Suzhou Novosense Microelectronics (688052) Q2 2026 earnings summary

Executive summary

• H1 2026 revenue rose 66.73% YoY to RMB 2,540,419,186.83; attributable net income turned positive, but adjusted for non-recurring items, attributable net loss was RMB 47,888,800.

• Q2 attributable net income was RMB 103,328,300 and adjusted attributable net income RMB 6,880,800, reversing Q1 losses as revenue growth and lower expense ratios improved profitability.

• Results were unaudited; reported profit included substantial fair-value gains from financial investments and government grants.

Financial highlights

• Revenue was RMB 2,540,419,186.83, up 66.73% YoY; operating costs increased 74.77% to RMB 1,725,205,830.08, with rising precious-metal input costs and tight supply pressuring some product costs.

• Total profit was RMB 62,814,309.28 and attributable net income RMB 67,591,800.42, versus losses of RMB 89,601,457.71 and RMB 78,009,986.82, respectively, in H1 2025.

• Excluding non-recurring items, attributable net loss was RMB 47,888,800, versus RMB 105,640,300 a year earlier; non-recurring gains totaled RMB 115,480,597.77.

• R&D expense was RMB 446,328,839.30, up 23.54% YoY; R&D was 17.57% of revenue, down 6.14 percentage points as revenue grew faster.

• Operating cash flow was negative RMB 710,482,229.56, versus negative RMB 307,665,722.27; cash purchases of goods and services rose 126.42% YoY amid higher inventory and capacity deposits.

Outlook and guidance

• Product development priorities include automotive-grade isolation and safety-drive chips, high-precision ADCs, intelligent power drivers, and broader COT and automotive BCD process platforms.

• New products targeting AI-server power, automotive, industrial control and energy storage are progressing through mass production, customer sampling, qualification or project nomination.

• Strategic supply agreements, added wafer and packaging-test capacity, and more diversified sourcing are intended to support rising demand and improve supply-chain resilience.