GalaxyCore (688728) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached RMB 4.15 billion, up 14.2% year-over-year, driven by increased shipments of high-pixel chips.

• Net profit attributable to shareholders was RMB 7.32 million, down 75.42% year-over-year, mainly due to significant forex losses from USD volatility.

• Operating cash flow rose 64.99% to RMB 1.34 billion, reflecting improved collections and higher in-house wafer production.

• The company transitioned from a Fabless to a Fab-Lite model, increasing asset investment and enhancing supply chain integration.

Financial highlights

• EBITDA for H1 2026 was RMB 735.5 million, up 5.2% year-over-year, reflecting improved core operating profitability.

• Gross margin was pressured by increased R&D and intensified market competition.

• Non-recurring gains totaled RMB 38.46 million, mainly from government subsidies and fair value changes.

• R&D expenses were RMB 436 million, representing 10.49% of revenue, down 2.87 percentage points year-over-year.

• Total assets grew 5.08% to RMB 25.63 billion; net assets attributable to shareholders increased 0.62% to RMB 7.91 billion.

Outlook and guidance

• The company will continue to focus on high-pixel CIS and display driver chip innovation, aiming to strengthen its market position.

• Ongoing investment in R&D and capacity expansion is expected to support future growth, despite short-term margin pressure.

• Management highlights risks from forex volatility, industry cycles, and intensified competition.