Mingxin Xuteng disclosed its earnings forecast, expecting a net loss attributable to the parent company of 35 million to 52 million yuan for the first half of 2026, compared with a loss of 29.3909 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 40 million to 60 million yuan, compared with a loss of 40.971 million yuan a year earlier. The company said the main reasons for the loss are the ongoing escalation of the price war in the automotive industry, with cost-cutting pressure from vehicle manufacturers being passed on to the upstream supply chain, resulting in low product gross margins. Fixed costs remain high as previously planned production capacity is gradually converted to fixed assets, and capacity is still in the ramp-up phase, so economies of scale have not been fully realized. New products have been on the market for only a short time and have yet to contribute effectively to profits.
Mingxin Automotive Leather Co. Ltd.Price war in automotive industry leads to low product gross margins, worsening losses.