SHANGHAI FUDAN (01385) has announced its financial performance for the year 2025. The company achieved total operating revenue of approximately RMB 3.982 billion, representing a year-on-year increase of 10.92%. However, net profit attributable to owners of the parent company was about RMB 232 million, a significant decrease of 59.42% compared to the previous year. Profit attributable to owners of the parent company after deducting non-recurring gains and losses was approximately RMB 143 million, down by about 69.29% year-on-year. Basic earnings per share stood at RMB 0.28.
In 2025, the semiconductor industry exhibited clear structural divergence, with significant variations in downstream application demand. The company's FPGA products performed well in areas such as wired and wireless communications, satellite communications, industrial control, artificial intelligence, and high-reliability applications, demonstrating strong product competitiveness and contributing to revenue growth. Market performance varied across different product lines within the security and identification chip segment; overall revenue saw a slight increase, driven primarily by RFID and sensor chips. The non-volatile memory market faced intense competition, leading to a decline in annual revenue. Thanks to effective market positioning and stable product quality, MCU chip shipments experienced rapid growth in the automotive and white goods markets compared to the previous year.
While the company's overall operating revenue increased and gross profit margin remained stable, with gross profit rising by approximately RMB 229 million year-on-year, the decline in net profit was primarily attributed to increased R&D expenses and asset impairment losses, coupled with a reduction in other income.
R&D expenses increased as the company continued to strengthen its diversified supply chain system and intensify efforts in developing new processes and products to enhance product competitiveness and supply chain resilience. Furthermore, influenced by changes in the international trade environment, shifts in supply chain and customer demand made it difficult for some capitalized R&D projects to achieve expected economic benefits, leading to the write-off of portion of development expenditures. During the reporting period, R&D expenses amounted to approximately RMB 1.223 billion, an increase of about RMB 192 million from the same period last year.
Asset impairment losses also rose. Against a backdrop of increasing international uncertainty and frequent fluctuations in the integrated circuit supply chain, the company implemented a strategic inventory stocking policy in recent years to ensure continuous and stable delivery to customers, particularly increasing stocks of key materials constrained by overseas production capacity. On one hand, this inventory effectively enhanced supply chain security and resilience amid tense international trade conditions, supporting strong market performance for related products and ensuring stable operating revenue. On the other hand, changes in downstream demand structure for some stocked products resulted in sales falling short of expectations, leading to an increase in inventory write-down losses for the period. Additionally, impairment losses were recognized for some intangible asset projects that failed to meet expected returns. During the reporting period, asset impairment losses were approximately RMB 437 million, an increase of about RMB 268 million year-on-year.
Other income decreased due to a reduction in the value-added tax additional credit amount recognized for integrated circuit design enterprises and lower government grants specifically for R&D. In the reporting period, other income was approximately RMB 143 million, a decrease of about RMB 91 million compared to the same period last year.