2025 Business Report

In 2025, E Ink's consolidated revenue reached NT$36.116 billion, representing a year-over-year increase of 12.3% and the highest level in 14 years. The operating margin was 29.6%, the profit margin was 29.1%, net income totaled NT$10.515 billion, and earnings per share (EPS) reached NT$9.14. All key profitability metrics- the operating margin, profit margin, net income, and earnings per share (EPS) improved steadily alongside revenue growth, reflecting improvements in overall operational quality.

Overall operations indicate that the penetration of ePaper applications across diverse sectors, including consumer electronics, smart retail, and commercial display, continued to increase. The operating structure has gradually evolved from a single-application model to a cross-market and cross-application growth model. Benefiting from product mix optimization, improvements in process efficiency, and continued refinement of cost control measures, the Company's profitability has demonstrated a sustained improvement trend. These results are not a reflection of short-term volatility, but rather stem from structural adjustments in product portfolio, operational efficiency, and capital utilization, indicating that the overall operational foundation is gradually maturing and providing a solid basis for subsequent strategic initiatives and growth planning.

Industry Environment and Market Overview

In 2025, the global economic environment remained highly dynamic. Geopolitical tensions, inflationary pressures, monetary policy adjustments, and supply chain restructuring converged to create headwinds, posing challenges to international trade and investment decisions. Policy directions in certain countries and potential tariff measures have also increased uncertainties for multinational manufacturing and technology industries.

The display industry structure continues to develop toward both high-energy-consumption and low-energy-consumption technologies. With its ultra-low power consumption, reflective display characteristics, and eye-friendly features, ePaper is evolving from a niche display technology into a low-carbon display solution with long-term environmental strategic significance under the trends of net-zero transformation and sustainable development, and is demonstrating long-term growth potential across diverse application scenarios.

Major Products and Application Development

The Company's core business are ePaper-related products and solutions, with applications covering consumer electronics, smart retail, and commercial and public information displays. In 2025, revenue remained primarily driven by core ePaper products. As application scenarios continued to expand, the revenue structure has become increasingly diversified, helping to reduce the impact of fluctuations in any single market on overall operations.

In consumer electronics applications, demand for color eReaders and eNotes remained stable. The adoption of E Ink Kaleido™ 3 and E Ink Gallery™ 3 technologies enhanced product differentiation, driving replacement demand and new product demand.

In smart retail, the adoption of Electronic Shelf Labels (ESL) continued to expand across major retail channels in Europe, the Americas, and Asia Pacific. Penetration rates rose steadily, with adoption extending into small- and medium-sized retailers.

In IoT and commercial display applications, medium- and large-sized color ePaper signage has gradually become an important option for low-carbon advertising and public information display. Following the launch of the 75-inch E Ink Kaleido™ 3 outdoor large-size color ePaper signage, the flexibility and feasibility of outdoor and digital out-of-home (DOOH) applications were further enhanced.

R&D Investment and Technology Development

In 2025, R&D efforts focused on the advancement of core ePaper technologies and the transition of key platforms from technology development to commercialization, while continuing to improve display quality, color performance, system stability, and process maturity.

In the color ePaper platform, technologies including the 75-inch E Ink Kaleido™ 3, E Ink Spectra™ 6, and E Ink Marquee™ achieved key milestones according to schedule and were gradually introduced into commercial display and public information applications, expanding product application possibilities. R&D investment was maintained at a strategically significant level and was recognized by awards such as the Taiwan Excellence Award and the SDIA Award.

External Environment and Risk Management

In response to geopolitical developments, policy environments, and supply chain changes, the Company continues to promote supply chain diversification and localized operational deployment to reduce dependence on any single market or policy condition and to maintain the stability of global supply and services.

The aforementioned risk factors may affect the Company's short-term order intake, raw material costs, capital expenditure schedules, and operational flexibility. The Company has incorporated these risks into its mid- to long-term operational risk assessment framework and, through periodic reviews and management mechanisms, adjusts response measures in a timely manner to mitigate potential impacts on overall operations.

Financial Structure and Budget Implementation

In 2025, operating results continued the growth momentum of the ePaper business, demonstrating stable performance in revenue scale, margin structure, and profitability. As the proportion of high value-added products increased and the benefits of manufacturing and cost management gradually emerged, gross margin and operating margin remained at competitive levels.

In terms of financial structure, total assets reached NT$107.245 billion. Cash and financial assets remained strong, supporting flexible capital allocation. Stable operating cash flow supported R&D investment, capacity expansion, and process upgrades, while maintaining financial soundness.

2025 Capital allocations were directed toward capacity expansion, process upgrades, and investment in key R&D equipment. These investments were executed in accordance with internal review and governance mechanisms, while balancing market demand expectations and financial prudence.

