Zoomlion’s H1 2026: Revenue Up 9.17%, Net Profit Slides 23.65% on FX Losses

Bulletin Express
Yesterday

Zoomlion Heavy Industry Science & Technology Co. Ltd. released unaudited interim results for the six months ended 30 June 2026. The Chinese construction-machinery maker achieved solid top-line expansion but faced a sharp earnings contraction due largely to adverse foreign-exchange movements.

Key Financials • Revenue rose 9.17% year-on-year to RMB 27.14 billion, driven by higher overseas sales, which accounted for 57% of total turnover (RMB 15.54 billion). Domestic revenue reached RMB 11.60 billion.

• Gross profit increased 4.03% to RMB 7.28 billion; gross margin slipped to 26.8% from 28.1% a year earlier on product-mix shifts and intensified competition.

• Profit from operations improved 17.90% to RMB 3.34 billion, supported by a 66.60% rise in other net income to RMB 1.51 billion.

• Net finance costs swung to a loss of RMB 0.90 billion (vs. a gain of RMB 0.39 billion in H1 2025) after booking RMB 0.82 billion of exchange losses, the principal reason operating gains did not flow through to the bottom line.

• Profit attributable to equity shareholders fell 23.65% to RMB 2.10 billion; basic EPS declined to RMB 0.24 from RMB 0.32.

Segment Performance Construction machinery remained the core growth engine, with revenue climbing 9.33% to RMB 25.95 billion. Within this: – Concrete machinery advanced 34.11% to RMB 6.53 billion. – Earth-working machinery added 23.11% to RMB 5.28 billion. – Crane machinery slipped 6.55% to RMB 7.78 billion as domestic demand softened. Agricultural machinery sales declined 15.19% to RMB 1.69 billion amid industry headwinds, while the financial-services arm contributed RMB 0.23 billion.

Balance Sheet & Cash Flow Total assets grew 8.55% since year-end to RMB 144.48 billion, led by a RMB 5.86 billion inventory build and a RMB 3.90 billion rise in cash. Net cash from operations improved to RMB 2.23 billion (H1 2025: RMB 1.60 billion), reflecting stronger collections. Net debt increased after issuing RMB 6.00 billion of 0.70% U.S.-dollar-settled convertible bonds in February, lifting total borrowings to RMB 36.86 billion (31 Dec 2025: RMB 32.94 billion).

Capital Expenditure & Investments Capex reached approximately RMB 1.11 billion, while asset disposals—primarily a partial 4.60% stake sale in associate Infore Environment—generated RMB 1.58 billion. The group recorded a RMB 1.10 billion decrease in associate carrying value to RMB 2.98 billion post-sale.

Shareholder Returns Following a RMB 0.20 per-share final dividend for FY 2025 (RMB 1.73 billion in total), the board did not propose an interim dividend for H1 2026. Outstanding dividends payable at period-end stood at RMB 1.70 billion.

Operational Highlights Management cited ongoing progress in: • Strengthening traditional product lines, notably concrete machinery; • Rapid expansion of earth-moving machinery, especially micro-excavators and large-tonnage models; • Continued leadership in ultra-high-reach aerial work platforms; • Robust growth in mining machinery (+57.20% revenue); • Accelerated globalisation via the “1+N” manufacturing strategy, with new capacity online in Hungary and Germany; • Increased R&D focus on digitalisation, intelligentisation and new-energy equipment, launching 20 new-energy host machines and unveiling the Z01 bipedal humanoid robot.

Outlook Management reiterated commitment to high-quality growth through diversification, overseas market penetration, and digital transformation, while maintaining tight risk controls amid currency volatility. No earnings guidance was provided.

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