Gu Yue Turns Profitable in Q2 with EPS of NT$2.55; Enters Second-Half Shipping Peak Season

Outdoor performance apparel and down jacket contract manufacturer Gu Yue (4438-TW) announced its second-quarter financial report today (6), revealing a post-tax net profit of NT$287 million; earnings per share (EPS) stood at NT$2.55, reversing losses from both the prior quarter and the same period last year. For the first half of the year, post-tax net profit totaled NT$282 million, with EPS of NT$2.51—also turning profitable compared to the same period last year.

Wu Chao-bi, Chairman of Gu Yue, stated that as the second half enters the traditional peak season for production and shipments, the company will continue to manage delivery schedules while deepening long-term partnerships with international brand clients through advanced functional apparel manufacturing capabilities, cross-regional production capacity allocation, and consistent product quality.

Despite rapidly changing external conditions, Gu Yue continues to enhance operational efficiency, strengthen cost controls, and optimize capacity deployment to improve profitability and long-term operational resilience. The company aims to restore full-year EPS to 2023 levels by 2026 and targets maintaining a cash dividend payout ratio of approximately 70%.

Gu Yue’s Q2 revenue reached NT$5.163 billion, up 7.5% year-on-year; gross margin was 14.4%, down 2.2 percentage points year-on-year; operating margin was 5.3%, down 2.4 percentage points year-on-year. First-half revenue totaled NT$7.94 billion, up 5% year-on-year; gross margin was 13.5% (down 0.9 percentage points), and operating margin was 11.2% (down 0.2 percentage points).

Gu Yue noted that first-half profitability benefited from gains on disposal of real estate, recognition of insurance proceeds from the fire at its Vietnam factory, and more stable currency fluctuations compared to the same period last year. Non-operating items shifted from a net loss of NT$400 million last year to a net gain of NT$267 million this year, driving the overall return to profitability.