Sunpower Group (5GD) H1 2026 earnings summary

Executive summary

• Revenue rose 11.3% year-over-year to RMB1,783.0 million, driven by higher demand for utilities and ramp-up of existing projects.

• Achieved 12.7% year-over-year growth in total steam sales volume to 6.56 million tonnes, reflecting robust customer demand and higher utilisation.

• Net profit attributable to equity holders increased 30.2% to RMB179.7 million, with total comprehensive income up 16.7%.

• Gross profit declined 4.3% due to higher fuel costs and a lag in steam price adjustments.

• Disciplined cost management and capital structure optimisation led to a 24.3% year-over-year reduction in finance costs (excluding CB interest), supporting resilient profitability.

Financial highlights

• Revenue: RMB1,783.0 million (up 11.3% year-over-year).

• Total steam sales volume: 6.56 million tonnes, up 12.7% year-over-year.

• Gross profit: RMB449.5 million (down 4.3% year-over-year).

• Earnings per share (basic): 22.24 RMB cents (up from 17.34 RMB cents).

• Net cash from operating activities: RMB122.1 million.

Outlook and guidance

• Demand for clean industrial utility services expected to remain resilient, supported by China’s industrial upgrading and environmental policies.

• Coal prices remain volatile and elevated, with average prices up over 15% year-over-year; mitigation strategies include price adjustments, procurement optimisation, and AI-driven efficiency.

• Management remains cautiously optimistic about long-term growth and profitability.