InnoScience (Suzhou) Technology Holding (2577) H1 2025 earnings summary

Executive summary

• Revenue for the first half of 2025 reached RMB553.4 million, up 43.4% year-over-year, driven by rapid expansion in GaN applications across AI/data centers, new energy vehicles, consumer electronics, and humanoid robots.

• Gross profit margin turned positive to 6.8% from -21.6% a year ago, marking a significant operational turnaround to profitability at the gross level.

• Loss for the period narrowed by 12.2% to RMB428.7 million, reflecting improved scale and cost optimization.

• Overseas revenue grew 57.8% year-over-year, accounting for 11.5% of total revenue and consolidating the company’s international market position.

• Achieved global firsts in mass production of high-voltage and bidirectional GaN chips, and humanoid robot applications.

Financial highlights

• Revenue: RMB553.4 million (+43.4% YoY); GaN discrete chip and IC revenue up 49.9% YoY; GaN module revenue up 121.7% YoY; GaN wafer revenue down 22.2% YoY.

• Gross profit: RMB37.8 million (vs. loss of RMB83.2 million YoY); gross margin improved to 6.8% from -21.6%; cost of sales increased 9.9% to RMB515.5 million.

• Loss for the period: RMB428.7 million, a 12.2% reduction YoY; EPS: RMB-0.49.

• Adjusted net loss (non-HKFRS): RMB377.7 million after adding back share-based and listing expenses.

• Cash and cash equivalents: RMB1,425.2 million as of 30 June 2025.

Outlook and guidance

• Plans to expand production capacity to 20,000 wafers/month and further improve yield and cost efficiency.

• Continued focus on R&D, global market expansion, and deepening cooperation with leading industry players and global partnerships.

• Targeting leadership in GaN power products and supporting global energy transformation, with expansion into emerging applications like humanoid robots and energy storage.

• No interim dividend declared for the period.