During the first half of 2026, the company achieved operating revenue of 2.877 billion yuan, representing a 40.60% year-on-year increase. On August 18, Rockchip Electronics released its semi-annual report for 2026, showing that both its current-period revenue and net profit experienced substantial year-on-year growth. The profit growth rate notably outpaced revenue growth, indicating an optimized profit structure and steadily improving quality in core business operations.

According to the financial report, the company recorded operating revenue of 2.877 billion yuan in the first half of 2026, up 40.60% year-on-year, while net profit attributable to shareholders of the listed company reached 859 million yuan, a 61.73% increase year-on-year. This demonstrates significant release of profit-side growth elasticity, setting a new record for the company's performance during the same period. As a core A-share AIoT chip target, this round of performance growth vividly reflects how the accelerated commercialization of endpoint AI is driving revenue and profit gains for chip design firms.

Examining the profit structure, this period's growth is strongly supported by core business operations, with solid earnings quality. Data shows that the company's non-GAAP net profit reached 839 million yuan in the first half, up 62.77% year-on-year, a growth rate slightly higher than that of net profit attributable to shareholders. This indicates that profit growth is primarily driven by core main businesses such as chip R&D and sales, with minimal disturbance from non-recurring gains and losses. Profitability indicators improved in tandem, with the weighted average return on equity rising to 18.34%, an increase of 4.51 percentage points from the same period last year, reflecting enhanced asset profitability. Basic earnings per share reached 2.04 yuan, up 60.63% year-on-year, clearly demonstrating earnings accretion and improved shareholder returns.

Overall, while the company expanded its revenue scale, profit efficiency improved concurrently, showcasing the initial results of business structure optimization. The high growth in Rockchip's current performance is primarily driven by the dual engines of the upward cycle in the endpoint AI industry and the iteration of the company's product portfolio. In the first half of 2026, AI applications continued to expand from cloud computing deployment to terminal and edge devices. Technological iterations such as multimodal interaction and AI agents are driving intelligent upgrades across industrial, automotive, robotics, and smart home terminal equipment. The market demand for high-performance, cost-effective, low-power endpoint AI chips continues to rise, placing the AIoT chip industry in an overall upward prosperity cycle.

Operating under a fabless chip design model, Rockchip focuses on front-end R&D and market expansion, continuously iterating its chip product matrix to precisely align with downstream scenario upgrade needs, leading to a steady expansion of order volumes. Product portfolio iteration and the volume ramp-up of high-end products are key factors driving the improvement in gross margin and profitability. During the reporting period, the company persistently implemented a dual-track product strategy of main chips plus AI co-processors, establishing differentiated product competitiveness. Among these, mid-to-high-end computing SoCs such as the RK3588 and RK3576 continued to ship in scale, serving as the primary revenue drivers. The RK182X series co-processors, designed for endpoint large language model inference, achieved mass production, supporting local deployment of 3B to 7B parameter models across emerging scenarios like robotics, automotive terminals, and industrial vision.

Additionally, the newly launched mid-range RK3572 processor and the RK3538 chip targeting streaming media scenarios were successfully adopted by core customers, completing the product layout across high, mid, and low tiers. This effectively optimized the overall product mix, lifting comprehensive profitability levels. Financial data shows that R&D expenses in the first half reached 370 million yuan, up 32.62% year-on-year, maintaining a consistently high proportion of R&D investment. On the technical front, the company continues to iterate its self-developed NPU, ISP, audio/video codec, and other core IP blocks, refining a full-compute-gradient chip matrix while optimizing the RKNN3 endpoint AI development toolchain. This adaptation to mainstream open-source endpoint large models lowers the development and deployment barrier for downstream customers.

Through years of technical accumulation, the company has built an integrated business system combining chips, algorithms, and industry solutions, with continuously improving technical adaptability and ecosystem completeness to meet multi-industry intelligent transformation needs. The simultaneous ramp-up of multiple downstream application scenarios provides sustained support for performance growth. In the automotive sector, the company's smart cockpit and automotive audio chips have achieved scale installation in vehicles, with vehicle-mounted AI computing solutions based on co-processors continuously being deployed. Projects with multiple leading automakers and Tier 1 suppliers are steadily advancing. In the robotics sector, the company's chips cover the entire workflow of visual perception, path planning, and intelligent decision-making, with multiple categories of commercial, industrial, and embodied intelligent robot products entering mass production. Combined with steadily increasing penetration in traditional fields such as industrial manufacturing, smart office, and smart home, the company's downstream demand structure has become more diversified, effectively spreading the risk of cyclical fluctuations in any single industry.

Facing a first-half environment of tight upstream semiconductor supply chains and volatile raw material prices, the company smoothed operational pressures through strategic inventory stocking and solution optimization. During the period, upstream substrates, PCBs, passive components, and memory materials remained in short supply with rising prices, creating cost pressure along the downstream industry chain. In response, the company optimized chip memory adaptation solutions on one hand to help downstream customers reduce overall costs, and on the other hand carried out strategic stocking. Period-end inventory book value stood at 1.518 billion yuan, primarily consisting of mid-to-high-end new products, ensuring stable order delivery. On the operational front, cash flow remained robust, with net operating cash flow of 800 million yuan in the first half, up 12.99% year-on-year, indicating good receivables collection quality and providing stable cash flow assurance for ongoing R&D and market expansion.

From an industry fundamentals perspective, China's integrated circuit industry continues its steady growth trajectory, with endpoint AI computing deployment emerging as the primary industry growth theme. In the first half of 2026, domestic integrated circuit output continued to rise, while the global semiconductor market maintained high growth rates, with AI-driven structural opportunities in chips becoming increasingly prominent. As terminal intelligent upgrades continue to deepen, the application scenarios and deployment scale of endpoint AI still have room for expansion, providing sustained industry dividends for AIoT chip design companies.

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