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ACCTON — Audit Report / Information 2025
May 13, 2026
52018_rns_2026-05-13_88d17c7a-a1ee-4e4e-9b36-7baed6b1268c.pdf
Audit Report / Information
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Accton Technology Corporation
Financial Statements for the
Years Ended December 31, 2025 and 2024 and
Independent Auditors’ Report
Deloitte.
勤業眾信
勤業眾信聯合會計師事務所
110421 台北市信義區松仁路100號20樓
Deloitte & Touche
20F, Taipei Nan Shan Plaza
No. 100, Songren Rd.,
Xinyi Dist., Taipei 110421, Taiwan
Tel: +886 (2) 2725-9988
Fax: +886 (2) 4051-6888
www.deloitte.com.tw
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders
Accton Technology Corporation
Opinion
We have audited the accompanying financial statements of Accton Technology Corporation (the “Company”) which comprise the balance sheets as of December 31, 2025 and 2024, and the statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the financial statements, including material accounting policy information (collectively referred to as the “financial statements”).
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.
Basis for Opinion
We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements for the year ended December 31, 2025. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key audit matters for the Company’s financial statements for the year ended December 31, 2025 are stated as follows:
Revenue recognition
For the year ended December 31, 2025, the Company’s net operating revenue was NT$246,888,773 thousand. Refer to Notes 4 and 22 to the financial statements for detailed information on accounting policies regarding revenue.
We evaluated that certain sales models of the Company carry the risk of sales authenticity. Therefore, we have identified this as a key audit matter for the year ended December 31, 2025 and have performed the following audit procedures to address this risk.
Our audit procedures performed in respect of the above key audit matter included the following:
- We evaluated the appropriateness of the Company’s revenue recognition accounting policies, obtained an understanding of the internal control design and operating procedures regarding the sales transaction cycle, and we assessed the effectiveness of the internal control operations.
- We selected appropriate samples from sales and inspected and confirmed that purchase orders and delivery orders were consistent with invoices.
- We selected samples of revenue details and confirmed that actual receipts and certificates of remittances were consistent with the recorded revenue from corresponding entities.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance (including the audit committee) are responsible for overseeing the Company’s financial reporting process.
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
-
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.
-
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
-
Obtain sufficient and appropriate audit evidence regarding the financial information of entities or business activities within the Company to express an opinion on the financial statements. We are responsible for the direction, supervision, and performance of the audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements for the year ended December 31, 2025 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
The engagement partners on the audits resulting in this independent auditors’ report are Ming Yuan Chung and Hsin Tung Lin.
Ming-Yuan Chung
Hsin-Tung Lin
Deloitte & Touche
Taipei, Taiwan
Republic of China
March 12, 2026
Notice to Readers
The accompanying financial statements are intended only to present the financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such financial statements are those generally applied in the Republic of China.
For the convenience of readers, the independent auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ report and financial statements shall prevail.
ACCTON TECHNOLOGY CORPORATION
BALANCE SHEETS
DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars)
| ASSETS | 2025 | 2024 | ||
|---|---|---|---|---|
| Amount | % | Amount | % | |
| CURRENT ASSETS | ||||
| Cash and cash equivalents (Notes 4, 6 and 32) | $ 24,121,226 | 16 | $ 13,656,341 | 15 |
| Financial assets at fair value through profit or loss - current (Notes 4, 7 and 32) | 3,502,390 | 2 | 743,036 | 1 |
| Financial assets at fair value through other comprehensive income - current (Notes 4, 8 and 32) | 426,284 | - | 140,143 | - |
| Financial assets at amortized cost - current (Notes 4, 9 and 32) | 19,166,535 | 12 | 5,786,405 | 6 |
| Notes and trade receivables, net (Notes 4, 5, 10, 22 and 32) | 30,044,392 | 19 | 16,404,844 | 18 |
| Receivables from related parties (Notes 4, 5, 32 and 33) | 13,621,418 | 9 | 9,727,324 | 11 |
| Other receivables, net (Notes 4, 10 and 32) | 606,500 | - | 910,091 | 1 |
| Other receivables from related parties (Notes 4, 32 and 33) | 17,528,217 | 11 | 9,619,151 | 11 |
| Inventories (Notes 4, 5 and 11) | 22,891,246 | 15 | 13,657,144 | 15 |
| Prepayments (Notes 16 and 33) | 629,416 | 1 | 493,352 | 1 |
| Other current assets-other (Note 16) | 40,943 | - | 7,235 | - |
| Total current assets | 132,578,567 | 85 | 71,145,066 | 79 |
| NON-CURRENT ASSETS | ||||
| Financial assets at fair value through profit or loss - non-current (Notes 4, 7 and 32) | 158,948 | - | 242,366 | - |
| Financial assets at fair value through other comprehensive income - non-current (Notes 4, 8 and 32) | 782,408 | 1 | 451,381 | 1 |
| Financial assets at amortized cost - non-current (Notes 9 and 32) | 914,820 | 1 | 1,219,145 | 1 |
| Investments accounted for using the equity method (Notes 4, 12 and 33) | 9,855,267 | 6 | 9,775,500 | 11 |
| Property, plant and equipment (Notes 4, 13 and 33) | 6,847,686 | 4 | 4,359,671 | 5 |
| Right-of-use assets (Notes 4 and 14) | 2,304,455 | 2 | 1,764,378 | 2 |
| Intangible assets (Notes 4, 15 and 33) | 200,851 | - | 174,800 | - |
| Deferred income tax assets (Notes 4 and 24) | 475,498 | - | 273,576 | - |
| Prepayments for equipment | 921,060 | 1 | 506,870 | 1 |
| Refundable deposits (Note 32) | 90,744 | - | 51,187 | - |
| Net defined benefit assets - non-current (Note 20) | - | - | 8,429 | - |
| Other financial assets - non-current (Notes 16, 32 and 34) | 72,263 | - | 72,242 | - |
| Other non-current assets-other (Note 16) | 42,306 | - | 21,516 | - |
| Total non-current assets | 22,666,306 | 15 | 18,921,061 | 21 |
| LIABILITIES AND EQUITY | 2025 | 2024 | ||
| --- | --- | --- | --- | --- |
| Amount | % | Amount | % | |
| CURRENT LIABILITIES | ||||
| Contract liabilities - current (Notes 4 and 22) | $ 6,467,817 | 4 | $ 6,658,199 | 7 |
| Trade payables (Note 32) | 53,690,993 | 35 | 24,769,917 | 28 |
| Trade payables to related parties (Notes 32 and 33) | 18,846,189 | 12 | 8,790,909 | 10 |
| Accrued compensation of employees and remuneration of directors (Note 23) | 4,178,301 | 3 | 1,909,397 | 2 |
| Payables to contractors and equipment suppliers (Note 32) | 755,357 | - | 495,928 | 1 |
| Other payables (Notes 18 and 32) | 4,382,142 | 3 | 5,041,912 | 6 |
| Other payables to related parties (Notes 32 and 33) | 122,842 | - | 416,116 | - |
| Income tax payable (Notes 4 and 24) | 5,513,654 | 4 | 2,300,237 | 3 |
| Provisions - current (Notes 4 and 19) | 228,303 | - | 186,816 | - |
| Lease liabilities - current (Notes 4 and 14) | 293,386 | - | 140,956 | - |
| Deferred revenue - current (Notes 17 and 27) | 98 | - | 5,117 | - |
| Long-term borrowings - current portion (Notes 4, 17, 27 and 32) | 158,910 | - | 300,558 | - |
| Refund liabilities - current (Note 22) | 64,054 | - | 40,425 | - |
| Total current liabilities | 94,702,046 | 61 | 51,056,487 | 57 |
| NON-CURRENT LIABILITIES | ||||
| Long-term borrowings (Notes 4, 17, 27 and 32) | 84,000 | - | 241,376 | - |
| Deferred income tax liabilities (Notes 4 and 24) | 984,114 | 1 | 965,814 | 1 |
| Lease liabilities - non-current (Notes 4 and 14) | 1,903,913 | 1 | 1,474,976 | 2 |
| Deferred revenue - non-current (Notes 17 and 27) | - | - | 98 | - |
| Net defined benefit liabilities - non-current (Notes 4 and 20) | 19,101 | - | - | - |
| Guarantee deposits (Note 32) | 12,169 | - | 816 | - |
| Total non-current liabilities | 3,003,297 | 2 | 2,683,080 | 3 |
| Total liabilities | 97,705,343 | 63 | 53,739,567 | 60 |
| EQUITY (Notes 4, 21 and 26) | ||||
| Share capital | ||||
| Ordinary shares | 5,611,179 | 4 | 5,611,179 | 6 |
| Capital surplus | 915,072 | 1 | 898,877 | 1 |
| Retained earnings | ||||
| Legal reserve | 5,866,381 | 4 | 4,528,737 | 5 |
| Special reserve | - | - | 438,274 | 1 |
| Unappropriated earnings | 41,329,996 | 26 | 22,004,339 | 24 |
| Total retained earnings | 47,196,377 | 30 | 26,971,350 | 30 |
| Other equity | 3,867,901 | 2 | 2,896,153 | 3 |
| Treasury shares | (50,999) | - | (50,999) | - |
| Total equity | 57,539,530 | 37 | 36,326,560 | 40 |
| TOTAL | $155,244,873 | 100 | $ 90,066,127 | 100 |
The accompanying notes are an integral part of the financial statements.
ACCTON TECHNOLOGY CORPORATION
STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars, Except Earnings Per Share)
| 2025 | 2024 | |||
|---|---|---|---|---|
| Amount | % | Amount | % | |
| OPERATING REVENUE (Notes 4, 22 and 33) | $ 246,888,773 | 100 | $ 103,703,241 | 100 |
| OPERATING COSTS (Notes 4, 11, 20, 23 and 33) | 204,659,266 | 83 | 83,796,380 | 81 |
| GROSS PROFIT | 42,229,507 | 17 | 19,906,861 | 19 |
| UNREALIZED REALIZED GAIN ON TRANSACTIONS WITH SUBSIDIARIES (Note 4) | (296,994) | - | (65,363) | - |
| REALIZED GROSS PROFIT | 41,932,513 | 17 | 19,841,498 | 19 |
| OPERATING EXPENSES (Notes 4, 10, 20, 23, 33 and 36) | ||||
| Selling and marketing | 1,894,978 | 1 | 1,476,777 | 1 |
| General and administrative | 2,884,617 | 1 | 1,876,906 | 2 |
| Research and development | 6,412,936 | 3 | 3,954,442 | 4 |
| Total operating expenses | 11,192,531 | 5 | 7,308,125 | 7 |
| OPERATING INCOME | 30,739,982 | 12 | 12,533,373 | 12 |
| NON-OPERATING INCOME AND EXPENSES (Notes 4, 12, 23, 27 and 33) | ||||
| Interest income | 972,466 | 1 | 709,413 | 1 |
| Other income | 140,884 | - | 132,812 | - |
| Other gains and losses | 254,069 | - | 619,474 | - |
| Finance costs | (53,398) | - | (40,799) | - |
| Share of profit of subsidiaries and associates | 595,536 | - | 724,096 | 1 |
| Total non-operating income and expenses | 1,909,557 | 1 | 2,144,996 | 2 |
| PROFIT BEFORE INCOME TAX | 32,649,539 | 13 | 14,678,369 | 14 |
| INCOME TAX EXPENSE (Notes 4 and 24) | 6,307,827 | 2 | 2,678,698 | 2 |
| NET INCOME FOR THE YEAR | 26,341,712 | 11 | 11,999,671 | 12 |
| (Continued) |
ACCTON TECHNOLOGY CORPORATION
STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars, Except Earnings Per Share)
| 2025 | 2024 | |||
|---|---|---|---|---|
| Amount | % | Amount | % | |
| OTHER COMPREHENSIVE INCOME (LOSS) | ||||
| (Notes 4, 20 and 21) | ||||
| Items that will not be reclassified subsequently to profit or loss: | ||||
| Remeasurement of defined benefit plans | $ (29,125) | - | $ 24,847 | - |
| Unrealized gain (loss) on investments in equity instruments at fair value through other comprehensive income | 71,861 | - | (1,137,847) | (1) |
| Share of the other comprehensive income of subsidiaries accounted for using the equity method | 824,414 | - | 5,544,814 | 5 |
| Items that may be reclassified subsequently to profit or loss: | ||||
| Exchange differences on translation of the financial statements of foreign operations | 177,489 | - | 279,382 | - |
| Other comprehensive income for the year, net of income tax | 1,044,639 | - | 4,711,196 | 4 |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR | $ 27,386,351 | 11 | $ 16,710,867 | 16 |
| EARNINGS PER SHARE (Note 25) | ||||
| Basic | $ 47.13 | $ 21.49 | ||
| Diluted | $ 46.79 | $ 21.35 |
The accompanying notes are an integral part of the financial statements.
(Concluded)
ACCTON TECHNOLOGY CORPORATION
STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars)
| Share Capital | Capital Surplus | Retained Earnings | Other Equity | Treasury Shares | Total Equity | ||||
|---|---|---|---|---|---|---|---|---|---|
| Legal Reserve | Special Reserve | Unappropriated Earnings | Exchange Differences on Translation of the Financial Statements of Foreign Operations | Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income | |||||
| BALANCE ON JANUARY 1, 2024 | $ 5,603,564 | $ 874,754 | $ 3,636,972 | $ 462,016 | $ 15,099,756 | $ (465,594) | $ 27,320 | $ (50,999) | $ 25,187,789 |
| Adjustments to capital surplus due to the distribution of cash dividends to subsidiaries | - | 22,089 | - | - | - | - | - | - | 22,089 |
| Appropriation of 2023 earnings | |||||||||
| Legal reserve | - | - | 891,765 | - | (891,765) | - | - | - | - |
| Special reserve | - | - | - | (23,742) | 23,742 | - | - | - | - |
| Cash dividends distributed by the Company | - | - | - | - | (5,603,834) | - | - | - | (5,603,834) |
| Net profit for the year ended December 31, 2024 | - | - | - | - | 11,999,671 | - | - | - | 11,999,671 |
| Other comprehensive income for the year ended December 31, 2024, net of income tax | - | - | - | - | 24,847 | 279,382 | 4,406,967 | - | 4,711,196 |
| Total comprehensive income for the year ended December 31, 2024, net of income tax | - | - | - | - | 12,024,518 | 279,382 | 4,406,967 | - | 16,710,867 |
| Share-based payment arrangements | 7,615 | 2,034 | - | - | - | - | - | - | 9,649 |
| Disposal of investments in equity instruments at fair value through other comprehensive income | - | - | - | - | 1,351,922 | - | (1,351,922) | - | - |
| BALANCE ON DECEMBER 31, 2024 | 5,611,179 | 898,877 | 4,528,737 | 438,274 | 22,004,339 | (186,212) | 3,082,365 | (50,999) | 36,326,560 |
| Adjustments to capital surplus due to the distribution of cash dividends to subsidiaries | - | 24,308 | - | - | - | - | - | - | 24,308 |
| Changes in percentage of ownership interest in subsidiaries | - | (8,113) | - | - | (17,279) | - | - | - | (25,392) |
| Appropriation of 2024 earnings | |||||||||
| Legal reserve | - | - | 1,337,644 | - | (1,337,644) | - | - | - | - |
| Special reserve | - | - | - | (438,274) | 438,274 | - | - | - | - |
| Cash dividends distributed by the Company | - | - | - | - | (6,172,297) | - | - | - | (6,172,297) |
| Net profit for the year ended December 31, 2025 | - | - | - | - | 26,341,712 | - | - | - | 26,341,712 |
| Other comprehensive income (loss) for the year ended December 31, 2025, net of income tax | - | - | - | - | (29,125) | 177,489 | 896,275 | - | 1,044,639 |
| Total comprehensive income for the year ended December 31, 2025, net of income tax | - | - | - | - | 26,312,587 | 177,489 | 896,275 | - | 27,386,351 |
| Disposal of investments in equity instruments at fair value through other comprehensive income | - | - | - | - | 102,016 | - | (102,016) | - | - |
| BALANCE ON DECEMBER 31, 2025 | $ 5,611,179 | $ 915,072 | $ 5,866,381 | $ - | $ 41,329,996 | $ (8,723) | $ 3,876,624 | $ (50,999) | $ 57,539,530 |
The accompanying notes are an integral part of the financial statements.
ACCTON TECHNOLOGY CORPORATION
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars)
| 2025 | 2024 | |
|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | ||
| Income before income tax | $ 32,649,539 | $ 14,678,369 |
| Adjustments for: | ||
| Depreciation expense | 1,141,104 | 678,382 |
| Amortization expense | 71,430 | 59,224 |
| Net (profit) loss on fair value charges of financial assets designated as at fair value through profit or loss | (109,200) | 41,998 |
| Finance costs | 53,398 | 40,799 |
| Disposal gain on financial assets measured at amortized cost | (45) | - |
| Interest income | (972,466) | (709,413) |
| Dividend income | (9,700) | (16,870) |
| Share of profit of subsidiaries and associates | (595,536) | (724,096) |
| Gain on disposal of property, plant and equipment, net | (11,345) | (47,252) |
| Write (reversal)-downs of inventories | 480,259 | (7,470) |
| Unrealized gain on the transactions with subsidiaries | 352,971 | 109,653 |
| Unrealized loss (gain) on foreign currency exchange | 456,676 | (387,678) |
| Amortization of grant revenue | (5,114) | (8,046) |
| Gain on lease modification | (108) | - |
| Changes in operating assets and liabilities | ||
| Trade receivables, net | (13,567,741) | (8,271,935) |
| Receivables from related parties | (4,158,954) | (3,085,770) |
| Other receivables | 345,840 | (303,399) |
| Other receivables from related parties | (7,634,471) | (8,511,988) |
| Inventories | (9,714,361) | (4,595,789) |
| Prepayments | (136,064) | (228,419) |
| Other current assets | (33,708) | 2,231 |
| Contract liabilities | (190,382) | 460,833 |
| Trade payables | 28,040,530 | 12,922,361 |
| Trade payables to related parties | 10,015,541 | 5,494,771 |
| Accrued compensation of employees and remuneration of directors | 2,268,904 | 411,286 |
| Other payables | (574,868) | 2,256,864 |
| Other payables to related parties | (291,428) | 65,853 |
| Provisions | 41,487 | (70,651) |
| Refund liabilities | 23,629 | 23,319 |
| Net defined benefit liabilities | (1,595) | (1,116) |
| Cash generated from operations | 37,934,222 | 10,276,051 |
| Interest paid | (51,983) | (38,100) |
| Income tax paid | (3,443,717) | (3,430,236) |
| Net cash generated from operating activities | 34,438,522 | 6,807,715 |
| (Continued) |
ACCTON TECHNOLOGY CORPORATION
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars)
| 2025 | 2024 | |
|---|---|---|
| CASH FLOWS FROM INVESTING ACTIVITIES | ||
| Purchase of financial assets at fair value through other comprehensive income | $ (337,348) | $ (352,579) |
| Proceeds from disposal of financial assets at fair value through other comprehensive income | 45,881 | 120,032 |
| Purchase of financial assets at amortized cost | (26,450,367) | (17,848,773) |
| Proceeds from disposal of financial assets at amortized cost | 13,418,693 | 17,526,595 |
| Purchase of financial assets at fair value through profit or loss | (3,135,693) | (2,230,420) |
| Proceeds from disposal of financial assets at fair value through profit or loss | 480,802 | 3,167,164 |
| Acquisition of subsidiary | (732,270) | (594,340) |
| Proceeds from capital reduction of investments accounted for using equity method | 1,333,743 | 30,519 |
| Acquisition of property, plant and equipment | (3,533,764) | (2,375,071) |
| Proceeds from disposal of property, plant and equipment | 75,119 | 67,060 |
| Increase in refundable deposits | (39,557) | (14,139) |
| Acquisition of intangible assets | (97,481) | (99,984) |
| (Increase) decrease in other financial assets | (21) | 7,381 |
| Increase in other non-current assets | (20,790) | (46) |
| Interest received | 930,301 | 636,874 |
| Dividends received from investments accounted for using the equity method | 813,813 | 4,556,999 |
| Dividends received | 9,700 | 16,870 |
| Net cash (used in) generated from investing activities | (17,239,239) | 2,614,142 |
| CASH FLOWS FROM FINANCING ACTIVITIES | ||
| Proceeds from short-term borrowings | 156,905 | 1,000 |
| Repayments of short-term borrowings | (156,905) | (1,000) |
| Repayments of long-term borrowings | (300,558) | (300,558) |
| Proceeds from guarantee deposits received | 11,353 | - |
| Repayment of the principal portion of lease liabilities | (262,396) | (169,584) |
| Dividends paid to owners of the Company | (6,172,297) | (5,603,834) |
| Employee share options | - | 9,649 |
| Net cash used in financing activities | (6,723,898) | (6,064,327) |
| EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH AND CASH EQUIVALENTS HELD IN FOREIGN CURRENCIES | (10,500) | 272,740 |
| (Continued) |
- 9 -
ACCTON TECHNOLOGY CORPORATION
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars)
| 2025 | 2024 | |
|---|---|---|
| NET INCREASE IN CASH AND CASH EQUIVALENTS | $ 10,464,885 | $ 3,630,270 |
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR | 13,656,341 | 10,026,071 |
| CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR | $ 24,121,226 | $ 13,656,341 |
The accompanying notes are an integral part of the financial statements. (Concluded)
- 10 -
ACCTON TECHNOLOGY CORPORATION
NOTES TO FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)
1. GENERAL INFORMATION
Accton Technology Corporation (the "Company") was incorporated in Hsinchu Science-based Industrial Park in February 1988. The Company develops, manufactures and sells innovative high-quality products for computer network systems and wireless land area network (LAN) hardware and software products and renders related technical consulting and engineering design services.
The Company's shares have been listed on the Taiwan Stock Exchange since November 1995.
The functional currency of the Company is the New Taiwan dollar.
2. APPROVAL OF FINANCIAL STATEMENTS
The financial statements were approved by the board of directors on March 12, 2026.
3. APPLICATION OF NEW AMENDED AND REVISED STANDARDS AND INTERPRETATIONS
a. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the "IFRS Accounting Standards") endorsed and issued into effect by the Financial Supervisory Commission (FSC).
