Shenzhen Senior Technology Material (300568) H2 2025 earnings summary

Executive summary

• Revenue grew 16.5% year-over-year to ¥4.13 billion, but net profit attributable to shareholders dropped 90% to ¥36.37 million due to lower gross margins, increased overseas expansion costs, exchange losses, and asset impairment provisions.

• Core business and competitive position remained stable, with no major adverse changes in main operations or industry standing.

• Fourth quarter saw stabilization in lithium battery separator prices as downstream demand improved.

Financial highlights

• Operating cash flow increased 104.24% year-over-year to ¥752.51 million.

• Gross margin for lithium battery separators declined by 6.01 percentage points to 22.78% year-over-year.

• Total assets rose 6.82% to ¥24.72 billion; net assets attributable to shareholders increased 0.64% to ¥9.86 billion.

• R&D expenses grew 12.24% to ¥278.38 million, representing 6.75% of revenue.

• Major non-recurring items included government subsidies, fair value gains, and asset impairment losses.

Outlook and guidance

• Plans for continued overseas capacity expansion, especially in Malaysia and Europe, to boost global market share.

• Focus on cost control, efficiency improvement, and product innovation, including solid-state battery materials.

• Intends to strengthen capital markets presence with an H-share listing in Hong Kong to fund global expansion and R&D.