Guoguang Electric Co Ltd

Guoguang Electric released its 2026 interim report, with net profit attributable to the parent company at a loss of 75.75 million yuan, swinging from profit to loss. Total operating revenue was 3.27 billion yuan, down 15.64% year-on-year. Net cash inflow from operating activities was 129 million yuan, down 31.17% year-on-year. The company's latest asset-liability ratio was 61.81%, gross margin was 11.70%, ROE was negative 1.82%, and diluted earnings per share was negative 0.13 yuan.

Guoguang Electric released its 2026 interim report, showing a net loss attributable to the parent company of 75.75 million yuan for the first half, a year-on-year decline of 217.7%. Operating revenue was 3.27 billion yuan, down 15.6% year-on-year. Net loss attributable to the parent after deducting non-recurring items was 101 million yuan, down 379.5% year-on-year. Net operating cash flow was 129 million yuan, down 31.2% year-on-year. In the second quarter, operating revenue was 1.74 billion yuan, down 18.9% year-on-year, with a net loss attributable to the parent of 50.01 million yuan. The company said the loss was mainly due to the divestiture of its international trading company at the end of 2025, which reduced revenue, as well as rising raw material prices and exchange losses. However, through cost reduction and efficiency improvements, selling, administrative, and research and development expenses fell by approximately 100 million yuan, 21.83 million yuan, and 69.57 million yuan respectively year-on-year.

Guoguang Electric disclosed an earnings forecast, estimating a net loss attributable to the parent of 65 million to 79.5 million yuan for the first half of 2026, compared with a profit of 64.3566 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 93.9 million to 108 million yuan, versus a profit of 35.9551 million yuan a year earlier, with basic earnings per share ranging from negative 0.12 yuan to negative 0.14 yuan. The company said the change in performance was mainly due to the divestiture of Guangzhou Guoguang International Trade at the end of last year to focus on its core business, while customers adjusted shipment schedules leading to a year-on-year decline in operating revenue. This was compounded by rising raw material prices for memory chips, magnetic steel, lithium cobalt oxide, and plastics, which pushed up production costs and reduced gross profit, as well as adverse movements in the exchange rate of foreign currencies against the yuan resulting in exchange losses. However, thanks to continuous lean management and cost reduction and efficiency improvement, selling, administrative, and research and development expenses fell by approximately 100 million yuan year-on-year during the reporting period.