Sunward Intelligent Equipment Co Ltd

Sunward Intelligent Equipment disclosed its semi-annual report on August 26. In the first half of 2026, the company achieved operating revenue of 3.658 billion yuan, up 7.23% year on year, but net profit attributable to shareholders of the listed company was only 12.6382 million yuan, a sharp decline of 74.66% year on year, with basic earnings per share of 0.0118 yuan. Despite the profit decline, overseas revenue accounted for more than 60% of total revenue, and sales revenue grew 14.31% compared with the same period.

Hunan Province's GDP grew 2.7% year-on-year in the first half, two percentage points below the national rate of 4.7%, placing it in the lower range among provinces that have disclosed data. The engineering machinery pillar enterprises are collectively under earnings pressure. Sany Heavy Industry saw its first-quarter 2026 net profit attributable to the parent rise only 0.46%, Zoomlion Heavy Industry's net profit attributable to the parent fell 37.30% year-on-year in the same period, and Sunward Intelligent Equipment expects its first-half net profit attributable to the parent to drop by 71.93% to 79.95% year-on-year. The share prices of the three companies have cumulatively fallen by more than 60%, 50%, and 40% respectively from their 2021 highs. Meanwhile, Changsha's internet-famous consumer spending remains hot, with 7.6575 million tourist visits during the May Day holiday and total provincial consumption of 63.969 billion yuan. However, new consumer brands such as Sexy Tea and Ningji have not gone public, and the A-share consumer sector is still dominated by traditional retail and trade, unable to offset the downward pressure from industry. In the first half, the added value of high-tech manufacturing above designated size in the province grew 4.0%, contributing 58.2%, but the scale of emerging industries is still small and cannot make up for the growth gap in traditional equipment manufacturing.

Sunward Intelligent Equipment disclosed a performance forecast, expecting attributable net profit for the first half of 2026 to be between 10 million and 14 million yuan, a year-on-year decline of 71.93% to 79.95%. Deducted non-recurring net profit is expected to be a loss of 95 million to 135 million yuan, compared with a loss of 10.981 million yuan in the same period last year. The company stated that the sharp decline in net profit was mainly due to a significant year-on-year increase in exchange losses caused by the appreciation of the yuan against the US dollar and the euro. Although the proportion of overseas revenue increased, operating revenue and gross margin rose year-on-year, and the wholly-owned subsidiary Avmax Group Inc. completed the delivery of some aircraft sales, bringing an increase in asset disposal gains, these partially offset the exchange losses.