Stock No. 2380

AVISION INC.

PARENT COMPANY ONLY 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 Contents

Contents	Page
I. Independent Auditors’ Report	1-5
II. Parent Company Only Balance Sheets	6-7
III. Parent Company Only Statements of Comprehensive Income	8
IV. Parent Company Only Statements of Changes in Equity	9
V. Parent Company Only Statements of Cash Flows	10-11
VI. Notes to the Parent Company Only Financial Statements	12-72
1. History and Organization	12
2. Date of Authorisation for Issuance of the Financial Statements and Procedures for Authorisation	12
3. Application of New Standards, Amendments and Interpretations	12-13
4. Summary of Material Accounting Policies	13-23
5. Critical Accounting Judgments, Estimates and Key Sources of Assumption Uncertainty	23
6. Details of Significant Accounts	24-45
7. Related Party Transactions	45-47
8. Pledged Assets	48
9. Significant Contingent Liabilities and Unrecognised Contract Commitments	48
10. Significant Disaster Loss	48
11. Significant Events after the Reporting Period	48
12. Others	48-62
13. Supplementary Disclosures	62-72
(1) Significant transactions information
(2) Information on investees
(3) Information on investments in Mainland China
14. Segment Information	62
VII. Statements of Major Accounting Items	73-87

ENI

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 parent company only balance sheets of AVISION INC. (the "Company") as at December 31, 2025, and the related parent company only statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the parent company only financial statements, including a summary of material accounting policies.

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2025, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for opinion

We conducted our audits in accordance with the Regulations Governing 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 parent company only financial statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter - Significant Events after the Reporting Period - Approval by competent authority for covering deficit by capital reduction

As stated in Notes 12(1) and 6(24) to these financial statements, in order to improve on their financial structure in the Company, 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 capital reduction amount of $1.569 billion will be offset 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 parent company only financial statements of the current period. These matters were addressed in the context of our audit of the parent company only financial statements as a whole and, in forming our opinion thereon, and 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 parent company only 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 Company'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.

B. Impairment assessment of property and plant

Description

The Company's property and plant amounted to $192,124 thousand, constituting about 8.9% 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(6) for details of property and plant. The Company 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 Company's amount of property and plant is material, we consider the impairment assessment of property and plant as a key audit matter.

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

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 fair value less costs of disposal 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 Company mainly manufactures and sells multi-function peripherals, document scanners and network peripherals, and the inventory and allowance for inventory valuation loss amounted to $334,971 thousand and $60,335 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(10) for accounting policy on inventory valuation, Note 5(2) for accounting estimates and assumption uncertainty related to assessment of allowance for inventory valuation loss, and Note 6(3) for details of inventories. Inventories of the Company are stated at the lower of cost and net realisable value. Given that the amount and items of the Company'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.
Verified the accuracy of logic in inventory aging reports to ascertain whether the inventories aged over a certain period had been included in the report.
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 parent company only financial statements

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and for such internal controls as management determines are necessary to enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error.

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

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

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

Auditors' responsibilities for the audit of the parent company only financial statements

Our objectives are to obtain reasonable assurance about whether the parent company only 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 parent company only financial statements. As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the parent company only 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 Company'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 Company's ability to continue as a going concern.
4 -

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

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 Company to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only 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 Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only 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, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Other matters

The parent company only inancial 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 Company's ability to continue as a going concern.

Tony Liao, CPA
EnWise CPAs & Co.
Financial Supervisory Commission R.O.C.
Authorization Ref. (102)Jin-guan-zheng-shen-zi
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.
PARENT COMPANY ONLY 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	$ 107,356	5.0	$ 96,115	5.1
1136	Current financial assets at amortised co	8	7,000	0.3	7,000	0.4
1170	Accounts receivable, net	6	46,349	2.1	121,881	6.4
1180	Accounts receivable - related parties	6, 7	53,643	2.5	68,107	3.6
1200	Other receivables	6	6,759	0.3	2,963	0.2
1210	Other receivables - related parties	7	21,566	1.0	2,367	0.1
130x	Inventories	6, 8	274,636	12.7	243,169	12.9
1410	Prepayments		10,250	0.5	18,858	1.0
1470	Other current assets	8	3,589	0.2	8	—
11xx	Total current assets		531,148	24.6	560,468	29.7
15XX	Non-current assets
1517	Non-current financial assets at fair value through other comprehensive income	6	152,423	7.1	33,301	1.8
1550	Investments accounted for under equity method		1,140,309	52.8	931,867	49.4
1600	Property, plant and equipment	6, 8	204,405	9.5	219,696	11.6
1755	Right-of-use assets, net	6, 8	121,750	5.6	131,187	7.0
1780	Intangible assets		4,395	0.2	4,690	0.2
1920	Guarantee deposits paid	8	3,350	0.1	5,303	0.3
1990	Other non-current assets	6	3,132	0.1	—	—
15xx	Total non-current assets		1,629,764	75.4	1,326,044	70.3
	Total assets		$ 2,160,912	100.0	$ 1,886,512	100.0

(Continued)

AVISION INC.

