Proposed a dividend of 130 yuan per share, Saiweiwei Electric rolled out a 109 million yuan dividend plan. Last year, revenue and gross profit margin for battery safety chips both increased.

After delivering a results report showing both revenue and net profit increased, the chip design company Saiwei Weidong (SH688325) unveiled a “bonus” dividend plan, drawing market attention.

According to the company’s 2025 annual report disclosed on the evening of April 2, last year the company achieved double-digit year-on-year growth in both operating revenue and net profit attributable to shareholders. Against this backdrop, the company plans to distribute cash dividends of 13 yuan for every 10 shares to all shareholders (tax included). The total dividend amount exceeds the net profit attributable to shareholders for the year.

However, on the other side of the earnings growth and high dividend payout are the company’s surge in inventories and its operating cash flow turning from positive to negative. The annual report shows that as of the end of 2025, the carrying value of the company’s inventories reached 181 million yuan, up more than 70% from the beginning of the year; net cash flow from operating activities turned from a net inflow of 64.8M yuan in the previous year to a net outflow of 5.07M yuan.

Total dividend amount exceeds last year’s net profit attributable to shareholders

With both revenue and net profit rising by over 20%, Saiwei Weidong chose a “generous” dividend plan to reward shareholders. According to the company’s 2025 annual report, in 2025 the company achieved operating revenue of 489 million yuan, up 24.34% year on year, and net profit attributable to shareholders was 97.3449 million yuan, up 23.47% year on year.

It is also worth noting that the company’s consolidated gross margin last year reached 53.66%, staying steady and improving.

By product category, in 2025 the company’s battery protection IC products achieved operating revenue of 223 million yuan, up 21.67% year on year, mainly benefiting from increased demand from end markets such as clean home appliances, TWS (true wireless) earphones/wearables, and AIoT (artificial intelligence of things) devices. The gross margin for these products was 51.83%, up 2.69 percentage points year on year.

Battery gauge IC products achieved operating revenue of 202 million yuan, up 36.01% year on year, mainly benefiting from increased demand from TWS earphones/wearables, drones, power banks, and outdoor energy storage. The gross margin for these products decreased by 0.84 percentage points year on year, but still reached 60.43%.

Revenue from charging management and other IC products was 63.8129 million yuan, basically flat compared with last year.

On this basis, the board of directors resolved to approve the 2025 profit distribution proposal. The proposal shows that the company plans to distribute cash dividends of 13 yuan for every 10 shares to all shareholders (tax included), with a total planned cash dividend of about 109 million yuan. The total dividend amount exceeds the company’s net profit attributable to shareholders for the full year 2025 (97.3449 million yuan), and the payout ratio is as high as 112.37%.

Saiwei Weidong’s main business is the research and development and sales of analog chips, centered on battery management ICs and extending to the power management IC field.

Inventories surge—company says it is strategic stocking

On the other side of the high dividend, the company’s inventory level and cash flow situation at Saiwei Weidong have also drawn the attention of investors.

During the reporting period, net cash flow from operating activities was -5.07M yuan, while it was a net inflow of 64.8M yuan in the same period of the prior year.

In response, the company explained in the annual report that the cash outflow from operating activities was mainly “the company, based on market conditions, actively strengthened supply-chain management and strategically increased inventory.”

The annual report also shows that as of December 31, 2025, the carrying value of inventories reached 181 million yuan, up about 72% year on year; the figure at the end of 2024 was 105 million yuan.

From production and sales data, inventory levels for battery protection ICs, battery gauge ICs, and charging management and other ICs all increased significantly during the reporting period, with year-on-year growth of 112.98%, 82.31%, and 74.99%, respectively.

The company therefore also pointed out in the “Risk Factors” section that if the market accelerates its downturn in the future, or if product refresh cycles speed up due to technological iteration, the risk of inventory impairment and write-downs may increase, which could adversely affect the company’s operating performance.

During the reporting period, the company’s research and development expenses were 137 million yuan, up 19.95% year on year. As a proportion of operating revenue, they were 28.04%, which means that “the company’s capability to convert technological achievements into products and its product development efficiency have improved.”

Daily Economic News