(Hong Kong, 26 August 2025) – Intron Technology Holdings Limited ("Intron Technology" or the "Group"; HKEX: 1760), a leading automotive electronics solutions provider in China. In the first half of 2025, the Group’s overall results recorded stable performance, with safety, powertrain and cloud server segments performing outstandingly, with revenue increasing by 27%, 15% and 135% respectively during the Period, driving the Group's business to continue to record steady growth amidst the fierce industry price war.
For the six months ended 30 June 2025, the Group’s overall results recorded stable performance, the total revenue increased by approximately 5% year-on-year to RMB2.97 billion, mainly driven by the growth of the safety, powertrain and cloud server segments. During the Period under review, the Group's gross profit was RMB401.0 million, and the gross profit margin was 13.5%. This was mainly attributable to the continued and intensifying price competition among automotive OEMs, which compressed the gross profit margin of the entire industry. The Group continue its effort on cost control, achieving economies of scale with increased production volume and expanded market share, reducing systematic costs through design to mitigate the pressure on the gross profit margin. The Group continued to optimize its R&D resources focusing on direction of technological development, create demand and provide customers with more diversified and customized solutions, thereby consolidating its market leadership and strengthening its technological advantages. The Group maintained its total R&D expenses at 7.4% of the total revenue. The profit attributable to shareholders for the year amounted to RMB49.7 million, compared with RMB97.7 million for the same period last year, and the net profit margin for the first half of 2025 was 1.6%.
Mr. Davy Luk, Chairman, Co-CEO and Executive Director of Intron Technology, said, "In the first half of 2025, despite the overall weakness in the automotive electronics market and intensified involution, the Group achieved robust business growth through its deep-rooted presence in the domestic automotive electronics sector, innovative technologies and excellent services. This demonstrates our exceptional resilience and sustainable growth potential, further highlighting our strong core competitiveness and leading position in the automotive electronics field. The Group anticipates that the implementation of policies such as 'anti-involution' measures in the future will help gradually improve the profit margins of the industry and the Group."
In the first half of 2025, the Group's revenue from new energy vehicle solutions business amounted to RMB1,437.8 million, which was consistent with that of the same period last year, accounting for 48.5% of the total revenue. The core component "Motor Control Unit Power Brick" developed by the Group has achieved industry-leading level in key indicators such as power density, integration and reliability. Currently, the mass production of this product is in the ramp-up stage, and the production capacity is gradually increasing. The Group will continue to develop solutions with higher power density, including cost-effective solutions of silicon carbide and silicon mixture, to meet the growing market demand, thereby promoting the sustainable development of the overall business.
The revenue from powertrain system solutions business increased by 15%, accounting for 6.2% of the Group's total revenue. The overall commercial vehicle market saw slight growth, and the demand for diesel powertrain systems remained stable. In addition, the electrification of commercial vehicles is accelerating significantly, and many leading domestic commercial vehicle enterprises have formulated clear development plans and expect to significantly increase the proportion of new energy vehicles, especially hybrid and pure electric models, in the next three to five years. This will help the Group leverage its technical expertise in the commercial vehicle sector and achieve further business growth. The revenue from body control system business decreased by 26% to RMB314.4 million, accounting for 10.6% of the total revenue. This was mainly due to trade-offs in certain businesses with lower gross profit margin made by the Group amid market involutions.
The revenue from safety system solutions business increased by 27%, accounting for 15.2% of the Group's total revenue. This was attributable to the continuous increase in the installation rate of active suspension systems in vehicle manufacturers since 2024, continuous mass production of new projects for braking and steering applications and increasing unit price along with the system's functionality and complexity. With the popularization of intelligent functions in automobiles, consumers' attention to safety is constantly increasing. The Group will increase its investment in the R&D of vehicle safety systems to exert the synergy with intelligent driving system solutions.
The revenue from automated & connected vehicles business remained stable compared with the same period last year, amounted to RMB230.5 million, accounting for 7.8% of the total revenue. The Group has launched the first generation of system solutions supporting L3 and plans to further optimize them on this basis to enhance cost performance, making them suitable for lower-cost models and meeting the market's demand for automated driving functions. Although OEMs continued to increase their installation rates, the market is highly competitive. Both policy orientation and market demand are gradually shifting from functional requirements to safety requirements, which are the main driving forces for supporting consumer demand. With the continuous improvement of the ecosystem, automated & connected vehicle technology is expected to achieve large-scale commercialization in the next few years and become an important direction of development.
