Will Semiconductor (603501) Q2 2025 earnings summary

Executive summary

• Operating revenue for H1 2025 reached RMB 13.96 billion, up 15.4% year-over-year, with net profit attributable to shareholders at RMB 2.03 billion, up 48.3% year-over-year.

• Image sensor solutions drove growth, especially in automotive and emerging markets, while smartphone segment revenue declined due to product lifecycle and market softness.

• R&D investment increased 9% year-over-year to RMB 1.72 billion, supporting new product launches and technological innovation.

• The company completed its convertible bond fundraising projects, using surplus funds to supplement working capital.

• Share repurchase and cancellation actions were implemented to enhance shareholder value.

Financial highlights

• Operating revenue: RMB 13.96 billion, up 15.4% year-over-year.

• Net profit attributable to shareholders: RMB 2.03 billion, up 48.3% year-over-year.

• Basic EPS: RMB 1.69, up 48.3% year-over-year; diluted EPS: RMB 1.68.

• Gross margin improved due to product mix optimization and cost control.

• Net cash flow from operating activities: RMB 1.89 billion, up 3.7% year-over-year.

Outlook and guidance

• Global semiconductor market expected to grow 15.4% in 2025 and 9.9% in 2026, with strong demand in logic, memory, and sensors.

• Company aims to expand in automotive, emerging markets, and high-end smartphone imaging, with new product launches planned for H2 2025.

• Continued R&D investment and supply chain optimization to support future growth.