Guangdong Tianyu Semiconductor Issues Profit Alert for FY2025: Significant Reduction in Net Losses and Key Factors Impacting Results

Key Highlights from the Profit Alert

• Substantial Reduction in Net Loss:
  Guangdong Tianyu Semiconductor Co., Ltd. expects to report a net loss of approximately RMB55 million to RMB65 million for the year ended December 31, 2025 (FY2025), a dramatic improvement compared to the net loss of approximately RMB500.3 million recorded in FY2024. This represents a significant year-on-year reduction in losses of about 87% to 89%.
• One-off Factors in FY2024 Not Repeated:
  The sharp improvement is mainly due to the absence of a significant one-off provision for inventory write-downs of approximately RMB315.1 million that was recognized in FY2024.
• Revenue Growth:
  The Group’s overall revenues increased by roughly RMB190 million in FY2025, reflecting business growth.

Additional Details Impacting FY2025 Results

• First Five Months of FY2025 Were Profitable:
  The Group recorded a net profit of approximately RMB9.5 million for the five months ended May 31, 2025, as previously disclosed in the prospectus.
• Second Half Deterioration Due to Non-Operational Factors:
  Despite the early profit, non-operational expenses and customers rescheduling delivery timetables in late FY2025 resulted in a full-year net loss.
• Key Non-Operational Expenses:
  • Foreign Exchange Loss: Approximately RMB9.5 million.
  • Impairment Loss on Trade Receivables: Approximately RMB15 million to RMB25 million was recognized at year-end due to slower customer payments. The company notes that over RMB460 million—more than 50% of the trade receivables outstanding as of December 31, 2025—has since been collected.
  • Listing Expenses: Non-recurring expenses of approximately RMB15 million related to the Company’s December 2025 listing, up from RMB3.4 million in FY2024.
• Impact of Customer Order Rescheduling:
  Some customers rescheduled deliveries late in FY2025, leading to lower-than-expected gross profit and temporary underutilization of production facilities. The resulting unallocated fixed manufacturing costs were directly expensed, contributing to the loss. However, the company reports that the rescheduled orders have since been delivered.

What Shareholders Need to Know (Potentially Price Sensitive)

• The dramatic reduction in net loss is a positive signal for the company’s turnaround, especially as the loss was largely due to non-operational, one-off, and temporary factors rather than a deterioration in core business performance.
• Revenue growth and business expansion are evident, with a notable RMB190 million increase in sales year-on-year.
• The company has successfully collected more than half of its outstanding receivables after the year-end, reducing concerns over bad debts.
• The rescheduled customer orders, now delivered, could contribute positively to future results.
• Investors should note the impact of non-recurring listing expenses and foreign exchange losses, which are not expected to recur at the same levels going forward.
• Final results are still subject to audit and potential revision. Actual results may differ from this preliminary assessment.
• This announcement contains inside information and could materially affect the Company’s share price once the market reacts.

Important Dates and Next Steps

• The audited annual results for FY2025 will be published in accordance with the Hong Kong Listing Rules once available.
• Investors are advised to exercise caution when dealing in the Company’s securities.

Board and Company Information

The board comprises Mr. Li Xiguang (Chairman and executive director), Mr. Au Yeung Chung and Mr. Jiang Dacai (non-executive directors), and Mr. He Zhengsheng, Ms. Li Min, and Mr. Chin Vincent (independent non-executive directors).

Disclaimer: The above summary is based on a preliminary assessment of the unaudited management accounts and statements issued by Guangdong Tianyu Semiconductor Co., Ltd. Actual audited results may differ. Investors should exercise caution and consider the risks before making any investment decisions.

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