NSFOCUS (300369) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached ¥812.58 million, up 1.51% year-over-year, with a net loss attributable to shareholders of ¥129.02 million, narrowing the loss by 24.77% compared to H1 2025.

• Operating cash flow improved significantly to ¥193.41 million, up 136.05% year-over-year.

• The company focused on AI security, data security, and intelligent attack-defense, achieving notable breakthroughs and industry recognition.

• AI security orders reached ¥117 million, with large-scale deployments across six major industries.

Financial highlights

• Gross margin remained robust, with security products at 65.75% and security services at 58.12%.

• Sales and management expenses decreased by 13% and 19.45% respectively, while R&D investment remained high at ¥259.53 million.

• Cash and cash equivalents at period-end were ¥464.07 million, up from ¥285.63 million at the start of the year.

• Non-recurring gains totaled ¥40.17 million, mainly from asset disposals and government subsidies.

Outlook and guidance

• The company expects continued growth in AI security and data security, leveraging its strong R&D and industry partnerships.

• Market demand is expected to rise due to regulatory tightening and digital transformation across industries.