ZYNP Corp

Zhongyuan Internal Combustion released its 2026 interim report on August 27, 2026. During the reporting period, the company achieved total operating revenue of 2.467 billion yuan, net profit attributable to the parent of 346 million yuan, and net cash inflow from operating activities of 200 million yuan. The company's latest asset-liability ratio was 35.13%, up 0.08 percentage points from the previous quarter and up 4.28 percentage points from the same period last year; gross margin was 27.16%, down 0.83 percentage points from the same period last year; return on equity was 8.79%. Diluted earnings per share were 0.59 yuan, total asset turnover was 0.37 times, and inventory turnover was 1.76 times, ranking 107th among peer companies that have already disclosed results. The company had 44,700 shareholders, and the top ten shareholders held 178 million shares, accounting for 30.22% of total share capital.

ZYNP has released its 2026 interim report. During the reporting period, it achieved operating revenue of 2.467 billion yuan, up 27.00 percent year on year. Net profit attributable to the parent company was 346 million yuan, up 48.14 percent. Net profit after deducting non-recurring items was 272 million yuan, up 18.64 percent. Net cash flow from operating activities was 200 million yuan, a sharp year-on-year increase of 123.47 percent. The earnings growth was mainly driven by a solid core cylinder liner business and the ramp-up of new businesses such as braking systems and automotive electronics, together with the completion of the controlling merger of ZYNP GKN. Net profit attributable to the parent company included a bargain purchase gain of about 99.63 million yuan, which caused its growth rate to far exceed that of net profit after deducting non-recurring items. By product, cylinder liner revenue was 1.344 billion yuan, up 29.23 percent year on year, accounting for 54.45 percent of total revenue. Brake drum and disc revenue was 394 million yuan, a sharp year-on-year increase of 37.93 percent. Electronic control actuator revenue was 170 million yuan, up 10.84 percent. Revenue from hydrogen fuel cell systems and core components was 18.5094 million yuan, beginning to make a substantive contribution. The company faces risks such as raw material price fluctuations, exchange rate changes and goodwill impairment. Going forward, attention should be paid to the synergies from merger integration and the progress of scaling up new businesses.

ZYNP disclosed an earnings forecast, projecting net profit attributable to the parent of 339 million to 363 million yuan for the first half of 2026, representing year-on-year growth of 45.11% to 55.39%. In January 2026, the company completed the acquisition of a 59% stake in Henan ZYNP GKN Cylinder Liner Co., Ltd., with a bargain purchase gain of 72.56 million yuan booked as non-operating income, boosting current-period profit. From February 2026, ZYNP GKN was consolidated into the group's financial statements. Its large-bore cylinder liner products were freed from the sales restrictions under the original joint venture contract, enabling synergies in production capacity, technology, and global customer resources. In addition, the cylinder liner business optimized its product mix, brake drum products achieved rapid production and sales growth driven by the recovery of the heavy-duty truck industry, and the production and sales scale of new products such as electronic control actuators steadily increased, jointly driving the earnings growth.