Montage Technology Co. (688008) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 reached RMB 2.63 billion, up 58.17% year-over-year, driven by strong AI industry demand and rapid growth in DDR5 memory interface and supporting chips.

• Net profit attributable to shareholders was RMB 1.16 billion, up 95.41% year-over-year; adjusted net profit (excluding share-based payments) was RMB 1.33 billion, up 116.74%.

• Interconnect chip product line sales reached RMB 2.46 billion, up 61.00% year-over-year, with gross margin at 64.34%, up 1.91 percentage points.

• Cash flow from operating activities was RMB 1.06 billion, up 29.19% year-over-year.

• Q2 2025 revenue was RMB 1.41 billion, up 52.12% year-over-year and 15.47% sequentially; net profit was RMB 634 million, up 71.40% year-over-year and 20.64% sequentially.

Financial highlights

• Basic and diluted EPS for H1 2025 were RMB 1.02, up 96.15% year-over-year.

• Gross margin for H1 2025 was 60.44%, up 2.66 percentage points year-over-year.

• R&D expenses were RMB 357 million, representing 13.56% of revenue, down 8.47 percentage points year-over-year.

• Cash and cash equivalents at period end were RMB 8.23 billion.

• Total assets reached RMB 12.88 billion, up 5.40% from year-end 2024.

Outlook and guidance

• The company expects continued strong demand for AI and cloud infrastructure, with DDR5 and high-performance interconnect chips driving future growth.

• Ongoing product innovation and international expansion, including a planned H-share listing in Hong Kong, are expected to enhance competitiveness.