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ADLINK — Interim / Quarterly Report 2025
May 14, 2026
52517_rns_2026-05-14_cb02d7d6-8aff-4dcc-acb3-13ee5fa95cca.pdf
Interim / Quarterly Report
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ADLINK Technology Inc. and Subsidiaries
Consolidated Financial Statements for the
Six Months Ended June 30, 2025 and 2024 and
Independent Auditors’ Review 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’ REVIEW REPORT
The Board of Directors and Shareholders
ADLINK Technology Inc.
Introduction
We have reviewed the accompanying consolidated balance sheets of ADLINK Technology Inc. and its subsidiaries (collectively, the “Group”) as of June 30, 2025 and 2024, the related consolidated statements of comprehensive income for the three months ended June 30, 2025 and 2024 and for the six months ended June 30, 2025 and 2024, the consolidated statements of changes in equity and cash flows for the six months then ended, and the related notes to the consolidated financial statements, including material accounting policy information (collectively referred to as the “consolidated financial statements”). Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.
Scope of Review
Except as explained in the following paragraph, we conducted our reviews in accordance with the Standards on Review Engagements of the Republic of China 2410 “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Basis for Qualified Conclusion
As disclosed in Note 11 to the consolidated financial statements, the financial statements of some non-significant subsidiaries included in the consolidated financial statements were not reviewed. As of June 30, 2025 and 2024, the combined total assets of these non-significant subsidiaries were NT$839,552 thousand and NT$875,252 thousand, respectively, both representing 7%, respectively, of the consolidated total assets, and the combined total liabilities of these non-significant subsidiaries were NT$260,320 thousand and NT$257,056 thousand, respectively, both representing 4% of the consolidated total liabilities. The amounts of unreviewed comprehensive (loss) income of these subsidiaries for the three months ended June 30, 2025 and 2024 were NT$(11,372) thousand and NT$(25,596) thousand, respectively, representing 4% and 33%, respectively, of the consolidated total comprehensive income; the amounts of unreviewed comprehensive (loss) income of these subsidiaries for the six months ended June 30, 2025 and 2024 were NT$(26,017) thousand and NT$(45,830) thousand, respectively, representing 11% and 60%, respectively, of the consolidated total comprehensive income. In addition, as disclosed in Note 12 to the consolidated financial statements, the carrying amounts of investments accounted for using the equity method
NT$36,378 thousand and NT$116,495 thousand, respectively; the related shares of comprehensive loss of associates for the three months ended June 30, 2025 and 2024 were NT$10,863 thousand and NT$22,045 thousand, respectively; the related shares of comprehensive loss of the associates for the six months ended June 30, 2025 and 2024 were NT$24,911 thousand and NT$30,000 thousand, respectively. The amounts of these investments were calculated and disclosed on the basis of the unreviewed financial statements of the investees as of and for the same reporting periods as those of the Company. Further, as disclosed in Note 32 to the consolidated financial statements, other information on the Company's non-significant subsidiaries and other investees accounted for using the equity method was disclosed on the basis of the unreviewed financial statements as of and for the same reporting periods as those of the Company.
Qualified Conclusion
Based on our reviews, with the exception of the matter described in the preceding paragraph, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as of June 30, 2025 and 2024, its consolidated financial performance for the three months ended June 30, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the six months ended June 30, 2025 and 2024 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 "Interim Financial Reporting" endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.
The engagement partners on the reviews resulting in this independent auditors' review report are Chien-Liang Liu and Yi-Wen Wang.
Deloitte & Touche
Taipei, Taiwan
Republic of China
August 6, 2025
Notice to Readers
The accompanying consolidated financial statements are intended only to present the consolidated 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 review such consolidated financial statements are those generally applied in the Republic of China.
For the convenience of readers, the independent auditors' review report and the accompanying consolidated 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' review report and consolidated financial statements shall prevail.
ADLINK TECHNOLOGY INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Thousands of New Taiwan Dollars)
| June 30, 2025 | December 31, 2024 | June 30, 2024 | ||||
|---|---|---|---|---|---|---|
| ASSETS | Amount | % | Amount | % | Amount | % |
| CURRENT ASSETS | ||||||
| Cash and cash equivalents (Note 6) | $ 1,710,000 | 14 | $ 2,055,474 | 16 | $ 1,980,970 | 16 |
| Financial assets at fair value through profit or loss (Note 7) | 3,373 | - | - | - | 140 | - |
| Financial assets at amortized cost | 26,886 | - | 41,724 | - | 34,194 | - |
| Notes receivable (Note 9) | 46,061 | - | 48,253 | - | 26,550 | - |
| Trade receivables (Note 9) | 2,148,914 | 18 | 2,248,555 | 18 | 1,766,273 | 14 |
| Trade receivables from related parties (Note 28) | 30,230 | - | 61,180 | 1 | 54,582 | 1 |
| Other receivables (Note 28) | 101,864 | 1 | 87,346 | 1 | 95,159 | 1 |
| Current tax assets | 1,523 | - | 3,656 | - | 3,513 | - |
| Inventories (Note 10) | 2,716,029 | 22 | 2,568,407 | 20 | 2,836,703 | 23 |
| Prepayments (Note 28) | 292,935 | 2 | 111,715 | 1 | 103,482 | 1 |
| Other current assets | 3,781 | - | 7,862 | - | 3,472 | - |
| Total current assets | 7,081,596 | 57 | 7,234,172 | 57 | 6,905,038 | 56 |
| NON-CURRENT ASSETS | ||||||
| Financial assets at fair value through other comprehensive income (Note 8) | 95,368 | 1 | 89,958 | 1 | 82,267 | 1 |
| Investments accounted for using the equity method (Note 12) | 36,378 | - | 82,517 | 1 | 116,495 | 1 |
| Property, plant and equipment (Notes 13, 28 and 29) | 4,009,741 | 33 | 4,164,344 | 33 | 4,208,292 | 34 |
| Right-of-use assets (Note 14) | 143,639 | 1 | 166,053 | 1 | 137,578 | 1 |
| Investment properties (Notes 15 and 29) | 226,532 | 2 | 229,008 | 2 | 231,485 | 2 |
| Intangible assets (Notes 16 and 28) | 309,276 | 3 | 341,229 | 3 | 358,191 | 3 |
| Deferred tax assets | 397,657 | 3 | 305,314 | 2 | 326,522 | 2 |
| Prepayments for equipment | 3,630 | - | 1,921 | - | 4,488 | - |
| Refundable deposits | 30,248 | - | 31,535 | - | 31,088 | - |
| Other non-current assets | 953 | - | 1,681 | - | 1,886 | - |
| Total non-current assets | 5,253,422 | 43 | 5,413,560 | 43 | 5,498,292 | 44 |
| TOTAL | $ 12,335,018 | 100 | $ 12,647,732 | 100 | $ 12,403,330 | 100 |
| LIABILITIES AND EQUITY | ||||||
| CURRENT LIABILITIES | ||||||
| Short-term borrowings (Note 17) | $ 1,410,936 | 11 | $ 1,087,222 | 9 | $ 1,432,667 | 12 |
| Financial liabilities at fair value through profit or loss (Note 7) | 4,245 | - | 1,518 | - | 1,449 | - |
| Contract liabilities (Note 21) | 161,384 | 1 | 196,558 | 1 | 200,525 | 2 |
| Trade payables (Note 18) | 1,691,681 | 14 | 1,612,390 | 13 | 1,125,422 | 9 |
| Trade payables to related parties (Note 28) | 6,411 | - | 14,362 | - | 23,925 | - |
| Other payables (Notes 19 and 28) | 853,156 | 7 | 825,403 | 6 | 919,359 | 7 |
| Current tax liabilities | 91,085 | 1 | 84,830 | 1 | 51,264 | - |
| Provisions | 62,968 | 1 | 74,027 | 1 | 82,345 | 1 |
| Lease liabilities (Note 14) | 37,314 | - | 39,751 | - | 38,162 | - |
| Current portion of long-term borrowings (Note 17) | 547,181 | 4 | 483,149 | 4 | 489,252 | 4 |
| Other current liabilities | 88,661 | 1 | 96,537 | 1 | 102,573 | 1 |
| Total current liabilities | 4,955,022 | 40 | 4,515,747 | 36 | 4,466,943 | 36 |
| NON-CURRENT LIABILITIES | ||||||
| Long-term borrowings (Note 17) | 2,274,717 | 19 | 2,575,178 | 20 | 2,635,884 | 21 |
| Provisions | 38,063 | - | 36,913 | - | 36,395 | - |
| Deferred tax liabilities | 6,347 | - | 12,281 | - | 15,940 | - |
| Lease liabilities (Note 14) | 70,570 | 1 | 83,635 | 1 | 55,145 | 1 |
| Net defined benefit liabilities | 16,402 | - | 16,534 | - | 23,807 | - |
| Total non-current liabilities | 2,406,099 | 20 | 2,724,541 | 21 | 2,767,171 | 22 |
| Total liabilities | 7,361,121 | 60 | 7,240,288 | 57 | 7,234,114 | 58 |
| EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Note 20) | ||||||
| Ordinary shares | 2,174,973 | 18 | 2,174,973 | 17 | 2,174,973 | 17 |
| Capital surplus | 1,290,551 | 10 | 1,290,107 | 11 | 1,303,830 | 10 |
| Retained earnings | ||||||
| Legal reserve | 788,269 | 6 | 782,098 | 6 | 782,098 | 7 |
| Special reserve | 8,808 | - | 156,153 | 1 | 156,153 | 1 |
| Unappropriated earnings | 971,918 | 8 | 982,654 | 8 | 753,825 | 6 |
| Total retained earnings | 1,768,995 | 14 | 1,920,905 | 15 | 1,692,076 | 14 |
| Other equity | (279,790) | (2) | (8,808) | - | (44,729) | - |
| Total equity attributable to owners of the Company | 4,954,729 | 40 | 5,377,177 | 43 | 5,126,150 | 41 |
| NON-CONTROLLING INTERESTS | 19,168 | - | 30,267 | - | 43,066 | 1 |
| Total equity | 4,973,897 | 40 | 5,407,444 | 43 | 5,169,216 | 42 |
| TOTAL | $ 12,335,018 | 100 | $ 12,647,732 | 100 | $ 12,403,330 | 100 |
The accompanying notes are an integral part of the consolidated financial statements.
(With Deloitte & Touche review report dated August 6, 2025)
ADLINK TECHNOLOGY INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In Thousands of New Taiwan Dollars, Except Earnings (Loss) Per Share)
| For the Three Months Ended June 30 | For the Six Months Ended June 30 | |||||||
|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |||||
| Amount | % | Amount | % | Amount | % | Amount | % | |
| OPERATING REVENUE | ||||||||
| (Notes 21 and 28) | $ 2,926,638 | 100 | $ 2,521,618 | 100 | $ 5,601,825 | 100 | $ 4,575,346 | 100 |
| OPERATING COSTS (Notes 10, 22 and 28) | 1,905,710 | 65 | 1,589,988 | 63 | 3,658,296 | 65 | 2,855,189 | 63 |
| GROSS PROFIT | 1,020,928 | 35 | 931,630 | 37 | 1,943,529 | 35 | 1,720,157 | 37 |
| UNREALIZED LOSS (GAIN) | ||||||||
| ON TRANSACTIONS WITH | ||||||||
| ASSOCIATES | - | - | 779 | - | - | - | (1,176) | - |
| REALIZED GAIN (LOSS) ON | ||||||||
| TRANSACTIONS WITH | ||||||||
| ASSOCIATES | - | - | - | - | 763 | - | - | - |
| REALIZED GROSS PROFIT | 1,020,928 | 35 | 932,409 | 37 | 1,944,292 | 35 | 1,718,981 | 37 |
| OPERATING EXPENSES | ||||||||
| (Notes 22 and 28) | ||||||||
| Selling and marketing | 242,958 | 9 | 287,499 | 11 | 494,187 | 9 | 545,770 | 12 |
| General and administrative | 207,388 | 7 | 231,452 | 9 | 421,237 | 8 | 448,841 | 10 |
| Research and development | 412,433 | 14 | 428,705 | 17 | 839,600 | 15 | 852,029 | 18 |
| Expected credit (gain) loss | (568) | - | (10,876) | - | 822 | - | (1,553) | - |
| Total operating expenses | 862,211 | 30 | 936,780 | 37 | 1,755,846 | 32 | 1,845,087 | 40 |
| PROFIT (LOSS) FROM | ||||||||
| OPERATIONS | 158,717 | 5 | (4,371) | - | 188,446 | 3 | (126,106) | (3) |
| NON-OPERATING INCOME | ||||||||
| AND EXPENSES (Notes 22 and 28) | ||||||||
| Interest income | 5,674 | - | 7,002 | - | 10,660 | - | 10,390 | - |
| Other income | 38,908 | 1 | 45,361 | 2 | 84,350 | 1 | 72,517 | 2 |
| Other gains and losses | (181,940) | (6) | (116,554) | (5) | (138,094) | (2) | (112,777) | (2) |
| Finance costs | (23,407) | (1) | (25,207) | (1) | (47,348) | (1) | (50,704) | (1) |
| Share of loss of associates | ||||||||
| (Note 12) | (10,863) | - | (22,045) | (1) | (24,911) | - | (30,000) | (1) |
| Total non-operating | ||||||||
| income and expenses | (171,628) | (6) | (111,443) | (5) | (115,343) | (2) | (110,574) | (2) |
| PROFIT (LOSS) BEFORE | ||||||||
| INCOME TAX | (12,911) | (1) | (115,814) | (5) | 73,103 | 1 | (236,680) | (5) |
| INCOME TAX EXPENSE | ||||||||
| (BENEFIT) (Note 23) | 6,500 | - | (14,806) | (1) | 32,098 | - | (45,968) | (1) |
| NET PROFIT (LOSS) FOR THE | ||||||||
| PERIOD | (19,411) | (1) | (101,008) | (4) | 41,005 | 1 | (190,712) | (4) |
(Continued)
ADLINK TECHNOLOGY INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In Thousands of New Taiwan Dollars, Except Earnings (Loss) Per Share)
| For the Three Months Ended June 30 | For the Six Months Ended June 30 | |||||||
|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |||||
| Amount | % | Amount | % | Amount | % | Amount | % | |
| OTHER COMPREHENSIVE (LOSS) INCOME | ||||||||
| Items that may be reclassified subsequently to profit or loss: | ||||||||
| Exchange differences on translation of the financial statements of foreign operations (Note 20) | $ (360,505) | (12) | $ 28,599 | 1 | $ (339,864) | (6) | $ 142,254 | 3 |
| Income tax related to items that may be reclassified subsequently to profit or loss (Notes 20 and 23) | 71,689 | 2 | (5,522) | - | 67,745 | 1 | (27,856) | (1) |
| Other comprehensive (loss) income for the period, net of income tax | (288,816) | (10) | 23,077 | 1 | (272,119) | (5) | 114,398 | 2 |
| TOTAL COMPREHENSIVE LOSS FOR THE PERIOD | $ (308,227) | (11) | $ (77,931) | (3) | $ (231,114) | (4) | $ (76,314) | (2) |
| NET PROFIT (LOSS) ATTRIBUTABLE TO: | ||||||||
| Owners of the Company | $ (16,830) | (1) | $ (90,019) | (4) | $ 50,967 | 1 | $ (167,126) | (4) |
| Non-controlling interests | (2,581) | - | (10,989) | - | (9,962) | - | (23,586) | - |
| $ (19,411) | (1) | $ (101,008) | (4) | $ 41,005 | 1 | $ (190,712) | (4) | |
| TOTAL COMPREHENSIVE LOSS ATTRIBUTABLE TO: | ||||||||
| Owners of the Company | $ (303,586) | (11) | $ (67,928) | (3) | $ (220,015) | (4) | $ (55,702) | (1) |
| Non-controlling interests | (4,641) | - | (10,003) | - | (11,099) | - | (20,612) | (1) |
| $ (308,227) | (11) | $ (77,931) | (3) | $ (231,114) | (4) | $ (76,314) | (2) | |
| EARNINGS (LOSS) PER SHARE (Note 24) | ||||||||
| Basic | $ (0.08) | $ (0.41) | $ 0.23 | $ (0.77) | ||||
| Diluted | $ (0.08) | $ (0.41) | $ 0.23 | $ (0.77) |
The accompanying notes are an integral part of the consolidated financial statements.
