Slides
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Primax Electronics 2Q26 Investor Conference PRIMAX TYMPHANY GROUP August 5 , 2026
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Primax 2Q 2026 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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1.60 1.55 0.95 1.30 1.26 2Q25 3Q25 4Q25 1Q26 2Q26 17.5% 17.0% 17.6% 15.9% 14.8% 4.8% 4.9% 4.2% 4.3% 3.7% 2Q25 3Q25 4Q25 1Q26 2Q26 Gross Margin Operating Margin 14,592 15,879 14,943 15,919 17,212 2Q25 3Q25 4Q25 1Q26 2Q26 2Q26 Results Highlights 2Q26 Financial Results Quarterly EPS (NT$)R&D Expense & R&D Expense as % of Revenue Quarterly Sales Revenue (NT$MN) (NT$mn)✓ Primax’s 2Q26 revenue amounted to NT$17.21bn, up 18% YoY, driven by strong consumer audio new projects ramp, coupled with professional audio project contributions ✓ 2Q26 gross margin declined to 14.8%, down 2.7 ppts YoY, mainly due to RMB appreciation, continued cost pressure and unfavorable product mix ✓ Primax continued to invest in technology innovation. R&D expense rose 2% YoY to NT$881 million, accounting for 5.1% of total revenue. Operating margin was 3.7% down 1.1ppt YoY and 0.6ppt QoQ ✓ 2Q26 EPS was NT$1.26, down 21.3% YoY and 3.1% QoQ Quarterly Results Highlights +18% YoY -21.3% YoY Quarterly Gross Margin and Operating Margin (NT$mn) 865 928 967 846 881 5.9% 5.8% 6.5% 5.3% 5.1% -30.0% -25.0% -20.0% -15.0% -10.0% -5.0% 0.0 % 5.0 % 0 200 400 600 800 100 0 120 0 140 0 2Q25 3Q25 4Q25 1Q26 2Q26
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Income Statement 2Q26 Financial Results (NT$mn) 2Q 2026 1Q 2026 2Q 2025 QoQ YoY Revenue 17,212 15,919 14,592 8.1% 18.0% COGS 14,656 13,388 12,044 Gross Profit 2,556 2,531 2,548 1.0% 0.3% Gross Margin (%) 14.8% 15.9% 17.5% -1.1ppt -2.7ppt Operating Expense 1,912 1,841 1,842 Operating Expense (%) 11.1% 11.6% 12.6% -0.5ppt -1.5ppt Operating Income 644 690 705 -6.7% -8.7% Operating Margin (%) 3.7% 4.3% 4.8% -0.6ppt -1.1ppt Non-operating Items 85 65 196 Income before Tax 730 755 902 -3.3% -19.1% Income Tax 149 155 168 Net Income 580 600 733 -3.3% -20.9% Net Margin (%) 3.4% 3.8% 5.0% -0.4ppt -1.6ppt NI attributed to Primax 580 600 733 -3.3% -20.9% EPS (NTD) 1.26 1.30 1.60 -3.1% -21.3% Gross Margin & Operating Margin (%) Pretax Margin & Net Margin (%) 6.2% 5.5% 3.7% 4.7% 4.2% 5.0% 4.5% 3.0% 3.8% 3.4% 2Q25 3Q25 4Q25 1Q26 2Q26 Pretax Margin Net Margin 1,334 1,445 -7.7% 4.0% 4.9% -0.9ppt 150 430 1,484 1,875 -20.8% 304 402 1,180 1,473 -19.9% 3.6% 5.0% -1.4ppt 1,180 1,473 -19.9% 2.55 3.21 -20.6% 1H26 1H25 YoY 33,130 29,360 12.8% 28,044 24,273 5,087 5,087 0.0% 15.4% 17.3% -1.9ppt 3,752 3,642 11.3% 12.4% -1.1ppt 17.5% 17.0% 17.6% 15.9% 14.8% 4.8% 4.9% 4.2% 4.3% 3.7% 2Q25 3Q25 4Q25 1Q26 2Q26 Gross Margin Operating Margin
