Empyrean Technology (301269) H1 2025 earnings summary

Executive summary

• Revenue for the first half of 2025 reached ¥501.54 million, up 13.01% year-over-year, with net profit attributable to shareholders at ¥3.07 million, down 91.90% from the prior year due to high R&D investment and non-recurring items.

• The company maintained its leading position among domestic EDA firms, launching 7 new core EDA tools and 9 key solutions, with significant breakthroughs in digital, storage, advanced packaging, and 3DIC EDA systems.

• R&D expenses totaled ¥365.31 million, representing 72.84% of revenue, supporting ongoing innovation and product upgrades.

• No interim dividend was declared for the period.

Financial highlights

• Operating income: ¥501.54 million, up 13.01% year-over-year.

• Net profit attributable to shareholders: ¥3.07 million, down 91.90% year-over-year.

• Operating cash flow: ¥243.21 million, a significant increase from a negative ¥5.56 million in the prior year.

• Gross margin for EDA software sales remained at 100%, while technical services margin was 39.94%.

• R&D expenses: ¥365.31 million, 72.84% of revenue.

• Basic EPS: ¥0.0057; diluted EPS: ¥0.0056.

Outlook and guidance

• The company will continue to focus on R&D and product innovation, aiming to expand market share and enhance its full-process EDA tool ecosystem.

• Ongoing investment in talent and technology is expected to drive future growth, with a focus on advanced packaging, 3DIC, and AI-driven EDA solutions.