China Resources Microelectronics Limited (China Resources Micro) (688396)

Individual Stock Analysis Report　|　Industry: Power Semiconductors and IDM-Based Integrated Semiconductors　|　Report Date: September 13, 2026　|　As of the September 11, 2026 close; September 12–13, 2026 were weekends, with no new A-share closing data available. Some technical indicators were calculated independently based on publicly available historical closing prices, while certain market and shareholder data may vary across platforms.

This report was automatically compiled by AI based on publicly available information and is for reference only. It does not constitute investment advice.

1. Executive Summary

China Resources Micro generated revenue of RMB 6.128 billion in the first half of 2026, up 17.44% year on year; net profit attributable to the parent was RMB 722.40 million, up 113.23%; net profit attributable to the parent excluding non-recurring items was RMB 414.28 million, up 51.48%; and net cash flow from operating activities was RMB 1.391 billion, up 95.13%. These figures indicate a significant improvement from 2025 in revenue, core profitability and cash flow. However, first-half net profit attributable to the parent exceeded net profit attributable to the parent excluding non-recurring items by approximately RMB 308 million, while first-quarter results included approximately RMB 185 million in gains from changes in the fair value of financial assets. Accordingly, the apparent surge in profit should not be regarded entirely as growth in core earnings capacity.

The company is centered on an IDM model and covers power-device design, wafer manufacturing, packaging and testing, mask manufacturing and product solutions. In 2025, revenue from products and solutions was RMB 6.028 billion, up 16.98%, while manufacturing and services revenue was RMB 4.793 billion, up 2.24%. Recent growth drivers include a recovery in semiconductor demand, capacity utilization approaching full load, product price adjustments, and volume growth in AI-server power supplies, automotive electronics, broad new-energy applications and silicon-carbide products. In the first half of 2026, silicon-carbide revenue more than doubled year on year, with automotive and energy-storage applications together accounting for approximately 85% of silicon-carbide business.

The company remains in a phase of production-line ramp-up and earnings recovery following high capital expenditure. Its gross margin for core operations fell to 26.51% in 2025, while the net margin attributable to the parent was approximately 5.98%. Depreciation on the 12-inch production line, utilization rates and product-price competition remain the main constraints on profitability. Institutional forecasts for 2026 net profit attributable to the parent range widely from RMB 970 million to RMB 1.595 billion. As of September 11, 2026, the share price was approximately RMB 55.99, below the MA5, MA10 and MA20. MACD was negative and fund flows were weak, indicating a weak consolidation phase following a pullback from elevated levels.

2. Company Overview

2.1 Basic Information

2.2 Core Businesses and Product Portfolio

• Power semiconductors: MOSFETs, IGBTs, SBDs, FRDs and other power diodes, power ICs, IPMs, power modules, as well as third-generation semiconductor products including SiC and GaN, applied in automotive electronics, photovoltaic inverters, energy storage, industrial controls, UPS systems, variable-frequency drives, charging piles, home appliances, power management, AI-server power supplies and communications equipment
• Intelligent sensors: photoelectric sensors, smoke sensors, MEMS sensors, inertial sensors, health-monitoring products and other intelligent sensing products
• Intelligent control and analog integrated circuits: MCUs, PMIC power-management chips, motor-driver chips, BMS-related chips, as well as signal-chain, BCD and other specialty-process chips
• Products and solutions: Revenue of RMB 6.028 billion in 2025, up 16.98%, with a gross margin of 22.17%; mainly comprising proprietary power devices, intelligent sensors, intelligent-control products and system solutions
• Manufacturing and services: Revenue of RMB 4.793 billion in 2025, up 2.24%, with a gross margin of 31.97%; including open-foundry wafer manufacturing, packaging and testing, mask manufacturing and related semiconductor manufacturing services

2.3 Position in the Industry Chain and Cost-Profit Structure

China Resources Micro occupies the “midstream IDM platform plus selected downstream product solutions” position in the power-semiconductor industry chain. It covers power-device design, wafer manufacturing, packaging and testing, mask manufacturing and sales of end products. It is neither a pure-play wafer foundry nor a Fabless company focused solely on chip design.

