Good day, everybody. This is Ivan Tsao speaking from AirTAC, and welcome to join this conference call. Please let me brief our fourth quarter results and current market situation. First of all, the U.S.-China tariff issue and the China government anti-involution policy are limited impact to our business. Currently, for the recovery of the China economy, the importance of how the China government implements more policies to restore people's consumption confidence is far greater than the impact of U.S. tariffs. The manufacturing industry can sustain single-digit growth rate annually once there is no too severe non-economic issue. By continuously developing new products and improving our brand image, we expect our annual revenue growth rate can be 10% higher than the industry growth.
As pneumatic products support production line rather than in the end product, as long as customers launch new models or engage in production activities, there will be more demand for pneumatic. Moreover, the impact of Cross-Strait between China and Taiwan tariff agreement will mean that export and our margins have subsided by the second quarter of 2025. We can improve our OP margin to be better and better. The consolidated revenue for the fourth quarter of 2025 was RMB 2,064,000,000, a 21% growth year-on-year. Gross profit was RMB 980,000,000, a 25% growth. Gross margin was 47.5%. Operating income was RMB 645,000,000, a 35% growth year-on-year. Operating margin was 31.3%.
Net non-operating income was RMB 31 million, including RMB 29 million of exchange gain , RMB 9 million on equipment disposal, which caused by replacing equipment to improve our production efficiency, and RMB 7 million subsidy from government, RMB 5 million of interest income, and RMB 2 million of interest expenses. Income before income tax was RMB 675 million, a 34% growth year-on-year. Pre-tax margin was 32.7%. Net profit was RMB 532 million, a 33% growth year-on-year. Net margin was 25.8%. EPS for the fourth quarter of 2025 was NT$11.64. Approved consolidated revenue for the whole year of 2025 was RMB 7,931,000,000, a 15% growth year-on-year. Gross profit was RMB 3,647,000,000, a 13% growth year-on-year. Gross margin was 46%. Operating income was RMB 2,378,000,000 , a 17% growth year-on-year. Operating margin was 30%.
Income before income tax was RMB 2,459,000,000, a 14% growth year-on-year. Pre-tax margin was 31%. Net profit was RMB 1,941,000,000 , a 13% growth year-on-year.
Net margin was 24.5%. EPS for the whole year of 2025 was NTD 42. Revenue from top eight industries for the fourth quarter of 2025, the biggest one still was electronics, around 26% to consolidated revenue. It's 17% growth year-on-year. Second one, battery, was around 15% to revenue, 57% growth. Auto was 10% to revenue, 31% growth. Packaging was around 9% to revenue, 16% growth. Machine tools was around 7% to revenue, 17% growth. General machinery was around 6% to revenue, 16% growth. Textile was 4% to revenue, 5% growth. Energy, lighting or solar was around 3% to revenue. It's 15% growth year-on-year. Revenue breakdown for the whole year of 2025, electronics was around 27% to consolidated revenue. It's 10% growth year-on-year. Battery was around 14% to revenue, 84% growth. Auto was 10% to revenue, 40% growth. Packaging was around 8% to revenue, 9% growth.
Machine tools was 7% to revenue, 14% growth. General machinery was around 5% to revenue, 13% growth. Textile was 4% to revenue, 5% decline. Energy, lighting or solar was around 4% to revenue. It's 31% decline year-on-year. For current market situation, more and more customers are showing positive views on future demand. We believe that the manufacturing industry demand has entered a recovery cycle from late 2024. Even it may only be a gradual or moderate recovery. This duration of the recovery cycle may be longer than normal two-year recovery period in the past. In addition, China government continued to release many stimulus policies and attempt to restore people's consumption confidence. Some of them have improved their confidence and increased their end product consumption or capacity expansion.
