Sharetronic Data Technology Co Ltd (300857) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 reached ¥4.94 billion, up 38.18% year-over-year, driven by rapid growth in computing power services, server remanufacturing, and IoT smart terminals.

• Net profit attributable to shareholders was ¥432.06 million, up 20.76% year-over-year; adjusted net profit (excluding non-recurring items) was ¥419.64 million, up 18.59%.

• Gross margin was 17.61%, nearly flat year-over-year; basic and diluted EPS were both ¥1.26, up 20%.

• Total assets doubled to ¥15.01 billion, mainly due to increased investment in computing power infrastructure and server procurement.

Financial highlights

• Operating cash flow was negative ¥1.56 billion, a significant decrease from the prior year, mainly due to increased inventory and longer receivable cycles.

• Investment cash outflow surged to ¥4.84 billion, reflecting heavy investment in smart computing and cloud services.

• Financing cash inflow reached ¥6.60 billion, supporting expansion and working capital needs.

• Net assets attributable to shareholders rose 12.01% to ¥3.60 billion.

• R&D investment increased 20.2% to ¥109.15 million.

Outlook and guidance

• The company expects continued strong demand in AI, cloud, and IoT, with China remaining the largest incremental market for smart computing.

• Ongoing expansion in overseas markets, especially for smart IoT terminals and server remanufacturing.

• Strategic focus on "computing power base + cloud services + smart terminals" to drive future growth.