SHENZHEN TRANSSION (688036) Q3 2025 earnings summary

Executive summary

• Revenue for Q3 2025 reached RMB 20.47 billion, up 22.60% year-over-year, but year-to-date revenue declined 3.33% compared to the same period last year.

• Net profit attributable to shareholders for Q3 was RMB 935 million, down 11.06% year-over-year; year-to-date net profit dropped 44.97%.

• Operating cash flow for the first nine months surged 164.66% year-over-year to RMB 3.28 billion.

Financial highlights

• Q3 gross margin and net margin declined due to increased market competition and supply chain costs.

• Basic EPS for Q3 was RMB 0.82, down 11.83% year-over-year; year-to-date EPS was RMB 1.88, down 45.66%.

• R&D investment for Q3 increased 21.22% year-over-year, totaling RMB 777 million; R&D-to-revenue ratio was 3.80%.

• Total assets at quarter-end were RMB 48.08 billion, up 6.70% from year-end 2024.

Outlook and guidance

• Management attributes profit decline to intensified competition and higher supply chain costs, signaling continued margin pressure.