Sercomm (5388) Q2 2025 earnings summary

Executive summary

• Net sales in Q2 2025 increased 7.6% sequentially to NT$12,215 million, with net income up 9.6% to NT$334 million compared to Q1 2025.

• For 1H 2025, net sales declined 21.2% year-over-year to NT$23,569 million, and net income dropped 47.6% to NT$639 million.

• Consolidated financial statements for H1 2025 received a qualified audit opinion due to certain subsidiaries and equity-method investments not being independently reviewed, representing up to 17.3% of total assets and significant portions of comprehensive income.

Financial highlights

• Q2 2025 gross profit margin was 16.6%, down from 19.1% in Q1 2025.

• Operating profit for Q2 2025 rose 5.4% sequentially to NT$378 million.

• EPS after tax for Q2 2025 was NT$1.13, up from NT$1.02 in Q1 2025.

• For H1 2025, operating revenue was NT$23,569 million, gross margin was 17%, and net income attributable to owners was NT$638.9 million.

• Cash and cash equivalents at June 30, 2025, stood at NT$11,398 million, up from NT$8,306 million at year-end 2024.

Outlook and guidance

• Management is monitoring the impact of new IFRS standards and Pillar Two tax legislation, with no significant near-term impact expected.

• Shareholders approved the issuance of 5 million employee restricted shares at NT$80 per share, effective July 2025.