Shanghai Conant Optical (2276) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 rose 7.6% YoY to RMB1,167.1 million, with total sales volume up 8.9% YoY to 101.3 million units and adjusted net profit (excluding FX) up 27.6% YoY to RMB345.7 million.

• XR business revenue surged 1,475.3% YoY to RMB50.5 million, becoming a key growth driver.

• Domestic revenue rose 14.1% YoY to RMB410 million; overseas revenue increased 4.4% YoY to RMB757 million.

• Significant improvement in Asian markets outside PRC and robust growth in the Americas.

• Upgraded automated production lines improved efficiency and reduced costs.

Financial highlights

• Gross profit increased 12.6% YoY to RMB500.4 million; gross margin rose to 42.9% from 41.0%.

• Net profit increased 10.4% YoY to RMB301.2 million; basic EPS was RMB0.63 (vs. RMB0.59 in H1 2025); adjusted EPS up 24.1% YoY to RMB0.72.

• Cost of sales rose 4.2% YoY to RMB666.8 million, less than revenue growth.

• Selling and distribution expenses up 20% YoY to RMB64.6 million, mainly due to XR business expansion.

• Cash and cash equivalents rose 128.3% to RMB1,438.3 million, mainly from new share issuance.

Outlook and guidance

• Focus on scaling XR business, mass production for key customers, and expanding industrial synergies.

• Plans to enhance smart manufacturing, expand R&D in precision optics, and reinforce technological moats.

• XR business expected to drive significant sales and revenue growth for full year 2026, especially from smart glasses segments.