Yiqi Turns Profitable in Q2, H1 EPS Loss of NT$0.3; Continues Investment in AI Vision Products

Yiqi (7402-TW), focusing on visual intelligence platforms, AI, and defense imaging, turned profitable in the second quarter of 2026, reversing losses from both the previous quarter and the same period in 2025. The company posted a quarterly net profit of NT$3.59 million, or NT$0.1 per share. However, Yiqi still incurred a net loss of NT$10.6 million in the first half of 2026, resulting in an EPS loss of NT$0.3.

In Q2 2026, Yiqi recorded revenue of NT$125 million with a gross margin of 37.29%, up 11.58 percentage points sequentially and 4.95 percentage points year-on-year. This marked a turnaround to profitability compared to the prior quarter and the same period last year, with a net profit of NT$3.59 million and EPS of NT$0.1.

For the first half of 2026, revenue reached NT$226 million with a gross margin of 32.1%, down 3.13 percentage points year-on-year. The company reported a net loss of NT$10.6 million for H1, with an EPS loss of NT$0.3.

Yiqi attributed its improved profitability in Q2 2026 primarily to the upgrade of its OBM product portfolio. The BCC5000, equipped with 4K high-definition imaging and cloud-based remote management, continued expanding in European and American construction markets, enhancing overall gross profit structure. Additionally, proactive recognition of obsolete inventory and inventory write-downs in Q1 led to improved inventory quality, with benefits becoming evident this quarter.

Regarding its OBM brand, BCC5000 remains Brinno’s flagship model for entering large-scale construction, remote project management, and long-term image documentation markets. As the product line evolves from traditional time-lapse cameras to advanced 4K cloud-connected time-lapse systems, construction SaaS services, and long-term project image management applications, Yiqi is pushing a dual-engine model combining hardware sales and cloud subscriptions to gradually increase OBM revenue share and improve profitability.

Looking ahead to Q3 2026, Yiqi will continue its annual operational focus on improving business fundamentals, expanding its OBM brand, and advancing software-hardware integration. For the Brinno brand, the company will further promote BCC5000 4K cloud time-lapse cameras in European and American construction markets and participate in Europe’s largest broadcast camera exhibition in the Netherlands in September with its European distributor to enhance brand visibility. The construction SaaS cloud smart building platform has completed internal testing and will begin global closed beta trials, aiming for official launch before year-end. By deeply integrating hardware and software, the platform is expected to generate stable recurring subscription revenue.

In military imaging products, Yiqi will continue investing in digital starlight night vision, drone tri-spectral cameras, and advanced image integration technologies. Leveraging low-power image processing, firmware development, and system integration capabilities accumulated through innovative ODM projects, the company aims to transition military imaging products from co-development and custom design toward higher-margin OBM branded models. In addition to pursuing domestic procurement contracts, Yiqi plans to introduce digital night vision cameras into European and American project markets via Brinno’s overseas distribution network.

In the field of visual AI, Yiqi has developed a new Edge AI Camera designed for real-time AI image recognition at the device level, supporting flexible configuration of camera function modules based on user needs. DVT sample testing is scheduled for Q3. In the second half of the year, the company will continue participating in international exhibitions in the Netherlands and other locations with overseas distributors, using both physical events and digital marketing to deepen end-market penetration.