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 expenses despite revenue growth.

• 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.

• Six business segments: new energy & EPC, green building, AI chip & server, smart energy management, health & wellness, and F&B.

Financial highlights

• Gross profit increased 50% to HK$129.6 million; gross margin slightly decreased to 2.0%.

• Other income and net gains dropped to HK$27.8 million from HK$91.7 million, mainly due to fewer government grants and subsidiary disposals.

• Cash and bank balances at period-end were HK$270.0 million, down from HK$324.2 million at year-end 2025.

• Basic and diluted EPS dropped to HK$0.44, down from HK$0.55 year-over-year.

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

Outlook and guidance

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

• Focus on expanding AI chip business, leveraging self-supplied green power for cost and delivery advantages.

• Aims to drive dual growth in green computing and intelligent hardware sectors.