Great Well Breaks Ground on Neihu New Plant, Capacity Set to Increase by Up to 60%, Optimistic Outlook for Second Half

Networking manufacturer Great Well (7689-TW) held a groundbreaking ceremony today (10th) at its Jiuzong site in Neihu, Taipei City, presided over by Chairman Chang Tsai-Fa, officially marking the start of construction for its production capacity expansion plan. The land for this project was acquired in 114, costing approximately NT$1.2 billion; the construction and equipment investment for the new facility is estimated at around NT$1.1 billion, bringing the total project investment to approximately NT$2.3 billion. Upon completion, production capacity is expected to increase by 55% to 60%.

Great Well stated that the new plant, located near its existing Neihu headquarters, will enhance integration between R&D and manufacturing. Positioned as a 'smart R&D and production integration base,' the facility will serve as a critical foundation for the company’s next phase of growth.

Regarding its Q2 financial report, the company achieved consolidated revenue of NT$2.956 billion in the first half, a year-on-year increase of 40.92%; net profit after tax reached NT$345 million, up 43.06% year-on-year, with earnings per share (EPS) at NT$6.51. July’s consolidated revenue continued the strong momentum, reaching NT$520 million, a 20.44% year-on-year increase. The groundbreaking ceremony coincided with the announcement of the first-half financials and July’s revenue, demonstrating the company’s ongoing operational growth alongside proactive mid-to-long-term capacity planning.

Great Well noted that first-half performance benefited from stable global demand in smart security, smart home, and remote healthcare markets, coupled with deepening long-term collaborations with international clients, driving simultaneous growth in revenue and profitability. The company continues to optimize its product mix and improve operational efficiency, maintaining a cautiously optimistic outlook for revenue growth in the second half.

Regarding recent concerns over a U.S. product liability lawsuit, Great Well stated it was notified of the case in 113 and has disclosed it in its financial reports as required. Expert evaluations concluded that the incident was primarily caused by external factors, not by product design flaws or manufacturing defects. Great Well reached a settlement with all parties involved, based on overall business considerations, weighing litigation costs and benefits, and preserving long-term client relationships.

Great Well mentioned that the full settlement amount has been recognized in the financial statements as of June 30, 115. The first-half EPS of NT$6.51 already includes this settlement and related expenses. With a comprehensive settlement reached, all related litigation will be concluded per the agreement, with no significant impact on the company’s financial or business operations. The settlement does not involve product recalls or sales restrictions, and Great Well’s business relationships with relevant clients continue normally.

Great Well has long been dedicated to wireless security, smart home, and remote healthcare fields, continuously investing in R&D for wireless communication, smart sensing, and system integration technologies. Its products are sold across Europe, the Americas, and the Asia-Pacific region, and it has established long-term partnerships with major international security service providers.

Great Well stated it will continue advancing the new plant construction according to plan, deepen cooperation with existing clients, and actively invest in new product development to enhance long-term competitiveness and production support capabilities.