Arctech Solar (688408) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB 2.91 billion, down 27.88% year-over-year due to delayed overseas project deliveries and a shrinking domestic PV market.

• Net loss attributable to shareholders was RMB -203.85 million, a decline of 229.18% year-over-year.

• Gross margin fell to 13%, down 4.07 percentage points year-over-year, pressured by rising costs and falling product prices.

• Overseas business remains the core revenue source, but was impacted by logistics disruptions, higher shipping costs, and FX losses.

• At period end, order backlog was RMB 8.9 billion, with tracking systems accounting for RMB 7.6 billion.

Financial highlights

• Operating income: RMB 2.91 billion, down 27.88% year-over-year.

• Net profit attributable to shareholders: RMB -203.85 million, down 229.18% year-over-year.

• Operating cash flow: RMB -550.90 million, improved from RMB -1.30 billion in H1 2025.

• Total assets: RMB 11.90 billion, up 15.65% from year-end 2025.

• Net assets: RMB 3.89 billion, down 5.33% from year-end 2025.

Outlook and guidance

• Management expects global PV demand to recover after 2027, with annual global installations projected at 725–870 GW during 2026–2030.

• The company maintains a global expansion strategy, focusing on local supply chains and R&D to enhance competitiveness.

• Order intake remains stable, supporting future recovery.