HUAYU Automotive Systems Company (600741) investor relations material

Executive summary

• Revenue for H1 2026 was RMB 83.94 billion, down 1.43% year-over-year; net profit attributable to shareholders was RMB 2.65 billion, down 8.67%.

• Operating cash flow increased 16.69% year-over-year to RMB 7.97 billion.

• The company maintained a strong domestic and international customer base, with 67.2% of main business revenue from non-parent group clients.

• No interim dividend or capital increase from reserves was proposed for the period.

Financial highlights

• Gross margin for main business was 11.21%, up 0.40 percentage points year-over-year.

• Basic EPS was RMB 0.839, down 8.71% year-over-year; ROE was 3.87%, down 0.68 percentage points.

• Total assets at period end were RMB 197.38 billion, down 0.91% from year-end 2025.

• Net assets attributable to shareholders were RMB 66.54 billion, down 0.90% from year-end 2025.

• Non-recurring profit and loss contributed RMB 336.83 million to net profit.

Outlook and guidance

• The company will focus on strengthening core business, expanding overseas markets, and accelerating innovation in smart cockpit, chassis, and power platforms.

• Management expects continued intense competition, cost pressures, and supply chain challenges in the automotive sector.