Hongxin Electronics' net profit in the first three quarters increased by 139%, and its computing power business jumped to become the largest revenue source

Xiamen, October 22, 2026 /PRNewswire/ -- The following report is from Haixia Daobao:

On October 21, Hongxin Electronics (300657.SZ) disclosed its 2026 third-quarter report. In the first three quarters, the company achieved operating revenue of 5.501 billion yuan, net profit attributable to shareholders of the listed company of 217 million yuan, a year-on-year increase of 139.24%; net profit attributable to shareholders after deducting non-recurring gains and losses of 170 million yuan, a year-on-year increase of 103.20%. The comprehensive gross margin was 14.27%, up 2.55 percentage points year on year. Despite a slight year-on-year decline in operating revenue, profit achieved relatively rapid growth, reflecting an improvement in the company's profitability.

Behind the performance changes, the growth of the computing power business and the profit recovery of the flexible electronics business formed dual support. In the first three quarters, Hongxin Electronics' computing power and related business revenue reached 2.615 billion yuan, with its share of operating revenue rising to 47.53%, becoming Hongxin Electronics' largest source of revenue; net profit of the computing power business increased by 123.13% year on year, and net profit of the FPC business increased by 830.93% year on year. This means that Hongxin Electronics' business structure is changing, and the dual-wheel drive of "flexible electronics + inclusive computing power" is gradually becoming an important support for its "All in AI" strategy.

Computing power becomes the largest source of revenue, and full-stack operational capability accelerates its formation

In the third quarter, Hongxin Electronics achieved operating revenue of 2.125 billion yuan, up 20.79% quarter on quarter; net profit attributable to shareholders of 92.59 million yuan, up 7.61% quarter on quarter; net profit attributable to shareholders after deducting non-recurring gains and losses of 80.67 million yuan, up 34.09% quarter on quarter. Among this, computing power business revenue was 1.149 billion yuan, up 55.33% quarter on quarter, becoming an important driver of business growth in the quarter.

From the perspective of revenue composition, in the first three quarters the company's computing power equipment sales revenue was 2.104 billion yuan, up 15.28% year on year; comprehensive computing power resource service revenue was 510 million yuan, up 20.28% year on year. Equipment sales constitute an important part of the current computing power business, and service revenue is also growing steadily. Based on the integration of computing power resources, Hongxin Electronics is extending its business to AIDC construction and operation, heterogeneous computing power, model training and inference optimization, HonMaaS model services and AI applications, promoting the expansion of its business from equipment delivery to more complete computing power operation services.

Qingyang Super Intelligent Computing Center

Token Factory is an important layout in this business chain. Since the beginning of this year, Hongxin Electronics has continued to advance the construction of Token Factories in Wuxi, Xiamen, Shantou and other places. In August, Suihong Huachuang joined hands with Xiamen Mobile to complete the first Token overseas service order, further connecting the service link between computing power supply and overseas application demand. With the advancement of project construction and service delivery, Hongxin Electronics is gradually improving links such as computing power resource integration, model adaptation, inference optimization and operational delivery.

At the same time, Hongxin Electronics continues to advance its computing power service capabilities and strengthen its reserve of technical talent, providing support for heterogeneous computing power adaptation, model optimization and project delivery. From equipment sales and computing power services to Token Factory operations, Hongxin Electronics' computing power business is forming a multi-level layout.

While the computing power business accelerates its development, flexible electronics remains an industrial foundation that Hongxin Electronics cannot ignore. In the first three quarters, the company's flexible electronics business achieved operating revenue of 2.546 billion yuan, with a gross margin of the main business of 12.77%, up 3.50 percentage points year on year; net profit of the FPC business increased by 830.93% year on year, and profitability improved significantly.

Relying on more than 20 years of FPC technology accumulation, Hongxin Electronics continues to advance its high-end layout and has carried out FPC application solution cooperation for products such as foldable screens and AI glasses with a number of leading customers. With the development of terminals such as AI phones, AI glasses and smart cars, electronic products are placing higher demands on thinness and lightness, high integration and precision manufacturing. Through intelligent manufacturing upgrades, the company continues to improve process precision, product yield and delivery efficiency, promoting the extension of its existing manufacturing capabilities to high-end products and emerging applications.

