Hangzhou First Applied Material (603806) Q3 2025 earnings summary

Executive summary

• Revenue for Q3 2025 was RMB 3.83 billion, down 13.18% year-over-year; YTD revenue was RMB 11.79 billion, down 22.32% year-over-year.

• Net profit attributable to shareholders for Q3 was RMB 191.85 million, down 41.79% year-over-year; YTD net profit was RMB 687.60 million, down 45.34% year-over-year.

• Declines mainly due to lower sales prices and gross margins in photovoltaic film products.

Financial highlights

• Gross margin and profitability declined significantly, with YTD total profit down 46.15% year-over-year.

• Basic EPS for Q3 was RMB 0.07, down 41.67% year-over-year; YTD basic EPS was RMB 0.26, down 45.83% year-over-year.

• Operating cash flow for the first nine months was RMB 13.95 million, a 99.5% decrease year-over-year.

• Total assets at Q3-end were RMB 20.68 billion, down 2.49% from the previous year-end.

Outlook and guidance

• Management attributes performance decline to lower product prices and gross margin compression in the photovoltaic film segment.

• Losses from subsidiaries and associates further impacted net profit.