Key Points
- Strong YTD performance: First nine months revenue ¥14,117,000,000 (+83.40%) and net profit ¥3,245,000,000 (+324.38%), highlighting a dramatic profitability jump.
- Q3 highlights: Q3 revenue ¥5,086,000,000 (+78.95%) and Q3 net profit ¥1,102,000,000 (+260.52%); management noted ~¥2.4 billion of Q3 revenue related to NVIDIA (Yingweida 英伟达).
- Investment and cost dynamics: Q3 R&D expense ¥608,000,000 (+84.43%) and new capacity in Huizhou 惠州 and Thailand drove revenue growth but also ramp‑up costs and depreciation that compressed near‑term margins.
- Key near‑term watchpoints: monitor ramp‑up efficiency, stability of NVIDIA (Yingweida 英伟达) programs during product transitions, and whether elevated R&D spending begins to deliver higher‑value orders and margin recovery.
Shenghong Technology (Shenghong 胜宏科技) reported a dramatic year‑over‑year profit surge driven by higher sales in the first nine months of 2025.
Quick take — what the numbers say
Revenue growth and net profit both expanded sharply for Shenghong in 2025 YTD.
The company emphasized that the performance uplift was mainly attributable to increased sales volumes.
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Key financials: revenue growth and net profit (Q3 and first nine months of 2025)
- Q3 2025 revenue: ¥5,086,000,000 RMB (¥50.86亿元) — up 78.95% year‑on‑year (≈ $706.94 million USD).
- Q3 2025 net profit: ¥1,102,000,000 RMB (¥11.02亿元) — up 260.52% year‑on‑year (≈ $153.06 million USD).
- First nine months 2025 revenue: ¥14,117,000,000 RMB (¥141.17亿元) — up 83.40% year‑on‑year (≈ $1,960.14 million USD).
- First nine months 2025 net profit: ¥3,245,000,000 RMB (¥32.45亿元) — up 324.38% year‑on‑year (≈ $450.69 million USD).
- Q3 2025 R&D expense: ¥608,000,000 RMB (¥6.08亿元) — up 84.43% year‑on‑year (≈ $84.44 million USD).
Note: USD conversions use an exchange rate of ¥1 = $0.1389 (1 USD = ¥7.20) for presentation clarity.
Company explanation and drivers of growth
Shenghong said the year‑to‑date performance improvement was primarily caused by higher sales volumes.
Management highlighted multiple factors that affected quarterly dynamics and margins.
- High base effect: Demand in Q2 2025 was unusually elevated, partly driven by tariff‑related advance stocking, which raises the comparison base and limits quarter‑to‑quarter growth in Q3.
- Customer product transition: The third quarter included a product transition at NVIDIA (Yingweida 英伟达), and management estimated NVIDIA‑related revenue in Q3 at about ¥2.4 billion RMB.
- New capacity ramp: New production capacity in Huizhou (Huizhou 惠州) and Thailand came online in Q3, boosting revenue but also bringing ramp‑up costs, yield improvements, and additional depreciation/amortization that weighed on Q3 profitability.
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Market and investor reaction
Investor commentary was mixed after the report.
Some market participants welcomed the strong absolute profit growth but expected faster margin recovery and higher short‑term earnings per share.
Other investors pointed to the sizable R&D investment as evidence of ongoing product and capacity development that could support future revenue quality.
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What to watch next: cadence, margins, and customer stability
- Ramp‑up efficiency: Watch yield and utilization improvements at the new Huizhou and Thailand plants to see margin normalization in upcoming quarters.
- Key customer programs: Monitor stability of NVIDIA (Yingweida 英伟达) and other large customer programs during product transitions to anticipate shipment mix shifts.
- R&D returns: Track whether R&D spending starts translating into higher‑value orders or differentiated products that command better pricing and margins.
How investors and operators should interpret the results
The headline numbers show top‑line strength and a large jump in year‑to‑date profitability, which validates strong market demand and scaling execution.
Quarter‑to‑quarter comparisons are complicated by a high Q2 2025 base and by intentional investments in capacity and R&D that compress near‑term margins.
A few practical takeaways for investors and founders:
- Short term: Expect margin volatility while new plant ramps and product transitions settle.
- Medium term: If yield curves and utilization improve, the strong revenue base can drive normalized margin expansion and higher EPS growth.
- Strategic signal: Rising R&D spend suggests the company is focusing on product development and higher‑value BOMs, which can be a positive for long‑term competitive positioning.
SEO & context notes for readers tracking Chinese tech trends
When you track a growth story like this, pay attention to a few pieces of context that matter for valuation and operations.
- Customer concentration: Revenue tied to large customers like NVIDIA (Yingweida 英伟达) can create step‑function results if product cycles change.
- Capital intensity: New manufacturing capacity typically brings short‑term depreciation and ramp costs that mask operating leverage until utilization improves.
- R&D cadence: Heavy R&D spending is often a buy signal for investors who prioritize product differentiation — but it requires patience.
Bottom line: Shenghong Technology (Shenghong 胜宏科技) posted robust year‑over‑year revenue and net profit expansion through the first nine months of 2025, and the market should watch ramp‑up efficiency, customer transitions, and R&D payoff as the next indicators of sustainable margin recovery.
References
- 胜宏科技：前三季度净利润同比增长324% – 第一财经
- 胜宏科技2025年三季报（公司公告） – 巨潮资讯网
- 胜宏科技三季度业绩报道 – 东方财富
Shenghong Technology (Shenghong 胜宏科技)
