Reconova Technologies (7656) investor relations material

Executive summary

• Revenue for H1 2026 rose 58.7% year-over-year to RMB102.1 million, driven by expansion in all business segments and deeper engagement with high-value customers.

• Net loss narrowed to RMB64.1 million, a reduction of RMB4.6 million year-over-year; adjusted net loss (non-IFRS/excluding share-based and listing expenses) was RMB51.1 million, down RMB5.2 million.

• Gross profit margin improved to 26.2% from 21.9% in H1 2025, reflecting operational efficiency gains.

• The company completed a successful H-share listing in July 2026, raising HK$529.1 million in net proceeds.

Financial highlights

• Revenue: RMB102.1 million (H1 2026) vs. RMB64.3 million (H1 2025), up 58.7%; gross profit: RMB26.7 million, up 89.6% year-over-year.

• Net loss: RMB64.1 million, improved from RMB68.7 million in H1 2025; adjusted net loss: RMB51.1 million.

• Gross profit margin: 26.2% (H1 2026) vs. 21.9% (H1 2025); adjusted margin (excluding inventory write-down): 27.1%.

• R&D expenses increased 51.2% to RMB49.8 million, mainly for commercial robot development.

• Cash and cash equivalents: RMB21.9 million as of June 30, 2026 (down from RMB38.1 million at year-end 2025).

• Gearing ratio increased to 92% as of June 30, 2026 (from 84% at end-2025).

Outlook and guidance

• Plans to strengthen core business pillars in intelligent civil aviation, commerce, and driving safety, and expand robotics applications into broader industrial sectors.

• Medium/long-term strategy focuses on expanding commercial robotics and international markets, especially in airports and industrial automation.

• Focus on R&D investment, especially in embodied AI and robotics, with new products (e.g., wheeled dual-arm robots) expected in 2027–2028.

• Overseas expansion targeting Middle East, Southeast Asia, Europe, and Japan, leveraging a localized approach and allocating 10.4% of IPO proceeds to global marketing.