hGears posts resilient H1 2026 earnings on e-mobility demand

Chinese automotive components manufacturer hGears reported first-half 2026 revenue of 1.8 billion yuan, up 12% year-on-year, while net profit rose 8% to 145 million yuan.

The company attributed the results to resilient demand for electric vehicle (EV) parts, particularly in its e-mobility segment, which grew 15% year-on-year. hGears supplies drivetrain and thermal management components to major EV producers in China and Europe.

Revenue from the e-mobility segment reached 1.1 billion yuan in the first half of 2026, accounting for 61% of total revenue. The company’s traditional internal combustion engine (ICE) components business declined 5% to 700 million yuan, reflecting the ongoing shift away from fossil-fuel vehicles.

Gross margin expanded to 22.3% from 21.1% in the same period last year, supported by higher-value EV component sales and cost efficiencies. Operating expenses rose 6% due to increased R&D investment in next-generation EV technologies.

hGears maintained its full-year 2026 revenue guidance of 3.8-4.0 billion yuan, citing strong order backlogs and expanding partnerships with European automakers. The company’s shares were up 3.2% in pre-market trading following the results.