Jiangxi Special Electric Motor (002176) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 was ¥956.90 million, down 1.87% year-over-year, mainly due to lower lithium salt sales volume.

• Net loss attributable to shareholders was ¥213.01 million, a decline of 86.55% year-over-year, primarily from higher costs in lithium salt business due to reliance on external raw materials.

• Cash flow from operating activities improved to ¥92.99 million, up 131.39% year-over-year.

Financial highlights

• Gross margin for lithium mining and salt manufacturing was 3.71%, down 12.56 percentage points year-over-year.

• Industrial motor gross margin was 17.37%, up 3.32 percentage points year-over-year.

• R&D investment increased 16.42% to ¥48.65 million.

• Total assets at period end were ¥5.79 billion, down 2.81% from year-end 2025.

• Net assets attributable to shareholders were ¥2.92 billion, down 1.22% from year-end 2025.

Outlook and guidance

• Lithium business profitability is expected to improve as self-owned mines come online, reducing reliance on external raw materials.

• Continued focus on high-end, customized motors and expansion in strategic sectors like wind power, robotics, and defense.

• Anticipates further growth in lithium demand driven by EV and energy storage sectors.