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HTC CORPORATION 3Q26 RESULTS SUMMARY
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DISCLAIMER STATEMENT 2 • This presentation and release contain “forward-looking statements” which may include projections of future results of operations, financial condition or business prospects based on our own information and other sources. • Our actual results of operations, financial condition or business prospects may differ from those expressed or implied in these forward-looking statements for a variety of reasons, including but not limited to market demand, price fluctuations, competition, international economic conditions, supply chain issues, exchange rate fluctuations and other risks and factors beyond our control. • The forward-looking statements in this release reflect the current belief of HTC as of the date of this release. HTC undertakes no obligation to update these forward-looking statements for events or circumstances that occur subsequent to such date.
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EXECUTIVE SUMMARY 3 3Q26 Financial Highlights: • Quarterly revenue of NT$0.76 billion with a gross margin of 40.1%. • Quarterly operating loss of NT$0.51 billion with an operating margin of -66.3%. • Quarterly net profit attributable to owners of the parent was NT$0.22 billion, or an EPS of NT$0.26.
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EXECUTIVE SUMMARY 4 3Q26 Business Update: • HTC’s AI smart glasses, VIVE Eagle, have launched a new round-frame style along with a major software upgrade, and officially went on sale in Europe, North America, and Australia, further expanding its global market presence. Continuing its product philosophy of open AI architecture, privacy first, and everyday wearability, VIVE Eagle keeps evolving in wearable design, 3K video capture, first-person livestreaming, AI real-time translation, AI Notes, natural interaction, and battery life. It also offers a variety of frame shapes, colors, and ZEISS lens options, further expanding the use of AI smart glasses in daily life, travel, work, and content creation. • HTC’s 3D content creation and publishing platform VIVERSE has teamed up with the National Taiwan Science Education Center and ODD Radio to present“The Little Prince: Call toAdventure”, a multiplayer immersive VR experience based on the classic French literary work “The Little Prince”, now showing in Taiwan for the first time. Through XR technology, audiences are invited to go from reading the story to taking part in it, setting off on a fantastic journey through planets, imagination, and reflections on life. • HTC VIVE Arts has partnered with the Musée d’Orsay, GEDEON Experiences, and BackLight to co-produce the immersive virtual reality experience“A Statue for Liberty.Bartholdi’s Dream, from Paris to NewYork”, now on display at the Musée d’Orsay in Paris.
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EXECUTIVE SUMMARY 5 3Q26 Business Update: • HTC VIVE ORIGINALS has launched a brand-new virtual idol talent show “VPOP ASIA”. Building on VIVE ORIGINALS' years of expertise and technology in virtual production, the show combines Mandarin Pop Music IP, virtual character performances, and multi-platform content distribution, creating Taiwan's first virtual idol music talent show, showcasing a novel model of tech entertainment, music content, and digital IP applications. • HTC has been awarded the EcoVadis Silver Medal for the fifth consecutive year, and named a constituent of the FTSE4Good Index Series for the fifth consecutive year, while maintaining its place in the FTSE4Good TIP Taiwan ESG Index. Furthermore, in the latest CDP scores, HTC achieved an “A” rating, the highest honor in the Supplier Engagement Assessment (SEA) for the third consecutive year, demonstrating the company’s solid strength in deepening ESG governance and sustainable supply chain management over the long term.
