SMIC

Today, multiple listed companies released their 2026 half-year reports. Fenghua Advanced Technology announced first-half revenue of 3.5 billion yuan, up 26.28% year-on-year, with net profit attributable to shareholders of 290 million yuan, up 74.01% year-on-year. Second-quarter net profit was 202 million yuan, up 127% quarter-on-quarter. SMIC reported first-half net profit of 4.467 billion yuan, up 94.2% year-on-year, mainly due to increased wafer sales, higher average selling prices, and changes in product mix. Tianqi Lithium reported first-half net profit of 4.242 billion yuan, up 4,925.46% year-on-year. Shannon Semiconductor reported first-half net profit of 3.642 billion yuan, up 2,207.2% year-on-year. In addition, CICC's share swap merger with Dongxing Securities and Cinda Securities was approved by the Shanghai Stock Exchange, and WuXi AppTec's sale of WuXi XDC equity assets is expected to affect 2026 pre-tax profit by approximately 3.143 billion yuan.

SMIC released its 2026 semi-annual report on the evening of August 27, achieving operating revenue of 38.635 billion yuan, up 19.4% year on year; net profit attributable to shareholders of the listed company was 4.467 billion yuan, up 94.2% year on year. Among this, second-quarter net profit was 3.106 billion yuan, surging more than 228% year on year. The performance growth was mainly due to increased wafer sales volume, higher average selling prices, and changes in product mix. In the secondary market, SMIC's share price has fluctuated downward since hitting an intraday high for the year of 176.34 yuan per share on July 10. As of the close on August 27, it reported 126.33 yuan per share, a pullback of about 28% from the year's high, with a total market value of 692.8 billion yuan, and a cumulative gain of 2.85% so far this year.

Wanxun Automation said during an institutional survey on August 25 that its semiconductor business is making simultaneous progress in both domestic and overseas markets, with its product portfolio covering the entire process flow of wafer manufacturing, CP testing, and packaging and testing. At present, pressure sensors and transmitters, as well as vacuum gauges, have secured some orders in domestic and overseas markets, and are used in semiconductor process equipment such as etching and deposition, test fixtures, and supporting scenarios including specialty gases and facility services. Gas detectors and alarms have been successfully introduced to leading domestic wafer manufacturers such as SMIC, as well as global industrial gas leaders like Air Liquide. The company is steadily advancing product validation for pressure sensors and transmitters, mass flow controllers and flowmeters, gas detectors and alarms, and gas analyzers with multiple domestic and overseas customers. In the first half of 2026, revenue from semiconductors and other emerging fields reached 14.0766 million yuan, still in the early stages and accounting for a relatively low proportion of the company's overall revenue, with no material impact on revenue.

As of August 19, 88 companies on the Shanghai Stock Exchange's STAR Market had disclosed their 2026 semi-annual reports, with combined operating revenue of 204.3 billion yuan and net profit of 18.9 billion yuan, up 32% and 154% year on year respectively. Among them, 71 companies were profitable, 51 posted profit growth, and 11 turned losses into gains. The 12 STAR 50 index constituents that have disclosed semi-annual reports recorded combined operating revenue of 117.4 billion yuan and net profit of 9.2 billion yuan, up 25% and 216% year on year, contributing nearly 60% of the board's disclosed revenue and nearly half of its net profit. The domestic computing power ecosystem was the clearest main theme in the first half. SMIC's second-quarter sales revenue reached 3.006 billion US dollars, a record quarterly high, while Hua Hong Semiconductor posted sales revenue of 717.5 million US dollars in the same period, also a record high. Design-side companies such as Cambricon and Hygon Information delivered substantial earnings growth. Innovative drugs and high-end equipment also stood out. BeiGene's first-half net profit attributable to the parent company rose 627.1% year on year, and it raised its full-year total revenue guidance to between 6.6 billion and 6.8 billion US dollars. AVIC UAS saw operating revenue rise 272.48% year on year. At the same time, interim dividends among STAR Market companies increased notably. Since the start of 2026, 86 new share buyback plans have been disclosed, with a combined maximum amount of 11.448 billion yuan, and 29 new shareholding increase plans have been disclosed, with a combined maximum amount of 1.005 billion yuan.

