Fuzhikang Group (02038) announced interim results. Profit attributable to shareholders of US$9.306 million increased by 50.95% year-on-year

According to the Zhitong Finance App, Fuzhikang Group (02038) announced interim results for the six months ended June 30, 2026. The group achieved operating revenue of US$2.27 billion, up 10.14% year on year; profit during the company's ownership period was US$9.306 million, up 50.95% year on year; basic profit per share was 1.19 US cents.

According to the announcement, in order to cope with the fierce competitive environment, although the increase in memory prices affected some of the Group's customers and terminated other underperforming or traditional businesses, operating income increased significantly due to a new customer in the intelligent manufacturing business and the steady development of the existing automobile and intelligent manufacturing business.

Three major business developments — The diversification of the Group's customers and product portfolio continues to expand. In the field of intelligent manufacturing, the most notable achievement was the successful introduction of a new non-mobile phone customer in the smart mobile field. In the field of automotive electronic control, competitiveness has been strengthened through product innovation and obtaining key safety certifications. The Group has also begun providing automation equipment and fixture development services within Hon Hai Technology Group, and has established new partnerships to enhance opportunities to provide artificial intelligence (AI) recycling robot services to external customers.

Improved gross margin — Gross margin increased from 3.64% in the same period last year to 4.14% in the current period, mainly due to the Group's strategic termination of unprofitable or low-profit businesses, as well as the favorable transformation of customers and product portfolios in the three major business areas towards high-value products. The Group also optimizes capacity utilization, increases production efficiency and production capacity, and maintains strict cost and expenditure control. Operational restructuring work (including streamlining indirect personnel and factory area integration) continues, particularly as part of optimizing China's business strategy and scale optimization.

Overseas production capacity expansion — The Group is expanding overseas production capacity to support regional customer needs and seize local market opportunities. With its ability to flexibly allocate production capacity between production facilities around the world, the Group is able to effectively respond to changing customer preferences and reduce geopolitical risks.