Delton Technology (01989) has announced an upbeat earnings forecast for the first quarter of 2026. The group expects consolidated net profit attributable to shareholders and other equity holders to range between RMB 380 million and RMB 400 million for the three months ended March 31, 2026. This represents a significant increase compared to the same period last year, when the company reported a profit of RMB 240 million.

The anticipated improvement in the group's consolidated performance for the January to March 2026 period is attributed to several key factors. Firstly, during the quarter, the company successfully capitalized on the surge in demand for computing hardware. It maintained a strategic focus on the "computing power" sector, concentrating on markets for general-purpose servers, AI servers, switching products, and accelerator cards. By driving product portfolio optimization through technological innovation and enhancing production efficiency via digitalization, the company achieved steady operational growth.

Secondly, Delton Technology's overseas facility, Delton Technology (Thailand) Co., Ltd., successfully completed the audit and certification process for a key core customer as planned. With the certification and product introduction for this major client, coupled with the ramp-up of production capacity in the first phase of the Thailand plant, the overseas operation has become a second engine for growth in the company's computing power product sales. The Thailand subsidiary reported a profit during the reporting period.

Lastly, the company's wholly-owned subsidiary, Huangshi Delton Precision Circuit Co., Ltd., continued its efforts in cost control, product mix adjustment, and efficiency improvements throughout the quarter. As a result, its profitability level saw a notable year-on-year enhancement.