HONG KONG SAR - Media OutReach Newswire - 12 November 2025 – Johnson Electric Holdings Limited ("Johnson Electric"), a global leader in electric motors and motion subsystems, today announced its results for the six months ended 30 September 2025. Total group sales for the first half of the 2025/26 financial year totalled US$1,833 million, a decrease of 1% over the first half of the prior financial year. Excluding the effect of foreign exchange rate changes, sales declined by 2%. Net profit attributable to shareholders increased by 3% to US$133 million or 14.21 US cents per share on a fully diluted basis. Underlying net profit decreased by 8% to US$123 million. Automotive Products Group The Automotive Products Group ("APG"), which accounted for 84% of total Group sales in the period under review, reported a 3% decline in sales on a constant currency basis. On a regional basis, APG's constant currency sales were lower by 6% in Asia, 1% in the Americas, and 1% in Europe. The reduced level of sales achieved in the first half reflected the combination of price reductions for more mature product applications and APG's Sino-foreign joint venture OEM customers in China continuing to experience a significant loss in market share. Car production in Asia, dominated by China, now accounts for approximately 60 percent of global vehicle volume. Beyond its sheer size, the dynamism of China's auto sector is transforming the market domestically and, increasingly, globally. Government subsidies, expanding charging infrastructure, and aggressive pricing among the more than 100 brands of electric vehicles have fuelled a structural shift to electrification – with New Energy Vehicles (NEVs) amounting to over half of all passenger vehicles sold in China. Domestic OEM brands are leading this transformation, having almost doubled their market share in less than five years to over two-thirds of domestic sales. In the short term, APG has been negatively impacted by the rapid shift in automotive OEM market share, since a majority of its sales in China have historically been to Sino-foreign joint venture customers. However, encouraging progress is being made in winning new business from several leading domestic Chinese OEM customers who have found Johnson Electric to be a responsive and cost-competitive partner to support their future growth plans. Those plans include accelerating exports of "Made in China" vehicles, as well as establishing assembly plants elsewhere in the world that will produce a new generation of vehicles "Designed in China". As the newly awarded programs begin to ramp-up production in the second half of the financial year, APG is on track to return to growth. Outside of Asia, automotive industry demand over the period under review was relatively subdued. In Europe, consumer interest in NEVs remains strong, especially for plug-in hybrids, but concerns over job security and the comparatively higher price of NEVs are keeping buyers in check. The region's automakers are themselves faced with enormous structural challenges that include increased competition from Chinese brands who have taken five percent of the market, and excess production capacity that is forcing several OEMs to pause production in some plants and rethink their future vehicle roadmaps. North America's automotive sector is similarly navigating a turbulent landscape shaped by trade policy uncertainty, shifting consumer behaviour, and electrification trends. Earlier in the year, the market was lifted by a consumer rush to buy new cars to beat an expected tariff-induced price hike. Demand momentum has since softened, except for a brief boost to electric vehicle sales spurred by the expiry of a federal tax credit. Volatile tariff policies are also disrupting supply chains, requiring OEMs and their suppliers to reconfigure operations across the US, Canada, and Mexico. These...