Victory Giant Technology, a leading domestic PCB manufacturer, delivered a strong start to the year. In the first quarter of 2026, the company achieved operating revenue of 55.19 billion yuan, a year-on-year increase of 27.99%. Net profit attributable to shareholders of the listed company reached 1.288 billion yuan, rising by 39.95% compared to the same period last year. The growth rate of net profit significantly outpaced revenue growth, indicating an improvement in profit quality.
After excluding non-recurring gains and losses, the core operating net profit was 1.257 billion yuan, an increase of 36.07% year-on-year. This demonstrates that the primary driver of performance growth is the sustained expansion of its main business operations, rather than one-time gains.
**Revenue and Profitability: Sustained Improvement in Quality**
First-quarter operating revenue was 55.19 billion yuan, while operating costs were 36.18 billion yuan, representing year-on-year growth of 27.99% and 25.91%, respectively. With cost growth slower than revenue growth, the gross profit margin saw a slight improvement.
On the expense side, administrative expenses and R&D expenses increased by 18.01% and 19.43% year-on-year, respectively, which is generally in line with the expansion of business scale. Notably, financial expenses rose significantly to 104 million yuan, a sharp increase of 265.70% year-on-year. The company attributed this primarily to increased exchange losses, closely related to heightened volatility in the RMB exchange rate during the reporting period. This also resulted in a negative contribution of approximately 169 million yuan from the translation difference of foreign currency financial statements within other comprehensive income.
Total non-recurring gains and losses amounted to approximately 31.20 million yuan, mainly stemming from a fair value gain of 45.87 million yuan on held equities. After excluding these items, the net profit was 1.257 billion yuan, up 36.07% year-on-year, indicating solid and reliable core profitability and high-quality earnings. Credit impairment losses shifted from a loss of 11.93 million yuan in the prior period to a gain of 7.59 million yuan, reflecting an improving trend in the risk management of accounts receivable.
**Capital Expenditure and Capacity Expansion: Entering a Historic Investment Peak**
The balance of construction in progress reached 5.17 billion yuan, a record high and an increase of 43.21% year-on-year. Coupled with cash expenditures for the purchase and construction of long-term assets amounting to 3.574 billion yuan in the quarter, this indicates the company is advancing its production base and capacity upgrades with unprecedented intensity. Given the increase in the net value of fixed assets and the stable level of other non-current assets (3.316 billion yuan), previous investment projects are gradually moving into the production phase. The new round of investments is expected to be converted into effective production capacity over the next one to two years, supporting sustained earnings growth.
Furthermore, financial assets held for trading increased from 137 million yuan at the beginning of the year to 500 million yuan, a surge of 265.14%, mainly due to holding shares from placements. These have already generated a fair value gain of 45.87 million yuan, providing a positive contribution to net profit in the short term, though potential uncertainties from market fluctuations warrant attention.
**H-Share Listing: A+H Structure Reshapes Financing Landscape**
The listing on the Hong Kong Stock Exchange was the most strategically significant milestone of the reporting period. Victory Giant Technology's H-shares were issued at HKD 209.88 per share. After the exercise of the over-allotment option, the total number of H-shares issued reached 110 million, representing substantial financing. The formation of dual A+H platforms enables the company to access a broader base of international institutional investors, enhances its brand recognition in overseas markets, and creates potential avenues for future overseas mergers, acquisitions, or strategic partnerships through capital operations. Against the backdrop of a complex and volatile external environment, the H-share listing further optimizes the company's financing structure and reduces its reliance on a single capital market.
Regarding the shareholding structure, the largest shareholder, Shenzhen Shenghua Xinye Investment Co., Ltd., holds a 15.45% stake. It acts in concert with Victory Giant Technology Group (Hong Kong) Limited (holding 15.06%), resulting in a combined controlling interest exceeding 30%. This ensures a stable position for the actual controller, which is conducive to the consistent execution of long-term strategy.
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