Ruifeng Power Group’s interim results for the six months ended 30 June 2026 reveal a modest top-line decline but resilient margins and improved cash generation as the Hebei-based engine-parts maker rebalances its product mix and prepares to supply new automotive clients in the second half.
Key Financials • Revenue fell 5.40% year on year to RMB 520.54 million, driven chiefly by a 44.0% drop in passenger-vehicle cylinder-block sales. • Gross profit slipped 2.40% to RMB 60.54 million; gross margin edged up 0.3 ppt to 11.6% on a pivot toward higher-margin products and tighter cost control. • Net profit attributable to shareholders declined 9.50% to RMB 15.70 million, reflecting the absence of a RMB 7.40 million disposal gain booked in 1H 2025. Excluding this one-off item, underlying profit rose 57.7%. • Operating cash inflow jumped to RMB 57.99 million (1H 2025: RMB 9.66 million). Cash at bank increased to RMB 50.96 million from RMB 29.37 million at end-2025. • Capital expenditure reached RMB 88.60 million, largely for new machining lines; capex commitments stand at RMB 59.05 million. • Net debt climbed to RMB 423.96 million; gearing ratio moved to 42.6% (end-2025: 36.9%) after drawing additional bank facilities.
Segment Performance • Cylinder blocks remained the core contributor, supplying 67.0% of revenue; sales slipped 6.4% to RMB 349.03 million on weaker passenger-vehicle demand. • Cylinder heads revenue rose 4.6% to RMB 146.06 million, buoyed by new-energy hybrid applications; share of group sales increased to 28.1%. • Ancillary components revenue contracted 32.3% to RMB 25.45 million following deliberate scale-back of low-margin lines.
Operational Updates • Production footprint expanded to 5 precision casting lines and 37 machining lines; one additional machining line is under testing and scheduled to start by December 2026. • New supply agreements with Geely Automobile and Chery Automobile are set to commence in 2H 2026, alongside three new product introductions for existing customers. • Strategic collaboration signed with Beijing Huizhi Guoke Technology to co-develop intelligent underwater cleaning and inspection robots, marking Ruifeng Power’s first major diversification beyond automotive castings.
Industry Context China’s auto sector saw total vehicle sales dip ~4% in 1H 2026, with traditional fuel-vehicle sales down 27.8% while new-energy vehicles gained ~7%. Intense pricing pressure and higher input costs have cascaded to component suppliers. Ruifeng responded by exiting lower-margin products, boosting automation, and securing fixed-price raw-material contracts.
Balance Sheet and Dividends • Net assets stood at RMB 994.97 million. • Trade receivables days lengthened to 109 (end-2025: 92) amid late-period sales. • A final dividend of HK$0.03 per share for FY 2025 (total HK$24.00 million, ~RMB 20.87 million) was declared, payable on 4 September 2026; no interim dividend was proposed.
Outlook Management targets revenue and profit growth in 2H 2026 via ramp-up of new OEM programs, sustained cost optimisation, and initial contributions from the robotics venture, while monitoring raw-material volatility and maintaining disciplined capital spending.