Author：Wall Street CN

It is worth noting that if the accounting impact of share-based payments is excluded, the company's net profit attributable to the parent company would reach 923 million yuan, a year-on-year increase of 74.86%, while the corresponding net profit after deducting non-recurring items would reach 833 million yuan, a year-on-year increase of 79.44%. This means that the large-scale amortization of equity incentive expenses is the core factor suppressing the gap between the growth rate of book profit and the growth rate of revenue. On a quarterly basis, Haiguang Information's current share-based payment amortization scale is approximately 236 million yuan. This "book cost" does not consume real cash, and the actual cash-generating ability of operations is significantly stronger than the figures presented in the profit statement.

However, the same financial report also revealed a significant "flaw": net cash flow from operating activities this quarter was only RMB 67.62 million, a sharp drop of 97.32% compared to RMB 2.522 billion in the same period last year. This figure seems alarming at first glance, but a closer look reveals that it is mainly due to the company's proactive increase in material inventory, a significant expansion of inventory, and the high base effect resulting from the large amount of prepayments received from customers in the same period last year. It is not a signal of deteriorating operating quality. Regarding R&D investment, the company invested a total of RMB 1.211 billion in R&D this quarter, a year-on-year increase of 58.61%, accounting for as much as 30% of revenue. This sustained high-intensity R&D investment is accumulating momentum for the next round of product iterations.

Revenue grew by nearly 70%, but profit growth lagged significantly behind revenue growth, reflecting a subtle shift in the profit margin structure. A breakdown of the profit statement reveals that operating costs this quarter were 1.791 billion yuan, corresponding to a gross profit of approximately 2.243 billion yuan and a gross profit margin of approximately 55.6%, compared to approximately 61.2% in the same period last year, a year-on-year decline of nearly 6 percentage points.

The narrowing gross margin reflects two main factors. First, the company is dynamically adjusting its product structure—as shipments of AI computing power products rapidly increase, the proportion of products with stronger hardware attributes and relatively higher costs may rise. Second, the rapid expansion of sales expenses also significantly dragged down net profit margin. Sales expenses reached RMB 180 million this quarter, a year-on-year increase of 176%, far exceeding revenue growth, indicating that the company is increasing its investment in market expansion and customer service to seize the window of opportunity presented by the penetration of AI computing power. Administrative expenses, however, decreased slightly year-on-year, indicating that internal operations and management remained generally stable.

Overall, the operating profit margin for this quarter was approximately 24.1%, a slight decrease from **30.4%** in the same period last year. This is directly related to the dual expansion of R&D and sales expenses. During a period of rapid revenue growth, prioritizing long-term market positioning over short-term profit pressure is a common choice for technology companies, and Hygon Information is no exception.

Total R&D investment this quarter was RMB 1.211 billion, up 58.61% year-on-year. RMB 1.149 billion of this amount is reflected in the "R&D expenses" item of the profit statement, accounting for 28.5% of revenue. The remaining RMB 62 million was capitalized (recorded in the development expenditure item of the balance sheet).

The company directly stated that the main reasons for the significant increase in R&D investment were: a substantial year-on-year increase in the number of R&D personnel, and a significant rise in personnel expenses and share-based payments. Share-based payments are a key variable in understanding the profitability of Hygon Information—a type of non-cash expense that includes employee incentive costs in the profit and loss statement in the form of option amortization, which lowers the book net profit but does not affect the company's actual cash generation ability.

Excluding the impact of share-based payments, net profit attributable to shareholders and net profit attributable to shareholders excluding non-recurring items increased by 74.86% and 79.44% year-on-year, respectively, with growth rates far exceeding those including share-based payments. This indicates that as the company's revenue continues to increase, the operating leverage effect is gradually emerging, and the potential for net profit release after the peak period of share-based payments will be considerable.

The sharp drop in net operating cash flow from 2.5 billion yuan to 67.62 million yuan is the most noteworthy data point in this financial report.

The cash flow statement details show that cash received from sales of goods this quarter was RMB 4.304 billion (lower than current revenue, indicating an increase in accounts receivable), while cash paid for purchases reached RMB 3.417 billion, almost doubling year-on-year. This directly reflects the company's strategic intention to proactively build up inventory. The balance sheet shows that as of the end of March, inventory had ballooned from RMB 6.406 billion at the beginning of the year to RMB 7.333 billion, an increase of over RMB 900 million in a single quarter. Prepayments also expanded from RMB 2.885 billion to RMB 3.44 billion.

Meanwhile, contract liabilities (i.e., customer prepayments) decreased from RMB 2.019 billion at the beginning of the year to RMB 1.51 billion. This, coupled with the high base effect from the large amount of contract prepayments received in the same period last year, resulted in a significant contraction in operating cash flow this period. This phenomenon typically occurs at cyclical junctures of strong demand and pre-established supply chains, and does not indicate operational deterioration. On the contrary, the large-scale inventory buildup itself is strong evidence of the company's optimistic expectations for subsequent order deliveries.

In terms of investment activities, there was a net inflow of RMB 191 million this quarter, a stark contrast to the net outflow of RMB 4.039 billion in the same period last year due to large-scale wealth management investments. Regarding financing activities, the company repaid approximately RMB 700 million in borrowings, and with dividend and interest payments exceeding RMB 200 million, the net outflow from financing activities was RMB 929 million, indicating a steady decline in financial leverage.

As of the end of March 2026, the company's total assets were RMB 35.185 billion, a slight decrease of 1.27% from the beginning of the year; cash and cash equivalents were RMB 7.852 billion, plus RMB 6.722 billion in cash and cash equivalents at the end of the period, indicating ample overall liquidity. Net assets (attributable to the parent company) reached RMB 23.497 billion, an increase of 4.46% from the beginning of the year, with a weighted average return on net assets of 2.99%, an increase of 0.52 percentage points compared to the same period last year.

On the liabilities side, the company reduced its short-term borrowings from RMB 3.45 billion at the beginning of the year to RMB 2.95 billion, and its long-term borrowings from RMB 500 million to RMB 200 million. The total amount of interest-bearing liabilities decreased from approximately RMB 3.95 billion at the beginning of the year to approximately RMB 3.15 billion, indicating a clear deleveraging trend. With net interest expense of only approximately negative RMB 35.76 million (interest income of RMB 53.99 million vs. interest expense of RMB 18.16 million), the company's large cash pool still generated significant interest income, resulting in negative net financial expenses and a positive contribution to profits.

In terms of shareholder structure, the major shareholder structure is stable. Sugon Information Industry holds 27.96% of the shares, making it the largest shareholder. Tianjin Haifu Tianding holds 10.81%, and state-owned capital-backed shareholders such as Chengdu Industrial Investment Group, Chengdu Blue Ocean Light Boat, and Chengdu High-tech Investment collectively hold approximately **23%** or more of the shares. The company's state-owned background and strategic positioning are clear, and its shareholding structure is stable.

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