Wangzi New Materials released its 2026 interim report on August 27. Relying on its three core business segments of plastic packaging, film capacitors, and military electronics, the company posted higher revenue but lower profit during the reporting period. Net profit attributable to the parent company fell 28.91% year on year to 11.1619 million yuan, while operating cash flow recorded a net outflow of 44.0521 million yuan. Operating revenue for the period was 1.022 billion yuan, up 2.21% year on year. Revenue from the traditional plastic packaging business was 567 million yuan, down 11.05% year on year, while revenue from the military electronics business was 84.69 million yuan, surging 90.18% year on year. Revenue from the electronic components business was 305 million yuan, up 21.11% year on year, but its gross margin was only 0.32%, a sharp year-on-year decline of 7.77 percentage points. The company said the decline in performance was mainly due to cost and expense pressure during a period of business structure transition. Operating costs for the film capacitor business surged 31.35% year on year, administrative expenses rose 17.41% year on year to 73.32 million yuan, and financial expenses soared to 9.73 million yuan due to exchange losses, an increase of more than 127 times year on year. The company terminated its 2022 restricted stock incentive plan during the period and repurchased and cancelled the relevant shares. Going forward, attention should be paid to the recovery of film capacitor gross margins and the improvement of operating cash flow.
Shenzhen Prince New Materials Co LtdNet profit fell 28.91% and operating cash flow was negative, with rising costs and expenses.