• Major inputs include silicon wafers, photoresist and other chemicals, specialty gases, targets and consumables required for wafer manufacturing; lead frames, molding compounds, bonding wires, substrates and other packaging materials required for packaging and testing; and equipment for lithography, etching, thin-film deposition, cleaning, testing and packaging.
• The company’s annual report states that wafer-manufacturing services mainly procure silicon wafers, chemicals and other raw materials, while packaging and testing services mainly procure lead frames, molding compounds and other materials. It uses a “procure-to-production” model and arranges safety inventory based on supply conditions, prices, delivery cycles and production plans.
• In 2025, direct material costs were RMB 2.939 billion, accounting for 36.96% of integrated-circuit business costs; direct labor costs were RMB 1.633 billion, accounting for 20.54%; and other manufacturing expenses were RMB 3.379 billion, accounting for 42.50%. In addition to prices of silicon wafers, chemicals and packaging materials, costs are significantly affected by depreciation, equipment utilization, labor and other manufacturing expenses.
• Silicon wafers, chemicals, specialty gases, packaging materials and certain equipment suppliers exhibit some degree of industry concentration, and certain high-specification materials and equipment have high technical barriers. The company does not have strong bargaining power over all upstream inputs and is closer to a price taker for certain key inputs. It can reduce supply risks through purchasing scale, long-term cooperation, qualified-supplier lists and centralized procurement.
• Purchases from the five largest suppliers in 2025 totaled RMB 1.537 billion, representing 16.52% of total annual purchases; purchases from related parties totaled RMB 697 million, representing 7.49% of total annual purchases. These concentration figures are based on the 2025 annual report. Suppliers were disclosed anonymously, so specific suppliers cannot be identified. Public data do not indicate severe dependence on any single supplier.
• Depreciation during the construction and ramp-up periods of the 12-inch production line, together with insufficient equipment utilization, could increase unit manufacturing costs and temporarily offset the benefits of material-procurement cost control.
• Downstream customers include domestic and overseas semiconductor design companies; manufacturers in automotive electronics, industrial controls, photovoltaic and energy storage, communications, consumer electronics, home appliances, power supplies, charging piles, UPS systems and variable-frequency drives; semiconductor distributors; certain large end customers; and system-solution customers.
• The manufacturing and services business is primarily direct-sales based, with customers generally placing orders through framework agreements and order plans. The products and solutions business uses both direct sales and distribution. In 2025, direct-sales revenue was RMB 6.729 billion, with a gross margin of 31.55%; distribution revenue was RMB 4.091 billion, with a gross margin of 18.21%. Distribution expands market coverage and improves shipment efficiency, but involves some concessions in end-price management and channel profits.
• Sales to the five largest customers in 2025 totaled RMB 1.590 billion, accounting for 14.69% of annual sales; the largest single customer accounted for 4.29%, and all five largest customers were non-related parties. The data are based on the 2025 annual report. Customers were anonymously disclosed as Customer A through Customer E, so their specific end-customer types and distribution across automotive, home appliances, communications and other industries cannot be identified.
• Overall customer concentration is relatively low, and public information does not indicate severe dependence on any single customer. Semiconductor customers have long qualification cycles and stringent product-quality requirements, giving manufacturing services relatively strong contractual characteristics. The products and solutions business faces end-customer price competition, concessions to distribution-channel profits and pricing pressure across different application markets.
• In 2025, products and solutions revenue was RMB 6.028 billion, up 16.98%, with a gross margin of 22.17%; manufacturing and services revenue was RMB 4.793 billion, up 2.24%, with a gross margin of 31.97%. Growth during the period was mainly driven by higher shipments of proprietary products rather than merely by expansion of wafer-foundry capacity.
• Downstream applications for products and solutions comprised approximately 44% broad new energy, 34% consumer electronics, 12% industrial equipment and 10% communications equipment. These data were compiled by Tonghuashun from the company’s annual-report data. The research notes did not locate the complete original company table, and the company’s formal annual-report segment disclosures should prevail.
• As of 2025, publicly compiled financial data indicated accounts-receivable days of approximately 53.71 and inventory days of approximately 96.79. The accounts-receivable-days data came from a third-party financial-data page, and should be recalculated using the 2025 annual report’s balance sheet and accounts-receivable notes. Inventory days were higher than accounts-receivable days, while wafer-manufacturing inventory volume increased 24.76% year on year in 2025. This indicates that inventory, work in progress and production-line stocking require greater attention as uses of working capital. Working-capital pressure comes more from inventory and depreciation of heavy assets than entirely from delayed customer payments.
• On the supplier side, purchases from the five largest suppliers accounted for 16.52% of total annual purchases in 2025, while related-party purchases accounted for 7.49%. On the customer side, sales to the five largest customers accounted for 14.69% of annual sales, and the largest single customer accounted for 4.29%. These customer and supplier concentration figures are based on 2025 data, with specific parties disclosed anonymously. Specific companies and end-use industries cannot be identified, so more detailed judgments on customer structure cannot be made.

