Tongtai Strategically Invests in YCM to Expand Global Footprint and Strengthen Operational Structure
KAOHSIUNG, Taiwan, May 9, 2026 — Tongtai Machine & Tool Co., Ltd. (4526.TW) held its board of directors meeting today, approving its consolidated financial statements for the first quarter of 2026 along with several strategic resolutions, demonstrating its commitment to technological innovation, global expansion, and sustainable operations.
During the meeting, the Board approved the acquisition of a 10% equity stake in Yeong Chin Machinery Industries Co., Ltd. (YCM). Moving forward, the two companies will deepen collaboration in channel integration, complementary product offerings, technological cooperation, and resource integration. YCM has established a solid foundation in the Americas, while Tongtai has long cultivated markets across Taiwan, mainland China, and Asia. This strategic alliance is expected to enhance global market share and expand overseas presence by leveraging each company’s respective regional strengths, creating new growth opportunities, strengthening product portfolios, and enhancing customer service value.
In addition to the American market, Tongtai is actively reinforcing its presence in Europe. Capitalizing on industrial opportunities arising from European reconstruction, Tongtai initiated a strategic partnership this past March with Lerinc, the European subsidiary of Quaser Machine Tools Inc. Lerinc possesses extensive experience in the European market and specializes in machine tool and automation system integration. The initial phase of this partnership will focus on key Eastern European markets, including Germany, Poland, and Croatia, aiming to enhance the value and intelligent applications of Tongtai's products, strengthen channel collaboration, and expand into mid- to high-end market segments to drive future sales growth.
To support talent retention and implement ESG initiatives, the Board also approved a treasury share repurchase program to buy back up to 3 million shares on the open market, with a total value not exceeding NT$100 million. These shares will be designated for employee retention and reward incentives, thereby strengthening the company's employer value proposition.
From a financial perspective, despite the challenges posed by the global macroeconomic environment in 2024, the factory disposal agreement signed earlier this year is on track to be recognized in the second quarter. This will improve operational flexibility and capital allocation, supporting upcoming technology upgrades and global expansion. Concurrently, the Board resolved not to distribute dividends for the fiscal period to preserve resources for future operations and investments.
For the first quarter of 2026, Tongtai reported a 15% year-over-year revenue growth, delivering an after-tax net income of NT$32.91 million and an earnings per share (EPS) of NT$0.14. The company noted that while first-quarter performance remained partially affected by industry cycles and delayed end-market demand, momentum is expected to strengthen in the second half of the year as order quality and operational fundamentals continue to improve. Looking ahead, Tongtai will continue to advance smart manufacturing, strengthen strategic alliances, and maintain strict financial discipline to deliver long-term, stable value to shareholders and stakeholders.
