Zhejiang Dehong Automotive

Dehong Shares has responded to the Shanghai Stock Exchange's annual report inquiry letter, explaining that while 2025 operating revenue rose 30.36 percent year-on-year to 922 million yuan, net profit attributable to the parent company fell 74.99 percent to 12 million yuan. The main reason was a high base in 2024 from land compensation and demolition income, plus equity buyback investment gains from Senyang Technology, which led to a year-on-year decrease of 36.2585 million yuan in non-recurring profit and loss in 2025. The company's energy storage business and supporting products achieved revenue of 100 million yuan, up 266 percent year-on-year, with gross margin turning positive to 13.29 percent. Among these, parking lithium battery revenue grew nearly a hundredfold, and 12 new industrial and commercial energy storage EMC projects were added. As of June 30, 2026, the energy storage business had undelivered orders on hand worth approximately 156 million yuan, and three industrial and commercial energy storage projects under construction with an estimated total investment of about 46.3341 million yuan. Regarding accounts receivable, the book value at end-2025 was 349 million yuan, up 42.41 percent year-on-year, outpacing revenue growth. The company said this was mainly due to energy storage business expansion and changes in customer structure, and that there was no relaxation of credit policies to stimulate sales. On related-party transactions, sales of goods to Quanweidu Company amounted to 32.7047 million yuan, up 223.99 percent year-on-year. The company stated that the transactions had a genuine business background, pricing was fair, and there was no transfer of benefits to related parties.