Skyworth Group (751) investor relations material

Executive summary

• Revenue for the six months ended 30 June 2026 rose 4.9% year-over-year to RMB38,035 million, with net profit surging 180.8% to RMB1,025 million, driven by overseas expansion and gains in venture capital investments.

• Gross profit increased 13.7% to RMB5,082 million, and gross margin improved to 13.4% from 12.3% a year earlier.

• Overseas revenue accounted for 27% of total, reaching RMB10.3 billion, up from RMB8.05 billion in 1H2025, with overseas revenue growth offsetting domestic weakness.

• No interim dividend was declared to preserve cash for future development.

• All major business segments contributed to growth, especially smart systems technology and new energy.

Financial highlights

• EBIT increased 95.3% year-over-year to RMB1,728 million; EBITDA rose 74.3% to RMB2,173 million.

• Basic and diluted EPS were RMB33.05 cents, up 483.9% year-over-year.

• Cash position stood at RMB12,790 million as of June 30, 2026, down 5.2% year-over-year.

• Total interest-bearing borrowings increased 30.5% to RMB25,458 million as of June 30, 2026.

• Net current assets increased to RMB12,633 million (+44.0% from year-end 2025).

Outlook and guidance

• Focus on AI integration, high-end product development, and global expansion, especially in new energy and smart appliances.

• Anticipates continued cost pressures from global AI-driven demand for storage components and persistent weakness in China’s real estate market.

• Strategic emphasis on technological innovation, cost control, and prudent supply chain management.

• Management will balance inventory and raw material procurement to mitigate cost risks and maintain healthy gross margins.

• Strategic direction includes expanding smart home and new energy ecosystems, aiming for zero-carbon smart lifestyles.