Honor Electronic Reported RMB2.509 billion for 1H 2026, Up 18.32% YoY; High-Power Server Power Supply Revenue Surges 41.44%

On the evening of August 25, Honor Electronic (300870.SZ), a leading domestic switching power supply Company, announced its first half of 2026 results. The Company achieved total revenue of RMB 2.509 billion in the first half, an increase of 18.32% yoy; revenue in the second quarter alone reached RMB 1.467 billion, up 19.09% yoy and 40.88% qoq, setting another record high for a single quarter. Net profit attributable to shareholders reached RMB 8.0853 million in the first half of 2026; net profit attributable to shareholders reached RMB 20.6267 million in Q2, up 264.47% qoq. The Company's gross margin stood at 17.92% in the first half; reached 18.57% in Q2, up 1.56 percentage points qoq, demonstrating significant quarter-over-quarter improvement in performance.

In the first half of 2026, against the backdrop of the deepening AI industrial revolution and the continued expansion of global digital computing power investment, global AI computing infrastructure construction has entered a cycle of accelerated large-scale deployment, driving rapid growth in data center power supply demand and presenting a historic opportunity for the industry. During the reporting period, Honor Electronic remained firmly committed to its strategic development objectives, strengthened supply chain management and refined cost control, fully leveraged its technological and product strengths, and concentrated resources on fast-growing businesses to continuously enhance market competitiveness. With core data center power supply products ramping up at an accelerated pace, the Company maintained an overall steady development momentum.

• Data Center Power Supply Business Maintains Rapid Growth, with High-Value Product Shipment Steadily Rising

During the reporting period, Honor Electronic's data center power supply business, as the Company's strategic development priority, continued its strong growth momentum, achieving revenue of RMB 1.136 billion in the first half, up 18.06% yoy, with its share of total revenue climbes to 45.28% and maintaining its position as the Company's largest business segment. Among this, the high-power server power supply business generated revenue of RMB 936 million, a substantial increase of 41.44% yoy, with its share of data center power supply revenue rising to 82.38%, demonstrating sustained robust growth momentum. Notably, during the reporting period, the shipment share of high-value products such as centralized power supply solutions supporting whole-rack servers increased, driving the continuous upgrade of the Company's product structure toward high value-added, high-tech-barrier high-end segments.

Facing the historic opportunity of large-scale global AI data center construction, Honor Electronic has continued to achieve breakthroughs in both customer expansion and product technology. Through years of deep cultivation, the Company has established itself among the first tier of domestic high-power server power supply suppliers, successively supplying well-known domestic server system manufacturers, such as Inspur Information, Foxconn, Huaqin, Lenovo, ZTE, Sugon, and H3C, while maintaining close cooperation with leading domestic CSP brands, with its comprehensive capabilities receiving high recognition. In overseas markets, the Company has continued to develop various types of overseas customers, including server system manufacturers and CSP brands. It has secured a GPU power supply project for computing equipment with Google, a top-tier global CSP customer, earning recognition from leading global CSP customers for its technological strength. Meanwhile, the Company has established cooperative relationships with important customers such as AMD and Juniper, and maintained in-depth technical exchanges and business engagement with globally mainstream server system manufacturers including Inventec and Compal, with its global customer footprint continuing to expand.

In terms of product technology, the Company has built a comprehensive data center power supply product matrix covering network security, communication and other data center power supplies, general-purpose server power supplies, and high-power server power supplies, spanning all power ranges below 800W, 800–2,000W, and above 2,000W. For server power supply products and solutions, the Company has launched core products including 800–3,600W air cooling CRPS power supplies, 1,600–3,500W immersion liquid cooling power supplies, 3,300–5,500W customized GPU power supplies, and centralized power supply system solutions. With its R&D technology and products at a leading level, the Company's product portfolio is highly aligned with the industry trend of AI computing power evolving toward high power density and whole-rack architecture, thereby building a deep technology moat.

• Cornerstone and Emerging Businesses develop on Steady Upward Track

As the Company's cornerstone business, the consumer electronics power supply business maintained steady growth, backed by deep technological accumulation and high-quality customer resources, becoming the bedrock of the Company's performance. Amid the Facing diminished demand for global electronic devices, external environment for global consumer electronics the Company proactively responded to market changes by actively expanding new markets domestically and abroad, cultivating new customers, and exploring new application areas. It has successfully developed internationally renowned customers including Meta and Amazon, providing strong support for the stable development of its consumer electronics power supply business. In the first half, the consumer electronics power supply business generated revenue of RMB 921 million, up 11.54% yoy, fully demonstrating the sound resilience and risk-resistance capability of this mature business.

In the lithium battery equipment power supply and other power supply segments, the Company actively expanded its product portfolio into new areas and, coupled with new customers, drove revenue growth in these businesses, which achieved total revenue of RMB 428 million in the first half, a significant increase of 32.44% yoy. In electronic power tool and home appliance chargers, in addition to consolidating its share in current customers, the Company expanded new projects within existing customers to increase its shares, while continuously developing new customers and markets, achieving steady upward development of this segment.

Notably, in areas such as chargers for electric transportation, high-wattage power battery equipment, and formation and grading equipment, the Company's newly developed products have made some progress in customer acquisition. Businesses including power battery chargers for large drones, robots, robot dogs, electric two-wheelers and three-wheelers, as well as smart controllers and power supplies for formation and grading equipment, are progressing in an orderly manner. Leveraging its R&D and innovation strengths, the Company will continue to actively explore and research new products and technologies, extend its product lines to develop new application areas and customer groups, support a diversified business layout, and accumulate new growth momentum for the Company's long-term development.

• Seizing AI Computing Power Industry Opportunities and Scaling Up R&D Investment to Drive Long-term Development

Facing the historic opportunity in the AI industry, Honor Electronic has continued to increase its R&D and innovation investment, with R&D expenses reaching RMB 176 million in the first half, up 33.40% yoy, and the R&D to revenue ratio rising to 7.00%, reflecting continuously increasing R&D intensity. As of the end of the reporting period, the Company held a cumulative total of 35 invention patents, 203 utility model patents, 50 design patents, and 106 software copyrights, with its technological innovation capability continuing to lead the industry and providing momentum for the Company's long-term steady development. The Company will continue to focus on core server power supply technology areas including high power, high power density, high efficiency, third-generation semiconductor applications, efficient liquid cooling compatibility design, and high-voltage DC input, covering server power supply products such as 5.5KW, 12KW, and 18.4KW, as well as centralized power supply products such as 33KW, 60KW, 72KW, and 110KW, to provide industry customers with high-performance server power supply solutions backed by leading technology and a rich product portfolio.

Looking ahead, the integration of AI with all industries is ushering in a computing power super cycle, the synergy between computing power and electricity has been elevated to a national strategy, and global CSP capital expenditure continues to rise, all pointing to a favorable long-term outlook for the data center power supply industry. As a leading domestic data center power supply enterprise, Honor Electronic will seize the historic opportunity, focus on its core tracks, deepen frontier technologies, accelerate global customer onboarding, advance its globalization layout, and strive to build itself into a globally leading supplier of data center power supply solutions, achieving high-quality and sustainable development.