Shanghai Fudan Microelectronics Group Company (1385) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 was RMB1.839 billion, up 2.49% year-over-year; gross profit margin rose to 56.80% (+0.31 pts).

• Net profit attributable to shareholders was RMB194 million, down 44.38% year-over-year, mainly due to lower government subsidies, reduced input tax credits, and higher inventory impairment.

• All product lines except non-volatile memory grew; FPGA and other products led with RMB681 million in revenue.

• Operating cash flow increased 45.94% to RMB186 million, driven by higher cash receipts from sales.

Financial highlights

• Basic and diluted EPS were RMB0.24 (vs. RMB0.42 in H1 2024); after non-recurring items, EPS was RMB0.22 (vs. RMB0.38).

• Weighted average ROE was 3.23% (vs. 6.34%); after non-recurring items, 3.04%.

• Net assets attributable to shareholders rose 2.37% to RMB6.034 billion; total assets increased 2.90% to RMB9.303 billion.

• R&D investment was RMB533 million, 28.99% of revenue.

Outlook and guidance

• The company will focus on inventory optimization, strategic product line adjustments, and exploring new growth drivers in H2 2025.

• Profitability is expected to improve in non-volatile memory as market prices recover in H2.