The People's Bank of China announced it will conduct a 1 trillion yuan outright reverse repurchase operation on August 14, with a term of six months. Meanwhile, as of the Hong Kong stock market close on August 13, CXMT's market value reached 3.54 trillion yuan, surpassing Tencent Holdings' 3.44 trillion yuan. US memory chip stocks surged, with SanDisk up more than 13 percent, and Western Digital and SK Hynix up more than 7 percent. DeepSeek announced API price adjustments using peak and off-peak pricing, with off-peak prices set at half the peak rate, effective August 17. SMIC reported second-quarter revenue of 3.006 billion US dollars, up 36.1 percent year on year, and net profit attributable to shareholders of 479 million US dollars, up 261.7 percent year on year.

SMIC and Hua Hong Semiconductor both posted record second-quarter revenue, as AI-driven semiconductor demand continued to strengthen. SMIC's second-quarter revenue exceeded 3 billion US dollars, with net profit surging nearly fourfold, and the company expects third-quarter revenue to grow 2 to 4 percent quarter on quarter. Hua Hong Semiconductor also reported record second-quarter revenue, with net profit up 386 percent year on year, and third-quarter revenue guidance reaching as high as 780 million US dollars. Ping An Securities expects the global wafer fabrication equipment market to reach 143.9 billion US dollars in 2026, with advanced process nodes, DRAM, and NAND capacity expansion as the main growth drivers.

On the evening of August 13, multiple listed companies on the Shanghai and Shenzhen stock exchanges released important announcements. Unitree Technology's online investors abandoned subscription for 8,734 shares, which were fully underwritten by the sponsor. Honghe Technology terminated its investment in a project to produce 72 million meters of high-performance electronic-grade fiberglass cloth annually, while also disclosing that first-half net profit grew 334.32% year on year. Longcheer Technology plans to acquire 80% equity in Anruike for 1.12 billion yuan. Bohai Chemical plans to acquire 51% to 80% of shares in Gerui New Materials to enter the modified plastics sector. Joyson Electronics' controlling subsidiary plans to introduce a total capital increase of 1.5 billion yuan from Xingyin Investment and Zhongyou Investment. SMIC reported second-quarter sales revenue of 3 billion US dollars, up 20% quarter on quarter. Hygon Information Technology posted first-half net profit of 1.798 billion yuan, up 49.69% year on year. China Mobile reported first-half net profit of 78.934 billion yuan, down 6.3% year on year, and plans to distribute 25.1 yuan per 10 shares. G-bits Network Technology saw first-half net profit rise 69.31% year on year and plans to distribute 100 yuan per 10 shares. Xiechuang Data Technology's preliminary results showed first-half net profit of 1.863 billion yuan, up 331.11% year on year. Gao Neng Environment and its subsidiary jointly secured a 500 million yuan solid waste treatment project in Vietnam. Jifeng Auto Parts received a nomination for a passenger car seat assembly project, with an estimated total life-cycle value of 2.12 billion yuan.

G-bits disclosed that in the first half of 2026 it achieved operating revenue of 3.727 billion yuan, up 48.01% year on year, and net profit attributable to the parent of 1.092 billion yuan, up 69.31% year on year, and plans to distribute a cash dividend of 100 yuan, tax included, for every 10 shares. On the same day, Avary Holding's first-half AI server PCB revenue approached 1 billion yuan, and high-speed optical module PCB revenue exceeded 600 million yuan. Jifeng Auto Parts received a nomination for a passenger car seat assembly project, with an estimated total life-cycle value of 2.12 billion yuan. SMIC's second-quarter overall sales revenue reached 3 billion US dollars, up 20% quarter on quarter. In addition, Grace Fabric Technology's first-half net profit rose 334.32% year on year. Dalian Thermal Power's first-half net profit was 50.135 million yuan, turning from a loss to a profit year on year. BGE and its subsidiary jointly won a 500 million yuan solid waste treatment project in Vietnam.