Overall, shipment was better than our expectation in the first quarter of 2025, but just in line in the second quarter of 2025 caused by the U.S. tariff policies because some customers postponed their demand. However, the impact of such tariff issues has been diluted, and customers still need to improve production process automation and replace new manufactured products. The shipment from last September or September of 2025 to this moment have been better than our expected. As for the demand of various industries of manufacturing, the revenue of the electronics industry grew by 10% as we expected in 2025. So many customers say it could be a good year for electronics in 2026 because there could be more new model launch and spec upgrade in the year. We expect we could have another 10% revenue growth from electronics in 2026.
And battery demand, government has announced its development guidance for EV and battery from late 2024, and the shipment was better than our expectation in 2025. In addition, more countries have relaxed their restriction policies on Chinese players, and those players plan to expand their overseas capacity. Also, we will increase their domestic capacity. So we expect we could have double-digit revenue growth from battery in 2026. Better revenue growth from the automotive industry also could be expected in 2025 and 2026. And we have improved our brand image on auto customers and enjoy better share gain from that. Even the overall auto industry, especially for those ICE demand, still has not recovered significantly. We have had double-digit revenue growth rate for years, and we expect we could have double-digit revenue growth in 2026 from the auto industry.
Moreover, government stimulus policies for replacing old equipment to be new equipment can get subsidy from government still in the market. Those traditional demand like machine tools, general machinery, packaging, textile still could enjoy positive revenue growth. It's meant to have single-digit growth in 2025. All of them still was better than our expectation. We expect those traditional demand can enjoy positive growth again in 2026. Even we have some demand issues on solar or energy, lighting in 2025, but the demand seems to have warmed up from a decline of 46% in the first half of 2025 to 15% growth in the fourth quarter of 2025. We also expect this industry demand still could be turned to positive growth in 2026 from solar or energy, lighting. For the pricing, selective customers, selective items still have some pricing competition in manufacturing.
Overall speaking, it still could be rational, basically. The increased material cost can be diluted or offset by our internal efficiency improvement. OP margin still has to depend on revenue scale and capacity utilization rate. Even we can improve our margin by launching more higher gross margin new items, improving our selling product mix, and continue to improve internal production efficiency to reduce production cost. We defined 100% capacity utilization rate based on working 24 days a month and 21 hours a day with two shift systems. Current manufacturing capacity utilization rate is around 110%. The inventory turnover days at end of 2025 was around 124 days. The accounts receivable turnover days was also 124 days at end of 2025. For the development of linear guides, industry demand is still weak, and peers still keep aggressive pricing.
We have changed our pricing policy since the third quarter of 2024, and also extend new sales range. Our shipping volume has been around 20% growth in 2025, but revenue numbers are still lower than our expectation. We have asked our sales team to convince more customers and also expect the linear guide market overall demand will be better from 2026 because the linear guide demand cycle used to be around two to three quarters later than the manufacturing cycle. When manufacturing began to recover from late 2024, it could be better from the fourth quarter of 2025 from linear guide demand. Once the linear guide overall demand is warmed up, peers used to raise their selling price, and AirTAC will maintain the same price to increase the pricing gap lower than peers and persuade more customers to place more orders to AirTAC.
Current linear guides capacity utilization rate is around 30%. Gross margin is 16%. The shipment quantity in the past two years has been higher than the output, and we continue to decrease linear guides inventory. We have the opportunity to increase the utilization rate in 2026. When we achieve 50% utilization rate, production gross margin could be around 30%. Once we have 80% utilization rate, we can support 40% gross margin from linear guides. Even 30%-40% gross margin is lower than our existing manufacturing business, but we use the same sales team to do cross-selling manufacturing and linear guides and without too much additional OpEx. It still can improve our consolidated OP margins. For the development of supporting semiconductors customers' demand, based on our strategy, we have not developed products to support semi customers' demand by the end of 2024.
But due to those products can enjoy higher gross margin and China government localization policies, we began to develop semi items from early 2025 and scheduled to launch some items gradually from 2027. The current development progress is better than our expected, and we can gradually launch some specs to support semi demand from the second half of 2026. But based on past experience, it used to take around one year for new products to have a better revenue contribution. Better revenue contribution maybe still have to wait to the second half of 2027, even 2028. We expect the manufacturing industry can return to low single-digit growth in 2026, and we can have at least 10% revenue growth from manufacturing products plus the revenue contribution of linear guides.
