Earnings release
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1 Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. InnoScience (Suzhou) Technology Holding Co., Ltd. ߅( ᘽψ )ʮ̡ (A joint stock company incorporated in the People ’s Republic of China with limited liability) (Stock Code: 2577) ANNOUNCEMENT OF INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2026 The board (the “Board ”) of directors (the “Directors ”) of InnoScience (Suzhou) Technology Holding Co., Ltd. (the “Company ”) is pleased to announce the unaudited consolidated results of the Company and its subsidiaries (collectively, the “Group”, “InnoScience ” or “we”) for the six months ended 30 June 2026 (the “Reporting Period ”), together with the comparative figures for the six months ended 30 June 2025. 2026 INTERIM FINANCIAL AND BUSINESS HIGHLIGHTS 1) Sustained Rapid Revenue Growth (+50.6%), Rising Gross Profit Margin (11.6%), and Positive Net Operating Cash Flow • During the Reporting Period, the Group achieved sustained rapid revenue growth, with sales revenue of RMB833.62 million, representing a year-on-year increase of 50.6%; • During the Reporting Period, the Group recorded gross profit of RMB97.08 million, up by 156.50% year-on-year, with gross profit margin rising steadily to 11.6%. The improvement in gross profit margin was mainly attributable to a higher proportion of high-margin products and cost reduction driven by production scale effects of the Company; • During the Reporting Period, the Group achieved a milestone of turning positive in net operating cash flow, marking a substantial further improvement in the Company ’s industrial scale and profitability; • During the Reporting Period, the Group recorded total shipments of 547 million chips, with cumulative shipments over the years exceeding 2.5 billion chips, firmly maintaining its position as a leading player in the GaN industry.
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2 Item 24H1 25H1 26H1 Revenue (RMB ’000) 385,811 553,354 833,616 Gross profit (RMB ’000) -83,240 37,848 97,082 Gross profit margin -21.60% 6.80% 11.60% 2) Continuous Optimisation of Product Mix, Accelerated Growth in Proportion of High-value Products, and Notable Improvement in GaN Revenue Quality During the Reporting Period, the Group ’s product mix shifted from volume-focused strength in consumer electronics to a new growth phase driven by high-value markets such as AI data centers, industrial and energy storage, and new energy vehicles. During the Reporting Period, the Company generated revenue of RMB532.27 million from the aforementioned high-end application sectors, rising by 70% as compared with the same period last year and outpacing growth in the consumer market. Key highlights are set out below: • Strong growth in shipments for high-value markets: During the Reporting Period, shipments of the Group ’s chips for AI and data center applications surged by 183% year-on-year; automotive-grade chip shipments grew by 103% year-on-year; chip shipments for humanoid robot applications rose by 50% year-on-year; • Further breakthrough and steady growth in energy storage and industrial sectors: During the Reporting Period, the Group ’s business recorded steady growth in energy storage and industrial sectors, with sales up by 83% year-on-year. The first low-voltage bidirectional VGaN BMS solution in the industry achieved mass production at leading energy storage customers and generated sales revenue of RMB11.06 million, signifying the full penetration of GaN into the battery management system (BMS) business; • Motor drive sector: Breakthroughs were achieved in low-voltage motor drive business, a sector poised to lead future transformation, with revenue reaching RMB7 million, up by 685% year-on-year; • White goods sector: During the Reporting Period, the Company ’s products for air conditioners, refrigerators and other home appliances entered mass production, with revenue jumping by 924% year-on-year, as the white goods business embarked on volume ramp-up and expansion. 3) Accelerated New Product Introduction and Explosive Growth in Strategic Emerging Markets, Laying Foundations for Future Explosive Growth Momentum • During the Reporting Period, the Company secured 747 new customer design-ins targeting key markets including AI, data centers, new energy vehicles and humanoid robots, achieving full coverage of strategic emerging markets; • During the Reporting Period, shipments of the Group ’s chips for AI and data center applications rose by 183% year-on-year, making it one of the fastest-growing strategic pillars during the Company ’s product mix upgrade; • Full value chain coverage of data center power supply was realised. Compared with traditional consumer electronics applications, the Company is evolving from a discrete power device supplier to a core power supplier of high-power, high-integration and high-reliability computing power supplies.
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3 • 800V HVDC: The Company has deeply participated in the development of the global 800V HVDC technology ecosystem and completed the development and introduction of a series of chip products including 5.5kW AC-DC, 800V HVDC, 48V/12V and 6V/1V solutions Over 100 high-voltage chip products for 800V HVDC and 100V medium-voltage chip products for 48V/12V applications have secured design-ins from more than 20 leading global CSP vendors; Some of the above chips have commenced mass production and delivery to multiple leading global enterprises, with shipments rising by 183% year-on-year; DrGaN products for 6V/1V GPU power supply in 800V HVDC scenarios have been successfully launched and sample testing completed at leading customers. • New energy vehicles: In the high-value automotive-grade market, scale advantages in consumer electronics are extending to core automotive systems During the Reporting Period, the Group ’s high-voltage automotive-grade product platform obtained formal certification and rolled out mass production and shipments, with automotive-grade chip deliveries surging by 103% year-on-year, marking the gradual shift of the Company ’s automotive business from early peripheral applications to high-value core power supply systems; GaN chips tailored for the 6.6kW OBC + 3.5kW DC/DC bidirectional on-board power supply system have been successfully launched, mass-produced and deployed in vehicles; The Company maintains industry leadership in LiDAR applications, with cumulative shipments approaching 20 million chips. Long-term large-volume shipments and customer validation have not only built the existing business scale but also verified the reliability of the Company ’s GaN products under high-temperature, vibration and complex automotive environments, laying a solid foundation for further penetration into core applications such as OBC, DC/DC and intelligent driving. • Humanoid robots: Next-stage high-growth market: Leveraging its industrial and automotive expertise, the Company has completed pre-layout for full-body GaN applications During the Reporting Period, the Group recorded shipments of 464,600 chips for humanoid robot applications, up by 50% year-on-year. The industry remains in the early commercialisation phase; current shipments mainly reflect customer design-ins and technological pre-positioning, and the incremental upside from end-market volume growth in the future will far exceed current revenue contribution Mass production and deliveries have commenced for multiple leading customers of humanoid robots and joint modules; GaN technology has been successfully adopted in key segments including joint drive, 48V/12V power conversion, BMS, dexterous hands and LiDAR.
