Huagong Tech Company (000988) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 reached ¥4.27 billion, up 27.13% year-over-year, with net profit attributable to shareholders at ¥638 million, a 55.76% increase year-over-year.

• Net profit excluding non-recurring items rose 20.51% year-over-year to ¥373 million.

• Operating cash flow was negative at -¥1.13 billion, a significant decrease from the previous year.

Financial highlights

• Gross margin improved as revenue growth outpaced cost increases.

• Basic and diluted EPS were ¥0.64, up from ¥0.41 year-over-year.

• Total assets stood at ¥22.97 billion, up 0.23% from year-end 2025.

• Shareholders’ equity increased 5.7% to ¥11.69 billion.

Outlook and guidance

• Management highlighted increased inventory and cash outflows due to stockpiling, indicating expectations of higher future sales.