Dynamax-KY Sees Pan-Gaming Orders Squeezed by AI Effect, Posts H1 Net Profit of NT$30 Million, Down Over 70% Year-on-Year

Dynamax-KY (6591-TW) announced its latest financial results today (19th). For the first half of the year, the company posted a net profit of NT$30 million, a year-on-year decline of over 72%, with earnings per share at NT$0.73. Dynamax-KY stated that the rapid advancement of AI has weakened order momentum from pan-gaming customers, negatively impacting its operational performance in the first half.

In the second quarter, Dynamax-KY recorded revenue of NT$219 million, down 32.62% sequentially and 55.21% year-on-year. Gross margin stood at 22.37%, decreasing 1.93 percentage points from the prior quarter and 15.05 percentage points from the same period last year. Operating margin was -13.7%, with operating losses widening compared to the first quarter and turning negative versus the prior year. The company posted a net loss of NT$7.65 million, shifting to a loss from both the previous quarter and the same period last year, resulting in a loss per share of NT$0.02.

For the cumulative first half of the year, revenue reached NT$544 million, down 41.19% year-on-year. Gross margin was 23.53%, a year-on-year decrease of 12.47 percentage points. Operating margin was -6.25%, turning negative compared to the same period last year. Net profit was NT$30 million, down 72.2% year-on-year, with earnings per share at NT$0.73.

Dynamax-KY attributed the revenue decline in the first half to increased investments in AI data centers, which have squeezed order intake from pan-gaming customers. This has led to lower capacity utilization rates, further pressuring gross margin performance. Additionally, the company’s new factory in Thailand is still in the setup phase, making it difficult to reduce operating expenses such as recruitment, facility decoration, and equipment installation.

However, Dynamax-KY expressed a cautiously optimistic outlook for the third quarter. Regarding its pan-gaming business, the company will closely monitor end-user device upgrade demand and the supply situation of GPUs and key components.

Moreover, Dynamax-KY continues to expand its non-pan-gaming businesses. In the automotive sector, it has secured customer certifications and orders for fan applications in vehicle voice systems and smartphone chargers. The Thailand factory is expected to gradually ramp up production capacity in the third quarter, with the short-term goal of achieving stable production and shipment. Growth in automotive fan shipments is expected in the fourth quarter.

Orders for other applications, such as industrial control systems and fitness equipment, are also growing steadily, contributing to an optimized product mix and improved capacity utilization.