TAIPEI (Taiwan News) — E Ink’s Q2 revenue rose 39% year-on-year to NT$10.62 billion (US$354 million) with its H5 line expected to start mass production in Q3, the company said Wednesday.

The world’s largest e-paper display supplier said its Q2 gross margin exceeded 60%, driven by an optimized product mix and improved factory efficiency rather than price adjustments, per CNA. E Ink Chair Li Cheng-hao (李政昊) noted that demand outpaced supply at full capacity, reducing pressure to cut prices.

For the first half of this year, E Ink posted a consolidated revenue of NT$18.68 billion, up 41% from the same period last year, per UDN. Operating profit climbed 163% to NT$6.34 billion, while net profit attributable to the parent company rose 55% to NT$5.16 billion, with EPS at NT$4.5.

Li explained that Q2 non-operating income was affected by exchange rate swings but smooth transitions between old and new products drove record revenue, operating profit, and net profit. He added that automation and AI investments continue to improve production efficiency.

The company’s new product line, H5, was planned for Q1 but has been delayed to Q3. Its H6 line is slated for construction next year with production in early 2027, alongside a new US facility for R&D, small-scale trials, and material supply capacity.

Color e-paper products and Samsung’s digital signage promotions are expected to expand market adoption, per CNA. While consumer e-paper readers are price-sensitive, broader color product deployment may stimulate overall growth.

However, economic conditions have pressured the Chinese education sector and e-paper reader market, with the segment declining more than expected. E Ink sees this as one of the few shrinking consumer markets amid otherwise strong performance.