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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.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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