MeiG Smart Technology (002881) Q4 2025 earnings summary

Executive summary

• Achieved record revenue of ¥3.75 billion in 2025, up 27.39% year-over-year, with net profit attributable to shareholders reaching ¥143 million, a 5.27% increase year-over-year.

• Overseas revenue surged 74.47% to ¥1.40 billion, now 37.39% of total revenue, driven by IoT and 5G product demand and large customer shipments.

• Domestic revenue grew 9.72% to ¥2.35 billion, with strong demand for smart and high-compute modules, though automotive customer orders declined in H2.

Financial highlights

• Operating income: ¥3.75 billion, up 27.39% year-over-year; net profit attributable to shareholders: ¥143 million, up 5.27%.

• Gross margin declined to 13.84% due to product mix and rising memory chip costs.

• Operating cash flow improved to ¥32.5 million from a negative ¥129.9 million last year.

• Basic EPS: ¥0.5440; weighted average ROE: 8.74%.

• Total assets at year-end: ¥2.97 billion, up 7.52%; net assets: ¥1.70 billion, up 8.64%.

Outlook and guidance

• IoT module market expected to rebound in 2025 with normalization of inventory and increased demand in smart metering, POS, and automotive.

• Embedded AI cellular modules projected to reach 25% of all IoT module shipments by 2030.

• Company to focus on R&D-driven growth, global expansion, and leadership in smart/high-compute modules and solutions.

• Continued investment in edge AI, 5G Redcap, and new application scenarios such as smart equipment and consumer IoT.