MeiG Smart Technology Co., Ltd. released its unaudited 2026 first-quarter report for the three months to 31 March, highlighting solid earnings resilience despite softer top-line growth and a significant boost to liquidity following its March Hong Kong listing.

Revenue and Profitability • Operating revenue fell 6.97% year on year to RMB 927.59 million, reflecting softer sales in the period. • Net profit attributable to shareholders edged up 0.76% to RMB 46.65 million, while profit after excluding non-recurring items rose 5.95% to RMB 47.48 million, indicating tighter cost control. • Basic and diluted EPS were steady at RMB 0.18. • Weighted average ROE slipped 0.21 percentage points to 2.70%.

Cash Flow and Balance Sheet • Operating cash outflow widened to RMB 191.76 million (Q1 2025: –RMB 66.89 million) due to higher cash payments for inventory and services. • Net cash from financing activities surged to RMB 1.24 billion, driven by RMB 996.85 million in proceeds from the company’s 40.25 million H-share issuance on 10 March. • As a result, period-end cash and cash equivalents jumped to RMB 1.31 billion, up more than threefold from year-end 2025. • Total assets expanded 48.59% to RMB 4.41 billion; shareholders’ equity climbed 60.13% to RMB 2.73 billion. • Inventories increased 45.35% to RMB 1.31 billion, attributed to strategic stocking of memory chips, while short-term borrowings rose 67.25% to RMB 645.57 million.

Cost Structure and Expenses • Operating costs decreased 10.19% to RMB 765.25 million, offsetting the revenue slide. • Administrative expenses expanded 41.78% to RMB 20.65 million, linked to higher intermediary service fees. • Finance costs more than tripled to RMB 3.44 million, mainly on foreign-exchange losses. • Asset impairment charges widened to –RMB 9.99 million amid provisions for raw-material value declines.

Capital and Shareholder Structure • Post-listing, registered share capital increased to 302.01 million shares from 261.76 million. • Wang Ping remains the largest shareholder with a 33.91% stake; HKSCC Nominees holds 13.33%, reflecting overseas investors’ participation following the H-share debut.

Outlook Indicators While stronger equity capital has fortified the balance sheet, the sharp decline in operating cash flow and rising inventory levels underscore the need for careful working-capital management. The company’s expanded cash position provides flexibility for strategic initiatives as it navigates softer revenue momentum and heightened cost pressures.