Shanghai Fudan Microelectronics Group Co., Ltd. (HKG: 01385) has announced its financial results for the first half of the 2026 fiscal year, revealing a substantial year-on-year increase in profitability. The company recorded total operating revenue of approximately RMB 2.225 billion, marking a 21.03% rise compared to the same period last year.

Net profit attributable to shareholders of the parent company reached roughly RMB 849 million, representing an impressive surge of 338.58% from the prior-year period. Furthermore, the company's net profit excluding non-recurring gains and losses attributable to the parent company was approximately RMB 412 million, reflecting a 125.88% increase. Basic earnings per share stood at RMB 1.03 for the reporting period.

During the first half, a recovery in industry conditions and increased demand from downstream customers positively impacted the company's performance. Revenue and gross profit across all product lines in its integrated circuit design segment grew, with gross profit increasing by approximately RMB 224 million compared to the corresponding period last year. Additionally, the company recognized fair value gains on shares acquired through strategic placement, which boosted net profit by around RMB 420 million. The absence of new significant impairment provisions this period, coupled with a higher base of inventory write-down losses in the prior year, contributed to a reduction in inventory write-down losses of approximately RMB 128 million year-on-year.

The company has maintained its focus on technological innovation and product iteration. New offerings, including FPGA series products, security and identification series products, and automotive-grade microcontrollers (MCUs), along with supporting solutions, have been launched and are contributing to revenue. Robust demand for non-volatile memory, coupled with both volume and price increases, has driven overall revenue growth. Meanwhile, an improved product mix has further enhanced overall operational efficiency.

For the reporting period, net cash generated from operating activities amounted to approximately RMB 770 million, an increase of about 315.09% year-on-year. This significant rise was primarily attributed to increased cash receipts from sales of goods, leading to higher operating cash inflows.