--- title: "Has Ningbo Starway Automation's profit inflection point arrived? After Q2 revenue grew by 37%, it still has three hurdles to clear" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/43784787.md" description: "On September 4, Xingyun Co., Ltd. shared a set of highly emotive figures during an investor exchange event: H1 2026 revenue reached RMB 690mn (+23.93% YoY); Q2 revenue was RMB 451mn (+37.20% YoY); net profit attributable to shareholders hit RMB 18.23mn (+305.85% YoY), marking a turnaround from loss. The most substantive shifts include accelerated Q2 revenue growth, doubled testing service income, and simultaneous rises in contract liabilities and inventory, indicating orders are entering the delivery pipeline. However..." datetime: "2026-09-07T08:51:55.000Z" locales: - [en](https://longbridge.com/en/topics/43784787.md) - [zh-CN](https://longbridge.com/zh-CN/topics/43784787.md) - [zh-HK](https://longbridge.com/zh-HK/topics/43784787.md) author: "[财报研究](https://longbridge.com/en/profiles/2152743.md)" generator: "portal-rs" --- # Has Ningbo Starway Automation's profit inflection point arrived? After Q2 revenue grew by 37%, it still has three hurdles to clear On September 4, Xingyun Corporation released a set of emotionally charged figures during an investor exchange: H1 2026 revenue of ¥690mn (+23.93% YoY); Q2 revenue of ¥451mn (+37.20% YoY); and net profit attributable to shareholders of ¥18.23mn (+305.85% YoY), marking a return to profitability. The more substantive changes include accelerated Q2 revenue, doubled testing service income, and simultaneous rises in contract liabilities and inventory, signaling orders entering the delivery pipeline. However, the semi-annual report also presents a challenge that must be addressed: after deducting non-recurring gains and losses, the company still posted a loss of ¥30.37mn, with operating cash flow at just ¥4.01mn. My view is clear: Xingyun shows right-side signals of operational improvement, but earnings quality remains under verification. The new energy equipment sector most fears misreading quarterly recognition rhythms as long-term inflection points, and often underestimates the business boundary expansion driven by testing services, energy storage, and post-battery services. The key going forward is whether growth can pass through three hurdles: gross margin, expenses, and cash flow. **Sudden Q2 acceleration: order fulfillment offers more signal than profit growth** The most intuitive change in Xingyun's semi-annual report lies in the revenue rhythm. Of the ¥690mn H1 revenue, Q2 contributed ¥451mn, accounting for ~65% of half-year revenue. The company attributed growth to increased orders and confirmed positive trends on Sept 4. While single-quarter volatility in lithium battery equipment revenue due to customer acceptance, project delivery, and production line construction rhythms is not rare, the 37.20% YoY growth in Q2 indicates that prior orders are beginning to enter acceptance and settlement stages. More supportive of order visibility are changes at both ends of the balance sheet. As of end-June, contract liabilities reached ¥289mn, up ~43% from year-end; inventory rose from ¥541mn to ¥701mn, an increase of nearly 30%, mainly driven by rising dispatched goods and work-in-progress due to order growth. Simultaneous increases in advance receipts and stockpiling provide some support for H2 revenue, but inventory only converts to revenue and cash upon successful acceptance; prolonged backlog creates impairment pressure. Marginal changes in the business structure are particularly noteworthy. Lithium battery equipment revenue was ¥500mn in H1 (+18.52% YoY); testing service revenue hit ¥108mn (+101.04% YoY), attributed by the company to completed and customer-confirmed inspection services. Testing service gross margin stood at 36.24%, higher than the 29.19% for lithium battery equipment. Equipment sales are more affected by downstream capex, while inspection services are closer to R&D validation, mass production certification, and safety management. If testing services continue to expand, Xingyun will enhance its service attributes across the full battery lifecycle. Problems are also hidden within the growth. Lithium battery equipment gross margin fell 464bps YoY, and testing service gross margin dropped 189bps; South China region revenue grew 49.83%, yet gross margin declined 911bps. Orders have converted to revenue, but price competition, project structure, and delivery costs continue to suppress profit transmission. At this stage, we can confirm marginal improvement in prosperity, but cannot declare a complete profit inflection point based solely on one quarter of high revenue growth. **Behind the ¥18.23mn