The company is a midstream IDM platform that extends into downstream power devices and product solutions. Overall, it is a midstream manufacturing-and-products business rather than a typical upstream resource company or a downstream brand with high margins. Further margin improvement will mainly depend on volume growth in high-value-added products such as automotive electronics, photovoltaic and energy storage, industrial controls, AI-server power supplies and SiC/GaN; product-mix upgrades; and improvements in utilization and yield at the 6-inch, 8-inch and 12-inch production lines, together with depreciation dilution. Control of silicon-wafer, chemical, packaging-material, equipment-depreciation and manufacturing costs is also important.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

The first-half 2026 financial report is the semiannual report for the six months ended June 30, 2026, disclosed in August 2026. The financial statements were unaudited and use a consolidated reporting basis. Second-quarter 2026 data are estimates calculated by subtracting first-quarter data from semiannual data and were not separately disclosed or audited by the company. First-half 2026 net profit attributable to the parent excluding non-recurring items was RMB 414.28 million, up 51.48% YoY; 2025 net profit attributable to the parent excluding non-recurring items was RMB 471 million, down 26.81% YoY.

Revenue and profit improved significantly in the first half of 2026 compared with 2025. The growth rate of net profit attributable to the parent excluding non-recurring items exceeded revenue growth, indicating an improvement in core operating profitability. However, first-half net profit attributable to the parent exceeded net profit attributable to the parent excluding non-recurring items by approximately RMB 308 million, while first-quarter 2026 results included approximately RMB 185 million in gains from changes in the fair value of financial assets. The apparent surge in profit therefore cannot be regarded entirely as growth in core earnings capacity. Net cash flow from operating activities in the first half of 2026 was RMB 1.39121 billion, up 95.13% YoY; weighted-average ROE was 3.1055%, an increase of 1.6028 percentage points YoY; and R&D investment represented 8.57% of revenue, compared with 10.50% in the same period last year. As of June 30, 2026, total assets were RMB 31.199 billion, while net assets attributable to shareholders of the listed company were RMB 23.475 billion, up 1.99% and 2.15%, respectively, from the end of 2025.

3.2 Earnings Forecasts

As of September 11, 2026, Tonghuashun F10 data showed that seven institutions had issued forecasts for China Resources Micro’s 2026 results during the previous six months. The research notes explicitly listed detailed forecasts from five institutions—China Renaissance Securities, Huaxin Securities, Guosen Securities, Huayuan Securities and Huatai Securities—while details for two other institutions were not listed. These are institutional forecasts, not actual financial data disclosed by the company.

3.3 Valuation and Institutional Ratings

At the September 10, 2026 close, China Resources Micro’s share price was RMB 56.28, total market capitalization was approximately RMB 74.752 billion, trailing P/E was 71.59x, PB was 3.18x and dividend yield was approximately 0.19%. The historical P/E percentile was approximately 50.83%; the historical median P/E was approximately 71.24x; the historical 20th-percentile P/E was approximately 42.54x; and the historical 80th-percentile P/E was approximately 86.66x. Current trailing P/E was close to the historical median and near the historical valuation midpoint, rather than in the historically extreme valuation zone. Based on the RMB 56.28 closing price and institutional average EPS forecasts, forward P/E for 2026–2028 was approximately 63.2x, 47.7x and 38.0x, respectively. Institutional target prices differ by methodology: the average target price on Tonghuashun’s six-month rating page was RMB 81.02, while the Investing.com analyst-consensus average was RMB 63.82, with a high of RMB 81.30 and a low of RMB 45.00. Current valuation is not low and depends on sustained future profit growth. Because the 2025 profit base was low and the first half of 2026 included relatively significant non-recurring gains, trailing P/E may be affected by the low earnings base and changes in profit composition. Static P/E alone therefore has limitations as a valuation measure. Institutional earnings forecasts vary significantly, with the 2026 net-profit forecast range attributable to the parent at RMB 970 million–RMB 1.595 billion and the 2028 range at RMB 1.486–RMB 2.655 billion. Differences relate to the extent of industry recovery, the sustainability of product-price increases, the ramp-up of the Shenzhen Runpeng 12-inch production line, volume growth in AI-server power supplies and the sustainability of non-recurring gains.

4. Recent News and Announcements

4.1 2026 Semiannual Report: Significant Growth in Revenue and Profit

China Resources Micro disclosed its 2026 semiannual report on August 25, 2026. Revenue in the first half of 2026 was RMB 6.128 billion, up 17.44% YoY; net profit attributable to shareholders of the listed company was RMB 722.4 million, up 113.23% YoY; net profit attributable to shareholders of the listed company excluding non-recurring items was RMB 414.3 million, up 51.48% YoY; net cash flow from operating activities was RMB 1.391 billion, up 95.13% YoY; and basic EPS was RMB 0.5440, compared with RMB 0.2556 in the same period last year. The company stated that growth was mainly related to a recovery in semiconductor-market conditions, sufficient orders, overall capacity utilization approaching full load, and adjustments to product prices based on cost changes and market competition. These were officially disclosed unaudited semiannual-report figures, rather than an earnings preannouncement or brokerage forecast.

