World Advanced announced its second quarter financial report today (29th), with a consolidated acquisition of RMB 11.699 billion (hereinafter referred to as RMB 1.1699 billion), a quarterly decrease of 2.1%, a net profit of approximately RMB 2.043 billion, and a tax-per-share profit of RMB 1.10.
World Advanced General Manager Wei Jin pointed out that although DDIC crystal shipments have decreased this quarter, customer demand for communications, industrial control and vehicle semiconductors is still recovering. Therefore, the second quarter saw a 3% increase in the shipment volume of crystals compared with the previous quarter, the average sales order price of products increased by about 1% in the quarter, and the gross profit margin fell by 2.1 percentage points to 28.0%.
Looking ahead to the third quarter, Wei Jin said that as customers' overall demand for crystals continues to increase, under the assumption of the average exchange rate of NT$28.7 yuan for the new NT$1, it is expected that the third quarter of crystal shipments will increase by about 7 to 9% quarterly; the average sales order price of products will increase by about 1 to 3% quarterly; and the gross profit margin will be between 25 to 27%. In addition, through consultation with customers, the company plans to additionally recognize long-term contract revenue of approximately 1% of business revenue in addition to GRF revenue.
As for production capacity planning, Wei Jin pointed out that the total capacity will increase by about 3.43 million 4,000 8-inch wafers in 2025, while 8,000 new capacity will be added in the third quarter; Singaporean factories expect mass production in 2027, and will have long-term stable mature process capacity; cash capital expenditure will remain around 6-7 billion yuan in 2025, of which 90% will be spent on Singapore factories, and the remaining 10% will be spent on routine maintenance and energy equipment planning expenditure.
Wei Jin said that although the taxes related to the market are inconsistent, the supply chain will inevitably control the inventory level, and customer demand will gradually recover, and the company's order capacity will remain for about three months. The energy utilization rate in the second quarter was about 73%, and the third quarter will maintain a medium to high percentage point, about 80%.
Speaking of the trend of the second half of the year, the world advanced said that from the end of last year to the first half of the year, 2025 was mainly about mild growth, but Trump caused supply chain panic after taking office, and some parts were prepared in advance, and tax responsibilities also affected the psychological impact of global GDP downward revision. However, now we observe that the current market's feelings about tax responsibilities have been reduced. Considering that the tax responsibilities and terms of 232 have not been announced yet, everyone's negative impact has been reduced, and it is expected that the trend will grow gently in the second half of the year.
The world has advanced and emphasized the problem of production capacity. The company's first step is to optimize production capacity, and it will also increase production capacity due to special needs. The company's strategy for Power will continue, and the life cycle of this field is expected to be quite long. The world ahead of the mother will also maintain a dividend of 4.5 yuan, and expect capital expenditures to remain high in 2026, but the specific numbers will still be announced at the first quarter of next year.
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