Central New Energy Holding Group (1735) H1 2026 earnings summary

Executive summary

• Revenue rose 56.3% year-over-year to HK$6,330.0 million, driven by growth in new energy, AI chip, and health segments.

• Net profit declined to HK$40.2 million from HK$50.0 million due to higher finance costs despite increased revenue.

• AI chip and server services became a significant new revenue stream, contributing HK$1,047.0 million.

• The group is pursuing a dual strategy: strengthening core photovoltaic business and expanding AI semiconductor operations.

Financial highlights

• Gross profit increased 50.0% to HK$129.6 million, but gross margin slightly decreased to 2.0%.

• Basic and diluted EPS dropped to HK cents 0.44 from 0.55 year-over-year.

• Other income and net gains fell to HK$27.8 million from HK$91.7 million, mainly due to lower government grants and disposal gains.

• Income tax credit of HK$19.5 million, up from a HK$1.1 million expense, due to PRC tax incentives.

• Cash and bank balances stood at HK$270.0 million as of June 30, 2026.

Outlook and guidance

• Plans to deepen integration between photovoltaic energy and AI semiconductor businesses for industrial synergy.

• Focus on expanding AI chip business, leveraging clean energy for competitive advantage in semiconductor production.

• Aims to drive dual-business growth and capture opportunities in green computing and intelligent hardware.