Hoymiles Power Electronics (688032) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached RMB 336.14 million, up 1.46% year-over-year, but net loss attributable to shareholders was RMB 10.36 million, reversing from a net profit of RMB 67.30 million in Q1 2024.

• Cash flow from operating activities was negative RMB 347.82 million, a significant decline from positive RMB 78.31 million in the prior year.

• R&D investment increased 44.9% year-over-year to RMB 74.65 million, representing 22.21% of revenue.

Financial highlights

• Operating income: RMB 336.14 million, up 1.46% year-over-year.

• Net loss attributable to shareholders: RMB 10.36 million, down 115.39% year-over-year.

• Basic and diluted EPS: -0.08 RMB, compared to 0.54 RMB in Q1 2024.

• Gross margin declined as cost of sales increased to RMB 222.12 million from RMB 173.14 million year-over-year.

• R&D expenses rose to RMB 74.65 million, up from RMB 51.52 million.

Outlook and guidance

• Management attributes the net loss to slower sales growth and increased investment in talent, R&D, and market expansion.

• R&D spending is expected to remain high as the company continues to prioritize innovation.