SUNMI Tech Delivers 25.8% Top-Line Growth but Swings to RMB 70 Million Interim Loss on FX and Listing Costs

Bulletin Express
Sep 24

Shanghai Sunmi Technology Co., Ltd. (SUNMI Tech-W) reported interim revenue of RMB 1.76 billion for the six months ended 30 June 2026, up 25.8% year on year, driven by sustained demand for its business Internet-of-Things (BIoT) hardware and platform services. Overseas markets remained the dominant growth engine, generating about RMB 1.44 billion, or more than 80% of total sales.

Gross profit advanced 26.4% to RMB 565.83 million, leaving gross margin essentially unchanged at 32.1%. Despite the stronger sales and steady profitability at the gross level, the company recorded a net loss of RMB 69.99 million versus a profit of RMB 15.93 million in the prior-year period. Management attributed the reversal primarily to RMB 83.50 million in foreign-exchange losses caused by U.S. dollar depreciation and RMB 49.85 million of one-off listing expenses linked to its Hong Kong IPO in April 2026.

Smart devices continued to underpin performance, contributing 99.2% of revenue. Within this category, smart mobile devices surged 56.1% to RMB 608.58 million, smart desktop devices rose 14.6% to RMB 478.86 million, and smart payment devices added 9.0% to RMB 486.93 million. Accessories and parts expanded 30.1% to RMB 173.04 million. Platform-as-a-Service and customisation fees were stable at RMB 14.60 million.

Regionally, Europe posted the largest contribution at RMB 584.12 million, up 54.8%. The Middle East & Africa more than doubled to RMB 244.43 million, while North America climbed 132.3% to RMB 179.17 million. Revenue from mainland China declined 14.1% to RMB 322.44 million as some domestic customers reduced orders.

Operating expenses increased across the board: distribution and selling costs rose 8.6% to RMB 195.45 million, administrative expenses doubled to RMB 107.79 million, and R&D outlays edged up 3.5% to RMB 216.21 million as SUNMI pressed ahead with its “IoT + AI + RWA” roadmap. Adjusted net loss (excluding share-based payments and listing fees) stood at RMB 11.85 million, compared with a RMB 50.55 million profit last year.

SUNMI’s liquidity position strengthened following the IPO. Cash and cash equivalents increased to RMB 1.99 billion from RMB 1.47 billion at year-end 2025, buoyed by HKD 922.0 million (approximately RMB 0.85 billion) in net listing proceeds. Net cash used in operations totalled RMB 796.69 million, reflecting proactive inventory build-up amid component shortages and rising memory prices. Capital expenditure reached RMB 74.30 million, mainly for land acquisition and production upgrades. The gearing ratio improved to 54.1% from 60.9%.

Looking ahead, management plans to escalate investment in AI-driven BIoT innovations, enhance global supply-chain resilience, and deepen penetration among multinational retailers, food-service chains, and small-to-medium enterprises. No interim dividend was declared.

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