Zhejiang Jingsheng Mechanical & Electrical (300316) Q2 2026 earnings summary

Executive summary

• Revenue for the first half of 2026 was ¥3.45 billion, down 40.47% year-over-year, with net profit attributable to shareholders at ¥232 million, a 63.66% decrease year-over-year.

• Semiconductor business remained resilient amid industry headwinds, while photovoltaic equipment and materials revenue declined sharply.

• Cash flow from operating activities increased 205.75% year-over-year to ¥1.37 billion, reflecting improved collections and cash management.

• The company maintained a strong R&D focus, with R&D expenses stable at ¥464 million.

Financial highlights

• Gross margin improved to 30.41% from 24.39% year-over-year, despite revenue decline.

• Basic and diluted EPS were both ¥0.18, down 63.27% year-over-year.

• Net assets attributable to shareholders reached ¥17.15 billion, up 0.21% from year-end 2025.

• Non-recurring gains included government subsidies of ¥115 million and fair value gains of ¥54 million; asset impairment losses totaled ¥100 million.

Outlook and guidance

• Full-year 2026 revenue from integrated circuit and compound semiconductor equipment and materials is forecast to exceed ¥4 billion, with order backlog over ¥4.7 billion as of June 30, 2026.

• The company expects continued growth in semiconductor equipment and materials, driven by domestic substitution and global expansion.