Hsinchu, Taiwan – Coretronic Corporation (5371.TW) today announced its financial results for the second quarter of 2026. For the second quarter ended Jun. 30th, 2026, Coretronic reported consolidated sales revenue of NT$10,035 million, representing an increase of 7% QoQ and 2% YoY. The growth was primarily driven by a recovery in shipments of Energy Saving products and continued revenue growth from the Company's subsidiaries. The consolidated gross margin was 15.3% in the second quarter, down 0.3 percentage points from 15.6% in the previous quarter and 2.8 percentage points from 18.1% in the same period last year, mainly due to changes in product mix. Operating loss for the second quarter was NT$83 million, an improvement from the operating loss of NT$142 million recorded in the previous quarter, primarily attributable to sequential revenue growth in both the Energy Saving and Visual Solutions product lines. In the same period last year, the Company recorded a consolidated operating income of NT$51 million. Net loss after tax totaled NT$74 million, while net loss attributable to equity holders of the parent company totaled NT$77 million. The loss narrowed significantly from the NT$119 million net loss attributable to equity holders of the parent company reported in the previous quarter. Basic loss per share for the second quarter of 2026 was NT$0.2. 

For the first half of 2026, Coretronic reported consolidated sales revenue of NT$19,397 million, representing an increase of 6% compared to the consolidated revenue of NT$18,332 million in the first half of 2025. The consolidated gross margin for the first half of the year was 15.5%, a decrease of 2.4 percentage points compared to 17.9% in the same period last year, resulting from the changes in product mix. The operating loss was NT$225 million, an increase compared to the operating loss of NT$167 million in the same period last year. The net loss was reported at NT$191 million, compared with net income after tax of NT$73 million in the same period last year. The net loss attributable to equity holders of the parent company was NT$196 million, compared with net income attributable to equity holders of the parent company of NT$77 million in the same period last year. The basic loss per share for the first half of this year was NT$0.5, lower than the EPS of NT$0.2 in the same period last year. 

Overall operating performance in the first half of the year were under pressure due to the seasonal slowdown, deferred customer demand resulting from shortages of memory and IC components, rising costs, and uncertainties in the global economic and geopolitical environment. Looking ahead, the Company will continue to respond prudently to evolving market conditions while maintaining its focus on core businesses. Through product mix optimization, expanded market presence, and ongoing technological innovation, the Company aims to steadily enhance its operational resilience and overall profitability.

For the second quarter of 2026, the overall sales revenue of Energy Saving products amounted to NT$5,213 million, representing a 7% increase QoQ and a 23% increase YoY. The shipments for this quarter reached 7.18 million units, up 3% QoQ and YoY. The sales revenue of Energy Saving products in the first half of 2026 was about NT$10,067 million, a 24% YoY increase, while the shipment volume totaled around 14.12 million units, up 1% YoY. Regarding 3Q26 outlook, Ms. Sarah Lin, President of Coretronic, stated that TV/PID products are expected to enter the traditional peak inventory stocking season, while large-size OLED Monitor and the ODM automotive business continued to grow steadily. However, NB products continue to face challenges from tight supplies of memory and key components, along with rising prices. As a result, brand customers remain relatively cautious in placing orders. Consequently, overall Energy Saving products shipments are expected to post only a slight increase compared with the second quarter. 
Sarah further noted that demand in the display market remains mixed. Premium applications, OLED products, and automotive displays continue to be the primary growth drivers, while demand for traditional IT and consumer electronics products remains cautious. The Energy Saving Products Business Group will continue to strengthen collaboration with existing customers, actively expand into new customers and product segments, and enhance its market competitiveness through R&D innovation and product portfolio optimization, thereby supporting sustainable long-term growth. Looking ahead to full-year 2026, Sarah expects overall shipments of the Energy Saving products to increase slightly compared with the previous year. Supported by continued product mix optimization, the average selling price (ASP) is expected to improve YoY, contributing to stable overall business performance.

In the second quarter, sales revenue of Visual Solutions products reached NT$2,180 million, representing a 2% increase QoQ. Shipments totaled 120K units, drop 10% QoQ. Compared with the same period last year, revenue and shipment volume declined by 16% and 32%, respectively. For the first half of 2026, the sales revenue was NT$4,310 million, with shipments totaling around 253K units, representing YoY declines of 14% and 25%, respectively. The decreases were primarily attributable to exchange rate fluctuations, changes in reciprocal tariff policies, and the impact of geopolitical developments on the global economy. Regarding the outlook for 3Q26, Sarah stated that shipments of home entertainment projectors are expected to moderate due to seasonal factors, including the end of the summer vacation period and the conclusion of major sports events. Nevertheless, demand for commercial projectors targeting enterprise customers and large venues continues to strengthen, which is expected to drive overall Visual Solutions products shipments higher compared with the previous quarter.

Looking further ahead, Sarah noted that although concerns over U.S. tariff policies have gradually eased, market demand is expected to remain affected by geopolitical tensions in the Middle East, persistently high oil prices, and ongoing inflationary pressures. In addition, uncertain currency fluctuations, as well as supply chain resource constraints driven by strong AI-related demand, may continue to pose challenges to overall operating performance. Regarding business development prospects, the Pro-AV business has performed in line with expectations. However, given the slowdown in China's economic growth, the Company remains cautious about the market outlook for the second half of the year. AI-powered logistics application products will continue mass production while development of next-generation products is progressing in parallel to support future growth. As for the consumer projector market, end-market demand has yet to recover meaningfully, and any near-term improvement is still expected to rely primarily on promotional activities.

Looking ahead to full-year 2026, Sarah maintains the view that the overall operating performance will continue to improve on a quarter-by-quarter basis. However, given the persistent uncertainties surrounding the global economic and geopolitical environment, together with potential fluctuations in market demand and supply chain conditions, full-year shipments of Visual Solutions products are expected to post only slight YoY growth.