Tianshui Huatian Technology Co., Ltd. (002185)

Equity Research Report　|　Industry: Semiconductor Packaging and Testing (OSAT)　|　Report Date: September 13, 2026　|　The research notes do not provide a clear price-data cutoff date or time. They contain only market-data links and scattered price information (e.g., RMB 16.20, down 1.10%, on Eastmoney and RMB 16.17, up 1.25%, on 9F Intelligence), so a consistent cutoff time cannot be confirmed

This report was automatically compiled by AI based on publicly available information. It is for reference only and does not constitute investment advice.

1. Executive Summary

Huatian Technology generated revenue of RMB 10.511 billion in 1H 2026, up 35.09% year on year, and net profit attributable to shareholders of RMB 813 million, up 259.15% year on year. However, net profit attributable to shareholders excluding extraordinary items was only RMB 250 million. The RMB 563 million gap between reported attributable net profit and recurring attributable net profit was mainly attributable to extraordinary items, including approximately RMB 487 million from fair-value changes in financial assets and investment income and RMB 221 million in government grants. Accordingly, headline earnings growth is not fully equivalent to improvement in core profitability. Core operating performance should be assessed primarily through recurring profit and operating cash flow.

The company’s core business is integrated-circuit packaging and testing. In 2025, integrated-circuit packaging and testing revenue was RMB 17.210 billion, accounting for 99.98% of total revenue. In 1H 2026, revenue was RMB 10.51 billion and gross margin was 14.35%, continuing to improve from 13.30% in 2025. Growth was mainly driven by a recovery in packaging-and-testing demand, higher capacity utilization, a shift in product mix toward advanced packaging such as FCBGA, SiP and wafer-level packaging, and a linkage mechanism between raw-material prices and packaging-product pricing. However, the company remains a midstream OSAT provider. Its core net margin was approximately 4.1% in 2025, and earnings sensitivity remains high to depreciation, capacity utilization and customer bargaining power.

The customer base is relatively diversified. In 2025, sales to the top five customers were approximately RMB 4.346 billion, or 25.25% of revenue, while the largest customer accounted for 11.73%, helping reduce single-customer concentration risk. The company has also established a multi-site footprint spanning Tianshui, Xi’an, Nanjing, Kunshan, Shanghai, Jiangsu, Shaoguan and Malaysia-based Unisem. Nevertheless, its advanced-packaging capabilities remain in catch-up mode relative to global and leading domestic peers. Its 2.5D/3D lines have entered operation, FOPLP has completed customer validation, and CPO remains under development. The maturity of commercial-scale production and the pace of commercialization still require validation.

Recent major developments include the proposed acquisition of 100% of Huarui Microelectronics for RMB 2.996 billion. The transaction has been approved by the M&A and Reorganization Review Committee of the Shenzhen Stock Exchange but still requires registration approval from the China Securities Regulatory Commission. The target operates in power-device design and packaging/testing and generated revenue of RMB 1.68 billion and net profit of RMB 79 million in 2025. Technically, the share price is around RMB 16, but quotations and daily changes differ across sources. The short-term trend is viewed as mildly strong, while the three-year quantitative technical score is 32 and indicates weakness. Key data for moving averages, RSI, Bollinger Bands and 52-week highs and lows are unavailable, limiting the reliability of technical signals.

2. Company Overview

2.1 Basic Information

2.2 Core Businesses and Product Footprint

• Integrated-circuit packaging and testing (OSAT foundry services; pure-play foundry model, with no chip design or wafer manufacturing): 2025 revenue of RMB 17.210 billion, accounting for 99.98%, with a gross margin of 13.30%; 1H 2026 revenue of RMB 10.51 billion, accounting for 100.00%, with a gross margin of 14.35%
• LED business (subsidiary Mico Optoelectronics; LED backlighting/lighting): 2025 revenue of RMB 2.6881 million, accounting for 0.02%, with a gross margin of -245.83%; down 95.95% year on year in 2025 and in a contraction/exit phase
• Packaging and testing product lines: DIP/SDIP, SOT, SOP, SSOP, TSSOP/ETSSOP, QFP/LQFP/TQFP, QFN/DFN, BGA/LGA, FC, MCM (MCP), SiP, WLP, TSV, Bumping, MEMS, Fan-Out (FO), PLP and 2.5D/3D
• Downstream application areas: computers, network communications, consumer electronics and smart mobile terminals, IoT, industrial automation control and automotive electronics
• Geographic revenue mix (2025): domestic RMB 10.930 billion (63.49%)／overseas RMB 6.285 billion (36.51%); 1H 2026 domestic RMB 6.704 billion (63.78%)／overseas RMB 3.807 billion (36.22%)
• Production-site specialization: Tianshui (primarily leadframe products), Xi’an (substrate products plus QFN/DFN), Nanjing (memory, RF and MEMS), Kunshan (wafer-level TSV/Bumping/WLCSP/Fan-Out), Jiangsu (Bumping/WLCSP), Shaoguan (leadframe products), Shanghai (wafer and final testing), and Malaysia-based Unisem (leadframe, substrate and wafer-level products)

2.3 Position in the Value Chain and Cost/Profit Structure

Huatian Technology is a pure-play OSAT provider. It supplies packaging and testing services according to customer requirements and industry technical standards, without engaging in chip design or wafer manufacturing. Under the packaging-and-testing foundry model, wafers are supplied by customers and are not included in the company’s procurement scope. Its value-chain position is reviewed below from four perspectives: upstream costs, downstream customers, working-capital requirements and gross-margin trends.

