Xinchen China Power Holdings Limited Overview
Xinchen China Power is a small-cap Sichuan-based automotive powertrain manufacturer. It sits at the intersection of China's legacy internal-combustion supply chain and the range-extended electric vehicle (REEV) segment. It originated as an engine supplier to the Brilliance/Huachen group, and its most important strategic asset is a 2021 joint venture with Li Auto, Sichuan Li Auto Xinchen Technology. That JV manufactures range-extender gasoline engines for Li Auto's L-series SUVs, and Xinchen books much of the JV's output as low-margin trading revenue. A secondary but higher-margin business machines Bx8 crankshafts and connecting rods for BMW Brilliance Automotive under a non-exclusive nomination running to 2030. Revenue is heavily concentrated, with the largest customer accounting for about 72% in FY2025, and gross margins sit in the low single digits. As REEV demand softens and BMW's China ICE volumes decline, management is diversifying into special-purpose and mining vehicles through the January/February 2026 acquisition of a majority stake in a Shanxi special-vehicle maker, and into low-altitude/aviation range-extender applications.
Company's own description
In the 2025 Annual Report (Report of Directors), the company describes itself as a holding company. The Group's principal activities are the development, manufacture and sale of automotive engines for passenger vehicles and light-duty commercial vehicles, together with the manufacture of engine parts and components for passenger vehicles in the PRC. All products are sold directly to vehicle manufacturers in the PRC, and revenue is recognised at a point in time on delivery. Normal credit terms are 30 to 90 days, extended to 30 to 120 days in the 2026 interim (FY2025 Results Note 4.2; 2026 Interim Note 12).
Independent characterisation
Xinchen actually runs three distinct economic engines that its segment reporting does not cleanly separate.
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Range-extender trading (largest by revenue, thinnest margin). Range-extender gasoline engines are produced by the Li Auto JV (Sichuan Li Xinchen Technology Co., Ltd., 四川理想新晨科技有限公司). The JV is an associate of Xinchen; Li Auto reportedly holds 51% (42How, citing Li Auto CEO Shen Yanan, Aug 2021). Xinchen purchases these units from the associate and on-sells them, booking gross revenue at a very thin margin. Purchases from Li Xinchen were RMB4,900.3M in FY2024 and RMB3,329.1M in FY2025 (FY2025 Results Note 19). Those amounts are of similar magnitude to sales to "Customer A" (RMB5,046.5M and RMB3,415.6M), which strongly suggests Customer A is Li Auto, although the filing does not name it (analyst inference). This flow explains the revenue jump from RMB1.65bn in FY2022 to RMB5.34bn in FY2023, the RMB6.08bn peak in FY2024, and the subsequent collapse to RMB1.22bn in H1 2026.
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Traditional engines. These are Xinchen-manufactured gasoline engines, including the CE-family, NEV-compatible CE engines and the BMW-licensed "Prince" engine lineage, along with diesel engines for light-duty commercial vehicles and pickups. Customers include Brilliance's Jinbei light-commercial vehicle unit, Rox Motor and other OEMs. Margins are modest but higher than in trading.
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Precision engine components. The company supplies Bx8 crankshafts and connecting rods to BMW Brilliance Automotive (BBA), plus crankshafts to BYD and Chery and connecting rods to BYD and Li Auto (2025 AR). This is the highest-margin segment: a segment result margin of about 12–14% in FY2024–FY2025.
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Special-vehicle components (new from 2026). These come through the 53%-owned Shanxi Xinchen Lantian Equipment Manufacturing, formerly Zhonghang Lantian. Its products include compartments for wide-body mining vehicles and dump trucks, special-purpose vehicle modification, containers and shelters, military trucks, and heavy-duty AGVs and chassis.
Revenue model mix (FY2025 Results)
| Revenue type | FY2025 share | Comment |
|---|---|---|
| Product sales: gasoline engines (incl. range-extender trading) | 80.9% | Point-in-time, fixed-price contracts of ≤1 year |
| Product sales: diesel engines | 2.9% | Light-duty commercial vehicle engines |
| Product sales and servicing: engine components | 16.2% | Segment growth in FY2025 was attributed to "more servicing income" |
| Subscription / licensing | 0% | None disclosed |
| Ancillary (other income) | RMB64.1M, outside revenue | Government grants of RMB28.4M, rental income of RMB8.7M (leasing factory space, incl. to Li Xinchen), processing income of RMB6.2M, bad-debt recovery of RMB8.0M |
Value-chain position, customers and end-markets
Xinchen is a Tier-1 powertrain supplier and Tier-2 precision machining supplier. It sells B2B only, to Chinese OEMs. Customer concentration is extreme: the five largest customers accounted for about 91% of FY2025 revenue and the largest for about 72% (2025 AR, "Major Customers and Suppliers"), compared with 94% and 54% in FY2023 (2023 AR). End-markets are:
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PRC passenger REEVs, mainly Li Auto's L6, L7, L8 and L9.
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Premium ICE passenger cars (BMW Brilliance).
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PRC light commercial vehicles, pickups and vans.
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From 2026, mining and off-road special vehicles, military trucks and AGVs.
All external revenue is generated in the PRC (FY2025 Results Note 4.4).
Strategy
Stated strategic themes (2025 AR Chairman's Statement; 2026 Interim Outlook), paraphrased
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Ride the REEV trend. Maintain the Li Auto JV as the anchor and long-term cooperation platform, and add further passenger REEV customers (Rox Motor already delivers target volumes), including overseas customers.
