Huagong Tech Co Ltd

In early trading on September 9, all three major A-share indices rose, and the communications equipment sector became active again. CPO concept stocks rallied at the open, with Zhaolong Interconnect surging by the 20 percent daily limit, Yangtze Optical Fibre and Huagong Tech also hitting their daily limits, and Zecheng Electronics rising more than 12 percent. On the news front, the 2026 China International Optoelectronic Expo is being held in Shenzhen from September 9 to 11. Meanwhile, Goldman Sachs raised its forecast for the global optical module market, expecting it to reach about 67.7 billion US dollars, 131.4 billion US dollars and 148.5 billion US dollars in 2026, 2027 and 2028 respectively, up 33 percent, 81 percent and 115 percent from its previous estimates.

HGTECH released its 2026 interim report. Total operating revenue was 7.822 billion yuan, up 2.53% year on year, and net profit attributable to the parent company was 1.186 billion yuan, up 30.17% year on year. Net cash flow from operating activities was negative 1.198 billion yuan. The asset-liability ratio was 51.43%, gross margin was 20.59%, ROE was 9.92%, and diluted earnings per share was 1.18 yuan. The company had 411,200 shareholders, and the top ten shareholders held 26.04% of total share capital.

Huagong Tech released its 2026 semi-annual report. In the first half, it achieved operating revenue of 7.822 billion yuan, up 2.53% year-on-year. Net profit attributable to shareholders of the listed company was 1.186 billion yuan, up 30.17% year-on-year. Second-quarter net profit was 548 million yuan, while first-quarter net profit was 638 million yuan, meaning second-quarter net profit fell 14% quarter-on-quarter.