Maxscend Microelectronics Company (300782) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue declined 36.47% year-over-year to RMB 755.8 million, with a net loss attributable to shareholders of RMB 46.6 million, reversing a profit of RMB 197.8 million in Q1 2024.

• Gross margin and profitability were impacted by industry cyclicality, increased asset impairment, and lower sales.

• Cash flow from operations remained stable at RMB 77.0 million, up 1.29% year-over-year.

Financial highlights

• Operating income fell sharply due to a 36.47% drop in revenue and a significant increase in asset impairment losses.

• Basic and diluted EPS were both -0.0872, compared to 0.3705 and 0.3699 in Q1 2024.

• Total assets at quarter-end were RMB 14.10 billion, down 0.92% from year-end 2024.

• Owner's equity attributable to shareholders decreased 0.45% to RMB 10.15 billion.

• Non-recurring gains included RMB 9.5 million in government subsidies and RMB 113,000 from asset disposals.

Outlook and guidance

• Company expects capacity utilization to improve steadily as more products are introduced and manufacturing integration deepens.

• Ongoing focus on cost control, efficiency, and AI tool adoption to mitigate short-term operational pressures.

• Strategic resource allocation and supply chain management to address international uncertainties and pursue high-end product opportunities.