Western Superconducting Technologies (688122) Q3 2025 earnings summary

Executive summary

• Revenue for Q3 2025 reached ¥1.27 billion, up 4.23% year-over-year, while net profit attributable to shareholders dropped 59.44% to ¥104 million due to increased R&D expenses and reduced government subsidies.

• Year-to-date revenue was ¥3.99 billion, up 23.3% year-over-year, with net profit attributable to shareholders at ¥650 million, up 7.62%.

Financial highlights

• Q3 gross margin and net margin declined as R&D investment rose 119.76% year-over-year to ¥111 million.

• Basic and diluted EPS for Q3 were ¥0.16, down 58.97% year-over-year; year-to-date EPS was ¥1.00, up 7.53%.

• Cash flow from operating activities for the first nine months was -¥104.5 million, a decrease of 167.03% year-over-year.

• Total assets at quarter-end were ¥14.66 billion, up 7.74% from the previous year-end.

Outlook and guidance

• Management attributes profit decline to higher R&D material input, increased asset impairment provisions, and lower government subsidies.