Goertek Q1 Sees Revenue Growth Without Profit Increase, Hit by Exchange Losses

On April 23rd, Goertek disclosed its Q1 report for the year 2026, reporting a revenue of 18.659 billion yuan during the reporting period, a year-on-year increase of 14.44%; net profit attributable to the parent company was 0.503 billion yuan, a year-on-year increase of 7.28%. Impacted by foreign exchange losses, the company's net profit growth rate is significantly lower than the revenue growth rate. The net profit, excluding non-recurring gains and losses, was 0.349 billion yuan, a year-on-year increase of 19.57%, showing an improvement in the profitability of the main business.

Steady Revenue Growth, Profit Performance Suppressed by Exchange Losses

The increase in the company's revenue in Q1 was mainly driven by the core businesses of acoustic precision components, smart hardware outsourcing, and VR/AR. On the profit side, the growth rate of net profit, excluding non-recurring gains and losses, is significantly higher than the overall net profit, indicating a better improvement in core profitability and continuous optimization of operational quality.

During the reporting period, the company's non-recurring gains and losses totaled approximately 0.154 billion yuan, mainly from the fair value changes of foreign exchange derivatives, investment income, and government subsidies. The profit growth rate did not match the revenue growth rate, primarily due to the impact of exchange rate fluctuations: the financial expenses in Q1 reached 0.344 billion yuan, compared to a net income of 6.89 million yuan in the same period last year, a year-on-year change of over 5000%, mainly due to increased foreign exchange losses. Although the investment income from foreign exchange derivatives increased by 123.45% year-on-year during the same period, providing some offset, the actual foreign exchange losses were still greater than the hedging gains, becoming the biggest suppressing factor on the profit side.

Operating Cash Flow Turns Negative, Short-term Borrowings Expand by Nearly Half

The net cash flow from operating activities in Q1 was -0.585 billion yuan, compared to a net inflow of 1.536 billion yuan in the same period last year, with the company explaining that this was mainly due to a reduction in sales收款. Data shows that the company's sales收款 for Q1 was about 19.5 billion yuan, a decrease of about 1.5 billion yuan compared to the same period last year, while expenses such as procurement and compensation increased.

In terms of the balance sheet, the company's short-term borrowings increased from 13.411 billion yuan at the beginning of the year to 20.075 billion yuan, a growth of 49.7%, which the company stated was due to operational and fund management needs; on the asset side, cash and cash equivalents increased synchronously from 18.886 billion yuan to 22.404 billion yuan, with the expansion of short-term borrowings and the thickening of cash and cash equivalents happening in tandem.

R&D Continues to Increase, Capacity Building and Buyback Plan Steadily Implemented

On the investment side, the company's net cash outflow from investment activities in Q1 was 4.408 billion yuan, expanding by about 38% year-on-year, of which about 2.3 billion yuan was spent on purchasing and constructing fixed assets, with capacity building continuing to advance. As of the end of Q1, the company's construction in progress increased from 2.062 billion yuan at the beginning of the year to 2.572 billion yuan, a growth of 24.7%, with fixed assets steadily at 22.652 billion yuan, laying the foundation for future large customer orders.

R&D investment continues to increase, with the company's R&D expenses in Q1 being 1.141 billion yuan, a year-on-year increase of 4.2%; the balance of capitalized development expenses was 0.356 billion yuan, a 58.96% increase from the beginning of the year, with several key technology projects entering a concentrated development phase. On the cost side, the growth rates of administrative expenses and sales expenses basically match the revenue growth rate and are within a reasonable range.

In terms of shareholder return, the company's share repurchase plan of 1 billion to 1.5 billion yuan was completed on April 9th, with a total of approximately 44.2 million shares repurchased, costing about 1.2 billion yuan.