Setting up factories across five countries and aggressively acquiring in Europe! See how Yutong Technology is breaking the cycle of industry competition with global delivery
In 2026, when the domestic paper packaging and printing industry is tormented by the saturation of bulk machine-made paper and razor-thin profits, leaving many sleepless nights, what exactly is Yutong Technology, a trendsetter in the industry, relying on to resist the cycle?
On May 28, Yutong Technology held its latest earnings presentation. During this critical exam for investors across all channels, the management unveiled a series of solid data and underlying strategies, clearly signaling that this giant with annual revenue in the tens of billions is leveraging its global delivery network spanning multiple countries to firmly extend its reach into the deep waters of high-value-added precision manufacturing, including AI server liquid cooling, robotic dexterous hands, and AI glasses.
In the first quarter, it raised 3.79 billion yuan in cash and poured 1.12 billion yuan in real cash into dividends
Let's first take a look at Yutong Technology's fundamental assets delivered for the first quarter of 2026. Financial reports show that in the first quarter of this year, the company achieved main business revenue of 3.793 billion yuan, a steady year-on-year increase of 2.55%; Net profit attributable to shareholders reached 246 million yuan, up 1.95% year-on-year; After deducting non-recurring gains and losses, net profit excluding non-recurring gains and losses was 250 million yuan, up 1.46% year-on-year.
Amid fierce industry competition and fierce price wars, Yutong has maintained its overall gross margin at a high level of 25.05%, with a debt ratio controlled at 43.43%, demonstrating strong counter-cyclical defensive attributes.
What shocked the capital market and peers even more was Yutong's confidence in fair returns to shareholders. For the full fiscal year 2025, Yutong Technology plans to distribute a total of 1.124 billion yuan in cash dividends (including interim dividends), which directly accounts for 70.61% of the net profit attributable to shareholders for the period. The confidence behind this high dividend payout comes precisely from its extremely abundant cash flow and multi-dimensional profit moat.
Facing the underlying cost noose caused by upstream pulp price fluctuations, Yutong unveiled its risk-smoothing combination at the meeting: through strategic low-level stocking, broadening diversified procurement channels, locking in negotiated purchase prices within a certain period, and deep cooperation with upstream suppliers while timely transmitting pressure to downstream customers, it firmly protected the 25% gross margin red line.
Regarding the risk of settlement losses from RMB appreciation in the foreign exchange market, Yutong directly applied to the board of directors and was approved for a foreign exchange hedging quota of up to 800 million USD, using professional financial hedging tools to trap the risk of large exchange rate fluctuations within the system.
AI glasses, liquid cooling modules, and smart hardware in a "trajectory deathmatch"
In the past, the industry's perception of Yutong was mostly limited to being a "premium color box supplier for tech giants like Apple." But at this performance meeting, the management's bold introduction of the "N" business (non-packaging high value-added precision manufacturing) completely tore off the label of a traditional low-end printing factory. Relying on years of deep experience serving top overseas tech clients, Yutong's four specialized and innovative subsidiaries are growing wildly in their respective fields, striving to build a clear second growth curve:
First, HUAYAN Technology (precision metal structural components and liquid cooling modules). As a national-level "Little Giant" specialized and innovative enterprise, HIM Technology possesses strong vertical integration and one-stop service capabilities. It focuses on the integrated R&D and manufacturing of stainless steel, titanium alloys, magnetic materials, and high-performance heat dissipation materials. Besides being used in precision hinge modules for consumer electronics, its most notable current focus is on the R&D layout in server liquid cooling and heat dissipation.
Currently, products such as quick-release connectors, liquid-cooled branch pipes, and metal liquid cooling modules developed by HUAYEN are being intensively advanced for major client validation and product development, indicating that Yutong has directly extended its reach into the core hardware supply chain of AI servers.
Second, Renhe Intelligent (high-end soft materials manufacturing). As a specialized and innovative enterprise in Shenzhen, Renhe Intelligent has long been deeply involved in the field of smart wearable devices, providing customized soft package solutions for the 3C electronics industry.
