Shenzhen Envicool Technology (002837) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached ¥3.02 billion, up 17.24% year-over-year, with net profit attributable to shareholders at ¥184.77 million, down 14.32% year-over-year.

• Gross margin declined to 24.93%, mainly due to product and regional sales mix shifts and increased competition.

• Domestic market remains dominant but overseas revenue surged 71.39% year-over-year, though still a small share.

• Cash flow from operations turned positive at ¥61.87 million, compared to a significant outflow last year.

Financial highlights

• Operating income: ¥3.02 billion (+17.24% YoY); net profit: ¥184.77 million (-14.32% YoY).

• Gross margin: 24.93% (-1.22ppt YoY); basic/diluted EPS: ¥0.15 (-11.76% YoY).

• Total assets: ¥8.65 billion (+11.62% from year-end); net assets: ¥3.58 billion (+4.03%).

• R&D investment: ¥226.64 million (+15.70% YoY); financial expenses rose sharply due to FX losses and higher interest.

• Non-recurring gains: ¥9.28 million, mainly from government subsidies and asset disposals.

Outlook and guidance

• Management expects continued growth in data center, energy storage, and overseas markets, but notes margin pressure from competition and sales mix.

• Focus remains on R&D, innovation, and expanding international presence.