On April 23, Shennan Circuits Co.,Ltd. released its first-quarter report for 2026. The company achieved revenue of 6.596 billion yuan, a year-on-year increase of 37.90%. Net profit attributable to shareholders reached 850 million yuan, surging 73.01% compared to the same period last year. This robust performance growth underscores the powerful boost from AI computing infrastructure demand on the high-end PCB sector.
On the profitability front, the company's non-GAAP net profit was 849 million yuan, an increase of 75.04% year-on-year, nearly matching the net profit attributable to shareholders. This indicates that the profit growth was almost entirely derived from core operations. Basic earnings per share rose from 0.96 yuan to 1.28 yuan, while the weighted average return on equity improved from 3.31% to 4.83%, signaling a significant enhancement in core profitability.
It is noteworthy that net cash flow from operating activities was 247 million yuan, a decrease of 59.62% year-on-year, contrasting with the high profit growth. The company attributed this primarily to a substantial increase in raw material purchases and employee compensation expenses during a period of capacity expansion, a characteristic phase for companies undergoing active expansion.
Revenue and profit both showed strong growth, while cash flow faced pressure. First-quarter revenue of 6.596 billion yuan represented an increase of over 1.8 billion yuan, or 37.90%, compared to the prior year, which the company attributed to increased business orders. Operating profit was 943 million yuan, up approximately 79% year-on-year, while total profit reached 941 million yuan, an increase of about 80%. Operating costs were 4.672 billion yuan, a rise of approximately 30%, which was lower than the revenue growth rate, indicating an improvement in gross margin.
R&D expenses reached 399 million yuan, increasing by 21.4% year-on-year. Sales expenses were 103 million yuan, up about 23%, demonstrating the company's continued investment in technology. Two items on the expense side warrant attention: administrative expenses were 301 million yuan, a 44.21% increase, mainly due to accrued share-based incentive expenses. Financial expenses surged to 68.8 million yuan, a dramatic increase of 556.70%, impacted by foreign exchange rate fluctuations.
Net cash flow from operating activities was 247 million yuan, a decline of 59.62% year-on-year. Although cash received from sales of goods increased by 50.82%, cash paid for goods purchased rose by 69.74%, cash paid to employees increased by 35.77%, and taxes paid surged by 136.23%. The expansion rate of these multiple outflows exceeded the inflow of cash from revenue, leading to a narrowing of net operating cash flow. Credit impairment losses were 49.91 million yuan, an increase of approximately 99%, primarily due to an increase in accounts receivable.
Capital expenditure accelerated significantly in the first quarter. Cash paid for the acquisition and construction of long-term assets such as fixed assets reached 1.989 billion yuan, a massive increase of 199.73% year-on-year, which the company attributed to investment in new factory construction.
Regarding the balance sheet, the closing balance of other non-current assets was 1.135 billion yuan, an increase of 126.19% from the beginning of the year, mainly due to increased prepayments for construction projects and equipment. The balance of construction in progress was 2.258 billion yuan, increasing by approximately 400 million yuan from the start of the year. Net cash flow from investing activities was -1.986 billion yuan, significantly wider than the -659 million yuan in the same period last year, indicating the company is in a phase of intensive capacity investment.
In terms of financing activities, the company absorbed 1.655 billion yuan in cash from investments received through a restricted stock incentive plan and obtained new bank loans of 488 million yuan. Net cash flow from financing activities reached 1.902 billion yuan, providing funding support for the capital expenditures. The closing balance of long-term loans increased to 3.043 billion yuan, up approximately 364 million yuan from the beginning of the year.
The share incentive plan was implemented, and total assets expanded steadily. In January 2026, the company completed the grant for its second-phase restricted stock incentive plan, awarding 14.4258 million shares to 656 incentive recipients at a grant price of 114.72 yuan per share, with the listing date being February 2. Following the grant, the total number of shares increased from 667 million to 681 million shares. As a result, the closing balance of treasury stock was 1.655 billion yuan, and other payables increased significantly by 90.44% year-on-year to 4.261 billion yuan, primarily due to obligations related to the repurchase of restricted stock.
Total assets at the end of the period were 34.351 billion yuan, an increase of 12.32% from the start of the year. Equity attributable to shareholders was 18.09 billion yuan, an increase of 5.49% from the beginning of the year. Regarding the shareholder structure, Shentian Technology Holding (Shenzhen) Co., Ltd. held a 62.61% stake, making it the largest shareholder. Hong Kong Securities Clearing Company Limited held a 3.75% stake, ranking second. The total number of ordinary shareholders at the end of the reporting period was 67,900.