Western Superconducting Technologies (688122) Q1 2025 earnings summary

Executive summary

• Revenue rose 35.31% year-over-year to RMB 1.07 billion, with net profit attributable to shareholders up 53.85% to RMB 170 million, driven by increased product sales and reduced R&D spending.

• Operating cash flow dropped 98.17% year-over-year due to higher cash outflows for procurement, salaries, and taxes.

Financial highlights

• Basic and diluted EPS both increased 52.94% year-over-year to RMB 0.26.

• Gross margin improved as sales growth outpaced cost increases; net margin benefited from lower R&D expenses.

• Total assets grew 3.87% from year-end to RMB 14.14 billion; equity attributable to shareholders rose 2.58%.

• R&D investment fell 45.18% year-over-year, now 4.06% of revenue, down 5.97 percentage points.

Key financial ratios and metrics

• Return on equity (ROE) increased to 2.51%, up 0.79 percentage points year-over-year.

• Net profit margin improved due to higher sales and reduced R&D spending.