Luokai Shares disclosed an earnings forecast, expecting a net profit attributable to the parent company of 22 million to 31 million yuan for the first half of 2026, a year-on-year decline of 45.75% to 61.5%. Deducted non-recurring profit is expected to be 17.5 million to 25 million yuan, a year-on-year drop of 54.97% to 68.48%. The company primarily engages in the research, development, production, and sales of medium and low voltage distribution equipment and key components, represented by circuit breakers and ring main units. The change in performance is mainly due to intensified industry competition, rising prices of raw materials such as copper and silver leading to reduced product gross margins, and increased exchange losses from currency fluctuations.
Jiangsu Luokai Mechanical & Electrical Co Ltd Class ARising prices of raw materials such as copper and silver reduce product gross margins.