Changxin Technology (长鑫科技) is making significant strides in securing its future, announcing during its 2026 third-quarter earnings call that it is in negotiations for long-term supply agreements with multiple leading clients. This strategic move aims to lock in mid-to-long-term demand, providing a foundation for sustained growth and stability.
Strong Financial Performance
The company’s management also indicated that its gross profit margin is expected to remain stable in the fourth quarter. This confidence is bolstered by impressive financial results for the first three quarters of 2026. Changxin Technology reported a consolidated gross profit margin of 86.85% for the period. In the third quarter alone, the gross profit margin reached a remarkable 89.53%.
Key Financial Highlights (First Three Quarters of 2026):
- Operating Revenue: Reached ¥269.024 billion, a substantial year-over-year increase of 738.51%.
- Net Profit Attributable to Shareholders: ¥132.04 billion, marking a significant turnaround from a net loss of ¥5.28 billion in the previous year.
- Non-Recurring Net Profit Attributable to Shareholders: ¥134.03 billion.
- Net Cash Flow from Operating Activities: ¥254.751 billion, an impressive year-over-year growth of 1864.52%.
- Weighted Average Return on Net Assets: 96.46%.
- Basic/Diluted Earnings Per Share: ¥2.14.
Third Quarter Performance Highlights:
- Operating Revenue: ¥118.714 billion, up 613.18% year-over-year and 19.3% quarter-over-quarter.
- Net Profit Attributable to Shareholders: ¥54.435 billion, a 3.01% increase from the previous quarter.
- Non-Recurring Net Profit Attributable to Shareholders: ¥55.237 billion, a staggering 4070.56% year-over-year increase and a 5.31% increase quarter-over-quarter.
- Gross Profit Margin: Approximately 89.53%, an increase of 1.94 percentage points from the previous quarter.
- Basic/Diluted Earnings Per Share: ¥0.84.
Index Inclusion and Market Significance
Adding to its recent successes, Changxin Technology has been included in the SSE Composite Index (上证综合指数). According to the latest data from the China Securities Index Company, the company holds a significant weight of 4.67% in the index, making it the largest constituent stock. This positions Changxin Technology ahead of major financial institutions such as Agricultural Bank of China and Industrial and Commercial Bank of China, which have weights of 3.83% and 3.77%, respectively.
This inclusion and substantial weighting in a major stock index underscore Changxin Technology’s growing influence and importance within the market. The company’s robust performance and strategic foresight in securing long-term client relationships signal a promising outlook for its continued development in the technology sector.
