Q1 2026 Quarterly Report: Revenue KRW 97.2bn, Operating Profit KRW 22.2bn — TES

Summary

TES reported strong Q1 2026 results with consolidated revenue of KRW 97.2 billion, operating profit of KRW 22.2 billion, and net income of KRW 24.6 billion. Semiconductor front-end equipment (primarily PECVD and Gas Phase Etch & Cleaning tools) accounted for over 99% of revenue, with the remaining 1% from display and UVC LED equipment. Domestic sales dominated at 96% versus 4% overseas, indicating continued heavy reliance on Korean chipmakers (Samsung, SK hynix). At the March 2026 AGM, Joo Jae-young was newly appointed as co-CEO alongside re-appointed Lee Jae-ho, while Joo Soong-il was re-elected as inside director and named Chairman of the Board. The report otherwise references the 2025 annual report for company overview, capital, and share information.

Historical Impact

2 past Quarterly Report · ≈ 10-Q events at TES

Median +5d

-5.66%

Range

-8.39% to -2.93%

Positive outcomes

0/2

Filed	P₀	P₊₅	+5d
Nov 14, 2025	₩41,700	₩38,200	-8.39%
May 12, 2025	₩22,200	₩21,550	-2.93%

Full Translation

Quarterly Report 6.5 TES Co., Ltd. 1 Y 134511-0064482 QUARTERLY REPORT (25th Term, 1st Quarter) Fiscal Year: From January 1, 2026 to March 31, 2026 To: Financial Services Commission / Korea Exchange Date: May 13, 2026 Filing Entity Type: Listed Stock Corporation Exemption Reason: None Company Name: TES Co., Ltd. Representative Directors: Joo Jae-young, Lee Jae-ho Head Office: 2374-36 Jungbu-daero, Yangji-myeon, Cheoin-gu, Yongin-si, Gyeonggi-do Tel: 031-323-2552 Website: http://www.hites.co.kr Person Responsible for Preparation: Park Sun-il, Finance Team Leader (Tel: 031-323-2552) TABLE OF CONTENTS [Confirmation by Representative Director, etc.] - 1 I. Company Overview - 2 II. Business Content - 4 1. Business Overview - 4 2. Key Products and Services - 5 3. Raw Materials and Production Facilities - 6 4. Sales and Order Status - 9 5. Risk Management and Derivative Transactions - 11 6. Major Contracts and R&D Activities - 18 7. Other Reference Information - 20 III. Financial Matters - 24 1. Summary Financial Information - 24 2. Consolidated Financial Statements - 27 3. Notes to Consolidated Financial Statements - 33 4. Financial Statements - 94 5. Notes to Financial Statements - 100 6. Dividend Matters - 164 7. Capital Raising via Securities Issuance - 165 8. Other Financial Matters - 168 IV. Directors' Management Diagnosis and Analysis Opinion - 178 V. Auditor's Audit Opinion, etc. - 179 VI. Board of Directors and Other Corporate Bodies - 180 VII. Shareholder Matters - 184 VIII. Officers and Employees - 185 IX. Affiliated Companies - 188 X. Transactions with Major Shareholders - 189 XI. Other Matters Necessary for Investor Protection - 190 XII. Detailed Tables - 194 [Expert Confirmation] - 194 [Confirmation by Representative Director, etc.] CEO_Confirmation_260513.jpg I. COMPANY OVERVIEW 1. Company Overview In accordance with the disclosure form preparation standards, company overview information is not included in the quarterly report. Please refer to the 2025 Annual Report disclosed on 2026.03.13. 2. Company History In this quarter, there were no changes other than management changes. Please refer to the 2025 Annual Report disclosed on 2026.03.13. * Significant Management Changes As of the report's preparation date, the Board of Directors consists of 4 directors: 3 inside directors (Joo Soong-il, Lee Jae-ho, Joo Jae-young) and 1 outside director (Park Hee-gyun). Significant management changes over the past 5 fiscal years are as follows: - 2023.03.20 Annual General Meeting: New appointment — Standing Auditor Noh Yu-ho (*1). Re-appointment — CEO Joo Soong-il, CEO Lee Jae-ho. Term expired/dismissed — Standing Auditor Kang Myeon-gu (*1). - 2024.03.25 Annual General Meeting: Re-appointment — Inside Director Joo Jae-young, Outside Director Park Hee-gyun. - 2026.03.23 Annual General