Chongqing Machinery & Electric (2722) H1 2026 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2026 reached RMB5,399.4 million, up 15.9% year-over-year, with gross profit up 2.0% to RMB764.4 million and profit attributable to shareholders up 31.1% to RMB577.4 million.

• Basic earnings per share increased 33.3% to RMB0.16, and net assets per share rose 12.0% to RMB2.7.

• The Board recommended an interim dividend of RMB0.02 per share, doubling last year's interim payout.

Financial highlights

• Operating profit for the period was RMB122.0 million, up 2.8% year-over-year.

• Net finance costs were RMB30.5 million, a slight increase of 1.7%.

• Cash and bank deposits at period end were RMB2,783.7 million, down 9.7% due to loan repayments.

• Sales and administrative expenses fell 2.3% to RMB409.8 million, with the expense ratio dropping to 7.6%.

• Net cash outflow from operating activities was RMB11.8 million, a significant improvement from the prior year.

Outlook and guidance

• Management expects steady growth in overall sales revenue and gross profit for the full year 2026.

• Clean energy equipment segment is projected to achieve stable growth, leveraging policy support and overseas expansion.

• High-end smart equipment segment aims for steady growth, leveraging innovation and deepening cooperation with leading industry players.

• Industrial services segment projected to remain stable for the full year.

• The Group will continue to optimize capital structure, enhance cash generation, and strengthen risk management.