Shenzhen Kinwong Electronic (603228) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached RMB 8.61 billion, up 21.37% year-over-year, driven by strong AI server and data center demand.

• Net profit attributable to shareholders was RMB 601.62 million, down 7.38% year-over-year, mainly due to RMB appreciation and resulting FX losses exceeding RMB 150 million.

• Q2 2026 saw revenue of RMB 4.72 billion, with net profit up 13.61% year-over-year and 58.55% sequentially.

• High-end PCB product expansion and AI infrastructure demand fueled growth, with capacity at key plants ramping up.

Financial highlights

• Operating income: RMB 8.61 billion, +21.37% year-over-year.

• Net profit attributable to shareholders: RMB 601.62 million, -7.38% year-over-year.

• Operating cash flow: RMB 604.25 million, -33.80% year-over-year.

• Basic and diluted EPS: RMB 0.61, -14.08% year-over-year.

• Gross margin: 20.2% (calculated from disclosed data).

• Non-recurring gains: RMB 135.88 million, mainly from government grants and investment returns.

Outlook and guidance

• 2026 full-year revenue target: RMB 18–19 billion; net profit target: RMB 2.003–2.2 billion.

• 2027–2029 targets show continued strong growth, with 2029 revenue goal at RMB 30–37 billion.

• Management expects AI server and data center orders to drive further capacity expansion and performance improvement.