Xintec (3374) Q2 2025 earnings summary

Executive summary

• Net revenue for Q2 114 was NT$1,536.85 million, down 6.4% year-over-year and 0.6% sequentially; first half revenue was NT$3,082.26 million, flat from the prior year.

• Net income for Q2 114 was NT$64.70 million, an 81.1% decline from 1Q'25 and 80.1% year-over-year; first half net income was NT$406.97 million, down 37.4% year-over-year.

• EPS for Q2 114 was NT$0.24, compared to NT$1.26 in 1Q'25 and NT$1.20 in Q2 113; first half EPS was NT$1.50, down from NT$2.40 year-over-year.

• Gross margin for Q2 114 dropped to 15.6% from 29.7% in 1Q'25 and 32% in Q2 113; first half gross margin was 23%, down from 33% year-over-year.

Financial highlights

• Operating income for Q2 114 was NT$163.88 million, down from NT$411.08 million in Q2 113; first half operating income was NT$505.62 million, down from NT$773.64 million year-over-year.

• Operating margin for Q2 114 was 10.7%, down from 22.1% in 1Q'25 and 25% in Q2 113.

• Net profit margin for Q2 114 was 4.2%, a significant drop from 22.1% in 1Q'25 and 20% in Q2 113.

• ROE for Q2 114 was 2.8%, compared to 14.8% in 1Q'25 and 15.9% in Q2 113.

Segment performance

• CSP contributed 49% of Q2 114 revenue, down 17% QoQ and 35% YoY.

• Testing accounted for 44% of revenue, up 34% QoQ and 78% YoY.

• PPI made up 6% of revenue, down 7% QoQ but up 3% YoY.

• Wafer-level packaging and testing remain the core revenue drivers, with the majority of sales to foundry and IC design customers.

• Revenue by application: consumer electronics and automotive electronics are the main segments.