From a rural bicycle repair shop in the 1960s to today's Wanxiang Group, the conglomerate has been striving toward its motto of "adding a zero every decade of struggle," which remains prominently displayed on its official website. This phrase has never been removed throughout Wanxiang's development, whether during Lu Guanqiu's era or his son Lu Weiding's current leadership. With the completion of 2025 interim report disclosures, Wanxiang Group's four A-share companies and Hong Kong-listed PUXING ENERGY (00090.HK) have all submitted their first-half "report cards." From the interim performance results, net profits of the five listed companies showed divergence. Wanxiang Qianchao (000559) and Shunfa Hengneng (000631) reported year-on-year net profit growth in the first half, while Chengde Lulu (000848), Wanxiang Denong (600371), and PUXING ENERGY saw year-on-year declines in net profits. Among them, PUXING ENERGY and Wanxiang Denong showed significant declines, with PUXING ENERGY dropping nearly 70% and Wanxiang Denong falling nearly 40%.

**Mixed First-Half Net Profit Performance**

Wanxiang Group is a corporate conglomerate centered around Wanxiang Group Company, founded in 1969. After establishing its leading position in China's automotive parts industry, the group expanded its business into finance, services, modern agriculture and other sectors, eventually acquiring five listed platforms. Recently, all five listed companies have disclosed their 2025 interim reports.

From the interim reports disclosed by the five companies, Wanxiang Qianchao and Shunfa Hengneng both achieved year-on-year growth in first-half net profits. Wanxiang Qianchao reported operating revenue of approximately 6.91 billion yuan during the reporting period, up 8.57% year-on-year, with corresponding attributable net profit of approximately 535 million yuan, up 9.3% year-on-year. In the first half of 2025, Shunfa Hengneng achieved operating revenue of approximately 241 million yuan, down 13.43% year-on-year, with corresponding attributable net profit of approximately 50.38 million yuan, up 14.28% year-on-year.

In contrast, Chengde Lulu, Wanxiang Denong, and PUXING ENERGY all experienced year-on-year declines in first-half net profits. The interim report shows that in the first half of 2025, Chengde Lulu saw both revenue and net profit decline. During the reporting period, the company achieved operating revenue of approximately 1.384 billion yuan, down 15.3% year-on-year, with corresponding attributable net profit of approximately 258 million yuan, down 11.97% year-on-year.

In the first half of this year, Wanxiang Denong achieved operating revenue of approximately 117 million yuan, down 24.39% year-on-year, with corresponding attributable net profit of approximately 24.85 million yuan, down 39.33% year-on-year. The company stated that the main reason for the decline in operating revenue during the reporting period was lower selling prices, while the main reason for profit decline was the decrease in operating revenue.

Financial data shows that in the first half of 2025, PUXING ENERGY achieved operating revenue of approximately 244 million yuan, up 17.4% year-on-year, with corresponding attributable net profit of approximately 12.07 million yuan, down 67.23% year-on-year.

It's worth noting that from Wanxiang Denong's recent performance, the company's net profit has declined year-on-year for two consecutive years in 2023 and 2024. From 2022 to 2024, Wanxiang Denong achieved operating revenues of approximately 235 million yuan, 319 million yuan, and 343 million yuan respectively, with corresponding attributable net profits of approximately 71.97 million yuan, 65.29 million yuan, and 52.63 million yuan respectively.

In terms of equity relationships, all five listed companies are controlled by Lu Weiding, son of Wanxiang founder Lu Guanqiu.

**High Deposits at Wanxiang Finance by Four A-Share Companies**

A review of the four A-share listed companies' interim reports shows that Wanxiang Qianchao, Shunfa Hengneng, Chengde Lulu, and Wanxiang Denong all maintain large deposits at Wanxiang Finance Co., Ltd. (controlled by Wanxiang Group).

Specifically, the interim reports show that Wanxiang Qianchao's deposit balance at Wanxiang Finance was approximately 6.826 billion yuan at the end of the period, while the company's monetary funds at the end of the first half totaled approximately 7.556 billion yuan.