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Extend range extenders to new duty cycles. Targets include commercial vehicles (vans, light trucks, pickups, intercity logistics, cold chain), off-road uses (mining trucks, mobile energy units) and aviation/drones under the low-altitude economy policy.
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Defend and diversify components. Keep BMW Bx8 crankshaft and con-rod supply through 2030, scale supply to BYD, Chery and Li Auto, and develop NEV-specific components.
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M&A-led diversification. Management says it is committed to proactively seeking acquisitions that diversify the portfolio, building on the Lantian deal.
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Geographic expansion. Explore emerging markets including Vietnam and the Middle East.
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Cost discipline. Tighten production and expense controls as part of the going-concern liquidity plan (FY2025 Results Note 3).
Initiatives announced in the last 24 months (Oct 2024 – Oct 2026)
| Date | Initiative | Detail | Status |
|---|---|---|---|
| 18 Oct 2024 | Connected-transaction framework renewals (2025–2027) | Sales to Brilliance capped at RMB106.1M, 168.7M and 218.0M. Purchases from Xinhua Intelligent capped at RMB97.8M, 126.4M and 191.7M. | Active |
| 2,025 | Deepened component supply to BYD and Chery (crankshafts) and to BYD and Li Auto (con-rods) | Customer diversification away from BMW | Ongoing |
| 16 Oct 2025 | Acquisition of 53% of Zhonghang Lantian | Entry into special vehicles, mining, military trucks and AGVs | Completed Jan/Feb 2026 |
| 27 Nov 2025 | Strategic alliance with an aerospace equipment manufacturer (unnamed) | Entry into the aircraft and low-altitude economy markets with range-extender technology | Early stage |
| 1 Jan 2026 | CEO pay restructuring | 50% of US$150k now contingent on Mianyang Xinchen performance metrics | Implemented |
| 2,026 | Range extenders for mining vehicles via Lantian | Mining is expected to remain range-extended longer because of harsh operating conditions | Development |
| 2,026 | Liquidity measures | RMB200M in new bank facilities after FY2025; bank borrowings increased | Implemented |
Sustainability and ESG commitments
The company has published no quantified emissions targets (see §20).
Guidance and medium-term targets
No quantitative financial guidance or medium-term targets are published. Management's qualitative outlook (2026 Interim) expects the PRC auto industry to stabilise gradually in H2 2026, and hopes REEV demand will steady as Li Auto launches refreshed models.
Products & Services
The company does not publish a priced product catalogue. The list below is compiled from annual reports, Morningstar's product list (1TZS, crankshaft, link, CE12, DK4) and trade press. Pricing is not publicly disclosed for any product.
Gasoline engines segment
| Product | Description / capability | Target customer | Launch / status | Source |
|---|---|---|---|---|
| L2E15M range extender (1.5T-class, Prince-engine derived) | Range-extender engine-generator unit produced by the Li Xinchen JV. It derives from the BMW Prince engine DNA. Phase-1 capacity is 200,000 units. | Li Auto L9, L8, L7, L6 | First mass-produced unit on 15 Apr 2022 | CnEVPost (Apr 2022); 2025 AR |
| NEV-compatible CE-family engines | Re-engineered CE engines used as range extenders in electric drive systems | Rox Motor and other REEV makers, including prospective overseas customers | Developed 2022–2023, in sales | 2023 AR; 2025 AR |
| CE12 and related CE-family gasoline engines | Traditional gasoline engines for passenger cars and LCVs | Domestic OEMs | Mature | Morningstar product list; 2023 AR |
| BMW-licensed "Prince" engine | Gasoline engine industrialised under BMW AG licence | Brilliance/Huachen brands (historical) | Industrialised c.2017 | 2017 AR |
| N20 engine (BMW licence) | 2.0T four-cylinder assembled under licence | BMW Brilliance (supply ended 2017), Huasong MPV | Discontinued | 2014 AR; 2017 AR |
| Range-extender solutions for commercial vehicles | Tailored REEV powertrains for large and medium vans, light trucks, pickups, intercity logistics (>300 km) and cold-chain vehicles | LCV OEMs | In development / early sales | 2025 AR |
| Off-road and aviation range extenders | Applications for mining trucks, mobile energy replenishment units and drones | Mining, low-altitude economy | Development stage | 2025 AR |
| 1TZS | Gasoline engine model listed by Morningstar (specifications not disclosed) | LCV/passenger | — | Morningstar |
Diesel engines segment
| Product | Description | Target customer | Status |
|---|---|---|---|
| DK4-series light diesel engines | Diesel engines for light-duty commercial vehicles, minibuses and pickups | Jinbei (Brilliance), other LCV OEMs | Mature. FY2025 segment revenue was RMB135.1M (+17.8%). |
| Engines sold to Brilliance China group | Mainly engines for light-duty commercial vehicles, under the 2025–2027 sale framework with annual caps of RMB106.1M, 168.7M and 218.0M | Jinbei (Shenyang) Automotive | FY2025 actual: RMB58.4M |
Engine components segment
| Product | Description | Customers | Status / volume |
|---|---|---|---|
| Bx8 crankshafts | Forged and machined crankshafts for BMW's modular B38/B48/B58-family engines. BMW AG has nominated Xinchen as a non-exclusive supplier through 2030. | BMW Brilliance Automotive; also BYD and Chery | Cumulative deliveries to BBA exceed 4.9M units. FY2025: 360k units to BBA. |
| Connecting rods | Precision con-rods; a line upgraded in 2016 from N20 to Bx8 | BMW Brilliance; BYD; Li Auto | Cumulative deliveries to BBA exceed 10.2M units. FY2025: 847k to BBA. |
| Component servicing / processing | Servicing income, cited as the driver of FY2025 component growth; processing income of RMB6.2M was recorded in other income | BBA and others | FY2025 |
| NEV-tailored components (pipeline) | Expanded component offering for NEV applications | New NEV customers | Stated priority in 2026 Interim outlook |
Special vehicle components segment (new from 2026; Shanxi Xinchen Lantian)
| Product line | Description | Target customer |
|---|---|---|
| Wide-body mining vehicle and dump-truck compartments | Steel compartments and bodies | Mining fleets, truck OEMs |
| Passenger and cargo vehicle compartments | Body and compartment manufacturing | Vehicle OEMs |
| Special-purpose vehicle modification | Conversion business | Industrial and government |
| Containers and square cabins (shelters) | Manufacturing | Industrial and defence |
| Military trucks | Manufacture and modification | Defence customers |
| Heavy-duty AGVs and truck chassis | Automated guided vehicles for heavy transport | Ports, mines, factories |
| Steel processing and steel products | Ancillary | Industrial |
H1 2026 segment revenue was RMB275.3M, with a segment result of RMB27.7M (10.1% margin).
