In the first half of 2026, 275 listed auto parts companies generated combined revenue of about 822.65 billion yuan, up 5.3% year on year, and net profit attributable to parent companies of about 45.67 billion yuan, down 9.5% year on year. 157 companies saw net profit decline and 50 posted losses; the top ten companies accounted for 51.4% of the sector's profit. Divergence depends on downstream supporting structure, cost pass-through capability, the pace of intelligent product ramp-up, and the degree of overseas implementation.

As of the end of August, under the East Money Choice criteria, 275 listed auto parts companies (excluding duplicate A/B shares) had all disclosed their 2026 half-year reports. According to Gasgoo's company-by-company statistics, these 275 companies achieved combined operating revenue of about 822.65 billion yuan in the first half, up about 5.3% year on year; combined net profit attributable to parent companies was about 45.67 billion yuan, down about 9.5% year on year. Revenue was still growing slightly, while profit has turned downward. This scissors gap forms the basic tone of this round of half-year reports for the parts sector.

I. Revenue up 5.3%, net profit down 9.5%: More revenue without more profit appears in most statements

Demand-side growth has not disappeared. Among the 275 companies, 178 achieved positive year-on-year revenue growth, accounting for about 65%. The increment includes contributions from overseas volume growth and consolidation from acquisitions. But switching to the profit measure, as many as 157 companies saw year-on-year declines in net profit attributable to parent companies, accounting for nearly 60%.

The median better represents the experience of most enterprises: the median year-on-year growth rate of operating revenue was about 5.9%, while the median year-on-year growth rate of net profit attributable to parent companies was about -10.1%. That is, for a mid-tier parts company, first-half revenue grew about 6%, while profit fell about 10%.

By profit/loss status, the sector can be divided into three categories: 112 were 'profitable but with shrinking profit,' still making money but less than last year; 113 had positive year-on-year profit growth; 50 were directly loss-making, accounting for about 18.2%, of which 45 had expanded losses or posted losses for the first time, and only 5 were on a loss-reduction path. The 50 loss-making companies had combined losses of about 2.214 billion yuan.

Top ten take 51.4% of profit: The top and the tail are almost in two different situations

Profit concentration continued to rise. In the first half, only 7 companies had net profit attributable to parent companies exceeding 1 billion yuan, and 82 exceeded 100 million yuan; about 70% of parts companies had first-half net profit below 100 million yuan. Weichai Power (7.701 billion yuan), Fuyao Glass (3.970 billion yuan), Huayu Automotive (2.647 billion yuan), Zhongce Rubber (2.440 billion yuan), and Sailun Tire (2.160 billion yuan) ranked in the top five. Desay SV, Tuopu Group, Weifu High-Technology, Joyson Electronics, and Ningbo Huaxiang ranked sixth to tenth. The top ten combined for 23.484 billion yuan, taking 51.4% of the entire sector's profit. Notably, two tire companies entered the top five at the same time, ahead of intelligentization leaders, which has been uncommon in previous years.

Even among the leaders, the pace was not synchronized. Weichai Power's first-half revenue was 123.163 billion yuan, up 8.85% year on year, and net profit attributable to parent companies rose 36.46%, as the heavy truck and commercial vehicle chain recovered and large-bore engines and overseas business created synergies. Fuyao Glass's revenue was 21.971 billion yuan, up slightly 2.44%, while net profit attributable to parent companies fell 17.37% year on year, including 803 million yuan of exchange losses, compared with 602 million yuan of exchange gains in the same period last year, a difference of more than 1.4 billion yuan between the two; excluding exchange rate factors, its total profit still rose about 4.78% year on year. Huayu Automotive's revenue was 83.939 billion yuan, down slightly 1.43% year on year, and net profit attributable to parent companies fell 8.67%, but net cash flow from operating activities was 7.968 billion yuan, up 16.69% year on year, showing that the cash-generating ability of the main business did not weaken in step with profit.

