Cambricon(SH:688256) Hua Er Jie Jian Wen·2025-10-17 11:30Core Viewpoint - The company has experienced explosive growth in its financial performance, with significant increases in revenue and net profit, marking a historic turnaround from previous losses [1][3]. Financial Performance - Q3 revenue reached 1.73 billion yuan, a year-on-year increase of 1,332.52% - Revenue for the first three quarters totaled 4.61 billion yuan, up 2,386.38% year-on-year - Q3 net profit was 567 million yuan, with a total of 1.60 billion yuan for the first three quarters, indicating a complete reversal from a net loss of 728 million yuan in the same period last year [2][3]. Profitability and Cash Flow - The company achieved a non-GAAP net profit of 1.42 billion yuan for the first three quarters, demonstrating that profitability is driven by business operations rather than one-time gains [3]. - The weighted average return on equity reached 25.21%, an increase of 38.69 percentage points year-on-year, with basic earnings per share at 3.85 yuan [1][3]. Research and Development - R&D investment for the first three quarters was 715 million yuan, a year-on-year increase of 8.45%, but the proportion of R&D expenses to revenue dropped sharply from 455.65% to 15.51% [4]. - This decline indicates a shift from a "purely burn cash on R&D" phase to a balanced approach of R&D and commercialization [4]. Balance Sheet Concerns - Inventory surged from 1.77 billion yuan at the beginning of the year to 3.73 billion yuan, an increase of over 110%, which may indicate either anticipation of high future demand or slower-than-expected sales [5]. - Accounts receivable rose from 305 million yuan to 567 million yuan, an increase of 86%, highlighting potential risks in cash flow management [5]. Financing Activities - The company completed a private placement in September, raising 3.985 billion yuan, which significantly increased total assets from 6.718 billion yuan to 12.592 billion yuan [7]. - This financing suggests ongoing substantial future capital needs, possibly for capacity expansion or new product development [7]. Customer Structure and Order Sustainability - The increase in contract liabilities from 89,000 yuan to 7.96 million yuan indicates a significant rise in prepayments, suggesting a healthy order backlog [8]. - However, the volatility in demand for AI chips poses risks to the sustainability of this growth, with factors such as customer procurement cycles and product competitiveness being critical [8]. Shareholder Structure - The founder retains a strong control over the company with a 28.57% stake, while institutional investors have increased their holdings, reflecting confidence in the company's turnaround [10][11].