Haiwei Elec (Hebei Haiwei Electronic New Material Technology Co., Ltd.) reported a sharp earnings contraction for the six months ended 30 June 2026 as intensified domestic competition drove down average selling prices for its capacitor-film products.
Revenue declined 10.9% year-on-year to RMB 163.54 million, while gross profit fell 34.3% to RMB 42.06 million. The gross margin contracted 9.2 percentage points to 25.7%. Profit attributable to shareholders slid 85.3% to RMB 5.42 million, with EPS at RMB 0.03.
Management attributed the margin squeeze to lower unit prices across key product lines, partly offset by a 0.9% reduction in capacitor-film unit costs and a small increase in sales volume. Net foreign-exchange losses of RMB 13.87 million, stemming from HKD translation of listing proceeds, further weighed on results.
Liquidity strengthened after a RMB 176.00 million deposit refund from Hebei Kunda and partial exercise of the IPO over-allotment option. Cash and cash equivalents rose 18.3% from end-2025 to RMB 523.53 million. Total liabilities edged down 4.8% to RMB 35.55 million, trimming the gearing ratio to 2.91%. The current ratio improved to 27.26x.
Capital commitments contracted sharply to RMB 0.84 million from RMB 815.84 million at year-end 2025 following cancellation of the RMB 1.00 billion production-line contract with Hebei Kunda. First-half capital expenditure reached RMB 70.36 million, driven by a RMB 49.41 million land purchase in Huzhou for the planned Southern China Facility and a RMB 20.00 million minority investment in Sungrow Hydrogen Energy Technology.
R&D spending eased 17.6% to RMB 7.08 million as project cycles fluctuated. Administrative expenses more than doubled to RMB 18.11 million due to post-listing compliance costs.
No interim dividend was declared. The company reiterated its focus on building the Southern China Facility, advancing ultra-thin capacitor-film technology, localising raw-material supply, and exploring AI computing-power leasing opportunities, while cautioning that the latter remains under evaluation.
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