INNOSCIENCE (02577) has announced its interim results for the six months ended June 30, 2026, reporting a 50.6% year-on-year increase in sales revenue to RMB 834 million. The company's gross profit climbed 156.5% to RMB 97.08 million, with gross margin improving steadily to 11.6%. Net loss narrowed by 27.9% year-on-year to RMB 309 million, reflecting continued operational improvements across the business.
The company attributed the gross margin enhancement primarily to a higher proportion of high-margin products in its sales mix and cost reductions driven by production scale efficiencies. During the reporting period, the group achieved a pivotal operating cash flow positive milestone, underscoring significant advancements in both industrialization scale and profitability. A total of 547 million units were shipped during the period, bringing cumulative shipments to over 2.5 billion units, cementing the company's leadership position in the gallium nitride (GaN) sector.
The group's product portfolio has undergone a strategic shift, moving from a consumer electronics-dominated revenue base toward high-value markets including AI data centers, industrial and energy storage, and new energy vehicles. Revenue from these advanced application sectors reached RMB 532 million during the period, representing a 70% increase year-on-year, outpacing the growth rate of the consumer market.
Beyond mere revenue expansion, the most notable development in the first half of 2026 lies in the continuous optimization of the group's product and application structure. Having previously leveraged consumer electronics to achieve large-scale commercialization of GaN technology, the company has established a competitive edge in manufacturing scale, cost control, customer coverage, and supply chain capabilities. It is now systematically replicating these strengths across higher-value markets such as industrial and energy storage, AI data centers, and new energy vehicles.
The industrial and energy storage segment has already emerged as a significant contributor to revenue growth, while AI data centers and new energy vehicles are rapidly transitioning from product validation to volume adoption. Humanoid robotics, meanwhile, offer additional long-term growth potential. At the same time, the consumer electronics segment continues to provide a stable revenue base and cash flow support. As a result, the company is forging a new business structure where consumer electronics supplies the scale foundation, industrial and energy storage contribute current incremental growth, AI data centers and automotive applications open up high-value opportunities, and robotics provide long-term expansion prospects.
As the revenue contribution from high-value applications continues to rise, the company's future growth is expected to manifest not only in expanded revenue scale but also in increased unit value per chip, longer customer lifecycles, higher technological barriers, and improved profitability. The company is progressively transforming from a supplier known for scaled GaN applications in consumer electronics into a comprehensive power semiconductor platform covering strategic markets such as AI computing power, automotive, industrial energy, and robotics, thereby further unlocking its long-term value potential.