NSING TECH (02701) reported a sharp turnaround for the six months ended 30 June 2026, driven by surging demand for artificial-intelligence (AI) semiconductors and lithium-ion battery anode materials.

Revenue and Earnings • Group revenue climbed 43.40% year-on-year to RMB 906.08 million. • Sales of chip products advanced 38.10% to RMB 430.35 million, buoyed by heightened global AI and computing-power requirements. • Lithium-ion battery anode materials and graphitisation services grew 50.50% to RMB 437.69 million, supported by energy-storage demand and added capacity at Inner Mongolia Sinuo’s Suizhou plant. • Gross profit increased 35.10% to RMB 182.24 million; gross margin slipped slightly to 20.1% from 21.3% as raw-material and manufacturing costs rose. • Net profit reached RMB 3.66 million, compared with a RMB 37.55 million loss a year earlier, helped by higher sales and a RMB 13.45 million swing to other gains due to fair-value increases in financial assets.

Cost Structure and Investment • Cost of sales grew 45.60% to RMB 723.84 million, largely reflecting higher raw-material and manufacturing expenses. • R&D expenditure rose 14.30% to RMB 93.00 million; R&D intensity eased to 13.7% as revenue expanded. • Selling expenses rose 30.30% to RMB 27.73 million, while administrative costs fell 4.10% to RMB 46.72 million on tighter cost controls.

Cash Flow and Balance Sheet • Net cash used in operations totalled RMB 273.37 million, mainly due to increased trade and other receivables linked to higher sales and advance procurement. • Cash and cash equivalents surged to RMB 839.81 million (31 December 2025: RMB 197.53 million), bolstered by HK$1.03 billion (RMB 0.90 billion) raised from the March Hong Kong listing. • Borrowings rose to RMB 2.11 billion, yet the net-debt-to-equity ratio improved to 71.5% from 160.7% thanks to the enlarged equity base and stronger cash position. • Capital expenditures reached RMB 58.80 million; committed capex stood at RMB 170.53 million, chiefly for plant and equipment and equity investments.

Strategic Focus Management outlined a “3 + 1” framework: 1) Consolidate core MCU, security, Bluetooth and BMS chip lines through iterative upgrades and cost optimisation. 2) Deepen penetration in high-growth niches—AI infrastructure, robotics, industrial automation and smart energy—supported by continued SoC, MCU and heterogeneous-computing R&D. 3) Expand into edge-AI applications to capture emerging smart-terminal and industrial-intelligence demand. + Build enterprise-wide AI capabilities to lift sales efficiency and shorten product-development cycles.

No Interim Dividend The board proposed no interim dividend for the period.

Outlook Management expects AI adoption, electrification and energy-storage expansion to sustain demand for high-performance MCUs and artificial-graphite anodes, while emphasising operational excellence, cost control and technological innovation to drive long-term growth.