Intron Technology (1760) H1 2026 earnings summary

Executive summary

• Revenue rose 15% year-on-year to RMB3.4 billion in H1 2026, driven by a 99% surge in automotive electronics, especially electric mobility, despite a challenging automotive market in China.

• Net profit attributable to shareholders dropped 87% year-on-year to RMB6.2 million, with net profit margin at 0.2%, mainly due to lower gross margin, higher R&D and administrative expenses, and increased income tax.

• Gross profit margin declined to 11.7% from 13.5% year-on-year, reflecting higher raw material costs and price pressures.

• The Group maintained its dual-core strategy of semiconductor solutions and productisation, focusing on R&D and expanding into high-value segments like AIDC and embodied intelligence.

• 52 new mass-production nomination projects secured, including 11 overseas.

Financial highlights

• Total revenue: RMB3,399.7 million, up 15% year-on-year.

• Gross profit: RMB397.1 million, down 1% year-on-year; gross margin at 11.7%.

• Net profit: RMB6.2 million, down 87% year-on-year; net margin at 0.2%.

• R&D expenses: RMB274.7 million, up 25% year-on-year, representing 8.1% of revenue.

• Earnings per share: RMB0.66 cents, down 86% year-on-year.

Outlook and guidance

• Domestic new energy vehicle demand is expected to recover in H2 2026 as policy impacts fade, with stable growth anticipated.

• Automotive electronics revenue is projected to grow steadily, with overseas expansion and more mass-production nominations targeted.

• Cloud server-related semiconductor solutions anticipated to grow in the second half as supply agreements secure chip availability.

• Increased investment in AIDC and embodied intelligence, with focus on R&D and strategic partnerships.