E Ink (8069) investor relations material

Executive summary

• H1 2026 revenue, operating profit and net income reached record highs; revenue was NTD 18,850m, up 1% YoY, and basic EPS was NTD 5.65.

• FY26 revenue-growth guidance was cut from 20%-25% to 10%-15%, mainly as memory costs weigh on consumer electronics.

• Long-term ePaper growth outlook remains supported by expanding ESL, signage and new applications.

Financial highlights

• H1 operating income was NTD 6,355m, broadly flat YoY; net income was NTD 6,553m, compared with NTD 6,518m reported in another summary.

• Q2 revenue was NTD 10,216m, down 4% YoY; operating income was NTD 3,542m, down from NTD 4,202m.

• H1 gross profit was NTD 11,150m and gross margin 59%, versus NTD 10,614m and 57% a year earlier; Q2 gross margin was 59% versus 61%.

• H1 FX results were a NTD 1,924m loss, versus a NTD 388.7m gain in H1 2025; income before tax rose to NTD 7,915m from NTD 6,197m.

• H1 net income and EPS rose YoY; Q2 net income was NTD 3,758m and basic EPS was NTD 3.23.

Outlook and guidance

• FY26 revenue-growth guidance fell to 10%-15% YoY from 20%-25%; CE is now expected to decline at a single-digit rate, versus prior expectations of high-single-digit growth.

• FY26 gross margin is expected at 55%-59%; H2 margin may be below H1 as CE weakens and signage modules grow.

• ESL revenue is expected to grow 20%-25% in 2026, with global penetration at 20%-25%; a similar growth rate may continue in 2027.

• FY26 signage growth guidance is 5%-10%, with double-digit growth possible in 2027; management expects healthy growth in signage gross profit dollars in 2027.

• YoY growth is expected in 2027, but its scale remains uncertain; CE recovery depends partly on memory conditions.