Merry Electronics (2439) Q2 2025 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2025 was NT$19,184,746 thousand, up 2.9% year-over-year from NT$18,647,650 thousand.

• Net profit for the six months was NT$356,119 thousand, down 58% from NT$856,738 thousand year-over-year.

• Operating profit margin for the six months was 3%, compared to 7% in the prior year period.

• The review report was qualified due to certain subsidiaries and equity-method investments not being reviewed by independent auditors, representing 23% of total assets and 7% of revenue.

Financial highlights

• Gross margin for the six months was 12%, unchanged year-over-year.

• Operating expenses increased to NT$1,955,431 thousand from NT$1,814,179 thousand year-over-year.

• Foreign exchange losses of NT$359,384 thousand significantly impacted non-operating results.

• Basic EPS for the six months was NT$1.43, down from NT$3.94 year-over-year.

• Cash and cash equivalents rose to NT$10,001,604 thousand from NT$8,838,146 thousand at June 30, 2024.

Outlook and guidance

• The company is pursuing a strategic acquisition of MWT Holdings for up to JPY 10,278 million (NT$2,260 million) to enhance market penetration and vertical integration; transaction is ongoing as of July 24, 2025.

• New IFRS standards effective in 2025 and 2026 are not expected to have a significant impact.