Shennan Circuit Company (002916) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached ¥15.30 billion, up 46.33% year-over-year; net profit attributable to shareholders was ¥2.25 billion, up 65.55% year-over-year.

• All three core businesses—PCB, substrate, and EMS—achieved double-digit growth, with substrate revenue more than doubling.

• The company capitalized on AI infrastructure demand, optimizing product mix and expanding capacity, especially in high-end substrates and data center applications.

• R&D investment increased 27.81% to ¥859 million, supporting technical leadership and patent growth.

Financial highlights

• Operating income: ¥15.30 billion, up 46.33% year-over-year.

• Net profit attributable to shareholders: ¥2.25 billion, up 65.55% year-over-year.

• Operating cash flow: ¥1.50 billion, stable year-over-year.

• Gross margin for PCB: 36.85% (+2.43ppt), substrate: 31.35% (+16.20ppt), EMS: 17.30% (+2.32ppt).

• Total assets: ¥40.74 billion (+33.22% from year-end 2025); equity: ¥18.03 billion (+5.14%).

Outlook and guidance

• AI and data center demand expected to drive continued growth in high-end PCB and substrate markets.

• Ongoing capacity expansion in Thailand, Guangzhou, and Wuxi to support future orders.

• Management remains cautious on macroeconomic and supply chain risks but expects structural opportunities in AI and automotive electronics.