From flexible electronics to inclusive computing power, the two businesses face different markets, yet both point to technical capability, engineering delivery and industrial collaboration. Flexible electronics provides long-term manufacturing accumulation, while the computing power business expands new growth space, forming the business foundation that distinguishes Hongxin Electronics from a single computing power service provider or a traditional electronic manufacturing enterprise.

Hongxin Electronics joined hands with Professor Qi Guojun, chief scientist of Suihong Huachuang, to jointly establish Suihong Zhijing, positioning it as an important strategic pivot for extending from computing power operations to AI ecosystem operations, focusing on industrial semi-structured/unstructured scenarios, self-developing a hybrid-deployed RSI-like physical AI agent, and building a business closed loop of "real tasks -- data pipeline -- model evolution -- scale deployment." Recently, the high-quality dataset construction project for pharmaceutical manufacturing robots led by Suihong Zhijing was selected for the 2026 Jiangsu Province key high-quality dataset construction project list, providing a project foundation for the exploration of related technologies in scenarios such as pharmaceutical R&D, manufacturing, quality inspection and logistics.

Changshu Training Ground

The key to physical AI is not only enabling models to have understanding and generation capabilities, but also enabling intelligent systems to perceive the real environment, complete specific tasks, and continuously iterate in practical applications. Around this direction, Hongxin Electronics is exploring the physical AI Mall, attempting to connect computing power, models, data, robots and industrial scenarios, and promoting the connection between technical capabilities and real demand. From data construction to robot applications, and then to a collaborative platform oriented toward industrial scenarios, this layout is expected to further expand the application boundaries of Hongxin Electronics' AI business, and the relevant results still await subsequent technological progress and commercialization for verification.

Another future-oriented exploration is integrated space-air-ground networks. As the connections among satellites and space infrastructure, data resources, computing power, models and intelligent terminals continue to strengthen, AI applications are expected to extend from digital space to a broader physical space. Hongxin Electronics is carrying out layout exploration around the collaboration of "satellite -- data -- model -- terminal -- application," reflecting its forward-looking attention to AI infrastructure and future application forms. Physical AI and integrated space-air-ground networks are not simple extensions of the existing computing power business, but further exploration of future industrial scenarios, technological collaboration and application space.

Beyond profit growth, funds and cash flow also reflect the stage in which the company's business expansion is situated. In the first three quarters, the net cash flow from Hongxin Electronics' operating activities was -376 million yuan, mainly affected by an increase in prepayments for computing power server procurement; the net cash flow from financing activities was 1.976 billion yuan, mainly from an increase in shares issued to specific targets, equity financing of controlled subsidiaries and debt financing. As of the end of the third quarter, the company's monetary funds balance was 1.823 billion yuan, up 264.28% year on year. As previously procured equipment is delivered successively, the revenue conversion of Token Factory operations and comprehensive computing power services will become an important aspect for subsequently observing the input-output efficiency of the business.

Judging from the performance in the first three quarters, Hongxin Electronics is in a stage where business structure adjustment and deepening of its AI layout are advancing in parallel: the computing power business has become the largest source of revenue, the profitability of flexible electronics has recovered, and physical AI and integrated space-air-ground networks further expand future development directions.

Compared with measuring enterprise competitiveness simply by computing power scale, Hongxin Electronics' characteristic lies in simultaneously possessing flexible electronics manufacturing accumulation, computing power resource integration and operational capabilities, and attempting to extend these capabilities to model services and real industrial scenarios. An industrial practitioner moving from flexible electronics manufacturing to full-stack AI operations may better summarize its development path: with manufacturing capability as the foundation, computing power operations as the support, and industrial applications as the driver, promoting AI to move from the digital world to the physical world, and exploring broader integrated space-air-ground application space. In the future, whether this path can continue to release value will ultimately still be reflected in the coordinated improvement of technical capabilities, project delivery, commercialization results and operating quality.