Letter to Shareholders

In 2025, the Company’s overall operating activities recorded double-digit growth in both major operating revenue and gross profit, while net operating income increased by 1.8 times. This was mainly attributable to the substantial investments over the past two years in the construction of computing centers primarily powered by GPUs from NVIDIA. The investments and demand for networking and other related equipment experienced a deferred effect and materialized in 2025. In addition, products and equipment related to edge computing for collaborative computing centers began to penetrate the market in 2025, mainly through IPC or other dedicated equipment applications. As a result, the overall power capacity of the Company’s products increased. However, due to tariff barriers imposed by the U.S. administration under Donald Trump and the impact of foreign exchange losses, market momentum fell short of expectations, and non-operating losses affected the Company’s overall financial performance.

In 2025, FSP sold approximately 16.66 million units, with consolidated operating revenue of NT$13,060,096 thousand, representing an increase of 12.58% compared to NT$11,601,092 thousand in 2024. Gross profit reached NT$2,270,193 thousand, an increase of 12.17%, while net operating income amounted to NT$141,965 thousand, representing a significant growth of 188.53%. The results of operations in 2025 and the business outlook for 2026 are explained below:

Looking ahead to 2026, the trend of AI remains evident and strong. The trend in hardware deployment is expected to expand from computing centers to edge computing. Products related to industrial computers, networking equipment, and servers will see increased power requirements due to the integration of graphics processing chips. In response to this trend, NVIDIA has introduced several platforms, including the MGX platform with a 12V output, the HGX platform with a 48V output, and the GB200 OCP platform equipped with a Power Shelf. Within the MGX platform, NVIDIA has standardized rack configurations to reduce hardware development costs for chip application vendors, with power supplies adopting the CRPS specification. Notably, FSP and its subsidiary 3Y Power have long been engaged in the server power supply market and possess extensive experience in CRPS design and manufacturing. The Group also maintains a comprehensive line of standard products with various power ratings, enabling it to quickly respond to the power demands of future MGX platforms. FSP Group will be able to provide Titanium-level high-efficiency N+N redundant CRPS power supplies ranging from 3,600W to 6,000W to meet the growing needs of the AI market. In addition, shortages and price increases in memory and storage semiconductors have already begun to emerge. Low-end and consumer electronic products are generally unable to absorb these rising costs. It is therefore expected that high-end, high-value enterprise computers will become the mainstream of the computer market in 2026, for which FSP Group will introduce ATX-standard 3,300W power supply solutions. With the ongoing trend of AI integration in industrial equipment, the Company will continue developing compact 24V adapters featuring wide temperature tolerance and the “three highs” — high power density, high wattage, and high conversion efficiency. It is anticipated that FSP will continue the growth momentum observed since the second half of last year. The overall target is to achieve total sales of approximately 17.56 million power supply units.

FSP is committed to its corporate mission of "maximizing value for customers, employees, and shareholders with innovative services and high-quality products." Continuously research and develop advanced technology, develop power sources for innovative industries, to provide high value added power products. Since last year, AI chips have been increasingly utilized in related products, leading to a significant increase in power demands and the output of power supplies. Within the framework of environmental and sustainable development, the role of high-power and high-efficiency power supply products becomes even more important. FSP will allocate more and better research and development resources, dedicating to create high-power and high-efficiency power supply products with technological strength, meeting market demands for durability and efficiency, as well as the explosive growth in the AI industry.

FSP has set up the Sustainable Development Committee under the jurisdiction of the Board of Directors. With regard to current domestic and foreign laws and regulations that govern our operations, and our management team will continue to pay close attention to policies and laws on corporate governance issues that may affect the Company's financial and business. We shall provide guidance and review environmental issues related to the environment between operations and production, and social issues related to coexistence and mutual prosperity with society and stakeholders on all levels.

FSP is committed to protecting the environment with green energy, respecting customers, and creating a high-quality work environment. We seek to become the most reliable partner for customers, consumers, suppliers, and employees and maximize value for customers, shareholders, and employees.