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4 4) Steady Growth in Consumer Electronics, Evolving from Primary Revenue Source to a Stable Base and Technology Scaling Platform During the Reporting Period, the Group generated sales revenue of RMB301.40 million from consumer electronics, representing a 26% year-on-year increase and sustaining solid growth The Company maintained global leading market share in traditional core markets including fast charging, smartphones and laptops. The large-scale shipments, customer coverage, manufacturing yield and supply chain capabilities established through its mature consumer electronics business form a critical foundation for the Company to expand into markets demanding higher reliability and higher power ratings; With accelerated upgrades of smart terminals such as AI phones and AI PCs, GaN is expected to penetrate from traditional external adapters to internal power management of devices, unlocking structural growth opportunities within mature markets; In the high-end home appliance market, the Company continued to deepen cooperation with leading domestic home appliance manufacturers on white goods such as air conditioners and refrigerators, with relevant products entering mass production and revenue surging by 924% year-on-year. Smart home appliances further demonstrate the trend of the Company ’s products expanding from traditional consumer charging scenarios to higher-power, longer-lifecycle applications; Shipment volumes for emerging consumer scenarios including audio devices, e-bicycles, wireless charging and beauty devices continued to rise. The consumer electronics business will remain a key source of scale and cash flow for the Company, yet its strategic role is transforming: it is shifting from the primary driver of revenue growth to a foundational pillar supporting manufacturing scale, technology verification and cash generation, while new growth momentum of the Company will be increasingly derived from high-value markets including industry, AI data centers, automobiles and robots. 5) Increasing R&D Investment and Comprehensive Evolution of Technology Roadmap Focusing on High Power, High Reliability and System Integration to Further Consolidate Absolute Industry Leadership During the Reporting Period, the Company ramped up R&D investment, accelerated iterative upgrades of its Fab process platform, and expedited the development of chips, system integration and overall solutions targeting strategic and high-end applications • R&D progress of the 4.0-generation process under development is on track. Optimisation of process layers is expected to deliver a further substantial reduction in per-wafer manufacturing costs. This upgrade will not only strengthen cost competitiveness in consumer electronics, but more importantly, deliver superior performance-to-cost advantages for industrial, AI data center and new energy vehicle markets characterised by more systematic price competition and higher performance requirements;
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5 • High-voltage products: The Company continues to advance high-voltage high-power and automotive-grade high-voltage bidirectional GaN technologies, primarily serving high-value applications including AI data centers, new energy vehicles and industrial energy. A rising proportion of high-voltage products will drive the evolution of the Company ’s product mix from predominantly mid-to-low power consumer applications towards high-power core power supply scenarios; • Low-voltage products: Targeting AI server GPU power supply, humanoid robots, automotive 48V architecture and smart terminals, the Company continues to develop 15V DrGaN and 100V/150V low-voltage GaN products to enhance high-frequency switching performance and system integration capability; • IC products: The Company continues to strengthen R&D of GaN power ICs, advancing deep coordination and integration between power devices and driver control circuits. As products evolve from discrete devices towards encapsulated and power ICs, the product value and technological barriers of the Company within end systems are expected to further improve. Beyond mere revenue growth, the more notable development for the Group in the first half of 2026 lies in the continuous optimisation of product and application mix. In the past, building on consumer electronics, the Company has achieved large-scale commercialisation of GaN technology and established leading strengths in manufacturing scale, cost control, customer coverage and supply chain capacity. Currently, the Company is systematically replicating these strengths across higher-value markets including industrial and energy storage, AI data centers and new energy vehicles. Industrial and energy storage have become key contributors to revenue growth; AI data center and new energy vehicle businesses are rapidly transitioning from product verification to scaled design-in, while humanoid robots offer longer-term growth resilience. Meanwhile, consumer electronics continues to provide a stable base and cash flow support. Accordingly, the Company is forging a new business structure wherein consumer electronics underpins production scale, industrial & energy storage drives near-term incremental growth, AI data centers and automobiles unlock high-value space, and robots provide long-term growth resilience. As the proportion of revenue from high-value applications keeps rising, the Company ’s future growth will be reflected not only in larger revenue scale, but also in higher per-product value, extended customer lifecycles, strengthened technological barriers and improved profitability. The Company is gradually transforming from a supplier renowned for scaled GaN deployment in consumer electronics into an integrated power semiconductor platform covering strategic markets including AI computing, automobiles, industrial energy and robots, with further room for long-term value release.
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6 MANAGEMENT DISCUSSION AND ANALYSIS I. INDUSTRY TRENDS AND COMPANY OVERVIEW In the first half of 2026, the global power semiconductor industry accelerated its transition to third-generation semiconductors. The AI computing boom drove rapid widespread adoption of the 800V HVDC architecture in data centers. New energy vehicles exhibit clear trends toward higher intelligence and lightweight design, while humanoid robot enters a phase of large-scale expansion. Coupled with energy efficiency upgrades for home appliances and robust growth in the energy storage sector, GaN stands out for its core strengths of high frequency, high efficiency and high power density, putting its industry penetration rate onto a fast growth track. As the world ’s first IDM enterprise to achieve large-scale mass production of 8-inch GaN-on-Si wafers, the Group boasts a comprehensive product portfolio covering voltage ratings from 15V to 1,200V. During the Reporting Period, the Company seized industrial opportunities by advancing process iteration and product portfolio upgrades, deepening strategic cooperation with leading customers, consolidating its dominant position in consumer electronics and accelerating penetration into high-end sectors including data centers, automotive electronics, humanoid robots, industrial and energy storage. Meanwhile, the comprehensive upgrade of its global customer service system further elevated the Company ’s technological edge and market share. II. BUSINESS REVIEW (I) Product R&D Review The Group focuses on two major trajectories of GaN application and development: high-power for high-voltage products and high-frequency for medium- and low-voltage products, and continually optimizes our product performance and application reliability. In the first half of 2026, the Group achieved significant breakthroughs in process platform iteration, packaging innovation and integrated development. The accelerated large-scale mass production of new products further broadened the performance boundaries of GaN products. High-voltage products (650V/700V/900V/1,200V) The Group continues to develop GaN products for high-power applications to realise high-efficiency and high-density conversion in data center power supplies as well as the miniaturisation and higher efficiency of industrial power supplies. Tailored for AI 800VDC applications, the newly developed 700V GaN products completed customer onboarding and commenced mass production. Products built on this platform cater to high-frequency requirements, helping AI server power supplies further improve efficiency and power density and break through cabinet power bottlenecks.
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7 The automotive-grade high-voltage platform obtained certification and entered mass production, marking the Company ’s comprehensive R&D and supply capacity for full- range automotive-grade products. The Group launched an automotive-grade high- voltage encapsulated GaN-IC product, which has been successfully onboarded for mass production in EV OBCs. The high-voltage bidirectional GaN product completed development and entered the customer system verification phase, driving the upgrade of on-board power supply architectures towards monolithic single-stage high-efficiency architectures. Medium-voltage products (100V/150V/200V) The Group focuses on the development of 100V-200V medium-voltage devices tailored for data center, automotive electronics and robotics applications. These devices are primarily used in data center DC power conversion, robot motor drives and automotive 48V systems. The Group launched a portfolio of products featuring ultra-low on- resistance to improve the power density of AIDC 800V HVDC and 48V DC systems, as well as the power density of robot joint motor drives. Low-voltage products (15V/30V/40V) The Group continues to launch low-voltage high-frequency products to meet the rising power requirements for motherboard power supplies across scenarios including smartphones, PCs and AI Core Power applications. The Group launched new-generation 40V/50V products for internal smartphone charging systems and 30V products for PC motherboard power supply systems. The 15V DrGaN products for 6-1V final-stage power supply of AI GPUs completed customer sampling, enabling a substantial increase in switching frequency, marked reduction in BOM component count and form factor, and significant improvement in conversion efficiency.
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8 (II) Product Application Review Backed by the industry ’s most comprehensive full-voltage product portfolio, the Group not only consolidated its leading position in the consumer electronics market, but also pioneered full-stack system solutions for global data centers, new energy vehicles and humanoid robots. 1. AI & Data Centers Leveraging its first-mover edge in the 800V HVDC architecture, the Company achieved end-to-end GaN solutions spanning high-voltage buses to GPU terminals. 650V devices are deployed for high-voltage AC-DC and DC-DC conversion, drastically boosting power supply efficiency and power density and breaking the power bottlenecks of server racks. 100V devices serve 48V-to-12V/5V power conversion, delivering dual improvements in power density and conversion efficiency. Currently, products entered large-scale delivery to multiple top-tier server and power supply manufacturers. Moving forward, shipment volumes will sustain rapid growth as the penetration rate of high-voltage DC architectures continues to climb. 2. New Energy Vehicles Automotive-grade products officially entered mass vehicle deployment. In the on-board power sector, 650V GaN solutions are adopted for OBC and DC-DC systems. Our self-developed automotive-grade encapsulated products were successfully applied in integrated bidirectional 6.6kW OBC + 3.5kW DC/DC systems, enabling the Group to gain access to the core supply chains of domestic new energy vehicles. High-voltage bidirectional GaN products facilitate the upgrade of on-board power supplies to single-stage high-efficiency architectures. In the intelligent driving sector, shipments of LiDAR devices recorded steady growth, covering mainstream intelligent driving vehicle models. Mass production was sequentially rolled out for application scenarios such as automotive LED headlamps, 48V power supplies and cabin charging systems, while validation of main drive inverters is progressing as scheduled. 3. Humanoid Robots The Company ’s medium- and low-voltage GaN solutions have become the mainstream technical route for robot joint actuators. 100V/150V devices and encapsulated products are widely integrated into joint motors, dexterous hands and servo power core modules. Compared with traditional silicon MOS solutions, such GaN products cut power losses and temperature rises, support ultra-high-frequency control, and improve robot response precision and endurance. During the Reporting Period, the Company deepened collaboration with multiple top-tier humanoid robot manufacturers and commenced large-scale deliveries, further solidifying its industry-leading position.
