Fuyao Glass Q1 Revenue Up 5% Year-Over-Year; Underlying Profit Excluding FX Gains/Losses Rises Nearly 10% | Financial Report Insights

Fuyao Glass's Q1 2026 report shows that the company achieved operating revenue of 10.413 billion yuan, a 5.08% year-over-year increase, with steady growth on the revenue side. Net profit attributable to shareholders of the listed company was 1.712 billion yuan, down 15.68% year-over-year, while total profit amounted to 2.028 billion yuan, a decrease of 18.42% year-over-year. The primary source of profit fluctuation is the external variable of exchange rates: This quarter recorded an FX loss of 439 million yuan, compared to an FX gain of 236 million yuan in the same period last year. The company disclosed that if the impact of FX gains and losses is excluded, total profit for this quarter actually grew by 9.63% year-over-year. This "adjusted" data indicates that the operational momentum of core businesses remains solid, and the fundamental demand for global automotive glass has not been shaken. Of particular note is that the company is in an active investment phase for capability building. R&D expenses reached 506 million yuan in the first quarter, up 19.6% year-over-year; management expenses were 806 million yuan, up 17.96% year-over-year. These investments will help consolidate its competitive barriers in high value-added product areas such as smart windows and HUD head-up displays. Net cash flow from operating activities was 357 million yuan, mainly affected by seasonality and working capital timing, while the overall financial position remains robust. Stable Revenue, Optimized Costs, Exchange Rates as the Only Variable In the first quarter, Fuyao Glass's revenue increased by 5.08% year-over-year. Against the backdrop of the automotive industry still being in a recovery phase, this growth rate reflects the company's anti-cyclical attributes as a global leader in automotive glass. Cost performance was even more robust. Operating costs were 6.521 billion yuan, increasing only 1.86% year-over-year, significantly lower than the revenue growth rate, indicating that scale effects and cost control capabilities continue to be released. Gross margin space remained basically stable outside of exchange rate disturbances. Selling expenses were 324 million yuan, up 8.3% year-over-year, roughly matching the revenue growth rate, representing normal market maintenance expenditures. Financial expenses shifted from a net gain of 350 million yuan in the same period last year to an expense of 259 million yuan this period. This fluctuation was mainly driven by the transmission of FX losses, becoming the core factor influencing profit volatility this quarter. Regarding this change, the company provided a clear explanation in its financial report: This quarter recorded an FX loss of 439 million yuan, compared to an FX gain of 236 million yuan in the same period last year. It should be noted that this exogenous shock does not reflect changes in the company's pricing power or market share, but rather short-term financial noise resulting from the combination of RMB exchange rate fluctuations and concentrated settlement of overseas exposure. Excluding FX factors, total profit grew 9.63% year-over-year, well aligning with revenue growth, indicating that profitability in the main business remains healthy. Deducted non-recurring net profit was 1.643 billion yuan, with non-recurring gains and losses contributing approximately 68.78 million yuan. Asset Expansion and Capacity Increase On the balance sheet side, as of March 31, 2026, the company's total assets were 73.339 billion yuan, up 4.68% from the beginning of the year; equity attributable to parent company shareholders was 39.142 billion yuan, an increase of 1.585 billion yuan from the beginning of the year, a rise of 4.22%. Undistributed profits increased from 20.29 billion yuan to 22.001 billion yuan, reflecting internal accumulation brought about by the continuous retention of net profits. Other comprehensive income items changed from -641 million yuan to -1.905 billion yuan, mainly stemming from translation differences in foreign currency financial statements, following the same logic as FX losses, reflecting the comprehensive impact of the current exchange rate environment on financial statements. Of particular note is that the company's construction in progress remains at a high level of 8.309 billion yuan, while fixed assets steadily increased to 18.439 billion yuan, indicating a continuous pace of capital expenditure and clear intentions for capacity expansion. The significant increase in R&D expenses also aligns with this logic—the company is in an active investment phase to boost future competitiveness. Short-term financial performance disturbances are more the result of the combined effect of exchange rate fluctuations and expansion investments, rather than any substantive shift in fundamentals.