Lens Technology Posts 49.52% Drop in First-Half Net Profit, Faces Backlash Over Dividend, Buyback and Incentive Plan

Lens Technology reported first-half 2026 revenue of 28.866 billion yuan, down 12.42% year on year, while net profit attributable to shareholders fell 49.52% to 577 million yuan and non-GAAP net profit dropped 70.45% to 278 million yuan, according to Jiemian News. The company said its second quarter turned profitable, but smartphone and computer-related revenue, its largest business, fell 17.67% as memory-chip price increases weakened end-demand. It also booked 492 million yuan in foreign-exchange losses from the yuan's rapid appreciation against the U.S. dollar, while government subsidies of 203 million yuan accounted for 35% of net profit. Despite the earnings decline, Lens Technology proposed an interim dividend of 1 yuan per 10 shares, totaling about 526 million yuan and equal to 91.22% of its unaudited first-half net profit. Based on the controlling family's 58.58% stake, more than 300 million yuan before tax would go to the founders' family. The company also said a 100 million yuan share-buyback commitment announced on April 17 had not been carried out by July 28, and its revised equity incentive plan would grant about 85.57 million A shares to 2,258 participants at 19.91 yuan per share, with revenue targets for 2026-2028 but no profit hurdle. The plan is expected to generate 1.138 billion yuan in share-based payment expenses from 2026 to 2029. Lens Technology said its new businesses are still too small to offset the decline in its core consumer-electronics operations. New-energy vehicle and cockpit revenue rose 6.56% to 3.372 billion yuan, but accounted for only 11.68% of total revenue, while other emerging businesses each contributed less than 10%. The company also said it completed or advanced three acquisitions in six months, including a 2.20 Hong Kong dollar per share bid for 27.81% of Jetup International for 734 million Hong Kong dollars, the 316 million yuan purchase of 89.98% of Tongsheng Optoelectronics completed in July 2026, and a planned takeover of PMG that would give it more than 95% control of Yuan Shi Technology by the third quarter.