Why is the Q1 attributable net profit margin relatively low? InWin announced that orders were abundant in the first quarter but were unable to achieve higher shipments and revenue recognition.

InnoVic has released an announcement on its investor relations activity record. In response to an investor’s question, the company disclosed in its “2026 Q1 Report” that the main reasons for the lower net profit margin attributable to the parent company in Q1 2026 are as follows:

InnoVic said that financial expenses increased. Some overseas business project payments are settled in local currencies, and due to the appreciation of the RMB, exchange losses were incurred. In addition, the company’s financing scale increased, resulting in higher interest expenses.

The year-over-year increase in credit impairment losses is mainly because the pace of domestic IDC construction slowed down, and the project implementation cycle became longer, leading to slower settlement and collection cycles, which in turn caused an increase in the provision for bad debts.

Due to changes in the revenue mix in the first quarter, the gross profit margin decreased by 2.16% year-over-year.

Although first-quarter orders were abundant, the company was unable to achieve higher shipments and revenue recognition.