Stock No. 2380

AVISION INC. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND
INDEPENDENT AUDITORS' REPORT
YEARS ENDED DECEMBER 31, 2025 AND 2024

Corporate address: No.20, Yanxin 1st Rd., Hsinchu Science Park, Hsinchu County
Tel: (03)578-2388

For the convenience of readers and for information purpose only, the auditors' report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors' report and financial statements shall prevail.

TABLE OF CONTENT

Contents	Page
1. Declaration of Consolidated Financial Statements of Affiliated Enterprises	1
2. Independent Auditors’ Report	2-7
3. Consolidated Balance Sheets	8-9
4. Consolidated Statements of Comprehensive Income	10
5. Consolidated Statements of Changes in Equity	11
6. Consolidated Statements of Cash Flows	12-13
7. Notes to the Consolidated Financial Statements	14-78
(1) History and Organization	14
(2) The Date of Authorisation for Issuance of the Financial Statements and Procedures for Authorisation	14
(3) Application of New Standards, Amendments and Interpretations	14-15
(4) Summary of Material Accounting Policies	15-26
(5) Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty	26-27
(6) Details of Significant Accounts	27-52
(7) Related Party Transactions	52
(8) Pledged Assets	52
(9) Significant Contingent Liabilities and Unrecognised Contract Commitments	53
(10) Significant Disaster Loss	53
(11) Significant Events after the Reporting Period	53
(12) Others	53-66
(13) Supplementary Disclosures	66-79
A. Significant transactions information
B. Information on investees
C. Information on investments in Mainland China
(14) Segment Information	67-69

AVISION INC.
Declaration of Consolidated Financial Statements of Affiliated Enterprises

It is hereby declared that for the year ended December 31, 2025, pursuant to “Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises,” the companies that are required to be included in the consolidated financial statements of affiliates, are the same as the companies required to be included in the consolidated financial statements of parent and subsidiary companies under International Financial Reporting Standard No. 10. Additionally, as relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the afore-mentioned consolidated financial statements of parent and subsidiary companies, it shall not be required to prepare separate consolidated financial statements of affiliates.

AVISION INC.
Representative: SHENG, SHAO-LAN
March 26, 2026

建智聯合會計師事務所

EnWise CPAs & Co.

Suite 1, 8th Fl., No. 130, Taiyuan N. Rd. Taichung City 404

Tel:(04)2296-6234 Fax: (04)2296-0607

agn INTERNATIONAL

INDEPENDENT AUDITORS' REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of AVISION INC.

Opinion

We have audited the accompanying consolidated balance sheets of AVISION INC. and its subsidiaries (the "Group") as at December 31, 2025, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of material accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2025, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the Financial Supervisory Commission.

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the Group in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of matter – Significant event after the reporting period – Approval by competent authority for capital reduction to cover losses

As stated in Notes 12(1) and 6(23) to these financial statements, in order to improve on their financial structure in the Group, the Annual General Meeting of Shareholders resolved, on June 26, 2025, to carry out a capital reduction, which was also approved by the competent authority on March 6, 2026. This reduced the capital by about 72.34%, with paid-in capital amount decreased from $2.169 billion to 0.6 billion. The Chairman of the Board has set the basis date at March 9, 2026 for the capital reduction; the corresponding amount of reduction at $1.569 billion will be equally set off against accumulated losses in the financial statements for the first quarter of 2026. Additionally, since the date of approval of the financial statements was after the basis date for capital reduction, earnings (loss) per share have been restated. After the restatement, earnings per share for the year ended December 31, 2025 were $0.72, while the loss per share for the year ended December 31, 2024 was restated to $7.01. We have not modified our audit opinion as a result of these adjustments.

建智聯合會計師事務所

EnWise CPAs & Co.

Suite 1, 8th Fl., No. 130, Taiyuan N. Rd. Taichung City 404

Tel:(04)2296-6234 Fax: (04)2296-0607

agn INTERNATIONAL

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters. Except as explained in the abovementioned paragraph, the key audit matters in relation to the consolidated financial statements for the year ended December 31, 2025 are stated as follows:

A. Recognition of operating revenues

Description

Management faces pressure to meet operating targets due to market size, market competition, and potential asset impairment assessments that may affect revenue performance. Furthermore, revenue in the Group’s industry is susceptible to fluctuations caused by various factors, including market supply and demand conditions; therefore, this has been identified as a key audit matter by the auditors.

How our audit addressed the matter

We performed the following audit procedures in responding to the above key audit matter:

Tested the effectiveness of the design and implementation of internal controls over the sales and payment collection cycle to assess whether revenue was recognized appropriately.
Analyzed sales to the Company’s top ten customers from the previous period and compare them with the current period, and assessed the reasonableness of the differences.
Performed sales revenue transaction tests on the top ten new customers in the current period, and verified whether the payees and reversal entries matched the sales recipients.
Analyzed significant or unexpected changes and trends; compared trends in sales revenue from and returns of goods sold between the prior period and the current period; compared trends in cost of sales and gross profit between the prior period and the current period; and analyzed trends in shipment volumes between the prior period and the current period.
Found out whether there have been any significant changes in revenue or any material sales returns or allowances during the period immediately before and after the financial reporting date, and analyzed the reasons for such changes.

建智聯合會計師事務所

EnWise CPAs & Co.

Suite 1, 8th FL, No. 130, Taiyuan N. Rd. Taichung City 404

Tel:(04)2296-6234 Fax: (04)2296-0607

agn

INTERNATIONAL

B. Impairment assessment of property and plant

Description

The Group’s property and plant amounted to $254,449 thousand, constituting 10.2% of the total assets as at December 31, 2025. Please refer to Note 5(1) for accounting estimates and assumption uncertainty related to impairment assessment of property and plant and Note 6(5) for details of property and plant. The Group assessed whether there was any impairment on property and plant utilising the recoverable amounts. In accordance with IAS 36, the recoverable amount of assets is the higher of fair value less costs of disposal and value in use. As the Group’s amount of property and plant is material, we consider the impairment assessment of property and plant as a key audit matter.

How our audit addressed the matter

We performed the following audit procedures in responding to the above key audit matter:

Discussed the estimation procedures of future cash flows with the management.
Assessed the reasonableness of the estimation basis used by the management to estimate fair value less costs of disposal, including comparing surrounding market quoted price (transaction price) of the assets, assessing and verifying the reasonableness and reliability of market price information.

C. Assessment of allowance for inventory valuation loss

Description

The Group mainly manufactures and sells multi-function peripherals, document scanners and network peripherals. The Group’s inventories and allowance for valuation loss are $708,763 thousand and $99,720 thousand as at December 31, 2025, respectively. Due to the rapid technology innovation and the paperless trend in the market for the development of environmental protection, energy saving and carbon reduction, these inventories face a higher risk of incurring loss on decline in market value or obsolescence. Please refer to Note 4(11) for accounting policies on inventory valuation and Note 5(2) for accounting estimates and assumption uncertainty related to assessment of allowance for inventory valuation loss and Note 6(4) for details of inventories. Inventories of the Group are stated at the lower of cost and net realisable value. Given that the amount and items of the Group’s inventories are significant and numerous and the management must determine the net realisable value of inventories on balance sheet date using judgements and estimates, we consider the assessment of allowance for inventory valuation loss a key audit matter.

How our audit addressed the matter

We performed the following audit procedures in responding to the above key audit matter:

Assessed the consistency of provision policies and reasonableness of procedures used for allowance for inventory valuation loss.
Reviewed reports related to inventory aging, analyzed changes in inventory aging, and assessed whether subsequent measurements of inventory have been addressed in accordance with the Group’s accounting policies.

建智聯合會計師事務所

EnWise CPAs & Co.

Suite 1, 8th Fl., No. 130, Taiyuan N. Rd. Taichung City 404

Tel:(04)2296-6234 Fax: (04)2296-0607

agn INTERNATIONAL

Reviewed the appropriateness of estimation basis used for net realisable value of inventories and discussed with management and verified the supporting documents obtained to assess the reasonableness of allowance for valuation loss determined by the management.

Responsibilities of management and those charged with governance for 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 the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the Financial Supervisory Commission, and for such internal controls as management determines are necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance, including the audit committee, are responsible for overseeing the Group's financial reporting process.

Auditors' responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

建智聯合會計師事務所

EnWise CPAs & Co.

Suite 1, 8th Fl., No. 130, Taiyuan N. Rd. Taichung City 404

Tel:(04)2296-6234 Fax: (04)2296-0607

agn

INTERNATIONAL

As part of an audit in accordance with the Standard on Auditing of the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

建智聯合會計師事務所

EnWise CPAs & Co.

Suite 1, 8th FL, No. 130, Taiyuan N. Rd. Taichung City 404

Tel:(04)2296-6234 Fax: (04)2296-0607

agn

INTERNATIONAL

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, inextremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Others – the financial statements for prior period were audited by other CPAs

The consolidated financial statements of AVISION INC. for the year ended December 31, 2024 was audited by other CPAs, who also, on March 31, 2025, expressed an unmodified opinion with a paragraph pertaining to a material uncertainty about the Group’s ability to continue as a going concern.

Others–parent company only financial statements

We have audited and express an unmodified opinion with emphasis of matter paragraphs or paragraphs pertaining to other matters on the parent company only financial statements of AVISION INC. as at and for the years ended December 31, 2025.

Tony Liao, CPA
EnWise CPAs & Co.
Financial Supervisory Commission R.O.C.
Authorization Ref. (102)
Jin-Guan-Zheng-Shen -Zi No.1020054253

Kaplan Chen, CPA
EnWise CPAs & Co.
Securities and Futures Bureau, FSC
Authorization Ref. (88) Tai-Cai-Zheng (6)
No.55000

March 26, 2026

AVISION INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
YEARS ENDED DECEMBER 31, 2025 AND 2024

Expressed in thousands of NTD

Assets			December 31, 2025		December 31, 2024
	Item	Notes	Amount	%	Amount	%
11XX	Current assets
1100	Cash and cash equivalents	6	$ 561,806	22.5	$ 353,928	19.0
1136	Current financial assets at amortised co	8	7,000	0.3	7,000	0.4
1170	Accounts receivable, net	6	452,897	18.2	222,682	11.9
1200	Other receivables		11,832	0.5	13,945	0.7
130x	Inventories	6, 8	609,043	24.5	571,768	30.7
1410	Prepayments		45,774	1.8	43,478	2.3
1470	Other current assets	8	3,612	0.1	8	—
11xx	Total current assets		1,691,964	67.9	1,212,809	65.0
15XX	Non-current assets
1517	Non-current financial assets at fair valu	6	162,177	6.5	44,591	2.4
	through other comprehensive income
1600	Property, plant and equipment	6, 8	397,315	15.9	426,932	22.9
1755	Right-of-use assets, net	6, 8	215,501	8.6	154,400	8.3
1780	Intangible assets		11,650	0.5	18,486	1.0
1840	Deferred income tax assets		—	—	—	—
1920	Guarantee deposits paid	8	10,616	0.4	7,337	0.4
1990	Other non-current assets	6	3,872	0.2	286	—
15xx	Total non-current assets		801,131	32.1	652,032	35.0
	Total assets		$ 2,493,095	100.0	$ 1,864,841	100.0

(to be continued)

(Continued)

AVISION INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

YEARS ENDED DECEMBER 31, 2025 AND 2024

Expressed in thousands of NTD

Liabilities and Equity			December 31, 2025		December 31, 2024
	Item	Notes	Amount	%	Amount	%
21XX	Current liabilities
2100	Short-term borrowings	6, 8	$ 853,567	34.2	$ 703,888	37.8
2130	Current contract liabilities	6	21,594	0.9	11,541	0.6
2150	Notes payable		130	—	35,824	1.9
2170	Accounts payable		564,397	22.6	275,951	14.8
2200	Other payables	6	155,672	6.3	220,337	11.8
2250	Provisions-current		18,431	0.7	26,797	1.4
2280	Current lease liabilities		22,723	0.9	21,901	1.2
2320	Long-term borrowings, current portio	6, 8	15,776	0.6	21,038	1.1
2399	Other current liabilities		8,985	0.4	3,020	0.2
21xx	Total current liabilities		1,661,275	66.6	1,320,297	70.8
25XX	Non-current liabilities
2540	Long-term borrowings	6, 8	8,119	0.3	11,494	0.6
2570	Deferred income tax liabilities		—	—	—	—
2580	Non-current lease liabilities		193,327	7.8	133,848	7.2
2600	Other non-current liabilities		69,861	2.8	19,509	1.1
25xx	Total non-current liabilities		271,307	10.9	164,851	8.9
	Total liabilities		1,932,582	77.5	1,485,148	79.7
31XX	Equity attributable to owners of parent
3110	Share capital - common stock	6	2,169,341	87.0	2,169,341	116.3
3200	Capital surplus	6	109,311	4.4	107,438	5.8
3300	Retained earnings	6
3320	Special reserve		5,836	0.2	5,836	0.3
3350	Unappropriated earnings (accumulated deficit)		(1,688,823)	(67.7)	(1,741,948)	(93.4)
3400	Other equity	6	(30,233)	(1.2)	(155,861)	(8.4)
3500	Treasury stocks	6	(6,669)	(0.3)	(6,669)	(0.4)
31xx	Total equity attributable to owners of parent		558,763	22.4	378,137	20.2
36xx	Non-controlling interest		1,750	0.1	1,556	0.1
3xxx	Total equity		560,513	22.5	379,693	20.3
3x2x	Total liabilities and equity		$ 2,493,095	100.0	$ 1,864,841	100.0

(Please refer to the accompanying Notes to the Consolidated Financial Report)