Whom you follow: Structural dividends from commercial vehicles and new energy

The vehicle market itself was split in H1 this year. According to CAAM data, domestic vehicle production and sales fell 4.0% and 4.1% year on year in H1, of which passenger vehicle production and sales fell 5.9% and 6.0%, while commercial vehicles grew 8.2% and 8.3%. Companies supporting commercial vehicles and the heavy truck chain recovered accordingly. Driveshaft manufacturer Yuandong Drive Shaft had first-half revenue of 905 million yuan, up 25.94%, and net profit attributable to parent companies of 101 million yuan, up 83.78%, a typical example.

Suppliers deeply tied to passenger vehicles, especially those still betting on traditional fuel vehicle supporting, faced more direct pressure. Annual price cuts in vehicle procurement have increased year by year; the more single the supporting share and the more concentrated the customers, the greater the squeeze. Companies following new energy leading models in ramping up volume can still offset price with volume. Price-cut pressure does not fall evenly; suppliers that catch hit models can instead scale up.

Whether costs can be passed on: Gross margin squeeze under an upward materials cycle

In H1, copper, aluminum, natural rubber and other raw materials were in an upward cycle. The average LME copper price in H1 was about USD 13,100/ton, up about 39% year on year. A battery electric vehicle uses 3 to 4 times as much copper as a traditional fuel vehicle, making materials pressure more direct for the new energy supply chain. Leading companies, relying on scale, long-term agreements and deep customer ties, can still absorb part of it; many small and medium-sized suppliers facing powerful automakers have long locked prices, and the gap between rising raw materials and rigid selling prices can only be deducted from their own gross margin.

Tuopu Group's first-half revenue was 14.199 billion yuan, up 9.78%, but net profit attributable to parent companies fell 21.03%, and comprehensive gross margin was 18.81%, down 0.74 percentage points year on year, a typical case of higher revenue without higher profit. Wencan Group and Huada Technology, mainly in aluminum die-casting, also listed aluminum price increases as an important reason for losses in their half-year reports. Wencan Group's first-half revenue was 2.8 billion yuan, basically flat, and net profit attributable to parent companies was -216 million yuan, down more than 1,700% year on year, pressured simultaneously by raw material price increases, declining fuel vehicle supporting orders, and ramping integrated die-casting capacity. Huada Technology reported a book loss of 83.1676 million yuan, but after deducting non-recurring items only lost 6.2342 million yuan; the difference mainly came from fair value fluctuations of long-term equity investments, so the actual gap in the main business was smaller than the apparent net profit figure.

Which side products are bet on, and whether overseas implementation has occurred

Intelligentization and electrification are redistributing per-vehicle value of parts. Electronic components, steer-by-wire chassis and thermal management are scaling up, while traditional mechanical parts are contracting. Bethel Automotive's first-half revenue was 6.272 billion yuan, up 21.46%, and net profit attributable to parent companies was 641 million yuan, up 22.81%; among this, sales of intelligent electronically controlled products were 3.97 million units, up 39%; its electro-mechanical brake (EMB) has completed mass production for its first project and passed TÜV NORD's ASIL-D functional safety certification. Baolong Technology's intelligent suspension-related revenue grew 74.43%, air springs shipped 230,900 units, and its net profit attributable to parent companies was 264 million yuan, up 95.79%.

It is necessary to distinguish that 'winning a nomination' and 'generating revenue' are two different things. Between mass production, ramp-up and profitable scale there are still time and yield gaps. When evaluating the second growth curve, one should distinguish which products are already in volume supply, which are only nomination intentions, and which remain at the concept stage, and should not directly count order expectations into current profit.

Whether overseas implementation is real also makes a direct difference. Mold company Ruihu Mold's first-half export revenue was 310 million yuan, up 77.59%, export share rose from 10.49% to about 16%, and overseas business has become an incremental source in its revenue structure. For parts companies, overseas volume growth is both a channel to hedge domestic annual price-cut pressure and implies higher localization investment, compliance costs and exchange rate exposure; Fuyao Glass's exchange gains/losses are a footnote. Against a backdrop where tariff policies, localized plant construction and logistics capacity still have variables, whether going overseas can move from 'taking orders for export' to 'landing production capacity' will determine the direction of the next round of divergence.