Joyson Electronics’ H1 2026: Revenue Slips 7.4% but Shareholders’ Profit Edges Up 4.4% on Cost Controls

Bulletin Express
Yesterday

Ningbo Joyson Electronic Corp. (“Joyson Electronics”) released its unaudited results for the six months ended 30 June 2026, detailing softer top-line performance but resilient bottom-line growth driven by overseas margin improvement, cost optimisation and a solid order pipeline.

Financial Performance • Revenue fell 7.40% year-on-year (YoY) to RMB 28.09 billion, pressured by lower light-vehicle production in China and North America and by the divestment of the weighing apparatus business at end-2025. • Gross profit declined 9.60% to RMB 4.98 billion; gross margin held at 17.70% (H1 2025: 18.15%) as global procurement savings and manufacturing-efficiency gains offset higher raw-material and chip costs. • Net profit slipped 4.50% to RMB 867.78 million, but profit attributable to equity shareholders improved 4.40% to RMB 738.95 million, aided by lower tax charges and tighter expense management. Basic EPS from continuing operations was RMB 0.48 (H1 2025: RMB 0.50). • Net operating cash inflow rose to RMB 1.93 billion (H1 2025: RMB 1.91 billion). Cash and cash equivalents stood at RMB 7.62 billion at 30 June 2026.

Segment & Geographic Trends • Automotive Safety Solutions: Revenue down 5.20% to RMB 18.01 billion; gross margin stable at 15.9% after raw-material hedging and footprint optimisation. • Automotive Electronics Solutions: Revenue down 8.50% to RMB 7.74 billion; gross margin eased 0.4 ppt to 20.9% on higher component costs. • Other Businesses (mainly Senssun): Revenue fell 18.90% to RMB 2.34 billion following the weighing-apparatus exit. • China revenue contracted 14.10% to RMB 6.63 billion amid weaker domestic vehicle demand and price competition; overseas revenue slipped 5.20% to RMB 21.46 billion, with gross margin improving to 18.1% (H1 2025: 17.8%).

Cost & Capital Structure • Selling and marketing expenses decreased 24.90% to RMB 309.51 million; administrative expenses fell 10.50% to RMB 1.55 billion on European restructuring. • R&D spend remained broadly flat at RMB 1.71 billion, underscoring commitment to intelligent driving, domain controllers and high-voltage e-mobility products. • Interest-bearing debt totalled RMB 26.13 billion (30 June 2025: RMB 24.21 billion); gearing ratio rose to 1.2x (31 Dec 2025: 1.0x) after refinancing and minority buyouts. • Treasury shares: 12.66 million A-shares and 3.99 million H-shares repurchased and held for incentive schemes; HK$60.41 million spent on H-share buy-backs during May-June 2026.

Operational Highlights • New design-wins secured with estimated lifecycle value of RMB 44.90 billion; domestic NEV and emerging automakers drove order growth. • Ranked 29th in Automotive News’ “Top 100 Global Automotive Parts Suppliers 2026”, up eight places YoY. • Intelligent-driving projects entered large-scale mass production; cockpit and zonal controllers gaining traction with Chinese OEMs expanding overseas. • Energy-management portfolio now spans OBC, DC/DC, 800V boosters and BMS; technology being leveraged into robotics, AIDC and eVTOL power-solutions. • Overseas manufacturing efficiency and localisation initiatives bolstered profitability; further revenue rebound expected as European auto demand recovers.

Risk Update Management highlighted macro-economic headwinds, raw-material price volatility, supply-chain security, pace of new-order conversion, emerging-business execution, exchange-rate movements, ESG compliance and goodwill impairment as key areas requiring ongoing vigilance.

Dividend No interim dividend was declared.

Post-Balance-Sheet Event On 13 August 2026, Anhui Joyson agreed to allot new shares to two financial investors for RMB 1.50 billion, further optimising its capital structure.

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