Shenzhen MTC sees profit dip in Q3 2025 despite strategic shift

Shenzhen MTC reported a 14.03% year-on-year decrease in revenue to 13,895,511,457.18 yuan for the first three quarters of 2025. Net profit attributable to shareholders also fell by 27.13% to 1,000,317,383.48 yuan, while diluted earnings per share decreased by 27.11% to 0.2210 yuan. Despite these declines, the company observed quarter-on-quarter improvements in Q3, with revenue increasing by 13.72% from Q2 and 45.38% from Q1, indicating strengthening operational resilience.

The company's traditional businesses are undergoing a strategic shift towards globalized and intelligent operations, with overseas production bases expanding and intelligent terminal gross margins expected to improve. New emerging businesses, including LED, optical communication, and internet video operations, now contribute over 60% of profits, acting as a core driver for growth and offsetting pressures in traditional segments. Key initiatives include expanding Mini/Micro LED applications and advancing 400G/800G optical module development.

Operating cash flow saw a substantial increase of 534.23% year-on-year, reaching 1,537,272,578.86 yuan due to reduced raw material procurement and effective collection of accounts receivable. However, financing cash flow decreased by 215.48% due to lower bank borrowings compared to the previous year.