Tongtai Eyes Resilience with Strategic Moves

Tongtai Machine & Tool Co., Ltd. (Stock Code: 4526) held a board meeting today, during which several key resolutions were approved, including the consolidated financial report for FY2024, personnel adjustments, and measures to strengthen corporate governance. Tongtai stated that these initiatives aim to deepen corporate operations, enhance financial stability, and drive organizational restructuring to boost competitiveness. As part of its prudent financial planning, the Board of Directors resolved not to distribute dividends, ensuring efficient resource utilization and further reinforcing corporate resilience while continuing to promote technological innovation and global market expansion.

To further strengthen its governance framework, the board approved changes to the membership of the Sustainability Development Committee and adjustments to senior management. These actions are intended to optimize the management team, improve operational efficiency, and continue advancing environmental, social, and governance (ESG) initiatives in fulfillment of corporate social responsibility. At the recently concluded TIMTOS machine tool exhibition, Tongtai expanded its European business footprint through a strategic alliance with Quaser Machine Tools Inc., enhancing both technical integration and global market deployment to lay a more solid foundation for future growth.

In terms of financial and operational planning, facing global economic uncertainties and intensifying industry competition, Tongtai has been carefully evaluating its overall capital needs and has decided to retain greater operational flexibility. The company reported a loss for FY2024 due to international geopolitical factors; however, it signed a factory sale agreement earlier this year, with non-operating income expected to be recognized within the year. This move ensures effective resource allocation, strengthens core competitiveness, and aims to deliver long-term and stable returns for shareholders. In February, Tongtai reported revenue of NT$370 million, a 50.03% increase year-over-year. Cumulative revenue for the first two months reached NT$826 million, representing a 9.9% annual growth.

Additionally, the board resolved to convene the 2025 (114th) Annual General Shareholders’ Meeting on June 13. Looking ahead, Tongtai will continue to deepen its focus on smart manufacturing and international market development. Through sound financial management, governance enhancement, and strategic investment, the company aims to create long-term value for shareholders and all stakeholders.