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REVENUES AND OPERATING PROFIT 6 Revenues NT$bn Operating Profit (Loss) NT$bn 0.7 0.8 0.7 0.6 0.8 25Q3 25Q4 26Q1 26Q2 26Q3 (0.9) (0.6) (0.6) (0.6) (0.5) 25Q3 25Q4 26Q1 26Q2 26Q3
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Gross Margin % GROSS AND OPERATING MARGINS 7 Operating Margin % 35.2 34.4 41.7 42.6 40.1 25Q3 25Q4 26Q1 26Q2 26Q3 (119.2) (79.1) (86.2) (93.2) (66.3) 25Q3 25Q4 26Q1 26Q2 26Q3
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3Q 2026 P&L (CONSOLIDATED) NT$bn 3Q25 2Q26 3Q26 REVENUES 0.7 0.6 0.8 GROSS PROFIT 0.3 0.3 0.3 OPERATING EXPENSE 1.2 0.9 0.8 SALES MKTING. 0.4 0.4 0.4 RESEARCH DEV. 0.4 0.2 0.2 GENERAL ADM. 0.4 0.3 0.2 OPERATING PROFIT (LOSS) -0.9 -0.6 -0.5 NPBT 3.5 -0.3 0.2 NPAT1 3.2 -0.3 0.2 GROSS MARGIN (%) 35.2% 42.6% 40.1% OPERATING MARGIN (%) -119.2% -93.2% -66.3% EPS2 (NT$) 3.88 -0.33 0.26 81 Attributable to stockholders of parent company, excluding minority interest. 2 EPS was calculated based on number of outstanding shares at that time.
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3Q 2026 BALANCE SHEET (CONSOLIDATED) NT$bn 2025/09/30 2026/06/30 2026/09/30 TOTAL ASSETS 38.3 38.9 42.4 Cash 1 4.6 2.7 2.4 AR 0.5 0.5 0.5 INVENTORY 0.6 0.5 0.8 OTHER ASSETS 32.6 35.2 38.7 TOTAL LIABILITIES 11.6 12.7 15.7 TOTAL EQUITY 2 26.7 26.2 26.7 9 1. Includes time deposits with original maturities more than 3 months 2. Attributable to stockholders of parent company, excluding minority interest.
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- 3 - HTC CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In Thousands of New Taiwan Dollars) September 30, 2026 December 31, 2025 September 30, 2025 ASSETS Amount % Amount % Amount % CURRENT ASSETS Cash and cash equivalents (Note 6) $ 2,090,301 5 $ 2,909,535 8 $ 3,947,776 10 Financial assets at fair value through profit or loss - current (Notes 7 and 30) 17,787,945 42 12,826,683 33 14,002,514 37 Financial assets at fair value through other comprehensive income - current (Notes 8 and 30) 2,781 - 206,397 1 260,113 1 Notes and trade receivables (Notes 10 and 24) 498,934 1 506,730 1 461,451 1 Other receivables (Note 10) 336,839 1 2,604,460 7 9,055 - Current tax assets 163,344 - 191,124 - 186,281 1 Inventories (Note 11) 777,486 2 450,243 1 551,679 1 Prepayments (Note 12) 170,530 - 193,044 1 259,807 1 Other current financial assets (Notes 9 and 32) 197,774 1 113,036 - 489,588 1 Other current assets 36,232 - 30,371 - 22,358 - Total current assets 22,062,166 52 20,031,623 52 20,190,622 53 NON-CURRENT ASSETS Financial assets at fair value through profit or loss - non-current (Notes 7 and 30) 4,099,438 10 2,216,058 6 1,701,815 4 Financial assets at fair value through other comprehensive income - non-current (Notes 8 and 30) 5,333,788 13 4,731,637 12 4,981,235 13 Investments accounted for using equity method (Note 14) 861,540 2 862,292 2 860,490 2 Property, plant and equipment (Notes 15 and 32) 6,265,598 15 6,326,356 17 6,340,102 17 Right-of-use assets (Note 16) 30,484 - 38,545 - 42,286 - Investment properties, net (Notes 17 and 32) 1,498,363 4 1,539,993 4 1,537,887 4 Intangible assets (Note 18) 72,399 - 414,134 1 416,860 1 Deferred tax assets 1,060,711 2 1,067,262 3 1,039,227 3 Refundable deposits (Note 33) 350,053 1 345,162 1 341,681 1 Net defined benefit assets - non-current 645,823 1 640,113 2 565,637 2 Other non-current financial assets (Notes 9 and 32) 76,108 - 121,338 - 143,177 - Other non-current assets (Note 12) 1,572 - 1,659 - 1,890 - Total non-current assets 20,295,877 48 18,304,549 48 17,972,287 47 TOTAL $ 42,358,043 