Tongtai Invests in YCM, Expands Global Reach

Tongtai Machine & Tool Co., Ltd. (Stock Code: 4526) held a board meeting today and approved its consolidated financial report for FY2025 along with a series of strategic resolutions, demonstrating its commitment to driving technological innovation, global expansion, and sustainable operations.

One of the key decisions announced by the Board was Tongtai’s acquisition of a 10% stake in Yeong Chin Machinery Industries Co., Ltd. (YCM). The two companies will deepen cooperation through channel integration, complementary product offerings, technical collaboration, and resource sharing. With YCM having a solid foundation in the Americas and Tongtai long-established in Greater China and other parts of Asia, this marks their first strategic alliance and is expected to significantly boost both parties' global market share and international footprint. Tongtai emphasized that this partnership will create new global growth opportunities, enhance product portfolios, and increase overall service value.

In addition to efforts in Asia and the Americas, Tongtai is actively strengthening its position in Europe. Recognizing post-war reconstruction opportunities following the Russia-Ukraine conflict, Tongtai began a strategic partnership in March 2025 with Lerinc, the European subsidiary of Quaser Machine Tools Inc. Lerinc has deep roots in the European market, with strong technical integration capabilities in both machine tools and automation systems. The initial phase of this collaboration will focus on key Eastern European markets including Germany, Poland, and Croatia. The goal is to enhance the local value and smart applications of Tongtai products, deepen customer relationships, strengthen sales and distribution networks, and accelerate entry into mid- to high-end markets to drive overall sales momentum.

To support talent retention and implement ESG initiatives, the board also approved a share buyback program—up to 3,000 shares with a total budget not exceeding NT$100 million—designated for employee incentives and retention, thereby enhancing the company’s employer value.

On the financial front, although Tongtai was affected by global macroeconomic headwinds in FY2024, revenue from a previously signed factory sale is expected to be recognized in Q2, improving operational flexibility and funding for technical upgrades and global expansion. In addition, the board resolved not to distribute dividends for FY2025, in order to conserve resources for future operational and investment needs.

Tongtai’s revenue in Q1 2025 increased by 15% year-over-year, driven by overall growth. Net profit after tax reached NT$32.91 million, with earnings per share (EPS) of NT$0.14. The company noted that although the first quarter was still impacted by the industry cycle and delayed end-user demand, improved order quality and operational optimization are expected to drive a significant rebound in performance in the second half of the year.

Looking ahead, Tongtai will continue to advance smart manufacturing, strengthen strategic alliances, and expand its global footprint. Anchored by financial prudence, the company remains committed to creating long-term and stable value for shareholders and stakeholders alike.