CIMC Enric (3899) H1 2026 earnings summary

Executive summary

• Revenue increased by 2.0% year-over-year to RMB12.87 billion for 1H2026, driven by strong growth in clean energy and chemical/environmental segments, while liquid food segment declined due to low order backlog and delayed project execution.

• Clean Energy remained the dominant segment, contributing 81% of total revenue.

• Net profit attributable to shareholders was RMB517 million, with consolidated net profit at RMB526 million, impacted by foreign exchange losses and margin pressure.

• Gross profit margin declined to 14.2% from 14.5% year-over-year, mainly due to margin pressure in chemical/environmental and liquid food segments.

• The company maintained a strong cash position and completed successful share placement and perpetual note issuance to support liquidity.

Financial highlights

• Clean energy segment revenue rose 8.2% year-over-year to RMB10.42 billion, with adjusted segment profit up 15.1% to RMB640 million.

• Chemical & Environmental segment revenue increased to RMB1.29 billion (+16.1% YoY), with medical equipment components revenue up 19.9%.

• Liquid Food segment revenue declined to RMB1.11 billion, mainly due to a lower backlog and smaller project scale.

• EBITDA decreased by 4.1% year-over-year to RMB951 million; operating profit margin fell to 5.0% from 5.9%.

• Net cash used in operating activities was RMB247 million, compared to an inflow of RMB47 million in the prior year.

Outlook and guidance

• Clean energy backlog reached RMB27.76 billion (+10.1% YoY), with strong order momentum in LNG and methanol-related projects.

• Diversification into biopharmaceuticals, non-alcoholic beverages, and green methanol projects to drive future growth.

• Continued investment in R&D, digitalisation, and sustainability to drive competitiveness.

• Clean energy segment expected to benefit from medium- to long-term LNG demand growth and policy support for hydrogen, ammonia, and methanol.

• Liquid food segment anticipates long-term growth from emerging markets, non-alcoholic beverages, and biopharma, despite near-term headwinds.