Yuanjie Semiconductor Technology Co.,Ltd. (ASX: 688498) has released a preliminary earnings forecast for the first half of 2026, projecting a substantial increase in profitability.
The company expects to report a net profit attributable to shareholders of the parent company in the range of 600 million yuan to 650 million yuan for the period, representing a year-on-year surge of between 1,196.91% and 1,304.98%.
Additionally, the forecast for net profit after deducting non-recurring gains and losses is anticipated to be between 500 million yuan and 550 million yuan, marking an increase of 1,001.87% to 1,112.06% compared to the same period last year.
Key Drivers of Performance
The significant profit growth is primarily attributed to a sharp rise in the company's revenue during the reporting period, driven largely by expansion in its data center business.
As the data center segment contributes a larger proportion of the company's total revenue, the overall gross profit margin has improved.
The substantial increase in revenue scale has also led to a relative decrease in the proportion of period expenses.
Impact of Investment Activities
The company also noted that it has indirectly participated in equity investments through a private fund.
Valuation increases in companies held by this private fund have resulted in fair value changes for the fund's investments.
This, in turn, has generated a certain amount of investment income for the company, which is classified primarily as non-recurring gains and losses.
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