Sany Heavy Equipment International Holdings Company (631) H1 2026 earnings summary

Executive summary

• Revenue rose 20.5% year-over-year to RMB14,749.8 million for the six months ended 30 June 2026, driven by strong growth in mining equipment and international sales.

• Profit attributable to owners fell 5.9% to RMB1,217.6 million, with profit margin before tax declining to 10.6% from 14.0% due to lower gross margin and reduced government grants.

• International revenue surged 69.5% to RMB6,812.1 million, reflecting successful global expansion.

• Net cash flow from operating activities increased 47.9% to RMB545.0 million, indicating improved operational quality.

Financial highlights

• Gross profit margin decreased to 22.1% from 23.7% year-over-year, mainly due to a higher proportion of lower-margin products.

• Selling and distribution expenses rose 25.5% to RMB723.0 million; R&D costs increased 4.6% to RMB733.8 million.

• Finance costs increased 17.5% to RMB143.3 million, reflecting higher borrowings for emerging businesses.

• Basic earnings per share was RMB0.35, down from RMB0.39 year-over-year.

• Gearing ratio increased to 67.1% from 63.9% at year-end 2025.

Outlook and guidance

• The Group will focus on prudent operations, lean management, and innovation, aiming to strengthen its position in mining, logistics, and oil & gas equipment.

• Plans include accelerating globalisation, digitalisation, and low-carbon initiatives, with emphasis on electrification and intelligence.