Slides
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Primax Electronics 4Q25 Investor Conference Feb 26. 2025
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Primax 4Q 2025 Financial Results Business Strategies and Growth Opportunities Investor Feedback and Q&A with Management AGENDA
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Safe Harbor And Disclaimer Primax’s presentation contains forward-looking statements subject to significant risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In this context, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Actual results may differ materially from those contained in the forward-looking statements due to risk and uncertainties resulting from a number of important factors. Such factors include, but are not limited to: our highly competitive environment; the cyclical nature of our business; our ability to develop new products; and our successful execution in new business developments, etc. All forward-looking statements in this presentation are based on information available to us as of the date hereof, and we undertake no obligation to update these forward-looking statements for new information, future events, otherwise, or update the reasons why actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future.
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71,650 79,241 60,488 58,244 60,182 3.3% 3.6% 4.4% 4.7% 4.4% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% - 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,00 0 2021 2022 2023 2024 2025 Revenue Net Profit Margin 2025 Results Highlights 2025 Financial Results Return On Equity (%) 15.0% 16.5% 14.1% 14.0% 13.0% 2021 2022 2023 2024 2025 Annual Gross Margin and Operating Margin Annual EPS (NT$) 5.13 6.10 5.50 5.61 5.71 2021 2022 2023 2024 2025 Annual Sales Revenue & Net Profit Margin (NT$mn) Annual Results Highlights 13.1% 13.9% 15.8% 17.0% 17.3% 3.9% 4.2% 4.5% 4.7% 4.7% 2021 2022 2023 2024 2025 Gross Margin Operating Margin Despite tariff and macro headwinds, Primax maintained its business resilience and achieved solid operational performance. 2025 revenue amounted to NT$60.1 bn, up 3.3% YoY Gross margin rose to 17.3% in 2025, up 0.3ppt, reaching a record high, while operating margin maintained at 4.7%, flat YoY EPS reached NT$5.71 in 2025, up 1.8% YoY, marking the second highest level of the company’s history 2025 ROE was 13%, with a 5-year average of 14.5%
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1.03 1.61 1.60 1.55 0.95 4Q24 1Q25 2Q25 3Q25 4Q25 17.4% 17.2% 17.5% 17.0% 17.6% 3.9% 5.0% 4.8% 4.9% 4.2% 4Q24 1Q25 2Q25 3Q25 4Q25 Gross Margin Operating Margin 13,218 14,768 14,592 15,879 14,943 4Q24 1Q25 2Q25 3Q25 4Q25 4Q25 Results Highlights 4Q25 Financial Results Quarterly EPS (NT$)R&D Expense & R&D Expense as % of Revenue Quarterly Sales Revenue (NT$MN) (NT$mn) Primax’s 4Q25 revenue amounted to NT$14.9bn, up 13% YoY, driven by AIoT and AI Surveillance product strength, coupled with consumer audio new projects ramp-up Benefiting from favorable product mix, 4Q25 gross margin reached new record high of 17.6%, up 0.6ppt QoQ and 0.2ppt YoY Primax dedicated to technology innovation, and 4Q25 R&D expense increased to NT$967 million, up 7.5% YoY, or accounted for 6.5% of total revenue. Operating margin was 4.2% up 0.3ppt YoY, but down 0.7ppt QoQ 4Q25 EPS was NT$0.95, down 7.8% YoY, due to non-operating loss from equipment impairment and investment loss Quarterly Results Highlights +13% YoY -7.8% YoY Quarterly Gross Margin and Operating Margin (NT$mn) 900 830 865 928 967 6.8% 5.6% 5.9% 5.8% 6.5% -10. 0% -8.0 % -6.0 % -4.0 % -2.0 % 0.0% 2.0% 4.0% 6.0% 0 200 400 600 800 1000 1200 1400 4Q24 1Q25 2Q25 3Q25 4Q25