Other services
Factory premises leasing produced RMB8.7M of rental income in FY2025, including lease income and auxiliary services of RMB11.4M charged to Li Xinchen.
Financial Narrative
Sources: 2025 AR Financial Highlights (FY2021–FY2025), the FY2025 Results, the 2023 AR MD&A and the 2024 AR. Figures are in RMB M unless stated.
Income statement
Notes: FY2021–FY2023 D&A and FY2021 EBITDA come from TipRanks. Its FY2022 and FY2023 EBITDA reconciles exactly to the analyst's EBIT plus D&A method. TipRanks' FY2024 EBITDA of RMB71.5M uses only PP&E depreciation and is not used here; this discrepancy is noted. The company does not report "operating income". The operating profit line above is an analyst construct.
Margins and growth
Revenue CAGR from FY2021 to FY2025 is about 34.0% (analyst calc). This figure is almost entirely a by-product of range-extender trading consolidated gross; it does not represent organic manufacturing growth. Pre-FY2023 revenue was RMB1.5–2.1bn.
Balance sheet
30 June 2026 snapshot (2026 Interim).
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Total assets were RMB3,825.8M and total liabilities RMB1,943.7M.
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Equity attributable to owners was RMB1,780.9M, with non-controlling interests of RMB101.3M.
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Cash was RMB132.7M and pledged deposits RMB37.5M.
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Borrowings were RMB1,131.2M, split between RMB564.2M current and RMB567.0M non-current. Total borrowings rose about 72% in six months, mainly on consolidation and financing of Lantian.
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Lease liabilities fell to RMB0.5M after the BBA lease modification.
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The amount due to the associate dropped to RMB193.0M.
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Net current assets were positive at RMB185.9M, compared with net current liabilities of RMB73.0M at December 2025.
Cash flow
Disclosed interim capex is small. In H1 2026, PP&E additions excluding construction in progress were RMB1.0M, CIP additions RMB4.6M and capitalised engine development RMB11.6M, against RMB0.7M, RMB11.8M and RMB9.6M respectively in H1 2025. Capital commitments were RMB48.1M at 30 June 2026. Free cash flow is therefore not computable from verified data, but the very low capex run-rate implies FCF close to operating cash flow less lease payments.
Ratios (analyst calculations unless stated)
The CCC components for FY2025 were DSO of about 77 days, DIO of about 35 days and DPO of about 84 days, with the associate payable treated as trade-like. Excluding the associate payable, DPO is about 31 days and the CCC about 81 days. The company's gearing ratio rose to 63.52% at 30 June 2026, while debt-to-equity fell to 1.09x.
Commentary on trends, inflections and drivers
Revenue. The five-year trajectory has three regimes.
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In FY2021–FY2022, the business was distressed and shrinking (RMB1.46–1.65bn) after the Huachen collapse removed its anchor customer.
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In FY2023–FY2024, range-extender trading for Li Auto lifted revenue more than threefold to a peak of RMB6.08bn.
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From FY2025 to H1 2026, revenue reversed sharply. It fell 22.5% in FY2025 and 56.4% in H1 2026 as Li Auto's L-series volumes fell and its mix shifted to BEVs.
Because the trading revenue carries a margin of only about 1–2%, the revenue swings have had a muted effect on gross profit, which held steady at RMB176–186M from FY2023 to FY2025.
Profitability. The return to profit in FY2023 was driven by gross profit from trading plus an RMB80.6M share of the JV's profit. In FY2024 the associate turned loss-making (−RMB20.2M), and profit was supported by an RMB94.5M ECL reversal tied to Huachen settlements. FY2025 profit of RMB20.2M had no such cushion: ECL reversal was only RMB1.8M. It relied instead on cost cuts, with administrative expenses down 28.2%, finance costs down 20.4% and other expenses down 26.3%. H1 2026 profit of RMB21.1M (RMB18.1M attributable) was flattered by a non-recurring RMB52.0M lease-modification gain and a RMB7.4M bargain-purchase gain. Excluding those two items, H1 2026 would have shown a pre-tax loss of roughly RMB35.5M (analyst calc).
