Our strengths sit on the balance sheet: 72.2% equity ratio, net cash, roughly 19.1 billion yen cash with long-term borrowings being repaid. Operating cash flow stayed positive through the down-cycle at about 6.4 billion yen. Capex of about 5.7 billion yen went into recovery, including a US-subsidiary land purchase for future capacity. The weakness is in the P&L: operating margin 4.3%, ROE 2.0%, both far below our through-cycle targets. Recovery is underway but unproven against the new plan.
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My full-year revenue was 788.17 million yuan, up 1.79%. Net margin near 22% on gross margin around 32%, with operating cash flow of 185.81 million yuan exceeding net profit. The balance sheet is net cash: 1,076.81 million yuan cash against a single 223.56 million yuan long-term loan, debt ratio 27.18%, equity around 73%. Receivables 266.8 million yuan, 98.16% aged under one year, export receivables insured. Standard unqualified audit, signed April 2026.
My net profit fell 9.17% for the full year and 15.55% in Q1 2026, but revenue grew 8.75% in H1 and 8.72% in Q1 2026 — so the pressure is on margin, not volume. Quarterly profit ran 46.5, then 52.7, then 40.6, then 32.8 million yuan; the full-year turn came from a weak Q4 (down roughly 38% year-over-year). Gross margin was roughly flat (+0.16 point), pointing the decline below the gross line to operating expenses from capacity build-out and rising research spend. Weighted ROE has stepped down over three years, from 18.15% to 11.45% to 9.64%. The watch-item is the cycle, not the balance sheet.
Sling enters the rotary-actuator layer from the precision bearing it already owns, and it climbs the layer inside-out - three products, deepest-first by maturity. My reducer-specific cross-roller and flexible bearings are in production. The harmonic reducer completed second-phase production by period-end. The integrated actuator module - combining reducer, frameless motor, servo driver, encoder, brake - is research-reserve complete but not yet in production.