SHANGHAI, January 28, 2026 – Honghe Technology Co., Ltd. (SSE: 603256) announced today a robust earnings forecast for the fiscal year 2025, anticipating extraordinary growth in both profitability and operational scale, largely fueled by rapidly expanding AI-related applications in the electronics industry.

The company projects net profit attributable to shareholders to reach between RMB 192.7 million and RMB 225.5 million in 2025, representing a year-over-year surge of 745% to 889%. Excluding non-recurring items, adjusted net profit is estimated to be in the range of RMB 186.75 million to RMB 218.53 million, an increase of 3,377% to 3,969% compared to the prior year.

This marks a substantial leap from the company's 2024 performance, in which it recorded net profit attributable to shareholders of RMB 22.8 million and non-GAAP net profit of RMB 5.37 million.

In its statement, Honghe Technology highlighted that the strong financial outlook is primarily driven by accelerating demand for artificial intelligence (AI)-enabled devices, which has in turn stimulated downstream consumption and supported higher sales volume and prices for the company's core product, electronic-grade fiberglass cloth.

A leading manufacturer in the high-performance materials segment, Honghe specializes in the R&D, production, and sale of mid- to high-end electronic-grade fiberglass fabrics and ultra-fine yarns. Its products are widely used in 5G smartphones, servers, automotive electronics, and other high-tech applications. The company stands out as one of the few domestic producers capable of manufacturing ultra-thin cloth below 28μm. Through its integrated Huangshi production base, Honghe has increased its electronic yarn self-sufficiency rate to around 70%, reinforcing its competitive position across the yarn-to-fabric supply chain.

During 2024, the company's sales of electronic fabric increased by 22.72% year on year. It has also achieved mass production of low-CTE (coefficient of thermal expansion) fiberglass cloth, further diversifying its high-value product offerings.

Additionally, Honghe reported that its high-performance electronic-grade fiberglass yarn from the Huangshi facility has entered large-scale commercial production, securing a stable supply of high-end raw materials. The company anticipates that ongoing supply-demand optimization will continue to enhance sales and margins for its premium ultra-thin and extreme-thin fiberglass fabric lines in the coming quarters.