Kehua Holdings Co Ltd Class A

Kehua Holdings released its 2026 interim report on August 26. During the reporting period, the company achieved operating revenue of 1.036 billion yuan, down 4.02 percent year on year. Net profit attributable to the parent company was negative 38 million yuan, swinging from profit to loss compared with the same period last year. Net profit after deducting non-recurring items was negative 123 million yuan, down 144.30 percent year on year. The company mainly engages in key components for turbochargers and chassis systems. Affected by multiple factors including weak domestic demand, product price adjustments, and foreign exchange losses, its performance turned to a loss. Despite the pressure, the company maintained research and development investment of 37 million yuan, focusing on lightweighting for hybrid models and new material applications, and expanded new energy clients such as BYD and Li Auto, seeking to hedge against the downside risks of the traditional fuel vehicle market through product diversification.

Kehua Holdings disclosed its earnings forecast, expecting a net loss attributable to the parent of 3 million to 4.5 million yuan in the first half of 2026, compared with a profit of 55.5951 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 10 million to 15 million yuan, versus a profit of 27.8472 million yuan a year earlier. The company stated that the decline in performance was mainly due to intensified market competition leading to lower sales volumes and prices of major products, reduced gross profit, and significant exchange losses caused by the appreciation of the renminbi. In addition, gains from changes in fair value and government subsidies fell sharply compared with the same period last year. The company said it will step up market development, optimize product mix, strengthen lean management, and deepen exchange rate risk management to enhance profitability.