100 $ 38,336,172 100 $ 38,162,909 100 LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Note 19) $ 1,400,000 3 $ 1,000,000 3 $ - - Financial liabilities at fair value through profit or loss - current (Notes 7 and 30) 47,480 - 9,441 - 10,544 - Notes and trade payables (Notes 20 and 31) 4,907,520 12 4,783,207 13 4,747,629 13 Other payables (Notes 21 and 31) 2,361,141 6 2,716,734 7 2,768,964 7 Current tax liabilities 68,890 - 54,240 - 54,843 - Provisions - current (Note 22) 239,380 - 285,207 1 300,440 1 Lease liabilities - current (Notes 16 and 31) 18,130 - 15,930 - 17,076 - Other current liabilities (Notes 21 and 24) 444,667 1 480,261 1 481,104 1 Total current liabilities 9,487,208 22 9,345,020 25 8,380,600 22 NON-CURRENT LIABILITIES Financial liabilities at fair value through profit or loss - non-current (Notes 7 and 30) 24,236 - - - - - Long-term borrowings (Notes 19 and 32) 5,981,605 14 2,200,000 6 2,900,000 8 Deferred tax liabilities 99,463 1 104,435 - 56,765 - Lease liabilities - non-current (Notes 16 and 31) 15,680 - 26,000 - 28,513 - Guarantee deposits received 66,211 - 64,026 - 64,476 - Total non-current liabilities 6,187,195 15 2,394,461 6 3,049,754 8 Total liabilities 15,674,403 37 11,739,481 31 11,430,354 30 EQUITY (Note 23) Share capital - ordinary shares 8,370,323 20 8,360,211 22 8,359,621 22 Capital surplus 16,366,144 38 16,340,444 43 16,339,033 43 Retained earnings Legal reserve 1,012,760 2 815,365 2 815,365 2 Special reserve 3,283,907 8 2,390,621 6 2,390,621 6 Unappropriated earnings 225,474 1 1,973,957 5 2,488,164 7 Total retained earnings 4,522,141 11 5,179,943 13 5,694,150 15 Other equity (2,574,968) (6) (3,283,907) (9) (3,660,249) (10) Total equity 26,683,640 63 26,596,691 69 26,732,555 70 TOTAL $ 42,358,043 100 $ 38,336,172 100 $ 38,162,909 100 The accompanying notes are an integral part of the consolidated financial statements.
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- 4 - HTC CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings (Loss) Per Share) For the Three Months Ended September 30 For the Nine Months Ended September 30 2026 2025 2026 2025 Amount % Amount % Amount % Amount % OPERATING REVENUE (Notes 24 and 31) $ 763,627 100 $ 716,371 100 $ 2,030,455 100 $ 2,119,695 100 OPERATING COSTS (Notes 11, 25 and 31) 457,747 60 464,176 65 1,190,554 59 1,347,711 64 GROSS PROFIT 305,880 40 252,195 35 839,901 41 771,984 36 OPERATING EXPENSES (Notes 25 and 31) Selling and marketing 352,945 47 367,882 51 1,043,224 51 1,295,394 61 General and administrative 237,223 31 302,049 42 746,525 37 908,039 43 Research and development 222,314 29 436,218 61 692,177 34 1,402,480 66 Total operating expenses 812,482 107 1,106,149 154 2,481,926 122 3,605,913 170 OPERATING LOSS (506,602) (67) (853,954) (119) (1,642,025) (81) (2,833,929) (134) NON-OPERATING INCOME AND EXPENSES Interest income (Note 25) 5,295 1 46,446 7 27,774 1 427,869 20 Other income (Notes 25 and 31) 147,137 19 159,625 22 560,946 28 666,911 31 Other gains and losses (Note 25) 633,611 83 4,208,216 588 916,847 45 11,075,440 523 Finance costs (Notes 25 and 31) (41,030) (5) (19,478) (3) (84,049) (4) (189,124) (9) Share of profit or loss of associates and joint ventures (Note 14) 2,274 - (69,333) (10) (27,352) (1) (221,584) (10) Total non-operating income and expenses 747,287 98 4,325,476 604 1,394,166 69 11,759,512 555 INCOME (LOSS) BEFORE INCOME TAX 240,685 31 3,471,522 485 (247,859) (12) 8,925,583 421 INCOME TAX EXPENSE (Note 26) (22,467) (3) (228,248) (32) (55,060) (3) (2,343,358) (111) INCOME (LOSS) FOR THE PERIOD 218,218 28 3,243,274 453 (302,919) (15) 6,582,225 310 (Continued)
