Xintec (3374) Q2 2026 earnings summary

Executive summary

• Net revenue for 2Q'26 reached NT$2,185M, up 14.2% QoQ and 42.2% YoY, with strong growth in testing services.

• Net income for 2Q'26 was NT$396M, a 3.1% increase QoQ and a 512.5% surge YoY, reflecting improved profitability.

• For 1H'26, net revenue grew 33% YoY to NT$4,098M, and net income rose 91.8% YoY to NT$781M, driven by strong demand in wafer-level packaging and testing services.

• EPS for 2Q'26 was NT$1.46, up 2.9% QoQ and 512.5% YoY; basic EPS for H1'26 was NT$2.88.

• Major customer concentration remains, with 75% of sales to a single related party, TSMC.

Financial highlights

• Gross margin for 2Q'26 was 27.7%, up 12ppt YoY but down 2ppt QoQ; for H1'26, gross margin was 28%, up from 23% YoY.

• Operating margin for 2Q'26 was 22.3%, up 11.6ppt YoY but down 1.3ppt QoQ; for H1'26, operating margin was 23%.

• Net profit margin for 2Q'26 was 18.1%, up 13.9ppt YoY but down 1.9ppt QoQ.

• ROE for 2Q'26 was 15.9%, up 13ppt YoY; total equity rose to NT$9,860M as of June 30, 2026.

• Cash and marketable securities at quarter-end were NT$6,125M.

Outlook and guidance

• Forward-looking statements indicate expectations of continued growth but highlight significant risks and uncertainties.

• Management continues to assess the impact of new IFRS standards effective in 2027 and 2028, with no early adoption planned.

• Ongoing capital investments are expected to support future growth, with government-subsidized loans secured for expansion.