4.2 No Separate 2026 Semiannual Earnings Preannouncement or Earnings Flash Report

On August 7, 2026, an investor asked about the semiannual earnings preannouncement on the investor-interaction platform. The company replied that a semiannual earnings preannouncement is voluntary disclosure and directed investors to the semiannual report disclosed on August 25, 2026. As of September 13, 2026, no separate 2026 semiannual earnings preannouncement or earnings flash report had been identified.

4.3 2026 Semiannual Profit Distribution Proposal

On August 25, 2026, the company disclosed a semiannual profit distribution proposal. Based on the total number of shares on the equity-registration date for the distribution, it proposed a cash dividend of RMB 0.56 per 10 shares, including tax. Total cash dividends were expected to be RMB 74.3798 million, representing 10.30% of first-half 2026 net profit attributable to shareholders of the listed company. No capitalization of capital reserves or bonus shares were proposed. As of September 13, 2026, the specific equity-registration date, ex-dividend and ex-rights date and actual payment arrangements remained subject to subsequent implementation announcements.

4.4 Independent Director Li Yue Resigns; Follow-Up on Replacement Election Required

On August 25, 2026, the company disclosed the “Announcement on the Resignation of an Independent Director,” announcement number 2026-024. Independent Director Li Yue applied to resign for personal reasons and simultaneously resigned as chair of the Audit and Compliance Committee and as a member of the Strategy and Sustainable Development Committee and the Remuneration and Assessment Committee. Following the resignation, Li Yue would no longer hold any position with the company. The original term was scheduled to end on May 22, 2028. Li Yue did not hold company shares and had no outstanding public commitments. Because the proportion of independent directors on the board would fall below one-third after the resignation, the resignation would become effective after shareholders elected a new independent director. Until then, Li Yue would continue performing relevant duties. The company stated that the resignation would not reduce the number of board members below the statutory quorum and would not affect normal board operations or daily production and business activities.

4.5 Investor-Relations Disclosure of Silicon-Carbide Capacity and Epitaxial Expansion Plans

On September 3, 2026, the company disclosed the “August 2026 Investor Relations Activity Record,” covering institutional research visits received in Wuxi, Shenzhen and Shanghai from August 25 to August 28. The company believes the semiconductor industry may enter a long-term upcycle, with applications such as AI, autonomous driving, embodied intelligence, smart terminals and computing infrastructure driving demand for power, analog and mixed-signal semiconductors. Silicon-carbide revenue in the first half of 2026 more than doubled year on year, with automotive and energy-storage end-market revenue together accounting for approximately 85%. Because its own silicon-carbide capacity is limited, the company is actively seeking outsourced capacity and plans to secure silicon-carbide capacity through investments, mergers and acquisitions and equity participation, thereby forming an expansion model combining “self-built capacity plus external cooperation.”

4.6 AI-Server and Data-Center Power Products Achieve Volume Growth

During investor-relations activities, the company stated that it had established a product layout for AI-server and data-center power supplies spanning first-level power delivery, second-level IBC and third-level board-level power. Silicon-based and third-generation semiconductor products had already achieved volume shipments and been introduced to mainstream power-supply manufacturers and cloud customers.

4.7 No Specific Silicon-Carbide Acquisition Has Yet Materialized

As of September 13, 2026, no announcement had been identified specifying a silicon-carbide acquisition target, transaction amount, counterparty or formal acquisition plan. Accordingly, the company’s references in investor communications to expanding capacity through investment, mergers and acquisitions or equity participation remain strategic directions and management statements, and should not be viewed as completed acquisition transactions.

4.8 No Significant Subsequent Change in Industrial Fund Investment

On May 28, 2026, the company disclosed plans to jointly establish the Runke (Chongqing) Equity Investment Fund Partnership (Limited Partnership) with related parties. Investment areas include core semiconductor equipment, core components, critical consumables and high-end chip design. Runke Innovation Investment and the wholly owned subsidiary Huawai Holdings would subscribe for a combined RMB 193.89 million, representing 16.1575% of the fund’s total subscribed capital. The funds would come from the company’s own resources. The transaction constituted a related-party transaction but not a material asset restructuring. The 2026 semiannual report stated that there had been “no progress or change” in the matter. As of September 13, 2026, it could not be inferred that the company had completed any specific acquisition.

