Shanghai Conant Optical (2276) H1 2026 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2026 rose 7.6% YoY to RMB1,167.1 million, with XR business revenue surging 1,475.3% YoY to RMB50.5 million.

• Gross profit increased 12.6% YoY to RMB500.4 million, and profit attributable to owners rose 10.4% YoY to RMB301.2 million.

• Adjusted profit (excluding FX impact) grew 27.6% YoY to RMB345.7 million.

• Interim dividend of RMB0.20 per share proposed.

Financial highlights

• Gross margin improved to 42.9% from 41.0% YoY, driven by own brand and customized lenses.

• Earnings per share increased 6.8% YoY to RMB0.63; adjusted EPS up 24.1% YoY to RMB0.72.

• Net other losses of RMB8.5 million, mainly due to RMB57.0 million FX loss.

• Finance costs rose 21.5% YoY to RMB3.7 million due to higher bank loan interest.

• Capital expenditure jumped 138.4% YoY to RMB211.7 million, mainly for XR business expansion.

Outlook and guidance

• XR business expected to be a key growth driver, with mass production for global customers and expanded capacity.

• Focus on smart manufacturing upgrades, R&D in precision optics, and expanding international collaborations.

• Revenue and profit margin growth anticipated in 2026, especially from XR and smart glasses segments.