During the Period under review, the revenue from cloud server-related solutions increased by 135% to RMB255.4 million, primarily driven by the increase in the demand for cloud servers arising from the demand for AI services from customers. Many customers have increased their investment in establishing private servers and private clouds, which has actively promoted the growth of market demand to a certain extent. The Group will continue to optimize the allocation of internal resources and further increase its R&D efforts in core technologies of cloud computing.
Research and development is an indispensable cornerstone supporting the long-term development of the Group's business. With the rapid development of the global automobile industry towards electrification, intelligence and connectivity, the technological advantages of Intron Technology have become increasingly prominent and will continue to help the Group further consolidate its leading position in the market, expand its market share and drive its business growth. In the first half of 2025, the Group continued to proactively optimize and enhance its R&D capabilities to maintain its competitive edge and proactively optimize the R&D team and strengthen project management; the R&D expenses for the Period were RMB219.9 million, comparable to the same period last year, accounting for approximately 7.4% of the Group's revenue. As at 30 June 2025, the Group had a total of 950 full-time R&D technicians, representing 70.9% of the Group's entire workforce. During the Period, the Group had a total of 394 patents and 329 software copyrights, with an increase of 36 and 2, respectively, compared with the end of last year; the Group had 203 invention patents under review, 56 utility model patents under review, and 8 design patents under review. In summary, there are a total of 267 patents under review.
In terms of the R&D progress in the automotive field, in February 2025, the Group reached a cooperation agreement with eSOL Co., Ltd., a leading developer of real-time embedded software solutions, to incorporate eSOL's high-security and scalable real-time operating system platform products, efficient development tools and other related products into the Group's automotive electronics and software solutions and related businesses. The Group's Nantong R&D base completed the delivery of the second phase of the renovation project by adding approximately 3,000 square meters of usable area, and the total gross floor area amounted to 16,000 square meters.
In terms of the R&D progress in the robotics field, the Group has already established its presence in the field based on its extensive technologies and industrialization experience in electrification and intelligence; and has accelerated solution implementation and international business expansion through its R&D center established in Hong Kong in 2023. At present, diversified research and development results have been achieved in multimodal sensing, fused location positioning as well as joint module drives and controls, etc.
In the first half of 2025, based on the powerful RDK S100 intelligent computing platform of D-Robotics, the Group successfully developed the GRC1.0 high-performance controller solution. The launch of the GRC1.0 controller not only addresses the core demands of robot controllers in terms of reliability and real-time performance, but also significantly reduces the R&D threshold and supply chain management costs for robot manufacturers through standardized and modular design. Currently, embodied intelligence is still in the initial stage of industrialization. With the rapid development of the industry in the future, it is expected that the proportion of revenue from robot-related solutions in the Group's revenue will maintain a high growth rate.
Mr. Eddie Chan, Co-CEO and Executive Director of Intron Technology, said, "Going forward, the involution in the automotive industry will be alleviated due to the introduction of relevant policies by the MIIT, which is conducive to the gradual improvement of the profit margins of the industry and the Group. The Group will continue to invest in R&D to reinforce its leading position in the industry and explore new business areas. While consolidating the domestic market, the Group will accelerate its international expansion, facilitate the implementation of localized supply chains overseas, and leverage its technological advantages to achieve long-term sustainable growth and deliver satisfactory returns to shareholders. Meanwhile, the Group will continue to improve its ESG governance system, align with leading industry practices, and strengthen the implementation of the sustainable development strategy to create long-term and sustainable value for stakeholders."
- End -
About Intron Technology Holdings Limited (Stock code: 1760)
Intron Technology Holdings Limited is a leading automotive electronics solutions provider in China focuses on providing solutions targeting critical automotive electronic components applied in New Energy, Automated Driving, Connectivity, Body Control, Safety and Powertrain systems. The Group leverages its engineering and R&D expertise, combined with advanced semiconductor devices, to offer industry-leading productized solutions for customers, thereby fostering the sustainable development of Automotive Industry in China. For more information, please visit: www.intron-tech.com.
Media Enquiries:
Strategic Financial Relations Limited
Veron Ng Tel: +852 2864 4831
Iris Au Yeung Tel: +852 2114 4913
Ashley Zhang Tel: +852 2114 4109
Email address: sprg_intron@sprg.com.hk
