Dear Shareholders,

Amid a dynamic and uncertain operating environment, the Kinik Group has continued to steadily advance its global expansion. In April 2025, Kinik completed the acquisition of two grinding wheel plants in Japan and Thailand from the Mitsui Mining & Smelting Group. Combined with its existing diamond disc and wafer reclaim services, this acquisition further strengthened the overall competitiveness of its grinding business. Through technological integration and channel expansion, the Group not only enhanced the completeness of its product portfolio and technological depth, but also reinforced its marketing network in Japan and Southeast Asia, creating new growth opportunities.

In 2025, the Group’s consolidated revenue reached NT$8.149 billion, representing a 16.1% increase compared with 2024. Net income after tax amounted to NT$1.397 billion, and earnings per share (EPS) were NT$9.28. A comparison with the budget is summarized in the table below:

Looking ahead to 2026, demand for applications such as AI, high-performance computing, and cloud services remains robust, continuing to drive strong order momentum. As uncertainties surrounding tariff policies gradually ease and AI technologies continue to evolve, major technology companies are expanding capital expenditures and global deployment. However, geopolitical risks have not been fully eliminated, and new policy directions by the United States in tariffs, energy, and technology may still have far-reaching impacts on global supply chain cooperation. As a key global base for advanced semiconductor components and precision manufacturing, Taiwan must continue to strengthen its technological capabilities and supply chain resilience to maintain its competitive advantage amid global uncertainties.

Kinik will uphold its mission of “Pursuing Excellence and Creating Value,” leveraging its core grinding technologies and adopting a strategic approach of “Direction Leadership and Platform Integration” to deepen technological integration and value creation, while embracing the philosophy of shared prosperity. In addition to strengthening its core capabilities, the Company will position ESG as a key driver of long-term development, promoting green manufacturing, smart manufacturing, and digital transformation, and striving toward its vision of becoming “a leading green intelligent manufacturing and service center for grinding solutions.” To this end, the Company has formulated the following key initiatives:
1.Global Integration of Grinding Wheel Business and Advancement of Smart Manufacturing:
Continue integrating manufacturing and marketing resources across Taiwan, Japan, and Thailand to enhance cross-regional synergies, while advancing smart manufacturing through digitalization and automation to improve operational efficiency and overall competitiveness.
2.Enhancement of Key Product R&D and Capacity Expansion:
Actively invest in the development of key products required for advanced processes, such as diamond discs and test wafers, and expand production capacity in response to customer demand to strengthen supply chain resilience and consolidate market leadership.
3.Deepening ESG Governance and Upgrading Carbon Management:
The Company was selected as a member of the 2025 S&P Global Sustainability Yearbook and honored as an Industry Mover, recognizing the Group’s achievements in sustainability governance. In 2026, the Company will further enhance carbon management by extending its scope to overseas subsidiaries and suppliers, strengthening product carbon footprint management, introducing an internal carbon pricing mechanism, and linking decarbonization performance to incentive systems. In addition, the Company will continue to improve water resource management and promote circular economy practices to enhance its sustainability competitiveness.

Looking forward, Kinik will continue to build on technological innovation and global expansion, optimize its operational and financial structures, create long-term and stable value for shareholders, and work together with all stakeholders toward a sustainable future.

Finally, we would like to express our sincere gratitude to all shareholders for your long-term support and trust. We look forward to moving forward together and sharing the results of Kinik’s steady growth.