Shuangdeng Group (6960) H1 2026 earnings summary

Executive summary

• H1 revenue rose 17.4% YoY to RMB2,636.8m, but the period swung to a RMB26.0m loss from RMB160.6m profit, amid tax charges, FX losses, raw-material pressure and higher R&D.

• AIDC and lithium-ion products led a shift toward higher-growth energy storage applications; lithium-ion products reached 42.0% of revenue.

Financial highlights

• Revenue rose 17.4% to RMB2,636.8m; cost of sales increased 20.2% to RMB2,295.9m.

• Gross profit increased 1.5% to RMB340.9m from RMB335.7m, while gross margin fell to 12.9% from 14.9%, mainly due to higher raw-material costs.

• Profit before tax was RMB35.1m versus RMB179.2m; net loss was RMB26.0m versus net profit of RMB160.6m.

• R&D expense rose 34.5% to RMB85.1m; other expenses increased to RMB88.5m, including FX losses and prior-period tax surcharges.

Outlook and guidance

• Plans focus on converting order growth into revenue through project delivery and capacity ramp-up, alongside overseas certification, customer qualification and expansion of integrated AIDC energy solutions.

• The Taizhou 2.8 GWh AIDC high-rate lithium line is expected to start operations in H2 2026; the 12 GWh semi-solid-state project is progressing.

• A planned 2 GWh lithium-battery facility in Malaysia is intended to support overseas AIDC markets, local delivery and supply-chain resilience.

• Margin recovery depends on stable raw-material prices, product-mix improvement, higher utilisation and scale efficiencies, amid market competition.