Xin Yuan Micro’s revenue in the first half of the year increased by more than 20%, but net profit declined as the semiconductor equipment investment period continues.

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On August 25, Xinyuan Micro disclosed its 2026 semi-annual report.

During the reporting period, the company achieved operating income of 897 million yuan, up 26.47% year-on-year; net profit attributable to shareholders of the listed company was 8.0622 million yuan, down 49.37% year-on-year; net profit after deducting non-recurring gains and losses was a loss of 45.1364 million yuan, compared to a loss of 49.5302 million yuan in the same period last year.

From the data, Xinyuan Micro maintained revenue growth in the first half of the year, but the profit side remained under pressure. Among them, the net profit excluding non-recurring items is still in a loss state, showing that the profitability of the company's main business has not been fully released. In recent years, Xinyuan Micro has continued to advance its product line expansion, increasing investment in new business directions such as front-end cleaning and advanced packaging, with some lag between R&D and market investment and income conversion.

Xinyuan Micro was founded in 2002, mainly engaged in the R&D, production, and sales of semiconductor-specific equipment. Its core products include photoresist coating and developing equipment for lithography processes, single-wafer wet processing equipment, etc. At present, the company's business covers four major areas: front-end coating and developing, front-end cleaning, back-end advanced packaging, and small-size compound semiconductor equipment.

Among these, coating and developing equipment remains one of the company's core businesses. Such equipment is mainly used in wafer manufacturing lithography stages, handling processes such as photoresist coating, developing, and curing, and works in coordination with lithography machines.

Due to front-end coating and developing equipment being long dominated by overseas manufacturers, there is significant room for domestic substitution. Xinyuan Micro has now launched products covering multiple process types, including offline, I-line, KrF, and ArF immersion.

However, the semiconductor equipment industry is characterized by long R&D and customer verification cycles. For Xinyuan Micro, new products must undergo a lengthy process from R&D, verification, to mass delivery. The company previously mentioned in investor communications that high-end front-end chemical cleaning equipment is currently gaining a foothold and gradually scaling up, while back-end advanced packaging equipment is also continually expanding in the market.

From a business layout perspective, Xinyuan Micro is reducing reliance on a single category of equipment. On one hand, the company continues to consolidate its advantage in coating and developing equipment; on the other hand, it is accelerating the layout of front-end cleaning and advanced packaging equipment.

With the development of fields such as AI chips and high-performance computing, demand for advanced packaging has increased, and technologies such as Chiplet and HBM are also driving growth in related equipment needs. Equipment for temporary bonding and debonding, laid out by Xinyuan Micro, targets application scenarios such as 2.5D and 3D packaging.

At the same time, the company’s business expansion has brought phased cost pressures. Semiconductor equipment companies need to continuously invest in R&D to improve product performance, while also shouldering customer verification, supply chain construction, and market expansion expenses. When revenue scale expands but new businesses have not yet contributed significantly to profits, profitability may be affected.

It is noteworthy that Xinyuan Micro’s shareholding structure changed in 2025, with Northern Huachuang obtaining control of the company. Both belong to the semiconductor equipment sector, but their product layouts differ somewhat: Xinyuan Micro mainly focuses on coating, developing, and cleaning equipment, while Northern Huachuang covers etching, thin film deposition, and other areas. The market is watching for future synergistic effects between the two, in terms of R&D, supply chain, and customer resources.

For Xinyuan Micro, it is still in the stage of business expansion and capability building. The revenue growth in the first half indicates that demand for certain equipment is being released, but profit recovery still depends on the speed of new product scaling, product structure optimization, and the release of scale effects. As domestic semiconductor production and advanced packaging demand continue to advance, the company’s subsequent growth potential will still depend on the commercialization progress of its new businesses.

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