Harbin Electric (1133) H1 2026 earnings summary

Executive summary

• Operating revenue for H1 2026 reached RMB24,799.16 million, up 10.35% year-over-year; net profit attributable to owners was RMB1,717.90 million, up 63.47% year-over-year; earnings per share rose to RMB0.77, up RMB0.30 from the prior year.

• Total equity attributable to owners was RMB18,780.80 million, up RMB979.33 million from the start of the year; net assets per share increased to RMB8.40.

• Total assets as of June 30, 2026, were RMB86,934.94 million, up 10.52% from the beginning of the year; total liabilities were RMB67,487.54 million, up 12.13%.

• No interim dividend was declared for the period.

Financial highlights

• Gross profit reached RMB3,719.31 million, up 37.35% year-over-year, with a gross margin of 15.00%, up 2.95 percentage points.

• Operating cost was RMB21,079.85 million, up 6.65% year-over-year, but the growth rate was lower than revenue growth.

• Net cash flow from operating activities was RMB6,347.76 million, a significant increase year-over-year.

• Gearing ratio decreased to 77.63%, down 1.45 percentage points year-over-year.

• Total borrowings stood at RMB4,281.96 million, with RMB3,989.03 million due within one year.

Outlook and guidance

• China's total installed power generation capacity is forecast to reach 4.3 billion kW by year-end 2026, with non-fossil energy accounting for 63%. Solar power capacity is expected to surpass coal-fired power in Q3 2026.

• The company aims to secure more high-quality orders, enhance operating cash flow, and drive innovation and digital transformation in the second half of 2026.

• Focus remains on digital transformation, lean management, and compliance to support high-quality growth.