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WanKong Zhizao: Expected net profit loss of $21 million to -$16 million in the first half of 2026

2026-07-21 17:21:02

Abstract generation in progress

WanKong Zhizao Manufacturing announcement: it expects a net profit loss of RMB 21.00 million to RMB 16.00 million in the first half of 2026. In the market end, affected by a slowdown in overall macroeconomic growth and a slower investment pace in downstream industries, demand in the end market has remained weak, resulting in intense industry competition and putting dual pressure on the company’s sales volume and sales pricing. In the capacity side, given the current capacity utilization rate, the share of fixed costs such as depreciation and labor increases, which passively raises unit costs. In the cost transmission side, some raw material prices rise in phases; combined with a mismatch between procurement cycle and sales cycle, cost pressure cannot be passed down to downstream markets through product prices in a timely manner, squeezing product profit margins. Due to the combined impact of the above factors, the company’s operating revenue for this period has contracted year over year, the consolidated product gross margin has declined significantly, and its operating performance is under pressure.

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