BRETON Narrows Interim Loss by 49% as High-Margin PV-Storage Business Lifts Gross Margin to 16.5%

Bulletin Express
Aug 28

BRETON (HKEX: 01333) cut its interim net loss by 49.2% to RMB 88.46 million for the six months ended 30 June 2026, driven by a sharp improvement in gross margin and lower impairment charges.

Revenue edged up 1.24% year on year to RMB 330.67 million. While sales of battery-electric wide-body dump trucks slipped 5.6% to RMB 241.99 million and battery-electric loaders plunged 74.0% to RMB 14.00 million, the newly introduced PV-storage components and electricity sales segment contributed RMB 61.54 million, accounting for 18.6% of total turnover.

Gross profit more than doubled to RMB 54.48 million, pushing the gross profit margin to 16.5% (1H25: 6.4%). Management cited product-mix optimisation and the high-margin PV-storage and electricity sales business as key drivers.

Operating metrics improved materially: • Impairment losses on receivables and contract assets dropped 84.4% to RMB 11.45 million. • Other net income swung to a RMB 12.20 million gain on higher government grants. • Selling expenses climbed 27.3% to RMB 38.13 million amid market expansion, lifting the selling-expense ratio to 11.5%. • Administrative expenses fell 18.7% to RMB 38.66 million, reflecting lower share-based payment charges. • R&D outlays rose 28.1% to RMB 47.70 million, or 14.4% of revenue, as BRETON accelerated autonomous-driving development. • Finance costs surged 149.2% to RMB 16.27 million due to higher borrowings, while finance income declined 47.1% to RMB 2.21 million.

Cash and liquidity indicators softened. Cash and cash equivalents decreased 29.1% to RMB 248.50 million, and net cash used in operations widened to RMB 165.09 million. The gearing ratio rose to 69.4% (end-2025: 64.1%) as loans and borrowings expanded to RMB 888.82 million. Management views existing cash, equipment sales, forthcoming power-operation inflows and available bank facilities as sufficient to cover near-term funding needs.

Strategic execution continued in BRETON’s three-pillar model of “Energy Supply – Equipment Application – Intelligent Driving.” Overseas grid-forming PV-storage microgrid projects advanced, with the 76 MWp/100 MWh Dizwa project (DRC) coming online in July 2026 and additional facilities in DRC and Sierra Leone slated for commissioning in 4Q 2026. The shift toward operating PV-storage assets signals a transition from construction to revenue contribution.

BRETON did not declare an interim dividend. The company repurchased 1.42 million H shares during the period for HKD 26.43 million, held as treasury shares for future incentive plans or cancellation.

Post-period, BRETON raised HKD 29.5 million via a placing of 3.05 million new H shares, earmarked for the Ruashi PV-storage project in the DRC. No other significant events were reported after the balance-sheet date.

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