1) Amendments to IAS 21 "Lack of Exchangeability"
The initial application of the Amendments to IAS 21 "Lack of Exchangeability" did not have a material impact on the Company's accounting policies.
b. The IFRS Accounting Standards endorsed by the FSC for application starting from 2026
| New, Amended and Revised Standards and Interpretations | Effective Date Announced by IASB |
|---|---|
| Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” | January 1, 2026 |
| Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity” | January 1, 2026 |
| Annual Improvements to IFRS Accounting Standards - Volume 11 | January 1, 2026 |
| IFRS 17 “Insurance Contracts” (including the 2020 and 2021 amendments to IFRS 17) | January 1, 2023 |
Except for the above impact, as of the date the financial statements were authorized for issue, the Company has assessed that the application of other standards and interpretations will not have a material impact on the Company's financial position and financial performance.
c. The IFRS Accounting Standards in issue but not yet endorsed and issued into effect by the FSC
| New, Amended and Revised Standards and Interpretations | Effective Date Announced by IASB (Note 1) |
|---|---|
| Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture” | To be determined by IASB |
| IFRS 18 “Presentation and Disclosure in Financial Statements” | January 1, 2027 (Note 2) |
| IFRS 19 “Subsidiaries without Public Accountability: Disclosures” (including the 2025 amendments to IFRS 19) | January 1, 2027 |
| Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency” | January 1, 2027 |
Note 1: Unless stated otherwise, the above IFRS Accounting Standards are effective for annual reporting periods beginning on or after their respective effective dates.
Note 2: On September 25, 2025, the FSC announced that IFRS 18 will take effect starting from January 1, 2028. Domestic entities could elect to apply IFRS 18 for an earlier period after the endorsement of IFRS 18 by the FSC.
Except for the above impact, as of the date the financial statements were authorized for issue, the Company is continuously assessing the other impacts of the above amended standards and interpretations on the Company's financial position and financial performance and will disclose the relevant impact when the assessment is completed.
4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION
a. Statement of compliance
The financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.
b. Basis of preparation
The financial statements have been prepared on the historical cost basis except for financial instruments that are measured at fair values and net defined benefit assets liabilities that are measured at the present value of the defined benefit obligation less the fair value of plan assets.
The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and based on the significance of the inputs to the fair value measurement in its entirety, are described as follows:
1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;
2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
3) Level 3 inputs are unobservable inputs for an asset or liability.
When preparing the parent company only financial statements, the Company used the equity method to account for its investments in subsidiaries and associates. In order for the amounts of the net profit for the year, other comprehensive income for the year and total equity in the parent company only financial statements to be the same with the amounts attributable to the owners of the Company in its financial statements, adjustments arising from the differences in accounting treatments between the parent company only basis and the consolidated basis were made to investments accounted for using the equity
method, the share of profit or loss of subsidiaries and associates, the share of other comprehensive income of subsidiaries and the related equity items, as appropriate, in these parent company only financial statements.
c. Classification of current and non-current assets and liabilities
Current assets include:
1) Assets held primarily for the purpose of trading;
2) Assets expected to be realized within 12 months after the reporting period; and
3) Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.
Current liabilities include:
1) Liabilities held primarily for the purpose of trading;
2) Liabilities due to be settled within 12 months after the reporting period; and
3) Liabilities for which the Company does not have the substantial right at the end of the reporting period to defer settlement for at least 12 months after the reporting period.
Assets and liabilities that are not classified as current are classified as non-current.
d. Business combinations
Acquisitions of businesses are accounted for using the acquisition method. Acquisition-related costs are generally recognized in profit or loss as they are incurred.
Goodwill is measured as the excess of the sum of the consideration transferred and the fair value of the acquirer's previously held equity interests in the acquiree over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed.
Non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the entity's net assets in the event of liquidation may be measured at fair value. Other types of non-controlling interests are measured at fair value.
e. Foreign currencies
In preparing the financial statements of the Company, transactions in currencies other than the Company's functional currency (i.e., foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.
At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the period in which they arise.
Non-monetary items denominated in foreign currencies that are measured at fair value are retranslated at the rates prevailing at the date when the fair value is determined. Exchange differences arising from the retranslation of non-monetary items are included in profit or loss for the period except for exchange differences arising from the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income; in which cases, the exchange differences are also recognized directly in other comprehensive income.
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Non-monetary item denominated in a foreign currency and measured at historical cost is stated at the reporting currency as originally translated from the foreign currency.
For the purpose of presenting parent company only financial statements, the financial statements of the Company’s foreign operations (including subsidiaries and associates in other countries) that are prepared using functional currencies which are different from the currency of the Company are translated into the presentation currency, the New Taiwan dollar, as follows: Assets and liabilities are translated at the exchange rates prevailing at the end of the reporting period; and income and expense items are translated at the average exchange rates for the period. The resulting currency translation differences are recognized in other comprehensive income.
On the disposal of a foreign operation (i.e., a disposal of the Company’s entire interest in a foreign operation, or a disposal involving the loss of control over a subsidiary that includes a foreign operation), all of the exchange differences accumulated in equity in respect of that operation are reclassified to profit or loss.
In a partial disposal of a subsidiary that does not result in the Company losing control over the subsidiary, the proportionate share of accumulated exchange differences is included in the calculation of equity transactions but is not recognized in profit or loss. For all other partial disposals, the proportionate share of the accumulated exchange differences recognized in other comprehensive income is reclassified to profit or loss.
f. Inventories
Inventories consist of raw materials, work-in-progress, finished goods and merchandise and are stated at the lower of cost or net realizable value. Inventory write-downs are made by item, except where it may be appropriate to group similar or related items. The net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded at weighted-average cost on the balance sheet date. Inventory is evaluated and recorded at standard cost under daily operation; but on the closing date, the Company will calculate the actual cost of inventory by weighted average method.
g. Investments in subsidiaries
The Company uses the equity method to account for its investments in subsidiaries.
Subsidiaries are the entities controlled by the Company.
Under the equity method, the investment is initially recognized at cost and adjusted thereafter to recognize the Company’s share of the profit or loss and other comprehensive income of the subsidiary. The Company also recognizes the changes in the Company’s share of equity of subsidiaries.
Changes in the Company’s ownership interest in a subsidiary that do not result in the Company losing control of the subsidiary are accounted for as equity transactions. The Company recognizes directly in equity any difference between the carrying amount of the investment and the fair value of the consideration paid or received.
When the Company’s share of losses of a subsidiary exceeds its interest in that subsidiary (which includes any carrying amount of the investment accounted for using the equity method and long-term interests that, in substance, form part of the Company’s net investment in the subsidiary), the Company continues recognizing its share of further loss, if any.
Any excess of the cost of acquisition over the Company’s share of the net fair value of the identifiable assets and liabilities of a subsidiary that constitutes a business at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized. Any excess of the Company’s share of the net fair value of the identifiable assets and liabilities of a
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subsidiary that constitutes a business over the cost of acquisition is recognized immediately in profit or loss.
The Company assesses its investment for any impairment by comparing the carrying amount with the estimated recoverable amount as assessed based on the investee's financial statements as a whole. Impairment loss is recognized when the carrying amount exceeds the recoverable amount. If the recoverable amount of the investment subsequently increases, the Company recognizes a reversal of the impairment loss; the adjusted post-reversal carrying amount should not exceed the carrying amount that would have been recognized (net of amortization or depreciation) had no impairment loss been recognized in prior years. An impairment loss recognized on goodwill cannot be reversed in a subsequent period.
When the Company loses control of a subsidiary, it recognizes the investment retained in the former subsidiary at its fair value at the date when control is lost. The difference between the fair value of the retained investment plus any consideration received and the carrying amount of the previous investment at the date when control is lost is recognized as a gain or loss in profit or loss. Besides this, the Company accounts for all amounts previously recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required had the Company directly disposed of the related assets or liabilities.
Profits and losses resulting from downstream transactions are eliminated in full only in the Company's parent company only financial statements. Profits and losses resulting from upstream transactions and transactions between subsidiaries are recognized in the Company's parent company only financial statements only to the extent of interests in the subsidiaries that are not related to the Company.
h. Investments in associates
An associate is an entity over which the Company has significant influence and that is not a subsidiary.
The Company uses the equity method to account for its investments in associates.
Under the equity method, investments in an associate are initially recognized at cost and adjusted thereafter to recognize the Company's share of the profit or loss and other comprehensive income of the associate. The Company also recognizes the changes in the Company's share of the equity of associates attributable to the Company.
When the Company subscribes for additional new shares of an associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Company's proportionate interest in the associate. The Company records such a difference as an adjustment to investments with the corresponding amount charged or credited to capital surplus - changes in capital surplus from investments in associates accounted for using the equity method. If the Company's ownership interest is reduced due to its additional subscription of the new shares of the associate, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate is reclassified to profit or loss on the same basis as would be required had the investee directly disposed of the related assets or liabilities. When the adjustment should be debited to capital surplus, but the capital surplus recognized from investments accounted for using the equity method is insufficient, the shortage is debited to retained earnings.
When the Company transacts with its associate, profits and losses resulting from the transactions with the associate are recognized in the Company's parent company only financial statements only to the extent of interests in the associate that are not related to the Company.
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i. Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment loss.
Property, plant and equipment in the course of construction are measured at cost less any recognized impairment loss. Cost includes professional fees and borrowing costs eligible for capitalization. Before that asset reaches its intended use are measured at the lower of cost or net realizable value, and any proceeds from selling those and the cost of those are recognized in profit or loss. Such assets are depreciated and classified to the appropriate categories of property, plant and equipment when completed and ready for their intended use.
Depreciation of property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each reporting period, with the effects of any changes in the estimates accounted for on a prospective basis.
On derecognition of an item of property, plant and equipment, the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss.
j. Intangible assets
1) Intangible assets acquired separately
Intangible assets with finite useful lives that are acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment loss. Amortization is recognized on a straight-line basis. The estimated useful lives, residual values, and amortization methods are reviewed at the end of each reporting period, with the effect of any changes in the estimates accounted for on a prospective basis.
2) Derecognition of intangible assets
On derecognition of an intangible asset, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss.
k. Impairment of property, plant and equipment, right-of-use asset and intangible assets
At the end of each reporting period, the Company reviews the carrying amounts of its property, plant and equipment, right-of-use asset and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.
When an impairment loss is subsequently reversed, the carrying amount of the asset or cash-generating unit is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized for the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized in profit or loss.
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Financial instruments
Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issuance of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.
1) Financial assets
All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.
a) Measurement categories
Financial assets are classified into the following categories: Financial assets at FVTPL, financial assets at amortized cost and investments in equity instruments at FVTOCI.
i. Financial assets at FVTPL
Financial assets at FVTPL are subsequently measured at fair value, and any dividends or interest earned on such financial assets are recognized in other income and interest income, respectively; any remeasurement gains or losses on such financial assets are recognized in other gains or losses. Fair value is determined in the manner described in Note 32.
ii. Financial assets at amortized cost
Financial assets that meet the following conditions are subsequently measured at amortized cost:
i) The financial assets are held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and
ii) The contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, notes and trade receivables measured at amortized cost (including related parties), other receivables (including related parties), time deposits with original maturities of more than 3 months, pledged time deposits and refundable deposits, are measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.
Interest income is calculated by applying the effective interest rate to the gross carrying amount of such a financial asset, except for:
i) Purchased or originated credit-impaired financial assets, for which interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of such financial assets; and
ii) Financial asset that is not credit impaired on purchase or origination but has subsequently become credit impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost of such financial assets in subsequent reporting periods.
Cash equivalents include time deposits with original maturities within 3 months from the date of acquisition, which are highly liquid, readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These cash equivalents are held for the purpose of meeting short-term cash commitments.
iii. Investments in equity instruments at FVTOCI
On initial recognition, the Company may make an irrevocable election to designate investments in equity instruments as at FVTOCI. Designation as at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.
Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments; instead, it will be transferred to retained earnings.
Dividends on these investments in equity instruments are recognized in profit or loss when the Company's right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment. Fair value is determined in the manner described in Note 32.
b) Impairment of financial assets
The Company recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including trade receivables).
The Company always recognizes lifetime expected credit losses (ECLs) for trade receivables. For all other financial instruments, the Company recognizes lifetime ECLs when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on a financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to 12-month ECLs.
Expected credit losses reflect the weighted average of credit losses with the respective risks of default occurring as the weights. Lifetime ECLs represent the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECLs represent the portion of lifetime ECLs that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.
The impairment loss of all financial assets is recognized in profit or loss by a reduction in their carrying amount through a loss allowance account.
c) Derecognition of financial assets
The Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.
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On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. On derecognition of an investment in an equity instrument at FVTOCI, the cumulative gain or loss which had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss.
2) Equity instruments
Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.
Equity instruments issued by the Company are recognized at the proceeds received, net of direct issue costs.
The repurchase of the Company’s own equity instruments is recognized in and deducted directly from equity. No gain or loss is recognized in profit or loss on the purchase, sale, issuance or cancellation of the Company’s own equity instruments.
3) Financial liabilities
a) Subsequent measurement
All financial liabilities are measured at amortized cost using the effective interest method.
b) Derecognition of financial liabilities
The difference between the carrying amount of a financial liability derecognized and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.
m. Provisions
Provisions are measured at the best estimate of the discounted cash flows of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.
1) Warranties
Provisions for the expected cost of warranty obligations to assure that products comply with agreed-upon specifications are recognized on the date of sale of the relevant products at the best estimate by the management of the Company of the expenditures required to settle the Company’s obligations.
2) Carbon fee provision
In accordance with the Regulations Governing the Collection of Carbon Fees and related regulations of the ROC, the carbon fee provision is recognized and measured on the basis of the best estimate of the expenditure required to settle the obligation for the current year.
n. Revenue recognition
The Company identifies contracts with customers, allocates the transaction price to the performance obligations and recognizes revenue when performance obligations are satisfied. When the customer initially purchases the goods, the transaction price received is recognized as a contract liability until the goods have been delivered to the customer.
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Revenue from the sale of goods
Revenue from the sale of goods comes from sales of network communication equipment. Based on the different trading conditions of the network communication equipment, sales of goods are recognized as revenue when they are delivered to the customer’s specific location and the goods are shipped because it is the time when the customer has full discretion over the manner of distribution and price to sell the goods, has the primary responsibility for sales to future customers and bears the risks of obsolescence.
The Company does not recognize revenue on materials delivered to subcontractors because this delivery does not involve a transfer of control.
o. Leases
At the inception of a contract, the Company assesses whether the contract is, or contains, a lease.
1) The Company as lessor
Leases are classified as finance leases whenever the terms of a lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.
When the Company subleases a right-of-use asset, the sublease is classified by reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. However, if the head lease is a short-term lease that the Company, as a lessee, has accounted for applying recognition exemption, the sublease is classified as an operating lease.
Lease payments from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases.
2) The Company as lessee
The Company recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for short-term leases and low-value asset leases accounted for by applying a recognition exemption where lease payments are recognized as expenses on a straight-line basis over the lease terms.
Right-of-use assets are initially measured at cost. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the balance sheets.
Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.
Lease liabilities are initially measured at the present value of the lease payments, which comprise fixed payments and variable lease payments which depend on an index or a rate. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the lessee’s incremented borrowing rate will be used.
Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term resulting from a change in an index or a rate used to determine those payments, the Company remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate line in the balance sheets.
p. Borrowing costs
Borrowing costs directly attributable to an acquisition, construction or production of qualifying assets are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.
Other than those stated above, all other borrowing costs are recognized in profit or loss in the period in which they are incurred.
q. Government grants
Government grants are not recognized until there is reasonable assurance that the Company will comply with the conditions attached to them and that the grants will be received.
Government grants related to income are recognized in other income on a systematic basis over the periods in which the Company recognizes as expenses the related costs that the grants intend to compensate. Specifically, government grants whose primary condition is that the Company should purchase, construct or otherwise acquire non-current assets are recognized as deferred revenue and transferred to profit or loss on a systematic and rational basis over the useful lives of the related assets.
Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Company with no future related costs are recognized in profit or loss in the period in which they are received.
The benefit of a government loan received at a below-market rate of interest is treated as a government grant measured as the difference between the proceeds received and the fair value of the loan based on prevailing market interest rates.
r. Employee benefits
1) Short-term employee benefits
Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related services.
2) Retirement benefits
Payments to defined contribution retirement benefit plans are recognized as expense when employees have rendered services entitling them to the contributions.
Defined benefit costs (including service cost, net interest and remeasurement) under defined benefit retirement benefit plans are determined using the projected unit credit method. Service cost (including current service cost) and net interest on the net defined benefit liabilities (assets) are recognized as employee benefit expenses in the period in which they occur. Remeasurement, comprising actuarial gains and losses and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which it occurs. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.
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Net defined benefit liabilities (assets) represent the actual deficit (surplus) in the Company’s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.
s. Share-based payment arrangements
The fair value at the grant date of the employee share options is expensed on a straight-line basis over the vesting period, based on the Company’s best estimates of the number of shares or options that are expected to ultimately vest, with a corresponding increase in capital surplus-employee share options. The expense is recognized in full at the grant date if the grants are vested immediately.
At the end of each reporting period, the Company revises its estimate of the number of employee share options that are expected to vest. The impact of the revision of the original estimates is recognized in profit or loss such that the cumulative expenses reflect the revised estimate, with a corresponding adjustment to capital surplus - employee share options.
t. Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
1) Current tax
Income tax payable (recoverable) is based on taxable profit (loss) for the year determined according to the applicable tax laws of each tax jurisdiction.
According to the Income Tax Act in the ROC, an additional tax on unappropriated earnings is provided for in the year the shareholders approve to retain earnings.
Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax provision.
2) Deferred tax
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit.
Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.
Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are recognized only to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and such temporary differences are expected to reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period and recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.
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Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liabilities are settled or the assets are realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
The Company has applied the exception from the recognition and disclosure of deferred tax assets and liabilities relating to Pillar Two income taxes. Accordingly, the Company neither recognizes nor discloses information about deferred tax assets and liabilities related to Pillar Two income taxes.
3) Current and deferred taxes
Current and deferred taxes are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity; in which case, the current and deferred taxes are also recognized in other comprehensive income or directly in equity, respectively.
u. Treasury Shares
Repurchase of the Company’s own equity instruments is recognized in and deducted directly from equity. No gain or loss is recognized in profit or loss on the purchase, sale, issue or cancellation of the Company’s own equity instruments.
The Company records its shares held by its subsidiaries as treasury shares. The recorded costs of treasury shares are based upon the carrying values of the shares as shown in the subsidiaries’ books. The cash dividends received by the subsidiaries from the Company are recorded under capital surplus - treasury shares.
- MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
In the application of the Company’s accounting policies, management is required to make judgments, estimations, and assumptions on the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the year in which the estimates are revised if the revisions affect only the current year or in the year of the revisions and future years if the revisions affect both the current and future years.
Key Sources of Estimation Uncertainty
a. Estimated impairment of financial assets
The provision for impairment of trade receivables is based on assumptions on probability of default and loss given default. The Company uses judgment in making these assumptions and in selecting the inputs to the impairment calculation, based on the Company’s historical experience, existing market conditions as well as forward looking estimates as of the end of each reporting period. For details of the key assumptions and inputs used, see Note 10. Where the actual future cash inflows are less than expected, a material impairment loss may arise.
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b. Write-down of inventories
The net realizable value of inventories is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. The estimation of net realizable value is based on current market conditions and historical experience in the sale of product of a similar nature. Changes in market conditions may have a material impact on the estimation of the net realizable value.
- CASH AND CASH EQUIVALENTS
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Cash on hand | $ 422 | $ 540 |
| Checking accounts and demand deposits | 4,946,286 | 1,444,846 |
| Cash equivalents | ||
| Time deposits with original maturities of less than 3 months | 15,057,188 | 11,094,620 |
| Repurchase agreements collateralized by bonds | 4,117,330 | 1,116,335 |
| $ 24,121,226 | $ 13,656,341 |
The market rate intervals of cash in bank and bank overdrafts at the end of the reporting period were as follows:
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Bank balance | 0.000%-4.100% | 0.002%-4.870% |
| Repurchase agreements collateralized by bonds | 3.950%-4.030% | 1.000%-4.830% |
Cash and cash equivalents are assessed for impairment. The Company considers its cash and cash equivalents as low credit risk; thus, no allowance for impairment loss was recognized.
- FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Financial assets at FVTPL - current | ||
| Financial assets mandatorily classified as at FVTPL | ||
| Mutual funds | $ 3,455,507 | $ 743,036 |
| Structured products | 46,883 | - |
| $ 3,502,390 | $ 743,036 | |
| Financial assets at FVTPL - non-current | ||
| Financial assets mandatorily classified as at FVTPL | ||
| Simple agreement for future equity | $ 155,320 | $ 97,815 |
| Domestic and foreign unlisted shares | 3,628 | 144,551 |
| $ 158,948 | $ 242,366 |
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8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Current | ||
| Domestic and foreign investments | ||
| Listed shares and emerging market shares | $ 426,284 | $ 140,143 |
| Non-current | ||
| Foreign investments | ||
| Unlisted shares | $ 782,408 | $ 451,381 |
The Company holds listed (unlisted) shares and emerging market shares of domestic and foreign for strategic purposes and expects to profit from the investment. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI as they believe that recognizing short-term fluctuations in these investments' fair value in profit or loss would not be consistent with the Company's strategy of holding these investments is for primary purposes.
9. FINANCIAL ASSETS AT AMORTIZED COST
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Current | ||
| Time deposits with original maturity of more than 3 months (a) | $ 19,038,750 | $ 5,786,405 |
| Government bonds/Agency bonds (c) | 63,979 | - |
| Corporate bonds (b) | 63,806 | - |
| $ 19,166,535 | $ 5,786,405 | |
| Non-current | ||
| Corporate bonds (b) | $ 684,213 | $ 925,725 |
| Government bonds/Agency bonds (c) | 230,607 | 293,420 |
| $ 914,820 | $ 1,219,145 |
a. The ranges of interest rates for time deposits with original maturities of more than 3 months were 1.590%-4.270% and 0.685%-5.420% per annum as of December 31, 2025 and 2024, respectively.
b. In 2024, the Company bought 1.98-10 year corporate bonds issued at face values of $500-$3,000 thousand, with a coupon rates of 3.125%-5.500% and an effective interest rates of 4.492%-5.500%.
c. In 2024, the Company bought 3-10 year government bonds at face values of $1,000-$1,300 thousand, with a coupon rates of 3.125%-4.625% and an effective interest rates of 4.112%-4.642%.
