Everdisplay Optronics Shanghai (688538) Q1 2025 earnings summary

Executive summary

• Revenue increased by 7.45% year-over-year to RMB 1,207.85 million in Q1 2025, with significant growth in AMOLED display panels for tablets and notebooks, up over 110% year-over-year.

• Net loss attributable to shareholders narrowed to RMB -507.57 million from RMB -641.51 million year-over-year.

• Operating cash flow turned positive, reaching RMB 162.51 million, a significant improvement from a negative RMB 104.08 million in the prior year.

Financial highlights

• Gross margin improved by 16.37 percentage points year-over-year, driven by process improvements and supply chain management.

• Basic and diluted EPS were both -0.04, compared to -0.05 in the same period last year.

• R&D investment totaled RMB 111.54 million, accounting for 9.23% of revenue.

• Total assets decreased by 6.10% to RMB 27,789.13 million from year-end 2024.

• Shareholders’ equity declined by 5.06% to RMB 9,526.53 million.

Outlook and guidance

• The company continues to pursue a strategy of strengthening its position in small-to-medium sizes and expanding in medium-to-large sizes, aiming for ongoing operational improvement.