Zhejiang Crystal-Optech (002273) H1 2026 earnings summary

Executive summary

• H1 revenue rose 15.15% YoY to RMB 3.478bn; net profit attributable to shareholders increased 4.73% to RMB 524.3m, while gross margin improved.

• Results were led by micro-prism modules and coated filters in consumer optics, alongside faster HUD shipments; AR optics advanced toward production, while AI optics remained pre-commercial.

• Strategy centers on three growth curves: consumer electronics and automotive optics as the base, AR optics as the next growth engine, and AI optical interconnect and storage as longer-term opportunities.

Financial highlights

• Revenue was RMB 3.478bn, up 15.15% YoY; attributable net profit was RMB 524.3m, up 4.73%, and adjusted net profit was RMB 468.6m, up 5.03%.

• Operating cash flow reached RMB 721.0m, up 44.13% YoY; investment cash flow was RMB -900.8m and financing cash flow was RMB 409.4m.

• R&D expense increased 45.56% YoY to RMB 281.8m, reflecting higher spending on new projects; management expense rose 36.91% and financial expense shifted to RMB 15.4m from a RMB 27.7m gain.

• Total assets were RMB 13.909bn, up 9.37% from year-end; shareholders’ equity attributable to the parent was RMB 10.206bn, up 4.45%.

• Non-recurring gains totaled RMB 55.8m, including RMB 39.7m in government grants and RMB 20.9m in asset-disposal gains; adjusted net profit excludes non-recurring items.

Outlook and guidance

• FY26 priorities are stable execution in mature businesses and faster development of AR and AI optics; no quantified full-year financial guidance was stated.

• The first LCOS AR-HUD mass-production project is scheduled for Q3 installation in the E9, with exclusive supply; new automotive project nominations and customer expansion are expected to support product value growth.

• AR waveguide manufacturing, customer certification and yield improvement are progressing; product promotion and volume ramp are identified as potential drivers of future growth.

• AI optics remains in development and capacity-preparation phases, with optical interconnect and data-center storage targeted as longer-term growth areas.