Wuxi Zhenhua released its 2026 half-year report. Net profit attributable to the parent in the first half was 205 million yuan, up 1.9% year on year. Operating revenue was 1.4 billion yuan, up 9.1% year on year. Net profit attributable to the parent excluding non-recurring items was 204 million yuan, up 3.0% year on year. Net operating cash flow was 98.81 million yuan, down 4.8% year on year. In the second quarter, operating revenue was 735 million yuan, up 7.0% year on year, and net profit attributable to the parent was 104 million yuan, down 2.2% year on year. The company said revenue from sub-assembly processing grew substantially, driving a significant improvement in overall gross margin, but gross margins for automotive stamping parts and selective precision electroplating declined due to intensifying industry competition and the impact of fixed equipment being transferred to fixed assets. At the same time, the company continued to deepen cooperation with customers such as Tesla, Li Auto and Xiaomi Auto, and advanced the acquisition of a controlling stake in Deweijia Automotive Electronic Systems Wuxi Company Limited to lay out the automotive high-frequency and high-speed wiring harness business.
Wuxi Zhenhua Auto Parts Co. Ltd.First-half net profit up 1.9% and revenue up 9.1%, with gross margin improvement from sub-assembly processing.
Acquisition of controlling stake in Deweijia to expand into automotive high-frequency wiring harness business.
