Zhejiang Dahua Technology Co. (002236) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached ¥16.70 billion, up 10.03% year-over-year; net profit attributable to shareholders was ¥2.38 billion, down 3.74% year-over-year.

• Excluding non-recurring items, net profit rose 8.26% year-over-year to ¥1.94 billion.

• Domestic and overseas business both grew, with domestic revenue up 14.22% and overseas up 5.87% year-over-year.

• The company maintained a focus on AI, smart IoT, and innovation, with significant R&D investment and new business incubation.

Financial highlights

• Operating income: ¥16.70 billion (+10.03% YoY); gross margin: 43.06% (+1.45pp YoY).

• Net profit attributable to shareholders: ¥2.38 billion (-3.74% YoY); basic/diluted EPS: ¥0.73 (-3.95% YoY).

• Net cash flow from operations: -¥1.11 billion (down ¥1.75 billion YoY), mainly due to increased procurement and inventory.

• Total assets: ¥55.59 billion (+5.76% from year-end 2025); net assets: ¥39.10 billion (+3.55%).

• R&D expenses: ¥2.00 billion (+0.74% YoY), representing 11.97% of revenue.

Outlook and guidance

• The company expects continued growth in smart IoT and AI-driven solutions, with ongoing investment in R&D and innovation.

• Focus remains on high-quality growth, business structure optimization, and ecosystem development.