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- 5 - HTC CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings (Loss) Per Share) For the Three Months Ended September 30 For the Nine Months Ended September 30 2026 2025 2026 2025 Amount % Amount % Amount % Amount % OTHER COMPREHENSIVE INCOME AND LOSS, NET OF INCOME TAX Items that will not be reclassified subsequently to profit or loss: Unrealized gain (loss) on investments in equity instruments designated as at fair value through other comprehensive income $ 178,357 24 $ 63,373 9 $ 458,735 23 $ (107,475) (5) Items that may be reclassified subsequently to profit or loss: Exchange differences on translating foreign operations 40,401 5 988,475 138 313,354 15 (1,256,213) (59) Other comprehensive income (loss) for the period, net of income tax 218,758 29 1,051,848 147 772,089 38 (1,363,688) (64) TOTAL COMPREHENSIVE INCOME AND LOSS FOR THE PERIOD $ 436,976 57 $ 4,295,122 600 $ 469,170 23 $ 5,218,537 246 EARNINGS (LOSS) PER SHARE (Note 27) Basic $ 0.26 $ 3.88 $ (0.36) $ 7.88 Diluted $ 0.26 $ 3.85 $ (0.36) $ 7.81 The accompanying notes are an integral part of the consolidated financial statements. (Concluded)
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- 6 - HTC CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (In Thousands of New Taiwan Dollars) Other Equity Retained Earnings Exchange Unrealized Losses on Financial Assets (Accumulated Differences on at Fair Value Share Capital Deficits) Translating through Other Ordinary Unappropriated Foreign Comprehensive Shares Capital Surplus Legal Reserve Special Reserve Earnings Operations Income Total Equity BALANCE, JANUARY 1, 2025 $ 8,335,340 $ 16,277,565 $ 2,490,682 $ 3,080,480 $ (6,365,177) $ (920,620) $ (1,470,001) $ 21,428,269 Legal reserve in covering accumulated deficits - - (1,675,317) - 1,675,317 - - - Reversal of special reserve - - - (689,859) 689,859 - - - Net income for the nine months ended September 30, 2025 - - - - 6,582,225 - - 6,582,225 Other comprehensive income and loss for the nine months ended September 30, 2025 - - - - - (1,256,213) (107,475) (1,363,688) Total comprehensive income and loss for the nine months ended September 30, 2025 - - - - 6,582,225 (1,256,213) (107,475) 5,218,537 Issuance of shares due to exercise of employee share options 24,281 61,468 - - - - - 85,749 Disposal of investments in equity instruments at fair value through other comprehensive income - - - - (94,060) - 94,060 - BALANCE, SEPTEMBER 30, 2025 $ 8,359,621 $ 16,339,033 $ 815,365 $ 2,390,621 $ 2,488,164 $ (2,176,833) $ (1,483,416) $ 26,732,555 BALANCE, JANUARY 1, 2026 $ 8,360,211 $ 16,340,444 $ 815,365 $ 2,390,621 $ 1,973,957 $ (1,271,223) $ (2,012,684) $ 26,596,691 Legal reserve - - 197,395 - (197,395) - - - Special reserve - - - 893,286 (893,286) - - - Cash dividends - - - - (418,033) - - (418,033) Net loss for the nine months ended September 30, 2026 - - - - (302,919) - - (302,919) Other comprehensive income and loss for the nine months ended September 30, 2026 - - - - - 313,354 458,735 772,089 Total comprehensive income and loss for the nine months ended September 30, 2026 - - - - (302,919) 313,354 458,735 469,170 Issuance of shares due to exercise of employee share options 10,112 25,700 - - - - - 35,812 Disposal of investments in equity instruments at fair value through other comprehensive income - - - - 63,150 - (63,150) - BALANCE, SEPTEMBER 30, 2026 $ 8,370,323 $ 16,366,144 $ 1,012,760 $ 3,283,907 $ 225,474 $ (957,869) $ (1,617,099) $ 26,683,640 The accompanying notes are an integral part of the consolidated financial statements.
