New Risk • May 25
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: NT$3.14b (US$99.9m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 2.4% per year over the past 5 years. Minor Risks Dividend is not well covered by cash flows (dividend per share is over 8x cash flows per share). Market cap is less than US$100m (NT$3.14b market cap, or US$99.9m). Reported Earnings • May 21
First quarter 2026 earnings: EPS and revenues exceed analyst expectations First quarter 2026 results: EPS: NT$0.16 (up from NT$0.47 loss in 1Q 2025). Revenue: NT$1.25b (up 60% from 1Q 2025). Net income: NT$12.9m (up NT$47.3m from 1Q 2025). Profit margin: 1.0% (up from net loss in 1Q 2025). The move to profitability was driven by higher revenue. Revenue exceeded analyst estimates by 45%. Earnings per share (EPS) also surpassed analyst estimates. Reported Earnings • Mar 14
Full year 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2025 results: EPS: NT$2.08 (up from NT$1.70 in FY 2024). Revenue: NT$4.96b (down 2.4% from FY 2024). Net income: NT$153.3m (up 24% from FY 2024). Profit margin: 3.1% (up from 2.4% in FY 2024). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 7.2%. Earnings per share (EPS) exceeded analyst estimates by 3.0%. Announcement • Feb 25
International Integrated Systems, Inc., Annual General Meeting, May 27, 2026 International Integrated Systems, Inc., Annual General Meeting, May 27, 2026. Location: 1 floor no,133, sec.4 min sheng e. rd., songshan district, taipei city Taiwan New Risk • Nov 25
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Taiwanese stocks, typically moving 8.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 4.4% per year over the past 5 years. Minor Risks Dividend is not well covered by cash flows (207% cash payout ratio). Share price has been volatile over the past 3 months (8.0% average weekly change). Valuation Update With 7 Day Price Move • Nov 25
Investor sentiment deteriorates as stock falls 23% After last week's 23% share price decline to NT$47.45, the stock trades at a trailing P/E ratio of 21.3x. Average forward P/E is 16x in the IT industry in Taiwan. Total loss to shareholders of 9.7% over the past year. Reported Earnings • Nov 18
Third quarter 2025 earnings released: EPS: NT$0.41 (vs NT$0.12 loss in 3Q 2024) Third quarter 2025 results: EPS: NT$0.41 (up from NT$0.12 loss in 3Q 2024). Revenue: NT$1.39b (up 59% from 3Q 2024). Net income: NT$29.6m (up NT$38.2m from 3Q 2024). Profit margin: 2.1% (up from net loss in 3Q 2024). The move to profitability was driven by higher revenue. Revenue is forecast to grow 4.1% p.a. on average during the next 2 years, compared to a 12% growth forecast for the IT industry in Taiwan. Valuation Update With 7 Day Price Move • Aug 21
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$64.60, the stock trades at a trailing P/E ratio of 37.9x. Average trailing P/E is 21x in the IT industry in Taiwan. Reported Earnings • Aug 17
Second quarter 2025 earnings released: EPS: NT$0.93 (vs NT$1.43 in 2Q 2024) Second quarter 2025 results: EPS: NT$0.93 (down from NT$1.43 in 2Q 2024). Revenue: NT$1.07b (up 1.9% from 2Q 2024). Net income: NT$67.9m (down 35% from 2Q 2024). Profit margin: 6.3% (down from 9.9% in 2Q 2024). The decrease in margin was driven by higher expenses. Valuation Update With 7 Day Price Move • Jun 27
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to NT$57.00, the stock trades at a trailing P/E ratio of 25.9x. Average trailing P/E is 20x in the IT industry in Taiwan. New Risk • Jun 17
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 3.1% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 4.5% per year over the past 5 years. High level of non-cash earnings (25% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (9.0% average weekly change). New Risk • Jun 14
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 33% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 2.7% per year over the past 5 years. High level of non-cash earnings (33% accrual ratio). Minor Risk Share price has been volatile over the past 3 months (9.0% average weekly change). Valuation Update With 7 Day Price Move • Apr 30
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to NT$59.00, the stock trades at a trailing P/E ratio of 34.8x. Average trailing P/E is 23x in the IT industry in Taiwan. New Risk • Apr 07
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Taiwanese stocks, typically moving 9.0% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (9.0% average weekly change). Earnings have declined by 1.6% per year over the past 5 years. Minor Risks Profit margins are more than 30% lower than last year (2.4% net profit margin). Market cap is less than US$100m (NT$3.15b market cap, or US$95.3m). Valuation Update With 7 Day Price Move • Apr 07
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to NT$43.05, the stock trades at a trailing P/E ratio of 25.4x. Average trailing P/E is 21x in the IT industry in Taiwan. New Risk • Mar 23
New major risk - Revenue and earnings growth Earnings have declined by 1.6% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 1.6% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (7.2% average weekly change). Profit margins are more than 30% lower than last year (2.4% net profit margin). Reported Earnings • Mar 23
Full year 2024 earnings released: EPS: NT$1.70 (vs NT$2.31 in FY 2023) Full year 2024 results: EPS: NT$1.70 (down from NT$2.31 in FY 2023). Revenue: NT$5.08b (up 15% from FY 2023). Net income: NT$123.6m (down 27% from FY 2023). Profit margin: 2.4% (down from 3.8% in FY 2023). The decrease in margin was driven by higher expenses. Announcement • Mar 18
International Integrated Systems, Inc., Annual General Meeting, Jun 05, 2025 International Integrated Systems, Inc., Annual General Meeting, Jun 05, 2025, at 10:00 Taipei Standard Time. Location: 1 floor no,133, sec.4 min sheng e. rd., songshan district, taipei city Taiwan New Risk • Mar 01
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2024. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Minor Risks Latest financial reports are more than 6 months old (reported June 2024 fiscal period end). Share price has been volatile over the past 3 months (7.1% average weekly change). Profit margins are more than 30% lower than last year (3.1% net profit margin). Valuation Update With 7 Day Price Move • Jan 20
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to NT$66.10, the stock trades at a trailing P/E ratio of 34.6x. Average trailing P/E is 20x in the IT industry in Taiwan. 
