Kunming Yunnei Power (000903.SZ) released its performance forecast for the first half of 2024. The net profit attributable to shareholders of the listed company during the reporting period is expected to be a loss of 80 million yuan to 110 million yuan, compared to a loss of 176.3556 million yuan in the same period of last year. After deducting non-recurring gains and losses, the net profit is expected to be a loss of 97 million yuan to 134 million yuan, compared to a loss of 197.1011 million yuan in the same period of last year. The basic earnings per share is expected to be a loss of 0.042 yuan/share to 0.057 yuan/share.

In the first half of 2024, the traditional commercial vehicle engine market showed a recovery growth trend, but the industry competition remained fierce. For many years, the company's engine products have belonged to the mid-to-high-end products in the industry, with high engine parts costs. As the market competition intensifies, the gross profit per engine is lower. During the reporting period, the sales volume and revenue of the company's engine products have rebounded compared to the same period last year, but the overall R&D and sales expenses have increased. In addition, the high asset-liability ratio of the company after two consecutive years of losses has led to high financial expenses. The company's operating profit cannot cover the daily operating expenses, resulting in a negative net income.

In the first half of 2024, the company continued to improve the quality and reduce the cost of its products through technical transformation and upgrading, internal management optimization, and adjustment of product structure. The gross margin per engine of the company increased compared to the same period last year. At the same time, the company continuously expands its product market and accelerates its product strategy transformation, launching new energy products such as hybrid, extended-range, and natural gas vehicles. In addition, the company has seized the important strategic opportunities in the“One Belt, One Road” and RCEP regional markets, and has deeply cooperated with whole vehicle enterprises and international trade companies to further enhance the brand influence and sales of the company's products in overseas markets. The company's overall loss decreased compared to the same period last year.