Hengbao disclosed an earnings forecast, expecting an attributable net loss of 36 million to 50 million yuan for the first half of 2026, compared with a profit of 35.3541 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 50 million to 64 million yuan, versus a profit of 22.5818 million yuan a year earlier. The company said its traditional domestic main business has entered a phase of saturated stock, and intensified competition has led to an irrational sharp decline in product selling prices. At the same time, the supply of key raw material chips is tight and procurement unit prices have risen, squeezing profit margins from both sides. In addition, the company's full-scale digital transformation and increased upfront investment in overseas business have also affected performance. To turn the situation around, the company plans to expand overseas market development, promote next-generation products such as eSIM and digital security, implement strategic raw material stockpiling and price locking, and advance production automation upgrades.
Hengbao Co LtdIntensified competition led to irrational sharp decline in product selling prices, squeezing profit margins.