SUNON — Investor Presentation 2026

May 20, 2026

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FIRST CHOICE GLOBALLY Cooling Solutions

SUNON®

FIRST CHOICE GLOBALLY Cooling Solutions

2026 Q1

Operating Results

SUNONwealth Electric Machine Industry Co., Ltd.

2421.TW / 2421 TT

SUNON®

FIRST CHOICE GLOBALLY Cooling Solutions

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Disclaimer

The information or opinions contained in this document are based on expectations of current conditions and prediction on future events made by SUNONWEALTH ELECTRIC MACHINE INDUSTRY CO., LTD. (hereinafter referred to as "the Company"), which no representation or warranty, express or implied, is made as to its fairness, accuracy, completeness or timeliness. The information in this document only reflects the Company's view of the future as of the date hereof and is subject to change or adjustment in the future. And the Company assumes no obligation to notify or update it at any time unless otherwise required by the applicable laws. Neither the Company nor any of its subsidiaries, affiliates or representatives shall be liable for any direct or indirect damages arising out of the contents of this document, or any action taken as a result of reference to such contents.

The information contained in this document may express the Company's confidence in and expectations for its future vision, but these forward-looking statements are based on a number of factors relating to the Company's operations and are subject to unknown risks, uncertainties and other factors, and as a result, the actual results may differ materially from those in the forward-looking statements set forth above.

No part of this document may be copied, redistributed or transmitted, directly or indirectly, to any other person (whether inside or outside the Company) or published (in part or in whole) for any purpose.

SUNON

SUNONwealth Electric Machine Industry Co., Ltd. (2423, TW / 2421 TT)

FIRST CHOICE GLOBALLY Cooling Solutions

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Company Development & Evolution

Phase 1 | Foundation (1980-2000)

Drivers | Growth Engines: Industrial Machinery & Personal Computers

Core Products | Essential Portfolio: Motors & Fans

Phase 2 | Expansion (2001-2021)

Drivers | Growth Engines: Information Technology & Notebooks

Core Products | Essential Portfolio: Fans & Modules

NT$ 6 -13 B

20-25%

Phase 3 | Transformation & Beyond (2022-Now & Beyond)

Drivers | Growth Engines: AI Factories, Smart Cities & Living

Core Products | Essential Portfolio: Air Cooling & Liquid Cooling Solutions

NT$ 15-20 B+

25-30%+

SUNON

SUNONwealth Electric Machine Industry Co., Ltd. (2421 TW / 2421 TT)

FIRST CHOICE GLOBALLY Cooling Solutions

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SUNON Total Thermal Solutions, One-stop Service

Compact Fans

AI Fan Wall

Thermal Modules

Large-size EC Fans

Building Ventilation Fans

In-row CDU

In-rack RPU/ CDU

Cold Plates

Pump / Boiler

Two-phase/Liquid-cooled Modules

SUNONwealth Electric Machine Industry Co., Ltd. (2421 TW / 2421 TT)

FIRST CHOICE GLOBALLY Cooling Solutions

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Liquid Cooling Development Progress

• 2025 OCP Showcase: Liquid Cooling Products
  Cold Plates · Coolant Distribution Units (CDU) · Closed-loop Systems
• 2026 1Q Cold Plate Shipments
  2026 3Q Mass Production Contribution
  High-Compute · Networking · AI Server · GPU/CPU and ASIC customers
• Hybrid Cooling & Multi-Track Strategy
  Rapid Liquid Cooling Growth & Increased Content Value

2025

• R&D & production facility completed
• Liquid cooling products shipment

2026 1H

• Cold plates & cooling module shipments
• CDU mass production ready (Safety certified)

2026 2H

• Cold plates revenue contribution
• Expanding liquid cooling customer base

SUNON
SUNON
SUNON®
SUNON Analytical, Machine Industry Co., Ltd. (2421 TW / 2421 TT)
FIRST CHOICE GLOBALLY Cooling Solutions

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Liquid Cooling Product Applications

Al Data center

High-Performance Systems

SUNONwealth Electric Machine Industry Co., Ltd. (2421 TW / 2421 TT)

FIRST CHOICE GLOBALLY Cooling Solutions

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Diversified Supply System: 6 Production Bases & 1 R&D Center

New Taipei, Taiwan
R&D Center

Kaohsiung, Taiwan
Fan

Bataan, Philippines I
Fan & Module

Bataan, Philippines II
(Under Construction / Conceptual Image)
Fan & Module

Huizhou, Guangdong
Liquid & Air Cooling Module

Beihai, Guangxi I
Fan

Beihai, Guangxi II
Fan

Kunshan, Jiangsu
Fan & Module

SUNON

SUNONwealth Electric Machine Industry Co., Ltd. (2421 TW / 2421 TT)

FIRST CHOICE GLOBALLY Cooling Solutions

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SUNON: A Global Leader in Thermal Management

