According to the Zhitong Finance APP, CHERVON-AUTO (603982.SH) announced that, based on preliminary calculations by the finance department, it is expected to achieve a net loss attributable to the parent company of between 155 million yuan and 185 million yuan for the first half of 2025.

In the first half of 2025, benefiting from the product ramp-up of major clients, the company's sales revenue is expected to grow nearly 20% year-on-year. However, the market competition in the new energy vehicle industry remains fierce, and the prices of related new energy components are under pressure, which has dragged down the gross profit of the company's new energy vehicle components. Additionally, factors such as significant capital investment in the early stages have collectively impacted the company, which is still in a loss-making state.

Nevertheless, thanks to sales growth and improvements in production efficiency and yield, both fixed and variable costs per unit have decreased compared to the same period last year, leading to a gradual recovery in gross profit margin. Furthermore, due to the ongoing cost reduction and efficiency enhancement measures, the proportion of management and R&D expenses relative to revenue has continued to decline, while financial expenses have decreased due to increased foreign exchange gains. These factors combined have resulted in a significant narrowing of the company's net loss for the first half of this year compared to the same period last year