FUYAO GLASS H1 Revenue Grows 2.44%; Actual Profit Up 4.78% Excluding Exchange Rate Effects | Financial News

Fuyao Glass Industry Group Co., Ltd. faced performance pressure in the first half of 2026, with net profit declining by over 17% year-on-year. However, exchange losses were the primary drag—excluding the impact of exchange rate fluctuations, the company's profitability actually maintained growth, and its revenue growth also outpaced the overall automotive industry.

The company's 2026 semi-annual report shows that H1 2026 operating revenue was RMB 21.971 billion, a year-on-year increase of 2.44%; net profit attributable to shareholders of the listed company was RMB 3.97 billion, a year-on-year decrease of 17.37%; net profit deducting non-recurring items was RMB 3.879 billion, a year-on-year decrease of 17.58%; and total profit was RMB 4.638 billion, a year-on-year decrease of 19.95%. The company explicitly pointed out that exchange losses for the period amounted to approximately RMB 803 million, compared to exchange gains of approximately RMB 602 million in the same period last year, resulting in a combined negative fluctuation in profit of about RMB 1.4 billion. If the aforementioned exchange factors are excluded, the total profit for this reporting period actually increased by 4.78% year-on-year.

Meanwhile, the company announced an interim cash dividend of RMB 1.00 per 10 shares (including tax) for 2026. Based on the current total share capital of 2,609,743,532 shares, the total proposed cash dividend is approximately RMB 2.61 billion, accounting for 65.73% of the net profit attributable to ordinary shareholders of the parent company for the period.

Revenue Growth Outpaces Industry, Share of High Value-Added Products Increases

During the reporting period, FUYAO GLASS achieved consolidated operating revenue of approximately RMB 21.971 billion, a year-on-year increase of 2.44%. In contrast, data from the China Association of Automobile Manufacturers shows that domestic automobile production and sales from January to June 2026 decreased by 4% and 4.1% year-on-year, respectively, indicating that the company's revenue growth significantly exceeded the overall industry trend.

The company's total assets increased by 5.55% from the end of the previous year to approximately RMB 73.951 billion. Net assets attributable to shareholders of the listed company were approximately RMB 38.174 billion, an increase of 1.65% from the end of the previous year. Net cash flow from operating activities was approximately RMB 4.551 billion, a year-on-year decrease of 15.01%, but the absolute level remains relatively ample.

In terms of product structure, the proportion of high value-added products such as intelligent panoramic sunroof glass, dimmable glass, head-up display glass, ultra-insulating glass, lightweight ultra-thin glass, coated heated glass, and flush tempered laminated glass increased by 8.03 percentage points compared to the same period last year, providing support for the company to consolidate its premium space amidst the wave of electrification and intelligence transformation in the automotive industry.

Exchange Losses Drive Profit Decline, Solvency Indicators Remain Robust

Exchange rate fluctuations were the most significant disturbance variable affecting performance in this period. The company recorded exchange losses of approximately RMB 803 million during the reporting period, compared to exchange gains of approximately RMB 602 million in the same period last year, creating a profit gap of nearly RMB 1.4 billion. This directly led to double-digit declines in both total profit and net profit. The weighted average return on equity decreased from 13.18% in the same period last year to 10.34%, a drop of 2.84 percentage points.

Regarding solvency, the company's current ratio rose from 1.54 to 1.72, and the quick ratio rose from 1.27 to 1.44. The asset-liability ratio slightly increased to 48.38%. In terms of interest repayment, both the loan repayment rate and interest payment rate remained at 100% during the reporting period, and the EBITDA interest coverage ratio was 38.96 times, indicating that overall financial risk is controllable.

In terms of bonds, the company currently has multiple series of outstanding super short-term commercial paper and medium-term notes, with coupon rates ranging from 1.45% to 1.77%, reflecting an overall low financing cost.

Macro and Industry Environment Under Pressure, Company Advances Capacity and Digital Expansion

The company pointed out in its report that in the first half of 2026, the global economy was affected by the interplay of multiple factors including geopolitical conflicts, trade protectionism, and energy supply chain volatility, leading to increased uncertainty. The domestic automotive market showed a differentiated pattern with strong new energy vehicle performance and exports, but weak terminal domestic demand.

Against this backdrop, the company orderly advanced the construction of new projects such as Shanghai aluminum parts, Chongqing aluminum parts, Anhui trim parts, and Anhui molds during the reporting period, aiming to expand capacity and enhance order delivery capabilities. Meanwhile, the company continued to promote the automation upgrade of production lines and the construction of a digital intelligent management and control platform to improve full-process operational efficiency. It also advanced the transformation of its organizational structure towards flattening and project-based management to enhance rapid response capabilities.

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