Earnings Collapse at GPI Raises Questions About Strategy – and Katun’s Future.

August 19, 2025 – General Plastic Industrial Co. (GPI), the Taiwanese manufacturer behind Katun Corporation, is under pressure after reporting a steep drop in profits for the first half of 2025 — despite managing modest revenue growth. The results have prompted fresh questions about the sustainability of GPI’s acquisition-driven strategy and the impact on Katun’s global operations.

GPI posted H1 2025 revenue of US$12.03 million, up just 2.4% year-over-year, but that’s where the good news ends. Adjusted EBITDA dropped 6.0%, and adjusted EPS plunged 17.6% — a sharp decline that investors are likely to view as a red flag, especially following 15% earnings drop in 2024. The company pointed to integration and restructuring costs as key factors, but critics argue the issue runs deeper. For years, GPI has leaned on acquisitions to prop up growth — including investments in Katun — yet it now appears those moves may be dragging down the bottom line instead of lifting it.

Katun, once a pillar of the aftermarket imaging supplies sector, has increasingly become entangled in GPI’s broader performance struggles. While GPI doesn’t break out Katun’s results, the scale of the earnings hit suggests significant financial strain across the group — including Katun’s operations in North America and Europe. GPI and Katun have faced previous lawsuits involving counterfeit Canon and HP toner, and aftermarket clone products linked to them continue to surface online under various brand names. Industry observers suggest that Katun increasingly functions as a distribution channel for GPI’s clone toner operations, raising questions about the company’s role and compliance posture.