Shennan Circuit Company (002916) Q2 2025 earnings summary

Executive summary

• Achieved revenue of ¥10.45 billion, up 25.63% year-over-year; net profit attributable to shareholders was ¥1.36 billion, up 37.75% year-over-year.

• All three core businesses—PCB, substrate, and EMS—delivered double-digit growth, with PCB revenue up 29.21%, substrate up 9.03%, and EMS up 22.06%.

• Maintained high capacity utilization and advanced digital transformation, with R&D investment at 6.43% of revenue.

Financial highlights

• Operating cash flow was ¥1.50 billion, up 6.92% year-over-year.

• Gross margin for PCB was 34.42% (+3.05ppt), substrate 15.15% (-10.31ppt), and EMS 14.98% (+0.34ppt).

• Basic and diluted EPS were ¥2.04, up from ¥1.93 year-over-year.

• Total assets reached ¥26.51 billion (+4.78% from year-end), and net assets attributable to shareholders were ¥15.22 billion (+4.11%).

• Non-recurring profit items contributed ¥94.54 million, mainly from government grants and fair value changes.

Outlook and guidance

• Industry demand for high-layer PCBs and substrates is expected to remain strong, driven by AI, data centers, and automotive electronics.

• Company will continue to invest in capacity expansion, digitalization, and R&D, focusing on high-end substrates and overseas manufacturing.