Luyuan Group Holding (02451) saw its shares tumble more than 5% during Tuesday trading, with the stock last changing hands at HK$12.85, down 5.03% on the day, reflecting a turnover of HK$7.048 million.
The decline comes as the company released its interim results for fiscal year 2026, revealing revenue of RMB 2.463 billion—a 20.42% decrease year-over-year. Net profit attributable to equity holders of the company stood at RMB 75.082 million, marking a significant 31.82% contraction compared to the prior-year period.
According to Pacific Securities, the top-line decline in the first half was primarily driven by the transition period of the new national standard policy, which has triggered a phase of demand adjustment across the industry. The brokerage also noted that the company's increased strategic investments contributed to short-term earnings volatility.
The securities firm highlighted that the company's core technological capabilities are supporting its push into the mid-to-high-end product segment, with a continuously enriched product portfolio and smart upgrades underway across its four major manufacturing bases. Additionally, the company is advancing the commercialization of embodied intelligence applications, which the brokerage believes presents a promising new growth trajectory for the future.
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