Financial assets at amortized cost were assessed for impairment. The Company considered its financial assets at amortized cost as low credit risk; thus, no allowance for impairment loss was recognized. For information on credit risk management and impairment assessment related to financial assets at amortized cost, please refer to Note 32.
10. TRADE RECEIVABLES AND OTHER RECEIVABLES
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Notes receivables | ||
| Notes receivable-operating | $ - | $ 118 |
| Trade receivables | ||
| At amortized cost | ||
| Gross carrying amount | $ 30,045,917 | $ 16,406,251 |
| Less: Allowance for impairment loss | (1,525) | (1,525) |
| $ 30,044,392 | $ 16,404,726 | |
| Other receivables | ||
| At amortized cost | ||
| Gross carrying amount | $ 607,450 | $ 913,137 |
| Less: Allowance for impairment loss | (950) | (3,046) |
| Other receivables, net | $ 606,500 | $ 910,091 |
a. Trade receivables
The average credit period of sales of goods is 30 days, and some customers have credit period of 45 to 90 days after the end of the month. No interest is charged on trade receivables. The Company adopted a policy to obtain sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Company uses other publicly available financial information and its own historical transaction records to rate its major customers.
The Company measures the loss allowance for trade receivables at an amount equal to lifetime ECLs. The expected credit losses on trade receivables are estimated using a provision matrix approach considering the past default experience of the customer, the customer's current financial position, as well as the economic condition of the industry in which the customer operates. The Company's historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Company's different customer base. The Company estimates expected credit losses based on the number of days for which receivables are past due.
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The Company writes off a trade receivable when there is evidence indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, e.g., when the debtor has been placed under liquidation. For trade receivables that have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.
The following table details the loss allowance of trade receivables based on the Company’s provision matrix.
December 31, 2025
| Not Past Due | 1 to 60 Days Past Due | 61 to 180 Days Past Due | Over 180 Days Past Due | Total | |
|---|---|---|---|---|---|
| Gross carrying amount | $ 29,812,752 | $ 232,964 | $ - | $ 201 | $ 30,045,917 |
| Loss allowance (Lifetime ECLs) | - | (1,324) | - | (201) | (1,525) |
| Amortized cost | $ 29,812,752 | $ 231,640 | $ - | $ - | $ 30,044,392 |
December 31, 2024
| Not Past Due | 1 to 60 Days Past Due | 61 to 180 Days Past Due | Over 180 Days Past Due | Total | |
|---|---|---|---|---|---|
| Gross carrying amount | $ 15,952,016 | $ 454,235 | $ - | $ - | $ 16,406,251 |
| Loss allowance (Lifetime ECLs) | - | (1,525) | - | - | (1,525) |
| Amortized cost | $ 15,952,016 | $ 452,710 | $ - | $ - | $ 16,404,726 |
The movements of the loss allowance of trade receivables were as follows:
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Balance on January 1 and December 31 | $ 1,525 | $ 1,525 |
b. Other receivables
The average credit period of sales of goods is 30 days, and some customers have credit period of 30 to 45 days after the end of the month. No interest is charged on other receivables. The Company adopted a policy to obtain sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults.
The movements of the loss allowance of other receivables were as follows:
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Balance on January 1 | $ 3,046 | $ 3,046 |
| Add: Amounts reversed | (2,096) | - |
| Balance on December 31 | $ 950 | $ 3,046 |
As of December 31, 2025 and 2024, the amount of allowance losses did not include individual impairment of other receivables that were subject to risk control due to tight cash flow from customers.
11. INVENTORIES
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Merchandise | $ 1,507,903 | $ 1,052,350 |
| Finished goods | 5,931,557 | 4,150,199 |
| Work in progress | 2,378,667 | 1,369,148 |
| Raw materials | 13,073,119 | 7,085,447 |
| $ 22,891,246 | $ 13,657,144 |
The cost of inventories recognized as cost of goods sold for the years ended December 31, 2025 and 2024 was $204,659,266 thousand and $83,796,380 thousand, respectively. The cost of inventories recognized as cost of goods sold for the years ended December 31, 2025 and 2024 consisted a write-down of inventories recognized $480,259 thousand and write-down of inventories reversed $7,470 thousand, respectively.
12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD
a. Investments in subsidiaries
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Accton Investment Corp. | $ 4,980,618 | $ 4,173,741 |
| Edgecore Networks Corp. | 1,652,560 | 1,955,322 |
| Accton Century Holding (BVI) Co., Ltd. | 996,293 | 2,121,625 |
| Vietnam Accton Technology Co., Ltd. | 905,480 | 265,013 |
| InLC Technology Inc. | 466,682 | 547,953 |
| Accton Manufacturing and Service, Inc. | 359,247 | 80,860 |
| Accton Technology Corp. USA | 205,854 | 209,311 |
| Accton Logistics Corp. | 132,226 | 134,136 |
| Nurvia Tech FZ-LLC | 69,363 | - |
| GoldiLink Technology Corp. | 40,211 | - |
| E-Direct Corp. | 39,652 | 59,068 |
| Accton Technology (China) Co., Ltd. | - | 177,556 |
| ACCE Technology Corp. | - | 43,853 |
| Metalligence Technology Corp. | - | (1,355) |
| Accton Global, Inc. | (637,511) | (376,224) |
| 9,210,675 | 9,390,859 | |
| Add: Receivables from related parties | 637,511 | 376,224 |
| Add: Other receivables from related parties | - | 1,355 |
| $ 9,848,186 | $ 9,768,438 |
On the date of balance sheet, the percentage of the Company’s ownership and voting rights to the subsidiaries as follow:
| Name of Subsidiary | Proportion of Ownership and Voting Rights | |
|---|---|---|
| December 31 | ||
| 2025 | 2024 | |
| Accton Century Holding (BVI) Co., Ltd. | 100% | 100% |
| Edgecore Networks Corp. | 100% | 100% |
| Vietnam Accton Technology Co., Ltd | 100% | 100% |
| Accton Investment Corp. | 100% | 100% |
| Accton Technology Corp. USA | 100% | 100% |
| Accton Logistics Corp. | 100% | 100% |
| Accton Technology (China) Co., Ltd. | - | 100% |
| E-Direct Corp. | 100% | 100% |
| Accton Manufacturing and Service, Inc. | 100% | 100% |
| Metalligence Technology Corp. | - | 100% |
| Accton Global, Inc. | 100% | 100% |
| ACCE Technology Corp. | - | 100% |
| InLC Technology Inc. | 82.99% | 75.42% |
| GoldiLink Technology Corp. | 100% | - |
| Nurvia Tech FZ-LLC | 100% | - |
In September 2025, Accton Technology (China) Co., Ltd. completed its liquidation procedures.
In March 2025, Metalligence Technology Corp. completed its liquidation procedures.
In September 2025, for organizational structuring, the Company acquired 100% of GoldiLink shares that were held by ACCE. In December 2025, ACCE Technology Corp. completed its liquidation procedures.
In December 2024, the Company acquired 75.42% of InLC Technology Inc. shares. In January 2025, the Company participated in a capital increase by subscribing to 100% of the newly issued shares, resulting in an increase in its ownership interest from 75.42% to 82.99%, please refer to Notes 29.
In October 2025, Nurvia Tech fz-llc completed its capital injection.
When the Company’s share of losses from investments in subsidiaries accounted for under the equity method exceeds its equity in those subsidiaries, the Company continues to recognize its proportionate share of such losses based on its ownership percentage. This treatment applies to Accton Global, Inc. for 2025, and to Accton Global, Inc. and Metalligence Technology Corp. for 2024. As of December 31, 2025 and 2024, the investment credits using the equity method, which were transferred to accounts receivables from related parties and other receivables from related parties reduction, were $637,511 thousand and $377,579 thousand, respectively.
On its investments accounted for using the equity method, the Company’s share of profit and loss and other comprehensive income (loss) for the years ended December 31, 2025 and 2024 were calculated based on the financial statements of the investee companies which had been audited.
b. Investments in associates
Oenix Biomed Co., Ltd.
| December 31 | |
|---|---|
| 2025 | 2024 |
| $ 7,081 | $ 7,062 |
On the date of balance sheet, the percentages of the Company's ownership and voting rights to the associates were as follows:
| Name of Associate | Proportion of Ownership and Voting Rights | |
|---|---|---|
| December 31 | ||
| 2025 | 2024 | |
| Oenix Biomed Co., Ltd. | 40% | 40% |
| CheerLife Technology Corp. | 20% | 20% |
13. PROPERTY, PLANT AND EQUIPMENT
Assets used by the Company
| Buildings | Machinery and Equipment | Molding Equipment | Testing Equipment | Transportation Equipment | Office Equipment | Leasehold Improvements | Other Equipment | Construction in Progress | Total | |
|---|---|---|---|---|---|---|---|---|---|---|
| Cost | ||||||||||
| Balance on January 1, 2025 | $ 2,785,377 | $ 1,609,017 | $ 643,316 | $ 761,213 | $ 33,140 | $ 243,945 | $ 314,361 | $ 178,954 | $ 466,323 | $ 7,035,646 |
| Additions | 120,413 | 1,407,238 | 750,431 | 268,770 | 1,550 | 64,766 | 36,389 | 215,591 | 515,688 | 3,380,836 |
| Reductions | (2,079) | (39,009) | (84,410) | (10,058) | (2,447) | (13,509) | (25,258) | (2,191) | - | (178,061) |
| Reclassifications | 499,176 | - | - | - | - | - | - | 481 | (899,657) | - |
| Balance on December 31, 2025 | $ 3,802,887 | $ 2,977,246 | $ 1,309,337 | $ 1,019,925 | $ 32,243 | $ 295,202 | $ 325,492 | $ 392,835 | $ 82,354 | $ 10,237,521 |
| Accumulated depreciation | ||||||||||
| Balance on January 1, 2025 | $ 335,903 | $ 856,267 | $ 407,499 | $ 536,425 | $ 29,785 | $ 149,689 | $ 252,771 | $ 107,636 | $ - | $ 2,675,975 |
| Additions | 99,793 | 365,434 | 169,218 | 92,555 | 1,955 | 43,827 | 28,853 | 35,675 | - | 837,310 |
| Reductions | (2,079) | (29,295) | (39,230) | (9,489) | (2,447) | (13,461) | (25,258) | (2,191) | - | (123,450) |
| Balance on December 31, 2025 | $ 433,617 | $ 1,192,406 | $ 537,487 | $ 619,491 | $ 29,293 | $ 180,055 | $ 256,366 | $ 141,120 | $ - | $ 3,389,835 |
| Carrying amount at December 31, 2025 | $ 3,369,270 | $ 1,784,840 | $ 771,850 | $ 400,434 | $ 2,950 | $ 115,147 | $ 69,126 | $ 251,715 | $ 82,354 | $ 6,847,686 |
| Cost | ||||||||||
| Balance on January 1, 2024 | $ 408,702 | $ 1,138,173 | $ 506,826 | $ 615,457 | $ 33,574 | $ 175,935 | $ 299,168 | $ 135,113 | $ 1,592,280 | $ 4,905,228 |
| Additions | 35,213 | 578,473 | 156,979 | 152,737 | 1,923 | 75,307 | 38,603 | 57,328 | 1,215,667 | 2,312,230 |
| Reductions | (162) | (107,629) | (20,489) | (6,901) | (2,357) | (7,297) | (23,410) | (13,487) | - | (181,812) |
| Reclassifications | 2,341,624 | - | - | - | - | - | - | - | (2,341,624) | - |
| Balance on December 31, 2024 | $ 2,785,377 | $ 1,609,017 | $ 643,316 | $ 761,213 | $ 33,140 | $ 243,945 | $ 314,361 | $ 178,954 | $ 466,323 | $ 7,035,646 |
| Accumulated depreciation | ||||||||||
| Balance on January 1, 2024 | $ 298,510 | $ 768,965 | $ 331,330 | $ 483,430 | $ 29,737 | $ 129,497 | $ 243,269 | $ 104,169 | $ - | $ 2,388,907 |
| Additions | 37,553 | 179,358 | 91,709 | 59,587 | 2,184 | 27,399 | 32,912 | 16,368 | - | 449,072 |
| Reductions | (162) | (92,056) | (17,540) | (6,592) | (2,136) | (7,207) | (23,410) | (12,901) | - | (162,004) |
| Balance on December 31, 2024 | $ 335,903 | $ 856,267 | $ 407,499 | $ 536,425 | $ 29,785 | $ 149,689 | $ 252,771 | $ 107,636 | $ - | $ 2,675,975 |
| Carrying amount at December 31, 2024 | $ 2,449,474 | $ 752,750 | $ 235,817 | $ 224,788 | $ 3,355 | $ 94,256 | $ 61,590 | $ 71,318 | $ 466,323 | $ 4,359,671 |
The above items of property, plant and equipment used by the Company are depreciated on a straight-line basis over the estimated useful lives as follows:
| Buildings | 2-56 years |
|---|---|
| Machinery and equipment | 2-8 years |
| Molding equipment | 1-5 years |
| Testing equipment | 1-8 years |
| Transportation equipment | 5-10 years |
| Office equipment | 1-8 years |
| Leasehold improvements | 1-10 years |
| Other equipment | 2-8 years |
The buildings held by the Company, which consisted of main buildings and electric equipment and construction, are depreciated over their estimated useful lives of 56 years and 9 to 22 years, respectively, using the straight-line method.
The above items of property, plant and equipment were not used as collateral.
14. LEASE ARRANGEMENTS
a. Right-of-use assets
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Carrying amount | ||
| Land | $ 1,023,633 | $ 1,058,737 |
| Buildings | 1,277,880 | 703,560 |
| Transportation equipment | 2,942 | 2,081 |
| $ 2,304,455 | $ 1,764,378 | |
| For the Year Ended December 31 | ||
| 2025 | 2024 | |
| Additions to right-of-use assets | $ 889,222 | $ 733,412 |
| Depreciation charge for right-of-use assets | ||
| Land | $ 30,313 | $ 30,414 |
| Buildings | 271,063 | 196,460 |
| Transportation equipment | 2,418 | 2,436 |
| $ 303,794 | $ 229,310 |
b. Lease liabilities
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Carrying amount | ||
| Current | $ 293,386 | $ 140,956 |
| Non-current | $ 1,903,913 | $ 1,474,976 |
Range of discount rates for lease liabilities was as follows:
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Land | 2.37%-2.80% | 2.37%-2.80% |
| Buildings | 1.66%-2.75% | 1.67%-2.75% |
| Transportation equipment | 1.83%-2.68% | 2.14%-2.77% |
c. Material lease - in activities and terms
The Company leases land and buildings for the use of plants and offices with lease terms of 5 to 40 years. The lease contract for land located in Republic of China specifies that lease payments will be adjusted on the basis of changes in announced land value prices. The Company does not have bargain purchase options to acquire the leasehold land and buildings at the end of the lease terms.
d. Other lease information
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Expenses relating to short-term leases | $ 63,290 | $ 32,624 |
| Total cash outflow for leases | $ 372,016 | $ 233,649 |
The Company's leases of certain office equipment and other assets which qualify as short-term leases. Thus, the Company elected to apply the recognition exemption and did not recognize these leases as right-of-use assets and lease liabilities.
- INTANGIBLE ASSETS
| Technology License Fees | Computer Software | Total | |
|---|---|---|---|
| Cost | |||
| Balance on January 1, 2025 | $ 1,680 | $ 291,543 | $ 293,223 |
| Additions | - | 97,481 | 97,481 |
| Reductions | (630) | (46,807) | (47,437) |
| Balance on December 31, 2025 | $ 1,050 | $ 342,217 | $ 343,267 |
| Accumulated amortization | |||
| Balance on January 1, 2025 | $ 1,240 | $ 117,183 | $ 118,423 |
| Additions | 303 | 71,127 | 71,430 |
| Reductions | (630) | (46,807) | (47,437) |
| Balance on December 31, 2025 | $ 913 | $ 141,503 | $ 142,416 |
| Carrying amount at December 31, 2025 | $ 137 | $ 200,714 | $ 200,851 |
| Cost | |||
| Balance on January 1, 2024 | $ 1,680 | $ 240,954 | $ 242,634 |
| Additions | - | 99,984 | 99,984 |
| Reductions | - | (49,395) | (49,395) |
| Balance on December 31, 2024 | $ 1,680 | $ 291,543 | $ 293,223 |
| Accumulated amortization | |||
| Balance on January 1, 2024 | $ 797 | $ 107,797 | $ 108,594 |
| Additions | 443 | 58,781 | 59,224 |
| Reductions | - | (49,395) | (49,395) |
| Balance on December 31, 2024 | $ 1,240 | $ 117,183 | $ 118,423 |
| Carrying amount at December 31, 2024 | $ 440 | $ 174,360 | $ 174,800 |
The above items of intangible assets are amortized on a straight-line basis over the estimated useful lives as follows:
Technology license fees 3-5 years
Computer software 1-6 years
The above items of intangible assets were not used as collateral.
16. PREPAYMENTS AND OTHER ASSETS
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Current | ||
| Prepayments | ||
| Excess VAT paid | $ 307,305 | $ 273,167 |
| Prepayments for software maintenance fees | 166,453 | 65,418 |
| Prepayments for purchases | 62,535 | 84,711 |
| Others | 93,123 | 70,056 |
| $ 629,416 | $ 493,352 | |
| Other assets | ||
| Temporary payments | $ 40,943 | $ 7,235 |
| Non-current | ||
| Other financial assets | ||
| Pledged time deposits (Note 34) | $ 72,263 | $ 72,242 |
| Other assets | ||
| Prepayments for software maintenance fees | $ 28,235 | $ 19,910 |
| Prepaid expenses | 14,071 | 1,606 |
| $ 42,306 | $ 21,516 |
17. BORROWINGS
Long-term borrowings
The borrowings of the Company are as follows:
| Maturity Date | Significant Covenant | December 31 | ||
|---|---|---|---|---|
| 2025 | 2024 | |||
| Unsecured credit borrowings | 2026.06.15 | From June 2022, there are 49 monthly payments of principal and interest. | $ 124,357 | $ 367,721 |
| Unsecured credit borrowings | 2026.04.15 | From June 2022, there are 47 monthly payments of principal and interest. | 18,553 | 74,213 |
| Unsecured credit borrowings | 2030.02.26 | From February 2026, the 1st to 16th quarterly payments are 4% of the principal, and the 17th quarterly payments are 36% of the principal. | 100,000 | 100,000 |
| Long-term borrowings | 242,910 | 541,934 | ||
| Less: Current portion | (158,910) | (300,558) | ||
| $ 84,000 | $ 241,376 |
The intervals of effective borrowing rates as of December 31, 2025 and 2024 were 0.725%-2.175% and 0.725%-2.336%, respectively.
The loan agreements require the maintenance of a current ratio, debt ratio, and interest coverage ratio based on the Company's annual and quarterly consolidated financial statements. For the years ended December 31, 2025 and 2024, the Company had met the financial ratio covenants.
18. OTHER LIABILITIES
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Current | ||
| Other payables | ||
| Temporary receipts from customers | $ 1,568,501 | $ 2,911,176 |
| Payable for salaries and bonuses | 525,232 | 472,278 |
| Temporary credit and agency receipt | 149,105 | 89,519 |
| Payable for insurance | 98,885 | 69,826 |
| Payable for service | 35,685 | 43,175 |
| Payable for import/export | 41,965 | 29,445 |
| Others | 1,962,769 | 1,426,493 |
| $ 4,382,142 | $ 5,041,912 |
19. PROVISIONS
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Current | ||
| Warranties | $ 228,303 | $ 186,816 |
| Warranties | ||
| In 2025 | ||
| Balance on January 1, 2025 | $ 186,816 | |
| Additional provisions recognized | 242,303 | |
| Amount used | (200,816) | |
| Balance on December 31, 2025 | $ 228,303 | |
| In 2024 | ||
| Balance on January 1, 2024 | $ 257,467 | |
| Additional provisions recognized | 119,556 | |
| Amount used | (190,207) | |
| Balance on December 31, 2024 | $ 186,816 |
The provision for warranty claims represents the present value of management’s best estimate of the future outflow of economic benefits that will be required under the Company’s obligations for warranties and under local sale of goods legislation. The estimate has been made on the basis of historical warranty trends and may vary as a result of new materials, altered manufacturing processes or other events affecting product quality.
20. RETIREMENT BENEFIT PLANS
a. Defined contribution plans
The Company adopted a pension plan under the Labor Pension Act (LPA), which is a state-managed defined contribution plan. Under the LPA, the Company makes monthly contributions to employees’ individual pension accounts at 6% of monthly salaries and wages.
b. Defined benefit plans
The defined benefit plans adopted by the Company in accordance with the Labor Standards Act is operated by the government of the ROC. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the 6 months before retirement. The Company contributes amounts equal to 2% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee’s name. Before the end of each year, the Company assesses the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Company is required to fund the difference in one appropriation that should be made before the end of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (the “Bureau”); the Company has no right to influence the investment policy and strategy.
