So thank you for coming to our virtual investor conference. So now we will review the financial numbers of Q2. Q2 revenue was TWD 78,800,000,000 Up 9% Q on Q and up 11% year on year. Gross profit was up 10% q oq and up 2% y o y. Shipping margin in Q2 increased to 30.1% from 29.8% in Q1, was slightly contracted from 32.9% to Q20 of 2020.
Due to a high base last year, they had a one off subsidy from the government and higher material costs and a little dilution from the rapidly growing EV business. In Q2, the R and D expense was up 7% year on year and 8% quarter on quarter. With a more favorable scale, the R and D expense as a percentage of sales dropped to 8.8% in Q2 versus 9.2% in Q2 of 2020 and 9.8% in Q1. Likewise, The SG and A expense was up 6% year on year and 4% quarter on quarter. The SG and A expense as a percentage of sales contracted to 10.1% in Q2 versus 10.6% in the Q2 of 2020 and 10.5% in Q1.
As a result, OpEx ratio shrank to 18.9% in Q2 versus 19.8% in the Q2 of 2020 and 19.5% in Q1. The OP in Q2 was up 17% QoQ, but down 5% year on year. So the OP margin in Q2 was 11.1% versus 10.3% in Q1 and 13.1% in the Q2 of 2020. So sequentially, we saw seasonal growth for all segments. Year on year, we found strong growth for Both power electronics and automation, while infrastructure had a little bit negative growth due to the advantaged business environment hurt by the pandemic, earnings wise, we found seasonal profit expansion for all segments and Infrastructure compared to a year ago.
In terms of the sales breakdown, Power Electronics accounts for 59% in Q2 versus 90 in Q1 and 57% from a year ago. Automation was 16% in Q2 versus 15% in Q1 and a year ago. Infrastructure was 25% in Q2 versus 25 in Q1 and 28% in Q2 of 2020. It didn't change much from Q1 to Q2. The non operating profit was around TWD1.3 billion in Q2, which was similar to Q1.
In Q2, we had DKK10.1 billion profit before tax, up 14% Q on Q but down 1% year on year. EBITDA in Q2 was CLP14.4 billion, which was up 10% up 1% YY. Q2 test expense was about TWD2 billion representing a stable twenty The net profit after tax in Q2 was CLP7.6 billion, up 15% QoQ and flattish Y o Y. So the EPS in Q2 was 2.92. Now we have a look at the accumulated numbers of the first half.
So the first half revenue was TWD 151,300,000,000, up 20% from a year ago. Tripping in the first half was up 19% year on year with a trip margin of 29.9%. The R and D expense in the first half was up 12% year on year with a favorable scale. The R and D expense as a percentage of sales dropped 1st half was up 6% year on year. The SG and A expense as a percentage of sales contracted to 10 point 3% versus 11.6% from a year ago.
So the OpEx ratio also shed to 19.2% from 21 The OP in the first half was up 45% year on year and OP margin in the first has significantly increased to 10.8% from 8.9% a year ago. Year on year, we saw pretty strong growth in both the power electronics and Automation followed by a little recovery in infrastructure. Profit wise, we found the most significant expansion in automation and pretty strong Group for power electronics and infrastructure as well. So the sales percentage of power electronics, Automation and Infrastructure in the first half was 60%, 15% and 25%, respectively, Compared to 56%, 15% and 29% from a year ago, the expansion of power and electronics was largely driven by the rapid growth of EV Solutions Business. In first half, we about TWD2.6 billion in operating profit.
The increase in others was mainly because of the gains of some of our minority Investment. In total, we had $18,900,000,000 per a year ago. Our EBITDA in first half was CNY 27.4 billion, which was up 30 20% effective rate. The net profit after tax in the first half of twenty twenty one was NT14.2 billion dollars compared to NT9.7 billion a year ago. So the EPS in the first half was 5.46% from 3.72% a year ago.
So here we have the first question. It's about what is the approximate Impact of the price increase in raw materials and components on the company's GP margin in Q2, can you pass on the cost Increases to your customers, which materials you see the greatest cost pressure and which departments are most So there I mean, there is indeed a pretty severe Price interest for many different kinds of components and materials from 3% to 10%, I for different types of components or materials. So of course, we need to negotiate and discuss with the customers and to share the cost pressure with the customers as well. But the price increase, I mean, in terms of the range varies from product to product. So the second question Can you share the outlook for each product line?
What are the main drivers? What's the trend for GP margin? I think currently, we are expecting the Which means that I mean the Q2 usually better than the Q1 And the Q3, better and the Q3 usually is the peak season of the whole year. And the Q4 normally is about like flattish or sometimes it's slightly better or slightly lower than the 3rd quarter. So but for the 4th quarter, it's still a bit early to have a clear visibility.
