Chicony Electronics (2385) Q1 2026 earnings summary

Executive summary

• Net income for 1Q26 rose 93% sequentially from 4Q25, with EPS up 92% QoQ; both declined year-over-year by 8.6% and 8.7% respectively.

• Revenue for 1Q26 was NT$22.87B, down 0.9% QoQ and 1.8% YoY, reflecting a slight contraction in sales.

• Total assets increased to NT$107.9B as of March 31, 2026, up from NT$104.2B a year earlier.

• April 2026 revenue reached NT$7.3B, with YTD revenue at NT$30.1B.

• Profit for the three months ended March 31, 2026, was NT$1.66B, down from NT$1.80B in the same period last year.

Financial highlights

• Operating profit for Q1 2026 was NT$1.73B, up 11.3% QoQ but down from NT$2.14B YoY.

• Gross margin for 1Q26 was 16.1%, down 0.7ppt QoQ and 2.4ppt YoY.

• Net margin improved to 6.4% from 3.3% in 4Q25, but slightly below 6.8% in 1Q25.

• Basic earnings per share for Q1 2026 was NT$2.00, down from NT$2.19 in Q1 2025.

• Cash and cash equivalents rose to NT$27.8B at March 31, 2026, from NT$21.4B at December 31, 2025.

Capital allocation and financing

• Net cash from operating activities for Q1 2026 was NT$2.21B.

• Net cash from investing activities was NT$444M, reflecting significant asset disposals and acquisitions.

• Net cash from financing activities was NT$5.30B, driven by increased short-term borrowings.

• Dividend payout ratio has remained high, with 80% for 2025 and a history of strong shareholder returns.

• Cash dividends of NT$5.51B were distributed during the quarter.