Efter's half-yearly report for 2026 has been published.
Revenues are growing, losses are shrinking, gross interest rates are almost doubling, and operating cash flows are finally shifting to negative.
In the first half of 2026, Efter posted revenue of 566 million yuan, an increase of 28.93 percent; net profit loss of 569.52 million yuan, a contraction of 62.48 percent; gross profit increased to 15.32 percent, an increase of 8.22 percent; net cash flow from operating activities was 2712.18 million yuan, a negative of 171 million yuan in the same period last year, the first half-yearly conversion in nearly three years.
It can be said that Eft's indicators are improving, although it is not yet profitable.
A cumulative loss of US$147 billion can also be understood as a historical accumulation of wealth.
Interestingly, there is another set of data on the balance sheet.
The financial statements show that as of June 30, 2026, Eft Merger reported a cumulative loss of US$147 billion, a cumulative loss of US$905 million for the parent company, and a cumulative loss of more than one-third of the issued share capital.
Cumulative losses do not mean that future profits cannot be made, only that the money earned will be used to pay for past losses.
The $147 billion might sound like a lot, but China's industrial robot industry is a long-term industry that investors need, maybe a little more patience.
Account loss of 569.22 million yuan and actual operating loss of 110 million yuan
If you look only at the net profit of the mother, Eft lost 569,258 million yuan in the first half of the year, the comparison has improved significantly. But if you look at the deduction, the net profit after the regular loss is more than twice the account loss.
In the first half of 2026, Efter deducted a net loss of 110 million yuan, except for a recurring loss. Non-current losses totaled 5295,69 million yuan, including government subsidies of 588,341 million yuan for the current loss.
This indicates that Eft is supported by external support.
It's a good thing for a company to get government support during its development process. After all, industrial robots are a strategic industry, the state is willing to support, the market is willing to wait.
As for when companies will be able to make profits without government subsidies, this is the last word.
Less than 30% of revenue and more than 70% of losses
Eft's international layout is also strategic, but overseas business is also the biggest bleeding point.
The report shows that in the first half of 2026, Efter achieved foreign revenue of US$183 million, accounting for 27.85% of total revenue, but the net loss from its foreign operations was US$4135.72 million. That is, less than 30% of revenue contributed to more than 70% of losses.
From another perspective, it also suggests that Eft's overseas business still has a great deal of room for improvement. As long as the overseas business can stop bleeding, its overall performance may improve significantly.
However, the European automotive industry is currently in the midst of a transformation, with major manufacturers' investments squeezing heavily and system-integrated business orders shrinking. This is clearly not a problem that EFT can solve.
R&D investment of 105 million yuan, fully reflecting the determination to reduce costs
In the first half of 2026, Efter's R&D expenses reached 105 million yuan, an increase of 15.38%, representing a revenue share of 16%.
Of course, the money also had a direct impact on the profits at the time, as R&D was entirely expense-oriented and not capitalised. In other words, R&D costs of RM105 million went directly into the loss at the time.
This logic is not a problem, after all, industrial robot enterprises do not develop, there is no future. After investing in research and development, it is converted into product outcomes, which are then converted into revenue and profits, as well as the extent of product sales and technological reductions.
Gross Rate Doubles, Finally Standing at the Gates of the Industry Average
It is worth noting that the gross interest rate is one of the most exciting figures in the first half of the EFT.
From 7.10 percent to 15.32 percent for the same period last year, Efter almost doubled the change. Efter attributes this change to the brand's up-and-down strategy, the core logic of which is no longer to take anything and sell anything at any price, but to tilt resources toward high-value racetracks and leading customers.
Some details can prove this strategy.
Specifically, the shipment of robots in the new energy industry accounted for about 30%, an increase of more than 80%. Heavy loaded crankshaft robots entered the domestic new energy headquarters main line, servo points, FDS, SPR these high-end processes began to be used in bulk.
It's a technical barrier to being able to raise prices and show that products are competitive. Eft is also the first robot company in the country to receive ATEX anti-bomb certification from the EU, so it's worth confirming the 15.32% gross margin.
