Ningbo Tuopu Group (601689) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached RMB 14.20 billion, up 9.78% year-over-year, while net profit attributable to shareholders fell 21.03% to RMB 1.02 billion due to higher costs and expenses from capacity expansion and product line extension.

• Operating cash flow increased 5.69% to RMB 2.60 billion, and total assets at period-end were RMB 42.59 billion, down 3.06% from year-end 2025.

• The company advanced global manufacturing, with new plants in Thailand and Poland, and expanded product lines in automotive, robotics, and liquid cooling.

Financial highlights

• Gross margin for automotive parts improved slightly to 17.71%, with segment revenue up 8.9% year-over-year.

• R&D expenses rose 12.17% to RMB 791 million, representing 5.57% of revenue.

• Basic and diluted EPS were RMB 0.59, down from RMB 0.75 year-over-year; ROE dropped to 4.21%.

• Net cash from operations was RMB 2.60 billion; capital expenditures remained high due to ongoing capacity investments.

Outlook and guidance

• Management expects margin pressure to ease as new capacity ramps up and scale effects materialize.

• Robotics and liquid cooling businesses are expected to become new growth drivers.

• Global expansion and product innovation remain strategic priorities.