But in terms of the 3rd quarter, I think it's very likely and probably it's going to be better than the Q2. Though there are still some bottlenecks in the supply chain, but I believe that we have already I mean, the toughest time was already behind. And in terms of the price increase, I mean, for our selling price, because it's difficult or it's impossible to negotiate prices with your customers at the beginning of the inflection because we want to maintain a good relationship with the customers. So but I think after August or September, we will be able to start to renegotiate I mean the selling price with our customers and try to pass on or share some of the cost pressures with our customers. So hopefully, I mean, things will be getting better after August or September.
In terms of the main drivers for second half, I think still EV Businesses and IA and Data Center Solutions and our Telecom Power Business will be the faster growing areas. And for our EV Solutions business, we still we expect it to grow by at least 40% to 50 in the second half. And lastly, is our telecom power business, Adele, mean, the deployment or the rollout of 5 gs is not as fast as everybody imagined, but it's indeed we are seeing some accelerations about the rollout of 5 gs. So in the second half, I think Those will be the areas growing faster within our portfolio. So the third question is, Does the OPAS increase significantly due to the pandemic outbreak in Taiwan?
I think that your OpEx, I mean, in terms of the numbers, it's relatively stable because the situation is still the same. There are no traveling expenses. So I think that generally speaking, our OpEx remains pretty stable now. And can you talk about the demand and outlook for So we just have I mean, I just had some discussions Our business managers for the notebooks and server powers, I think, though there were I mean, There are many some noises about like whether the notebook the demand for notebooks and servers are going to slow down when things are getting more stable now. But the situation now is we haven't really seen that I haven't at this moment, but probably because we haven't really satisfied all the demand from the customers.
So currently, we haven't seen that. And do you Think that Q3 will be the peak of this year. If there are some orders being pushed out to the 4th quarter because of the material supply. Does that mean Q4 will be better than Q3 this year? We actually Very limited visibility for most business.
Normally, Q3 is the peak season, but we still need to wait So are you seeing any slowdown in China IA market? Currently, it still looks pretty good. I think I have explained it for many times that the Information in the factories, it's a long term trend in the factories. So how do you see the component shortage problem? Will it be solved by the end of this year.
As I just said earlier, I think the most I mean the toughest moment was already Are you seeing Intensified competition in server power supplies. And is there a chance to accelerate the growth of server powers in 20 Because of the new platform on new platforms of Intel and AMD. I think we have Been the market leader in the server power for many years and we still continue to improve our I can probably say that I'm pretty confident about our the technology and performance of our server powers. We are definitely, I mean, 1 of The best I mean in the market, if we are not the best, so I'm pretty confident about our performance. So I believe we can maintain our competitiveness in the future.
And In terms of the server market, I think it's fairly stable. There are a few large fluctuations. The launch of the new platform should have limited impact on the market demand. But as an important partner of CPU manufacturers, We will definitely launch corresponding power and cooling products to help our customers smoothly enter to the mass generation. So how do you see your gain comes to power business in the second half?
Usually, the second half is the peak for GaNCOM's business. However, since last year, the supply has being abated by the shortage of materials. So we are not certain about this But anyway, I mean, the gap is not on our side, but on other components. So who are demand competitors for Autopilotics Components? There are quite a lot of manufacturers focusing on this market.
As a latecomer, I mean, Singjet with strong R and D capabilities, product performance and strong cost structure, I believe that we will show our mean competitiveness very soon. And the auto market by nature is quite different from the consumer market. But after many years of the hard work and extra hard work, I think we have seen rapid growth and significant revenue contributions from the auto products. So how about the loss making situation in your EV solution Any improvement in the bottom line? How fast do you think this business can grow this year and the next year?
So Being affected by the component shortage, the EV solution had a moderate sequential growth in Q2 compared to Q1. Because we are still investing pretty aggressively. So hopefully, we are able to achieve breakeven, I mean within 2 years. But I'm pretty confident about this business because The market itself is growing really rapidly. So we just need a better scale in order to see the improvement of the bottom line.
So how much of Delta's revenue come from Tesla? We don't comment on, I mean, the information adding individual customers. But Tesla is not the only company making EV. Many other major automakers are being more aggressive on the EV market and deployments. So and the entire market is growing rapidly.
So we are relatively optimistic about the business. Any early thoughts about the macro environment for investors? I always said I'm not an economist because there are so many variables and swing factors and uncertainties in the environment. So I think that my answer is always the same. I mean, we have no control about the macro.
The only thing we can do is we do our best and We can only be ready for the orders and For the business, So compared to the macro environment, I mean, any comment on the macro environment, I think that it's from other peers because of their better operations and better management. And that's our goal. Can you talk about I think in the short run, the main issues to remain the component and material supply in the whole supply chain. As our Chairman just said, The toughest time was already behind and also because we are the biggest We are one of the biggest we are not the biggest customers of our suppliers. So I think we it's likely that we can be better I mean, we have better control of the whole So do you have any idea about your penetration rate of your EV Solution Business.
