Ingenic Semiconductor (300223) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached ¥3.96 billion, up 75.95% year-over-year, driven by strong demand in storage, computing, and analog chips, especially from AI and industrial sectors.

• Net profit attributable to shareholders was ¥1.20 billion, a 489.59% increase year-over-year, with adjusted net profit (excluding non-recurring items) up 624.75%.

• Storage chip sales surged due to tight supply and price hikes, while computing and analog chip lines also saw robust growth.

• The company continued to invest in R&D, launching new products across all major lines and leveraging AI tools to enhance development efficiency.

• Cash flow from operations more than doubled year-over-year, supporting ongoing expansion and investment.

Financial highlights

• Operating income: ¥3.96 billion, up 75.95% year-over-year.

• Net profit attributable to shareholders: ¥1.20 billion, up 489.59% year-over-year.

• Adjusted net profit (excluding non-recurring items): ¥1.17 billion, up 624.75% year-over-year.

• Basic EPS: ¥2.4808, up 488.43% year-over-year.

• Operating cash flow: ¥959 million, up 121.73% year-over-year.

• Gross margin for storage chips: 48.07%; computing chips: 61.06%; analog chips: 49.86%.

Outlook and guidance

• The storage chip upcycle is expected to continue in H2 2026, with ongoing tight supply and strong AI-driven demand.

• DRAM supply constraints are likely to persist, supporting elevated prices and margins.

• The company anticipates continued growth in AI, cloud, and IoT applications, driving demand for advanced storage and computing chips.

• Analog chip prices may rise in H2 due to industry-wide cost pressures.