Xinquan Shares disclosed its 2026 half-year report, with revenue reaching 8.015 billion yuan, up 7.45 percent year-on-year, but net profit attributable to the parent company was 414 million yuan, down 1.90 percent, showing a trend of increasing revenue but declining profit. The company attributed the revenue growth and profit decline to industry competition, while net cash flow from operating activities rose 15.69 percent year-on-year to 205 million yuan. On the expense side, financial expenses surged 345.74 percent to 80.6268 million yuan due to exchange gains and losses, administrative expenses grew 25.45 percent to 547 million yuan, and credit impairment losses expanded to 50.9046 million yuan. The company made high-proportion bad debt provisions for several automakers including WM Motor and Hozon Auto. As of the end of the period, short-term borrowings soared to 459 million yuan from 24.0202 million yuan at the end of the previous year, an increase of 1,812.03 percent, and non-current liabilities due within one year reached 1.082 billion yuan, totaling 1.541 billion yuan. The company faces a liquidity test from concentrated debt repayment and interest payments.
Jiangsu Xinquan Automotive Trim Co LtdRevenue up but profit down, financial expenses surged, and short-term borrowings increased 18-fold, raising liquidity concerns.