Estun Automation released unaudited interim results for the six months ended 30 June 2026, showing a sharp turnaround in profitability despite largely flat top-line growth.
Revenue and Profitability • Group revenue edged up 1.14% year on year to RMB 2.58 billion, underpinned by a 2.22% rise in industrial robots and intelligent manufacturing systems sales to RMB 2.14 billion. • Gross profit climbed 12.51% to RMB 800.75 million as the gross profit margin widened by 3.14 percentage points to 31.07%, supported by an improved product mix and supply-chain efficiencies. • Profit attributable to equity shareholders soared to RMB 161.33 million, roughly 52 times the RMB 3.05 million recorded a year earlier. • EBITDA increased 77.3% to RMB 362.34 million, while adjusted EBITDA reached RMB 381.18 million, up 81.4%.
Segment & Geographic Trends • Industrial robots and intelligent manufacturing systems contributed 82.9% of total revenue. • Core automation components and motion control systems revenue slipped 4.15% to RMB 437.50 million amid industry softness and subsidiary restructuring. • Overseas sales grew 25.06% to RMB 936.49 million, lifting their contribution to 36.3% of the total, while domestic sales fell 8.82% to RMB 1.64 billion.
Cash Flow and Balance Sheet • Operating activities generated a net cash inflow of RMB 40.26 million, reversing a RMB 119.48 million outflow in the prior-year period, aided by tighter credit control and inventory management. • Net cash used in investing activities widened to RMB 348.51 million, reflecting higher net purchases of wealth-management products. • Financing activities provided RMB 1.26 billion, bolstered by RMB 1.27 billion net proceeds from the March 2026 Hong Kong IPO. • Cash and cash equivalents stood at RMB 1.81 billion at period-end, up from RMB 0.88 billion at end-2025. • Net current assets improved to RMB 1.41 billion (end-2025: RMB 0.12 billion). Debt-to-capital ratio fell to 59.21% from 141.07%.
Expenses and R&D • Selling expenses declined 6.47% to RMB 200.07 million following tighter cost controls. • Administrative expenses were stable at RMB 214.46 million. • R&D spending rose 2.65% to RMB 219.37 million, representing 8.51% of revenue. Total R&D investment, including capitalized amounts, reached RMB 250.19 million, or 9.71% of revenue.
Capital Expenditure and Commitments • Capital commitments for fixed assets totaled RMB 95.31 million. • No material acquisitions or disposals occurred during the period; pledged assets amounted to RMB 345.70 million. • IPO net proceeds of HK$1.41 billion had been 27.67% deployed by 30 June 2026, mainly toward R&D and production expansion; the remainder is held in short-term bank deposits.
Post-period Developments • Changes to the Board and committee compositions were approved on 9 July 2026. • On 4 August 2026, Estun agreed to acquire the remaining equity in Estun Codroid, which will become a wholly owned subsidiary upon shareholder approval at the 31 August EGM. • On 11 August 2026, the Board proposed the repurchase and cancellation of certain outstanding restricted shares and share options, subject to shareholder approval.
Dividend No interim dividend was declared for the first half of 2026.
Outlook (per company statement) Management targets accelerated globalization, deeper AI-robotics integration and continued margin enhancement, supported by the “All Made By Estun” full-value-chain model and increased overseas capacity in Europe.