Net profit soared by 274%! AI computing power "shovel sellers" VGT's 2025 annual report exploded, lavishly distributing 1.7 billion in dividends | Financial report insights

With the explosion of artificial intelligence computing power infrastructure, the upstream PCB (Printed Circuit Board) industry has ushered in an epic prosperity cycle. PCB manufacturer VGT has delivered an impressive annual report.

On March 12, VGT released its 2025 annual report, showing that the company achieved an operating income of 19.292 billion yuan for the year, a year-on-year increase of 79.77%; the net profit attributable to shareholders of the listed company reached 4.312 billion yuan, a staggering increase of 273.52% year-on-year.

Highlights of the report are as follows:

• Revenue surpasses the 10 billion yuan threshold: Annual revenue reached 19.292 billion yuan, nearly doubling from 10.731 billion yuan in 2024. Quarterly, it showed a steady upward trend, with fourth-quarter revenue reaching 5.175 billion yuan, setting a new historical high for a single quarter.
• Explosive profit performance: Net profit attributable to the parent company soared from 1.154 billion yuan in 2024 to 4.312 billion yuan, with a year-on-year increase of 273.5%. This growth rate far exceeds the revenue growth rate, demonstrating a strong operating leverage effect. Notably, the net profit after deducting non-recurring items was 4.304 billion yuan, a year-on-year increase of 277.07%, indicating that profit growth was entirely driven by core business operations.
• Abundant cash flow: The net cash flow generated from operating activities reached 4.603 billion yuan, a year-on-year increase of 238.85%. Particularly in the fourth quarter, the single-quarter cash flow reached 2.219 billion yuan, indicating that the company holds significant bargaining power and collection capability within the industry chain.
• Generous shareholder returns: Alongside high performance growth, the company introduced a highly sincere dividend plan—proposing a cash dividend of 20 yuan (including tax) for every 10 shares, totaling approximately 1.74 billion yuan in cash distribution. Based on the current stock price, the dividend yield is quite attractive.
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This financial report clearly reveals a trend: VGT's performance explosion is not merely a simple recovery of the industry cycle, but is deeply tied to artificial intelligence and high-performance computing (HPC), which are currently the most certain growth tracks. Against the backdrop of surging AI computing power demand, VGT has positioned itself as a crucial "invisible champion" behind computing giants like NVIDIA and AMD, thanks to its technology in high-end HDI (High-Density Interconnect) and high-layer boards.

Volume and Price Rise Together, Profit Elasticity Fully Released

From a three-year perspective, VGT's growth curve shows a steep upward trend. Operating income increased from 7.931 billion yuan in 2023 to 10.731 billion yuan in 2024, and further jumped to 19.292 billion yuan in 2025, nearly quadrupling in two years; net profit attributable to the parent company rose from 671 million yuan in 2023 to 1.154 billion yuan in 2024, and soared to 4.312 billion yuan in 2025, with a three-year increase of over 5 times.

The sustained profit growth rate significantly exceeds the revenue growth rate, indicating that the company has a significant profit leverage effect driven by the release of scale effects and the increase in the proportion of high-margin products. The weighted average return on equity (ROE) rose from 13.95% in 2024 to 35.56% in 2025, an increase of over 21 percentage points, becoming a core note for measuring the quality of capital return improvement Basic earnings per share rose from 1.34 yuan to 5.01 yuan, a year-on-year increase of 273.88%, setting a new historical high.

Operating at a high level throughout the year, Q4 cash flow surges

From a quarterly distribution perspective, the company's revenue showed a balanced upward trend: Q1 to Q4 achieved 4.312 billion, 4.719 billion, 5.086 billion, and 5.175 billion yuan respectively, with a continuous increase quarter-on-quarter, reflecting full orders and orderly release of production capacity.

In terms of net profit, Q2 ranked first with 1.222 billion yuan, while Q3 and Q4 recorded 1.102 billion and 1.067 billion yuan respectively. Although there was a slight decline, the overall level remained high, without the common "high in the front and low in the back" characteristic.

Notably, cash flow performance is worth attention: Q4 operating cash flow net amount reached 2.219 billion yuan, accounting for 48% of the annual total; the annual operating cash flow was 4.603 billion yuan, with a ratio to net profit of 4.312 billion yuan exceeding 1, demonstrating strong collection capability and operational quality.

AI computing power reshapes the PCB landscape, high-end products see both volume and price increases

The PCB industry is undergoing profound structural changes driven by the AI technology revolution. According to Prismark data, the global PCB output value is expected to grow by 15.4% year-on-year in 2025, with HDI boards growing by 25.6%, multilayer boards by 18.2%, while ordinary single and double-sided boards only grow by 5.6%—the differentiation in growth rates between high-end and low-end products is accelerating the reshaping of the industry competitive landscape.

Looking ahead to 2029, the annual compound growth rate of the AI server-related PCB market is expected to reach 18.7%; the annual compound growth rate of AI-related multilayer boards with 18 layers or more is expected to reach as high as 33.8%, far exceeding the overall average level of 8.2% in the PCB industry. This means that manufacturers that strategically position themselves in high-layer, high-density PCBs will continue to enjoy growth dividends far exceeding the industry average in the next five years.

The PCB output value in mainland China is expected to reach 48.459 billion USD in 2025, accounting for over 57% of the global total, further highlighting the industry's concentration advantage. Shenghong Technology, as a leading domestic manufacturer, is undoubtedly a beneficiary of this trend