Memory manufacturer Huafang Electric has implemented a legal meeting and announced the performance of its second quarter of 2025. The consolidated operation revenue was RMB 21.018 billion, a decrease of 2.2% compared with the same period in 2024. Th...
Memory manufacturer Huafang Electric has implemented a legal meeting and announced the performance of its second quarter of 2025. The consolidated operation revenue was RMB 21.018 billion, a decrease of 2.2% compared with the same period in 2024. The gross profit margin of business was 22.7%. After taxes from the parent company, the net loss was RMB 1.312 billion, and the EPS was RMB -0.29.
HuaFang Electronics said that the total revenue of logical products in the second quarter of 2025 was 37%, and the flash memory product line accounted for 34%, stably maintaining its position as the world's number one supplier. In addition, custom-made memory product lines accounted for 27% of the second quarter of 2025, with revenue from 20 nanometers continuing to increase, while other product lines accounted for 2% of the second quarter of 2025.
From product classification, the proportion of memory product revenue in the second quarter of 2025 is different, including consumer electronics (Consumer), automobile and industrial related (Car & Industrial) for 27%, communication electronics (Communication) for 25%, and computer related (Computer) for 20%. In terms of the application market, the four major areas have the most powerful performance in vehicle and industrial control applications, with an increase of 23% compared with the previous quarter, an increase of 18% for consumer electronics, and a 10% and an 8% increase in computer applications and network communications respectively.
The cumulative revenue of Huafang Electric in the first half of 2025 was RMB 41.01 billion, the gross profit of RMB 9.884 billion, and the loss of RMB 2.26 billion, and the net loss of RMB 2.617 billion in this period, which belongs to the parent company's main business purchase of RMB 2.403 billion, with EPS of RMB -0.53, which is down from EPS of RMB 0.30 in 2024. Capital expenditure in the first half of 2025 was NT$2.5 billion, while capital expenditure in 2025 was planned to be approximately NT$4.8 billion, of which equipment capital expenditure accounted for about 70%.
Outlook for the second half of 2025, Huafen Electric expects that the supply and demand of NOR Flash will be balanced in the second half of 2025, and the price will rise gently. The supply of SLC NAND will continue to be tight, which will drive the price to continue to rise, and the price of Legacy DRAM has also risen sharply due to recent supply pressure. As for the price of DDR3 and DDR4, the price of DDR3 is expected to gradually grow and return to temperatures starting from the third quarter of 2025, and the price is expected to continue until 2026.
WaFang Electric strongly stated that although there are challenges to uncertain factors around taxes and exchange rates around the world, the overall memory industry is in an upward cycle, especially when the AI and device AI markets are expected to continue to grow, it will drive more business applications for implementation and development, which will also enable HuaFang Electric CUBE to start increasing volume in 2027 to bring benefits to the acquisition.