(With Deloitte & Touche review report dated August 6, 2025)
(Concluded)
ADLINK TECHNOLOGY INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(In Thousands of New Taiwan Dollars)
| Equity Attributable to Owners of the Company | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Ordinary Shares | Capital Surplus | Retained Earnings | Exchange Differences on Translation of the Financial Statements of Foreign Operations | Other Equity Unrealized Valuation Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income | Total Other Equity | Total Equity Attributable to Owners of the Company | Non-controlling Interests | Total Equity | ||||
| Legal Reserve | Special Reserve | Unappropriated Earnings | Total Retained Earnings | |||||||||
| BALANCE AT JANUARY 1, 2024 | $ 2,174,973 | $ 1,298,616 | $ 748,708 | $ 147,309 | $ 1,180,683 | $ 2,076,700 | $ (163,734) | $ 7,581 | $ (156,153) | $ 5,394,136 | $ 63,678 | $ 5,457,814 |
| Appropriation of 2023 earnings | ||||||||||||
| Legal reserve | - | - | 33,390 | - | (33,390) | - | - | - | - | - | - | - |
| Special reserve | - | - | - | 8,844 | (8,844) | - | - | - | - | - | - | - |
| Cash dividend - NT$1.0 per share | - | - | - | - | (217,498) | (217,498) | - | - | - | (217,498) | - | (217,498) |
| Compensation costs of share-based payments recognized by the Company | - | 5,214 | - | - | - | - | - | - | - | 5,214 | - | 5,214 |
| Net loss for the six months ended June 30, 2024 | - | - | - | - | (167,126) | (167,126) | - | - | - | (167,126) | (23,586) | (190,712) |
| Other comprehensive income for the six months ended June 30, 2024, net of income tax | - | - | - | - | - | - | 111,424 | - | 111,424 | 111,424 | 2,974 | 114,398 |
| Total comprehensive income (loss) for the six months ended June 30, 2024 | - | - | - | - | (167,126) | (167,126) | 111,424 | - | 111,424 | (55,702) | (20,612) | (76,314) |
| BALANCE AT JUNE 30, 2024 | $ 2,174,973 | $ 1,303,830 | $ 782,098 | $ 156,153 | $ 753,825 | $ 1,692,076 | $ (52,310) | $ 7,581 | $ (44,729) | $ 5,126,150 | $ 43,066 | $ 5,169,216 |
| BALANCE AT JANUARY 1, 2025 | $ 2,174,973 | $ 1,290,107 | $ 782,098 | $ 156,153 | $ 982,654 | $ 1,920,905 | $ (23,858) | $ 15,050 | $ (8,808) | $ 5,377,177 | $ 30,267 | $ 5,407,444 |
| Appropriation of 2024 earnings | ||||||||||||
| Legal reserve | - | - | 6,171 | - | (6,171) | - | - | - | - | - | - | - |
| Reversal of special reserve | - | - | - | (147,345) | 147,345 | - | - | - | - | - | - | - |
| Cash dividend - NT$0.93 per share | - | - | - | - | (202,877) | (202,877) | - | - | - | (202,877) | - | (202,877) |
| Compensation costs of share-based payments recognized by the Company | - | 17,776 | - | - | - | - | - | - | - | 17,776 | - | 17,776 |
| Changes in capital surplus from investments in associates for using the equity method | - | (17,332) | - | - | - | - | - | - | - | (17,332) | - | (17,332) |
| Net profit (loss) for the six months ended June 30, 2025 | - | - | - | - | 50,967 | 50,967 | - | - | - | 50,967 | (9,962) | 41,005 |
| Other comprehensive income (loss) for the six months ended June 30, 2025, net of income tax | - | - | - | - | - | - | (270,982) | - | (270,982) | (270,982) | (1,137) | (272,119) |
| Total comprehensive income (loss) for the six months ended June 30, 2025 | - | - | - | - | 50,967 | 50,967 | (270,982) | - | (270,982) | (220,015) | (11,099) | (231,114) |
| BALANCE AT JUNE 30, 2025 | $ 2,174,973 | $ 1,290,551 | $ 788,269 | $ 8,808 | $ 971,918 | $ 1,768,995 | $ (294,840) | $ 15,050 | $ (279,790) | $ 4,954,729 | $ 19,168 | $ 4,973,897 |
The accompanying notes are an integral part of the consolidated financial statements.
(With Deloitte & Touche review report dated August 6, 2025)
ADLINK TECHNOLOGY INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands of New Taiwan Dollars)
| For the Six Months Ended June 30 | ||
|---|---|---|
| 2025 | 2024 | |
| CASH FLOWS FROM OPERATING ACTIVITIES | ||
| Income (loss) before income tax | $ 73,103 | $ (236,680) |
| Adjustments for: | ||
| Depreciation expenses | 117,691 | 123,982 |
| Amortization expenses | 40,213 | 41,032 |
| Expected credit loss (gain) recognized on trade receivables | 822 | (1,553) |
| Net (gain) loss on fair value changes of financial assets and liabilities at fair value through profit or loss | (646) | 6,835 |
| Finance costs | 47,348 | 50,704 |
| Interest income | (10,660) | (10,390) |
| Compensation costs of share-based payments | 17,776 | 5,214 |
| Share of loss of associates accounted for using the equity method | 24,911 | 30,000 |
| Loss (gain) on disposal of property, plant and equipment | 4 | (22) |
| Net loss on disposal of intangible assets | 13 | - |
| Loss on disposal of investments accounted for using equity method | 158 | - |
| Write-downs of inventories | 42,670 | 4,180 |
| Unrealized gain on the transactions with associates | - | 1,176 |
| Realized gain on the transactions with associates | (763) | - |
| Net loss (gain) on foreign currency exchange | 25,788 | (88,658) |
| Gain on lease modifications | (56) | (108) |
| Loss on compensation | - | 116,038 |
| Changes in operating assets and liabilities | ||
| Notes receivable | 2,192 | 25,407 |
| Trade receivables | (106,700) | 577,915 |
| Trade receivables from related parties | 27,132 | (16,203) |
| Other receivables | (14,530) | (21,768) |
| Inventories | (178,682) | 312,239 |
| Prepayments | (186,686) | (43,964) |
| Other current assets | 4,081 | 30,247 |
| Other non-current assets | 728 | 604 |
| Contract liabilities | (35,174) | (48,662) |
| Trade payables | 180,410 | (157,679) |
| Trade payables to related parties | (6,719) | 10,176 |
| Other payables | (169,490) | (177,132) |
| Provisions | (9,909) | (176) |
| Other current liabilities | (7,876) | 8,671 |
| Net defined benefit liabilities | (132) | (279) |
| Cash (used in) generated from operations | (122,983) | 541,146 |
| Interest received | 10,660 | 10,390 |
| Interest paid | (48,169) | (50,762) |
| Income tax paid | (54,242) | (68,419) |
| Net cash (used in) generated from operating activities | (214,734) | 432,355 |
(Continued)
ADLINK TECHNOLOGY INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands of New Taiwan Dollars)
| For the Six Months Ended June 30 | ||
|---|---|---|
| 2025 | 2024 | |
| CASH FLOWS FROM INVESTING ACTIVITIES | ||
| Purchase of financial assets at amortized cost | $ - | $ (8,293) |
| Proceeds from sale of financial assets at amortized cost | 13,149 | 8,000 |
| Proceeds from sale of financial assets at fair value through profit or loss | - | 3,235 |
| Acquisition of investments accounted for using the equity method | (11,879) | (12,688) |
| Payments for property, plant and equipment | (37,556) | (36,816) |
| Proceeds from disposal of property, plant and equipment | 41 | 63 |
| Decrease (increase) in refundable deposits | 1,287 | (2,376) |
| Payments for intangible assets | (23,227) | (48,396) |
| Increase in prepayments for equipment | (4,314) | (4,440) |
| Net cash used in investing activities | (62,499) | (101,711) |
| CASH FLOWS FROM FINANCING ACTIVITIES | ||
| Proceeds from short-term borrowings | 2,024,076 | 1,591,489 |
| Repayments of short-term borrowings | (1,693,541) | (1,621,433) |
| Repayments of long-term borrowings | (236,429) | (189,388) |
| Repayment of the principal portion of lease liabilities | (21,517) | (20,572) |
| Net cash generated from (used in) financing activities | 72,589 | (239,904) |
| EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH AND CASH EQUIVALENTS HELD IN FOREIGN CURRENCIES | (140,830) | 48,483 |
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (345,474) | 139,223 |
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | 2,055,474 | 1,841,747 |
| CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | $ 1,710,000 | $ 1,980,970 |
The accompanying notes are an integral part of the consolidated financial statements.
(With Deloitte & Touche review report dated August 6, 2025) (Concluded)
ADLINK TECHNOLOGY INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)
1. GENERAL INFORMATION
ADLINK Technology Inc. (the "Company") was incorporated in the Republic of China (ROC) in August 1995. The Company mainly manufactures and sells hardware, software and peripheral devices of industrial computers.
The Company's shares were previously listed on the Taipei Exchange (TPEx) Mainboard from March 2002 until it became listed on the Taiwan Stock Exchange (TWSE) in November 2004.
AUO Corp held 32.84% of the voting rights on the Company as the largest and single shareholder of the Company. In June 2025, AUO Corp. participated in the Company's regular shareholders' meeting and obtained three directors and had the power to appoint Chairman of the Board of the board of directors after resolving the re-election of directors. AUO Corp. determined that they obtained control in substance over the Company and became the Company's parent company.
The consolidated financial statements of the Company and its subsidiaries, collectively referred to as the "Group", are presented in the Company's functional currency, the New Taiwan dollar.
2. APPROVAL OF FINANCIAL STATEMENTS
The consolidated financial statements were approved by the Company's board of directors on August 6, 2025.
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)
The initial application of the Amendments to IAS 21 "Lack of Exchangeability" did not have a material impact on the Group'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” | January 1, 2023 |
| (Continued) |
New, Amended and Revised Standards and Interpretations
Effective Date Announced by IASB
Amendments to IFRS 17
Amendments to IFRS 17 “Initial Application of IFRS 17 and IFRS 9 - Comparative Information”
January 1, 2023
January 1, 2023
(Concluded)
As of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the possible impact of the application of the above amendments on the Group’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) |
|---|---|
| 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 |
| IFRS 19 “Subsidiaries without Public Accountability: Disclosures” | January 1, 2027 |
Note: Unless stated otherwise, the above IFRS Accounting Standards are effective for annual reporting periods beginning on or after their respective effective dates.
IFRS 18 “Presentation and Disclosure in Financial Statements”
IFRS 18 will supersede IAS 1 “Presentation of Financial Statements”. The main changes comprise:
- Items of income and expenses included in the statement of profit or loss shall be classified into the operating, investing, financing, income taxes and discontinued operations categories.
- The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.
- Provides guidance to enhance the requirements of aggregation and disaggregation: The Group shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Group shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Group labels items as “other” only if it cannot find a more informative label.
- Disclosures on Management-defined Performance Measures (MPMs): When in public communications outside financial statements and communicating to users of financial statements management’s view of an aspect of the financial performance of the Group as a whole, the Group shall disclose related information about its MPMs in a single note to the financial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards and the income tax and non-controlling interests effects of related reconciliation items.
Except for the above impact, as of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the other impacts of the above amended standards and interpretations on the Group’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.
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4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION
a. Statement of compliance
The interim consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34 “Interim Financial Reporting” as endorsed and issued into effect by the FSC. Disclosure information included in the interim consolidated financial statements is less than the disclosure information required in a complete set of annual consolidated financial statements.
b. Basis of preparation
The consolidated financial statements have been prepared on the historical cost basis except for financial instruments measured at fair value and net defined benefit liabilities which 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.
c. Basis of consolidation
The basis of preparing the interim consolidated financial statements is consistent with the consolidated financial statements for the year ended December 31, 2024.
See Note 11 and Tables 7 and 8 for the detailed information on subsidiaries (including percentages of ownership and main businesses).
d. Other material accounting policies
Except for the following, please refer to the consolidated financial statements for the year ended December 31, 2024.
1) Retirement benefits
Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant plan amendments, settlements, or other significant one-off events.
2) Other long-term employee benefits
Other long-term employee benefits are accounted for in the same way as the accounting required for defined benefit plans except that remeasurement is recognized in profit or loss.
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3) Income tax expense
Income tax expense represents the sum of the tax currently payable and deferred tax. Interim period income taxes are assessed on an annual basis and calculated by applying to an interim period’s pre-tax income the tax rate that would be applicable to expected total annual earnings.
- MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
In the application of the Group’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.
When developing material accounting estimates, the Group considers the possible impact on the cash flow projections, growth rate, discount rate, profitability and other relevant material estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.
Based on the assessment of the Group’s management, the accounting policies, estimates, and assumptions adopted by the Group have not been subject to material accounting judgments, estimates and assumptions uncertainty.
- CASH AND CASH EQUIVALENTS
| June 30, 2025 | December 31, 2024 | June 30, 2024 | |
|---|---|---|---|
| Cash on hand | $ 161 | $ 313 | $ 163 |
| Checking accounts and demand deposits | 1,707,056 | 1,955,774 | 1,968,077 |
| Cash equivalents | |||
| Time deposits with original maturities of 3 months | - | 98,355 | - |
| Third-party paying accounts | 2,783 | 1,032 | 12,730 |
| $ 1,710,000 | $ 2,055,474 | $ 1,980,970 |
- FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS
| June 30, 2025 | December 31, 2024 | June 30, 2024 | |
|---|---|---|---|
| Financial assets mandatorily classified as at FVTPL | |||
| Derivative instruments | |||
| Foreign exchange forward contracts not under hedge accounting | $ 3,373 | $ - | $ 140 |
| Financial liabilities held for trading | |||
| Derivative instruments | |||
| Foreign exchange forward contracts not under hedge accounting | $ 4,245 | $ 1,518 | $ 1,449 |
At the end of the reporting period, outstanding foreign exchange forward contracts not under hedge accounting were as follows:
June 30, 2025
| Currency | Maturity Date | Notional Amount (In Thousands) | |
|---|---|---|---|
| Sell | USD/NTD | July to September 2025 | USD14,400/NTD422,557 |
| December 31, 2024 | |||
| Currency | Maturity Date | Notional Amount (In Thousands) | |
| Sell | USD/NTD | January to February 2025 | USD5,500/NTD178,620 |
| June 30, 2024 | |||
| Currency | Maturity Date | Notional Amount (In Thousands) | |
| Sell | CNY/NTD | July to August 2024 | CNY18,000/NTD79,435 |
| Sell | USD/NTD | August to September 2024 | USD5,600/NTD180,104 |
The Group entered into foreign exchange forward contracts to manage exposures to exchange rate fluctuations of foreign currency denominated assets and liabilities. Therefore, the Group elected not to be accounted for using hedge accounting.