4.9 Shareholdings and Changes in Shareholdings

According to the 2026 semiannual report, as of June 30, 2026, the company had 74,736 ordinary shareholders. China Resources Group (Microelectronics) Co., Ltd. held 878,982,146 shares, representing 66.18%, with no change in the reporting period. Hong Kong Securities Clearing Company Limited held 21,732,251 shares, an increase of 1,630,271 shares during the reporting period. China Integrated Circuit Industry Investment Fund Co., Ltd. held 9,924,630 shares, a decrease of 3,308,209 shares. The ChinaAMC SSE STAR Market 50 ETF held 9,749,899 shares, a decrease of 10,979,776 shares. Wang Kaibin held 9,505,483 shares, a decrease of 11,621,006 shares. These were semiannual-report data as of June 30, 2026 and do not represent the latest shareholdings in September 2026. From July through September 2026, no new announcements were identified regarding purchases, sales or share pledges by China Resources Group (Microelectronics) Co., Ltd., the actual controller or other significant shareholders.

4.10 No New Share Repurchase Plan or Progress Announcement Identified

As of September 13, 2026, no new share-repurchase plan, repurchase-progress announcement or repurchase-cancellation announcement issued by China Resources Micro during August–September 2026 had been identified. The semiannual report disclosed the listing and trading of shares related to the second vesting period of the reserved portion of the company’s 2021 Class II restricted-share incentive plan. The relevant shares, totaling 681,282, began trading on March 23, 2026. This was an equity-incentive vesting event rather than a share repurchase by the listed company to support its share price.

4.11 No Major Regulatory Penalties or Inquiry Matters Identified as of the Search Date

As of September 13, 2026, based on the company’s announcement list, relevant public search pages of the Shanghai Stock Exchange and searches of recent announcements, no major regulatory matters were identified involving a regulatory work letter, inquiry letter, disciplinary action, CSRC investigation or administrative penalty issued to China Resources Micro during August–September 2026. Because the Shanghai Stock Exchange regulatory-inquiry page is dynamically searchable and search results may be delayed, this conclusion only means that no relevant publicly disclosed matter was identified as of the search.

4.12 Participation in the Integrated-Circuit Innovation Development Conference and Group Research Visit

On September 2, 2026, the company’s website disclosed its participation in the 2026 Wuxi Integrated Circuit Innovation Development Conference, whose topics included semiconductor equipment, materials, core components and industry collaboration. On August 11, 2026, Wang Haimin, chairman of China Resources Group, visited China Resources Microelectronics for research, toured the Runpeng Semiconductor exhibition hall and the 12-inch specialty analog integrated-circuit production line, and held discussions with the management team. These were industry activities and company news, with no new investment amount, acquisition plan or capacity commitment disclosed.

5. Share-Price Performance and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

As of September 11, 2026, China Resources Micro’s share price had fallen significantly from the July 1, 2026 intraday high of approximately RMB 101.99. The RMB 55.99 price was approximately 45% below the 52-week high but approximately 28% above the 52-week low of approximately RMB 43.7. Based on the latest 20 trading-day closing prices, the share price was below MA5, MA10 and MA20, MACD was negative and RSI14 was approximately 42.34, indicating weak short-term technical conditions. The share price had approached the lower Bollinger Band, with the September 11 intraday low of RMB 53.97 close to the estimated lower band of approximately RMB 53.94. RMB 53.8–RMB 54.3 is therefore an important support zone to monitor. In terms of fund flows, large- and extra-large-order net flows were negative over both the past 5 and 10 trading days. Trading volume and turnover have cooled from late August, and the effectiveness of support and potential improvement in trading volume should be monitored.

5.3 Short-Term Outlook (Next Week; Scenario Analysis for Reference Only)

⚠️ Risk warning: The following is only a subjective scenario analysis based on the September 11, 2026 closing data, historical prices and technical indicators. It does not constitute investment advice or a guarantee of future actual price movements.

① Key Technical Levels

② Scenarios for the Coming Week (Subjective Weights, Not Statistical Probabilities)

