Xinyisheng released its semi-annual report for 2026 on the evening of August 24. The report showed that the company's operating revenue in the first half of the year reached RMB 20.91 billion, a year-on-year increase of 100.34%; net profit attributable to the parent company was RMB 7.529 billion, a year-on-year increase of 90.98%. However, the market reacted coolly to this financial report, and the company's stock price fell by more than 2% on the following day (August 25).

Analysis pointed out that despite the doubling of revenue and net profit, the quality of profit has raised concerns. The net cash flow from operating activities in the first half of the year was only RMB 1.616 billion, far lower than the net profit for the same period, indicating a significant shrinkage in the cash content of profit. In addition, the gross profit margin of optical interconnect products declined quarter-on-quarter in the second quarter, and R&D investment accounted for only 2.1% of revenue, which also raised concerns about the company's future competitiveness and profit performance after the mass production of 1.6T products. Compared with its peers, Xinyisheng faces challenges in terms of scale and gross profit moat, and is considered to be sliding from a "duopoly" to a "follower" position.