AirTAC International Group (1590) Q2 2025 earnings summary

Executive summary

• Over 90% of revenue and expenses are in Renminbi, limiting FX impact; NT dollar appreciation only affects reported figures, not actual operations.

• Q2 2025 revenue reached RMB 2.102 billion, up 11% year-on-year; gross profit grew 8% to RMB 967 million; operating income rose 8% to RMB 641 million.

• Net profit for Q2 2025 was RMB 478 million, down 6% year-on-year, with a net margin of 22.8%.

• Consolidated financial statements for the six months ended June 30, 2025, were audited and found to present fairly in accordance with IFRS and local regulations.

• The Group operates primarily in pneumatic and hydraulic control components, with significant operations in Mainland China and global subsidiaries.

Financial highlights

• Operating revenue for the six months ended June 30, 2025, was $17,048,892 thousand, up 9% year-over-year.

• Net profit for the period was $3,972,646 thousand, a slight decrease from $4,090,082 thousand in the prior year.

• Gross margin for Q2 2025 was 46.0%; operating margin was 30.5%.

• EPS for Q2 2025 was NTD 10.19; for H1 2025, NTD 19.86.

• Total assets as of June 30, 2025, were $54,813,389 thousand, with equity attributable to owners at $44,007,094 thousand.

Outlook and guidance

• 2025 revenue growth guidance maintained at 10%, outpacing industry growth.

• Operating margin expected around 30% for 2025.

• CapEx planned at NTD 2–3 billion for 2025; free cash flow generation remains strong.

• Dividend payout ratio to rise to 55% in 2025 and potentially 60% in 2026.

• The Group is assessing the impact of new IFRS standards effective from 2026 and 2027.