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9 4. Consumer Electronics The Group holds a globally leading market share in traditional 3C sectors including fast chargers, smartphones and laptops, consistently supporting the product iteration cycles of top-tier customers. Significant progress was made in the home appliance sector. We deepened strategic cooperation with leading domestic home appliance enterprises including Midea and Haier. Full product lines for air conditioners, refrigerators, washing machines and kitchen appliances were sequentially ramped up to mass production, enabling home appliances to achieve energy conservation, noise reduction and miniaturisation. Revenue from the emerging consumer applications including smart audio devices, electric bikes and wireless charging grew rapidly with the continuous expansion of our application scope. 5. Renewable Energy and Industrial Applications The energy storage and industrial sector becomes a core growth driver. The VGaN BMS solution entered mass production at our top-tier customers by virtue of compact form factors and low power loss. 650V devices are widely adopted in residential and portable energy storage systems. 1,200V high-voltage devices realised volume ramp-up in commercial and industrial energy storage as well as battery formation and grading equipment, emerging as the preferred solution for top-tier customers in this sector. In the photovoltaic sector, micro-inverter and bidirectional DC-DC solutions were launched successively. On the industrial side, landmark solutions including the 900W Buck-Boost solution are accelerating the substitution of silicon-based devices across industrial power supplies, servo drives and maglev flexible conveying platforms. (III) Iteration of Process Technology Platforms During the Reporting Period, the Company achieved phased milestones in the iteration of its process platforms, further broadening its technological moat. The R&D work on the 4.0-generation high- and low-voltage technology platform is advancing smoothly, with comprehensive optimisations targeting switching speed, on-resistance and manufacturing costs proceeding in line with schedules. Once mass-produced, this platform will further widen the Company ’s technological lead over industry competitors and facilitate deep penetration into a broader range of high-end application sectors. In parallel, specialised device platforms for automotive-grade products, bidirectional conduction and encapsulated ICs continue to mature and iterate, catering to customised demands across niche applications, raising product added value and deepening customer collaboration.
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10 (IV) Production and Supply Chain Management Drawing on its two production bases in Suzhou and Zhuhai, the Company continues to unlock the full end-to-end strengths of its IDM model. The Company maintained high-capacity utilisation, with overall production yield sustained above 95%, outperforming industry peers and enabling stable deliveries to downstream customers. On the production side, continuous process optimisation and equipment upgrades aim to reduce material loss ratios and lift energy utilisation efficiency. Coupled with iterative upgrades to process platforms, manufacturing costs may decline further. From a supply chain perspective, the Company operates a mature supplier governance system and a sound supply chain security system. It maintains long-term, stable partnerships with core suppliers. Meanwhile, the Company keeps advancing validation and introduction of domestically produced materials and equipment to substantially lower procurement costs and strengthen the supply chain ’s self-reliance, autonomy and operational stability. (V) Sales and Marketing Adopting a “direct sales + distribution ” dual-drive model, the Company has established targeted sector-specific and tiered service mechanisms. Centered on high-growth applications, it delivers customised solution packages to both top industry players and small and medium-sized customers. During the Reporting Period, the Group onboarded a total of 747 new customer projects, including 17 new direct sales customers and 2 authorised distributors, seeing stable improvement in customer base and retention performance. The Company has built an experienced and specialised service team. Drawing on its mature GaN technology reserves, the Company provides end-to-end services covering product selection, technical support, technical troubleshooting and after-sales assurance, alongside a fast-response mechanism for technical issues. Dedicated service teams are assigned to core strategic customers to coordinate project implementation, and track orders, delivery schedules and material progress for efficient collaboration. They can swiftly respond to customers ’ customisation demands and mobilise internal cross-functional resources to deliver targeted solutions, fully showcasing our professional service capacity and commitment to partnership.
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11 (VI) Business Outlook 1. Synchronised Capacity Expansion and Technology Upgrade to Reinforce IDM Manufacturing Advantages The Group will press ahead with construction and ramp-up of 8-inch silicon-based GaN wafer production capacity, optimising capacity allocation and enhancing large-scale manufacturing capabilities in response to shifting market demand to amplify the comprehensive IDM edge in supply assurance, cost control and product iteration. Concurrently, the Company will accelerate upgrades to advanced process platforms. Through continuous process optimisation, yield enhancement and production efficiency improvement, the Company will lower unit manufacturing costs steadily while upgrading product performance and strengthening overall market competitiveness. Over the long term, the Company will continuously improve its full-process technical capabilities spanning epitaxial materials, wafer manufacturing and packaging & testing, strengthen supply chain collaboration and self-sufficiency in critical processes, further consolidating its position as a world-leading GaN manufacturing platform. 2. Focus on High-Value Application Scenarios to Upgrade Product Portfolio and Solutions The Group will focus on core growth sectors including AI computing power, new energy vehicles, industrial energy, embodied intelligence and consumer electronics, accelerate product commercialisation and drive the evolution of GaN offerings from discrete devices to system solutions.
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12 3. Accelerate Global Footprint Expansion and Deepen Strategic Customer Collaboration With continuous efforts, the Group will push forward global market expansion, strengthen overseas sales networks, customer service frameworks and technical support capacity, expedite overseas customer certification and commercialisation, and improve brand influence in international markets. The Group will take further steps to deepen strategic collaboration with global-leading semiconductor enterprises, end-device manufacturers and industrial chain partners via joint R&D, product certification and supply chain coordination to jointly drive global adoption of GaN technology. Besides, the Group will continue to optimise its customer operation system, pursue multi-product cross-scenario cooperation with strategic customers to lift customer stickiness and collaboration depth. By accurately tapping customer demands and improving service responsiveness, the Company will deliver sustained customer value growth, driving steady expansion in revenue scale, profitability and global market share. III. FINANCIAL ANALYSIS The following table sets forth the comparative figures for the periods and dates indicated: Six months ended 30 June 2026 2025 (RMB’000) (RMB’000) Revenue 833,616 553,354 Costs (736,534) (515,506) Gross profit 97,082 37,848 Other net income 23,536 47,966 Selling and marketing expenses (48,748) (53,878) Administrative expenses (163,898) (245,509) Research and development expenses (185,125) (162,326) Loss from operations (277,153) (375,899) Finance costs (31,792) (52,507) Loss before taxation (308,945) (428,406) Income tax (134) (266) Loss for the period (309,079) (428,672) Other comprehensive income for the period (589) (105) Total comprehensive income for the period (309,668) (428,777)
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13 As at 30 June 2026 As at 31 December 2025 (RMB’000) (RMB’000) Total current assets 4,392,317 4,332,704 Total non-current assets 2,897,812 2,737,799 Total assets 7,290,129 7,070,503 Total current liabilities 1,303,851 819,567 Total non-current liabilities 2,113,817 2,040,345 Total liabilities 3,417,668 2,859,912 Total equity 3,872,461 4,210,591 Revenue During the Reporting Period, the total revenue of the Group was RMB833.6 million, representing an increase of 50.6% as compared with RMB553.4 million in the same period last year. This was mainly due to the Company ’s continued breakthroughs in GaN products across various application sectors and the rapid growth in customer demand. In particular: • Revenue from sales of GaN discrete devices and GaN ICs increased from RMB207.4 million in the same period last year to RMB230.5 million during the Reporting Period, representing a year-on-year increase of 11.1%, primarily driven by continuous expansion of application sectors. • Revenue from sales of GaN wafers increased from RMB108.1 million in the same period last year to RMB187.5 million during the Reporting Period, representing a year- on-year increase of 73.5%, primarily due to the diversifying GaN industrial ecosystem and a notable increase in orders from strategic customers. • Revenue from sales of GaN modules increased from RMB236.1 million in the same period last year to RMB411.8 million during the Reporting Period, representing a year- on-year increase of 74.4%, primarily driven by broad customer adoption due to the continuous iteration of module products resulting in expanding performance and cost advantages. Cost of Sales During the Reporting Period, the cost of sales of the Group increased by 42.9% from RMB515.5 million in the same period last year to RMB736.5 million, mainly attributable to the combined effect of higher product sales revenue and lower unit costs. Gross Profit and Gross Profit Margin During the Reporting Period, the Group ’s gross profit amounted to RMB97.1 million, representing an increase of 156.5% from the gross profit of RMB37.8 million for the same period last year. The gross profit margin turned from 6.8% in the same period last year to 11.6% during the Reporting Period. The improvement in gross profit margin was primarily due to higher revenue, the release of production scale effects, and continuous optimisation of manufacturing processes to reduce costs.
