TXC (3042) Investor presentation summary

Strategic positioning and market trends

• Maintains a leading position in the timing market, supporting AI, 5G/6G, automotive, and IoT sectors.

• Focuses on advanced timing solutions for cloud, edge, and device synchronization in distributed AI ecosystems.

• Expands timing value across automotive, networking, and mobile communication, with automotive and AI segments growing in share.

• Drives innovation in timing for emerging technologies, including ultra-miniature, high-frequency, and ruggedized solutions.

• Adapts to industry shifts such as cloudification, disaggregation, and increased clock domain complexity.

Financial performance and stability

• Net revenue for H1'26 reached NT$7,038M, up 7.73% YoY, with net income at NT$1,006M, up 19.43% YoY.

• Gross margin for H1'26 was 32.74%, with operating margin at 16.00% and net income margin at 14.29%.

• Maintains strong liquidity with NT$4,682M in cash and a current ratio of 238% as of June '26.

• Shareholders' equity stands at NT$15,874M, with ROE at 12.7% and ROA at 9.2%.

• High dividend payout ratio, averaging over 80% in recent years, supporting sustainable business growth.

Capital expenditure and innovation

• 2026 CAPEX planned at NT$1,078M, focusing on core technology, advanced process innovation, and smart manufacturing.

• Investments include new factory capacity, automation, robotics, and ESG sustainability initiatives.

• Deferred CAPEX of NT$135M for 2025, with ongoing enhancements in Asia and Indonesia.