Hilong (1623) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 increased by 1.4% year-over-year to RMB2,355.9 million, driven by strong oilfield services growth despite declines in equipment manufacturing and offshore engineering.

• Net profit attributable to equity owners reached RMB59.9 million, reversing a RMB324.2 million loss in H1 2025.

• Gross profit surged 60.1% to RMB642.7 million, with gross margin up 10 percentage points to 27.3%.

• The group emphasized digital transformation, international expansion, and asset-light, high-tech operations.

• The Board declared an interim dividend of HKD0.003 per share.

Financial highlights

• Oilfield services revenue surged 55.1% year-over-year to RMB1,308.8 million, offsetting a 3.1% decline in oilfield equipment and a 53.8% drop in offshore engineering revenue.

• Cost of sales decreased by 10.8% to RMB1,713.2 million.

• Net finance costs dropped 46.8% to RMB53.7 million, aided by foreign exchange gains.

• Operating profit was RMB146.7 million, compared to a loss of RMB182.4 million in H1 2025.

• Cash and cash equivalents stood at RMB605.1 million, with a gearing ratio of 32.67%.

Outlook and guidance

• Focus on securing high-end international orders, expanding in the US, Middle East, Southeast Asia, South America, Africa, and Europe.

• Plans to deepen customer relationships, promote high-tech products, and enhance digital and intelligent management.

• Oilfield services will target turnkey projects and technology-driven solutions.

• Offshore engineering to pursue new project types, strengthen project management, and improve cost efficiency.