Kinpo Electronics said its core operations remained stable despite a first-quarter revenue drop, with global demand patterns, customer model changes, and seasonal softness driving the decline. The company expects a recovery in the second half of 2026 as Thailand's capacity expands, new customers come online, and multiple product lines return to growth.
Kinpo held an online investor conference on June 30, 2026, saying consolidated revenue in the first quarter of 2026 fell to NT$35.633 billion (US$1.12 billion), down more than 15% from both a year earlier and the previous quarter. The company said the main pressure came from a major storage-device customer shifting, starting in 2026, from a company-purchased SoC materials model to a customer-supplied one, which reduced reported revenue by about 6%. Seasonal weakness in consumer electronics also weighed on shipments of wearables and home appliances.
The company said April and May revenue totaled NT$24.5 billion, and that after adjusting for the customer-supplied materials effect, its core second-quarter business had returned to normal, with no meaningful decline observed.
First-quarter gross margin was 6.87%. Kinpo said that, excluding the customer-supplied materials impact, gross margin improved from both the first quarter and the fourth quarter of 2025, helped by continued product mix optimization. The company added that years of portfolio reshaping had narrowed swings in consolidated gross margin and had begun to support an upward trend.
Operating expenses did not rise in absolute terms, but the expense ratio increased because of lower revenue. Kinpo said this reflected its broader shift from pure contract manufacturing toward ODM, a strategy it has been pursuing since its chief technology officer took office at the end of 2025. Research and development spending rose by about 15% year over year.
Looking ahead, Kinpo said consumer electronics would likely contribute less in the second half than a year earlier, but should improve compared with the first half. Imaging products, led by printers, are expected to post stronger second-half shipments and revenue after a Thailand relocation tied to US-China tariff pressure was completed in the first half.
Storage devices are also expected to remain pressured in reported revenue terms by the customer-supplied materials arrangement, although shipment growth is still expected to continue. Network communications products should benefit from a larger scale following the integration of Chiasing into Nanha, along with new customer rollouts and production in new manufacturing countries.
Kinpo said capacity expansion and factory relocation work across its global sites had been completed and was now in mass production. It also said it is developing high-voltage direct current products, high-end server rack-related products, satellite receiver systems, and quantum bit control systems with SEEQC, with the first test version of the quantum project expected in 2026.
Article translated by Jingyue Hsiao and edited by Jerry Chen
