KINGSEMI (688037) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 reached ¥709.12 million, up 2.24% year-over-year, while net profit attributable to shareholders dropped 79.09% to ¥15.92 million due to increased R&D, management, and sales expenses, as well as higher exchange losses.

• Operating cash flow was negative ¥283.11 million, a significant decline from the prior year, mainly due to increased procurement payments, higher staff compensation, and reduced tax rebates and government subsidies.

• The company completed a change in control, with North Microelectronics (北方华创) becoming the controlling shareholder and Beijing Electronics Holding as the actual controller.

Financial highlights

• Gross margin remained stable as cost of sales was flat year-over-year.

• Operating profit fell 79.76% year-over-year to ¥18.11 million.

• R&D expenses increased 12.87% to ¥132.07 million, representing 18.62% of revenue.

• Basic and diluted EPS were ¥0.08, down 85.45% year-over-year.

• Net assets attributable to shareholders rose 0.89% to ¥2.72 billion; total assets increased 4.32% to ¥5.84 billion.

Outlook and guidance

• The company expects continued growth in the domestic semiconductor equipment market, driven by policy support and localization trends.

• Management will focus on leveraging synergies with the new controlling shareholder to enhance R&D, supply chain, and customer resources.