Fibocom’s H1 2026 Net Profit Slides 72% Despite 1.9% Revenue Uptick

Fibocom Wireless Inc. reported first-half 2026 revenue of RMB 3.78 billion, edging up 1.92% year-on-year, yet profitability fell sharply under pressure from higher costs and weaker overseas demand.

Net profit attributable to shareholders dropped 71.63% to RMB 61.82 million, while total profit contracted 68.27% to RMB 72.80 million. Stripping out non-recurring items, net profit declined 80.66% to RMB 39.12 million. Basic earnings per share fell to RMB 0.07 from RMB 0.29 a year earlier; weighted average ROE narrowed to 0.99% from 5.92%.

Revenue mix shifted markedly. Domestic sales jumped 34.69% to RMB 1.85 billion on stronger automotive electronics and smart-home demand, offsetting a 17.31% slide in overseas turnover to RMB 1.93 billion. Module products remained dominant at 91.78% of group revenue, advancing 0.62% to RMB 3.47 billion, while solutions revenue grew 11.01% to RMB 238.50 million. Group gross margin slipped 1.29 percentage points to 15.13%, weighed by a lower-margin product mix and higher input prices.

Operating cash flow turned sharply negative at –RMB 1.70 billion, compared with –RMB 18.77 million a year earlier, as the company boosted inventory and supplier prepayments to secure components. Net cash declined by RMB 137.03 million despite RMB 1.18 billion of investing inflows, mainly from maturing time deposits and wealth-management products. Short-term borrowings rose to RMB 975.49 million, and long-term borrowings quadrupled to RMB 400.00 million, lifting the asset-liability ratio to 42.79% from 35.32% at end-2025.

Fibocom maintained robust R&D spending, allocating RMB 286 million—7.58% of revenue—to expand its portfolio in 5G, AI modules and robotics. The group emphasised tighter collaboration with ecosystem partners, accelerated product launches in edge AI and intelligent vehicle solutions, and reinforced global market coverage.

No interim dividend was declared. In May, shareholders approved a final dividend of RMB 2.34 per 10 shares for FY 2025, totalling RMB 209.82 million.

Post-period, Fibocom announced plans to acquire a 37.16% stake in Shenzhen Hangsheng Electronics for RMB 1.43 billion and, via an acting-in-concert agreement, secure majority control. The transaction remains subject to shareholder approval.