Changxin Tech Secures Future Growth with Long-Term Agreements, High Gross Margin Trend Expected to Continue

During the recent Q3 2026 earnings conference call, Changxin Tech's management delivered key messages regarding the company's future trajectory. Addressing investor concerns about profit sustainability, the company provided clear responses.

Core Strategy: Building a Demand "Moat" with Long-Term Contracts

Management highlighted that a crucial strategic move has been the completion of long-term supply agreement negotiations with multiple leading clients in the industry. This goes beyond simple order confirmation, serving a deeper purpose:

  • Securing Mid-to-Long Term Demand Certainty: This effectively mitigates uncertainties caused by future market fluctuations, providing clear guidance for capacity planning and R&D investment.
  • Deepening Client Partnerships: Deep collaboration with leading clients signifies an upgrade from transactional relationships to strategic synergy, facilitating joint development of new products and market challenges.

This strategy directly addresses investor focus on the company's future growth drivers, indicating that growth is not reliant on short-term market trends but is built upon a solid client foundation.

Sustained Strong Profitability, Stable Outlook for Q4

Backed by secure customer orders and guaranteed demand, the company expressed strong confidence in its near-term financial performance. Management forecasts that the gross margin level will remain stable in the fourth quarter.

This outlook is supported by solid financial data:

  • The comprehensive gross margin for the first three quarters reached 86.85%, demonstrating the strong market competitiveness and pricing power of the company's products.
  • The single-quarter gross margin for Q3 further increased to 89.53%, nearing 90%, setting a new high and reflecting the company's exceptional operational efficiency and cost control capabilities.

The high and stable gross margin is a direct reflection of Changxin Tech's technological leadership and market position. By securing long-term agreements with leading clients, the company is poised to extend this high-quality profit model, creating long-term value for shareholders.