ShenZhen Hipine Precision Technology (2583) H1 2026 earnings summary

Executive summary

• H1 2026 revenue rose 15.9% YoY to RMB333.3m; profit for the period increased 75.3% to RMB99.1m, supported by OBM growth, stronger watch sales and higher gross margin.

• Adjusted profit before listing expenses was RMB99.1m versus RMB60.8m, up 62.9%; basic EPS increased to RMB1.69 from RMB1.17.

Financial highlights

• Revenue was RMB333.284m versus RMB287.537m; gross profit rose to RMB138.558m from RMB89.830m, while cost of sales fell 1.5% to RMB194.726m.

• Profit before tax increased 69.0% to RMB117.0m; net profit was RMB99.084m versus RMB56.521m, including RMB4.3m of listing expenses in H1 2026.

• Other income was RMB19.5m versus RMB2.5m, including RMB17.4m from watch maintenance and spare parts; other gains were RMB12.1m versus RMB4.5m.

• Operating cash flow was an outflow of RMB104.9m versus an inflow of RMB21.8m, primarily reflecting a RMB199.4m inventory build; cash and equivalents ended at RMB152.6m.

Outlook and guidance

• Priorities include deeper domestic retail and e-commerce channels, international expansion, cultural-IP products, and AI-enabled smart wearables and applications; no quantified earnings guidance was stated.

• Plans include expanding Amazon and Southeast Asian channels, including Malaysia, Singapore and Macao, and growing the Malaysia distribution network.

• Development priorities include Huawei smart-hardware cooperation, high-end customization, smart rings, health-monitoring wearables and AI applications for jewelry retail.