Farsoon Technologies (SSE STAR: 688433) reported third-quarter 2026 revenue of RMB169.5 million on 29 October 2026, up 6.76% year over year (Q3 2026 report, CNINFO).
Growth slowed sharply. Nine-month revenue was RMB510.0 million, up 28.11% from RMB398.1 million. That puts first-half revenue at RMB340.5 million, so the third quarter grew far slower than the first half.
Q3 net profit attributable to shareholders was RMB11.1 million, up 10.87%. Pre-tax profit fell 43.08% to RMB6.7 million. Farsoon attributes the drop to higher staff costs, higher share-based payment expense and lower government subsidies. Nine-month R&D spend was RMB107.1 million, 21.0% of revenue.
The balance sheet carries the signal. Inventory rose to RMB622.0 million at 30 September from RMB437.3 million at the end of 2025, up 42%. Accounts receivable rose to RMB454.6 million from RMB368.0 million. Contract liabilities, which hold customer prepayments, fell to RMB102.5 million from RMB139.5 million.
Nine-month operating cash flow was −RMB145.2 million, against −RMB22.9 million a year earlier. Farsoon cites a larger inventory build and higher labour costs. Cash and equivalents fell to RMB389.0 million from RMB789.3 million, while short-term financial assets rose to RMB154.0 million from RMB35.0 million. Capex paid in nine months was RMB157.3 million.
Farsoon is also seeking new equity for capacity. On 8 October it cut its planned private placement to no more than RMB2.94 billion from RMB3.91 billion. The money is earmarked for machine production capacity, a metal AM service platform and overseas operations centres (Sina Finance on the 8 October notice). The placement still needs Shanghai Stock Exchange approval and CSRC registration (Farsoon notice 2026-052, 9 October 2026).
Why it matters: Farsoon is building inventory and raising money for more machine capacity while prepayments shrink. In its reply to the exchange’s inquiry, Farsoon said the fourth quarter has accounted for up to 78.90% of annual revenue, because state-owned customers complete acceptance at year end (Sina Finance summary of the inquiry reply). Q4 order conversion, not factory space, is the test for this capacity plan.
Sources: Farsoon 2026 Q3 report (29 Oct 2026, CNINFO) · Farsoon notice 2026-052 on the placement review (9 Oct 2026)
Not investment advice.
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