Shenzhen SDMC Technology (901) investor relations material

Executive summary

• Revenue for H1 2026 reached RMB2,095.4 million, up 36.3% year-over-year, driven by strong demand for digital video devices and overseas market expansion.

• Gross profit increased 63.4% to RMB443.2 million, with gross margin rising to 21.1% from 17.6% year-over-year.

• Net profit surged 75.9% to RMB181.4 million, with net margin improving to 8.7% from 6.7% year-over-year.

• The company completed a successful listing on the Hong Kong Stock Exchange in May 2026, raising HK$574.2 million.

Financial highlights

• Revenue: RMB2,095.4 million (+36.3% YoY); gross profit: RMB443.2 million (+63.4% YoY); net profit: RMB181.4 million (+75.9% YoY).

• Gross margin improved to 21.1% (from 17.6%); net margin to 8.7% (from 6.7%).

• Adjusted net profit (non-HKFRS): RMB191.9 million (+68.3% YoY).

• Cash and cash equivalents rose to RMB499.9 million (+82.9% from Dec 2025).

• Gearing ratio increased to 37.7% (from 18.3% at Dec 2025).

Outlook and guidance

• Focus on expanding AI-driven product portfolio and edge computing capabilities.

• Continued investment in R&D, especially in home AI agent Cedar and cloud-edge architecture.

• Plans to accelerate digital transformation, optimize supply chain, and pursue strategic investments in core technologies.

• Intends to fully utilize IPO proceeds over three to four years for product development, AI integration, global expansion, and working capital.