GoerTek (002241) Q4 2025 earnings summary

Executive summary

• Achieved revenue of RMB 96.55 billion in 2025, a 4.36% YoY decline, but net profit attributable to shareholders rose 47.85% to RMB 3.94 billion due to significant non-recurring gains and improved operational efficiency.

• Precision components revenue grew 19.45% YoY, while smart audio and smart hardware segments declined 12.62% and 6.00% respectively.

• Overseas sales accounted for 87.72% of revenue, with a 7.51% YoY decrease; domestic sales rose 26.39% YoY.

• Major non-recurring gain of RMB 2.14 billion from remeasuring Goertek Optics equity after loss of control.

Financial highlights

• Gross margin for electronic components improved by 0.71 percentage points YoY to 11.85%.

• Net cash flow from operating activities increased 10.46% YoY to RMB 6.85 billion.

• R&D investment reached RMB 5.03 billion, 5.21% of revenue.

• Total assets grew 9.46% YoY to RMB 90.53 billion; net assets attributable to shareholders rose 9.69% to RMB 36.40 billion.

• Basic EPS was RMB 1.14, up from RMB 0.79 in 2024.

Outlook and guidance

• Expects continued growth in AI-powered smart hardware, especially AI smart glasses, AR, MR, and wearables.

• Plans to deepen R&D in AI, microelectronics, and precision manufacturing, and expand into automotive electronics.

• Anticipates short-term volatility in profitability due to labor shortages and international trade issues, but expects these to be temporary.

• Will maintain a healthy asset-liability structure and optimize capital expenditure and financing.