Ruichang International Holdings (1334) H1 2026 earnings summary

Executive summary

• H1 2026 revenue rose 25.5% YoY to RMB190.488m; gross profit increased 32.4% to RMB52.839m and net loss narrowed to RMB24.675m from RMB38.060m.

• Backlog reached a record high, up RMB242m from the corresponding 2025 period; a major overseas contract was valued at ~US$50m.

Financial highlights

• Revenue was RMB190.488m vs RMB151.799m; cost of sales was RMB137.649m vs RMB111.889m.

• Gross margin improved to 27.7% from 26.3%, reflecting higher margins on orders completed in H1.

• Selling expenses rose to RMB19.4m from RMB14.9m and administrative expenses to RMB37.7m from RMB35.4m; R&D expenses fell to RMB19.8m from RMB22.5m.

• Finance costs increased to RMB3.2m from RMB2.5m, primarily as borrowings rose; other income and gains declined to RMB1.3m from RMB1.5m.

• Basic and diluted loss per share narrowed to RMB4.87 cents from RMB7.59 cents.

Outlook and guidance

• H2 priorities include delivering major overseas projects, including Oman; controlling costs, improving project profitability and execution quality, and strengthening cash collection.

• Plans include establishing an Abu Dhabi subsidiary and expanding in Southeast Asia and Central Asia, with overseas activity targeted as a medium- to long-term growth engine.

• Huangshan phosphorus recovery is entering trial operation; priorities include operational validation, market acceptance and development of bio-based phosphate products and fertilisers.

• H2 plans include burner, heat exchanger and sulphur recovery R&D upgrades, expanding integrated system solutions, and advancing SAF, green hydrogen and calcium-based thermochemical energy storage.

• Modular design is intended to improve overseas execution; engineering design and application contracts have been signed for SAF and green hydrogen.