Key takeaway

In 1H26, the company recorded revenue of RMB1.960bn, up 28.18% YoY; net profit attributable to shareholders of the parent company was RMB39mn, up 16.58% YoY; and net profit attributable to shareholders of the parent company excluding non-recurring gains and losses was RMB38mn, up 33.11% YoY. Growth in adjusted net profit significantly outpaced that of reported net profit, indicating improved earnings quality. Accelerated large-scale construction of energy storage facilities is driving stronger demand for complete production lines. Combined with refined coordination between the company's supply chain and delivery systems and shorter project acceptance cycles, this is expected to drive rapid revenue growth. The company's order backlog continues to grow rapidly, and deliveries of complete production-line equipment for solid-state batteries have begun. The company will directly benefit from the subsequent recovery in lithium battery fundamentals and tenders for solid-state battery equipment.

Event

The company released its 2026 interim report. In 1H26, it recorded revenue of RMB1.960bn, up 28.18% YoY; net profit attributable to shareholders of the parent company was RMB39mn, up 16.58% YoY; and net profit attributable to shareholders of the parent company excluding non-recurring gains and losses was RMB38mn, up 33.11% YoY.

In 2Q26, the company recorded revenue of RMB1.085bn, up 33.23% YoY and 23.98% QoQ; net profit attributable to shareholders of the parent company was RMB20mn, down 2.51% YoY but up 6.33% QoQ; and net profit attributable to shareholders of the parent company excluding non-recurring gains and losses was RMB19mn, up 6.37% YoY and 3.13% QoQ.

Risks:

1. Macroeconomic environment risk: The company operates globally. If relevant countries impose trade policy or tariff barriers against China, or if exchange rates move unfavorably, and the company cannot take effective measures to reduce costs and enhance product competitiveness, its products may lose their competitive advantages, adversely affecting its operating performance.

2. Industry risk: The new energy industry remains clearly cyclical. If the company cannot maintain close cooperation with technologically advanced downstream companies and retain a high-quality customer base, fluctuations in downstream industries will adversely affect its operating performance.

3. Risk from new technology iteration: Technology upgrades and product iterations are rapid in the lithium battery equipment industry. The company must continuously advance technological innovation and new product development to meet evolving market demand. If the company cannot accurately anticipate new market demand for technologies and products or keep pace with technological advances in intelligent manufacturing equipment, its products may lose competitiveness or even face substitution and obsolescence.

4. Financial risk: The carrying amount of the company’s accounts receivable, including amounts classified as contract assets, represents a relatively high proportion of total assets. If customers experience material adverse changes in their operations, the company may be unable to collect these amounts on time or at all .