Zhejiang Founder Motor vs US HRC Steel: why the prices moved differently

Weekly · monthly · quarterly news summaries, side by side in time

Zhejiang Founder Motor Co Ltd (002196.CS)

Q3 202614 Jul – 21 Aug 2026

▲3

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.

August 202614 Jul – 21 Aug 2026

▲3

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.

Latest14 Jul – 21 Aug 2026

▲3

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.

US HRC Steel (STEEL.COMM)

Q3 202624 Jun – 10 Sep 2026

▲2▼1

AI and reshoring demand support steel, but Chinese oversupply caps gains

AI infrastructure drives steel demand AI data centers need heavy structural steel for server racks, floors, and cooling. With 831 projects under construction globally, this new demand supports US HRC prices, especially for modern electric-arc producers like Nucor and Steel Dynamics.
This is a major new source of demand that lifts steel prices.
Capital shifts to real economy, boosting steel A strategist says US capitalism is moving from buybacks to building real assets like steel, copper, and power. This reshoring and supply-chain trend means more investment in steel capacity and higher demand for US HRC.
It signals a broad shift that increases steel demand and investment.
USMCA talks create tariff uncertainty US and Mexico will hold a fourth round of USMCA talks in September. Progress on steel trade is positive, but unresolved issues like Section 232 tariffs (50% on steel) and US content rules keep uncertainty high, which can sway steel prices both ways.
Trade policy directly affects steel flows and prices, and the outcome is unclear.
Chinese oversupply weighs on steel prices Thailand's construction material index shows steel prices fell 0.6% in August due to excess Chinese supply. This global glut, with projected excess capacity of 745 million tons by 2028, pressures US HRC prices by keeping a lid on global benchmarks.
It is a key counterweight that limits price gains from demand.

August 202624 Jun – 10 Sep 2026

▲2▼1

AI and reshoring demand support steel, but Chinese oversupply caps gains

AI infrastructure drives steel demand AI data centers need heavy structural steel for server racks, floors, and cooling. With 831 projects under construction globally, this new demand supports US HRC prices, especially for modern electric-arc producers like Nucor and Steel Dynamics.
This is a major new source of demand that lifts steel prices.
Capital shifts to real economy, boosting steel A strategist says US capitalism is moving from buybacks to building real assets like steel, copper, and power. This reshoring and supply-chain trend means more investment in steel capacity and higher demand for US HRC.
It signals a broad shift that increases steel demand and investment.
USMCA talks create tariff uncertainty US and Mexico will hold a fourth round of USMCA talks in September. Progress on steel trade is positive, but unresolved issues like Section 232 tariffs (50% on steel) and US content rules keep uncertainty high, which can sway steel prices both ways.
Trade policy directly affects steel flows and prices, and the outcome is unclear.
Chinese oversupply weighs on steel prices Thailand's construction material index shows steel prices fell 0.6% in August due to excess Chinese supply. This global glut, with projected excess capacity of 745 million tons by 2028, pressures US HRC prices by keeping a lid on global benchmarks.
It is a key counterweight that limits price gains from demand.

Latest24 Jun – 10 Sep 2026

▲2▼1

AI and reshoring demand support steel, but Chinese oversupply caps gains

AI infrastructure drives steel demand AI data centers need heavy structural steel for server racks, floors, and cooling. With 831 projects under construction globally, this new demand supports US HRC prices, especially for modern electric-arc producers like Nucor and Steel Dynamics.
This is a major new source of demand that lifts steel prices.
Capital shifts to real economy, boosting steel A strategist says US capitalism is moving from buybacks to building real assets like steel, copper, and power. This reshoring and supply-chain trend means more investment in steel capacity and higher demand for US HRC.
It signals a broad shift that increases steel demand and investment.
USMCA talks create tariff uncertainty US and Mexico will hold a fourth round of USMCA talks in September. Progress on steel trade is positive, but unresolved issues like Section 232 tariffs (50% on steel) and US content rules keep uncertainty high, which can sway steel prices both ways.
Trade policy directly affects steel flows and prices, and the outcome is unclear.
Chinese oversupply weighs on steel prices Thailand's construction material index shows steel prices fell 0.6% in August due to excess Chinese supply. This global glut, with projected excess capacity of 745 million tons by 2028, pressures US HRC prices by keeping a lid on global benchmarks.
It is a key counterweight that limits price gains from demand.