King Yuan Electronics Company (2449) investor relations material

Executive summary

• Net revenue for Q2'26 reached NT$11,141.6 million, up 33.3% year-over-year and 9.3% sequentially from Q1'26.

• Profit attributable to the company was NT$2,491.6 million, a 15% increase year-over-year and 9.0% sequentially.

• EPS (diluted) for Q2'26 was NT$2.04, up from NT$1.77 in Q2'25 and NT$1.86 in Q1'26.

• Total comprehensive income for the quarter was NT$6,965.4 million, reflecting strong equity investment gains.

• The company completed the sale of its entire 92.16% stake in King Long Technology (Suzhou) Ltd. in February 2025, resulting in a one-time gain of NT$4,431.2 million.

Financial highlights

• Gross margin improved to 39.5% in Q2'26, up 4.0 percentage points year-over-year.

• Operating profit margin was 25.4%, slightly down 0.6 percentage points year-over-year and 1.8 points sequentially.

• EBITDA for Q2'26 was NT$5,569.6 million, up from NT$3,944.5 million in Q2'25.

• Free cash flow remained negative at -NT$2,266.4 million in Q2'26, similar to Q1'26.

• Total assets increased to NT$128,748.7 million as of June 30, 2026, up from NT$82,848.1 million a year earlier.

Outlook and guidance

• Excluding revenue from the ex-subsidiary in China, H1'26 net revenue was NT$21,333.6 million, up 36.1% year-over-year.

• H1'26 gross margin rose to 39.6%, a 5.0 percentage point improvement year-over-year.

• H1'26 profit attributable to the company declined 26.1% year-over-year due to lower non-operating income.

• The company is focused on capacity expansion and plant development, as reflected in significant increases in property, plant, and equipment and right-of-use assets.

• Adoption of IFRS 18 in 2028 is expected to enhance financial statement comparability and transparency.