Laifual (03952.HK) Announces 2026 Interim Results

PERFORMANCE HIGHLIGHTS

HONG KONG, August 28, 2026 - (ACN Newswire) - Zhejiang Laifual Drive Co., Ltd. ("Laifual" or the "Company", Stock Code: 03952.HK) announces its unaudited interim results for the six months ended 30 June 2026. The Company was successfully listed on the Main Board of The Stock Exchange of Hong Kong Limited on 30 June 2026, becoming the first Hong Kong-listed domestic harmonic reducer stock.

Significant Growth in Results with a Clear Inflection Point in Profitability

During the Reporting Period, the Company's revenue increased by 80% year-on-year to RMB142.2 million, primarily driven by the doubling of shipment volume of harmonic reducers to 239.5 thousand units. Adjusted EBITDA surged to RMB12.4 million, and adjusted net loss narrowed by 63.2% to RMB4.1 million, marking a clear inflection point in profitability. Following fundraising from the Listing, the capital structure was significantly optimised, with the gearing ratio substantially improved from 171.2% to 23.1%. Cash and cash equivalents as at the end of the period amounted to RMB980.1 million.

Release of Cost Advantages with Continued Improvement in Gross Profit Margin

Through a fully vertically integrated production system, ongoing process upgrades and economies of scale, the Company has built a structural cost advantage. The unit cost of harmonic reducers continued to decline. While maintaining competitive product pricing, the overall gross profit margin increased by 7.5 percentage points as compared with the corresponding period of the previous year to 27.3%, of which the gross profit margin of harmonic reducers increased by 8.9 percentage points to 29.6%. Rapid growth in shipments together with continued improvement in gross profit margin demonstrates that the Company has achieved growth in both volume and profitability through economies of scale and technological advantages.

Capacity Ramp-up Leading the Industry, with Rapid Delivery Supporting Order Conversion

The Company's production capacity continued to climb, with monthly capacity rapidly ramping up from 39.6 thousand units at the end of 2025 to 64.8 thousand units in July 2026, and the pace of ramp-up continuing to lead the industry. Downstream demand remained strong. The Company's capacity utilisation rate reaching as high as 95%. As of 31 July 2026, outstanding orders for harmonic reducers exceeded 400.0 thousand units, providing a solid foundation for continued future growth.

Development Strategy: A Three-Pronged Drive of Capacity Expansion, R&D and Commercialisation

Looking ahead, the Company will continue to promote the ramp-up of production capacity, technology upgrades and market expansion, so as to consolidate and increase its market share in China's harmonic reducer market.

Capacity expansion — Approximately 55% of the net proceeds from the Global Offering is earmarked for production capacity construction. The Company will orderly advance the construction of new production lines, equipment procurement and talent allocation, targeting monthly production capacity of 80.0 thousand units by the end of 2026, thereby converting capacity scale into a market share advantage.

Technology iteration — The Company will closely follow the development trend of humanoid robots towards lightweight design and high precision, continue to advance the iteration and upgrade of harmonic reducers, and further enhance the performance and cost competitiveness of its core products; at the same time, it will advance the R&D and commercialisation of products such as high-precision planetary reducers and joint modules, enhance its integrated solution capabilities, and upgrade from a harmonic reducer supplier to a provider of precision transmission solutions.

Market expansion — As production capacity is released, the Company will deepen cooperation with leading customers, increase its share of supply to existing customers, and at the same time expand to other robotics and high-end equipment customers, promoting the adoption of its products in a broader range of application scenarios. The Company will accelerate its overseas market layout, enhance its overseas sales and service network, and advance product validation, adoption and order conversion among leading overseas customers.

The Company will seize the development opportunities arising from the commercialisation of humanoid robots and the localisation of precision transmission, fully leverage its synergies in production capacity, cost and customers, and strive to become a global leader in precision transmission solutions, creating long-term value for Shareholders.

About Zhejiang Laifual Drive Co., Ltd.

Zhejiang Laifual Drive Co., Ltd. (Stock Code: 3952.HK) is a leading provider of core components for robotic precision transmission in China. It offers a comprehensive product portfolio spanning harmonic reducers, joint modules, robotic arms and automated workstations. Its products are primarily applied in humanoid robots, industrial robots, collaborative robots and other high-precision application scenarios. In terms of shipment volume in 2025, the Company had a market share of 21.4% in China's robotic harmonic reducer market, ranking second domestically.

For enquiries, please contact: ir@laifual.com