Balance sheet. The FY2023–FY2024 balance sheet was inflated by about RMB2.1–2.3bn of trade receivables and an offsetting payable to the associate, both created by trading flows. As trading shrank, both unwound. Total assets fell 30% in FY2025, and the associate payable fell 91% from December 2024 to June 2026. Underlying leverage is moderate on a borrowings basis but has risen materially in 2026. The company has carried net current liabilities in every year-end from FY2021 to FY2025, and the FY2025 accounts carry an explicit going-concern basis-of-preparation note. That note relies on RMB576.8M of undrawn facilities plus RMB200M of new facilities obtained after year-end.
Cash. Cash improved from RMB12.9M (FY2021) to RMB272.6M (FY2025), then fell to RMB132.7M by June 2026 after the acquisition payments and the associate payable unwind.
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View Subscription PlansFinancial Detail
Group Entities
| Entity | Relationship | Function |
|---|---|---|
Xinchen China Power Holdings Ltd (Cayman) | Listed holdco | Holding, HK head office |
Mianyang Xinchen Engine Co., Ltd. | Indirect wholly-owned subsidiary | Main operating company: engines, components, R&D centre (Mianyang, Sichuan) |
Xinchen Engine (Shenyang) Co., Ltd. | Subsidiary | Components operations in Shenyang. It is a High and New Technology Enterprise taxed at 15%. |
Shanxi Xinchen Lantian Equipment Manufacturing Co., Ltd. (formerly Zhonghang Lantian) | 53% subsidiary from Jan/Feb 2026 | Special vehicles, mining-truck compartments, AGVs. It is an HNTE taxed at 15%. |
Sichuan Li Xinchen Technology Co., Ltd. | Associate (equity-accounted) | Li Auto range-extender JV. Interest carried at RMB238.1M (30 Jun 2026). |
Lead In Management Ltd (BVI) | 100%-owned by CEO Deng Han; trustee vehicle | Holds 33,993,385 shares (2.65%) under a discretionary trust. The company has lent money to Lead In ("loan to a shareholder", RMB10.1M). |
Revenue by Segment
| Segment (CNY Mn) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Engines total (gasoline + diesel) | 4,651.1 | 5,396.3 | 3,947.0 |
Gasoline engines | — | 5,281.7 | 3,811.9 |
Diesel engines | — | 114.6 | 135.1 |
Engine components | 689.7 | 686.1 | 765.3 |
Total revenue | 5,340.8 | 6,082.4 | 4,712.3 |
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View Subscription PlansRevenue by Segment (FY2024–FY2025)
| Segment result (CNY Mn) | FY2024 | FY2025 |
|---|---|---|
Gasoline engines | 93.0 | 84.0 |
Diesel engines | -2.9 | 8.8 |
Engine components | 93.5 | 93.2 |
Total segment results (= gross profit) | 183.6 | 186.0 |
Segment margin (%)
| Segment margin (%) | FY2024 | FY2025 |
|---|---|---|
Gasoline engines | 1.76 | 2.20 |
Diesel engines | -2.56 | 6.52 |
Engine components | 13.62 | 12.18 |
Group gross margin | 3.02 | 3.95 |
Segment Margins & Growth (%) and Revenue by Segment (%)
| Metric (%) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Engines revenue YoY growth | 358.2 | 16.0 | -26.9 |
Components revenue YoY growth | 8.2 | -0.5 | 11.6 |
Engines % of total revenue | 87.1 | 88.7 | 83.8 |
Components % of total revenue | 12.9 | 11.3 | 16.2 |
Segment Revenue
| Segment | H1 2025 revenue | H1 2026 revenue | YoY % | H1 2025 result | H1 2026 result | H1 2026 margin % |
|---|---|---|---|---|---|---|
Gasoline engines | 2,389.0 | 641.7 | -73.1 | 74.1 | 15.5 | 2.4 |
Diesel engines | 53.8 | 56.3 | +4.6 | 5.9 | 11.0 | 19.6 |
Engine components | 361.6 | 249.5 | -31.0 | 52.4 | 30.8 | 12.3 |
Special vehicle components (new) | — | 275.3 | — | — | 27.7 | 10.1 |
Total | 2,804.4 | 1,222.9 | -56.4 | 132.4 | 85.1 | 6.96 |
Volume (units)
| Volume (units) | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|
Engines sold (incl. traded range extenders) | 86,500 | 417,000 | 519,000 | 383,000 |
Crankshafts sold to BMW Brilliance | 491,000 | 543,000 | 420,000 | 360,000 |
Connecting rods sold to BMW Brilliance | 715,000 | 950,000 | 875,000 | 847,000 |
Income Statement and Per-Share Data
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Revenue (CNY Mn) | 1,462.8 | 1,652.5 | 5,340.8 | 6,082.4 | 4,712.3 |
Cost of sales (CNY Mn) | 1,386.3 | 1,550.1 | 5,165.0 | 5,898.8 | 4,526.3 |
Gross profit (CNY Mn) | 76.4 | 102.4 | 175.9 | 183.6 | 186.0 |
Selling and distribution expenses (CNY Mn) | — | 12.4 | 20.3 | 25.1 | 24.6 |
