Megmeet delays smart warehouse project, reports mixed half-year results

Shenzhen Megmeet Electrical announced on August 29, 2025, that its "Smart Warehouse Project" from the 2022 convertible bond offering will be extended to October 2026, a year past its original October 2025 target. This decision is due to the project's high complexity and the need for extensive system adjustments and optimizations to ensure quality and operational efficiency. The project has utilized CNY 16,885.95 million of its planned CNY 25,000.00 million investment, reaching a progress of 67.54%.

The company also released its 2025 semi-annual financial report, showing a 16.52% increase in operating income to CNY 4,673,733,754.96. However, net profit attributable to shareholders decreased by 44.82% to CNY 173,590,606.69, while non-recurring profits declined by 49.97% to CNY 140,918,936.94. Cash flow from operating activities saw a significant increase of 190.36% to CNY 192,100,900.06. Total assets grew by 3.57% to CNY 12,412,907,198.01.

Other key financial adjustments included a 170.88% rise in income tax expense due to increased subsidiary profitability and a 124.48% decrease in financial expenses, mainly from reduced convertible bond interest. The company reaffirmed its commitment to strategic layout, continuous R&D investment, and global market expansion. Additionally, the company is proceeding with a 2025 restricted stock incentive plan and a targeted A-share issuance, which received Shenzhen Stock Exchange's acceptance on July 17, 2025.