Wanrun Technology Q3 Report: Non-GAAP Net Profit Up 214.72%, Storage Business Rides AI Boom

Shenzhen Wanrun Technology Co., Ltd. (002654.SZ, hereinafter referred to as "Wanrun Technology") recently disclosed its 2026 third-quarter report, showing that in the first three quarters it achieved operating revenue of 3.383 billion yuan, a year-on-year decrease of 8.90%; net profit attributable to shareholders of the listed company was 28.1229 million yuan, a year-on-year increase of 1.31%; and net profit after deducting non-recurring gains and losses was 27.1435 million yuan, a substantial year-on-year increase of 214.72%. While revenue contracted and shifted gears, the profitability of its main business has recovered significantly, and combined with the upward cycle in the storage industry, positive signals of improvement in its operating quality are emerging.

Profitability quality of the main business has clearly improved, and the storage business is riding the tailwind of the boom

Breaking down the income statement, it can be seen that the quality of Wanrun Technology's profit improvement mainly comes from its main business.

In the first three quarters, Wanrun Technology's operating profit was 15.5440 million yuan, a year-on-year increase of 63.20%; total profit was 16.0807 million yuan, a year-on-year increase of 87.06%. During the reporting period, the company's basic earnings per share were 0.0333 yuan, and the weighted average return on net assets was 1.78%, an increase of 0.05 percentage points from the same period last year.

By quarter, the recovery of the main business further accelerated in the second half of the year: in the third quarter alone, net profit after deducting non-recurring gains and losses was 15.4756 million yuan, a sharp year-on-year increase of 833.55%, and the cash-generating capacity of the core business strengthened quarter by quarter.

Improvement on the expense side is equally clear. In the first three quarters, financial expenses were 41.3268 million yuan, a year-on-year decrease of 24.09%, of which interest expenses were 34.7835 million yuan, reduced by more than 30% from 50.2867 million yuan in the same period last year. The balance sheet also improved simultaneously: total liabilities at the end of the period were 2.751 billion yuan, a decrease of 387 million yuan from the beginning of the year; non-current liabilities due within one year were 87.4038 million yuan, a decrease of 59.46% from the beginning of the year; and long-term borrowings fell to 14.81 million yuan, a decrease of 30.82%. In terms of asset quality, asset impairment losses in the first three quarters were reversed by 6.6611 million yuan, compared with 6.9864 million yuan provisioned in the same period last year, a clear sign that asset quality is stabilizing.

The semiconductor memory business is currently the most noteworthy growth pole for Wanrun Technology. The semi-annual report shows that in the first half of the year the company's memory business achieved operating revenue of 490 million yuan, a year-on-year increase of 18.06%; gross margin rose to 9.81%, an increase of 8.91 percentage points from the same period last year; and the controlled subsidiary Wanrun Semiconductor achieved net profit of 13.9616 million yuan, with profitability continuing to climb.

Entering the third quarter, industry prosperity rose further. Training and inference of large artificial intelligence models have created voracious demand for storage, with a single AI server's demand for DRAM reaching 8 to 10 times that of an ordinary server. According to SEMI China's assessment, the global HBM market is expected to grow 58% to US$54.6 billion in 2026, accounting for nearly 40% of the DRAM market; research reports from multiple brokerages believe that the supply-demand imbalance in this round of the storage super cycle will last at least until 2027. Institutions predict that global DRAM output value may rise 144% year on year in 2026, with contract prices rising 58% to 63% quarter on quarter in the second quarter, and the price increase wave is spreading along storage modules across the entire consumer electronics industry chain.

The company is also stepping up its positioning. The third-quarter report shows that inventory at the end of the period was 365 million yuan, an increase of 44.23% from the beginning of the year, which Wanrun Technology attributed to "stockpiling for the expansion of the semiconductor memory business," clearly indicating an intention to lock in supply sources in advance. Capital operations are also proceeding in parallel: in late October, Wanrun Technology and iSoftStone completed the signing of a capital increase agreement for Hubei Changjiang Wanrun Semiconductor Technology Co., Ltd., marking a key implementation of the strategic cooperation agreement reached by the two parties in 2025. This time Wanrun Semiconductor raised a total of 130 million yuan, of which Wanrun Technology made a cash capital increase of 100 million yuan through a non-public agreement, and iSoftStone participated in the capital increase with 30 million yuan through the public listing procedure of the Wuhan Optics Valley United Property Rights Exchange. Previously, orders from the iSoftStone system had already been delivered in batches in the first half of the year, and this capital increase is regarded as a key step in upgrading the storage business through the dual drive of capital and industry.

In addition, as a traditional main business, the LED business has maintained a stable base during the industry adjustment period and is migrating toward high-value-added segments. In the first half of the year, Wanrun Technology's LED light source devices and related business revenue was 225 million yuan, a year-on-year increase of 8.20%. From an industry perspective, segments such as automotive lighting and Mini LED are becoming the main growth poles of the LED industry chain, and shipments of new categories such as automotive Mini LED backlights continue to climb, providing industry opportunities for manufacturers deeply engaged in automotive-grade products.

Although the integrated energy business is small in scale, its profitability is quite impressive. Wanrun Technology's third-quarter report shows that construction in progress at the end of the period was 34.6783 million yuan, an increase of 206.16% from the beginning of the year, mainly invested in energy management projects, building momentum for the subsequent scaling of this business.