Yantai Jereh Oilfield Services Group (002353) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached ¥7.65 billion, up 10.81% year-over-year, while net profit attributable to shareholders was ¥1.20 billion, down 3.65% year-over-year due to project delays, FX losses, and asset disposals.

• Oil & gas sector remained the core, contributing over 93% of revenue, with new energy and recycling up 62.26% year-over-year.

• International business accounted for 50.38% of revenue, up 16.9% year-over-year, reflecting strong overseas expansion.

• Major new orders totaled ¥10.05 billion, with backlog at ¥13.99 billion, up 13% year-over-year.

Financial highlights

• Operating income: ¥7.65 billion (+10.81% YoY); net profit: ¥1.20 billion (-3.65% YoY); EPS: ¥1.18 (-3.28% YoY).

• Gross margin for oil & gas: 33.79%; high-end equipment: 39.82%; oil & gas engineering: 20.82%.

• Operating cash flow: -¥748 million (down from +¥3.14 billion YoY), mainly due to higher cash outflows and lower prepayments.

• Total assets: ¥39.57 billion (+1.12% from year-end); net assets: ¥23.28 billion (+1.12%).

• Non-recurring gains: ¥55.49 million, mainly from government grants and fair value changes.

Outlook and guidance

• Management expects oil & gas demand to remain resilient, with domestic and overseas markets providing growth opportunities.

• Data center and power business order backlog is strong, with major deliveries expected from 2027 onward.

• New energy and recycling business will continue to expand, but investment pace is controlled due to market conditions.