• Actual inputs in packaging and testing include leadframes, packaging substrates (including BT substrates), molding compounds (epoxy molding compounds), gold wire/bonding wire, silver paste, solder balls, die-attach adhesive, packaging tubes and carrier-tape materials, blades and other auxiliary consumables, and packaging-and-testing equipment. Wafers are supplied by customers and are not included in procurement.
• Domestic listed-material suppliers disclosed by the company (the Shenzhen Stock Exchange’s “Visit Listed Companies—Huatian Technology” event and research notes in 2023-06) include Huahai Chengke for molding compounds, Shennan Circuits and Xingsen Technology for substrates, and Kangqiang Electronics for leadframes. Subsidiary Huatian Technology (Baoji) also supplies leadframes internally. Historically disclosed suppliers include Zhuhai ACCESS Semiconductor, Shanghai Bobang International Trading, Tianshui Huayang Electronic Technology, Heraeus (Zhaoyuan) Precious Metals Materials, Shanghai Changhua New-Tech Materials and Mingkaiyi Electronics (Kunshan) (2019 investor interaction).
• Pricing-power assessment: Huatian is “partially a price taker” with respect to upstream suppliers, as leadframes and similar materials are standardized bulk consumables. However, the 2025 annual report explicitly states that the company “effectively hedged the impact of cost fluctuations and stabilized product profitability by establishing a linkage mechanism between raw-material prices and packaging-product pricing,” indicating some ability to pass through costs and use linked pricing with downstream customers rather than remaining entirely passive.
• Important clarification: The “top five suppliers of packaging-and-testing products” disclosed by 9F Intelligence/Sina (Taizhou Yourun Electronics 24.83%, Sichuan Jinwan Electronics 21.37%, Shanghai Changhua New-Tech Materials, Huatian Electronics Group and Jiangsu Aisen Semiconductor, totaling approximately 64%), together with their corresponding purchase prices (leadframes RMB 0.11/unit, molding compounds RMB 48.47/kg, etc.), relate to the acquisition target Huarui Microelectronics, not the listed Huatian Technology. The two sets of data must not be mixed.
• Supplier concentration: First-hand, verifiable data on the combined share of the top five suppliers of Huatian Technology itself was not obtained; data are unavailable.
• Customers are Fabless design companies and IDMs. Publicly identifiable customers mentioned in media compilations, which should be treated cautiously, include HiSilicon (the company has confirmed that it provides packaging-and-testing services), ChangXin Storage/ChangXin Technology (the company has confirmed business cooperation), YMTC, BYD, GAC, H3C, Sunwoda, Hangke Technology, Dayang Motors, DJI, Dongwei Semiconductor, Huatian Electronics, Silan Microelectronics, Innoscience, Inspur, BOWEI Electronics, Gaoshengbao Electric and Megmeet. This customer list is mainly based on an Eastmoney “Caifuhao” self-media compilation, has a single source and has not been cross-checked item by item against company announcements. The latest annual report and announcements should prevail.
• In 2026-09, the company explicitly stated on its investor-interaction platform that “the company has no direct business cooperation with SMIC,” representing a change from the 2019 description of “limited business cooperation.”
• Customer concentration (2025-12-31, the “top five customers” table cited by chaguwang): combined sales to the top five customers were RMB 4.346 billion, or 25.25% of revenue; customer 1 accounted for 11.73% (RMB 2,018.6227 million), customer 2 for 5.87% (RMB 1,011.1459 million), customer 3 for 2.88% (RMB 495.2695 million), customer 4 for 2.65% (RMB 455.3279 million), and customer 5 for 2.12% (RMB 365.4199 million). This single-source data has not been cross-checked against the original annual report and should be verified against the latest annual report.
• Comparison: Media reports state that Tongfu Microelectronics’ largest customer accounted for as much as 52.29% of sales due to its relationship with AMD. Huatian therefore has a significantly more diversified customer structure than Tongfu, providing greater resilience to single-customer volatility but less scale upside from a major anchor customer. This comparison is based on media figures and has not been independently verified.
• Structural bargaining dynamics: Fabless customers generally use multi-source procurement strategies. Although single-customer concentration is relatively low, customers retain strong supplier-switching power and annual price-reduction leverage. Huatian exchanges customer diversification for resilience against single-customer fluctuations.
• Working-capital requirements: Clean, company-level data on receivable days were not obtained. One first-hand lead is that the top five receivables by debtor at year-end 2024 totaled RMB 207,470,152.62, or 32.98% of total receivables and contract assets, with the largest single debtor accounting for 18.69% (source: Huatian Technology 2024 annual report). However, revenue in the same note was only RMB 3.778 billion (domestic RMB 3.085 billion and overseas RMB 692 million), clearly a subsidiary or segment figure rather than a consolidated figure. This receivables ratio therefore cannot be directly used to draw conclusions about the company’s overall working capital. Receivable days/receivables-to-revenue should be marked as data pending, or consolidated year-end 2024 receivables and annual revenue of RMB 14.462 billion should be used for an independent calculation.
• Customer concentration: On 2025-12-31, the top five customers accounted for RMB 4.346 billion of sales, or 25.25% of revenue (customer 1: 11.73%; customer 2: 5.87%; customer 3: 2.88%; customer 4: 2.65%; customer 5: 2.12%). The data come from chaguwang’s citation of the annual-report “top five customers” table and have not been cross-checked against the original annual report; the latest annual report should prevail. Only one year of data was obtained, with no historical series. Supplier concentration: data on the combined share of the listed company’s top five suppliers are unavailable. The “approximately 64%” figure appearing in the search results refers to the acquisition target Huarui Microelectronics, not the listed company.

