Huaqin (603296) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 reached RMB 83.94 billion, up 113.06% year-over-year, driven by significant expansion in business scale and product shipments.

• Net profit attributable to shareholders was RMB 1.89 billion, up 46.30% year-over-year; adjusted net profit (excluding non-recurring items) rose 47.95% to RMB 1.51 billion.

• Gross margin remained stable despite rapid revenue growth; overall business health and profitability continued to improve.

• Major business lines include smart terminals, high-performance computing, AIoT, automotive electronics, and industrial products, all showing robust growth.

Financial highlights

• Operating income: RMB 83.94 billion, up 113.06% year-over-year.

• Net profit attributable to shareholders: RMB 1.89 billion, up 46.30% year-over-year.

• Operating cash flow: -RMB 1.52 billion, down 246.20% year-over-year, mainly due to increased cash outflows for raw material procurement.

• Total assets: RMB 94.99 billion, up 24.50% from end-2024.

• Net assets attributable to shareholders: RMB 23.59 billion, up 4.65% from end-2024.

• Basic and diluted EPS: RMB 1.86, up 46.46% year-over-year.

• Adjusted EPS (excluding non-recurring items): RMB 1.49, up 47.52% year-over-year.

Outlook and guidance

• Management expects continued growth in smart hardware, high-performance computing, and AIoT, leveraging strong R&D and global supply chain capabilities.

• Ongoing expansion in overseas manufacturing and supply chain resilience to mitigate global uncertainties.

• Focus on new growth areas: automotive electronics, software, and robotics.