SG Micro H1 2026 Results: Revenue Up 42.70%, Net Profit Doubles on Strong Analog IC Demand

SG Micro (03661) reported interim revenue of RMB 2.60 billion for the six months ended 30 June 2026, a 42.70% increase year-on-year, driven by broad-based growth across signal-chain and power-management products.

Net profit attributable to shareholders reached RMB 420.32 million, a 109.28% rise from the prior-year period, while total net profit advanced 117.76% to RMB 421.74 million. Basic earnings per share were RMB 0.68, more than double the prior-year figure of RMB 0.33.

Gross profit climbed 47.47% to RMB 1.35 billion, lifting gross margin 1.68 percentage points to 51.84%. Management cited an improved product mix, higher sales volumes in industrial and optical-module segments, and continued expansion into automotive-grade offerings.

By product line, power-management ICs contributed RMB 1.52 billion, up 35.45%; signal-chain ICs delivered RMB 1.04 billion, up 53.13%. Distribution channels accounted for 94.41% of revenue. Geographically, Mainland China generated 44.57% of sales, Hong Kong 49.09%, Taiwan 3.28% and other regions 3.06%.

Operating expenses totaled RMB 880.38 million. R&D spending rose 21.56% to RMB 616.94 million, representing 23.8% of revenue and underscoring the company’s emphasis on expanding its 7,200-product portfolio across 38 categories. Selling expenses increased 27.19% to RMB 167.37 million.

Operating cash flow strengthened 59.28% to RMB 381.86 million. Net cash from financing activities surged to RMB 3.99 billion, primarily reflecting HK$5.29 billion in gross proceeds from SG Micro’s Hong Kong Main Board listing on 26 June 2026. Cash and cash equivalents at period-end stood at RMB 4.58 billion versus RMB 1.18 billion at end-2025.

Total assets expanded 69.24% to RMB 11.77 billion, while net assets attributable to shareholders rose 84.61% to RMB 9.77 billion. The equity-to-asset ratio improved to 83.36% from 76.60% six months earlier.

SG Micro continues to prioritize technology development, with cumulative R&D outlays of RMB 617 million in H1 2026 and a pipeline focused on high-voltage BCD processes, ADC/DAC expansion, motor drivers and automotive-grade ICs.

No interim dividend was declared. The company reported no material contingent liabilities and noted that, subsequent to balance-sheet date, it issued an additional 8.10 million H shares via full exercise of the over-allotment option, raising HK$681.78 million in net proceeds.