Xiangyang Bearing Q1 2026 Report: Revenue and Net Profit Both Decline, Overseas Losses and R&D Investment in Focus

Core Financial Data: Revenue and Profit Both Declining
On April 29, 2026, Xiangyang Bearing (000678) released its first‑quarter report for 2026. The financial report shows that the company faced significant operational pressure during the reporting period, with key financial indicators trending downward year‑on‑year.

• Operating Revenue: Total operating revenue for the quarter was RMB 323 million, down 11.06% from RMB 363 million in the same period of the previous year.

• Net Profit Attributable to Parent Company: The company reported a loss of RMB 18.9982 million, compared with a loss of RMB 13.6282 million in the prior‑year period, representing a year‑on‑year increase in net loss of 39.40%.

• Recurring Net Profit (excl. non‑recurring gains/losses): The loss was RMB 20.2931 million, widening by 34.15% year‑on‑year, indicating weakening profitability from core operations.

• Basic Earnings Per Share (EPS): Basic EPS was -RMB 0.04, compared with -RMB 0.03 in the same period last year.

In‑Depth Analysis: Reasons Behind the Widening Loss
Despite the challenge of declining revenue, details in the financial report reveal a complex picture of cost control and strategic investments.

• Overseas Operations and Cost Pressures
  According to related analyses, one main driver of the expanded loss was an increase in losses from the company’s Polish plant. Meanwhile, total period expenses reached RMB 53.6338 million, up 10.8% year‑on‑year. Notably, financial expenses surged 48.12% year‑on‑year, primarily due to increased exchange losses from subsidiaries, while administrative expenses rose by 6.08%.

• R&D Investment Grows Sharply Against the Trend
  Amid profit pressure, Xiangyang Bearing chose to intensify technological innovation. R&D expenses in the first quarter increased by 33.11% year‑on‑year, indicating that the company is committed to responding to market competition through technological upgrades and building long‑term momentum.

• Gross Margin Fluctuation
  It is worth noting that the company’s gross margin for the quarter was 10.24%, up 2.36 percentage points year‑on‑year but down 15.13 percentage points sequentially from the previous quarter. The net margin was -7.38%, which improved by 1.53 percentage points from the previous quarter despite a year‑on‑year decline.

Changes in Shareholder Structure and Market Dynamics
The financial report also reflects dynamic changes in the capital markets.

• Sharp Reduction in Shareholder Count: At the end of the first quarter of 2026, the total number of shareholders fell to 78,900, a significant decrease of 21.56% from the end of 2025.

• Convergence of Holdings: Alongside the decrease in shareholder count, the average market value per shareholder rose from RMB 68,700 to RMB 73,600, an increase of 7.22%, indicating rising concentration of shareholdings.

Market Performance and Valuation
As of midday on May 6, 2026, Xiangyang Bearing’s share price was RMB 11.81. Because the company is in a loss position, its trailing twelve‑month (TTM) P/E ratio is not meaningful. The latest price‑to‑book (P/B) ratio is approximately 6.87, and the price‑to‑sales (P/S) ratio (TTM) is approximately 3.57.