X.J. Electrics (Hu Bei) (2619) investor relations material

Executive summary

• H1 2026 revenue fell 4.5% YoY to RMB518.146m; results swung from a RMB25.313m profit to a RMB31.124m loss amid weaker overseas demand, lower gross margin and FX losses.

• Full-year 2026 profitability is the stated goal, supported by higher-margin products, cost control and broader market development.

Financial highlights

• Revenue fell to RMB518.146m from RMB542.816m; gross profit declined to RMB74.811m from RMB107.567m, and gross margin fell to 14.4% from 19.8%.

• Net loss was RMB31.124m versus net income of RMB25.313m; basic loss per share was RMB0.11 versus earnings per share of RMB0.12.

• Other gains and losses swung to a RMB24.795m loss from a RMB2.492m gain, mainly reflecting net FX losses of RMB23.958m versus gains of RMB4.478m.

• Cost of sales rose 1.9% to RMB443.335m; R&D expense rose 6.5% to RMB15.699m, while administrative expense declined 1.1% to RMB54.793m.

• Reported results included RMB1.881m of listing expenses; loss before tax was RMB26.003m.

Outlook and guidance

• Full-year 2026 profitability is the target; H2 results remain exposed to overseas demand, tariff policies and RMB exchange-rate movements.

• Full-year rice cooker and kettle sales are expected to grow YoY; rice cookers made with a well-known U.S. appliance brand entered production and sales.

• Indonesia and Thailand factories, operating since 2025, are ramping up capacity and efficiency to support scale benefits and lower production costs.

• A North American overseas warehouse is expected to begin substantive trial operations in H2 2026, supporting faster delivery and logistics-cost optimisation.