Ningbo Sanxing Medical Electric Co (601567) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB 7.26 billion, down 8.90% year-over-year; net profit attributable to shareholders was RMB 546 million, down 55.61% year-over-year.

• Operating cash flow improved to RMB 246.7 million from RMB 141.3 million year-over-year.

• The company maintained a strong position in domestic and overseas smart power distribution, with overseas orders in core markets like Europe and Latin America growing, despite overall order backlog declining 1.7% year-over-year.

• Medical services segment shifted focus from expansion to improving operational quality and value, with 38 hospitals in operation, 32 of which are rehabilitation hospitals.

Financial highlights

• Operating income: RMB 7.26 billion, down 8.90% year-over-year.

• Net profit attributable to shareholders: RMB 546 million, down 55.61% year-over-year.

• Basic and diluted EPS: RMB 0.39, down 55.17% year-over-year.

• Gross margin: 24.8% (calculated from disclosed revenue and cost figures).

• Operating cash flow: RMB 246.7 million, up 74.6% year-over-year.

• R&D investment: RMB 247 million, 3.4% of revenue.

Outlook and guidance

• The company expects continued growth in overseas smart grid and new energy markets, with ongoing investment in production bases and local operations.

• Domestic market focus remains on leveraging existing grid channels and expanding into new energy and data center applications.

• Medical services will continue to emphasize quality improvement, digital transformation, and compliance with evolving healthcare policies.