SC New Energy posts strong semi-annual growth despite cash flow drop

For the first half of 2025, Shenzhen SC New Energy Technology Corp. reported a 26.41% increase in operating revenue to 8.37bn yuan and a 49.26% rise in net profit attributable to shareholders, reaching 1.83bn yuan. The company’s total assets stood at 29.38bn yuan, reflecting a 12.64% decrease, while net assets attributable to shareholders increased by 12.80% to 12.51bn yuan. These gains occurred despite a 496.77% drop in net cash flow from operating activities, which totaled -775.90m yuan.

The company is strategically adjusting its capital use, including extending the completion dates for several key projects, such as the "Ultra-High Efficiency Solar Cell Equipment Industrialization Project – Dual-Side Transparent Conductive Film Equipment (PAR) Industrialization Project" and the "Third-Generation Semiconductor Equipment R&D Project" to December 31, 2025. This allows for judicious capital deployment amidst construction delays and market opportunities. Additionally, the company plans to utilize up to 6.5bn yuan in idle self-owned funds for cash management through low-risk, high-liquidity financial products over 12 months.

Shenzhen SC New Energy Technology Corp. also recorded 197.96m yuan in credit and asset impairment losses for the first half of 2025, including significant write-offs for accounts receivable and inventory. These impairments, along with inventory write-offs totaling 142,941.40 yuan, impacted the semi-annual profit. The company’s consolidated financial statements as of June 30, 2025, are unaudited.