• Range-bound consolidation (relatively higher weight, approximately 50%; a subjective heuristic weight based on the current technical pattern, trading and fund flows, not a statistical probability or model backtest): Reference price range of RMB 54.5–RMB 58.5. Trigger conditions include support around RMB 53.8–RMB 54.3, no successive high-volume declines, and continued consolidation in the semiconductor sector and STAR Market index, with turnover value remaining within a normal recent range. If support near RMB 53.9 holds, the share price may fluctuate repeatedly around RMB 55–RMB 57, with initial resistance at RMB 57.8–RMB 59.1.
• Weak downside move (medium weight, approximately 30%; a subjective heuristic weight, not a statistical probability or model backtest): Reference price range of RMB 52.8–RMB 55.5. Trigger conditions include a closing-price breakdown below the RMB 53.8–RMB 54.3 strong-support zone, accompanied by a daily turnover value materially above recent normal levels, or continued weakness in the semiconductor sector and a further decline in market risk appetite. Technically, the price may seek the next support zone around RMB 52–RMB 53. If volume does not expand during the breakdown, it may also be a false breakdown, requiring confirmation over the following 1–2 trading days.
• Stronger rebound (lower weight, approximately 20%; a subjective heuristic weight, not a statistical probability or model backtest): Reference price range of RMB 58.5–RMB 61.0. Trigger conditions include a move back above the RMB 57.8–RMB 59.1 resistance zone together with sustained expansion in turnover value. If daily turnover remains steadily at approximately RMB 1 billion or higher and the closing price holds above RMB 59.1, this could serve as an observable signal that short-term rebound momentum has been confirmed by volume. If the stock reclaims resistance around MA10 and MA20, negative MACD momentum may narrow and the price could technically recover toward RMB 60–RMB 61. However, large-order funds were net outflows over both the past 5 and 10 trading days, while MACD and medium-term moving averages remained weak.

③ Fund-Flow and Liquidity Background

As of September 11, 2026, turnover value over the latest 5 trading days was approximately RMB 440–RMB 870 million, with turnover rates of approximately 0.6%–1.3%. Turnover value on September 11 was approximately RMB 751 million, with a turnover rate of approximately 1.03%. For a stock with total market capitalization of approximately RMB 74.4–RMB 74.8 billion, this represents a certain level of liquidity but is not particularly active. The price may remain sensitive to sector sentiment and large-order trading. Shareholder data as of June 30, 2026 showed 74,736 shareholders, an increase of 33.61% from March 31, 2026. The ten largest shareholders collectively held approximately 959 million shares, representing approximately 72.24% of total or tradable shares. The controlling shareholder, China Resources Group (Microelectronics) Co., Ltd., held 66.18%. The ten largest shareholders also included Hong Kong Securities Clearing Company Limited, China Integrated Circuit Industry Investment Fund and several STAR Market or semiconductor ETFs. Tonghuashun data showed that 933 institutions collectively held approximately 1.039 billion shares, representing approximately 78.21% of tradable shares, with funds accounting for approximately 8.75%. Accordingly, nominal shareholding concentration was relatively high, although the increase in shareholder count also indicated a rise in the number of participants and possible dispersion of holdings. These shareholder-structure data were approximately two months old as of the September 11, 2026 close. Holdings may have changed during the period and cannot be equated directly with the current real-time ownership structure.

If daily turnover value continues to expand to approximately RMB 1 billion or more and coincides with the closing price reclaiming and holding above RMB 59.1, this could serve as a verifiable signal of renewed short-term fund participation and confirmation of rebound volume. This threshold is based on the recent turnover-value range of approximately RMB 440–RMB 870 million.

④ Points to Monitor (Observational Framework Only, Not Trading Instructions)

• Observational framework, not a trading instruction: monitor whether the RMB 53.8–RMB 54.3 strong-support zone holds. A decisive breakdown accompanied by higher volume could further weaken the technical pattern.
• Observational framework, not a trading instruction: monitor whether the RMB 57.8–RMB 59.1 resistance zone can be reclaimed. Until the zone is recovered, any rebound should be viewed as a weak-recovery scenario.
• Observational framework, not a trading instruction: monitor whether turnover value can expand steadily from the recent RMB 440–RMB 870 million range to approximately RMB 1 billion or more, in tandem with a rising share price.
• Observational framework, not a trading instruction: monitor changes in shareholder count, the holdings of the ten largest shareholders and institutional ownership as of June 30, 2026. These data are lagged and do not represent the real-time ownership structure on September 11, 2026.

The above scenarios are based on the September 11, 2026 closing data and calculations using historical prices and technical indicators. Short-term share prices will also be affected by news, fund flows, broader market conditions and other factors. Technical indicators are inherently lagging and limited. This does not guarantee future actual performance or constitute a buy or sell recommendation. Investors should independently assess the situation based on the latest market information and bear investment risks themselves.

6. Industry Structure and Competitive Analysis

6.1 Industry Overview

The global power-semiconductor market is dominated by international companies such as Infineon, onsemi, STMicroelectronics and Renesas. Their competitive advantages are concentrated in automotive-grade power-device certification, high-end IGBT and SiC products, advanced packaging and modules, long-term customer relationships and global supply chains. The Chinese market shows a multi-layered competitive structure characterized by “international leaders in front, domestic IDM companies breaking through in selected segments and Fabless design companies focusing on individual product categories.” China Resources Micro’s advantages include a complete product line in the domestic market, an IDM system, specialty processes and scale in power devices. However, it lags global leaders in high-end automotive customer depth, global revenue scale, advanced SiC/GaN product coverage and self-sufficiency in certain core equipment and materials.