Administrative expenses (CNY Mn) | — | 143.9 | 123.1 | 157.6 | 113.2 |
Other expenses incl. research (CNY Mn) | — | 12.6 | 54.5 | 33.8 | 24.9 |
Operating profit, GP less S&D, admin and other expenses (CNY Mn, analyst calc) | — | -66.5 | -22.0 | -32.9 | 23.4 |
Share of associate result (CNY Mn) | 0 | -17.4 | 80.6 | -20.2 | -22.1 |
Finance costs (CNY Mn) | — | 62.4 | 57.3 | 47.7 | 38.0 |
EBIT, PBT plus finance costs (CNY Mn, analyst calc) | — | -48.4 | 105.8 | 90.1 | 67.4 |
D&A (CNY Mn; FY2021–23 aggregator-sourced) | 245.4 | 183.8 | 265.3 | 277.8 | 231.9 |
EBITDA, EBIT plus D&A (CNY Mn, analyst calc; FY2021 aggregator) | -2.4 | 135.4 | 371.1 | 367.9 | 299.3 |
Profit before tax (CNY Mn) | -399.7 | -110.7 | 48.5 | 42.4 | 29.4 |
Income tax (CNY Mn) | 6.9 | -5.1 | -7.4 | -4.2 | -9.3 |
Net profit attributable (CNY Mn) | -392.8 | -115.8 | 41.1 | 38.2 | 20.2 |
Basic EPS (MYR Bn) | -0.306 | -0.090 | 0.032 | 0.030 | 0.016 |
Diluted EPS (MYR Bn) | -0.306 | -0.090 | 0.032 | 0.030 | 0.016 |
Dividend per share (HK cents) | 0 | 0 | 0 | 0.97 | 0 |
Margin Analysis (%)
| Metric (%) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Gross margin | 5.23 | 6.20 | 3.29 | 3.02 | 3.95 |
Operating margin (analyst calc) | — | -4.02 | -0.41 | -0.54 | 0.50 |
EBITDA margin (analyst calc) | -0.17 | 8.19 | 6.95 | 6.05 | 6.35 |
Pre-tax margin | -27.32 | -6.70 | 0.91 | 0.70 | 0.62 |
Net margin | -26.85 | -7.01 | 0.77 | 0.63 | 0.43 |
Revenue YoY growth | -14.6 | 13.0 | 223.2 | 13.9 | -22.5 |
Balance Sheet
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total assets (CNY Mn) | 3,964.8 | 4,156.1 | 5,501.1 | 5,477.7 | 3,854.3 |
Non-current assets (CNY Mn) | 2,896.8 | 2,668.0 | 2,488.6 | 2,248.0 | 2,078.1 |
Current assets (CNY Mn) | 1,068.0 | 1,488.1 | 3,012.5 | 3,229.7 | 1,776.2 |
Total liabilities (CNY Mn) | 2,174.2 | 2,481.2 | 3,785.1 | 3,723.6 | 2,091.5 |
Current liabilities (CNY Mn) | 1,974.8 | 1,815.7 | 3,308.2 | 3,293.0 | 1,849.2 |
Shareholders' equity (CNY Mn) | 1,790.6 | 1,674.9 | 1,716.0 | 1,754.2 | 1,762.8 |
Cash and bank balances (CNY Mn) | 12.9 | 59.1 | 23.8 | 85.6 | 272.6 |
Pledged bank deposits (CNY Mn) | — | 148.6 | 105.1 | 101.4 | 41.0 |
Borrowings due within 1 year (CNY Mn) | — | 551.7 | 536.6 | 446.2 | 551.7 |
Borrowings due after 1 year (CNY Mn) | — | 108.2 | 64.2 | 156.8 | 107.8 |
Total borrowings (CNY Mn) | — | 659.9 | 600.8 | 602.9 | 659.5 |
Lease liabilities (CNY Mn) | — | — | — | 399.9 | 264.3 |
Net debt, borrowings less cash (CNY Mn, analyst calc) | — | 600.9 | 577.0 | 517.3 | 387.0 |
Goodwill (CNY Mn) | 0 | 0 | 0 | 0 | 0 |
Intangible assets (CNY Mn) | 646.7 | 603.4 | 535.3 | 482.3 | 502.4 |
Property plant and equipment (CNY Mn) | 1,876.1 | 1,197.3 | 1,121.9 | 1,062.8 | 1,000.3 |
Inventories (CNY Mn) | 471.9 | 483.1 | 483.0 | 479.6 | 436.9 |
Trade and bills receivables (CNY Mn) | 118.0 | 758.4 | 2,317.0 | 2,476.7 | 998.4 |
Amount due to associate, Li Xinchen (CNY Mn) | — | — | — | 2,095.3 | 665.8 |
Working capital, CA less CL (CNY Mn) | -906.8 | -327.6 | -295.7 | -63.3 | -73.0 |
Cash Flow
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Operating cash flow per share, proxy (ET Net "cash flow per share") | -0.021 | -0.137 | 0.169 | 0.236 | 0.267 |
Implied operating cash flow (CNY Mn, analyst calc from proxy) | -26.9 | -175.7 | 216.7 | 302.6 | 342.3 |
Lease cash outflows (CNY Mn) | — | — | — | 164.5 | 152.4 |
Dividends paid (CNY Mn) | 0 | 0 | 0 | 0 | 11.5 |
Share buybacks (CNY Mn) | 0 | 0 | 0 | 0 | 0 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
ROE, on average equity (%) | -19.77 | -6.68 | 2.42 | 2.20 | 1.15 |
ROA, on year-end assets (%) | -9.91 | -2.79 | 0.75 | 0.70 | 0.52 |
ROIC, NOPAT over (equity + borrowings + leases − cash) (%) | — | — | — | 3.0 | 1.9 |
Current ratio (x) | 0.54 | 0.82 | 0.91 | 0.98 | 0.96 |
Borrowings to equity, company "gearing ratio" (%) | — | 39.40 | 35.01 | 34.37 | 37.41 |
Total liabilities to equity, company "debt-to-equity" (x) | 1.21 | 1.48 | 2.21 | 2.12 | 1.19 |
Net debt to EBITDA (x) | — | 4.44 | 1.55 | 1.41 | 1.29 |
Interest coverage, EBIT over finance costs (x) | — | -0.78 | 1.85 | 1.89 | 1.77 |
Asset turnover, revenue over year-end assets (x) | 0.37 | 0.40 | 0.97 | 1.11 | 1.22 |
Cash conversion cycle, incl. amount due to associate as payable (days) | — | — | — | 19 | 28 |
