Darfon Electronics (8163) Q3 2025 earnings summary

Executive summary

• Net sales for 3Q25 reached NT$6,503 million, down 5.8% sequentially but up 21.5% year-over-year, with steady PC/NB demand supporting revenue.

• Revenue for the nine months ended September 30, 2025, was NT$18,888.8 million, up 20.6% year-over-year, driven by growth in both intelligent and green energy products.

• Net income for 3Q25 was NT$-134 million, a significant decline from NT$20 million in 2Q25 and NT$138 million in 3Q24; net income for the nine months was NT$128.5 million, down from NT$505.1 million in the prior year period.

• Profitability was impacted by one-off inventory and provision adjustments, foreign currency translation losses, and lower profitability in key subsidiaries.

Financial highlights

• Gross profit for 3Q25 was NT$920 million, with a gross margin of 14.1%, down from 16.1% in 2Q25 and 18% in 3Q24; gross margin for the nine months was 16%, down from 19% year-over-year.

• Operating income turned negative at NT$-258 million in 3Q25 and was NT$-98.8 million for the nine months, compared to NT$127 million in 2Q25 and NT$548.4 million in the prior year.

• Basic EPS for 3Q25 was NT$0.03, down from NT$0.22 in 2Q25; basic and diluted EPS for the nine months were NT$0.46, down from NT$1.82 and NT$1.80.

• Cash and cash equivalents increased to NT$6,324.4 million as of September 30, 2025, from NT$3,927.0 million a year earlier.

• Net cash provided by operating activities was NT$1,297.1 million, down from NT$2,403.4 million year-over-year.

Segment performance

• IT Peripherals, Green Energy, and Integrated Components contributed to the product mix, with IT Peripherals and Green Energy showing notable shares.

• Intelligent products contributed NT$11,567.2 million and green energy products NT$7,321.6 million in revenue for the nine months, both segments showing year-over-year growth.

• Product mix remained diversified across quarters, supporting revenue stability.