Hainan Drinda New Energy Technology (002865) H1 2026 earnings summary

Executive summary

• H1 2026 revenue was RMB3,150.8m, down 13.8% YoY; net loss attributable to owners narrowed 4.0% to RMB253.0m amid persistent solar-sector oversupply and weak pricing.

• Focus remained on N-type cell technology, cost reduction, overseas sales and capacity partnerships, alongside new investments in space photovoltaics and commercial aerospace.

Financial highlights

• Revenue fell to RMB3,150.8m from RMB3,655.6m, mainly as overseas sales declined amid international trade friction, partly offset by higher mainland sales.

• Gross profit rose to RMB78.9m from RMB0.9m, supported by higher average selling prices and production-process optimization.

• Total period loss was RMB256.3m versus RMB263.7m; loss attributable to owners was RMB253.0m versus RMB263.7m.

• Other income increased to RMB137.9m from RMB42.7m, mainly due to higher additional input-VAT deductions; other gains turned to a RMB176.0m loss, including FX and fair-value losses.

• Operating cash flow was an outflow of RMB54.7m versus an inflow of RMB1,031.9m in H1 2025; cash and equivalents were RMB2,642.1m at June 30, 2026.

Outlook and guidance

• Management cited long-term sector potential from global energy transition, AI computing infrastructure, energy storage and new application markets; no specific earnings guidance was stated.

• The planned Oman 5GW cell facility faced delays amid trade and tariff uncertainty and rising Middle East geopolitical risk; alternative partners and revised project options are under review.

• The Turkey cell facility had begun production and was ramping up, supporting the intended local-production, local-delivery model.