NATIONAL SILICON INDUSTRY GROUP (688126) H2 2025 earnings summary

Executive summary

• Revenue grew 9.69% year-over-year to RMB 3.72 billion, driven by 300mm semiconductor wafer sales, but net loss attributable to shareholders widened to RMB -1.51 billion due to margin pressure, fixed costs, and goodwill impairment.

• Gross margin declined as product prices fell amid industry competition and cyclical downturn, while R&D investment increased to 9.52% of revenue.

• Goodwill impairment losses of RMB 400 million were recognized, mainly from subsidiaries Okmetic and 新傲科技, reflecting underperformance in 200mm and below wafer markets.

• The company completed a major equity acquisition, issuing shares and cash to acquire minority interests in key subsidiaries, and raised RMB 2.1 billion in supporting funds.

Financial highlights

• Operating revenue: RMB 3.72 billion, up 9.69% year-over-year.

• Net loss attributable to shareholders: RMB -1.51 billion, compared to RMB -970 million last year.

• Gross margin: -17.78%, down 7.64 percentage points year-over-year.

• R&D expenses: RMB 354 million, up 32.63% year-over-year.

• Basic and diluted EPS: RMB -0.539.

• Net cash flow from operating activities: RMB -559 million, improved from RMB -788 million last year.

• Total assets: RMB 33.79 billion; net assets attributable to shareholders: RMB 16.92 billion.

Outlook and guidance

• The company will continue to expand 300mm wafer capacity, focus on high-end and specialty products, and deepen R&D in AI, automotive, and silicon photonics.

• Market recovery is expected in 300mm wafers, but price pressure and competition remain significant, especially in 200mm and below segments.

• Strategic focus on internationalization, product certification, and customer diversification to mitigate risks.