Wingtech's H1 Revenue Plunges 94% YoY, Net Profit Turns to a Loss of 400 Million Yuan; Focus Shifts to Semiconductors After Business Divestiture | Financial Report Insights

Wingtech Technology showed significant adjustments in its performance for the first half of 2026. The company achieved operating revenue of 1.514 billion yuan, a year-on-year decrease of 94.02%; net profit attributable to shareholders recorded a loss of 406 million yuan, compared to a profit of 474 million yuan in the same period last year. The substantial changes in revenue and profit were mainly attributed to the divestiture of the product integration business and the exclusion of certain overseas businesses from the consolidation scope. Consequently, the company's business structure has shifted further from a diversified model to focusing on its core semiconductor business.

From an operational perspective, the semiconductor business has become Wingtech's core operation. In the first half of the year, the company's semiconductor business generated revenue of 1.486 billion yuan, with a gross profit margin of 24.38%. Meanwhile, the automotive sector remains the largest downstream application, accounting for 38.9% of semiconductor revenue. Against the backdrop of continued growth in the global semiconductor market, the company's current operational focus has shifted towards domestic production line introduction, capacity ramp-up, and customer certification.

Business Focus: Semiconductors Become the Core Main Business

In the first half of 2026, Wingtech's operating revenue was 1.514 billion yuan, compared to 25.341 billion yuan in the same period last year; operating costs were 1.125 billion yuan, compared to 21.856 billion yuan in the same period last year. The significant change in revenue scale was primarily due to the product integration business being divested and no longer included in the consolidated scope.

Expenses contracted synchronously. Selling expenses in the first half amounted to 55.4755 million yuan, a year-on-year decrease of 87.94%; administrative expenses were 255 million yuan, a year-on-year decrease of 69.84%; R&D expenses were 178 million yuan, a year-on-year decrease of 85.14%. Financial expenses stood at 319 million yuan, a year-on-year decrease of 8.51%.

Regarding profits, the company's operating profit for the first half was a loss of 419 million yuan, net profit was a loss of 418 million yuan, and net profit attributable to shareholders was a loss of 406 million yuan. After deducting non-recurring gains and losses, basic earnings per share were -0.35 yuan. Net cash flow from operating activities was -154 million yuan, compared to 4.261 billion yuan in the same period last year.

Semiconductor Business: Automotive Demand Remains a Key Support

Currently, Wingtech's semiconductor business mainly covers products such as transistors, MOSFETs, and analog and logic ICs. In the first half of the year, semiconductor business revenue was 1.486 billion yuan, with a gross profit margin of 24.38%; among these, transistors accounted for approximately 52.92% of semiconductor revenue, MOSFETs for 38.47%, and analog and logic ICs for 5.90%.

From a downstream perspective, the automotive sector remains the largest application market, accounting for 38.9%; the mass market and distribution channels accounted for 32.3%, while computer equipment and consumer electronics accounted for 12.7% and 11.2%, respectively. The company stated that over 90% of its semiconductor products meet automotive-grade standards, and related products have passed AEC-Q100 and AEC-Q101 automotive reliability testing certifications.

At the industry level, demand remains resilient. Citing WSTS data, the company noted that global semiconductor market revenue reached $702 billion in the first half of 2026, a year-on-year increase of 102%. Demand continues to be released in fields such as AI computing power, high-performance computing, automotive electrification and intelligence, and new energy storage.

Balance Sheet: Cash Levels Improved

As of the end of June 2026, Wingtech's total assets were 40.791 billion yuan, a decrease of 2.74% from the end of the previous year; net assets attributable to shareholders were 24.415 billion yuan, a decrease of 1.94% from the end of the previous year. The company's monetary funds amounted to 2.674 billion yuan, an increase of 54.21% from the end of the previous year; the balance of cash and cash equivalents was 4.109 billion yuan.

Regarding debt, convertible bonds remain an important component of the company's capital structure. As of the end of the reporting period, the amount of Wingtech's convertible bonds not yet converted into shares was 8.06 billion yuan, accounting for 93.72% of the total issuance, with a book balance of 8.348 billion yuan at the end of the period. Cumulative conversions in the first half resulted in 29.2228 million shares. The conversion price was downwardly revised twice during the reporting period, adjusted from 43.60 yuan/share to 32.66 yuan/share and then to 18.36 yuan/share.

Overall, the core change in Wingtech's semi-annual report is not merely a fluctuation in industry sentiment, but a redivision of its business landscape. Currently, downstream demands such as automotive and AI computing power continue to provide a relatively clear market space for the semiconductor business.