U-Tech Technology Holds 2026 Q1 Investor Briefing

1. Date of Event: July 21, 115 2. Company Name: The Company 3. Relationship with Company (Please enter 'The Company' or 'Subsidiary'): Not applicable 4. Cross-shareholding Ratio: Not applicable 5. Reason for Occurrence: Not applicable 6. Response Measures: Not applicable 7. Other Matters to be Clarified (If the subject of the event or resolution is a publicly issued company or above, this significant information also meets the criteria under Article 7, Paragraph 9 of the Enforcement Rules of the Securities and Exchange Act regarding matters having significant impact on shareholders' rights or securities prices):

U-Tech Technology Q1 Gross Margin Rises to 28% – Optimized Product Mix and North American Expansion Drive Momentum

U-Tech Technology (6928) held its 2026 Q1 investor briefing today (21st), presenting first-quarter operational results and future outlook.

In Q1 2026, consolidated revenue reached NT$548 million, a 61% increase from the previous quarter. Gross margin improved to 28%, up 2 percentage points from 26% in the same period last year. The company stated that the sequential revenue recovery was primarily due to project deliveries progressing as scheduled and improved product shipment timing.

Although certain application markets were still affected by customer procurement rhythms and project delivery timelines, overall profitability quality has gradually improved, driven by a higher proportion of high-value-added products, continuous optimization of product mix, and enhanced procurement, production, and operational efficiency.

U-Tech Technology emphasized its ongoing transformation from a traditional industrial computer (IPC) hardware supplier into a Mission-Critical @Connectivity Solution Provider. The company is focusing on high-value-added and high-reliability application markets, integrating core capabilities in rugged computers, satellite communications, unmanned systems, and system integration to deliver mission-critical application solutions tailored to customer needs.

The company noted that its current operational strategy has gradually shifted from pursuing revenue scale to balancing product mix, profitability quality, and long-term competitiveness. These transformation outcomes are increasingly reflected in product composition and operational structure. The Q1 gross margin improvement was not due to a single factor but resulted from a combination of increased share of high-value-added products and mission-critical connectivity solutions, along with improved procurement, production, and overall operational efficiency, collectively enhancing profitability. Moving forward, the company will continue optimizing its product portfolio, increasing the proportion of high-value applications to further strengthen overall profitability.

By application market, maritime remains the primary revenue source. However, first-quarter revenue declined year-on-year due to customer procurement timing, transition between old and new products, and project delivery schedules. In contrast, the satellite applications market benefited from project deliveries progressing as planned, achieving approximately 65% year-on-year revenue growth. Additionally, the inclusion of the U.S. subsidiary in consolidated financials has continued to contribute to group revenue, driving diversification in revenue sources and application structures.

U-Tech Technology stated that since completing the acquisition of its U.S. subsidiary, it has been advancing integration efforts and gradually realizing the benefits of its North American platform. Beyond contributing to group revenue, the U.S. subsidiary plays a crucial role in establishing local manufacturing, technical service, and customer support capabilities in North America, further strengthening the group's market presence. The company has begun gradually implementing local production in North America according to customer demand, enhancing delivery flexibility, supply chain resilience, and local service efficiency. This also addresses customers' demands for supply chain localization, continuously improving overall market competitiveness.

Furthermore, the U.S. subsidiary recently obtained AS9100D Aerospace Quality Management System certification. The certification covers core processes including customized flat-panel display integration, design and manufacturing, and optical bonding. This certification further strengthens the group's manufacturing and quality management capabilities in high-reliability mission-critical application fields, enhances technical integration capabilities in extreme environments, deepens positioning in high-value and North American markets, and gradually establishes a brand identity characterized by high barriers to entry and high reliability.

In terms of long-term technology development, U-Tech Technology has been approved to enter the AI Industry Zone at the Shalun Smart Green Energy Science City. Site setup and related planning are currently underway. The company plans to use the AI zone as a research, development, and validation base for artificial intelligence, unmanned systems, and high-reliability mission-critical applications. It will progressively advance technology R&D, testing and validation, and application field deployment in phases according to overall operational planning, continuously building long-term technological capabilities and competitive advantages.

Looking ahead, U-Tech Technology stated it will continue focusing on mission-critical connectivity solutions, high-value-added products, and global market expansion. It will deepen strategic initiatives in satellite communications applications, unmanned systems, North American local operations platforms, and the AI zone, continuously enhancing capabilities in high-reliability products, local manufacturing, and system integration. With technical integration in extreme environments as its core, the company will expand into high-reliability mission-critical and high-barrier application markets, optimize product mix, improve operational efficiency and profitability quality, and gradually establish a brand positioning with technological barriers and differentiated advantages to strengthen long-term competitiveness.