Revenue by Region
| Region (CNY Mn) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
PRC (Mainland China) | 5,340.8 | 6,082.4 | 4,712.3 |
Outside PRC | 0 | 0 | 0 |
Region growth (%)
| Region growth (%) | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
PRC revenue YoY | 223.2 | 13.9 | -22.5 |
Capital Markets
| Item | Value | Source / date |
|---|---|---|
Last price | HK$0.207 | Investing.com, 1 Oct 2026 |
52-week range | HK$0.200 – HK$0.395 | Investing.com |
Market capitalisation | ~HK$265.4M (~RMB243M) | Investing.com; FX analyst approximation |
IPO price (13 Mar 2013) | HK$2.23 | ET Net |
Performance since IPO | about −90.7% (price only) | Analyst calc |
Selected interim price points | HK$0.32 (Feb 2026, TradingView); HK$0.260 (27 Mar 2026, ET Net); HK$0.241 (24 Apr 2026, ET Net); HK$0.233 (14 Jul 2026, ET Net) | As cited |
Share price (HK$, year-end or nearest available) | FY2022 | FY2023 |
Valuation Multiples
| Multiple | Xinchen | Basis |
|---|---|---|
P/E (TTM) | ~11.2x | TTM attributable profit of about RMB21.7M (FY2025 RMB20.2M − H1'25 RMB16.5M + H1'26 RMB18.1M); EPS about RMB0.017. This aligns with Investing.com's TTM EPS of 0.017. |
P/B | ~0.14x | Book value per share about RMB1.39 (equity attributable RMB1,780.9M) |
EV | ~RMB1,343M | Market cap RMB243M + borrowings RMB1,131.2M − cash RMB132.7M + NCI RMB101.3M |
EV/Sales (TTM) | ~0.43x | TTM revenue about RMB3,130.8M |
EV/EBITDA (TTM) | ~5.2x reported; ~6.4x ex lease gain | TTM EBITDA about RMB260M reported, about RMB208M underlying |
Dividend per share (HK cents)
| Dividend per share (HK cents) | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Final dividend (HK cents) | 0 | 0 | 0 | 0.97 | 0 |
Debt Maturity Profile
| Maturity bucket (CNY Mn) | FY2024 | FY2025 |
|---|---|---|
Bank borrowings within 1 year or on demand | 418.0 | 544.6 |
Bank borrowings 1–2 years | 52.6 | 107.8 |
Bank borrowings 2–5 years | 97.0 | 0 |
Other borrowings within 1 year | 28.2 | 7.1 |
Other borrowings 1–2 years | 7.2 | 0 |
Lease liabilities within 1 year | 136.7 | 136.7 |
Lease liabilities 2–5 years | 263.2 | 127.5 |
Analyst Conclusions
Management guidance
No quantitative guidance is published. The qualitative outlook from the 2026 Interim covers four points:
-
the PRC auto market should stabilise gradually in H2 2026, supported by policy, technology and exports;
-
REEV demand may stabilise as Li Auto and others roll out refreshed models with larger batteries and upgraded range extenders;
-
the company will intensify customer acquisition for NEV components to offset BMW declines;
-
Lantian broadens the customer base into mining, special and AGV vehicles.
Consensus
None available.
Bull case
-
Mix shift to higher-margin businesses. As low-margin trading shrinks, group gross margin is rising: 3.02% (FY2024) to 3.95% (FY2025) to 6.96% (H1 2026). Lantian's segment margin is 10.1% and components run at about 12%. Smaller but better-quality revenue could lift returns.
-
Deep value on assets. At about 0.14x P/B, with a book value of roughly RMB1.39 per share against a share price of about RMB0.19, plus a pending RMB114.1M land compensation receivable, the market prices in substantial impairment. Any stabilisation in REEV volumes or a monetisation event could re-rate the stock.
-
REEV for heavy-duty and mining uses. Commercial and mining REEV adoption, with NE commercial vehicles up 63.7% in 2025, could create a second leg of demand that is less exposed to passenger BEV substitution.
Bear case
-
Structural collapse of the anchor revenue stream. Engine volumes fell 71.5% in H1 2026, and Customer A still accounted for 72% of FY2025 revenue. Li Auto's BEV pivot threatens both trading revenue and the associate's economics, and the associate is already loss-making.
-
Underlying losses masked by one-offs. Excluding the RMB52.0M lease-modification and RMB7.4M bargain-purchase gains, H1 2026 would have shown a pre-tax loss of about RMB35.5M. Gearing has jumped to 63.5%, and the FY2025 accounts carry a going-concern note.
-
Shrinking legacy components. BMW China ICE volumes are falling, with crankshafts down 14% in both FY2025 and H1 2026. The company has minimal R&D capacity (about RMB20M a year) to pivot credibly against vertically integrated OEMs.
