Revenue rose year-on-year (YoY) by more than 50% to 170 billion, Huaxun Technology’s path to platform-based expansion in the AI era

On the evening of March 23, Huqin Technology turned in a 2025 performance report that was engaging enough to catch the market’s attention.

For the full year, the company achieved operating revenue of RMB 171.437 billion, up 56.02% year over year; attributable net profit to shareholders was RMB 4.054 billion, up 38.55% year over year; non-recurring items attributable net profit was RMB 3.244 billion, up 38.30% year over year; at the same time, it plans to distribute cash dividends of RMB 12 per 10 shares.

Against the backdrop of intensifying market competition and fluctuations in raw-material costs, this growth set of numbers—close to “an elephant dancing”—is enough to seize the market’s first glance.

But if you stop at just these figures, it’s easy to overlook the truly important part of this annual report.

I. Entering the strategy execution period, the second growth curve accelerates potential release

On the basis of a massive revenue scale, the company still delivered 56.02% year-over-year growth. It ultimately pushed annual revenue to RMB 171.437 billion, firmly staying within the top-tier range of A-shares. More importantly, at the performance briefing, Huqin Technology’s management provided a more anchor-like medium- to long-term guidance. The company expects its 2026 revenue to exceed RMB 200 billion, and it clearly stated that, based on a “3+N+3” structure, the company’s overall revenue target will reach the scale of RMB 300 billion by 2028-2029.

If you put this target back into the context of the current scale of about RMB 170 billion, it essentially means the company will still maintain double-digit growth in the mid-to-high teens over the next 3-4 years, rather than entering the stable range typical of traditional manufacturing industries.

The sustained and relatively rapid growth in performance is not due to a passive rebound brought about by the recovery of a single industry; rather, it results from the combined effect of platform capability expansion, customer-structure upgrades, and the ramp-up of multiple product lines.

Looking at more specific data, the growth curve constructed on its “3+N+3” strategy (three main mature business ecosystems: smartphones, notebook computers, and data center businesses, plus three strategic new businesses: automotive electronics, robotics, and software) is no longer just a blueprint—it has begun to translate into tangible financial results, showing diversified growth characteristics with higher value added.

First, diversification of growth sources.

The performance of traditional ODM companies often depends heavily on the upcycle of a single product category, especially the smartphone cycle. But in 2025, Huqin Technology’s growth shows clear diversification. Revenue growth for its core mobile terminal business was up 57.17% year over year; revenue growth for its computing and data business (personal computers + data centers) was up 51.93% year over year; and its more eye-catching innovation business (mainly covering automotive electronics, robotics, etc.) delivered a year-over-year growth of 121.00%, with revenue scale reaching RMB 3.48 billion.

Second, the business focus is quietly evolving toward higher value-added areas.

Although the mobile terminal business still contributes the largest revenue, the revenue share of “computing and data business” centered on data centers has reached 44%, becoming another major pillar that is nearly on par with mobile terminals.

According to the annual report, shipment volumes of various products in the company’s data center business all achieved rapid growth, and its market share in the AI server segment has continued to remain at the industry-leading level. China Post Securities previously noted that among the top three CSP customers, the company has entered the position of a core supplier.

This means the “quality” of the company’s overall business base and its positioning in the industry are improving. It has shifted from a single focus on consumer electronics to a dual-engine driven by consumer electronics and computing-power infrastructure. It has taken root in the computing-power infrastructure segment representing the future digital foundation—one with greater certainty and growth potential.

Third, new businesses have begun to show real, tangible presence. The annual report has already explicitly defined robotics as the second growth curve to be built as a priority.

In 2025, the innovation business segment carrying robotics, automotive electronics, and software registered revenue growth of 121.00% year over year, which is the fastest growth rate among the four business segments. In 2025, the automotive electronics business recorded full-year revenue exceeding RMB 1 billion, and it is expected that within the next 3-5 years it will reach the scale of RMB 10 billion in revenue. The software business has already contributed both revenue and profit at scale. The company’s data-collection robot has also entered mass production and delivery. In 2025, home cleaning robots shipped nearly 1 million units, and 2026 is expected to see a doubling of growth.

Worth mentioning is that the company’s operating cash flow in the second half of 2025 showed a significant improvement. In the first half, operating cash flow net outflow was RMB 1.522 billion; for the full year, the net outflow narrowed sharply to RMB 0.223 billion. Reversing from this, in the second half operating cash flow achieved approximately RMB 1.299 billion in net inflow, reversing the situation in the first half.

