance is primarily due to lower-than-expected demand for traditional equipment orders, resulting in fewer product deliveries in the first half of the year. Changes in product sales mix and price declines for some products led to a decrease in overall gross margin, while provisions for bad debts also increased.