Victory Precision disclosed its 2026 semi-annual report. In the first half, total operating revenue reached 1.776 billion yuan, up 4.56 percent year on year, but net profit attributable to shareholders of the listed company was negative 197 million yuan, a widening of 364.09 percent from the loss of 42.41 million yuan in the same period last year. Net profit after deducting non-recurring items was negative 208 million yuan, down 294.12 percent year on year. The slight revenue growth was mainly driven by the auto parts business, which posted revenue of 624 million yuan, up 22.63 percent year on year. However, affected by intensifying industry competition and an internal product mix shift, its gross margin fell to 19.91 percent from 31.24 percent a year earlier, down 11.33 percentage points. Consumer electronics revenue was 1.092 billion yuan, down 6.66 percent year on year, with gross margin of 13.05 percent also under slight pressure. There are three core reasons for the sharp deterioration in profit. First, although auto parts revenue grew, the significant decline in gross margin limited the contribution to gross profit. Second, financial expenses rose 75.39 percent year on year to 71.75 million yuan due to foreign exchange gains and losses. Third, asset impairment provisions including inventory write-downs at subsidiaries totaled about 93.59 million yuan, accounting for 48.3 percent of total profit.
Suzhou Victory Precision Manufacture Co LtdNet loss widened 364% to -197M yuan; auto parts gross margin fell 11.33pp to 19.91%.
