Amlogic (Shanghai) Co (688099) Q1 2026 earnings summary

Executive summary

• Revenue reached RMB 1.90 billion in Q1 2026, up 23.91% year-over-year and 10.07% sequentially, setting a new quarterly record.

• Net profit attributable to shareholders was RMB 173 million, down 7.95% year-over-year, mainly due to increased R&D expenses and exchange losses.

• TV SOC products saw both volume and price increases, with shipments up about 30% year-over-year, driving growth.

• Gross margin improved to 37.51%, up 1.28 percentage points from the prior year.

• New high-end TV SOC and innovative display chips advanced to commercialization and mass production stages.

Financial highlights

• Operating income: RMB 1.90 billion, up 23.91% year-over-year.

• Net profit attributable to shareholders: RMB 173 million, down 7.95% year-over-year.

• Net profit excluding non-recurring items: RMB 162 million, down 4.63% year-over-year.

• Basic and diluted EPS: RMB 0.41, down 8.89% year-over-year.

• Operating cash flow: -RMB 481 million, mainly due to increased raw material payments.

Outlook and guidance

• Confident in achieving year-over-year growth in revenue and profit for Q2 2026.

• Strategic inventory of memory chips expected to support stable supply and pricing amid ongoing shortages and price hikes.

• New AI and smart vision chips to launch in Q2, supporting long-term growth.

• Plans to adjust product pricing to maintain healthy gross margins.