Shares of BASICSEMI (09971) rallied more than 8% during intraday trading on the Hong Kong Stock Exchange, with the stock last up 4.71% at HK$42.20, on turnover of HK$28.23 million.

The price movement follows the company's release of its interim results for the six months ended June 30, 2026. Revenue climbed 15.5% year-over-year to RMB 121 million, up from RMB 104 million in the corresponding period of the previous fiscal year.

A key milestone was achieved as gross margin swung to positive territory, improving to 2.8% from a negative 28.8% in the same period last year—a substantial 31.6 percentage point enhancement. This transition marks a significant turning point for the company's profitability profile.

Industrial-grade modules emerged as the primary growth engine, with segment revenue skyrocketing 2825.1% year-over-year. Compared to automotive-grade products, industrial modules require fewer chips and packaging materials, naturally yielding superior gross margins at comparable sales volumes. This rapid expansion has directly contributed to the overall margin improvement.

During the reporting period, BASICSEMI's products were adopted by major domestic telecom operators for their AI data center applications, supporting localization of intelligent computing clusters and green, low-carbon operations. Additionally, the company's industrial silicon carbide power modules have accumulated orders exceeding 30,000 units in the electroplating power supply sector, while demand continues to grow in renewable energy applications such as photovoltaics and energy storage systems.