SUPCON Technology (688777) investor relations material

Executive summary

• Revenue for H1 2026 was RMB 3.63 billion, down 5.10% year-over-year; net profit attributable to shareholders was RMB 155.09 million, down 56.20% year-over-year.

• Gross margin and EPS both declined significantly; basic and diluted EPS were RMB 0.20, down 55.56% year-over-year.

• Industrial AI business achieved revenue of RMB 384.62 million, with significant expansion in application scenarios.

• Proposed interim cash dividend of RMB 1.0 per 10 shares, totaling RMB 77.99 million, representing 50.29% of net profit.

Financial highlights

• Operating income: RMB 3.63 billion, down 5.10% year-over-year.

• Net profit attributable to shareholders: RMB 155.09 million, down 56.20% year-over-year.

• Operating cash flow: -RMB 715.34 million, further negative compared to -RMB 559.43 million last year.

• R&D expenses: RMB 476.75 million, up 13.60% year-over-year, accounting for 13.12% of revenue.

• Gross margin and net margin both declined; net assets per share decreased 1.51% from year-end.

Outlook and guidance

• Company will continue to focus on industrial AI, automation, and digital transformation, aiming for global leadership in industrial AI.

• Plans to accelerate the rollout of autonomous operating plant (AOP) solutions and expand international business.

• Management expects continued pressure from macroeconomic and geopolitical factors but sees growth opportunities in AI-driven industrial upgrades.