Beijing WKW Automotive Parts Co Ltd

Fengjing Co. released its 2026 interim report. First-half net profit attributable to the parent was 26.93 million yuan, down 75.95% year-on-year. Operating revenue was 1.299 billion yuan, down 8.4% year-on-year. Net profit attributable to the parent after deducting non-recurring items was 5.83 million yuan, down 94.5% year-on-year. Net operating cash flow was 346 million yuan, up 90.8% year-on-year. In the second quarter, operating revenue was 652 million yuan, down 13.8% year-on-year, and net profit attributable to the parent was 6.1 million yuan, down 91.2% year-on-year. As of the end of the second quarter, total assets were 5.797 billion yuan, down 5.4% from the end of the previous year, and net assets attributable to the parent were 4.4 billion yuan, down 1.1% from the end of the previous year. The company said its main business operations have not changed. It continues to focus on the research, development, production and sales of mid-to-high-end auto parts, while facing structural changes and competitive pressure in the automotive market.

Fengjing Shares has disclosed its earnings forecast, expecting attributable net profit for the first half of 2026 to be between 22 million and 33 million yuan, a year-on-year decline of 70.53% to 80.35%. Deducted non-recurring net profit is expected to be between 6 million and 9 million yuan, a year-on-year drop of 91.56% to 94.37%, with basic earnings per share of 0.01 to 0.02 yuan. The company stated that the profit decline was mainly due to a sharp contraction in domestic demand for traditional fuel vehicles, with sales volume falling 27.8% year-on-year, leading to lower revenue from auto parts supply. Meanwhile, cost and expense reductions did not match the revenue decline, and the new Nanjing plant added depreciation and operating expenses, all weighing on profitability.