TPK REPORTS UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE FIRST QUARTER OF 2026

Taipei, Taiwan, May 13 2026 – TPK Holding Co., Ltd (TWSE: 3673) (“TPK” or the “Company”) today announced unaudited consolidated operating results for the first quarter of 2026. Company reported consolidated revenues of NT$17,887 million and net profit attributable to the parent company of NT$541 million, equivalent to EPS of NT$1.33.

1Q26 Operating Results
Company reported consolidated 1Q26 revenues of NT$17,887 million, up 24.2% quarter-on-quarter and up 30.5% year-on-year. The top-line growth was attributable to the consolidation of ITH Corporation (TWSE: 6962) starting January 1, 2026. Excluding ITH, 1Q26 revenues were down 3.0% sequentially due to seasonality and up 1.9% year-on-year on stronger tablet demand. Consolidated gross profit for the quarter amounted to NT$1,677 million, up 99.7% quarter-on-quarter and up 134.1% year-on-year on the account of higher margin IC design business. As a result, consolidated gross margin also increased from 5.8% for 4Q25 to 9.4% for the first quarter of 2026. In terms of product mix, IC design accounted for roughly 22% of 1Q26 consolidated revenues. Excluding IC design revenues, notebook PC and large-sized tablet (11” to 16”) continued to be the largest revenue source, marking 51% of non IC design revenues, compared to 50% for 4Q25. Regular-sized tablet and e-Book (7” to 11”) remained the second at 39%, down slightly from 43% for the previous quarter.

With respect to COGS, Company has witnessed healthy improvement across the board with the inclusion of IC design business. Raw material was NT$14,310 million, representing 80.0% of consolidated revenues, lower from 80.9% for 4Q25. Labor expense was flat quarter-on-quarter at NT$1,080 million, equivalent to 6.0% of consolidated revenues, down from 7.1% for the previous quarter. Depreciation cost also remained steady at NT$480 million, equivalent to 2.7% of 1Q26 consolidated revenues. Despite improved COGS percentage to the consolidated revenues, operating expenses increased drastically from NT$937 million for 4Q25 to NT$1,735 million, up 85.2% quarter-on-quarter in the backdrop of high R&D and incremental SG&A expenses for ITH Corporation. For the first quarter of 2026, Company recorded operating loss of NT$58 million.

For the first quarter, Company recorded net interest income of NT$134 million and foreign exchange gain of NT$242 million. Mark-to-market on strategic investments yielded a profit of NT$45 million for the quarter. Other non-operating profit was NT$12 million. Furthermore, TPK recognized income tax benefit of NT$203 million, which was mainly due to reversal of withholding tax accruals based on subsidiary capitalization from earnings distribution in China. For 1Q26, Company recorded net profit attributable to the parent company of NT$541 million.

Balance Sheet & Cash Flow
As of March 31 2026, consolidated cash and cash equivalent1 was NT$46,594 million, up from NT$43,781 million at the end of 2025. Total bank borrowings also remained roughly flat at NT$25,757 million from NT$25,338 million at the end of 4Q25. Consolidated capital expenditure for the quarter was NT$387 million on accrual basis. Consolidated EBITDA was healthy at NT$1,394 million for the quarter. TPK remained at net cash of NT$20,837 million as of March 31 2026 on the consolidated level.

Note: All financial numbers are prepared in accordance with IFRs, which is approved by regulators in Taiwan.
Note 1: Cash and cash equivalent includes “Cash Equivalents” and “Risk-Free Banking Financial Product.”

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