Beijing Yupont Electric Power Technology Co Ltd

Yubang Electric Power released its 2026 interim report, with net profit attributable to the parent company at negative 44.2654 million yuan, swinging from profit to loss. The company's total operating revenue was 355 million yuan, and net profit attributable to the parent company decreased by 68.3197 million yuan compared with the same period last year, down 284.02 percent year on year. Net cash flow from operating activities was negative 64.4284 million yuan, a decrease of 40.0857 million yuan from the same period last year. The company's latest asset-liability ratio was 55.50 percent, gross margin was 16.04 percent, return on equity was negative 5.39 percent, and diluted earnings per share was negative 0.13 yuan.

Yubang Electric disclosed an earnings forecast, expecting a net loss attributable to the parent company of 42 million to 50 million yuan in the first half of 2026, compared with a profit of 24.0543 million yuan in the same period last year. Deducted non-recurring net loss is expected to be 51 million to 60 million yuan, compared with a profit of 16.1456 million yuan a year earlier. The company said the loss was mainly due to a decline in gross margin and an increase in period expenses. The revenue share of high-margin smart power products fell due to customer delivery delays, while bid prices declined. Additionally, research and development investment and new business promotion led to higher employee compensation and travel expenses.

Yubang Electric announced plans to terminate four fundraising sub-projects, with expected savings of 43.2074 million yuan in raised funds. It will also add a wholly-owned subsidiary as the implementing entity for some fundraising projects and adjust the internal investment structure of related projects. Reasons for termination include changes in market demand, updates to technical specifications, and rising raw material costs. Among them, the Power Digital Twin System R&D Project no longer requires large-scale self-purchased servers due to State Grid's 2025 new regulations that place related businesses on a negative list. The automated production line projects for current transformers and power transformers are affected by State Grid's 2025 upgraded technical specifications for smart energy meters and persistently high copper prices, making it difficult for self-built production lines to achieve economies of scale and cost advantages. The company's full-year 2025 revenue exceeded 1 billion yuan, up 6.71 percent year-on-year, but net profit attributable to shareholders was 76.1216 million yuan and recurring net profit was 61.7153 million yuan, down 31.62 percent and 35.23 percent year-on-year respectively. In the first quarter of this year, revenue was 146 million yuan, up 6.49 percent year-on-year, but net profit attributable to shareholders was negative 22.4433 million yuan, turning from profit to loss year-on-year, mainly affected by a decline in State Grid bidding volumes, product price reductions, and falling gross margins.