Wuhan Guide Infrared (002414) H2 2025 earnings summary

Executive summary

• Achieved a significant turnaround with net profit of ¥686.19 million in 2025, compared to a net loss of ¥447.19 million in 2024, driven by resumed defense orders and robust growth in civil product sales.

• Revenue surged 72.5% year-over-year to ¥4.62 billion, reflecting strong demand in both domestic and international markets.

• Cash flow from operations increased nearly sevenfold to ¥1.61 billion, supporting ongoing R&D and capacity expansion.

• Maintained a leading position in infrared technology, with breakthroughs in core chip R&D and expanded applications in defense, automotive, and industrial sectors.

Financial highlights

• Revenue: ¥4,618.83 million, up 72.5% year-over-year.

• Net profit attributable to shareholders: ¥686.19 million, reversing last year’s loss.

• Gross margin for core products (infrared and integrated systems): 57.81%.

• Basic and diluted EPS: ¥0.1607, up from -¥0.1047.

• Operating cash flow: ¥1,608.52 million, up 594.69% year-over-year.

• R&D investment: ¥943.52 million, 20.43% of revenue.

Outlook and guidance

• 2026 focus on innovation-driven growth, expanding R&D in core infrared technologies, and scaling up applications in both defense and civil markets.

• Plans to strengthen AI integration, expand international presence, and enhance product customization for key industries.

• No cash dividend, bonus shares, or capital reserve transfer planned for 2025 due to retained losses at the parent level.