Shenzhen Inovance Tech

Inovance Technology released its first-half 2026 earnings flash report, achieving operating revenue of 24.675 billion yuan, up 20.31% year on year, while net profit attributable to shareholders of the listed company was 2.81 billion yuan, down 5.35% year on year. The decline was mainly due to weaker domestic demand for new energy vehicles and rising raw material costs, which dragged down net profit in the new energy vehicle powertrain business, as well as exchange rate fluctuations that reduced fair value gains on overseas funds. The company's second-quarter net profit was 1.796 billion yuan, and first-quarter net profit was 1.013 billion yuan, meaning second-quarter net profit rose 77% quarter on quarter.

Shanghai Bei Bian Technology has officially submitted its listing application materials to the Beijing Stock Exchange. It expects first-half revenue this year of 270 million to 330 million yuan and net profit of 29 million to 35 million yuan, both up more than 40 percent year-on-year. However, looking at a longer period, from 2023 to 2025 the company's revenue rose from 280 million yuan to 440 million yuan, a cumulative increase of nearly 58 percent, but net profit attributable to the parent grew only slightly from 42.957 million yuan to 52.847 million yuan, with the year-on-year growth rate in 2025 narrowing sharply to 2.8 percent, a clear loss of momentum. The overall gross margin has fallen for three consecutive years, from 29.57 percent to 24.02 percent, mainly because direct materials account for over 80 percent of costs and copper and aluminum purchase prices have kept rising. Facing a sales concentration of over 56 percent among its top five customers such as Inovance Technology, the company lacks pricing power, and the selling prices of its main products have fallen rather than risen. Accounts receivable typically account for around half of current assets, and inventory has surged 112.1 percent over three years, causing the ratio of net operating cash flow to net profit to stay below 0.5 times for three years, with a net outflow of nearly 20 million yuan in 2024. The company plans to raise 485 million yuan in this IPO, of which 110 million yuan will be used to replenish working capital, but it has yet to obtain the property rights for the land of its core investment project.