Shenghong Technology's high-end products achieve mass production with a profit of 4.3 billion yuan, plans to distribute 1.74 billion yuan in dividends, and reinvests 20 billion yuan to expand production capacity.

Changjiang Business Daily News ● Changjiang Business Reporter Shen Yourong

Top-performing stock Shenghong Technology (300476.SZ) has achieved a bumper business year.

On the evening of March 12, Shenghong Technology released its 2025 annual report. In this year, the company achieved nearly 20 billion yuan in operating revenue, up about 80% year-over-year; net profit attributable to shareholders was approximately 4.3 billion yuan, a 2.74-fold increase.

Corresponding to the significant growth in net profit attributable to shareholders, Shenghong Technology’s operating cash flow net for 2025 was 4.603 billion yuan, up 238.85%.

As a global leader in PCB manufacturing, Shenghong Technology’s stock price soared. At the end of January 2024, the stock was below 15 yuan per share; by September 16, 2025, it reached a high of 355 yuan per share, a maximum increase of 22.7 times in the interval. In 2025, its stock price also increased nearly sixfold.

Regarding the best-ever business performance in 2025, Shenghong Technology stated that the company accurately seized the opportunities brought by AI, with multiple high-end products in AI computing power, data centers, and high-performance computing already mass-produced, significantly increasing the proportion of high-end products and driving rapid growth in performance.

In 2025, Shenghong Technology invested 778 million yuan in R&D, up 72.88%.

Profit of over 4.3 billion yuan exceeds the total of the past six years

Shenghong Technology’s business performance shows explosive growth momentum.

According to the latest disclosed annual report, in 2025, Shenghong Technology achieved operating revenue of 19.292 billion yuan, up 79.77%; net profit attributable to shareholders and net profit after non-recurring gains and losses were approximately 4.312 billion yuan and 4.304 billion yuan, respectively, up 273.52% and 277.07%.

Looking at individual quarters, in 2025, the company’s quarterly operating revenues were 4.312 billion yuan, 4.719 billion yuan, 5.086 billion yuan, and 5.175 billion yuan, with YoY growth of 80.31%, 91.51%, 78.95%, and 70.58%, all at high-speed growth; net profits attributable to shareholders were 921 million yuan, 1.222 billion yuan, 1.102 billion yuan, and 1.067 billion yuan, with YoY increases of 339.22%, 390.14%, 260.52%, and 173.76%, all doubling.

Undoubtedly, 2025 was Shenghong Technology’s harvest year, achieving its best-ever business results.

Founded in 2006, Shenghong Technology listed on the A-share market in June 2015.

From its historical performance, from 2011 to 2025, the company’s revenue has grown for 15 consecutive years. During these 15 years, except for a one-time adjustment in net profit in 2023, all other years showed growth. From 2019 to 2024, net profits attributable to shareholders were 463 million yuan, 519 million yuan, 670 million yuan, 791 million yuan, 671 million yuan, and 1.154 billion yuan, totaling 4.268 billion yuan.

In 2025, Shenghong Technology’s annual profit exceeded the sum of the previous six years.

Regarding the explosive growth in 2025, Shenghong Technology explained that the company precisely seized the historic opportunities brought by the wave of AI computing power technology innovation and data center upgrades, continuously consolidating its technological leadership in the global PCB manufacturing field. In key areas such as AI computing power, data centers, and high-performance computing, multiple high-end products have achieved large-scale mass production, leading to an upgrade in product structure toward higher value and more complex technology, with a significant increase in high-end product proportion, driving rapid growth in performance.

The significant increase in high-end product share has also raised Shenghong Technology’s gross profit margin. In 2025, the company’s comprehensive gross profit margin was 35.22%, up 12.5 percentage points from the previous year.

While its business performance surged in 2025, the company’s operating cash flow also saw a large rebound. The net operating cash flow was 4.603 billion yuan, an increase of 3.245 billion yuan from 1.358 billion yuan in the same period last year, a YoY increase of 238.85%.

R&D investment of 778 million yuan increased by 73%

Why did Shenghong Technology’s business explode? The company seized the good opportunities brought by the wave of technological advancement.

Shenghong Technology specializes in R&D, production, and sales of high-density printed circuit boards, covering rigid PCBs (with HDI multilayer boards as core) and flexible PCBs (single/double-sided, multilayer, rigid-flex combined boards), widely used in AI, automotive electronics (new energy), next-generation communication technology, data centers, industrial IoT, medical devices, computers, aerospace, and other fields.

In its annual report, Shenghong Technology stated that it firmly embraces AI, adheres to innovation-driven development, implements “three major strategies,” and promotes “four innovations.” The “three major strategies” are smart factories, green manufacturing, and “three highs” (high technology, high quality, high service). The company claims to be a pioneer in the industry, the first to build a new generation of smart factories for PCB manufacturing, with significant improvements in capacity and quality, and record-high per capita output.

The “four innovations” include concept innovation, technological innovation, talent innovation, and capital innovation. Among these, technological innovation involves focusing on industry frontiers, especially around GPU and CPU cores, conducting early technical research, actively deploying emerging product fields, and seizing AI development opportunities.

By the end of 2025, the company held 381 valid patents in the PCB field, including 194 invention patents, with 87 ongoing R&D projects.

In recent years, Shenghong Technology’s R&D investment has continued to grow. In 2025, R&D expenditure was 778 million yuan, up 72.88%. At year-end, the number of R&D personnel was 1,751, an increase of 28.56%, accounting for 9.73% of total employees.

Shenghong Technology has a number of globally renowned corporate clients. According to public information, clients include NVIDIA, AMD, Google, Microsoft, Amazon, Intel, Tesla, BYD, Foxconn, Dell, Lenovo, and many others.

In 2025, direct export revenue accounted for 76.83%.

With the significant growth in business performance, Shenghong Technology plans large-scale investments. The announcement states that to meet strategic and operational needs, in 2026, the company and its subsidiaries plan to invest up to 20 billion yuan, including no more than 18 billion yuan in fixed assets, covering new factories, construction, equipment purchase, and automation upgrades. Additionally, equity investments are planned for up to 2 billion yuan, involving the company and subsidiaries within the consolidated scope.

Shenghong Technology has increased its cash dividend efforts. In 2025, the company plans to distribute a profit of 20 yuan per 10 shares (tax included), totaling 1.74 billion yuan, exceeding the total dividends of the past 10 years.

Notably, Shenghong Technology performed excellently in the secondary market. In 2025 alone, from start to end, the stock price increased nearly six times, with a current market value exceeding 240 billion yuan.

Editor: ZB