Meeting: New appointment — CEO Joo Jae-young (*4). Re-appointment — Inside Director Joo Soong-il (*2), CEO Lee Jae-ho (*3), Standing Auditor Noh Yu-ho (*5). Term expired — CEO Joo Soong-il (*2). (*1) At the 21st AGM (2023.03.20), Auditor Noh Yu-ho was newly appointed and existing Auditor Kang Myeon-gu's term expired on the same date. (*2) Inside Director Joo Soong-il was re-elected as inside director at the 24th AGM (2026.03.23) and appointed Chairman of the Board at the board meeting held the same day. (*3) Inside Director Lee Jae-ho was re-elected as inside director at the 24th AGM (2026.03.23) and re-appointed as separate co-CEO at the board meeting held the same day. (*4) Inside Director Joo Jae-young was newly appointed as separate co-CEO at the board meeting (2026.03.23) held immediately after the 24th AGM. (*5) Standing Auditor Noh Yu-ho was re-elected as Standing Auditor at the 24th AGM (2026.03.23). 3. Capital Changes In accordance with the disclosure form preparation standards, capital changes are not included in the quarterly report. Please refer to the 2025 Annual Report disclosed on 2026.03.13. 4. Total Number of Shares, etc. In accordance with the disclosure form preparation standards, total share information is not included in the quarterly report. Please refer to the 2025 Annual Report disclosed on 2026.03.13. 5. Articles of Incorporation In accordance with the disclosure form preparation standards, articles of incorporation matters are not included in the quarterly report. Please refer to the 2025 Annual Report disclosed on 2026.03.13. II. BUSINESS CONTENT 1. Business Overview The Company's principal business is the manufacture of semiconductor front-end process equipment used for semiconductor device production, with semiconductor equipment-related sales accounting for over 95% of total revenue. The semiconductor process is broadly divided into front-end processes (which fabricate chips by processing wafers) and back-end processes (which assemble and test fabricated chips). The Company manufactures and supplies to domestic semiconductor device makers PECVD (Plasma Enhanced Chemical Vapor Deposition) — a thin-film deposition tool used in front-end processes — and Gas Phase Etch & Cleaning equipment, which is a dry-etching tool. In addition, the Company develops and supplies Thin Film Encapsulation systems used in display manufacturing and MOCVD (Metal Organic Chemical Vapor Deposition) equipment used to fabricate wafers for UVC LEDs, delivering them to relevant customers domestically and overseas. For Q1 2026, on a consolidated basis the Company recorded revenue of KRW 97.2 billion, operating profit of KRW 22.2 billion, and net income of KRW 24.6 billion. On a standalone basis, it recorded revenue of KRW 96.3 billion, operating profit of KRW 21.9 billion, and net income of KRW 23.0 billion. Semiconductor and non-semiconductor business segments accounted for 99% and 1% of revenue, respectively, while domestic and overseas sales accounted for 96% and 4%, respectively. 2. Key Products and Services The Company's revenue can be broadly categorized into the equipment segment (semiconductor equipment, etc.) and other segments (parts, customer service sales, etc.). Revenue by product and percentage share is as follows: a. Key Product Sales Status (Unit: KRW million) - Segment: Company-wide | Sales Type: Product (Equipment) | Item: Semiconductor, Display, UVC LED equipment, etc. | Specific Use: Semiconductor equipment (PECVD, Gas Etcher, etc.), Display and UVC LED equipment | Brands: Challenger300HTi, Challenger300HTx, CUMAX Series, etc. | Revenue: 82,741 | Share: 85.1% - Segment: Company-wide | Sales Type: Non-product (Other) | Item: Parts, etc. | Specific Use: Parts and services for maintenance | Brands: — | Revenue: 14,502 | Share: 14.9% - Total: 97,243 | 100.0% b. Price Trends of Key Products The Company's flagship product is... [Translation truncated]