Montage Technology Co., Ltd. Announces Record-Breaking 2025 Preliminary Financial Results

Montage Technology Co., Ltd. (Stock code: 6809) has released its unaudited preliminary financial results for the fiscal year 2025, delivering a set of record-breaking numbers that are likely to have a significant impact on investor sentiment and potentially the company’s share price.

Key Financial Highlights for 2025

• Revenue: RMB 5,456 million, up 49.94% year-on-year
• Operating Profit: RMB 2,322 million, up 64.33% year-on-year
• Profit Before Tax: RMB 2,321 million, up 64.27% year-on-year
• Net Profit Attributable to Owners: RMB 2,236 million, up 58.35% year-on-year
• Net Profit after Deduction of Non-Recurring Items: RMB 2,022 million, up 61.95% year-on-year
• Basic Earnings Per Share (EPS): RMB 1.97, up 57.60% year-on-year
• Weighted Average Return on Net Assets: 18.25%, up 4.84 percentage points
• Gross Profit Margin: 62.23%, an increase of 4.10 percentage points

Balance Sheet Highlights

• Total Assets: RMB 13,748 million, up 12.52% from the start of the year
• Equity Attributable to Owners: RMB 12,924 million, up 13.33%
• Net Assets per Share: RMB 11.27, up 13.15%
• Share Capital: 1,146 million shares

Operational and Segment Details

• Interconnect Chips:
  • Sales Revenue: RMB 5,139 million, up 53.43% year-on-year
  • Gross Profit Margin: 65.57%, up 2.91 percentage points
  • The surge in sales was primarily driven by significant industry demand and the AI industry trend.
• Jintide® Server Platform:
  • Sales Revenue: RMB 308 million, up 10.25% year-on-year
• R&D Investment: RMB 915 million, up 20% year-on-year, reflecting the company’s commitment to innovation and expansion of new product categories.
• Share-Based Payment Expenses: RMB 431 million, recognized as recurring profit or loss. Adjusting for these expenses, net profit attributable to owners would have been RMB 2,647 million, up 80.98%. Net profit after deductions and share-based payments would have been RMB 2,433 million, up 87.29%.

Fourth Quarter 2025 Performance

• Revenue: RMB 1,399 million, up 30.95% year-on-year
• Interconnect Chip Sales: RMB 1,306 million, up 34.40% year-on-year
• Gross Profit Margin (Interconnect Chips): 67.76%, up 2.07 percentage points from Q3
• Net Profit Attributable to Owners: RMB 603 million, up 39.10% year-on-year
• Net Profit after Deduction of Non-Recurring Items: RMB 554 million, up 48.00% year-on-year

Analysis and Shareholder Considerations

• Record-High Performance: Montage Technology achieved record highs in revenue, interconnect chip sales, and net profit, driven by robust AI industry demand and strong shipment growth.
• Margin Improvement: The company’s gross profit margin expanded significantly, reflecting improved product mix and higher-margin products.
• R&D Commitment: Continued strong investment in research and development underpins future innovation and product pipeline expansion.
• Share-Based Payment Impact: Large share-based payment expenses have a notable impact on reported profits; excluding these, the underlying profitability is even stronger.
• Potential Share Price Sensitivity: The magnitude of growth and margin expansion, as well as the company’s leadership in AI-related chip technology, are highly likely to be considered price-sensitive information by the market.
• Risk Warning: These figures are preliminary and unaudited. Final audited results will be disclosed in the 2025 annual report. Investors should consider potential revisions when making investment decisions.

Board and Management

The announcement was authorized by Dr. Howard C. Yang, Chairman, and lists a board composed of experienced executive, non-executive, and independent non-executive directors, underscoring robust corporate governance.

Disclaimer: This article is based on preliminary, unaudited financial data disclosed by Montage Technology Co., Ltd. The final audited financial results may differ. Investors are advised to review the official audited annual report and exercise caution before making investment decisions. The information herein does not constitute investment advice.

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