CHONGQING M&E reported solid first-half 2026 results, with bottom-line growth driven by a strong contribution from associates and resilient clean-energy equipment sales.

Revenue rose 15.9% year on year to RMB 5.40 billion, supported chiefly by the clean-energy equipment segment, which expanded 17.8% to RMB 4.40 billion and accounted for 81.5% of the total. High-end smart equipment revenue increased 8.0% to RMB 950.90 million, while industrial services added RMB 39.80 million.

Gross profit edged up 2.0% to RMB 764.40 million; the gross margin slipped to 14.2% from 16.1% a year earlier, reflecting a less favourable product mix and intensified competition. Clean-energy equipment contributed RMB 576.00 million of gross profit (-0.9% YoY), whereas high-end smart equipment improved to RMB 155.80 million (+7.6% YoY).

Operating profit increased 2.8% to RMB 122.04 million. The key earnings driver was the share of profit from associates and joint ventures, which surged 34.0% to RMB 521.42 million—chiefly from Chongqing Cummins (RMB 402.46 million, +22.3%) and Chongqing Hitachi Energy (RMB 93.41 million, +97.7%).

Profit attributable to shareholders jumped 31.1% to RMB 577.45 million, and basic EPS rose 33.3% to RMB 0.16. Net assets per share reached RMB 2.70, up 12.0% year on year.

The board declared an interim dividend of RMB 0.02 per share, doubling last year’s payout, for a total distribution of RMB 73.69 million. Payment is subject to shareholder approval on 18 November 2026 and is scheduled for 21 December 2026.

Cash outflow from operating activities narrowed sharply to RMB 11.77 million (1H25: RMB 516.64 million outflow). Cash and bank balances stood at RMB 2.18 billion, down RMB 279.97 million from year-end, reflecting loan repayments and capital expenditure of RMB 70.60 million. Borrowings declined to RMB 1.88 billion, trimming the gearing ratio to 15.9%.

Total assets increased to RMB 21.79 billion, with net current assets at RMB 3.77 billion. Capital commitments amounted to RMB 68.47 million, and pledged cash deposits totalled RMB 603.10 million.

Management flagged ongoing demand for renewable-energy equipment, accelerating overseas orders and continued cost control as key focus areas for the second half.