Zhen Ding Technology Holding (4958) Q2 2025 earnings summary

Executive summary

• 1H25 revenue rose 20.6% YoY to NT$78.3bn, setting a record for the period, with improvements in gross and operating margins despite higher depreciation and FX losses.

• Consolidated financial statements for the six months ended June 30, 2025, were audited and present a fair view in accordance with local and international standards.

• Net profit for the six months ended June 30, 2025, was NT$2,413 million, compared to NT$2,103 million in the prior year.

• All four major application segments achieved YoY growth, with IC substrates delivering the highest rate.

• Monthly revenue set new records for six consecutive months in 1H25.

Financial highlights

• Gross profit increased 34.6% YoY to NT$12.9bn; gross margin improved by 1.7ppts to 16.5%.

• Operating profit surged to NT$3.5bn (up 3,415.1% YoY); operating margin rose to 4.4%.

• Net income grew 14.7% YoY to NT$2.4bn, despite a NT$639mn FX loss versus a NT$1,195mn gain last year.

• Cash inflow from operations up 80.5% YoY to NT$18.3bn; cash and equivalents at NT$74.2bn.

• Basic and diluted EPS for the six months ended June 30, 2025, were NT$1.30 and NT$1.29, respectively.

Outlook and guidance

• Full-year 2025 revenue growth in USD expected to outpace industry average; 2H25 performance to surpass 1H25.

• 2026 projected as a pivotal growth year, driven by AI smartphones, foldables, glasses, and high-end AI servers.

• The company continues to invest in capacity expansion and R&D to support future growth.

• Issued the 5th overseas unsecured convertible bonds post-period, with a total limit of USD 400 million and 5-year maturity.