Refer to Table 3 for information relating to the equity instruments held by the Group were classified as financial assets at FVTPL as of June 30, 2025.
8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME
| June 30, 2025 | December 31, 2024 | June 30, 2024 | |
|---|---|---|---|
| Investments in foreign equity instruments | |||
| Unlisted ordinary shares | $ 95,368 | $ 89,958 | $ 82,267 |
Investments in foreign equity instruments, including ordinary shares and convertible preference shares, are not held for trading. Instead, they are held for medium to long-term strategic purposes. 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 Group's strategy of holding these investments for long-term purposes.
Refer to Table 3 for information relating to the foreign equity instruments held by the Group were classified as financial assets at FVTOCI on June 30, 2025.
9. NOTES RECEIVABLE AND TRADE RECEIVABLES
| June 30, 2025 | December 31, 2024 | June 30, 2024 | |
|---|---|---|---|
| Notes receivable | |||
| Gross carrying amount at amortized cost | $ 46,061 | $ 48,253 | $ 26,550 |
| Less: Allowance for impairment loss | - | - | - |
| $ 46,061 | $ 48,253 | $ 26,550 | |
| Trade receivables | |||
| Gross carrying amount at amortized cost | $ 2,167,567 | $ 2,267,839 | $ 1,786,028 |
| Less: Allowance for impairment loss | (18,653) | (19,284) | (19,755) |
| $ 2,148,914 | $ 2,248,555 | $ 1,766,273 |
The average credit period of sales of goods is 30 to 90 days. In order to minimize credit risk, the management of the Group has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Group reviews the recoverable amount of each individual trade debt at the end of the reporting period to ensure that adequate allowance is made for possible irrecoverable amounts. In this regard, the management believes the Group's credit risk was significantly reduced.
The Group applies the simplified approach to providing for expected credit losses prescribed by IFRS 9, which permits the use of lifetime expected loss provision for all trade receivables. The expected credit losses on trade receivables are estimated using a provision matrix approach considering the past default experience of the debtor and an analysis of the debtor's current financial position, adjusted for general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of economic conditions at the reporting date. As the Group'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 Group's different customer base.
The Group writes off a trade receivable when there is information 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, or when the trade receivables are over certain days past due, whichever occurs earlier. For trade receivables that have been written off, the Group 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 Group's provision matrix.
June 30, 2025
| Not Past Due | Less than 30 Days | 31 to 90 Days | Over 91 Days | Total | |
|---|---|---|---|---|---|
| Gross carrying amount | $ 1,814,530 | $ 248,381 | $ 63,584 | $ 41,072 | $ 2,167,567 |
| Loss allowance | - | - | (9,513) | (9,140) | (18,653) |
| Amortized cost | $ 1,814,530 | $ 248,381 | $ 54,071 | $ 31,932 | $ 2,148,914 |
December 31, 2024
| Not Past Due | Less than 30 Days | 31 to 90 Days | Over 91 Days | Total | |
|---|---|---|---|---|---|
| Gross carrying amount | $ 1,922,593 | $ 243,092 | $ 55,130 | $ 47,024 | $ 2,267,839 |
| Loss allowance | - | (869) | (11,198) | (7,217) | (19,284) |
| Amortized cost | $ 1,922,593 | $ 242,223 | $ 43,932 | $ 39,807 | $ 2,248,555 |
June 30, 2024
| Not Past Due | Less than 30 Days | 31 to 90 Days | Over 91 Days | Total | |
|---|---|---|---|---|---|
| Gross carrying amount | $ 1,461,149 | $ 160,844 | $ 32,904 | $ 131,131 | $ 1,786,028 |
| Loss allowance | - | - | (9,892) | (9,863) | (19,755) |
| Amortized cost | $ 1,461,149 | $ 160,844 | $ 23,012 | $ 121,268 | $ 1,766,273 |
The movements of the loss allowance of trade receivables were as follows:
| For the Six Months Ended June 30 | ||
|---|---|---|
| 2025 | 2024 | |
| Balance at January 1 | $ 19,284 | $ 20,853 |
| Add: Net remeasurement of loss allowance | 822 | - |
| Less: Net reversal of loss allowance | - | (1,553) |
| Less: Amounts written off | (280) | - |
| Foreign exchange gains and losses | (1,173) | 455 |
| Balance at June 30 | $ 18,653 | $ 19,755 |
10. INVENTORIES
| June 30, 2025 | December 31, 2024 | June 30, 2024 | |
|---|---|---|---|
| Raw materials and supplies | $ 1,347,095 | $ 1,509,592 | $ 1,661,208 |
| Work in progress | 388,333 | 270,625 | 278,935 |
| Finished goods | 871,794 | 562,286 | 802,663 |
| Merchandise | 108,807 | 225,904 | 93,897 |
| $ 2,716,029 | $ 2,568,407 | $ 2,836,703 |
The cost of inventories recognized as cost of goods sold for the three months ended June 30, 2025 and for the six months ended June 30, 2025 included inventory write-downs of $14,210 thousand and $42,670 thousand, respectively, and unallocated manufacturing expenses of $43,081 thousand and $86,109 thousand, respectively.
The cost of inventories recognized as cost of goods sold for the three months ended June 30, 2024 and for the six months ended June 30, 2024 included inventory write-downs of $6,299 thousand and $4,180 thousand, respectively, and unallocated manufacturing expenses of $43,276 thousand and $87,939 thousand, respectively.
11. SUBSIDIARIES
a. Subsidiaries included in consolidated financial statements
| Investor | Investee | Main Business | % of Ownership | Remark | ||
|---|---|---|---|---|---|---|
| June 30, 2025 | December 31, 2024 | June 30, 2024 | ||||
| The Company | ADLINK Technology Singapore Pte Ltd. | Selling of industrial computers and investment activities | 100.0 | 100.0 | 100.0 | Note 1 |
| The Company | ADLINK Technology Japan Corporation | Selling of industrial computers | 100.0 | 100.0 | 100.0 | Note 1 |
| The Company | ADLINK Technology Korea Ltd. | Selling of industrial computers | 100.0 | 100.0 | 100.0 | Note 1 |
| The Company | ADLINK International Co., Ltd. | Investment activities | 100.0 | 100.0 | 100.0 | - |
| The Company | Zettascale Technology Cayman Limited | Investment activities | 100.0 | 100.0 | 100.0 | Note 1 |
| The Company | ADLINK Edge Computing Limited | Software development, authorization and service | 100.0 | 100.0 | 100.0 | Note 1 |
| The Company | Autonomous Mobility Ltd | Investment activities | - | - | 100.0 | Notes 1 and 5 |
| ADLINK Technology Singapore Pte Ltd. | ADLINK Technology India Private Limited | Selling of industrial computers | 100.0 | 100.0 | 100.0 | Notes 1 and 2 |
| ADLINK Technology Singapore Pte Ltd. | ADLINK Intelligence Technology Co., Limited | Investment activities | 100.0 | 100.0 | 100.0 | Notes 1 and 4 |
| ADLINK Intelligence Technology Co., Limited | Shanghai ADLINK Intelligence Technology Co., Ltd. | Selling of industrial computers | 100.0 | 100.0 | 100.0 | Notes 3 and 4 |
| ADLINK International Co., Ltd. | Ampro ADLINK Technology Inc | Manufacturing and selling of industrial computers | 100.0 | 100.0 | 100.0 | - |
| ADLINK International Co., Ltd. | ADLINK Technology Holding GmbH | Investment activities | 100.0 | 100.0 | 100.0 | - |
| ADLINK International Co., Ltd. | ADLINK Technology (HK) Co., Ltd. | Investment activities | 100.0 | 100.0 | 100.0 | - |
| Zettascale Technology Cayman Limited | Zettascale Technology Limited | Software development, authorization and service | 69.5 | 69.5 | 69.5 | Note 1 |
| ADLINK Technology Holding GmbH | ADLINK Technology GmbH | Manufacturing and selling of industrial computers | 100.0 | 100.0 | 100.0 | - |
| Ampro ADLINK Technology Inc. | ADLINK Technology Corporation | Software authorization and service | 100.0 | 100.0 | 100.0 | Note 1 |
| Zettascale Technology Limited | Zettascale Technology SARL | Software development, authorization and service | 100.0 | 100.0 | 100.0 | Note 1 |
| Zettascale Technology Limited | Zettascale Technology B.V | Software development | 100.0 | 100.0 | 100.0 | Note 1 |
| ADLINK Technology (HK) Co., Ltd. | ADLINK Technology (China) Co., Ltd. | Manufacturing and selling of industrial computers | 100.0 | 100.0 | 100.0 | - |
| ADLINK Technology (China) Co., Ltd. | Dongguan Lingyao Electronic Technology Co., Ltd | Manufacturing and selling of electronic parts | 100.0 | 100.0 | 100.0 | Note 1 |
Note 1: The company is an immaterial subsidiary; its financial statements have not been reviewed.
Note 2: In order to expand and build a closer partnership with foreign clients, the Group established ADLINK Technology India Private Limited in January 2024.
Note 3: In order to collaborate with partnership in China and develop an innovative and competitive business model on the existing foundation sustainably, the Group established Shanghai ADLINK Intelligence Technology Co., Ltd. through ADLINK Technology Singapore Pte Ltd. in March 2024.
Note 4: In order to develop an innovative and competitive business model in the Chinese market on the existing foundation sustainably, the Group established ADLINK Intelligence Technology Co., Limited through ADLINK Technology Singapore Pte Ltd. and transferred the ownership of Shanghai ADLINK Intelligence Technology Co., Ltd. from ADLINK Technology Singapore Pte Ltd. to ADLINK Intelligence Technology Co., Limited in May 2024.
Note 5: The liquidation of Autonomous Mobility Ltd. was completed in September 2024.
b. Subsidiaries excluded from the consolidated financial statements: None.
c. Subsidiaries that have material non-controlling interests: None.
12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD
| Associates That Are Not Individually Material | June 30, 2025 | December 31, 2024 | June 30, 2024 | |||
|---|---|---|---|---|---|---|
| Amount | % of Ownership | Amount | % of Ownership | Amount | % of Ownership | |
| JY Technology (Shanghai) | $ - | - | $ 36,466 | 18.15 | $ 62,474 | 20.56 |
| JY Technology (Korea) | 1,638 | 28.16 | 2,106 | 28.16 | 3,896 | 28.16 |
| Farobot Technology Ltd. | 34,740 | 49.00 | 43,945 | 49.00 | 50,125 | 49.00 |
| $ 36,378 | $ 82,517 | $ 116,495 |
Refer to Tables 7 and 8 for the nature of activities, principal place of business and country of incorporation of the associate.
In July 2024, JY Technology (Shanghai) repurchased the original ordinary shares it held from IDG and declared to reduce its ordinary shares simultaneously. The Group did not participate in the reduced shares of JY Technology (Shanghai); the Group recorded the change in its equity in the associate's net assets as an adjustment to investments, with a corresponding amount credited to the capital surplus of NT$(19,205) thousand. This transaction did not affect the Group's significant influence over JY Technology (Shanghai). Since there was a change in the abovementioned investment, the Group's ownership percentage in JY Technology (Shanghai) increased from 20.56% to 22.34%.
In December 2024, The Group sold a partial equity interest in JY Technology (Shanghai) to Shanghai Cehai and Shanghai Armillary for a total sale price of CNY9,818 thousand (or NT$44,537 thousand); thus, a disposal gain of CNY9,226 thousand (or NT$41,852 thousand) was recognized for the years ended December 31, 2024. The Group recorded the change as an adjustment to investments based on selling percentage from this transaction, with a corresponding amount credited to the capital surplus of NT$(5,334) thousand. This transaction did not affect the Group's significant influence over JY Technology (Shanghai). Since there was a change in the abovementioned investment, the Group's ownership percentage in JY Technology (Shanghai) decreased from 22.34% to 18.15%.
In March 2025, JY Technology (Shanghai) declared to reduce its ordinary shares and its shareholders resolved the re-election of directors and supervisors simultaneously. The Group did not elect as directors or supervisors and consequently ceased to have significant influence over JY Technology (Shanghai). Since there was a change in the abovementioned investment, the Group's ownership percentage in JY Technology (Shanghai) increased from 18.15% to 18.91%. The Group retained the remaining 18.91% interest as financial assets at FVTOCI whose fair value at the date of loss of significant influence. This transaction resulted in the recognition of a gain (loss) in profit or loss, calculated as follows:
| Carrying amount of investment on the date of loss of significant influence | $ 32,843 |
|---|---|
| Less: Fair value of retained investment | (16,544) |
| Less: Adjustment in the related capital surplus | (17,332) |
| Foreign exchange gains and losses | 1,191 |
| Loss recognized | $ 158 |
In May 2025, May 2024, and December 2024, the Group subscribed for total 1,173 thousand shares of Farobot Technology Ltd. with the same amount of payment of US$391 thousand (approximately NT$11,879 thousand, NT$12,688 thousand and NT$12,710 thousand, respectively) at the same percentage as its existing ownership percentage. This transaction did not affect the Group's significant influence over Farobot Technology Ltd.
Aggregate Information of Associates That Are Not Individually Material
| For the Three Months Ended June 30 | For the Six Months Ended June 30 | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| The Group’s share of loss from continuing operations | $(10,863) | $(22,045) | $(24,911) | $(30,000) |
Investments were accounted for using the equity method and the share of profit or loss and other comprehensive income of those investments were calculated based on financial statements which have not been reviewed.
13. PROPERTY, PLANT AND EQUIPMENT
| June 30, 2025 | December 31, 2024 | June 30, 2024 | |
|---|---|---|---|
| Freehold land | $ 2,400,991 | $ 2,424,659 | $ 2,422,384 |
| Buildings | 1,298,543 | 1,380,738 | 1,406,863 |
| Machinery equipment | 51,020 | 57,365 | 63,211 |
| Transportation equipment | 964 | 1,259 | 1,428 |
| Leasehold improvements | 159,061 | 182,183 | 185,248 |
| Other equipment | 98,006 | 118,140 | 129,158 |
| Property under construction | 1,156 | - | - |
| $ 4,009,741 | $ 4,164,344 | $ 4,208,292 |
Except for depreciation expenses recognized, the Group did not recognize significant additions, disposal or impairment loss of property, plant and equipment for the six months ended June 30, 2025 and 2024. Depreciation expenses are depreciated on the straight-line basis over the useful lives as follows:
| Building | |
|---|---|
| Main buildings | 20-50 years |
| Mechanical and electrical accessories | 2-20 years |
| Decoration | 2-10 years |
| Machinery equipment | 3-10 years |
| Transportation equipment | 5 years |
| Leasehold improvements | 3-15 years |
| Other equipment | 1-15 years |
Property, plant and equipment pledged by the Group as collateral for bank borrowing facilities are set out in Note 29.
