SL GEMINI (02481) has released its interim results for the 2026 fiscal year, showing a modest dip in profitability despite a solid top-line expansion. Revenue for the period reached approximately RMB 893 million, marking a year-on-year increase of around 17.5%.

Gross profit climbed by roughly 10.7% to about RMB 265 million. However, profit attributable to owners of the company stood at approximately RMB 110 million, reflecting a slight decline of 1.8% compared to the prior corresponding period. Earnings per share were reported at RMB 0.36.

Where the growth came from

According to the company's announcement, the revenue increase was primarily driven by higher income from heating services. This uptick was attributed to an expansion in the actual heating service area, the launch of the new Baotou project during the period, and increased government price subsidies. The latter was fueled by the heating subsidiaries' recovery from the previous year, as well as additional compensation for higher operational costs prompted by local government policies mandating elevated heating temperatures.

Why profit slightly contracted

The reduction in profit attributable to owners was mainly due to a decrease in net profit from subsidiaries in which the company holds a higher controlling stake. This decline outweighed the growth in net profit generated by subsidiaries with lower controlling interests, resulting in the overall marginal fall in attributable earnings.