Shunfa Hengneng's deposit balance at Wanxiang Finance was approximately 4.988 billion yuan at the end of the period, while the company's monetary funds at the end of the first half totaled approximately 5.041 billion yuan.

The interim report shows that Chengde Lulu's deposit balance at Wanxiang Finance was approximately 3.086 billion yuan at the end of the period, while the company's monetary funds at the end of the first half totaled approximately 3.239 billion yuan.

Wanxiang Denong's deposit balance at Wanxiang Finance was approximately 217 million yuan at the end of the period, while the company's monetary funds at the end of the first half totaled approximately 286 million yuan. By calculation, as of the end of the first half of this year, Wanxiang Qianchao, Shunfa Hengneng, Chengde Lulu, and Wanxiang Denong had 90.34%, 98.95%, 95.28%, and 75.87% of their monetary funds deposited at Wanxiang Finance, respectively.

Investment and financing expert Xu Xiaoheng stated that enterprise group finance companies are non-bank financial institutions that provide financial management services to enterprise group member units. Generally, listed companies sign "Financial Services Framework Agreements" with finance companies, whereby the finance companies provide financial services to the companies and subsidiaries within their consolidated financial statements, including but not limited to fund settlement, deposits, comprehensive credit, and entrusted loans. "However, large deposits by listed companies at group finance companies may also pose risks such as irregular fund occupation by the group and benefit transfers. If the group's operations deteriorate, there may also be risks of being unable to recover funds," Xu Xiaoheng noted.

Financial commentator Zhang Xuefeng also noted that listed companies placing large amounts of funds in group finance companies has certain rationality, as group finance companies, serving as internal financial institutions, can provide more convenient financial services to member units and improve fund utilization efficiency. However, due to the special affiliated relationship between group finance companies and listed companies, such fund transactions may involve issues related to corporate governance and fund security. Under the group operation model, how to maintain operational synergy while ensuring the independence of listed companies is an issue that requires balance.

**A-Share Companies' Total Market Cap Increases Nearly 6 Billion Yuan**

With A-shares rising this year, the combined total market capitalization of the four companies - Wanxiang Qianchao, Chengde Lulu, Shunfa Hengneng, and Wanxiang Denong - has also grown, with total market cap increasing nearly 6 billion yuan year-to-date.

As of the close on September 1, among the four listed companies, Wanxiang Qianchao, whose main business is automotive parts, had the highest total market cap at 26.03 billion yuan; Chengde Lulu was second with a total market cap of 9.126 billion yuan; Shunfa Hengneng had a total market cap of 7.449 billion yuan; and Wanxiang Denong, in the agriculture sector, had the lowest total market cap at 2.703 billion yuan. According to statistics, as of the latest date, the four A-share listed companies had a combined total market cap of 45.308 billion yuan.

According to iFinD data, as of December 31, 2024, the total market caps of Wanxiang Qianchao, Chengde Lulu, Shunfa Hengneng, and Wanxiang Denong were 20.318 billion yuan, 9.441 billion yuan, 7.042 billion yuan, and 2.525 billion yuan respectively. By calculation, as of the end of 2024, the four listed companies had a combined total market cap of 39.326 billion yuan.

It's clear that Wanxiang Qianchao and Shunfa Hengneng saw their total market caps rise year-to-date, while Chengde Lulu and Wanxiang Denong experienced market cap shrinkage. By calculation, the four stocks' combined total market cap increased by approximately 5.982 billion yuan year-to-date.

Additionally, Wanxiang Denong's interim report shows that the company's R&D expenses in the first half were approximately 6.34 million yuan, up 43.9% year-on-year. Regarding the change in R&D expenses, the company stated that it was mainly due to increased experimental fees and other expenses during the period. Wanxiang Denong's selling expenses in the first half were approximately 18.21 million yuan, up 19.26% year-on-year. Regarding the change in selling expenses, the company stated that it was mainly due to increased promotional material production costs during the period.