UGREEN Posts Strong H1 Results: Net Profit Surges 56%, R&D Investment Doubles

Ebrun Original | September 2 -- UGREEN Technology (301606.SZ) recently released its 2026 half-year report, demonstrating robust growth momentum and profitability.

During the reporting period, the company posted operating revenue of 5.821 billion yuan, up 50.92% year-on-year, marking a significant expansion in revenue scale. Its net profit attributable to shareholders reached 431 million yuan, a 56.90% year-on-year increase, while its non-net profit deducting non-recurring gains and losses attributable to shareholders stood at 420 million yuan, rising 62.59% year-on-year. All three core indicators posted their highest year-on-year growth rates since the company went public.

The strong performance immediately received a positive response from the secondary market.

On the first trading day after the earnings release, the company's share price soared more than 10%, reversing a sluggish trend that had persisted for over a month, and continued to fluctuate upward in subsequent trading sessions. As of press time, the share price once hit 57.86 yuan, though it still has significant ground to recover compared to its mid-May high of over 80 yuan.

After a volatile first half marked by intense battles between bullish and bearish investors, UGREEN Technology appears to have gradually stabilized, proving its solid business fundamentals to the market and continuing to gain ground in its core business segments.

I. NAS Business Maintains Rapid Growth, Gross Margins Rise Across All Product Lines

During the reporting period, UGREEN's three traditional product lines delivered stable performance.

By category, revenue from creative charging products reached 2.667 billion yuan, up 50.02% year-on-year, contributing nearly half of total revenue. The other two traditional business segments, smart office and smart audio-visual, posted revenue of 1.500 billion yuan and 877 million yuan respectively, rising 42.26% and 42.32% year-on-year.

Notably, gross margins across all product lines increased compared to the same period last year, bringing the overall gross margin to 39.18%, up 2.2 percentage points year-on-year. As an established 3C manufacturer known for its strong supply chain capabilities, UGREEN has further demonstrated its cost control capabilities.

However, what has truly caught the market's attention is its consumer NAS business, which has boomed over the past year driven by AI concepts such as "OpenClaw".

It is understood that UGREEN has designated its smart storage category, with NAS as the core product line, as the company's "second growth curve", and has continued to increase system-level R&D investment. This category has now become one of the company's fastest-growing product lines, generating 770 million yuan in revenue, a sharp 85.53% year-on-year increase.

The report notes that the company has built a multi-tier NAS product matrix covering entry-level home devices to professional flagship models. Its core products run on the self-developed UGOS Pro system, are equipped with local AI computing power, and support multiple intelligent functions such as intelligent file tagging, quick organization, semantic search for photo files, and personal knowledge base summarization.

According to previously publicly disclosed data, in 2025, UGREEN outperformed a host of established industry players and emerging rivals (with widely speculated peers including Synology, QNAP, Buffalo, and ZhiTi) to take a commanding lead in consumer NAS products, claiming the "double crown" of both shipment volume and retail sales with a substantial gap over competitors.

II. Cross-border Business Skyrockets, Offline Revenue Impresses, Amazon Channel Extends Its Lead

In the first half of 2026, UGREEN continued to deliver accelerated growth in overseas markets.

By region, overseas revenue reached 3.888 billion yuan, up 69.42% year-on-year, accounting for 66.79% of total revenue, up from the previous year and becoming the core growth driver. Domestic revenue stood at 1.926 billion yuan, up 23.46% year-on-year, as the company steadily expanded its penetration in the Chinese market.

Meanwhile, in terms of channel layout, UGREEN has shown a trend of "strengthening existing strengths while expanding into new areas".

Amazon remains the core revenue source, with the single channel continuing to hold a dominant position: during the reporting period, the Amazon channel contributed 2.280 billion yuan in revenue for UGREEN, a 71.78% year-on-year surge, accounting for 39.22% of total revenue – up 4.79 percentage points from the same period last year.

On domestic e-commerce platforms, UGREEN posted revenue of 508 million yuan on JD.com and 428 million yuan on Tmall, with slight year-on-year declines and gains respectively, showing little overall change.

Revenue from channels other than Amazon, Tmall, and JD.com (mainly overseas independent sites, AliExpress, Lazada, Shopee, Noon, TikTok, etc.) totaled 931 million yuan, rising 59.97% year-on-year.

Overall, online channels remain UGREEN's main sales venues. In the first half, its total online revenue reached 4.147 billion yuan, accounting for 71.33% of total revenue, up 15.69% year-on-year.

Of particular note is UGREEN's ambition to "revamp its offline presence". In the first half, its offline revenue reached 1.667 billion yuan, accounting for 28.67% of total revenue, soaring 65.31% year-on-year.

During the reporting period, UGREEN actively expanded offline channels, further growing its distribution network in global markets and advancing its global sales layout. Through strategic partnerships with large supermarket chains, specialized channels, and leading regional distributors, the company has successfully entered the channel systems of well-known retail giants overseas, including Walmart, Costco, Best Buy, B&H, and Micro Center in the U.S., Media Markt in Europe, and Bic Camera and Yodobashi Camera in Japan.

III. R&D Investment Grows Rapidly, Price-to-Earnings Ratio Enters Reasonable Range

Previously, when UGREEN released its 2025 annual report, many market commentators noted that its price-to-earnings (P/E) ratio reflected "overheated market sentiment" – at that time, UGREEN's P/E ratio once exceeded 40, far higher than peer giants in the electronics sector such as Anker Innovations, Edifier, and Transsion Holdings.

This quarter, after a series of market adjustments, UGREEN's P/E ratio has shed excess froth, falling steadily to around 27, roughly at the upper end of the same range as Anker (23.11), Transsion (20.72), and Edifier (20.58), returning to a relatively healthy and stable range.

On the other hand, UGREEN has also been accelerating strategic moves on the operational front, seeking to strengthen its industry moat and boost market recognition.

The half-year report shows that in the first half of 2026, its R&D investment reached 349 million yuan, a 101.21% year-on-year surge, mainly driven by the expansion of its R&D team and increased employee compensation.

In fact, the expansion of R&D investment is not a short-term measure – last year, its R&D expenses already rose 43.96% year-on-year, and this year's growth has accelerated further on that high base. As of the end of the reporting period, the company held a total of 2,506 registered patents globally, including 48 invention patents, with another 349 invention patents undergoing substantive examination.

Alongside increased R&D investment, UGREEN launched a number of new products intensively this quarter.

For example, in the smart storage sector, it launched the flagship model iDX6011Pro, which is equipped with a local large model and Thunderbolt 4 interface, designed to meet the high-intensity storage and local AI computing power needs of small and medium-sized teams and professional creators.

In the smart audio-visual sector, it launched multiple new products including the X8 ear clip headphones, which integrate a number of self-developed core technologies such as next-generation high-speed audio and video transmission, next-generation Bluetooth audio, low-power high-precision positioning, high-definition image capture, and high-refresh portable display, further enriching its product matrix.

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