Hygon Information Technology (688041) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached RMB 9.10 billion, up 66.52% year-over-year, driven by AI and domestic chip demand growth.

• Net profit attributable to shareholders was RMB 1.80 billion, up 49.69% year-over-year.

• R&D investment increased 55.05% to RMB 2.65 billion, representing 29.15% of revenue.

• High-end processor products expanded market share, with strong performance in both CPU and DCU lines.

Financial highlights

• Operating income: RMB 9.10 billion (+66.52% YoY); net profit: RMB 1.80 billion (+49.69% YoY).

• Operating cash flow: -RMB 427.54 million, down from +RMB 2.18 billion YoY, due to increased inventory and procurement.

• Basic and diluted EPS: RMB 0.78 (+50% YoY); weighted average ROE: 7.56% (+1.81pp YoY).

• Gross margin: 55.2% (calculated from revenue and cost figures).

• Net assets: RMB 25.37 billion (+12.8% from year-end 2025).

Outlook and guidance

• Management expects continued growth driven by AI, large model acceleration, and domestic chip commercialization.

• Ongoing focus on R&D, product iteration, and ecosystem expansion to maintain industry leadership.