Shenghong Technology shares opened sharply lower and fell more than 12% today
after the company’s Q3 results. Third-quarter revenue was 6.831 billion yuan, up
34.3% YoY, while net profit attributable to shareholders was 527 million yuan,
down 52.2% YoY and down about 66% QoQ from 1.568 billion yuan in Q2—creating a
clear divergence between revenue growth and earnings. The company said part of
the profit decline reflects non-recurring gains/losses from equity investments
tied to partner A‑share and Hong Kong IPO projects: those investments showed
unrealized gains in Q2 but produced unrealized losses in Q3. Shenghong said it
still holds some related equity at the end of Q3 and made the investments to
reinforce industrial partnerships and support listings, including where partners
participated in the company’s Hong Kong project.
