Shenzhen Huaqiang Industry Co Ltd

Shenzhen Huaqiang released its 2026 half-year report, with first-half net profit attributable to the parent of 391 million yuan, up 66.1% year on year. Operating revenue was 17.75 billion yuan, up 60.7% year on year; non-GAAP net profit attributable to the parent was 400 million yuan, up 85.2% year on year; net operating cash flow was negative 798 million yuan, down 199.7% year on year. In the second quarter, operating revenue was 10.05 billion yuan, up 72.7% year on year, and net profit attributable to the parent was 191 million yuan, up 46.5% year on year. As of the end of the second quarter, total assets were 20.484 billion yuan, up 11.4% from the end of the previous year; net assets attributable to the parent were 6.9 billion yuan, up 2.5% from the end of the previous year. The company continued to advance across business segments including authorized distribution of electronic components, long-tail spot procurement, and AI computing power integrated services, with storage product line revenue growing significantly, while AI computing power integrated services still account for a small share but hold considerable potential.

Shenzhen Huaqiang announced on August 27 that it plans to distribute a cash dividend of 3 yuan per 10 shares, before tax, to all shareholders, with an estimated total payout of 314 million yuan. In the first half of 2026, the company achieved revenue of 17.748 billion yuan and net profit attributable to the parent of 391 million yuan.

Shenzhen Huaqiang disclosed its half-year report. In the first half of 2026, it achieved operating revenue of 17.748 billion yuan, up 60.65% year on year. Net profit attributable to shareholders of the listed company was 391 million yuan, up 66.13% year on year. Basic earnings per share were 0.3743 yuan. The company plans to distribute a cash dividend of 3 yuan per 10 shares, tax included. In the first and second quarters of 2026, the company's revenue hit record highs, and it has now achieved quarter-on-quarter growth for five consecutive quarters. During the reporting period, the memory product line was the main source of revenue growth in the company's authorized distribution business, with shipment value up more than 330% year on year. In areas related to downstream data center construction, the company's sales to server, server ODM, and data center power supply customers continued to grow.

Shenzhen Huaqiang Chairman Zhang Zehong has proposed a semi-annual cash dividend of 3 yuan per 10 shares, before tax, to all shareholders for 2026, with total cash dividends expected to reach 314 million yuan. The company disclosed the dividend proposal in an announcement on August 12. In the first quarter of 2026, Shenzhen Huaqiang achieved revenue of 7.701 billion yuan and net profit attributable to the parent company of 201 million yuan.

Shenzhen Huaqiang disclosed in its investor relations activity record that, as a major global authorized distributor for Murata, the company has recently observed an increase in customer orders for its MLCC business. Customers have begun pulling goods and actively replenishing inventory. For some out-of-stock models, priority will be given to meeting the procurement needs of major customers.

Shenzhen Huaqiang disclosed its earnings forecast, expecting net profit attributable to the parent in the first half of 2026 to be between 353 million and 424 million yuan, a year-on-year increase of 50% to 80%. The company said that the storage product line is the main source of revenue growth in its authorized distribution business, with shipment value up about 330% year-on-year. In downstream data center construction-related fields, sales to server, server ODM, and data center power supply customers maintained growth. In addition, revenue from the long-tail spot procurement business for electronic components surged year-on-year, with an increase of about 300%.