<p>AMEC disclosed its 2025 annual report on Monday:</p>
<p>Full-year operating revenue reached 12.385 billion yuan, a year-on-year increase of 36.62%; net profit attributable to the parent company was 2.111 billion yuan, a year-on-year increase of 30.69%.</p>
<p>From a rhythmic perspective, the company's fourth-quarter single-quarter revenue was 4.322 billion yuan and net profit attributable to the parent company was 900 million yuan, both hitting annual highs. Shipment and recognition rhythms accelerated significantly in the second half of the year.</p>
<p>Breaking down the structure, the &#34;main engine&#34; of growth remains etching equipment: in 2025, etching equipment sales reached 9.832 billion yuan, a year-on-year increase of 35.12%. Even more noteworthy is that thin film equipment has begun to &#34;ramp up&#34;—LPCVD equipment sales reached 506 million yuan, a year-on-year surge of 224.23%. The company stated that multiple new thin film equipment models have received repeat orders, and the cumulative shipments of thin film equipment have surpassed 300 reaction chambers, indicating that the outline of a second growth curve is becoming clearer.</p>
<p>The company simultaneously proposed a &#34;cash dividend + capital increase&#34; plan: it plans to distribute a cash dividend of 3.50 yuan (including tax) for every 10 shares, totaling approximately 219 million yuan; and issue 4.9 shares for every 10 shares through capital reserve capitalization, which will increase the share capital from 626 million shares to 933 million shares.</p>
<h2>Revenue Side: Fourth Quarter &#34;Ramp-up&#34; Sustains High Full-Year Growth</h2>
<p>Looking at the quarterly breakdown, revenue in 2025 rose quarter by quarter: Q1-Q4 were 2.173 billion, 2.787 billion, 3.102 billion, and 4.322 billion yuan respectively; net profit attributable to the parent company was 313 million, 393 million, 505 million, and 900 million yuan respectively. Fourth-quarter revenue accounted for about 35% of the full year, reflecting the seasonal characteristics of semiconductor equipment delivery, acceptance, and revenue recognition. It also means the company more smoothly accommodated customer expansion and tool-in rhythms in the second half of the year.</p>
<p>Operating cash flow also showed &#34;late-stage momentum&#34;: Q2 operating cash flow was -174 million yuan, but Q3 and Q4 turned positive to 1.095 billion and 997 million yuan respectively, totaling 2.295 billion yuan for the year. This was significantly stronger than in 2023 (-977 million yuan) and continued to be higher than in 2024 (1.458 billion yuan). For equipment companies, this is usually related to factors such as delivery collection, improvements in the structure of advances/receivables, and enhanced supply chain and delivery efficiency.</p>
<h2>Business Structure: Etching Stabilizes the Base, LPCVD Takes the Baton with High Growth</h2>
<p>The company provided a breakdown of key categories in its annual report:</p>
<ul>
<li>Etching Equipment: Sales in 2025 were 9.832 billion yuan, a year-on-year increase of <strong>+35.12%</strong>. The company emphasized that the new shipment volume of high-end products for critical etching processes in advanced logic and memory saw a significant increase, and achieved &#34;large-scale mass production&#34; in multiple critical etching processes for advanced logic and advanced memory devices.</li>
<li>LPCVD Equipment: Sales in 2025 were 506 million yuan, a year-on-year increase of <strong>+224.23%</strong>. This acceleration from &#34;0 to 1 and then to N&#34; often signifies a transition from validation to broader production line adoption; the company also disclosed an increase in &#34;repeat orders&#34; for thin film equipment and cumulative shipments exceeding 300 reaction chambers.</li>
</ul>
<p>From an industrial logic perspective, advanced logic relies more on multi-patterning processes (increasing the number of etching and thin film steps) due to lithography limitations. Coupled with 3D NAND advancing toward higher stacking layers and increased aspect ratio demands, the value and process importance of etching and thin film deposition continue to rise. This is the fundamental reason why AMEC has accelerated the completion of its thin film portfolio, including LPCVD, ALD, and EPI, beyond its &#34;etching main channel&#34; in recent years.</p>
<h2>Increase In Net Profit Attributable To Shareholders of 30.69%</h2>
<ol>
<li>Net profit margin remains strong, R&amp;D expenses rise rapidly</li>
</ol>
<p>Net profit attributable to the parent company in 2025 was 2.111 billion yuan, corresponding to a net profit margin attributable to the parent company of approximately 17%; net profit attributable to the parent company excluding non-recurring gains and losses was 1.550 billion yuan, with a non-recurring net profit margin of approximately 12.5%. Against the backdrop of significant revenue growth, the company still chose to substantially increase its R&amp;D intensity: R&amp;D investment was 3.744 billion yuan (30.23% of revenue), and R&amp;D expenses were 2.475 billion yuan (up 74.61% year-on-year).</p>
<p>This structure implies two points:</p>
<ul>
<li>In the short term, pressure on the income statement comes from an &#34;active offensive on the expense side&#34; rather than weakening demand;</li>
<li>In the medium to long term, whether high R&amp;D investment can be continuously converted into successful customer validation, repeat orders, and large-scale installation is the key to valuation anchors and profit elasticity.</li>
</ul>
<ol>
<li>Non-recurring gains and losses amplify the parent-company-attributable figures</li>
</ol>
