Hong Kong-listed Wuling Motors Holdings Ltd. (Wuling Motors, 00305) reported largely flat revenue but lower earnings for the six months ended 30 June 2026, reflecting resilient sales amid persistent margin pressure and rising associate losses.

Revenue and Profitability • Group revenue edged down 0.6% year on year to RMB 4.00 billion. • Gross profit improved 3.8% to RMB 0.50 billion, lifting the gross margin to 12.5% (1H25: 12.0%). • Net profit fell 26.6% to RMB 63.00 million, dragged by a wider RMB 82.28 million loss from 25.0%-owned associate Wuling New Energy. • Profit attributable to shareholders declined 33.5% to RMB 26.20 million; basic EPS slipped to RMB 0.79 cents from RMB 1.20 cents.

Segment Performance • Automotive Components & Industrial Services: revenue softened 3.3% to RMB 2.74 billion, yet adjusted EBIT rose 17.1% to RMB 91.16 million on product-mix optimisation and cost control. • Vehicles’ Power Supply Systems: revenue inched up 2.6% to RMB 0.88 billion; adjusted EBIT reached RMB 15.94 million, reversing prior-year weakness on higher new-energy product sales. • Commercial Vehicles Assembly: revenue climbed 14.6% to RMB 0.36 billion, while adjusted EBIT surged 76.7% to RMB 49.44 million, aided by off-road and special-purpose vehicle demand and initial unmanned logistics vehicle deliveries.

Cash Flow and Balance Sheet • Operating and investing activities generated positive cash flow, supporting a 17.0% rise in cash and pledged deposits to RMB 2.62 billion. • Bank borrowings fell 22.0% to RMB 1.78 billion; gearing improved to 65.8% (FY25: 79.2%). • Net current liabilities widened slightly to RMB 0.34 billion. • Capital expenditure totalled RMB 222.07 million, focused on capacity expansion in lightweight die-casting and component production.

Other Income & Investments • Other income rose 3.0% to RMB 102.27 million, driven by higher government grants offsetting lower bank interest. • All principal-guaranteed structured deposits (aggregate RMB 4.13 billion) matured by 1 April 2026, contributing RMB 6.07 million to interest income. • A RMB 22.50 million equity stake in Liuzhou Lingte was fully disposed at book value.

Dividend • The Board declared no interim dividend.

Management Focus The company reiterated emphasis on “high-end development, digitalisation, green and globalisation”, with priorities on component expansion, drive-by-wire chassis, unmanned logistics vehicles, and enhanced cost and risk controls.