Tongtai Maximizes Financial Resilience and Drives Strategic Reintegration at 2025 Annual General Meeting
KAOHSIUNG, Taiwan, June 13, 2025 — Tongtai Machine & Tool Co., Ltd. (4526.TW) today convened its 2025 Annual General Meeting (AGM) to present its fiscal year 2024 financial results and outline its strategic roadmap for the upcoming cycles. Management emphasized that despite a protracted macro-economic downturn and decelerating global demand across the machine tool sector, Tongtai has aggressively moved to fortify its structural fundamentals, optimize asset allocation, and accelerate strategic investments to secure its next-generation growth vector.
For fiscal year 2024, Tongtai reported consolidated revenue of NT$5.739 billion, representing a 25% year-over-year decline. Impacted by severe cyclical headwinds, ongoing operational restructuring at its European subsidiaries, aggressive inventory write-downs, and provisions for doubtful accounts, the company recorded a net tax loss of NT$910 million, resulting in a loss per share (EPS) of NT$3.56. Tongtai underscored that these results stem primarily from non-recurring, one-off financial alignments. This deliberate and conservative approach to asset restructuring and comprehensive risk recognition is engineered to clean up the balance sheet and bolster long-term fiscal stability.
To significantly enhance its capital architecture, Tongtai completed the divestment of its Luzhu Science Park Plant 2 in the second quarter of this year for a total transaction value of approximately NT$1.52 billion. This strategic capital injection drastically improves liquidity, directly backing future technological scaling and global manufacturing expansion. Concurrently, the Board resolved to suspend dividend distributions for the fiscal period to preserve maximum capital flexibility amid global macroeconomic volatility. Furthermore, in alignment with its corporate ESG pillars and talent retention initiatives, Tongtai has enacted proactive salary adjustments this year to safeguard critical human capital and elevate its overarching employer value proposition.
Accelerating its mid-to-long-term market transformation, Tongtai has executed a series of high-impact strategic alliances. Notably, the company acquired a definitive 10% equity stake in Yeong Chin Machinery Industries (YCM) to expand global distribution networks and product-line synergy. Tongtai has also initiated collaborative frameworks with the European subsidiary of Buffalo Machinery, deepening its market penetration into Eastern Europe. Concurrently, the company's Printed Circuit Board (PCB) equipment division is capturing significant tailwinds from the global AI infrastructure surge. Driven by exponential demand for high-end server boards and systemic equipment replacement cycles in both the Chinese and Southeast Asian markets, Tongtai's PCB manufacturing capacity remains fully booked from July through October.
Currently, Tongtai maintains a resilient order backlog of approximately NT$3 billion, representing an order visibility of three to four months, with overall operational targets projected to outperform the previous fiscal year. Looking forward, as the Chinese market stabilizes and the company's organizational transformation gains traction, Tongtai expects operational momentum to compound quarter-over-quarter. Armed with rigid financial discipline, disruptive technical innovation, and a highly diversified global footprint, Tongtai is systematically positioned to deliver sustainable, long-term value for its shareholders and global stakeholders.
