Sanan Optoelectronics (600703) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB 6.47 billion, down 28.04% year-over-year, mainly due to changes in tax policy affecting precious metal recycling revenue recognition.

• Net profit attributable to shareholders was -RMB 97.90 million, a decrease of 155.47% year-over-year.

• Excluding precious metal recycling, core business revenue grew 8.97% year-over-year.

• LED and application products saw double-digit revenue growth, while integrated circuit products declined.

Financial highlights

• Operating income: RMB 6.47 billion, down 28.04% year-over-year.

• Net profit attributable to shareholders: -RMB 97.90 million, down 155.47% year-over-year.

• Operating cash flow: RMB 721.92 million, down 23.56% year-over-year.

• Basic and diluted EPS: -0.02 RMB, down from 0.04 RMB.

• Gross margin: 14.85% (calculated from revenue and cost figures).

• Non-recurring gains: RMB 406.32 million, mainly from government subsidies and asset disposals.

Outlook and guidance

• The company will continue to focus on high-end LED, Mini/Micro LED, and integrated circuit business expansion.

• Plans to improve profitability by optimizing product mix and increasing utilization in new business lines.

• R&D investment will remain high to support innovation and market expansion.