SUNONwealth Electric Machine Industry Co., Ltd. (2421 TW / 2421 TT)
FIRST CHOICE GLOBALLY Cooling Solutions

| 01 | A Variety of Thermal Solutions
Air Cooling, Liquid Cooling, L2A Modules, L2L Modules, Ventilation Solutions | 02 | Over 3,400 Global Patents, Efficiency Motors, Bionic Fan Blades, Ultra-Slim Water Pumps |
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| 03 | Over 420 Global R&D Talents, 5~8% of Annual Revenue Invested in R&D | 04 | Global Deployment & Flexible Capacity
6 Global Production Bases for Worldwide Shipping Support |
| 05 | Provide Products and Technological Services with Rapidity and Superiority | 06 | Commitment to Sustainability & 2050 Net-Zero Goal |

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SUNON Thermal Everywhere

■ Fan ■ Fan tray ■ Heat Pipe ■ Vapor Chamber ■ Heat Sink ■ Cooling Module ■ Fan Wall ■ Cold Plate ■ Liquid Cooling Module ■ CDU

SC Base Stations

Networking

electric vehicles

Industry Inventor / Drive

Renewable Energy

surveillance

Gaming

HVACR

IT

Home Appliance

AQI

Air Further Life Solution

Industrial Ventilation

SUNONwealth Electric Machine Industry Co., Ltd. (2421.TW / 2421 TT)

FIRST CHOICE GLOBALLY Cooling Solutions

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AI CAPEX Expansion: Strong Growth Momentum for ASICs

• US$600B+
  CAPEX from Global Big 5
• 75%
  AI Infrastructure
• 45%
  ASIC Shipment Growth
• 28%
  ASIC Share Expansion

Big 5 - 2026 Total CAPEX

Source: TrendForce (Jan 2026)

2026 Shipment Growth %

SUNON

SUNONwealth Electric Machine Industry Co., Ltd. (2422 TW / 2421 TT)

FIRST CHOICE GLOBALLY Cooling Solutions

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ASIC Drives Soaring Cooling Demand

Generation	Trainium 2	Trainium 2.5	Trainium 3
TDP	~500W	~500W	700~1000W
Cooling	Air Cooling	Air Cooling	Air/Liquid Cooling

Estimated Fan Count for Trn3 NL32x2 UltraServer

• 32 compute trays: 8 fans each
• 8 switch trays: 6–8 fans each
• Power supply: ~40–50 fans

Air-cooling solution up to 344 fans total

Source: https://hao.cnyes.com/post/213835

SUNONwealth Electric Machine Industry Co., Ltd. (2421.TW / 2421 TT)

FIRST CHOICE GLOBALLY Cooling Solutions

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Breaking Compute Barriers: HGX Platform Advantages

Type	HGX B300/PCIe Rubin NVL8	GB300 NVL72	VR NVL72
Cooling Solution	Air Cooling	Liquid to Air	Liquid Cooling
Procurement Unit	Single Server	Rack System	Rack System
Cost	Low	High	Very High
Scalability	Easy to Upgrade	Fixed Configuration	Fixed Configuration

HGX (B300/PCIe Rubin NVL8) Advantage

• Significant Cost Efficiency
• Decoupling of Vendor Ecosystem
• Scalable Modular Design

HGX B300

Picture Source: ASUS & Supermicro

SUNON

SUNON&health Electric Machine Industry Co., Ltd. (2423 TW / 2421 TT)

FIRST CHOICE GLOBALLY Cooling Solutions

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AI-Driven Rise of Independent Power Racks

IT Rack (old)
5~10 kW/per rack

Power Demand

AI IT Rack (new) with Side Power Rack
INCREASED COOLING REQUIREMENT

• 27.5% CAGR
  Rapid growth of AI data centers from 2026 to 2032

• Up to 30-100 kW/per rack
  Driving cooling demand for independent power racks

SUNON

SUNONSealith Electric Machine Industry Co., Ltd. (2422 TW / 2421 TT)

FIRST CHOICE GLOBALLY Cooling Solutions

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AI Compute Power Driving Rapid Switch Upgrades

• AI demand drives upgrades from 800G to 1.6T/3.2T switches
• 21.5% CAGR: Rapid growth in 800G+ switch market

2024-2034 High-Speed Switch (800G+) Market Size Trend

Source: Dell'Oro Group, KSD Group, LightCounting, Internal Engineering Estimates (Jan 2026 Update). Image generated for illustrative purposes.

SUNONwealth Electric Machine Industry Co., Ltd. (2422 TW / 2421 TT)

FIRST CHOICE GLOBALLY Cooling Solutions

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EC Fans Lead a New Standard for AI Data Center

• High energy efficiency, low noise, and dynamic power and speed control.
• Conversion efficiency exceeds 90% and energy consumption reduced by up to 80%
• Applied in data center, HVAC systems & Industrial machinery.

SUNONwealth Electric Machine Industry Co., Ltd. (2421 TW / 2421 TT)

FIRST CHOICE GLOBALLY Cooling Solutions

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Electric Vehicles / Auto Cooling Solution

SUNON has more than 20 years of experience in cooling solutions for the automotive industry, and can provide various cooling fans, cooling modules and liquid cooling products that meet the quality standards of the automotive industry

SUNONwealth Electric Machine Industry Co., Ltd. (2422 TW / 2421 TT)

FIRST CHOICE GLOBALLY Cooling Solutions

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Renewable Energy Cooling Solution

SUNON is an important partner of global high-quality energy system cooling solutions, providing a full range of cooling solutions.

