Shanghai Fudan Microelectronics Posts 9M 2026 Net Profit Surge of 221%, Margins Expand on Strong Product Mix

Bulletin Express
Yesterday

Shanghai Fudan Microelectronics (Shanghai Fudan) reported robust unaudited results for the nine months ended 30 September 2026, highlighted by double-digit revenue growth and a trebling of earnings, driven by broad-based demand recovery, richer product mix and valuation gains on financial assets.

Financial highlights (Jan–Sep 2026)

• Revenue climbed 17.84% year on year (YoY) to RMB 3.56 billion, led by higher shipments across all major chip categories.

• Net profit attributable to shareholders jumped 221.08% YoY to RMB 1.06 billion. Excluding non-recurring items—chiefly fair-value movements on listed equity holdings—core net profit rose 153.83% YoY to RMB 0.77 billion.

• Basic and diluted earnings per share (EPS) increased to RMB 1.29, up 222.50% from the prior-year period.

• Operating cash flow almost doubled, up 89.80% YoY to RMB 0.80 billion, reflecting stronger cash collections from customers.

• Gross margin edged up 0.87 percentage point to 59.34%.

• R&D expenditure grew 11.70% to RMB 0.89 billion, representing 24.91% of revenue (-1.37 pp YoY).

Product-line performance (Jan–Sep 2026)

Security & identification ICs generated RMB 0.73 billion; non-volatile memory chips RMB 1.09 billion; smart-meter chips RMB 0.43 billion; FPGA & other products RMB 1.20 billion; and IC testing services RMB 0.12 billion. All segments registered YoY revenue growth and margin improvement.

Third-quarter snapshot (Jul–Sep 2026)

• Quarterly revenue advanced 12.90% YoY to RMB 1.34 billion.

• Attributable net profit rose 54.63% YoY to RMB 0.21 billion; core profit surged 196.02% YoY to RMB 0.36 billion.

• Gross margin improved 2.20 percentage points YoY to 63.26%.

The company attributed the stronger third-quarter profitability to accelerating demand recovery, ongoing product upgrades and tighter inventory management.

Balance sheet strength

As at 30 September 2026, total assets reached RMB 10.04 billion, up 9.08% from end-2025. Shareholders’ equity expanded 17.95% to RMB 7.24 billion, lifting the equity ratio to 72.0%. Cash and cash equivalents stood at RMB 1.62 billion, versus RMB 1.30 billion nine months earlier, while total liabilities declined 10.78% to RMB 2.19 billion on lower borrowings.

Shareholder structure

HKSCC Nominees Limited remained the largest holder with a 34.51% stake, followed by state-owned entities Shanghai Fuxin Fangao IC Technology (12.96%) and Shanghai Fudan Fukong Technology Enterprise Holdings (11.35%).

Non-recurring items

Net non-recurring gains of RMB 0.29 billion for the nine-month period were largely driven by fair-value increases in strategic equity investments and government grants, partially offset by mark-to-market losses recorded in the third quarter.

Outlook-related statements were not provided in the announcement.

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