FS.COM (03355) released its first interim results since listing on the Hong Kong Stock Exchange, highlighting double-digit top-line growth, sharply higher profitability and a strengthened balance sheet.
Revenue expanded 25.9% year on year to RMB1.76 billion, driven by fast-growing demand for data-center and AI-focused networking equipment. High-performance networking solutions—products supporting 100G and above—rose 45.4% to RMB725.09 million, lifting their share of revenue to 41.2%. General networking solutions delivered RMB851.21 million, up 15.8%, while other networking products contributed RMB185.48 million, a 12.1% increase.
Gross profit climbed 38.8% to RMB1.00 billion as gross margin widened 5.3 percentage points to 57.0%, supported by higher-value product mix, lower component costs and tariff refunds. Operating leverage further filtered through to the bottom line: profit attributable to shareholders jumped 65.1% to RMB451.11 million, pushing net margin to 25.6% from 19.5% a year earlier.
Operating cash flow reached RMB517.99 million. Together with HK$1.79 billion (approximately RMB1.59 billion) of net proceeds from the March IPO, cash and cash equivalents nearly doubled to RMB1.46 billion. Net current assets grew to RMB3.60 billion, while the gearing ratio flipped to negative 52.1% from 31.7% at end-2025, reflecting reduced borrowings and stronger liquidity. R&D investment increased 34.6% to RMB106.49 million as the engineering workforce approached 1,000 staff.
FS.COM advanced its vertical integration strategy by completing the RMB330.00 million acquisition of Shanghai Baud Data Communication on 23 July 2026, adding proprietary routing, switching and industrial-network manufacturing capabilities. Management expects the deal to reinforce full-stack hardware and software offerings for AI computing networks and strengthen domestic and overseas channel reach.
Inventory rose 20.4% to RMB560.29 million on strategic stocking of high-speed components, yet turnover days improved to 125.3 from 138.3. Trade receivables days lengthened modestly to 27.1. Capital expenditure totaled RMB29.57 million in the half, with a further RMB16.26 million committed.
No interim dividend was declared. FS.COM reiterated its focus on scaling R&D, manufacturing capacity, global supply-chain resilience and localised service networks to capture long-cycle AI infrastructure demand.