Zhejiang Wanfeng Auto Wheel (002085) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 reached ¥3.57 billion, up 3.14% year-over-year, while net profit attributable to shareholders fell 11.64% to ¥243.05 million.

• Operating cash flow turned negative at -¥222.01 million, a sharp decline from ¥204.53 million in Q1 2025.

• Basic EPS was ¥0.12, down 7.69% year-over-year; diluted EPS was ¥0.11.

Financial highlights

• Gross margin remained stable as cost of sales increased in line with revenue.

• R&D expenses dropped 32.93% year-over-year due to capitalization of certain projects.

• Financial expenses rose 69.22% year-over-year, mainly due to increased forex losses.

• Other comprehensive income dropped significantly, mainly due to exchange rate fluctuations.

• Non-recurring gains included government subsidies and other items totaling ¥84.40 million.

Outlook and guidance

• No explicit forward-looking guidance provided, but management commentary highlights ongoing cost pressures and currency volatility.