Ways Electron Co Ltd

Weishi Electronics released its 2026 interim report. Total operating revenue was 1.133 billion yuan, and net profit attributable to the parent company was a loss of 51.7 million yuan, swinging from profit to loss. Compared with the same period last year, it decreased by 71.18 million yuan, a year-on-year decline of 365.40%. Net cash flow from operating activities was a negative 61.83 million yuan, a decrease of 9.61 million yuan from the same period last year. The company's latest asset-liability ratio was 38.74%, gross margin was 6.84%, return on equity was negative 2.97%, and diluted earnings per share was negative 0.22 yuan.

On August 7, four A-share companies—Quanwei Technology, Tianji Holdings, New Power, and Woge Optoelectronics—disclosed on the same day that they had received penalty notices from securities regulators, with total fines amounting to 64.55 million yuan. Quanwei Technology was fined 30.7 million yuan for failing to disclose related-party transactions and the seizure of major assets as required, with the company and four responsible individuals penalized. Tianji Holdings was fined 5.55 million yuan because financial fraud at a subsidiary led to false records in its 2023 annual report, with the company and four responsible individuals penalized. New Power is suspected of failing to disclose related-party transactions, resulting in material omissions in its periodic reports, and faces proposed fines totaling 25.8 million yuan for the company and five responsible individuals. Woge Optoelectronics' actual controller and a shareholder holding more than 5 percent, along with related parties, face proposed fines totaling 2.5 million yuan for false records in share transfer information disclosures. On the same day, Aerospace Hongtu and its actual controller Wang Yuxiang were placed under investigation by the China Securities Regulatory Commission for suspected illegal information disclosure, and Star Group was also placed under investigation for suspected illegal information disclosure in its 2023 semi-annual report.

Weishi Electronics expects a net loss attributable to shareholders of 48 million to 55.68 million yuan for the first half of 2026, with a net loss after deducting non-recurring items of 48.5 million to 56.3 million yuan, swinging from profit to loss year on year. The company said the main reasons for the loss include high fixed cost allocation as new production lines at a subsidiary ramp up, adverse impact from exchange rate movements on profit, and declining product prices amid intensifying industry competition that dragged down gross margin. The company's net profit attributable to shareholders has already fallen for two consecutive years, dropping 52.56 percent in 2024 and 60.35 percent in 2025, while gross margin slid from 18.35 percent in 2022 to 11.10 percent in 2025. As of the close on July 27, Weishi Electronics traded at 12.52 yuan per share, with its stock price down 32.07 percent so far this year.

Weishi Electronics disclosed its earnings forecast, expecting a net loss attributable to the parent of 48 million to 55.68 million yuan in the first half of 2026, compared to a profit of 19.4808 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 48.5 million to 56.3 million yuan, versus a profit of 10.9419 million yuan a year earlier. The company attributed the loss mainly to higher fixed cost allocation as new production lines at a subsidiary ramp up capacity utilization, adverse impact from exchange rate fluctuations on profit, and a decline in gross margin due to lower product unit prices amid intensifying industry competition. Weishi Electronics is primarily engaged in the research, development and sales of backlight display modules, liquid crystal display modules and other products, forming a layout centered on automotive displays with diversified development in consumer electronics.