Shanghai Enflame Technology (688801) investor relations material

Executive summary

• Q3 revenue rose 395.34% YoY to RMB1.212bn, driven by increased customer demand and faster product deliveries; net loss narrowed YoY.

• 9M revenue climbed 331.74% YoY to RMB2.332bn, while net loss narrowed to RMB754.0m from RMB887.8m.

Financial highlights

• Q3 net loss was RMB121.6m; loss excluding non-recurring items was RMB127.5m. 9M net loss excluding non-recurring items was RMB761.7m.

• 9M operating costs totaled RMB3.096bn, including RMB1.582bn in cost of revenue and RMB988.9m in R&D expense.

• 9M operating cash flow was negative RMB2.017bn, versus negative RMB769.6m a year earlier; increased supplier payments contributed to the quarterly cash outflow.

Key financial ratios and metrics

• Q3 basic and diluted EPS were both negative RMB0.31; 9M EPS was negative RMB1.95, versus negative RMB2.29 in 9M 2025.

• Q3 R&D investment was RMB349.4m, up 14.91% YoY; R&D was 28.83% of revenue, down 95.45 percentage points.

• 9M R&D investment was RMB988.9m, up 11.11% YoY; R&D was 42.40% of revenue, down 122.37 percentage points.

• At Sep. 30, total assets were RMB18.010bn and shareholders’ equity was RMB8.421bn, up 298.25% and 167.56%, respectively, from year-end 2025.