Hubei Donper Electromechanical Group Co. Ltd.

Dongbei Group released its 2026 interim report, with net profit attributable to the parent company at negative 49.6156 million yuan, swinging from profit to loss, a decrease of 118 million yuan compared with the same period last year, down 172.73 percent year on year. The company's total operating revenue was 3.304 billion yuan, and net cash inflow from operating activities was 137 million yuan, down 0.37 percent year on year. The latest asset-liability ratio was 68.00 percent, gross margin was 8.21 percent, ROE was negative 2.11 percent, and diluted earnings per share was negative 0.08 yuan.

Dongbei Group disclosed an earnings forecast, expecting a net loss attributable to the parent of 48.4 million to 58 million yuan in the first half of 2026, compared with a profit of 68.2152 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 65 million to 78 million yuan, compared with a profit of 47.3481 million yuan in the same period last year. The company stated that the change in performance was mainly due to significant exchange losses caused by exchange rate fluctuations. The export business accounts for a relatively high proportion and export volume increased year-on-year, but fluctuations in the renminbi exchange rate led to exchange losses on the translation of foreign currency assets such as US dollar receivables, resulting in a substantial year-on-year increase in financial expenses. In addition, intensified market competition in the industry led to an overall decline in product sales prices, a year-on-year decline in comprehensive gross profit margin, and a year-on-year decrease in operating profit for the period.