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Income Statement 4Q25 Financial Results (NT$mn) 4Q 2025 3Q 2025 4Q 2024 QoQ YoY Revenue 14,943 15,879 13,218 -5.9% 13.0% COGS 12,312 13,175 10,914 Gross Profit 2,631 2,704 2,304 -2.7% 14.2% Gross Margin (%) 17.6% 17.0% 17.4% 0.6 ppt 0.2 ppt Operating Expense 2,009 1,929 1,786 4.2% 12.5% Operating Expense (%) 13.4% 12.1% 13.5% 1.3 ppt -0.1 ppt Operating Income 622 776 518 -19.9% 20.0% Operating Margin (%) 4.2% 4.9% 3.9% -0.7 ppt 0.3 ppt Non-operating Items (72) 106 94 Income before Tax 550 881 612 -37.6% -10.2% Income Tax 108 170 121 Net Income 442 712 492 -37.9% -10.1% Net Margin (%) 3.0% 4.5% 3.7% -1.5 ppt -0.8 ppt NI attributed to Primax 442 712 475 -37.9% -7.0% EPS (NTD) 0.95 1.55 1.03 -38.7% -7.8% Gross Margin & Operating Margin (%) Pretax Margin & Net Margin (%) 4.6% 6.6% 6.2% 5.5% 3.7% 3.7% 5.0% 5.0% 4.5% 3.0% 4Q24 1Q25 2Q25 3Q25 4Q25 Pretax Margin Net Margin 2,842 2,731 4.1% 4.7% 4.7% 0.0 ppt 464 676 3,306 3,407 -3.0% 680 680 2,627 2,727 -3.7% 4.4% 4.7% -0.3 ppt 2,627 2,557 2.7% 5.71 5.61 1.8% 2025 2024 YoY 60,182 58,244 3.3% 49,760 48,363 10,422 9,881 5.5% 17.3% 17.0% 0.3 ppt 7,580 7,150 6.0% 12.6% 12.3% 0.3 ppt 17.4% 17.2% 17.5% 17.0% 17.6% 3.9% 5.0% 4.8% 4.9% 4.2% 4Q24 1Q25 2Q25 3Q25 4Q25 Gross Margin Operating Margin
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Balance Sheets 4Q25 Financial Results 4Q 2025 3Q 2025 4Q 2024 (NT$mn) Amount % Amount % Amount % Cash 12,289 24% 11,562 23% 13,886 28% Notes & Accounts Receivable 11,007 21% 12,174 25% 10,743 21% Inventory 10,757 21% 9,476 19% 9,604 19% Total Current Assets 36,374 71% 34,974 71% 36,246 72% Fixed Assets 9,210 18% 8,528 17% 8,087 16% Total Assets 51,224 100% 49,239 100% 50,128 100% Notes & Accounts Payable 14,817 29% 14,285 29% 13,347 27% S-T Borrowings 1,775 3% 1,843 4% 1,441 3% CPLTD 544 1% 432 1% 258 1% Total Current Liabilities 26,848 52% 26,021 53% 26,090 52% L-T Borrowings 823 2% 1,018 2% 932 2% Total Liabilities 30,701 60% 30,088 61% 30,293 60% Total Equity 20,523 40% 19,151 39% 19,835 40% Current Ratio 136% 134% 139% Net Debt-to-Equity Ratio -47% -45% -58% AR Turnover Days 66 70 70 AP Turnover Days 103 101 96 Inventory Turnover Days 75 70 66 Cash Conversion Cycle (CCC) 38 39 40 Current Ratio & Leverage (%) 139% 146% 132% 134% 136% 60% 58% 63% 61% 60% 4Q24 1Q25 2Q25 3Q25 4Q25 Current Ratio Total Liabilities-To-Assets Ratio Cash Conversion Cycle (CCC) 70 68 68 70 66 96 96 95 101 103 66 69 68 70 75 40 41 41 39 38 0 20 40 60 80 100 120 4Q24 1Q25 2Q25 3Q25 4Q25 AR Turnover Days AP Turnover Days Inventory Turnover Days CCC Days
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Statements of Cash Flows 4Q25 Financial Results Note: *Financial Assets Measured At Amortized Cost (NT$mn) 4Q 2025 3Q 2025 2Q 2025 1Q 2025 4Q 2024 From Operations 3,223 2,133 1,382 210 5,622 - Income Before Tax 3,306 2,756 1,875 973 3,407 - Depreciation & Amortization 1,403 1,048 708 355 1,623 - Notes & Accounts Receivable (24) (1,070) 216 66 1,262 - Notes & Accounts Payable 1,470 938 (1,473) (903) 1,212 - Inventory (1,153) 128 1,111 797 (1,607) - Other Operating Sources (1,797) (1,667) (1,055) (1,079) (275) From Investment (2,551) (1,870) (1,211) (553) (1,270) - Fixed Assets (2,330) (1,657) (1,124) (547) (1,193) - Others & Amortized Cost* (221) (213) (87) (6) (76) From Financing (2,054) (1,728) 116 420 (2,080) - S-T Borrowings 252 415 242 170 630 - L-T Borrowings 174 261 251 309 477 - Cash Dividend (1,963) (1,963) (1,852) - Change of Non-Controlling Interest 0 (1,092) - Other Financing Sources (517) (440) (377) (59) (243) Net Cash Position Change (1,383) (1,465) 288 78 2,272 Effect of Foreign Currency (214) (859) (1,589) 260 709 Cash At Beginning of Year 13,886 13,886 13,886 13,886 10,905 Ending Cash Balance 12,289 11,562 12,584 14,224 13,886 Capital Expenditure (NT$mn) 3,019 1,904 1,487 1,193 2,330 2021 2022 2023 2024 2025 Free Operating Cash Flows (NT$mn) 4,429 -337 258 476 893 4Q24 1Q25 2Q25 3Q25 4Q25