According to your project wins at hand, I think there are because I mean there are many new models being launched in every month and every quarter, so the number is quite fluctuate. But I believe that We have pretty good market share in this market. Given we have, I mean, Many project wins from the major automakers. So can you give us more detail about the impact on your margins, I mean, in terms of from the rising For each product line, I think it varies from product For the products with higher margins, I think that it's relatively okay. But for I mean, the business with For businesses with the lower relatively lower tripping margin, I mean, it is being more greatly affected.
But in general, I think that we are okay. So can you talk about Your hesitation for your EV Solutions business. As I said, the major automakers, including the European automakers, the U. S. Automakers and even the Japan's automakers are are the customers of Delta.
So I think we are relatively optimistic about this business. So even with the pandemic, Delta Thailand's business still Seems quite strong. Is that because Delta moved more business to Thailand? What are demand businesses? Because Delta Thailand, I mean, is a public listed company in Thailand.
I think that we I mean, it's not appropriate for us to answer the questions for them. So we are not supposed to speak for them. So any recovery in your Networking Business. At present, demand from corporates in Europe The United States has not recovered significantly. But when there are more employees returning to The office corporate IT Investments also correspondingly, which show Drive Market Demand.
So As you mentioned earlier that The EV business accounts for like 5% of your total revenues. Is that only the onboard EV products or is the Aggregate number of all EV related businesses. Yes, I think that we actually have many different products exposed to the auto market, for Example, in our cooling fans, we also make some cooling fans for auto. So and then we also have some passive components for the auto market as well. So when we talk about the EV solution business, I mean, which accounts for like about 5% of the total sales now, which refers to the onboard EV products.
Is there any acceleration in the 5 gs rollout? Are you seeing any acceleration in your telecom power business? Do you think that you are able to benefit from the oil situation in the U. S. And EU?
I think the problem of 5 gs is still the same, I mean, the lack of the material or the killer applications. So whenever I went to the phone stores, I always ask them, so what are those I mean, Are these 5 gs phones for? And they always answer me, okay, I mean, in terms of the speed, it's a bit faster, but So I think that is the main reasons why People are not seeing I mean, the rapid growth of the whole They can make their return from the 5 gs investments. So can you talk about your EV charger business? In order to see the population of the EV cars, I mean, on the road, the infrastructure, which are the EV chargers are very, very critical.
So that's why you also see, I mean, The U. S. Government, they just approved that the spending on the infrastructure, which includes the EV chargers. Are there and the ongoing MMA projects. MMA is part of Delta's long term We have a professional team that continues to look for any possible opportunities.
Since the market is very hard at present, it's difficult to predict whether we can successfully to close the Do you think that it is possible that we can maintain The JP margin about 30% in the second half. Yes, I think Yes, I think so. Because as I said, I mean, the worst time was already behind. So I think it's quite likely. So are you seeing any impact on your automation business from the Delta variant.
Actually, we have 2 parts within the Automation segment, one is the Industrial Automation, the other one is the Building Automation. So for the Industrial Automation, I think the income It's pretty limited. But we're building automation. Yes, but I mean indeed had some negative impact on the building automation because the Automation business by nature is a business you need to send people to the stores and to the sites to helped customers to install the device and equipment. So during the pandemic, it's very difficult to do so.
So that's why it's being affected by the pandemic. So what is The reason for the resignation of the current CFO, can you tell us more about the new CFO? So after being with us for 35 years, Our CFO, Ms. Wong, decided to retire at the end of this year due to her personal plan. We are really, really Grateful for her long year contributions to Delta.
And new CFO, Mr. Ru Bo Wen, He has also been with us for many years and he is the CFO of Delta Thailand as He has extensive knowledge and complete experience in accounting, financial planning and Process Improvements. So we hope that he can lead the global finance team to overcome the challenges Great. New breakthroughs for Delta. So are you expecting any price interest or negotiation of the selling price with your customers in the 3rd quarter.
I think it's case by case because for each customer, you have different relationship with different customers. And And the negotiation power, I mean, the bargaining power of each customer is different too. So it's not Okay. So we saw some cost increase and then we just pass on to the customer immediately. It's not that easy.
I think The element of Delta is We don't take advantage from this. I mean by that, I mean we wouldn't tell our customers if you don't I mean, raise their prices, then we don't ship the products. So we always want to help our customers on their business. So I think that's all the questions today. So yes, and I think that everybody stay healthy and stay safe.
And stay happy. So hopefully, that we can see other in person in the next time earnings call. We will see. So thank you for