Stock Code:3704

$39.40

Shareholder Services

Letter to Shareholders

Zyxel Group Corporation (hereinafter referred to as “Zyxel Group”) enhances its performance and industry competitiveness through a holding company structure. The Group has carried out the reorganization based on the industrial characteristics of its subsidiaries to improve industry focus and competitive profitability.

1. Business results in 2025:

(1) Outcome of performance:

Unit: NT$ thousand

  2025 2024
Operating revenue 25,295,196 25,969,435
Gross profit 6,743,321 6,434,215
Operating income 866,622 441,109
Income (loss) before income taxes 918,608 718,820
Net income 652,489 591,534

 

(2) Analysis on profitability:

 

  2025 2024
Return on total assets % 3.24 2.96
Return on attributable to shareholders of the parent % 5.64 5.28
As a percentage of paid-in capital % Operating Income 20.86 10.72
Income (Loss) before income taxes 22.11 17.47
Net income % 2.58 2.28
Basic earnings per share/NTD 1.56 1.41

 

2. Business Outlook:

Zyxel Group is dedicated to the networking industry, having deeply rooted itself in various areas about the network technology and market. The three subsidiaries, namely Zyxel Communications Corporation (hereinafter referred to as “Zyxel”), MitraStar Technology Corporation (hereinafter referred to as “MitraStar”), and Zyxel Networks Corporation (hereinafter referred to as “ZNet”), are in charge of telecommunication, DMS, and channel business, respectively, and strive in the technologies and markets in the network industry. We provide our customers with real-time sales and service in 150 markets worldwide.

In response to global shifts and intense competition, Zyxel Group launched a core strategic initiative in 2025 centered on "Integrated Production-Sales and Unified Operations." This strategy aims to optimize resource planning and allocation to enhance market competitiveness. Aligned with these strategic goals, Zyxel Group has horizontally integrated subsidiary resources through functional organization, consolidating them into four core executive roles: Chief Executive Officer (CEO), Chief Operating Officer (COO), Chief Technology Officer (CTO), and Chief Product Officer (CPO). The Group’s operational transformation is led by the CEO, whose leadership focuses on streamlining decision-making and fostering organizational synergy to drive overall competitiveness and shareholder value.

For the service provider market, Zyxel has introduced its latest 50G fiber carrier-grade product. Build on a tri-mode optical architecture design, it supports 50G PON, XGS-PON, and GPON on shared fiber, giving service providers a highly flexible migration path. This architecture accelerates network deployment and upgrades, helping service providers roll out large-scale fiber services faster while delivering ultra-high-speed and ultra-low-latency end-to-end connectivity. At CES 2026, Zyxel also launched its Wi-Fi 8 latest innovations, establishing the highly stable, low-latency network foundation essential for service providers in the AI application era.

Additionally, Zyxel has launched the Zyxel One AI-powered Wi-Fi management solution. Through AI analysis and visualized data, it enables service providers to remotely monitor and manage subscribers’ devices while quickly troubleshooting issues. Subscribers can use the Zyxel One App to guide automatic installation and activation processes and to perform interactive smart diagnostics to resolve home networking issues. This effectively enhances service providers' operational efficiency, reduces operational costs, and further increases user adoption rates. Leveraging its exceptional software R&D capabilities, Zyxel has independently developed the modular OPAL software platform based on Linux. By integrating the prpl Foundation's open-source architecture, Zyxel has developed prplOS—compatible with prplWare—enabling rapid deployment of diverse applications and value-added services. The OPAL software increases the efficiency of system integration, significantly shortens product development cycles, and enables swift responses to service providers' deployment demands.

In the SMB market segment, ZNet centers its efforts around the Nebula cloud-based network management platform, focusing on collaborations with Managed Service Providers (MSPs) and authorized resellers. We continuously deliver networking products and solutions tailored to the needs of SMBs, MSPs, and professional users, addressing challenges businesses face in IT staffing, network management and maintenance, and cost control. Nebula currently supports over 100 device models, including wireless access points, Ethernet switches, firewalls, and multiple 5G/LTE mobile routers, catering to diverse networking environments.

ZNet also actively leverages AI-driven technologies to enhance automation and intelligence in cloud network management and cybersecurity, thereby improving network management efficiency and stability. ZNet has introduced software subscription services and related management platforms, while establishing its proprietary e-commerce platform, Zyxel Store, to further elevate its overall competitiveness and long-term business value in the SMB networking market.

Affected by factors such as Sino-US trade barriers and demands from European and American operators for supply chains to be “non-China manufacturing, sourced from third-party locations,” MitraStar has established a new factory in Vietnam, with trial production expected to commence in 2026. The new facility will serve as a crucial hub in the group's global layout, enhancing shipment flexibility to Europe and America. This will further increase the self-manufacturing rate, reduce outsourcing proportions, and significantly boost the company's bargaining power and supply chain resilience.

In response to climate change challenges and global manufacturers' net-zero emission requirements, Zyxel Group has comprehensively advanced emission reduction initiatives. In 2025, it earned the prestigious EcoVadis Platinum Award in international sustainability ratings, ranking among the top 1% of assessed companies globally for sustainability performance. This recognition affirms the company's sustained commitment and outstanding achievements across the three pillars of Environmental, Social, and Governance (ESG). Furthermore, in 2025, Zyxel Group successfully passed the greenhouse gas reduction target review by the Science Based Targets initiative (SBTi), demonstrating its commitment to carbon reduction and advancing environmental sustainability.

Zyxel Group also applies its expertise in network technology to defense communications and cybersecurity, standing as one of Taiwan's few firms with R&D capabilities for security hardware,  including radar systems, military wireless communications, and network firewalls. In 2025, it became Taiwan's first networking company to join FIRST (Forum of Incident Response and Security Teams), the world's largest cybersecurity incident response organization, demonstrating its leadership in product security governance and international collaboration.

The entire management team will use its best effort to combine the sound technical energy, create more infinite possibilities for network communications, and maximize shareholder value and create a win-win-win situation for Zyxel Group Corporation, its employees, and shareholders.

At last, we wish all of you good health and everything goes well!