Aux Electric (2580) investor relations material

Executive summary

• Revenue for H1 2026 was RMB17,503.7 million, down 12.9% year-over-year, mainly due to geopolitical tensions in the Middle East and subdued domestic demand.

• Net profit attributable to owners was RMB1,107.9 million, a 40.8% decrease from H1 2025.

• Gross profit margin declined to 18.1% from 19.5% in H1 2025, impacted by higher raw material costs and RMB appreciation.

• R&D expenses increased 18% to RMB368.4 million, reflecting intensified investment in new products.

• No interim dividend was declared for H1 2026.

Financial highlights

• Household air conditioner revenue fell 14.1% to RMB15,388.5 million; central air conditioners dropped 9.0% to RMB1,748.5 million.

• Revenue from AUFIT brand surged 79.0% year-over-year, while ODM revenue declined 24.7%.

• Chinese mainland contributed 50.7% of revenue; Asia (excl. mainland) 28.1%; Europe 8.5%.

• Cash and cash equivalents increased 50.1% to RMB7,586.6 million as of June 30, 2026.

• Gearing ratio: 73.8% (up from 68.3% at end-2025).

Outlook and guidance

• Focus on technological innovation, internationalization, and expansion of self-owned brands and central air conditioning.

• Plans to establish 3–5 new overseas sales companies annually and deepen localization in key markets.

• Continued investment in R&D, intelligent control, and green low-carbon technologies.

• Aims to expand into new home appliance categories to enhance profitability resilience.