Operator
Good afternoon, everyone, and welcome to Asia Vital’s Second Quarter 2026 Earnings Conference Call. We are pleased to have with us today, Mr. [ Eric Chen, ] Vice President; Mr. [ Matthew Shen, ] Executive Assistant to CEO; and Mr. Bill Chen, Senior Finance Manager, who will provide an overview of the company’s operating results for the second quarter of 2026. [Operator Instructions]
And now I would like to turn the call over to Asia Vital management team.
Bill Chen
IR Manager
Okay. Thank you. Good afternoon, everyone, and welcome to AVC’s 2026 Second Quarter Investor Conference. I will now walk you through our financial and operating performance for the second quarter and the first half of 2026.
Before we begin, please take a moment to review the disclaimer on this slide. Today’s presentation is based on information currently available, and the actual results may differ due to various risks and uncertainties.
Second quarter revenue reached TWD 49.1 billion, remaining stable and quarter-over-quarter and increasingly 66% year-over-year. The key point on this slide is gross margin, which improved to 32.57%, up to 2.8 percentage points quarter-over-quarter and 8.16 percentage points year-over-year. This improvement was mainly driven by a more favorable product mix and higher revenue contribution from server applications, demonstrating that revenue growth is translating into better earnings quarterly. Operating margin reached 27.44% and EPS rose to TWD 24.37, up 21% quarter-over-quarter and 137% year-over-year.
And let’s quickly walk you through the first half 2026 income statement. And I will skip through the CAGR numbers here. The full presentation will be available on our website after the call for anyone who would like to review the