Shanghai FourSemi Semiconductor (3625) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB139.2 million, down 21.3% year-over-year, mainly due to lower sales of low-power audio chips in the consumer electronics sector, especially smartphones, offset by strong growth in haptic drivers and automotive-grade audio chips.

• Gross profit increased 14.3% to RMB38.2 million, with gross margin rising to 27.5% from 18.9% due to a favorable product mix shift toward higher-margin products, including haptic drivers and flagship audio chips.

• Net loss widened by 121% to RMB68.4 million, driven by higher R&D, administrative, and marketing expenses, as well as significant foreign exchange losses.

• The company completed its H-share listing on the Hong Kong Stock Exchange in March 2026, raising HK$480 million gross (HK$422.7 million net), strengthening its capital base.

Financial highlights

• Revenue: RMB139.2 million (down 21.3% YoY); Gross profit: RMB38.2 million (up 14.3% YoY); Gross margin: 27.5% (up 8.6pp YoY).

• Net loss: RMB68.4 million (vs. RMB30.9 million loss in H1 2025); Loss per share: RMB0.61 (vs. RMB0.31 in H1 2025).

• Cash and cash equivalents: RMB171.4 million (up 45.2% from Dec 2025); Total equity: RMB488.2 million (up 343.9%).

• R&D expenses: RMB41.4 million (up from RMB33.9 million YoY); Administrative expenses: RMB39.0 million (up from RMB20.2 million YoY); Selling and marketing expenses: RMB18.5 million (up from RMB9.6 million YoY).

• Gearing ratio dropped to 25.8% from 141.7% due to IPO proceeds and reclassification of redemption liabilities.

Outlook and guidance

• Focus on product line iteration, business structure optimization, and expansion in automotive and intelligent sensing segments.

• Increased R&D investment in high-growth areas such as automotive electronics, AI edge, and AR/VR.

• New product launches expected in H2 2026, including next-gen in-vehicle and AI amplifier chips and SAR sensors.

• No interim dividend declared for H1 2026.