Introduction

This industry report analyzes the Q3 2026 financial performance (January–September 2026) of China’s four publicly listed fitness equipment manufacturers: SHUA Sports Co., Ltd. (SSE: 605299), Qingdao Impulse Health Tech Co., Ltd. (SZSE: 002899), Jiangsu Kangliyuan Sports Technology Co., Ltd. (SZSE: 301287), and Qingdao Sportsoul Health Tech Co., Ltd. (SZSE: 001300).

As core players across China’s commercial fitness equipment, home gym equipment, strength training, and cardio machine supply chains, their financial disclosures provide an objective benchmark for global fitness industry investors, gym equipment suppliers, and market observers.

All figures cited below are based on the official Q3 2026 financial reports released by each company.

For international comparability, key financial metrics are presented in both Chinese Yuan (RMB) and US Dollars (USD), converted at the November 13, 2026 closing exchange rate of 1 USD = 6.6718 RMB.

I. Core Financial Overview (Q1–Q3 2026)

(Note: Balance sheet figures are as of September 30, 2026; income statement and cash flow figures represent cumulative totals for Q1–Q3 2026.)

II. Key Industry Trends & Financial Analysis

1. Revenue: Broad Recovery Led by Domestic Brands

• Universal Top-Line Growth: All four listed exercise equipment companies achieved year-over-year (YoY) revenue growth in the first nine months of 2026, indicating that global commercial gym procurement and residential fitness demand have moved past cyclical lows into a moderate recovery phase.

• Domestic Brands vs. Export OEM/ODM: SHUA, anchored by strong domestic brand equity across China’s commercial gym equipment, government/institutional procurement, and home fitness channels, led the peer group with Q1–Q3 revenue of RMB 1.247 billion (USD 186.93 million) (+23.74% YoY) and standalone Q3 revenue of RMB 458.51 million (USD 68.72 million) (+16.52% YoY). By comparison, export-heavy manufacturers—Impulse (+3.42%), Sportsoul (+4.87%), and Kangliyuan (+6.01%)—posted steady single-digit growth.

2. Profitability: Sharp Polarization & Margin Compression

• SHUA Doubles Earnings: Driven by economies of scale and an industry-leading gross margin of 30.86%, SHUA’s net profit attributable to shareholders surged 100.49% YoY to RMB 71.28 million (USD 10.68 million), while non-GAAP net profit jumped 112.31% to RMB 69.89 million (USD 10.47 million)—accounting for over 84% of combined net earnings across the four companies.

• Profit Pressure on Export Manufacturers:

Cost Squeeze: Kangliyuan’s operating costs climbed 15.46% YoY (outpacing its 6.01% revenue growth), while Sportsoul’s operating costs rose 9.77% (vs. 4.87% revenue growth), compressing Sportsoul’s gross margin to 14.68% amid overseas buyer pricing pressure and inventory buildup.

Reliance on Non-Recurring Gains: Of Kangliyuan’s RMB 14.15 million (USD 2.12 million) net profit, RMB 11.16 million (USD 1.67 million) came from non-recurring gains such as wealth management investment returns, leaving core non-GAAP net profit at just RMB 2.99 million (USD 0.45 million). Impulse’s non-GAAP net profit dropped 54.55% YoY to RMB 19.72 million (USD 2.96 million), while Sportsoul posted a net loss of -RMB 31.00 million (-USD 4.65 million).

3. FX Volatility: The Primary Earnings Drag in 2026

Financial reports show that foreign exchange losses from currency fluctuations were the single largest non-operational drag on export-focused fitness equipment suppliers:

• Kangliyuan: Financial expenses swung from -RMB 13.92 million (-USD 2.09 million, net FX gains) in Q1–Q3 2025 to +RMB 16.54 million (+USD 2.48 million) in Q1–Q3 2026—a negative pre-tax profit impact exceeding RMB 30.45 million (USD 4.56 million).

• Impulse: Financial expenses surged 154.52% YoY to RMB 20.64 million (USD 3.09 million) due to higher FX losses, directly contributing to a 46.02% decline in operating profit.

• Sportsoul: Financial expenses jumped 1,263.19% from RMB 997,300 to RMB 13.60 million (USD 2.04 million), widening its net loss.

• Conversely, domestically focused SHUA recorded financial expenses of only RMB 5.82 million (USD 0.87 million), showing minimal exposure to currency swings.

4. Expenses & R&D: Smart Innovation vs. Channel Investment

• R&D Intensity (3.2%–4.1%): The four manufacturers invested a combined RMB 106.04 million (USD 15.89 million) in R&D during Q1–Q3 2026. SHUA (RMB 40.47 million / USD 6.07 million) and Impulse (RMB 33.81 million / USD 5.07 million) led in total R&D spending, while Kangliyuan increased R&D expenditure by 28.95% YoY to RMB 16.56 million (USD 2.48 million) (4.03% of revenue), reflecting accelerated investment in smart fitness equipment and proprietary product development.

• Selling Expense Divergence: Companies building proprietary B2C, cross-border e-commerce, and domestic commercial distribution networks—SHUA (12.23% selling expense ratio) and Kangliyuan (13.50%)—recorded significantly higher marketing outlays than traditional B2B/ODM suppliers Impulse (6.09%) and Sportsoul (6.03%).

5. Balance Sheet, Cash Flow & Capital Allocation

• Inventory Stockpiling Weighs on Cash Flow: Apart from Kangliyuan (+RMB 10.11 million / +USD 1.52 million), the other three manufacturers reported negative operating cash flows: SHUA (-RMB 12.33 million / -USD 1.85 million), Impulse (-RMB 14.19 million / -USD 2.13 million), and Sportsoul (-RMB 7.06 million / -USD 1.06 million). This reflects Q3 raw material procurement and peak-season inventory buildup—inventories rose 52.06% YTD at SHUA (RMB 408.92 million / USD 61.29 million), 37.16% at Kangliyuan (RMB 117.79 million / USD 17.66 million), and 27.60% at Impulse (RMB 283.46 million / USD 42.49 million).

• Liquidity & Strategic Moves:

Kangliyuan held RMB 1.435 billion (USD 215.05 million) in cash and transactional financial assets (77.6% of total assets), while doubling short-term borrowings to RMB 410.11 million (USD 61.47 million) for working capital turnover.

Impulse, holding the largest asset base at RMB 2.873 billion (USD 430.60 million) (including RMB 1.345 billion / USD 201.60 million in fixed manufacturing assets), completed RMB 95.66 million (USD 14.34 million) in share buybacks in 2026, cancelled 1.26 million previously repurchased shares, and established new subsidiaries in Hainan and Hong Kong to expand into sports artificial intelligence (AI) and global supply chain operations.

III. Takeaways for Investors & Industry Peers

1. For Investors: China’s fitness equipment sector is shifting from pure export OEM/ODM volume growth toward brand pricing power and FX risk management. Manufacturers with entrenched domestic distribution and proprietary brand premiums (such as SHUA) show stronger earnings resilience, whereas export-reliant peers (Impulse, Kangliyuan, Sportsoul) remain sensitive to RMB/USD exchange rate swings and hedging execution until overseas restocking normalizes gross margins.

2. For Industry Peers: Simultaneous increases in Q3 ending inventories and raw material prepayments (such as Sportsoul’s doubled steel prepayments and Kangliyuan’s >300% surge in material prepayments) signal active production schedules entering Q4 2026 and Q1 2027. However, suppliers must closely watch delayed overseas shipments and inventory impairment risks, as all three export-oriented manufacturers booked multi-million-RMB asset impairment provisions in Q1–Q3 2026.

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