Guangdong Vanward New Electric Co Ltd

Vanward Electric released its 2026 interim report on the evening of August 26. First-half operating revenue was 3.66 billion yuan, down 10.3% year on year, while net profit attributable to the parent company was 61.46 million yuan, down 83.8% year on year, marking the worst interim report since its listing. In the second quarter, net profit attributable to the parent company was a loss of 18.16 million yuan, down 109.1% year on year, the first second-quarter loss since listing. The company said intensifying industry competition, market saturation, and pressure on the market after demand from the trade-in policy was released were the main reasons. Previously, the company had launched a drastic organizational restructuring and faced a 67.21% decline in full-year net profit for 2025.

Vanward Electric released its semi-annual report, with first-half operating revenue and net profit attributable to the parent company at 3.661 billion yuan and 61.4561 million yuan respectively, down 10.34% and 83.78% year-on-year. The company said the decline was mainly affected by weaker-than-expected domestic end consumption and intensified competition in industry channels. Although export business remained stable in scale, gross margin fell due to the switch of overseas production bases and fluctuations in raw material prices. Other kitchen appliance companies such as Zhejiang Meida and ST Shuai Electric also forecast losses. The industry as a whole has entered a period of deep stock adjustment. AVC data showed that retail sales in the kitchen and bathroom market in the first half were 69.6 billion yuan, down 10.7% year-on-year. To address the challenges, Vanward Electric is advancing its transformation from a single product supplier to a comprehensive solution provider, and has launched new ultra-thin gas water heaters. In terms of globalization, phases one and two of the Thai factory are fully operational, phase three construction has started, and the Egyptian factory has entered the stage of mass production.

Vanward Electric disclosed its earnings forecast, estimating net profit attributable to the parent for the first half of 2026 at 60 million to 88.8 million yuan, a year-on-year decline of 76.56% to 84.16%. Deducted non-recurring net profit is expected to be 50 million to 74 million yuan, down 81.95% to 87.81% year-on-year, with basic earnings per share of 0.08 to 0.12 yuan. The company stated that its domestic business was affected by weaker-than-expected end consumption and intensified channel competition, leading to a year-on-year decline in sales revenue. Export business revenue remained stable in scale, but gross margin experienced a short-term decline due to factors such as the transition of overseas production bases and fluctuations in raw material prices. In addition, financial expenses increased by approximately 23.1 million yuan year-on-year, mainly due to a reduction in exchange gains, and non-recurring gains and losses are estimated at about 9.97 million yuan.

Vanward Electric has issued an all-staff letter stating that the company is at the most severe survival juncture since its founding, with some colleagues set to leave and those who stay facing stricter performance assessments. The letter bluntly notes that the kitchen and bathroom appliance industry has entered an ice age, as the deep adjustment in the real estate market has sharply contracted demand for new-home installations, while the replacement market has become a red ocean of fierce competition. Upstream raw material prices are volatile, downstream customer acquisition costs are rising, and the industry price war is intensifying, repeatedly breaking through profit bottom lines. The company reflected on its own insufficient anticipation of market risks, delayed crisis response, and lax cost controls, and announced it will push forward a drastic organizational overhaul, consolidating overlapping departments, eliminating non-core redundant positions, and cutting non-production and non-operational expenses across the entire chain. It will strictly control soft costs such as administrative logistics and welfare subsidies, while tilting resources toward core technology R&D and frontline market offensives. In the first quarter of 2026, Vanward Electric achieved total operating revenue of 2.171 billion yuan, down 5.40 percent year-on-year, with net profit attributable to shareholders of 79.61 million yuan, a decline of 55.60 percent.