Solomon Systech International (2878) H1 2025 earnings summary

Executive summary

• H1 2025 revenue fell 25.8% YoY to US$45.9m, mainly from lower shipment volume and average selling prices amid delayed next-generation launches and competitive pricing pressure.

• Profit attributable to owners declined to US$4.0m from US$7.5m; gross margin rose to 39.6% from 32.0%, supported by cost controls and product-mix optimisation.

Financial highlights

• Gross profit was US$18.2m versus US$19.8m; revenue was US$45.934m versus US$61.915m for H1 2024.

• Profit before tax was US$4.104m versus US$7.557m; profit attributable to owners was US$4.003m versus US$7.471m.

• Basic and diluted EPS were US$0.16 each, down from US$0.30 each in H1 2024.

• R&D costs increased 24.3% YoY to US$9.9m, or 21.6% of revenue versus 12.9%; administrative expenses rose 5.8% to US$5.2m.

Outlook and guidance

• H2 demand may soften after H1 retailer stockpiling; related US sales are expected to adjust, while uncertain US trade policy and tariffs weigh on the outlook.

• Strategy prioritises accelerating product commercialisation, increasing R&D investment, broadening market reach and adjusting the product portfolio to market shifts.

• Spectra 6 large e-paper signage and learning-board driver ICs are expected to enter mass production in H2; seven-colour label prototypes are planned for Q4.

• Automotive display ICs are expected to launch in H2 2025; mini-LED backlight standard ICs are also targeted for H2, including automotive HUD applications.