SG Micro (300661) H1 2025 earnings summary

Executive summary

• Achieved revenue of ¥1.82 billion, up 15.37% year-over-year; net profit attributable to shareholders rose 12.42% to ¥200.84 million.

• Gross margin was 50.16%, down 2.17 percentage points year-over-year due to higher costs.

• R&D investment reached ¥507.52 million, accounting for 27.9% of revenue, with 1,219 R&D staff.

• Completed acquisition of 67% of Ganrui Intelligent Technology (Changzhou) Co., Ltd., adding ¥1.51 billion in goodwill.

• No interim dividend, bonus shares, or capital increase from reserves planned.

Financial highlights

• Operating cash flow was ¥239.73 million, down 23.84% year-over-year.

• Total assets at period end were ¥6.07 billion, up 5.16% from year-end 2024.

• Net assets attributable to shareholders reached ¥4.72 billion, up 2.36% from year-end.

• Basic EPS was ¥0.3258, up from ¥0.2916 a year ago.

• Non-recurring profit and loss items contributed ¥66.40 million, mainly from government subsidies and investment returns.

Outlook and guidance

• Management expects continued market uncertainty but will focus on industrial and automotive electronics, new customer development, and supply chain optimization.

• Plans to maintain high R&D investment and expand product lines in emerging sectors like AI, robotics, and new energy.