Mingxin Xuteng's controlled subsidiary, Liaoning Fuxin New Materials Co., Ltd., has been forced to halt production because the discharge limits of the industrial park's wastewater treatment plant far exceed its treatment capacity. Starting June 27, 2026, the park's wastewater treatment plant further tightened discharge requirements, which far surpassed the maximum capability of Liaoning Fuxin's existing wastewater treatment system. After multiple rounds of unsuccessful negotiations, the company made the decision to stop production on July 27. Liaoning Fuxin achieved operating revenue of 258 million yuan and net profit of 3.16 million yuan in 2025, but had already incurred a loss of 4.95 million yuan in the first quarter of 2026. Mingxin Xuteng stated that it will ensure delivery through inventory and order transfers, and the production halt itself will not have a significant impact on the group's normal operations, but it expects to set aside an asset impairment provision of about 10 million yuan. The company previously forecast a net loss attributable to the parent company of 35 million to 52 million yuan for the first half of 2026, mainly due to factors such as industry price wars, production capacity ramp-up, and insufficient contribution from new products.
Mingxin Automotive Leather Co. Ltd.Subsidiary forced to halt production due to emission limit exceedance, causing impairment and operational disruption.
Directly halted production due to wastewater discharge limits exceeding treatment capacity, leading to impairment.