Nexchip Semiconductor (688249) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 reached ¥5.20 billion, up 18.21% year-over-year, driven by increased sales volume and high capacity utilization.

• Net profit attributable to shareholders was ¥332 million, up 77.61% year-over-year; adjusted net profit (excluding non-recurring items) was ¥204 million, up 115.30% year-over-year.

• Operating cash flow was ¥1.71 billion, up 31.65% year-over-year, reflecting stronger collections and business expansion.

• Gross margin for H1 2025 was 25.76%, with improved product mix and cost optimization.

Financial highlights

• Basic and diluted EPS were ¥0.17, up 70% year-over-year; adjusted EPS was ¥0.10, up 100% year-over-year.

• Weighted average ROE was 1.58%, up 0.72 percentage points year-over-year.

• R&D investment was ¥695 million, 13.37% of revenue.

• Total assets at period end were ¥51.21 billion; net assets attributable to shareholders were ¥21.02 billion.

• Non-recurring gains totaled ¥128 million, mainly from government grants.

Outlook and guidance

• Continued expansion in OLED, CIS, PMIC, and automotive chip markets, with 28nm OLED driver chips expected to enter risk production by end-2025.

• Ongoing R&D in advanced process nodes (28nm, 40nm, 55nm) and new applications (AR/VR, Micro OLED).

• Management expects stable demand in display, automotive, and power management segments, with further product diversification.