WPG (TWSE:3702) Attend Online Investor Conference Held by KGI SECURITIES Today

2026/08/18

WPG reported record-high second-quarter revenue, operating profit, net income and EPS, all exceeding its financial guidance. Second-quarter revenue reached NT$456.211 billion, up 44.1% quarter-over-quarter and 82.2% year-over-year. Driven by strong shipment momentum and continued optimization of the product mix, operating profit reached NT$11.954 billion, up 41.1% quarter-over-quarter and 143.7% year-over-year, with an operating margin of 2.62%. Supported by core business momentum, quarterly net income surpassed NT$8 billion for the first time, reaching NT$8.62 billion, up 55.4% quarter-over-quarter and 294.4% year-over-year, with EPS of NT$5.12. For the first half of 2026, cumulative revenue reached NT$772.7 billion, up 54.8% year-over-year. Both operating income and net income exceeded full-year 2025 levels, with operating income surpassing NT$20 billion for the first time to reach NT$20.425 billion, up 122.2% year-over-year, and net income reaching NT$14.169 billion, up 246.9% year-over-year, with EPS of NT$8.42.

Second-quarter return on equity (ROE) and return on working capital (ROWC) were 38.5% and 16.1%, respectively.

The strong performance was primarily driven by robust demand across power management, servers, networking equipment, energy storage systems and high-density connectivity components. Demand for automotive electronics and industrial control applications also continued to progress steadily. Meanwhile, demand for high-value-added services, including smart warehouse management and information system integration, expanded in parallel. The simultaneous advancement of diverse end-market applications and software and hardware services across markets has created broad-based structural growth momentum.

For the third quarter of 2026, based on an exchange rate assumption of NT$32.2 to the U.S. dollar, WPG forecasts revenue of NT$460 billion to NT$500 billion, gross margin of 4.35% to 4.55%, operating margin of 2.78% to 2.91%, net income of NT$9.502 billion to NT$10.718 billion, and EPS of NT$5.45 to NT$6.15.

To support its expanding operational scale and future funding needs, the Board of Directors resolved on August 11 to raise capital through the issuance of Convertible Bond (CB). Having assessed that CB offer lower potential equity dilution than Global Depositary Receipts (GDR) for cash, while providing financing benefits and greater flexibility in capital structure. The financing will support operational needs while taking into consideration the interests of existing shareholders. Accordingly, the Board resolved to issue the fourth domestic unsecured convertible corporate bonds.

Table: WPG Holdings Ltd. Consolidated Financial Statements for the six months ended June 30, 2026 (In brief)

Units：NT$million

IR contacts：Cliff Yuan/ Zoe Peng

Tel：886-2-2191-0068 ext.85268/ext.85262

Email address:  ir@WPGholdings.com

Corporate website:  www.WPGholdings.com