Shenzhen SDMC Technology (901) investor relations material

Executive summary

• H1 2026 revenue rose 36.3% YoY to RMB2,095.4m; profit for the period increased 75.9% to RMB181.4m, supported by digital video growth and stronger gross margin.

• Digital video devices generated RMB1,734.0m, or 82.7% of revenue; overseas markets contributed 92.9%.

• Listed on the Hong Kong Stock Exchange on May 27, 2026; the Global Offering raised net proceeds of HK$574.2m.

• Strategic focus includes Cedar, edge AI, smart-home products, global localization and operational digitalization.

Financial highlights

• Revenue was RMB2,095.4m (+36.3% YoY); gross profit rose 63.4% to RMB443.2m and gross margin improved to 21.1% from 17.6%.

• Profit before tax increased to RMB200.9m from RMB108.7m; net profit rose to RMB181.4m from RMB103.1m, with net margin at 8.7% vs. 6.7%.

• Adjusted net profit, adding listing expenses, was RMB191.9m vs. RMB114.1m; listing expenses were RMB10.5m vs. RMB11.0m.

• Cost of sales grew 30.6% to RMB1,652.3m, slower than revenue growth; higher prices, product-mix optimization and supply-chain management supported margin expansion.

Outlook and guidance

• Advance the “1 + 2 + X” strategy and continue Cedar and cloud-edge architecture R&D, focused on multimodal understanding, reasoning and proactive services.

• Expand edge-AI video and network devices; explore AI cameras, smart glasses and home robots for a full-scenario smart-home ecosystem.

• Increase localized marketing and technical service, broaden sales channels, and deepen global software, hardware and content partnerships.

• Use automation and data analytics to improve operational efficiency; utilize IPO proceeds over three to four years for product development, AI integration, global expansion, investment and working capital.