There is a company, whose subsidiary, Huakun Zhenyu, is deeply involved in the Huawei Ascend ecosystem, launching over 30 types of computing power products based on Ascend processors.
The company has established a joint laboratory with Huawei HiSilicon, which is currently HiSilicon’s only 5G joint laboratory.
Focusing on 5G technology, combined with AI, 8K and other technologies, it promotes applications in digital smart factories, industrial internet, smart displays, security chips, and smart transportation.
The company’s first 4K smart TV, equipped with the ARM flagship CPU-Cortex-A73, was developed using a chip co-developed with Huawei HiSilicon.
Today, the company we are sharing is—Sichuan Changhong, 600839
In 2024, it achieved revenue of approximately 103.691 billion yuan, a year-on-year increase of 6.4%; net profit of approximately 704 million yuan, a year-on-year increase of 2.3%;
In the first quarter of 2025, it achieved revenue of approximately 26.837 billion yuan, a year-on-year increase of 12.89%; net profit of approximately 345 million yuan, a year-on-year increase of 96.68%. The revenue growth is very stable.
Driving Logic:
First, technological innovation in traditional home appliances
In the first half of 2024, the company’s home appliance business revenue reached 22.376 billion yuan, a year-on-year increase of 17.69%, with significant contributions from 8K Mini-LED TVs and AI large model TVs.
Changhong launched the “Super Brain” AI large model TV and the world’s first Star Flash TV, integrating self-developed AI algorithms with Huawei HiSilicon chip technology, further consolidating its leading position in the smart display field.
Second, computing power and AI ecosystem layout
Through subsidiaries Hongxin Software and Huakun Zhenyu, Changhong is deeply involved in the Huawei Ascend ecosystem, launching AI training servers based on Ascend chips and becoming a strategic partner for Ascend hardware.
Third, breakthroughs in military electronics and new energy sectors,
In military business, the onboard radar matching rate has increased to 32%, and a certain phased array radar has passed military tests, expected to contribute over 4 billion yuan in revenue by 2025;
In the new energy sector, it is collaborating with BYD to develop intelligent cockpit domain controllers, entering the automotive electronics sector.
Corporate Advantages:
Ascend ecosystem and AI, building full-stack technical capabilities
Sichuan Changhong’s role in the Ascend ecosystem is not limited to hardware supplier; it also forms a differentiated advantage through “technology + scenarios” integration.
The Tian Gong AT800 server from subsidiary Hongxin Software uses a combination of Intel processors + Ascend chips, suitable for AI training and inference scenarios;
By holding shares in Huakun Zhenyu, Changhong indirectly obtains authorization for Huawei’s “Kunpeng + Ascend” dual technology routes, covering the entire chain from chip design to complete machine delivery.
In addition, the company has launched the “Calm Large Model Ascend Training and Inference Integrated Solution” with Huawei, achieving rapid deployment of AI models in finance, government, and other fields.
Chip R&D and cooperation with Huawei HiSilicon, a key path to autonomy
Changhong’s cooperation with Huawei HiSilicon began in 2017, covering three major areas: chip design, 5G technology, and the Internet of Things.
In 2020, the two parties established a 5G joint laboratory, collaborating on industrial internet modules for applications in smart factories and smart transportation; Changhong also launched the world’s first 5G industrial module, supporting millisecond-level response, becoming a core component of smart manufacturing.
Cross-border payment and globalization layout, innovative practices in financial cloud
Changhong has built a unique cross-border payment capability through the deep integration of its “Financial Cloud” system with CIPS. The subsidiary Changhong (Hong Kong) Trading Company has joined the CIPS system to provide efficient settlement services for import and export businesses, reducing exchange rate risks;
Relying on “5G + industrial internet” smart factories and an omnichannel intelligent trading platform, it achieves digital collaboration of supply chains and cross-border payments, further optimizing global resource allocation efficiency.
In summary, Sichuan Changhong has transformed from a traditional home appliance company into a technology group driven by “AI + computing power + chips” through comprehensive cooperation with Huawei, deep involvement in the Ascend ecosystem, and technology transformation capabilities.
Its military electronics, cross-border payment, and other businesses further enhance its anti-cyclical capabilities, providing solid support for its valuation increase.
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