Guangdong Dowstone Technology (300409) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached ¥4.79 billion, up 31.21% year-over-year, with net profit attributable to shareholders at ¥290 million, up 25.92% year-over-year.

• The company advanced its strategic focus on lithium battery materials, solid-state battery technology, and AI-driven R&D, with significant progress in single-wall carbon nanotube and silicon-carbon anode industrialization.

• Overseas resource operations in Congo (DRC) contributed to higher cathode copper sales, supporting overall growth.

Financial highlights

• Operating income: ¥4.79 billion, up 31.21% year-over-year.

• Net profit attributable to shareholders: ¥290 million, up 25.92% year-over-year.

• Net profit excluding non-recurring items: ¥283 million, up 34.33% year-over-year.

• Basic and diluted EPS: ¥0.3764, up 17.92% year-over-year.

• Gross margin for strategic resources: 28.25%; for cathode and anode materials: 15.55% and 18.71% respectively.

• Operating cash flow: -¥583.8 million, down from +¥666.5 million year-over-year, mainly due to increased inventory procurement.

Outlook and guidance

• The company is prioritizing solid-state battery materials and AI-driven innovation, reallocating capital from traditional cathode precursor expansion to new materials and overseas copper projects.

• Market demand for high-performance lithium battery materials and solid-state solutions is expected to remain robust, with continued investment in R&D and capacity expansion for single-wall carbon nanotubes and silicon-carbon anodes.