Hygon Information Technology Co., Ltd. (688041) delivered a first-half revenue of 9.099 billion yuan, a 66.52% increase year-over-year, nearing the 10 billion yuan milestone. Net profit attributable to shareholders reached 1.798 billion yuan, up 49.69% from the same period last year. As artificial intelligence applications accelerate deployment, domestic companies' procurement demand for local computing chips continues to expand significantly.

The Chinese chip leader posted an above-expectations half-year report, benefiting from the sustained expansion of domestic computing power demand, with a notable acceleration in performance growth. Hygon Information Technology disclosed its 2026 half-year report on Thursday, showing first-half revenue of 9.099 billion yuan, a 66.52% increase, approaching the 10 billion yuan threshold. Net profit attributable to shareholders was 1.798 billion yuan, up 49.69%. The revenue growth rate far outpaced profit growth, indicating the company remains in a high-investment expansion phase.

The strong revenue growth confirms the sustained high boom in the domestic computing power market. With the rapid implementation of AI applications, the procurement demand from domestic enterprises for local computing chips has continued to surge, providing ample market space for Hygon Information Technology.

Revenue and Profit Both Accelerate

During the reporting period, Hygon Information Technology achieved revenue of 9.099 billion yuan, a significant leap from 5.464 billion yuan in the same period last year. Total profit reached 2.163 billion yuan, up 31.96% year-over-year. Net profit after deducting non-recurring gains and losses was 1.631 billion yuan, a 49.67% increase, closely aligned with the net profit growth rate, indicating solid quality in performance growth. Basic earnings per share were 0.78 yuan, up 50.00%. The weighted average return on net assets rose to 7.56%, an increase of 1.81 percentage points from the same period last year, showing improved profitability. As of the end of the reporting period, total assets were 36.034 billion yuan, up 1.11% from the end of the previous year; net assets attributable to shareholders were 25.373 billion yuan, up 12.80%.

High R&D Investment Puts Pressure on Cash Flow

Hygon Information Technology continued its strategy of high-intensity R&D investment. During the reporting period, R&D investment accounted for 29.15% of revenue, a decrease from 31.31% in the same period last year, but in absolute terms, it climbed with revenue expansion, showing the company's ongoing commitment to foundational chip technology R&D. Notably, net cash flow from operating activities was -428 million yuan, a significant reversal from a positive 2.177 billion yuan in the same period last year. This change is typically linked to increased inventory and accounts receivable due to business scale expansion, and investors may need to monitor subsequent collection progress.

Stable Shareholding Structure with Concentrated Institutional Holdings

In terms of equity, Hygon Information Technology had a total of 133,170 shareholders as of the end of the reporting period. The top three major shareholders remained unchanged. Shuguang Information Technology Co., Ltd. held 27.96% as the largest shareholder, 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. together held approximately 9.79%, and these entities are acting in concert. China Reform Investment Co., Ltd. entered the top ten shareholders with a 0.65% stake, reflecting national team funds' strategic layout in the domestic chip sector. The China Southern Asset Management SSE STAR 50 ETF also appeared among the top ten shareholders with a 0.64% stake.

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