Zhejiang Sanhua Intelligent Controls Co. (002050) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached ¥16.90 billion, up 3.92% year-over-year; net profit attributable to shareholders was ¥2.04 billion, down 3.12% year-over-year.

• Automotive parts revenue grew 9.89% year-over-year, while HVAC parts revenue rose 0.54%.

• Cash flow from operations nearly doubled to ¥2.50 billion, reflecting improved collections and sales.

• The board proposed a cash dividend of ¥1.20 per 10 shares, totaling ¥503 million.

Financial highlights

• Gross margin was 28.06%, nearly flat year-over-year.

• Operating profit was ¥2.45 billion; basic and diluted EPS were both ¥0.49, down from ¥0.57 last year.

• R&D investment increased 8.27% to ¥763 million.

• Total assets at period-end were ¥51.46 billion, up 4.16% from year-end 2025.

• Net cash from operating activities rose 95.98% year-over-year.

Outlook and guidance

• Management expects continued growth in automotive thermal management, especially in new energy vehicles and overseas markets.

• The company will focus on product innovation, global manufacturing optimization, and digital transformation.