Guangdong Dowstone Technology (300409) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 reached ¥2.23 billion, up 27.11% year-over-year, with net profit attributable to shareholders at ¥107.66 million, a 146.18% increase from the same period last year.

• Operating cash flow turned negative at -¥931.39 million, compared to ¥443.92 million last year, mainly due to increased inventory and material procurement to support sales growth.

• Basic and diluted EPS both rose to ¥0.1397, up 116.93% year-over-year.

Financial highlights

• Gross margin improved as revenue growth outpaced cost increases, with operating profit at ¥182.26 million, up from ¥67.59 million last year.

• Non-recurring gains included government subsidies and fair value changes, totaling ¥6.15 million.

• Total assets at quarter-end were ¥14.08 billion, slightly down from year-end 2025.

Outlook and guidance

• Increased investment in materials and R&D to support domestic market expansion and new product development.

• Ongoing capital projects in Congo (sulfuric acid and photovoltaic) and DCM (cathode copper and carbon nanotube equipment) signal continued growth focus.