Shaanxi Lighte Optoelectronics Material (688150) Q2 2026 earnings summary

Executive summary

• H1 2026 revenue rose 5.09% YoY to RMB 306.64m; attributable net income fell 13.00% to RMB 110.03m, reflecting higher R&D and management expenses and increased FX losses.

• Q2 revenue and attributable net income increased 30.54% and 39.30% QoQ, respectively; Red Prime, Green Host and Red Host entered mass production at BOE’s 8.6-generation AMOLED line.

• Core OLED materials remain the main business, alongside development of Q cloth, perovskite materials and pharmaceutical intermediates.

Financial highlights

• Revenue RMB 306.64m, up 5.09% YoY; total profit RMB 122.35m, down 15.15%; attributable net income RMB 110.03m, down 13.00%.

• Adjusted for non-recurring items, attributable net income was RMB 105.58m, down 11.90% YoY; non-recurring gains totaled RMB 4.45m.

• Operating cash flow was RMB 77.10m, down 25.87% YoY; investing cash flow was RMB 103.52m versus an outflow of RMB 167.92m a year earlier.

• Management and R&D expenses rose 19.70% and 19.88% YoY; finance expenses increased to RMB 6.72m from RMB 0.38m, mainly due to higher FX losses.

Outlook and guidance

• Q cloth project targets 1m meters/month of electronic-cloth capacity by Q2 2027; construction and equipment procurement progressed, while pilot production and customer sampling are underway.

• Q cloth had no sales revenue in H1 and is not expected to materially affect near-term operating results; planned total investment is RMB 1bn, phased over two to three stages.

• Proposed convertible-bond proceeds of up to RMB 524.78m would support a new production and R&D base for OLED intermediates, sublimation-prepared materials, pharmaceutical intermediates and perovskite materials; CSRC registration remains pending.

• Overseas OLED panel customers are testing multiple terminal materials; several OLED intermediate projects passed customer validation and may enter mass supply in H2 2026.