Cambricon(SH:688256) Hua Er Jie Jian Wen·2025-10-18 00:04Core Insights - The company, Cambricon, reported a remarkable financial performance in Q3, with revenue exceeding 1.727 billion yuan, marking a year-on-year increase of over 13 times, and net profit reaching 567 million yuan, achieving a historic transition from continuous losses to stable profitability [1][3][4] Financial Performance - Q3 revenue reached 1.727 billion yuan, a staggering year-on-year increase of 1332%, while total revenue for the first three quarters was 4.607 billion yuan, reflecting a growth of 2386% [2] - The net profit for Q3 was 567 million yuan, marking the third consecutive quarter of profitability, although it decreased by 17% compared to the previous quarter; total net profit for the first three quarters was 1.605 billion yuan [2][3] - The adjusted net profit, excluding non-recurring gains, was 1.419 billion yuan for the first three quarters, indicating that profitability is driven by core business operations rather than government subsidies [4][5] Profitability Metrics - 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, compared to a loss of 1.74 yuan in the same period last year [5][6] Research and Development - R&D investment for the first three quarters was 715 million yuan, up 8.45% year-on-year, but the proportion of R&D expenses to revenue dropped significantly from 455.65% to 15.51%, indicating a shift towards commercialization [7] - Despite the reduction in R&D expense ratio, absolute R&D spending increased, with Q3 R&D investment at 258 million yuan, a year-on-year growth of 22.05% [7] Inventory and Cash Flow - Inventory surged from 1.774 billion yuan at the beginning of the year to 3.729 billion yuan, an increase of over 110%, suggesting anticipation of strong future demand [8] - Accounts receivable rose from 305 million yuan to 567 million yuan, an increase of 86%, while operating cash flow net outflow improved significantly to 29 million yuan compared to 1.81 billion yuan outflow in the same period last year [8][9] Capital Structure and Funding - The company completed a private placement in September, raising 3.985 billion yuan, which nearly doubled total assets from 6.718 billion yuan to 12.592 billion yuan [10] - Cash and cash equivalents increased from 1.986 billion yuan to 5.178 billion yuan, with total cash-like assets exceeding 6.4 billion yuan, enhancing financial safety margins [11]