Shanghai Longcheer Technology (603341) Q2 2025 earnings summary

Executive summary

• Unaudited H1 revenue was RMB19.91bn, down 10.65% YoY; attributable net income rose 5.01% to RMB355.6m, while adjusted net income excluding non-recurring items fell 34.53% to RMB178.4m.

• Profitability recovery accompanied continued R&D investment and global expansion under the “1+2+X” product strategy, with AI integration across smart devices a priority.

Financial highlights

• H1 total profit rose 3.00% to RMB379.6m; operating profit was RMB385.9m versus RMB368.4m a year earlier.

• Operating cash flow was RMB726.2m, down 9.84% YoY; cash and cash equivalents ended June at RMB6.04bn.

• R&D expense increased 27.37% to RMB1.198bn; management expense rose 39.35% to RMB302.0m, mainly from higher employee compensation.

• Financial expense was a net credit of RMB52.5m, with the improvement attributed to higher FX gains and lower interest expense.

Outlook and guidance

• Strategy centers on “1+2+X,” continued R&D investment, globalized operations and deeper integration of AI into smart terminals.

• AI PC products completed development and delivery, including programs reaching mass production for two domestic leading customers; automotive electronics products entered mass production and delivery.

• Smart-glasses work includes an AI-glasses pipeline, next-generation product pre-development and collaboration to build capabilities on Google Android XR.