The shipment in this January has exceeded our expectation, and even we could have a monthly revenue record high number in this January. Even we are optimistic about market demand in 2026 due to the short lead time of the manufacturing business, and we prefer to give a conservative guidance to the market at the beginning of the year. Annual revenue growth rate for the whole year in 2026 could be over 10%, an OP margin of 31%. A CapEx number could be NTD 2-3 billion. We have generated free cash flow for years, also have increased our cash dividend payout ratio from 35% in 2021 to 55% in 2025. It will be around 65% payout in 2026, and also could be higher in coming years. It's my briefing, and should you have any questions, we can discuss it. Thank you.
Yeah, thank you, Ivan. That's pretty comprehensive. So, hi, everyone. Let's start the Q&A session now. Please feel free to raise your hand on Zoom if you'd like to ask live. So, before we started taking questions from the investor online, I'd like to ask a few questions first, if I may. So, hi, Ivan. So, my first question is that regarding your business outlook in 2026, which is pretty good, and in 2025, for the fourth quarter, you delivered the record high EPS number in the fourth quarter. Just want to know your view on the overall 2026 seasonality. In the past, we actually see we definitely seen that fourth quarter is a low season, but this time it's not. So, just want to know how should we think about it?
Do you expect that in the second quarter this year will still be the traditional peak season, or do you believe in 2024 we will not see a very strong seasonality just like before? Yeah, that's my first question. Thank you very much.
Okay, basically more and more customers today think the demand could be better and better in coming months or coming quarters. So our order book or shipment value in this January could be record high. So basically we could be pretty optimistic about the demand in 2026. And the second quarter used to be the peak season for manufacturing. So it still could be based on such rules for 2026. And it's still too early to tell what the growth rate will be in the second quarter of 2026, even next month, because Chinese New Year is located in mid of February.
Every time when the location of Chinese New Year is mid of February, the demand seems a little fluctuated because some customers, they used to let their employees have early holidays and also let them back to their workshop a little late. Overall, we just can say once China government continues to release more stimulus policies, the demand still could be better and better in 2026. Thank you.
Got you, Ivan. That's pretty clear. My next question is regarding your linear guide business. You mentioned about linear guide business. You expect that the overall demand to recover sometime in 2026. But should we expect, or do you have any guidance on the revenue in 2026, just like what you did in the past few years, or any target on the utilization rate will be good enough? Thank you very much.
We are sorry to say we missed our linear guide sales numbers for years, and we still have our internal expectation or budget target. Maybe it's better not to give the linear guide numbers to the market this time. Our linear guide capacity not just supports our customers. We still have internal linear guide demand to support our manufactured product. So once manufactured product has a better demand in 2026, and we also expect we can convince more customers to buy more linear guide from AirTAC, and the overall industry's demand still could be better in 2026. So we expect we could have a 50%, 50% utilization rate in the second half of 2026, and we can improve our production gross margin to be better and approaching 30%.
But once we have a higher revenue number of linear guides in 2026, at the beginning of the year, we still have to suffer a little lower gross margin in the first half of 2026 because our existing inventory, even production cost, still could be a little higher, and gross margin just around 10%. Once we have a higher revenue from linear guides, the impact of our consolidated gross margin still could be a little higher. But we continue to improve our internal production efficiency, and the gross margin still could be better than 2025 in 2026.
Got you, Ivan. That's pretty clear, and looking forward to seeing the progress here. So we are open to the Q&A session right now. Everyone, again, please raise your hand on Zoom. We will name your name, and please unmute yourself to discuss with Ivan.
Before asking questions, please speak out your name and the company name first. So our first question will come in from Helen. Hi, Helen. You can go to unmute yourself. Thanks.
