Fangzheng Motor Swings to Profit on Strong Drive Motor Demand
Profit turnaround confirmed by interim results Fangzheng Motor reported first-half 2026 net profit of 24.38 million yuan, reversing a year-earlier loss, with revenue up 35.77% to 1.717 billion yuan. The improvement came from more drive-motor mass-production projects and stronger demand for engine controllers, showing the core business is now profitable.
The actual reported profit confirms the earlier forecast and is the main reason the stock is moving.
Drive motor shipments jump 51% First-half new energy drive motor shipments rose 51% year on year to 584,300 units, with cumulative shipments of 4.68 million units across nearly 50 vehicle models. Deep supply ties with SAIC-GM-Wuling, SAIC, Xpeng, Li Auto and Volkswagen underpin future revenue.
Volume growth is the engine behind the profit turnaround and shows demand is real, not one-off.
New joint ventures expand technology and capacity The company formed a joint venture for engine electronic control and gas injection systems, and invested 11 million yuan in a magnetic drive transmission JV with Bosch-linked partners. These moves add new products and potential revenue streams beyond the core motor business.
New JVs signal growth beyond current products, supporting the longer-term investment case.
Robot motors and Vietnam expansion offer optionality, but leverage is high Robot joint motors have begun small-batch supply and are being tested in humanoid robot projects, and the Vietnam subsidiary is being expanded. However, the asset-liability ratio is 71.89% and gross margin is only 12.44%, so profits remain thin and debt-heavy.
It gives the fair counterweight: new growth areas exist, but high debt and low margins limit how much profit reaches shareholders.