Hengerda New Materials (Fujian) Co. Ltd.Revenue up 12% but profit down 32% due to share-based payments and M&A integration costs; emerging businesses grow strongly.

Heng'Erda released its 2026 semi-annual report, achieving operating revenue of 358 million yuan, up 12 percent year on year, while net profit attributable to shareholders of the listed company was 29.2 million yuan, down 32.26 percent year on year. The company said the phased profit pressure was mainly due to increased share-based payment expenses and the fact that benefits from overseas merger and acquisition integration had not yet materialized. Revenue from the metal cutting tools business was 251 million yuan, remaining stable year on year. The combined revenue of the two emerging businesses, intelligent CNC equipment and rolling functional components, rose to 27.81 percent of main business revenue from 16.62 percent in the same period last year. Revenue from the intelligent CNC equipment segment was 27.95 million yuan, up 162.12 percent year on year, with the acquired German SMS company's high-precision thread grinding machines contributing more than 65 percent. Revenue from the rolling functional components segment was 68.86 million yuan, up 68.46 percent year on year, with revenue from linear guides and slider products rising 34.41 percent and 112.50 percent respectively. The German SMS company's order backlog at the end of the period grew 313.19 percent compared with the beginning of the year.
Hengerda New Materials (Fujian) Co. Ltd.Revenue up 12% but profit down 32% due to share-based payments and M&A integration costs; emerging businesses grow strongly.
Order backlog grew 313% year-over-year, indicating strong demand for high-precision thread grinding machines.