Huagong Tech Company (000988) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached ¥7.82 billion, up 2.53% year-over-year; net profit attributable to shareholders was ¥1.19 billion, up 30.17% year-over-year.

• Three core business segments: optical interconnect, intelligent sensing, and intelligent manufacturing, all showed growth and technological advancement.

• Significant R&D investment and AI integration drove product innovation and market competitiveness.

Financial highlights

• Operating income: ¥7.82 billion (+2.53% YoY); net profit attributable to shareholders: ¥1.19 billion (+30.17% YoY).

• Operating cash flow: -¥1.20 billion (down from -¥0.48 billion YoY), mainly due to increased inventory for order growth and raw material supply fluctuations.

• Basic and diluted EPS: ¥1.18 (up 29.67% YoY); gross margin for main business segments ranged from 14.47% to 31.86%.

• R&D investment: ¥599 million (+29.89% YoY).

• Overseas revenue grew 115.67% YoY, now accounting for 21.07% of total revenue.

Outlook and guidance

• Focus on AI-driven innovation, global expansion, and high-quality growth.

• Continued investment in R&D and talent to maintain industry leadership.

• No interim dividend, bonus shares, or capital increase from reserves planned for H1 2026.