Winbond Electronics (2344) H1 2025 earnings summary

Executive summary

• Net sales in 2Q25 were NT$21,018M, up 5.1% QoQ but down 2.2% YoY; net loss widened to NT$1,631M from NT$987M in 1Q25 and profit of NT$1,713M in 2Q24.

• Consolidated financial statements for the six months ended June 30, 2025, were reviewed by independent auditors, who found no material misstatements.

• The group reported a net loss for both the three- and six-month periods ended June 30, 2025, compared to net income in the prior year.

• Total assets as of June 30, 2025, were NT$179.6 billion, with equity at NT$94.3 billion and liabilities at NT$85.3 billion.

• Memory business saw 14.6% QoQ revenue growth, but gross margin dropped 18 ppts YoY; logic business revenue declined 6.6% QoQ and 5% YoY.

Financial highlights

• Gross margin fell to 22.7% in 2Q25 from 25.6% in 1Q25 and 33.1% in 2Q24; gross margin for 1H25 was 24%.

• Operating loss increased to NT$1,295M in 2Q25 from NT$965M in 1Q25; operating margin negative due to higher expenses and lower gross profit.

• EBITDA for 2Q25 was NT$1,741M, down from NT$2,435M in 1Q25 and NT$5,843M in 2Q24.

• Free cash flow turned positive at NT$1,025M in 2Q25, reversing a negative NT$1,189M in 1Q25.

• Basic and diluted losses per share for 1H25 were NT$(0.53), compared to earnings per share of NT$0.30 last year.

Outlook and guidance

• NOR Flash supply-demand expected to balance in 2H25 with mild price recovery; SLC NAND supply to tighten, supporting price increases.

• DDR3/DDR4 prices forecasted to rise from 3Q25, with uptrend likely into next year.

• 16nm CMS process on track for Conditional Production Release; 24nm NAND Flash early shipments started, significant impact expected in 2026.

• The group continues to assess the impact of new and upcoming IFRS standards, including IFRS 18 and Pillar Two tax legislation.

• Management is monitoring the potential impact of global economic conditions and regulatory changes on future performance.