According to Zhitong Finance App News, Weitai Chuangke (06133) announced that the Group expects not to make any profit for the six months ending June 30, 2026, while the revenue for the six months ending June 30, 2025 is approximately RMB 449 million. Despite a decrease in earnings, the net loss forecast for the period will narrow from about RMB 8.41 million to about RMB 6.2 million to about RMB 6.5 million in the same period last year. The anticipated reduction in net loss is mainly due to the Group's implementation of effective cost control measures, leading to a reduction in rental expenses and human resources expenses.
The main business of the company's subsidiaries is trading mobile (including components and accessories related to mobile communication) and smart devices, and trading of LED products.
As far as trading mobile (including mobile communication-related components and accessories) and smart devices is concerned: (1) After considering the low profit margins of branded mobile phones and weak consumer demand, the Group adopted a prudent policy during this period and did not take stock of any brand mobile phone inventory to avoid inventory backlog and clearance sales, causing losses to the Group. As stated in the previous announcement, it is expected that the brand's mobile phone sales will gradually resume from June 2026. However, the relevant supplier failed to supply inventory to the Group on terms that would provide the Group with a sufficiently high profit margin. As a result, the Group did not accept the order to avoid losses for the Group. In the second half of 2026, the company will strive to use its original channels to sell a number of customized mobile phones in mainland China, which is expected to bring benefits to the Group's mobile and smart device trading business; (2) The Group has been cooperating with relevant business partners to introduce satellite professional terminals through central procurement and bidding arrangements. Although the Group has made progress in the satellite phone business, shipments of related products are currently expected to commence in the third quarter of 2026. As a result, the business is not expected to contribute revenue during the period.
As far as the sale of LED products is concerned, the Group does not expect to receive revenue contributions from this business segment during this period. The reason is that the Group has also been prudently accepting orders for LED products and focusing on profit control. The RMB appreciated from the end of 2025 to the first half of 2026, which had a significant impact on LED exports and directly reduced the profit margins of suppliers. In June 2026, the company signed a sales contract with a customer to trade LED products. However, it is expected that the profits from this contract will be realized in the second half of 2026. Given that demand for LED products in Western markets is shifting from traditional lighting products to smart, high-efficiency LED products, and the opportunities brought by emerging markets in Southeast Asia, the Middle East and Latin America that rely heavily on imports for LED products, the Group has adopted a strategy to expand overseas to sell LED products to such markets and ensure stable long-term growth. These market trends are expected to translate into demand for the Group's LED products, and the Group expects LED product trading revenue to gradually improve in the second half of 2026.