Sustainability Governance and Operational Integration

In terms of sustainability performance, E Ink achieved a score of 93, ranking the highest in the global Electronic Equipment, Instruments & Components industry for the third consecutive year. The Company also maintained leadership with double A ratings in CDP Climate Change and Water Security, while the proportion of renewable energy usage increased to RE67, indicating that climate governance and resource management have been more closely integrated into daily operational decision-making.

As global regulations relating to sustainable development, energy transition, and supply chain responsibility continue to advance, sustainability disclosure, energy and carbon management, and supply chain governance have gradually become important institutional factors affecting operating models and investment decisions. The Company has incorporated these requirements into its governance and management framework and linked them with operational planning and investment evaluation processes to ensure consistency between regulatory compliance and operational decision-making.

2026 Business Strategy and Outlook

Looking ahead to 2026, the global technology industry is rapidly entering a new phase in which energy efficiency has become a core competitive advantage. Market research indicates that electricity demand driven by AI-related computing and infrastructure is growing at a compound annual growth rate (CAGR) of approximately 15%. By 2030, the annual electricity consumption of global AI data centers is expected to rise sharply. Compared to 2025, the additional electricity demand is projected to reach approximately 469 billion kWh (469 TWh), equivalent to the total annual electricity consumption of Germany. Total electricity consumption by AI data centers is expected to reach 945 billion kWh (945 TWh), roughly equivalent to Japan’s annual national electricity usage. This trend highlights a shift in the technology industry’s development focus—from solely pursuing process miniaturization and performance improvements to comprehensively optimizing energy acquisition and usage efficiency.

As electricity demand from AI data centers surges, governments around the world are placing increasing emphasis on whether energy supply can simultaneously support industrial development and general public needs. The massive power consumption of AI data centers is gradually crowding out energy resources originally allocated to residential use and other industries, making energy supply and allocation critical issues for national competitiveness and social stability.

Taking Taiwan as an example, the semiconductor industry has become one of the primary sources of electricity consumption. As advanced process technologies continue to progress and large-scale data centers are rapidly deployed, pressure on future power supply is expected to intensify. Against this backdrop, effectively reducing energy consumption across various end-use applications will be a key factor in sustaining long-term industrial development.

The display industry has historically focused on enhancing brightness and refresh rates, while continuously evolving technologies such as LCD, OLED, and Micro LED. However, these emissive display technologies generally involve higher energy consumption and are increasingly facing dual challenges in energy efficiency and user experience. Based on long-term industry observations, E Ink has continued to advance ePaper technology centered on reflective displays. By utilizing ambient light to render images, ePaper significantly reduces energy consumption during display operation while offering a reading and viewing experience closer to paper.

This is also the core reason behind E Ink’s continued investment in research and development. The company is committed to continuously improving ePaper in terms of visual quality, color performance, and user experience, moving toward the goal of becoming “more like paper.” At the same time, the company is actively investing in larger-format manufacturing technologies and production line expansion to enhance production efficiency and meet growing market demand for large-size displays. Large-format manufacturing not only improves output efficiency per unit but also represents stronger cost competitiveness, which will help accelerate the adoption of ePaper across a broader range of applications. Although yield rates and processes still face certain challenges during the initial implementation phase, this strategy will establish long-term scale and cost advantages, laying a critical foundation for future market growth.

On the application side, the energy-saving advantages of ePaper are becoming increasingly evident. For example, in outdoor displays, a single LED billboard consumes approximately the same amount of electricity as 120 ePaper outdoor displays, demonstrating ePaper’s overwhelming advantage in energy efficiency. As global requirements for energy conservation and carbon reduction become more stringent, this characteristic will accelerate the adoption of ePaper in outdoor advertising and smart city applications.

With the increasing maturity of color ePaper technology, its application scope is rapidly expanding. In the retail sector, ePaper has evolved from traditional price tags into digital content carriers that support real-time information updates and marketing applications, driving demand for larger display sizes. In outdoor applications, ePaper features low power consumption and no light pollution, and can be integrated with renewable energy for independent power supply, providing a more sustainable solution for smart cities and outdoor information displays.

To capture market growth opportunities, E Ink will continue to strengthen its technology platform portfolio, including the E Ink Spectra™ series for vivid indoor color displays, the E Ink Gallery™ series focused on high-quality full-color imaging, E Ink Marquee™ for wide-temperature outdoor applications, and E Ink Kaleido™ for higher refresh rate support. These product lines are designed to meet diverse requirements for display performance and energy efficiency across different use cases.

Amid rapidly evolving global energy structures and the rapid advancement of AI, E Ink will continue to center its strategy on ePaper technology, deepen its technological advantages, expand application markets, and collaborate with industry partners to drive display technologies toward greater energy efficiency, environmental sustainability, and broader adoption—thereby establishing a solid foundation for the company’s long-term growth.