This signal may mean that the company’s capital expenditures made earlier for business expansion—such as procurement and inventory buildup—have begun to convert into effective collections and healthy operating quality. It also suggests that the company is entering a harvest period of sustained free cash flow release.

II. Platform capabilities continue to overflow, and technology leverage reshapes business logic

For a long time, the market’s imagined ceiling for ODM companies has often been locked in manufacturing capability. Supply-chain management, cost control, large-scale production, project delivery… these capabilities are of course important, and they do form Huqin Technology’s core competitive foundation.

But if you still look at Huqin Technology only from the perspective of hardware assembly and contract manufacturing execution, it can’t really explain why this company can expand simultaneously across categories with very wide spans. It also can’t explain why it can secure a position in the AI hardware wave that is better than many traditional ODMs.

The key logic behind this is that the technological capabilities built through long-term investment are moving from back-end supporting systems to the front stage, transforming into significant commercialization leverage.

Unlike traditional manufacturing-oriented ODMs, Huqin Technology is a hardware company with stronger software capabilities. This difference comes from its founding team’s software background and long-term investment in areas such as AI software and visual recognition. In the AI era, local inference and multimodal interaction have become the norm. Underlying software and systems-optimization capabilities directly determine the performance upper limit of hardware products and user experience. The capability to tightly couple software and hardware is Huqin Technology’s key differentiating advantage.

When this set of capabilities begins to overflow, it can quickly build competitive barriers in new tracks.

In the data center field, Huqin Technology is currently one of the very few companies in the industry that simultaneously possesses full-stack design capabilities across compute nodes, network nodes, and liquid cooling and heat dissipation. It is in a leading position in key technologies such as complete rack architecture, high-speed interconnect, and liquid cooling and heat dissipation. At the same time, the company has built an open and compatible ecosystem that fully adapts to mainstream global GPU chips and domestic computing-power platforms such as NVIDIA, AMD, and Intel.

At the performance briefing, management disclosed that the company expects the data center business to continue achieving 30%-50% growth in 2026, with the share of AI servers already exceeding 70%. Switch revenue will continue to grow at double-digit rates and is expected to keep doubling, and also that “super-node products will enter the scale mass-production and delivery stage in the second half of the year.”

In addition, leveraging the technical accumulation from its big hardware platform in consumer electronics, the strong computing power support provided by AI PCs and servers, as well as the massive testing data and application environment offered by its own global manufacturing scenarios, Huqin Technology is making rapid progress in robotics.

During the reporting period, the company established an independent robotics company, “Yirens Intelligent Robotics,” and formed a dedicated R&D team, aiming to become a leading provider of full-stack robotic solutions in the 3C manufacturing space.

The company has rich global manufacturing scenarios and data accumulation. Currently, its focus is on tackling industrial wheeled robots that enhance production efficiency. In 2025, it completed mass shipments of data-collection robots, and it continues to expand customers in the home cleaning robot segment. Management disclosed that cleaning robot shipments have reached the million-unit level, and it expects that related products in 2026 will “achieve a doubling of growth.” The company is also advancing R&D iterations for humanoid robots, completed the debugging of its self-developed first-generation biped robot, and plans a second-generation product based on NVIDIA’s Thor platform.

In addition, the company also provides large-scale manufacturing services for multiple robotics companies, continuously expanding capacity and delivery capabilities, and constantly improving the layout of the robotics business ecosystem.

In the intelligent driving field, Huqin Technology has successfully built full-stack, automotive-grade development capabilities covering hardware, software, HMI, and testing, and it also has specialized, large-scale automotive-grade manufacturing centers. Key breakthroughs and scaled deliveries have been achieved across core product lines such as intelligent cockpits, intelligent assisted driving, body-domain solutions, and displays. It has already reached deep cooperation with multiple traditional OEMs, new-energy vehicle companies, and overseas customers.

Management expects this business to continue achieving double-digit growth in 2026, and it proposed that within the next 3-5 years it will reach the RMB 10 billion scale and achieve profitability.

In the AI hardware field, the company has fully covered popular on-device AI categories such as AI phones, AIPC, intelligent wearables, and XR devices.

From the data center, to robotics, and then to automotive electronics and AI hardware, we can see a clear path—Huqin Technology is not continuously entering new industries; it is continuously reusing the same capability system.

This may be the real reason why Huqin Technology can keep expanding the boundaries of its business in this AI wave.

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