Huaqin (603296) Q2 2026 earnings summary

Executive summary

• Achieved revenue of RMB 93.72 billion in H1 2026, up 11.7% year-over-year; net profit attributable to shareholders reached RMB 3.00 billion, up 58.8% year-over-year; adjusted net profit (excluding non-recurring items) grew 11.0% year-over-year.

• Total assets increased to RMB 1,366.7 billion, up 42.1% year-over-year; net assets attributable to shareholders rose 24.5% year-over-year.

• Cash flow from operating activities turned positive to RMB 643 million, compared to negative RMB 1.52 billion in H1 2025.

Financial highlights

• Revenue: RMB 93.72 billion (+11.7% YoY); net profit: RMB 3.00 billion (+58.8% YoY); adjusted net profit: RMB 1.68 billion (+11.0% YoY).

• Basic and diluted EPS: RMB 2.07 (+55.6% YoY); adjusted EPS: RMB 1.16 (+9.4% YoY).

• Gross margin and EBITDA improved; operating cash flow positive at RMB 643 million.

• Net assets: RMB 32.12 billion (+24.5% YoY); total assets: RMB 1,366.7 billion (+42.1% YoY).

• R&D investment reached RMB 3.56 billion, up 20% YoY.

Outlook and guidance

• Management expects continued growth in AI, data center, and automotive electronics segments.

• Focus on expanding global supply chain, enhancing R&D, and leveraging AI-driven product innovation.