Chairman: SHENG, SHAO-LAN

Manager: SHENG, SHAO-LAN

Chief Accountant: LU, KUAN-YI

AVISION INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2025 AND 2024

	Item	Notes	Expressed in thousands of NTD, except for loss per share
			Year ended Dec. 31, 2025		Year ended Dec. 31, 2024
			Amount	%	Amount	%
4000	Operating revenue, net	6	$ 2,894,375	100.0	$ 2,547,627	100.0
5000	Operating costs	6	2,010,515	69.5	2,225,464	87.4
5950	Gross profit		883,860	30.5	322,163	12.6
	Operating expenses
6100	Selling and marketing expenses		148,883	5.1	118,977	4.7
6200	General and administrative expenses		279,725	9.7	215,848	8.5
6300	Research and development expenses		389,724	13.4	393,242	15.4
6450	Expected credit loss(gain)	6	2,503	0.1	(24,362)	(1.0)
6000	Total operating expenses		820,835	28.3	703,705	27.6
6900	Operating profit (loss)		63,025	2.2	(381,542)	(15.0)
	Non-operating income and expenses
7100	Interest income	6	1,731	0.1	2,620	0.1
7010	Other income	6	23,640	0.8	12,186	0.5
7020	Other gains and losses	6	(1,130)	(0.1)	(4,657)	(0.2)
7050	Finance costs	6	(26,187)	(0.9)	(27,220)	(1.1)
7000	Total non-operating income and expenses		(1,946)	(0.1)	(17,071)	(0.7)
7900	Profit (loss) before tax		61,079	2.1	(398,613)	(15.7)
7950	Income tax expense	6	17,929	0.6	27,818	1.0
8000	Net income (loss) from continuing operations for current period		43,150	1.5	(426,431)	(16.7)
8100	Profit and loss from discontinued operations		—	—	—	—
8200	Profit (Loss) for the year		43,150	1.5	(426,431)	(16.7)
	Other comprehensive income (loss):
8310	Item that will not be reclassified to profit or loss:
8311	Remeasurements of defined	6	10,182	0.4	18,316	0.7
	Unrealised loss from
8316	equity instruments measured at		116,705	4.0	(33,873)	(1.3)
	value through other comprehensive	6
	Income
8310	Total items that will not be reclassified		126,887	4.4	(15,557)	(0.6)
	to profit or loss
8360	Items that may be reclassified to profit or loss:
8361	Financial statements translation	6	8,910	0.3	15,361	0.6
	differences of foreign operations
8360	Total items that may be reclassified to profit or loss		8,910	0.3	15,361	0.6
8300	Total other comprehensive income or loss, net of tax		135,797	4.7	(196)	—
8500	Total comprehensive income or loss for the year		$ 178,947	6.2	$ (426,627)	(16.7)
8600	Loss, attributable to:
8610	Owners of the parent		$ 42,943	1.5	$ (420,178)	(16.5)
8620	Non-controlling interest		207	—	(6,253)	(0.2)
			$ 43,150	1.5	$ (426,431)	(16.7)
8700	Comprehensive loss attributable to:
8710	Owners of the parent		$ 178,753	6.2	$ (422,552)	(16.6)
8720	Non-controlling interest		194	—	(4,075)	(0.1)
			$ 178,947	6.2	$ (426,627)	(16.7)
	Earnings (loss) per share (retrospective) :	6
9750	Basic earnings (loss) per share		$	0.72	$	(7.01)
9850	Diluted earnings (loss) per share		$	0.72	$	(7.01)

(Please refer to the accompanying Notes to the Consolidated Financial Report)

Chairman: SHENG, SHAO-LAN

Manager: SHENG, SHAO-LAN

Chief Accountant: LU, KUAN-YI

AVISION INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
YEARS ENDED DECEMBER 31, 2025 AND 2024

Expressed in thousands of NTD

Item	Share capital - common stock	Additional paid-in capital	Retained earnings		Other equity interest		Treasury stocks	Total	Non-controlling interest	Total equity
			Special reserve	Unappropriated earnings (accumulated deficit)	Financial statements translation differences of foreign	Unrealised losses from financial assets measured at fair value through
Balance at January 1, 2024	$ 2,169,341	$ 102,026	$ 5,836	$ (1,337,746)	$ 43,225	$ (180,736)	$ (6,669)	$ 795,277	$ 3,380	$ 798,657
Loss for the year	—	—	—	(420,178)	—	—	—	(420,178)	(6,253)	(426,431)
Other comprehensive income (loss) for the year	—	—	—	18,316	13,183	(33,873)	—	(2,374)	2,178	(196)
Share-based payments	—	5,412	—	—	—	—	—	5,412	—	5,412
Changes not based on shareholding ratio	—	—	—	—	—	—	—	—	—	—
Disposals of financial assets measured at fair value through other comprehensive income	—	—	—	(2,340)	—	2,340	—	—	—	—
Transactions with non-controlling interests	—	—	—	—	—	—	—	—	2,251	2,251
Balance at January 1, 2025	$ 2,169,341	$ 107,438	$ 5,836	$ (1,741,948)	$ 56,408	$ (212,269)	$ (6,669)	$ 378,137	$ 1,556	$ 379,693
Profit (Loss) for the year	—	—	—	42,943	—	—	—	42,943	207	43,150
Other comprehensive income (loss) for the year	—	—	—	10,182	8,923	116,705	—	135,810	(13)	135,797
Changes in other capital reserves	—	1	—	—	—	—	—	1	—	1
Cost of share-based payments	—	1,872	—	—	—	—	—	1,872	—	1,872
Balance at December 31, 2025	$ 2,169,341	$ 109,311	$ 5,836	$ (1,688,823)	$ 65,331	$ (95,564)	$ (6,669)	$ 558,763	$ 1,750	$ 560,513

(Please refer to the accompanying Notes to consolidated financial statements)

Chairman: SHENG, SHAO-LAN
Manager: SHENG, SHAO-LAN
Chief Accountant : LU, KUAN-YI

AVISION INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS of CASH FLOWS
YEARS ENDED DECEMBER 31, 2025 AND 2024

Expressed in thousands of NTD

Item	Year ended Dec. 31, 2025	Year ended Dec. 31, 2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Profit (loss) before tax	$ 61,079	$ (398,613)
Adjustments:
Income/expenses that do not affect cash flow
Depreciation expense	107,439	104,617
Amortisation expense	8,777	22,158
Expected credit (gain) loss	2,503	(24,362)
Interest expense	26,187	27,220
Interest income	(1,731)	(2,620)
Costs of share-based payments	1,872	5,412
Gain on disposal of property, plant and equipment	(136)	(352)
Total adjustments	144,911	132,073
Changes in operating assets and liabilities
Changes in operating assets
Decrease (increase) in notes receivable	–	4
Decrease (increase) in accounts receivable	(234,162)	226,436
Decrease (increase) in other receivables	2,113	26,288
Decrease (increase) in inventories	(37,836)	154,499
Decrease (increase) in prepayments	(2,210)	19,485
Decrease (increase) in other current assets	(3,604)	(1)
Total changes in operating assets	(275,699)	426,711
Changes in operating liabilities
Increase (decrease) in contract liabilities – Current	6,647	(16,747)
Increase (decrease) in notes payable	(35,694)	35,634
Increase (decrease) in accounts payable	289,631	(87,989)
Increase (decrease) in payables	5,096	29,718
Increase (decrease) in provisions - Current	(8,366)	(1,455)
Increase (decrease) in other current liabilities	6,165	(6,530)
Net defined benefit liabilities – Non-current	(11,524)	(11,618)
Total changes in operating liabilities	251,955	(58,987)
Total changes in operating assets and liabilities	(23,744)	367,724
Net cash flows from operating activities	182,246	101,184
Interest received	1,731	2,620
Interest paid	(26,187)	(27,220)
Income taxes refunded (paid)	(17,929)	(4,331)
Net cash flows from operating activities	139,861	72,253

(Continued)

(Continued)
Expressed in thousands of NTD

AVISION INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 AND 2024

Item	Year ended Dec. 31, 2025	Year ended Dec. 31, 2024
CASH FLOWS FROM OPERATING ACTIVITIES
Acquisition of property, plant and equipment	(52,863)	(59,644)
Proceeds from disposal of property, plant and equipment	309	2,141
Decrease (increase) in guarantee deposits paid	(3,279)	7,937
Acquisition of intangible assets	(1,941)	(11,098)
Decrease (increase) in other non-current assets	(454)	—
Net cash flows used in financing activities	(58,228)	(60,664)
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (decrease) in short-term borrowings	149,679	(80,216)
Increase (decrease) in short-term notes and bills payable	—	(25,000)
Increase (decrease) in guarantee deposits received	(118)	(313)
Increase (decrease) in long-term borrowings	(8,637)	(46,470)
Increase (decrease) in principals of lease liabilities	(29,767)	(31,858)
Other financing activities	1	—
Net cash flows used in financing activities	111,158	(183,857)
Effect of exchange rate change on cash and cash equivalents	15,087	20,308
Net (decrease) increase in cash and cash equivalents	207,878	(151,960)
Cash and cash equivalents at beginning of year	353,928	505,888
Cash and cash equivalents at end of year	$ 561,806	$ 353,928

(Please refer to the accompanying Notes to consolidated financial statements)

Chairman: SHENG, SHAO-LAN
Manager: SHENG, SHAO-LAN
Chief Accountant: LU,KUAN-YI

AVISION INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

In thousands of NT dollars
(except as otherwise indicated)

History and Organization

AVISION INC. (the “Company”) was incorporated as a company limited by shares under the provisions of the Company Act of the Republic of China (R.O.C.). The Company and its subsidiaries (collectively referred herein as the “Group”) are primarily engaged in the development and manufacture of digital office equipment (multi-function peripherals, document scanners and network peripherals).

The Date of Authorisation for Issuance of the Financial Statements and Procedures for Authorisation

These consolidated financial statements were authorised for issuance by the Board of Directors on March 26, 2026

Application of New Standards, Amendments and Interpretations

(1) The Group has adopted the International Financial Reporting Standards (“IFRS®”) Accounting Standards that came into effect as endorsed by the Financial Supervisory Commission (“FSC”); new standards, interpretations and amendments thereof are as follows:

New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board (“IASB”)
Amendments to IAS 21, ‘Lack of exchangeability’	January 1, 2025
The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.
New Standards, Interpretations and Amendments	Effective date by IASB
Specific provisions of Amendments to IFRS 9 and IFRS 7, ‘Amendments to the classification and measurement of financial instruments’	January 1, 2026
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 naturedependent electricity’	January 1, 2026
Annual Improvements to IFRS Accounting Standards—Volume 11	January 1, 2026
IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendment to IFRS 17, ‘Initial application of IFRS 17 and IFRS 9 – comparative information’	January 1, 2023

(2) New standards, interpretations and amendments issued by IASB but not yet included in the IFRS Accounting Standards as endorsed by the FSC are as follows:

The above standards and interpretations have no significant impact to the Group's financial condition and financial performance based on the Group's assessment.

(3) IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the IFRS Accounting Standards as endorsed by the FSC are as follows:

New Standards, Interpretations and Amendments	Effective date by IASB
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

Except for the following, the above standards and interpretations have no significant impact to the Group's financial condition and financial performance based on the Group's assessment:

IFRS 18, ‘Presentation and disclosure in financial statements’

IFRS 18, ‘Presentation and disclosure in financial statements’ replaces IAS 1. The standard introduces a defined structure of the statement of profit or loss, disclosure requirements related to management-defined performance measures, and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes.

Summary of Material Accounting Policies

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

The consolidated financial statements of the Group have been prepared in accordance with the "Regulations Governing the Preparation of Financial Reports by Securities Issuers", International Financial Reporting Standards, International Accounting Standards, IFRIC® Interpretations, and SIC® Interpretations that came into effect as endorsed by the FSC (collectively referred herein as the "IFRSs").

(2) Basis of preparation

A. Except for the following items, the consolidated financial statements have been prepared under the historical cost convention:

(a) Financial assets at fair value through other comprehensive income.

(b) Defined benefit liabilities recognised based on the net amount of pension fund assets less present value of defined benefit obligation.

B. The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(3) Basis of consolidation

A. Basis for preparation of consolidated financial statements

(a) All subsidiaries are included in the Group's consolidated financial statements. Subsidiaries are all entities (including structured entities) controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.

(b) Inter-company transactions, balances and unrealised gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

(c) Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results in the noncontrolling interests having a deficit balance.

(d) Changes in a parent's ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity.

(e) When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognised in profit or loss. All amounts previously recognised in other comprehensive income in relation to the subsidiary are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or losses previously recognised in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

B. Subsidiaries included in the consolidated financial statements:

Name of investor	Name of subsidiary	Main business activities	Ownership (%)
			2025/12/31	2024/12/31
Avision Inc.	Avision International Inc.	General Investment	100	100
Avision International Inc.	Fortune Investments Ltd.	General Investment	100	100
Fortune Investments Ltd.	Avision (Suzhou) Co., Ltd.	Manufacture and sale of scanners and multifunction printers	100	100
Fortune Investments Ltd.	Avision Digital Office Equipment (Shanghai)	International Trade Career	100	100
Avision (Suzhou) Co., Ltd.	Trading Co., Ltd. Suzhou Hongxin Microelectronics Technology Co., Ltd.	Testing and sale of chip products	84.61	84.61
Avision Inc.	Quantum Investment Co., Ltd.	General investment	100	100
Quantum Investment Co., Ltd.	Avision Europe GmbH	Sale and repairing services of scanners	100	100
Avision Inc.	Avision Development Inc.	General Investment	100	100
Avision Development Inc.	Sunglow International Inc.	General Investment	100	100
Sunglow International Inc.	Avision Labs, Inc.	Sale and repairing services of scanners	96.39	96.39
Avision Inc.	Avision Brasil Ltda.	Sale and repairing services of scanners	99	99

C. Subsidiaries not included in the consolidated financial statements: None.
D. Adjustments for subsidiaries with different balance sheet dates: None.
E. Significant restrictions: None.
F. Subsidiaries that have non-controlling interests that are material to the Group: The non-controlling interest is small.

