Shenzhen Longli Technology Co Ltd Class A

Longli Technology released its 2026 interim report on August 28. The company relied on growth in intelligent driving terminals and Mini-LED backlight display business to offset weak consumer electronics demand and rising raw material costs, resulting in higher revenue but lower profit for the reporting period. During the period, the company achieved operating revenue of 794 million yuan, up 11.86 percent year on year. Net profit attributable to the parent company was 23.6825 million yuan, down 46.53 percent year on year. Net profit after deducting non-recurring items was 18.8847 million yuan, down 50.39 percent year on year. Net cash flow from operating activities was 159 million yuan, up 100.85 percent year on year, mainly due to increased customer payments. In terms of business structure, backlight display modules are the core revenue source, generating sales revenue of 763 million yuan in the reporting period, accounting for more than 96 percent of total revenue and up 13.26 percent year on year. However, the gross margin was 14.61 percent, down 1.96 percentage points from the same period last year. The weakening profitability was mainly constrained by dual cost pressures. Rising memory chip prices pushed up production costs for consumer electronics terminals, while prices of raw materials such as PCBs and driver ICs required for automotive display products also rose, leading to a decline in the gross margin of the intelligent driving terminal business. In addition, selling expenses increased 60.87 percent year on year, and administrative expenses surged 46.01 percent due to increased depreciation after the medium and large size Mini-LED base was transferred to fixed assets and higher share-based payment expenses, further eroding current period profit. Looking ahead, as AI technology penetrates consumer electronics and the trend toward automotive intelligence deepens, demand for automotive displays upgrading to larger sizes, multi-screen configurations, and Mini-LED technology is expected to continue to be released. The company is advancing the industrialization of Micro-LED and LIPO new packaging technologies. However, investors should be alert to downstream demand uncertainty caused by macroeconomic fluctuations and further pressure on gross margins from persistently high raw material prices.

Longli Technology released its 2026 interim report, showing first-half net profit attributable to the parent of 23.68 million yuan, down 46.5% year on year. Operating revenue was 794 million yuan, up 11.9% year on year. Net profit attributable to the parent after deducting non-recurring items was 18.88 million yuan, down 50.4% year on year. Net operating cash flow was 159 million yuan, up 100.9% year on year. Earnings per share were 0.10 yuan. In the second quarter, operating revenue was 426 million yuan, up 15.5% year on year, while net profit attributable to the parent was 8.1 million yuan, down 40.8% year on year. The company said operations were affected by global macroeconomic fluctuations, changes in consumer electronics market demand, and rising raw material costs. Continued increases in memory chip prices pushed up production costs, and higher raw material prices for automotive display products also put pressure on gross margins. The company has adopted a strategy of ensuring delivery and stabilizing operations, while continuing to advance LIPO advanced packaging technology and Mini-LED technology upgrades, and deepening Micro-LED research and development.