Huatian Technology occupies the “midstream manufacturing foundry” segment of the semiconductor value chain—the lower-left portion of the smile curve. It does not control the high-margin design/IP side or the equipment/EDA bottlenecks. Instead, it earns processing fees through capacity scale, advanced-packaging capability and customer mix. During industry troughs, gross margin can fall to single-digit levels and depreciation can consume profitability. Three factors are genuinely driving further gross-margin improvement: (1) migration from traditional leadframe products to advanced packaging such as FCBGA, SiP, wafer-level packaging, Bumping and 2.5D/3D, whose growth is materially faster than that of traditional packaging; (2) fixed-depreciation dilution as capacity utilization recovers with the cycle; and (3) cost pass-through through the raw-material/packaging-pricing linkage mechanism, rather than simply industry-wide price increases.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

The latest period is the 2026 interim report (2026-06-30, disclosed on 2026-08-21/22). Supplemental data for the period: recurring attributable net profit of RMB 250 million, turning positive year on year (+3,177.78%); basic EPS of RMB 0.2483; gross margin of 14.34%; ROE of 4.28%; debt-to-assets ratio of 51.51%; net operating cash flow of RMB 1.012 billion, down 36.07% year on year. Quarterly breakdown: Q2 revenue of RMB 5.711 billion (+35.61% year on year, +18.99% quarter on quarter, a quarterly record), Q2 attributable net profit of RMB 727 million (+196.57% year on year, +737.25% quarter on quarter), versus only RMB 87 million in Q1. The earnings preview dated 2026-07-13 forecast 1H 2026 attributable net profit of RMB 750–850 million (+231.16% to +275.31% year on year), with the actual RMB 813 million near the midpoint. Definition note: the RMB 563 million difference between attributable net profit of RMB 813 million and recurring profit of RMB 250 million mainly came from extraordinary items, including approximately RMB 487 million from fair-value changes in financial assets and securities investment income. Securities investment therefore contributed close to half of current-period profit. Eastmoney’s peer table lists “net profit of RMB 848.1 million,” which likely represents total net profit including minority interests and differs from the RMB 813 million attributable figure; the two should not be mixed. FY 2025 basic EPS was separately listed at RMB 0.22, with gross margin of 13.26%; FY 2024 EPS was RMB 0.1923; FY 2023 EPS was RMB 0.0706. Sources: China Securities Journal (2026-08-22), Jiemian News, Economic Information Daily/Xinhua (2026-08-23), Zhitong Finance/Securities Star, Eastmoney News, Eastmoney F10, Stockstar key indicators, aastocks earnings summary, stockanalysis.com and Reuters financial data.

3.2 Earnings Forecasts

3.3 Valuation and Institutional Ratings

4. Recent News and Announcements

4.1 1H 2026 Earnings Preview

Announcement date: July 14, 2026; announcement no. 2026-046. Attributable net profit for January–June 2026 is expected at RMB 750–850 million, up 231.16%–275.31% year on year (the prior-year comparable figure was RMB 226.4785 million, or approximately RMB 226.48 million). Recurring profit is expected at RMB 200–280 million, compared with a loss of RMB 8.1315 million in the prior-year period, representing a return to profitability and year-on-year growth of +2,559.59% to +3,543.42%. Basic EPS is expected at RMB 0.2290–0.2595 per share, compared with RMB 0.0706 in the prior-year period. Reasons for the change: (1) sustained improvement in integrated-circuit demand, increased market development, product-mix optimization and synchronized growth in production scale, revenue and profit; and (2) a year-on-year increase of approximately RMB 460 million in fair-value gains on trading financial assets and investment income during the reporting period, classified as extraordinary items. A significant portion of the profit increase therefore came from investment income rather than core operations and should be highlighted. Sources: original Shenzhen Stock Exchange announcement, Zhitong Finance and Caizhongshe.

4.2 1H 2026 Interim Report

Disclosed on the evening of August 21, 2026. Revenue was RMB 10.511 billion, up 35.09% year on year; attributable net profit was RMB 813 million, up 259.15%; recurring profit was RMB 250 million, up 3,177.78% year on year and turning positive; net operating cash flow was RMB 1.012 billion, down 36.07%; basic EPS was RMB 0.2483; weighted-average ROE was 4.44%, up 3.09 percentage points year on year. Extraordinary items totaled RMB 563 million, including RMB 487 million from fair-value changes in and disposal of financial assets and RMB 221 million in government grants. Quarterly figures: Q2 revenue was RMB 5.711 billion (+35.61% year on year, +18.99% quarter on quarter), and Q2 attributable net profit was RMB 727 million (+196.57% year on year, +737.25% quarter on quarter); Q1 attributable net profit was approximately RMB 86.79 million. Dividend policy: no cash dividend, bonus shares or capitalization of reserves. Based on the August 21 closing price, PE (TTM) was approximately 44.62x and PB (LF) approximately 3.04x, as calculated by China Securities Journal and not officially provided. Sources: China Securities Journal/China Securities Intelligence, China Fund News, China Securities Taurus and aastocks. Cross-check: the three figures of RMB 10.511 billion revenue, RMB 813 million attributable net profit and +259.15% growth are consistent across China Securities Journal, China Fund News and aastocks and may be regarded as reliable.

4.3 M&A: Proposed Acquisition of 100% of Huarui Microelectronics for RMB 2.996 Billion, Approved by the Shenzhen Stock Exchange Review Committee

Transaction: The company proposes to acquire 100% of Huarui Microelectronics Co., Ltd. from 27 counterparties, including Tianshui Huatian Electronics Group, Xi’an Houyi Investment and Xi’an Xintian Yubo, through a combination of share issuance and cash payment, and to raise supporting funds. Transaction value is RMB 2.996 billion (acquisition consideration; source: Economic Information Daily and China Securities Taurus). Supporting financing: no more than RMB 400 million (RMB 40,000 ten thousand) from no more than 35 targeted investors (source: 10jqka/China Listed Companies Network, 2026-08-14).

