Sanlux expects its net profit attributable to listed company shareholders for the first half of 2026 to be between negative 12 million yuan and negative 8 million yuan, compared with a profit of 18.99 million yuan in the same period last year, marking a year-on-year swing from profit to loss and a decline of 163.18% to 142.12%. The company attributed the performance drop mainly to rising upstream raw material prices driving up costs, increased depreciation and amortization of fixed assets during the production ramp-up phase of the Tiantai project, and exchange losses on US dollar cash deposits due to currency fluctuations. The company purchases over 10,000 tonnes of natural rubber annually, with natural rubber dominating its procurement structure. Its current V-belt market share stands at 25.38%. The company is actively expanding into overseas markets, with overseas orders achieving significant growth in the first half, and is pushing a transformation from single products to complete transmission system solutions. In the secondary market, the company's share price has been falling since hitting a year-to-date high of 5.15 yuan per share on March 18, closing at 3.46 yuan per share as of July 31, down 32.82% from the year's high.
Sanlux Co LtdRising raw material prices (natural rubber) drive up costs, causing expected first-half loss.