Shanghai Longcheer Technology (603341) Q2 2026 earnings summary

Executive summary

• H1 2026 revenue was RMB18,661 million, down 6.26% YoY; net profit attributable to shareholders was RMB246 million, down 30.86% YoY. Q2 revenue and attributable net profit rose 5.40% and 14.38% YoY, respectively.

• Strategy combines organic expansion in AI smart hardware with selective acquisitions; completed KC Precision and Geeia Metal acquisitions and agreed to acquire 80% of A-Rack after period-end.

Financial highlights

• H1 revenue fell 6.3% YoY to RMB18,661.3 million, mainly as higher memory-chip and raw-material prices prompted lower smartphone shipments.

• Gross profit increased 11.0% YoY; gross margin rose 1.4 percentage points from 7.9%, reflecting a shift toward higher-value projects and selectivity on low-margin work.

• Profit for the period decreased 29.3% to RMB251.1 million; higher R&D spending and foreign-exchange losses were key factors.

• H1 net loss attributable to shareholders excluding non-recurring gains and losses was RMB101 million; Q2 adjusted net profit was RMB50 million, down 57.33% YoY.

Outlook and guidance

• Prioritize smartphones within the “1 + 2 + X” portfolio while expanding higher-potential AI hardware, including AI PCs, smart eyewear and robotics.

• Pursue selective acquisitions focused on major customers, technology, AI infrastructure and edge applications; future investment and acquisition decisions remain subject to opportunities and market conditions.