SMIC and Hua Hong Semiconductor released their second quarter 2026 financial results after market close on August 13, with both wafer foundry leaders posting sharp increases in sales revenue and profit. SMIC's quarterly sales revenue exceeded 3 billion US dollars, up 36.1 percent year on year, while net profit attributable to shareholders reached 479 million US dollars, surging 262 percent from a year earlier. Hua Hong Semiconductor's sales revenue hit a record high of 717.5 million US dollars, up 26.8 percent year on year, and profit attributable to owners of the parent rose 385.9 percent to 38.6 million US dollars. Capacity utilization at both companies continued to climb, with SMIC reaching 93.7 percent and Hua Hong Semiconductor running at full capacity of 102.8 percent. Looking ahead to the third quarter, SMIC expects revenue to grow 2 to 4 percent quarter on quarter, with gross margin guidance of 26 to 28 percent. Hua Hong Semiconductor expects sales revenue of approximately 770 million to 780 million US dollars, with gross margin of about 16 to 18 percent.

A number of A-share companies have released earnings, buybacks, contracts, mergers and acquisitions, and other major matters. Jianyuan Trust's net profit for the first half of the year rose 2559.08 percent year on year. G-bits plans to distribute 100 yuan per 10 shares. SMIC's second-quarter sales revenue was 3 billion US dollars, up 20 percent quarter on quarter. China Mobile's profit attributable to shareholders in the first half was 78.9 billion yuan, down 6.3 percent year on year. Jifeng Auto Parts has been awarded a passenger car seat assembly project, with an estimated total life-cycle value of 2.12 billion yuan. Longcheer Technology plans to acquire 80 percent of Anruike for 1.12 billion yuan, entering the data center infrastructure sector.

China has begun mass producing domestically developed immersion deep-ultraviolet lithography machines, a person familiar with the matter said. Shanghai Aishengna Electronic Technology Group, a state-owned company established in August 2023 with registered capital of 7 billion yuan, is leading the effort after incorporating teams from lithography startups Yuliangsheng and Shanghai Micro Electronics Equipment. The machines are expected to be delivered this year to leading Chinese chipmakers including SMIC, Hua Hong Semiconductor, and ChangXin Memory Technologies, with plans to produce about five units this year and roughly 20 in 2027. While the tool requires further testing and remains far from matching ASML's competing models, successful deployment would give Chinese chipmakers an alternative source if Western governments further restrict exports or servicing of foreign lithography tools.

The 2026 second-quarter reports of public funds show that well-known fund managers including Zhang Kun, Liu Yanchun, and Zhu Shaoxing collectively reduced their positions in core consumer assets such as baijiu during the second quarter, shifting their allocation focus toward the tech growth sector. In the top ten holdings of the E Fund Blue Chip Select managed by Zhang Kun, SMIC and Dongshan Precision were included for the first time. The concentration of holdings dropped from 90.5% at the end of the first quarter to 50.9%, and the overall position fell from 93% to 75%. The number of shares held in Wuliangye and Shanxi Xinghuacun Fenjiu declined by 70.68% and 70.91% respectively. The top ten holdings of the Invesco Great Wall Dingyi Mixed Fund managed by Liu Yanchun were completely replaced, with new additions including Konfoong Materials International and Zhongji Innolight. From the appointment of an additional manager on May 9 to June 30, the net value rose by 26.51%. The top ten holdings of the Fullgoal Tianhui Selected Growth Fund managed by Zhu Shaoxing underwent significant changes, with Zhongji Innolight and Zelgen Biopharmaceuticals entering for the first time. Kweichow Moutai dropped out of the top ten after being a major holding for 25 consecutive quarters, while the position in Sinocera was substantially reduced by 69.11%.