Shenzhen Goodix Technology (603160) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 was RMB 969.1 million, down 8.95% year-over-year due to weaker end-customer demand.

• Net profit attributable to shareholders fell 40.01% year-over-year to RMB 117.2 million, mainly due to lower revenue and the absence of last year's DCT sale.

• Operating cash flow turned negative at -RMB 43.6 million, compared to RMB 183.5 million in Q1 2025, impacted by higher promotional expenses and increased inventory.

Financial highlights

• Total assets at March 31, 2026 were RMB 10.81 billion, down 2.29% from year-end 2025.

• Shareholders’ equity was RMB 9.38 billion, nearly flat from year-end.

• Gross margin for Q1 2026 was approximately 40.9%, slightly lower than the prior year.

• Basic EPS was RMB 0.25, down 41.86% year-over-year.

• Weighted average ROE was 1.25%, down from 2.21% in Q1 2025.

Outlook and guidance

• Management attributes the revenue and profit decline to reduced terminal demand and the absence of one-off gains from the prior year.