FocalTech Systems Co., Ltd. (TWSE: 3545) today (08) held its investor conference to report its consolidated financial results for Second quarter 2025.

China mainland is one of the important markets for FocalTech. The consumer market there showed noticeable recovery in Q2, which was somewhat stimulated by government sponsored programs. Both of the touch controller products and the display products had strong sales. Despite the sharp increase in the value of Taiwan dollar, our Q2 revenue reached NT$3.05 billion, which represented QoQ increase of 2% and YoY increase of 2.5%. 

Due to the demand for higher value products continue to be strong, the over-all gross margin for Q2 managed to held on at 25.1%.  With tight control on operations expenditures and the contribution of non-operating income，the net profit was of  NT$77M, or EPS of NT$0.36 for the quarter。Without the appreciation of the Taiwan dollar，the  Q2 net profit should have been higher compared to the previous quarter. 

The sales in Q3 is expected to maintain the growth potential. Primarily, the momentum is from the new release of high-valued smart phones and the continuing government policy of boosting the domestic consumption in China mainland.  Similarly, non-cellphone demand is also anticipated to be growing. Despite of the uncertainty in the exchange rate fluctuation and the influence of tariff, we anticipate a mild growth in revenue for the coming quarter. 

New display products are gaining tractions for tablets and in industrial applications. Small volume production has started ramping up in the 2nd quarter.  The ramping up will continue into Q4. This will help improve the revenue and profit due to improved product mix. 

On the touch controllers, we have seen steady increase in demand from the AMOLED cellphone side. We expect this will continue throughout the 3rd quarter. 

Display products, particular IDC (TDDI) products are continuing to penetrate the automotive applications at a fast speed. Recent success with Chinese famous brands such as XPENG and Leadmotor . IDC supports in-cell LCD panels, which offers much better optical quality and gives drivers or passengers a much better riding environment and experience. 

About FocalTech

FocalTech Group is founded in 2006 and leading in human and machine interface technologies, providing solutions for sensing and display. FocalTech has strong capabilities in α-TFT, LTPS, and OLED display driver design, capacitive 2D/ 3D touch controller/algorithm, ITO sensing pattern and capacitive fingerprint. FocalTech offers TFT LCD / OLED driver IC, touch controller IC, force touch controller IC, integrated driver controller (IDC/TDDI) and capacitive fingerprint IC.

For more information, please visit http://www.focaltech-electronics.com