Preface

Context: In a rare weekend development on July 18, five companies listed on China’s ChiNext board issued preliminary profit forecasts for the first half of 2026. This cluster of announcements came after a sharp one‑day decline in the ChiNext index on July 17. Purpose: This article summarizes each company’s guidance, explains the drivers behind the projected results, and situates the news within broader sector trends. The goal is to provide a clear, neutral overview so readers can understand why these firms—active in AI compute, edge AI chips, new energy materials, aluminum alloy products, and AI operating systems—are reporting strong results despite recent market volatility.

Lazy bag

Five ChiNext companies—Tingfu Communication, Xingchen Technology, Dangsheng Technology, Lizhong Group, and ThunderSoft—issued H1 2026 profit previews on a Saturday. Highlights: rising demand for AI and data‑center components, booming edge AI adoption, strong demand for lithium battery materials, overseas capacity ramp‑ups in aluminum wheels, and the expansion of AIOS platforms. Notably, stock 301536 (Xingchen Technology) forecasts nearly sixfold net profit growth.

Main Body

The evening of July 18 saw an unusual sequence of profit‑forecast announcements from five ChiNext (创业板) companies that operate in several high‑growth technology and materials sectors. The companies—Tingfu Communication (证券代码：300394), Xingchen Technology (301536), Dangsheng Technology (300073), Lizhong Group (300428), and ThunderSoft (中科创达, 300496)—each released preliminary results covering the first half of 2026. Their reported expectations indicate substantial year‑over‑year profit increases driven by structural demand and operational developments across their respective markets.

Tingfu Communication reported an expected attributable net profit of RMB 1.124 billion to RMB 1.304 billion for H1 2026, a 25%–45% increase compared with the prior year, and adjusted net profit (扣非) of RMB 1.089 billion to RMB 1.284 billion, up roughly 25%–48%. The company attributes growth to accelerated global AI development and ongoing data‑center construction, which have boosted demand for high‑speed optical devices. Despite intermittent material shortages that affected some production lines and forex losses that raised finance costs, Tingfu’s vertically integrated product platform, high reuse of core technologies, and automation investments supported margin expansion. The company positions itself as an integrated optical interconnect solutions and advanced photonics packaging provider—supplying optical components to module manufacturers, with applications spanning telecom, data centers, fiber connectivity, and LIDAR for ADAS.

Xingchen Technology (301536) stands out with the largest forecast increase. The company expects attributable net profit of RMB 820 million to RMB 900 million for H1 2026, implying year‑over‑year growth of roughly 584%–650%; adjusted net profit is expected at RMB 700 million to RMB 780 million, up about 632%–716%. Revenue is projected at RMB 2.62 billion to RMB 2.72 billion, an increase of approximately 87%–94%. As a global leader in vision AI SoC design for edge devices, Xingchen attributes its surge to two main factors: first, a broad explosion in demand for edge AI applications—spanning service robots, embodied intelligence, smart home agents, in‑vehicle edge computing, and LIDAR—leading to rapid product adoption and favorable product mix changes; second, a resilient, well‑developed supply‑chain and capacity setup that has enabled the company to fulfill increasing orders and scale shipments despite industry‑wide material constraints. This combination of market tailwinds and production stability explains the dramatic profitability improvement.

Dangsheng Technology, a leading global producer of lithium‑ion battery cathode materials, forecasts H1 2026 attributable net profit of RMB 480 million to RMB 530 million, an increase of about 54%–70%; adjusted net profit is expected to rise 71%–91% to RMB 430 million–RMB 480 million. The company points to strong volume growth across power, energy‑storage and consumer markets. High‑nickel cathode variants (high‑Ni and ultra‑high‑Ni) have scaled in high‑end EV platforms, while phosphate‑based products (LiFePO4 variants) have captured large utility‑scale storage and AIDC projects, boosting both shipment volume and margins. Continued R&D into next‑generation materials—solid‑state, lithium‑rich manganese, and sodium‑ion cathodes—also supports long‑term growth prospects.

Lizhong Group anticipates H1 2026 attributable net profit of RMB 540 million to RMB 585 million, up roughly 35%–46%, with adjusted net profit rising 40%–53%. The company specializes in aluminum‑based functional intermediate alloys, recycled casting alloys, and aluminum alloy wheels. Key drivers include expanded and optimized global capacity (notably a Mexico wheel plant with annual capacity of 3.6 million wheels now fully commissioned), favorable aluminum price differentials for export margins, rising sales of higher‑value forged wheels, and growth in new‑materials applications. The Mexico facility benefits from USMCA preferences, lowering effective export tariffs to the U.S. and improving cost competitiveness—helping sustain margin improvements as utilization rates climb.

ThunderSoft (中科创达) projects H1 2026 attributable net profit of RMB 238 million to RMB 246 million—roughly a 50%–55% increase—with adjusted net profit growth of about 60%–70%. The company develops AI and operating‑system technologies; its AIOS strategy and the launch of AIOS2.1 in April (marketed as an AI‑native automotive OS) underscore the firm’s focus on embedding AI across terminals, vehicles, and robotics. ThunderSoft cites global expansion and deepening AIOS adoption across multiple scenarios—smart cars, intelligent hardware, and robotics—as primary reasons for revenue growth, which it expects to exceed 30% year‑over‑year for H1.

Market observers noted the timing: the cluster of profit previews arrived immediately after a steep single‑day sell‑off in the ChiNext index (down about 7.15% on July 17). The concentrated disclosure across multiple high‑growth sectors—AI compute and optics, edge AI chips, new energy battery materials, advanced aluminum alloys, and AI operating systems—served as a clear stabilization signal from companies operating in structurally strong markets. While short‑term market sentiment had been negative, the companies’ underlying operational momentum and longer‑term demand drivers remained intact.

Across the five firms, common themes emerge. First, secular demand for AI computing (both data‑center optics and edge AI silicon) is lifting revenue and enabling improved product mixes. Second, supply‑chain resilience and capacity ramp‑ups have allowed market leaders to capture rapid demand growth despite industry constraints. Third, materials and component suppliers tied to electrification and lightweighting—such as cathode producers and aluminum part makers—are benefiting from structural electrification and global trade dynamics. Finally, firms that integrate software and platform strategies (AIOS and AI as OS) are monetizing the increasing role of intelligent software across hardware endpoints.

For investors and industry watchers, these profit previews underscore that, even amid episodic market volatility, companies operating at the intersection of AI, electrification, and advanced materials are seeing measurable economic upside. Readers should note that these are preliminary forecasts; final audited results may differ when companies publish full interim reports. Nonetheless, the announcements provide a timely snapshot of how demand, capacity, and strategic positioning are translating into near‑term financial results for leaders across several high‑growth sectors.

Key Insights Table