SVG Optronics Co Ltd

SVG Tech Group announced on September 30 that the company and its wholly owned subsidiary Yancheng Weige plan to publicly list the entire equity interest in Changzhou Huarisheng Reflective Material Co., Ltd. on the Suzhou Property Rights Exchange, with an initial combined reserve price of 157 million yuan. Since the company's controlling shareholder Chen Linsen may participate in the bidding, the transaction may constitute a related-party transaction. Financial data show that Huarisheng posted a net loss of 23.4036 million yuan in 2025 and a net loss of 12.8069 million yuan in the first half of 2026. After the transaction is completed, Huarisheng and its subsidiaries will no longer be included in SVG Tech Group's consolidated financial statements.

SVG Tech Group released its 2026 interim report, with first-half net profit attributable to the parent of 49.76 million yuan, up 62.3% year on year. Operating revenue was 1.03 billion yuan, up 5.4% year on year. Net profit attributable to the parent after deducting non-recurring items was 41.82 million yuan, up 222.5% year on year. Net operating cash flow was 54.35 million yuan, down 19.6% year on year. Second-quarter operating revenue was 514 million yuan, down 2.8% year on year, and net profit attributable to the parent was 19.73 million yuan, up 48.1% year on year. The company entered the semiconductor inspection and measurement equipment industry by acquiring a controlling stake in Vip Semiconductor, and is actively deploying laser direct-write lithography machines in high-end mask manufacturing, advanced packaging and other fields.

SVG Tech Group disclosed its earnings forecast, expecting net profit attributable to the parent for the first half of 2026 to be between 48.5 million yuan and 63.05 million yuan, a year-on-year increase of 58.18% to 105.63%. Deducted non-recurring net profit is expected to be between 41.5 million yuan and 55.55 million yuan, a year-on-year increase of 220.05% to 328.41%. The profit growth is mainly due to the consolidation of Changzhou Weipu Semiconductor Equipment Co., Ltd., whose order volume continues to grow, with orders from leading domestic and international customers beginning to be accepted, driving rapid revenue growth and turning losses into profits. At the same time, profitability in the consumer electronics and automotive sectors has strengthened, but revenue from 3D optical printing materials has declined, and the loss of the reflective materials subsidiary Changzhou Huarisheng Reflective Materials Co., Ltd. has significantly widened year-on-year. In addition, affected by changes in government subsidies and non-operating income, non-recurring gains and losses have decreased significantly year-on-year, making the increase in deducted non-recurring net profit attributable to the parent even more pronounced.