Weihong Shares has released its 2026 semi-annual report. Net profit attributable to shareholders of the listed company was just 6.02 million yuan, a sharp year-on-year decline of 79.40%. The company achieved operating revenue of 286 million yuan, up 10.06% year-on-year, but the drop in net profit was mainly due to a share-based compensation charge of about 15.58 million yuan during the reporting period, an increase of 8.03 million yuan over the same period last year. At the same time, the disposal of investment property in the same period last year had an impact on net profit of about 6 million yuan. Net cash flow from operating activities was 22.98 million yuan, down 51.77% year-on-year, due to an increase in raw material inventory build-up. By product, the gross margins of control cards, all-in-one machines, and drives fell by 0.48, 2.76, and 1.00 percentage points respectively year-on-year. The company cautioned that as servo drive sales grow rapidly, changes in product mix could lead to a further decline in overall gross margin. Controlling shareholder Zheng Zhikai had cumulatively reduced his holdings by 1,239,180 shares as of 9 March 2026, representing 1.1385% of total share capital, completing the share reduction plan. In the secondary market, as of the close on 30 July, Weihong Shares fell 5.98% to 32.10 yuan per share, with a total market capitalisation of about 3.49 billion yuan. The share price has fallen 12.71% year-to-date.
Shanghai Weihong Electronic Technology Co LtdNet profit fell 79.4% due to share-based compensation charge and prior-year investment property disposal; gross margins declined; cash flow down; controlling shareholder reduced holdings.