Motorcycle Manufacturers

Qianjiang Motorcycle released its 2026 interim report on August 27, showing declines in both revenue and profit for the reporting period, with net profit attributable to the parent company plunging 62.43% year-on-year. The financial report shows the company achieved operating revenue of 2.726 billion yuan, down 11.30% year-on-year; net profit attributable to the parent company was 101 million yuan, down 62.43% year-on-year; and non-GAAP net profit was 53 million yuan, down 77.23% year-on-year. Among these, revenue from the complete vehicle sales segment was 2.522 billion yuan, accounting for 92.52% of total revenue, down 12.98% year-on-year. Domestic sales revenue was 827 million yuan, a sharp decline of 50.01% year-on-year, while overseas sales revenue was 1.899 billion yuan, up 33.86% year-on-year, with its share rising to 69.65%. The decline in performance was mainly affected by intensified competition in the domestic large-displacement motorcycle market, weak domestic demand, and increased exchange losses caused by RMB appreciation. Financial expenses turned from a negative 83 million yuan in the same period last year to 33.4469 million yuan. In addition, some overseas subsidiaries such as Benelli Q.J. SRL incurred losses due to reduced sales volumes and exchange rate factors, dragging down overall performance.

Qianjiang Motorcycle released its 2026 interim report on August 27. First-half operating revenue was 2.73 billion yuan, down 11.3% year on year. Net profit attributable to the parent was 101 million yuan, down 62.4% year on year. Net profit attributable to the parent after deducting non-recurring items was 52.94 million yuan, down 77.2% year on year. Net operating cash flow was 475 million yuan, up 145.4% year on year. Earnings per share were 0.1922 yuan. In the second quarter, operating revenue was 1.7 billion yuan, down 2.1% year on year. Net profit attributable to the parent was 140 million yuan, down 23.3% year on year. Net profit attributable to the parent after deducting non-recurring items was 96.45 million yuan, down 44.3% year on year. Earnings per share were 0.2661 yuan. As of the end of the second quarter, total assets were 10.097 billion yuan, up 1.8% from the end of the previous year. Net assets attributable to the parent were 5.196 billion yuan, down 3.2% from the end of the previous year. The company said in the interim report that there were no major changes in its operating business during the reporting period. All-terrain vehicle and electric motorcycle operations, as extensions of the motorcycle main business's industrial chain, both achieved steady sales growth, gradually matured their operating models, and formed efficient synergies with the existing research and development, manufacturing, and channel systems, giving them the ability to continue operating. The core management team and key technical personnel remained stable, and there was no situation in which core competitiveness was seriously damaged by the departure of core personnel or lagging technology iteration.

CETC Chips Technology released its 2026 interim report, showing a net loss attributable to the parent company of 12.59 million yuan, swinging from profit to loss year on year. Total operating revenue was 363 million yuan, down 19.02 percent from the same period last year. Net cash outflow from operating activities was 26.72 million yuan. The company's latest asset-liability ratio was 13.94 percent, gross margin was 32.66 percent, and diluted earnings per share was negative 0.01 yuan.

Loncin Motor released its 2026 interim report, with net profit attributable to the parent company at 991 million yuan, a decrease of 7.73% compared with the same period last year. Total operating revenue was 9.775 billion yuan, and net cash inflow from operating activities was 1.254 billion yuan, down 31.20% year-on-year. The latest asset-liability ratio was 46.99%, gross margin was 19.48%, return on equity was 10.84%, and diluted earnings per share was 0.49 yuan.

Loncin Motor released its 2026 half-year report. Net profit attributable to the parent in the first half was 991 million yuan, down 7.7% year on year. Operating revenue was 9.78 billion yuan, up 0.2% year on year. Net profit attributable to the parent after deducting non-recurring items was 983 million yuan, down 5.05% year on year. Net operating cash flow was 1.254 billion yuan, down 31.2% year on year. In the second quarter, operating revenue was 5.25 billion yuan, up 2.9% year on year, and net profit attributable to the parent was 520 million yuan, down 8.4% year on year. The company said motorcycle sales revenue grew 6.72%, revenue from its own brands reached a record high, and its all-terrain vehicle and three-wheeler businesses also achieved significant sales growth.

Harley-Davidson reported second-quarter revenue of $1.2 billion, missing Wall Street estimates of $1.3 billion, but raised its full-year global motorcycle sales forecast to as many as 138,500 units, up from a previous top of 135,000. Sales rose 3% in the quarter compared to the same period last year, as price cuts attracted more budget-conscious customers. Chief Executive Officer Artie Starrs plans to introduce a lower-priced model called the Sprint, a strategy that has divided analysts. Loop Capital Markets upgraded the stock to buy, citing more affordable models, while S&P Global Ratings cut Harley's debt to junk status, warning that discounting could pressure profitability. Shares fell as much as 2.2% in premarket trading.

