Piotech (688072) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 reached RMB 1.95 billion, up 54.25% year-over-year, with Q2 accelerating to 56.64% growth and a 75.74% sequential increase from Q1.

• Net profit attributable to shareholders was RMB 94.29 million, down 26.96% year-over-year, but Q2 net profit rebounded 103.37% year-over-year and 38.8 million higher than Q1.

• Excluding non-recurring items, net profit rose 91.35% year-over-year to RMB 38.19 million, reflecting improved profitability quality.

• Operating cash flow turned positive to RMB 1.57 billion, a significant improvement from negative RMB 899.8 million a year ago, driven by record-high prepayments and collections.

Financial highlights

• Gross margin in Q2 improved significantly from Q1 as new product validation costs normalized.

• R&D investment reached RMB 349 million, up 11.09% year-over-year, representing 17.87% of revenue.

• Total assets grew 14.62% from year-end 2024 to RMB 17.55 billion; net assets attributable to shareholders increased 2.5% to RMB 5.41 billion.

• Contract liabilities (order backlog) rose 52.07% from year-end 2024 to RMB 4.54 billion.

• Basic EPS was RMB 0.34, down 26.09% year-over-year; diluted EPS was RMB 0.33.

Outlook and guidance

• Management expects continued strong revenue growth, supported by robust order backlog and ongoing customer adoption of advanced process equipment.

• The company will maintain high R&D intensity to sustain product competitiveness and expand process coverage.