Sure. Thank you, Chao, for giving me the opportunity to raise a question. Hello, Ivan. It's Helen from HSBC. Happy New Year. So our first question is about the downstream verticals, if we may, because you sound quite positive towards the 2026 outlook. I was wondering if we can break that into different downstream verticals. What about auto? Because auto capital expenditure has been quite strong, I would say, for almost 18 months now. And speaking from the past experience, the first half or June this year, it might be going down. Is that the case that you are looking from your side now? That's for the auto sector.
Number two is for the smartphone because we have high expectations for smartphone as well for the second quarter orders. I was wondering, is it like more coming in in the second quarter and will tune down more towards the third quarter? How big is the impact of the smartphone for us this year? Thank you so much, Ivan.
Okay, basically for auto demand, most of the revenue growth could be supported by market share again, especially from those ICE customers. In the past, so many ICE customers, they have very deep brand image for manufacturing suppliers. Even we could have 20%-30% pricing lower than international peers, but it's very limited to customers' total production cost. Around six years ago, the ICE sales volume is not good. So some customers, they still have production cost pressure.
So it made a pretty good opportunity for AirTAC to support their demand from non-core production process. So we have pretty good or double-digit revenue growth from auto industry for five, six years, mostly coming from market share again. And even the overall CapEx in 2026 will be slowed down from auto customers, but they still have specific demand from auto. So we just get more shares from those existing demand and still can support our auto revenue, could be double-digit revenue growth in 2026. And for smartphone, basically even some end-brand customers will release some affordable specs. And we always tell customers, always tell investors, manufacturing just supports customers' production process, not in their end product. So whenever customers, they have more new models launched and greater spec upgrade, they have to set up new capacity.
Once they have any production activities, they still have to maintain or replace their existing old capacity to be new manufactured demand. So basically, 10% revenue growth from electronics may be still not too aggressive for AirTAC. Thank you.
Thank you, Ivan.
Okay, thank you, Helen. So our next question is coming from Daisy. Daisy, you can unmute yourself in. Yeah, you can unmute yourself. Thanks.
Yeah, Ivan, thank you. Actually, I have three questions. The first is that you just mentioned the recent order book and the shipment value actually reached a record high, but you only have 10% revenue growth. Is that too conservative? And the second question is regarding your market share of the pneumatic products in 2025, and how's the comparison with SMC? The last question that you mentioned that you are going to launch the semi-related products that in the second half of this year, maybe we are going to see some revenue contribution. And could you give us some estimation for the revenue contribution next year from semi side? Thank you, Evan.
Thank you, Daisy. And basically, pneumatics is a very short-term business, and we used to give a very conservative guidance to the market at the beginning of the year. So I say the guidance for revenue growth for 2026 is over 10%, but how high it will be still depends. And our internal percentage could be higher than this number. And maybe we can reset our guidance quarterly in the next couple of quarters. So 10%, over 10%, over 10% revenue growth rate for 2026, just a number for you.
For SMC, basically, we release different sales rates on different regions to compete with SMC. We still have pretty good progress to get more shares from the market. Basically, SMC, as we know, they still have revenue growth in the China market in 2025, but maybe not just not that high as AirTAC did. For semi revenue, basically we said we can launch semi items from the second half of 2026, but whenever we launch new items, it used to take around 1 year to have a better or obvious revenue contribution. We say maybe from the second half of 2027 or 2028, we could have much higher revenue contribution from semi customers. Current revenue from semi customers is just around RMB 5 million-RMB 6 million monthly. Maybe by June of 2027, it still could be such a similar number.
And in the second half of 2027, it could be a little higher and higher, but it's still too early to tell what's our expectation for the whole year revenue in 2026. Sorry, 2027, the whole year semi revenue for 2027 is still too early to tell, even we have some numbers internally. Thank you.
Very clear. Thank you, Ivan.
Oh, hello. Hi, Ivan. Thanks for the presentation. And I'm Angela coming from Citi Research. And congrats on the strong results and outlook. My first question is about the fourth quarter gross profit margin. Can you share with us what are the key drivers for the strong fourth quarter gross profit margin? And also, is it sustainable? And the second question is about your guidance for 2026 OP margin, which is around 31%. Is it driven mostly by better leverage on OpEx, or is it driven by GP margin expansion? Thank you.
