Shanghai Sinotec Co Ltd

Huapei Power released its 2026 interim report, with total operating revenue of 593 million yuan and net profit attributable to the parent company of negative 4.671 million yuan, swinging from profit to loss and down 123.15 percent from the same period last year. Net cash inflow from operating activities was 36.4142 million yuan, down 18.97 percent year on year. The company's asset-liability ratio was 45.94 percent, gross margin was 18.69 percent, return on equity was negative 0.43 percent, and diluted earnings per share was negative 0.01 yuan. The number of shareholders was 18,400, and the top ten shareholders held 55.83 percent of total share capital.

Huapei Power recently responded to the Shanghai Stock Exchange's annual report inquiry, addressing matters including 2025 revenue of 1.162 billion yuan, down 6.33 percent year-on-year, a net loss attributable to the parent of 43 million yuan, swinging from profit to loss, and a consolidated gross margin of 23.07 percent, down 3.20 percentage points from the prior year. The company stated that the revenue decline was due to a roughly 5 percent drop in global turbocharger sales and shrinking demand from key downstream customers, with powertrain revenue falling 7.20 percent year-on-year and sensor revenue edging down 2.14 percent. Combined with a goodwill impairment charge of 68.4627 million yuan, these factors led to the loss; excluding the impairment, profit stood at 14.0132 million yuan. The powertrain gross margin fell 4.29 percentage points, mainly because the revenue share of high-margin wastegate valve components dropped 7.83 percentage points and unit prices decreased 3.27 percent, compounded by shrinking capacity that pushed up fixed cost allocation per unit. The sensor gross margin rose 1.59 percentage points, benefiting from localization of core components and process optimization that reduced costs, with unit costs of two core products falling 4.35 percent and 9.29 percent respectively. The company indicated that the revenue and gross margin trends are in line with the industry.