Zhejiang Sanhua Intelligent Controls Co., Ltd. (Sanhua Intelligent Controls) released unaudited results for the three months ended 31 March 2026.

Revenue rose 1.36% year-on-year to 7.77 billion RMB, driven by stable demand across the Group’s thermal management and HVAC component portfolio.

Net profit attributable to shareholders increased 2.68% to 927.62 million RMB, while net profit after deducting non-recurring items expanded 15.52% to 985.71 million RMB. Non-recurring losses of 58.09 million RMB were mainly linked to securities investment losses and derivative valuation swings.

Earnings per share stood at 0.22 RMB, down 8.33% as the average share base increased following equity incentives. Weighted ROE slipped to 2.88% (-1.69 ppts) on higher equity and a softer headline profit growth.

Cost structure remained broadly flat: operating costs were 5.61 billion RMB, essentially unchanged year-on-year. However, financial expenses surged to 118.43 million RMB (from 0.87 million RMB) due to a 150.29 million RMB exchange loss, offsetting derivative gains.

Fair value changes swung to a 102.10 million RMB loss versus a 64.00 million RMB gain a year earlier, reflecting mark-to-market losses on securities and reduced gains on exchange-rate hedges. Conversely, other income rose 26.60 million RMB on larger VAT additional deductions, and investment income improved by 35.60 million RMB on higher settlement gains from currency derivatives.

Operating cash flow more than doubled to 1.11 billion RMB (+136.50%), supported by stronger cash collection from customers and adjustments to receivables management. Net cash used in investing activities widened to 1.62 billion RMB, reflecting increased purchases of wealth-management products. Financing cash outflow reached 0.46 billion RMB, largely due to dividend payments booked at the start of the year.

Total assets were essentially flat at 49.36 billion RMB (-0.08% vs. end-2025). Trading financial assets grew by 671.02 million RMB, prepayments rose 53.89 million RMB on higher material advances, while payroll liabilities and other payables fell 36.58% and 49.11% respectively after bonus and dividend distributions. Shareholders’ equity increased 2.77% to 32.63 billion RMB on accrued earnings.

As at quarter-end, Sanhua Intelligent Controls counted 674,741 ordinary shareholders; the two largest shareholders, Sanhua Holding Group and Zhejiang Sanhua Green Energy Industrial Group, jointly held 38.33% of share capital.

The first-quarter financial statements have not been audited and were prepared under Chinese Accounting Standards for Business Enterprises.