Hong Kong – 28 Aug 2026 – Qingling Motors (01122) reported a first-half 2026 revenue of RMB 1.75 billion, down 15.8% year on year, as subdued domestic demand outweighed a resilient export contribution of RMB 60.26 million (3.5% of total sales). The group sold 16,437 vehicles during the period, 2.4% fewer than a year earlier.

Profitability weakened as the gross profit slipped 12.4% to RMB 121.49 million, yet the gross margin edged up to 6.96% (H1 2025: 6.69%) on a marginally faster decline in cost of sales. Operating pressures, including heavier administration (+7.4% to RMB 97.58 million) and R&D expenses (+3.9% to RMB 97.06 million), compounded the top-line contraction. As a result, the group posted a pre-tax loss of RMB 89.70 million versus a loss of RMB 26.12 million a year earlier. Loss attributable to shareholders widened to RMB 90.89 million, translating into a basic loss per share of RMB 3.66 cents (H1 2025: RMB 1.43 cents).

Segment performance underscored a challenging domestic truck market: • Light-duty trucks and chassis generated RMB 941.57 million, 54% of group turnover, but posted a segment loss of RMB 45.18 million. • Medium & heavy-duty trucks and chassis contributed RMB 434.32 million and recorded a modest RMB 4.34 million profit. • Pick-up trucks and chassis delivered RMB 191.40 million, yet incurred a RMB 19.23 million loss. • Auto parts, accessories and other items added RMB 178.42 million, producing a RMB 31.86 million profit.

Other income fell 35.1% to RMB 85.73 million on reduced government subsidies and lower interest income. Finance costs rose to RMB 3.56 million, while the effective tax line showed a credit of RMB 1.64 million, reflecting the continuation of the preferential 15% enterprise income tax rate for western-region encouraged industries.

Balance-sheet resilience remains a key strength. Total assets inched up to RMB 10.92 billion, supported by cash and time deposits of RMB 4.74 billion (43% of total assets). Net current assets stood at RMB 4.78 billion. The group is debt-free; all liabilities relate to trade, lease and other payables, resulting in a gearing ratio of 46.84%. Capital expenditure reached RMB 44.07 million, focused mainly on plant and equipment upgrades, while contracted capex commitments total RMB 87.94 million.

No interim dividend was declared, with the board citing ongoing investments in new-energy initiatives, product development and smart-manufacturing upgrades. The company maintained its headcount at 1,898, incurring staff costs of RMB 166.02 million.

Management highlighted persistent “weak domestic demand and strong foreign trade” as key market dynamics, alongside intensified price competition that compressed sector-wide margins (industry profit margin fell to 1.5% from 4.1% in 2025). To counter these pressures, Qingling Motors plans to accelerate new-energy vehicle roll-outs, deepen overseas expansion, and pursue cost-efficiency initiatives in the second half of 2026.

No material events occurred after the reporting period, and there were no share buy-backs, issuances or major acquisitions during the half-year.