Timeline: trading suspension from the market open on September 25, 2025 (suspension announcement no. 2025-045); transaction proposal approved at the seventh meeting of the eighth Board of Directors on October 16, 2025; trading resumed from the market open on October 17, 2025 (announcement no. 2025-048, including general risk warnings); the Shenzhen Stock Exchange M&A and Reorganization Review Committee reviewed the transaction at its 12th meeting of 2026 on August 13, 2026, concluding that “the transaction complies with restructuring conditions and information-disclosure requirements,” meaning it passed the review; announcement dated August 14, 2026 (announcement no. 2026-051).

Current status: registration approval from the China Securities Regulatory Commission remains outstanding. The original announcement expressly warns that final approval and timing are uncertain. Huarui Microelectronics’ financials for 2023–2025 were as follows: revenue of RMB 1.14 billion/RMB 1.38 billion/RMB 1.68 billion and net profit of -RMB 148 million/RMB 14 million/RMB 79 million, respectively. Performance commitments over three years differ by business: the design business group commits to minimum net profit of RMB 139 million, RMB 166 million and RMB 189 million, respectively; the packaging-and-testing business group commits only to positive cumulative net profit over the commitment period.

Transaction rationale: strengthening the packaging-and-testing business through power-device packaging and testing, creating a second growth curve through proprietary power-device design, and realizing synergies. Sources: Economic Information Daily, Shenzhen Stock Exchange announcements, China Fund News and Gelonghui. Cross-check note: one 10jqka/China Listed Companies Network article incorrectly identifies the target as “Huarui Microelectronics (600360).” 600360 is another company, Hubei Huagong Technology, and the target is not currently listed. Shenzhen Stock Exchange announcements should prevail.

4.4 Latest Announcement in September: Launch of Foreign-Exchange Hedging

On September 11, 2026, the company convened the 18th meeting of the eighth Board of Directors by written communication and approved the proposal on foreign-exchange hedging. Announcement no. 2026-056; announcement date September 11, 2026 (some websites list September 12). Scale: up to the equivalent of US$247 million, available on a revolving basis during the 12 months from Board approval; the maximum contract value at any point may not exceed this amount. Margin/premium: funds occupied at any point during the period may not exceed 50% of the company’s most recent audited net profit. Products: forward foreign-exchange settlement and sales, foreign-exchange swaps, currency swaps, foreign-exchange futures, foreign-exchange options and other compliant foreign-exchange derivatives; currencies are limited to major settlement currencies such as the US dollar.

Purpose and principles: hedging foreign-exchange exposure arising from cross-border business, not arbitrage or speculation; funding from internal funds, with no proceeds raised from financing involved. Board approval was sufficient, and shareholder approval was not required. The transaction does not constitute a related-party transaction and was approved by the Board’s Audit Committee. Sources: Securities Daily, CFi.cn, Sina Finance, NetEase and Securities Star. Cross-check: the key figures—US$247 million, 12 months and no more than 50% of the latest audited net profit—are consistent across multiple sources and may be relied upon.

4.5 Other Corporate Developments

Announcement dated August 1, 2025: subsidiaries Huatian Jiangsu and Huatian Kunshan, together with wholly owned partnership Advanced No. 1, jointly established Nanjing Huatian Advanced Packaging Co., Ltd. with registered capital of RMB 2.0 billion. Huatian Jiangsu contributed RMB 1.0 billion for 50%, Huatian Kunshan RMB 665 million for 33.25%, and Advanced No. 1 RMB 335 million for 16.75%. The company focuses on 2.5D/3D packaging and testing. Several announcements were issued in September 2025 regarding subsidiaries’ investments in special-purpose and industrial funds, including related-party transactions. A government subsidy was announced on July 1, 2025. On May 19, 2025, the first exercise period for the first grant under the 2023 stock-option incentive plan adopted independent exercise.

Dividends: the 2024 dividend plan was RMB 0.058 per 10 shares, with the ex-dividend date on 2025-05-06; no distribution or capitalization was made in 1H 2025. Shareholder structure (source: Huaxi Securities app, updated 2026-08-29, found in only one source and requiring caution): Tianshui Huatian Electronics Group 21.88% unchanged; Hong Kong Securities Clearing Company 2.49%, increased; National Integrated Circuit Industry Investment Fund Phase II 2.18%, reduced; 862,569 shareholders, up 459,911 from the prior period.

4.6 Uncertainties and Items Requiring Further Verification

1. Earnings quality: Of the RMB 813 million in 1H 2026 attributable net profit, RMB 563 million came from extraordinary items, including RMB 487 million from investment income/fair-value changes and RMB 221 million from government grants. Recurring profit was only RMB 250 million. Both the earnings preview and interim report explicitly state that approximately RMB 460 million of profit came from investment-related gains. Any reference to “net profit up 259%” must be accompanied by the recurring-profit figure to avoid misleading conclusions.

2. Acquisition not yet completed: the transaction has only passed the Shenzhen Stock Exchange Review Committee and still requires CSRC registration approval, so uncertainty remains.

3. Divergent ownership figures for the second-phase national fund: a Cailian Press page states that the fund held 2.89% as of March 31, 2026, while a Huaxi Securities page updated through August 29, 2026 states 2.18% and shows a reduction. The dates and sources differ, and no direct official quarterly-report verification was obtained. The company’s periodic reports and top-ten shareholder tables should prevail.

4. The sharp increase of 459,911 in shareholder numbers appears only in a single Huaxi Securities source and has not been cross-verified.

5. The search for share repurchases and dedicated announcements on major-shareholder purchases or disposals was not completed because the search process was interrupted. Existing materials do not show a share-repurchase announcement in 2026 or confirm any recent dedicated announcement regarding major-shareholder purchases or disposals. The “reduction” shown in the top-ten shareholder data is only a quarterly-report figure. These items may have been missed and should be checked in subsequent searches of original Shenzhen Stock Exchange/Cninfo documents.

