Harbin Dongan Auto Engine Co Ltd

Dongan Power released its 2026 half-year report. In the first half, it achieved operating revenue of 2.482 billion yuan, a slight year-on-year increase of 0.13 percent, but net profit attributable to the parent swung from a profit of 3.9212 million yuan in the same period last year to a loss of 8.9347 million yuan, a year-on-year change of negative 327.86 percent. Net profit attributable to the parent after deducting non-recurring items was negative 28.9681 million yuan, narrowing the loss year on year. The swing to a loss was mainly because asset disposal gains in the same period last year were as high as 76.47 million yuan, while this one-off gain fell back to 16.27 million yuan in the current period. As of the end of the reporting period, the company's short-term borrowings increased to 902 million yuan, with the scale of bank borrowings rising significantly. Net cash flow from operating activities was negative 156 million yuan, a substantial narrowing from negative 492 million yuan in the same period last year, thanks to an increase in bill discounting and accounts receivable factoring. In the first half, the company sold 264,700 complete units, of which 52,600 were new energy units, a year-on-year surge of 513.79 percent. The planned life-cycle sales volume of new energy projects exceeds 2.7 million units.

Dongan Auto Engine released its July 2026 production and sales flash report. Engine sales reached 19,000 units, down 44.99% year-on-year. Engine production for the month was 31,500 units, down 13.84% year-on-year. Transmission sales for the month were 5,350 units, down 43.75% year-on-year, while production reached 14,100 units, up 15.33% year-on-year. The above figures are flash report data and are subject to final confirmation in the company's periodic reports.

Dong'an Power disclosed its July production and sales report, with monthly engine sales of only 19,000 units, a year-on-year plunge of 44.99%, and transmission sales of 5,350 units, down 43.75% year-on-year. In the first seven months, cumulative engine sales reached 216,800 units, down 16.01% year-on-year, and cumulative transmission sales were 72,300 units, down 25.91% year-on-year. The company expects a net loss attributable to shareholders of 5.9 million to 8.8 million yuan for the first half of 2026, swinging from profit to loss, with a non-recurring net loss of 22 million to 26 million yuan. The main reasons for the expected loss are rising raw material prices and product price cuts leading to losses in the main business, as well as a decrease in asset disposal gains. As of the close on July 31, Dong'an Power's stock price was 9.63 yuan per share, with a cumulative decline of about 24.61% for the year.