Sinoseal (300470) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 was ¥821.1 million, down 4.25% year-over-year; net profit attributable to shareholders was ¥134.86 million, down 28.07% year-over-year.

• Cash flow from operating activities increased 80.07% year-over-year to ¥83.32 million.

• Gross margin declined by 4.49 percentage points to 39.54% due to intensified competition.

• The company maintained a leading domestic market share in mechanical seals, with stable domestic revenue but a 40% drop in international business revenue.

• Proposed interim dividend: ¥5 cash per 10 shares, totaling ¥103.97 million, representing 77.09% of H1 net profit.

Financial highlights

• Operating income: ¥821.1 million (–4.25% YoY); net profit: ¥134.86 million (–28.07% YoY).

• Adjusted net profit (excluding stock incentive expense): ¥149.87 million (–25.99% YoY).

• Basic/diluted EPS: ¥0.6518 (–28.42% YoY).

• Operating cash flow: ¥83.32 million (+80.07% YoY).

• Gross margin: 39.54% (–4.49pp YoY).

Outlook and guidance

• Domestic market remains highly competitive with slow recovery in new large-scale petrochemical projects.

• International business in mechanical seals faces significant pressure from geopolitical volatility and competition; focus on expanding in Belt and Road regions and optimizing business layout through new subsidiaries.

• Company expects continued stable domestic market share and is investing in international business expansion.