SHENZHEN TRANSSION (688036) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached RMB 35.43 billion, up 21.85% year-over-year; net profit attributable to shareholders was RMB 1.77 billion, up 46.22% year-over-year.

• Gross margin improved due to higher average selling prices and lagged cost increases from historical inventory.

• The company maintained a leading position in emerging markets, ranking third globally in mobile phone market share and first in Africa.

• Significant cash dividend proposed: RMB 8.00 per 10 shares, totaling RMB 920.95 million, representing 51.93% of H1 net profit.

Financial highlights

• Operating income: RMB 35.43 billion, up 21.85% year-over-year.

• Net profit attributable to shareholders: RMB 1.77 billion, up 46.22% year-over-year.

• Operating cash flow: -RMB 5.86 billion, mainly due to increased inventory from higher storage prices.

• Basic and diluted EPS: RMB 1.54, up 45.28% year-over-year.

• Gross margin improved due to delayed cost pass-through.

Outlook and guidance

• The company continues to focus on emerging markets, leveraging AI and digital transformation to drive product and operational differentiation.

• Ongoing investment in R&D and expansion into digital accessories, home appliances, and energy storage.