(4) Foreign currency translation

Each of the Group's entities included in the consolidated financial statements is measured using the currency of the primary economic environment in which the entity operates (the "functional currency"). The consolidated financial statements are presented in "New Taiwan dollars", which is the Company's functional and the Group's presentation currency.

A. Foreign currency transactions and balances

(a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in profit or loss in the period in which they arise.
(b) Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognised in profit or loss.
(c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in other comprehensive income. However, nonmonetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.
(d) All foreign exchange gains and losses are presented in the statement of comprehensive income within 'other gains and losses'.

B. Translation of foreign operations

(a) The operating results and financial position of all the group entities, associates and joint arrangements that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

i. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;
ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and
iii. All resulting exchange differences are recognised in other comprehensive income.

(b) When the foreign operation partially disposed of or sold is an associate or joint arrangement, exchange differences that were recorded in other comprehensive income are proportionately reclassified to profit or loss as part of the gain or loss on sale. Even when the Group retains partial interest in the former foreign associate or joint arrangement after losing significant influence over the former foreign associate, or losing joint control of the former joint arrangement, such transactions should be accounted for as disposal of all interest in these foreign operations.

(5) Classification of current and non-current items

A. Assets that meet one of the following criteria are classified as current assets; otherwise, they are classified as non-current assets:

(a) Assets arising from operating activities that are expected to be realised, or are intended to be sold or consumed within the normal operating cycle;

(b) Assets held mainly for trading purposes;

(d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than twelve months after the reporting period.

B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:

(a) Liabilities that are expected to be settled within the normal operating cycle; (b)

(b) Liabilities arising mainly from trading activities;

(d) It does not have the right at the end of the reporting period to defer settlement of the liability at least twelve months after the reporting period.

(6) Cash equivalents

Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Time deposits that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents.

(7) Financial assets at fair value through other comprehensive income

A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Company has made an irrevocable election at initial recognition to recognise changes in fair value in other comprehensive income.

B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognised and derecognised using trade date accounting.

C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. The Group subsequently measures the financial assets at fair value. The changes in fair value of equity instruments are recognised in other comprehensive income, and when these are derecognized, the retained earnings or loss that have previously been recognized in other comprehensive income shall be reclassified to retained earnings instead of profit or loss. Dividends are recognised as revenue when the right to receive payment is established, future economic benefits associated with the dividend are likely to flow to the Group and when the amount of the dividend can be measured reliably.

(8) Accounts and notes receivable

A. Accounts and notes receivable entitle the Group a legal right to receive consideration in exchange for transferred goods or rendered services.

B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(9) Impairment of financial assets

For financial assets at amortised cost including accounts receivable that have a significant financing component, at each reporting date, the Group recognises the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognises the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable or contract assets that do not contain a significant financing component, the Group recognises the impairment provision for lifetime ECLs.

(10) Derecognition of financial assets

The Group derecognises a financial asset when one of the following conditions is met:

A. The contractual rights to receive the cash flows from the financial asset expire.

B. The contractual rights to receive cash flows of the financial asset have been transferred and the Group has transferred substantially all risks and rewards of ownership of the financial asset.

C. The contractual rights to receive cash flows of the financial asset have been transferred; however, the Group has not retained control of the financial asset.

(11) Inventories

Inventories are stated at the lower of cost and net realisable value. Cost is calculated based on the standard cost. The cost of finished goods and work in progress comprises raw materials, direct labour, other direct costs and related production overheads (allocated based on normal operating capacity). The item by item approach is used in applying the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.

(12) Property, plant and equipment

A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalised.

B. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.

D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change. The estimated useful lives of property, plant and equipment are as follows:

Buildings and structures (including decoration work)	4 - 51 years
Machinery and equipment	4 - 10 years
Transportation equipment	6 years
Office equipment	5 years
Other equipment	3 – 6 years

(13) Leasing arrangements (lessor)—lease receivables/ operating leases

Lease income from an operating lease (net of any incentives given to the lessee) is recognised in profit or loss on a straight-line basis over the lease term.

(14) Leasing arrangements (lessee)—right-of-use assets/ lease liabilities

A. Leases are recognised as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Group. For short-term leases or leases of low value assets, lease payments are recognised as an expense on a straight-line basis over the lease term.

B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of fixed payments, less any lease incentives receivable. The Group subsequently measures the lease liability at amortised cost using the interest method and recognises interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognised as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

C. At the commencement date, the right-of-use asset is stated at cost comprising the amount of the initial measurement of lease liability. The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset's useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognised as an adjustment to the right-of-use asset.

(15) Intangible assets

Computer software is stated at cost and amortised on a straight-line basis over its estimated useful life of 3 to 10 years.

(16) Impairment of non-financial assets

The Group assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell or value in use. When the circumstances or reasons for recognising impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortised historical cost would have been if the impairment had not been recognised.

(17) Borrowings

Borrowings comprise long-term and short-term bank borrowings and other long-term and short-term loans. Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in profit or loss over the period of the borrowings using the effective interest method.

(18) Notes and accounts payable

A. Accounts payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities.

B. The short-term notes and accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(19) Provisions

Provisions are contingent liabilities from warranties and are recognised when the Group has a present legal or constructive obligation as a result of past events, and it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation on the balance sheet date, which is discounted using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the obligation. When discounting is used, the increase in the provision due to passage of time is recognised as interest expense.

(20) Employee benefits

A. Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognised as expense in that period when the employees render service.

B. Pensions

(a) Defined contribution plans

For defined contribution plans, the contributions are recognised as pension expense when they are due on an accrual basis. Prepaid contributions are recognised as an asset to the extent of a cash refund or a reduction in the future payments.

(b) Defined benefit plans

i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Group in current period or prior periods. The liability recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability; when there is no deep market in high-quality corporate bonds, the Group uses interest rates of government bonds (at the balance sheet date) instead.

ii. Remeasurements arising on defined benefit plans are recognised in other comprehensive income in the period in which they arise and are recorded as retained earnings.

C. Employees' compensation and directors' and supervisors' remuneration

Employees' compensation and directors' remuneration are recognised as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates. If employee compensation is paid by shares, after taking into account the effects of ex-rights and ex-dividends, the Company calculates the number of shares based on the fair value per share at the day before the shareholders' meeting held in the year following the financial reporting year.

(21) Employee share-based payment

For the equity-settled share-based payment arrangements, the employee services received are measured at the fair value of the equity instruments granted at the grant date, and are recognised as compensation cost over the vesting period, with a corresponding adjustment to equity. The fair value of the equity instruments granted shall reflect the impact of market vesting conditions and nonvesting conditions.

Compensation cost is subject to adjustment based on the service conditions that are expected to be satisfied and the estimates of the number of equity instruments that are expected to vest under the non-market vesting conditions at each balance sheet date. Ultimately, the amount of compensation cost recognised is based on the number of equity instruments that eventually vest.

(22) Income tax

A. The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or items recognised directly in equity, in which cases the tax is recognised in other comprehensive income or equity.

B. The current income tax expense is calculated on the basis of the tax laws substantively enacted at the balance sheet date where the Group operates and generates taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.

C. Deferred tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the parent company only balance sheet. However, the deferred tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax is determined using tax rates that have been substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.

D. Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. At each balance sheet date, unrecognised and recognised deferred tax assets are reassessed.

E. Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. Deferred tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realise the asset and settle the liability simultaneously.

(23) Share capital

A. Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or stock options are shown in equity as a deduction, net of tax, from the proceeds.

B. Where the Company repurchases the its equity share capital that has been issued, the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the Company's equity holders. Where such shares are subsequently reissued, the difference between their carrying amount and any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the Company's equity holders.

(24) Dividends

Dividends are recorded in the Group’s financial statements in the period in which they are resolved by the Group’s shareholders. Cash dividends are recorded as liabilities; stock dividends are recorded as stock dividends to be distributed and are reclassified to ordinary shares on the effective date of new shares issuance.

(25) Revenue recognition

A. Sales of goods

(a) The Group manufactures and sells multi-function peripherals, document scanners, network peripherals and related products. Sales are recognised when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, or the Group has objective evidence that all criteria for acceptance have been satisfied. As the time interval between the transfer of committed goods and the payment of customer does not exceed one year, the Group does not adjust the transaction price to reflect the time value of money.

(b) The Group’s obligation to provide a repair for faulty products under the standard warranty terms is recognised as a provision.

(c) A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

B. Service revenue

(a) The Group provides product maintenance services or design services. Revenue from providing services is recognised in the accounting period in which the services are rendered. For fixed-price contracts, revenue is recognised based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided. This is determined based on the actual labour hours spent relative to the total expected labour hours. The customer pays at the time specified in the payment schedule. If the services rendered exceed the payment, a contract asset is recognised. If the payments exceed the services rendered, a contract liability is recognised.

(b) The Group’s estimate about revenue, costs and progress towards complete satisfaction of a performance obligation is subject to a revision whenever there is a change in circumstances. Any increase or decrease in revenue or costs due to an estimate revision is reflected in profit or loss during the period when the management become aware of the changes in circumstances.

(26) Government grants

Government grants are recognised at their fair value only when there is reasonable assurance that the Group will comply with any conditions attached to the grants and the grants will be received. Government grants are recognised in profit or loss on a systematic basis over the periods in which the Group recognises expenses for the related costs for which the grants are intended to compensate.

(27) Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The Group’s chief operating decision-maker is responsible for allocating resources and assessing performance of the operating segments.

Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

The preparation of these consolidated financial statements requires management to make critical judgements in applying the Group’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Critical accounting judgements, estimates and assumption uncertainty are elaborated below:

(1) Impairment assessment of property and plant

The Group assesses impairment based on its subjective judgement and determines the separate cash flows of a specific group of assets, useful lives of assets and the future possible income and expenses arising from the assets depending on how assets are utilised and industrial characteristics and fair value and disposal costs. Any changes of economic circumstances or estimates due to the change of Group strategy might cause material impairment on assets in the future. As of December 31, 2025, the carrying amount of property and plant was $254,449 thousand.

(2) Assessment of allowance for inventory valuation loss

Due to the rapid technology innovation and the paperless trend in the market for development of environmental protection, energy saving and carbon reduction, inventories of the Group face a higher risk of incurring loss on decline in market value or obsolescence. Inventories are stated at the lower of cost and net realisable value. The management must determine the net realisable value of inventories on balance sheet date using judgements and estimates.

As of December 31, 2025, the carrying amount of inventories was $609,043 thousand.

Details of Significant Accounts

(1) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash on hand and revolving funds	$ 861	$ 735
Checking accounts and demand deposits	560,945	353,193
Total	$ 561,806	$ 353,928

The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.
The Group has no cash and cash equivalents pledged to others.

(2) Notes and accounts receivable

	December 31, 2025	December 31, 2024
Accounts receivable due from general customers	$ 502,278	$ 277,471
Less: Allowance for uncollectible accounts	(49,381)	(54,789)
	$ 452,897	$ 222,682

A. The ageing analysis of notes and accounts receivable is as follows:

	December 31, 2025
	Not past due	Past due 1-30 days	Past due 31-90 days	Past due 91-180 days	Past due Over 180 days	Total
Expected credit loss rate	0%	3.09%	7.32%	7.36%	100%
Accounts receivable	$ 298,656	$ 146,586	$ 12,191	$ 951	$ 43,894	$ 502,278
Provisions (Lifetime Expected credit losses)	-	(4,525)	(892)	(70)	(43,894)	(49,381)
Amortised cost	$ 298,656	$ 142,061	$ 11,299	$ 881	$ -	$ 452,897

December 31, 2024

	Not past due	Past due 1-30 days	Past due 31-90 days	Past due 91-180 days	Past due Over 180 days	Total
Expected credit loss rate	0.1%	4.37%	9.05%	17%	100%
Accounts receivable	$ 109,005	$ 89,616	$ 20,736	$ 11,118	$ 46,996	$ 277,471
Provisions (Lifetime Expected credit losses)	(109)	(3,917)	(1,877)	(1,890)	(46,996)	(54,789)
Amortised cost	$ 108,896	$ 85,699	$ 18,859	$ 9,228	$ -	$ 222,682

B. Statement of changes in provisions for accounts receivable and other receivables using the simplified approach for the Group is as follows:

Accounts receivable	December 31, 2025	December 31, 2024
Balance at January 1	$ 54,789	$ 101,065
Provision for (reversal of) impairment loss for the year	(13,233)	(45,769)
Exchange rate effects, etc.	7,825	(507)
Balance at December 31	$ 49,381	$ 54,789
Other receivables	December 31, 2025	December 31, 2024
Balance at January 1	$ 21,407	$ -
Provision for (reversal of) impairment loss for the year	1,358	21,407
Write-off for the year	(21,407)	-
Balance at December 31	$ 1,358	$ 21,407

C. As of December 31, 2025 and 2024, accounts receivable and notes receivable were all from contracts with customers. And as of January 1, 2024, the balance of receivables from contracts with customers amounted to $521,047 thousand.
D. The Group does not hold any collateral.
E. As at December 31, 2025 and 2024, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Group's notes and accounts receivable was the carrying amount.

