EACON Group (7687) investor relations material

Executive summary

• Revenue for H1 2026 was RMB548.8 million, down 17.3% year-over-year, mainly due to lower sales in autonomous mining truck solutions.

• Gross profit surged 844.3% to RMB103.9 million, with gross margin rising to 18.9% from 1.7%, driven by a shift to an asset-light, customer-provided fleet model.

• Net loss narrowed by 20.2% to RMB188.8 million, reflecting improved operational efficiency and higher-margin business mix.

• The company nearly doubled its active autonomous mining truck fleet to over 3,100 units, achieving a 53% market share in China.

• Major breakthroughs included the first commercial deployment in Australia and scaled application in metal mines.

Financial highlights

• Revenue from close-environment autonomous mining truck solutions fell 18.5% to RMB539.5 million, while mining digitalization solutions revenue rose to RMB6.5 million.

• Cost of sales dropped 31.8% to RMB444.9 million, reflecting lower material and procurement costs.

• R&D expenses increased 33.7% to RMB156.1 million, supporting ongoing innovation.

• Adjusted net loss (non-HKFRS) was RMB167.8 million, down from RMB215.6 million in H1 2025.

• Cash and cash equivalents stood at RMB273.2 million as of June 30, 2026.

Outlook and guidance

• Plans to deepen autonomous driving solutions, expand into extreme and complex mining scenarios, and accelerate global expansion, especially in Australia, Canada, Chile, and emerging markets.

• Focus on next-generation algorithm architecture and AI agent applications to enhance scenario adaptation and operational efficiency.

• Strategic investments and targeted acquisitions are planned to strengthen the technology portfolio.

• Approximately 23% of net proceeds from the Global Offering allocated to overseas business expansion.