Kuo San Q2 Net Profit Up 10.8% H1 EPS at NT$1.47 Invests in Fuzhou Sanbao Materials to Secure Raw Materials

Kuo San (2504-TW), a leading concrete manufacturer, announced its second-quarter financial report on November 11, reporting after-tax net profit of NT$9.11 billion, a 10.8% increase from the previous quarter, with earnings per share at NT$0.77. For the first half of the year, after-tax net profit was NT$17.33 billion, with earnings per share at NT$1.47.

Kuo San's board of directors also approved the establishment of a new company in Hong Kong to indirectly invest RMB 1.036 billion (approximately NT$5 billion) in Fuzhou Sanbao Materials to secure sand and gravel sources and stabilize quality. Fuzhou Sanbao Materials has a capital of RMB 5.6 billion, with Kuo San contributing 18.5%.

Additionally, to improve operating liquidity, Kuo San's board of directors authorized the disposal of a 20% stake in Lianyuan Haishui Cement Co., Ltd., with the total transaction amount not lower than the book value. Subsequent related matters will be handled in accordance with the law after the actual transaction amount is determined.

Kuo San stated that despite the subdued real estate market policy in the first half of the year, its profit performance remained quite stable and strong. Based on the robust global AI demand, many tech giants are continuing to expand their factory layouts across Taiwan. These tech industry chains, which are aligned with global ESG standards, are the first to adopt low-carbon concrete for building their top-tier offices and factories.

Additionally, the Executive Yuan's committee recently approved the preliminary work for the 2027 government's major public construction budget, allocating over NT$37.89 billion, marking a new high in nearly a decade. This has generated enormous construction business opportunities, and Kuo San is actively participating in development projects related to AI data centers, high-tech factories, and public construction.

In response to the large-scale expansion of Taiwan's AI technology, as well as the trends of low-carbon sustainability and building structure upgrades, Kuo San has recently developed and launched high-elasticity modular concrete and other niche products, as well as a lineup of 67 low-carbon high-end concrete products certified domestically and internationally. These high-profit products are gradually gaining traction this year, supporting profit performance.

Kuo San stated that it will leverage three major competitive advantages—asset activation, low-carbon innovation, and material superiority—to gradually move away from the traditional building materials industry's high dependence on price competition. Instead, it will shift towards a business model driven by product value and operational efficiency, demonstrating that traditional building materials industries can also create new growth opportunities in sustainable transformation.