HAIWEI ELEC (09609) Issues Profit Warning, Expects First-Half Net Profit Attributable to Owners to Be Approximately RMB 3.6-7.4 Million, a Decrease of About 80%-90% Year-on-Year

Stock News08-07

HAIWEI ELEC (09609) has announced that the group expects to record a profit attributable to owners of the company of approximately RMB 3.6 million to RMB 7.4 million for the first half of 2026, representing a decrease of about 80.0% to 90.0% year-on-year.

The board of directors believes that the reduction in profit attributable to owners of the company is primarily attributable to: an expected decline in gross profit for the period of approximately RMB 19.9 million to RMB 23.7 million compared to the same period last year, mainly due to intensified competition in the domestic market, which led to a decrease in the average selling prices of the group's main products and put pressure on the group's overall profitability; and an expected increase in foreign exchange losses of approximately RMB 12.5 million to RMB 13.5 million, mainly due to the appreciation of the Renminbi against the Hong Kong dollar in the first half of 2026 and the conversion of the group's proceeds from its initial public offering.

Despite the above challenges, based on the information currently available to the board of directors, the sales volume of the group's core capacitor film products for the six months ended June 30, 2026, is expected to increase slightly compared to the same period in 2025, while selling prices have shown signs of recovery since May 2026. The sales volume performance and price recovery reflect the resilience and market recognition of the company's products amid short-term industry fluctuations.

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