Shanghai Fudan Microelectronics Group Company (1385) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached RMB2.225 billion, up 21.03% year-over-year, with net profit attributable to shareholders at RMB849 million, a 338.58% increase year-over-year.

• Gross profit margin remained stable at 56.99%.

• Growth was driven by strong demand in AI, memory, and satellite communications, with all major product lines contributing.

• Significant fair value gains from strategic equity investments boosted net profit by RMB420 million.

• No major changes in core business or product lines, and no significant impairment events occurred, reducing asset impairment losses compared to the prior year.

Financial highlights

• Operating profit for H1 2026 was RMB892.6 million, up from RMB172.5 million in H1 2025.

• Net cash flow from operating activities increased 315.09% year-over-year to RMB770 million.

• Total assets grew to RMB9.95 billion, with net assets attributable to shareholders at RMB6.98 billion.

• Basic and diluted EPS were RMB1.03, up from RMB0.24 year-over-year.

• R&D expenses rose 22.29% to RMB622 million, representing 26.45% of revenue.

Outlook and guidance

• The global semiconductor market is forecasted to continue strong growth, with Asia-Pacific leading.

• The company aims to further expand in high-tech and high-reliability sectors, leveraging new product launches, ongoing R&D, and technological innovation.

• Ongoing optimization of product mix and operational efficiency is anticipated to support future performance.

• No interim dividend is recommended for H1 2026.