Key catalysts and monitorables (next 12 months)
| Monitorable | Why it matters | Timing |
|---|---|---|
| Li Auto L-series refresh and REEV delivery trends | Drives range-extender trading volumes and associate profit or loss | Monthly deliveries; Q4 2026 to Q1 2027 |
| FY2026 annual results | Underlying profitability excluding one-offs; going-concern language; dividend decision | ~Late March 2027 |
| Lantian performance and contingent consideration settlement | Proof of the diversification thesis; RMB55.2M payable | FY2026 results |
| Refinancing of about RMB564M of short-term borrowings | Liquidity | Rolling, 2026–2027 |
| Collection of the RMB114.1M land compensation | Cash and deleveraging | H2 2026 to 2027 |
| New REEV customers (commercial, overseas) and aerospace alliance progress | Customer diversification | Ongoing |
| BMW Bx8 volume trajectory and new NEV component awards | Margin anchor | Semi-annual |
| Confirmation of the tax rate (15% vs 25%) for Mianyang Xinchen | Earnings sensitivity | FY2026 results |
| Controlling-shareholder actions (Brilliance or Wuliangye) | Potential restructuring or asset injection | Event-driven |
Concluding analyst verdict
Xinchen China Power is best understood as a small, thin-margin powertrain manufacturer whose reported scale between FY2023 and FY2025 was inflated by pass-through trading of range extenders made by its Li Auto JV. Strip that out and the core is modest. It consists of a Mianyang engine plant producing traditional gasoline and diesel units, a credible BMW-certified precision components franchise earning about 12% segment margins, and now a 53%-owned Shanxi special-vehicle body and AGV maker acquired at a small bargain-purchase gain.
The FY2025 and H1 2026 numbers mark a decisive downturn. Revenue fell 22.5% in FY2025 and 56.4% in H1 2026, engine volumes dropped 71.5%, and the Li Auto associate is loss-making. Reported H1 2026 profit growth is misleading because non-recurring gains of RMB59.4M turned what would otherwise have been a pre-tax loss into a profit. Leverage has risen sharply, to a 63.5% gearing ratio, after the acquisition, and the company has carried net current liabilities at five consecutive year-ends.
Against that, the valuation is extremely depressed: about 0.14x book, about 0.43x EV/Sales and a market capitalisation of roughly RMB243M against attributable equity of RMB1.78bn. The two state-linked controlling shareholders (Brilliance China and Wuliangye, 31.2% each) provide a degree of financing support, and management is visibly pivoting toward commercial, mining and aviation range-extender applications.
On balance, the evidence supports a cautious, "show-me" stance. The equity is a deep-value, high-risk micro-cap whose re-rating depends on three things: proof that the Lantian and commercial-REEV businesses can replace lost Li Auto volume, successful refinancing and land-compensation collection, and a stabilisation in Li Auto's REEV deliveries. Absent those, book value is at risk from further impairment of intangibles (RMB502M) and the associate investment (RMB238M). Investors should anchor on underlying (ex-one-off) earnings and cash conversion in the FY2026 results as the decisive test.
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View Subscription PlansExecutive Leadership
Board of Directors
| Name | Role | Appointed | Age (2025 AR) | Prior roles / background | Education |
|---|---|---|---|---|---|
Zhang Wei (張巍) | Chairman, executive director; member of the Remuneration and Nomination Committees | ED from 8 Nov 2024 | 52 | Executive director of Brilliance China since Sep 2016 and executive VP since Oct 2022. Director of BMW Brilliance Automotive since Nov 2024. Chairman of Jinbei (Shenyang) Automotive (formerly Renault Brilliance Jinbei) and of Brilliance-BEA Auto Finance. Held roles at Huachen from 2003, including board secretary from 2016 to 2019. | BEng, Shenyang University of Technology (1996); MSc Business and IT, University of Salford (2001) |
Deng Han (鄧晗) | CEO, executive director; member of the Remuneration and Nomination Committees | ED and CEO from 26 Jun 2023 | 50 | GM of Mianyang Xinhua Internal Combustion Engine (now Xinhua Intelligent Drive) from 2016 to 2023. Held multiple roles at Mianyang Xinchen from 2003 to 2012. Over 25 years in the auto industry. | BEng, Xi'an Technological Institute (2000) |
Yang Ming (楊明) | Non-executive director (Wuliangye/Pushi nominee) | 7 Nov 2016 | 57 | Senior manager at Pushi Group since Jun 2025; previously its GM and deputy Party secretary from 2021 to 2025. Earlier career at Changan. | Beijing Institute of Technology (1988) |
Huang Yu (黃宇) | Non-executive director | — | — | — | — |
Chi Guohua (池國華) | INED; Audit Committee chair | 22 Nov 2012 | 51 | PRC CPA (non-practising). Professor at Minjiang University since Nov 2025; previously at Nanjing Audit University from 2015 to 2025 and Dongbei University of Finance and Economics. Former consultant to the MOF Internal Control Standards Committee. | PhD Management, DUFE; postdoc, Xiamen University |
Wang Jun (王隽) | INED; Nomination Committee chair | 24 Apr 2012 | 64 | Lawyer at Dacheng Law Offices (Beijing) since 2009 | LLB and LLM, China University of Political Science and Law |
Dong Yan (董艷) | INED; Remuneration Committee chair | 19 Jun 2023 | 47 | Executive Dean, Research Institute of Economics and Management, Southwestern University of Finance and Economics | BEcon, CUG; MSc, LSE; PhD, Essex |
“—” = not publicly disclosed.