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14 Other Net Income During the Reporting Period, the Group ’s other net income amounted to RMB23.5 million, representing a decrease of 51% as compared with RMB48 million for the same period last year, mainly due to exchange losses from foreign exchange movements and reduced government grants for the current period. Selling and Marketing Expenses During the Reporting Period, the Group ’s selling and marketing expenses amounted to RMB48.7 million, representing a decrease of 9.6% as compared with RMB53.9 million for the same period last year, mainly attributable to a reduction in share-based payment expenses. Administrative Expenses During the Reporting Period, the Group ’s administrative expenses amounted to RMB163.9 million, representing a decrease of 33.2% as compared with RMB245.5 million for the same period last year, mainly due to a reduction in share-based payment expenses and professional fees. Research and Development Expenses During the Reporting Period, the Group ’s research and development expenses amounted to RMB185.1 million, representing an increase of 14% as compared with RMB162.3 million for the same period last year, mainly due to the Company ’s increasing investment in research and development to expand application sectors and strengthen technological advantages.
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15 Finance Costs During the Reporting Period, the Group ’s finance costs amounted to RMB31.8 million, representing a decrease of 39.4% as compared with RMB52.5 million for the same period last year, primarily due to lower interest rates resulting from the Company ’s optimisation of financing structure. Loss for the Period For the reasons mentioned above, the Group ’s loss for the period amounted to RMB309.1 million, representing a decrease of 27.9% as compared with the loss of RMB428.7 million for the same period last year. Liquidity and Capital Resources The Group ’s policy is to regularly monitor liquidity requirements and to ensure that it maintains sufficient reserves of cash and adequate committed lines of funding from major financial institutions to meet the liquidity requirements in the short and long term. As of 30 June 2026, the Group had RMB1,578.1 million in cash and cash equivalents, as compared to RMB879 million as of 31 December 2025. The Group ’s cash and cash equivalents primarily consist of bank deposits denominated in HKD, RMB and USD. During the Reporting Period, the Group ’s net inflow of cash flow from operating activities was RMB168.6 million, as compared to a net outflow of operating cash flow of RMB387.3 million for the same period last year. The Group ’s operating cash flow improved significantly, primarily due to the Group ’s continued revenue growth, improved profitability and increased operational efficiency.
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16 INDEBTEDNESS AND FINANCIAL RATIOS Loans and Borrowings As of 30 June 2026, the Group had total loans and borrowings of RMB2,602.6 million, representing an increase of RMB372.9 million as compared to 31 December 2025, primarily due to additional loans incurred to acquire production equipment and expand production scale. The Group ’s loans and borrowings were denominated in RMB. Lease Liabilities As of 30 June 2026, the Group recognized total lease liabilities of RMB66.9 million, representing a decrease of RMB5.5 million as compared to 31 December 2025, primarily because of the reduction in lease liability balance following rental payments. Financial Ratios Current ratio The Group ’s current ratio (calculated as current assets divided by current liabilities as of the end of the relevant period) decreased from 5.3 times as of 31 December 2025 to 3.4 times as of 30 June 2026, primarily due to an increase in trade payables and short-term borrowings arising from the expansion of production scale. Quick ratio The Group ’s quick ratio (calculated as current assets minus inventories divided by current liabilities as of the end of the relevant period) decreased from 4.2 times as of 31 December 2025 to 2.5 times as of 30 June 2026, primarily due to an increase in trade payables and short-term borrowings arising from the expansion of production scale. Net Gearing Ratio The Group ’s net gearing ratio (calculated as total borrowings minus cash and cash equivalents divided by total equity as of the end of the respective period and multiplied by 100%) decreased from 32.1% as of 31 December 2025 to 26.5% as of 30 June 2026, primarily due to a substantial increase in cash and cash equivalents at the end of the period. Financial Policies The management of the Group executes financial functions and continually monitors the Group ’s cash requirements from time to time. If the Group ’s cash requirements exceed the liquidity it holds at the time, the Group may seek credit facilities and external borrowings, or issue securities as it considers necessary and appropriate.
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17 Contingent Liabilities As of 30 June 2026, the Group did not have material contingent liabilities. Pledge of Assets As of 30 June 2026, the Group ’s pledged bank deposits amounted to RMB7.3 million, mainly representing funds pledged to banks for entrusted payments to suppliers. Save as disclosed above, as of 30 June 2026, the Group had no other assets pledged. Capital Expenditures The Group ’s capital expenditures were primarily used to purchase equipment for production expansion. During the Reporting Period, the Group ’s capital expenditures amounted to RMB398.2 million, representing an increase of RMB347.9 million compared with the same period last year. This was primarily due to the purchase of equipment for production expansion to continuously advance its capacity expansion. Capital Commitments As of 30 June 2026, the Group ’s capital commitments were RMB700.4 million (as of 31 December 2025: RMB159.1 million). The Group ’s capital commitments were primarily used for the purchase of equipment relating to capacity expansion. Foreign Exchange Risk The majority of the Group ’s revenues and most of its expenditures are denominated in RMB. Certain subsidiaries of the Group operate outside mainland China and use their respective local currencies as their functional currencies. The Group engages in certain transactions denominated in foreign currencies, which give rise to risks of exchange rate fluctuations. The Group currently does not have a foreign currency hedging policy. However, the management will monitor the foreign exchange risk and consider hedging significant foreign currency exposure when necessary. Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures During the Reporting Period, the Company had no material acquisitions or disposals of subsidiaries, associates or joint ventures.
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18 Significant Investments As at 30 June 2026, the Group had financial assets measured at fair value through other comprehensive income of RMB900.2 million, representing certain large-denomination certificates of deposit ( “CD”) invested by the Group in domestic PRC banks. Among these, the value of CDs subscribed with China Resources Bank of Guangdong Co., Ltd. ( “China Resources Bank ”) accounted for 5% or more of the Group ’s total assets, details of which are set out below: Bank of Subscription Product Type Date of Subscription Annualized Rate of Return Principal Subscribed as at 30 June 2026 Realised Return for the Six Months Ended 30 June 2026 Approximate Unrealised Return for the Six Months Ended 30 June 2026 Fair Value/ Carrying Amount as at 30 June 2026 Asset Ratio (RMB million) (RMB million) (RMB million) (RMB million) China Resources Bank CD 24 November 2025 2.00% 730 0 7.3406 738.841 10.13% Note: The asset ratio presented in the table above is calculated by dividing the fair value of the relevant product as at 30 June 2026 by the Group ’s total assets as at 30 June 2026. The above CDs are principal-guaranteed and interest-bearing wealth management products with fixed interest rates, which can be withdrawn in advance or disposed of to other investors in accordance with the bank ’s rules. The Group subscribed for the above large-denomination negotiable CDs for the purpose of fund management. Having considered, among other factors, the low risk profile and the expected return of the large-denomination negotiable CDs, the Company considers that such subscription can provide better returns than time deposits with commercial banks and improve the overall profitability of the Company. Save as disclosed above, as of the end of the Reporting Period, the Group had no material investments required to be disclosed under paragraph 32(4A) of Appendix D2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules ”). Future Plans for Material Investments or Capital Assets As of the date of this announcement, except for what was disclosed in the section headed “Future Plans and Use of Proceeds ” in the Prospectus, the announcement dated 28 July 2025 in relation to the completion of placing of new H shares under the general mandate and amendments to the Articles of Association, and the announcement dated 17 October 2025 in relation to the completion of placing of new H shares under the general mandate and amendments to the Articles of Association, the Group had no future plans for any material investments or capital assets.
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19 Human Resources As of 30 June 2026, the Group had a total of 1,391 employees and the majority of its employees were based in mainland China. The Group established a comprehensive set of internal management measures, outlining the procedures and criteria for recruitment, training, internal referrals, among others. The Group adopted various recruitment methods, including campus recruitment, online recruitment, other external recruitment channels as well as internal referrals and transfers. In addition to salaries and benefits, we generally provide performance-based bonuses for full-time employees. The Group has established a comprehensive system for employee training and development, including general training covering corporate culture, employee rights and responsibilities, workplace safety, data security and other logistics aspects, as well as specific training that improve employee knowledge and expertise in certain important areas related to our business. The Group is committed to making continual efforts to provide an engaging working environment for the employees.