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Balance Sheets 2Q26 Financial Results 2Q 2026 1Q 2026 2Q 2025 (NT$mn) Amount % Amount % Amount % Cash 11,331 21% 12,882 24% 12,584 26% Notes & Accounts Receivable 13,551 25% 11,736 22% 10,907 23% Inventory 12,478 23% 10,821 21% 8,493 18% Total Current Assets 39,381 72% 37,613 71% 34,238 72% Fixed Assets 9,554 17% 9,361 18% 7,921 17% Total Assets 54,653 100% 52,771 100% 47,700 100% Notes & Accounts Payable 17,054 31% 14,879 28% 11,874 25% S-T Borrowings 2,557 5% 3,378 6% 1,571 3% CPLTD 592 1% 594 1% 281 1% Total Current Liabilities 30,976 57% 27,380 52% 25,921 54% L-T Borrowings 544 1% 683 1% 1,154 2% Total Liabilities 34,238 63% 30,975 59% 30,278 63% Total Equity 20,415 37% 21,796 41% 17,422 37% Current Ratio 127% 137% 132% Net Debt-to-Equity Ratio -40% -40% -57% AR Turnover Days 68 65 68 AP Turnover Days 104 101 95 Inventory Turnover Days 76 74 68 Cash Conversion Cycle (CCC) 40 38 41 Current Ratio & Leverage (%) 132% 134% 136% 137% 127% 63% 61% 60% 59% 63% 2Q25 3Q25 4Q25 1Q26 2Q26 Current Ratio Total Liabilities-To-Assets Ratio Cash Conversion Cycle (CCC) 68 70 66 65 68 95 101 103 101 104 68 70 75 74 76 41 39 38 38 40 0 20 40 60 80 100 120 2Q25 3Q25 4Q25 1Q26 2Q26 AR Turnover Days AP Turnover Days Inventory Turnover Days CCC Days
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Statements of Cash Flows 2Q26 Financial Results Note: *Financial Assets Measured At Amortized Cost (NT$mn) 2Q 2026 1Q 2026 4Q 2025 3Q 2025 2Q 2025 From Operations (785) (628) 3,223 2,133 1,382 - Income Before Tax 1,484 755 3,306 2,756 1,875 - Depreciation & Amortization 756 375 1,403 1,048 708 - Notes & Accounts Receivable (2,519) (702) (24) (1,070) 216 - Notes & Accounts Payable 2,237 62 1,470 938 (1,473) - Inventory (1,721) (64) (1,153) 128 1,111 - Other Operating Sources (1,022) (1,053) (1,797) (1,667) (1,055) From Investment (1,229) (737) (2,551) (1,870) (1,211) - Fixed Assets (1,130) (695) (2,330) (1,657) (1,124) - Others & Amortized Cost* (99) (42) (221) (213) (87) From Financing 504 1,483 (2,054) (1,728) 116 - S-T Borrowings 859 1,634 252 415 242 - L-T Borrowings (230) (88) 174 261 251 - Cash Dividend (1,963) (1,963) - Other Financing Sources (126) (63) (517) (440) (377) Net Cash Position Change (1,511) 119 (1,383) (1,465) 288 Effect of Foreign Currency 553 474 (214) (859) (1,589) Cash At Beginning of Year 12,289 12,289 13,886 13,886 13,886 Ending Cash Balance 11,331 12,882 12,289 11,562 12,584 Capital Expenditure (NT$mn) 3,019 1,904 1,487 1,193 2,330 2021 2022 2023 2024 2025 Free Operating Cash Flows (NT$mn) 258 476 893 -1,323 -2,014 2Q25 3Q25 4Q25 1Q26 2Q26
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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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2Q26 Revenue Breakdown Performance by Applications ✓ Information Products reported 6% YoY and 12% QoQ increase, driven by customer pull-in. The contribution ratio decreased to 44% mainly due to strong growth of Smart Lifestyle segment ✓ Smart Lifestyle increased its revenue contribution to 25%, thanks to consumer audio new projects ramp, achieving 59% YoY growth ✓ Auto/ AIoT accounted for 31% of total revenue, mainly due to profession audio strong growth , up 12% YoY 44% 25% 31% 2Q26 Information Products Smart Lifestyle Auto / AIoT Information Products Smart Lifestyle Auto/ AIoT * Mix comparison is based on USD terms and may not add up due to rounding YoY Growth (%) Performance Summary 5.6% 58.9% 11.8% 2Q25 3Q25 4Q25 1Q26 2Q26 49% 18% 33% 2Q25
