China Harmony Auto Holding Limited (“HARMONY AUTO”) reported a sharp turnaround for the six months ended 30 June 2026, supported by surging new-energy vehicle (NEV) exports and an expanded international footprint.
Operational Highlights • Vehicle deliveries jumped 68.5 % y/y to 51,674 units. Overseas markets (including Hong Kong) contributed 40,183 units, or 77.8 % of total volume, while mainland China accounted for 11,491 units. • The sales mix shift underpinned a net profit of RMB 16.27 million versus a RMB 10.59 million loss a year earlier. Profit attributable to shareholders remained negative at RMB 10.10 million, but narrowed 14.4 % y/y.
Revenue and Margin Trends • Group revenue rose 26.1 % to RMB 12.15 billion, driven by a 94.5 % surge in Hong Kong and overseas turnover to RMB 7.59 billion (62.5 % of total). Mainland revenue fell 20.5 % to RMB 4.56 billion amid softer luxury-car demand. • Automobile sales generated RMB 11.11 billion (+29.5 %), representing 91.5 % of total revenue. After-sales service revenue slipped 2.0 % to RMB 1.02 billion. • Group gross profit expanded 85.0 % to RMB 1.04 billion; gross margin widened to 8.5 % from 5.8 % on improved vehicle margins and tighter cost controls.
Expense and Earnings Dynamics • Selling and distribution expenses climbed 45.5 % to RMB 799.04 million, reflecting rapid overseas network build-out. • Administrative expenses increased 41.4 % to RMB 236.18 million. • Other income fell 31.8 % to RMB 169.41 million, weighed down by higher foreign-exchange losses. • Operating profit nearly doubled to RMB 169.67 million; finance costs rose 22.7 % to RMB 116.43 million on higher borrowings.
Balance Sheet and Liquidity • Cash and bank balances rose to RMB 1.87 billion (31 Dec 2025: RMB 1.56 billion). • Net operating cash outflow reached RMB 499.34 million, offset by RMB 1.07 billion net inflow from financing activities. • Interest-bearing borrowings increased 32.8 % to RMB 5.37 billion, lifting the gearing ratio to 63.7 % (31 Dec 2025: 60.8 %). • Inventory grew 17.3 % to RMB 2.76 billion, with average turnover days up to 42.2 (1H 2025: 39.4).
Strategic Outlook Management will pivot from scale expansion to “quality- and profit-driven” growth: 1. Mainland China: optimise luxury and NEV brand mix, emphasise after-sales, finance and insurance services. 2. Overseas: deepen BYD partnership, enhance store-level profitability, and pursue ancillary revenue streams such as used-NEV trading.
Dividend No interim dividend was declared.
Governance Updates On 30 June 2026, Mr. Lau Kwok Fan resigned as Independent Non-Executive Director (INED); Mr. Leung Oi Kin was appointed INED and committee member on the same date.
No significant post-balance-sheet events were reported.