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20 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the six months ended 30 June 2026 – unaudited (Expressed in RMB ’000) Six months ended 30 June Note 2026 2025 RMB’000 RMB’000 Revenue 3 833,616 553,354 Cost of sales (736,534) (515,506) Gross profit 97,082 37,848 Other net income 4 23,536 47,966 Selling and marketing costs (48,748) (53,878) Administrative expenses (163,898) (245,509) Research and development costs (185,125) (162,326) Loss from operations (277,153) (375,899) Finance costs 5(a) (31,792) (52,507) Loss before taxation 5 (308,945) (428,406) Income tax 6(a) (134) (266) Loss for the period attributable to equity shareholders of the Company (309,079) (428,672) Other comprehensive income for the period (after tax and reclassification adjustments) Item that is or may be reclassified subsequently to profit or loss: Exchange differences on translation of: – financial statements of overseas subsidiaries (589) (105) Total comprehensive income for the period attributable to equity shareholders of the Company (309,668) (428,777) Loss per share Basic and diluted (RMB) 7 (0.34) (0.49)
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21 CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 30 June 2026 – unaudited (Expressed in RMB ’000) As at 30 June As at 31 December Note 2026 2025 RMB’000 RMB’000 Non-current assets Property, plant and equipment 2,504,695 2,372,038 Right-of-use assets 109,905 116,474 Intangible assets 83,167 118,351 Other non-current assets 200,045 130,936 2,897,812 2,737,799 Current assets Inventories 8 1,069,250 897,493 Trade and other receivables 9 837,393 776,237 Financial assets at fair value through other comprehensive income ( “FVOCI”) 900,241 1,636,738 Pledged bank deposits 7,344 7,798 Time deposits – 135,483 Cash and cash equivalents 1,578,089 878,955 4,392,317 4,332,704 Current liabilities Trade and other payables 10 677,342 472,431 Loans and borrowings 11 615,067 336,102 Lease liabilities 11,442 11,034 1,303,851 819,567 Net current assets 3,088,466 3,513,137 Total assets less current liabilities 5,986,278 6,250,936
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22 As at 30 June As at 31 December Note 2026 2025 RMB’000 RMB’000 Non-current liabilities Loans and borrowings 11 1,987,489 1,893,606 Lease liabilities 55,452 61,372 Deferred income 70,876 85,367 2,113,817 2,040,345 NET ASSETS 3,872,461 4,210,591 Share capital 915,100 915,100 Reserves 2,957,361 3,295,491 TOTAL EQUITY 3,872,461 4,210,591
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23 CONSOLIDATED CASH FLOW STATEMENT For the six months ended 30 June 2026 – unaudited (Expressed in RMB ’000) Six months ended 30 June 2026 2025 RMB’000 RMB’000 Operating activities: Cash generated from/(used in) operations 168,737 (387,009) Income tax paid (134) (266) Net cash generated from/(used in) operating activities 168,603 (387,275) Investing activities: Payment for the purchase of property, plant and equipment and intangible assets (398,248) (50,373) Payments for acquisition of financial assets measured at FVPL (137,600) (172,513) Payments for acquisition of financial assets measured at FVOCI (15,000) (75,000) Proceeds from disposal of property, plant and equipment 1,000 – Proceeds from disposal of financial assets measured at FVPL 137,660 – Proceeds from disposal of financial assets measured at FVOCI 762,205 30,000 Interest of financial assets measured at FVOCI received 1,112 34 Proceeds from disposal of time deposits with maturity over 3 months 138,829 – Net cash generated from/(used in) investing activities 489,958 (267,852)
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24 Six months ended 30 June 2026 2025 RMB’000 RMB’000 Financing activities: Capital element of lease rentals paid (5,542) (5,704) Interest element of lease rentals paid (1,181) (1,322) Proceeds from loans and borrowings 550,970 1,355,794 Repayment of loans and borrowings (379,920) (789,070) Interest of loans and borrowings paid (30,962) (36,600) Payment for the purchase of shares held for Share Award Scheme (71,183) – Proceeds from issuance of H shares by over-allotment option, net of issuance costs – 44,488 Net cash generated from financing activities 62,182 567,586 Net increase/(decrease) in cash and cash equivalents 720,743 (87,541) Effect of foreign exchange rate changes (21,609) (12,195) Cash and cash equivalents at 1 January 878,955 1,524,954 Cash and cash equivalents at 30 June 1,578,089 1,425,218
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25 NOTES TO THE UNAUDITED INTERIM FINANCIAL REPORT (Expressed in Renminbi unless otherwise indicated) 1 GENERAL INFORMATION AND BASIS OF PREPARATION InnoScience (Suzhou) Technology Holding Co., Ltd.* (the “Company ”) (߅( ᘽψ)ʮ̡ ) was incorporated in Suzhou, Jiangsu Province, People ’s Republic of China (the “PRC”) on 21 July 2017 as a limited liability company. In September 2023, the Company was converted from a limited liability company into a joint stock limited liability company. The Company ’s shares were listed on the Main Board of the Stock Exchange of Hong Kong Limited (the “Stock Exchange ”) on 30 December 2024 (the “Listing ”). The Company and its subsidiaries (together, “the Group ”) are principally engaged in design, research and development, and manufacture of various types of Gallium Nitride ( “GaN”) power semiconductor products. This interim financial report has been prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, including compliance with Hong Kong Accounting Standard ( “HKAS”) 34, Interim financial reporting , issued by the Hong Kong Institute of Certified Public Accountants ( “HKICPA ”). It was authorised for issue on 28 August 2026. The interim financial report has been prepared in accordance with the same accounting policies adopted in the 2025 annual financial statements, except for the accounting policy changes that are expected to be reflected in the 2026 annual financial statements. Details of any changes in accounting policies are set out in note 2. The preparation of an interim financial report in conformity with HKAS 34 requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses on a year to date basis. Actual results may differ from these estimates. This interim financial report contains condensed consolidated financial statements and selected explanatory notes. The notes include an explanation of events and transactions that are significant to an understanding of the changes in financial position and performance of the Group since the 2025 annual financial statements. The condensed consolidated interim financial statements and the accompanying notes do not include all of the information required for a full set of financial statements prepared in accordance with HKFRS Accounting Standards. The interim financial report is unaudited, but has been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410, Review of interim financial information performed by the independent auditor of the entity , issued by the HKICPA. 2 CHANGES IN ACCOUNTING POLICIES The HKICPA has issued a number of amendments to HKFRS Accounting Standards that are first effective for the current accounting period. None of these developments have had a material effect on these financial statements. The Group has not applied any new standard or interpretation that is not yet effective for the current accounting period.
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26 3 REVENUE AND SEGMENT REPORTING (a) Revenue (i) Disaggregation of revenue Disaggregation of revenue from contracts with customers by major products is as follows: Six months ended 30 June 2026 2025 RMB’000 RMB’000 Revenue from contracts with customers within the scope of HKFRS 15 Disaggregated by major products – Sales of GaN Discrete Chips and GaN ICs 230,484 207,364 – Sales of GaN Wafers 187,472 108,081 – Sales of GaN Modules 411,775 236,095 – Others 3,885 1,814 833,616 553,354 Disaggregation of the Group ’s revenue from contracts with customers by the timing of revenue recognition is set out below: Six months ended 30 June 2026 2025 RMB’000 RMB’000 Point-in-time 832,805 553,354 Over-time 811 – 833,616 553,354 (ii) Revenue expected to be recognised in the future arising from contracts with customers in existence at the reporting date. The Group has applied the practical expedient in paragraph 121(a) of HKFRS 15 to its sales contracts for GaN power semiconductor products that the Group will be entitled to when it satisfies the remaining performance obligations under the contracts for sales of GaN power semiconductor products that had an original expected duration of one year or less.
