Revenue Growth

Taiwan’s manufacturing sector is undergoing a significant shift, with AI server revenue now surpassing iPhone revenue for major players. This transition, occurring in just three years, sees companies like Foxconn strategically diversifying beyond consumer electronics. Taiwan dominates AI server manufacturing, accounting for over 90% of global builds. Production value surged in 2024, with companies like Wistron and Quanta experiencing substantial revenue growth. While this transformation benefits Taiwan’s tech industry, challenges remain, including potential market share erosion and the need for more distributed global operations.

Meitu, once known for image editing, is experiencing an AI-driven resurgence, with its stock surging. The company’s first-half 2025 revenue reached RMB 1.8 billion, a 12.3% year-over-year increase, and net profit soared by 30.8% to nearly RMB 400 million, exceeding its entire 2023 earnings. CEO Wu Xinhong attributes the growth to AI-powered subscriptions and views nimble startups as the biggest threat, emphasizing the need to act fast and strategically partner to stay competitive in the rapidly evolving AI imaging market.

Cambricon, a Chinese AI chip company, has received approval from the Shanghai Stock Exchange for a RMB 4 billion private placement. The funds will be used for AI chip and software platform development, particularly for large-scale AI models, and to supplement working capital. Cambricon’s Q1 2025 revenue surged by 4230.22% year-on-year, with net profit also significantly increasing. The company focuses on cloud, edge products, and IP licensing, aiming to build a comprehensive AI ecosystem.

Viomi Technology (VIOT) anticipates H1 2025 revenue exceeding RMB 1.4 billion, a 70%+ year-over-year increase. This growth is fueled by strong sales of household water purification equipment, supported by Chinese government subsidies and increasing consumer demand for cleaner water. CEO Xiaoping Chen cites disciplined execution and rising health consciousness as drivers for long-term growth. However, the results are preliminary and unaudited, and reliance on subsidies presents a potential risk.

Tencent Holdings reported strong Q2 2025 results with a 15% YoY revenue increase to RMB 184.5 billion. Profit attributable to equity holders rose 17%. Value-Added Services led growth, driven by domestic (+17%) and international games (+35%). Marketing services saw a 20% increase. Fintech and Business Services grew by 10%. WeChat/Weixin MAUs reached 1.411 billion (+3%), while QQ mobile MAUs declined. Paying subscribers for value-added services reached 264 million.

Tencent Music Entertainment (TME) reported strong Q2 2025 results, with revenue up 17.9% year-over-year to RMB 8.44 billion and adjusted net profit surging 33.0% to RMB 2.64 billion. While MAUs dipped slightly to 553 million, paying subscribers for online music climbed 6.3% to 124.4 million. Monthly ARPPU for online music services increased 9.3% to RMB 11.7. TME is focused on content and platform development, including collaborations with labels and product innovation to enhance user engagement.

Freedom Holding Corp. (FRHC) reported a 17% year-over-year revenue increase in Q1 FY2026, reaching $533.4 million, driven by strong performance in its banking (+60%) and insurance (+18%) segments. Net income was $30.4 million, or $0.50 per diluted share. The company expanded its customer base and strategically invested in technology and market penetration, notably in Central Asia and Europe. The acquisition of Astel Group Ltd. further solidified its telecoms infrastructure.

Leading Chinese foundries SMIC and Hua Hong Semiconductor reported strong Q2 earnings with double-digit revenue growth. SMIC’s revenue reached $2.209 billion, a 16.2% YoY increase, with a capacity utilization rate of 92.5%. Hua Hong’s revenue was $5.661 billion, up 18.3% YoY, achieving a 108.3% capacity utilization rate. Both companies project continued revenue growth for Q3. No price increases were noted by SMIC in Q2, attributing higher ASP to near full capacity operation.

Consensus Cloud Solutions (CCSI) reported Q2 2025 results with revenue up 0.3% to $87.7 million, driven by 6.9% growth in its Corporate business. Net income was $20.8 million, with a 23.7% margin, while adjusted EBITDA reached $48.1 million (54.8% margin). Adjusted diluted EPS increased 2.1% to $1.46. The company generated $28.3 million in net cash from operating activities and $20.3 million in free cash flow. They also secured a $225 million credit facility and continued debt/stock repurchase programs with $57.9 million cash on hand.

Zepp Health’s Q2 2025 earnings reveal a strong rebound, with revenue surging to US$59.4 million, a 46.2% year-over-year increase, surpassing company forecasts. Losses narrowed significantly, with GAAP net loss at US$7.7 million and adjusted net loss at US$6.16 million. The company projects Q3 2025 revenue between US$72 million and US$76 million, a 70-79% year-over-year increase. Key to this growth is the Amazfit brand, driven by new products like the Balance 2 and Helio Strap, and boosted by athlete endorsements and effective marketing.