HUAQIN (Huaqin Co., Ltd.) reported strong interim results for the six months ended 30 June 2026, with both top-line and bottom-line growth supported by wider gross margins and expanded global delivery capacity.

Revenue climbed 11.7% year-on-year to RMB 93.72 billion, led by mobile terminals, computing & data-centre hardware and fast-growing AIoT and automotive electronics lines. Mobile terminals (smartphones, tablets, wearables) rose 16.6% to RMB 41.12 billion, while computing & data-centre products added 2.8% to RMB 43.32 billion. AIoT sales almost doubled to RMB 6.04 billion and innovative businesses—principally automotive electronics, robotics and software—more than doubled to RMB 2.54 billion.

Overseas revenue surged 56.4% to RMB 61.61 billion, lifting the non-China share of sales to 66%, while domestic sales fell 27.9% to RMB 32.11 billion.

Gross profit increased 19.7% to RMB 7.43 billion; gross margin improved 0.5 percentage points to 7.9% on a richer product mix. Operating leverage and a RMB 1.38 billion gain from fair-value changes in equity investments contributed to the profit surge. Net profit attributable to shareholders reached RMB 3.03 billion, up 59.3% from the same period last year.

R&D spending rose 20.0% to RMB 3.56 billion, representing 3.8% of revenue, as the group accelerated development of AI phones, AI PCs, data-centre Supernode systems, automotive smart-cockpit platforms and robotics solutions.

Total assets expanded 42.0% to RMB 136.67 billion after the April Hong Kong IPO of 67.33 million H-shares, which raised net proceeds of HKD 5.14 billion (about RMB 4.54 billion). Cash and cash equivalents increased to RMB 16.88 billion, while the gearing ratio edged up to 76.1% following the issuance of RMB 2.00 billion in three-year technology-innovation bonds and higher short-term financing to support inventory and receivables growth.

Operating cash flow turned positive at RMB 642.61 million versus a RMB 1.52 billion outflow a year earlier, reflecting tighter working-capital control despite higher inventories tied to expanding AI-server and smart-device pipelines.

Management reiterated its “3 + N + 3” platform strategy: three core pillars (mobile terminals, PCs, data-centre products), broadening “N” smart-device categories, and three strategic growth engines (automotive electronics, robotics, software). The company plans to deploy IPO proceeds mainly into product-centric R&D (40%), global manufacturing expansion (35%), strategic investments (15%) and working capital (10%), expecting full utilisation by end-2027.

Looking ahead, HUAQIN will intensify AI integration across hardware lines, extend global manufacturing in Vietnam, Mexico and India, and pursue further vertical-integration investments—highlighted by the May acquisition that lifted its stake in Nexchip Semiconductor to 11%.

No interim dividend was declared.

Auditor BDO Limited reviewed the interim results; the audit committee has endorsed the unaudited statements.