Amlogic (Shanghai) Co (688099) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 reached RMB 3.33 billion, up 10.42% year-over-year, setting a new record for the period.

• Net profit attributable to shareholders was RMB 497 million, up 37.12% year-over-year.

• Q2 2025 saw record quarterly shipments nearing 50 million units and revenue of RMB 1.80 billion, up 9.94% year-over-year and 17.72% sequentially.

• Excluding share-based payment expenses, adjusted net profit for H1 2025 was RMB 520 million.

• R&D expenses for H1 2025 were RMB 735 million, up RMB 61 million year-over-year.

Financial highlights

• Operating cash flow for H1 2025 was negative RMB 632 million, mainly due to increased prepayments for raw materials.

• Gross margin improved to 36.23% in Q1 and 37.29% in Q2, up 2.01 and 0.95 percentage points year-over-year, respectively.

• Basic EPS for H1 2025 was RMB 1.18, up 35.63% year-over-year.

• Net assets attributable to shareholders at period end were RMB 6.98 billion, up 9.13% from year-end 2024.

• Total assets at period end were RMB 7.90 billion, up 7.20% from year-end 2024.

Outlook and guidance

• Management expects Q3 and full-year 2025 operating results to continue growing year-over-year, though with some uncertainty.

• Ongoing focus on operational efficiency and new product launches is expected to drive further improvements.