Yeah, basically, we have good numbers for fourth quarter gross margin, maybe still contributed by our internal production efficiency improvement. And we have found some new ways to improve efficiency. So basically, such contribution still can sustain it to 2026 and next couple of years. And sorry, what's your second question?
Second question is about the guidance of the OP margin of 31% for 2026. And is it driven by better leverage on OpEx, or is it driven by gross profit margin expansion?
Yeah, maybe both of them because we still can continue to find more ways to improve our internal production efficiency and also can offset the higher material cost currently. And revenue scale still could have a better fiscal leverage of OpEx. So you can find our OP margin in the fourth quarter has been around 31.3%. It still included long national holidays in October. So basically, maybe it's not difficult to sustain 31% OP margin for the whole year of 2026, even could be higher.
Got it. Thank you, Ivan. Congrats on the strong result. Thank you.
Thank you.
Thank you, Angela. So our next question will come in from Jason. Jason, you can unmute yourself. Thanks.
Hi, good afternoon, Mr. Ivan. This is Jason Luo from First Capital Management . My first question is about the future of the China market. I think many analysts are concerned about the anti-involution policy, such as in the auto sector, the decrease in the subsidy. And for the electronic sector, we see a decrease in the PC or laptop market in 2026. And for the battery, we see some maybe restricted policies. So have you seen our clients be more conservative? If not, what's the driver for our revenue growth in these three sectors in 2026? That's my first question. Thank you.
Basically, I don't know what your information got from. Basically, information from our customers, especially for battery, they're still pretty optimistic and also try to expand their capacity aggressively. The overall demand for pneumatic from battery still could be higher in 2026 than 2025, but just the base. 2025, we have low base in 2024. So we have 80+% revenue growth from the battery industry and high base for 2026. So we just expect double digit, but it still could be 30, even could be higher than 30% revenue growth from battery. We think anti-involution in the China market in the past couple of months, maybe it could have short-term impact for demand.
But basically, it could improve the transaction orders for the China market. It's good to mean the long term. So basically, pneumatic is not just a CapEx component. Also, it's a consumable product that has replacement demand. And in the past 20 years, every two years, we have up cycle and then two years down cycle. But this time, the demand was deserted from late of 2021 and just a little better from late of 2024, almost around three years. And some customers, they just expand what they have to expand in the past three years. And once they want to improve their automation level or improve their production efficiency, they still have to improve automation level, and they need more pneumatic. It's the best thing for our guidance for 2026. Thank you.
Okay, for the detail, I'd like to know for the auto sector, our clients, they are major in the traditional ICE vehicle, or also we have the customer in the new EV or PHEV sector. Thank you.
Yeah, basically, ICE customers, they have deep brand match for pneumatic suppliers. And because their company history could be much longer than AirTAC. And EV customers, EV brand customers, most of them could be young companies. Their brand match for pneumatic suppliers is not that high as ICE customers. So it's easier for AirTAC to convince EV customers to buy pneumatic from AirTAC. And we could have a higher market share in EV than ICE demand.
Okay, thank you. And it's my last question is for the CapEx value in 2026. Is there be maybe NTD 1.3, NTD 1.3, NTD 1,300 million every quarter in 2026, or maybe it's for the 17% for the revenue? That's my last question. Thank you, Ivan.
You mean OpEx?
Yeah, the OpEx value. Thank you.
Yeah, basically, we spend what we should spend and not a percentage to revenue or any index. So basically, once we have a better revenue scale, we can enjoy better fiscal leverage, especially for OpEx. And variable OpEx could be certain expenses and bonus to our sales team. And our bonus plan to sales team is based on revenue growth rate, OP margin numbers, and budget achievement. It's flexible. And R&D expenses or administration expenses could be fiscal, basically. So once we have a better revenue scale, the OpEx percentage still could be lower.
Thank you, Ivan. Have a nice day.
Thank you. You too.
Hello, Ivan. Could you hear me?
Yes, please.