(3) Inventories

	December 31, 2025	December 31, 2024
Finished goods	$ 263,629	$ 276,596
Semi-finished goods and work in progress	100,020	124,777
Raw materials	345,114	294,774
Less: allowance for inventory valuation and slow moving loss	(99,720)	(124,379)
	$ 609,043	$ 571,768

A. The cost of inventories recognised as expense:

	Year ended December 31, 2025 Year ended December 31, 2024
Cost of goods sold	$ 2,009,417	$ 2,023,783
Loss on decline in market value	(20,730)	20,154
Loss on idle capacity	-	161,929
Gain on physical inventory	(332)	(421)
Loss on disposal	22,160	20,019
	$ 2,010,515	$ 2,225,464

B. Gain from price recovery of inventory was generated to the Company for year ended December 31, 2025 mainly because of decrease in slow-moving inventories at some of the subsidiaries, resulting in gain from price recovery.

C. For provision of collaterals, refer to Note 8.

(4) Financial assets measured at fair value through other comprehensive income — Non-current

	December 31, 2025	December 31, 2024
Solidlite Corporation	$ 12,816	$ 12,816
Henan Centrix Technology Co., Ltd.	9,713	9,713
eLCOS Microdisplay Technology Ltd.	-	-
AETAS Technology Inc.	1,015	1,015
OTO PHOTONICS INC	18,344	18,344
ProtectLife International Biomedical Inc.	13,375	13,375
WIN CO E-TECHNOLOGY CORP	3,000	3,000
JimTec Group Holding Inc.	2,999	2,999
Capsovision Inc.	49,282	49,282
Yichun Yilian Printing Equipment Co., Ltd.	130,321	130,321
Subtotal	240,865	240,865
Revaluation of financial assets measured at fair value through other comprehensive income	(78,688)	(196,274)
	$ 162,177	$ 44,591

The Group chooses to classify the equity instruments with the nature of strategic investment as financial assets measured at fair value through other comprehensive income; the fair value of such investments as of December 31, 2025 and 2024 was $162,177 thousand and $44,591 thousand, respectively.
Following the dissolution and liquidation of eLCOS Microdisplay Technology Ltd, the Group disposed of its investment at a fair value of $3 in 2024, resulting in accumulated loss from disposal at $2,340.
Financial assets measured at fair value through other comprehensive income recognized in profit or loss and comprehensive income are detailed as below:

	Year ended December 31, 2025	Year ended December 31, 2024
Equity instrument measured at fair value through other comprehensive income	$ 116,705	($ 33,873)
Changes in fair value recognized in other comprehensive income	$ -	$ 2,340
Accumulated gains or losses reclassified as retained earnings due to derecognition

There were no financial assets measured at fair value through other comprehensive income provided by the Group as pledged collaterals.
For information on fair value of financial assets measured at fair value through other comprehensive income, refer to Note 12(4).

(5) Property, plant and equipment

	December 31, 2025	December 31, 2024
Buildings and structures	$ 254,449	$ 283,035
Machinery equipment	85,952	100,926
Transportation equipment	415	841
Office equipment	3,347	3,673
Others	53,152	38,457
	$ 397,315	$ 426,932

	January 1, 2025	Additions and reclassification	Disposal	Net exchange difference	December 31, 2025
Cost
Buildings and structures	$823,914	$-	$(199)	$1,637	$825,352
Machinery equipment	1,058,105	31,101	(16,147)	2,959	1,076,018
Transportation equipment	7,673	-	(123)	(170)	7,380
Office equipment	19,110	839	(906)	(12)	19,031
Others	95,866	20,048	(3,481)	(1,012)	111,421
	$2,004,668	$51,988	$(20,856)	$3,402	$2,039,202
	January 1, 2025	Depreciation expense	Disposal	Net exchange difference	December 31, 2025
Accumulated depreciation and impairment
Buildings and structures	$540,879	$28,188	$(199)	$2,035	$570,903
Machinery equipment	957,179	44,523	(15,978)	4,342	990,066
Transportation equipment	6,832	225	(123)	31	6,965
Office equipment	15,437	1,135	(903)	15	15,684
Others	57,409	4,378	(3,481)	(37)	58,269
Accumulated depreciation and impairment	$1,577,736	$78,449	$(20,684)	$6,386	$1,641,887
Net amount	$426,932				$397,315
	January 1, 2024	Additions and reclassification	Disposal	Net exchange difference	December 31, 2024
Cost
Buildings and structures	$810,317	$934	$-	$12,663	$823,914
Machinery equipment	1,089,088	71,248	(132,055)	29,824	1,058,105
Transportation equipment	8,050	-	-	(377)	7,673
Office equipment	20,079	2,715	(4,226)	542	19,110
Others	117,134	(14,889)	(3,041)	(3,338)	95,866
	$2,044,668	$60,008	$(139,322)	$39,314	$2,004,668
	January 1, 2024	Depreciation expense	Disposal	Net exchange difference	December 31, 2024
Accumulated depreciation and impairment
Buildings and structures	$502,280	$29,289	$-	$9,310	$540,879
Machinery equipment	1,024,448	37,063	(130,327)	25,995	957,179

Transportation equipment	6,377	231	-	224	6,832
Office equipment	18,124	1,044	(4,214)	483	15,437
Others	59,722	5,163	(2,992)	(4,484)	57,409
	$ 1,610,951	$ 72,790	$ (137,533)	$ 31,528	$ 1,577,736
Net amount	$ 433,717				$ 426,932

A. No capitalization of interest occurred during the years ended December 31, 2025 and 2024.
B. For provision of collaterals, refer to Note 8.

(6) Leasing arrangements - lessee

A. The Group leases various assets including land and buildings. Rental contracts are typically made for periods of 3 to 20 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.
B. Certain leases for the warehouse and office spaces are classified as short-term leases as the lease terms do not exceed 12 months, and the leased assets consist of low-value office equipment.
C. The carrying amount of right-of-use assets and the depreciation charge are as follows:

	December 31, 2025	December 31, 2024
Land	$ 125,532	$ 135,843
Buildings	89,728	18,448
Transportation equipment	241	109
	$ 215,501	$ 154,400
	Year ended December 31, 2025	Year ended December 31, 2024
	Depreciation expense	Depreciation expense
Land	$ 5,111	$ 5,219
Buildings	23,712	26,338
Transportation equipment	144	270
	$ 28,967	$ 31,827

For the years ended December 31, 2025 and 2024, the additions to right-of-use assets were $91,014 thousand and $3,883 thousand, respectively.

D. Information on profit or loss in relation to lease contracts is as follows:

	Year ended December 31, 2025	Year ended December 31, 2024
Interest expense on lease liabilities	$ 3,908	$ 3,094
Expense on short-term lease agreements	$ 14,971	$ 13,875
Expense on leases of low-value assets
(excluding short-term low-value lease)	$ 467	$ 237
Gain on sublease of right-of-use assets	$ 491	$ 506

(a) For the years ended December 31, 2025 and 2024, the Group’s total cash outflow for leases were $45,266 thousand and $49,064 thousand, respectively.

(b) In determining the lease term, the Group takes into consideration all facts and circumstances that create an economic incentive to exercise an extension option or not to exercise a termination option. The assessment of lease period is reviewed if a significant event occurs which affects the assessment.

(7) Short-term borrowings

Type of borrowings	December 31, 2025	December 31, 2024
Secured bank borrowings	$ 674,560	$ 703,888
Unsecured bank borrowings	179,007	-
	$ 853,567	$ 703,888
Interest rate range	2.55%-4.00%	2.700%-3.3%

Information about the collateral pledged for secured bank borrowings is provided in Note 8.

(8) Other accounts payable

	December 31, 2025	December 31, 2024
Salary and bonus accounts	$ 75,050	$ 77,279
Pension payable	3,105	3,136
Payable on equipment	4,657	5,532
Others	72,860	134,390
	$ 155,672	$ 220,337

(9) Long-term borrowings

Type of borrowings	Borrowing period	December 31, 2025	December 31, 2024
Long-term bank borrowings
Secured borrowings	From June 2025 to January 2027	$ 8,633	$ 3,784
Credit loans	From January 2025 to January 2027	2,158	22,321
Other non-financial institutional borrowings
Secured borrowings	From June 2025 to February 2028	13,104	6,427
Total		23,895	32,532
Less: the current portion		(15,776)	(21,038)
		$ 8,119	$ 11,494
Interest rate range		2.975%-4.860%	1.50%-3.75%

A. Long-term borrowing agreements, both secured and unsecured, entered into with banks and non-financial institutions are subject to the repayment terms specified in each respective borrowing agreement.

B. Details of collateral for secured borrowings are provided in Note 8.

(10) Pensions

A. (a) The Company has a defined benefit pension plan in accordance with the Labor Standards Act, covering all regular employees' service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Labor Standards Act. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company contributes monthly an amount equal to 10% of the employees' monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions for the deficit by next March.

(b) The amounts recognised in the balance sheet are as follows:

	December 31, 2025	December 31, 2024
Present value of defined benefit obligations	$ 162,605	$ 164,804
Fair value of plan assets	(165,737)	(146,230)
Net defined benefit liability(asset)	$ (3,132)	$ 18,574

	Present value of defined benefit obligations	Fair value of plan assets	Net defined benefit liability
2025
At January 1	$ 164,804	$ (146,230)	$ 18,574
Current service cost	803	-	803
Interest expense (income)	2,636	(2,338)	298
	168,243	(148,568)	19,675
Remeasurements:
Return on plan assets	-	(10,022)	(10,022)
Change	(160)	-	(160)
	(160)	(10,022)	(10,182)
Pension fund contribution	-	(12,625)	(12,625)
Paid pension	(5,478)	5,478	-
At December 31	$ 162,605	$ (165,737)	$ (3,132)

	Present value of defined benefit obligations	Fair value of plan assets	Net defined benefit liability
2024
At January 1	$ 183,019	$ (134,511)	$ 48,508
Current service cost	866	-	866
Interest expense (income)	2,196	(1,614)	582
	186,081	(136,125)	49,956
Remeasurements:
Return on plan assets	$ -	$ (11,639)	$ (11,639)
Change in financial assumptions	(4,593)	-	(4,593)
Experience adjustments	(2,084)	-	(2,084)
	(6,677)	(11,639)	(18,316)
Pension fund contribution	-	(13,066)	(13,066)
Paid pension	(14,600)	14,600	-
At December 31	$ 164,804	$ (146,230)	$ 18,574

(d) The Bank of Taiwan was commissioned to manage the Fund of the Company's defined benefit pension plan in accordance with the Fund's annual investment and utilisation plan and the "Regulations for Revenues, Expenditures, Safeguard and Utilisation of the Labor Retirement Fund" (Article 6: The scope of utilisation for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-thecounter, or private placement equity securities, investment in domestic or foreign real estate securitisation products, etc.), under the supervision by Bureau of Labor Fund. With regard to the utilisation of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings are less than aforementioned rates, government shall make payment for the deficit after being authorised by the Regulator. The Company has no right to participate in managing and operating that fund and hence the Company is unable to disclose the classification of plan assets fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2025 and 2024 is given in the Annual Labor Retirement Fund Utilisation Report announced by the government.

(e) The principal actuarial assumptions used were as follows:

	December 31, 2025	December 31, 2024
Discount rate	1.30%	1.60%
Future salary increases	4.00%	4.00%

Assumptions regarding future mortality experience are set based on the 6th Taiwan Standard Ordinary Experience Mortality Table.

Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

	Discount rate		Future salary increases
	Increase 0.25%	Decrease 0.25%	Increase 0.25%	Decrease 0.25%
December 31, 2025
Effect on present value of defined benefit obligation	(2,498)	2,564	2,128	(2,087)
	Increase 0.25%	Decrease 0.25%	Increase 0.25%	Decrease 0.25%
December 31, 2024
Effect on present value of defined benefit obligation	(2,770)	2,847	2,395	(2,346)

The sensitivity analysis above is based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analysing sensitivity and the method of calculating net pension liability in the balance sheet are the same.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous period.

(f) Expected contributions to the defined benefit pension plans of the Company for the next year amount to $12,568 thousand.

(g) As of December 31, 2025, the weighted average duration of the retirement plan is 7 years. The analysis of timing of the future pension payment was as follows:

Within 1 year	$	30,396
1-2 year(s)		12,172
2-5 years		36,770
6-10 years		57,295
	$	136,633

B. New system of pensions

(a) Effective July 1, 2005, the Company has established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act, covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.

(b) Avision (Suzhou) Co., Ltd. and Avision Digital Office Equipment (Shanghai) Trading Co., Ltd., based on the regulations of according to the People's Republic of China, allocates pension insurance funds according to a certain percentage of the total salary of local employees every month. The appropriation ratio was 20% in 2025 and 2024. The pension of each employee is managed by the government.

(c) The pension costs under defined contribution pension plans of the Group for the years ended December 31, 2025 and 2024, were $60,023 thousand and $61,237 thousand, respectively.