6. Date convention: all price-related metrics such as PE and PB were calculated by media sources using the August 21 closing price and are not official. The interim report was formally disclosed on the evening of August 21, 2026. The current point in time is approximately September 11–12, 2026, as defined by the latest announcement date.

4.7 One-Sentence Summary

As of mid-September 2026, three main themes dominate Huatian Technology’s recent news flow: (1) strong 1H 2026 earnings growth, with the interim report released on August 21 showing revenue of RMB 10.511 billion and attributable net profit of RMB 813 million, although the figure included substantial non-recurring investment income and recurring profit was only RMB 250 million; (2) the RMB 2.996 billion acquisition of 100% of Huarui Microelectronics passed review on August 13 and is awaiting CSRC registration; and (3) the Board approved foreign-exchange hedging of up to US$247 million on September 11. No 2026 share-repurchase announcement or clear dedicated announcement on major-shareholder purchases or disposals was found, although the search was not exhaustive and omissions remain possible.

5. Share-Price Performance and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

The research notes indicate that Huatian Technology (002185) is currently fluctuating around RMB 16, while quotations differ across sources (RMB 16.20 and down 1.10% on Eastmoney versus RMB 16.17 and up 1.25% on 9F Intelligence), reflecting inconsistent data cutoff times. The notes state that Bollinger Bands, RSI, moving averages and the 52-week range were tested, but no specific values were supplied, preventing quantitative analysis. The only available technical-pattern information shows a three-year long-term trend score of 32 from Abu Quantitative, rated bearish, with a high-level inverted-hammer/shooting-star pattern, a small rebound ending within a downtrend, suspected strong resistance remaining effective and an exhaustion-type decline risk. Sina Stock Exchange describes the short-term trend as range-bound with a mildly strong bias. In terms of fund flows, Sohu-cited data show trading value of RMB 548 million and major-fund net inflow of RMB 17.6668 million, while Cailian Press data at 14:15 show net major-fund purchases of RMB 264 million. Overall, bullish and bearish signals are mixed: short-term strength coexists with long-term weakness, but the absence of key technical data prevents a precise technical judgment.

5.3 Short-Term Outlook (Next Week; Scenario Analysis for Reference Only)

⚠️ Risk warning: The following is a subjective scenario analysis based on limited data in the research notes. It does not constitute investment advice. Specific technical-indicator values are unavailable, so readers should exercise caution.

① Key Technical Levels

② Scenarios for the Next Week (Subjective Weights, Not Statistical Probabilities)

• Range-bound consolidation (relatively higher weight, approximately 60%; subjective judgment, not a statistical probability): The share price fluctuates narrowly within RMB 15.8–16.5, with trading value remaining around RMB 500 million while the market awaits a directional choice. Trigger conditions: no major changes in news flow, stable broader market and semiconductor sector, and no significant expansion in trading value.
• Weak downside move (medium weight; subjective judgment, not a statistical probability): The share price breaks below the RMB 15.8 first-support level and seeks support at a lower range. Trigger conditions: realization of the exhaustion-type decline risk identified by Abu Quantitative, a shift in major-fund flows to net outflows, or shrinking trading value.
• Strengthening rebound (medium-to-low weight; subjective judgment, not a statistical probability): The share price breaks above the RMB 16.2–16.5 short-term resistance range on higher volume and expands upward. Trigger conditions: strength in the semiconductor/advanced-packaging sector, a company-specific catalyst, or a significant increase in daily trading value to above RMB 700 million.

③ Fund-Flow and Liquidity Background

The research notes show recent trading value of approximately RMB 548 million, based on Sohu-cited data, with major-fund net inflow of RMB 17.6668 million. Cailian Press data at 14:15 show net major-fund purchases of RMB 264 million. The notes state that shareholder structure and top-ten shareholder concentration were tested, but provide no specific data, such as holdings by public funds, social-security funds or QFII institutions. It is therefore impossible to assess shareholding concentration or institutional participation. The shareholder-structure data appearing in the notes are incomplete and may be stale. Based on the available information, the stock has moderate liquidity, but the lack of concentration data prevents further assessment of order-book depth and slippage risk.

If daily trading value remains above RMB 700 million, materially higher than the recent RMB 548 million level, this may be treated as a fund-participation signal, but it should be confirmed together with a price breakout through key levels.

④ Points to Monitor (Observation Framework Only, Not Trading Instructions)

• Monitor whether the share price breaks through the RMB 16.2–16.5 short-term resistance range, with higher trading value required to confirm validity
• Monitor defense of the RMB 15.8–16.0 first-support range; a break below could lead to a test of a lower range
• Monitor whether daily trading value remains above RMB 700 million as an observation signal for fund participation
• Monitor the overall semiconductor/advanced-packaging sector and changes in company news as triggers for scenario changes

The above scenarios are based on closing-price data, historical prices and technical-indicator calculations available in the research notes as of an unspecified data date. Some data were cited from different sources with inconsistent timestamps. Short-term prices may also be affected by news flow, fund flows, broader-market conditions and other factors. Technical indicators are inherently lagging and limited. The scenarios do not guarantee future performance and do not constitute buy or sell recommendations. Investors should make independent judgments based on the latest market information and bear their own investment risks.

6. Industry Structure and Competitor Analysis

6.1 Industry Conditions

Global semiconductor sales reached US$791.7 billion in 2025, up 25.6% year on year and a record high. Domestic integrated-circuit industry value added rose 26.7% year on year, exceeding the 10.6% growth of the broader electronic-information manufacturing sector. The growth engine of packaging and testing has shifted from consumer electronics toward AI/high-performance computing, memory and automotive electronics. In the global OSAT market, ASE and Amkor rank first and second, while mainland Chinese companies JCET, Tongfu Microelectronics and Huatian Technology form the domestic first tier. YSIC and Wafer Works are specialized players in specific segments.