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27 (b) Segment reporting HKFRS 8, Operating Segments , requires identification and disclosure of operating segment information based on internal financial reports that are regularly reviewed by the Group ’s chief operating decision maker for the purpose of resources allocation and performance assessment. On this basis, the Group has determined that it only has one operating segment which is the sales of GaN power semiconductor products. (i) Geographic information The following table sets out information about the geographical location of the Group ’s revenue from external customers. The geographical location of customers is based on the location at which the GaN power semiconductor products were sold. Six months ended 30 June 2026 2025 RMB’000 RMB’000 Chinese Mainland 796,651 489,640 Overseas 36,965 63,714 833,616 553,354 4 OTHER NET INCOME Six months ended 30 June 2026 2025 RMB’000 RMB’000 Bank interest income 9,907 16,198 Interest income from financial assets measured at FVOCI 11,820 300 Net gain on disposal of property, plant and equipment 179 – Net gain from financial assets measured at FVPL 60 2,070 Government grants (Note) 26,561 38,236 Net foreign exchange loss (24,785) (9,030) Others (206) 192 23,536 47,966 Note: For the period ended 30 June 2026, government grants primarily comprise subsidies received from the government for the encouragement of research and development projects and additional deduction on input value-added tax.
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28 5 LOSS BEFORE TAXATION Loss before taxation is arrived at after charging: (a) Finance costs: Six months ended 30 June 2026 2025 RMB’000 RMB’000 Interest on – loans and borrowings 30,611 51,185 – lease liabilities 1,181 1,322 Total interest expense 31,792 52,507 (b) Staff costs: Six months ended 30 June Note 2026 2025 RMB’000 RMB’000 Salaries, wages and other benefits 271,945 230,024 Contributions to defined contribution retirement plans (i) 16,697 13,167 Equity-settled share-based payment expenses 42,721 88,343 331,363 331,534 (i) Defined contribution retirement plans Employees of the Company and its subsidiaries are required to participate in a defined contribution retirement scheme administered and operated by the local municipal government. The Company and its subsidiaries contribute funds which are calculated on certain percentages of the average employee salary as agreed by the local municipal government to the scheme to fund the retirement benefits of the employees. The Group ’s contributions made to the defined contribution retirement scheme are non-refundable and cannot be used to reduce the future or existing level of contribution of the Group should any forfeiture be resulted from the schemes. The Group has no other material obligation for the payment of retirement benefits associated with the scheme beyond the annual contributions described above.
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29 (c) Other items: Six months ended 30 June Note 2026 2025 RMB’000 RMB’000 Cost of inventories 8(b) 734,771 515,506 Depreciation: – owned property, plant and equipment 199,862 226,843 – right-of-use assets 6,461 6,853 Amortisation of intangible assets 39,236 40,160 Research and development expenses (i) 185,125 162,326 (i) During the six months ended 30 June 2026, staff costs, depreciation expenses and amortisation expenses in research and development expenses are RMB150,696,000 (six months ended 30 June 2025: RMB141,853,000), which are also included in the total amounts disclosed separately above. 6 INCOME TAX IN THE CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (a) Taxation in the consolidated statements of profit or loss and other comprehensive income represents: Six months ended 30 June 2026 2025 RMB’000 RMB’000 Current tax: Provision for corporate income tax in respective jurisdictions 134 266 Deferred tax: Origination and reversal of temporary differences – – 134 266 7 LOSS PER SHARE (a) Basic loss per share Basic loss per share for the six months ended 30 June 2026 and 2025 is calculated by dividing the loss attributable to equity shareholders of the Company by the weighted average number of ordinary shares in issue. Six months ended 30 June 2026 2025 Ordinary shares in issue at 1 January 915,100 879,152 Effect of ordinary shares issued under issuance of ordinary shares by over-allotment option – 1,416 Effect of shares repurchased (1,696) – Effect of unvested restricted share units (2,663) (10,487) Weighted average number of ordinary shares at 30 June 910,741 870,081
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30 (b) Diluted loss per share For the six months ended 30 June 2026 and 2025, restricted share units were not included in the calculation of diluted loss per share, as their effect would have been anti-dilutive. Accordingly, diluted loss per share were the same as basic loss per share for both periods. 8 INVENTORIES (a) Inventories in the statements of financial position comprise: As at 30 June As at 31 December 2026 2025 RMB’000 RMB’000 Raw materials 37,445 30,817 Semi-finished products and WIP 247,258 253,838 Finished products 784,547 612,838 1,069,250 897,493 (b) The analysis of the amount of inventories recognised as an expense and included in profit or loss is as follows: Six months ended 30 June 2026 2025 RMB’000 RMB’000 Carrying amount of inventories used 745,391 528,370 Reversal of inventories write-down (10,620) (12,864) 734,771 515,506 9 TRADE AND OTHER RECEIVABLES As at 30 June As at 31 December 2026 2025 RMB’000 RMB’000 Trade receivables, net of loss allowance 535,278 559,016 Bills receivable 20,467 17,159 Bills receivable, measured at FVOCI 39,301 12,918 Prepayments 59,474 56,994 VAT recoverable 143,924 106,882 Other receivables and deposits, net of loss allowance 38,949 23,268 837,393 776,237 All of trade and other receivables are due from third parties and are expected to be recovered or recognised as expenses within one year. As at 30 June 2026 and 31 December 2025, the ageing analysis of trade receivables (which are included in trade and other receivables) based on the invoice date and net of loss allowance, is as follows:
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31 As at 30 June As at 31 December 2026 2025 RMB’000 RMB’000 Within 1 year 529,740 557,385 Over 1 year but less than 2 years 5,538 1,631 535,278 559,016 10 TRADE AND OTHER PAYABLES As at 30 June As at 31 December 2026 2025 RMB’000 RMB’000 Trade payables 204,695 176,544 Bills payables 117,765 – Accrued payroll 66,075 89,145 Tax payable 26,935 22,590 Payables for property, plant and equipment 90,405 63,929 Contract liabilities 51,728 19,038 Other payables and accruals 119,739 101,185 Trade and other payables 677,342 472,431 (a) All trade and other payables are due to third parties expected to be settled or recognised as income within one year or are repayable on demand. (b) As at 30 June 2026 and 31 December 2025, the ageing analysis of trade payables (which are included in trade and other payables), based on the invoice date, is as follows: As at 30 June As at 31 December 2026 2025 RMB’000 RMB’000 Within 3 months 200,163 172,665 After 3 months but within 6 months 1,556 1,034 After 6 months but within 12 months 280 136 After 12 months 2,696 2,709 204,695 176,544
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32 11 LOANS AND BORROWINGS (a) Loans and borrowings comprise: As at 30 June As at 31 December 2026 2025 RMB’000 RMB’000 Bank loans 2,602,556 2,229,708 (b) As of the end of each reporting period, loans and borrowings were repayable as follows: As at 30 June As at 31 December 2026 2025 RMB’000 RMB’000 Within 1 year or on demand 615,067 336,102 After 1 year but within 2 years 896,712 429,432 After 2 years but within 5 years 839,247 1,241,535 More than 5 years 251,530 222,639 1,987,489 1,893,606 2,602,556 2,229,708 (c) As of the end of each reporting period, loans and borrowings were secured as follows: As at 30 June As at 31 December 2026 2025 RMB’000 RMB’000 Secured bank loans (i) 1,181,130 1,427,151 Unsecured bank loans 1,421,426 802,557 2,602,556 2,229,708 (i) Loans and borrowings of the Group were secured by the following assets of the Group: As at 30 June As at 31 December 2026 2025 RMB’000 RMB’000 Property, plant and equipment 1,294,394 1,606,837 Right-of-use assets 36,479 47,590 1,330,873 1,654,427
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33 12 CAPITAL, RESERVES AND DIVIDENDS (a) Dividends (i) Dividends payable to equity shareholders of the Company attributable to the interim period: The Board of directors did not recommend a payment of an interim dividend for the six months ended 30 June 2026 (six months ended 30 June 2025: Nil). (ii) Nil dividends payable to equity shareholders of the Company attributable to the previous financial year, approved and paid during the interim period (six months ended 30 June 2025: Nil). (b) Equity settled share-based transactions In February 2024, the Group adopted a RSU scheme ( “the Scheme ”) to replace the share options schemes for purpose of providing incentives to eligible employees of the Group. And this replacement was deemed as a modification as the type of equity instrument granted was modified from share options to RSU. These RSUs shall vest over four years with 75% at the end of the third year and 25% at the end of the fourth year from the date of joining the Company or vest in the years upon the completion of the Company ’s initial public offering ( “IPO”), whichever is later. During the six months ended 30 June 2026, no RSU was granted (during the six months ended 30 June 2025: Nil) and a total number of 1,578,250 shares (for the six months ended 30 June 2025: 21,931,807 shares) were vested. As at 30 June 2026, a total of 6,379,285 shares (as at 31 December 2025: 8,342,535 shares) were unvested. (c) Shares held for Share Award Scheme Number of shares Amount Amount HK$’000 RMB’000 As at 1 January 2025 – – – Shares acquired for Share Award Scheme during the year 596,300 42,941 39,351 As at 31 December 2025 and 1 January 2026 596,300 42,941 39,351 Shares acquired for Share Award Scheme during the year 1,260,000 79,817 71,183 As at 30 June 2026 1,856,300 122,758 110,534 These shares of the Company were acquired and held by the Trustee of Share Award Scheme for the purpose of granting shares under the Share Award Scheme adopted by the Company. A total amount of RMB167,000,000 (six months ended 30 June 2025: nil) was paid to the Trustee for the six months ended 30 June 2026, with a balance of unutilised cash of RMB96,275,000 as at 30 June 2026 (31 December 2025: RMB591,000).
