Darfon Electronics (8163) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 reached NT$5,483 million, up 7.3% year-over-year, with gross profit margin stable at 18%.

• Net income attributable to shareholders dropped to NT$8 million, a sharp decline of 86.5% year-over-year, with EPS at NT$0.21 versus NT$0.52 in the same quarter last year.

• Comprehensive income turned negative at NT$(37) million, mainly due to unrealized losses on equity investments.

• Profit margin improved due to an optimized product mix, despite lower net income.

Financial highlights

• Gross profit for Q1 2025 was NT$979 million, nearly flat year-over-year, with gross margin at 18%.

• Operating income was NT$32 million, down sharply from NT$218 million in Q1 2024, but up 29.9% sequentially.

• Free cash flow was negative NT$243 million, down from positive NT$309 million a year ago.

• Cash and cash equivalents increased to NT$5,699 million as of March 31, 2025.

• Net cash used in operating activities was NT$(67) million, compared to NT$595 million provided in Q1 2024.

Outlook and guidance

• Flexible and prudent capital expenditure planned in response to macroeconomic uncertainty.

• The board approved a cash dividend of NT$2.0 per share for 2024, down from NT$4.0 per share for 2023.

• Management expects no significant impact from new IFRS standards effective in 2026–2027.

• Liquidity and capital structure maintained to support long-term competitiveness.