NAURA Technology Q1 revenue increased 26% year-on-year; high R&D investment led to a slight 3.42% rise in net profit | Financial Report Highlights

```

Naura Technology Group delivered a revenue report exceeding 10 billion yuan in the first quarter of 2026. However, the strategic decision to significantly increase R&D investment led to net profit growth lagging clearly behind revenue growth, reflecting the balancing act local semiconductor equipment leaders face between expanding market share and sustained technological investment.

The company’s quarterly report disclosed on April 30 shows that in January to March 2026, it achieved a revenue of 10.323 billion yuan, up 25.80% year-on-year, with net profit attributable to shareholders at 1.635 billion yuan, up 3.42% year-on-year. Meanwhile, net cash flow from operating activities reached 748 million yuan, a substantial improvement from -1.729 billion yuan in the same period last year, up 143.27% year-on-year.

The key reason for net profit growth lagging far behind revenue growth is the surge in R&D spending. R&D expenses recognized in profit and loss for the quarter reached 1.402 billion yuan, an increase of 36.64% year-on-year, up by 376 million yuan from the same period last year. The company stated clearly in its quarterly report that it will continue to ramp up layout for R&D in high-end semiconductor equipment, a strategic direction which directly suppresses profit elasticity.

For the market, exceeding 10 billion in revenue confirms continued robust demand for domestic semiconductor equipment, but the roughly 22 percentage point gap between profit and revenue growth rates and the significant rise in R&D expenses as a share of revenue will be core points investors use to assess the quality of earnings and growth trajectory.

Revenue surpasses the 10 billion mark driven by increased market share of multiple devices

Revenue’s 25.80% year-on-year increase stems from multipoint breakthroughs in the field of integrated circuit equipment. The quarterly report disclosed, market share of etching, thin film deposition, heat treatment, wet cleaning, ion implantation, coating and developing, bonding, and other devices all steadily increased in the reporting period, and expanded process coverage drove sales growth.

From the cost structure perspective, operating costs for the quarter were 6.114 billion yuan, up about 30.7% from 4.676 billion yuan the previous year, with cost growth slightly outpacing revenue growth, putting some pressure on gross margin. At the same time, sales expenses grew sharply by about 42.7% to 421 million yuan, and administrative expenses surged over 63% to 773 million yuan year-on-year, reflecting the company’s comprehensive acceleration in operating investments during business expansion.

Increased R&D investment compresses profit margins

The jump in R&D expenses is the key variable for understanding the profit structure this quarter. R&D spending of 1.402 billion yuan for the quarter accounted for about 13.6% of revenue, rising from about 12.5% a year earlier, showing the company is channeling more resources from revenue growth into technology R&D.

Under this influence, despite revenue growth over 25% year-on-year, operating profit slightly declined to 1.795 billion yuan from 1.805 billion yuan the previous year. Total profit was 1.815 billion yuan, basically flat compared to 1.813 billion yuan a year earlier. The 3.42% net profit growth creates a significant scissors gap compared to revenue growth.

It’s notable that net profit excluding non-recurring items was 1.627 billion yuan, up 3.60% year-on-year, close to the growth rate of net profit attributable to shareholders, indicating relatively stable profit quality. The slowdown in profit growth is mainly due to active operating investment, not abnormal performance volatility.

Operating cash flow significantly improves

Cash flow improvement is another highlight of this quarterly report. Net inflow from operating activities was 748 million yuan, reversing last year’s net outflow of 1.729 billion yuan. The company attributes this to increased revenue leading to improved sales collections—funds received from selling products hit 10.853 billion yuan, up about 46% from 7.415 billion yuan a year earlier.

The balance sheet shows that by the end of March, the balance of monetary funds was 18.007 billion yuan, up slightly from the beginning of the year; ending cash and cash equivalents totaled 17.943 billion yuan. Total assets reached 91.057 billion yuan, up 1.40% from the start of the year; owner’s equity attributable to parent company was 39.294 billion yuan, up 4.16% from the start of the year.

In terms of asset structure, development expenditure at the end of the period was 7.448 billion yuan, up about 732 million yuan from 6.716 billion yuan at the start of the year; the ongoing accumulation of technology assets supports mid- to long-term competitiveness.

Risk Warning and DisclaimerThe market involves risks, and investments should be made cautiously. This article does not constitute personal investment advice and does not consider the specific investment objectives, financial situation, or needs of individual users. Users should assess whether any opinions, viewpoints, or conclusions in this article suit their particular situation. Investments made based on this article are solely at the user’s own risk. ```