Yuanshan's First-Half Profit Drops Over 10% Year-on-Year Due to New Factory Depreciation, EPS at NT$0.97

Yuanshan (6275-TW) has announced its latest financial report, revealing that its consolidated after-tax net profit for the first half of this year reached NT$78 million, representing a year-on-year decline of over 10%. Earnings per share (EPS) stood at NT$0.97. Yuanshan stated that the profit performance was affected by the depreciation charges related to its newly constructed factory buildings and equipment, compounded by rising raw material prices during the first half.

In the second quarter, revenue amounted to NT$1.052 billion, down 6.82% sequentially and 9.85% year-on-year. Gross margin was 18.16%, up 0.53 percentage points sequentially and 1.45 percentage points year-on-year. Operating margin was 3.42%, down 0.3 percentage points sequentially and 0.35 percentage points year-on-year. After-tax net profit was NT$40 million, up 5.26% sequentially but down 29.82% year-on-year, with EPS at NT$0.49.

Cumulative revenue for the first half of the year reached NT$2.181 billion, up 1.25% year-on-year. Gross margin was 17.88%, up 0.46 percentage points year-on-year. Operating margin was 3.58%, down 0.05 percentage points year-on-year. After-tax net profit was NT$78 million, down 18.85% year-on-year, with EPS at NT$0.97.

In terms of product mix, automotive electronics accounted for approximately 47% of total revenue in the first half, followed by high-end computing systems at 26%, lifestyle technology systems at 18%, and industrial equipment and others at 9%.

Regarding automotive electronics, Yuanshan noted that it maintains close and deep collaborations with leading automakers and Tier 1 suppliers, with current order visibility extending to 2028. The company is targeting upgrade demands in luxury vehicle models and capturing market share in related segments, which is expected to continue driving growth in its automotive electronics business.

In the field of high-end computing, Yuanshan is actively pursuing business opportunities in the liquid cooling market. It has completed the development of a full series of high-performance computing fans, as well as Side Car products rated at 120kW, 159kW, and 300kW. Among these, the 120kW liquid cooling system is entering mass production verification testing, and the company is actively engaging in deep discussions and sample certification processes with major ODM manufacturers and potential Tier 1 customers.

Additionally, Yuanshan’s high-performance computing liquid cooling performance laboratory at its Kaohsiung Renwu plant is in the final preparation stage and is scheduled to be completed and operational in September. The company explained that the laboratory features a 380kW data center environment heat source and measurement capabilities of up to 30,000 CFM airflow, enabling simulations for AI liquid and air cooling systems. In the future, potential customers will be invited to jointly participate in product verification and development activities.