ShenZhen Woer Heat-Shrinkable Material (002130) Q2 2026 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2026, reached RMB 4,649.5 million, up 17.97% year-over-year; net profit attributable to shareholders was RMB 566.7 million, up 1.54% year-over-year.

• Growth was driven by strong performance in communication cables, new energy vehicle power transmission, and electronic materials, while cable accessories and wind power segments faced headwinds.

• The company completed an H-share listing in Hong Kong, raising RMB 2,422.4 million in net proceeds.

Financial highlights

• Gross profit was RMB 1,315.3 million, up 6.70% year-over-year; gross margin declined to 28.29% from 31.28% due to higher raw material costs.

• Operating profit before tax was RMB 666.6 million, down 4.40% year-over-year; net profit was RMB 592.1 million, down 2.05% year-over-year.

• Basic and diluted EPS were RMB 0.42, compared to RMB 0.45 in the prior year period.

• Total assets increased 26.68% to RMB 15,531.7 million; equity rose 39.92% to RMB 9,521.0 million.

• Net cash from operating activities was RMB 349.1 million, down 29.97% year-over-year; cash and equivalents at period end were RMB 3,506.3 million.

Outlook and guidance

• The company will continue to focus on its dual-core strategy of electronic communication and new energy power, emphasizing R&D, product upgrades, and international expansion.

• Management expects continued growth in data center, new energy vehicle, and robotics applications, leveraging strong industry tailwinds.

• Strategic investments will target product development, capacity expansion, and global footprint, with unutilized IPO proceeds earmarked for these areas.