Sunwoda Electronic (300207) H2 2025 earnings summary

Executive summary

• Revenue reached ¥63.25 billion in 2025, up 12.90% year-over-year; net profit attributable to shareholders was ¥1.06 billion, down 27.99% year-over-year.

• Operating cash flow increased 10.38% to ¥3.63 billion; total assets rose 23.76% to ¥108.07 billion.

• Major litigation related to battery quality was settled, with an estimated negative impact of ¥500–800 million on 2025 net profit.

• The company maintained strong R&D investment, with R&D expenses up 31.49% to ¥4.38 billion, representing 6.92% of revenue.

• Cash dividend of ¥0.90 per 10 shares proposed, totaling ¥165.59 million.

Financial highlights

• Revenue: ¥63.25 billion (+12.90% YoY); net profit: ¥1.06 billion (–27.99% YoY); EPS: ¥0.58.

• Gross margin: 13.94% (–1.24pp YoY); net margin: 1.67%.

• Operating cash flow: ¥3.63 billion (+10.38% YoY); free cash flow improved.

• Total assets: ¥108.07 billion (+23.76% YoY); net assets: ¥24.47 billion (+3.12% YoY).

• R&D expenses: ¥4.38 billion (+31.49% YoY); R&D staff: 10,306, up 22.85%.

Outlook and guidance

• Expects continued growth in consumer and EV battery demand, driven by AI devices and global energy transition.

• Plans to expand overseas production, enhance supply chain resilience, and accelerate product innovation in solid-state and sodium-ion batteries.

• Will focus on digitalization, ESG, and global market expansion, with emphasis on high-value customers and advanced manufacturing.