PV Inverter Cooling

ESS Cooling

SUNON

SUNON@ealth Electric Machine Industry Co., Ltd. (2421.TW / 2421 TT)

FIRST CHOICE GLOBALLY Cooling Solutions

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SUNON
SUNONwealth Electric Machine Industry Co., Ltd. (2422 TW / 2421 TT)
FIRST CHOICE GLOBALLY Cooling Solutions

Quarterly Revenue

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UNIT: NTD (M)
Revenue Performance

SUNON
www.Sunon.com

SUNON&health Electric Machine Industry Co., Ltd. (2422 TW / 2421 TT)
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FIRST CHOICE GLOBALLY Cooling Solutions

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UNIT: NTD (M)

UNIT: NTD (M)

Quarterly Revenue in Server

SUNON

SUNONwealth Electric Machine Industry Co., Ltd. (2422 TW / 2421 TT)

FIRST CHOICE GLOBALLY Cooling Solutions

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UNIT: NTD (M)

SUNON

Quarterly Revenue in AI Server

SUNONwealth Electric Machine Industry Co., Ltd. (2421 TW / 2421 TT)

FIRST CHOICE GLOBALLY Cooling Solutions

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Products Application & QoQ Growth

SUNON

SUNONwealth Electric Machine Industry Co., Ltd. (2422 TW / 2421 TT)

FIRST CHOICE GLOBALLY Cooling Solutions

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Products Application & YoY Growth

SUNONwealth Electric Machine Industry Co., Ltd. (2422 TW / 2421 TT)

FIRST CHOICE GLOBALLY Cooling Solutions

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Profit Margin

Gross Margin

Operating Margin

Net Margin

SUNON

SUNONwealth Electric Machine Industry Co., Ltd. (2421 TW / 2421 TT)

FIRST CHOICE GLOBALLY Cooling Solutions

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SUNON

SUNONwealth Electric Machine Industry Co., Ltd. (2422 TW / 2421 TT)

Quarterly Earning
Unit: NTD

SUNON

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FIRST CHOICE GLOBALLY Cooling Solutions

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Earning & Cash Dividend

UNIT: NTD

	Y2016	Y2017	Y2018	Y2019	Y2020	Y2021	Y2022	Y2023	Y2024	Y2025
Payout Ratio	88%	88%	83%	74%	68%	70%	60%	68%	68%	69%

SUNON

SUNONwealth Electric Machine Industry Co., Ltd. (2421 TW / 2421 TT)

FIRST CHOICE GLOBALLY Cooling Solutions

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Appendix I

CONSOLIDATED BALANCE SHEETS
NT$ M	2025.3.31	2025.12.31	2026.3.31	Change(%)
				vs. 2025.12.31	vs. 2025.3.31
TOTAL ASSETS	15,830	17,427	19,420	11.4%	22.7%
Cash	5,279	5,256	6,013	14.4%	13.9%
A/R, N/R	4,445	5,217	5,545	6.3%	24.7%
Inventories	2,179	2,424	2,696	11.2%	23.7%
PP&E	2,510	3,054	3,230	5.8%	28.7%
TOTAL LIABILITIES	7,369	8,540	8,096	-5.2%	9.9%
Short-term loans	1,056	470	462	-1.7%	-56.3%
A/P	3,642	4,530	4,759	5.1%	30.7%
Long-term loans	432	613	0	-100.0%	-100.0%
TOTAL EQUITY	8,461	8,887	11,324	27.4%	33.8%
Days sales outstanding	94	91	98
Days sales of inventory	68	65	68
Current Ratio	1.92	1.84	2.06

SUNON

SUNONwealth Electric Machine Industry Co., Ltd. (2421 TW / 2421 TT)

FIRST CHOICE GLOBALLY Cooling Solutions

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Appendix II

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
NT$ M	2025
Q1	2026
Q1	YOY(%)
2026Q1
OPERATING REVENUES	4,162	5,019	20.6%
GROSS PROFIT	1,218	1,589	30.5%
OPERATING EXPENSES	-702	-801	14.1%
INCOME FROM OPERATIONS	516	788	52.7%
NON-OPERATING INCOME AND EXPENSES	64	17	-73.4%
INCOME BEFORE INCOME TAX	580	805	38.8%
NET INCOME attribute to owners	472	649	37.5%
EPS (NT$)	1.73	2.36
Gross Margin	29.3%	31.7%
Operating Margin	12.4%	15.7%
Net Margin(*)	11.3%	12.9%

(*)Net Margin = Net Income attribute to owners / Revenue

SUNON

SUNONwealth Electric Machine Industry Co., Ltd. (2421 TW / 2421 TT)

FIRST CHOICE GLOBALLY Cooling Solutions

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SUNON

FIRST CHOICE GLOBALLY Cooling Solutions

Thanks

for Your Attention!

WWW.SUNON.COM

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