Huaqin Tech Stockpiles Key Components to Counter Upstream Price Hikes
Huaqin Technology said on August 27 that it had taken sufficient hedging measures against rapid upstream price increases in the first half of 2026, leading to a notable rise in second-quarter inventories. The stockpiles include actively sourced storage products, PCBs, and high-end MLCCs. Most storage is customer-supplied, limiting margin impact, while self-procured storage benefited from forward strategic buying.
At its interim results briefing on August 27, Huaqin Technology said it had felt rapid price increases across the upstream supply chain in the first half of 2026 and had taken sufficient hedging measures in response, with inventories rising notably in the second quarter. A portion of the company's inventory reflects active stockpiling of key materials, including storage products, PCBs, and high-end MLCCs, where price increases have been more pronounced.
The company noted that most of its storage products are supplied by customers, so price fluctuations have little impact on gross profit. For the portion of the business where it procures storage itself, the company carried out forward-looking strategic stockpiling based on its purchasing capabilities.
The company said the deliberate increase in strategic material inventories and higher stock levels were proactive moves based on orders and industry cycles, aimed at optimizing costs and ensuring delivery. All inventories are matched to confirmed orders, while overall finished-goods inventory remained at a low level, with no buildup of unsold products.