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- 7 - HTC CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) For the Nine Months Ended September 30 2026 2025 CASH FLOWS FROM OPERATING ACTIVITIES (Loss) income before income tax $ (247,859) $ 8,925,583 Adjustments for: Depreciation expense 136,560 160,884 Amortization expense 13,327 12,930 Expected credit loss (reversed) recognized on trade receivables (1,326) 908 Gain on financial assets at fair value through profit or loss (749,338) (11,850) Finance costs 84,049 189,124 Interest income (27,774) (427,869) Dividend income (280,134) (21,676) Share of the loss of associates and joint ventures accounted for using the equity method 27,352 221,584 Net gain on disposal of property, plant and equipment and investment properties (1,283) (4,161,290) Net gain on disposal of intangible assets (212,851) - Net gain on disposal of assets and licensing income (Note 25) - (8,045,926) Impairment loss on non-financial assets 27,300 543,611 Gain from lease modifications (7) (53) Changes in operating assets and liabilities Decrease (increase) in financial assets mandatorily classified as at fair value through profit or loss 17,730 (47,924) Decrease in notes and trade receivables 9,122 34,649 Decrease in other receivables 10,157 10,741 (Increase) decrease in inventories (348,341) 18,717 Decrease in prepayments 22,514 146,061 (Increase) decrease in other current assets (5,861) 7,550 Increase in other non-current assets (5,623) (6,223) Increase (decrease) in notes and trade payables 195,011 (520,450) Decrease in other payables (364,446) (293,780) Decrease in provisions (45,827) (83,485) (Decrease) increase in other current liabilities (269) 30,913 Cash used in operations (1,747,817) (3,317,271) Interest received 28,916 523,690 Interest paid (77,124) (209,471) Income tax paid (80,955) (679,477) Net cash used in operating activities (1,876,980) (3,682,529) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of financial assets at fair value through other comprehensive income (117,141) (888,538) Proceeds from disposal of financial assets at fair value through other comprehensive income 214,124 4,728 (Continued)
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- 8 - HTC CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) For the Nine Months Ended September 30 2026 2025 Purchase of financial assets at fair value through profit or loss $ (16,525,877) $ (28,564,588) Proceeds from disposal of financial assets at fair value through profit or loss 10,633,722 13,242,711 Acquisition of investments accounted for using equity method (9,299) (134,658) Payments for property, plant and equipment (11,646) (293,118) Proceeds from disposal of property, plant and equipment and investment properties 4,322 5,525,608 Increase in refundable deposits (4,891) - Decrease in refundable deposits - 23,944 Decrease in other receivables from disposal of investments 2,288,393 - Payments for intangible assets - (135,118) Proceeds from disposal of intangible assets 534,150 - Payments for investment properties (405) (833) Increase in other financial assets (39,508) - Decrease in other financial assets - 9,757,032 Dividends received 256,250 21,676 Proceeds from disposal of assets and licensing income (Note 25) - 8,045,926 Net cash (used in) generated from investing activities (2,777,806) 6,604,772 CASH FLOWS FROM FINANCING ACTIVITIES Increase in short-term borrowings 400,000 - Decrease in short-term borrowings - (3,400,000) Increase in long-term borrowings 3,781,605 - Repayments of long-term borrowings - (8,900,000) Increase in guarantee deposits received 2,185 - Decrease in guarantee deposits received - (87,642) Repayments of the principal portion of lease liabilities (17,137) (18,864) Payments for cash dividends (418,033) - Employee share options executed 35,812 85,749 Net cash generated from (used in) financing activities 3,784,432 (12,320,757) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 51,120 (892,919) NET DECREASE IN CASH AND CASH EQUIVALENTS (819,234) (10,291,433) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 2,909,535 14,239,209 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 2,090,301 $ 3,947,776 The accompanying notes are an integral part of the consolidated financial statements. (Concluded)