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Degute 2026 interim report: revenue dips slightly while profit plunges 77.48%
Degute released its 2026 interim report on August 26. During the reporting period, the company achieved operating revenue of 243 million yuan, down 2.99% year on year, while net profit attributable to the parent company was 11.04 million yuan, a sharp year-on-year decline of 77.48%. The company said the weaker performance was mainly affected by demand adjustments in some downstream sectors, fluctuations in foreign exchange gains and losses, and delayed delivery of high-margin projects. Among these, energy-saving heat exchange equipment, the revenue pillar, saw revenue fall 20.21% year on year to 153 million yuan, with gross margin down 5.07 percentage points to 32.62%. Revenue from specialised customised equipment rose 302.68% year on year to 43.07 million yuan, but its gross margin slumped 26.20 percentage points to 8.61%. Net cash flow from operating activities decreased 52.51% year on year to 31.63 million yuan, putting short-term pressure on earnings quality. The company expects that as the country promotes energy-saving and carbon-reduction upgrades and high-margin projects enter their delivery cycle, profitability will gradually return to normal.