China Micro Semicon(Shenzhen) Limited (688380) announced on August 16 that its revenue for the first half of 2026 reached 726 million yuan, a year-on-year increase of 44.01%. Net profit attributable to shareholders of the listed company was 172 million yuan, up 98.48% from the same period last year, while non-GAAP net profit rose 109.74% to 159 million yuan. The prior-year period's net profit stood at 86.4696 million yuan.
Operating cash flow for the first half reached 193 million yuan, growing 27.87% year-on-year, which aligns with the profit figures. The weighted average return on equity (ROE) improved to 5.26% from 2.85% in the same period last year, an increase of 2.41 percentage points. Basic earnings per share were 0.43 yuan, up 95.45% from 0.22 yuan in the prior year.
The company disclosed that it has completed the investment transaction in Zhuhai Boya Technology, acquiring a 21% stake for 166 million yuan, becoming its second-largest shareholder. This investment expands China Micro Semicon(Shenzhen) Limited's product portfolio from MCUs to NOR Flash memory chips, signaling a clear strategic intent.
Balance Sheet: Steady Expansion
As of the end of June 2026, the company's total assets were 3.791 billion yuan, up 3.03% from the end of the previous year. Net assets attributable to shareholders of the listed company were 3.228 billion yuan, a 1.60% increase from the end of the prior year.
The balance sheet remains generally stable, with net assets continuing to expand and no significant deterioration in the financial structure.
Strategic Investment: 166 Million Yuan Bet on NOR Flash, Stake in Zhuhai Boya
China Micro Semicon(Shenzhen) Limited completed the investment in Zhuhai Boya Technology for 166 million yuan, holding a 21.0016% stake and becoming its second-largest shareholder.
Founded in 2014, Zhuhai Boya focuses on the R&D and design of NOR Flash memory chips. It is a national high-tech enterprise and a national specialized "Little Giant" company. Its founder, Dr. DI LI, holds a bachelor's degree in physics from Peking University and a Ph.D. in electronic engineering from the University of Texas, and has worked at Micron Technology and Spansion, making him a seasoned expert in the flash memory field. The core team boasts over 10 years of experience in flash chip design and mass production. Among its 118 employees, 75 are R&D personnel, accounting for 63.56%, highlighting a strong R&D focus.
Technologically, Zhuhai Boya has simultaneously deployed both ETOX and SONOS NOR Flash process structures, with products covering a full capacity range from 512Kb to 2Gb, and process nodes spanning 65, 55, 50, and 40 nanometers. Its customers include Renesas, Tuya, and Linkage Micro.
However, on the financial front, Zhuhai Boya had been consistently loss-making. From 2023 to 2025, its revenue was 180 million yuan, 170 million yuan, and 197 million yuan, respectively, with gross margins gradually recovering from -14.24% to 12.39%, but it remained in a loss position. Operating cash flow was negative for three consecutive years, at -64.93 million yuan, -46.78 million yuan, and -30.97 million yuan, respectively, primarily relying on financing to sustain operations.
Nevertheless, signs of improvement have emerged. China Micro Semicon(Shenzhen) Limited stated that in the first half of 2026, driven by the recovery of the memory chip market and the injection of investment funds, Zhuhai Boya's financial situation improved significantly, with revenue surging and gross margins rising rapidly. It achieved revenue of 228 million yuan and a profit of over 57 million yuan.
For China Micro Semicon(Shenzhen) Limited, NOR Flash is widely used for storing boot code and firmware, and is highly synergistic with MCUs in application scenarios, often appearing on the same circuit board. By taking a stake in Zhuhai Boya, China Micro Semicon(Shenzhen) Limited can create synergies in storage-plus-control combined solutions, while also capitalizing on the benefits of the memory chip market recovery.
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