Folangsi (2499) H1 2026 earnings summary

Executive summary

• H1 2026 revenue rose 8.0% YoY to RMB924.984m; gross profit increased 8.6% to RMB286.433m, with gross margin up 0.2 percentage points to 31.0%.

• Profit for the period advanced 5.2% to RMB52.874m; business mix shifted toward subscription and other higher-margin services as equipment sales declined.

• Strategy centers on asset-light equipment services, digital management, electric and new equipment categories, and Southeast Asian expansion.

Financial highlights

• Revenue was RMB924.984m, up 8.0% YoY; cost of sales rose 7.8% to RMB638.6m, while gross profit grew 8.6% to RMB286.433m.

• Profit before tax was RMB55.056m versus RMB54.210m; profit for the period increased 5.2% to RMB52.874m from RMB50.3m.

• Basic and diluted EPS was RMB0.15, versus RMB0.14 in H1 2025; profit attributable to ordinary equity holders was RMB53.051m.

• Operating cash flow was RMB301.7m versus RMB254.7m; investing cash outflow was RMB131.1m versus RMB88.1m.

• Finance costs fell 3.4% to RMB51.5m, while administrative expenses rose 12.3% to RMB119.3m and net impairment losses on financial assets increased to RMB8.640m from RMB2.059m.

Outlook and guidance

• H2 priorities include growing subscription and maintenance revenue, refining trading operations, scaling electric loaders, commercializing cleaning equipment and using digital tools across the business chain.

• Plans include deepening Southeast Asian operations, developing local outlets, parts warehouses and service teams, and exploring markets such as the Middle East.

• R&D priorities include AI scheduling, IoT remote maintenance, unmanned equipment management, multi-machine collaboration, energy management and intelligent risk control.