Inovance H1 Revenue Up 20.31% to RMB 24.68 Billion, Net Profit Down 5.35%

Inovance Technology released its semi-annual report after market close on August 28, 2026. For the first half of the year, the company achieved operating revenue of RMB 24.675 billion, up 20.31% year-on-year; net profit attributable to listed shareholders was RMB 2.81 billion, down 5.35%; net profit attributable to listed shareholders excluding non-recurring gains and losses was RMB 2.756 billion, up 3.15%; basic earnings per share was RMB 1.04, down 5.45%. The company plans no cash dividend, no bonus shares, and no capital reserve conversion for the reporting period.

By quarter, Q2 revenue totaled RMB 14.532 billion, up 26.02% year-on-year; net profit attributable to parent shareholders was RMB 1.796 billion, up 9.14%. First-half operating profit was RMB 3.049 billion, down 4.63%; net cash flow from operating activities was RMB 1.975 billion, down 34.60%; weighted average return on equity was 7.69%, down 2.37 percentage points. As of the end of the reporting period, total assets stood at RMB 74.155 billion, up 3.98% from end-2025; net assets attributable to listed shareholders were RMB 36.784 billion, up 4.05% from end-2025.

By business segment, industrial automation and digitalization sales were approximately RMB 13.5 billion, up about 29% year-on-year, with general automation revenue of about RMB 11 billion, up about 36%. New energy vehicle powertrain systems sales were approximately RMB 9.4 billion, up about 4%. Emerging businesses (intelligent robotics and digital energy) generated sales of about RMB 1.47 billion, up about 96%. The company said revenue growth was mainly driven by increased AI-related industry investment, export demand, and higher localization rates for core equipment. The decline in net profit attributable to shareholders was mainly due to weaker domestic NEV demand and higher raw material costs, which sharply reduced NEV powertrain net profit, as well as lower fair value gains on overseas funds held due to exchange rate fluctuations.

In terms of market position, according to Rui Industry, in H1 2026 by revenue, the company's general servo system products held about 35.2% share and low-voltage inverter products about 20.6%, both ranking first in the Chinese market. Its medium and large PLC and small PLC products both ranked first among domestic brands. According to NE Times data, the company's electronic controls, motor stators, and drive assembly products ranked first among third-party suppliers. During the reporting period, R&D investment was RMB 2.226 billion, with an R&D expense ratio of 9.02%, and 8,149 R&D personnel.

Inovance Technology is a globally leading, innovation-driven industrial technology group. Since its founding in 2003, it has built a business ecosystem spanning industrial automation and digitalization, NEV powertrain systems, intelligent robotics, and digital energy. The company is also advancing its internationalization, having submitted an application to the Hong Kong Stock Exchange for the issuance and listing of overseas listed shares (H-shares) during the reporting period. The company said it will respond through technology iteration, lean operations, and supply chain coordination.

In terms of share price, Inovance's stock has trended lower overall in 2026. The closing price on January 5, 2026 was RMB 77.85, and by August 27 it closed at RMB 62.05, down significantly from the start of the year.