DB HiTek CO (000990) investor relations material

Executive summary

• Q3 FY26 consolidated revenue was KRW 403.4bn, up 14% YoY; operating profit was KRW 90.0bn, up 7%, while net profit fell 75% to KRW 22.5bn.

• 9M revenue was KRW 1,177.4bn and operating income KRW 262.2bn, versus KRW 988.6bn and KRW 210.8bn in the prior-year period.

• Foundry demand supported production expansion; alloy-ferro suspension resulted in discontinued-operations losses of KRW 44.1bn in 9M.

Financial highlights

• Q3 consolidated gross profit was KRW 153.2bn, up 10% YoY; gross margin was 38%, operating margin 22%, and net profit margin 6%.

• Non-consolidated Q3 revenue was KRW 345.3bn, up 8% YoY, and operating profit was KRW 98.0bn, up 5%; EBITDA was KRW 138.3bn, up 4%.

• Non-consolidated net profit was KRW 72.6bn, down 29% YoY; prior-year Q3 included a KRW 14.4bn one-off gain from DB Metal share disposal.

• 9M continuing-operations profit was KRW 269.1bn versus KRW 203.4bn; net income was KRW 225.0bn versus KRW 196.6bn, including discontinued-operation losses.

Outlook and guidance

• Foundry fab utilization is forecast at 98% in 2026 and expected to remain high through 2027, following 97% utilization in 2025.

• Capacity additions are planned in phases: +11K wafers per month in Phase 1 in 2027, with Phase 2 planned for 2028; infrastructure supports expansion up to ~200K wpm.

• Further high-voltage BCD price increases are planned; new high-voltage businesses target initial mass production in 2027, with applications including data centers, robotics, energy storage and next-generation automotive.

• Planned 2026 semiconductor investment was KRW 417.7bn; KRW 229.5bn had been spent through Q3 on clean-room expansion and capacity improvements.