Wencan Group released its 2026 interim report, with net profit attributable to the parent swinging from profit to loss, recording a loss of 216 million yuan, down 1746.84% from 13.11 million yuan in the same period last year. In the first half, the company achieved operating revenue of 2.8 billion yuan, a slight year-on-year decline of 0.11%; net profit attributable to the parent after deducting non-recurring items was a loss of 224 million yuan, down 1994.34% year on year. Profit pressure was mainly affected by high and volatile aluminum prices, reduced shipments due to customer model transitions, and foreign exchange gains and losses shifting from a gain of 19.54 million yuan last year to a loss of 22.77 million yuan in the current period. Operating costs in the reporting period were 2.607 billion yuan, and the comprehensive gross margin fell to 6.87%. Although the company operates a production-to-sales model, the pass-through of aluminum raw material cost adjustments to customers has a lag. Net cash outflow from operating activities in the reporting period was 177 million yuan, compared with a net inflow of 38.73 million yuan in the same period last year, a year-on-year change of negative 557.43%. The company said that in the second half of the year it will promote the pass-through of aluminum material costs, implement overseas orders, optimize overseas plant operations, improve capacity utilization, and strive to improve operating performance.
Guangdong Wencan Die Casting Co LtdHigh and volatile aluminum prices and lagged cost pass-through hurt margins, causing a large loss.
