GalaxyCore (688728) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 reached RMB 1.52 billion, up 18.21% year-over-year, but net profit attributable to shareholders was a loss of RMB 51.73 million, down 271.50% from a profit last year.

• Cash flow from operating activities turned positive at RMB 242.45 million, compared to a negative RMB 370.81 million in Q1 2024.

• Increased R&D investment and intensified market competition led to lower profitability.

Financial highlights

• Operating income rose 18.21% year-over-year to RMB 1.52 billion.

• Net loss attributable to shareholders was RMB 51.73 million, compared to a profit of RMB 30.16 million in Q1 2024.

• Basic and diluted EPS were both -0.02, down from 0.01 year-over-year.

• R&D expenses increased 30.02% to RMB 261.62 million, representing 17.16% of revenue.

• Total assets grew 3.73% to RMB 23.26 billion at quarter-end.

Outlook and guidance

• High-pixel product revenue exceeded RMB 400 million, with significant growth, especially from in-house manufacturing.

• Management expects continued pressure on margins due to competitive pricing and ongoing R&D investment.