Sanlux Co Ltd

Sanlux released its 2026 interim report on August 26. During the reporting period, the company achieved operating revenue of 529 million yuan, up 20.04 percent year on year, but net profit attributable to the parent company was negative 12 million yuan, down 160.90 percent year on year, swinging from profit to loss. Revenue from the company's core rubber V-belt business was 362 million yuan, accounting for 68.44 percent of total revenue and up 12.95 percent year on year, but gross margin fell 11.21 percentage points to 15.75 percent. Revenue from other businesses was 167 million yuan, up 38.96 percent year on year. The decline in performance was mainly dragged down by rising raw material prices, exchange rate fluctuations, and investment in new businesses. Financial expenses turned from negative to positive, with exchange losses increasing by about 22.57 million yuan, and subsidiary Zhejiang Yinjie Power lost about 12 million yuan. Although net cash flow from operating activities rose sharply by 184.72 percent to 51 million yuan, non-recurring net profit fell 208.21 percent, indicating a temporary weakening of the profitability of the main business.

Sanlux released its 2026 interim report, with total operating revenue of 529 million yuan and net profit attributable to shareholders of negative 11.57 million yuan, swinging from profit to loss, a decrease of 30.56 million yuan compared with the same period last year, down 160.90% year-on-year. Net cash inflow from operating activities was 51.30 million yuan. The company's latest asset-liability ratio was 25.89%, gross margin was 12.44%, ROE was negative 0.36%, and diluted earnings per share was negative 0.01 yuan. The number of shareholders was 45,600, and the top ten shareholders held 31.64% of the total share capital.

Sanlux expects its net profit attributable to listed company shareholders for the first half of 2026 to be between negative 12 million yuan and negative 8 million yuan, compared with a profit of 18.99 million yuan in the same period last year, marking a year-on-year swing from profit to loss and a decline of 163.18% to 142.12%. The company attributed the performance drop mainly to rising upstream raw material prices driving up costs, increased depreciation and amortization of fixed assets during the production ramp-up phase of the Tiantai project, and exchange losses on US dollar cash deposits due to currency fluctuations. The company purchases over 10,000 tonnes of natural rubber annually, with natural rubber dominating its procurement structure. Its current V-belt market share stands at 25.38%. The company is actively expanding into overseas markets, with overseas orders achieving significant growth in the first half, and is pushing a transformation from single products to complete transmission system solutions. In the secondary market, the company's share price has been falling since hitting a year-to-date high of 5.15 yuan per share on March 18, closing at 3.46 yuan per share as of July 31, down 32.82% from the year's high.