Cambricon(SH:688256) Sou Hu Cai Jing·2025-10-17 12:20Core Viewpoint - The company, Cambricon, has reported a remarkable financial performance in Q3, with a significant increase in revenue and a transition from losses to stable profitability, driven by the booming demand for AI infrastructure and applications [1][4]. Financial Performance - Q3 revenue reached 1.73 billion yuan, a year-on-year increase of over 1,332% [3][10]. - Net profit for Q3 was 567 million yuan, marking the third consecutive quarter of profitability [4][10]. - For the first three quarters, total revenue was 4.61 billion yuan, reflecting a year-on-year growth of 2,386% [3][10]. - The net profit for the first three quarters amounted to 1.60 billion yuan, indicating a historic turnaround from losses [10]. Profitability Metrics - The adjusted net profit (excluding non-recurring gains and losses) for the first three quarters was 1.42 billion yuan, demonstrating that profitability is driven by core business operations rather than government subsidies [5][10]. - The weighted average return on equity reached 25.21%, an increase of 38.69 percentage points compared to the same period last year [6][10]. - Basic earnings per share were 3.85 yuan, a significant improvement from a loss of 1.74 yuan in the previous year [6][10]. Research and Development - R&D investment for the first three quarters was 715 million yuan, up 8.45% year-on-year, indicating continued commitment to innovation [8][10]. - The proportion of R&D expenditure relative to revenue dropped sharply from 455.65% to 15.51%, reflecting a shift towards a more balanced approach between R&D and commercialization [8][10]. Inventory and Cash Flow - Inventory surged from 1.77 billion yuan at the beginning of the year to 3.73 billion yuan, an increase of over 110%, suggesting anticipation of strong future demand [9][10]. - Operating cash flow for the first three quarters showed a net outflow of only 29 million yuan, a significant improvement from a 1.81 billion yuan outflow in the previous year [11][10]. Capital Structure and Funding - Total assets increased to 12.59 billion yuan, a year-on-year growth of 87%, primarily due to a private placement that raised 3.98 billion yuan [10][11]. - Cash and cash equivalents rose from 1.99 billion yuan to 5.18 billion yuan, enhancing the company's financial safety margin [12].