The Company’s defined benefit plan amounts included in the balance sheets were as follows:
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Present value of defined benefit obligation | $ 306,072 | $ 266,741 |
| Fair value of plan assets | (286,971) | (275,170) |
| Net defined benefit liabilities (assets) | $ 19,101 | $ (8,429) |
Movements in net defined benefit assets/liabilities were as follows:
| Present Value of the Defined Benefit Obligation | Fair Value of the Plan Assets | Net Defined Benefit Liabilities (Assets) | |
|---|---|---|---|
| Balance on January 1, 2025 | $ 266,741 | $ (275,170) | $ (8,429) |
| Service cost | |||
| Current service cost | 1,490 | - | 1,490 |
| Net interest expense (income) | 4,268 | (4,421) | (153) |
| Recognized in profit or loss | 5,758 | (4,421) | 1,337 |
| (Continued) |
- 36 -
| Present Value of the Defined Benefit Obligation | Fair Value of the Plan Assets | Net Defined Benefit Liabilities (Assets) | |
|---|---|---|---|
| Remeasurement | |||
| Return on plan assets (excluding amounts included in net interest) | $ - | $ (19,806) | $ (19,806) |
| Actuarial loss - experience adjustments | 48,931 | - | 48,931 |
| Recognized in other comprehensive income | 48,931 | (19,806) | 29,125 |
| Contributions from the employer | - | (2,932) | (2,932) |
| Benefits paid | (15,358) | 15,358 | - |
| Balance on December 31, 2025 | $ 306,072 | $ (286,971) | $ 19,101 |
| Balance on January 1, 2024 | $ 283,790 | $ (266,256) | $ 17,534 |
| Service cost | |||
| Current service cost | 1,003 | - | 1,003 |
| Net interest expense (income) | 3,547 | (3,346) | 201 |
| Recognized in profit or loss | 4,550 | (3,346) | 1,204 |
| Remeasurement | |||
| Return on plan assets (excluding amounts included in net interest) | - | (24,099) | (24,099) |
| Actuarial gain - experience adjustments | (748) | - | (748) |
| Recognized in other comprehensive income | (748) | (24,099) | (24,847) |
| Contributions from the employer | - | (2,320) | (2,320) |
| Benefits paid | (20,851) | 20,851 | - |
| Balance on December 31, 2024 | $ 266,741 | $ (275,170) | $ (8,429) (Concluded) |
An analysis by function of the amounts recognized in profit or loss in respect of the defined benefit plans is as follows:
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Operating costs | $ 81 | $ 74 |
| Selling and marketing expenses | 89 | 114 |
| General and administrative expenses | 497 | 444 |
| Research and development expenses | 670 | 572 |
| $ 1,337 | $ 1,204 |
Through the defined benefit plans under the Labor Standards Act, the Company is exposed to the following risks:
1) Investment risk: The plan assets are invested in domestic and foreign equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the Bureau or under the mandated management. However, in accordance with relevant regulations, the return generated by plan assets shall not be below the interest rate for a 2-year time deposit with local banks.
2) Interest risk: A decrease in the government bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plans' debt investments.
3) Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salaries of the plan participants will increase the present value of the defined benefit obligation.
The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The significant assumptions used for the purposes of the actuarial valuations were as follows:
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Discount rates | 1.40% | 1.60% |
| Expected rates of salary increase | 4.00% | 4.00% |
If possible reasonable changes in each of the significant actuarial assumptions occur and all other assumptions remain constant, the present value of the defined benefit obligation will increase (decrease) as follows:
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Discount rates | ||
| 0.25% increase | $ (6,725) | $ (4,703) |
| 0.25% decrease | $ 7,021 | $ 4,849 |
| Expected rates of salary increase | ||
| 1.00% increase | $ 28,916 | $ 19,638 |
| 1.00% decrease | $ (24,920) | $ (17,753) |
The sensitivity analysis presented above may not be representative of the actual change in the present value of the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Expected contributions to the plans for the next year | $ 2,932 | $ 2,320 |
| Average duration of the defined benefit obligation | 9.7 years | 9.4 years |
21. EQUITY
a. Ordinary shares
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Authorized shares (in thousands) | 880,000 | 880,000 |
| Authorized capital | $ 8,800,000 | $ 8,800,000 |
| Issued and fully paid shares (in thousands) | 561,118 | 561,118 |
| Issued capital | $ 5,611,179 | $ 5,611,179 |
A holder of issued ordinary shares with par value of NT$10 is entitled to vote and to receive dividends.
The authorized shares include 87,000 thousand shares allocated for the exercise of employee share options.
b. Capital surplus
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (1) | ||
| Issuance ordinary shares | $ 540,492 | $ 540,492 |
| Treasury share transactions | 146,364 | 122,056 |
| Employee share options | 228,216 | 228,216 |
| May only be used to offset a deficit | ||
| Changes in percentage of ownership interests in subsidiaries (2) | - | 8,113 |
| $ 915,072 | $ 898,877 |
1) Such capital surplus may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Company’s capital surplus and to once a year).
2) Such capital surplus arises from the effects of changes in ownership interests in subsidiaries resulted from equity transactions other than actual disposals or acquisitions, or from changes in capital surplus of subsidiaries accounted for using the equity method.
A reconciliation of the carrying amounts at the beginning and at the end of December 31, 2025 and 2024, for each class of capital surplus was as follows:
| Premium on Issuance of Shares | Treasury Shares | Employee Share Options | Change in Percentage of Ownership Interests in Subsidiaries | Employee Share Options - May not be Used for Any Purpose | |
|---|---|---|---|---|---|
| Balance on January 1, 2025 | $ 540,492 | $ 122,056 | $ 228,216 | $ 8,113 | $ - |
| Cash dividends received by subsidiaries from parent company | - | 24,308 | - | - | - |
| Non-proportional recognition of subsidiary | - | - | - | (8,113) | - |
| Balance on December 31, 2025 | $ 540,492 | $ 146,364 | $ 228,216 | $ - | $ - |
| Balance on January 1, 2024 | $ 538,458 | $ 99,967 | $ 222,048 | $ 8,113 | $ 6,168 |
| Employee share options exercised | 2,034 | - | 3,731 | - | (3,731) |
| Employee share options expired | - | - | 2,437 | - | (2,437) |
| Cash dividends received by subsidiaries from parent company | - | 22,089 | - | - | - |
| Balance on December 31, 2024 | $ 540,492 | $ 122,056 | $ 228,216 | $ 8,113 | $ - |
c. Retained earnings and dividends policy
Under the dividends policy as set forth in the Articles, where the Company made a profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as
legal reserve 10% of the remaining profit, setting aside or reversing a special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Company’s board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for the distribution of dividends and bonuses to shareholders. For the policies on the distribution of compensation of employees and remuneration of directors after the amendment, refer to compensation of employees and remuneration of directors in Note 23-7.
The Company’s Articles stipulate that the dividend policy must comply with present and future development plans and take investment environment, demand of funds, domestic and foreign competition, and shareholders’ interests into consideration. The shareholders’ compensation can be appropriated by way of cash dividends or share dividends, with provision that the percentage of cash dividends must exceed 50% of total dividends.
An appropriation of earnings to a legal reserve shall be made until the legal reserve equals the Company’s paid-in capital. The legal reserve may be used to offset deficit. If the Company has no deficit and the legal reserve has exceeded 25% of the Company’s paid-in capital, the excess may be transferred to capital or distributed in cash.
When a special reserve is appropriated for cumulative net debit balance reserves from prior period, the special reserve is only appropriated from the prior unappropriated earnings.
The appropriations of earnings for 2024 and 2023, which were approved in the shareholders’ meetings on June 12, 2025 and June 13, 2024, respectively, were as follows:
| Appropriation of Earnings | Dividends Per Share (NT$) | |||
|---|---|---|---|---|
| For Year 2024 | For Year 2023 | For Year 2024 | For Year 2023 | |
| Legal reserve | $ 1,337,644 | $ 891,765 | ||
| Reversal of special reserve | (438,274) | (23,742) | ||
| Cash dividends | 6,172,297 | 5,603,834 | $ 11 | $ 9.9956 |
The appropriations of earnings for 2025 were proposed by the Company’s board of directors on March 12, 2026. The appropriations and dividends per share were as follows:
| Appropriation of Earnings | Dividends Per Share (NT$) | |
|---|---|---|
| Legal reserve | $ 2,641,460 | |
| Cash dividends | 8,416,768 | $ 15 |
The appropriations of earnings for 2025 are subject to the resolution of the shareholders’ meeting to be held on June 11, 2026.
d. Special reserves
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Balance on January 1 | $ 438,274 | $ 462,016 |
| Reversal of in respect of Debits to other equity items | (438,274) | (23,742) |
| Balance on December 31 | $ - | $ 438,274 |
e. Other equity items
1) Exchange differences on the translation of the financial statements of foreign operations
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Balance on January 1 | $ (186,212) | $ (465,594) |
| Recognized for the year | ||
| Exchange differences on the translation of the financial statements of foreign operations | 177,489 | 279,382 |
| Balance on December 31 | $ (8,723) | $ (186,212) |
2) Unrealized valuation gain (loss) on financial assets at FVTOCI
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Balance on January 1 | $ 3,082,365 | $ 27,320 |
| Recognized for the year | ||
| Unrealized gain - equity instruments | 896,275 | 4,406,967 |
| Cumulative unrealized gain of equity instruments transferred to retained earnings due to disposal | (102,016) | (1,351,922) |
| Balance on December 31 | $ 3,876,624 | $ 3,082,365 |
f. Treasury shares
The Company’s shares held by its subsidiaries on the balance sheet date were as follows:
| Nambe of Subsidiary | Number of Shares Held (In Thousands of Shares) | Carrying Amount | Market Value |
|---|---|---|---|
| December 31, 2025 | |||
| Accton Investment | 2,210 | $ 50,999 | $ 2,618,692 |
| December 31, 2024 | |||
| Accton Investment | 2,210 | $ 50,999 | $ 1,708,227 |
Under the Securities and Exchange Act, the Company shall neither pledge treasury shares nor exercise shareholders’ rights on these shares, such as the rights to dividends and to vote. The subsidiaries holding treasury shares, however, are bestowed shareholders’ rights, except the rights to participate in any share issuance for cash and to vote.
- REVENUE
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Revenue from the sale of goods | $ 246,888,773 | $ 103,703,241 |
a. Contract information
Revenue from the sale of goods comes from sales of network communication equipment. Based on the different trading conditions of the network communication equipment, sales of goods are recognized as revenue when they are delivered to the customer’s specific location and the goods are shipped because it is the time when the customer has full discretion over the manner of distribution and price to sell the goods, has the primary responsibility for sales to future customers and bears the risks of obsolescence. When the customer initially purchases the goods, the transaction price received is recognized as a contract liability until the goods have been delivered to the customer.
The Company recognized the estimated possible sales return and discount of the refundable liabilities. As of December 31, 2025 and 2024, for information on the refund liability which amounted to $64,054 thousand and $40,425 thousand, respectively.
b. Contract balances
| December 31, 2025 | December 31, 2024 | January 1, 2024 | |
|---|---|---|---|
| Trade receivables (Note 10) | $ 30,044,392 | $ 16,404,726 | $ 7,637,716 |
| Contract liabilities - current | |||
| Sale of goods | $ 6,467,817 | $ 6,658,199 | $ 6,197,366 |
As of December 31, 2025 and 2024, the sales of goods from contract liabilities amounted to $1,183,044 thousand and $1,810,151 thousand, respectively.
c. Disaggregation of revenue
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Product | ||
| Network application | $ 152,890,159 | $ 39,001,479 |
| Switch | 85,352,448 | 56,416,574 |
| Metro access switch | 3,117,301 | 4,663,295 |
| Wireless | 622,680 | 387,631 |
| Others | 4,906,185 | 3,234,262 |
| $ 246,888,773 | $ 103,703,241 | |
| Location | ||
| America | $ 203,023,143 | $ 81,914,348 |
| Taiwan (location of the Company) | 20,673,510 | 4,506,070 |
| Europe | 17,417,020 | 11,730,524 |
| Asia | 5,747,452 | 5,552,120 |
| Others | 27,648 | 179 |
| $ 246,888,773 | $ 103,703,241 |
- 42 -
23. NET PROFIT
Net profit attributable to:
a. Interest income
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Bank deposits | $ 910,779 | $ 672,808 |
| Financial assets at amortized cost | 61,082 | 36,297 |
| Others | 605 | 308 |
| $ 972,466 | $ 709,413 |
b. Other income
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Dividends | $ 9,700 | $ 16,870 |
| Grant income (Note 27) | 24,619 | 8,096 |
| Others | 106,565 | 107,846 |
| $ 140,884 | $ 132,812 |
c. Other gains and losses
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Net foreign exchange gains | $ 144,716 | $ 679,737 |
| Net gain (loss) on fair value changes of financial assets | ||
| Financial assets mandatorily classified as at FVTPL | 109,200 | (41,998) |
| Derecognition of financial assets at amortized cost | 45 | - |
| Others | 108 | (18,265) |
| $ 254,069 | $ 619,474 |
d. Finance costs
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Interest on lease liabilities | $ 46,330 | $ 31,441 |
| Interest on bank loans | 7,068 | 9,910 |
| Less: Amounts included in the cost of qualifying assets | - | (552) |
| $ 53,398 | $ 40,799 |
Information on capitalized interest is as follows:
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Capitalized interest amount | $ - | $ 552 |
| Capitalization rate | - | 2.184%-2.310% |
e. Depreciation and amortization
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| An analysis of depreciation by function | ||
| Operating costs | $ 639,559 | $ 353,051 |
| Operating expenses | 501,545 | 325,331 |
| $ 1,141,104 | $ 678,382 | |
| An analysis of amortization by function | ||
| Operating costs | $ 4,085 | $ 6,914 |
| Operating expenses | 67,345 | 52,310 |
| $ 71,430 | $ 59,224 |
f. Employee benefits expense
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Short-term benefits | $ 9,803,450 | $ 5,901,206 |
| Post-employment benefits (Note 20) | ||
| Defined contribution plan | 170,018 | 134,740 |
| Defined benefit plans | 1,337 | 1,204 |
| Total employee benefits expense | $ 9,974,805 | $ 6,037,150 |
| An analysis of employee benefits expense by function | ||
| Operating costs | $ 2,157,452 | $ 1,371,787 |
| Operating expenses | 7,817,353 | 4,665,363 |
| $ 9,974,805 | $ 6,037,150 |
g. Compensation of employees and remuneration of directors
According to the Company's Articles, the Company accrued compensation of employees and remuneration of directors at rates of no less than 1%-11.25% and no higher than 1.5%, respectively, of net profit before income tax, compensation of employees, and remuneration of directors. Pursuant to the amendment to the Securities and Exchange Act in August 2024, the amendment to the Articles was approved at the 2025 annual shareholders' meeting. The revised provision will specify that not less than 1% of net profit before income tax shall be allocated for employees' compensation, of which no less than 10% shall be reserved for non-managerial staff.
The accrual compensation of employees and the remuneration of directors for the years ended December 31, 2025 and 2024 were as follows:
Accrual rate
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Compensation of employees | 11.25% | 11.25% |
| Remuneration of directors | 0.10% | 0.21% |
If there is a change in the amounts after the annual financial statements have been authorized for issue, the differences will be recorded as a change in the accounting estimate.
The compensation of employees and remuneration of directors for the years ended December 31, 2025 and 2024, which were approved by the Company's board of directors on March 12, 2026 and March 13, 2025, respectively, were as follows:
Amount
| For the Year Ended December 31 | ||||
|---|---|---|---|---|
| 2025 | 2024 | |||
| Cash | Share | Cash | Share | |
| Compensation of employees | $ 4,143,301 | $ - | $ 1,865,075 | $ - |
| Remuneration of directors | $ 35,000 | - | $ 35,000 | - |
There is no difference between the actual amounts of compensation of employees and remuneration of directors paid and the amounts recognized in the financial statements for the years ended December 31, 2024 and 2023.
Information on compensation of employees and remuneration of directors resolved by the Company's board of directors is available at the Market Observation Post System website of the Taiwan Stock Exchange.
24. INCOME TAXES
a. Income tax recognized in profit or loss
Major components of tax expense recognized are as follows:
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Current tax | ||
| In respect of the current year | $ 6,378,187 | $ 2,790,298 |
| Income tax on unappropriated earnings | 271,135 | 41,738 |
| Adjustments for prior years | (12,625) | - |
| Deferred tax | ||
| In respect of the current year | (328,870) | (153,338) |
| Income tax expense recognized in profit or loss | $ 6,307,827 | $ 2,678,698 |
A reconciliation of accounting profit and income tax expense is as follows:
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Profit before tax | $ 32,649,539 | $ 14,678,369 |
| Income tax expense calculated at the statutory rate | $ 6,529,908 | $ 2,935,674 |
| Income tax on unappropriated earnings | 271,135 | 41,738 |
| Nondeductible (deductible) expenses in determining taxable income | (138,602) | (101,687) |
| Investment tax credits used | (341,989) | (197,027) |
| Adjustments for prior years’ tax | (12,625) | - |
| Income tax expense recognized in profit or loss | $ 6,307,827 | $ 2,678,698 |
b. Income tax recognized in other comprehensive income
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Deferred tax | ||
| Unrealized gain (loss) on investments in equity instruments at fair value through other comprehensive income | $ 145,246 | $ 794,706 |
c. Current tax liabilities
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Current tax liabilities | ||
| Income tax payable | $ 5,513,654 | $ 2,300,237 |
d. Deferred tax assets and liabilities
The movements of deferred tax assets and liabilities were as follows:
For the year ended December 31, 2025
| Balance, at Beginning of Year | Recognized in Profit or Loss | Balance, at End of Year | |
|---|---|---|---|
| Deferred tax assets | |||
| Temporary difference | $ 273,576 | $ 201,922 | $ 475,498 |
| Deferred tax liabilities | |||
| Temporary difference | $(965,814) | $(18,300) | $(984,114) |
| For the year ended December 31, 2024 | |||
| Balance, at Beginning of Year | Recognized in Profit or Loss | Balance, at End of Year | |
| Deferred tax assets | |||
| Temporary difference | $ 314,069 | $(40,493) | $ 273,576 |
| Deferred tax liabilities | |||
| Temporary difference | $(364,939) | $(600,875) | $(965,814) |
e. Deductible temporary differences, unused loss carryforwards and unused investment credits for which no deferred tax assets have been recognized in the balance sheets
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Deductible temporary differences | $ 483,554 | $ 428,602 |
f. Income tax assessments
The tax authorities have examined income tax returns of the Company through 2023.
25. EARNINGS PER SHARE
Unit: NT$ Per Share
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Basic earnings per share | $ 47.13 | $ 21.49 |
| Diluted earnings per share | $ 46.79 | $ 21.35 |
The earnings and weighted average number of ordinary shares outstanding in the computation of earnings per share were as follows:
Net Profit for the Year
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Earnings used in the computation of basic and diluted earnings per share | $ 26,341,712 | $ 11,999,671 |
The weighted average number of ordinary shares outstanding (in thousand shares) was as follows:
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Weighted average number of ordinary shares used in the computation of basic earnings per share | 558,908 | 558,507 |
| Effect of potentially dilutive ordinary shares | ||
| Employee share options | - | 516 |
| Compensation of employees | 4,064 | 2,913 |
| Weighted average number of ordinary shares used in the computation of diluted earnings per share | 562,972 | 561,936 |
The Company may settle the compensation of employees in cash or shares; therefore, the Company assumes that the entire amount of the compensation will be settled in shares, and the resulting potential shares will be included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.
- 47 -
26. SHARE-BASED PAYMENT ARRANGEMENTS
Employee share option plan of the Company
Qualified employees of the Company and its subsidiaries were granted 20,000 thousand options on September 4, 2014. Each option entitles the holder to subscribe for one ordinary share of the Company. The options granted are valid for 10 years and exercisable at certain percentages after the second anniversary from the grant date.
Information on employee share options was as follows:
| For the Year Ended December 31, 2014 | ||
|---|---|---|
| Number of Options (In Thousands) | Weighted-average Exercise Price (NT$) | |
| 2024 | ||
| Balance on January 1 | 962 | $ 12.80 |
| Options exercised | (762) | 12.76 |
| Options expired | (200) | - |
| Balance on December 31 | - | - |
The number of outstanding share options and the exercise prices have been adjusted to reflect the share dividends and the cancellation of ordinary shares according to plan.
Options granted in 2014 were priced using the Black-Scholes pricing model. The inputs to the model were as follows:
| 2014 | |
|---|---|
| Grant-date share price ($) | $ 17.90 |
| Exercise price ($) | 17.90 |
| Expected volatility | 22.30% |
| Expected life | 10 years |
| Expected dividend yield | - |
| Risk-free interest rate | 1.63% |
The grant-date share fair price was measured by market-based method.
Expected volatility was based on the same industry company historical share price volatility over the past 1 year.
No compensation cost was recognized in the years ended December 31, 2025 and 2024.
27. GOVERNMENT GRANTS
As of December 31, 2025, the Company obtained a government preferential interest rate loan of $1,218,000 thousand from the "Action Plan for Welcoming Overseas Taiwanese Businesses to Return to Invest in Taiwan" for capital expenditure and operating turnover. The loan will be settled in three to seven years through installments. At the time of borrowing, the market interest rate was 1.10%-1.29%. Based on this, the fair value of the loan is estimated to be $1,162,936 thousand. The difference between the amount obtained and the fair value of the loan is $55,064 thousand, which is regarded as a government low-interest loan and recognized as deferred income. In 2025 and 2024, the Company recognized other income of
$5,114 thousand and $8,046 thousand and the interest expense of the loan of $3,914 thousand and $7,863 thousand, respectively.
If the Company fails to meet the key points of the above project during the loan period and the National Development Fund terminates the government grant, then the Company should pay the original interest rate plus the annual interest rate.
In 2025 and 2024, the Company recognized $19,505 thousand and $50 thousand, respectively, as other income from the business development grant and labor allowance grant received from the local government.
28. DISPOSAL OF SUBSIDIARY
a. On September 30, 2025, the Company completed the liquidation of its subsidiary, Accton Technology (China) Co., Ltd. (“Accton China”).
1) Analysis of assets and liabilities on the date of liquidation
| Accton China | |
|---|---|
| Current assets | |
| Cash and cash equivalents | $ 193,611 |
| Net assets disposed of | $ 193,611 |
2) Gain on liquidation of subsidiary
| Accton China | |
|---|---|
| Consideration received | $ 193,611 |
| Net assets disposed of | (193,611) |
| Gain on disposal | $ - |
b. On December 31, 2025, the Company completed the liquidation of its subsidiary, ACCE Technology Corp. (ACCE).
1) Analysis of assets and liabilities on the date of liquidation
| ACCE | |
|---|---|
| Current assets | |
| Cash and cash equivalents | $ 40,184 |
| Other receivables | 3,220 |
| Net assets disposed of | $ 43,404 |
2) Gain on liquidation of subsidiary
| ACCE | |
|---|---|
| Consideration received | $ 43,404 |
| Net assets disposed of | (43,404) |
| Gain on disposal | $ - |
- ACQUISITION OF SUBSIDIARY
| Subsidiary | Principal Activity | Date of Acquisition | Proportion of Voting Equity Interests Acquired (%) |
|---|---|---|---|
| InLC Technology Inc. | Research, development, manufacturing, and sales of information and communication components and equipment | December 20, 2024 | 75.42 |
For details regarding acquired InLC Technology Inc. please refer to Note 31 “Business Combinations” to the Company’s consolidated financial statements for the year ended December 31, 2025.
