Shenzhen Senior Technology Material (300568) Q2 2025 earnings summary

Executive summary

• Revenue for the first half of 2025 reached ¥1.90 billion, up 14.78% year-over-year, driven by growth in lithium-ion battery separator sales.

• Net profit attributable to shareholders was ¥100.44 million, down 58.53% year-over-year, mainly due to increased costs and lower gross margin.

• Cash flow from operating activities increased 132.41% year-over-year to ¥536.20 million, reflecting improved collections and tax rebates.

• The company continued to expand R&D, with expenses rising 9.86% year-over-year to ¥126.58 million.

• No interim dividend, bonus shares, or capital increase from reserves was planned for the period.

Financial highlights

• Operating income: ¥1,898 million (+14.78% YoY); net profit: ¥100 million (-58.53% YoY); basic EPS: ¥0.08 (-55.56% YoY).

• Gross margin declined to 24.84% for lithium-ion battery separators, down 6.47 percentage points year-over-year.

• Total assets at period end: ¥24.79 billion (+7.11% from year-end 2024); net assets: ¥9.84 billion.

• Non-recurring gains totaled ¥56.87 million, mainly from government subsidies and fair value changes.

Outlook and guidance

• Plans to deepen relationships with core customers and accelerate global market expansion, especially in Europe and Southeast Asia.

• Ongoing investments in new separator production lines in Sweden, Malaysia, and the US to boost overseas capacity.

• Strategic focus on next-generation solid-state battery materials and semiconductor materials as new growth drivers.

• Continued emphasis on AI-driven manufacturing and digital transformation to enhance efficiency and product quality.