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3Q26 Outlook Revenue and Profit Outlook • Revenue is expected to grow at mid teens YoY, driven by consumer speaker new projects and Auto/AIoT products, while soft PC demand partially offsets overall growth • Product mix shifts and persistent cost pressures may weigh on gross margin • Opex ratio is likely lower than 3Q25 level Information Products Auto/ AIoT3Q26 Financials Smart Lifestyle • Based on current visibility, Information Products revenue likely to decline by low single digits YoY and QoQ • PC demand could be adversely affected by PC price hike due to rising component price • 3Q26 revenue is expected to grow high-teens YoY, driven by the consumer speaker new project ramps and strong shipment momentum • Party speakers are fresh growth driver, while expand soundbar customer base for Asia brands • 3Q26 revenue to grow mid teens YoY growth, while Auto/AIoT revenue contribution to increase QoQ and YoY • Professional audio and AI video conferencing to deliver very high double-digit YoY growth, Continuing to focus on automotive audio expansion
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Dividend Sustained High Dividend Payout Policy 3.00 3.10 3.90 4.00 4.20 4.568 70% 61% 64% 73% 75% 80% - 1.00 2.00 3.00 4.00 5.00 6.00 2020 2021 2022 2023 2024 2025 0% 10% 20% 30% 40% 50% 60% 70% 80% Cash Dividend Cash Dividend Payout 2020 2021 2022 2023 2024 2025 Cash Dividend 3.00 3.10 3.90 4.00 4.20 4.568 EPS 4.30 5.13 6.10 5.50 5.61 5.71 Payout Ratio 70% 61% 64% 73% 75% 80% June 30 Closing Price 57.0 61.8 65.8 94.2 72.9 66 Dividend Yield 5.3% 5.0% 5.9% 4.2% 5.8% 6.9% 5.9% 5.0%5.3% 5.0% 6.9% 4.2%
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ESG Commitment and Recognition • Setting emissions reduction target under SBTi validation, aiming for carbon neutral by 2040 and net zero emissions by 2050 • Targeting RE60 and implementing internal carbon pricing system in 2030 • Recognized as a Climate A-list (leadership) from CDP since 2024 • HR Asia award as one of the “Best Companies To Work For in Asia” since 2021 • Included in “Taiwan High Compensation 100 Index” for 10 consecutive years • Received the 2025 Taiwan iSports Enterprise certification from the Ministry of Sports • Included in the S&P Global Sustainability Yearbook since 2024 • Continuous ranked Top 5% of TWSE Corporate Governance Evaluation (2016-2017, 2019-2022, 2024) • Recognized as one of “Top 100 Sustainable Model Enterprises” by Taiwan Corporate Sustainability Awards (TCSA) since 2021 E S G ESG Highlights ✓ Dedicated ESG office led by Chairman, with annual reports submitted to Board of Directors regularly ✓ Primax ESG Score • Morningstar Sustainalytics – 11.3 (score of 0-100, with 0 being the best)
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Questions & Feedback
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http://primax.com.tw ir@primax.com.tw