Yes, it's Kenny from Nomura, and thanks for taking my question. Congrats on the very good Q4 results. I have two questions. The first one is, I want to go back to fourth quarter. I remember, correct me if I'm wrong, you were targeting flat "sales" for the fourth quarter 2025, but it turns out it's much better than we thought. Could you please provide a little bit of color on which end application you saw were better than expected and whether they are carrying such momentum into first quarter?
Yeah, basically, electronics is better than our expectation. And some customers, some electronics customers, they will wait and observe the development situation of the U.S. tariff and also postpone their demand from second quarter to maybe August. And it just around means single-digit growth in first three quarters from electronics, but it's 10% growth in fourth quarter. So the shipment or revenue from electronics is better than our expectation. Also from those traditional demand, textile, machine tool, general machinery , or packaging, also it's better than our expectation in fourth quarter of 2025.
Okay, sure. Thanks. Based on your strong January order book, I can assume the momentum at least be carried on to the first quarter, right? Is that correct?
Basically, it's correct. But what you mentioned earlier, the Chinese New Year holiday located in mid of February, and you still have a little higher uncertainty whenever the location of the Chinese New Year holiday in mid of February. But just the revenue is higher or lower, but we still believe we could have a pretty good revenue growth rate in first quarter of 2026.
Great. Very helpful. Thank you. And I have a follow-up on the semiconductor equipment. Could you provide a little bit more color on the first launch of your new products in the second half of this year? So it could be mid to high-end already, or how do you just maybe categorize the semiconductor pneumatic equipment? Like, do we start from those entry level, or we can easily go to mid to high-end? I assume it's very complicated, so I want to understand how you can upgrade your products over time.
Basically, to depth semi items is not difficult for AirTAC. And we still will start this business from back-end customers, but it doesn't mean we just can support. It doesn't mean we just can support back-end customers' demand. We still will launch more items to support from low-end, mid-end, even high application gradually in coming years.
Okay. Thank you. Very helpful. Thank you again, Ivan.
Thank you.
Okay. Thank you, Kenny. So our next question will be coming from Bill. Bill, you can unmute yourself now. Thanks. Okay. Sorry. Okay. Bill is offline right now, so we have Jeremy. Jeremy, you can unmute yourself right now. Thanks.
Thank you very much. Thank you for the opportunity. I just had kind of like two small questions. The first question is, so it sounds like you still have quite decent momentum right now. What would you say is you think will be your biggest risk for 2026?
Current government policies.
Okay. Meaning it might be maybe delayed. It might not come as fast as expected. Is it?
We expect government can continue to release or launch more stimulus policies. And how long it will last or how strong it will be still depends on government.
Okay. One small kind of like housekeeping question, because I couldn't really hear one number earlier on in your presentation. Your auto related revenue in the fourth quarter was 31% year-over-year growth. And how many percent of total revenue?
You mean considered revenue or auto revenue?
Auto revenue for fourth quarter. How much?
10% to considered revenue from auto and 31% growth.
Okay. Okay. Got it. Okay. That's all for me. So biggest risk is government policies. Okay. Got it. Thank you.
Thank you.
Thank you, Jeremy. So we have Bill on the line right now. Bill, you can unmute yourself and start to ask questions. Thanks.
Thank you, Charles. Hey, Ivan. This is Bill from JP Morgan. I have two questions. First of all, can I have the inventory days as of fourth quarter? Given you have very strong ordering tech in January, do you plan to further raise up your utilization rates in first quarter and second quarter? Second is for the cycle of the linear guide. I think in the past, usually when AirTAC shows some recovery sign, linear guide demand will come in up maybe two to three quarters later. But if you're looking into the competition landscape in China, in recent years, we are seeing more competitors enter the linear guide business. So for this round of the linear guide demand recovery, apart from the cyclical view, is there any indicators you think can point to a better growth of the linear guide business?
Because if you're looking in 2025, actually revenue already grew pretty good, but the linear guide demand is still weak.
