Skyworth Group (751) H1 2026 earnings summary

Executive summary

• Revenue for 1H2026 reached RMB38.04 billion, up 4.9% year-over-year, with net profit surging 180.8% to RMB1.03 billion, driven by overseas expansion and gains in venture capital investments.

• Gross profit rose 13.7% to RMB5.08 billion, and gross margin improved to 13.4% from 12.3% in 1H2025.

• Overseas revenue accounted for 27% of total, reaching RMB10.3 billion, up from RMB8.05 billion in 1H2025.

• No interim dividend was declared to preserve cash for future development.

Financial highlights

• Operating profit (EBIT) was RMB1.73 billion, up 95.3% year-over-year.

• Basic and diluted EPS were RMB33.05 cents, a 483.9% increase year-over-year.

• Cash position stood at RMB12.79 billion as of June 30, 2026.

• Net current assets: RMB12,633 million (+44.0% from 31 Dec 2025); Bank balances and cash: RMB9,994 million (+7.5%).

• Selling and distribution expenses: RMB2,193 million (+8.0% YoY); General and administrative expenses: RMB1,015 million (+12.8% YoY); R&D expenses: RMB1,027 million (+2.7% YoY).

Outlook and guidance

• Focus on quality, innovation, and technological iteration, with emphasis on AI, internationalisation, and green industries.

• Strategic direction includes expanding smart home and new energy ecosystems, aiming for zero-carbon smart lifestyles.

• Focus on AI integration, high-end product development, and global expansion, especially in new energy and smart appliances.

• Anticipates continued cost pressures from global AI-driven demand for storage components and persistent weakness in China’s real estate market.

• Strategic emphasis on technological innovation, cost control, and prudent supply chain management.