DAHON TECH (Shenzhen) Co., Ltd. released unaudited results for the six months ended 30 June 2026, showing a sharp improvement in scale, profitability and cash generation.
Financial performance • Revenue rose 53.7% year-on-year to RMB 489.70 million (H1 2025: RMB 318.66 million), driven by higher bicycle and accessory sales. • Gross profit increased 62.4% to RMB 172.20 million, lifting the gross margin 1.7 percentage points to 35.2%. • Profit attributable to owners of the Company surged 72.3% to RMB 66.92 million, translating into a net margin of 13.2%. • Basic earnings per share were RMB 2.23 versus RMB 1.85 a year earlier; diluted EPS came in at RMB 2.11. • The Board recommended an interim dividend of RMB 1.224 per share (tax inclusive).
Operational highlights • Domestic online direct-sales revenue climbed 84.3% to RMB 144.17 million, helping lift overall sales. • China remained the core market, contributing RMB 451.11 million, while overseas revenue reached RMB 38.60 million. • The Group operated through more than 1,000 retail outlets across 30 provincial-level regions and ranked first in folding-bicycle sales on both Tmall and JD.com for ten and 18 consecutive months, respectively. • Product mix was expanded: high-end models such as the PKA015 MU X and the new tri-folding Lunden series bolstered margins; popular P8 and P10 models sustained mid-range momentum; entry-level lines continued customer acquisition. • R&D spend rose to RMB 12.80 million (up 31.7%), underpinning 175 active patents, of which 66 are invention patents, centred on the proprietary “DAHON-V” technology suite.
Cost and expense dynamics • Cost of sales rose 49.8% to RMB 317.51 million, below revenue growth, supporting margin expansion. • Selling and distribution expenses increased 54.0% to RMB 55.60 million on higher advertising and headcount; administrative expenses grew 72.4% to RMB 26.38 million, reflecting staff costs and consultancy fees.
Balance-sheet and liquidity • Cash and cash equivalents stood at RMB 527.66 million at end-June, up RMB 108.36 million since year-end 2025, helped by stronger operating cash flow of RMB 197.86 million. • The Group had no bank borrowings; an interest-free RMB 3.11 million loan from a non-controlling shareholder was outstanding. • Gearing ratio (total debt/total equity) rose to 10.7% due to increased lease liabilities but the balance sheet remained net-cash positive.
Strategic and operational initiatives During the period the company: 1. Stepped up omni-channel marketing, lifting domestic brand exposure to more than 170 million impressions (+67%). 2. Added over ten flagship stores overseas and hosted distributor conferences in key Asia-Pacific markets. 3. Advanced digitalisation across R&D, manufacturing and sales, with full-process product traceability and enhanced CRM systems. 4. Progressed its “Sharing 360” licensing ecosystem, granting patented components to nine industry peers and brand licences to 18 partners.
Outlook and shareholder actions For the second half, DAHON TECH will focus on enriching its mid-to-high-end portfolio, accelerating e-bicycle launches, expanding specialty-store coverage, deepening overseas localisation and continuing capacity expansion at its new Huizhou plant. The Board has also approved pursuing full circulation of 13.23 million domestic shares into H shares, subject to shareholder and regulatory approvals.
Key dates • Register closure for EGM: 10–15 September 2026; EGM date: 15 September 2026. • Register closure for interim dividend: 19–24 September 2026; expected payment: on or around 15 October 2026.