Qianjiang Motorcycle expects its core net profit for the first half of 2026 to fall by 75.05% to 79.35% year-on-year, to just 48 million to 58 million yuan. Net profit attributable to shareholders is also expected to decline by 59.15% to 66.57%, to between 90 million and 110 million yuan. The earnings decline is mainly due to weak domestic demand leading to lower sales of large-displacement products in the domestic market, intensifying industry competition and upstream cost pressures driving gross margins lower, and significant exchange losses from the appreciation of the renminbi. The company's gross margin had already declined for two consecutive years in 2024 and 2025, to 26.32% and 25.16% respectively. As of the close on July 14, Qianjiang Motorcycle's share price stood at 10.53 yuan, a year-to-date decline of 28.95%.

CETC Chips has disclosed its earnings forecast, expecting an attributable net loss of 10 million to 13 million yuan in the first half of 2026, compared with a profit of 8.4224 million yuan in the same period last year. The company expects a non-recurring net loss of 24 million to 31 million yuan, versus a loss of 5.4717 million yuan a year earlier. The company said the change in performance was mainly due to soaring memory prices leading to a decline in global smartphone sales, a year-on-year drop in sales revenue from Beidou short message chips, and a persistently sluggish consumer electronics market in traditional application areas for smart power, resulting in lower sales revenue, compounded by rising prices of some raw materials and electronic components. Based on the closing price on July 14, the company's price-to-earnings ratio on a trailing twelve months basis is approximately 679.72 to 772.05 times, its price-to-book ratio on a latest filings basis is about 6.81 times, and its price-to-sales ratio on a trailing twelve months basis is about 17.37 times.

Qianjiang Motorcycle has released its performance forecast for the first half of 2026, expecting attributable net profit to be between 90 million and 110 million yuan, a year-on-year decline of 59.15% to 66.57%. The company said the decline was mainly due to a combination of factors: weak domestic market demand led to a year-on-year drop in sales of large-displacement products for the domestic market, shrinking operating revenue; intensified industry competition and upstream cost pressures caused product gross margins to continue falling, narrowing per-unit profit margins; during the reporting period, the renminbi continued to appreciate, resulting in significant foreign exchange losses on foreign currency settlement business, and financial expenses increased year-on-year, further eroding overall profit.

Qianjiang Motorcycle disclosed its earnings forecast, expecting net profit attributable to the parent in the first half of 2026 to be between 90 million and 110 million yuan, a year-on-year decline of 59.15% to 66.57%. The company stated that weak domestic market demand led to a year-on-year decline in sales of large-displacement products in the domestic market, shrinking operating revenue. Intensifying industry competition and upstream cost pressures caused the gross profit margin of product sales to continue to decline, narrowing the profit margin per unit. At the same time, the continued appreciation of the renminbi exchange rate resulted in significant exchange losses on foreign currency settlement business, increasing financial expenses year-on-year and further eroding overall profits.

Harley-Davidson's stock has returned 19.5% over the past six months, outpacing the S&P 500 by 11% and reaching $24.78 per share, but analysts at StockStory see reasons to avoid the stock. Motorcycles sold fell to 37,300 in the latest quarter, with an average two-year decline of 14.6% year-on-year, signaling weak demand and potential market saturation. The company's free cash flow margin averaged 10.6% over the last two years, limiting reinvestment and shareholder returns, while its return on invested capital has declined significantly, suggesting few profitable growth opportunities. At a forward price-to-earnings ratio of 29.5, the stock is viewed as fully priced with better opportunities elsewhere.

Fender has sent a notice to Yamaha regarding copyright protection for the body shape of its iconic electric guitar, the Stratocaster. Following a German court's recognition of protection within the EU, Fender has since March been expanding notices to manufacturers and retailers demanding they cease production and sales of targeted models. This is the first time a notice to Yamaha, the world's largest musical instrument maker, has come to light. Yamaha has not disclosed which models were named, but says it is reviewing the notice and considering its response. In a statement, Fender said protecting its iconic designs is part of its duty to safeguard its brand and heritage, and expressed its commitment to continuing constructive dialogue with industry partners.

Sinomach Finance Company Limited was fined 400,000 yuan for inaccurate risk classification of certain loans and failure to truthfully reflect asset quality, while responsible personnel in relevant departments were given warnings. Linhai Co., Ltd. received a notification letter from Sinomach Finance on August 14, 2026, and has initiated risk prevention and handling procedures, urging Sinomach Finance to explain the situation, assess risks, and formulate a rectification plan. Sinomach Finance will pay the fine on schedule and implement rectification. This matter will not have a material impact on its daily operations or the financial services it provides to Linhai Co., Ltd., and the deposit and loan business between the two parties will also be unaffected. In the first quarter of 2026, Linhai Co., Ltd. achieved revenue of 326 million yuan and net profit attributable to the parent company of 4.16 million yuan.