MEIG Smart Technology Co., Ltd. reported unaudited interim results for the six months ended 30 June 2026, highlighting solid topline growth and a sharp profit increase driven by strong momentum in overseas markets.
Revenue rose 7.32% year-on-year to RMB 2.02 billion (USD ≈ 0.28 billion). Net profit attributable to shareholders jumped 25.85% to RMB 105.93 million, while profit after non-recurring items advanced 29.84% to RMB 106.91 million. Gross margin expanded to 18.21% from 13.36% a year earlier, reflecting successful price pass-throughs and a richer product mix.
International markets were the main growth engine: overseas revenue surged 87.30% to RMB 997.30 million, lifting the overseas share of total sales to 49.26% versus 28.22% in the prior-year period. Domestic revenue fell 24.14% to RMB 1.03 billion, impacted by lower procurement from a single intelligent-vehicle customer.
By segment, wireless communication modules and solutions generated RMB 1.95 billion, up 5.89% and accounting for 96.16% of group sales. Other business, largely component trading, contributed RMB 77.68 million, up 62.17%.
Operating cash flow was negative RMB 264.58 million, reflecting extended credit terms to telecom operators and strategic inventory builds—inventory increased to RMB 1.53 billion from RMB 0.90 billion at year-end 2025. Total assets swelled 62.87% to RMB 4.83 billion, aided by the March 2026 Hong Kong listing that raised net proceeds of roughly RMB 973 million and by the acquisition of Huixin Property.
The balance sheet remained stable: the gearing ratio edged down to 42.28% from 42.62%, and cash and cash equivalents climbed to RMB 986.16 million versus RMB 309.61 million at end-2025. No interim dividend was proposed.
Management reaffirmed its focus on high-computing-power modules, smart modules and 5G wireless broadband products, citing a “definitive” industry trend toward on-device AI and physical AI applications. The company also announced two capital projects—a RMB 300 million AI R&D and advanced manufacturing base in Nantong and a RMB 285 million R&D office building in Shanghai—to support future growth.