Hsinchu, Taiwan – Coretronic Corporation (5371.TW) today announced its financial results for the first quarter of 2026. For the first quarter ended Mar. 31st, 2026, Coretronic reported consolidated sales revenue of NT$9,362 million. Affected by seasonal slowdown and a reduction in working days, revenue decrease by 17% compared to the prior quarter, but increased by 10.5% YoY. The consolidated gross margin for the first quarter was 15.6%. Due to changes in product mix and exchange rate fluctuations, it decreased by 2.5% from 18.1% in the previous quarter and by 1.9% from 17.5% in the same period last year. Operating loss for the first quarter was NT$142 million, reversing from a operating profit of NT$270 million in the previous quarter, turning from profit to loss. The main reasons include weaker market demand, rising costs, and exchange rate fluctuations. However, compare with the same period last year, the loss has narrowed significantly, decreasing by 34.9% from a net loss of NT$217 million in the same period last year. Net loss after tax totaled NT$117 million, net loss attributable to equity holders of the parent company was NT$119 million. Basic loss per share for the first quarter of 2026 were NT$0.30. Overall operating performance has come under pressure, not only due to the traditional off-season, but also because of demand deferrals driven by ongoing shortages of memory and IC components, as well as rising costs and uncertainties stemming from international conflicts. Looking ahead, the Company will continue to respond prudently to market changes, focus on the development of its core businesses, and steadily drive operational stabilization through strategies such as optimizing its product portfolio, actively expanding its market presence, and advancing technological upgrades, with the aim of gradually enhancing overall profitability. 

For the first quarter of 2026, the overall sales revenue of Energy Saving products amounted to NT$4,854 million, representing a 12% decrease QoQ, but up 25% YoY, due to slower demand during the traditional off-season. The shipments for this quarter reached 6.94 million units, a 16% decrease QoQ and a 1% decrease YoY. Regarding 2Q26 operation, Ms. Sarah Lin, President of Coretronic, stated that shipments of large-size OLED Monitor and the ODM automotive business continued to grow steadily. Together with the increasing shipments of AI NB models, overall shipment volume for Energy Saving products in the second quarter is expected to grow by 10% to 20% compared to the first quarter. 

For full-year 2026, Sarah maintains the expectation that overall shipment volume for Energy Saving products will grow by 10% to 20% YoY. She further pointed out that growth momentum for display-related products is currently driven by AI-enabled high-end applications, stable automotive demand, as well as the OLED and high-end gaming markets. In contrast, traditional application segments remain relatively cautious, impacted by the broader macroeconomic environment and inventory cycles. Amid multiple market challenges, Energy Saving products will continue to enhance service quality and execution efficiency for existing customers and orders to ensure steady operational progress. At the same time, the Company will actively expand its customer base, accelerate new model development, and continuously strengthening its innovation and R&D capabilities to enhance overall competitiveness and support long-term growth.

Due to the traditional off-season and a weak macroeconomic environment leading to soft demand, the sales revenue of Visual Solutions products reached NT$2,131 million in the first quarter, with shipments totaling about 133K units. This represents a decline of 19% and 15%, respectively, compared to the previous quarter, and a decline of 13% and 18%, respectively, compared to the same period last year. Regarding operations in the second quarter of 2026, Sarah noted that overall shipment volume for Visual Solutions products is expected to increase compared to the first quarter. This outlook is supported by tariff easing, rising demand from sporting events and project-based tenders, the onboarding of new projector customers, and the anticipated commencement of mass production for AI-powered logistics application products in the second quarter. However, geopolitical tensions in the Middle East have led to rising oil and raw material prices, which may place some pressure on projector shipment momentum. To mitigate these impacts, the Company has worked closely with customers to secure longer-term demand forecasts and has also entered into mid- to long-term procurement agreements with suppliers to ensure a stable supply of raw materials. 

Looking ahead to full-year 2026, Sarah expects overall operations to exhibit sequential QoQ growth. Nevertheless, given the persistently high level of external uncertainties that may affect market demand and the supply chain, the Company remains cautious regarding full-year shipment volume for Visual Solutions products and forecasts only modest YoY growth.