- CASH FLOW INFORMATION
a. Non-cash transactions
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Additions of property, plant and equipment | $ 3,380,836 | $ 2,312,230 |
| Changes in payables for construction and equipment | (261,262) | (309,081) |
| Changes in prepayments for equipment | 414,190 | 372,474 |
| Capitalization of borrowing costs | - | (552) |
| Payments for acquisition of property, plant and equipment | $ 3,533,764 | $ 2,375,071 |
b. Reconciliation of liabilities arising from financing activities
| Balance as of January 1, 2025 | Financing Cash Flow | Non-cash Changes | Balance as of December 31, 2025 | ||
|---|---|---|---|---|---|
| Leases Modifications | Other Changes (Note) | ||||
| Long-term borrowings | $ 541,934 | $ (300,558) | $ - | $ 1,534 | $ 242,910 |
| Lease liabilities | 1,615,932 | (262,396) | 843,763 | - | 2,197,299 |
| $ 2,157,866 | $ (562,954) | $ 843,763 | $ 1,534 | $ 2,440,209 | |
| Balance as of January 1, 2025 | Financing Cash Flow | Non-cash Changes | Balance as of December 31, 2025 | ||
| Leases Modifications | Other Changes (Note) | ||||
| Long-term borrowings | $ 838,305 | $ (300,558) | $ - | $ 4,187 | $ 541,934 |
| Lease liabilities | 1,052,104 | (169,584) | 733,412 | - | 1,615,932 |
| $ 1,890,409 | $ (470,142) | $ 733,412 | $ 4,187 | $ 2,157,866 |
Note: Other non-cash items included the amortization of interest subsidies on long-term bank borrowings.
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- 50 -
31. CAPITAL MANAGEMENT
The Company manages its capital to ensure that it has the necessary financial resources and operational plan to cover all required funds for the next 12 months for its capital expenditures, research and development plan, debt repayment, dividends, etc.
Based on the Company’s business model and working capital sources, the Company has no significant changes, except for shareholders’ share dividends and exercise of employee share options.
32. FINANCIAL INSTRUMENTS
a. Fair value of financial instruments not measured at fair value
December 31, 2025
| Carrying Amount | Fair Value | ||||
|---|---|---|---|---|---|
| Level 1 | Level 2 | Level 3 | Total | ||
| Financial assets | |||||
| Financial assets at amortized cost | |||||
| Corporate bonds | $ 748,019 | $ - | $ 731,966 | $ - | $ 731,966 |
| Government bonds/Agency bonds | 294,586 | - | 293,652 | - | 293,652 |
| $ 1,042,605 | $ - | $ 1,025,618 | $ - | $ 1,025,618 |
The fair value of Level 2 refers to the reference price provided by the issuing bank.
b. Fair value of financial instruments measured at fair value on a recurring basis
1) Fair value hierarchy
December 31, 2025
| Level 1 | Level 2 | Level 3 | Total | |
|---|---|---|---|---|
| Financial assets at FVTPL | ||||
| Mutual funds | $ 3,455,507 | $ - | $ - | $ 3,455,507 |
| Simple agreement for future equity | - | - | 155,320 | 155,320 |
| Structured products | - | 46,883 | - | 46,883 |
| Unlisted shares | - | - | 3,628 | 3,628 |
| Total | $ 3,455,507 | $ 46,883 | $ 158,948 | $ 3,661,338 |
| Financial assets at FVTOCI | ||||
| Investments in equity instruments | ||||
| Listed shares and emerging market shares | $ 289,579 | $ 136,705 | $ - | $ 426,284 |
| Unlisted shares | - | - | 782,408 | 782,408 |
| $ 289,579 | $ 136,705 | $ 782,408 | $ 1,208,692 |
December 31, 2024
| Level 1 | Level 2 | Level 3 | Total | |
|---|---|---|---|---|
| Financial assets at FVTPL | ||||
| Mutual funds | $ 743,036 | $ - | $ - | $ 743,036 |
| Unlisted shares | - | - | 144,551 | 144,551 |
| Simple agreement for future equity | - | - | 97,815 | 97,815 |
| Total | $ 743,036 | $ - | $ 242,366 | $ 985,402 |
| Financial assets at FVTOCI | ||||
| Investments in equity instruments | ||||
| Listed shares and emerging market shares | $ 140,143 | $ - | $ - | $ 140,143 |
| Unlisted shares | - | - | 451,381 | 451,381 |
| $ 140,143 | $ - | $ 451,381 | $ 591,524 |
There were no transfers between Level 1 and 2 in the current and prior years.
2) Reconciliation of Level 3 fair value measurements of financial instruments
For the year ended December 31, 2025
| Financial Assets | Financial Assets at FVTPL | Financial Assets at FVTOCI | ||
|---|---|---|---|---|
| Structured Products | Stocks | Simple Agreement for Future Equity | Stocks | |
| Balance on January 1, 2025 | $ - | $ 144,551 | $ 97,815 | $ 451,381 |
| Recognized in other gains and losses | 18,024 | (46,300) | 18,041 | - |
| Recognized in other comprehensive income | - | - | - | 39,560 |
| Purchases | - | - | 155,320 | 337,348 |
| Sales | (18,024) | (6,468) | (115,856) | (45,881) |
| Transfer | - | (88,155) | - | - |
| Balance on December 31, 2025 | $ - | $ 3,628 | $ 155,320 | $ 782,408 |
For the year ended December 31, 2024
| Financial Assets | Financial Assets at FVTPL | Financial Assets at FVTOCI | |||
|---|---|---|---|---|---|
| Structured Products | Stocks | Bonds | Simple Agreement for Future Equity | Stocks | |
| Balance on January 1, 2024 | $ 57,429 | $ 108,091 | $ 79,100 | $ - | $ 31,930 |
| Recognized in other gains and losses | (38,286) | 3,855 | (31,595) | - | - |
| Recognized in other comprehensive income | - | - | - | - | 224 |
| Purchases | - | 32,605 | - | 97,815 | 352,579 |
| Sales | - | - | - | - | - |
| Transfer | (19,143) | - | (47,505) | - | 66,648 |
| Balance on December 31, 2024 | $ - | $ 144,551 | $ - | $ 97,815 | $ 451,381 |
3) Valuation techniques and inputs applied for Level 3 fair value measurement
The fair values of unlisted equity securities for both domestic and foreign were determined by using market approach based on the transaction price of the comparable standard and financial information of the underlying company and the market peer. Market multipliers, such as price-to-earnings ratio, price book ratio, price-to-sales ratio or other financial ratios, are used to analyze and evaluate.
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Price book ratio | 1.508 | 2.199-3.019 |
| Price-to-sales ratio | 0.981 | 1.30-1.58 |
| Liquidity discount | 20% | 20% |
c. Categories of financial instruments
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Financial assets | ||
| FVTPL | ||
| Mandatorily classified as at FVTPL | $ 3,661,338 | $ 985,402 |
| Financial assets at amortized cost (Note 1) | 106,166,115 | 57,446,730 |
| Financial assets at FVTOCI | ||
| Equity instruments | 1,208,692 | 591,524 |
| Financial liabilities | ||
| Amortized cost (Note 2) | 78,052,602 | 40,057,532 |
Note 1: The balances include financial assets at amortized cost, which comprise cash and cash equivalents, notes and trade receivables (including related parties), other receivables (including related parties), time deposits with original maturity of more than 3 months, pledged time deposits, refundable deposits and bond investment.
Note 2: The balances included financial liabilities at amortized cost, which comprise trade payables (including related parties), payables to contractors and equipment suppliers, other payables (including related parties), long-term borrowings - current portion, long-term borrowings and guarantee deposits.
d. Financial risk management objectives and policies
The Company's financial risk management objective is to manage all risks that are relevant to operating activities, like foreign currency risk, interest rate risk, credit risk and liquidity risk. The Company strives to identify, assess and avoid the uncertainty in market to minimize the potential adverse impact of market. Important financial activities of the Company are approved by the board of directors and reviewed for compliance with internal controls and relevant regulations and management practices. The Company abides by the relevant financial procedures on overall financial risk management and division of responsibilities when implementing financial plans.
The Company’s policies on market risk (including currency risk, interest rate risk, and other price risk), credit risk and liquidity risk are as follows:
1) Market risk
The Company’s activities exposed it primarily to the financial risks of changes in foreign currency exchange rates (see (a) below) and interest rates (see (b) below). The Company entered into a variety of derivative financial instruments to manage its exposure to foreign currency risk and interest rate risk.
There has been no change to the Company’s exposure to market risks or the manner in which these risks are managed and measured.
a) Foreign currency risk
The Company has foreign currency denominated sales and purchases, which exposed the Company to foreign currency risk. To protect against reductions in value and the volatility of future cash flows caused by changes in foreign exchange rates, the Company utilizes short-term loans in foreign currency and derivative financial instruments (including forward exchange contracts) to hedge its currency exposure.
The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities and of the derivatives exposed to foreign currency risk at the end of the reporting period are set out in Note 36.
Sensitivity analysis
The Company is mainly exposed to the USD.
The following table details the Company’s sensitivity to a 1% increase and decrease in the New Taiwan dollar (i.e., the functional currency) against the relevant foreign currencies. 1% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and representing management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis included only outstanding foreign currency denominated monetary items and their adjusted translation at the end of the year for a 1% change in foreign currency rates. A positive number below indicates an increase in pre-tax profit associated with the New Taiwan dollar weakening 1% against the relevant currency. For a 1% strengthening of the New Taiwan dollar against the relevant currency, there would be an equal and opposite impact on pre-tax profit, and the balance below would be negative.
| USD Impact | |
|---|---|
| For the Year Ended December 31 | |
| 2025 | 2024 |
| Profit or loss | $ (191,428) |
b) Interest rate risk
Interest rates of the Company’s bank loans are fixed and variable, and have little effect on changing in interest rates, so the Company has not engaged in any hedging activities.
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The carrying amounts of the Company’s financial assets and financial liabilities with exposure to interest rates at the end of the reporting periods were as follows:
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Fair value interest rate risk | ||
| Financial assets | $ 39,328,136 | $ 19,281,747 |
| Financial liabilities | 2,197,299 | 1,615,932 |
| Cash flow interest rate risk | ||
| Financial assets | 4,944,419 | 1,450,115 |
| Financial liabilities | 242,910 | 541,934 |
Sensitivity analysis
The sensitivity analysis below was determined based on the Company’s exposure to interest rates for non-derivative instruments at the end of the reporting period. For variable interest rate assets, the analysis was prepared assuming the amount of each asset outstanding at the end of the reporting period was outstanding for the whole year.
If interest rates had been 0.1% basis points higher/lower and all other variables were held constant, the Company’s pre-tax profit for the years ended December 31, 2025 and 2024 would have increased/decreased by $4,702 thousand and $908 thousand, respectively, which was mainly attributable to the Company’s exposure to interest rates.
c) Other price risk
The Company was exposed to equity price risk through its investments in listed equity securities. Equity investments are held for strategic rather than trading purposes. The Company’s equity price risk was mainly concentrated in equity instruments operating in electronic industry quoted in the Taiwan Stock Exchange and Greta Securities Market.
Sensitivity analysis
The sensitivity analysis below was determined based on the exposure to equity price risks at the end of the reporting period.
If equity prices had been 1% higher/lower, the post-tax other comprehensive income for the years ended December 31, 2025 and 2024 would have increased/decreased by $4,263 thousand and $1,401 thousand, respectively, as a result of the changes in fair value of financial assets at FVTOCI.
2) Credit risk
Credit risk refers to the risk that a counterparty may default on its contractual obligations resulting in financial losses to the Company. The Company is exposed to credit risks from operating activities, primarily accounts receivable, and from investing activities, primarily deposits, fixed-income investments and other financial instruments with banks. Credit risk is managed separately for business related and financial related exposures. As of the end of the reporting period, the Company’s maximum credit risk exposure is equal to the carrying amount of financial assets.
Business related credit risk
In order to mitigate credit risk, the Company has made the management of credit policy to ensure that appropriate action is taken to recover overdue receivables. In addition, the Company reviews the recoverable amounts of each trade debt at the end of the reporting period to ensure that adequate
impairment losses are made for irrecoverable amounts. In this regard, the Company considers the credit risk is significantly reduced.
The Company's trade receivables outstanding arose from trading with its customers spreading across diverse industries and geographical areas. The balances are monitored on an ongoing basis by evaluating the customers' financial conditions, and the Company will purchase the credit guarantee insurance contract if necessary.
Under its credit policy, the Company evaluates the credit grade of new customers individually before determining payments and other transaction terms. For this evaluation, the Company acquires external information from credit rating agencies and banks. If this information is not available, the Company will use other publicly available financial information and its own trading records to rate its customers. The Company reviews credits and trades of each customer regularly and does not trade with the customers that do not meet the credit grade in advance.
The Company estimated the allowance for impairment loss recognized on trade receivables, other receivables and investments.
Financial credit risk
The Company invests only in debt instruments with credit ratings of investment grade or higher and low credit risk, based on impairment assessments. Credit rating information is provided by independent rating agencies. The Company regularly monitors external ratings and other financial indicators such as bond yield curves and significant information regarding the debt issuers to assess whether there has been a significant increase in credit risk since the initial recognition of the debt instruments.
The Company assesses the 12-month expected credit loss and lifetime expected credit loss based on the probability of default and loss given default provided by external credit rating agencies, along with the current financial condition of the debtors and industry outlook forecasts.
| Category | Description | Basis for Recognizing Expected Credit Loss |
|---|---|---|
| Performing | Credit rating is investment grade on valuation date | 12 months expected credit loss |
| Doubtful | Credit rating is non-investment grade on valuation date | Lifetime expected credit loss-not credit impaired |
| In default | Credit rating is CC or below on valuation date | Lifetime expected credit loss-credit impaired |
| Write-off | There is evidence indicating that the debtor is in severe financial difficulty and the Company has no realistic prospect of recovery | Amount is written off |
3) Liquidity risk
The Company manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Company's operations and mitigate the effects of fluctuations in cash flows. In addition, management monitors the utilization of bank borrowings and ensures compliance with loan covenants.
The Company relies on bank borrowings as a significant source of liquidity. As of December 31, 2025 and 2024, the Company had available unutilized bank loan facilities set out in (b) below.
a) Liquidity and interest risk rate tables for non-derivative financial liabilities
The following table details the Company's remaining contractual maturities for its non-derivative financial liabilities with agreed repayment periods. The table has been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Company can be required to pay. The table included both interest and principal cash flows. Specifically, bank loans with a repayment on demand clause were included in the earliest time band regardless of the probability of the banks choosing to exercise their rights. The maturity dates for other non-derivative financial liabilities were based on the agreed repayment dates.
December 31, 2025
| On Demand or Less than 1 Month | 1-3 Months | 3 Months to 1 Year | 1+ Years | Total | |
|---|---|---|---|---|---|
| Non-derivative financial liabilities | |||||
| Non-interest bearing | $ 29,739,653 | $ 40,342,902 | $ 7,714,814 | $ 12,169 | $ 77,809,538 |
| Lease liabilities | 12,410 | 59,664 | 268,316 | 2,347,948 | 2,688,338 |
| Variable interest rate liabilities | 25,323 | 54,568 | 81,339 | 88,095 | 249,325 |
| $ 29,777,386 | $ 40,457,134 | $ 8,064,469 | $ 2,448,212 | $ 80,747,201 |
Further information on the maturity analysis of the above financial liabilities was as follows:
| Less than 1 Year | 1-5 Years | 5-10 Years | 10-15 Years | 15-20 Years | 20+ Years | |
|---|---|---|---|---|---|---|
| Lease liabilities | $ 340,390 | $ 902,360 | $ 565,832 | $ 88,568 | $ 350,971 | $ 440,217 |
| Variable interest rate liabilities | 161,230 | 88,095 | - | - | - | - |
| $ 501,620 | $ 990,455 | $ 565,832 | $ 88,568 | $ 350,971 | $ 440,217 |
December 31, 2024
| On Demand or Less than 1 Month | 1-3 Months | 3 Months to 1 Year | 1+ Years | Total | |
|---|---|---|---|---|---|
| Non-derivative financial liabilities | |||||
| Non-interest bearing | $ 18,268,048 | $ 19,374,497 | $ 1,871,967 | $ 816 | $ 39,515,328 |
| Lease liabilities | 5,153 | 30,794 | 141,201 | 1,937,016 | 2,114,164 |
| Variable interest rate liabilities | 25,532 | 50,974 | 228,717 | 247,870 | 553,093 |
| $ 18,298,733 | $ 19,456,265 | $ 2,241,885 | $ 2,185,702 | $ 42,182,585 |
Further information on the maturity analysis of the above financial liabilities was as follows:
| Less than 1 Year | 1-5 Years | 5-10 Years | 10-15 Years | 15-20 Years | 20+ Years | |
|---|---|---|---|---|---|---|
| Lease liabilities | $ 177,148 | $ 411,401 | $ 624,410 | $ 89,960 | $ 352,363 | $ 458,882 |
| Variable interest rate liabilities | 305,223 | 211,727 | 36,143 | - | - | - |
| $ 482,371 | $ 623,128 | $ 660,553 | $ 89,960 | $ 352,363 | $ 458,882 |
b) Financing facilities
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Unsecured bank overdraft facilities: | ||
| Amount used | $ 241,002 | $ 541,560 |
| Amount unused | 9,125,706 | 8,923,455 |
| Subtotal | $ 9,366,708 | $ 9,465,015 |
The Company does not have bank loan facilities which may be extended by mutual agreements on December 31, 2025 and 2024.
- TRANSACTIONS WITH RELATED PARTIES
Besides as disclosed elsewhere in the other notes, details of transactions between the Company and its related parties are disclosed as follows.
a. Related party name and category
| Related Party Name | Related Party Category |
|---|---|
| Accton Logistics Corp. | Subsidiary |
| Accton Manufacturing and Service, Inc. | Subsidiary |
| Accton Technology Corp. USA | Subsidiary |
| Edgecore Networks Corp. | Subsidiary |
| E-Direct Corp. | Subsidiary |
| Accton Global, Inc. | Subsidiary |
| Vietnam Accton Technology Co., Ltd. | Subsidiary |
| GoldiLink Technology Corp. | Subsidiary |
| InLC Technology Inc. | Subsidiary |
| Nurvia Tech FZ-LLC | Subsidiary |
| Edgecore Americas Networking Corp. | Indirect subsidiary |
| Edgecore Networks Singapore Pte. Ltd. | Indirect subsidiary |
| Edgecore Networks India Pvt. Ltd. | Indirect subsidiary |
| ATAN NetworKs Co., Ltd. | Indirect subsidiary |
| Oenix Biomed Co., Ltd. | Associate |
| CheerLife Technology Corp. | Associate |
| NEOX FZCO | Associate |
| Hefei Osmanthus Intelligent Technology Co., Ltd. | Associate (Note) |
| Joy Technology (Shenzhen) Co., Ltd. | Subsidiaries of associates |
| Accton Technology Co., Ltd. | Subsidiaries of associates |
Note: In April 2025, the Company disposed of its 100% equity interest in Joy Tech and contributed part of the equity consideration to enter into a joint venture agreement with other shareholders to jointly invest in Hefei Osmanthus Intelligent Technology Co., Ltd.
b. Sales
| Line Item | Related Party Name/Category | For the Year Ended December 31 | |
|---|---|---|---|
| 2025 | 2024 | ||
| Sales | Accton Global, Inc. | $ 40,592,488 | $ 23,560,898 |
| Edgecore Networks Corp. | 3,300,289 | 3,557,103 | |
| Other subsidiaries and associates | 920,952 | 267,312 | |
| $ 44,813,729 | $ 27,385,313 |
The price of the Company's sales to related parties is based on the agreed terms; therefore, there is no appropriate transaction object to compare.
c. Purchases
| Line Item | Related Party Name/Category | For the Year Ended December 31 | |
|---|---|---|---|
| 2025 | 2024 | ||
| Purchases | Vietnam Accton Technology Co., Ltd. | $ 48,114,587 | $ 10,187,345 |
| Joy Technology (Shenzhen) Co., Ltd. | 5,910,712 | 7,144,137 | |
| Other subsidiaries | (45,570) | 471,908 | |
| $ 53,979,729 | $ 17,803,390 |
The price of the Company's sales to related parties is based on the agreed terms, therefore there is no appropriate transaction object to compare. The general payment terms are 45 to 90 days. The processing transaction between the Company and related parties is based on the agreed terms; therefore, there is no appropriate transaction object to compare.
d. Operating expense
| Line Item | Related Party Name/Category | For the Year Ended December 31 | |
|---|---|---|---|
| 2025 | 2024 | ||
| Operating expense | Accton Technology Corp. USA | $ 299,717 | $ 333,894 |
| Other subsidiaries and associates | 88,668 | 67,870 | |
| $ 388,385 | $ 401,764 |
The Company's operating expenses are mainly overseas supporting fees.
