NATIONAL SILICON INDUSTRY GROUP (688126) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 reached ¥1,697.43 million, up 8.16% year-over-year, driven by over 10% sales growth in both 300mm and 200mm semiconductor wafers.

• Net loss attributable to shareholders was ¥366.54 million, a slight improvement from ¥388.55 million loss in H1 2024.

• Gross margin declined due to increased fixed costs from capacity expansion and higher inventory write-downs.

• The company maintained high R&D investment, with R&D expenses up 25.88% year-over-year, representing 9.16% of revenue.

• The global semiconductor wafer market showed signs of recovery, especially in 300mm wafers, but 200mm and below remained weak.

Financial highlights

• Operating income: ¥1,697.43 million, up 8.16% year-over-year.

• Net loss attributable to shareholders: ¥366.54 million, improved from ¥388.55 million loss year-over-year.

• EBITDA improved, with EBITDA interest coverage ratio rising to 1.57 from 0.23.

• Basic and diluted EPS: -0.133, compared to -0.141 in H1 2024.

• Cash flow from operations: -¥461.85 million, similar to prior year.

Outlook and guidance

• The company expects continued recovery in the 300mm wafer market, driven by downstream capacity expansion and domestic substitution trends.

• Ongoing investment in R&D and capacity expansion, with a focus on high-end and specialty wafer products for AI, automotive, and storage applications.

• Some project timelines extended due to equipment delivery delays and lengthy customer validation cycles.