Zhen Ding Technology Holding
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Zhen Ding Technology Holding (4958) investor relations material

Zhen Ding Technology Holding Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary11 Nov, 2025

Executive summary

  • 3Q25 revenue declined 6.4% year-over-year, mainly due to foreign exchange effects, but increased 0.6% in USD terms; gross margin was 22.0%, down 0.5 percentage points, reflecting higher depreciation from AI-related investments.

  • For the first three quarters of 2025, cumulative revenue rose 8.8% year-over-year to a record high, with all four major application segments growing, led by a 30% increase in IC substrates.

  • Operating margin for 1-3Q25 improved by 1.2 percentage points year-over-year, while net income declined 12.4% due to lower non-operating income.

  • Consolidated financial statements for the nine months ended September 30, 2025 and 2024 were reviewed with no material misstatements identified by independent accountants.

  • The group operates globally in the PCB manufacturing sector, with a complex structure of subsidiaries and significant international exposure.

Financial highlights

  • 3Q25 revenue: NT$47,366 million (-6.4% YoY); gross profit: NT$10,410 million (-8.7% YoY); operating profit: NT$4,530 million (-23.6% YoY); net income: NT$3,589 million (-24.5% YoY); EPS: NT$2.46.

  • 1-3Q25 revenue: NT$125,652 million (+8.8% YoY); gross profit: NT$23,306 million (+11.0% YoY); operating profit: NT$8,011 million (+32.8% YoY); net income: NT$6,002 million (-12.4% YoY); EPS: NT$3.79.

  • Net profit for the nine months ended September 30, 2025 was NT$6.00 billion, down from NT$6.85 billion year-over-year.

  • Gross margin improved to 19% from 18% year-over-year.

  • Cash and cash equivalents as of September 30, 2025: NT$76,608 million (+18.4% YoY).

  • Cash inflow from operations for 1-3Q25: NT$15,407 million (+63.8% YoY).

Outlook and guidance

  • 4Q25 expected to follow normal seasonality and reach the year's peak, with full-year 2025 revenue set to hit a new high.

  • Optimistic 2026 outlook, with all four major applications set to accelerate growth; AI server revenue expected to scale up in 2026 and double in 2027.

  • Capacity expansion at multiple sites to meet rising demand for high-end AI products, with significant increases in ABF substrate and iHDI/HLC capacity planned.

  • The group continues to invest in capacity expansion and R&D, with significant capital commitments for property, plant, and equipment.

  • Management is monitoring the impact of new IFRS standards and global tax changes, including OECD Pillar Two rules.

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