VeriSilicon Microelectronics (Shanghai) (688521) Q2 2026 earnings summary

Executive summary

• Achieved revenue of RMB 1.86 billion in H1 2026, up 91.37% year-over-year, driven by strong growth in mass production and design services.

• Net loss attributable to shareholders was RMB -612 million, with adjusted net loss at RMB -423 million, reflecting continued high R&D investment and business expansion.

• EBITDA (adjusted) was RMB -222 million; gross margin was 31.34%, down 11.98 percentage points year-over-year due to revenue mix shift.

• Orders on hand reached RMB 12.45 billion at June 30, 2026, with over 83% related to AI ASIC and data processing applications.

• Major acquisition of Zhudian Semiconductor completed, strengthening visual processing and AI ASIC capabilities.

Financial highlights

• Revenue: RMB 1.86 billion, up 91.37% year-over-year; Q2 revenue RMB 1.03 billion, up 75.95%.

• Net loss: RMB -612 million; adjusted net loss: RMB -423 million.

• Adjusted EBITDA: RMB -222 million.

• Gross margin: 31.34%, down 11.98 percentage points year-over-year.

• R&D expenses: RMB 880 million, 50.49% of revenue, down from 65.71% last year.

• Cash flow from operations: RMB 626 million (inflow).

• Total assets: RMB 9.06 billion; net assets: RMB 2.93 billion.

Outlook and guidance

• Orders on hand and new contracts indicate continued strong demand, especially in AI ASIC and data processing.

• Management expects adjusted EBITDA to turn positive in H2 2026 and full-year net profit to turn positive in 2027.

• R&D expense ratio expected to decline as revenue scales, reflecting operating leverage.