Huagong Tech Company (000988) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 reached ¥7.63 billion, up 44.66% year-over-year; net profit attributable to shareholders was ¥911 million, up 44.87% year-over-year.

• Growth driven by strong performance in connection (光联接) and sensing (感知) businesses, with connection business revenue up 124% year-over-year.

• Cash flow from operating activities was negative ¥481 million, mainly due to increased inventory for order growth and supply chain fluctuations.

• No interim dividend, bonus shares, or capital increase from reserves planned for the half-year.

Financial highlights

• Operating income: ¥7.63 billion, up 44.66% year-over-year.

• Net profit attributable to shareholders: ¥911 million, up 44.87% year-over-year.

• Basic and diluted EPS: ¥0.91, up 44.44% year-over-year.

• Gross margin for computer, communication, and other electronic equipment manufacturing: 17.44%; for sensing materials: 26.79%.

• Cash and cash equivalents at period end: ¥3.19 billion.

Outlook and guidance

• Company will continue to focus on innovation, R&D, and talent development to maintain competitiveness.

• Plans to further expand international business and strengthen supply chain resilience.

• No specific quantitative guidance provided for the remainder of 2025.