Hangzhou First Applied Material (603806) H2 2025 earnings summary

Executive summary

• Revenue for 2025 was RMB 15.49 billion, down 19.10% year-over-year; net profit attributable to shareholders was RMB 769.68 million, down 41.14% year-over-year, but the company remained profitable despite industry-wide losses.

• Cash flow from operating activities was RMB 1.46 billion, down 66.68% year-over-year, mainly due to changes in sales collection and payment terms and a decline in sales scale.

• The company maintained a strong market position in photovoltaic encapsulation materials, with global market share for PV film above 50%.

• Non-PV businesses (electronic materials, functional films, coating materials) grew, with non-PV revenue share rising to 7.15%.

Financial highlights

• Operating income: RMB 15.49 billion, down 19.10% year-over-year.

• Net profit attributable to shareholders: RMB 769.68 million, down 41.14% year-over-year.

• Operating cash flow: RMB 1.46 billion, down 66.68% year-over-year.

• Basic EPS: RMB 0.30, down 40.00% year-over-year.

• Gross margin for PV film: 10.46%; for electronic materials: 20.70%; for functional materials: 13.10%.

• R&D expenses: RMB 467.64 million, 3.02% of revenue.

Outlook and guidance

• 2026 expected to see PV industry stabilization and price recovery, with non-PV businesses entering a growth phase.

• Continued investment in R&D, high-end product breakthroughs, and global capacity expansion planned.

• Strategic focus on consolidating PV leadership and accelerating new materials growth.