On February 25, domestic high-end chipmaker Hygon Information Technology Co.,Ltd. released an earnings report, revealing that its 2025 revenue reached 14.376 billion yuan, a year-on-year increase of 56.91%, marking the first time its annual revenue surpassed the 100-billion-yuan threshold. Net profit attributable to shareholders was 2.542 billion yuan, up 31.66% compared to the previous year. The company also provided guidance for the first quarter of 2026, forecasting revenue growth between 62.91% and 75.82% year-on-year, indicating a further acceleration in growth momentum.
Amid rising demand from the artificial intelligence industry, the company has increased research and development investment, optimized product performance, and accelerated product iteration. These efforts have driven continued expansion in the high-end processor market, leading to significant revenue growth and steady improvement in overall performance.
Key highlights from the report include:
- Total operating revenue for 2025 was 14.376 billion yuan, a substantial increase of 56.91% year-on-year. - Net profit attributable to shareholders was 2.542 billion yuan, up 31.66% year-on-year. - Net profit after deducting non-recurring items was 2.303 billion yuan, an increase of 26.82%. - Basic earnings per share rose to 1.10 yuan. - For the first quarter of 2026, revenue is projected to be between 3.91 billion and 4.22 billion yuan, representing year-on-year growth of 62.91% to 75.82%. - Net profit for the first quarter is estimated to range from 620 million to 720 million yuan, an increase of 22.56% to 42.32%.
Growth is primarily driven by the accelerated commercialization of "open and secure" computing solutions, centered on Hygon's high-end processors and developed in collaboration with system manufacturers and ecosystem partners across the supply chain. As demand for AI model training and inference expands across key sectors such as finance, government, telecommunications, and the internet, Hygon's high-performance, high-reliability, and low-power processor products are progressively strengthening the foundation of domestic computing infrastructure.
While revenue crossed the 100-billion-yuan milestone, profitability growth was more moderate. Net profit attributable to shareholders increased by 31.66%, and net profit after non-recurring items grew by 26.82%, both significantly lower than the revenue growth rate. Operating profit was 3.601 billion yuan, up 29.13%, while total profit reached 3.593 billion yuan, an increase of 29.02%. The operating profit margin narrowed from approximately 30.4% the previous year to around 25%, reflecting continued increases in R&D spending and the impact of share-based compensation expenses on profitability.
This divergence should be understood in the context of share-based payments. In its Q1 forecast, the company specifically disclosed performance figures excluding share-based payment expenses to better reflect underlying operational performance. For example, while net profit attributable to shareholders for Q1 2026 is projected to grow 22%-42% under the standard accounting method, the growth rate jumps to 63%-82% after excluding share-based payments, closely aligning with revenue growth and indicating that operational leverage remains strong.
For a chip R&D-focused company like Hygon, equity incentives are a necessary cost to retain top engineering talent and should be viewed as a strategic investment in human capital rather than an operational expense. As granted options gradually vest, the associated amortization pressure is expected to diminish over the coming years.
The Q1 2026 guidance represents one of the most catalytic pieces of information in the announcement. Projected revenue for the quarter is between 3.91 billion and 4.22 billion yuan, with a midpoint of approximately 4.06 billion yuan, implying about 69% year-on-year growth. This pace exceeds the full-year 2025 growth rate of 57% and represents a further step up from the quarterly average of 3.59 billion yuan in 2024.
On the profitability side, when measured excluding share-based payments, Q1 net profit is forecasted to be between 860 million and 960 million yuan, representing growth of 63% to 82%. This demonstrates significant profit elasticity, bringing the company close to achieving a single-quarter net profit exceeding 1 billion yuan.
Notably, the company voluntarily issued Q1 guidance with a relatively narrow range and positive wording, suggesting management's high confidence in confirmed orders. The irreplaceable role of domestic high-end chips in the AI industry, coupled with the acceleration of domestic computing infrastructure construction, is providing Hygon with sustained and predictable growth momentum.
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