Core Viewpoint - FIH Mobile Limited (富智康集团) reported a revenue of approximately $1.017 billion for Q1 2025, reflecting a year-on-year growth of 1.91%, and achieved a profit of $1.072 million, marking a turnaround from a loss [1] Financial Performance Highlights - The company anticipates a slight year-on-year decline in sales for the full year ending December 31, 2025, due to strategic customer selection and portfolio optimization [1] - Adjustments in customer and product mix are expected to improve gross margin from 1.61% in the previous year to 3.17% in the current period, driven by a shift from traditional mobile solutions to higher-margin sectors like smart manufacturing and automotive electronics [1] - Operating expenses were reduced to $34.5 million from $49.7 million in the same period last year, primarily due to workforce optimization and strict cost control measures [1] Positive Factors Impacting Financial Performance - Increased sales in the automotive electronics business and production line equipment/robotics [1] - Continuous efforts to enhance efficiency and maintain financial flexibility through cost-saving measures [1] Negative Factors Impacting Financial Performance - Underutilized and idle assets continue to negatively affect financial performance [2] - A decrease in foreign exchange income, which fell to $2.9 million from $7.9 million in Q1 2025, primarily due to the depreciation of the US dollar against almost all currencies [2] - A reduction of $4 million in government subsidies from mainland China and India during the current period [2] - Potential negative impacts on global trade and the mobile market due to increased tariffs imposed by the United States [2]