(11) Share-based payment

A. The Company’s share-based payment arrangements were as follows:

Type of arrangement	Grant date	Quantity granted (share in thousands)	Contract period	Vesting conditions
10th employee stock options	2021.05 - 2021.11	10,000	5 years	2 years’ service Vested 40%
3 years’ service Vested 70%
4 years’ service Vested 100%

B. Details of the share-based payment arrangements are as follows:

	Year ended December 31, 2025		Year ended December 31, 2024
	No. of options (share in thousands)	Weighted-average exercise price (NT dollars)	No. of options (share in thousands)	Weighted-average exercise price (NT dollars)
Options outstanding at January 1	8,132	$ 12.70	8,800	$ 12.70
Options forfeited due to resignation	(485)	12.66	(668)	12.65
Options outstanding at December 31	7,647	12.70	8,132	12.70
Options exercisable at December 31	7,647	12.70	5,692	13.21

C. The expiry date and exercise price of stock options outstanding at balance sheet date are as follows:

Issue date approved	Expiry date	December 31, 2025
		No. of shares (in thousands)	Exercise price (NT dollars)
05.2021	05.2026	4,605	14.35
11.2021	11.2026	3,042	10.20
		December 31, 2024
Issue date approved	Expiry date	No. of shares (in thousands)	Exercise price (NT dollars)
05.2021	05.2026	4,895	14.35
11.2021	11.2026	3,237	10.20

D. The fair value of stock options granted on grant date is measured using the Black-Scholes optionpricing model. Relevant information is as follows:

Type of arrangement	Grant date	Stock price	Exercise Price (NT dollars)	Expected price volatility (Note)	Expected option life	Expected dividends	Risk-free interest rate	Fair value per share (NT dollars)
Employee stock options	2021.05.03	10	14.35	30.00% - 47.00%	2.50 - 4.50 years	0.00%	0.20% - 0.28%	2.7416 - 5.5586
Employee stock options	2021.11.10	10	10.20	48.00% - 63.00%	2.50 - 4.50 years	0.00%	0.36 - 0.41%	3.0406-5.0994

(Note:) Expected price volatility rate was estimated by using the stock prices of the most recent period with length of this period approximate to the length of the stock options' expected life, and the standard deviation of return on the stock during this period.

E. Expenses incurred on share-based payment transactions are shown below:

	Year ended December 31, 2025	Year ended December 31, 2024
Equity-settled	$ 1,872	$ 5,412

(12) Share capital

A. As of December 31, 2025, the Company's authorised capital was $3,000,000 thousand consisting of 300,000 thousand shares of ordinary stock (including 400,000 shares reserved for employee stock options), and the paid-in capital was $2,169,341 thousand with a par value of $10 (in NT dollars) per share.

Movements in the number of the Company's ordinary shares outstanding are as follows:

	unit: share in thousands
	Year ended December 31, 2025	Year ended December 31, 2024
At January 1	$ 216,738	$ 216,738
At December 31	$ 216,738	$ 216,738

B. The Annual General Meeting of Shareholders on June 26, 2025 adopted a capital reduction to offset losses and a private placement of common stock; the capital reduction proposal was approved by the competent authority on March 6, 2026. refer to Note 12(1) for details.

C. Treasury shares

(a) Reason for share reacquisition was that those shares were held by the subsidiary, Quantum Investment Co., Ltd. Movements in the number of the Company's treasury shares (unit: in thousands) are as follows:

	Year ended December 31, 2025		Year ended December 31, 2024
	Number of shares	Carrying amount	Number of shares	Carrying amount
At January 1/ December 31	196	$ 6,669	196	$ 6,669

(b) Shares of the parent company held by subsidiaries had no voting rights before being reissued.

(13) Capital surplus

Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act requires that the amount of capital surplus to be capitalised mentioned above should not exceed 10% of the paid-in capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

	December 31, 2025	December 31, 2024
Share premium	$ 2,220	$ 2,220
Disgorgement right	1	-
Employee stock options	28,950	33,218
Changes in equity of associates and joint ventures	63	63
Stock options expired	78,077	71,937
	$ 109,311	$ 107,438

(14) Retained earnings

A. Under the Company's Articles of Incorporation, the current year's earnings, if any, shall first be used to pay income tax and offset operating losses and then 10% of the remaining amount shall be set aside as legal reserve until the legal reserve equals the paid-in capital. After that, special reserve shall be set aside or reverse in accordance with the regulations or resolution of shareholders. The remainder, if any, along with prior years' accumulated undistributed earnings, with a limit of 5% to 70%, shall be proposed by the Board of Directors to the shareholdings' meeting for approval on distribution. Earnings distributed in the form of cash shall be resolved by the Board of Directors and earnings distributed in the form of shares shall be resolved by the shareholders according to the requirements.

B. The Company’s dividend policy is summarised below :

As the Company operates in a volatile business environment and is in the stable growth stage, the distribution ratio of stock dividends and cash dividends will be determined based on the Company’s future capital expenditures budget and capital needs to consider the Company’s future capital needs and long-term financial plan and maximise the shareholders’ equity. The Company distributes dividends following the aforementioned policy. However, when there are cash dividends distributed, the total amount of cash dividends distributed is between 10% and 100% of the total dividends distributed.

The Company may distribute earnings or compensate deficit after the end of every half fiscal year according to the Company Act. When distributing earnings, the Company shall first estimate and reserve taxes payable, offset operating losses and set aside legal reserve. Earnings distributed in the form of cash shall be resolved by the Board of Directors and earnings distributed in the form of shares shall be resolved by the shareholders according to the requirements.

C. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.

D. In accordance with the regulations, the Group shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.

E. The Company will not distribute dividends as the shareholders resolved the deficit compensation for 2024 and 2023 at their meetings on June 26, 2025 and June 26, 2024, respectively. The deficit compensation for 2025 was proposed by the Board of Directors on March 11, 2026 and is yet to be resolved at the shareholders’ meeting in 2026.

Information about deficit compensation of the Company as approved by the Board of Directors and resolved by the shareholders will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

(15) Other equity items

Year ended December 31, 2025

	Currency translation	Unrealised gains (losses) on valuation	Total
At January 1	$ 56,408	$ (212,269)	$ (155,861)
Revaluation – the Group	-	116,705	116,705
Currency translation differences: – The Group	8,923	-	8,923
At December 31	$ 65,331	$ (95,564)	(30,233)

Year ended December 31, 2024

	Currency translation	Unrealised gains (losses) on valuation	Total
At January 1	$ 43,225	$ (180,736)	$ (137,511)
Revaluation – the Group	-	(33,873)	(33,873)
Disposals of financial assets at fair value through other	-	2,340	2,340
Currency translation differences: –The Group	13,183	-	13,183
At December 31	$ 56,408	$ (212,269)	$ (155,861)

(16) Operating revenue

	Year ended December 31, 2025	Year ended December 31, 2024
Revenue from contracts with customers	$ 2,894,375	$ 2,547,627

A. Disaggregation of revenue from contracts with customers

(a) Disaggregation of revenue from contracts with customers

The Group derives revenue as follows:

2025	Revenue recognized at a point in time	Revenue recognized over time	Total
Segment revenue
Taiwan	$ 761,831	$ -	$ 761,831
Germany	284,796	-	284,796
USA	506,853	-	506,853
China	1,835,046	1,402	1,836,448
Brazil	24,514	-	24,514
Russia	117,828	32,635	150,463
Middle East	265,012	-	265,012
Others	304,096	82	304,178
Inter-segment revenue	(1,239,720)	-	(1,239,720)
Revenue from external customer contracts	$ 2,860,256	$ 34,119	$ 2,894,375
Year ended December 31, 2024	Revenue recognized at a point in time	Revenue recognized over time	Total
---	---	---	---
Segment revenue
Taiwan	$ 1,437,119	$ -	$ 1,437,119
Germany	398,589	-	398,589
USA	224,324	1,277	225,601
China	821,160	8,549	829,709
Brazil	56,247	-	56,247
Russia	933,635	643	934,278
Middle East	256,943	-	256,943
Others	260,750	-	260,750
Inter-segment revenue	(1,851,609)	-	(1,851,609)
Revenue from external customer contracts	$ 2,537,158	$ 10,469	$ 2,547,627

B. Contract liabilities

(a) Balances of contract liabilities from products sold as of December 31, 2025 and 2024 were $21,594 thousand and $11,541 thousand, respectively.

(b) Contract liabilities recognised at the beginning of the year:

	Year ended December 31, 2025	Year ended December 31, 2024
Contract liabilities	$ 11,541	$ 27,873
(17) Interest income
	Year ended December 31, 2025	Year ended December 31, 2024
Interest income from bank deposits	$ 1,613	$ 2,504
Interest income from financial assets measured at amortised cost	118	116
	$ 1,731	$ 2,620
(18) Other income
	Year ended December 31, 2025	Year ended December 31, 2024
Government grants	$ 1,850	$ 5,642
Other income - others	21,790	6,544
	$ 23,640	$ 12,186
(19) Other gains and losses
	Year ended December 31, 2025	Year ended December 31, 2024
Income from subleasing right-of-use assets	$ 491	$ 506
Gains on disposals of property, plant and equipment	136	352
Net foreign currency exchange (losses) gains	15,916	(5,515)
Other gains and losses	(17,673)	-
	$ (1,130)	$ (4,657)

(20) Finance costs

	Year ended December 31, 2025	Year ended December 31, 2024
Bank borrowings	$ 22,148	$ 23,581
Other borrowings	131	545
Lease liabilities	3,908	3,094
	$ 26,187	$ 27,220

(21) Expenses by nature

	Year ended December 31, 2025	Year ended December 31, 2024
Wages and salaries	$ 695,402	$ 695,091
Labour and health insurance fees	35,591	31,409
Pension costs	61,123	62,685
Share-based payment costs	1,872	5,412
Other personnel expenses	27,211	33,048
Employee benefit expense	$ 821,199	$ 827,645
Depreciation expense	$ 107,439	$ 104,617
Amortisation expense	8,777	22,158
Depreciation and amortization expense	$ 116,216	$ 126,775

In accordance with the Articles of Incorporation of the Company, a ratio of distributable profit of the current year shall be distributed as employees' compensation and directors' remuneration. The ratio shall be 6% for the former and not higher than 2% for the latter. However, if the Company has accumulated losses, profit should be reserved to cover losses first.

Whether the aforementioned employees' compensation shall be distributed in the form of shares or in cash shall be resolved by the Board of Directors with a majority vote at its meeting attended by two-thirds of the total number of directors and reported to the shareholders' meeting. In addition, the Articles of Incorporation may specify the employees that are entitled to receive the aforementioned shares or cash, including the employees of subsidiaries who meet specific requirements.

For the years ended December 31, 2025 and 2024, the Company did not accrue employees' compensation and directors' remuneration as it had accumulated deficit.

Information about employees' compensation and directors' remuneration of the Company as resolved by the Board of Directors will be posted in the "Market Observation Post System" at the website of the Taiwan Stock Exchange.

(22) Income tax

A. Income tax expense

(a) Income tax recognized in profit or loss

	Year ended December 31, 2025	Year ended December 31, 2024
Current tax on profits for the year	$ 17,376	$ -
Withholding income tax on source of foreign income	-	2,914
Prior year income tax underestimation	2,017	1,417
Total current tax	19,393	4,331
Deferred tax:
Origination and reversal of temporary differences	(1,464)	23,487
Effect from tax losses	-	-
Total deferred tax	(1,464)	23,487
Income tax expense recognized for the year	$ 17,929	$ 27,818

(b) Reconciliation between income tax expense and accounting profit

	Year ended December 31, 2025	Year ended December 31, 2024
Tax calculated based on loss before tax and statutory tax rate	$ 12,216	$ (83,916)
Effect from items disallowed by the regulation	747	234
Prior year income tax underestimation	2,017	1,417
Temporary difference not recognised as deferred tax assets	2,949	15,475
Withholding income tax on source of foreign income	-	2,914
Tax losses not recognised as deferred tax assets	-	91,694
Income tax expense	$ 17,929	$ 27,818

B. Amounts of deferred tax assets or liabilities as a result of temporary differences and tax losses:

	Year ended December 31, 2025
	January 1	Recognised in profit or loss	Recognised in other comprehensive income	December 31
Temporary differences:
Deferred tax assets:
Unrealised loss on market price decline and slowmoving inventory	$ -	$ -	$ -	$ -
Others	-	-	-	-
Tax losses	-	-	-	-
Total	$ -	$ -	$ -	$ -
	Year ended December 31, 2024
---	---	---	---	---
	January 1	Recognised in profit or loss	Recognised in other comprehensive income	December 31
Temporary differences:
Deferred tax assets:
Unrealised loss on market price decline and slowmoving inventory	$ 8,701	$ (8,701)	$ -	$ -
Others	2,272	(2,272)	-	-
Tax losses	4,502	(4,502)	-	-
Total	$ 15,475	$ (15,475)	$ -	$ -

C. Expiration dates of unused tax losses and amounts of unrecognised tax losses are as follows:
Year ended December 31, 2025

Year incurred	Amount assessed / filed	Unused amount (investment income not deducted)	Unrecognised tax losses	Expiry year
2016	$ 390	$ 390	$ 390	2036
2016	248,588	248,588	248,588	2026
2016	34,422	34,422	34,422	2026
2017	14,746	14,746	14,746	2027
2017	411,043	411,043	411,043	2027
2017	2,229	2,229	2,229	2037
2018	572	572	572	2028
2018	360,210	360,210	360,210	2028
2019	62,528	62,528	62,528	2029
2019	37,173	37,173	37,173	2029
2020	46,480	46,480	46,480	2030
2020	55,645	55,645	55,645	2030
2021	19	19	19	2031
2021	90,077	90,077	90,077	2031
2022	18	18	18	2032
2022	127,703	127,703	127,703	2032
2023	34	34	34	2033
2023	286,480	286,480	286,480	2033
2024	16	16	16	2034
2024	469,132	469,132	469,132	2034
2025	160,032	160,032	160,032	2035
	$ 2,407,537	$ 2,407,537	$ 2,407,537

Year ended December 31, 2024

Year incurred	Amount assessed / filed	Unused amount (investment income not deducted)	Unrecognised tax losses	Expiry year
2015	$ 76,074	$ 76,074	$ 76,074	2025
2016	390	390	390	2036
2016	248,588	248,588	248,588	2026
2016	34,422	34,422	34,422	2026
2017	14,746	14,746	14,746	2027
2017	411,043	411,043	411,043	2027
2017	2,229	2,229	2,229	2037
2018	572	572	572	2028
2018	360,210	360,210	360,210	2028
2019	62,528	62,528	62,528	2029
2019	37,173	37,173	37,173	2029
2020	46,480	46,480	46,480	2030
2020	55,645	55,645	55,645	2030
2021	19	19	19	2031
2021	90,077	90,077	90,077	2031
2022	18	18	18	2032
2022	127,703	127,703	127,703	2032
2023	34	34	34	2033
2023	286,480	286,480	286,480	2033
2024	16	16	16	2034
2024	516,686	516,686	516,686	2034
	$ 2,371,133	$ 2,371,133	$ 2,371,133

D. The amounts of deductible temporary difference that are not recognised as deferred tax assets are as follows:

	December 31, 2025	December 31, 2024
Deductible temporary differences	$ 27,590	$ 192,774

Income tax returns through 2023 of the Company and its subsidiary, Quantum Investment Co., Ltd., both have been assessed and approved by the Tax Authority.

