EPIWORLD (02726) Issues Positive Profit Alert: Expected Net Profit of Approximately RMB108 Million to RMB158 Million for FY2026, Up About 800% to 1,217% Year-on-Year

EPIWORLD (02726) has issued an announcement that the Group expects to record the following financial performance for the year ended December 31, 2026 (FY2026): revenue is expected to be approximately RMB1.607 billion to RMB1.760 billion, representing an increase of RMB842 million to RMB995 million compared with RMB765 million for the year ended December 31, 2025 (FY2025), or a year-on-year increase of approximately 110% to 130%; and net profit is expected to be approximately RMB108 million to RMB158 million, representing a year-on-year increase of approximately 800% to 1,217% compared with RMB12 million in FY2025; adjusted net profit is expected to be approximately RMB281 million to RMB331 million, representing a year-on-year increase of approximately 42% to 67% compared with RMB198 million in FY2025. Based on the information currently available, the Board considers that the above expected changes in results are mainly attributable to: growth in downstream application demand for AI data centers, which drove an increase in orders and sales volume of the Group's silicon carbide epitaxial wafers and revenue growth; and the expansion of the Company's production and sales scale, which increased the dilution effect on fixed costs, together with material cost control and improved production efficiency, which lowered unit production costs and drove a continuous increase in gross profit margin.