6.2 Competitive Landscape

• Industry background (2025, company IR figures): global semiconductor sales of US$791.7 billion, up 25.6% year on year and a record high; domestic integrated-circuit industry value added up 26.7%, exceeding the 10.6% growth of the broader electronic-information manufacturing sector.
• The growth engine of packaging and testing has shifted from consumer electronics to AI/high-performance computing, memory and automotive electronics.
• Global OSAT ranking (based on public ranking conventions; original Yole/TrendForce sources should be reviewed): ASE (Taiwan 3711) ranks first globally; Amkor (US-listed AMKR) ranks second; JCET (600584.SH) ranks first in mainland China; Tongfu Microelectronics (002156.SZ) ranks second in mainland China; Huatian Technology (002185.SZ) ranks third in mainland China and sixth globally.
• Huatian Technology’s three key differentiators: (1) the most diversified customer structure, with the largest customer accounting for 11.73% versus Tongfu’s 52.29%, providing resilience to single-customer volatility but less upside from sharing industry growth with a major customer; (2) the most globalized capacity footprint, spanning Tianshui, Xi’an, Kunshan, Nanjing, Jiangsu, Shaoguan and Shanghai plus Malaysia-based Unisem, with 2025 overseas revenue growth of 21.00%, above domestic growth of 17.93%; and (3) an advanced-packaging position characterized as a “catch-up” position. The 2.5D/3D line entered operation in 1H 2025, Nanjing Huatian Advanced Packaging was established with RMB 2.0 billion of registered capital, CPO remains under development and FOPLP has completed customer validation. The company remains behind ASE, JCET and Amkor in 2.5D/3D mass-production maturity.
• Capacity expansion/strategic actions: in August 2025, Huatian Jiangsu, Huatian Kunshan and Advanced No. 1 jointly established Nanjing Huatian Advanced Packaging with registered capital of RMB 2.0 billion, focusing on 2.5D/3D packaging and testing. The Pangu Semiconductor advanced-packaging project in Jiangsu has total investment of RMB 3.0 billion and has partially entered production, according to media reports in 2026-09. The Huarui Microelectronics acquisition was initiated in September 2025; an announcement in February 2026 proposed the acquisition of 100% of Huarui Microelectronics through share issuance and cash payment for RMB 2.996 billion. It has passed the Board and shareholder meetings and been accepted by the Shenzhen Stock Exchange. Huarui is a subsidiary controlled by controlling shareholder Huatian Group, making the transaction a related-party transaction, and operates across high-performance power-device design and packaging/testing.
• Nanjing base investment has been reported at either RMB 8.0 billion or RMB 30.0 billion. The 2018 agreement specified total investment of RMB 8.0 billion in three phases for memory, MEMS and AI packaging/testing. A self-media post on Eastmoney claims total investment of RMB 30.0 billion, including RMB 10.0 billion for Phase II and production capacity by 2028; this has not been verified against a first-hand announcement. One figure should be selected when cited, with the source type identified.
• “Sixth globally and top three in mainland China” is a company/media figure. No original-page evidence was found from Yole, TrendForce or the China Semiconductor Industry Association, so it should be labeled as a “company-disclosed position.”

6.3 Major Competitors

Compared with the other two domestic packaging-and-testing leaders, JCET and Tongfu Microelectronics, Huatian Technology has three core differences. First, it has the most diversified customer structure, with its largest customer accounting for 11.73%, far below Tongfu’s 52.29% AMD concentration. This provides resilience to single-customer volatility but less scale elasticity from sharing industry growth with a major customer; some of JCET’s and Tongfu’s scale leadership comes from major-customer relationships. Second, it has the most globalized capacity footprint, spanning Tianshui, Xi’an, Kunshan, Nanjing, Jiangsu, Shaoguan and Shanghai plus Malaysia-based Unisem, facilitating overseas customer coverage and geographic diversification. Overseas revenue growth in 2025 was 21.00%, above domestic growth of 17.93%. Third, advanced packaging remains in a catch-up position. The 2.5D/3D line entered operation in 1H 2025, Nanjing Huatian Advanced Packaging was established with RMB 2.0 billion in registered capital, CPO remains under development and FOPLP has completed customer validation, but the company still trails ASE, JCET and Amkor in the maturity of 2.5D/3D mass production. In addition, Huatian’s attributable net margin is very low—approximately 4.1% in 2025—and extraordinary items account for a high proportion of profit. Recurring profit must therefore be used when assessing profitability.

