[INNOLUX] Innolux Corporation Q1 2026 Financial Report

1. Date of Board of Directors' Report or Resolution: 115/05/11
2. Date of Audit Committee Approval: 115/05/11
3. Reporting Period for Financial Report or Annual Self-Compiled Financial Information (YYYY/MM/DD ~ YYYY/MM/DD): 115/01/01 ~ 115/03/31
4. Accumulated Operating Revenue from January 1 to the Current Period (in thousands of Yuan): 66,644,538
5. Accumulated Gross Profit (Loss) from January 1 to the Current Period (in thousands of Yuan): 9,618,800
6. Accumulated Operating Income (Loss) from January 1 to the Current Period (in thousands of Yuan): 1,498,477
7. Accumulated Profit (Loss) Before Tax from January 1 to the Current Period (in thousands of Yuan): 2,407,624
8. Accumulated Net Profit (Loss) for the Current Period from January 1 to the Current Period (in thousands of Yuan): 1,792,111
9. Accumulated Net Profit (Loss) Attributable to Owners of the Parent Company from January 1 to the Current Period (in thousands of Yuan): 1,629,503
10. Accumulated Basic Earnings (Loss) Per Share from January 1 to the Current Period (in Yuan): 0.20
11. Total Assets at Period End (in thousands of Yuan): 387,253,843
12. Total Liabilities at Period End (in thousands of Yuan): 158,168,711
13. Equity Attributable to Owners of the Parent Company at Period End (in thousands of Yuan): 226,730,961
14. Other Disclosures: Innolux Corporation (Stock Code: 3481) today announced its Q1 2026 operational results. Consolidated revenue was NT$66.6 billion, operating profit was NT$1.5 billion, net profit after tax was NT$1.79 billion, and basic EPS was NT$0.20. Depreciation and amortization amounted to NT$7.9 billion, and capital expenditures were NT$2.8 billion.

Q1 2026 revenue by product application: automotive products 42%, TV 25%, mobile and commercial products 17%, portable computers 13%, desktop monitors 3%; revenue contribution from the Display Business Group and Non-Display Business Group was 56% and 44% respectively, with the Display Business Group further divided into consumer displays and commercial displays at 43% and 13% of revenue.

Reviewing Q1 2026, despite the Lunar New Year holiday, driven by this year's sports events and anticipation of memory price increases, there was a significant trend of brands customers pulling in orders early. Encouraged by this, Q1 revenue increased by 17.5% QoQ; gross margin and EBITDA margin also increased synchronously to 14.4% and 14.1% respectively, leading to a positive net profit for the period. Moving forward, the company will continue to optimize production capacity and diversify its layout strategies to ensure stable overall operations.

Looking ahead to Q2 2026, even with global macroeconomic uncertainties, benefiting from the sustained momentum of early Q1 orders, panel demand is expected to remain 'cautiously optimistic.' The company will flexibly adjust its product mix to cope with market fluctuations and continue to promote its 'dual-track transformation' strategy, deeply cultivating diverse development in non-display sectors. We hope to drive steady growth in annual operational performance based on the recovery foundation of the first quarter.

Based on the assessment of current business conditions, Innolux Corporation's outlook for Q2 2026 is as follows:
Non-display sector
Flat QoQ
Non-commodity sector (Commercial Displays)
Down low single digit % QoQ
Commodity sector (Consumer Displays)
Up low single digit % QoQ