Epiworld International (2726) investor relations material

Executive summary

• Revenue for H1 2026 surged 92.0% year-over-year to RMB577.6 million, driven by robust demand from AI data centers, new energy vehicles, and energy storage sectors.

• Gross profit rose 193.5% to RMB160.7 million, with gross margin improving from 18.2% to 27.8% due to scale and cost optimization.

• Adjusted net profit increased 43.4% to RMB139.1 million; reported net profit was RMB48.6 million, reversing a loss in H1 2025.

• Successful H-share listing on the Hong Kong Stock Exchange in March 2026 raised HK$1,559.5 million, supporting expansion and R&D.

• Expansion of production capacity, including the launch of a new 8-inch SiC epitaxial wafer base in Malaysia.

Financial highlights

• Revenue: RMB577.6 million (+92.0% YoY); Gross profit: RMB160.7 million (+193.5% YoY); Gross margin: 27.8% (+9.6pp YoY).

• Adjusted net profit: RMB139.1 million (+43.4% YoY); Net profit: RMB48.6 million (vs. loss of RMB2.0 million in H1 2025).

• Cash and cash equivalents plus term deposits: RMB3,218.8 million (+76.3% vs. end-2025).

• Total assets: RMB6,306.3 million (+39.4% vs. end-2025); Net assets: RMB4,540.1 million (+50.8% vs. end-2025).

• No interim dividend declared for H1 2026.

Outlook and guidance

• Anticipates further gross margin improvement in H2 2026 as scale and cost controls strengthen.

• Accelerating construction of an 8-inch SiC wafer production base in Malaysia, targeting trial production in H2 2027.

• Ongoing capacity expansion for 8-inch and 12-inch SiC wafers to meet rising demand in AI data centers and new energy vehicles.

• Focused on expanding global market share, deepening customer relationships, and maintaining high R&D investment in large-size and specialty process domains.