7. Risk Factors

• Core-profit quality and earnings-sustainability risk: Attributable net profit was RMB 813 million in 1H 2026, while recurring attributable net profit was only RMB 250 million. Extraordinary items totaled RMB 563 million, including approximately RMB 487 million from fair-value changes in financial assets and investment income. If investment income declines or financial-asset values fluctuate, attributable profit could fall sharply.
• OSAT cycle and capacity-utilization risk: Integrated-circuit packaging and testing accounted for 99.98% of revenue in 2025. Fixed assets and the multi-site footprint make earnings highly sensitive to orders and capacity utilization. If memory, consumer-electronics, communications or other downstream demand weakens, depreciation could further compress gross margin.
• Advanced-packaging technology and commercialization risk: The 2.5D/3D line has entered operation, FOPLP has completed customer validation and CPO remains under development, but the company remains in catch-up mode relative to ASE, JCET and Amkor. If technical validation, customer introduction or production ramp-up falls short, advanced-packaging upgrades may not translate into revenue or profit.
• M&A approval and integration risk: The proposed acquisition of 100% of Huarui Microelectronics for RMB 2.996 billion has only passed the Shenzhen Stock Exchange M&A and Reorganization Review Committee and still requires CSRC registration approval. Completion is uncertain, and the target reported a loss in 2023. Post-acquisition synergies, fulfillment of performance commitments and integration outcomes require monitoring.
• Customer bargaining and order-volatility risk: Although the top five customers accounted for approximately 25.25% of revenue in 2025 and the largest customer for 11.73%, customer concentration is relatively diversified. Nevertheless, Fabless customers typically use multi-source procurement and retain supplier-switching and annual price-reduction power, potentially preventing the company from fully passing through material, labor and depreciation costs.
• Expansion and capital-expenditure risk: The company operates sites in Tianshui, Xi’an, Nanjing, Kunshan, Shanghai, Jiangsu, Shaoguan and Malaysia and is advancing projects such as Nanjing Huatian Advanced Packaging. If new capacity comes online faster than orders grow, capacity utilization may be inadequate, depreciation may rise and cash-payback periods may lengthen.
• Overseas operations and foreign-exchange risk: Overseas revenue was RMB 3.807 billion in 1H 2026, or 36.22% of total revenue, and overseas operations are conducted through Malaysia-based Unisem. Although the company approved foreign-exchange hedging of up to the equivalent of US$247 million, exchange-rate fluctuations, changes in overseas operations and hedging effectiveness may still affect profit and cash flow.
• Technical-data and comparability risk: Current price data are around RMB 16, but Eastmoney and 9F Intelligence report inconsistent quotations and daily changes. Moving-average, RSI, Bollinger Band and 52-week high/low data are unavailable. The existing conclusions of long-term weakness and short-term range-bound strength cannot be fully quantified and should not be used to make definitive trend judgments.

8. Conclusion and Outlook

Huatian Technology’s core growth thesis rests on recovering semiconductor packaging-and-testing demand, higher capacity utilization and a rising share of advanced packaging. Revenue increased 35.09% year on year in 1H 2026, gross margin rose to 14.34%, and Q2 revenue and attributable net profit reached RMB 5.711 billion and RMB 727 million, respectively, indicating that the recovery in core operating scale and profitability is continuing. Customer diversification, overseas-site coverage and projects involving 2.5D/3D and FOPLP provide a foundation for addressing demand from memory, automotive electronics, computers and high-performance computing.

Key areas to monitor are whether recurring profit can continue to improve, whether advanced-packaging lines can generate stable orders and revenue, capacity utilization and depreciation pressure after expansion, and whether the Huarui Microelectronics acquisition can complete registration and closing and deliver the design-business performance commitments. Net operating cash flow was RMB 1.012 billion in 1H 2026, down 36.07% year on year, while investment income and fair-value changes represented a high proportion of attributable profit. This indicates that the quality of core earnings still requires validation through subsequent financial reports.

The company faces multiple variables, including the industry cycle, customer bargaining power, advanced-packaging competition and capital expenditure. The Huarui Microelectronics acquisition could add power-device design and packaging/testing capabilities, but it involves a related-party transaction, share and cash consideration, and supporting fundraising. Integration and approval outcomes remain uncertain. The foreign-exchange hedging limit of up to the equivalent of US$247 million can offset part of the company’s currency exposure, but derivatives management and fluctuations in overseas operations still require attention.

