USAS Building System (2671) H1 2026 earnings summary

Executive summary

• H1 2026 revenue fell 68.3% YoY to RMB451.7m and profit fell 84.2% to RMB9.9m, reflecting a high prior-year base, lower major-customer orders and delayed project starts.

• Gross margin improved 3.4 percentage points to 13.6%; management expects full-year revenue to recover as capacity releases and project acceptances concentrate in H2.

Financial highlights

• Revenue was RMB451.7m versus RMB1,424.1m YoY; gross profit was RMB61.6m versus RMB145.3m, while gross margin rose to 13.6% from 10.2%.

• Profit before tax was RMB3.8m versus RMB76.1m; net profit was RMB9.9m versus RMB62.6m.

• Other gains and losses shifted to a net loss of RMB7.1m from a net gain of RMB0.03m; the prior period included RMB5.8m of listing expenses.

• Adjusted for the RMB7.1m deferred tax credit, reported income tax was a credit of RMB6.1m; the credit reflected lower current tax and deductible temporary differences.

Outlook and guidance

• Sufficient order backlog and newly signed projects entering construction and delivery underpin management’s expectation that full-year revenue will be effectively restored through H2 capacity release and project acceptances.

• H2 priorities include expanding and upgrading production capacity, supporting Southeast Asian projects with overseas facilities, and broadening customers and product lines to reduce single-customer concentration.

• Plans include advancing BIPV and industrial environmental equipment, alongside an integrated Industrial Internet of Things platform to improve resource allocation and operating efficiency.