Hangzhou Greatstar Industrial (002444) Q2 2026 earnings summary

Executive summary

• Revenue for the first half of 2026 reached ¥7.67 billion, up 9.21% year-over-year, with net profit attributable to shareholders at ¥1.30 billion, up 2.50% year-over-year.

• Growth was driven by strong demand in North America for hand and power tools, expansion in AI infrastructure, and continued development of proprietary brands and e-commerce channels.

• The company maintained its global supply chain flexibility, accelerated capacity expansion in Vietnam, and invested ¥208.88 million in R&D.

Financial highlights

• Operating income: ¥7.67 billion, up 9.21% year-over-year.

• Net profit attributable to shareholders: ¥1.30 billion, up 2.50% year-over-year.

• Gross margin: 33.48%, up 1.51 percentage points year-over-year.

• Basic and diluted EPS: ¥1.0923, up 2.51% year-over-year.

• Net cash from operating activities: ¥900.73 million, down 12.87% year-over-year.

• Total assets at period end: ¥25.99 billion, up 9.99% from year-end 2025.

Outlook and guidance

• The company expects continued growth in tool demand driven by AI infrastructure investment, with a focus on expanding product lines and proprietary brands.

• Ongoing optimization of product structure and global supply chain to mitigate risks from tariffs and currency fluctuations.