Xi’an Eswin Material Technology (688783) Q2 2026 earnings summary

Executive summary

• Focused on 12-inch silicon wafer R&D, production, and sales, maintaining domestic leadership and ranking sixth globally by shipment volume as of period-end.

• Total capacity exceeded 1 million wafers/month, with ongoing expansion in Xi'an and Wuhan bases; third plant construction progressing, aiming for 1.2 million wafers/month by year-end.

• Served major global and domestic semiconductor clients, with robust order backlog and full production lines.

Financial highlights

• H1 2026 revenue reached RMB 1.589 billion, up 22% year-over-year; net loss attributable to shareholders was RMB -289 million, a 14.98% reduction in loss compared to the same period last year.

• Operating cash flow remained positive at RMB 323.5 million, though down 13.85% year-over-year.

• Gross margin improved due to product mix optimization and scale effects.

• R&D expenses were RMB 122 million, representing 7.68% of revenue.

Outlook and guidance

• Anticipates continued strong demand for 12-inch wafers driven by AI, data centers, and advanced logic/memory chips.

• Expects wafer price increases in H2 2026 as market tightness intensifies.

• Plans to achieve 1.2 million wafers/month capacity by year-end and 1.8 million/month by 2030.