Jing Jin Electric Technologies Co Ltd

Jing-Jin Electric announced its 2026 interim report on August 27. Due to multiple factors including shrinking supporting demand caused by core customers' vehicle platform iterations, asset impairment provisions from North American production line modifications, and reduced government subsidies, the company swung from profit to loss in the reporting period. During the period, the company achieved operating revenue of 707 million yuan, down 30.84 percent year on year. Net profit attributable to the parent company was negative 179 million yuan, swinging from profit to loss year on year. Net profit after deducting non-recurring items was negative 201 million yuan, with losses widening. Net cash flow from operating activities was negative 233 million yuan, turning from a net inflow in the same period last year to a net outflow. The company mainly produces electric drive systems for new energy vehicles. Revenue from electric drive systems for new energy passenger vehicles declined significantly due to product iterations at core customers. Although electric drive systems for non-passenger vehicles achieved growth in both domestic and international markets, the increase could not offset the decline in the passenger vehicle business. The company is responding to challenges by advancing the commissioning of its Heze base, optimizing North American production lines to focus on highly competitive new products, and expanding orders from European heavy truck manufacturers and emerging North American automakers. However, attention should be paid to the pace of volume ramp-up for core customers' new models, the efficiency of converting the new North American production lines into mass production, and the improvement of operating cash flow.