Zhejiang Jingsheng Mechanical & Electrical (300316) Q4 2025 earnings summary

Executive summary

• Revenue for 2025 was ¥11.36 billion, down 35.38% year-over-year due to photovoltaic industry volatility, while net profit attributable to shareholders dropped 64.75% to ¥885 million.

• Semiconductor business remained resilient, with integrated circuit and SiC-related equipment and materials revenue reaching ¥1.85 billion.

• The company maintained its strategic focus on advanced materials and equipment, with continued R&D investment and global expansion, including new capacity in Malaysia.

Financial highlights

• Operating income: ¥11.36 billion, down 35.38% year-over-year.

• Net profit attributable to shareholders: ¥885 million, down 64.75% year-over-year.

• Gross margin for equipment and services: 33.88%; for materials: 16.18%.

• Operating cash flow: ¥739 million, down 58.33% year-over-year.

• R&D expenses: ¥955 million, 8.41% of revenue.

• Fourth quarter included a ¥350 million inventory write-down due to material price fluctuations.

Outlook and guidance

• 2026 strategy focuses on strengthening R&D, expanding semiconductor and materials business, and accelerating internationalization.

• Plans to enhance global supply capacity, especially for 8- and 12-inch SiC substrates, and continue innovation in high-end equipment and materials.

• Risks identified include industry cyclicality, market competition, technology iteration, talent retention, and order fulfillment.