Third, Huabaoli (smart hardware and acoustic components). Focusing on precision components and smart hardware, it continuously promotes the collaborative development of "acoustics + smart terminals + robot manufacturing."
Fourth, Yutong New Materials (lightweight composite materials). It mainly serves as a pioneer in the application of lightweight composite materials for 3C and new energy vehicles, providing precision components with integrated lightweight functional structures.
In the current highly sci-fi AI glasses industry chain, Yutong Technology not only provides traditional packaging support but has also achieved astonishing multidimensional penetration: Renhe Smart has directly entered the soft material solution for smart glasses charging cases; Huabaoli provides core acoustic component support behind the scenes; Meanwhile, HIM Technology showcased its technological advantages in precision hinge modules. Although industry confidentiality agreements prevent disclosure of specific Silicon Valley major clients like Google, this combination has already allowed Yutong to profit significantly from the technical margin dividend in the high-end cutting-edge hardware sector.
And in the more futuristic robotics industry layout, Yutong is not just standing by and watching. Subsidiary Huabaoli has already undertaken assembly business for some robot products; HIM Technology has deep technical reserves in precision components and transmission systems, and is fully collaborating with leading customers in in-depth joint development of robotic dexterity hands and joints; Renhe Intelligent has made technical reserves in soft materials and structural components. At the same time, Yutong is actively exploring industrial robot scenario applications in its highly automated smart factory, achieving a two-way feedback loop between R&D and practical operation.
Heavy-duty packaging builds a hardcore matrix: taking advantage of land transportation for AI servers and power batteries
In addition to the special precision manufacturing of the "N" business, Yutong has also keenly avoided the vicious price wars caused by low-end cardboard on the physical defense line of traditional packaging, and has aggressively developed a product line including heavy-duty cartons, special wooden boxes, pallet collars, hazardous chemical packaging, heavy-duty blister pallets, and flight boxes.
The birth of this heavy product group directly addresses the pain points of high-value industrial goods in land transportation. Currently, Yutong has built highly comprehensive integrated heavy-duty packaging solutions in high-barrier sectors such as new energy vehicle parts, power batteries, intelligent robots, precision instruments, and AI servers. To ensure these tech giants' multi-base and multi-factory rapid response needs, Yutong has intensively built a stable supply system covering more than 20 core cities nationwide, firmly securing key customer loyalty through seamless logistics delivery.
Bases in five countries have successively started production, and Hungarian companies have been acquired, entering the heart of Europe
Facing an increasingly heated domestic stock environment, Yutong Technology has demonstrated a long-term vision for overseas expansion on the international stage. By 2025, the company has established a global super delivery network, with more than 40 production bases and four major service centers worldwide.
A close look at the construction drawings of its overseas bases shows rapid movements: in addition to in-depth deployments in Vietnam (Bac Ninh, Binh Duong), Thailand, Malaysia (Sungai Tanen, Johor Bahru), Indonesia (Bekasi, Dzongbang), India (Bangalore, Noida), the Philippines (Lipa), and Mexico (Guadalajara), by 2025, the Dzong Bang plant in Indonesia and the Johor Bahru plant in Malaysia have been successfully completed and put into operation, greatly enhancing regional capacity and extreme response capabilities in Southeast Asia.
Entering 2026, Yutong's overseas expansion has not slowed down; instead, it has seen a higher-level capital move-the company made a high-profile acquisition this year of a wholly-owned local packaging company in Hungary, Europe. This heavy blow directly strengthened Yutong's strategic layout in Europe, achieving localized delivery and zero-time delay delivery to high-end European clients.
Management clearly stated that in the future, the company will continue to adhere to the established direction of "global delivery, local service," comprehensively accelerate the construction of production bases and cross-border mergers and acquisitions in key core regions such as Europe and North America, leverage existing global major client resources, continuously secure high value-added overseas orders, and strive to steadily increase the proportion of overseas revenue and overall profitability.