Executive Leadership Team
| Name | Title | Tenure | Background |
|---|---|---|---|
Ng Yiu Fai (吳耀輝), FCPA | Senior VP and CFO of the Company | Joined May 2017; CFO since 22 Feb 2020 | Ex-KPMG; former CFO of CNQC International. BBA, HKUST. Age 51. |
Wan Xing (萬幸) | VP of the Company; CFO of Mianyang Xinchen | 2018–2020, re-joined Jun 2021 | MBA, Chongqing University. Age 51. |
Le Ji Xiang (樂吉祥) | Executive Vice GM, Mianyang Xinchen (R&D and sales) | EVGM since Jul 2018 | Former N20 engine project director. Age 48. |
Wang Jianzhong (汪建忠) | Vice GM and Director of Technical Centre | Since Nov 2022 | Principal senior engineer. Age 51. |
Lan Xingping (蘭興平) | Vice GM, Mianyang Xinchen (components business) | Since Jul 2020 | Age 50 |
Ngai Ka Yan (魏嘉茵) | Company Secretary | Since Mar 2015 | FCG, HKCGI. Age 43. |
Directors' Remuneration
| Item | FY2024 | FY2025 | Source |
|---|---|---|---|
Total directors' remuneration (CNY Mn) | 10.24 | 5.73 | FY2025 Results Note 10 |
CEO Deng Han annual executive director fee | US$400,000 | US$400,000. From 1 Jan 2026, US$250k is paid by the Company and US$150k by Mianyang Xinchen, of which 50% is performance-contingent. | 2025 AR |
INED annual emoluments | HK$257,500 each (from 1 Jan 2024) | Not changed per disclosure | 2023 AR |
Share options granted | 0 |
| 2025 AR |
Board & Management Changes
| Date | Change | Context |
|---|---|---|
19–26 Jun 2023 | Wang Yunxian leaves as ED and CEO; Deng Han is appointed CEO | Wuliangye-side management continuity (Xinhua Combustion Engine background) |
13 Mar 2023 | CSRC warning and fine against then-chairman Wu Xiao An disclosed | Related to Brilliance-group matters |
20 Jun 2024 | INED Huang Haibo retires | Board refresh |
By 2025 | NED Han Song (Huachen) is no longer on the board | — |
8 Nov 2024 | Zhang Wei appointed; succeeds Wu Xiao An as Chairman | Brilliance China leadership transition |
| 2026 | Ms. Huang Yu appointed NED | — |
Major Shareholders
| Holder | Shares | % | Notes |
|---|---|---|---|
Brilliance Investment Holdings Ltd (Brilliance China, HKEX: 1114) | 400,000,000 | 31.20 | Shenyang Automobile Group is Brilliance China's single largest shareholder |
Xinhua Investment Holdings Ltd (Xinhua Intelligent → Pushi Group → Wuliangye Group, a Yibin SOE) | 400,000,000 | 31.20 | — |
Lead In Management Ltd (Deng Han, trustee) | 33,993,385 | 2.65 | Discretionary trust |
Deng Han, beneficial | 2,994,258 | 0.23 | — |
Public float (residual) | ~448.2M | ~34.95 | Analyst calc |
Competitive Landscape
Competitors by Segment
| Segment | Competitor | Type | Positioning vs Xinchen |
|---|---|---|---|
Range extenders / passenger gasoline engines | Harbin Dongan Auto Engine (Changan group; SSE-listed) | Independent engine maker; was Li Auto's range-extender supplier for the Li ONE | Direct REEV rival. FY2024: about 493,500 units, revenue of about RMB4,618M, net profit of RMB5.7M. |
Range extenders / engines | In-house OEM powertrain units: BYD, Geely/Aurobay, Chery ACTECO, Great Wall/SVOLT-Mindian, Changan, SAIC, Dongfeng Horizon | Captive | Reduce the addressable market for independent engine makers |
Range extenders | Huawei/Seres partner ecosystem; Voyah (Dongfeng) suppliers | Captive or partner | REEV competition |
Light diesel engines | China Yuchai International (NYSE: CYD) | Large diesel and gas engine maker | FY2025 revenue RMB24.7bn, about 461k engines, gross margin 16.5% |
Light diesel engines | Weichai Power | Diesel leader | — |
Light diesel engines | Anhui Quanchai, Kunming Yunnei Power | Light-diesel specialists | — |
Light diesel / gasoline engines | Shenyang Guoqing Power Technology (formerly Shenyang Aerospace Mitsubishi) | Shenyang engine maker | Historic rival for Brilliance volumes |
Crankshafts / connecting rods | Tianrun Industry Technology (SZSE: 002283) | Crankshaft specialist | — |
Crankshafts / connecting rods | Global Tier-1s such as Thyssenkrupp Forged Technologies and Mahle (con-rods) | International | BMW's nomination is non-exclusive, so other suppliers share Bx8 volumes |
Special vehicles / mining bodies (new) | XCMG, Sany and Tonly Heavy Industries (mining dump trucks); CIMC (containers and bodies) | Large equipment makers | — |
Peer Comparison FY2025
| Metric | Xinchen (FY2025) | Dongan Power (FY2024) | China Yuchai (FY2025) |
|---|---|---|---|
Revenue (CNY Mn) | 4,712.3 | 4,618.1 | 24,700 |
Revenue growth (%) | -22.5 | -14.6 | +28.9 |
Engine units sold | ~383,000 | ~493,500 | ~461,309 |
Gross margin (%) | 3.95 | — | 16.5 |
Net profit (CNY Mn) | 20.2 | 5.7 | — |
R&D intensity (% revenue) | 0.43 (expensed only) | — | — |
Recent Developments
All identifiable items are listed.
Litigation, regulatory actions and layoffs: * Headcount fell from 1,002 to 957 during FY2025, then rose to 1,274 on the acquisition.