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14. LEASE ARRANGEMENTS
The Group’s important lease projects include leasing the plants from other companies for the use of the plants and warehouses. The lease terms are 2 to 50 years. The Group does not have bargain purchase options to acquire lease items at the end of lease terms. In addition, the Group leases buildings and office equipment, which qualify as short-term leases and low-value asset leases. The Group has elected to apply the recognition exemption and thus, did not recognize right-of-use assets and lease liabilities for these leases. Refer to the consolidated balance sheet for the balance of right-of-use assets and lease liabilities of lease arrangements as of the balance sheet date.
Other significant lease related information are as follows:
| For the Three Months Ended June 30 | For the Six Months Ended June 30 | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Additions to right-of-use assets | $ 10,832 | $ 8,144 | ||
| Depreciation charge for right-of-use assets | $ 11,733 | $ 11,632 | $ 23,633 | $ 22,185 |
| Expenses relating to short-term and low-value asset leases | $ 4,729 | $ 4,786 | $ 9,021 | $ 10,955 |
| Total cash outflow for leases | $ 32,311 | $ 32,330 |
15. INVESTMENT PROPERTIES
Except for depreciation expenses recognized, the Group did not recognize significant additions, disposal or impairment loss of investment properties for the six months ended June 30, 2025 and 2024. The fair value of investment properties as of June 30, 2024, which was arrived at by reference to market evidence of transaction prices for similar properties, was approximately $798,492 thousand. Refer to the consolidated balance sheet for the balance as of balance sheet date, investment properties are buildings. Investment properties are depreciated on a straight-line basis over their estimated useful lives which are 50 years.
Lease commitments with lease terms commencing after the balance sheet dates are as follows:
| June 30, 2025 | December 31, 2024 | June 30, 2024 | |
|---|---|---|---|
| Lease commitments of investment properties | $ 33,441 | $ 55,735 | $ 78,208 |
Investment properties pledged by the Company as collateral for bank borrowing facilities are set out in Note 29.
16. INTANGIBLE ASSETS
| June 30, 2025 | December 31, 2024 | June 30, 2024 | |
|---|---|---|---|
| Computer software | $ 55,864 | $ 58,352 | $ 78,147 |
| Goodwill | 161,842 | 181,092 | 179,241 |
| Trademarks | 85,885 | 96,100 | 95,118 |
| Golf license | 5,685 | 5,685 | 5,685 |
| $ 309,276 | $ 341,229 | $ 358,191 |
Except for amortization recognized, the Group did not have significant additions, disposal or impairment loss of intangible assets during the six months ended June 30, 2025 and 2024. Computer software is amortized on a straight-line basis over their following estimated useful lives which is 1-10 years.
17. BORROWINGS
a. Short-term borrowings
| June 30, 2025 | December 31, 2024 | June 30, 2024 | |
|---|---|---|---|
| Unsecured bank loans | $ 1,410,936 | $ 1,087,222 | $ 1,432,667 |
| Expected repayment period | 2025.7-2026.6 | 2025.2-2025.12 | 2024.8-2025.6 |
| Interest rate | 1.85%-3.75% | 1.90%-4.50% | 1.84%-4.80% |
Refer to Note 27 for related information on utilized and unutilized bank loan facilities.
b. Long-term borrowings
| June 30, 2025 | December 31, 2024 | June 30, 2024 | |
|---|---|---|---|
| Unsecured bank loans | $ 1,540,498 | $ 1,716,927 | $ 1,723,736 |
| Secured bank loans (Note 29) | 1,281,400 | 1,341,400 | 1,401,400 |
| Less: Current portions | (547,181) | (483,149) | (489,252) |
| Long-term borrowings | $ 2,274,717 | $ 2,575,178 | $ 2,635,884 |
| Expected repayment period | 2026.11-2033.3 | 2026.11-2033.3 | 2024.10-2033.3 |
| Interest rate | 1.38%-2.30% | 1.38%-2.30% | 1.25%-1.95% |
Refer to Note 27 for related information on utilized and unutilized bank loan facilities.
18. TRADE PAYABLES
Trade payables are generated from operating activities. The average credit period for purchase of certain goods is 60 days. The Group has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms.
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19. OTHER PAYABLES
| June 30, 2025 | December 31, 2024 | June 30, 2024 | |
|---|---|---|---|
| Salaries and bonuses | $ 298,758 | $ 446,643 | $ 300,793 |
| Cash dividends | 202,877 | - | 217,498 |
| Compensation to employees | 19,490 | 9,459 | 44,622 |
| Annual leave | 62,085 | 61,554 | 62,720 |
| Others | 269,946 | 307,747 | 293,726 |
| $ 853,156 | $ 825,403 | $ 919,359 |
20. EQUITY
a. Ordinary shares
| June 30, 2025 | December 31, 2024 | June 30, 2024 | |
|---|---|---|---|
| Number of shares authorized (in thousands) | 280,000 | 280,000 | 280,000 |
| Shares authorized | $ 2,800,000 | $ 2,800,000 | $ 2,800,000 |
| Number of shares issued and fully paid (in thousands) | 217,497 | 217,497 | 217,497 |
| Shares issued | $ 2,174,973 | $ 2,174,973 | $ 2,174,973 |
Fully paid ordinary shares, which have a par value of $10, carry one vote per share and carry a right to dividends.
A total of 20,000 thousand shares of the Company's authorized shares were reserved for the issuance of employee share options.
As of June 30, 2025, the number of ordinary shares issued through private placements, has not yet been applied to be listed, was 14,708 thousand shares.
b. Capital surplus
| June 30, 2025 | December 31, 2024 | June 30, 2024 | |
|---|---|---|---|
| May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (1) | |||
| Issuance of ordinary shares | $ 566,881 | $ 566,881 | $ 566,881 |
| Conversion of bonds | 207,034 | 207,034 | 207,034 |
| Arising from employee restricted shares vested | 97,689 | 97,689 | 97,689 |
| Arising from employee share options exercised | 43,453 | 43,453 | 43,453 |
| Treasury share transactions | 17,579 | 17,579 | 17,579 |
| Arising from employee share options expired | 12,073 | 12,073 | 12,073 |
| (Continued) |
| June 30, 2025 | December 31, 2024 | June 30, 2024 | |
|---|---|---|---|
| May only be used to offset a deficit | |||
| Changes in percentage of ownership interests in subsidiaries and associates (2) | $ 305,113 | $ 322,445 | $ 346,984 |
| May not be used for any purpose | |||
| Employee share options | 40,729 | 22,953 | 12,137 |
| $ 1,290,551 | $ 1,290,107 | $ 1,303,830 | |
| (Concluded) |
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 once a year).
2) Such capital surplus arises from changes in capital surplus of subsidiaries and associate accounted for using the equity method.
c. Retained earnings and dividends policy
Under the dividends policy as set forth in the Company's Articles of Incorporation (the "Articles"), where the Company made post-tax profit for the period and other profit or loss items adjusted to the current year's undistributed earnings other than post-tax profit for the period in a fiscal year, the profit shall be first utilized for offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit unless the total legal reserve accumulated has already reached the amount of the Company's authorized capital. When a special reserve is appropriated from the prior unappropriated earnings for cumulative net debit balance reserves from prior period, the sum of net profit for the current period and items other than net profit that are included directly in the unappropriated earnings for the current period shall be used if the prior unappropriated earnings is not sufficient, setting aside or reversing special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings, which should be resolved in the shareholders' meeting for distribution of dividends and bonuses to shareholders. The distributable dividends and bonuses, capital surplus or legal reserve in whole or in part may be paid in cash after a resolution has been adopted by a majority vote at a meeting of the board of directors attended by two-thirds of the total number of directors; in addition, a report of such distribution shall be submitted to the shareholders' meeting, and then resolutions adopted by the shareholders' meeting of the above dividends policy are not required. For the Company's policies on distribution of employees' compensation and remuneration of directors, refer to "Employees' compensation and remuneration of directors" in Note 22-f.
The Articles stipulate that the Company adopts a residual dividend policy. After setting aside amounts based on the Company's capital budget plan, the residual profits shall be distributed as cash dividends. The Articles also prescribe that distribution of cash dividends shall not be less than 10% 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.
Items referred to under Rule No. 1090150022, issued by the FSC and the directive titled “Questions and Answers for Special Reserves Appropriated Following Adoption of IFRSs” should be appropriated to or reversed from a special reserve by the Company.
The appropriations of earnings for 2024 and 2023 were as follows:
| Appropriation of Earnings | ||
|---|---|---|
| For the Year Ended December 31 | ||
| 2024 | 2023 | |
| Legal reserve | $ 6,171 | $ 33,390 |
| (Reversal of) Special reserve | $ (147,345) | $ 8,844 |
| Cash dividends | $ 202,877 | $ 217,498 |
| Cash dividends per share (NT$) | $ 0.93 | $ 1.0 |
The above 2024 and 2023 appropriations for cash dividends were resolved by the Company's board of directors on March 6, 2025 and March 7, 2024, respectively; the other proposed appropriations were resolved by the shareholders in their meetings on June 20, 2025 and June 19, 2024, respectively.
d. Other equity items
| Exchange Differences Arising on Translation of Foreign Operations | Unrealized Valuation Gain on Financial Assets at Fair Value Through Other Comprehensive Income | |
|---|---|---|
| For the six months ended June 30, 2025 | ||
| Balance at January 1 | $ (23,858) | $ 15,050 |
| Exchange differences on translation of the financial statements of foreign operations | (338,727) | - |
| Related income tax | 67,745 | - |
| Balance at June 30 | $ (294,840) | $ 15,050 |
| For the six months ended June 30, 2024 | ||
| Balance at January 1 | $ (163,734) | $ 7,581 |
| Exchange differences on translation of the financial statements of foreign operations | 139,280 | - |
| Related income tax | (27,856) | - |
| Balance at June 30 | $ (52,310) | $ 7,581 |
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21. REVENUE
| For the Three Months Ended June 30 | For the Six Months Ended June 30 | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Revenue from the sale of goods | $ 2,895,435 | $ 2,480,126 | $ 5,536,124 | $ 4,507,482 |
| Software authorization and service revenue | 31,203 | 41,492 | 65,701 | 67,864 |
| $ 2,926,638 | $ 2,521,618 | $ 5,601,825 | $ 4,575,346 |
a. Contract balances
Contract liabilities are recognized from sale of goods. The changes in the balance of contract liabilities primarily result from the timing difference between the Group’s satisfaction of performance obligations and the respective customer’s payment. Refer to the consolidated balance sheet for the balance of contract liabilities as of balance date.
b. Disaggregation of revenue
Refer to Note 33 for information of the disaggregation of revenue.
22. NET PROFIT FOR THE YEAR
a. Other income
| For the Three Months Ended June 30 | For the Six Months Ended June 30 | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Rental income (Note 28) | $ 14,674 | $ 14,956 | $ 29,670 | $ 29,413 |
| Grant revenue | 4,961 | 13,184 | 5,818 | 14,447 |
| Others | 19,273 | 17,221 | 48,862 | 28,657 |
| $ 38,908 | $ 45,361 | $ 84,350 | $ 72,517 |
b. Other gains and losses
| For the Three Months Ended June 30 | For the Six Months Ended June 30 | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Net foreign exchange (losses) gains | $ (153,535) | $ 7,199 | $ (109,283) | $ 29,763 |
| Net gain (loss) on fair value changes of financial assets and liabilities at fair value through profit or loss | (872) | 8,848 | 646 | (6,835) |
| Loss on compensation | (16,225) | (116,038) | (16,225) | (116,038) |
| Others | (11,308) | (16,563) | (13,232) | (19,667) |
| $ (181,940) | $ (116,554) | $ (138,094) | $ (112,777) |
c. Finance costs
| For the Three Months Ended June 30 | For the Six Months Ended June 30 | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Interest on bank loans | $ 22,374 | $ 24,481 | $ 45,241 | $ 49,214 |
| Interest on lease liabilities | 1,033 | 726 | 2,107 | 1,490 |
| $ 23,407 | $ 25,207 | $ 47,348 | $ 50,704 |
d. Depreciation and amortization
| For the Three Months Ended June 30 | For the Six Months Ended June 30 | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| An analysis of depreciation by function | ||||
| Operating costs | $ 15,444 | $ 16,194 | $ 31,432 | $ 33,762 |
| Operating expenses | 42,800 | 46,889 | 86,259 | 90,220 |
| $ 58,244 | $ 63,083 | $ 117,691 | $ 123,982 | |
| An analysis of amortization by function | ||||
| Operating costs | $ 1,320 | $ 1,184 | $ 2,482 | $ 2,103 |
| Operating expenses | 20,015 | 18,224 | 37,731 | 38,929 |
| $ 21,335 | $ 19,408 | $ 40,213 | $ 41,032 |
e. Employee benefits expense
| For the Three Months Ended June 30 | For the Six Months Ended June 30 | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Post-employment benefits | ||||
| Defined contribution plans | $ 27,790 | $ 29,107 | $ 57,284 | $ 58,302 |
| Defined benefit plans | 349 | 270 | 698 | 541 |
| 28,139 | 29,377 | 57,982 | 58,843 | |
| Equity-settled share-based payments (Note 25) | 9,687 | 2,607 | 17,776 | 5,214 |
| Other employee benefits | 716,472 | 764,666 | 1,484,225 | 1,504,810 |
| $ 754,298 | $ 796,650 | $ 1,559,983 | $ 1,568,867 | |
| An analysis of employee benefits expense by function | ||||
| Operating costs | $ 157,821 | $ 131,437 | $ 316,351 | $ 265,093 |
| Operating expenses | 596,477 | 665,213 | 1,243,632 | 1,303,774 |
| $ 754,298 | $ 796,650 | $ 1,559,983 | $ 1,568,867 |
f. Employees' compensation and remuneration of directors
According to the Articles of Incorporation of the Company, the Company accrued employees' compensation and remuneration of directors at rates from 3% to 20% and no higher than 3%, respectively, of net profit before income tax (the parent company only financial statements), employees' compensation, and remuneration of directors. In accordance with the amendments to the Securities and Exchange Act in August 2024, the shareholders of the Company resolved the amendments to the Company's Articles at their 2025 regular meeting. The amendments explicitly stipulate which is based on the above compensation of employees at the rate no lower than 10% as compensation distributions for non-executive employees. For the three months ended June 30, 2025 and 2024, and for the six months ended June 30, 2024, the employees' compensation and remuneration of directors were not recognized due to net loss before income tax. The employees' compensation and remuneration of directors for the six months ended June 30, 2025 have been approved by the Company's board of directors as follows:
| For the Six Months Ended June 30, 2025 | ||
|---|---|---|
| Cash | Accrual Rate (%) | |
| Employees' compensation | $ 10,031 | 13.46 |
| Remuneration of directors | 769 | 1.03 |
If there is a change in the amounts after the annual consolidated financial statements are authorized for issue, the differences are recorded as a change in the accounting estimate.
The appropriations of employees' compensation and remuneration of directors for 2024 and 2023 are as shown below:
| For the Year Ended December 31 | ||
|---|---|---|
| 2024 | 2023 | |
| Employees' compensation - cash | $ 9,459 | $ 43,000 |
| Remuneration of directors - cash | $ 541 | $ 3,700 |
There is no difference between the actual amounts of employees' compensation and remuneration of directors paid and the amounts recognized in the consolidated financial statements for the years ended December 31, 2024 and 2023.
