Creality Lost Money in H1 2026, But Is Spending $81M on a New AM Headquarters

Revenue up, profit down

Creality sold more stuff in the first half of 2026. Revenue reached RMB 1.63 billion ($242 million), up 12.9% from a year earlier. The problem is that the company made almost nothing from those sales.

Gross profit barely moved, rising just 0.9% to RMB 500.4 million ($74 million). That pushed gross margin down to 30.8% from 34.4% a year earlier. The company posted a net loss of RMB 59.1 million ($8.8 million) compared with a profit of RMB 107.5 million ($16 million) in the first half of 2025.

Why margins fell

Creality says newer products carried lower margins than previous ones. Promotions and clearance of older lines cut profitability further. At the same time, the cost of sales jumped 19.1%, faster than revenue. Higher prices for printed circuit boards, memory, and chips squeezed the bottom line.

The company also spent heavily to grow. Selling and marketing expenses rose 29.3% as Creality poured money into e-commerce platforms and social media. R&D spending climbed 37.6% to RMB 143.4 million ($21.3 million) as the team expanded. General and administrative costs surged 51.2%, partly from stock-market listing expenses and share-based compensation.

Printer business barely moved

The core printer division was nearly flat. Printer revenue reached RMB 842.4 million ($125.3 million), up just 0.1% from a year earlier. Growth came from materials, up 48.3%, and scanners and laser engravers, up 16.7%.

American revenue rose to RMB 662.4 million ($98.5 million) from RMB 529.6 million ($78.8 million). Europe increased to RMB 404.1 million ($60.1 million) from RMB 372.7 million ($55.4 million).

The $81M bet

Despite the loss, Creality has cash. The company reported RMB 1.45 billion ($215.7 million) in cash at the end of June, proceeds from its Hong Kong IPO in May. A chunk of that is earmarked for a new additive manufacturing headquarters and innovation center in Shenzhen. The project could cost up to RMB 550 million ($81.8 million), though the land still needs to go through a public tender process.

Creality hopes second-half launches will help. The K3 multi-color system, an upgraded i8, and new printers for children are all expected to drive printer sales higher.