FUYAO GLASS (03606) released its unaudited results for the six months ended 30 June 2026.

Revenue rose 2.44% year-on-year to RMB 21.97 billion, supported by an expanded share of high value-added automotive glass products, which climbed 8.03 percentage points. Group gross margin improved 1.74 points to 38.33%.

Profit before tax fell 19.95% to RMB 4.64 billion, and net profit attributable to shareholders dropped 17.37% to RMB 3.97 billion. Management cited a foreign-exchange loss of RMB 802.63 million versus a gain of RMB 601.55 million a year earlier; excluding FX effects, pre-tax profit increased 4.78%. Basic earnings per share were RMB 1.52, compared with RMB 1.84 a year ago.

The Board approved an interim cash dividend of RMB 1.00 per share (tax inclusive), totaling RMB 2.61 billion and representing 65.73% of interim net profit under PRC GAAP. Payment is expected on or before 6 November 2026; A-share holders will receive RMB and H-share holders HKD equivalents.

Cost and expense lines moved in tandem with strategic initiatives: • R&D expenditure increased 17.01% to RMB 1.03 billion as the company accelerated development of intelligent and value-added glass products. • Administrative expenses rose 7.76% to RMB 1.72 billion, mainly from higher personnel costs. • Net finance income reached RMB 305.75 million, aided by lower borrowing costs.

Cash generated from operations declined 15.01% to RMB 4.55 billion, reflecting higher supplier payments and reduced use of commercial bills. Capital expenditure amounted to RMB 2.30 billion, focused on new aluminium trim, mould and glass capacity in Shanghai, Chongqing, Anhui and the United States.

Total assets grew 5.55% to RMB 73.96 billion. Borrowings expanded to RMB 22.01 billion, lifting the gearing ratio to 0.93% from ‑4.74% at end-2025. Cash and cash equivalents stood at RMB 22.13 billion.

Management reiterated a dual domestic-overseas growth strategy, continued push into smart and panoramic automotive glass, cost optimisation across the supply chain and accelerated digital transformation to enhance manufacturing flexibility and efficiency in the second half of 2026.