• Zhejiang Shibao Company Limited (Zhejiang Shibao, H-share: 01057) reported interim revenue of RMB 1.72 billion for the six months ended 30 June 2026, up 12.90% year-on-year.
• Net profit attributable to shareholders increased 11.48% to RMB 103.72 million; basic earnings per share were RMB 0.1261 versus RMB 0.1131 a year earlier. Net profit after non-recurring items grew 17.51% to RMB 94.21 million.
• Operating cash inflow surged 127.72% to RMB 207.63 million, driven by higher product receipts. Gross profit margin improved to 18.90% (H1 2025: 18.01%), reflecting cost controls and greater contribution from higher-margin electric steering products.
• Total assets reached RMB 3.95 billion, up 3.12% from end-2025, while net assets attributable to shareholders rose 5.00% to RMB 2.18 billion. The gearing ratio remained conservative at -15.46% on substantial cash balances of RMB 641.94 million.
• R&D investment climbed 23.29% to RMB 102.95 million, accounting for 5.98% of revenue. Focus areas include electric power steering (EPS), steer-by-wire and chassis intelligence.
• Passenger-vehicle steering systems generated 96.36% of revenue and posted a 17.07% gross margin. Domestic sales contributed 96.22% of total revenue; exports amounted to RMB 65.07 million.
• Proceeds Update: Following a March 2024 private placement that raised RMB 344.09 million net, cumulative utilisation reached RMB 300.92 million by 30 June 2026. Zhejiang Shibao extended completion deadlines for three investment projects to 2026 and reallocated RMB 40.00 million between two of them. Unused proceeds of RMB 45.96 million remain in dedicated accounts.
• Governance: Former INED Mr Gong Jun Jie resigned on 30 June 2026 after term expiry; Mr Wang Zhi Fu was appointed as new INED the same day. The Board confirms compliance with most Corporate Governance Code provisions, with insurance for directors’ liabilities under review.
• No interim dividend is proposed for H1 2026.
• Management flags ongoing industry risks, including macro-economic cycles, raw-material price volatility, accounts-receivable recovery and execution of expansion projects, but remains focused on electrified and intelligent steering solutions and continued overseas market penetration.