KINGSEMI (688037) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 reached RMB 275.32 million, up 12.74% year-over-year, while net profit attributable to shareholders dropped 70.89% to RMB 4.66 million.

• R&D investment surged 40.52% year-over-year, now accounting for 23.18% of revenue.

• Significant shareholder changes are underway, with North Microelectronics (北方华创) poised to become the largest shareholder at 17.88% if pending transfers complete.

Financial highlights

• Operating income: RMB 275.32 million, up 12.74% year-over-year.

• Net profit attributable to shareholders: RMB 4.66 million, down 70.89% year-over-year.

• Net cash flow from operating activities: -RMB 198.55 million, compared to +RMB 23.98 million last year.

• Basic and diluted EPS: RMB 0.02, down 83.33% year-over-year.

• R&D expenses: RMB 63.82 million, up 40.52% year-over-year.

Outlook and guidance

• Management highlights ongoing R&D investment and cost increases as key factors impacting profitability.

• Potential for enhanced industry collaboration and competitiveness if control transfer to North Microelectronics is completed.