SUPCON Technology (688777) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 was ¥3.83 billion, down 9.92% year-over-year; net profit attributable to shareholders was ¥354.08 million, down 31.46% year-over-year.

• Gross margin and net margin declined due to increased competition, lower interest income, and higher exchange losses.

• R&D investment reached ¥419.66 million, accounting for 10.96% of revenue, with 2,119 R&D staff (39.26% of total employees).

• The company advanced its industrial AI, robotics, and software subscription business, with TPT AI product revenue at ¥116.62 million and robotics at ¥110.15 million.

Financial highlights

• Operating income: ¥3.83 billion, down 9.92% year-over-year.

• Net profit attributable to shareholders: ¥354.08 million, down 31.46% year-over-year.

• Operating cash flow: -¥559.43 million, mainly due to increased raw material procurement payments.

• Basic and diluted EPS: ¥0.45, down 30.77% year-over-year.

• Gross margin and net margin both declined; adjusted net profit (excluding exchange and interest impacts) fell 25.82% year-over-year.

Outlook and guidance

• The company will continue to invest in industrial AI, robotics, and international expansion.

• Focus on high-potential sectors such as energy, building materials, and paper, which showed strong growth.

• Software subscription and membership models are expected to drive recurring revenue and customer stickiness.

• The company aims to maintain its leading market share in DCS and SIS, and further expand in overseas markets.