Maxscend Microelectronics Company (300782) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 was ¥1.70 billion, down 25.42% year-over-year due to industry demand softness and increased competition.

• Net loss attributable to shareholders was ¥147 million, a 141.59% decline from a net profit in the prior year.

• Gross margin dropped to 28.75% as high initial costs from new 12-inch production lines and increased depreciation weighed on profitability.

• Cash flow from operations improved to ¥257 million, reflecting better working capital management.

Financial highlights

• Operating income fell sharply, with basic and diluted EPS at -0.2757, compared to 0.6637 and 0.6626 last year.

• Total assets at period-end were ¥14.33 billion, up 0.68% from year-end 2024; net assets attributable to shareholders decreased 1.71% to ¥10.02 billion.

• R&D investment was ¥407 million, representing a 17.52% decrease year-over-year.

• Cash and cash equivalents at period-end were ¥1.20 billion.

Outlook and guidance

• Management expects gross margin to stabilize and recover as production efficiency improves and cost-reduction measures take effect.

• The company will continue to focus on high-end, integrated RF modules and expand into new application areas such as automotive and IoT.

• No interim dividend, bonus shares, or capital increase from reserves is planned for the half-year.