Xi’an Eswin Material Technology (688783) Q3 2026 earnings summary

Executive summary

• Q3 revenue reached RMB 1.062bn, up 68.50% YoY; attributable net income was RMB 440.7m, while adjusted net loss was RMB 153.5m.

• 9M revenue rose 37.16% YoY to RMB 2.651bn; attributable net income was RMB 151.4m versus a loss a year earlier, but adjusted net loss remained RMB 473.4m.

• Net income benefited substantially from fair-value gains on listed shares acquired through customer IPO strategic placements; operating performance also improved with shipment growth and a better product mix.

Financial highlights

• Q3 gross profit was RMB 68m with a 6.45% gross margin, up 4.03 percentage points YoY; 9M gross profit was RMB 136m with a 5.13% margin, up 1.11 points.

• Q3 attributable net income was RMB 440.7m, up 302.55% YoY; 9M attributable net income was RMB 151.4m, up 127.14% YoY.

• 9M operating cash flow was RMB 648.8m, up 44.16% YoY, supported by increased cash received from sales of goods and services.

• 9M R&D spending was RMB 187.3m, down 12.44% YoY; R&D was 7.07% of revenue, down 4.00 percentage points.

Outlook and guidance

• Shipment capacity was expected to reach ~1.2m wafers/month by year-end 2026 as the second factory ramps; the third factory is under construction, with full capacity targeted at 1.8m–2.0m wafers/month.

• Wafer price increases are expected to affect results in 2027; most 9M deliveries were under annual volume-and-price contracts agreed at end-2025.

• Forward-looking plans and strategy are not commitments; investors were cautioned to consider investment risks.