AUO and Innolux announce their Q2 2025 financial results

On July 31, AU Optronics and Innolux released their financial reports for the second quarter of 2025. Details are as follows:

AU Optronics
In the second quarter of 2025, the company's consolidated revenue was NT$69.24 billion (approximately RMB16.638 billion), a decrease of 4.0% quarter-on-quarter and a decrease of 6.8% year-on-year; net profit attributable to the parent company was NT$1.95 billion (approximately RMB469 million).

Looking back at the second quarter, Display Technology and Mobility Solutions saw a decrease in revenue compared to the previous quarter due to a higher base in the first quarter, which was better than the traditional off-season, coupled with the adverse effect of the appreciation of the New Taiwan Dollar against the US Dollar.

Vertical Solutions' revenue continued to grow, driven by a recovery in demand for industrial and commercial panels and increased volume of field projects, despite the impact of exchange rate fluctuations. Overall, the company's revenue decreased by 4.0% quarter-on-quarter and 6.8% year-on-year.

In terms of profitability, despite the adverse effects of exchange rates, the company's gross profit margin and operating profit margin in the second quarter were better than in the first quarter, with net profit attributable to the parent company at NT$1.95 billion.

The inventory days in the second quarter were 53 days, and the net debt ratio was 39.4%, which was higher than the previous quarter. However, if we exclude the fact that ADLINK Technology Co., Ltd.'s assets and liabilities were incorporated into AU Optronics starting from the second quarter, as well as the impact of exchange rate fluctuations, the inventory days and net debt ratio increased slightly compared to the previous quarter, but remained at a relatively healthy level.

In response to the company's business structure of display technology, smart mobility, and vertical fields, the Board of Directors today approved the creation of a new position of Group CEO, which will be concurrently held by Chairman Peng Shuanglang, to coordinate the Group's global strategy and development direction and lead the Group's operational support units.

In addition, to accelerate the integration, business development, and global expansion among the three main operating pillars, and to enhance organizational efficiency and synergy, the Board of Directors has approved the creation of the position of Group Chief Operating Officer, to be concurrently held by Dr. Ko Fu-Jen, the Company's General Manager, in order to respond to external changes, strengthen competitiveness, and accelerate strategic transformation. The new personnel appointment will take effect on August 1, 2025.

Looking ahead to the third quarter, AU Optronics anticipates continued adverse effects from exchange rates. Furthermore, due to uncertainties surrounding the macroeconomy and tariffs, brand customers are adopting a more conservative approach, resulting in less pronounced demand for peak season inventory buildup. In response to market uncertainties, the company will continue to prudently assess capital expenditures and strictly control operating expenses, maintaining sufficient cash reserves. Simultaneously, it will strive to adjust its product mix and reduce costs to adapt to market changes and mitigate operational risks.

Innolux Corporation
In the second quarter of 2025, Innolux Corporation's consolidated revenue was NT$56.2 billion (approximately RMB13.499 billion), net operating loss was NT$780 million (approximately RMB187 million), and net loss after tax was NT$680 million (approximately RMB163 million). Depreciation and amortization were NT$7.4 billion (approximately RMB1.777 billion), and capital expenditures were NT$3.3 billion (approximately RMB793 million).

Revenue for the quarter was broken down by product application: televisions accounted for 30%, automotive products for 26%, laptops for 18%, mobile phones and commercial products for 21%, and desktop monitors for 5%. The revenue share of the monitor group and the non-monitor group was 72% and 28%, respectively.

Looking back at the second quarter of 2025, Innolux stated that with some demand for consumer displays already released ahead of schedule, the momentum of panel shipments has slowed down. The company continued to optimize its product mix and pricing strategy to maintain overall stable performance. Revenue from non-display products and commercial displays increased by 9% and 2% respectively compared to the previous quarter. Overall revenue for the second quarter increased slightly by 0.53% compared to the previous quarter, and the gross margin for this quarter also increased slightly by about one percentage point compared to the previous quarter.

Looking ahead to the third quarter of 2025, Innolux anticipates a more conservative outlook for panel demand in the second half of the year, influenced by uncertainties surrounding tariffs and some customers' early ordering in the first half. Panel manufacturers are generally adopting a just-in-time production strategy, which helps maintain supply-demand balance and price order.

Faced with market uncertainties, Innolux Corporation continues to monitor and dynamically adjust its product portfolio and improve production efficiency to enhance its overall competitiveness and maintain stable operations. At the same time, Innolux continues to promote its dual-track transformation strategy and deepen its high-margin business layout. (Source: AU Optronics, Innolux Corporation)