Data Sources

• 002185 Huatian Technology
• Huatian Technology (sz002185)
• Huatian Technology (002185)_Company Overview_Stock Price_Real-Time Quotes_Charts_News_Analyst Views_Financial Reports_FinScope-AI Makes Investing Simpler
• Huatian Technology: Core business is integrated-circuit packaging and testing
• SZ.002185 Huatian Tech - A-Share Real-Time Quote - Company Information
• Huatian Technology: Core business is integrated-circuit packaging and testing—Securities Star
• In which areas are the company’s AI application technologies mainly used?—Huatian Technology (002185) Investor Relations Platform
• Huatian Technology (002185.SZ) Deep F9-PC_HSF9 Data
• Huatian Technology: No direct business cooperation with SMIC
• Huatian Technology (002185) Company Profile—Hexun Market Center
• 002185 Huatian Technology
• Huatian Technology (002185.SZ) Deep F9-PC_HSF9 Data
• Huatian Technology Listed-Company Information
• SZ.002185 Huatian Tech - A-Share Real-Time Quote - Company Information
• Huatian Technology (002185) 1H 2025 Management Discussion and Analysis
• Huatian Technology: Core business is integrated-circuit packaging and testing, with products used across multiple fields
• 002185: Trading suspended; acquisition of a semiconductor company
• SZ.002185 Huatian Tech - A-Share Real-Time Quote - Company Information
• China Stock Investor Relations Platform Interactive Q&A—Tianshui Huatian Technology Co., Ltd.—July 1, 2019
• Huatian Technology: Independent Financial Adviser Report on Share Issuance and Cash Acquisition of Huarui Microelectronics and Supporting Fundraising—9F Intelligence
• China Stock Research Activity Form—Tianshui Huatian Technology Co., Ltd.—June 13, 2023
• Shenzhen Stock Exchange Holds the 366th “Visit Listed Companies—Huatian Technology” Event
• Huatian Technology—Packaging and testing products
• Huatian Technology—Fully automatic coplanarity tester
• Shenzhen Stock Exchange Holds the 366th “Visit Listed Companies—Huatian Technology” Event
• Huatian Technology (002185)—Research Notes—20230613
• Kangqiang Electronics: leadframes and bonding wire, essential packaging-and-testing consumables
• Huatian Technology: Transaction Report for Share Issuance and Cash Acquisition of Huarui Microelectronics and Supporting Fundraising—9F Intelligence
• Huatian Technology: Draft Transaction Report, Revised Version—9F Intelligence
• Huatian Technology: Draft Transaction Report, Revised Version—9F Intelligence
• What are Huatian Technology’s domestic customers?—Eastmoney Caifuhao
• Daily Research on a Listed Company—No. 60: Huatian Technology
• Huatian Technology (002185) Operating-Analysis Query—Chaguwang
• Huatian Technology: Net profit surges 570%
• Huatian Technology: Special Verification Opinion on Reply to Shenzhen Stock Exchange Inquiry
• Huatian Technology: 2024 Annual Report
• Capacity release and technology upgrades drive 2025 net profit up 15.3%
• Capacity release and technology upgrades drive 2025 net profit up 15.3%
• Huatian Technology: 2025 Annual Report Summary
• Huatian Technology (SZ:002185)—Public Information and Industry Review
• Capacity release and technology upgrades drive 2025 net profit up 15.3%
• Huatian Technology: 2025 Annual Report Summary—Securities Star
• Huatian Technology: Industry Leader
• 2025 Annual Report Review: Huatian Technology
• Huatian Technology: Investor Relations Management Information
• Huatian Technology: Investor Relations Management Information—9F Intelligence
• 002185 Huatian Technology—Core Business
• Huatian Technology (002185.SZ) Core Themes
• Huatian Technology (002185.SZ)—US Stocks
• Tianshui Huatian Technology (SHE:002185) Financial Overview
• Huatian Technology (002185) Financial Reports—Investing.com
• SZ:002185 Financials—Investing.com India
• Tianshui Huatian Technology Co. Announces Results for FY 2024
• SZ:002185 Financials—Tianshui Huatian Technology Co Ltd
• Huatian Technology (002185.SZ): 1H 2024 net profit RMB 223 million
• Huatian Technology (002185) Key Indicators
• 002185.SZ—Financials
• Huatian Technology (002185)—Financial Overview
• Huatian Technology (002185.SZ)—Quick Quote
• Tianshui Huatian Technology Co Ltd Consensus Estimates
• Huatian Technology (002185) Analyst Consensus Estimates
• Citi: Target prices raised significantly for JCET, Tongfu Microelectronics and Huatian Technology
• Citi: Target prices raised significantly for JCET, Tongfu Microelectronics and Huatian Technology
• Tianshui Huatian Technology Stock Forecast and Price Targets
• 002185 Huatian Technology
• Upgraded Investment Rating—Research Reports—Securities Star
• Institutional Investment Ratings—Sina Finance
• Huatian Technology (002185.SZ) Earnings Forecast
• Huatian Technology (SZ002185) Peer Comparison
• Tianshui Huatian Technology Co., Ltd.: Analyst Forecasts and Estimates
• Huatian Technology rises 7.93%; Hualong Securities issued a “Buy” rating four weeks ago
• Huatian Technology (002185) Valuation Analysis and Investment Ratings
• Tianshui Huatian Technology Stock Forecast and Analyst Predictions—Simply Wall St
• Earnings forecast more than doubles, but stock hits limit down
• Tianshui Huatian Technology Stock Forecast and Analyst Estimates—Simply Wall St
• Southern Finance Network
• Huatian Technology: 1H 2026 net profit RMB 813 million, up 259.15%
• Huatian Technology (002185.SZ): 1H 2026 net profit RMB 813 million
• Huatian Technology: 1H net profit RMB 813 million, up 259.15%
• Huatian Technology: Securities investment contributed half of 1H net profit
• Huatian Technology (002185.SZ) Announces 1H Results
• Huatian Technology: 1H 2026 net profit up 259.15%
• Huatian Technology (002185.SZ): 1H attributable net profit RMB 813 million
• Huatian Technology 1H revenue and net profit both increase
• Huatian Technology: 1H net profit RMB 813 million, up 259.15%
• Huatian Technology: Proposal to launch foreign-exchange hedging of up to US$247 million
• Huatian Technology: Announcement on Foreign-Exchange Hedging
• Huatian Technology: Proposed foreign-exchange hedging of up to US$247 million
• Huatian Technology (002185): Foreign-Exchange Hedging
• Huatian Technology: Announcement on Foreign-Exchange Hedging
• Huatian Technology: Resolution of the 18th Meeting of the Eighth Board of Directors
• Huatian Technology: Resolution of the 18th Meeting of the Eighth Board of Directors
• Huatian Technology: Announcement on Foreign-Exchange Hedging
• Huatian Technology: Summary of the Resolution of the 18th Meeting of the Eighth Board
• e Company—Listed-Company Information Platform
• Huatian Technology (sz002185) Market Trend
• Huatian Technology 16.20 -0.18 (-1.10%) Latest Price
• Huatian Technology (002185) Market Data
• Huatian Technology (002185.SZ)
• Huatian Technology (002185) Latest Price
• Huatian Technology (002185) Technical Analysis
• Tianshui Huatian Technology Technical Analysis
• Real-Time Huatian Tech A Chart
• Huatian Technology (SZ:002185)
• Tianshui Huatian Technology Co., Ltd.
• Huatian Technology Stock Trend Analysis
• Huatian Technology (002185) Three-Year Long-Term Trend Score
• Huatian Technology Fund Flows
• Huatian Technology Fund Flows
• Huatian Technology falls 2.01%, trading value RMB 548 million
• Huatian Technology Net Major-Fund Purchases of RMB 264 Million at 14:15
• Huatian Technology Technical Indicators
• Short-Term Technical Analysis: Huatian Technology Range-Bound with a Mildly Strong Bias
• Huatian Technology Stock Analysis
• Huatian Technology—Comprehensive Fund Flows

This report was automatically researched, compiled and generated by AI based on publicly available sources. The research notes do not provide a clear price-data cutoff date or time and contain only market links and scattered price information, such as RMB 16.20 and down 1.10% on Eastmoney and RMB 16.17 and up 1.25% on 9F Intelligence. A consistent cutoff time therefore cannot be confirmed, and information may differ in timeliness. Specific data should be verified against the company’s formal announcements and authoritative data terminals. This report is for information organization and research reference only, does not constitute investment advice, and investors should make independent judgments and bear their own investment risks.