Lens Technology (300433) investor relations material

Executive summary

• Revenue for H1 2026 was ¥28.87 billion, down 12.42% year-over-year; net profit attributable to shareholders was ¥577 million, down 49.52% year-over-year.

• Gross margin improved to 16.43%, up 2.21 percentage points year-over-year, reflecting a shift to higher value-added products.

• Q2 saw sequential recovery: revenue grew to ¥14.73 billion, net profit rebounded to ¥726 million, and gross margin rose to 18.2%.

• AI hardware, automotive, and new materials businesses showed strong momentum, offsetting weakness in traditional consumer electronics.

• R&D investment reached ¥1.49 billion, focusing on AI, advanced materials, and next-gen manufacturing.

Financial highlights

• Operating cash flow was ¥2.01 billion, down 53.5% year-over-year due to lower revenue.

• Total assets at period-end were ¥84.55 billion, up 0.25% from year-end 2025.

• Net assets attributable to shareholders were ¥52.77 billion, down 4.09% from year-end 2025.

• Basic and diluted EPS were ¥0.11, down 52.17% year-over-year.

• Adjusted net profit (excluding non-recurring items) was ¥278 million, down 70.45% year-over-year.

Outlook and guidance

• Management expects continued improvement in H2 2026, driven by high-end product launches and AI-related business expansion.

• Strategic focus remains on AI hardware, automotive glass, and advanced materials, with new capacity and product launches planned.