Shenzhen Inovance Technology (300124) Q2 2026 earnings summary

Executive summary

• H1 2026 revenue reached CNY 24.68 billion, up 20.31% year-on-year, with net profit attributable to shareholders at CNY 2.81 billion, down 5.35% year-on-year due to automotive segment losses and margin pressure.

• Strong growth in core automation, robotics, and digital energy businesses, while NEV segment faced margin pressure and weak domestic sales.

• Strategic focus on AI+ automation, energy solutions, and selective overseas expansion, with continued high R&D investment at CNY 2.23 billion and 8,149 R&D staff.

• Operational cost reductions and product price increases helped offset raw material inflation, though gross margin declined slightly due to cost increases and product mix changes.

Financial highlights

• H1 2026 operating revenue was CNY 24.68 billion (+20.31% YoY); net profit attributable to parent shareholders was CNY 2.81 billion (-5.35% YoY); EPS was CNY 1.04 (-5.45% YoY).

• Adjusted net profit (excluding non-recurring items) was CNY 2.76 billion (+3.15% YoY).

• Net operating cash flow was CNY 1.98 billion, down 34.60% YoY, mainly due to inventory build-up and higher raw material costs.

• Q2 2026 revenue was CNY 14.5 billion (+26% YoY), net profit CNY 1.8 billion (+9% YoY), and gross margin improved by 0.43 percentage points.

• Gross margin for H1 was 29.74%, down 0.49 percentage points YoY.

Outlook and guidance

• H2 2026 focus on further price increases, capturing AI and localization opportunities, and investing in high-quality business segments.

• Full-year revenue and net profit growth guidance maintained at 10%-30%.

• Expects continued growth in automation, robotics, and digital energy, leveraging AI and digitalization trends, though NEV segment faces ongoing margin pressure.

• Company will maintain high R&D investment and global market expansion.