Crystal Clear Electronic Material Co Ltd Reports Profit Turnaround
Crystal Clear Electronic Material Co Ltd, a Suzhou-based chemical materials company specializing in ultra-pure chemical materials for the microelectronics industry, has reported a significant turnaround in its financial performance for the first half of 2025. The company, listed on the Shenzhen Stock Exchange, announced a net profit of 69.75 million CNY, marking a shift from a loss of 49.76 million CNY in the same period last year. This profit turnaround has resulted in a basic earnings per share of 0.07 CNY.
Financial Highlights
The company’s total operating revenue for the period reached 768 million CNY, reflecting a 10.68% increase compared to the previous year. The net profit of 69.75 million CNY represents a remarkable year-over-year growth of 1501.66%. The financial report also highlighted that the company’s total assets stood at 514.6 million CNY, with accounts receivable amounting to 366 million CNY. The net cash flow from operating activities was 1.73 billion CNY, with cash received from sales and services totaling 6.97 billion CNY.
Growth and Risks
The financial analysis indicates that the company’s growth in net profit is a standout performance. However, the company faces five financial risks, including weak profitability, poor growth ability, low growth in operating profit, subpar operational capability, and inadequate cash flow from main business operations. Despite these challenges, the company’s debt repayment ability remains strong, and the quality of its assets is excellent.
Dividend Distribution Plan
In addition to the financial report, Crystal Clear Electronic Material Co Ltd announced its dividend distribution plan for the first half of 2025, proposing a dividend of 0.1 CNY per share, including tax. This distribution is expected to total 10.57 million CNY, accounting for 15.16% of the net profit. This marks the ninth dividend distribution since the company went public.
Industry Context
Within the electronic chemicals industry, Crystal Clear Electronic Material Co Ltd’s financial performance is below the industry average. The company’s overall financial health is rated at 1.23 out of a possible higher score, with strengths in debt repayment and asset quality but weaknesses in cash flow, operational ability, profitability, and growth potential.
Conclusion
Despite facing several financial risks and operating below the industry average in terms of financial health, Crystal Clear Electronic Material Co Ltd has demonstrated a strong profit turnaround and growth in net profit for the first half of 2025. The company’s strategic focus on dividend distribution and addressing its financial risks will be crucial for its future performance and competitiveness in the electronic chemicals industry.