MeiG Smart Technology (002881) investor relations material

Executive summary

• Revenue for H1 2026 reached ¥2.02 billion, up 7.32% year-over-year, with Q2 revenue hitting a record single-quarter high of ¥1.097 billion, marking the first time quarterly revenue surpassed ¥1 billion.

• Net profit attributable to shareholders was ¥106 million, up 25.85% year-over-year; adjusted net profit (excluding non-recurring items) was ¥107 million, up 29.84%.

• Overseas revenue surged 87.3% year-over-year, accounting for 49.26% of total revenue, nearly reaching parity with domestic sales.

• Gross margin improved to 17.45%, up 3.99 percentage points year-over-year, with Q2 gross margin at 18.63%.

• The company continued to invest heavily in R&D and advanced manufacturing, including a new AI R&D and manufacturing base and acquisition of a Shanghai R&D office.

Financial highlights

• Operating cash flow was negative ¥265 million, mainly due to increased accounts receivable and inventory for future orders.

• Total assets at period-end were ¥4.83 billion, up 62.87% from year-end 2025; net assets attributable to shareholders were ¥2.79 billion, up 63.83%.

• Basic and diluted EPS were both ¥0.38, up 18.75% year-over-year.

• R&D expenses reached ¥136 million, up 10.38% year-over-year.

• Overseas H-share listing in March 2026 raised significant capital, boosting cash and equity.

Outlook and guidance

• Management expects continued strong demand for high-compute and AI modules, especially as edge AI and physical AI applications expand.

• Overseas market growth and product innovation are expected to remain key drivers.

• Strategic investments in AI infrastructure and advanced manufacturing are aimed at supporting future growth.