Computing Power Demand Continues to Expand: Hygon Information Technology's H1 Revenue Rises 66.52% Year-on-Year, Net Profit Increases 49.69% | Financial Report Insights

The leading domestic chipmaker delivered a semi-annual report that exceeded expectations, with performance growth significantly accelerating due to the continuous expansion of domestic computing power demand.

Hygon Information Technology disclosed its 2026 semi-annual report on Thursday. Operating revenue in the first half reached RMB 9.099 billion, a year-on-year increase of 66.52%, approaching the RMB 10 billion mark; net profit attributable to shareholders of the listed company was RMB 1.798 billion, up 49.69% year-on-year. The revenue growth rate far exceeded the profit growth rate, indicating that the company is still in a phase of high-investment expansion.

The strong revenue growth confirms the sustained high prosperity of the domestic computing power market. As AI applications accelerate their landing, domestic enterprises' procurement demand for local computing power chips continues to release volume, providing ample market space for Hygon Information Technology.

Revenue and Profit Both Accelerate

During the reporting period, Hygon Information Technology achieved revenue of RMB 9.099 billion, a significant jump from RMB 5.464 billion in the same period last year. Total profit amounted to RMB 2.163 billion, a year-on-year increase of 31.96%; net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 1.631 billion, up 49.67% year-on-year, basically consistent with the net profit growth rate, indicating relatively solid quality of performance growth.

Basic earnings per share were RMB 0.78, a year-on-year increase of 50.00%. The weighted average return on equity rose to 7.56%, an increase of 1.81 percentage points compared to the same period last year, showing improved profitability.

As of the end of the reporting period, the company's total assets were RMB 36.034 billion, a slight increase of 1.11% from the end of the previous year; net assets attributable to shareholders of the listed company were RMB 25.373 billion, an increase of 12.80% from the end of the previous year.

High R&D Investment, Cash Flow Under Pressure

Hygon Information Technology continued its strategy of high-intensity R&D investment. During the reporting period, R&D expenditure accounted for 29.15% of operating revenue. Although this decreased from 31.31% in the same period last year, the absolute amount rose in tandem with revenue expansion, showing the company's continued emphasis on underlying chip technology research and development.

Notably, the net cash flow from operating activities was -RMB 428 million, compared to a positive RMB 2.177 billion in the same period last year, representing a significant year-on-year turn to negative. This change is usually related to increased inventory stocking and accounts receivable brought about by business scale expansion, and investors may need to pay attention to subsequent collection progress.

Stable Shareholding Structure, Concentrated Institutional Holdings

In terms of shareholding structure, as of the end of the reporting period, Hygon Information Technology had a total of 133,170 shareholders. The pattern of the top three shareholders remained unchanged. Sugon Information Industry Co., Ltd. ranked as the largest shareholder with a shareholding ratio of 27.96%, Tianjin Haifu Tianding Technology Partnership (Limited Partnership) held 10.81%, and Chengdu Industrial Investment Group Co., Ltd. held 7.21%. Chengdu High-Tech Investment Group Co., Ltd. and Chengdu High-Tech Jicui Technology Co., Ltd. jointly held approximately 9.79%, and the two are acting in concert.

Guoxin Investment Co., Ltd. entered the top ten with a shareholding of 0.65%, reflecting the strategic layout of national team capital in the domestic chip sector. ChinaAMC SSE STAR Market 50 ETF also appeared among the top ten shareholders, with a shareholding ratio of 0.64%.