6.2 Competitive Landscape

• Leading domestic companies typically possess 6-inch, 8-inch or 12-inch wafer production lines, or integrated capabilities spanning power-device chip design, manufacturing and packaging and testing.
• Customer certification in automotive, photovoltaic, energy storage, industrial control and home-appliance applications, together with expansion from silicon-based MOSFETs and IGBTs into third-generation semiconductors such as SiC and GaN, is an important direction for domestic companies upgrading their product mix.
• Among domestic listed power-semiconductor companies in 2025, Wingtech Technology, CRRC Times Electric, Silan Microelectronics, China Resources Micro and Yangjie Technology were relatively large, although business structures differed substantially and should not be ranked solely by total revenue.
• Industry market-share and competitive-tier data mainly come from research institutions, brokerages or industry media rather than audited company data. Any ranking of China Resources Micro in China’s power-semiconductor or MOSFET markets should specify the research institution, product definition and statistical year.

6.3 Major Competitors

China Resources Micro’s overall competitiveness comes from its IDM system covering chip design, mask manufacturing, wafer manufacturing, packaging and testing, and sales of power-device products. Its product line includes MOSFETs, IGBTs, power ICs, sensors and specialty-process chips. Compared with Silan Microelectronics and Yangjie Technology, the company is more prominent in open-foundry wafer manufacturing, masks and integrated product solutions. Compared with Wingtech Technology, globalization and automotive customer coverage are not its primary advantages. Compared with StarPower Semiconductor and CRRC Times Electric, the company has a more comprehensive product platform, although it differs in its degree of focus on high-end modules or specific system applications. The key current issues are capacity utilization following high capital expenditure, product-price competition and the proportion of high-end products. Future profit improvement will depend on the ramp-up of the 12-inch production line, recovery in the gross margin of products and solutions and volume growth in high-value-added products.

7. Risk Factors

• The sustainability of core-profit improvement is uncertain. First-half 2026 net profit attributable to the parent was RMB 722 million, while net profit attributable to the parent excluding non-recurring items was only RMB 414 million. First-quarter results also included approximately RMB 185 million in gains from changes in the fair value of financial assets. If non-recurring gains decline, actual profit growth may be lower than the reported growth in net profit attributable to the parent.
• Ramp-up and insufficient utilization of the 12-inch production line may continue to weigh on profitability. Other manufacturing expenses accounted for 42.50% of integrated-circuit business costs. Depreciation, equipment utilization and yield changes at heavy-asset production lines may increase unit costs and offset the benefits of revenue growth and procurement-cost controls.
• Product-price competition and business mix may pressure gross margins. Core operating gross margin declined from 36.87% in 2022 to 26.51% in 2025, while the gross margin of manufacturing and services declined from 37.61% in 2022 to 31.97% in 2025. If power devices, wafer-manufacturing services or distribution channels continue to face pricing pressure, higher product shipments may not translate into equivalent profit growth.
• The silicon-carbide expansion plan has not yet been implemented. As of September 13, 2026, the company had not announced a specific acquisition target, transaction amount, counterparty or formal acquisition plan. Given limited internal capacity and reliance on outsourcing, investment or equity participation to secure capacity, related revenue growth and capacity improvement face risks relating to execution schedules, cooperation implementation and lower-than-expected capital investment.
• Inventory and working-capital usage may increase. Wafer-manufacturing inventory volume increased 24.76% YoY in 2025, while inventory days were approximately 96.79, higher than accounts-receivable days of approximately 53.71. If changes in demand or orders slow inventory digestion, capital occupation and inventory-impairment pressure may rise.
• The company continues to lag international leaders in high-end automotive applications, SiC/GaN and global customer coverage. Automotive-electronics certification cycles are long and quality requirements are stringent. If high-end customer introduction or product certification progresses more slowly than expected, product-mix upgrades and volume growth in high-margin businesses may be constrained.
• Valuation and technical conditions may amplify share-price volatility. As of September 10, 2026, trailing P/E was approximately 71.59x and PB approximately 3.18x. Institutional forecasts for 2026 net profit attributable to the parent ranged from RMB 970 million to RMB 1.595 billion. As of September 11, the share price was below MA5, MA10 and MA20, while large-order net fund flows over the past 5 and 10 days were approximately RMB 218 million and RMB 462 million of net outflows, respectively. If earnings fall short of expectations or market risk appetite declines, valuation-decompression pressure may increase.
• The supply chain and manufacturing costs remain exposed to external factors. Silicon wafers, chemicals, specialty gases, packaging materials and certain equipment show some degree of industry concentration, and the company has limited bargaining power over certain key inputs. Purchases from the five largest suppliers accounted for 16.52% of total purchases in 2025, while anonymous disclosure limits further assessment of dependence on specific suppliers.
• Corporate-governance matters require continued monitoring. Following the resignation of Independent Director Li Yue, independent directors will represent less than one-third of the board. The resignation will become effective after shareholders elect a new independent director. Progress on the replacement election and the transition of responsibilities relating to the Audit and Compliance Committee and other committees require continued attention.