Information on the employees' compensation 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.
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- 27 -
23. INCOME TAXES
a. Major components of income tax expense (benefit) recognized in profit or loss
| For the Three Months Ended June 30 | For the Six Months Ended June 30 | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Current tax | ||||
| In respect of the current year | $ 18,224 | $ 9,665 | $ 58,040 | $ 11,074 |
| Income tax on unappropriated earnings | - | 3,709 | - | 3,709 |
| Adjustments for prior years | 13,192 | (1,922) | 14,321 | (11,456) |
| 31,416 | 11,452 | 72,361 | 3,327 | |
| Deferred tax | ||||
| In respect of the current year | (24,916) | (26,258) | (40,263) | (49,295) |
| Income tax expense (benefit) recognized in profit or loss | $ 6,500 | $ (14,806) | $ 32,098 | $ (45,968) |
b. Income tax recognized in other comprehensive income
| For the Three Months Ended June 30 | For the Six Months Ended June 30 | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Deferred tax in respect of the current year | ||||
| Translation of foreign operations | $ 71,689 | $ (5,522) | $ 67,745 | $ (27,856) |
c. Income tax assessments
The Company’s income tax returns through 2022 have been assessed by the tax authorities.
24. EARNINGS (LOSS) PER SHARE
The earnings (loss) and weighted average number of ordinary shares outstanding used in the computation of earnings (loss) per share were as follows:
Net Profit (Loss) for the Period
| For the Three Months Ended June 30 | For the Six Months Ended June 30 | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Earnings (loss) used in the computation of basic and diluted earnings (loss) per share | $ (16,830) | $ (90,019) | $ 50,967 | $ (167,126) |
Shares
(In Thousands of Shares)
| For the Three Months Ended June 30 | For the Six Months Ended June 30 | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Weighted average number of ordinary shares used in the computation of basic earnings (loss) per share | 217,497 | 217,497 | 217,497 | 217,497 |
| Effect of potentially dilutive ordinary shares: | ||||
| Employees’ compensation | - | - | 205 | - |
| Employee share options | - | - | 274 | - |
| Weighted average number of ordinary shares used in the computation of diluted earnings (loss) per share | 217,497 | 217,497 | 217,976 | 217,497 |
The Group may settle compensation or bonuses paid to employees in cash or shares; therefore, the Group assumes that the entire amount of the compensation or bonuses will be settled in shares, and the resulting potentially dilutive shares will be included in the weighted average number of shares outstanding used in the computation of diluted earnings (loss) per share. Such dilutive effect of the potential shares is included in the computation of diluted earnings (loss) per share until the number of shares to be distributed to employees is resolved in the following year.
Due to net loss for the three months ended June 30, 2025 and 2024, and the six months ended June 30, 2024, the potentially dilutive shares have been excluded from the computation of diluted earnings per share.
25. EMPLOYEE SHARE OPTION PLAN
As of June 30, 2025, qualified employees of the Company were granted 5,000 options. Each option entitles the holder to subscribe for one thousand ordinary shares of the Company. The options granted are valid for 6 years and exercisable at 100% after the second anniversary year from the grant date. Based on each grant date, information on the number of options granted and exercise prices was as follows:
| March 18, 2025 | September 18, 2024 | May 2, 2023 | |
|---|---|---|---|
| Number of options granted | 1,368 | 2,198 | 1,434 |
| Exercise price per share granted (equal to the closing price of the Company’s ordinary shares listed on the TWSE on the grant date) (NT$) | $ 84.40 | $ 67.40 | $ 60.80 |
| Exercise price per share as of independent auditors’ review report date (revised in accordance with relevant regulations) (NT$) | $ 84.40 | $ 66.44 | $ 57.14 |
Information on options granted for the six months ended June 30, 2025 and 2024 was as follows:
a. Movements of the number of options and the related price were as follows:
| For the Six Months Ended June 30, 2025 | For the Six Months Ended June 30, 2024 | |||
|---|---|---|---|---|
| Number of Options (In Thousands of Units) | Weighted-average Exercise Price (NT$) | Number of Options (In Thousands of Units) | Weighted-average Exercise Price (NT$) | |
| Balance at January 1 | 3,632 | $ 63.68 | 1,434 | $ 58.71 |
| Options granted | 1,368 | 84.40 | - | - |
| Balance at June 30 | 5,000 | 69.35 | 1,434 | 58.71 |
| Options exercisable, end of the period | 1,434 | 57.14 | - | |
| Weighted-average fair value of options granted (NT$) | $ 24.22 | $ 15.47 |
b. Information on outstanding options at the end of the reporting period was as follows:
| June 30, 2025 | December 31, 2024 | June 30, 2024 | |
|---|---|---|---|
| Range of exercise price (NT$) | $57.14-$84.40 | $57.97/$67.40 | $58.71 |
| Weighted-average remaining contractual life (in years) | 1.02 | 1.18 | 0.83 |
The fair value of options granted were priced using the Black-Scholes pricing model and the inputs to the model on the grant date were as follows:
| March 18, 2025 | September 18, 2024 | May 2, 2023 | |
|---|---|---|---|
| Grant-date share price (NT$) | $ 84.40 | $ 67.40 | $ 60.08 |
| Exercise price (NT$) | $ 84.40 | $ 67.40 | $ 60.08 |
| Expected volatility (%) | 33.73 | 33.26 | 30.24 |
| Expected life (in years) | 4.00 | 4.00 | 4.00 |
| Risk-free interest rate (%) | 1.53 | 1.38 | 1.09 |
The compensation costs from employee share options were $9,687 thousand and $17,776 thousand for the three months ended June 30, 2025 and for the six months ended June 30, 2025, respectively.
The compensation costs from employee share options were $2,607 thousand and $5,214 thousand for the three months ended June 30, 2024 and for the six months ended June 30, 2024, respectively.
26. CAPITAL MANAGEMENT
The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximizing the return to stakeholders through the optimization of the debt and total assets balance. The Group's overall strategy is expected to remain unchanged for the year ahead.
Key management personnel of the Group review the capital structure on a quarterly basis. As part of this review, the key management personnel consider the cost of capital and the risks associated with each class of capital. Based on recommendations of the key management personnel, in order to balance the overall capital structure, the Group may adjust the amount of dividends paid to shareholders, the number of new shares, and the amount of new debt issued.
27. FINANCIAL INSTRUMENTS
a. Fair value of financial instruments not measured at fair value
Management considers that the carrying amounts of the financial instruments recognized in the consolidated financial statements approximate their fair values.
b. Fair value of financial instruments measured at fair value on a recurring basis
1) Fair value hierarchy
The Group measured foreign exchange forward contracts at fair value under Level 2, respectively. The financial assets at fair value through other comprehensive income were measured by the Group at fair value under Levels 3.
There were no transfers between Levels 1 and 2 for the six months ended June 30, 2025 and 2024.
2) Valuation techniques and inputs applied for Level 2 fair value measurement
Foreign exchange forward contracts measured at discounted cash flows basis, which are estimated based on observable forward exchange rates at the end of the reporting period and contract forward rates, discounted at a rate that reflects the credit risk of various counterparties.
3) Valuation techniques and inputs applied for Level 3 fair value measurement
The fair values of foreign unlisted securities, which are emerging market equity securities, are determined by using the asset approach. In the asset approach, the total market value of individual asset and liability of the evaluated target is evaluated by taking into account the risk factors (e.g., lack of marketability) to estimate the fair value.
c. Categories of financial instruments
| June 30, 2025 | December 31, 2024 | June 30, 2024 | |
|---|---|---|---|
| Financial assets | |||
| Financial assets at FVTPL | $ 3,373 | $ - | $ 140 |
| Financial assets at amortized cost (1) | 4,094,203 | 4,574,067 | 3,988,816 |
| Financial assets at FVTOCI | 95,368 | 89,958 | 82,267 |
| Financial liabilities | |||
| Financial liabilities at FVTPL | 4,245 | 1,518 | 1,449 |
| Financial liabilities at amortized cost (2) | 6,792,369 | 6,605,943 | 6,635,852 |
1) The balances include financial assets at amortized cost, which comprise cash and cash equivalents, time deposits and project deposits, notes receivable, trade and other receivables (including related parties) and refundable deposits.
- 30 -
2) The balances include financial liabilities measured at amortized cost, which comprise short-term borrowings, trade and other payables (including related parties), long-term borrowings (including current portion) and guarantee deposits received (classified as other current liabilities).
d. Financial risk management objectives and policies
The Group’s major financial instruments include trade receivables, trade payables and borrowings. The Group’s Corporate Treasury function provides services to the business, coordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Group through internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk (including foreign currency risk, interest rate risk and other debt risk), credit risk and liquidity risk.
1) Market risk
The Group’s activities exposed it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. To manage operating funds effectively and create short-term capital gains, the Group used the partial of operating funds to invest in foreign equity instruments. The Group considered price risk arising from investment in foreign equity instruments is not significant based on nature and amount of the investment.
There has been no change to the Group’s exposure to market risks or the manner in which these risks were managed and measured.
a) Foreign currency risk
The Group had sales and purchases denominated in foreign currency, which exposed the Group to foreign currency risk. Based on the approval range of policy, the Group managed the partial of foreign currency risk through foreign exchange forward contracts.
The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities (including those eliminated on consolidation) are set out in Note 31.
Sensitivity analysis
The Group was mainly exposed to the USD, CNY and EUR.
The Group’s sensitivity of 1% is used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis included only outstanding foreign currency denominated monetary items and adjusts their translation at the end of the reporting period for a 1% change in foreign currency rates.
A positive number below indicates a decrease/increase in pre-tax profit (loss) that would result if the New Taiwan dollar (the functional currency) weakened 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 (loss) and the balances below would be negative.
| For the Six Months Ended June 30 | ||
|---|---|---|
| 2025 | 2024 | |
| USD impact | $ 7,564 | $ 7,905 |
| CNY impact | 2,166 | 2,271 |
| EUR impact | 5,440 | 2,995 |
The impact listed above was mainly attributable to the exposure on outstanding USD, CNY and EUR deposits, receivables, payables and borrowings.
b) Interest rate risk
The Group was exposed to interest rate risk because entities in the Group borrowed funds at both fixed and floating interest rates.
The carrying amounts of the Group’s financial assets and financial liabilities with exposure to interest rates at the end of the reporting period were as follows:
| June 30, 2025 | December 31, 2024 | June 30, 2024 | |
|---|---|---|---|
| Fair value interest rate risk | |||
| Financial assets | $ 26,886 | $ 131,137 | $ 30,172 |
| Financial liabilities | 1,033,840 | 1,028,309 | 910,205 |
| Cash flow interest rate risk | |||
| Financial assets | 1,478,534 | 1,641,927 | 1,581,630 |
| Financial liabilities | 3,306,878 | 3,240,626 | 3,740,905 |
Sensitivity analysis
The sensitivity analysis below was determined based on the Group’s exposure to interest rates for non-derivative instruments at the end of the reporting period. For floating rate assets and liabilities, the analysis was prepared assuming the amount of each asset and liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease was used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.
If interest rates had been 50 basis points higher/lower and all other variables were held constant, the Group’s pre-tax profit (loss) for the six months ended June 30, 2025 and 2024 would have decreased/increased by $4,571 thousand and increased/decreased by $5,398 thousand, respectively.
2) Credit risk
Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Group. As at the end of the reporting period, the Group’s maximum exposure to credit risk, which would cause a financial loss to the Group due to failure of counterparties to discharge an obligation, could arise from the carrying amount of the respective recognized financial assets as stated in the consolidated balance sheets.
The Group adopted a policy of only dealing with creditworthy counterparties. Before accepting new customers, the Group evaluated the potential customer’s credit quality through internal credit reporting and sales management department to determine credit limits. Credit limits and rating will be re-evaluated regularly every year.
In addition, the Group reviews the recoverable amount of each individual trade debt at the end of the year to ensure that adequate allowance is made for possible irrecoverable amounts.
- 32 -
The Group's concentration of credit risk by geographical locations was mainly in the U.S.A., mainland China and Europe. As of June 30, 2025, December 31, 2024 and June 30, 2024, the proportion of trade receivables from those mentioned above to total trade receivables were as follows:
| June 30, 2025 | December 31, 2024 | June 30, 2024 | |
|---|---|---|---|
| Mainland China | 19% | 27% | 28% |
| U.S.A. | 35% | 31% | 24% |
| Europe | 15% | 16% | 18% |
3) Liquidity risk
The Group manages liquidity risk by monitoring and maintaining a level of cash deemed adequate to finance the Group'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 Group relies on bank borrowings as a significant source of liquidity. As of June 30, 2025, December 31, 2024 and June 30, 2024, the Group had available unutilized bank facilities as set out in (b) below.
a) Liquidity and interest rate risk table for non-derivative financial liabilities
The following table details the Group'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 Group can be required to pay. 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.
June 30, 2025
| Less than 1 Year | 1-3 Years | 3+ Years | |
|---|---|---|---|
| Non-interest bearing liabilities | $ 2,559,535 | $ - | $ - |
| Variable interest rate liabilities | 1,087,868 | 1,303,063 | 1,090,141 |
| Fixed interest rate liabilities | 941,978 | - | - |
| Lease liabilities | 39,337 | 36,395 | 42,641 |
| $ 4,628,718 | $ 1,339,458 | $ 1,132,782 |
December 31, 2024
| Less than 1 Year | 1-3 Years | 3+ Years | |
|---|---|---|---|
| Non-interest bearing liabilities | $ 2,460,394 | $ - | $ - |
| Variable interest rate liabilities | 723,129 | 1,451,333 | 1,264,802 |
| Fixed interest rate liabilities | 931,405 | - | - |
| Lease liabilities | 42,678 | 79,818 | 14,102 |
| $ 4,157,606 | $ 1,531,151 | $ 1,278,904 |
June 30, 2024
| Less than 1 Year | 1-3 Years | 3+ Years | |
|---|---|---|---|
| Non-interest bearing liabilities | $ 2,078,049 | $ - | $ - |
| Variable interest rate liabilities | 1,168,182 | 1,205,097 | 1,585,662 |
| Fixed interest rate liabilities | 844,953 | - | - |
| Lease liabilities | 39,641 | 40,160 | 18,431 |
| $ 4,130,825 | $ 1,245,257 | $ 1,604,093 |
b) Financing facilities
| June 30, 2025 | December 31, 2024 | June 30, 2024 | |
|---|---|---|---|
| Unsecured bank facilities: | |||
| Amount used | $ 2,951,434 | $ 2,804,149 | $ 3,156,403 |
| Amount unused | 4,894,824 | 4,763,863 | 4,439,380 |
| $ 7,846,258 | $ 7,568,012 | $ 7,595,783 | |
| Secured bank facilities: | |||
| Amount used | $ 1,281,400 | $ 1,341,400 | $ 1,401,400 |
| Amount unused | - | - | - |
| $ 1,281,400 | $ 1,341,400 | $ 1,401,400 |
28. TRANSACTIONS WITH RELATED PARTIES
In June 2025, the largest and single shareholder of the Company, AUO Corp., participated in the Company's regular shareholders' meeting and obtained control in substance over the Company after resolving the re-election of directors. AUO Corp. became the Company's parent company on June 2025.
Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note. Besides information disclosed elsewhere in the other notes, details of transactions between the Group and other related parties are disclosed below.
a. Related party name and relationship
| Related Party Name | Related Party Category |
|---|---|
| Chroma ATE Inc. | Investor with significant influence over the Group (Note 1) |
| AUO Corp. | Parent company (Note 2) |
| Testar Electronics Corporation. | Subsidiary of investor with significant influence over the Group (Note 1) |
| Adivic Technology Co., Ltd. | Subsidiary of investor with significant influence over the Group (Note 1) |
| (Continued) |
Related Party Name
Related Party Category
Darwin Precisions Corp.
Sister company (Note 3)
Edgetech Data Technologies (Suzhou) Corp., Ltd.
Sister company (Note 3)
AUO Display Plus Corporation
Sister company (Note 3)
AUO Digitech Taiwan Inc.
Sister company (Note 3)
AUO Optoelectronics (Suzhou) Co., Ltd.
Sister company (Note 3)
AUO Envirotech Inc.
Sister company (Note 3)
JY Technology (Korea)
Associate
JY Technology (Shanghai)
Associate (Note 4)
Farobot Inc.
Associate
Farobot Technology Ltd.
Associate
Zenitron Corporation
Other related party (Note 1)
eeWare SAS
Other related party (Note 5)
Fen Zhan Cheng Yi (Beijing)
Other related party
AutoCore Technology (Nanjing) Co., Ltd.
Other related party
(Concluded)
Note 1: Due to the re-election of directors, the entity became a non-related party on June 2025.
Note 2: Due to the re-election of directors, the entity became a parent company from investor with significant influence over the Group on June 2025.
Note 3: Due to the re-election of directors, the entity became a sister company from subsidiary of investor with significant influence over the Group on June 2025.
Note 4: The Group ceased to have significant influence and changed to other related party on March 2025.
Note 5: The Company is its director and as a non-related party since May 2024.
b. Sales of goods
| Related Party Category/Name | For the Three Months Ended June 30 | For the Six Months Ended June 30 | ||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Investors with significant influence over the Group | $ 14,012 | $ 15,694 | $ 19,402 | $ 29,953 |
| Subsidiaries of investors with significant influence over the Group | 654 | 2,613 | 1,591 | 3,046 |
| Associates | 7,954 | 32,447 | 15,238 | 54,194 |
| $ 22,630 | $ 50,754 | $ 36,231 | $ 87,193 |
Transactions with related parties were made at prices and terms comparable to those that would be obtained in similar transactions with non-related parties.
c. Purchases of goods
| Related Party Category/Name | For the Three Months Ended June 30 | For the Six Months Ended June 30 | ||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Investors with significant influence over the Group | $ 36 | $ - | $ 270 | $ 117 |
| Subsidiaries of investors with significant influence over the Group | 10,110 | 22,452 | 26,396 | 34,892 |
| Associates | 51 | - | 51 | - |
| Others | 3,019 | 3,441 | 5,723 | 7,344 |
| $ 13,216 | $ 25,893 | $ 32,440 | $ 42,353 |
Transactions with related parties were made at prices and terms comparable to those that would be obtained in similar transactions with non-related parties.
d. Receivables from related parties
| Line Item | Related Party Category/Name | June 30, 2025 | December 31, 2024 | June 30, 2024 |
|---|---|---|---|---|
| Trade receivables | Investors with significant influence over the Group | $ 1,086 | $ 12,749 | $ 11,517 |
| Subsidiaries of investors with significant influence over the Group | 279 | 1,105 | 2,683 | |
| Associates | 28,865 | 47,326 | 40,382 | |
| $ 30,230 | $ 61,180 | $ 54,582 | ||
| Other receivables | Investors with significant influence over the Group | $ - | $ 2,327 | $ 3,000 |
| Subsidiaries of investors with significant influence over the Group | - | 2,479 | 3,141 | |
| $ - | $ 4,806 | $ 6,141 |
The outstanding trade receivables from related parties are unsecured. For the six months ended June 30, 2025 and 2024, no impairment loss was recognized for trade receivables from related parties.
e. Payables to related parties
| Line Item | Related Party Category/Name | June 30, 2025 | December 31, 2024 | June 30, 2024 |
|---|---|---|---|---|
| Trade payables | Investors with significant influence over the Group | $ - | $ 3 | $ 2 |
| Subsidiaries of investors with significant influence over the Group | 6,411 | 8,041 | 18,477 | |
| Associates | - | 1,652 | - | |
| Others | - | 4,666 | 5,446 | |
| $ 6,411 | $ 14,362 | $ 23,925 | ||
| Other payables | Investors with significant influence over the Group | $ - | $ 188 | $ 496 |
| Subsidiaries of investors with significant influence over the Group | 542 | 89 | 8,406 | |
| Associates | - | - | 26 | |
| Others | - | 131 | - | |
| $ 542 | $ 408 | $ 8,928 |
The outstanding trade payables to related parties are unsecured.
f. Prepayments
| Related Party Category/Name | June 30, 2025 | December 31, 2024 | June 30, 2024 |
|---|---|---|---|
| Subsidiaries of investors with significant influence over the Group | $ 99 | $ 5,367 | $ - |
| Associates | |||
| Farobot Inc. | 19,856 | 19,856 | 19,856 |
| $ 19,955 | $ 25,223 | $ 19,856 |
g. Intangible assets acquired
| Price | ||||
|---|---|---|---|---|
| For the Three Months Ended June 30 | For the Six Months Ended June 30 | |||
| Related Party Category/Name | 2025 | 2024 | 2025 | 2024 |
| Investors with significant influence over the Company AUO Corp. | $ - | $ 1,515 | $ 1,000 | $ 1,515 |
h. Property, plant and equipment acquired
| Price | ||||
|---|---|---|---|---|
| For the Three Months Ended June 30 | For the Six Months Ended June 30 | |||
| Related Party Category/Name | 2025 | 2024 | 2025 | 2024 |
| Investors with significant influence over the Company | ||||
| Chroma ATE Inc. | $ 610 | $ - | $ 808 | $ - |
| Subsidiaries of investors with significant influence over the Group | ||||
| AUO Digitech Taiwan Inc. | 450 | - | 450 | 5,800 |
| Associates | - | 25 | - | 25 |
| $ 1,060 | $ 25 | $ 1,258 | $ 5,825 |
i. Lease arrangements
| Line Item | Related Party Category/Name | For the Three Months Ended June 30 | For the Six Months Ended June 30 | ||
|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | ||
| Rental expenses | Others | $ 5,466 | $ 2,067 | $ 7,058 | $ 4,000 |
| Rental income | Investors with significant influence over the Group | $ 8,758 | $ 8,758 | $ 17,611 | $ 17,604 |
| Subsidiaries of investors with significant influence over the Group | 2,579 | 2,579 | 5,185 | 5,183 | |
| $ 11,337 | $ 11,337 | $ 22,796 | $ 22,787 |
The rental expenses were paid semi-annually and the rental income was received monthly, respectively, which based on local normal commercial rates.
j. Disposal of financial assets
For the three months ended June 30, 2024 and the six months ended June 30, 2024
| Related Party Category/Name | Line Item | Number of Shares | Underlying Assets | Proceeds | Gain on Disposal |
|---|---|---|---|---|---|
| Others eeWare SAS | Financial assets at fair value through profit or loss | 932 | Ordinary shares | $ 3,235 | $ 3,235 |
In April 2024, the Group's other related party, eeWare SAS, repurchased its ordinary shares. Gain on disposal was recognized as net gain on fair value changes of financial assets and liabilities at fair value through profit or loss.
k. Endorsements and guarantees
Information on the endorsements or guarantees for subsidiaries was as follows:
| June 30, 2025 | December 31, 2024 | June 30, 2024 | |
|---|---|---|---|
| ADLINK Technology GmbH | $ 927,450 | $ 921,780 | $ 902,460 |
| ADLINK Technology (China) Co., Ltd. | $ 29,300 | $ - | $ - |
- Remuneration of key management personnel
| For the Three Months Ended June 30 | For the Six Months Ended June 30 | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Short-term employee benefits | $ 8,152 | $ 7,641 | $ 17,784 | $ 15,697 |
| Share-based payment | 1,480 | 321 | 2,547 | 643 |
| Post-employment benefits | 54 | 70 | 108 | 145 |
| $ 9,686 | $ 8,032 | $ 20,439 | $ 16,485 |
The remuneration of directors and key executives was determined by the remuneration committee based on the performance of the Company and market trends.
- ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY
The assets pledged as collaterals for bank facilities were as follows:
| June 30, 2025 | December 31, 2024 | June 30, 2024 | |
|---|---|---|---|
| Land | $ 2,202,003 | $ 2,202,003 | $ 2,202,003 |
| Buildings | 937,943 | 954,876 | 988,316 |
| Investment properties | 226,532 | 229,008 | 231,485 |
| Property under construction | 1,156 | - | - |
| $ 3,367,634 | $ 3,385,887 | $ 3,421,804 |
- SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS
Contingent Liabilities
The facilities that the Group provided endorsements or guarantees for its subsidiaries refer to Note 28 for information.
31. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES
The group entities' 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:
June 30, 2025
| Foreign Currency (In Thousands) | Exchange Rate | Carrying Amount (In Thousands) | |
|---|---|---|---|
| Financial assets | |||
| Monetary items | |||
| USD | $ 59,806 | 29.30 (USD:NTD) | $ 1,752,316 |
| USD | 12,763 | 7.16 (USD:CNY) | 373,947 |
| USD | 3,852 | 144.05 (USD:JPY) | 112,862 |
| USD | 7,227 | 0.85 (USD:EUR) | 211,762 |
| USD | 594 | 0.73 (USD:GBP) | 17,405 |
| USD | 627 | 1,339.12 (USD:KRW) | 18,361 |
| CNY | 53,952 | 4.09 (CNY:NTD) | 220,823 |
| EUR | 15,539 | 34.35 (EUR:NTD) | 533,770 |
| EUR | 987 | 0.86 (EUR:GBP) | 33,894 |
| $ 3,275,140 | |||
| Non-monetary items | |||
| Derivative instruments | |||
| USD | 8,200 | 29.30 (USD:NTD) | $ 3,373 |
| Financial liabilities | |||
| Monetary items | |||
| USD | 31,128 | 29.30 (USD:NTD) | $ 912,051 |
| USD | 12,914 | 7.16 (USD:CNY) | 378,369 |
| USD | 1,381 | 144.05 (USD:JPY) | 40,477 |
| USD | 12,742 | 0.85 (USD:EUR) | 373,339 |
| USD | 22 | 0.73 (USD:GBP) | 651 |
| USD | 866 | 1,339.12 (USD:KRW) | 25,380 |
| CNY | 1,035 | 4.09 (CNY:NTD) | 4,235 |
| EUR | 679 | 34.35 (EUR:NTD) | 23,323 |
| EUR | 11 | 0.86 (EUR:GBP) | 362 |
| $ 1,758,187 | |||
| Non-monetary items | |||
| Derivative instruments | |||
| USD | 6,200 | 29.30 (USD:NTD) | $ 4,245 |
- 40 -
December 31, 2024
| Foreign Currency (In Thousands) | Exchange Rate | Carrying Amount (In Thousands) | |
|---|---|---|---|
| Financial assets | |||
| Monetary items | |||
| USD | $ 59,669 | 32.79 (USD:NTD) | $ 1,956,554 |
| USD | 20,096 | 7.19 (USD:CNY) | 658,955 |
| USD | 4,917 | 156.19 (USD:JPY) | 161,219 |
| USD | 8,558 | 0.96 (USD:EUR) | 280,603 |
| USD | 190 | 0.80 (USD:GBP) | 6,242 |
| USD | 458 | 1,459.71 (USD:KRW) | 15,021 |
| CNY | 74,684 | 4.56 (CNY:NTD) | 340,621 |
| EUR | 8,856 | 34.14 (EUR:NTD) | 302,337 |
| EUR | 1,674 | 0.83 (EUR:GBP) | 57,148 |
| $ 3,778,700 | |||
| Financial liabilities | |||
| Monetary items | |||
| USD | 31,137 | 32.79 (USD:NTD) | $ 1,020,982 |
| USD | 14,949 | 7.19 (USD:CNY) | 490,190 |
| USD | 2,206 | 156.19 (USD:JPY) | 72,331 |
| USD | 20,329 | 0.96 (USD:EUR) | 666,583 |
| USD | 982 | 1,459.71 (USD:KRW) | 32,216 |
| CNY | 550 | 4.56 (CNY:NTD) | 2,508 |
| EUR | 769 | 34.14 (EUR:NTD) | 26,240 |
| EUR | 10 | 0.83 (EUR:GBP) | 338 |
| $ 2,311,388 | |||
| Non-monetary items | |||
| Derivative instruments | |||
| USD | 5,500 | 32.79 (USD:NTD) | $ 1,518 |
- 41 -
June 30, 2024
| Foreign Currency (In Thousands) | Exchange Rate | Carrying Amount (In Thousands) | |
|---|---|---|---|
| Financial assets | |||
| Monetary items | |||
| USD | $ 49,159 | 32.45 (USD:NTD) | $ 1,595,212 |
| USD | 23,310 | 7.13 (USD:CNY) | 756,395 |
| USD | 3,259 | 160.88 (USD:JPY) | 105,758 |
| USD | 7,080 | 0.93 (USD:EUR) | 229,734 |
| USD | 162 | 0.79 (USD:GBP) | 5,244 |
| USD | 734 | 1,366.89 (USD:KRW) | 23,807 |
| CNY | 50,461 | 4.55 (CNY:NTD) | 230,582 |
| EUR | 6,155 | 34.71 (EUR:NTD) | 213,641 |
| EUR | 3,521 | 0.85 (EUR:GBP) | 122,203 |
| $ 3,282,576 | |||
| Non-monetary items | |||
| Derivative instruments | |||
| CNY | 8,000 | 4.55 (CNY:NTD) | $ 140 |
| Financial liabilities | |||
| Monetary items | |||
| USD | 26,328 | 32.45 (USD:NTD) | $ 854,337 |
| USD | 14,686 | 7.13 (USD:CNY) | 476,564 |
| USD | 1,295 | 160.88 (USD:JPY) | 42,024 |
| USD | 16,397 | 0.93 (USD:EUR) | 532,071 |
| USD | 33 | 0.79 (USD:GBP) | 1,085 |
| USD | 604 | 1,366.89 (USD:KRW) | 19,610 |
| CNY | 774 | 4.55 (CNY:NTD) | 3,526 |
| EUR | 1,046 | 34.71 (EUR:NTD) | 36,298 |
| $ 1,965,515 | |||
| Non-monetary items | |||
| Derivative instruments | |||
| USD | 5,600 | 32.45 (USD:NTD) | $ 790 |
| CNY | 10,000 | 4.55 (CNY:NTD) | 659 |
| $ 1,449 |
The Group entered into foreign exchange forward contracts as derivative instruments under non-monetary items, and its foreign currency amounts is contractual amounts.
It is impractical to disclose net foreign exchange gains (losses) by each significant foreign currency due to the variety of the foreign currency transactions and functional currencies of the group entities.
