Suzhou Dongshan Precision Manufacturing Co (002384) Q4 2025 earnings summary

Executive summary

• Operating revenue reached RMB 40.125 billion in 2025, up 9.12% year-over-year, with net profit rising 27.67% to RMB 1.386 billion and net operating cash inflow up 6.44% to RMB 5.307 billion.

• Strategic acquisitions of Source Photonics and GMD Group expanded the business into optical modules and enhanced the global footprint, especially in AI hardware and automotive precision components.

• The company maintained a dual growth engine strategy, balancing stable profits from conventional businesses with aggressive expansion in AI-related segments.

Financial highlights

• Net profit attributable to shareholders increased 27.67% year-over-year to RMB 1.386 billion.

• Total assets grew 30.94% to RMB 60.25 billion, and net assets attributable to shareholders rose 14% to RMB 21.46 billion.

• Gross margin for optical modules reached 36.74%, while precision components saw a 9.22% margin.

• R&D expenses rose 11.87% to RMB 1.417 billion, representing 3.57% of operating revenue.

• Major non-recurring gains included RMB 331.7 million in government grants and a RMB 384 million loss on disposal of non-current assets.

Outlook and guidance

• Focus on consolidating core businesses (FPC, PCB, precision parts, display modules) for stable operation and cash flow.

• Accelerate expansion in AI hardware, aiming for leadership in high-speed optical modules and AI PCBs, with new production capacity coming online.

• Continue global manufacturing and supply chain optimization to mitigate geopolitical and trade risks.

• Increase R&D investment in high-speed optical chips, modules, and AI PCBs to maintain technology leadership.