NATIONAL SILICON INDUSTRY GROUP (688126) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached RMB 2.32 billion, up 36.51% year-over-year, driven by a 90%+ increase in 300mm wafer sales volume, though average selling prices remained low.

• Net loss attributable to shareholders was RMB -965 million, with profitability pressured by increased R&D, FX losses, and higher inventory impairment.

• Operating cash flow turned positive at RMB 179 million, a significant improvement from the prior year.

Financial highlights

• Revenue: RMB 2.32 billion (+36.51% YoY); 300mm wafer sales volume up 90%+, 200mm up 16%.

• Net loss: RMB -965 million (vs. -367 million YoY); EPS: -0.292.

• Gross margin did not improve significantly due to continued low ASPs and high-cost inventory.

• R&D expenses: RMB 259 million (+66.5% YoY), 11.17% of revenue.

• Operating cash flow: RMB 179 million (vs. -462 million YoY).

Outlook and guidance

• 300mm wafer capacity expected to reach 1.2 million wafers/month by year-end 2026.

• Focus on expanding high-end product lines for AI, automotive, and silicon photonics.

• Anticipates gradual price recovery in 300mm wafers in H2 2026.

• Continued investment in R&D and capacity to address structural supply gaps in high-end domestic market.