The overseas supporting fees between the Company and related parties are based on the agreed terms; therefore, there is no appropriate transaction object to compare.
e. Non-operating income and expenses
| Line Item | Related Party Name/Category | For the Year Ended December 31 | |
|---|---|---|---|
| 2025 | 2024 | ||
| Other revenue | Vietnam Accton Technology Co., Ltd. | $ 28,836 | $ 61,503 |
| Edgecore Networks Corp. | 4,314 | 6,811 | |
| Other subsidiaries and associates | 5,070 | 6,594 | |
| $ 38,220 | $ 74,908 |
The non-operating transactions between the Company and related parties are based on the agreed terms; therefore, there is no appropriate object to compare.
f. Contract liabilities
| Line Item | Related Party Name/Category | December 31 | |
|---|---|---|---|
| 2025 | 2024 | ||
| Contract liabilities | NEOX FZCO | $ 2,304 | $ - |
g. Receivables from related parties
| Line Item | Related Party Name/Category | December 31 | |
|---|---|---|---|
| 2025 | 2024 | ||
| Trade receivables | Accton Global, Inc. | $ 13,174,701 | $ 9,383,370 |
| from related | Edgecore Networks Corp. | 709,810 | 575,205 |
| parties | Other Subsidiaries and Associates | 374,418 | 144,973 |
| Transfer of investment loans using the equity method | (637,511) | (376,224) | |
| $ 13,621,418 | $ 9,727,324 | ||
| Other receivables | Vietnam Accton Technology Co., Ltd. | $ 16,996,667 | $ 8,584,208 |
| from related | Joy Technology (Shenzhen) Co., Ltd. | 515,892 | 916,043 |
| parties | Other Subsidiaries and Associates | 15,658 | 120,255 |
| Transfer of investment loans using the equity method | - | (1,355) | |
| $ 17,528,217 | $ 9,619,151 |
The Company's partial collection conditions for foreign related parties are 60 days to 90 days from the shipping point. It is 60 days to 75 days for domestic related parties.
h. Payables to related parties
| Line Item | Related Party Name/Category | December 31 | |
|---|---|---|---|
| 2025 | 2024 | ||
| Trade payables | Vietnam Accton Technology Co., Ltd. | $ 17,741,210 | $ 6,711,856 |
| to related parties | Joy Technology (Shenzhen) Co., Ltd. | 1,104,979 | 2,068,534 |
| Accton Technology Co., Ltd. | - | 10,519 | |
| $ 18,846,189 | $ 8,790,909 | ||
| Other payables | Accton Technology Corp. USA | $ 110,027 | $ 257,334 |
| to related Parties | Joy Technology (Shenzhen) Co., Ltd. | 692 | 97,040 |
| Accton Technology Co., Ltd. | 4,114 | 51,925 | |
| Other subsidiaries and associates | 8,009 | 9,817 | |
| $ 122,842 | $ 416,116 |
The general payment terms of the Company are 45 to 90 days.
i. Acquisitions of property, plant and equipment
| Related Party Name/Category | Purchase Price | |
|---|---|---|
| 2025 | 2024 | |
| Subsidiaries and Associates | $ 265 | $ 755 |
The transaction of property, plant and equipment between the Company and related parties is based on the agreed terms.
j. Disposals of property, plant and equipment
| Related Party Name/Category | Proceeds Price | |
|---|---|---|
| 2025 | 2024 | |
| Subsidiaries | $ 73,584 | $ 66,325 |
The transaction of property, plant and equipment between the Company and related parties is based on the agreed terms, and the gain or loss on sales of property, plant and equipment is not significant.
k. Acquisitions of intangible assets
| Related Party Name/Category | Purchase Price | |
|---|---|---|
| 2025 | 2024 | |
| Associates | $ 146 | $ - |
l. Prepayments
| Related Party Name/Category | December 31 | |
|---|---|---|
| 2025 | 2024 | |
| InLC Technology Inc. | $ 53,810 | $ 64,040 |
| Edgecore Networks India Pvt. Ltd. | 18,452 | - |
| $ 72,262 | $ 64,040 |
m. Remuneration of key management personnel
The remuneration to directors and other key management personnel for the years ended December 31, 2025 and 2024 were as follows:
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Short-term employee benefits | $ 180,431 | $ 141,506 |
| Termination benefits | 986 | 938 |
| $ 181,417 | $ 142,444 |
The compensation to directors and other key management personnel were determined by the Compensation Committee of the Company in accordance with the individual performance and the market trends.
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34. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY
The following assets were provided as collateral for the tariff guarantee and performance guarantee:
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Pledge time deposits (classified as other financial assets-non current) | $ 72,263 | $ 72,242 |
35. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS
As of December 31, 2025, the Company needed to issue a letter of guarantee from the bank to the customs for import/export goods that amounted to $65,000 thousand.
The Company has issued unused letters of credit for purchases of equipment, and amounted of the guarantee was JPY182,342 thousand.
The Company is building a new plant, and the total estimated value of the signed construction contract was $2,650,000 thousand. As of December 31, 2025, the unrecognized amount was $487,922 thousand.
36. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES
The Company’s significant financial assets and liabilities denominated in foreign currencies aggregated by the foreign currencies other than functional currencies and the related exchange rates between the foreign currencies and the respective functional currencies were as follows:
| December 31, 2025 | |||
|---|---|---|---|
| Foreign Currency (In thousand) | Exchange Rate | Carrying Amount (In thousand) | |
| Financial assets | |||
| Monetary items USD | $ 2,915,915 | 31.430 (USD:NTD) | $ 91,647,219 |
| Financial liabilities | |||
| Monetary items USD | 2,342,011 | 31.430 (USD:NTD) | 73,609,408 |
| December 31, 2024 | Foreign Currency (In thousand) | Exchange Rate | Carrying Amount (In thousand) |
| Financial assets | |||
| Monetary items USD | $ 1,595,072 | 32.785 (USD:NTD) | $ 52,294,429 |
| Financial liabilities | |||
| Monetary items USD | 1,113,096 | 32.785 (USD:NTD) | 36,492,861 |
The significant realized and unrealized foreign exchange gains (losses) were as follows:
| For the Year Ended December 31 | ||||
|---|---|---|---|---|
| 2025 | 2024 | |||
| Exchange Rate (Functional Currency: | Exchange Rate (Functional Currency: | |||
| Foreign Currency | Presentation Currency) | Net Foreign Exchange Gain | Presentation Currency) | Net Foreign Exchange Gain |
| USD | 31.180 (USD:NTD) | $ 144,716 | 32.112 (USD:NTD) | $ 679,737 |
37. SEPARATELY DISCLOSED ITEMS
a. Information on significant transactions and investees:
1) Financing provided to others (None)
2) Endorsements/guarantees provided (Table 1)
3) Significant marketable securities held (excluding investments in subsidiaries, associates and joint ventures) (Table 2)
4) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 3)
5) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 4)
6) Trading in derivative instruments. (Note 32)
7) Information on investees (excluding any investee company in mainland China) (Table 5)
b. Information on investments in mainland China
1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the year, repatriations of investment income, and limit on the amount of investment in the mainland China area. (Table 6)
2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses. Refer to the Company's consolidated Financial Statement for 2025's Table 5.
TABLE 1
ACCTON TECHNOLOGY CORPORATION AND SUBSIDIARIES
ENDORSEMENTS/GUARANTEES PROVIDED
FOR THE YEAR ENDED DECEMBER 31, 2025
(In Thousands of Various Foreign Currencies/New Taiwan Dollars)
| No. | Endorser/Guarantor | Endorsee/Guarantee | Limits on Endorsement/ Guarantee Given on Behalf of Each Party (Note 3) | Maximum Amount Endorsed/ Guaranteed During the Period | Outstanding Endorsement/ Guarantee at the End of the Period | Actual Borrowing Amount | Amount Endorsed/ Guaranteed by Collaterals | Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%) | Aggregate Endorsement/ Guarantee Limit (Note 3) | Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries | Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent | Endorsement/ Guarantee Given on Behalf of Companies in Mainland China | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Name | Relationship (Note 2) | ||||||||||||
| 0 | Accton Technology Corporation | Accton Global, Inc. | 2 | $ 5,753,953 | $ 1,475,040 | $ 1,414,350 | $ 40,859 | $ - | 2.45 | $ 17,261,859 | Yes | No | No |
| Vietnam Accton Technology Co., Ltd. | 2 | 5,753,953 | (USD 48,000) | (USD 45,000) | (USD 1,300) | - | 0.82 | 17,261,859 | Yes | No | No | ||
| 1 | Joy Technology (Shenzhen) Co., Ltd. | MuXi Technology Co., Ltd. | 4 | Note 4 | 1,367,485 (USD 44,500) 208,161 (RMB 45,000) | 471,450 (USD 15,000) Note 4 | - | - | Note 4 | Note 4 | No | No | Yes |
Note 1: The description of the number column is as follows:
1) Lender is numbered as 0.
2) Investee is numbered sequentially from 1.
Note 2: The following seven items are relationship of endorsement guarantors and endorsed objects:
1) The company with business contact.
2) The company directly and indirectly holds more than 50% of the shares of the voting rights.
3) Directly and indirectly holds more than 50% of the shares of the voting rights to the company.
4) The company directly and indirectly holds more than 90% of the shares of the voting rights.
5) The company that is mutually protected under contractual requirements based on the needs of the contractor.
6) The company that is endorsed by its all-funded shareholders in accordance with its shareholding ratio because of the joint investment relationship.
7) Performance guarantees for the sale of presale contracts under the Consumer Protection Act.
Note 3: The limit on amount of endorsement and guarantee is explained below:
1) In accordance with the company's procedure for endorsement and guarantee, the ceiling on total endorsement and guarantee to all parties is 30% of its net sales value; the ceiling on single guarantee object to all parties is 10% of its net assets value.
2) The policy for endorsement and guarantee granted by subsidiaries to the company whose voting shares are directly or indirectly wholly-owned is not limited by the above description.
Note 4: Joy Technology (ShenZhen) Co., Ltd., Accton Technology Co., Ltd., and Muxi Technology Co., Ltd. completed their disposal transactions in April 2025. As these entities are no longer subsidiaries of the Company, they are not included within the scope of guarantee disclosures.
TABLE 2
ACCTON TECHNOLOGY CORPORATION AND SUBSIDIARIES
SIGNIFICANT MARKETABLE SECURITIES HELD
DECEMBER 31, 2025
(In Thousands of Various Foreign Currencies/New Taiwan Dollars)
| Holding Company Name | Type and Name of Marketable Securities | Relationship with the Holding Company | Financial Statement Account | December 31, 2025 | Note | |||
|---|---|---|---|---|---|---|---|---|
| Shares/Units (Thousands) | Carrying Amount | Percentage of Ownership | Fair Value | |||||
| Accton Technology Corporation | Fund | |||||||
| UBS (Lux) Money Market Fund - USD P-acc | - | Financial assets at fair value through profit or loss - current | 10 | $ 638,289 | - | $ 638,289 | Note 5 | |
| JPMorgan Funds - US Aggregate Bond Fund | - | Financial assets at fair value through profit or loss - current | 83 | 319,692 | - | 319,692 | Note 5 | |
| BlackRock Global Fund - US Dollar Reserve Fund | - | Financial assets at fair value through profit or loss - current | 52 | 301,358 | - | 301,358 | Note 5 | |
| JPMorgan Funds - Global Short Duration Bond Fund | - | Financial assets at fair value through profit or loss - current | 730 | 303,255 | - | 303,255 | Note 5 | |
| FSITC Money Market Fund | - | Financial assets at fair value through profit or loss - current | 1,335 | 251,548 | - | 251,548 | Note 5 | |
| Mega Diamond Money Market Fund | - | Financial assets at fair value through profit or loss - current | 7,671 | 101,849 | - | 101,849 | Note 5 | |
| Yuanta Wan Tai Money Market Fund | - | Financial assets at fair value through profit or loss - current | 15,237 | 243,782 | - | 243,782 | Note 5 | |
| Yuanta De-Bao Money Market Fund | - | Financial assets at fair value through profit or loss - current | 21,611 | 274,515 | - | 274,515 | Note 5 | |
| Yuanta De-Li Money Market Fund | - | Financial assets at fair value through profit or loss - current | 10,035 | 173,104 | - | 173,104 | Note 5 | |
| Fidelity Funds - US Dollar Cash Fund | - | Financial assets at fair value through profit or loss - current | 1,893 | 786,981 | - | 786,981 | Note 5 | |
| Shares | ||||||||
| First Hi-Tec Enterprise Co., Ltd. | - | Financial assets at fair value through other comprehensive income - current | 748 | 237,116 | 1% | 237,116 | Note 4 | |
| Pershing Technology Services Corporation | - | Financial assets at fair value through other comprehensive income - current | 2,800 | 134,555 | 8% | 134,555 | Note 6 | |
| Lumilens Inc. - preference share | - | Financial assets at fair value through other comprehensive income - non-current | 7,374 | 595,562 | 12% | 595,562 | Note 3 | |
| Bonds | ||||||||
| US Treasury Bonds | - | Financial assets at amortized cost - non-current | 7,300 | 230,607 | - | 230,723 | Note 3 | |
| Westpac Banking Corp. | - | Financial assets at amortized cost - non-current | 6,500 | 213,424 | - | 210,636 | Note 3 | |
| HSBC Global Investment Funds | - | Financial assets at amortized cost - non-current | 4,000 | 129,909 | - | 127,745 | Note 3 | |
| Citigroup Global Markets Holdings Inc. | - | Financial assets at amortized cost - non-current | 9,000 | 292,620 | - | 282,712 | Note 3 |
(Continued)
| Holding Company Name | Type and Name of Marketable Securities | Relationship with the Holding Company | Financial Statement Account | December 31, 2025 | Note | |||
|---|---|---|---|---|---|---|---|---|
| Shares/Units (Thousands) | Carrying Amount | Percentage of Ownership | Fair Value | |||||
| Accton Investment Corp. | Shares | |||||||
| Accton Technology Corporation | ||||||||
| Astera Labs Inc. | Parent company | |||||||
| - | Financial assets at fair value through other comprehensive income - current | |||||||
| Financial assets at fair value through other comprehensive income - non-current | 2,210 | |||||||
| 899 | $ 50,999 | |||||||
| 4,699,762 | - | |||||||
| - | $ 2,618,692 | |||||||
| 4,699,762 | Note 4 | |||||||
| Note 4 |
Note 1: As of December 31, 2025 the above marketable securities have not been pledged or mortgaged.
Note 2: For information on subsidiaries and associates, refer to Tables 5 and 6.
Note 3: The market value was based on the carrying amount as of December 31, 2025.
Note 4: The market value was based on the closing price as of December 31, 2025.
Note 5: The market value was based on the net asset value of the fund as of December 31, 2025.
Note 6: The market value was based on the average quoted price as of December 31, 2025.
(Concluded)
TABLE 3
ACCTON TECHNOLOGY CORPORATION AND SUBSIDIARIES
TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NTS100 MILLION OR 20% OF THE PAID-IN CAPITAL
FOR THE YEAR ENDED DECEMBER 31, 2025
(In Thousands of New Taiwan Dollars)
| Company Name | Related Party | Relationship | Transaction Details | Abnormal Transaction | Notes/Trade Receivables (Payables) | Note | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Purchase/Sale | Amount | % of Total | Payment Terms | Unit Price | Payment Terms | Ending Balance | % of Total | ||||
| Accton Technology Corporation | Vietnam Accton Technology Co., Ltd. | Subsidiary | Purchase | $ 48,114,587 | 24 | Monthly 90 days | Specified at each transaction | Monthly 90 days | $ (17,741,210) | 30 | - |
| Joy Technology (Shenzhen) Co., Ltd. | Indirect subsidiary | Purchase | 5,910,712 | 3 | 45 days after the invoice date | Specified at each transaction | 45 days after the invoice date | (1,104,979) | 2 | - | |
| Edgecore Networks Corp. | Subsidiary | Purchase | 285,418 | - | 60 days after the delivery date | Specified at each transaction | 60 days after the delivery date | - | - | ||
| Accton Global, Inc. | Subsidiary | Sale | 40,592,488 | 16 | 75 days after the delivery date | Specified at each transaction | 75 days after the delivery date | 13,174,701 | 35 | - | |
| Edgecore Networks Corp. | Subsidiary | Sale | 3,300,289 | 1 | 60 days after the delivery date | Specified at each transaction | 60 days after the delivery date | 709,810 | 2 | - | |
| Accton Manufacturing and Service, Inc. | Subsidiary | Sale | 883,376 | - | 60 days after the delivery date | Specified at each transaction | 60 days after the delivery date | 359,743 | 1 | ||
| Joy Technology (Shenzhen) Co., Ltd. | Accton Technology Co., Ltd. | Held by the same ultimate holding company | Sale | 903,330 | - | 90 days after the invoice date | Specified at each transaction | 90 days after the invoice date | Note | Note | - |
| MuXi Technology Co., Ltd. | Held by the same ultimate holding company | Sale | 567,177 | - | Monthly 45 days | Specified at each transaction | Monthly 45 days | Note | Note | - | |
| Edgecore Networks Corp. | Edgecore Americas Networking Corp. | Subsidiary | Sale | 1,440,045 | 1 | 75 days after the invoice date | Specified at each transaction | 75 days after the invoice date | 268,190 | 1 | - |
| NEOX FZCO | Associate | Sale | 361,332 | - | 60 days after the delivery date | Specified at each transaction | 60 days after the delivery date | - | - |
Note : Joy Technology (Shenzhen) Co., Ltd., Accton Technology Co., Ltd. and MuXi Technology Co., Ltd. completed their disposal procedures in April 2025.
TABLE 4
ACCTON TECHNOLOGY CORPORATION AND SUBSIDIARIES
RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL
DECEMBER 31, 2025
(In Thousands of New Taiwan Dollars)
| Company Name | Related Party | Relationship | Ending Balance (Note 3) | Turnover Rate (Note 1) | Overdue | Amounts Received in Subsequent Period | Allowance for Impairment Loss | |
|---|---|---|---|---|---|---|---|---|
| Amount | Actions Taken | |||||||
| Accton Technology Corporation | Accton Global, Inc. | Subsidiary | $ 13,176,416 | 3.60 | $ 846,236 | - | $ 846,236 | $ - |
| Vietnam Accton Technology Co., Ltd. | Subsidiary | 17,000,197 | Note 2 | 6,167,921 | Strengthen collection | 1,990,881 | - | |
| Joy Technology (Shenzhen) Co., Ltd. | Indirect subsidiary | 515,937 | Note 2 | - | - | - | - | |
| Edgecore Networks Corp. | Subsidiary | 721,545 | 5.14 | - | - | - | - | |
| Accton Manufacturing and Service, Inc. | Subsidiary | 361,610 | 3.83 | 148,896 | - | 148,896 | - | |
| Edgecore Networks Corp. | Edgecore Americas Networking Corp. | Subsidiary | 268,190 | 5.06 | - | - | - | - |
| Vietnam Accton Technology Co., Ltd. | Accton Technology Corporation | Ultimate parent company | 17,741,210 | 4.24 | - | - | - | - |
Note 1: The calculation of turnover days excludes other receivables.
Note 2: The ending balance is primarily consisted of other receivables, which is not applicable for the calculation of turnover days.
Note 3: Receivables from related parties include trade receivables from related parties and other receivables from related parties.
TABLE 5
ACCTON TECHNOLOGY CORPORATION AND SUBSIDIARIES
INFORMATION ON INVESTEES (EXCLUDING ANY INVESTEES COMPANY IN MAINLAND CHINA)
FOR THE YEAR ENDED DECEMBER 31, 2025
(In Thousands of Foreign Currencies/New Taiwan Dollars)
| Investor Company | Investee Company | Location | Main Businesses and Products | Original Investment Amount | Balance as of December 31, 2025 | Net Income (Loss) of the Investee | Investment Gain (Loss) Recognized | Note | |||
|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, 2025 | December 31, 2024 | Number of Shares (Thousands) | % of Ownership | Carrying Amount | |||||||
| Accton Technology Corporation | Accton Century Holding (BVI) Co., Ltd. | British Virgin Islands | Investment holding company | $ 567,688 | $ 1,664,416 | 17,727 | 100 | $ 996,293 | $ (261,283) | $ (239,120) | Notes 1 and 2 |
| Edgecore Networks Corp. | Hsinchu | Research, development, design, manufacture and selling of switching hubs | 650,000 | 650,000 | 50,000 | 100 | 1,652,560 | 491,429 | 491,429 | Note 1 | |
| Accton Manufacturing and Service, Inc. | USA | Manufacture and selling of switching hubs | 1,051,224 | 769,644 | 33,649 | 100 | 359,247 | (3,912) | (3,912) | Note 1 | |
| Accton Technology (China) Co., Ltd. | Cayman Islands | Investment holding company | - | 279,635 | - | - | - | (3,723) | (3,723) | Notes 1 and 9 | |
| Accton Technology Corp. USA | USA | Service of technique of high-quality LAN hardware and software products | 342,132 | 342,132 | 2,199 | 100 | 205,854 | 5,263 | 5,263 | Note 1 | |
| Accton Investment Corp. | British Virgin Islands | Investment holding company | 79,676 | 79,676 | 1,004 | 100 | 4,980,618 | (39,381) | (39,381) | Note 1 | |
| Accton Logistics Corp. | USA | Selling and marketing of high-quality LAN hardware and software products | 89,267 | 89,267 | 1 | 100 | 132,226 | 3,569 | 3,569 | Note 1 | |
| Accton Global, Inc. | USA | Selling and marketing of high-quality LAN hardware and software products | 35,316 | 35,316 | 10 | 100 | (637,511) | 5,562 | 5,562 | Note 1 | |
| ACCE Technology Corp. | Cayman Islands | Investment holding company | - | 43,596 | - | - | - | (314) | (314) | Notes 1 and 3 | |
| E-Direct Corp. | Taipei | Provides services in information software and information technology | 12,556 | 12,556 | 800 | 100 | 39,652 | 21,701 | 21,701 | Note 1 | |
| Metalligence Technology Corp. | Taipei | Provides e-commerce apps, information software and advertising services | - | 430 | - | - | - | 1,355 | 1,355 | Notes 1 and 8 | |
| CheerLife Technology Corp. | Taipei | Provides e-commerce apps, information software and advertising services | 70 | 70 | 7 | 20 | - | - | - | Note 4 | |
| Oenix Biomed Co., Ltd. | Taipei | Research and development of health care services and equipment | 20,000 | 20,000 | 2,000 | 40 | 7,081 | 47 | 19 | Note 1 | |
| Vietnam Accton Technology Co., Ltd. | Vietnam | Manufacture and selling of switching hubs | 793,520 | 793,520 | - | 100 | 905,480 | 726,392 | 740,133 | Notes 1 and 2 | |
| InLC Technology Inc. | Korea | Research, development, manufacturing, and sales of information and communication components and equipment | 887,438 | 550,744 | 13,322 | 83 | 466,682 | (116,484) | (381,143) | Notes 1 and 6 |
(Continued)
| Investor Company | Investee Company | Location | Main Businesses and Products | Original Investment Amount | Balance as of December 31, 2025 | Net Income (Loss) of the Investee | Investment Gain (Loss) Recognized | Note | |||
|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, 2025 | December 31, 2024 | Number of Shares (Thousands) | % of Ownership | Carrying Amount | |||||||
| Accton Technology Corporation | GoldiLink Technology Corp. | Hsinchu | Research, development, design, manufacturing and sales of optical modules | $ 40,184 | $ - | 4,000 | 100 | $ 40,211 | $ 193 | $ 58 | Notes 1 and 5 |
| Accton Century Holding (BVI) Co., Ltd. | Nurvia Tech fz-llc | Dubai | Data center design | 73,812 | - | 10 | 100 | 69,363 | (5,960) | (5,960) | Notes 1 and 10 |
| Edgecore Networks Corp. | Accton Asia Investments Corp. | British Virgin Islands | Investment holding company | 247,014 | 1,323,392 | 7,859 | 100 | 922,200 | (262,205) | (262,205) | Note 1 |
| Edgecore Networks Singapore Pte. Ltd. | Singapore | Selling and marketing of high-quality LAN hardware and software products | (USD 7,859) | (USD 42,106) | 3,557 | 100 | 35,715 | 1,041 | 1,041 | Note 1 | |
| Edgecore Americas Networking Corp. | USA | Selling and marketing of high-quality LAN hardware and software products | 19,172 | 19,172 | 10 | 100 | 234,243 | 43,618 | 43,618 | Note 1 | |
| Edgecore Networks India Pvt. Ltd. | India | Research, development, design, manufacture and selling of switching hubs | (USD 610) | (USD 610) | 3,885 | 100 | (21,514) | (19,975) | (19,975) | Note 1 | |
| NEOX FZCO | Dubai | Telecommunications Equipment and Accessories Manufacturing, Electronic Printed Circuit Boards Assembling | 97,905 | 97,905 | 1 | 50 | 122,726 | 113,246 | 56,736 | Notes 1 and 7 | |
| ACCE Technology Corp. | GoldiLink Technology Corp. | Hsinchu | Research, development, design, manufacturing and sales of optical modules | - | 40,000 | - | - | - | 193 | 135 | Notes 1 and 5 |
Note 1: Based on audited financial statements.