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34 13 FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (i) Financial assets and liabilities measured at fair value Fair value hierarchy The following table presents the fair value of the Group ’s financial instruments measured at the end of each reporting period on a recurring basis, categorised into the three-level fair value hierarchy as defined in HKFRS 13, Fair value measurement . The level into which a fair value measurement is classified is determined with reference to the observability and significance of the inputs used in the valuation technique as follows: – Level 1 valuations: Fair value measured using only Level 1 inputs i.e. unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date – Level 2 valuations: Fair value measured using Level 2 inputs i.e. observable inputs which fail to meet Level 1, and not using significant unobservable inputs. Unobservable inputs are inputs for which market data are not available – Level 3 valuations: Fair value measured using significant unobservable inputs The Group has a team performing valuations for the financial instruments categories into Level 3 of the fair value hierarchy. The team reports directly to the chief financial officer. Valuation assessment with analysis of changes in fair value measurement is prepared by the team at each reporting date and is reviewed and approved by the chief financial officer. Fair value at 30 June 2026 Fair value measurements as at 30 June 2026 categorised into Level 1 Level 2 Level 3 RMB’000 RMB’000 RMB’000 RMB’000 Recurring fair value measurement Financial assets at FVOCI: – Negotiable certificate of deposits with banks 900,241 – 900,241 – – Bills receivable, measure at FVOCI 39,301 – 39,301 – During relevant periods, there were no transfers between Level 1 and Level 2, or transfers into or out of Level 3. The Group ’s policy is to recognise transfers between levels of fair value hierarchy as at the end of reporting period in which they occur. (ii) Fair value of financial assets and liabilities carried at other than fair value The carrying amounts of the Group ’s financial instruments carried at cost or amortised cost were not materially different from their fair values as at 30 June 2026 and 31 December 2025. 14 COMMITMENTS Capital commitments outstanding at 30 June 2026 and 31 December 2025 not provided for in the financial statements were as follows: As at 30 June As at 31 December 2026 2025 RMB’000 RMB’000 Contracted for acquisition of property, plant and equipment 700,391 159,144
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35 15 NON-ADJUSTING EVENTS AFTER THE REPORTING PERIOD There were no material non-adjusting events after the reporting period. PURCHASE, SALE OR REDEMPTION OF LISTED SECURITIES OF THE COMPANY During the Reporting Period and as of the date of this announcement, neither the Company nor any of its subsidiaries purchased, sold or redeemed any listed securities of the Company (including sale or transfer of treasury shares). As at 30 June 2026, the Company or its subsidiaries did not hold any treasury shares. H SHARES FULL CIRCULATION On 3 June 2026, the Company completed the conversion of an aggregate of 373,841,270 domestic unlisted shares into H shares, and such converted H shares were listed on The Stock Exchange of Hong Kong Limited (the “Stock Exchange ”) on 4 June 2026. Immediately following the conversion and completion of the listing, the Company has an aggregate of 915,100,653 shares in issue, comprising 15,718,196 domestic unlisted shares and 899,382,457 H shares. For details of the full circulation of H shares, please refer to the Company ’s announcements dated 29 September 2025, 14 April 2026, 15 May 2026 and 3 June 2026. INTERIM DIVIDEND The Board has resolved not to declare an interim dividend for the six months ended 30 June 2026. COMPLIANCE WITH CORPORATE GOVERNANCE CODE The Company is committed to maintaining a high standard of corporate governance to safeguard the interests of shareholders and enhance corporate value and accountability. The Company has adopted the Corporate Governance Code contained in Appendix C1 to the Rules Governing the Listing of Securities on the Stock Exchange (the “Corporate Governance Code ”), setting out the principles of good corporate governance. To the best knowledge of the Directors, the Company has complied with applicable code provisions set out in Part 2 of the Corporate Governance Code for the Reporting Period. The Board will continue to review and monitor the Company ’s corporate governance practices to ensure compliance with the Corporate Governance Code and maintain high standards of corporate governance practices. COMPLIANCE WITH MODEL CODE The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers contained in Appendix C3 to the Listing Rules (the “Model Code ”) as the code of conduct for securities transactions by Directors. Having made specific enquiry by the Company, each of the Directors acknowledged that they had complied with the Model Code during the Reporting Period.
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36 USE OF PROCEEDS FROM LISTING On 30 December 2024, the H Shares of the Company were listed on the Main Board of the Stock Exchange. After deducting underwriting fees, commissions and other offering expenses, the net proceeds from the Global Offering and the exercise of the over-allotment option (for details, please refer to the over-allotment announcement of the Company dated 22 January 2025) (the “Net Proceeds from Global Offering ”) amounted to approximately HK$1,351.96 million. The Net Proceeds from Global Offering will be utilized in accordance with the plans disclosed in the section headed “Future Plans and Use of Proceeds ” in the Prospectus, namely: Item Percentage Allocation of Net Proceeds from Global Offering Unutilized proceeds as of 31 December 2025 Utilized proceeds during the Reporting period Unutilized proceeds as of the end of the Reporting Period Expected timetable for the fully utilizing of unutilized proceeds (HK$ million) (HK$ million) (HK$ million) (HK$ million) Expand our production capacity of the 8-inch GaN wafer from 12,500 wafers per month as of 30 June 2024 to 70,000 wafers per month over the next five years, purchase and upgrade equipment and machinery for production and recruit manufacturing personnel 60.0% 811.18 570.71 472.55 98.16 By the end of 2029 R&D and expansion of our product portfolio to increase the penetration rate of GaN products in end markets, such as consumer electronics, renewable energy and industrial applications, automotive electronics and data center 20.0% 270.39 210.31 29.37 180.94 By the end of 2029 Expand the global distribution network of our GaN products 10.0% 135.20 110.45 22.45 88.00 By the end of 2029 Working capital and other general corporate purposes 10.0% 135.19 0.00 0.00 0.00 By the end of 2029 Total 100% 1,351.96 891.47 524.37 367.10 Note: Amounts have been rounded to the nearest two decimal places. Any discrepancies between the total shown and the sum of the amounts listed in the table are due to rounding.
