2025-10-28 14:01Financial Performance - Total new orders for Q3 2025 amounted to HKD 3,620.7 million (USD 463 million), representing a quarterly decrease of 3.5% but an annual increase of 14.2%[2] - Sales revenue for Q3 2025 was HKD 3,661.2 million (USD 468 million), reflecting a quarterly increase of 7.6% and an annual increase of 9.5%[5] - Adjusted net profit for Q3 2025 was HKD 101.9 million, down 24.4% quarter-on-quarter but up 245.2% year-on-year[5] - The adjusted gross margin for Q3 2025 was 37.7%, a decrease of 203 basis points quarter-on-quarter and 330 basis points year-on-year[2] - Adjusted operating profit for Q3 2025 was HKD 124.4 million, a decrease of 26.6% quarter-over-quarter and 30.3% year-over-year[16] - The company reported a net loss of HKD 268,599 for Q3 2025, compared to a profit of HKD 134,338 in Q2 2025[29] - The company reported a total comprehensive loss of HKD 363,322 for Q3 2025, compared to a comprehensive income of HKD 863,463 in Q2 2025[29] - For the three months ended September 30, 2025, the company reported a loss attributable to shareholders of HKD (269,877) thousand, compared to a profit of HKD 131,214 thousand for the previous quarter[34] - The basic loss per share for the three months ended September 30, 2025, was HKD (0.65), while the adjusted earnings per share was HKD 0.24[37] - The gross profit for the three months ended September 30, 2025, was HKD 1,305,750 thousand, with a gross margin of 35.7%, which adjusted to HKD 1,379,634 thousand and a gross margin of 37.7%[37] - The operating profit for the same period was HKD 50,480 thousand, which adjusted to HKD 124,364 thousand[37] - The semiconductor solutions segment reported a gross profit of HKD 701,959 thousand with a gross margin of 37.3%, which adjusted to HKD 775,843 thousand and a gross margin of 41.3%[41] - The company recognized a one-time inventory write-off of HKD 73.9 million in Q3 2025 due to a product simplification plan[33] - The company recognized a one-time inventory write-off related to the voluntary liquidation of a subsidiary in the semiconductor solutions segment, impacting the financial results significantly[35] Sales and Orders - Q4 2025 sales revenue is forecasted to be between USD 470 million and USD 530 million, indicating a quarterly increase of 6.8% and an annual increase of 14.3% at the median[3] - In Q3 2025, the total new orders amounted to HKD 3,620.7 million (USD 463 million), representing a quarterly decrease of 3.5% but an annual increase of 14.2%[16] - Sales revenue for Q3 2025 reached HKD 3,661.2 million (USD 468 million), reflecting a quarterly growth of 7.6% and an annual growth of 9.5%[16] - The semiconductor solutions segment recorded sales revenue of HKD 1,879.8 million (USD 240 million), a quarterly decline of 6.5% but an annual increase of 5.0%[20] - The surface mount technology solutions segment achieved sales revenue of HKD 1,781.4 million (USD 228 million), with a quarterly increase of 28.0% and an annual increase of 14.6%[25] - The total unfulfilled orders at the end of the quarter were approximately USD 868 million[18] - Semiconductor solutions segment sales for Q3 2025 reached HKD 1,879,838, while surface mount technology solutions segment sales were HKD 1,781,362, contributing to total sales revenue of HKD 3,661,200[32] Market Trends and Demand - The advanced packaging business continues to benefit from strong demand driven by artificial intelligence, particularly in high bandwidth memory and advanced logic applications[7] - Demand in the mainstream business is primarily driven by data centers and electric vehicles in the Chinese market, with increased utilization rates in outsourced semiconductor assembly and testing[14] - The company anticipates stable demand from China, although the recovery outlook for the automotive and industrial end markets remains uncertain[26] - The company has not faced significant impacts from tariff policies but acknowledges existing uncertainties and will continue to monitor the situation closely[26] - The total potential market for TCB is projected to exceed $1 billion by 2027, driven by investments in the AI ecosystem and demand for advanced packaging[26] Operational Efficiency and Cost Management - The company expects to save approximately HKD 128 million (RMB 115 million) in future years due to the voluntary liquidation of AEC, enhancing operational cost efficiency[15] - R&D expenses for Q3 2025 were HKD 535,420, slightly increasing from HKD 525,888 in Q2 2025[27] Corporate Governance - The board of directors includes independent non-executive directors and executive directors, ensuring a diverse governance structure[44] Innovation and Collaboration - The company is actively collaborating with major logic and memory firms on various projects, indicating ongoing innovation and market expansion efforts[11] - The surface mount technology solutions segment has seen significant growth in new system-in-package (SiP) orders, supporting the development of artificial intelligence[13] - The company has secured repeat orders for its TCB solutions in both memory and logic sectors, showcasing its competitive edge in the advanced packaging market[8]