Shanghai Longcheer Technology (603341) Q4 2025 earnings summary

Executive summary

• FY2025 revenue was RMB42.125bn, down 9.2% YoY; profit attributable to owners rose 16.8% to RMB585.1m, while adjusted profit excluding non-recurring items fell 15.9% to RMB323.0m.

• The 1+2+X strategy kept smartphones as the core business while expanding personal computing, automotive electronics and other AI-enabled products.

• H shares began trading in Hong Kong on Jan. 22, 2026, accelerating global expansion and investment in edge-AI innovation.

Financial highlights

• Consolidated net profit was RMB588.3m, up 19.3% YoY; profit attributable to owners was RMB585.1m, up 16.8%.

• Adjusted profit attributable to owners, excluding non-recurring items, was RMB323.0m, down 15.9% YoY.

• Gross profit increased 32.7% YoY to RMB3.592bn; gross margin rose 2.7 percentage points to 8.4%.

• Revenue declined primarily because smartphone sales fell RMB7.198bn amid product-cycle transitions and weaker replacement demand; growth in AIoT and tablets partly offset the decline.

• Other income and gains rose 11.9% to RMB647.5m, supported by investment fair-value gains and government grants, partly offset by lower VAT additional deductions.

Outlook and guidance

• 2026 priorities: protect the smartphone and tablet base, scale AIoT, AI PC and automotive electronics, and strengthen overseas delivery and manufacturing capabilities.

• AI PC plans focus on bringing flagship-customer programs into production, improving flexible manufacturing and cost control, and developing solutions across product formats and chip platforms.

• AI glasses plans center on scaling whole-device production, improving assembly, testing, calibration and yield, and building AR component and process capabilities.

• SiP operations have launched; robotics applications in smart factories are progressing, with 2111 Laboratory building edge-AI technology reserves.

• Proposed FY2025 dividend: RMB5 per 10 ordinary shares, subject to shareholder approval; estimated total RMB260.7m, excluding treasury A shares.