32. SEPARATELY DISCLOSED ITEMS
a. Information on significant transactions and investees:
1) Financing provided to others: Table 1 (attached)
2) Endorsements/guarantees provided: Table 2 (attached)
3) Marketable securities held (excluding investment in subsidiaries, associates and joint ventures): Table 3 (attached)
4) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: Table 4 (attached)
5) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: Table 5 (attached)
6) Others: Intercompany relationships and significant intercompany transactions: Table 6 (attached)
b. Information on investees: Table 7 (attached)
c. 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 period, repatriations of investment income, and limit on the amount of investment in the mainland China area: Table 8 (attached)
2) Any of the following significant transactions with invested companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses:
a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period: Table 4 (attached)
b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period: Table 4 (attached)
c) The amount of property transactions and the amount of the resultant gains or losses: None
d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes: Table 2 (attached)
e) The highest balance, the end of period balance, the interest rate range, and total current period interest with respect to financing of funds: Table 1 (attached)
f) Other transactions that have a material effect on the profit or loss for the year or on the financial position, such as the rendering or receiving of services: Table 6 (attached)
- 43 -
33. SEGMENT INFORMATION
Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on the regions where the Group operates. Specifically, the Group's reportable segments were as follows:
Asia Pacific - ADLINK Technology Inc., ADLINK Technology Japan Corporation, ADLINK Technology Singapore Pte Ltd., ADLINK Technology Korea Ltd., ADLINK Technology India Private Limited (Incorporated in January 2024)
Mainland China - ADLINK Technology (China) Co., Ltd., Shanghai ADLINK Intelligence Technology Co., Ltd. (Incorporated in March 2024), and Dongguan Lingyao Electronic Technology Co., Ltd.
America - Ampro ADLINK Technology Inc. and ADLINK Technology Corporation
Europe - ADLINK Technology GmbH, ADLINK Edge Computing Limited, Zettascale Technology Limited, Zettascale Technology SARL and Zettascale Technology BV
Segment Revenue and Results
| For the Six Months Ended June 30, 2025 | ||||||
|---|---|---|---|---|---|---|
| Asia Pacific | Mainland China | America | Europe | Elimination | Total | |
| Sales | ||||||
| Revenue from external customers | $ 1,905,358 | $ 1,108,988 | $ 1,421,738 | $ 1,165,741 | $ - | $ 5,601,825 |
| Inter-segment revenue | 2,238,573 | 817,406 | - | 11,511 | (3,067,490) | - |
| Segment revenue | $ 4,143,931 | $ 1,926,394 | $ 1,421,738 | $ 1,177,252 | $ (3,067,490) | $ 5,601,825 |
| Interest income | $ 4,887 | $ 2,499 | $ 1,051 | $ 2,223 | $ - | $ 10,660 |
| Finance costs | 32,728 | 1,722 | - | 12,898 | - | 47,348 |
| Depreciation expense | 77,728 | 17,881 | 8,935 | 13,147 | - | 117,691 |
| Amortization expense | 37,809 | 2,254 | 102 | 48 | - | 40,213 |
| Segment income (loss) | $ 927,054 | $ 846 | $ (4,201) | $ (51,946) | $ - | 871,753 |
| Unallocated amounts: | ||||||
| Headquarters' administration costs and remuneration of directors | 798,650 | |||||
| Profit before income tax | $ 73,103 | |||||
| For the Six Months Ended June 30, 2024 | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| Asia Pacific | Mainland China | America | Europe | Elimination | Total | |
| Sales | ||||||
| Revenue from external customers | $ 1,495,436 | $ 754,841 | $ 1,153,940 | $ 1,171,129 | $ - | $ 4,575,346 |
| Inter-segment revenue | 1,993,226 | 755,325 | - | 15,222 | (2,763,773) | - |
| Segment revenue | $ 3,488,662 | $ 1,510,166 | $ 1,153,940 | $ 1,186,351 | $ (2,763,773) | $ 4,575,346 |
| Interest income | $ 3,811 | $ 2,055 | $ 1,659 | $ 2,865 | $ - | $ 10,390 |
| Finance costs | 30,555 | 7,311 | 5 | 12,833 | - | 50,704 |
| Depreciation expense | 82,162 | 20,872 | 9,325 | 11,623 | - | 123,982 |
| Amortization expense | 38,227 | 2,483 | 274 | 48 | - | 41,032 |
| Segment income (loss) | $ 837,527 | $ (121,114) | $ (13,551) | $ (107,876) | $ - | 594,986 |
| Unallocated amounts: | ||||||
| Headquarters' administration costs and remuneration of directors | 831,666 | |||||
| Loss before income tax | $ (236,680) |
- 44 -
TABLE 1
ADLINK TECHNOLOGY INC. AND SUBSIDIARIES
FINANCING PROVIDED TO OTHERS
FOR THE SIX MONTHS ENDED JUNE 30, 2025
(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)
| No. (Note 1) | Lender | Borrower | Financial Statement Account | Related Party | Highest Balance for the Period | Ending Balance | Actual Amount Borrowed | Interest Rate (%) | Nature of Financing (Note 2) | Business Transaction Amount | Requirement Reasons for Short-term Financing | Allowance for Impairment Loss | Collateral | Financing Limit for Each Borrower (Note 3) | Aggregate Financing Limit (Note 3) | Note | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Item | Value | ||||||||||||||||
| 0 | The Company | ADLINK Technology (China) Co., Ltd. | Other receivables | Y | $ 199,230 | $ 175,800 (US$ 6,000) | $ - | - | b | $ - | Operation requirement | $ - | - | $ - | $ 495,473 | $ 1,981,892 | Note 4 |
| 1 | ADLINK International Co., Ltd. | ADLINK Technology (China) Co., Ltd. | Other receivables | Y | 99,615 | 87,900 (US$ 3,000) | 87,900 | 2 | b | - | Operation requirement | - | - | - | 1,354,311 | 1,354,311 | Note 4 |
| 2 | Ampro ADLINK Technology Inc. | ADLINK Technology GmbH | Other receivables | Y | 66,410 | 58,600 (US$ 2,000) | 58,600 | 4 | b | - | Operation requirement | - | - | - | 565,770 | 565,770 | Note 4 |
Note 1: Fill in 0 for the Company, 1 for ADLINK International Co., Ltd., 2 for Ampro ADLINK Technology Inc.
Note 2: The nature of financing provided is specified below:
a. 1 for transactions.
b. 2 for short-term financing.
Note 3: The aggregate financing limit and financing limit for each borrower is specified below:
a. Transactions: The aggregate financing limit for each borrower shall not exceed 20% of the lender's net equity in the latest financial statements. Meanwhile, the financing limit for each borrower shall not exceed the number of transactions with each other in the most recent year. The above-mentioned transactions are measured at the higher of purchases and sales with each other.
b. Short-term financing: When the lender is the Company, the aggregate financing limit for each borrower shall not exceed 40% of the lender's net equity in the latest financial statements. Meanwhile, the financing limit for each borrower shall not exceed 10% of the lender's net equity in the latest financial statements.
c. When foreign borrower was held 100% of voting shares directly and indirectly by the Company, there is financing provided to others with each other or the Company. The aggregate financing limit and financing limit for each borrower both shall not exceed 70% of the lender's net equity in latest financial statements.
Note 4: It has been eliminated when preparing the consolidated financial statements.
TABLE 2
ADLINK TECHNOLOGY INC. AND SUBSIDIARIES
ENDORSEMENTS/GUARANTEES PROVIDED
FOR THE SIX MONTHS ENDED JUNE 30, 2025
(In Thousands of New Taiwan Dollars or Foreign Currency, Unless Stated Otherwise)
| No. (Note 1) | 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 Amount Borrowed | Amount Endorsed/ Guaranteed by Collateral | Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%) | Aggregate Endorsement/ Guarantee Limit (Note 4) | 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 | The Company | ADLINK Technology GmbH | |||||||||||
| ADLINK Technology (China) Co., Ltd. | a. and b. | $ 2,477,365 | $ 982,800 | $ 927,450 (EUR 27,000) | $ 528,990 | $ - | 18.72 | $ 2,477,365 | Y | - | - | ||
| a. and b. | 2,477,365 | 66,410 | 29,300 (US$ 1,000) | - | - | 0.59 | 2,477,365 | Y | - | Y |
Note 1: Fill in 0 for the Company.
Note 2: Relationships between the endorsement/guarantee and the Company are specified as follows:
a. Companies that have business dealings with the Company.
b. Companies in which the Company directly and indirectly holds more than 50% of the voting shares.
Note 3: The subsidiaries of the Company in which the Company directly or indirectly holds 100% of shares shall be capped at 50% of the net value of the Company's latest financial statements. Other companies shall be capped at 20% of the net value of the Company's latest financial statements.
Note 4: The total endorsement and guarantee amount shall be capped at 50% of the net value of the Company's latest financial statements.
TABLE 3
ADLINK TECHNOLOGY INC. AND SUBSIDIARIES
MARKETABLE SECURITIES HELD (EXCLUDING INVESTMENT IN SUBSIDIARIES AND ASSOCIATES)
JUNE 30, 2025
(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)
| Holding Company Name | Type and Name of Marketable Securities | Relationship with the Holding Company | Financial Statement Account | June 30, 2025 | Note | |||
|---|---|---|---|---|---|---|---|---|
| Shares/Units (Thousands) | Carrying Amount | Percentage of Ownership (%) | Fair Value (Note 2) | |||||
| The Company | Shares - ordinary shares | |||||||
| Netio Technologies Co., Ltd. | - | Financial assets at fair value through profit or loss | 385 | $ - | 15.00 | $ - | - | |
| Applied Green Light Taiwan, Inc. | - | 〃 | 143 | - | 3.33 | - | - | |
| ADLINK Technology (China) Co., Ltd. | Shares - ordinary shares | |||||||
| AutoCore Technology (Nanjing) Co., Ltd. | - | Financial assets at fair value through other comprehensive income | Note 3 | 80,730 | 3.95 | 80,730 | - | |
| JY Technology (Shanghai) | - | 〃 | 9,054 | 14,638 | 19.67 | 14,638 | Note 4 | |
| Ampro ADLINK Technology Inc. | Shares - convertible preference shares | |||||||
| Rover Robotics, Inc. | - | Financial assets at fair value through other comprehensive income | 500 | - | 9.89 | - | - |
Note 1: Marketable securities in this table is shares, bonds, mutual funds and securities derived from the mentioned above under the range of IFRS 9 "Financial Instruments".
Note 2: The fair value of open market value was calculated based on the closing price as of balance sheet date. In contrast, it was calculated based on the appropriate valuation techniques and inputs.
Note 3: It is a limited company so that no specific shares or units are disclosed.
Note 4: Please refer to the Note 12.
TABLE 4
ADLINK TECHNOLOGY INC. AND SUBSIDIARIES
TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL
FOR THE SIX MONTHS ENDED JUNE 30, 2025
(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)
| Buyer | Related Party | Relationship | Transaction Details | Abnormal Transaction | Notes/Accounts Receivable (Payable) | Note | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Purchase/Sale | Amount | % of Total | Payment Terms | Unit Price | Payment Terms | Ending Balance | % of Total | ||||
| The Company | ADLINK Technology Japan Corporation | Subsidiary | (Sale) | $ (238,386) | (6.17) | Net 120 days | $ - | - | $ 56,677 | 2.55 | Note |
| ADLINK Technology Japan Corporation | The Company | Parent company | Purchase | 238,386 | 97.32 | Net 120 days | - | - | (56,677) | (99.59) | Note |
| The Company | Ampro ADLINK Technology Inc. | Indirectly owned subsidiary | (Sale) | (1,118,360) | (28.92) | Net 60 days | - | - | 529,730 | 23.80 | Note |
| Ampro ADLINK Technology Inc. | The Company | Parent company | Purchase | 1,118,360 | 92.70 | Net 60 days | - | - | (529,730) | (95.45) | Note |
| The Company | ADLINK Technology GmbH | Indirectly owned subsidiary | (Sale) | (630,841) | (16.32) | Net 150 days | - | - | 674,612 | 30.30 | Note |
| ADLINK Technology GmbH | The Company | Parent company | Purchase | 630,841 | 88.48 | Net 150 days | - | - | (674,612) | (98.39) | Note |
| ADLINK Technology (China) Co., Ltd. | The Company | Parent company | (Sale) | (460,982) | (33.05) | Net 60 days | - | - | 224,609 | 30.59 | Note |
| The Company | ADLINK Technology (China) Co., Ltd. | Indirectly owned subsidiary | Purchase | 460,982 | 15.96 | Net 60 days | - | - | (224,609) | (16.55) | Note |
| ADLINK Technology (China) Co., Ltd. | Shanghai ADLINK Intelligence Technology Co., Ltd. | Fellow subsidiary | (Sale) | (300,842) | (21.57) | Net 90 days | - | - | 244,727 | 33.33 | Note |
| Shanghai ADLINK Intelligence Technology Co., Ltd. | ADLINK Technology (China) Co., Ltd. | Fellow subsidiary | Purchase | 300,842 | 69.26 | Net 90 days | - | - | (244,727) | (69.09) | Note |
Note: It has been eliminated when preparing the consolidated financial statements.
TABLE 5
ADLINK TECHNOLOGY INC. AND SUBSIDIARIES
RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL
JUNE 30, 2025
(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)
| Company Name | Related Party | Relationship | Ending Balance | Turnover Rate | Overdue | Amount Received in Subsequent Period (Note 1) | Allowance for Impairment Loss | Note | |
|---|---|---|---|---|---|---|---|---|---|
| Amount | Actions Taken | ||||||||
| The Company | Ampro ADLINK Technology Inc. | Indirectly owned subsidiary | Trade receivables $ 529,730 | ||||||
| Other receivables - | |||||||||
| $ 529,730 | 5.29 | $ - | - | $ 245,549 | $ - | Note 2 | |||
| ADLINK Technology GmbH | Indirectly owned subsidiary | Trade receivables $ 674,612 | |||||||
| Other receivables 434 | |||||||||
| $ 675,046 | 1.82 | $ - | - | $ 60,704 | $ - | Note 2 | |||
| ADLINK Technology (China) Co., Ltd. | Indirectly owned subsidiary | Trade receivables $ 131,980 | |||||||
| Other receivables 3,275 | |||||||||
| $ 135,255 | 0.81 | $ - | - | $ 16,367 | $ - | Note 2 | |||
| ADLINK Technology (China) Co., Ltd. | The Company | Parent company | Trade receivables $ 224,609 | ||||||
| Other receivables 332 | |||||||||
| $ 224,941 | 2.59 | $ - | - | $ 105,480 | $ - | Note 2 | |||
| Shanghai ADLINK Intelligence Technology Co., Ltd. | Same parent company | Trade receivables $ 244,727 | |||||||
| Other receivables 840 | |||||||||
| $ 245,567 | 2.09 | $ - | - | $ 99,056 | $ - | Note 2 |
Note 1: It was the subsequent amount received as of August 6, 2025.
Note 2: It has been eliminated when preparing the consolidated financial statements.
