Ingdan Inc (400) H1 2025 earnings summary

Executive summary

• H1 2025 revenue rose 54.5% YoY to RMB6,676.5m; profit attributable to equity shareholders increased 17.2% to RMB132.1m.

• AI-related chip demand and recovery in some storage and memory-module markets drove growth; greater sales to large, lower-margin customers reduced gross margin to 8.8% from 10.6%.

Financial highlights

• Gross profit increased 28.0% YoY to RMB585.9m; operating profit rose 20.8% to RMB275.6m and profit for the period rose 12.4% to RMB190.0m.

• Profit before tax was RMB218.6m; basic and diluted EPS were RMB0.086, up 4.9% from RMB0.082.

• Cost of sales increased 57.6% to RMB6,090.6m; administrative and other operating expenses rose 72.6% to RMB170.2m, partly reflecting net exchange losses and expansion costs.

• R&D expenses rose 8.9% to RMB47.5m; selling and distribution expenses increased 12.0% to RMB106.8m, with higher logistics, warehousing and customer-acquisition costs.

• Income tax expense rose to RMB28.6m from RMB9.5m; the effective tax rate increased to 13.1% from 5.3%, reflecting a higher profit contribution from subsidiaries without tax exemptions.

Outlook and guidance

• WSTS forecast global chip-market growth of 15.4% to US$728bn in 2025 and 9.9% to US$800bn in 2026.

• Priorities include converting solutions into transactions, expanding AI-chain coverage, moving from chip distribution toward technology integration, and developing data-enabled supply-chain and recurring value-added services.

• Domestic AI-computing solutions will initially target research customers before broader enterprise markets; plans also include AI servers, two-wheeler battery-cloud services and an AIoT integration platform.

• Plans include complementary electronics-manufacturing services, customer-retention initiatives, supply-chain finance, insurance and cloud offerings, plus potential strategic partnerships, investments and acquisitions.