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Based on a preliminary tally of Tonghuashun iFinD data by Economic Information Daily reporters, as of 12:00 on July 22, classified by Shenyin Wanguo industry segments, a total of 73 A-share auto parts listed companies had disclosed their 2026 interim earnings forecasts. These forecasts show a divergent picture. Among them, the number of companies forecasting a slight increase, a narrowed loss, a return to profitability, a pre-increase, or continued profit was 5, 3, 10, 12, and 1, respectively—31 in total, accounting for 42.47% of the companies that had disclosed forecasts.

Profits and losses coexist; forecasts show clear divergence

Among the 73 auto parts listed companies that disclosed forecasts, by warning type, the largest number—17 companies—saw a first-ever loss (首亏).

For example, Huada Technology expects to post net profit attributable to the parent company of between -126 million yuan and -63 million yuan for the first half of 2026, a loss compared with the same period last year. It also expects net profit attributable to the parent excluding non-recurring items to be between -7 million yuan and -3.5 million yuan for the period.

Huada Technology attributed the expected first-half loss to three main factors: first, a large decline in the fair value of its equity investments; second, its die-casting business is in a capacity ramp-up phase with high fixed costs, compounded by rising material prices, which weighed heavily on profitability; and third, a decline in the gross margin of its fuel-vehicle parts business.

The number of companies forecasting a pre-decrease, pre-increase, and return to profitability was 13, 12, and 10, respectively. Take Tiancheng Self-Control as an example: benefiting from higher orders in its passenger-vehicle seat business and its construction-machinery and commercial-vehicle seat businesses compared with the same period last year, which drove up sales revenue and gross profit, the company's operating performance grew year-on-year. Tiancheng Self-Control expects net profit attributable to listed-company shareholders of 48 million to 58 million yuan for the first half of 2026, up 106.27% to 149.24% year-on-year.

Ningbo Huaxiang, meanwhile, expects net profit attributable to shareholders of 610 million to 690 million yuan, returning to profitability year-on-year. Ningbo Huaxiang said that in the first half of 2025 the company disposed of related assets in Europe and North America, incurring a one-off disposal loss of about 1.03 billion yuan (a non-recurring item) that heavily dragged on the prior-year period's profit; with no such one-off gain/loss impact in the current reporting period, net profit attributable to shareholders returned to profitability.

Multiple factors combine; some companies under pressure

After reviewing companies' explanations for the performance changes, the reporter found that intensifying industry competition and rising raw-material prices have affected the operations of many companies.

Chen Shihua, deputy secretary-general of the China Association of Automobile Manufacturers (CAAM), said that in the first half of the year, market flows showed three main divergences: first, domestic demand came under clear pressure, with sales falling by double digits, while exports grew beyond expectations and provided stable support; second, the passenger-vehicle market performed poorly while the commercial-vehicle market continued its positive momentum; and third, the shift between old and new growth drivers continued, with new-energy vehicles growing steadily.

Specifically, Guangdong Hongtu said that due to the multiple effects of the industry's sales decline, intensifying market competition, rising raw-material prices, exchange-rate fluctuations, and high costs during the ramp-up of its newly built projects, its operating revenue and operating profit fell year-on-year.

Dong'an Power said the main reasons for its expected loss were factors in its main business and non-recurring items. The company has continued to optimize its product mix; in the current period, new-energy product sales grew sharply year-on-year and operating profit improved, but its main business still posted a loss due to rising raw-material prices and product price cuts. On the non-recurring side, asset disposal gains were lower than in the same period last year.

Exchange-rate fluctuations were also cited in announcements. Xiangyang Bearing said in its performance announcement that its loss for the period was mainly due to a decline in its domestic operations and continued losses at its overseas subsidiaries. In addition, affected by exchange-rate fluctuations, its exchange losses this period were higher than in the same period of prior years.

Yueling Shares said its profit came under pressure for two reasons: first, greater volatility in the foreign-exchange market and larger exchange losses due to exchange-rate changes; and second, aluminum ingot prices for key raw materials remained high, raising production costs and lowering profits.

Deploying new businesses and actively expanding into new tracks

Many institutions believe that in the first half of the year the auto industry has already fully reflected pressures such as weakening demand and rising costs. At the same time, parts companies are leveraging their traditional manufacturing strengths to expand into new tracks such as intelligent driving, data-center liquid cooling, and humanoid robots.

A research report by China International Capital Corporation (CICC) said leading parts companies, relying on mature technology reserves in mechatronics, precision manufacturing, thermal management, and wire-controlled actuation, have begun cross-track expansion to open up medium- and long-term second and third growth curves. On the one hand, they are deepening the auto intelligence theme, increasing investment in core incremental components such as intelligent-driving domain controllers, in-vehicle perception, and wire-controlled chassis; on the other hand, drawing on technological synergies, they are breaking into adjacent fields, extending their heat-dissipation, precision-transmission, and precision-machining capabilities to tracks such as humanoid-robot joint reducers and precision structural parts for commercial aerospace. Parts companies are no longer confined to the single vehicle market, transforming from vehicle-equipment suppliers toward all-domain high-end manufacturing platforms.

A research report by Guosheng Securities said auto parts companies' traditional main businesses are under pressure while new businesses are developing well. In the first half of the year, passenger-vehicle domestic demand was weak and the supply chain felt the strain. Companies with deployments in new directions such as AI are expected to benefit from the broader industry trend, with related new businesses expected to contribute meaningfully starting this year.

A research report by Guolian Minsheng Securities said that in the auto parts industry, per-vehicle content value, localization rate, and the pace of globalization determine the potential industry space, while penetration rates determine the track's growth and speed of expansion. It favors the domestic supply chains of independent OEMs and parts going overseas, and, from a product perspective, favors emerging sectors such as intelligent driving and humanoid robots.

Roland Berger, in its previously released report Survival Rules for the Thin-Margin Era: How Auto Parts Companies Can Restructure Their Profit Logic, noted that when formulating market-entry plans, companies need to objectively assess technology barriers, market windows, and fit with organizational capabilities, avoiding merely chasing concepts and preventing the second growth curve from becoming a cash-flow black hole.