Centec Networks H1 2026 Revenue RMB671 Million, Up 32.04%; Net Loss Narrows
Centec Networks reported H1 2026 revenue of RMB671 million, up 32.04% year on year, with net loss attributable to shareholders narrowing to RMB17.57 million. R&D expenses rose 9.29% to RMB261.48 million, representing 38.99% of revenue. Operating cash flow turned negative at RMB327.25 million, down 335.8% due to higher inventory. The company's shares have gained about 160.54% since the start of 2026.
Centec Networks released its 2026 semi-annual report on August 26. For the first half of 2026, the company achieved operating revenue of RMB671 million, up 32.04% year on year. Net profit attributable to shareholders of the listed company was negative RMB17.57 million, narrowing its loss from the same period of 2025. Net profit after deducting non-recurring gains and losses was negative RMB36.22 million, also narrowing. The company attributed the revenue growth to the introduction of high-end chip products, accelerating the commercial deployment of high-end chips, while iterative products gradually entered the market, leading to faster revenue growth.
In terms of profitability, total profit, net profit attributable to shareholders, and net profit after deductions were negative RMB17.57 million, negative RMB17.57 million, and negative RMB36.22 million respectively, narrowing losses by RMB6.12 million, RMB6.12 million, and RMB26.59 million compared with the same period in 2025. Net cash flow from operating activities was negative RMB327.25 million, down 335.8% year on year, mainly due to higher inventory levels based on market trends, increasing cash payments for purchases of goods and services.
On R&D, the company maintained high-intensity investment, incurring R&D expenses of RMB261.48 million in the reporting period, up 9.29% from the same period in 2025, representing 38.99% of operating revenue. As of June 30, 2026, the company had accumulated undistributed losses of RMB299.45 million. The company said it has not yet achieved profitability and has accumulated losses mainly because it continues to increase R&D investment and expand its R&D team.
The company's main business is the research, design, and sale of Ethernet switching chips and supporting products, covering switching capacities from 100Gbps to 25.6Tbps and port rates from 100M to 800G. Its high-end flagship chip supports a maximum port rate of 800G and has entered the application stage at customers, with performance in switching capacity and port rate reaching the level of international competitors. The company operates under a Fabless model and has been developing Ethernet switching chips independently since its establishment in 2005. In the secondary market, the company's share price has risen approximately 160.54% since the beginning of 2026, from about RMB141 at the start of the year to RMB369.16 at the close on August 26.