profit, core business still needs a true turnaround** A 305.85% H1 net profit growth is striking, but dissecting the income statement yields a cooler conclusion. Xingyun's H1 non-recurring gains and losses totaled ¥48.60mn, including ¥44.19mn from disposal of non-current assets; meanwhile，扣 non-net profit attributable to shareholders lost ¥30.37mn, widening from ¥18.55mn in the same period last year. The report also disclosed investment income of ¥39.57mn, representing 122.60% of total profit, primarily from equity investment disposals, explicitly noted as non-sustainable. In other words, the accounting-level turnaround has occurred, but the operational-level turnaround is incomplete. The cost side explains why profits did not expand in sync with revenue. While operating revenue grew 23.93%, operating costs rose 26.63%, sales expenses surged 32.99%, and R&D investment increased 4.86%. Calculated from disclosed data, comprehensive gross margin was ~31.94%, below ~33.39% in the same period last year. Sales networks, overseas expansion, and new business investments require expenses, but once an equipment enterprise enters a profit release phase, revenue growth should typically lead expense growth, and manufacturing costs should be diluted through standardized production. Xingyun is transitioning from a customized equipment maker to a scaled, standardized product enterprise, but H1 data has not yet fully reflected scale effects. Cash flow is another unavoidable line. H1 operating cash flow net was ¥4.01mn, down 95.35% YoY, explained by increased procurement payments; accounts receivable rose from ¥342mn at year-end to ¥394mn. Early-stage order expansion consumes capital; if revenue growth relies long-term on more working capital, profit elasticity will be discounted by cash flow quality. Meanwhile, inventory depreciation losses of ¥33.44mn remind investors to watch for project delays, tech iteration, and price changes. Therefore, judging a profit inflection point requires confirmation from at least three data sets: narrowing non-core losses, stabilizing equipment gross margins, and operating cash flow keeping pace with revenue growth. Only when all three improve synchronously will Xingyun's turnaround upgrade from an accounting result to an operational reality. **AI data centers open imaginative space, but fundamentals still rely on battery testing realization** Xingyun's business boundaries are widening. Operating midstream in the lithium battery chain, it covers power batteries, energy storage batteries, consumer/small power batteries, and EV charging/post-service testing downstream. The semi-annual report also lists backup power storage demand driven by data centers and AI computing as a new driver for the energy storage market. The company also collaborated with the Chinese Academy of Transportation Sciences to release the "Vehicle and Ship Service Battery Health AI Large Model," extending accumulated inspection data, state identification, and safety assessment capabilities into transportation post-service scenarios. Here, imagination space and current performance must be viewed separately. AI data centers first drive power infrastructure and energy storage system demand, which may then trickle down to battery testing, PCS, and related equipment. Xingyun has not separately disclosed AI data center business revenue, nor has robotics formed quantifiable revenue contribution. Current anchors on the financial statements remain lithium battery equipment, testing services, energy storage products, and integrated charging-inspection piles. AI is better suited as an amplifier for battery safety detection capabilities, rather than being directly used as a short-term performance tag. In late August, the company announced plans to issue H-shares and apply for listing on the Main Board of the Hong Kong Stock Exchange, aiming to expand overseas business. In H1, the company participated in the Seoul Battery & Energy Storage Exhibition in Korea, the European Battery Show, and the European Smart Energy Expo, launching the brand NEPOWER in Europe. With lithium battery clients expanding overseas, equipment makers need local delivery and after-sales networks; whether they can secure overseas orders and improve revenue structure requires verification in subsequent reports. This article is compiled based on public information including Xingyun Corporation's 2026 Semi-Annual Report, Investor Relations Activity Records, and relevant announcements. It is for informational reference only and does not constitute any investment advice. Markets carry risks; invest cautiously. ### Related Stocks - [300648.CN](https://longbridge.com/en/quote/300648.CN.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**