Zhejiang Wanliyang Transmission Co Ltd

Wanliyang released its 2026 interim report. Total operating revenue was 1.958 billion yuan, down 30.35% year on year. Net profit attributable to the parent company was 70.3402 million yuan, down 74.56% year on year. Net cash flow from operating activities was negative 219 million yuan, down 175.40% year on year. The company's latest asset-liability ratio was 36.63%, gross margin was 12.69%, down 4.25 percentage points year on year, and ROE was 1.20%, down 3.50 percentage points year on year. Diluted earnings per share were 0.05 yuan, down 76.19% year on year.

Wanliyang disclosed its earnings forecast, expecting attributable net profit for the first half of 2026 to be between 70 million and 80 million yuan, a year-on-year decline of 71.07% to 74.69%. The company noted that in the first half of 2025 it recorded investment income of 119 million yuan from reducing its stake in Insight, while there is no such non-recurring gain in the first half of 2026. At the same time, due to declining passenger car sales, reduced exports of CVT automatic transmissions, and rising prices of raw materials such as aluminum and steel, revenue from the passenger car transmission business fell significantly and costs increased, leading to a sharp year-on-year drop in net profit. The company said it will accelerate overseas market expansion, promote the development of new businesses such as new energy vehicle transmission and drive systems, off-highway vehicle transmission and drive systems, and robot components, and strengthen cost reduction and efficiency improvement to boost performance. Currently, the new businesses are still in the capacity ramp-up and customer validation stage with small scale, but since July the company has been continuously disclosing progress in its robotics business, having completed the platform planning for joint module products and is now pushing for mass production with clients. As of press time, Wanliyang's share price was 5.65 yuan, down about 40.82% for the year, with a total market capitalization of 7.403 billion yuan.