Delton Technology Q1 2026 Profit Jumps 63.31% on 71.35% Revenue Growth, Cash Bolstered by Hong Kong IPO

Delton Technology (Guangzhou) Inc. released unaudited results for the three months ended 31 March 2026, showing sharp top- and bottom-line expansion driven by sustained AI-related demand.

Revenue rose 71.35% year-on-year to RMB 1.91 billion, while net profit attributable to shareholders climbed 63.31% to RMB 392.55 million. Excluding non-recurring items, core profit advanced 67.88% to RMB 390.76 million. Basic and diluted earnings per share both reached RMB 0.93, up 64.84% and 70.20% respectively. Weighted average return on equity improved to 9.28% from 7.51%.

Cost of sales increased 66.75% to RMB 1.21 billion, broadly in line with revenue growth, preserving profitability. R&D expenditure expanded 78.80% to RMB 94.70 million as the company accelerated product innovation, while selling expenses grew 46.06% to RMB 43.67 million. Finance costs turned to a RMB 36.81 million expense from a gain in the prior-year period, reflecting currency-related valuation effects.

Operating cash flow strengthened 51.82% to RMB 320.02 million, underpinned by higher customer receipts. Net investing cash outflow widened to RMB 472.59 million, mainly for Thailand Phase II equipment and construction of the Guangzhou Yunqing facility. Financing activities generated RMB 2.96 billion in net inflow, largely representing proceeds from the group’s Hong Kong listing, lifting quarter-end cash and equivalents to RMB 3.33 billion—up 540.87% versus year-end 2025.

Total assets jumped 52.17% to RMB 11.48 billion, while equity attributable to shareholders almost doubled to RMB 7.21 billion. Construction in progress more than doubled to RMB 562.37 million, and inventories rose 25.36% to RMB 957.89 million, reflecting ongoing capacity expansion.

Non-recurring gains had minimal impact, contributing a net RMB 1.79 million. Government grants accounted for RMB 5.27 million, partially offset by fair-value and other non-operating expenses.

Guangzhou Zhenyun Investment Co., Ltd. remained the largest shareholder with a 36.22% stake. The shareholder base totaled 28,026 as of 31 March 2026, including nine H-share holders following the Hong Kong debut.

Management attributed the robust first-quarter performance to continued momentum in AI computing power demand and reaffirmed its commitment to R&D and overseas expansion. The report is unaudited.