Red Avenue New Materials Group (603650) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 reached RMB 1,654.65 million, up 4.97% year-over-year, with net profit attributable to shareholders at RMB 350.91 million, up 12.07% year-over-year.

• Electronic chemicals segment revenue grew 29.31% year-over-year, now 26.69% of total revenue, reflecting strategic business optimization.

• Semiconductor photoresist revenue exceeded RMB 200 million, up over 50% year-over-year for the second consecutive year.

• Company expanded overseas with a new Thailand subsidiary and increased stake in Beijing Kehua to 96.33%.

Financial highlights

• Operating income: RMB 1,654.65 million (+4.97% YoY); net profit attributable to shareholders: RMB 350.91 million (+12.07% YoY).

• Net profit excluding non-recurring items: RMB 325.81 million (+43.07% YoY).

• Basic and diluted EPS: RMB 0.59 (+13.46% YoY); ROE: 10.20% (+1.32pp YoY).

• Operating cash flow: RMB 148.13 million (-18.29% YoY); total assets: RMB 8,865.96 million (+5.43% from year-end 2024).

• R&D expenses increased 25.04% YoY to RMB 117.42 million.

Outlook and guidance

• Company expects continued growth in electronic chemicals, leveraging domestic substitution and innovation.

• Market volatility in global tire and electronics sectors anticipated; company to focus on R&D, cost control, and customer service.