The average gross margin in the industrial robot industry has been declining in recent years, with the gross margin variing from company to company, at around 15 to 25 percent.
The increase in the gross margin showed an improvement in the competitiveness of the products. From 7.10% to 15.32%, doubled in one year, and to the high gross margin range of the industry of 22%-25%, it is necessary to increase it by 50% in one or two years.
European business is adjusting and losses are waiting to improve
Eft is obviously aware of the problem of overseas business.
Starting in the second half of 2022, Efter proactively scaled down its domestic system integration, withdrawing from the Brazilian and Indian automotive system integration business, with European operations only remaining. In the first quarter of 2026, Efter completed the restructuring and staffing of its European white-body business architecture. At the same time, orders of over 30 million euros from the headquarters of the German enterprise obtained in early 2026 have also entered the maturity stage.
This shows that there are still opportunities in the European market.
While the net loss for the first half of the European business was US$4135.72 million, revenue grew by 29.15%, while capacity utilization also improved.
Increase in revenues, increase in orders, restructuring, simplification of personnel... From all positive points of view, European businesses seem to be moving in the direction of improvement.
In the first half of 2026, Efter's foreign assets were US$703 million, accounting for 19.94% of total assets. As of June 30, 2026, Efter's merger accounted for US$93,399.61 million (prepared for depreciation of US$239 million), accounting for 2.65% of total assets, mainly due to its subsequent acquisitions of CMA, RoboticsService, and WFC since 2015.
This also indicates that Efter has accumulated a wealth of experience in the process of overseas mergers and international development. Depending on future operating conditions, these experiences will not ultimately turn depreciation into added value.
Super factories came, and the effects of scale theoretically came.
According to financial reports, EFT is building a super-factory, which is expected to be delivered by the end of 2026, with an annual design capacity of 100,000 high-performance industrial robots.
After capacity is expanded, theoretically fixed costs can be mitigated. After fixed costs are mitigated, gross interest rates can theoretically be further improved.
The logic is very complete. What needs to be verified is 100,000 units of capacity, how many can be produced in the future? how many can be sold after production? how much money can each be made after sale?
These are the questions that business will answer in the next few years. After all, without capacity scale, there is no scale effect.
The core of intelligent robotics technology has been upgraded and commercialization is still underway
Efter is deploying intelligent robots. Its general technology base for intelligent robots has been upgraded from three modules to four pillars, with landing events in medical, PCB, and educational scenarios.
This indicates that Eft is looking for new growth space.
At present, the baseline of general technology for intelligent robots is still in its infancy, when will it be able to generate large-scale revenue?
There are instances where it means that there is an application. There is an application that means that there is a market possibility.
It's just three conditions.If you want to know how Eft is going to make money, there are only three things you need to do:
First, stop the bleeding of overseas operations.
In the first half of 2026, overseas business losses amounted to 413.572 million yuan. If European business restructuring is successful, large orders are executed smoothly, overseas business losses are reduced or even profitable, its overall profitability will improve significantly.
Secondly, the release of the scale effect.
After the superfactory is built, if the order is sufficient, the capacity will be used, the fixed costs will be mitigated and the gross interest rate will have room for further improvement.
Third, the commercialization of intelligent products.
The technological underpinnings need to be transformed from R&D into revenue and revenue into profits.
If all three conditions are met, EFT will make a profit soon. If one or two conditions are not met, the profit time may be delayed.
Peers of domestic industrial robots have shown that profits and losses are possible at different stages of business development. Aston's net profit in the first half of 2026 was US$161 million, an increase of 2314.23%.
The rapid growth in profits of industrial enterprises indicates that the industry has started to go down the slope again.
Evert is on his way to catch up.
Note: The cover is for AI mapping
A decade after McCamand, who led the industry in terms of shipment volume with a new story with a new story with a new story with a new story with a new story with a new story with a new story with a new story with a new story with a new story with a new story with a new story with a new story with a new story with a new story with a new story with a new story with a new story with a new story with a new story with a new story with a new one.