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37 In order to improve capital utilization efficiency, make reasonable use of the Net Proceeds from Global Offering, maximize the return on surplus cash generated therefrom and safeguard the interests of shareholders, in 2025 and during the Reporting Period, the Group used the proceeds from the Global Offering to purchase large-denomination CDs and structured deposits totalling RMB75 million and RMB137.6 million from licensed banks in the PRC, all of which are principal- guaranteed and interest-bearing wealth management products. Owing to an inadvertent oversight and insufficient understanding of the classification of wealth management products, the Company mistakenly believed that such wealth management products were similar in nature to time deposits, resulting in a temporary deviation from the intended use of the Net Proceeds from Global Offering. All of such wealth management products have been disposed or redeemed upon maturity (for details, please refer to the Company ’s announcement issued on 28 August 2026). The Group has placed them together with the unutilized Net Proceeds from Global Offering in short-term interest- bearing accounts with licensed commercial banks and/or other authorized financial institutions, and will gradually apply the amount unutilized in accordance with the intended purposes as stated in the Prospectus. We will comply with the PRC laws in relation to foreign exchange registration and remittance of proceeds. USE OF PROCEEDS FROM THE FIRST PLACING OF H SHARES On 28 July 2025, the Company completed its first H Share placing (the “First H Share Placing ”). After deducting commissions and estimated expenses, the net proceeds from the First H Share Placing ( “Net Proceeds from First H Share Placing ”) amounted to approximately HK$543.55 million. The proposed uses as stated in the announcement of the completion of the First H Share Placing published on 28 July 2025 (the “Announcement of the Completion of First H Share Placing ”) and actual utilization of the Net Proceeds from First H Share Placing are set out below: Intended uses of Net Proceeds from First H Share Placing Allocation of Net Proceeds from First H Share Placing Approximate percentage of total Net Proceeds from First H Share Placing Unutilized proceeds as of 31 December 2025 Utilized proceeds during the Reporting Period Unutilized proceeds as of the end of the Reporting Period Expected timetable for the full utilization of unutilized proceeds (HK$ million) (HK$ million) (HK$ million) (HK$ million) (1) Support the Group ’s product upgrade and iteration, expand technological R&D for new product applications to enhance product competitiveness, and increase the penetration rate of GaN products in end markets 271.78 50% 199.82 104.67 95.14 On or before 31 December 2028 (2) Repayment of existing interest-bearing bank liabilities 135.89 25% 0.00 0.00 0.00 On or before 31 December 2026 (3) Supplementing working capital and general corporate purposes 135.89 25% 0.00 0.00 0.00 On or before 31 December 2025 Total 543.55 100% 199.82 104.67 95.14 Note: Amounts have been rounded to the nearest two decimal places. Any discrepancies between the total shown and the sum of the amounts listed in the table are due to rounding.
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38 During the Reporting Period, we have placed the unutilized Net Proceeds from First H Share Placing in short-term interest-bearing accounts with licensed commercial banks and/or other authorized financial institutions, and will gradually apply the amount unutilized in accordance with the intended purposes as stated in the Announcement of the Completion of First H Share Placing. We will comply with the PRC laws in relation to foreign exchange registration and remittance of proceeds. USE OF PROCEEDS FROM THE SECOND PLACING OF H SHARES On 17 October 2025, the Company completed its second H Share placing (the “Second H Share Placing ”). After deducting commissions and estimated expenses, the net proceeds from the Second H Share Placing amounted to approximately HK$1,550.425 million ( “Net Proceeds from Second H Share Placing ”). The proposed uses as stated in the announcement of the completion of the Second H Share Placing published on 17 October 2025 (the “Announcement of the Completion of Second H Share Placing ”) and actual utilization of the Net Proceeds from Second H Share Placing are set out below: Intended uses of Net Proceeds from Second H Share Placing Allocation of Net Proceeds from Second H Share Placing Approximate percentage of total Net Proceeds from Second H Share Placing Unutilized proceeds as of 31 December 2025 Utilized proceeds during the Reporting Period Unutilized proceeds as of the end of the Reporting Period Expected timetable for the full utilization of unutilized proceeds (HK$ million) (HK$ million) (HK$ million) (HK$ million) (1) Capacity expansion 482.26 31% 482.26 0.00 482.26 On or before 31 December 2028 (2) Repayment of interest-bearing liabilities 376.24 24% 287.82 287.82 0.00 On or before 31 December 2028 (3) Working capital and general corporate purposes 691.93 45% 457.56 257.56 200.00 On or before 31 December 2028 a. Salaries, social insurance, housing provident funds and other human resources expenses 202.15 13% 147.94 147.94 0.00 On or before 31 December 2028 b. Payments to suppliers and service providers 289.78 19% 109.63 109.63 0.00 On or before 31 December 2028 c. Potential onshore and offshore investments 200.00 13% 200.00 0.00 200.00 On or before 31 December 2026 Total 1,550.43 100% 1,227.64 545.39 682.26 Note: Amounts have been rounded to the nearest two decimal places. Any discrepancies between the total shown and the sum of the amounts listed in the table are due to rounding.
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39 In order to improve capital utilization efficiency, make reasonable use of the Net Proceeds from Second H Share Placing, maximize the return on surplus cash generated therefrom and safeguard the interests of shareholders, in 2025, the Group used the proceeds from the Second H Share Placing to purchase large-denomination negotiable CDs and structured deposits totalling RMB1,099 million from licensed banks in the PRC, all of which are principal-guaranteed interest-bearing wealth management products. Owing to an inadvertent oversight and insufficient understanding of the classification of wealth management products, the Company mistakenly believed that such wealth management products were similar in nature to time deposits, resulting in a deviation from the intended use of the Net Proceeds from Second H Share Placing. The Group will complete the transfer or withdrawal of such wealth management products as soon as possible by September 2026 maturity (for details, please refer to the Company ’s announcement issued on 28 August 2026), and place them together with the unutilized Net Proceeds from Second H Share Placing in short- term interest-bearing accounts with licensed commercial banks and/or other authorized financial institutions, and will gradually apply the amount unutilized in accordance with the intended purposes as stated in the Second H Share Placing Announcements. We will comply with the PRC laws in relation to foreign exchange registration and remittance of proceeds. EVENTS AFTER THE REPORTING PERIOD From 30 June 2026 to the date of this announcement, there has been no material adverse change in our financial or trading position or prospects, and there has been no event which would materially affect the data set out in the Group ’s consolidated financial statements in this announcement. Save as disclosed in this announcement, there were no other significant subsequent events affecting the Group from 30 June 2026 to the date of this announcement. REVIEW OF INTERIM RESULTS BY AUDIT COMMITTEE The Company has established the audit committee (the “Audit Committee ”) with written terms of reference in compliance with Rules 3.21 and 3.22 of the Listing Rules and Code Provisions D.3.3 of the Corporate Governance Code. The Audit Committee consists of 3 independent non-executive Directors including Mr. Wong Hin Wing, MH, JP, Dr. Yi Jiming and Dr. Chan, Philip Ching Ho, and is currently chaired by Mr. Wong Hin Wing, MH, JP with appropriate professional qualifications as required under Rules 3.10(2) and 3.21 of the Listing Rules. The Audit Committee has reviewed the unaudited interim results of the Group for the six months ended 30 June 2026, and confirmed that all applicable accounting principles, standards and requirements have been complied with and that adequate disclosures have been made. SCOPE OF WORK OF KPMG The Group ’s interim financial report for the six months ended 30 June 2026 is unaudited but has been reviewed by the Company ’s auditor, KPMG, Certified Public Accountants, in accordance with Hong Kong Standard on Review Engagements 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity ” issued by the HKICPA.
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40 PUBLICATION OF INTERIM RESULTS AND INTERIM REPORT The interim results announcement is published on the websites of the Stock Exchange (www.hkexnews.hk) and the Company (www.innoscience.com). The interim report of the Company for the six months ended 30 June 2026, containing all the information required by the Listing Rules, will be dispatched to shareholders who request printed copies and made available on the above websites in due course. By order of the Board InnoScience (Suzhou) Technology Holding Co., Ltd. Dr. Weiwei Luo Chairperson of the Board and Executive Director PRC, 28 August 2026 As at the date of this announcement, the Board of the Company comprises Dr. Weiwei Luo, Mr. Jay Hyung Son, Dr. Wu Jingang and Mr. Zhong Shan as executive directors, Dr. Wang Can, Ms. Zhang Yanhong and Ms. Cui Mizi as non-executive directors, and Mr. Wong Hin Wing, MH, JP, Dr. Yi Jiming, Dr. Yang, Simon Shi-Ning and Dr. Chan, Philip Ching Ho as independent non-executive directors. Certain amounts and percentage figures included in this announcement have been subject to rounding. Accordingly, figures shown as totals in certain tables may not be an arithmetic aggregation of the figures preceding them. Any discrepancies in any table or chart between the total shown and the sum of the amounts listed are due to rounding. This announcement contains certain forward-looking statements. These forward-looking statements are based on information currently available to the Group or the current belief, expectations and assumptions of the Board. These forward-looking statements are subject to risks, uncertainties and other factors beyond the Company ’s control, which may cause actual results or performance to differ materially from those expressed or implied in such forward-looking statements. In light of the risks and uncertainties, the inclusion of forward-looking statements in this announcement should not be regarded as representations by the Board or the Company that the plans and objectives will be achieved, and Shareholders and investors of the Company should not place undue reliance on such statements.