Sichuan Chengfei Integration Technology Corp Ltd

Chengfei Integration released its 2026 half-year financial report. Operating revenue was 1.1 billion yuan, up 10.80% year on year, but net profit attributable to the parent company was negative 58.91 million yuan, down 294.83% year on year, and net profit after deducting non-recurring items was negative 59.90 million yuan, down 289.85% year on year. Net cash flow from operating activities was negative 56.04 million yuan, a year-on-year decrease of 133.65 million yuan. Revenue from tooling, molds and auto parts accounted for 96.77% of total revenue, and their gross margin fell 3.49 percentage points year on year, dragging overall gross margin down 2.62 percentage points to 4.92%. Financial expenses reached 10.83 million yuan, up 327.13% year on year, mainly affected by exchange losses, severance costs from the subsidiary Jicheng Ruihu shutting down its mold business, and reduced investment income from the associate Zhejiang Jiwen Integration. The company will not distribute cash dividends, bonus shares, or convert capital reserve into share capital for the 2026 half year.

Chengfei Integration disclosed its performance forecast, expecting a net loss attributable to the parent company of 47 million to 67 million yuan in the first half of 2026, compared with a loss of 14.9208 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 49 million to 69 million yuan, compared with a loss of 15.3659 million yuan in the same period last year. The company stated that the change in performance was mainly due to a significant decline in gross profit of the automotive parts business, a substantial loss at its associate Zhejiang Jiwen Integrated Body Technology Company leading to reduced investment income, organizational restructuring and staff reduction increasing management expenses, higher provision for bad debts on accounts receivable, and exchange losses driving up financial expenses.