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Product Portfolio Comprehensive One-stop-shop Solutions Information Products Auto/ AIoT Smart Lifestyle • PC Peripherals (Mouse & KB) • Gaming mouse/ keyboard • Keyboard Module (KBM) • NB Camera • Opto-Mechanical Electronics (OME) • Wireless Charging / Docking • Printer MFP • Bluetooth Speaker • Headphone • Home Speaker / Entertainment • Sound bar • Party Speaker • AIoT Solutions • AI Surveillance Camera • Industrial AIoT Gateway • Automotive Camera / Audio / Speaker • Professional Speaker • Install Speaker • Custom Install • Content Creator • Audio Engineer (Transducer/ Amplifier Module/ DSP) • AI Conferencing
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4Q25 Revenue Breakdown Performance by Applications Information Products accounted for 49% of total revenue, supported by Window 11 refresh and year end pull-in demand, resulting 10% YoY growth Smart Lifestyle maintained its revenue contribution at 19%. Revenue returned to positive growth (+21% YoY) thanks to consumer audio new project ramp Auto/ AIoT mix rose to 31%, fueled by robust AIoT products shipments and increased contribution from new projects, achieving 44% YoY gain 54% 19% 26% 4Q24 49% 19% 31% 4Q25 Information Products Information Products Smart Lifestyle Auto/ AIoT * Mix comparison is based on USD terms and m ay not add up due to rounding YoY Growth (%) Performance Summary 9.9% 21.1% 43.7% 4Q24 1Q25 2Q25 3Q25 4Q25
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1Q26 Outlook Revenue and Profit Outlook • Revenue is expected to grow slightly YoY, driven by AIoT and consumer speaker projects, while soft PC demand partially offsets overall growth • Given rising component costs, RMB headwinds, and a higher mix of smart lifestyle segment, GM may face some pressure • Opex ratio is likely to remain at 2025 levels Information Products Auto/ AIoT1Q26 Financials Smart Lifestyle • Information Products revenue to decline high single digit YoY • PC demand could be adversely affected by PC price hike due to rising component price • MFP printer to decline double-digit YoY • 1Q26 likely to deliver high- teens YoY growth, driven by consumer speaker new project ramps • Party speakers are fresh growth driver, while expand soundbar customer base for Asia brands • Auto/AIoT to grow robustly, delivering double-digit YoY, fueled by new projects ramp up and solid AIoT demand • Auto/AIoT segment mix is expected to increase both QoQ and YoY, providing long-term growth driver
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Dividend Sustained High Dividend Payout Policy 2.40 3.00 3.10 3.90 4.00 4.2050% 70% 61% 64% 73% 75% - 1.00 2.00 3.00 4.00 5.00 6.00 2019 2020 2021 2022 2023 2024 0% 10% 20% 30% 40% 50% 60% 70% 80% Cash Dividend Cash Dividend Payout 2019 2020 2021 2022 2023 2024 Cash Dividend 2.40 3.00 3.10 3.90 4.00 4.20 EPS 4.80 4.30 5.13 6.10 5.50 5.61 Payout Ratio 50% 70% 61% 64% 73% 75% June 30 Closing Price 47.9 57.0 61.8 65.8 94.2 72.9 Dividend Yield 5.0% 5.3% 5.0% 5.9% 4.2% 5.8% 5.9% 5.0%5.3% 5.0% 5.8% 4.2%
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Questions & Feedback
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http://primax.com.tw ir@primax.com.tw