Dongfang Electric Corporation (1072) H1 2026 earnings summary

Executive summary

• Operating revenue for H1 2026 reached RMB38.62 billion, up 1.24% year-over-year, with net profit attributable to shareholders rising 42.07% to RMB2.71 billion and EPS up 30% to RMB0.78 per share.

• The company maintained its leading position in energy equipment manufacturing, with strong order growth in core and emerging businesses, and continued to expand internationally.

• Earnings per share increased to RMB0.78 from RMB0.60 year-over-year; new orders totaled RMB69,880 million.

• No interim dividend was declared for H1 2026; a final 2025 dividend of RMB0.53 per share (RMB1,832.9 million) was paid in July 2026.

• Technological innovation advanced with major milestones in hydropower, gas turbines, and nuclear power, and new breakthroughs in intelligent manufacturing and green energy.

Financial highlights

• Net profit after non-recurring items increased 30.96% year-over-year to RMB2.37 billion.

• Gross margin for energy equipment/manufacturing improved by 0.31 percentage points year-over-year; manufacturing services gross margin rose by 5.42 points, while emerging business margin fell by 7.18 points.

• Net cash flow from operating activities was negative RMB1.72 billion, mainly due to wind power seasonality.

• Total assets stood at RMB164.23 billion, up 0.96% from year-end 2025; net assets attributable to shareholders rose 1.95%.

• Gearing ratio stood at 70.18%, down 0.21 percentage points from year-end 2025.

Outlook and guidance

• The company will focus on core energy equipment, pursue a premium-quality strategy, and aims to fully achieve annual targets for the 15th Five-Year Plan and the second half of 2026.

• Management expects continued prosperity in energy equipment demand, supported by China's energy transition and infrastructure growth.

• Cash dividend ratio will increase by at least 1 percentage point annually from 2025 to 2027.