Sany Heavy Equipment International Holdings Company (631) H1 2026 earnings summary

Executive summary

• Revenue rose 20.5% year-over-year to RMB14,749.8 million, driven by strong growth in mining and logistics equipment, especially in international markets.

• Net profit declined 9.2% year-over-year to RMB1,175.2 million, with profit attributable to owners down 5.9% to RMB1,217.6 million; profit margin before tax fell to 10.6% from 14.0% due to lower gross margin and reduced government grants.

• International revenue surged 69.5% year-over-year to RMB6,812.1 million, with mining trucks and large port machinery leading overseas growth.

• Operational efficiency improved, with operating cash flow up 47.9% to RMB545.0 million and reductions in inventory and receivables turnover days.

Financial highlights

• Gross profit increased 12.4% year-over-year to RMB3,259.3 million; gross margin fell to 22.1% from 23.7% due to a higher proportion of lower-margin products.

• Profit before tax dropped 8.7% to RMB1,558.4 million; effective tax rate was 24.6%, up from 24.2% year-over-year.

• Basic EPS was RMB0.35, down from RMB0.39 year-over-year; diluted EPS was RMB0.32.

• Gearing ratio increased to 67.1% from 63.9% at year-end 2025.

• Selling and distribution expenses rose 25.5% to RMB723.0 million; R&D costs increased 4.6% to RMB733.8 million.

Outlook and guidance

• Focus remains on globalization, digitalization, and low-carbon strategies, with emphasis on prudent operations, lean management, and planning transformation.

• Continued investment in AI integration and employee development to enhance organizational effectiveness.

• Management expects ongoing challenges from market competition and economic volatility but aims for high-quality, sustainable growth.

• Plans include accelerating electrification and intelligence in product offerings.