Hotai Motor (2207) Q2 2025 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2025 was NT$141.1 billion, down from NT$142.8 billion year-over-year, with net income attributable to owners at NT$8.26 billion, a decrease from NT$11.76 billion in the prior year period.

• Earnings per share for the six months were NT$14.83, compared to NT$21.10 year-over-year.

• The group operates across vehicle distribution, installment trading, leasing, property insurance, and overseas sales segments.

Financial highlights

• Total assets as of June 30, 2025 were NT$504.7 billion, with total liabilities at NT$398.7 billion and equity at NT$106.0 billion.

• Gross margin remained stable, with cost of sales at NT$99.9 billion for the six months, representing 71% of revenue.

• Operating expenses for the period were NT$13.3 billion, slightly down from NT$13.5 billion year-over-year.

• Cash and cash equivalents at period end were NT$22.3 billion.

Outlook and guidance

• The group expects significant changes in insurance segment reporting and equity due to IFRS 17 implementation in 2026, with most insurance contracts qualifying for the premium allocation approach.

• Management is unable to quantify the financial impact of IFRS 17 adoption as of the reporting date.