Fuyao Glass Q1 revenue increased by 5% year-on-year, with core profit up nearly 10% after excluding exchange gains and losses | Financial Report Highlights

Fuyao Glass’s first quarter report for 2026 shows that the company achieved an operating income of 10.413 billion yuan, a year-on-year increase of 5.08%, with revenue maintaining steady growth. Net profit attributable to shareholders of the listed company was 1.712 billion yuan, down 15.68% year-on-year, and total profit was 2.028 billion yuan, down 18.42% year-on-year.

The main source of profit fluctuation is the external variable of exchange rates: The company recorded an exchange loss of 439 million yuan this quarter, while the same period last year saw an exchange gain of 236 million yuan. The company disclosed that if the impact of exchange gains and losses is excluded, the total profit for the quarter actually increased by 9.63% year-on-year. This “restated” data shows that the momentum of core business operations remains solid, and the fundamental expansion of global automotive glass demand is undisturbed.

Notably, the company is in a phase of proactive investment in capacity building. R&D expenses for the first quarter reached 506 million yuan, up 19.6% year-on-year; management expenses were 806 million yuan, up 17.96% year-on-year. These investments will help solidify its competitive barrier in high value-added product areas such as smart car windows and HUD (head-up displays). Net cash flow from operating activities was 357 million yuan, mainly affected by seasonal and operating capital pace, with overall financial status remaining steady.

Stable revenue, optimized costs, exchange rates as the sole variable

In the first quarter, Fuyao Glass’s revenue increased by 5.08% year-on-year. Against the backdrop of the automotive industry’s overall climate still in the recovery phase, this growth rate reflects the company’s counter-cyclical attributes as the global leader in automotive glass.

Cost performance was even more stable. Operating costs were 6.521 billion yuan, up only 1.86% year-on-year, which is significantly below the revenue growth rate, showing the continuous release of scale effect and cost control capability. Gross margin remained basically stable aside from exchange rate disturbances.

Selling expenses were 324 million yuan, up 8.3% year-on-year, basically in line with revenue growth and representing normal market maintenance expenditure. Financial expenses changed from a net gain of 350 million yuan in the same period last year to an expenditure of 259 million yuan this period. This fluctuation mainly stems from the transmission of exchange losses, which became the key factor affecting profit fluctuations this quarter.

The company provided a clear explanation for this change in its financial report: Exchange losses were 439 million yuan this period, as opposed to exchange gains of 236 million yuan last year. It should be noted that this exogenous shock does not reflect changes in the company’s pricing power or market share, but rather short-term financial noise brought by RMB exchange rate volatility combined with centralized overseas settlement exposure.

After removing the exchange rate factor, total profit increased by 9.63% year-on-year, forming a positive connection with revenue growth, with the main business profitability still healthy. Net profit excluding nonrecurring items was 1.643 billion yuan, with nonrecurring gains and losses contributing approximately 68.78 million yuan in total.

Asset expansion and capacity ramp-up

In terms of the balance sheet, as of March 31, 2026, the company’s total assets were 73.339 billion yuan, up 4.68% from the start of the year; shareholders’ equity attributable to the parent company reached 39.142 billion yuan, up 1.585 billion yuan, or 4.22%. Undistributed profit increased from 20.290 billion yuan to 22.001 billion yuan, reflecting cumulative intrinsic accrual from continued net profit growth.

Other comprehensive income changed from -641 million yuan to -1.905 billion yuan, mainly due to differences in converting foreign currency financial statements, which aligns logically with exchange losses and reflects the comprehensive impact of the current exchange rate environment on the financial statements.

Notably, the company’s construction-in-progress remained high at 8.309 billion yuan, with fixed assets steadily rising to 18.439 billion yuan, continuing capital expenditure pace and showing clear capacity expansion intentions. The sharp increase in R&D expenses echoes this logic—the company is actively investing in future competitiveness. The short-term financial performance disturbances are more the result of combined effects from exchange rate volatility and expansion investment, rather than substantive shifts in fundamentals.

Risk Warning & DisclaimerThe market has risks, so investments require caution. This article does not constitute personal investment advice and does not take into account the unique investment goals, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article fit their specific circumstances. Investing based on this is at your own risk.