NEXCHIP (02249) has announced its interim results for 2026, reporting revenue of approximately RMB 5.766 billion, a year-on-year increase of 12.4%. However, profit attributable to owners of the company for the period stood at roughly RMB 245 million, reflecting a decrease of 26.12% compared to the prior year. Basic earnings per share came in at RMB 0.13.

According to the announcement, the decline in profit is primarily attributed to several factors. Firstly, intensifying market competition has led to fluctuations in product prices. Due to production cycle effects, the positive impact of price increases on certain products has yet to be fully reflected in the current period's results, compounded by higher depreciation of property, plant, and equipment, which has resulted in a short-term dip in gross margin. Secondly, financing costs increased year-on-year, largely due to financial subsidies received in the corresponding period last year. Thirdly, share-based payment expenses have risen compared to the same period of the previous year.

Under International Financial Reporting Standards, the company projects its revenue for the third quarter of 2026 to range between RMB 3.2 billion and RMB 3.3 billion. Additionally, the gross margin for the third quarter of 2026 is expected to fall within the range of 25% to 27%.