TABLE 6
ADLINK TECHNOLOGY INC. AND SUBSIDIARIES
INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT TRANSACTIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2025
(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)
| No. (Note 1) | Company Name | Counterparty | Relationship (Note 2) | Transaction Details | % of Total Sales or Assets (Note 3) | ||
|---|---|---|---|---|---|---|---|
| Financial Statement Accounts | Amount (Note 4) | Transaction Terms | |||||
| 0 | The Company | ADLINK Technology Singapore Pte Ltd. | a | Trade receivables | $ 11,109 | Based on regular terms | - |
| ADLINK Technology Singapore Pte Ltd. | a | Operating revenue | 42,392 | Based on regular terms | 1 | ||
| ADLINK Technology Japan Corporation | a | Trade receivables | 56,677 | Based on regular terms | - | ||
| ADLINK Technology Japan Corporation | a | Operating revenue | 238,386 | Based on regular terms | 4 | ||
| ADLINK Technology Korea Ltd. | a | Trade receivables | 25,344 | Based on regular terms | - | ||
| ADLINK Technology Korea Ltd. | a | Operating revenue | 47,415 | Based on regular terms | 1 | ||
| Ampro ADLINK Technology Inc. | a | Trade receivables | 529,730 | Based on regular terms | 4 | ||
| Ampro ADLINK Technology Inc. | a | Other payables | 20,094 | Based on regular terms | - | ||
| Ampro ADLINK Technology Inc. | a | Operating revenue | 1,118,360 | Based on regular terms | 20 | ||
| ADLINK Technology GmbH | a | Trade receivables | 674,612 | Based on regular terms | 5 | ||
| ADLINK Technology GmbH | a | Operating revenue | 630,841 | Based on regular terms | 11 | ||
| ADLINK Technology GmbH | a | R & D design expense | 16,320 | Based on regular terms | - | ||
| ADLINK Technology (China) Co., Ltd. | a | Trade receivables | 131,980 | Based on operating requirements | 1 | ||
| ADLINK Technology (China) Co., Ltd. | a | Operating revenue | 69,757 | Based on regular terms | 1 | ||
| ADLINK Technology (China) Co., Ltd. | a | Trade payables | 224,609 | Based on regular terms | 2 | ||
| ADLINK Technology (China) Co., Ltd. | a | Purchase | 460,982 | Based on regular terms | 8 | ||
| Dongguan Lingyao Electronic Technology Co., Ltd. | a | Trade payables | 10,632 | Based on regular terms | - | ||
| Dongguan Lingyao Electronic Technology Co., Ltd. | a | Purchase | 25,439 | Based on regular terms | - | ||
| Shanghai ADLINK Intelligence Technology Co., Ltd. | a | Operating revenue | 84,623 | Based on regular terms | 1 | ||
| Shanghai ADLINK Intelligence Technology Co., Ltd. | a | Trade receivables | 71,313 | Based on operating requirements | 1 | ||
| 1 | ADLINK International Co., Ltd. | ADLINK Technology (China) Co., Ltd. | c | Other receivables | 88,307 | Based on operating requirements | 1 |
| 2 | Ampro ADLINK Technology Inc. | ADLINK Technology GmbH | c | Other receivables | 59,977 | Based on operating requirements | - |
| 3 | ADLINK Technology (China) Co., Ltd. | Dongguan Lingyao Electronic Technology Co., Ltd. | c | Trade payables | 19,766 | Based on regular terms | - |
| Dongguan Lingyao Electronic Technology Co., Ltd. | c | Purchases | 32,714 | Based on regular terms | 1 | ||
| Shanghai ADLINK Intelligence Technology Co., Ltd. | c | Trade receivables | 244,727 | Based on regular terms | 2 | ||
| Shanghai ADLINK Intelligence Technology Co., Ltd. | c | Operating revenue | 300,842 | Based on regular terms | 5 | ||
| Shanghai ADLINK Intelligence Technology Co., Ltd. | c | Rental income | 10,449 | Based on regular terms | - | ||
| Shanghai ADLINK Intelligence Technology Co., Ltd. | c | Technical service expenses | 91,735 | Based on regular terms | 2 |
(Continued)
Note 1: Intercompany relationships should be specified as below:
a. Fill in 0 for the parent company.
b. Subsidiaries fill in the number from 1 respectively.
Note 2: Transactions with related parties are specified as below:
a. Parent company to subsidiary.
b. Subsidiary to parent company.
c. Between subsidiaries.
Note 3: According to the account of transaction details, the percentage was calculated of total consolidated assets or total operating revenue, respectively.
Note 4: Disclosed intercompany transactions were amounting to at least NT$10,000 thousand.
Note 5: It has been eliminated when preparing the consolidated financial statements.
(Concluded)
- 51 -
TABLE 7
ADLINK TECHNOLOGY INC. AND SUBSIDIARIES
INFORMATION ON INVESTEES
FOR THE SIX MONTHS ENDED JUNE 30, 2025
(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)
| Investor | Investor | Location | Main Businesses and Products | Original Investment Amount | Balance as of June 30, 2025 | Net Income (Loss) of the Investor | Share of Profit (Loss) | Note | |||
|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30, 2025 | December 31, 2024 | Shares | % | Carrying Amount | |||||||
| The Company | ADLINK International Co., Ltd. | Samsu | Investment activities | US$ 61,872 | US$ 61,872 | 61,872,494 | 100.00 | $ 1,830,419 | $(19,930) | $(19,930) | Subsidiary (Note 6) |
| ADLINK Technology Singapore Pte Ltd. | Singapore | Selling of industrial automatic control cards, industrial motherboards, etc. | SGD 659 | SGD 659 | 7,659,200 | 100.00 | 289,242 | (3,197) | (3,197) | Subsidiary (Note 6) | |
| ADLINK Technology Japan Corporation | Japan | Selling of industrial automatic control cards, industrial motherboards, etc. | US$ 4,200 | US$ 4,200 | |||||||
| ADLINK Technology Korea Ltd. | Korea | Selling of industrial automatic control cards, industrial motherboards, etc. | JPY 98,000 | JPY 98,000 | 1,960 | 100.00 | 94,043 | (7,645) | (7,645) | Subsidiary (Note 6) | |
| Zettascale Technology Cayman Limited | Cayman Islands | Investment activities | US$ 300 | US$ 300 | (Note 3) | 100.00 | 31,588 | 1,311 | 1,311 | Subsidiary (Note 6) | |
| ADLINK Edge Computing Limited | United Kingdom | Software development, authorization and service | GBP 9,050 | GBP 9,050 | 61,155,000 | 100.00 | 43,679 | (22,702) | (22,702) | Subsidiary (Note 6) | |
| JY Technology (Korea) | Korea | Selling of industrial automatic control cards, industrial motherboards, computers and peripherals, etc. | GBP 500 | GBP 500 | 500,000 | 100.00 | 7,098 | (1,344) | (1,344) | Subsidiary (Note 6) | |
| Farobot Technology Ltd. | Cayman Islands | Investment activities | US$ 300 | US$ 300 | 66,624 | 28.16 | 1,638 | (1,774) | (500) | Associate | |
| Farobot Technology Ltd. | Fayobot Inc. | Taiwan | Manufacturing and selling and developing software of autonomous mobile robots | NT$ 475,882 | NT$ 451,741 | 47,588,163 | 100.00 | 129,558 | (42,595) | - | Associate |
| ADLINK International Co., Ltd. | ADLINK Technology (HK) Co., Ltd. | Hong Kong | Investment activities | US$ 24,255 | US$ 24,255 | 24,255,369 | 100.00 | US$ 50,719 | US$ 27 | - | Indirectly owned subsidiary (Note 6) |
| Ampro ADLINK Technology Inc. | California, USA | Manufacturing and selling of industrial computers | US$ 20,789 | US$ 20,789 | 39,743,137 | 100.00 | US$ 36,040 | US$ (132) | - | Indirectly owned subsidiary (Note 6) | |
| ADLINK Technology Holding GmbH | Germany | Investment activities | EUR 12,609 | EUR 12,609 | 12,609,356 | 100.00 | US$ (24,456) | US$ (605) | - | Indirectly owned subsidiary (Note 6) | |
| ADLINK Technology Singapore Pte Ltd. | ADLINK Technology India Private Limited | India | Selling of industrial automatic control cards, industrial motherboards, etc. | INR 8,000 | INR 8,000 | 800,000 | 100.00 | SGD 146 | SGD 103 | - | Indirectly owned subsidiary (Notes 4 and 6) |
| ADLINK Intelligence Technology Co., Limited | Hong Kong | Investment activities | US$ 4,200 | US$ 4,200 | 4,200,000 | 100.00 | SGD 2,980 | SGD (50) | - | Indirectly owned subsidiary (Notes 5 and 6) | |
| Zettascale Technology Cayman Limited | Zettascale Technology Limited | United Kingdom | Software development, authorization and service | GBP 22,029 | GBP 22,029 | 36,584,052 | 69.50 | GBP 1,088 | GBP (791) | - | Indirectly owned subsidiary (Note 6) |
| ADLINK Technology Holding GmbH | ADLINK Technology GmbH | Germany | Manufacturing and selling of industrial computers | EUR 12,409 | EUR 12,409 | 750,000 | 100.00 | EUR (20,952) | EUR (554) | - | Indirectly owned subsidiary (Note 6) |
| Ampro ADLINK Technology Inc. | ADLINK Technology Corporation | Massachusetts, USA | Software authorization and service | US$ 12,701 | US$ 12,701 | 1,000 | 100.00 | US$ (619) | US$ 48 | - | Indirectly owned subsidiary (Note 6) |
| Zettascale Technology Limited | Zettascale Technology SARL | France | Software development, authorization and service | EUR 221 | EUR 221 | (Note 2) | 100.00 | EUR (2,348) | EUR (1,062) | - | Indirectly owned subsidiary (Note 6) |
| Zettascale Technology OperEplice B.V. | Netherlands | Software development | EUR 18 | EUR 18 | 180 | 100.00 | EUR 10 | EUR (1) | - | Indirectly owned subsidiary (Note 6) |
Note 1: Refer to Table 8 for information on investments in Mainland China.
Note 2: No number of shares were available on Zettascale Technology SARL's license except for its original investment amount.
Note 3: It is a limited company so that there is no record of the number of shares.
Note 4: ADLINK Technology India Private Limited was incorporated in January 2024.
Note 5: ADLINK Intelligence Technology Co., Limited was incorporated in May 2024.
Note 6: It has been eliminated when preparing the consolidated financial statements.
TABLE 8
ADLINK TECHNOLOGY INC. AND SUBSIDIARIES
INFORMATION ON INVESTMENTS IN MAINLAND CHINA
FOR THE SIX MONTHS ENDED JUNE 30, 2025
(In Thousands of New Taiwan Dollars or Foreign Currency, Unless Stated Otherwise)
| Investee Company | Main Businesses and Products | Paid-in Capital | Method of Investment (Note 1) | Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2025 | Remittance of Funds | Accumulated Outward Remittance for Investment from Taiwan as of June 30, 2025 | Net Income (Loss) of the Investee | % Ownership of Direct or Indirect Investment | Investment Gain (Loss) (Note 2) | Carrying Amount as of June 30, 2025 (Note 2) | Accumulated Repatriation of Investment Income as of June 30, 2025 | Note | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Outward | Inward | ||||||||||||
| Shanghai ADLINK Intelligence Technology Co., Ltd. | Selling of industrial automatic control cards, industrial motherboards, etc. | US$ 4,200 (NT$ 123,060) | b. ADLINK Intelligence Technology Co., Limited | US$ 4,200 (NT$ 123,060) | $ - | $ - | US$ 4,200 (NT$ 123,060) | CNY (272) (NT$ (1,205)) | 100.00 | CNY (272) (NT$ (1,205)) | CNY 16,739 (NT$ 68,463) | $ - | Note 9 |
| ADLINK Technology (China) Co., Ltd. | Manufacturing and selling of industrial automatic control cards, industrial motherboards, etc. | US$ 26,670 (NT$ 781,431) | b. ADLINK Technology (HK) Co., Ltd. | HK$ 7,283 US$ 22,671 (NT$ 691,426) (Notes 5 and 7) | - | - | HK$ 7,283 US$ 22,671 (NT$ 691,426) (Notes 5 and 7) | CNY 203 (NT$ 899) | 100.00 | CNY 203 (NT$ 899) | CNY 361,635 (NT$ 1,479,087) | - | Note 9 |
| Dongguan Lingyao Electronic Technology Co., Ltd. | Selling of electronic parts | CNY 2,000 (NT$ 8,180) | c. ADLINK Technology (China) Co., Ltd. | (Note 6) | - | - | (Note 6) | CNY 1,091 (NT$ 4,833) | 100.00 | CNY 1,091 (NT$ 4,833) | CNY 11,999 (NT$ 49,076) | - | Note 9 |
| JY Technology (Shanghai) | Selling of industrial automatic control cards, industrial motherboards, etc. | CNY 49,892 (NT$ 204,058) | c. ADLINK Technology (China) Co., Ltd. | (Note 6) | - | - | (Note 6) | CNY (4,355) (NT$ (19,293)) | - | CNY (790) (3,623)) | - | - | Note 9 |
| Accumulated Outward Remittance for Investments in Mainland China as of June 30, 2025 | Investment Amounts Authorized by the Investment Commission, MOKA | Upper Limit on the Amount of Investments Stipulated by the Investment Commission, MOKA | |||||||||||
| --- | --- | --- | |||||||||||
| $814,486 (HK$7,283, US$26,871) | $900,944 (HK$7,305, US$29,819) | $2,972,837 (Note 3) |
Note 1: Methods of investment have the following type:
a. Direct investment in mainland China.
b. Indirect investment in mainland China through an existing company in a third region.
c. Other - direct investment in subsidiaries of mainland China.
Note 2: Except for ADLINK Technology (China) Co., Ltd., and Shanghai ADLINK Intelligence Technology Co., Ltd., the others are all based on financial statements that have not been reviewed.
Note 3: Calculated based on 60% of the net equity of the latest financial statements of the Company as of June 30, 2025.
Note 4: Investment gain (loss) was translated into the New Taiwan dollar at the average rate of HK$1=NT$4.09, US$1=NT$31.86, RMB1=NT$4.43 for the six months ended June 30, 2025; the others are translated into the New Taiwan dollars at the rates of HK$1=NT$3.73, US$1=NT$29.30, RMB1=NT$4.09 prevailing on June 30, 2025.
Note 5: Excluded the investment amount of HK$22 thousand in ADLINK Technology (China) Co., Ltd. and US$148 thousand in ADLINK Technology (China) Co., Ltd. from ADLINK Technology (HK) Co., Ltd.'s capital surplus.
Note 6: Excluded ADLINK Technology (China) Co., Ltd.'s investment amount, RMB2,000 thousand in Dongguan Lingyao Electronic Technology Co., Ltd. and RMB15,000 thousand in JY Technology (Shanghai), respectively.
Note 7: ADLINK Technology (Shenzhen) Co., Ltd. was liquidated in November 2020. ADLINK Technology (HK) Co., Ltd. withdrew the inward investment of US$2,850 thousand, which included the amounts of accumulated outward remittance of investment from Taiwan of HK$7,283 thousand and US$298 thousand. The Company indirectly invested in ADLINK Technology (China) Co., Ltd. through ADLINK Technology (HK) Co., Ltd.
Note 8: The Group reclassified JY Technology (Shanghai) from investments accounted for using the equity method to FVOCI in March 2025.
Note 9: It has been eliminated when preparing the consolidated financial statements.