Zhejiang Baida Precision Mnfg

Baida Precision published its 2026 interim report on August 27. During the reporting period, the company achieved operating revenue of 688 million yuan, down 11.15 percent year on year. Net profit attributable to the parent company was 102 million yuan, up 130.66 percent year on year. Net profit attributable to the parent company after deducting non-recurring items was a loss of 20.8524 million yuan, swinging from profit to loss compared with the same period last year. The profit growth mainly came from recognizing land resumption compensation income of 145 million yuan, but the main business was dragged down by the industry cycle downturn and price competition, causing non-recurring net profit to turn into a loss. Net operating cash flow fell 77.90 percent year on year to 35.6476 million yuan. By business segment, revenue from compressor parts fell 23.71 percent year on year to 327 million yuan, while revenue from automotive parts rose 3.43 percent year on year to 332 million yuan, with the latter unable to offset the decline in the former. The company flagged risks including slower-than-expected progress on its photovoltaic cell project, raw material price fluctuations, and high customer concentration.

Baida Precision Manufacturing disclosed its earnings forecast, expecting net profit attributable to owners of the parent in the first half of 2026 to be 105 million yuan, a year-on-year increase of 138.36 percent. This was mainly due to the recognition of non-current asset disposal gains and losses of approximately 124.13 million yuan from a land resettlement matter, which increased non-recurring profit and loss. After deducting non-recurring profit and loss, net profit was a loss of 19.51 million yuan, compared with a profit of 45.2557 million yuan in the same period last year, a year-on-year decline of 143.11 percent. The reason was that the company's controlling subsidiary's solar cell project had not yet commenced production, resulting in operating losses, and due to supply-demand imbalances in the photovoltaic industry, the company made impairment provisions for related assets. The company is mainly engaged in the research, development, manufacturing and sales of compressor parts and automotive components.