VeriSilicon Microelectronics (Shanghai) (688521) Q1 2026 earnings summary

Executive summary

• Revenue surged 114.47% year-over-year to RMB 835.74 million in Q1 2026, driven by strong growth in both semiconductor IP licensing and one-stop chip customization businesses.

• Net loss attributable to shareholders widened to RMB -340.84 million, with adjusted net loss at RMB -239.69 million, reflecting continued high R&D investment.

• Orders on hand reached RMB 5.13 billion, maintaining high levels for ten consecutive quarters, with over 90% expected to convert within a year.

Financial highlights

• Gross profit rose 77.34% year-over-year to RMB 270 million, but gross margin declined by 6.76 percentage points to 32.29% due to revenue mix changes.

• Operating cash flow was negative at RMB -308.40 million, a larger outflow than the previous year.

• R&D investment increased 53.38% to RMB 485.05 million, accounting for 58.04% of revenue.

• Total assets stood at RMB 7.82 billion, up 1.27% from year-end 2025.

• Basic and diluted EPS were both -0.65, compared to -0.44 a year ago.

Outlook and guidance

• New orders from January to April 29, 2026, reached RMB 8.24 billion, with the majority from one-stop chip customization and AI computing power sectors.

• Over 56% of orders on hand are for data processing applications, mainly cloud-side AI ASIC and IP.