Elite Material (2383) Q2 2025 earnings summary

Executive summary

• Achieved strong revenue and profit growth in Q2 2025, with revenue reaching NTD 22.5 billion (up 46% YoY) and net income at NTD 3.48 billion (up 43% YoY).

• Maintained global leadership in high-end eco-friendly laminates and expanded share in premium market segments.

• Continued investment in technology, scale, and geographic diversity to support future growth.

• Gross margin improved to 30% in Q2 2025 from 27% in Q2 2024, reflecting better cost control and product mix.

• Comprehensive income was impacted by significant foreign currency translation loss, resulting in total comprehensive income of NTD 436 million for Q2 2025.

Financial highlights

• Revenue reached NTD 22.5 billion in Q2 2025, up 3.8% QoQ and 46% YoY; net income was NTD 3.48 billion, up 0.3% QoQ and 43% YoY.

• Gross margin improved to 30.3% (+2.9 ppts YoY); operating margin at 20.6% (+1.7 ppts YoY); EPS at NTD 10.02 (+41.5% YoY).

• Cash and equivalents stood at NTD 17.6 billion as of June 30, 2025, up from NTD 13.5 billion a year earlier.

• Operating revenue for H1 2025 was NTD 44.2 billion, up 56% YoY; net income for H1 2025 was NTD 6.95 billion, up 57%.

• Basic EPS for H1 2025 was NTD 20.03, compared to NTD 12.83 in H1 2024; diluted EPS was NTD 19.33.

Outlook and guidance

• High-end CCL market projected to grow at 40% CAGR (2024-2027), with overall CCL market at 18% CAGR.

• Expects to outpace high-end CCL market growth, leveraging technology and capacity expansion.

• Board approved major capital expenditures for plant expansion in China and the US, including RMB 1.94 billion for Kunshan, RMB 1.68 billion for Zhongshan, and up to USD 49 million for the US subsidiary.

• Kunshan plant relocation expected to complete by end of 2026, with staged compensation from local government.