Hygon Information has recently delivered an impressive financial performance, with a significant year-on-year revenue increase of 69.6%, surpassing 4 billion yuan for the first time within a single quarter, while also setting a new historical high for net profit attributable to shareholders. This data clearly indicates that Hygon, as a leading player, is aggressively capturing market share amidst the surge in domestic computing demand.
On Wednesday, Hygon Information released its latest financial report. Key highlights include:
Revenue: For the third quarter, revenue reached 4.026 billion yuan, marking a historical high and a year-on-year increase of 69.6%. Cumulatively, revenue for the first three quarters was 9.49 billion yuan, up 54.65% year-on-year.
Net Profit: The net profit attributable to shareholders in the third quarter was 760 million yuan, a year-on-year increase of 13.04%. For the first three quarters, net profit for shareholders reached 1.961 billion yuan, growing by 28.56% year-on-year.
Key Business Developments: Significant expansion in the high-end processor products market with accelerated onboarding of major industry clients, driving both revenue and profit growth.
R&D Investment: R&D spending in the first three quarters reached 2.935 billion yuan, up 35.38% year-on-year, representing 30.92% of total revenue, with a continued emphasis on core technology development.
Operating Cash Flow: The net cash flow from operating activities reached 2.255 billion yuan, surging by 465.64% year-on-year.
Financial Structure: Total assets stand at 33.182 billion yuan, while net assets attributable to shareholders amount to 21.897 billion yuan, with a debt-to-asset ratio of 24.12%, indicating overall financial stability.
Business Logic Behind High Growth In the first three quarters of 2025, Hygon Information achieved operating revenue of 9.49 billion yuan, an increase of 54.65% year-on-year, while the third-quarter revenue was 4.026 billion yuan, representing a year-on-year surge of 69.60%.
The company attributes this growth primarily to deepening collaborations with OEMs and ecosystem partners in key industries and fields, which have accelerated market integration of high-end processor products, leading to rapid sales expansion.
Net profit attributable to shareholders was 1.961 billion yuan, showing a year-on-year increase of 28.56%. The growth rate of profits lagged behind that of revenue, reflecting the company's increased R&D and market investments during its expansion phase; profits are under pressure but continue to exhibit high growth.
The adjusted net profit was 1.817 billion yuan, a year-on-year increase of 23.18%. The impact of non-recurring gains and losses on profits was limited, primarily consisting of government subsidies and asset disposal earnings, resulting in a high-quality overall profitability.
Significant Improvement in Operating Quality The net cash flow from operating activities was recorded at 2.255 billion yuan, a substantial increase of 465.64% year-on-year. This figure exceeds net profit significantly, indicating a marked increase in sales collections and advance receipts, signifying improved operational quality.
It is noteworthy that cash flow from investing activities recorded a net outflow of 4.373 billion yuan, primarily due to sustained high-intensity R&D and capital expenditures.
With total assets of 33.182 billion yuan and net assets attributable to shareholders of 21.897 billion yuan, the debt-to-asset ratio stands at 24.12%. The financial structure remains robust, with total short-term and long-term borrowings amounting to 1.9 billion yuan, highlighting manageable debt repayment pressure.
R&D Investment: Continuing Strengthening of Core Competitiveness In the first three quarters, R&D investment reached 2.935 billion yuan, an increase of 35.38% year-on-year, representing 30.92% of total revenue.
For the third quarter alone, R&D spending reached 1.224 billion yuan, a year-on-year increase of 53.83%. The company continues to ramp up investment in the design of next-generation general-purpose processor chips and key technology R&D projects, maintaining a high level of R&D intensity among A-share semiconductor companies.
However, the proportion of R&D expenditure has decreased by 4.4 percentage points compared to the same period last year, reflecting the expansion of the revenue base on one hand, while also necessitating attention to the continuity of future R&D investment intensity.
Asset Structure and Operational Risks Accounts receivable amounted to 4.314 billion yuan, nearly a 90% increase since the beginning of the year; inventory was at 6.502 billion yuan, up nearly 20%. The rapid growth of these two asset categories reflects both business expansion and inventory demand but also brings certain operational risks, necessitating close monitoring of future collections and inventory turnover.
Contract liabilities totaled 2.8 billion yuan, representing a substantial increase since the beginning of the year, indicating abundant advance receipts and providing some assurance for future revenue recognition.
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