Tongtai Stays Resilient, Eyes Global Expansion

Tongtai Machine & Tool Co., Ltd. (Stock Code: 4526) held its 2025 (114th fiscal year) Annual General Meeting of Shareholders today (June 13), presenting last year's financial and operational results as well as its business outlook for the new fiscal year. Tongtai stated that despite a sluggish industrial environment and weakened global demand in the past year, the company continued to optimize its operations, strengthen asset allocation, and actively launch strategic alliances and transformation investments to lay the groundwork for future growth.

Tongtai reported consolidated revenue of NT$5.739 billion for the 2024 fiscal year, representing a 25% decline compared to the previous year. The decline was attributed to market downturns, adjustments in its European subsidiaries, inventory write-downs, and provisions for bad debts. As a result, the company recorded a net loss of NT$910 million, with a loss per share of NT$3.56. Tongtai emphasized that these were one-time adjustments reflecting prudent asset restructuring and loss recognition under external pressures, aimed at enhancing long-term financial stability.

To support its capital structure and operational planning, the company signed an agreement at the end of last year to dispose of its second plant in Luzhu Science Park, with a total transaction value of approximately NT$1.52 billion. The transaction was completed and recognized in the second quarter of this year. This move not only provides greater flexibility in capital utilization but also supports technology upgrades and future strategic development. The Board of Directors has resolved not to distribute dividends for the 2025 fiscal year in order to retain operational flexibility in response to global uncertainties. Additionally, to promote talent retention and implement ESG practices, the company has already implemented employee salary adjustments this year to stabilize key personnel and enhance employer value.

In response to medium- and long-term market transformation trends, Tongtai has launched several strategic initiatives, including investing in Yeong Chin Machinery (YCM) by acquiring a 10% stake to expand global distribution channels and product line collaboration. Tongtai has also begun strategic collaboration with Quaser’s European subsidiary to strengthen its presence in the Eastern European market. Through resource integration and strategic alliances, the company is actively expanding into the smart manufacturing and mid-to-high-end application markets to strengthen its international competitiveness. Furthermore, driven by the AI boom and resulting surge in demand for server boards, along with the need to replace aging equipment, the PCB sector has seen increased demand in both China and Thailand. Tongtai’s shipments from July to October are currently operating at full capacity.

Tongtai stated that the current order visibility is approximately three to four months, with an order backlog of about NT$3 billion. The company aims to maintain performance above last year's level. Looking ahead, with the Chinese market stabilizing and transformation efforts beginning to yield results, operational momentum is expected to improve quarter by quarter. Tongtai will continue to adhere to its core strategies of financial prudence, technological innovation, and global deployment to create long-term, stable value for shareholders and all stakeholders.