Suzhou Victory Precision Manufacture Co Ltd

Victory Precision disclosed its 2026 semi-annual report. In the first half, total operating revenue reached 1.776 billion yuan, up 4.56 percent year on year, but net profit attributable to shareholders of the listed company was negative 197 million yuan, a widening of 364.09 percent from the loss of 42.41 million yuan in the same period last year. Net profit after deducting non-recurring items was negative 208 million yuan, down 294.12 percent year on year. The slight revenue growth was mainly driven by the auto parts business, which posted revenue of 624 million yuan, up 22.63 percent year on year. However, affected by intensifying industry competition and an internal product mix shift, its gross margin fell to 19.91 percent from 31.24 percent a year earlier, down 11.33 percentage points. Consumer electronics revenue was 1.092 billion yuan, down 6.66 percent year on year, with gross margin of 13.05 percent also under slight pressure. There are three core reasons for the sharp deterioration in profit. First, although auto parts revenue grew, the significant decline in gross margin limited the contribution to gross profit. Second, financial expenses rose 75.39 percent year on year to 71.75 million yuan due to foreign exchange gains and losses. Third, asset impairment provisions including inventory write-downs at subsidiaries totaled about 93.59 million yuan, accounting for 48.3 percent of total profit.

Victory Precision released its 2026 half-year report, with net profit attributable to the parent company widening to a loss of 197 million yuan, compared with a loss of 42.41 million yuan in the same period last year. The company's first-half operating revenue was 1.78 billion yuan, up 4.6 percent year on year, of which consumer electronics business revenue was 1.092 billion yuan, down 6.66 percent year on year, and auto parts business revenue was 624 million yuan, up 22.63 percent year on year. Second-quarter net profit attributable to the parent company was a loss of 121 million yuan, further widening from a loss of 18.63 million yuan in the same period last year. As of the end of the second quarter, the company's net assets attributable to the parent company were 1.525 billion yuan, down 11.0 percent from the end of the previous year.

Victory Precision disclosed its earnings forecast, expecting a net loss attributable to the parent company of 180 million to 220 million yuan in the first half of 2026, compared with a loss of 42.4101 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 170 million to 230 million yuan, compared with a loss of 52.6809 million yuan in the same period last year. The company stated that the change in performance was mainly due to intensified competition in the consumer electronics and automotive parts industries and product mix adjustments, which led to a year-on-year decline in the main business gross profit. At the same time, the consumer electronics business is mainly settled in US dollars, and the impact of fluctuations in the exchange rate of the renminbi against the US dollar had a negative impact on profits. In addition, increased research and development investment in composite current collector products and the provision for impairment of some assets also dragged down short-term profits.