Net profit skyrocketed by 8,747%! Shannon Core's business performance explodes!

On the evening of April 7, Shanxi Huitong Microelectronics disclosed a first-quarter performance forecast. It expects that in the first quarter of 2026, the net profit attributable to shareholders of the company will be RMB 1.14 billion to RMB 1.48 billion, representing a year-on-year increase of 6,714.72% to 8,747.18%. Regarding the reasons for the change in performance, Shanxi Huitong Microelectronics stated that in the first quarter, rising industry sentiment driven by increased demand for generative AI application products improved the pricing of enterprise storage products. As a result, the company’s profitability strengthened, and its profit level increased significantly.

Meanwhile, Shanxi Huitong Microelectronics also disclosed its 2025 performance. During the reporting period, Shanxi Huitong Microelectronics achieved total operating revenue of RMB 35.251 billion, up 45.24% year over year; it achieved net profit attributable to shareholders of the listed company of RMB 544 million, up 106.06% year over year.

Shanxi Huitong Microelectronics stated that during the reporting period, benefited from the booming development of generative artificial intelligence (AGI), the growth in demand for enterprise storage from internet data center (IDC) construction increased the company’s revenue from its electronic component distribution business and its independent brand “HaiPu Storage” by varying degrees. “HaiPu Storage” has rolled out multiple products across two major product lines, including enterprise-grade SSDs and enterprise-grade DRAM. The products have completed certifications and adaptations for some of the leading domestic server platforms, and have officially entered the mass production stage. In this reporting period, this segment achieved annual profitability for the first time.

The announcement stated that at the end of the reporting period, Shanxi Huitong Microelectronics’ financial position was sound. Total assets were RMB 11.084 billion, up 46.13% from the beginning of this reporting period; total owner’s equity attributable to shareholders of the listed company was RMB 3.574 billion, up 21.69% from the beginning of this reporting period. The total share capital was 465 million shares, up 1.60% from the beginning of this reporting period. Net assets per share attributable to shareholders of the listed company were RMB 7.69, up 19.78% from the beginning of this reporting period. Compared with the beginning of this reporting period, the company’s total assets, owner’s equity, and net assets per share increased by the end of this reporting period mainly because the company’s net profit during the reporting period increased compared with the same period last year.

It is understood that Shanxi Huitong Microelectronics is a semiconductor industry chain investment management and distribution platform, founded in 1998. It was listed in 2015. It currently has two business segments. Among them, the electronic components distribution platform (United Creative Tai) holds first-tier brand agency qualifications such as SK Hynix and MTK (MediaTek); the semiconductor industry chain collaboration enablement platform invests in and coordinates various links in the semiconductor industry chain, including semiconductor design, IC testing and packaging, equipment, and applications.

As of the close on April 7, Shanxi Huitong Microelectronics’ share price was RMB 123.48 per share, with a total market capitalization of RMB 57.4 billion. According to Wind data, throughout 2025, the company’s share price increased by 407%.

Recently, an investor asked the company: Your company’s recent share price has been sluggish and has severely underperformed the storage sector. Could you please tell us whether there have been any major changes in your company’s fundamentals compared with last year’s fourth quarter?

In response, Shanxi Huitong Microelectronics said that the secondary-market share price is affected by a number of factors, including macroeconomic conditions, market sentiment, funding conditions, and the company’s business operations. At present, the company’s business activities are developing normally; the company’s fundamentals have not undergone any major changes; and there are no major matters that should be disclosed but have not been disclosed. Against the backdrop of tight supply, industry sentiment continues to rise, and storage prices continue to increase. Benefiting from changes in the industry, the company’s profitability has improved. For details of its specific performance, please refer to the company’s subsequent regular reports.

Shanxi Huitong Microelectronics stated that the level of industry sentiment affecting the company’s industry is influenced by factors such as the supply of upstream raw materials and demand from downstream markets. If, in the future, changes occur in industry supply and demand or there are fluctuations in raw material prices, the company’s performance may face risks of volatility. The company has disclosed potential major risks and response measures in its annual reports in the past—please refer to relevant information in those annual reports. In the annual reports it will disclose in the future, the company will also disclose potential major risks and response measures in accordance with regulations. Please pay attention to the relevant information. The company has consistently attached importance to investor relations work. It will actively repay investors’ trust through various methods, including striving to improve production and operations, fully carrying out information disclosure, strengthening communication with investors, and continuing cash dividends.

(Source: China Securities Journal)