On January 14, DK Electronic Materials (SZ:300842) released its 2025 performance forecast. The company expects to report a net loss attributable to shareholders of 200-300 million yuan, compared to a profit of 360 million yuan in the same period last year. Net profit attributable to shareholders after deducting non-recurring gains and losses is projected to be between 160 million and 240 million yuan, a year-on-year decrease of 45.34% to 63.56%.
DK Electronic Materials cited the following reasons for the performance changes:
· First, the company’s performance change during the reporting period was primarily driven by non-recurring gains and losses, which impacted net profit attributable to shareholders by approximately -400 million to -500 million yuan. To hedge against the risk of silver powder price volatility, the company engaged in silver futures contracts. Additionally, to reduce procurement costs for silver powder and manage price fluctuation risks, the company conducted silver leasing activities. During this period, silver prices rose rapidly and sharply, resulting in significant fair value losses on silver futures and silver leasing, measured at the silver price on the balance sheet date.
· Second, during the reporting period, the company incurred approximately 120 million yuan in share-based payment expenses attributable to shareholders due to the implementation of an equity incentive plan.
· Third, the company continued to increase investment in and expand its memory business segment. Through the acquisition of Jiangsu Jingkai, DK Electronic Materials achieved an integrated industrial layout for its memory business, covering “chip application development and design—wafer testing—chip packaging and testing,” thereby enhancing industrial competitiveness. Concurrently, the DRAM market experienced sustained improvement in demand, with the memory chip business generating approximately 500 million yuan in revenue during the period. Both revenue scale and profitability increased significantly year-on-year, particularly in the fourth quarter, which alone achieved about 230 million yuan in revenue. Moving forward, the company will continue to intensify efforts in market development and product R&D for the memory segment to capitalize on high-growth market opportunities.
· Fourth, the company maintains R&D and production centers as well as partners in Wuxi, Shanghai, Mianzhu, Taiwan, South Korea, and other domestic and international locations. It also operates sales centers in the United States, Singapore, Hong Kong, and elsewhere to promptly respond to global customers’ customized product development and support needs while meeting high-quality and high-compliance product delivery standards. Through independent R&D and strategic acquisitions, the company has built an intellectual property portfolio centered on high-value invention patents (accumulating 375 authorized patents, including 291 invention patents). Among these, the lead-tellurium oxide technology patent held by its subsidiary, Solamet®, has become a foundational patent in the conductive paste field for mainstream and advanced photovoltaic cell technologies such as PERC, TOPCon, and TBC, playing a crucial supporting role in the technological evolution of the global photovoltaic industry.
