Shenzhen Clou Electronics Co Ltd

Clou Electronics released its 2026 interim report, showing total operating revenue of 2.185 billion yuan, down 15.10% year on year. Net profit attributable to the parent company was a loss of 219 million yuan, swinging from profit to loss and down 215.22% compared with the same period last year. Net cash flow from operating activities was negative 474 million yuan. The asset-liability ratio rose to 97.55%, gross margin fell to 22.23%, return on equity was negative 112.31%, and diluted earnings per share was negative 0.13 yuan. The company had 84,300 shareholders, and the top ten shareholders held 45.54% of total share capital.

Clou Electronics released its 2026 interim report on August 26. Operating revenue was 2.185 billion yuan, down 15.1 percent year on year. The company posted a loss of 219 million yuan, a year-on-year decline of 215.2 percent. Excluding non-recurring items, the loss was 213 million yuan, down 248.01 percent year on year. Net operating cash flow was negative 474 million yuan, a year-on-year decline of 7,065.1 percent. The company has now been loss-making for five consecutive years since 2021. Net profit attributable to the parent company from 2021 through 2025 was negative 665 million yuan, negative 101 million yuan, negative 529 million yuan, negative 464 million yuan and negative 156 million yuan respectively. By product, smart grid revenue was 1.062 billion yuan, down 15.32 percent year on year, with a gross margin of 27.29 percent, a decrease of 5.61 percentage points. Energy storage revenue was 1.084 billion yuan, down 15.50 percent year on year, with a gross margin of only 16.85 percent, a sharp decrease of 16.10 percentage points. By region, domestic market revenue was 1.297 billion yuan, a slight increase of 0.33 percent year on year, with a gross margin of 18.71 percent, down 5.56 percentage points. Overseas market revenue was 888 million yuan, a sharp year-on-year decline of 30.67 percent, with a gross margin of 27.38 percent, down 14.61 percentage points. Financial expenses surged 208.33 percent to 115 million yuan, mainly due to exchange losses from the depreciation of the US dollar and the Egyptian pound. As of the end of the second quarter, the company's total assets were 9.954 billion yuan, up 20.3 percent from the end of the previous year. Net assets attributable to the parent company were 195 million yuan, down 45.3 percent from the end of the previous year. The company's controlling shareholder is Midea Group, with a stake of 22.63 percent. The company had previously announced plans to issue no more than 2.5 billion yuan in a private placement to Midea Group to repay interest-bearing debt and replenish working capital. At the same time, it plans to sell part of the assets of the Guangming Smart Energy Industrial Park for 1.307 billion yuan, of which Midea Group will pay 520 million yuan to acquire part of the assets. The asset sale has not yet been completed.

CLOU Electronics disclosed that the total external guarantee cap for the company and its subsidiaries is RMB 2.52 billion, representing 706.95% of audited net assets at the end of 2025. The outstanding external guarantee balance is equivalent to RMB 739.4025 million, accounting for 207.43% of net assets. The company recently provided an additional RMB 50 million joint and several liability guarantee for its wholly-owned subsidiary Yichun CLOU Energy Storage Technology Co., Ltd., executed within the already approved total guarantee cap of RMB 2.52 billion. As of the announcement date, the guarantee balance for Yichun CLOU stood at RMB 411.4715 million, with its asset-liability ratio reaching as high as 94.32% and first-quarter net profit of only RMB 3.1405 million. CLOU Electronics reported a net loss attributable to the parent company of RMB 156 million in 2025, marking five consecutive years of losses, and expects a loss of RMB 180 million to 260 million in the first half of 2026. Midea Group plans to provide a RMB 3 billion joint and several liability guarantee and inject RMB 2.5 billion in capital to support CLOU Electronics' credit and liquidity.

CLOU Electronics disclosed its earnings forecast, expecting a net loss attributable to shareholders of 180 million to 260 million yuan in the first half of 2026, compared with a profit of 190 million yuan in the same period last year. The company expects operating revenue of 2.1 billion to 2.3 billion yuan for the period, with a non-recurring net loss of 190 million to 270 million yuan. The change in performance is mainly due to delivery delays in some overseas energy storage projects and the impact of a market ban from China Southern Power Grid, leading to a decline in revenue. At the same time, intensified industry competition and rising raw material prices have lowered gross margins. In addition, exchange rate fluctuations resulted in foreign exchange losses, asset sales led to impairment provisions of approximately 25 million yuan, and a long-term equity investment impairment provision was made for its associate company Chewangdian.

On the evening of July 9, multiple listed companies on the Shanghai and Shenzhen stock exchanges issued important announcements. Hengshang Energy Conservation, citing a significant short-term share price surge, issued a risk warning stating there is irrational speculation and the price could fall rapidly at any time, and disclosed plans to acquire a 100% stake in Jinsheng Electronics, but the target company's business has not ventured into high-value-added areas, and the company faces substantial acquisition integration risks. Three Gorges New Materials plans to jointly invest approximately 2.6 billion yuan with its indirect controlling shareholder to build a Lingang automotive and electronic glass project, with the company's investment no less than 1.04 billion yuan. Zhengbang Technology estimates that asset losses caused by Super Typhoon Maysak may exceed 10% of the company's audited 2025 net profit. Azure Lithium Core plans to invest 290 million US dollars to build a 5 gigawatt-hour cylindrical lithium battery manufacturing project in Indonesia. ST Huawen applied to revoke its delisting risk warning but will continue to implement other risk warnings. Clou Electronics plans to issue shares to its controlling shareholder Midea Group in a private placement to raise no more than 2.5 billion yuan, to repay interest-bearing debt and supplement working capital. ST Yinjiang, along with its controlling shareholder, has been placed on file for investigation by the China Securities Regulatory Commission for suspected illegal information disclosure. Datang Power plans to raise no more than 8 billion yuan through a private placement for multiple power plant expansion and other projects. On the earnings front, GigaDevice expects its first-half net profit attributable to the parent company to be approximately 6.9 billion yuan, a year-on-year increase of about 1,099%, mainly due to rising volumes and prices of memory chip products. Foxconn Industrial Internet expects first-half net profit attributable to the parent company to be between 23.4 billion yuan and 24.4 billion yuan, a year-on-year increase of 93% to 101%, with revenue from AI servers for cloud service providers growing over 230% year-on-year. Zijin Mining expects first-half net profit attributable to the parent company to be approximately 39.1 billion yuan, a year-on-year increase of about 68%. In addition, several companies disclosed share increase or buyback plans: Qingmu Technology plans to buy back shares worth 20 million to 30 million yuan, Shenghang Co., Ltd.'s controlling shareholder plans to increase holdings by no more than 3.24% of total shares, and Bairun Co., Ltd.'s actual controller plans to increase holdings by 50 million to 100 million yuan. Aviation Technology signed a long-term supply agreement for aero-engine rotating parts worth approximately 240 million yuan, and Songjing Co., Ltd. signed a sales contract for battery cell insulation UV inkjet printing equipment worth approximately 30 million yuan.