Sansal New Materials 2025 Annual Report: Loss Widened to 159 Million Yuan, Revenue Declined 34.6%

On March 17, SanChao New Materials (300554) announced its 2025 annual report. The company’s operating revenue was 228 million yuan, down 34.6% year-over-year; net profit attributable to shareholders changed from a loss of 141 million yuan in the same period last year to a loss of 159 million yuan, further widening the loss; net profit attributable to shareholders excluding non-recurring gains and losses changed from a loss of 145 million yuan to a loss of 168 million yuan, further widening the loss; net operating cash flow was 24.72 million yuan, a year-over-year increase of 123.4%; EPS (fully diluted) was -1.3927 yuan.

In the fourth quarter, the company’s operating revenue was 64.15 million yuan, down 9.3% year-over-year; net profit attributable to shareholders changed from a loss of 94.28 million yuan last year to a loss of 140 million yuan, further widening the loss; net profit attributable to shareholders excluding non-recurring gains and losses changed from a loss of 95.15 million yuan to a loss of 146 million yuan, further widening the loss; EPS was -1.2233 yuan.

As of the end of the fourth quarter, the company’s total assets were 791 million yuan, a decrease of 18.6% from the end of the previous year; net assets attributable to shareholders were 499 million yuan, down 24.2% from the end of the previous year.

In its 2025 annual report, the company mentioned significant changes in its operating business, mainly reflected in reduced diamond wire orders and a sharp decline in product prices, leading to a 34.58% decrease in operating revenue year-over-year.

Although the company’s precision tools used in the semiconductor industry have entered the market, they are still in the product verification stage and contribute little to overall profitability. Due to market changes in 2025, downstream demand was weak, diamond wire orders decreased, and product prices fell sharply. Based on prudence, the company recognized asset impairment losses on assets, fixed assets, and inventories related to the Nakamura project that showed signs of impairment. This impairment is the main reason for the significant loss of the project’s benefits in 2025.