Breton Technology (1333) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached RMB330.7 million, up 1.2% year-over-year, driven by an improved product mix and increased PV-storage and electricity sales contributions.

• Gross profit surged 160.1% to RMB54.5 million, with gross margin rising to 16.5% from 6.4% due to higher-margin business and product mix optimization.

• Net loss narrowed by 49.2% to RMB88.5 million, mainly due to improved gross margin, reduced impairment provisions, and increased government grants.

• The company is transitioning its overseas PV-storage business from construction to operation, with major projects in Africa entering the revenue contribution phase.

• Strategic focus remains on integrated zero-carbon mine solutions, with significant progress in PV-storage microgrids, electric equipment, and autonomous driving.

Financial highlights

• Revenue: RMB330.7 million (+1.2% YoY); Gross profit: RMB54.5 million (+160.1% YoY); Gross margin: 16.5% (+10.1pp YoY).

• Net loss: RMB88.5 million (improved from RMB174.2 million YoY); Adjusted net loss: RMB87.1 million.

• PV-storage components and electricity sales contributed RMB61.5 million (18.6% of revenue), a new and high-margin segment.

• Selling expenses: RMB38.1 million (+27.3% YoY); R&D costs: RMB47.7 million (+28.1% YoY), reflecting investment in autonomous driving.

• Impairment losses on receivables and contract assets dropped 84.4% YoY to RMB11.5 million.

Outlook and guidance

• Overseas PV-storage projects (notably in DRC, Zimbabwe, Sierra Leone) are expected to generate stable power-operation revenue in H2 2026.

• The company will continue expanding grid-forming PV-storage microgrids, advance product R&D, and scale up intelligent driving solutions.

• Strategic resolve to maintain integrated system leadership amid industry transformation.