8. Conclusion and Outlook

China Resources Micro’s medium- to long-term growth thesis lies in the completeness of its IDM platform and product portfolio, as well as the upgrade of power semiconductors toward high-value-added applications such as automotive electronics, photovoltaic and energy storage, industrial control, AI-server power supplies and SiC/GaN. If the 12-inch production line continues to ramp up and improves utilization and yield, while high-margin products achieve volume growth and the contribution of products and solutions increases, depreciation dilution and product-mix improvements could support earnings recovery. The company’s disclosed volume growth in AI-server and data-center power products and its “self-built capacity plus external cooperation” approach to silicon carbide provide potential operational drivers for future growth.

However, the silicon-carbide investment and acquisition plan has not yet resulted in a specific transaction, and the related capacity expansion remains at the stage of strategic planning and management statements. Profit improvement in the first half of 2026 also included non-recurring gains. Whether future results can reach institutional forecasts will depend on the sustainability of industry conditions, product-price competition, utilization of the 12-inch production line, realization of AI and automotive new-energy demand, and volume growth in high-value-added products. Valuation is currently relatively high and the share-price technical pattern is weak. Future assessment should therefore combine core profitability, cash flow, capacity ramp-up and price-volume changes.

Data Sources

• China Resources Micro (688396)_Company Announcements_China Resources Micro: 2026 Semiannual Report Summary—Sina Finance_Sina.com
• China Resources Micro (688396)_Company Announcements_China Resources Micro: 2026 Semiannual Report—Sina Finance_Sina.com
• China Resources Micro (688396) Earnings Forecast_F10_Tonghuashun Financial Services
• China Resources Micro (688396)_Company Announcements_China Resources Micro: 2025 Annual Report—Sina Finance_Sina.com
• https://pdf.dfcfw.com/pdf/H3_AP202604291821778724_1.pdf?1777499054000.pdf=
• Institutional Rating|Huatai Securities Gives China Resources Micro a “Buy” Rating
• China Resources Micro (688396) Analyst Consensus Estimates_Market Sentiment_Investing.com
• China Resources Micro (688396) P/E|Valuation|Fundamentals—Lixinger
• China Resources Micro (688396)—Company Profile—Stock Market Center—Sohu Securities
• China Resources Micro (688396)_Company Announcements_China Resources Micro: 2026 Semiannual Report—Sina Finance_Sina.com
• China Resources Micro: Semiannual Earnings Preannouncement Is Voluntary Disclosure—STAR Market News_STAR Market_Stocks_Stockstar
• China Resources Micro (688396)_Company Announcements_China Resources Micro: Announcement on the Resignation of an Independent Director—Sina Finance_Sina.com
• China Resources Micro (688396)_Company Announcements_China Resources Micro: August 2026 Investor Relations Activity Record—Sina Finance_Sina.com
• China Resources Micro (688396) Company Announcements_Sina Finance_Sina.com
• Welcome to China Resources Microelectronics—News
• China Resources Micro (688396) Historical Stock Data: Historical Quotes, Prices and Charts_Investing.com
• China Resources Micro (688396)—Historical Trading Data | Dabanke.com
• China Resources Micro (688396) Latest Price, Real-Time Chart, Stock Analysis and Forecast_Investing.com
• China Resources Micro (688396) Technical Analysis, Forecast and Trading Suggestions_Investing.com
• Individual Stock Research
• China Resources Micro (688396) Major Shareholders_Sina Finance_Sina.com
• China Resources Micro (688396) Latest Developments_F10_Tonghuashun Financial Services

This report was automatically retrieved, compiled and generated by AI based on publicly available information. The information is current as of the September 11, 2026 close; September 12–13, 2026 were weekends, with no new A-share closing data available. Some technical indicators were calculated independently based on publicly available historical closing prices, while certain market and shareholder data may vary across platforms and may be subject to timing differences. Specific data should be verified against the company’s formal announcements and authoritative data terminals. This report is for information and research reference only and does not constitute investment advice. Investors should make independent judgments and bear investment risks themselves.