Note 2: After adjustment of gains or losses from related parties.
Note 3: In December 2025, ACCE Technology Corp. completed its liquidation procedures.
Note 4: Recognized an impairment loss.
Note 5: In May 2024, GoldiLink Technology Corp. completed the registration of its establishment, and in September 2025, the company was 100% acquired by Accton Technology.
Note 6: In December 2025, the Company acquired 75.42% of InLC Technology Inc.'s shares. In January 2025, the Company injected capital, which was fully subscribed by Accton Technology Corporation. As a result, Accton's ownership interest increased from 75.42% to 82.99%.
Note 7: In December 2024, NEOX FZCO completed its capital injection.
Note 8: In March 2025, Metalligence Technology completed its liquidation.
Note 9: In September 2025, Accton Technology (China) Co., Ltd. completed its liquidation.
Note 10: In October 2025, Nurvia Tech fz-llc completed its capital injection.
(Concluded)
TABLE 6
ACCTON TECHNOLOGY CORPORATION AND SUBSIDIARIES
INFORMATION ON INVESTMENTS IN MAINLAND CHINA
FOR THE YEAR ENDED DECEMBER 31, 2025
(In Thousands of Foreign Currencies/New Taiwan Dollars)
| Investee Company | Main Businesses and Products | Total Amount of Paid-in Capital (Note 2) | Method of Investment | Accumulated Outflow Remittance for Investment from Taiwan as of January 1, 2025 (Note 2) | Investment Flows | Accumulated Outflow Remittance for Investment from Taiwan as of December 31, 2025 (Note 2) | Net Income (Loss) of the Investee | % Ownership of Direct or Indirect Investment | Investment Gain (Loss) | Carrying Amount as of December 31, 2025 | Accumulated Repatriation of Investment Income as of December 31, 2025 (Note 2) | Note | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Outflow | Inflow (Note 2) | ||||||||||||
| Joy Technology (Shenzhen) Co., Ltd. | Selling and producing of high-end network switches | $ 1,423,555 (USD 44,500) | Notes 1 and 11 | $ - | $ - | $ - | $ - | $ 37,752 | 100 | $ 37,752 | $ - | $ 4,983,562 (USD 155,785) | Note 3 |
| Accton Technology Co., Ltd. | Sale of network products | 191,940 (USD 6,000) | Notes 1 and 12 | 191,940 (USD 6,000) | - | 178,312 (USD 5,574) | 13,628 (USD 426) | (34,988) | 100 | (34,988) | - | - | Note 3 |
| Noctilucent Systems (Shanghai) Limited | Sale of network products | 97,433 (USD 3,100) | Note 1 | 97,433 (USD 3,100) | - | - | 97,433 (USD 3,100) | (5,306) | 100 | (5,306) | (26,590) | - | Note 3 |
| MuXi Technology Co., Ltd. | Sale of network products | 4,442 (RMB 1,000) | Note 10 | - | - | - | - | (9,709) | 100 | (9,709) | - | - | Note 3 |
| Hefei Osmanthus Intelligent Technology Co., Ltd. | Provides computer technology services, development, and sales of equipment | 2,235,800 (RMB 500,000) | Notes 1 and 11 | - | 869,048 (USD 27,650) | - | 869,048 (USD 27,650) | 68,578 | 40 | 27,431 | 922,867 | - | Note 3 |
| Investee Company | Accumulated Investment in Mainland China as of December 31, 2025 | Investment Amounts Authorized by the Investment Commission, MOEA | Upper Limit on the Amount of Investments Stipulated by the Investment Commission, MOEA | ||||||||||
| --- | --- | --- | --- | ||||||||||
| Joy Technology (Shenzhen) Co., Ltd. (Note 11) | USD - | USD 44,500 (Note 4) | |||||||||||
| Accton Technology Co., Ltd. (Note 12) | USD 426 | USD 6,000 | |||||||||||
| Noctilucent Systems (Shanghai) Limited | USD 6,479 (Notes 5 and 8) | USD 5,000 | $ 34,523,718 | ||||||||||
| ATAN NetworKs Co., Ltd. | USD 3,100 | USD 3,500 | |||||||||||
| Arcadyan Technology (Shanghai) Corp. (Note 6) | USD 684 | USD 5,586 | |||||||||||
| Tomato Technology (Shanghai) Corp. (Note 7) | USD 380 | USD 380 | |||||||||||
| Zhuhai Jinfangda Technology Co., Ltd. (Note 9) | USD 937 | USD 937 | |||||||||||
| Hefei Osmanthus Intelligent Technology Co., Ltd. (Note 11) | USD 27,650 | USD 27,650 |
Note 1: Investment made in mainland China was through the Company's subsidiaries that are located in the third region.
Note 2: Based on the exchange rate as of December 31, 2025. As Joy Technology (Shenzhen) Co., Ltd., Accton Technology Co., Ltd. and MuXi Technology Co., Ltd. completed their disposal procedures in April 2025, the translation of the related financial information was made using the USD and RMB exchange rates prevailing as of April 30, 2025.
Note 3: The amount was recognized based on the audited financial statements.
Note 4: Issuance of ordinary shares out of retained earnings amounted to USD7,500 thousand.
Note 5: Repayment of debt amounted to USD1,567 thousand.
(Continued)
Note 6: In December 2009, the Company sold 17% shares of Arcadyan Technology (Shanghai) Co., Ltd. to Arcadyan Technology Company and its affiliates.
Note 7: Tomato Technology (Shanghai) Corp. was sold in July 2009. The Investment Commission of the Ministry of Economic Affairs approved the sale of the investment.
Note 8: In September 2017, the Company sold Noctilucent (HK)'s 81% shares and jointly disposed of Noctilucent Systems (Shanghai) Limited. The resale case was approved by the Ministry of Economic Affairs for review. In October 2023, the Company was approved by the No. 11256116460 letter to deduct the amount of investment by US$88 thousand.
Note 9: On April 19, 2019, the Company got the approval from the Investment Board, Ministry of Economic Affairs to invest in Zhuhai Jinfangda Technology Co., Ltd. which was recognized under the financial assets at fair value through profit or loss - non-current.
Note 10: Accton Technology Co., Ltd.'s indirect investment in a company located in mainland China.
Note 11: In April 2025, the Company disposed of its 100% equity interest in Joy Technology (Shenzhen) Co., Ltd. and contributed part of the equity consideration to enter into a joint venture agreement with other shareholders to jointly invest in Hefei Osmanthus Intelligent Technology Co., Ltd. The aforementioned disposal and deregistration of the investment were duly approved and recorded by the Ministry of Economic Affairs Investment Commission.
Note 12: In April 2025, the Company sold the equity interest and obtained the approval letter from the Ministry of Economic Affairs Investment Commission for the disposal and deregistration of the investment.
(Concluded)
- 71 -
- 72 -
THE CONTENTS OF STATEMENTS OF MAJOR ACCOUNTING ITEMS
| ITEM | STATEMENT INDEX |
|---|---|
| MAJOR ACCOUNTING ITEMS IN ASSETS, LIABILITIES AND EQUITY | |
| STATEMENT OF CASH AND CASH EQUIVALENTS | 1 |
| STATEMENT OF FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS - CURRENT | 2 |
| STATEMENT OF FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME | 3 |
| STATEMENT OF FINANCIAL ASSETS AT AMORTIZED COST - CURRENT | 4 |
| STATEMENT OF NOTES AND TRADE RECEIVABLES, NET | 5 |
| STATEMENT OF OTHER RECEIVABLES, NET | 6 |
| STATEMENT OF INVENTORIES | 7 |
| STATEMENT OF FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS - NON-CURRENT | 8 |
| STATEMENT OF CHANGES IN FINANCIAL ASSETS AT AMORTIZED COST - NON-CURRENT | 9 |
| STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD | 10 |
| STATEMENT OF CHANGES IN PROPERTY, PLANT AND EQUIPMENT | Note 13 |
| STATEMENT OF CHANGES IN ACCUMULATED DEPRECIATION OF PROPERTY, PLANT AND EQUIPMENT | Note 13 |
| STATEMENT OF CHANGES IN RIGHT-OF-USE ASSETS | 11 |
| STATEMENT OF CHANGES IN ACCUMULATED DEPRECIATION OF RIGHT-OF-USE ASSETS | 11 |
| STATEMENT OF CHANGES IN INTANGIBLE ASSETS | Note 15 |
| STATEMENT OF DEFERRED INCOME TAX ASSETS | Note 24(3) |
| STATEMENT OF TRADE PAYABLES | 12 |
| STATEMENT OF LONG-TERM BORROWINGS | Note 17 |
| STATEMENT OF LEASE LIABILITIES | 13 |
| MAJOR ACCOUNTING ITEMS IN PROFIT OR LOSS | |
| STATEMENT OF NET REVENUE | 14 |
| STATEMENT OF OPERATING COSTS | 15 |
| STATEMENT OF OPERATING EXPENSES | 16 |
| STATEMENT OF OTHER REVENUE | Note 23 |
| STATEMENT OF LABOR, DEPRECIATION, DEPLETION AND AMORTIZATION BY FUNCTION | 17 |
STATEMENT 1
ACCTON TECHNOLOGY CORPORATION
STATEMENT OF CASH AND CASH EQUIVALENTS
DECEMBER 31, 2025
(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)
| Item | Description | Amount |
|---|---|---|
| Cash on hand | $ 422 | |
| Demand deposits | Including NT$722,518 thousand, USD124,163 thousand @31.43, RMB$193 thousand @4.496, JPY$1,572,827 thousand @0.2008, EUR$17 thousand @36.9 and SGD$87 thousand @24.45 | 4,944,419 |
| Checking accounts | 1,867 | |
| Time deposits | Expired by the end of February 2026 interest rates at 1.600%-4.100% | 15,057,188 |
| Cash equivalents | ||
| Repurchase agreements collateralized by bonds | Expired by the end of January 2026 interest rates at 3.950%-4.030% | 4,117,330 |
| $ 24,121,226 |
STATEMENT 2
ACCTON TECHNOLOGY CORPORATION
STATEMENT OF FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS - CURRENT
DECEMBER 31, 2025
(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)
| Item | Units (Thousand) | Cost | Fair Value | Note | |
|---|---|---|---|---|---|
| Unit Price | Amount | ||||
| Beneficiary certificates of the open-end mutual funds | |||||
| Yuanta De-Bao Money Market Fund | 21,611 | $ 270,000 | 12.7025 | $ 274,515 | Note 1 |
| Yuanta De-Li Money Market Fund | 10,035 | 170,000 | 17.2494 | 173,104 | Note 1 |
| Yuanta Wan Tai Money Market Fund | 15,237 | 240,000 | 15.9994 | 243,782 | Note 1 |
| Mega Diamond Money Market Fund | 7,671 | 100,000 | 13.2773 | 101,849 | Note 1 |
| Jih Sun Money Market Fund | 3,982 | 60,000 | 15.7087 | 61,134 | Note 1 |
| FSITC Money Market Fund | 1,335 | 250,000 | 188.4410 | 251,548 | Note 1 |
| UBS (Lux) Money Market Fund - USD P-acc | 10 | 596,800 | 66,379.2171 | 638,289 | Note 1 |
| BlackRock Global Fund - US Dollar Reserve Fund | 52 | 287,945 | 5,760.8738 | 301,358 | Note 1 |
| JPMorgan Funds - Global Short Duration Bond Fund | 730 | 283,270 | 415.1903 | 303,255 | Note 1 |
| JPMorgan Funds - US Aggregate Bond Fund | 83 | 294,100 | 3,857.4039 | 319,692 | Note 1 |
| Fidelity Funds - US Dollar Cash Fund | 1,893 | 781,375 | 415.8220 | 786,981 | Note 1 |
| $ 3,333,490 | $ 3,455,507 | ||||
| Structured products | |||||
| DBS Bank Structured debt | 1,500 | $ 46,883 | 31.2550 | $ 46,883 | Note 2 |
Note 1: The market value was based on the net asset value of the fund as of December 31, 2025.
Note 2: The market value was based on the average quoted price on December 31, 2025.
STATEMENT 3
ACCTON TECHNOLOGY CORPORATION
STATEMENT OF FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME
DECEMBER 31, 2025
(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)
| Item | Unit (Thousand) | Acquisition Cost | Fair Value | Note | |
|---|---|---|---|---|---|
| Unit Price (Dollars) | Amount | ||||
| Current | |||||
| Domestic listed shares and emerging market shares | |||||
| First Hi-Tec Enterprise Co., Ltd. | 748 | $ 11,221 | 317.00 | $ 237,116 | Note 1 |
| Cathay Financial Holding Co., Ltd. - preference shares | 830 | 49,800 | 60.70 | 50,381 | Note 1 |
| Clientron Corp. | 289 | 1,979 | 7.43 | 2,150 | Note 2 |
| Cathay Financial Holding Co., Ltd.- preference share B | 35 | 2,082 | 60.00 | 2,082 | Note 1 |
| Pershing Technology Services Corporation | 2,800 | 7,457 | 48.05 | 134,555 | Note 2 |
| $ 72,539 | $ 426,284 | ||||
| Non-Current | |||||
| Foreign unlisted shares | |||||
| Worldgate Communication, Inc. | 3,200 | $ 41,695 | - | $ - | Note 3 |
| Reed Semiconductor Corp. | 250 | 31,930 | - | 31,430 | Note 3 |
| NEUROBLADE LTD. | 330 | 24,177 | - | 23,578 | Note 3 |
| LUMILENS INC. | 7,374 | 595,562 | - | 595,562 | Note 3 |
| Shasta Cloud, Inc. | 601 | 31,840 | - | 31,429 | Note 3 |
| AVIZ NETWORKS, INC. | 5,997 | 47,505 | - | 62,060 | Note 3 |
| DOCQUITY HOLDINGS DTE. LTD. | 11 | 16,457 | - | 16,457 | Note 3 |
| Element Labs Ltd. | 157 | 21,892 | - | 21,892 | Note 3 |
| $ 811,058 | $ 782,408 |
Note 1: The market value was based on the closing price as of December 31, 2025.
Note 2: The market value was based on the average quoted price as of December 31, 2025.
Note 3: The market value was based on the fair value as of December 31, 2025.
STATEMENT 4
ACCTON TECHNOLOGY CORPORATION
STATEMENT OF FINANCIAL ASSETS AT AMORTIZED COST - CURRENT
DECEMBER 31, 2025
(In Thousands of New Taiwan Dollars)
| Item | Description | Amount |
|---|---|---|
| Time deposits with original maturity of more than 3 months | NTD250,000 thousand, Period: 2025.01.02-2026.01.02, Annual interest rate 0.69% | $ 250,000 |
| NTD300,000 thousand, Period: 2025.01.03-2026.01.03, Annual interest rate 1.70% | 300,000 | |
| NTD200,000 thousand, Period: 2025.03.09-2026.03.09, Annual interest rate 0.69% | 200,000 | |
| NTD400,000 thousand, Period: 2025.03.09-2026.03.09, Annual interest rate 0.69% | 400,000 | |
| NTD300,000 thousand, Period: 2025.10.28-2026.10.28, Annual interest rate 0.69% | 300,000 | |
| NTD210,000 thousand, Period: 2025.10.28-2026.10.28, Annual interest rate 0.69% | 210,000 | |
| NTD400,000 thousand, Period: 2025.08.12-2026.08.12, Annual interest rate 0.69% | 400,000 | |
| NTD300,000 thousand, Period: 2025.08.12-2026.08.12, Annual interest rate 0.69% | 300,000 | |
| NTD400,000 thousand, Period: 2025.01.11-2026.01.11, Annual interest rate 1.70% | 400,000 | |
| NTD300,000 thousand, Period: 2025.08.12-2026.02.12, Annual interest rate 1.68% | 300,000 | |
| NTD600,000 thousand, Period: 2025.08.05-2026.02.12, Annual interest rate 1.68% | 600,000 | |
| NTD360,000 thousand, Period: 2025.08.14-2026.08.25, Annual interest rate 1.70% | 360,000 | |
| NTD600,000 thousand, Period: 2025.08.25-2026.02.25, Annual interest rate 1.68% | 600,000 | |
| NTD600,000 thousand, Period: 2025.08.21-2026.08.25, Annual interest rate 1.70% | 600,000 | |
| NTD500,000 thousand, Period: 2025.08.19-2026.08.25, Annual interest rate 1.70% | 500,000 | |
| NTD700,000 thousand, Period: 2025.08.26-2026.03.12, Annual interest rate 1.68% | 700,000 | |
| NTD500,000 thousand, Period: 2025.08.05-2026.03.30, Annual interest rate 1.68% | 500,000 | |
| NTD340,000 thousand, Period: 2025.08.15-2026.01.29, Annual interest rate 1.64% | 340,000 | |
| NTD400,000 thousand, Period: 2025.09.03-2026.04.09, Annual interest rate 1.65% | 400,000 | |
| NTD500,000 thousand, Period: 2025.09.15-2026.05.26, Annual interest rate 1.65% | 500,000 | |
| NTD400,000 thousand, Period: 2025.09.25-2026.04.29, Annual interest rate 1.65% | 400,000 | |
| NTD200,000 thousand, Period: 2025.12.02-2026.08.25, Annual interest rate 1.65% | 200,000 | |
| NTD400,000 thousand, Period: 2025.12.12-2026.07.24, Annual interest rate 1.65% | 400,000 | |
| NTD600,000 thousand, Period: 2025.12.17-2026.08.25, Annual interest rate 1.65% | 600,000 | |
| NTD300,000 thousand, Period: 2025.12.24-2026.08.25, Annual interest rate 1.65% | 300,000 | |
| NTD400,000 thousand, Period: 2025.12.31-2026.08.25, Annual interest rate 1.65% | 400,000 | |
| NTD500,000 thousand, Period: 2025.09.23-2026.01.08, Annual interest rate 1.59% | 500,000 | |
| NTD200,000 thousand, Period: 2025.12.15-2026.06.29, Annual interest rate 1.60% | 200,000 | |
| NTD300,000 thousand, Period: 2025.12.26-2026.05.26, Annual interest rate 1.59% | 300,000 | |
| NTD300,000 thousand, Period: 2025.10.16-2026.05.26, Annual interest rate 1.61% | 300,000 | |
| NTD300,000 thousand, Period: 2025.10.09-2026.05.07, Annual interest rate 1.65% | 300,000 | |
| NTD400,000 thousand, Period: 2025.10.31-2026.08.25, Annual interest rate 1.63% | 400,000 | |
| NTD350,000 thousand, Period: 2025.11.24-2026.08.25, Annual interest rate 1.63% | 350,000 | |
| NTD300,000 thousand, Period: 2025.11.04-2026.08.25, Annual interest rate 1.63% | 300,000 | |
| NTD400,000 thousand, Period: 2025.12.08-2026.08.25, Annual interest rate 1.65% | 400,000 | |
| NTD300,000 thousand, Period: 2025.12.19-2026.08.25, Annual interest rate 1.65% | 300,000 | |
| NTD700,000 thousand, Period: 2025.08.28-2026.03.30, Annual interest rate 1.67% | 700,000 | |
| NTD600,000 thousand, Period: 2025.11.28-2026.08.25, Annual interest rate 1.65% | 600,000 | |
| USD10,000 thousand, Period: 2025.10.03-2026.01.08, Annual interest rate 4.15% | 314,300 | |
| USD15,000 thousand, Period: 2025.12.05-2026.06.11, Annual interest rate 3.87% | 471,450 | |
| USD15,000 thousand, Period: 2025.09.19-2026.03.12, Annual interest rate 3.90% | 471,450 | |
| USD10,000 thousand, Period: 2025.03.10-2026.03.10, Annual interest rate 4.27% | 314,300 | |
| USD10,000 thousand, Period: 2025.08.28-2026.03.05, Annual interest rate 4.18% | 314,300 | |
| USD10,000 thousand, Period: 2025.08.28-2026.03.12, Annual interest rate 4.18% | 314,300 | |
| USD10,000 thousand, Period: 2025.09.15-2026.09.15, Annual interest rate 3.91% | 314,300 | |
| USD15,000 thousand, Period: 2025.09.23-2026.02.12, Annual interest rate 3.96% | 471,450 | |
| USD10,000 thousand, Period: 2025.09.30-2026.09.30, Annual interest rate 3.84% | 314,300 | |
| USD10,000 thousand, Period: 2025.10.29-2026.04.30, Annual interest rate 3.83% | 314,300 | |
| USD10,000 thousand, Period: 2025.10.31-2026.02.05, Annual interest rate 3.98% | 314,300 | |
| Corporate bonds | USD2,000 thousand, Maturity Date: 2026.03.15, Coupon rates 3.125%, Effective interest rates 4.492% | 63,806 |
| Government bonds/Agency bonds | USD1,000 thousand, Maturity Date: 2026.02.15, Coupon rates 4.000%, Effective interest rates 4.529% | 31,973 |
| USD1,000 thousand, Maturity Date: 2026.03.15, Coupon rates 4.625%, Effective interest rates 4.545% | 32,006 |
$ 19,166,535
STATEMENT 5
ACCTON TECHNOLOGY CORPORATION
STATEMENT OF NOTES AND TRADE RECEIVABLES, NET
DECEMBER 31, 2025
(In Thousands of New Taiwan Dollars)
| Client Name | Amount |
|---|---|
| Client A | $ 21,394,694 |
| Client B | 2,947,941 |
| Others (Note 1) | 5,703,282 |
| 30,045,917 | |
| Less: Allowance for impairment loss | (1,525) |
| $ 30,044,392 |
Note 1: The amount of individual client included in others does not exceed 5% of the account balance.
