ArcSoft (688088) H1 2025 earnings summary

Executive summary

• Achieved revenue of RMB 410.35 million in H1 2025, up 7.73% year-over-year; net profit attributable to shareholders was RMB 88.54 million, up 44.06% year-over-year.

• Mobile smart terminal visual solutions revenue grew 2.23% to RMB 339.32 million; smart automotive and other AIoT visual solutions revenue surged 49.09% to RMB 64.65 million.

• Maintained high R&D investment at RMB 198.59 million, accounting for 48.39% of revenue; R&D staff comprised 62.15% of total employees.

• Proposed cash dividend of RMB 2.20 per 10 shares, totaling RMB 88.16 million, representing 99.58% of H1 net profit.

Financial highlights

• Operating income: RMB 410.35 million, up 7.73% year-over-year.

• Net profit attributable to shareholders: RMB 88.54 million, up 44.06% year-over-year.

• Operating cash flow: RMB 46.19 million, a significant improvement from negative RMB 64.85 million in H1 2024.

• Basic and diluted EPS: RMB 0.22, up 46.67% year-over-year.

• Gross margin: 88.37%.

Outlook and guidance

• Will focus on enhancing product capabilities, expanding ecosystem resources, and deepening customer engagement in the second half of 2025.

• Plans to accelerate commercialization of AI glasses and expand application scenarios in consumer markets.

• Continues to invest in R&D for next-generation visual AI, automotive, and AIGC solutions.