TSMC(US:TSM)2025-08-14 10:12Financial Position - As of June 30, 2025, total assets reached NT$7,006,349,549, an increase from NT$6,691,938,000 in December 2024, representing a growth of 4.7%[10] - Current assets amounted to NT$3,264,917,475, accounting for 47% of total assets, compared to 46% in December 2024[10] - Total liabilities were NT$2,389,717,699, which is 34% of total assets, slightly up from 35% in December 2024[10] - Equity attributable to shareholders of the parent increased to NT$4,581,073,975, representing 65% of total equity, compared to 64% in December 2024[10] - Cash and cash equivalents rose to NT$2,364,524,340, making up 34% of total assets, up from 32% in December 2024[10] - Long-term liabilities decreased to NT$1,012,403,365, representing 14% of total liabilities, down from 16% in December 2024[10] - Total current liabilities increased to NT$1,377,314,334, which is 20% of total liabilities, compared to 19% in December 2024[10] - Non-controlling interests rose to NT$35,557,875, representing 1% of total equity, compared to 1% in December 2024[10] Revenue and Profitability - Net revenue for Q2 2025 reached NT$933.79 billion, a 38.7% increase from NT$673.51 billion in Q2 2024[12] - Gross profit margin improved to 59% in Q2 2025, compared to 53% in Q2 2024, with gross profit amounting to NT$547.37 billion[12] - Operating expenses totaled NT$84.51 billion in Q2 2025, representing 9% of net revenue, up from 10% in Q2 2024[12] - Income from operations for Q2 2025 was NT$463.42 billion, a 62% increase from NT$286.56 billion in Q2 2024[12] - Net income for Q2 2025 was NT$397.49 billion, a 60.5% increase compared to NT$247.66 billion in Q2 2024[12] - Earnings per share for Q2 2025 were NT$15.36, up from NT$9.56 in Q2 2024[12] - Total comprehensive income attributable to shareholders for Q2 2025 was NT$146.20 billion, a decrease from NT$262.27 billion in Q2 2024[12] Cash Flow and Investments - Cash generated from operations for the first half of 2025 was NT$1,251,521,280, compared to NT$903,133,764 in 2024, indicating a year-over-year increase of about 38.6%[18] - The net cash used in investing activities for the six months ended June 30, 2025, was NT$518,680,733, up from NT$357,414,321 in 2024, reflecting an increase of approximately 45%[19] - The net cash used in financing activities for the same period was NT$204,366,193, compared to NT$161,930,200 in 2024, which is an increase of about 26%[19] - The cash and cash equivalents at the end of the period were NT$2,364,524,340, compared to NT$1,799,127,351 at the end of June 2024, showing a growth of approximately 31.4%[20] Expenses and Losses - Research and development expenses for Q2 2025 were NT$61.28 billion, maintaining 7% of net revenue[12] - The company reported a foreign exchange loss of NT$4.78 billion in Q2 2025, compared to a gain of NT$2.18 billion in Q2 2024[12] - The income tax expense for Q2 2025 was NT$95.54 billion, representing 10% of income before tax, compared to 8% in Q2 2024[12] - The company recognized earthquake losses of approximately NT$5.3 billion in Q1 2025, primarily affecting inventories and machinery[185] Shareholder Returns - Cash dividends to shareholders amounted to NT$246,360,378, representing a substantial return to investors[14] - TSMC's cash dividends per share for the second quarter of 2025 are NT$5.00, with total cash dividends to shareholders amounting to NT$129,662,913,000[102] Financial Assets and Liabilities - The company reported financial assets at fair value through profit or loss totaling $15,597,401 as of June 30, 2025, up from $15,407,542 at the end of 2024, indicating a slight increase of 1.2%[43] - The total financial liabilities at fair value through profit or loss (FVTPL) include forward exchange contracts valued at $220,702 and interest rate futures contracts at $2,384[162] - The total balance of bonds payable decreased to $940,825,442 as of June 30, 2025, from $983,752,385 at the beginning of the year[134] - Financial assets at amortized costs totaled $2,888,647,577 as of June 30, 2025, an increase from $2,721,319,255 at the end of 2024[135] Related Party Transactions - TSMC's receivables from related parties also exceeded NT$100 million or 20% of paid-in capital, indicating substantial intercompany transactions[195] - Total receivables from related parties as of June 30, 2025, amounted to $2,277,792, up from $1,404,473 in 2024, representing a 62.1% increase[178] Market and Segment Performance - Wafer revenue for the three months ended June 30, 2025, reached $795,434,048, up 33% from $596,240,620 in Q2 2024[107] - Revenue from High Performance Computing for the six months ended June 30, 2025, was $1,054,378,499, a 68% increase compared to $626,165,504 in the same period of 2024[107] - The revenue from the United States for the six months ended June 30, 2025, was $1,326,650,754, a significant increase from $812,949,006 in the same period of 2024[106] Accounting and Compliance - The company is evaluating the impacts of new IFRS standards, including IFRS 18, which will supersede IAS 1, effective January 1, 2027[27] - TSMC's pension cost for the interim period is calculated using the actuarially determined pension cost rate from the previous financial year[39] - The company continues to apply the same material accounting judgments and key sources of estimates as in the previous financial year ended December 31, 2024[41]