(23) Earnings (Loss) per share

A. Employee stock options for the years ended December 31, 2025 and 2024 had no dilutive effect and were not included in the calculation.

B. Weighted average numbers of treasury shares outstanding and the number of shares issued to offset losses through capital reduction as of the retroactive record date at March 9, 2026 had been deducted from the weighted average number of ordinary shares outstanding for the years ended December 31, 2025 and 2024 (a capital reduction ratio at 72.341829%).

	Year ended December 31, 2025
	Amount after tax	Weighted average number of ordinary shares outstanding (share in thousands)	Losses per share (in NT dollar)
Basic and diluted losses per share
Loss attributable to ordinary shareholders of the parent	$ 42,943	59,946	$ 0.72
	Year ended December 31, 2024
	Amount after tax	Weighted average number of ordinary shares outstanding (share in thousands)	Losses per share (in NT dollar)
Basic and diluted losses per share
Loss attributable to ordinary shareholders of the parent	($ 420,178)	59,946	($ 7.01)

(24) Supplemental cash flow information

	Year ended December 31, 2025	Year ended December 31, 2024
Acquisition of property, plant and equipment	$ 51,988	$ 60,008
Add: Opening balance of payable on equipment	5,532	5,168
Less: Ending balance of payable on equipment	(4,657)	(5,532)
Cash paid during the year	$ 52,863	$ 59,644

(25) Changes in liabilities from financing activities

	January 1, 2025	Cash flow	Changes in other non-cash items	December 31, 2025
Short-term borrowings	$ 703,888	$ 149,679	$ -	$ 853,567
Long-term borrowings (including current portion)	32,532	(8,637)	-	23,895
Lease liabilities	155,749	(29,767)	90,068	216,050
Guarantee deposits received	934	(118)	-	816
	$ 893,103	$ 111,157	$ 90,068	$ 1,094,328
	January 1, 2024	Cash flow	Changes in other non-cash items	December 31, 2024
Short-term borrowings	$ 764,145	$ (80,215)	$ 19,958	$ 703,888
Long-term borrowings (including current portion)	79,002	(46,470)	-	32,532
Short-term notes and bills payable	25,000	(25,000)	-	-
Lease liabilities	182,438	(31,858)	5,169	155,749
Guarantee deposits received	1,247	(313)	-	934
	$ 1,051,832	$ (183,856)	$ 25,127	$ 893,103

Related Party Transactions

(1) Names of related parties and relationship

The related parties with whom the Company transacted (excluding combined offsetting transactions) during the reporting period of these consolidated financial statements are as follows:

Name of related party	Relationship to the Company
Sheng, Shi-Hung	Other related party

A. Lease:

Quantum Investment Co., Ltd., a subsidiary under the Group, entered into a one-year short-term lease agreement effective January 3, 2025, with another related party for a property registered in Hsinchu. With reference to prevailing office rental rates in the surrounding area, the monthly rent is $1.5 thousand, payable quarterly. Lease expense for the year ended December 31, 2025 was $ 18 thousand.

(2) Key management compensation

	Year ended December 31, 2025	Year ended December 31, 2024
Short-term employee benefits	$ 25,599	$ 28,598
Post-employment benefits	856	774
Other long-term benefits	317	-
Share-based payments	111	444
Total	$ 26,883	$ 29,816

Pledged Assets

The Group's assets pledged as collateral are as follows:

Pledged asset	December 31, 2025	December 31, 2024	Purpose
Time deposits (shown as “Current financial assets at amortised cost”)	$ 7,000	$ 7,000	Performance guarantee for land lease
Restricted deposit	3,590	-	Escrow accounts
Inventories	15,769	6,427	Other long-term borrowings
Property, plant and equipment	254,449	283,035	Long- and short-term borrowings and credit line
Guarantee deposits paid	3,350	7,337	Other long-term borrowings and performance guarantee
Right-of-use assets	7,061	-	Short-term borrowings
	$ 291,219	$ 303,799

Significant Contingent Liabilities and Unrecognised Contract Commitments: None.
Significant Disaster Loss: None.
Significant Events after the Reporting Period:
A. Refer to Note 6(14) and 12(1) for the deficit compensation as proposed by the Board of Directors on March 26, 2026.
B. Also refer to Note 12, Others - (4) Fair Value Information, C, D and G for changes in fair value of financial assets measured at fair value.
Others
(1) Countermeasures to improve operating and financial condition
As of December 31, 2025, the accumulated deficit balance amounted to $1,688,823 thousand. Despite net profits for 2025, due to the deficit in recent years with insufficient short-term liquidity, the Company intends to implement the following measures to improve the Group’s operations and financial condition:
A. Actively developing business
Under the technical support of our existing products, the Group actively developed new customers and products that meet market demand and will endeavour to continually increase our shipments in the future by increasing our market shares in the nations in which we have successfully been selling in order to bring growth momentum to our future operations.
B. Adjust operation strategies
Optimise the purchasing and producing process, calculate the minimum production volumes to reduce excessive raw material purchases through integrating orders for the same products, actively closeout inventory and increase inventory turnover.
C. Capital financing plan
As cash and cash equivalents of $561,806 thousand were insufficient to cover the short-term borrowings of $853,567 thousand, and long-term borrowings due within one year of $15,776 thousand, the Group’s short-term liquidity was insufficient. The Group is actively negotiating for the financing credit lines and extension of the contracts with the financial and non-financial institutions.
(a) The Group has been maintaining good credit relationships with correspondent banks and based on the history record and experience, the Group will actively apply for renewal of existing financing credit lines from financial institutions. Additionally, the Group pledged its property as collateral to obtain new financing credit lines in order to make the capital movement flexibly.

(b) Obtained financing credit lines from non-financial institutions through negotiating to increase the space for capital movement.

(c) On May 14, 2025, the Board of Directors resolved to conduct a private placement of common stock to raise funds, and this resolution was approved by the shareholders’ meeting on June 26, 2025. The shareholders’ meeting resolution regarding the private placement of common stock authorized the Board of Directors to conduct the private placement of common stock in one or two tranches, not exceeding 30,000,000 shares, within one year from the date of the resolution of the Annual General Meeting of Shareholders. The subscription period for this private placement of common stock was scheduled to expire on June 25, 2026. As the Company has not yet identified a suitable subscriber, it will not proceed with this private placement; and this matter was submitted to the Audit Committee for review and the Board of Directors for resolution on March 26, 2026.

(4) In addition, the 2025 Annual General Meeting of Shareholders resolved to carry out a capital reduction to offset losses. Upon submission to and approval by the competent authority, the Chairman of the Board has been proposed to be authorized to set the basis date for the capital reduction and the basis date for the issuance of new shares in connection with the capital reduction, and to have full authority to handle all other matters related to the capital reduction. This matter was approved by the securities regulatory authority on March 6, 2026. The Company’s Chairman of the Board designated March 9, 2026 as the basis date for the capital reduction, and the registration of the capital reduction amendment was approved by the Hsinchu Science Park Administration under the Ministry of Science and Technology on March 25, 2026. Following this capital reduction, the total number of issued shares would be 60,000 thousand shares (including 9,539 thousand shares issued through a private placement). The authorized capital after the reduction would be $600,000 thousand, reduced by $1,569,340 thousand. The corresponding reduction in accumulated losses will be recognized in the financial statements for the first quarter of 2026.

D. Assets revitalisation

The Group makes more effective utilisation (including the possibility of leasing or selling) of the Group’s existing tangible assets, such as, land, factories and premises (including those in Hsinchu and Suzhou, China). Also, the Group negotiated for selling patent-related intellectual property rights and other intangible assets or collecting royalties from the same. For the reinvestment, the Group is also actively seeking counterparties, hoping to dispose of portions of its shareholdings so as to obtain cash inflows.

However, the aforementioned financial stabilisation plans are still underway and involve uncertain factors. The Group continues to pursue these initiatives actively.

(2) Capital management

The Group’s objectives when managing capital are to safeguard the ability of every entity under the Group to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. During the year ended December 31, 2025, the Group’s strategy, which was unchanged from 2024, was to maintain the gearing ratio within 50%.

(3) Financial instruments

A. Financial instruments by category

Financial assets

	December 31, 2025	December 31, 2024
Financial assets at fair value through other comprehensive income	$ 162,177	$ 44,591
Subtotal	162,177	44,591
Cash and cash equivalents	561,806	353,928
Financial assets at amortised cost	7,000	7,000
Accounts receivable	452,897	222,682
Other receivables	11,832	13,945
Guarantee deposits paid	10,616	7,337
Subtotal	1,044,151	604,892
Total	$ 1,206,328	$ 649,483
Financial liabilities
	December 31, 2025	December 31, 2024
Financial liabilities at amortised cost
Short-term borrowings	$ 853,567	$ 703,888
Notes and bills payable	130	35,824
Accounts payable	564,397	275,951
Other payables	155,672	220,337
Long-term borrowings (including current portion)	23,895	32,532
Guarantee deposits received	816	934
Subtotal	1,598,477	1,269,466
Total	$ 1,598,477	$ 1,269,466
Lease liabilities	$ 216,050	$ 155,749

B. Financial risk management policies

The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk.

Risk management is carried out by the Group treasury department under policies approved by the Board of Directors. Group treasury identifies, evaluates and hedges financial risks in close co-operation with the entities operating under the Group. The Board sets out written principles for overall risk management, as well as written policies covering specific areas and matters, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.

C. Significant financial risks and degrees thereof

(a) Market risk

i. Exchange rate risk

The Group operates internationally and is exposed to foreign exchange risk arising from the transactions of the Company and its subsidiaries using various functional currency, primarily with respect to the USD, EUR, JPY and RMB. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities.

Management has set up a policy to require companies to manage their foreign exchange risk against their functional currencies. The companies are required to hedge their entire foreign exchange risk exposure with the Group treasury.

The Group is subject to the effect of fluctuation of exchange rate as its businesses involve some non-functional currency operations (the Group's and certain subsidiaries' functional currency being NTD; other subsidiaries' functional currencies being USD and RMB). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

	December 31, 2025
	Foreign currency	Exchange rate	Book value (NTD in thousand)
Financial assets
Monetary items
USD: NTD	$ 7,308	31.43	$ 229,289
EUR: NTD	251	36.90	9,262
RMB:NTD	431	4.496	1,937
JPY:NTD	676	0.2008	136
USD: RMB	37,944	31.43	1,193,022
Non-monetary items
USD: NTD	$ 263	31.43	$ 8,272
USD: RMB	41	31.43	1,309
JPY:RMB	12,179	0.2008	2,665

Financial liabilities
Monetary items
USD: NTD	$ 38,741	31.43	$ 1,217,621
JPY:NTD	2,887	0.2008	580
USD: RMB	4,618	31.43	145,930
Non-monetary items
USD: RMB	$ 18	31.43	$ 567
	December 31, 2024
	Foreign currency	Exchange rate	Book value (NTD in thousand)
Financial assets
Monetary items
USD: NTD	$ 13,469	32.785	$ 441,581
EUR: NTD	610	34.14	20,825
USD: RMB	31,680	32.785	1,038,629
Non-monetary items
USD: NTD	$ 411	32.785	$ 13,459
Financial liabilities
Monetary items
USD: NTD	$ 32,361	32.785	$ 1,060,955
USD: RMB	2,831	32.785	92,814

The total exchange gain (loss), including realised and unrealised, arising from significant foreign exchange variation on the monetary items held by the Group for the years ended December 31, 2025 and 2024, amounted to $15,916 thousand and $(5,515) thousand, respectively.

Analysis of foreign currency market risk arising from significant foreign exchange variation:

Year ended December 31, 2025

Main risk	Degree of variation	Effect on profit or loss (NT dollar in thousand)
Monetary items
Exchange rate risk	NTD/USD +/- 1%	$ (9,883)
Exchange rate risk	NTD/EUR +/- 1%	93
Exchange rate risk	NTD/CNY +/- 1%	19
Exchange rate risk	NTD/JPY +/- 1%	(4)
Exchange rate risk	USD/CNY +/- 1%	10,471

Non-monetary items
Exchange rate risk	USD/NTD + / - 1%	83
Exchange rate risk	USD/CNY + / - 1%	7
Exchange rate risk	JPY/CNY + / - 1%	27
	Year ended December 31, 2024
Main risk	Degree of variation	Effect on profit or loss (NT dollar in thousand)
Monetary items
Exchange rate risk	NTD/USD + / - 1%	$ (6,194)
Exchange rate risk	NTD/EUR + / - 1%	208
Exchange rate risk	USD/CNY + / - 1%	9,458
Non-monetary items
Exchange rate risk	USD/NTD + / - 1%	135

ii. Price risk

The Group's equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group.

