FS.COM (3355) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached RMB1,761.8 million, up 25.9% year-over-year, with profit attributable to owners rising 65.1% to RMB451.1 million, driven by global AI computing deployment and strong demand for high-speed data centers and enterprise networks.

• Gross profit margin improved to 57.0% from 51.7%, reflecting product mix optimization and higher-margin sales.

• Completed acquisition of Shanghai Baud in July 2026, enhancing R&D, manufacturing, and delivery capabilities for network equipment.

• Listed on the Hong Kong Stock Exchange in March 2026, raising significant capital for expansion.

Financial highlights

• Gross profit increased 38.8% to RMB1,004.9 million; gross margin rose to 57.0% from 51.7% year-over-year.

• Net profit margin improved to 25.6% from 19.5%; adjusted net profit margin reached 26.8%.

• Bank balances and cash nearly doubled to RMB1,460.2 million; net current assets rose to RMB3,604.6 million.

• Inventory turnover days improved to 125.3 from 138.3; trade receivables turnover days increased to 27.1.

• R&D expenses rose 34.6% to RMB106.5 million, reflecting ongoing investment in innovation.

Outlook and guidance

• AI and network infrastructure industries expected to remain in a long-term high-growth cycle, with robust demand for high-performance, integrated solutions.

• Company aims to expand global market share, elevate operating quality, and maintain long-term, high-quality growth.

• Focus on R&D, large-scale manufacturing, global supply chain, and localized services to consolidate competitive barriers.

• No interim dividend declared to prioritize business expansion and liquidity.