On August 25, Naura Technology Group Co.,Ltd. released its semi-annual report for 2026. During the first half of the year, the company sustained relatively fast revenue growth while its operating cash flow swung from negative to positive, indicating that as the domestic semiconductor equipment localization drive continues, the company's operational quality is also improving.

During the reporting period, the company achieved operating revenue of RMB 20.161 billion, up 24.90% year-on-year. Net profit attributable to shareholders of the listed company reached RMB 3.370 billion, up 5.05% year-on-year, while non-GAAP net profit came in at RMB 3.341 billion, up 5.02% year-on-year. Revenue maintained rapid growth, but profit growth clearly lagged behind revenue, leaving room for improvement in earnings elasticity.

The cash flow performance was particularly notable. In the first half of the year, net cash generated from operating activities stood at RMB 3.774 billion, a sharp reversal from the RMB -3.191 billion recorded in the same period last year. Meanwhile, as of the end of the period, the company's total assets reached RMB 93.922 billion, up 4.59% from the end of the previous year. Net assets attributable to the parent company totaled RMB 40.545 billion, up 7.47% from the end of the prior year, with the overall balance sheet position remaining stable.

Revenue Continues to Grow While Profit Growth Slows

In the first half of the year, Naura Technology Group Co.,Ltd. posted operating revenue of RMB 20.161 billion, up 24.90% year-on-year, with the core business maintaining relatively rapid growth. Demand in the semiconductor equipment sector continues to rise, and the advancement of capital expenditure at domestic wafer fabs is providing support for the company's business expansion.

As a domestic leader in semiconductor equipment, the company's product portfolio covers core equipment areas such as etching, thin-film deposition, oxidation/diffusion, and cleaning, with its product matrix steadily improving. As downstream customers expand capacity and equipment demand grows, the company's order intake and revenue scale are expected to expand further.

However, revenue growth has not fully translated to the profit side. In the first half of the year, net profit attributable to the parent company rose 5.05% year-on-year, clearly below the revenue growth rate. Basic earnings per share came in at RMB 4.6486, up 4.47% year-on-year, while the weighted average return on equity was 8.58%, down 1.23 percentage points year-on-year.

The relatively slower profit growth may be linked to the company's continued increased investment in R&D, talent, and production capacity. The semiconductor equipment industry undergoes rapid technological iteration, and investments during a phase of rapid expansion may have a certain impact on short-term profitability. As economies of scale gradually materialize, whether profit growth can realign with revenue growth deserves close attention.

Operating Cash Flow Turns Positive, Improving Earnings Quality

Compared with profit growth, the marked improvement in operating cash flow deserves more attention. In the first half of the year, net cash generated from operating activities reached RMB 3.774 billion, turning positive from the RMB -3.191 billion recorded in the same period last year.

Semiconductor equipment companies typically face long cycles for order delivery, customer acceptance, and payment collection, making operating cash flow susceptible to changes in working capital. This significant cash flow improvement indicates that the company's ability to recover funds from operating activities has strengthened, and the efficiency of converting revenue growth into cash flow is also improving.

The cash flow improvement also helps enhance the company's capital security, providing more ample funding support for subsequent R&D, capacity construction, and business expansion. As the company's business scale continues to expand, whether cash flow can sustain its improvement trend will become a key indicator for assessing earnings quality.