Core Viewpoint - The company reported better-than-expected gross margins for Q2 2025, driven by increased wafer shipments and a recovery in downstream demand [1][2]. Financial Performance - Q2 2025 revenue reached $566 million, a year-over-year increase of 18.3% and a quarter-over-quarter increase of 4.6%, aligning with the company's guidance of $550-570 million [1]. - The gross margin for Q2 2025 was 10.9%, exceeding the company's guidance of 7-9% and market expectations of 8.3%, with a year-over-year increase of 0.4 percentage points and a quarter-over-quarter increase of 1.7 percentage points [2]. - Net profit attributable to the parent company was $7.95 million, falling short of the market expectation of $12.77 million, primarily due to rising R&D expenses and depreciation [2]. Market Dynamics - Downstream demand showed moderate recovery, with revenue from the consumer electronics sector increasing by 19.8% year-over-year, accounting for 63.1% of total revenue, and industrial and automotive revenue increasing by 16.7%, accounting for 22.8% [2]. - The company has initiated a price increase for certain products starting in Q2 2025, primarily focused on ICs and the 12-inch platform, with expected effects to materialize in Q3 and Q4 2025 [2]. Capacity and Production - The company maintained a high capacity utilization rate of 108.3% in Q2 2025, a year-over-year increase of 10.4 percentage points and a quarter-over-quarter increase of 5.6 percentage points, driven by recovering downstream demand [3]. - Q2 2025 wafer shipments totaled 1.31 million 8-inch equivalent wafers, representing a year-over-year increase of 18% and a quarter-over-quarter increase of 6% [3]. - The company plans to continue investing in Fab 9, with capital expenditures of $408 million in Q2 2025, of which $376 million was allocated to Fab 9 [3]. Future Outlook - The company provided a positive revenue and gross margin guidance for Q3 2025, expecting revenue between $620-640 million, which corresponds to a year-over-year increase of 19.7% and a quarter-over-quarter increase of 11.3% [3]. - The gross margin guidance for Q3 2025 is set at 10-12%, with a midpoint indicating a year-over-year decrease of 1.2 percentage points but a quarter-over-quarter increase of 0.1 percentage points [3]. - The company anticipates continued revenue growth in the second half of 2025, supported by the release of 12-inch capacity and strong demand for BCD products [3].