Buyang International Interim Results: Revenue Rises 14.1% but Net Turns to RMB0.97 Million Loss

Bulletin Express
Sep 24

Buyang International Holding Inc. (Buyang International) released its unaudited 2026 interim results for the six months ended 30 June 2026.

Revenue and Profitability • Revenue advanced 14.1% year on year to RMB197.10 million, driven largely by stronger North American demand. • Gross profit fell 16.1% to RMB17.80 million as gross margin narrowed to 9.0% from 12.29%, reflecting higher raw-material costs. • The company recorded a loss before tax of RMB2.88 million versus a RMB6.70 million profit a year earlier; net result swung to a RMB0.97 million loss (2025: RMB5.95 million profit). • Basic loss per share amounted to RMB0.001, compared with earnings of RMB0.006 in the prior-year period.

Revenue Mix • Aluminium alloy wheels contributed 95.85% of total revenue, rising 12.9% to RMB188.92 million. • By size, medium wheels (17–20 inches) accounted for 68.80% of product sales, small wheels 20.88%, and large wheels 10.32%. • Geographic split: overseas markets delivered 67.34% of total revenue. Sales to America surged 72.4% to RMB75.34 million, offsetting declines in Asia (-4.4%), Europe (-5.7%), Africa (-26.0%) and Oceania (-4.7%).

Cost Structure and Expenses • Cost of sales increased 18.3% to RMB179.30 million, outpacing revenue growth. • R&D spending rose 31.3% to RMB8.99 million, supporting the development of 166 new wheel products. • Selling and distribution as well as administrative expenses remained broadly stable at RMB4.66 million and RMB5.66 million, respectively. • Net foreign-exchange loss was RMB3.09 million versus a RMB0.24 million gain a year ago.

Balance Sheet and Liquidity • Total assets edged up 0.5% to RMB509.23 million; total equity stood at RMB409.54 million. • Cash and cash equivalents amounted to RMB89.30 million, down 15.8% from year-end 2025 due to increased raw-material purchases. • The company held RMB50.12 million in time deposits and RMB24.85 million in pledged deposits. • Financial assets measured at FVOCI, mainly negotiable certificates of deposit, totalled RMB60.22 million, representing 11.8% of total assets. • The gearing ratio (total debt including lease liabilities to total equity) declined to 1.3% from 1.5% at year-end 2025; no bank borrowings were outstanding.

Operational Metrics • Sales volume reached approximately 504,300 wheels, with 330,900 units exported. • Inventory rose 17.5% to RMB110.51 million, reflecting preparation for secured sales orders. • Trade receivables increased to RMB90.33 million from RMB72.01 million, consistent with higher revenue.

Capital Expenditure and Commitments • Capex for the period was RMB9.87 million, primarily for plant and equipment; outstanding capital commitments totalled RMB4.51 million. • Unutilised IPO proceeds of HKD9.90 million (approximately RMB1.20 million) remain earmarked mainly for production-capacity expansion and R&D, with completion targeted by September 2026.

Dividends • No interim dividend was declared.

Outlook (per company statement) Management plans to continue market expansion and new-customer acquisition while sustaining product development to support long-term growth.

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