<p>In 2025, non-recurring gains and losses totaled 562 million yuan (compared to 228 million yuan in 2024). Larger items included:</p>
<ul>
<li>Gains and losses from the disposal of non-current assets: 446 million yuan;</li>
<li>Gains and losses from fair value changes and the disposal of financial assets: 177 million yuan;</li>
<li>Government subsidies: 39 million yuan.</li>
</ul>
<p>The company also disclosed that fair value change gains and investment income generated from external equity investments measured at fair value through profit or loss totaled approximately 661 million yuan in 2025 (approximately 198 million yuan in 2024). This explains why the growth rate of net profit attributable to the parent company was significantly faster than the growth of net profit excluding non-recurring items—&#34;investment and disposal&#34; contributed more to the current period's profit structure. Investors need to make a distinction when comparing the quality of annual earnings.</p>
<p>Furthermore, according to the company's disclosure, net profit excluding non-recurring items was also affected by share-based payments: share-based payment expenses in 2025 were 513 million yuan. If the net profit attributable to the parent company excluding non-recurring gains and losses and the impact of share-based payments were 2.063 billion yuan (compared to 1.846 billion yuan in 2024), it would more closely reflect the operating-side profit trend.</p>
<h2>Product Progress and Strategic Actions: Advanced Processes, Advanced Packaging, and the &#34;Dry + Wet&#34; Puzzle</h2>
<p>Product and customer progress disclosed in the annual report primarily points toward &#34;increased penetration in advanced processes + category expansion&#34;:</p>
<ul>
<li>Etching Equipment (CCP/ICP): The company states that its etching equipment has covered numerous applications from 65nm to 3nm and more advanced processes; in 2025, annual shipments of CCP etching equipment exceeded 1000 reaction chambers, with cumulative installed capacity exceeding 5000 reaction chambers. For the ICP dual-chamber tool, the company emphasized that the etch rate control accuracy between chambers reached the 0.2Å per minute level and has been validated in various thin film etching processes.</li>
<li>Thin Film Equipment: Tungsten series CVD/HAR/ALD and metal gate series ALD TiN/TiAl/TaN are progressing through customer validation and acquiring repeat orders; EPI equipment has entered the customer mass production validation stage.</li>
<li>MOCVD: The company continues to emphasize its leading market share in the GaN-based LED MOCVD market since 2017, and is advancing validation in directions such as Mini-LED, Micro-LED, GaN power devices, and 8-inch SiC epitaxy.</li>
<li>Advanced Packaging: TSV etching equipment continues to obtain repeat orders in 2.5D/3D advanced packaging scenarios, and the company is promoting more platform-based equipment.</li>
</ul>
<p>A more &#34;strategic signal&#34; is the company's plan to acquire a controlling stake in Hangzhou Zhonggui Electronic Technology Co., Ltd. by issuing shares and paying cash while raising supporting funds. This move is intended to achieve a leap from &#34;dry process&#34; to a &#34;dry + wet process&#34; total solution. If the transaction is completed, AMEC will move from single-point equipment competition toward competition in &#34;process synergy + complete set introduction&#34; capabilities. Theoretically, there is room to increase customer stickiness and production line penetration speed, but this will also bring execution tests in M&amp;A integration and R&amp;D/product line synergy.</p>
<h2>Dividends and Capital Increase: Cash Returns Remain Steady, Large Share Capital Expansion</h2>
<p>The company proposes to distribute a cash dividend of 3.50 yuan (including tax) for every 10 shares, with a total estimated cash dividend of approximately 219 million yuan based on the current share capital. Calculated roughly based on the 2025 net profit attributable to the parent company of 2.111 billion yuan, the cash dividend ratio is slightly over 10%, indicating a strategy of &#34;steady returns + retaining ammunition for R&amp;D and expansion.&#34;</p>
<p>At the same time, the company plans to issue 4.9 shares for every 10 shares through capital reserve capitalization. After the increase, the total share capital will grow from 626 million shares to 933 million shares. For the secondary market, the capital increase itself does not change the company's intrinsic value, but it changes the presentation of per-share indicators and typically reflects management's expectations for medium-to-long-term business expansion and capital operation space.</p>

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<p>AMEC achieved an annual operating revenue of 12.385 billion yuan, a year-on-year increase of 36.62%; net profit attributable to the parent company was 2.111 billion yuan, a year-on-year increase of 30.69%. The "main engine" of growth remains etching equipment, with annual sales of 9.832 billion yuan, a year-on-year increase of 35.12%. Thin film equipment has begun to "ramp up"—LPCVD equipment sales reached 506 million yuan, a year-on-year surge of 224.23%. The company plans to distribute a cash dividend of 3.50 yuan (including tax) for every 10 shares, totaling approximately 219 million yuan; it also plans to issue 4.9 shares for every 10 shares through capital reserve capitalization, which will increase the share capital from 626 million shares to 933 million shares</p>

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AMEC

AMEC's 2025 Revenue Surges 36.6% YoY, Increase In Net Profit Attributable To Shareholders 30.7%, Proposes Cash Dividend of 3.50 Yuan per 10 Shares and 4.9 Capital Increase Shares | Earnings Insight