Nanjing Chervon Auto Precision Technology Co Ltd

Chervon Auto disclosed its half-year report on the evening of August 27. In the first half of this year, domestic demand in China's auto market was clearly under pressure. The company's operating revenue fell slightly by 4 percent year on year, while the profit side saw a widening loss due to factors such as relatively high fixed costs. Financial data show that the company achieved operating revenue of 1.169 billion yuan in the first half, down 4.03 percent year on year. Net loss attributable to the parent company was 185 million yuan, wider than the 167 million yuan loss in the same period last year. Net loss after deducting non-recurring items was 192 million yuan, compared with a loss of 173 million yuan a year earlier. In addition, net cash flow from operating activities was negative 49.2 million yuan, turning from a net inflow of 19.62 million yuan in the same period last year to a net outflow, mainly because inventory occupied more funds. During the reporting period, the company's new energy component products achieved operating revenue of 748 million yuan, contributing more than 60 percent of the company's overall revenue share. Mass production of designated projects for key customers such as SVOLT, Schaeffler, Tesla, and Geely progressed well, with sales up sharply year on year. The Ma'anshan production base in Anhui achieved revenue of 526 million yuan, and the Hungary production base achieved revenue of 1.3985 million euros. According to data from the China Association of Automobile Manufacturers, from January to June this year, domestic automobile sales were 9.921 million units, down 21.1 percent year on year, and domestic sales of new energy vehicles were 5.09 million units, down 13.4 percent year on year. In the secondary market, Chervon Auto's latest closing price was 6.19 yuan per share, down about 26 percent for the year.

Quanfeng Auto released its 2026 interim report. During the reporting period, the company achieved operating revenue of 1.169 billion yuan, down 4.03% year on year. Net profit attributable to the parent company was negative 185 million yuan, with the loss widening from negative 167 million yuan in the same period last year. Net profit after deducting non-recurring items was negative 192 million yuan. Net cash flow from operating activities was negative 49 million yuan, turning from a net inflow of 20 million yuan in the same period last year to a net outflow, mainly due to increased inventory tying up funds. Revenue from new energy component products reached 748 million yuan, accounting for more than 60% of the company's total revenue. Mass production of designated projects for key customers such as SVOLT, Schaeffler, and Tesla progressed well. The reasons for the widening losses include declining sales in the domestic vehicle market, high fixed costs due to production capacity at newly built projects not yet being fully released, and research and development expenses increasing 17.96% year on year to 72 million yuan. The company expects that with rising penetration of new energy vehicles and growing demand for lightweighting, the aluminum die-casting component industry still has room for development, but it faces risks such as raw material price fluctuations, high customer concentration, and production capacity release falling short of expectations.

Quanfeng Auto released its 2026 interim report, showing a first-half net loss that widened to 185 million yuan, compared with a loss of 167 million yuan in the same period last year. Operating revenue was 1.17 billion yuan, down 4.0 percent year on year. Net loss attributable to the parent after deducting non-recurring items was 192 million yuan, compared with a loss of 173 million yuan a year earlier. Net operating cash flow was negative 49.2 million yuan, down 350.7 percent year on year. In the second quarter, operating revenue was 647 million yuan, up 4.7 percent year on year, but net loss attributable to the parent was 78.82 million yuan, compared with a loss of 76.59 million yuan a year earlier. The company said that overall revenue declined due to a sharp drop in domestic vehicle market sales, but sales of new energy vehicle components rose significantly year on year, contributing more than 60 percent of total revenue.

Quanfeng Auto disclosed its performance forecast, expecting a net loss attributable to the parent company of 170 million to 200 million yuan in the first half of 2026, compared with a loss of 167 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 180 million to 210 million yuan, compared with a loss of 173 million yuan a year earlier. The company stated that due to factors such as policy adjustments, changes in market structure, and pressure from the macro environment, the domestic auto market experienced a double-digit year-on-year decline. The terminal sales of some customers decreased, leading to a slight year-on-year reduction in operating revenue, while fixed costs were not effectively allocated. Coupled with fluctuations in aluminum prices and annual price reductions from customers, the net loss expanded compared with the same period last year. The company also noted that operational efficiency improved year-on-year, the product mix was optimized, and it will intensify efforts to expand high-quality customers and promote cost reduction and efficiency measures in the future.