Lens Technology (LENS) reported a subdued first half, with net profit attributable to shareholders falling 49.52% year-on-year to RMB0.58 billion on revenue of RMB28.87 billion, down 12.42%.
Gross profit slipped only 1.39% to RMB4.24 billion, lifting the gross margin 1.64 percentage points to 14.70%, helped by a richer product mix and cost controls. Basic earnings per share dropped to RMB0.11 from RMB0.23.
The Board declared an interim cash dividend of RMB1.00 (tax inclusive) per 10 shares, totalling approximately RMB0.53 billion and equating to a 91.22% payout of first-half earnings. Payment is scheduled on or before 20 October 2026.
Segment performance showed sharp divergence: • Smartphones & computers revenue fell 17.67% to RMB22.38 billion, reflecting memory-chip price shocks and weaker end-demand. • Smart vehicles & cockpits rose 6.54% to RMB3.37 billion, with automotive glass and cockpit components ramping up. • Intelligent head-mounted displays & wearables gained 7.95% to RMB1.78 billion. • Other smart devices—including embodied-intelligence hardware—surged 47.11% to RMB0.53 billion.
Operating metrics weakened. Net cash from operations shrank 53.48% year-on-year to RMB2.01 billion, while capital expenditure reached RMB5.19 billion. Net current assets dropped to RMB1.72 billion from RMB5.75 billion at year-end 2025.
Foreign-exchange volatility was a key headwind: a RMB0.49 billion loss replaced the RMB0.17 billion gain booked a year earlier. R&D spending eased 9.37% to RMB1.49 billion as several projects reached milestone completion.
Strategic initiatives continued. The company finalised a RMB0.32 billion acquisition of 89.98% of Shenzhen Sublime Photonics in July and launched a new restricted A-share scheme covering 85.57 million shares.
Management noted sequential improvement: second-quarter revenue rose to RMB14.73 billion and net profit turned positive quarter-on-quarter at RMB0.73 billion, supported by higher shipments of high-value products and emerging AI-hardware lines.
Lens Technology reiterated its focus on next-generation materials—ultra-thin flexible glass, titanium alloys and 3D-printed parts—while expanding into AI-server hardware, advanced packaging (TGV glass substrates) and edge-side robotics to diversify future growth.