Okay. Basically, 110% utilization rate for pneumatic is good enough. We still can support the shipping volume growth in 2026. For linear guide, basically, linear guide is a CapEx component. It's not like pneumatic with CapEx demand and component replacement demand. It's a little difficult to find index for linear guide demand, basically. Even we expect the linear guide demand will be better or recover from 2026. It's still too early to tell peers will raise their pricing or not. But basically, we still can convince more customers, AirTAC, linear guide is good enough. And 2025, even in such low demand environment, we still have 20%+ volume growth. Once we spend more time to convince more customers, AirTAC is good enough. We believe we still can enjoy pretty good volume growth in 2026.
Thanks, Ivan. That's all my question. Thank you. Thank you, Chao.
Thank you.
Thank you, Bill. So our next question will come in from Eric. Eric, you can unmute yourself. Thanks.
Ivan, can you hear me?
Yes, please.
Okay. So, well, thank you so much for the briefing. And it's good to hear that you're getting more positive for the outlook. But I'm just curious about, we have noticed that China has recently tightened the subsidy standards for new energy vehicles and consumer electronics. So could you comment on whether these changes have affected your expectations or guidance for 2026? Thank you.
Okay. Basically, based on past experience, once government wants to encourage special application, even the existing or old policy have been terminated, they still will launch another new policy to support such application or demand. And our main revenue growth from auto, basically, is coming from market share again. And our market share in total China pneumatic market in China could be around 30%. But our market share in China auto industry just around 10%. So we still have so much addressable market to get more shares from China auto and support our revenue growth. Thank you.
Okay. Thanks, Ivan. And thanks, Chao.
Thank you, Eric. So, Ivan, I would like to ask one question if I can. So you just mentioned for the dividend in 2026, it could be probably around 65% in its payout every low level in the past few years. So I'm just wondering, in terms of the capital allocation, don't you really find any new investment target in the core business side, for example, investing in more capacity in pneumatic or linear guide or even for the electric actuator versus that you decided to just pay out for dividends? So how should we think about the ROI for this kind of new business or investing existing capacity? Thank you.
Okay. Basically, in past three or four years, we spent some CapEx to improve our equipment productivities. Some equipment, the output volume could be around 20% higher than four or five years ago. So even we have slowed down our CapEx number from 2023, but our product capacity or output volume still can support our revenue growth or shipment volume growth by teens, even double digit. So basically, we have been net cash for two years, and low CapEx, higher payout ratio won't affect our business in coming years. And we said in 2026, even 2027, our CapEx just could be around NTD 2 billion-NTD 3 billion. And we still continue to develop electric actuator product or business. And maybe we will set up new capacity to support electric actuator parts manufacturing in 2028 or 2029. And even we will increase such new business capacity.
The CapEx could be RMB 3 billion or a little more than RMB 3 billion. It won't be RMB 4 billion, RMB 5 billion as our peak CapEx period. So basically, higher payout ratio won't affect our business development in coming years. Thank you.
Thank you, Ivan. That's super clear. So that's my last question regarding the market share target for pneumatic, linear guide, electrical actuator in the long term. Do you have this kind of target at hand or any target you can share with us on these three business segments? Thank you.
Basically, we expect we could have RMB 9 billion, even a little higher than RMB 9 billion RMB revenue from pneumatic by end of 2030. And linear guide still could be RMB 3 billion, RMB 4 billion, RMB 3 billion-RMB 4 billion in around 10 years. And we have another new business, electrical controller. Maybe to achieve RMB 3 billion in around 10 years won't be difficult for AirTAC. And it's still too early to tell electrical actuator revenue number. Even electrical actuator can support robotic arms or shipment growing demand directly, but it's still too early to tell. Thank you.
Got you. Got you. Thank you, Ivan. So given the interest of time and Ivan's already very comprehensive introduction of the company's fourth quarter and results and the guidance outlook in 2026 and beyond, I would like to conclude the call here. And thanks for everyone to join this call. And thank you, Ivan. And congratulations for the fantastic fourth quarter and good 2026 guidance. Yeah.
Okay. Thank you, Chao. And thank you, everybody. Have a good day.
Okay. Bye-bye.