Nationz Q3 2026: revenue up 58.50% to RMB 1.52bn, net profit turns positive, Q3 adjusted profit RMB 22.27m — price increases and inventory build-up arrive together

Nationz (300077.SZ / 02701.HK) filed its third-quarter 2026 report on the evening of 26 October 2026 (announcement no. 2026-056). The number that matters is not the RMB 8.99 million of nine-month net profit but the single-quarter adjusted result: nine-month non-recurring-adjusted net profit is still a loss of RMB 1.30 million, yet the third quarter alone delivered RMB 22.27 million, effectively erasing the first-half shortfall within three months. In the same period the company converted cash into inventory and prepayments, pushing operating cash flow to -RMB 546.6 million.

Key figures: first positive adjusted quarter

Revenue: RMB 1,518.9 million for the nine months (+58.50% year on year); RMB 612.8 million in Q3 alone (+87.74%)
Net profit attributable to shareholders: RMB 8.99 million for the nine months versus a loss of RMB 73.74 million a year earlier; RMB 4.58 million in Q3
Adjusted net profit: -RMB 1.30 million for the nine months (98.52% smaller loss); +RMB 22.27 million in Q3 (+149.87%), the first positive quarter
Gross margin: 21.88% for the nine months versus 20.02% a year earlier; gross profit of RMB 332.3 million, up 73.2%, faster than revenue
Operating cash flow: -RMB 546.6 million, down 206.09%
Total assets RMB 4.96 billion (+38.94% since the start of the year); equity attributable to shareholders RMB 1.76 billion (+91.55%), mainly from H-share proceeds

Gross margin and gross profit are calculated from the reported revenue of RMB 1,518,910,677.17 and cost of sales of RMB 1,186,634,111.98; the prior-year margin uses the same method.

Where the growth came from: volumes and prices in both businesses

The company attributes revenue growth to higher sales volume and higher selling prices in both integrated circuits and anode materials, and the swing to profit to higher volumes and gross profit in the same two segments. Neither explanation relies on one-off gains.

Pricing on the IC side came in two steps. On 7 April 2026 the company raised prices on selected products by 15%–20%; on 11 August it issued another price-adjustment letter raising selected products by 10%–20% from 1 October. The third quarter therefore includes only the first round; the October increase has not yet reached the income statement. Nationz described the driver as structural pressure on MCU supply and demand, and said it is expanding supply backup.

Anode materials grew faster on volume. The interim report put first-half anode revenue, including graphitisation tolling, at RMB 454.8 million (+56%), while chip product revenue rose 38.1%. Industry data points the same way: InfoLink Consulting counted 180 million tonnes of global anode shipments in the first half of 2026, up more than 50%, with energy-storage-grade artificial graphite quoted at RMB 19,000–21,000 per tonne, about 11% above the start of the year.

Earnings quality: RMB 10.29 million of the RMB 8.99 million is non-recurring

Nine-month net profit of RMB 8.99 million came alongside RMB 10.29 million of non-recurring items, which is why the adjusted figure remains a loss of RMB 1.30 million. The components are government grants of RMB 8.23 million, fair-value and disposal gains on financial assets of RMB 3.58 million, and a debt-restructuring loss of RMB 1.29 million. On that basis, the reported nine-month profit came mainly from subsidies and investment income rather than operations.

The third quarter runs the other way. Non-recurring items were -RMB 17.69 million, including a RMB 24.02 million fair-value loss on the Siqi Capital holding, so adjusted profit of RMB 22.27 million exceeded reported net profit of RMB 4.58 million. The single-quarter operating improvement is real; investment mark-to-market simply suppressed part of the reported number.

Cash flow and balance sheet: cash converted into capacity and stock

The balance sheet, not the income statement, is where the quarter's behaviour shows. Nationz attributed the -RMB 546.6 million operating cash flow to higher procurement spending as it built inventory in line with demand and operating plans.

Inventory RMB 855 million, up 36.95% since the start of the year, described as stocking for higher IC and anode orders
Prepayments RMB 272 million, up 1,332.76%, mainly advance payments for stock
Accounts receivable RMB 654 million, up 90.36%, faster than revenue; credit impairment loss of RMB 8.61 million (up 101.50%)
Short-term borrowings RMB 946 million (+61.50%); long-term payables RMB 237 million (+96.85%); finance costs RMB 69.0 million
Construction in progress RMB 177 million (+112.11%), mainly phase one of the 100,000-tonne anode integration project in Hubei
R&D expense RMB 153 million, up 27.6%

Cash of RMB 839 million (+188.10%) came largely from H-share proceeds, with capital reserve rising to RMB 3.23 billion. Equity funding and bank borrowings were used at the same time to expand inventory, prepayments and anode capacity.

Industry context: mature-node tightness has not peaked

Lead times: DigiTimes reported in September 2026 that ST's high-performance industrial MCUs (STM32H/F) are quoted at 48–54 weeks, with mainstream power devices above 30 weeks
Peer pricing: Holtek raised list prices across its portfolio by 10%–20% from August 2026; Infineon, Texas Instruments, Microchip and Renesas have also adjusted selected products
Capacity: Sigmaintell expects global 8-inch foundry capacity to fall 6% in 2026 and another 2% in 2027, with average utilisation at major fabs around 91% in Q4 2026; TrendForce sees 8-inch utilisation near 90% across the top ten foundries in 2026
Anode: Dongxing Securities' June 2026 strategy note shows mainstream artificial graphite recovering from RMB 25,000 to RMB 29,000 per tonne, expected to trade at RMB 28,000–30,000 in the second half, with profitability driven by graphitisation self-sufficiency

HSY Perspective

The signal in this report is not the return to profit but the conversion of cash into capacity and stock, which shifts the constraint downstream from price to delivery. A first positive adjusted quarter of RMB 22.27 million is notable, yet the balance sheet explains the behaviour better: inventory up 36.95%, prepayments up more than thirteenfold, operating cash flow at -RMB 546.6 million and short-term borrowings up 61.50%. A supplier that turns money into materials and capacity during a pricing upcycle is paying for deliverability, not easing credit to chase revenue. Industry data corroborates it: 8-inch foundry capacity is expected to shrink 6% in 2026 with utilisation near 91% in the fourth quarter, and ST industrial MCU lead times already run 48–54 weeks.

That leads to a conclusion the revenue growth rate obscures. The second price increase, effective 1 October, is absent from this quarter, so Q4 revenue and margin still have room to rise; but if allocation keeps tightening, Q4 is more likely to bring longer lead times than proportionally higher volume. Anode materials were still loss-making in the first half and phase one of the 100,000-tonne integration project remains under construction, so if anode prices stay in the RMB 28,000–30,000 band, profit will continue to rest on the IC side.

The boundary of this judgment deserves stating. It holds if mature-node capacity stays tight through 2027 and AI power and optical-module demand persists. If capacity releases faster than expected, RMB 855 million of inventory and RMB 272 million of prepayments become writedowns and tied-up capital first, and prices would fall faster than allocation loosens. If foundry pricing rises again in 2027 as Taiwanese foundries have signalled, part numbers backed by supply backup and long-term agreements will secure allocation earlier, and lead-time stability will matter more in selection than the quoted price.

Sources: Nationz 2026 Third Quarter Report (announcement 2026-056, 26 October 2026, SZSE/CNINFO, mirrored on HKEX); Nationz price-adjustment letter (11 August 2026); DigiTimes (14 September 2026); Sigmaintell; TrendForce; InfoLink Consulting global anode material ranking, H1 2026; Dongxing Securities, Lithium Battery Industry 2026 Interim Strategy (23 June 2026).