BRIEF: Fortior’s strong revenue growth fails to translate to big profit gains
Chip designer Fortior Technology (Shenzhen) Co. Ltd. (1304.HK; 688279.SH) said on Monday it expects to report its revenue rose about 29% year-on-year to 774 billion yuan ($113 billion) in 2025, while its profit rose by a far slower 1.9% to 227 million yuan over that time.
The company attributed the strong revenue growth to its ongoing investment in R&D, which has helped it expand into emerging sectors such as automative and industrial chips, complementing its focus on small household appliances and white goods. It did not comment on why its profit growth rate significantly trailed its revenue gains.
The company’s annual revenue rose 46% year-on-year to 600 billion yuan in 2024, while its profit rose 27% to 222 million yuan that year.
Fortior shares fell about 4.9% during Monday morning trading in Hong Kong. The stock briefly rose as much as 9% after its Hong Kong IPO last July, but has given back nearly all the gains and now trades just above its listing price.
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