China High Speed Transmission Equipment Group Co., Ltd. reported mixed interim results for the six months ended 30 June 2026, with profitability improving despite a double-digit contraction in revenue.
Revenue fell 24.6% year on year to RMB 7.52 billion, largely reflecting a 30.5% drop in wind gear transmission sales to RMB 6.17 billion. Industrial gear revenue, however, advanced 30.4% to RMB 1.22 billion, offsetting part of the decline. Rail transportation gear sales slipped 24.9% to RMB 132.02 million.
A tighter cost base and a favourable shift in product mix lifted the consolidated gross margin by 5.6 percentage points to 24.2%, limiting the fall in gross profit to 1.8% at RMB 1.82 billion. Net profit rose 9.8% to RMB 265.23 million, translating into basic and diluted earnings per share of RMB 0.020 (H1 2025: loss per share RMB 0.083).
Operating cash flow totalled RMB 253.28 million, while total borrowings declined 2.9% to RMB 9.08 billion. Net assets increased 1.4% to RMB 13.53 billion and the gearing ratio improved slightly to 65.2%. The Board did not declare an interim dividend.
Overseas markets contributed 15.0% of total sales (H1 2025: 11.8%), with turnover outside China easing 4.5% to RMB 1.13 billion. Research and development expenditure expanded 31.2% to RMB 592.57 million, equivalent to 7.9% of revenue.
AUDITOR’S QUALIFIED CONCLUSION CLA Prism Hong Kong Limited issued a qualified review opinion, citing insufficient evidence relating to: • RMB 3.18 billion of trade receivables and RMB 3.45 billion of prepayments tied to legacy bulk-commodity trading, which remain fully impaired pending further investigation. • Contract liabilities of RMB 467.76 million and associated prepayments and inventories under a disputed EPC project; progress and cost substantiation are unresolved.
CORPORATE DEVELOPMENTS • Control over 50.02%-owned subsidiary Nanjing High Speed was formalised through amendments to its articles of association on 30 June 2026, mitigating prior de-consolidation risk. • Post-period, the Group lifted its ultimate stake in Nanjing High Speed to approximately 50.05% by acquiring Jinhu Shiji Enterprise Management Consultancy Co., Ltd. • Further independent investigations into the trading receivables and a comprehensive internal control review are under way.
BOARD AND GOVERNANCE The company experienced substantial board changes in early 2026. Li Zubin was appointed Chief Executive Officer on 31 March 2026, while the chairman position remains vacant.
OUTLOOK STATEMENT Management highlighted persistent pricing pressure in wind-gear markets and ongoing structural shifts toward large-megawatt and offshore products, but signalled commitment to cost control, R&D and selective overseas expansion.
No forward-looking financial guidance was provided.