Note 2: No aging overdue for more than one year.
STATEMENT 6
ACCTON TECHNOLOGY CORPORATION
STATEMENT OF OTHER RECEIVABLES, NET
DECEMBER 31, 2025
(In Thousands of New Taiwan Dollars)
| Item | Amount |
|---|---|
| Tax refund | $ 340,389 |
| Scrap material receivables | 42,359 |
| Others (Note) | 224,702 |
| 607,450 | |
| Less: Allowance for impairment loss | (950) |
| $ 606,500 |
Note: The amount of individual client included in others does not exceed 5% of the account balance.
- 78 -
STATEMENT 7
ACCTON TECHNOLOGY CORPORATION
STATEMENT OF INVENTORIES
DECEMBER 31, 2025
(In Thousands of New Taiwan Dollars)
| Item | Amount | |
|---|---|---|
| Cost | Net Realizable Value | |
| Merchandise | $ 1,507,903 | $ 1,528,036 |
| Finished goods | 5,931,557 | 6,196,679 |
| Work in progress | 2,378,667 | 2,454,500 |
| Raw materials | 13,073,119 | 10,334,658 |
| $ 22,891,246 | $ 20,513,873 |
STATEMENT 8
ACCTON TECHNOLOGY CORPORATION
STATEMENT OF FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS - NON-CURRENT
FOR THE YEAR ENDED DECEMBER 31, 2025
(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)
| Investees | Balance, January 1, 2025 | Additions | Decreases | Adjustment (Note 2) | Balance, December 31, 2025 | ||||
|---|---|---|---|---|---|---|---|---|---|
| Shares (Thousand) | Amount | Shares (Thousand) | Amount | Shares (Thousand) | Amount | Shares (Thousand) | Amount | ||
| Domestic and foreign unlisted ordinary shares | |||||||||
| Pershing Technology Systems Corporation | 2,942 | $ 100,379 | - | $ - | (2,942) | $ (94,511) | $ (5,868) | - | $ - |
| i Pass Corporation | 1,140 | - | - | - | - | - | - | 1,140 | - |
| Wave-In Communication Inc. | 1,318 | 11,567 | - | - | - | - | (7,939) | 1,318 | 3,628 |
| Linker Corporation | 469 | - | - | - | - | - | - | 469 | - |
| Global Channel Resource Pte. Ltd. | 500 | - | - | - | - | - | - | 500 | - |
| Stratus Medicine Inc. | 833 | - | - | - | - | - | - | 833 | - |
| Zentera Systems, Inc. | 400 | - | - | - | - | - | - | 400 | - |
| Clop Technologies Pte. Ltd. | 2,000 | - | - | - | - | - | - | 2,000 | - |
| Xingtera Technology Optimizes | 478 | - | - | - | - | - | - | 478 | - |
| MiTAC Information Technology Corp. | 300 | - | - | - | - | - | - | 300 | - |
| Acute Technology Corp. | 2,650 | - | - | - | - | - | - | 2,650 | - |
| Microlinks Technology Corp. | 138 | - | - | - | - | - | - | 138 | - |
| Peracom Networks, Inc. | 2,931 | - | - | - | - | - | - | 2,931 | - |
| MoBitS Electronics, Inc. | 387 | - | - | - | - | - | - | 387 | - |
| VODTEL Communications Inc. | 122 | - | - | - | (12) | (112) | 112 | 110 | - |
| Midfin Systems Inc. | 1,084 | - | - | - | - | - | - | 1,084 | - |
| Noctilucent (HK) Limited | - | - | - | - | - | - | - | - | - |
| Xconn Technologies Holdings, Ltd. | 268 | 32,605 | - | - | - | - | (32,605) | 268 | - |
| 144,551 | (94,623) | (46,300) | 3,628 | ||||||
| Foreign unlisted convertible bonds | |||||||||
| AVIZ Networks Inc. | - | - | - | - | - | - | - | - | - |
| Shoreline IoT, Inc. | - | - | - | - | - | - | - | - | - |
| - | - | - | - | ||||||
| Simple agreement for future equity | |||||||||
| Nubis Communications, Inc. | - | 97,815 | - | - | - | (115,856) | 18,041 | - | - |
| ZFLOW INC. | - | - | - | 30,300 | - | - | - | - | 30,300 |
| AIBF SOLUTION PTE. LTD. | - | - | - | 62,380 | - | - | - | - | 62,380 |
| EXAFORCE, INC. | - | - | - | 62,640 | - | - | - | - | 62,640 |
| 97,815 | 155,320 | (115,856) | 18,041 | 155,320 | |||||
| Structured products | |||||||||
| Enfabrica Corp. | - | - | - | - | - | (18,024) | 18,024 | - | - |
| $ 242,366 | $ 155,320 | $ (228,503) | $ (10,235) | $ 158,948 |
Note 1: There is no pledge or guarantee for the above financial assets.
Note 2: Recognition for the profit (loss) of financial assets was measured at fair value as of December 31, 2025.
STATEMENT 9
ACCTON TECHNOLOGY CORPORATION
STATEMENT OF CHANGES IN FINANCIAL ASSETS AT AMORTIZED COST - NON-CURRENT
FOR THE YEAR ENDED DECEMBER 31, 2025
(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)
| Name of Marketable Securities | Balance, January 1, 2025 | Changes | Balance, December 31, 2025 | ||||
|---|---|---|---|---|---|---|---|
| Shares (Thousand) | Amount | Shares (Thousand) | Amount | Interest Amortized | Shares (Thousand) | Amount | |
| US Treasury Bonds | 9,300 | $ 293,420 | (2,000) | $ (63,979) | $ 1,166 | 7,300 | $ 230,607 |
| Citigroup Global Markets Holdings Inc. | 9,000 | 292,620 | - | - | - | 9,000 | 292,620 |
| Westpac Banking Corp. | 6,500 | 214,266 | - | - | (842) | 6,500 | 213,424 |
| Wells Fargo & Company | 5,500 | 177,564 | (5,500) | (178,045) | 481 | - | - |
| HSBC Global Investment Funds | 4,000 | 130,192 | - | - | (283) | 4,000 | 129,909 |
| Berkshire Hathaway Inc. | 2,000 | 62,981 | (2,000) | (63,806) | 825 | - | - |
| Toyota Motor Credit Corp. | 1,000 | 32,020 | - | - | 116 | 1,000 | 32,136 |
| National Australia Bank Ltd | 500 | 16,082 | - | - | 42 | 500 | 16,124 |
| $ 1,219,145 | $ (305,830) | $ 1,505 | $ 914,820 |
Note: The above financial assets were unsecured or provided as guarantee.
STATEMENT 10
ACCTON TECHNOLOGY CORPORATION
STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD
FOR THE YEAR ENDED DECEMBER 31, 2025
(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)
| Balance, January 1, 2020 | Increases (Decrease) | Shares of the Other Comprehensive Income (Loss) of Subsidiaries Accounted for Using the Equity Method (Note 1) | Acquired Subsidiaries Cash Dividends | Subsidiaries Allocated the Parent Company's Cash Dividend | Unrealized Gain (Loss) on Investments in Equity Instruments at Fair Value Through Other Comprehensive Income | Exchange Differences Arising on Translation to the Presentation Currency | (Unrealized) Realized Gain | Disposal of Investments in Equity Instruments at Fair Value Through Other Comprehensive Income | Capital Surplus | Retained Earnings | Balance, December 31, 2020 | Through Other Net Assets Value | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Shares (Thousand) | Amount | Shares (Thousand) | Amount | Shares (Thousand) | % | Amount | |||||||||||
| Accton Century Holding (BVI) Co., Ltd. | 51,973 | $ 2,121,625 | (34,246) | $ (1,096,728) | $ (239,120) | $ - | $ - | $ - | $ 210,516 | $ - | $ - | $ - | $ - | 17,727 | 100 | $ 996,293 | $ 1,025,498 |
| Edgacom Networks Corp. | 50,000 | 1,955,322 | - | - | 491,429 | (772,530) | - | (221) | (11,077) | (10,363) | - | - | - | 50,000 | 100 | 1,652,560 | 1,732,145 |
| Accton Technology Corp. USA | 2,199 | 209,311 | - | - | 5,263 | - | - | - | (8,720) | - | - | - | - | 2,199 | 100 | 205,854 | 205,854 |
| Accton Manufacturing and Service, Inc. | 24,149 | 80,860 | 9,500 | 281,580 | (3,912) | - | - | 2,685 | (1,966) | - | - | - | - | 33,649 | 100 | 359,247 | 359,247 |
| Accton Investment Corp. | 1,004 | 4,173,741 | - | - | (39,381) | - | 24,308 | 726,234 | - | - | 93,716 | - | - | 1,004 | 100 | 4,980,618 | 5,031,617 |
| Accton Technology (China) Co., Ltd. (Note 3) | 6,600 | 177,556 | (6,600) | (193,611) | (3,723) | - | - | - | 19,778 | - | - | - | - | - | - | - | - |
| Accton Logistics Corp. | 1 | 134,136 | - | - | 3,569 | - | - | - | (5,479) | - | - | - | - | 1 | 100 | 132,226 | 132,226 |
| E-direct Corp. | 800 | 59,068 | - | - | 21,701 | (41,117) | - | - | - | - | - | - | - | 800 | 100 | 39,652 | 37,722 |
| Oonis Biomed Co., Ltd. | 2,000 | 7,062 | - | - | 19 | - | - | - | - | - | - | - | - | 2,000 | 40 | 7,081 | 7,081 |
| Metalligence Technology Corp. (Note 4) | 215 | (1,355) | (215) | - | 1,355 | - | - | - | - | - | - | - | - | - | - | - | - |
| CheerLife Technology Corp. (Note 5) | 7 | - | - | - | - | - | - | - | - | - | - | - | - | 7 | 20 | - | - |
| ACCE Technology Corp. (Note 6) | 1,400 | 43,853 | (1,400) | (43,404) | (314) | - | - | - | - | - | - | (135) | - | - | - | - | - |
| GoldLink Technology Corp. (Note 6) | - | - | 4,000 | 40,184 | 58 | (166) | - | - | - | - | - | 135 | - | 4,000 | 100 | 40,211 | 40,211 |
| Vietnam Accton Technology Co., Ltd. | - | 265,013 | - | - | 740,133 | - | - | - | (28,169) | (71,497) | - | - | - | - | 100 | 905,480 | 1,039,416 |
| Accton Global, Inc. | 10 | (376,224) | - | - | 5,562 | - | - | - | 12,525 | (279,374) | - | - | - | 10 | 100 | (637,511) | 153,990 |
| InLC Technology Inc. (Note 7) | 8,384 | 547,953 | 4,938 | 336,694 | (301,143) | - | - | - | (11,430) | - | - | (8,113) | (17,279) | 13,322 | 83 | 466,682 | 43,385 |
| Narvia Tech FZ-LLC (Note 8) | - | - | 10 | 73,812 | (5,960) | - | - | - | 1,511 | - | - | - | - | 10 | 100 | 69,363 | 69,363 |
| 9,397,921 | $ (601,473) | $ 595,536 | $ (813,813) | $ 24,308 | $ 728,698 | $ 177,489 | $ (361,234) | $ 93,716 | $ (8,113) | $ (17,279) | 9,217,756 | $ 9,877,755 | |||||
| Receivables from related parties | 376,224 | 637,511 | |||||||||||||||
| Other receivables from related parties | 1,355 | ||||||||||||||||
| Total | $ 9,775,588 | $ 9,855,267 |
Note 1: The gains and losses of the investments and the net equity value are calculated according to the investees' financial statements, which had been audited by the accountants.
Note 2: There is no pledge or guarantee for the above financial assets.
Note 3: In September 2025, Accton Technology (China) Co., Ltd. completed its liquidation procedures.
Note 4: In March 2025, Metalligence Technology Corp. completed its liquidation procedures.
Note 5: The calculation of gains and losses of the investments and the net asset value was based on the investees' unaudited financial statements.
Note 6: In September 2025, for organizational structuring, the Company acquired 100% of GoldLink shares that were held by ACCE. In December 2025, ACCE Technology Corp. completed its liquidation procedures.
Note 7: In December 2024, the Company acquired 75.42% of InLC Technology Inc. shares. In January 2025, the Company participated in a capital increase by subscribing to 100% of the newly issued shares, resulting in an increase in its ownership interest from 75.42% to 82.99%.
Note 8: In October 2025, Narvia Tech fs-lc completed its capital injection.
STATEMENT 11
ACCTON TECHNOLOGY CORPORATION
STATEMENT OF CHANGES IN RIGHT-OF-USE ASSETS AND STATEMENT OF CHANGES IN ACCUMULATED DEPRECIATION OF RIGHT-OF-USE ASSETS FOR THE YEAR ENDED DECEMBER 31, 2025
(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)
| Land | Buildings | Transportation Equipment | Total | |
|---|---|---|---|---|
| Cost | ||||
| Balance on January 1, 2025 | $ 1,168,292 | $ 1,446,396 | $ 7,306 | $ 2,621,994 |
| Additions | - | 885,943 | 3,279 | 889,222 |
| Reductions | (4,791) | (349,522) | (1,222) | (355,535) |
| Balance on December 31, 2025 | 1,163,501 | 1,982,817 | 9,363 | 3,155,681 |
| Accumulated depreciation | ||||
| Balance on January 1, 2025 | 109,555 | 742,836 | 5,225 | 857,616 |
| Additions | 30,313 | 271,063 | 2,418 | 303,794 |
| Reductions | - | (308,962) | (1,222) | (310,184) |
| Balance on December 31, 2025 | 139,868 | 704,937 | 6,421 | 851,226 |
| Carrying amount at December 31, 2025 | $ 1,023,633 | $ 1,277,880 | $ 2,942 | $ 2,304,455 |
STATEMENT 12
ACCTON TECHNOLOGY CORPORATION
STATEMENT OF TRADE PAYABLES
DECEMBER 31, 2025
(In Thousands of New Taiwan Dollars)
| Vendor Name | Amount |
|---|---|
| Vender A | $ 10,853,029 |
| Vender B | 3,460,791 |
| Vender C | 3,122,511 |
| Vender D | 2,721,780 |
| Others (Note) | 33,532,882 |
| Total | $ 53,690,993 |
Note: The amount of individual vendor in others does not exceed 5% of the account balance.
- 84 -
STATEMENT 13
ACCTON TECHNOLOGY CORPORATION
STATEMENT OF LEASE LIABILITIES
FOR THE YEAR ENDED DECEMBER 31, 2025
(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)
| Item | Lease Term | Discount Rate | Amount |
|---|---|---|---|
| Land | 2019.01-2062.02 | 2.37%-2.80% | $ 902,614 |
| Buildings | 2019.01-2034.09 | 1.66%-2.75% | 1,291,931 |
| Transportation equipment | 2022.08-2027.11 | 1.83%-2.68% | 2,754 |
| Total | 2,197,299 | ||
| Less: Lease liabilities - current | (293,386) | ||
| Lease liabilities -non-current | $ 1,903,913 |
STATEMENT 14
ACCTON TECHNOLOGY CORPORATION
STATEMENT OF NET REVENUE
FOR THE YEAR ENDED DECEMBER 31, 2025
(In Thousands of New Taiwan Dollars)
| Item | Quantity | Unit | Amount |
|---|---|---|---|
| Switch | 2,722 | Thousand | $ 85,457,196 |
| Network application | 8,949 | Thousand | 153,956,358 |
| Metro access switch | 217 | Thousand | 3,152,801 |
| Wireless | 170 | Thousand | 622,966 |
| Others | 4,951,452 | ||
| 248,140,773 | |||
| Sales return and allowance | (1,252,000) | ||
| $ 246,888,773 |
STATEMENT 15
ACCTON TECHNOLOGY CORPORATION
STATEMENT OF OPERATING COSTS
FOR THE YEAR ENDED DECEMBER 31, 2025
(In Thousands of New Taiwan Dollars)
| Item | Amount |
|---|---|
| Direct materials | |
| Balance, beginning of year | $ 7,085,447 |
| Raw materials purchased | 198,297,120 |
| Transferred to expenses and others | (42,232,667) |
| Raw materials cost of sales | (4,470,050) |
| Raw materials, end of year | (13,073,119) |
| 145,606,731 | |
| Manufacturing expenses | 4,561,459 |
| Direct labor | 1,652,329 |
| Manufacturing costs | 151,820,519 |
| Work in progress, beginning of year | 1,369,148 |
| Work in progress, end of year | (2,378,667) |
| Transferred to expenses and others | (535,139) |
| Cost of finished goods | 150,275,861 |
| Finished goods, beginning of year | 4,150,199 |
| Finished goods, end of year | (5,931,557) |
| Transferred to expenses and others | 906,904 |
| Cost of production and marketing | 149,401,407 |
| Merchandise, beginning of year | 1,052,350 |
| Merchandise purchased | 53,427,069 |
| Merchandise, end of year | (1,507,903) |
| Transferred to expenses and others | (2,366,846) |
| Cost of trading merchandise | 50,604,670 |
| Cost of selling raw materials | 4,470,050 |
| Cost of maintenance | 183,139 |
| Cost of goods sold | $ 204,659,266 |
STATEMENT 16
ACCTON TECHNOLOGY CORPORATION
STATEMENT OF OPERATING EXPENSES
FOR THE YEAR ENDED DECEMBER 31, 2025
(In Thousands of New Taiwan Dollars)
| Item | Selling and Marketing Expense | General and Administrative Expense | Research and Development Expense |
|---|---|---|---|
| Salaries and bonuses | $ 887,483 | $ 1,701,560 | $ 4,609,046 |
| Depreciation expense | - | 254,412 | - |
| Consumables fees | - | - | 397,750 |
| Overseas sales supporting fees | 299,717 | - | - |
| Import/Export expenses | 171,911 | - | - |
| Miscellaneous expenses | - | 252,067 | - |
| Others (Note) | 535,867 | 676,578 | 1,406,140 |
| $ 1,894,978 | $ 2,884,617 | $ 6,412,936 |
Note: The amount of each item in others does not exceed 5% of the account balance.
- 88 -
STATEMENT 17
ACCTON TECHNOLOGY CORPORATION
STATEMENT OF LABOR, DEPRECIATION AND AMORTIZATION BY FUNCTION
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars)
| For the Year Ended December 31 | ||||||
|---|---|---|---|---|---|---|
| 2025 | 2024 | |||||
| Classified as Operating Costs | Classified as Operating Expenses | Total | Classified as Operating Costs | Classified as Operating Expenses | Total | |
| Labor cost | ||||||
| Salary | $ 1,773,103 | $ 7,198,089 | $ 8,971,192 | $ 1,125,025 | $ 4,191,632 | $ 5,316,657 |
| Labor and health insurance | 175,434 | 272,551 | 447,985 | 120,612 | 210,993 | 331,605 |
| Pension | 39,024 | 132,331 | 171,355 | 28,184 | 107,760 | 135,944 |
| Remuneration of directors | - | 35,245 | 35,245 | - | 35,175 | 35,175 |
| Others | 169,891 | 179,137 | 349,028 | 97,966 | 119,803 | 217,769 |
| Total | $ 2,157,452 | $ 7,817,353 | $ 9,974,805 | $ 1,371,787 | $ 4,665,363 | $ 6,037,150 |
| Depreciation | $ 639,559 | $ 501,545 | $ 1,141,104 | $ 353,051 | $ 325,331 | $ 678,382 |
| Amortization | $ 4,085 | $ 67,345 | $ 71,430 | $ 6,914 | $ 52,310 | $ 59,224 |
Note 1: For the year of 2025 and 2024, the Company had average 4,619 and 3,566 employees per month, respectively, which included 5 non-employee directors in 2025 and 2024.
Note 2: Companies whose shares are listed on the Taiwan Stock Exchange or listed on the Taipei Exchange should disclose the following information:
1) Average employee welfare expense in the current year was $2,154 thousand ("Total employee welfare expenses in the current year-Total directors' remuneration"/"Number of employees in the current year-Number of non-employee directors").
Average employee welfare expense in the previous year was $1,685 thousand ("Total employee welfare expenses in the previous year-Total directors' remuneration"/"Number of employees in the previous year-Number of non-employee directors").
2) Average employee salary expenses in the current year was $1,944 thousand (Total salary expenses in the current year/"Number of employees in the current year-Number of non-employee directors").
Average employee salary expenses in the previous year was $1,493 thousand (Total salary expenses in the current year/"Number of employees in the previous year-Number of non-employee directors").
3) Change in adjustments of average employee salary expense was 30.21% ("Average employee salary expenses in the current year-Average employee salary expenses in the previous year"/Average employee salary expenses in the previous year).
4) The Company has established an audit committee, and the remuneration of independent directors has been included in the remuneration of directors.
5) Compensation and Remuneration Policy.
a. Remuneration of directors is paid according to the provision of article 18 of Articles of Incorporation of the Company. According to the compensation and remuneration policy, if the company makes a profit, the distribution of compensation and remuneration of directors shall be no more than 1.5%, and shall be resolved by the compensation committee and the board of directors. The distribution of compensation shall be reported in the shareholders' meeting. However, if the company still has accumulated loss, the Company shall set aside a specific amount of retained earnings to cover the loss and then accrue the compensation and remuneration of directors as mentioned above.
b. The compensation and remuneration of the president and vice president paid by the Company mainly include fixed salary, variable bonuses and other payments. Such compensation package is based on the same industry level determined by the compensation committee and based on the Company's business performance and individual competence of executives. Based on overall performance appraisal, executives are rewarded upon the approval of the board of directors.