Ningbo Daye Garden Machinery Co Ltd

Daye Shares released its 2026 interim report, with net profit attributable to the parent company of 19.31 million yuan, down 91.42% from the same period last year. Total operating revenue was 2.28 billion yuan, down 10.67% year-on-year. Net cash inflow from operating activities was 256 million yuan, down 41.32% year-on-year. The company's latest asset-liability ratio was 77.60%, up 5.98 percentage points from the same period last year. Gross margin was 21.26%, down 3.16 percentage points year-on-year. Return on equity was 1.56%, down 13.71 percentage points year-on-year. Diluted earnings per share were 0.10 yuan, down 90.99% year-on-year.

Daye Shares released its 2026 half-year report, showing net profit attributable to the parent company plunged 91.4% year-on-year to 19.31 million yuan, with a non-GAAP net loss of 40.85 million yuan. Operating revenue was 2.28 billion yuan, down 10.7% year-on-year, mainly due to weak overseas demand for garden machinery, reduced orders for core products, and a decline in gross margin of about 3.16 percentage points. Total period expenses were 515 million yuan, up 131 million yuan year-on-year, with financial expenses swinging from a negative 12.72 million yuan to 97.19 million yuan, mainly due to foreign exchange losses. Germany's AL-KO, acquired in February 2025 for 20 million euros, contributed a net profit of 73.85 million yuan in the first half, becoming the company's core profit pillar, while several subsidiaries including Lingyue Intelligence, Daye North America, and Daye Mexico recorded losses. Excluding AL-KO's profit, the profitability of the company's traditional garden machinery main business weakened significantly, leaving it highly dependent on the acquired entity to support profits. The company's share price has fallen 44.29% this year.