At a glance. Kinpo's Q1 2026 investor conference was a mix-shift quarter: revenue down more than 15%, gross margin up to 6.87%, EPS flat at NT$0.35. The 800V-adjacent item is a single sentence — HVDC and high-end server racks as an extension of EV-charger power management. Q&A ignored it. The questions were about quantum.
What changed this quarter
Reported sales fell for two separate reasons. Consumer electronics hit a seasonal trough and a customer's sell-in plan cut shipments. Storage was hit on the face of the P&L because a major customer switched the SoC to consigned material, taking about 6% off group revenue. Management says the underlying storage business is still growing once that is added back.
Imaging recovered. The China-to-Thailand printer move, done to get around US-China tariffs, was finished in the second half of last year and is now in stable production. Imaging's share of sales bounced from 19.19% in Q4 2025 to 26.35%.
R&D was raised 15% year on year as the company pushes from OEM into ODM — high-end server racks, multi-orbit satellite ground equipment, and a qubit-control system. Second-half revenue and gross margin are both guided above the first half.
The numbers
| Q1 2026 | Value | Change |
|---|---|---|
| Revenue | NT$35.63bn (~US$1.13bn) | −15.03% YoY, also down >15% QoQ |
| Gross profit | NT$2.45bn (~US$78m) | — |
| Gross margin | 6.87% | up vs last year and vs last quarter |
| Operating expense | NT$1.57bn (~US$50m) | ratio up on the smaller revenue base; R&D +15% YoY |
| Net income (parent) | NT$527m (~US$16.7m) | — |
| EPS | NT$0.35 (~US$0.01) | flat YoY |
Gross margin rose even after putting the consigned SoC back into the revenue denominator, so the improvement is mix, not arithmetic.
Inventory days went from 48 a year ago to 66, on pre-buying against higher material prices and shortages. Payables were stretched to 81 days, which held the cash cycle at 67 days, in line with last year. Book value per share was NT$14.92, down from NT$15.1 at year-start, because a NT$0.6 cash dividend exceeded the quarter's EPS. Quarter-end assets were NT$125.7bn (~US$4.0bn).
NVIDIA 800V read-through
Treat this as a non-print.
Management's only HVDC comment was that it is extending power-management technology accumulated in EV chargers into HVDC and high-end server racks. There was no 800V, no wattage, no customer, no sample date, and no revenue. Q&A did not follow up.
Kinpo also noted cooperation with AcBel on power products and chargers, which is group colour, not a rack design-win. Until a later call puts a number on it, Kinpo is an EMS/ODM with an R&D line-item, not an 800V name.
Segments that moved
| Line | Q1 2026 share | Notes |
|---|---|---|
| Consumer electronics | 37.65% | down from 45% in 2025; wearables off-season plus a customer sell-in cut |
| Imaging | 26.35% | back to last year's run-rate after the Thailand move |
| Storage | 23.09% | ~6pp of group sales lost to a consigned SoC; underlying volume still up |
| Networking | 12.02% | integration after the networking subsidiary absorbed a Korean unit in April 2025 |
Thailand is the main plant: printers have transferred, and SSD, automotive electronics and server-related lines are being added. The Philippines, US, Mexico and Brazil plants have taken on networking, chargers and mobile radios.
Guidance
- Second half 2026 revenue and gross margin both expected to exceed the first half, on volume plus mix.
- Consumer slightly down versus 2025, but better than first-half 2026.
- Imaging better than the first half and better than last year, now that the move is done.
- Storage growing in volume; reported revenue grows once consigned material is added back.
- Networking growing on new customers and new production sites.
No numbered group target.
Management Q&A
Q: Can you say more about the quantum-computer collaboration, and is the first version hardware or a system?
A: Kinpo is developing a full qubit-control system covering hardware, software and services, not a single hardware unit. The aim is better control and integration between a quantum computer and a conventional room-temperature machine such as a server, including customisation for different quantum technologies.
Q: How long is the test period for the qubit-control system?
A: Testing is expected to take 1–3 years. The system has to be tuned and qualified against different architectures, including semiconductor and trapped-ion machines.
Q: Of the three mainstream quantum technologies, which can be finished first, and who is the trapped-ion partner?
A: The control system is designed to work with all mainstream technologies; work will start with semiconductor-architecture quantum computers, because system-level control is similar even if the physics differs. A specific trapped-ion partner was not named. Management described a complete machine as about 1,000 qubits, each needing about 3–5 connections, which is why the partner work is aimed at simplifying that interconnect.
Q: Outlook for the main product lines in the second half?
A: Apart from consumer products, which are expected to be slightly down versus the year-ago second half, imaging, storage and networking are all expected to grow. Consumer should still be better in H2 than in H1; imaging improves further in H2 after the factory move; storage grows if customer-supplied materials are added back; networking is growing on new customers.
Q: Is there a plan to co-develop a quantum processor with CQ?
A: Work with the partner, referred to as Sic, is split: that partner focuses on the quantum processor and its superconducting connection, while Kinpo develops the back-end control system that ties it to existing computers. Kinpo is taking on part of the development to speed the programme; a first version is due in the second half for testing.
Q: Will second-half revenue and gross margin be better than the first half?
A: Yes — the hope is that revenue growth and ongoing mix changes lift both second-half revenue and gross margin together.
Disclaimer
English notes on Kinpo Electronics' investor conference of 30 June 2026, covering Q1 2026. Figures are as presented by management and have not been independently verified. USD equivalents are approximate at about NT$31.5 to the dollar. For reference only; not investment advice.