Chaowei Power 1H26 Results: Revenue Drops 11.5 % to RMB24.12 Billion, Attributable Profit Slides 27.4 %

Bulletin Express
Yesterday

Chaowei Power Holdings Limited released its unaudited interim results for the six months ended 30 June 2026.

Revenue fell 11.5 % year on year to RMB24.12 billion, mainly due to lower sales of renewable materials. Gross profit declined 13.7 % to RMB1.54 billion, bringing the gross margin down to 6.4 % from 6.6 %.

Profit attributable to shareholders decreased 27.4 % to RMB148.86 million, while basic earnings per share dropped to RMB0.13 from RMB0.19. Finance costs eased 24.1 % to RMB185.25 million, reflecting reduced borrowing costs.

Segment performance • Lead-acid motive batteries remained the core business, generating RMB12.69 billion, or 52.6 % of total revenue.  – Electric bike batteries contributed RMB8.37 billion (34.7 % of total).  – Electric car and special-purpose vehicle batteries added RMB4.33 billion (17.9 %). • Lithium-ion battery sales reached RMB0.36 billion. • Renewable materials revenue contracted to RMB11.06 billion.

Cost structure and expenses • Distribution and selling expenses fell 12.9 % to RMB381.55 million, reflecting lower advertising, transport and commission outlays. • Administrative expenses rose 17.1 % to RMB330.07 million, driven by higher labour, depreciation and utility costs. • R&D spending amounted to RMB597.25 million, representing 2.5 % of revenue.

Balance-sheet highlights • Net current assets stood at RMB3.97 billion. • Cash and bank balances totalled RMB3.89 billion; restricted deposits were RMB3.67 billion. • Total borrowings reached RMB10.35 billion, with 80.3 % maturing within one year; net debt equalled RMB2.79 billion. • Gearing ratio (net debt/total assets) was 10.7 %.

The Board did not declare an interim dividend.

Management attributed the margin pressure to higher production costs and intensified end-market price competition. Looking ahead, the company plans to deepen R&D in lead-acid, lithium-ion and sodium-ion chemistries, advance its “Zero-Carbon CHILWEE” strategy, and pursue digital transformation to enhance operational efficiency, in line with stated national policies on green energy and new-energy storage.

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