The Group's investments in equity securities comprise shares issued by domestic and overseas companies. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by $10\%$ with all other variables held constant, other components of equity for the years ended December 31, 2025 and 2024 would have increased/decreased by $\$16,218$ thousand and $\$4,459$ thousand, respectively, as a result of other comprehensive income classified as equity investment at fair value through other comprehensive income.

iii. Cash flow and fair value interest rate risk

The Group's main interest rate risk arises from borrowings with variable rates, which expose the Group to cash flow interest rate risk. During 2025 and 2024, the Group's borrowings at variable rate were mainly denominated in New Taiwan dollars and US dollars.

The Group’s borrowings are measured at amortised cost. The borrowings are periodically contractually repriced and to that extent are also exposed to the risk of future changes in market interest rates.

If the borrowing interest rate had increased/decreased by 1% with all other variables held constant, profit, net of tax for the years ended December 31, 2025 and 2024 would have increased/decreased by $8,775 thousand and $5,578 thousand, respectively. The main factor is that changes in interest expense resulting from floating-rate borrowings.

(b) Credit risk

Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable, other receivables and guarantee deposits paid based on the agreed terms, and the contract cash flows of bank deposits.

The Group manages their credit risk taking into consideration the entire Group’s concern. For the banks and financial institutions the Group transacts with, it was set that only the companies with good credit quality may be accepted as counterparties of transaction. According to the Group’s credit policy, the Group is responsible for managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors, and the utilisation of credit limits is regularly monitored.

By the Group’s credit risk management procedure, when the counterparty’s contract payments are past due over 180 days, the default has occurred.

The Group adopts the assumptions under IFRS 9, if the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

The following indicators are used to determine whether the credit impairment of debt instruments has occurred:

i. It becomes probable that the issuer will enter bankruptcy or other financial reorganisation due to their financial difficulties;

ii. The disappearance of an active market for that financial asset because of financial difficulties;

iii. Default or delinquency in interest or principal repayments;

iv. Adverse changes in national or regional economic conditions that are expected to cause a default.

The Group classifies customers' accounts receivable in accordance with credit rating of customer. The Group applies the modified approach using a provision matrix to estimate expected credit loss.

The Group wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Group will continue executing the recourse procedures to secure their rights.

i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group treasury. Group treasury monitors rolling forecasts of the Group's liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Group does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities. Such forecasting takes into consideration the Group's debt financing plans, covenant compliance, compliance with internal balance sheet ratio targets.

ii. The Group has the following undrawn borrowing facilities:

	December 31, 2025	December 31, 2024
NTD	$ 170,556	$ 90,912

iii. The table below analyses the Group's non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities and to the expected maturity date for derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

December 31, 2025

	Carrying amount	Contractual cash flow	Less than 1 year	Between 1 and 5 years	Over 5 years
Non-derivative financial liabilities
Short-term borrowings	$ 853,567	$ 853,567	$ 853,567	$ -	$ -
Notes payable	130	130	130	-	-
Accounts payable	564,397	564,397	564,397	-	-
Other payables	155,672	155,672	155,672	-	-
Long-term borrowings (including current portion)	23,895	23,895	15,776	8,119	-
Guarantee deposits received	817	817	817	-	-
Lease liabilities	216,050	255,473	28,722	104,904	121,847
	$ 1,814,528	$ 1,853,951	$ 1,619,081	$ 113,023	$ 121,847

December 31, 2024

	Carrying amount	Contractual cash flow	Less than 1 year	Between 1 and 5 years	Over 5 years
Non-derivative financial liabilities
Short-term borrowings	$ 703,888	$ 703,888	$ 703,888	$ -	$ -
Notes payable	35,824	35,824	35,824	-	-
Accounts payable	275,951	275,951	275,951	-	-
Other payables	220,337	220,337	220,337	-	-
Long-term borrowings (including current portion)	32,532	32,532	21,038	11,494	-
Guarantee deposits received	934	934	934	-	-
Lease liabilities	155,749	207,392	23,092	44,100	140,200
	$ 1,425,215	$ 1,476,858	$ 1,281,064	$ 55,594	$ 140,200

(4) Fair value information

A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Group’s investment in listed stocks, beneficiary certificate is included in Level 1.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Unobservable inputs for the asset or liability. Other than those equity investments without active market whose fair value are included in Level 2, the fair value of equity investments without active market are included in Level 3.

B. Financial instruments not measured at fair value, including financial assets and financial liabilities measured at amortized cost, are a reasonable approximation of fair value.

C. The related information of financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities are as follows:

(a) The related information of natures of the assets and liabilities is as follows:

December 31, 2025

Recurring fair value measurements	Level 1	Level 2	Level 3	Total
Financial assets at fair value through other comprehensive income
Equity securities	$ 128,095	$ -	$ 34,082	$ 162,177
December 31, 2024
Recurring fair value measurements	Level 1	Level 2	Level 3	Total
Financial assets at fair value through other comprehensive income
Equity securities	$ -	$ -	$ 44,591	$ 44,591

(b) The methods and assumptions the Group used to measure fair value are as follows:

Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the balance sheet date.

When assessing non-standard and low-complexity financial instruments, the Group adopts valuation technique that is widely used by market participants. The inputs used in the valuation method to measure these financial instruments are normally observable in the market.

The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Group's financial and non-financial instruments. Therefore, the estimated value derived using valuation model is adjusted accordingly with additional inputs, for example, model risk or liquidity risk and so on. In accordance with the Group's management policies and relevant control procedures relating to the valuation models used for fair value measurement, management believes adjustment to valuation is necessary in order to reasonably represent the fair value of financial and non-financial instruments at the consolidated balance sheet. The inputs and pricing information used during valuation are carefully assessed and adjusted based on current market conditions.

D. The following chart is the movement of Level 1 for the years ended December 31, 2025 and 2024:

	Equity instrument
At January 1, 2025	$ -
Quantity of movement from Level 3	128,095
At December 31, 2025	$ 128,095

E. The following chart is the movement of Level 3 for the years ended December 31, 2025 and 2024:

	Equity instrument
At January 1, 2025	$ 44,591
Losses recognised in other comprehensive income	116,705
Movement to Level 1	(128,095)
Effect of exchange rate changes	881
At December 31, 2025	$ 34,082

	Equity instrument
At January 1,2024	$ 77,326
Losses recognised in other comprehensive income	(33,873)
Effect of exchange rate changes	1,138
At December 31, 2024	$ 44,591

F. For the years ended December 31, 2025 and 2024, there was no transfer between Level 1 and Level 2.

G. Transfer from Level 3 to Level 1 for the years ended December 31, 2025 and 2024:

(a) Information on significant transfer

The Company's holdings of Capsovision Inc. preferred stock were converted to common stock during the current period. Because the common stock is listed on a U.S. exchange and has active market quotations, it qualifies as a Level 1 input for fair value measurement; therefore, the Company reclassified it out of Level 3.

At the time of movement of the carrying amount of $4,003 thousand prior to remeasurement, a valuation gain of $124,092 thousand arising from conversion and market value measurement has been included in valuation gains and losses under other comprehensive income in the Statement of Level 3 Changes in Equity for the year ended December 31, 2025.

(b) Non-Adjusting events after reporting period

The market value of the aforementioned listed common shares held by the Company has fluctuated significantly since the balance sheet date due to market volatility. As of March 26, 2026, the market price per share had declined by approximately 22.6% compared to the balance sheet date (i.e., from US$10.69 per share to US$8.27 per share).

Estimated effect of the price change to the fair value of the Company's financial assets is as follows:

Fair value at balance sheet date as of December 31, 2025: $128,095 thousand

Estimated loss based on post-period evaluation: $(27,658) thousand

Fair value at March 26, 2026: $100,437 thousand

The above market price change being a market fluctuation after the reporting period is thus not reflected in the financial statements for the year ended December 31, 2025.

H. For the Group's valuation process of financial instruments classified in Level 3, the Finance Department conducts independent fair value validation of such instruments, periodically calibrates valuation models, updates the inputs and data required for those models, as well as makes any other necessary fair value adjustments to ensure that the valuation results are reasonable.

I. Information regarding the quantification of significant unobservable inputs used in valuation models for Level 3 fair value measurements, and sensitivity analyses of changes in such inputs are provided below:

	December 31, 2025		Significant unobservable input		Range	Relationship of inputs to fair value
	Fair value	Valuation technique
Equity instrument:
Unlisted shares $	34,082	Market comparable companies	Price to book ratio	1.53~5.50	The higher the multiple, the higher the fair value;
			Discount for lack of marketability	20% - 40%	The higher the discount for lack of marketability, the lower the fair value.
		-	Net asset value	Not applicable	Not applicable	Not applicable
	December 31, 2024	Valuation technique	Significant unobservable input	Range	Relationship of inputs to fair value
Equity instrument:	Fair value
Unlisted shares	$ 44,591	Market comparable companies	Price to book ratio	1.53~5.50	The higher the multiple, the higher the fair value;
			Discount for lack of marketability	20%~40%	The higher the discount for lack of marketability, the lower the fair value.
		-	Net asset value	Not applicable	Not applicable	Not applicable

I. The Group has carefully assessed the valuation models and inputs used to measure fair value. However, use of different valuation models or inputs may result in different measurement. The following is the effect of profit or loss or of other comprehensive income from financial assets and liabilities categorised within Level 3 if the inputs used to valuation models have changed:

	Input	Change	December 31, 2025
			Recognised in profit or loss		Recognised in other comprehensive income
			Favourable change	Unfavourable change	Favourable change	Unfavourable change
Financial assets
Equity instrument	Multipliers and discounts	±1%	$ -	$ -	$ 341	($ 341)
	Input	Change	December 31, 2024
			Recognised in profit or loss		Recognised in other comprehensive income
			Favourable change	Unfavourable change	Favourable change	Unfavourable change
Financial assets
Equity instrument	Multipliers and discounts	±1%	$ -	$ -	$ 569	($ 569)

13. Supplementary Disclosures

(1) Significant transactions information:

A. Loans to others: None.
B. Provision of endorsements and guarantees to others: None.
C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 1.
D. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 2.
E. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 3.
F. Significant inter-company transactions during the reporting periods: Please refer to table 4.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to table 5.

(3) Information on investments in Mainland China

A. Basic information: Please refer to table 6.
B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Please refer to table 7.

Segment Information

(1) General information

The Company and its subsidiaries operate business only in a single industry, which allocate resources and assess performance of the Group as a whole, have identified that the Group has only one reportable operating segment. The accounting policies of the operating segments are in agreement with the significant accounting policies summarised in Note 4. The operating segments are measured using the profit (loss) before tax from continuing operations.

(2) Measurement of segment information

Interest income and expense are not allocated to operating segments, as this type of activity is driven by the Group's central treasury function, which manages the cash position of the group.

(3) Reconciliation for segment income (loss)

For the year ended December 31, 2025:

	Avision Inc. and other segments.	Avision (Suzhou) Co., Ltd.	Avision Digital Office Equipment (Shanghai) Trading Co.,	Adjustments and write-offs	Consolidation
Segment Profit and Loss	$ 104,208	$ 119,732	$ 2,482	($165,343)	$ 61,079
Include:
Interest Income	666	1,002	63	-	1,731
Interest Expense	(8,797)	(17,321)	(69)	-	(26,187)
Depreciation Expense	(22,065)	(83,677)	(1,697)	-	(107,439)
Amortisation Expense	(4,672)	(37,770)	-	33,665	(8,777)

For the year ended December 31, 2024:

	Avision Inc. and other segments.	Avision (Suzhou) Co., Ltd.	Avision Digital Office Equipment (Shanghai) Trading Co., Ltd.	Adjustments and	Consolidation
Segment Profit and Loss	($ 430,629)	($ 57,627)	($ 3,779)	$ 93,422	($398,613)
Include:
Interest Income	1,110	1,338	172	-	2,620
Interest Expense	(9,712)	(17,419)	(89)	-	(27,220)
Depreciation Expense	(21,608)	(81,223)	(1,786)	-	(104,617)
Amortisation Expense	(737)	(87,618)	-	66,197	(22,158)

(4) Information on products and services

Revenue from external customers is mainly from sales of digital office equipment.

Composition of income balances is as follows:

	Year ended December 31, 2025	Year ended December 31, 2024
Sales revenue	$ 2,821,806	$ 2,524,068
Service revenue	54,737	10,468
Others	17,832	13,091
Total	$ 2,894,375	$ 2,547,627

(5) Geographical information

Geographical information for the years ended December 31, 2025 and 2024 is as follows:

	Year ended December 31, 2025		Year ended December 31, 2024
	Revenue	Non-current assets	Revenue	Non-current assets
Taiwan	$ 761,831	$ 337,034	$ 423,275	$ 355,573
Germany	52,411	1,436	107,967	1,625
USA	345,904	1,151	202,950	21
China	995,718	369,349	305,217	242,524
Russia	150,463	-	934,278	-
Brazil	18,858	376	56,247	75
Middle East	265,012	-	256,943	-
Others	304,178	-	260,750	-
Total	$ 2,894,375	$ 709,346	$ 2,547,627	$ 599,818

(6) Major customer information

Major customer information of the Group for the years ended December 31, 2025 and 2024 is as follows:

	Year ended December 31, 2025		Year ended December 31, 2024
	Revenue	Segment	Revenue	Segment
RUS01	$ 606,184	Group	$ 734,175	Group
CN152	356,265	Group	172,514	Group

Table 1: Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)
December 31, 2025
Expressed in thousands of NTD

Holder	Marketable securities	Relationship with the securities issuer	General ledger account	As of December 31, 2025				Foot note
				Number of shares	Book value (Note 1)	Ownership (%)	Fiar value
AVISION INC.	Sotcks of OTO PHOTONICS INC	None	Financial assets at fair value through other comprehensive income	1,046,243 shares of ordinary shares	13,601	2.88%	13,088
AVISION INC.	Sotcks of CAPSOVISION INC.	None	Financial assets at fair value through other comprehensive income	381,250 shares of ordinary shares	128,095	0.81%	128,095	Note 3

Note 1: For items measured at fair value, the column "Carrying amount" shows the carrying balance after adjustments for fair value measurements.
Note 2: Only transactions amounting to $10,000 thousand are disclosed.
Note 3: Please refer to the description in Note 12(4) Fair value information - G.

