Sichuan Chengfei Integration Technology Corp Ltd

Chengfei Integration disclosed its 2026 interim report, with operating revenue up 10.8% year on year, but net loss widened to 58.91 million yuan and operating cash flow turned negative. During the reporting period, the company achieved total operating revenue of 1.099 billion yuan, and net profit attributable to shareholders of the listed company was a loss of 58.91 million yuan, down 294.83% year on year. After deducting non-recurring gains and losses, net profit attributable to the parent company was a loss of 59.9 million yuan, down 289.85% year on year. Higher sales volume of auto parts drove overall revenue upward, and overseas revenue rose 34.84% year on year. However, price competition in the domestic auto market, raw material procurement declines that lagged product price cuts, rising transportation costs, and increased depreciation expenses after subsidiary technical upgrades and capacity expansion pushed the comprehensive gross margin down to 4.92%, a year-on-year decrease of 2.62 percentage points. A large loss at the associated company Zhejiang Jiwen Integrated Body Technology Company Limited caused investment income to fall by 20.76 million yuan year on year, further dragging down profit performance.

Chengfei Integration disclosed its performance forecast, expecting a net loss attributable to the parent company of 47 million to 67 million yuan in the first half of 2026, compared with a loss of 14.9208 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 49 million to 69 million yuan, compared with a loss of 15.3659 million yuan in the same period last year. The company stated that the change in performance was mainly due to a significant decline in gross profit of the automotive parts business, a substantial loss at its associate Zhejiang Jiwen Integrated Body Technology Company leading to reduced investment income, organizational restructuring and staff reduction increasing management expenses, higher provision for bad debts on accounts receivable, and exchange losses driving up financial expenses.