Hongfa Technology Co Ltd Financial Update

Hongfa Technology Co Ltd, a company based in Xiamen, China, specializing in solar energy conversion materials, solar energy systems, and borosilicate glass materials, has recently been the subject of financial analysis and shareholder activity. Listed on the Shanghai Stock Exchange, the company’s close price on July 27, 2025, was 23.69 CNH, with a market capitalization of 34,460,000,000 CNH. The company’s 52-week high was 27.4 CNH on March 16, 2025, and its 52-week low was 17.45 CNH on August 28, 2024. The price-to-earnings ratio stands at 20.78.

Financial Performance and Analyst Recommendations

On July 29, 2025, Mingsheng Securities issued a report recommending Hongfa Technology Co Ltd, citing the company’s strong financial performance in the first half of 2025. The company reported revenue of 83.47 billion CNH, a 15.43% increase year-over-year, with attributable net profit of 9.64 billion CNH, up 14.19%, and adjusted net profit of 9.27 billion CNH, up 17.85%. For the second quarter alone, revenue was 43.46 billion CNH, up 15.51%, with attributable net profit of 5.53 billion CNH, up 13.25%, and adjusted net profit of 5.46 billion CNH, up 20.52%. Profitability metrics showed a gross profit margin of 34.67%, up 0.03 percentage points, and a net profit margin of 16.82%, up 0.01 percentage points.

The recommendation highlighted several positive factors, including improved operational efficiency, ongoing R&D efforts, favorable demand in downstream markets for relays, and successful advancements in new product categories. However, potential risks were noted, including challenges in new technology development, demand not meeting expectations, and increased competition.

Shareholder Activity

Recent changes in Hongfa Technology’s top ten shareholders were reported following the release of its 2025 mid-year report. Notably, the Basic Pension Insurance Fund 807 Portfolio entered the top ten, holding 1.11 million shares, representing 0.76% of the circulating shares. Conversely, the Huaxin Trust - Huaxin Trust · Dan Shui Quan Balanced 5th Phase Collective Investment Trust Plan exited the top ten, having held 7.362 million shares, or 0.71% of circulating shares.

Among the top ten shareholders, several increased their holdings: Union Development Group Co., Ltd. increased its stake by 0.0001% to 4.36 million shares; Southbound CSI 500 ETF increased by 15.95% to 1.732 million shares; and the National Social Security Fund 115 Portfolio increased by 76.77% to 1.72 million shares. Additionally, the Basic Pension Insurance Fund 15022 Portfolio increased by 0.0004% to 1.711 million shares, and Guangfa Stable Growth Mixed A increased by 19.05% to 1.2 million shares.

Conversely, some shareholders reduced their holdings: Hong Kong Clearing Company decreased by 6.59% to 29.66 million shares; Abu Dhabi Investment Authority decreased by 5.65% to 2.212 million shares; and CITIC Intelligent Automobile Stock A decreased by 3.19% to 1.026 million shares.

Corporate Governance Updates

Hongfa Technology Co Ltd also announced several corporate governance updates. The company’s 11th Board of Directors held its eighth meeting, and the 11th Supervisory Board held its sixth meeting, both resulting in resolutions being published. Additionally, the company updated its investor relations management system, board secretary work system, and board compensation and evaluation committee work regulations, all effective as of July 2025.

These developments reflect Hongfa Technology’s ongoing efforts to strengthen its financial performance, shareholder relations, and corporate governance practices.