Table 2: Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more
December 31, 2025
Expressed in thousands of NTD

Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction				Differences in transaction terms compared to third party transactions		Notes/accounts receivable (payable)		Foot note
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
AVISION INC.	Avision (Suzhou) Co., Ltd.	The Company's subsidiary	Purchases	257,719	23.91%	45 days after monthly billings	Not applicable	Not applicable	(1,106,954)	94.73%	Note 1
AVISION INC.	Avision Europe GMbH	The Company's subsidiary	Sales	232,385	8.03%	70 days after monthly billings	Not applicable	Not applicable	24,233	5.35%	Note 2
AVISION INC.	Avision Labs, Inc	The Company's subsidiary	Sales	154,416	5.34%	60 days after monthly billings	Not applicable	Not applicable	21,868	4.83%	Note 2

Note 1: Contract fabrication is not recognized in revenue from goods sold, and all related transactions were set off during consolidation (calculated by proportion to the parent company's quantity). The Group's funds are managed and allocated on a consolidated basis, where net amounts of intercompany accounts receivable and accounts payable are taken into account before funds are transferred to each company in accordance with their respective funding requirements.
Note 2: The consolidation has been written off.

Table 3: Receivables from related parties reaching $100 million or 20% of paid-in capital or more
December 31, 2025
Expressed in thousands of NTD

Creditor	Counterparty	Relationship	Balance as at December 31, 2025	Turnover rate	Overdue receivables		Amount collected subsequent to the balance sheet date	Allowance for doubtful account
					Amount	Action taken
Avision (Suzhou) Co., Ltd.	AVISION INC.	The ultimate parent company	1,106,954	0.2491	-	Not applicable	76,690	-

Note: As the Group's capital is used in an overall coordinated plan, the net inter-company accounts receivable and accounts payable will be reserved first, and then remaining funds are remitted according to each company's capital requirement plan.

Table 4: Significant inter-company transactions during the reporting periods
December 31, 2025
Expressed in thousands of NTD

Number (Note 1)	Company name	Counterparty	Relationship (Note 2)	Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
0	AVISION INC.	Avision (Suzhou) Co., Ltd.	1	Purchases	257,719	Based on the price lists in force and terms	8.90%
0	AVISAvision (Suzhou) Co., Ltd.ION INC.	Avision (Suzhou) Co., Ltd.	1	Accounts payable	1,106,954	Payment terms of 45 days after monthly billings	44.40%
0	AVISION INC.	Avision (Suzhou) Co., Ltd.	1	Sales	37,973	Based on the price lists in force and terms	1.31%
0	AVISION INC.	Avision Digital Office Equipment (Shanghai) Trading Co., Ltd.	1	Sales	13,371	Based on the price lists in force and terms	0.46%
0	AVISION INC.	Avision Europe GMbH	1	Sales	232,385	Based on the price lists in force and terms	8.03%
0	AVISION INC.	Avision Europe GMbH	1	Accounts receivable	24,233	Collection term for 90 days after the transation	0.97%
0	AVISION INC.	Avision Labs, Inc.	1	Sales	154,416	Based on the price lists in force and terms	5.34%
0	AVISION INC.	Avision Labs, Inc.	1	Accounts receivable	21,868	Collection term for 60 days after the transation	0.88%
1	Avision (Suzhou) Co., Ltd.	Avision Digital Office Equipment (Shanghai) Trading Co., Ltd.	3	Sales	64,504	Based on the price lists in force and terms	2.23%
1	Avision Digital Office Equipment (Shanghai) Trading Co., Ltd.	Avision (Suzhou) Co., Ltd.	3	Sales	21,846	Based on the price lists in force and terms	0.75%

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:
(1) Parent company is '0'.
(2) The subsidiaries are numbered in order starting from '1'.
Note 2: Relationship between transaction company and counterparty is classified into the following three categories; fill in the number of category each case belongs to:
for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction:
(1) Parent company to subsidiary.
(2) Subsidiary to parent company.
(3) Subsidiary to subsidiary.

Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.

Note 4: Disclosing only the amount exceeded $10,000 thousand of transactions, and then the corresponding related party transactions are not disclosed separately.

Table 5
Information on investees (not including investees in Mainland China)
Year ended December 31, 2025
Expressed in thousands of NTD

Investor	Investee (Notes 1 and 2)	Location	Main business	Initial investment amount		Shares held as at December 31, 2025			Net profit (loss) of the year ended Dec. 31, 2025	Investment income(loss) recognised by the Company for the year ended Dec. 31, 2025	Note
				Balance as at December 31, 2025	Balance as at December 31, 2024	Number of shares	Ownership (%)	Book value
AVISION INC.	Avision International Inc.	Samoa	Investment	1,067,810	1,067,810	38,546,389	100.00	1,072,775	124,291	124,291	Subsidiary
AVISION INC.	Avision Development Inc.	Samoa	Investment	287,794	287,794	8,390,475	100.00	29,949	23,782	23,782	Subsidiary
AVISION INC.	Avision Brasil Ltda	Brazil	Maintenance of scanners and multifunction printers	49,822	49,822	-	99.00	(1,469)	(7,109)	(7,037)	Subsidiary
AVISION INC.	Quantum Investment Co., Ltd.	Taiwan	Investment	1,000	1,000	2,550,000	100.00	39,054	24,307	24,307	Subsidiary
Avision International Inc.	Fortune Investments Ltd.	Samoa	Investment	1,098,614	1,098,614	39,498,705	100.00	1,196,655	124,291	124,291	Second-tier subsidiary
Quantum Investment Co., Ltd.	Avision Europe GmbH	Germany	Maintenance service of scanners	2,379	2,379	-	100.00	33,155	24,295	24,295	Investee of subsidiary
Avision Development Inc.	Sunglow International Inc.	Samoa	Investment	287,794	287,794	8,390,475	100.00	27,672	23,782	23,782	Second-tier subsidiary
Sunglow International Inc.	Avision Labs, Inc.	United States	Sales and maintenance service of scanners	48,694	48,694	800,000	96.39	27,580	24,672	23,782	Investee of second-tier subsidiary

Note 1: If a futures exchange organized as a corporation has a foreign holding company and, in accordance with local laws and regulations, uses consolidated financial statements as its primary financial statements, the disclosure of information regarding foreign investee companies may be limited to the relevant information of such holding company.
Note 2: In cases other than Note 1, input as instructed below:
(1) Columns "Investee", "Location", "Main business", "Initial investment amount" and "Shares held as at December 31, 2025" shall be input in accordance with the

Company's investment and the reinvestments by each investee, under direct or indirect control, and in their order; the relationship between each of them and the Company shall also be specified in column "Note" (e.g., a Subsidiary or Second-tier subsidiary).

(2) Input in Columns "Net profit (loss) of the year ended Dec. 31, 2025 of Investee" shall be the amount of net profit (loss) of the year ended Dec. 31, 2025 of each investee.

(3) In Column "Investment income (loss) recognised by the Company for the year ended Dec. 31, 2025", specify only the amounts of profit or loss recognized by the Company from its direct subsidiaries and investees accounted for using the equity method; the remainder may be left blank. When reporting "Amount of profit or loss from direct subsidiaries recognized for the current period," it should be verified that the profit or loss amounts of each subsidiary for the current period already include the investment gains or losses that should be recognized in accordance with regulations regarding their own investments.

Note 3: This has been eliminated during the preparation of these consolidated financial statements.

Table 6: Information on investments in Mainland China
December 31, 2025
Expressed in thousands of NTD

Investee in Mainland China	Main business activities	Paid-in capital	Investment method (Note 1)	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2025	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the year ended December 31, 2025		Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2025	Net income (loss) of investee for the year ended December 31, 2025	Ownership held by the Company (direct or indirect)	Investment income (loss) recognized by the Company for the year ended December 31, 2025	Book value of investments in Mainland China as of December 31, 2025	Accumulated amount of investment income remitted back to Taiwan as of December 31, 2025	footnote
					Remitted to Mainland China	Remitted back to Taiwan
Avision (Suzhou) Co., Ltd.	Scanners and multifunction printers	$ 1,352,791	2	$ 1,352,791	$ -	$ -	$ 1,352,791	121,411	100	121,411	1,049,297	205,688	Note 2
Avision Digital Office Equipment (Shanghai) Trading	International Trade	6,943	2	6,943	-	-	6,943	2,880	100	2,880	146,981	54,950	Note 2
Henan Centrix Technology Co., Ltd.	Discs for laser reading system and international trade	63,727	2	9,559	-	-	9,559	-	15	-	-	-
Suzhou Hongxin Microelectronics Technology Co., Ltd.	Research and development and sales of wafers	98,855	3	-	-	-	-	(3,981)	84.61	(3,369)	3,877	-	Note 4
Company name	Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2025 (Note 3)	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (Note 3)	Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA
---	---	---	---
AVISION INC.	1,298,136	1,356,005	335,258

Note 1: Investment methods are classified into the following three categories; fill in the number of category each case belongs to:
(1) Directly invest in a company in Mainland China.
(2) Through investing in an existing company in the third area, Avision International Inc. and Fortune Investments Ltd., which then invested in the Avision (Suzhou) Co., Ltd. and Avision Digital Office Equipment (Shanghai) Trading Co., Ltd. in Mainland China.
Through investing in an existing company in the third area, Avision Development Inc. and Sunglow International Inc., which then invested in the Henan Centrix Technology Co., Ltd. in Mainland China.

(3) Others

Note 2: Investment income (loss) recognised by the Company was based on the financial statements of the investee that were audited by R.O.C. parent company’s independent accountants.

Note 3: At the end of this period, the investment amount transmitted from Taiwan to mainland China was US$41,634 thousand counted with original currency. The investment amount permitted by the Investment Commission of Ministry of Economic Affairs (MOEA) was USD43,490 thousand counted with original currency, of which US$1,135 thousand was capital increase through capitalisation of earnings, and was not included in the limit of the Investment Commission of Ministry of Economic Affairs (MOEA).

Note 4: It was pertained to the investment in the investee in Mainland China through Avision (Suzhou) Co., Ltd. There was no amount remitted to Mainland China during the year.

Table 7: Significant transactions conducted with investees in Mainland China directly or indirectly through other companies in third areas
Year ended December 31, 2025
Expressed in thousands of NTD

Investee in Mainland China	Sale (purchase) (Note)		Property transaction		Accounts receivable (payable)		Provision of endorsements/guarantees or collaterals		Financing
	Amount	%	Amount	%	Balance at December 31, 2025	%	Balance at December 31, 2025	Purpose	Maximum Balance during the year ended December 31, 2025	Balance at December 31, 2025	Interest rate	Interest during the year ended December 31, 2025	Others
Avision (Suzhou) Co., Ltd.	(257,719)	23.91	-	-	1,106,954	94.73	-	-	-	-	-	-	None
Avision (Suzhou) Co., Ltd.	37,973	1.31	-	-	-	-	-	-	-	-	-	-	None
Avision Digital Office Equipment (Shanghai) Trading Co., Ltd.	13,371	0.46	-	-	1,979	0.44	-	-	-	-	-	-	None

Note: Contract fabrication is not recognized in revenue from goods sold, and all related transactions were set off during consolidation.

AI assistant

AVISION Audit Report / Information 2025

52044_rns_2026-05-18_0dcf9450-42f3-464c-9f26-fed19d90f5b5.pdf

AVISION INC. AND SUBSIDIARIES

INDEPENDENT AUDITORS' REPORT TRANSLATED FROM CHINESE

Opinion

Basis for opinion

Emphasis of matter – Significant event after the reporting period – Approval by competent authority for capital reduction to cover losses

Key audit matters

A. Recognition of operating revenues

Description

How our audit addressed the matter

B. Impairment assessment of property and plant

Description

How our audit addressed the matter

C. Assessment of allowance for inventory valuation loss

Description

How our audit addressed the matter

Responsibilities of management and those charged with governance for the consolidated financial statements

Auditors' responsibilities for the audit of the consolidated financial statements

Others – the financial statements for prior period were audited by other CPAs

Others–parent company only financial statements

AVISION INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2025 AND 2024

AVISION INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 AND 2024

(23) Earnings (Loss) per share

ii. Price risk

iii. Cash flow and fair value interest rate risk

13. Supplementary Disclosures

AI assistant

AVISION — Audit Report / Information 2025

52044_rns_2026-05-18_0dcf9450-42f3-464c-9f26-fed19d90f5b5.pdf

AVISION INC. AND SUBSIDIARIES

INDEPENDENT AUDITORS' REPORT TRANSLATED FROM CHINESE

Opinion

Basis for opinion

Emphasis of matter – Significant event after the reporting period – Approval by competent authority for capital reduction to cover losses

Key audit matters

A. Recognition of operating revenues

Description

How our audit addressed the matter

B. Impairment assessment of property and plant

Description

How our audit addressed the matter

C. Assessment of allowance for inventory valuation loss

Description

How our audit addressed the matter

Responsibilities of management and those charged with governance for the consolidated financial statements

Auditors' responsibilities for the audit of the consolidated financial statements

Others – the financial statements for prior period were audited by other CPAs

Others–parent company only financial statements

AVISION INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2025 AND 2024

AVISION INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 AND 2024

(23) Earnings (Loss) per share

ii. Price risk

iii. Cash flow and fair value interest rate risk

13. Supplementary Disclosures

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AVISION Audit Report / Information 2025