Arctech Solar (688408) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 was RMB 1.42 billion, down 8.77% year-over-year, with a net loss attributable to shareholders of RMB 48.49 million compared to a profit of RMB 110.17 million in Q1 2025.

• Gross margin and operating profit declined sharply, with basic and diluted EPS at -0.22, down from 0.51 year-over-year.

• The company held RMB 9.1 billion in orders at quarter-end, mainly in tracking and fixed/flexible support systems.

Financial highlights

• Operating income fell 8.77% year-over-year; net profit swung to a loss of RMB 48.49 million from a profit of RMB 110.17 million.

• Gross margin and operating profit both declined; R&D investment dropped 23.14% year-over-year.

• Cash flow from operations was negative RMB 423.82 million, an improvement from negative RMB 686.83 million a year ago.

• Total assets increased 6.54% to RMB 10.96 billion; shareholders’ equity decreased 1.2% to RMB 4.06 billion.

Outlook and guidance

• The company’s order backlog at quarter-end was approximately RMB 9.1 billion, with tracking systems accounting for RMB 8 billion.

• Revenue recognition will depend on delivery progress and sales confirmation principles.