Shennan Circuit Company (002916) H2 2025 earnings summary

Executive summary

• Achieved revenue of ¥23.65 billion in 2025, up 32.05% year-over-year; net profit attributable to shareholders reached ¥3.28 billion, up 74.47% year-over-year.

• All three core businesses—PCB, substrate, and EMS—delivered growth, with PCB and substrate segments showing especially strong momentum.

• Maintained robust R&D investment at ¥1.59 billion, 6.73% of revenue, supporting next-gen product development.

• Board proposes a cash dividend of ¥24 per 10 shares, representing 49.91% payout of attributable net profit.

Financial highlights

• Revenue: ¥23.65 billion, up 32.05% year-over-year; net profit: ¥3.28 billion, up 74.47%.

• Gross margin for PCB: 35.53% (+3.91ppt); substrate: 22.58% (+4.43ppt); EMS: 15.00% (+0.60ppt).

• Operating cash flow: ¥3.84 billion, up 28.71% year-over-year.

• Total assets: ¥30.58 billion (+20.87%); equity: ¥17.15 billion (+17.33%).

• Basic/diluted EPS: ¥4.91 (+34.15%).

Outlook and guidance

• 2026 macro environment remains uncertain, but AI-driven demand and digitalization expected to drive structural growth in downstream markets.

• Company to focus on capacity ramp-up, technology upgrades, and strategic customer projects in PCB, substrate, and EMS.

• Risks include macroeconomic volatility, global trade tensions, raw material price fluctuations, and overseas plant ramp-up challenges.