Shenzhen SDMC Technology Co., Ltd. (SDMC) reported a robust first-half performance for the six months ended 30 June 2026, underpinned by strong demand for its smart-home video devices and improved supply-chain efficiency.
Revenue climbed 36.3% year on year to RMB2.10 billion, driven mainly by a 40.5% jump in digital video device sales to RMB1.73 billion, which accounted for 82.7% of total turnover. Gross profit rose 63.4% to RMB443.16 million, lifting the gross margin by 3.5 percentage points to 21.1%. Profit for the period expanded 75.9% to RMB181.42 million, pushing the net margin up to 8.7% from 6.7% a year earlier.
Asia overtook other regions with revenue of RMB806.29 million (38.5% of group total), almost tripling from the prior-year period. Europe generated RMB738.07 million (35.2%), up 36.4%, while the Americas registered RMB400.79 million (19.1%), reflecting a year-on-year decline amid portfolio realignment. Overseas markets remained the primary growth engine, contributing 92.9% of group sales.
By product line, streaming media terminals delivered RMB1.60 billion, or 76.5% of revenue. Network communication device sales fell 38.3% to RMB143.60 million, reflecting product transition phases, while parts and accessories revenue more than tripled to RMB205.91 million on opportunistic raw-material resales.
Operating expenses rose as SDMC bolstered sales and R&D capabilities: selling and distribution costs increased 22.1% to RMB74.02 million, administrative expenses grew 21.0% to RMB64.04 million, and R&D outlays edged up 4.9% to RMB82.66 million. Foreign-exchange movements contributed to a RMB25.84 million charge under other expenses, contrasting with a gain in the prior year.
SDMC’s balance sheet strengthened following its May 2026 Hong Kong IPO, which raised net proceeds of HK$574.2 million. Cash and cash equivalents rose 82.9% since year-end to RMB499.92 million, though inventories swelled to RMB2.09 billion amid higher raw-material costs and order buildup, extending inventory days to 162 from 102. Interest-bearing borrowings rose to RMB732.32 million, lifting the gearing ratio to 37.7% from 18.3%.
Management reiterated commitment to the “1 + 2 + X” strategy, with continued investment in the Cedar home AI agent, edge-computing hardware, and expansion of global sales channels. No interim dividend was declared.