PARENT COMPANY ONLY BALANCE SHEETS

YEARS ENDED DECEMBER 31, 2025 AND 2024

Expressed in thousands of NTD

Liabilities and Equity			December 31, 2025		December 31, 2024
	Item	Note	Amount	%	Amount	%
21XX	Current liabilities
2100	Short-term borrowings	6, 8	$ 180,000	8.3	$ 180,000	9.6
2130	Current contract liabilities	6	615	—	2,442	0.1
2150	Notes payable		130	—	—	—
2170	Accounts payable		61,629	2.9	56,310	3.0
2180	Accounts payable - related parties	7	1,106,954	51.2	961,979	51.0
2200	Other payables	6	87,569	4.1	101,446	5.4
2220	Other payables to related parties	6, 7	2,982	0.1	5,006	0.2
2250	Provisions - current	6	6,580	0.3	9,122	0.5
2280	Current lease liabilities		5,245	0.2	4,997	0.3
2320	Long-term borrowings, current portion	6, 8	15,776	0.7	21,038	1.1
2399	Other current liabilities		1,690	0.1	2,394	0.1
21xx	Total current liabilities		1,469,170	67.9	1,344,734	71.3
25XX	Non-current liabilities
2540	Long-term borrowings	6, 8	8,119	0.4	11,494	0.6
2580	Non-current lease liabilities		124,843	5.8	133,554	7.1
2600	Other non-current liabilities	6	17	—	18,593	1.0
25xx	Total non-current liabilities		132,979	6.2	163,641	8.7
	Total liabilities		1,602,149	74.1	1,508,375	80.0
31XX	Equity
3110	Share capital - common stock	6	2,169,341	100.4	2,169,341	115.0
3200	Capital surplus	6	109,311	5.1	107,438	5.7
3300	Retained earnings	6
3320	Special reserve		5,836	0.3	5,836	0.3
3350	Unappropriated earnings (accumulated deficit)		(1,688,823)	(78.2)	(1,741,948)	(92.3)
3400	Other equity	6	(30,233)	(1.4)	(155,861)	(8.3)
3500	Treasury stocks	6	(6,669)	(0.3)	(6,669)	(0.4)
3xxx	Total equity		558,763	25.9	378,137	20.0
3x2x	Total liabilities and equity		$ 2,160,912	100.0	$ 1,886,512	100.0

(Please refer to the accompanying notes to these parent company only financial statements.)

Chairman: SHENG, SHAO-LAN

Manager: SHENG, SHAO-LAN

Chief accountant: LU,KUAN-YI

AVISION INC.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME
YEARS ENDED DECEMBER 31, 2025 AND 2024

	Item	Expressed in thousands of NTD, except for loss per share
		Notes	Year ended Dec. 31, 2025		Year ended Dec. 31, 2024
			Amount	%	Amount	%
4000	Operating revenue	6	$ 969,298	100.0	$ 1,816,759	100.0
5000	Operating costs	6	735,774	75.9	1,698,424	93.5
5900	Gross profit		233,524	24.1	118,335	6.5
5910	Unrealised profit from sales		(7,719)	(0.8)	(11,063)	(0.6)
5920	Realised profit from sales		10,648	1.1	10,292	0.6
5950	Net operating margin		236,453	24.4	117,564	6.5
	Operating expenses
6100	Selling and marketing expenses		61,205	6.3	81,200	4.5
6200	General and administrative expenses		67,178	6.9	71,833	4.0
6300	Research and development expenses		301,223	31.1	305,800	16.8
6450	Expected credit loss(gain)	6	(4,686)	(0.5)	13,422	0.7
6000	Total operating expenses		424,920	43.8	472,255	26.0
6900	Operating profit (loss)		(188,467)	(19.7)	(354,691)	(19.5)
	Non-operating income and expenses
7100	Interest income	6	534	0.1	1,027	0.1
7010	Other income	6	21,992	2.3	864	-
7020	Other gains and losses	6	54,356	5.6	37,173	2.0
7050	Finance costs	6	(8,797)	(0.9)	(9,712)	(0.5)
7060	Share of loss of associates and joint ventures accounted for using equity method	6	165,343	17.1	(93,422)	(5.1)
7000	Total non-operating income and expenses		233,428	24.2	(64,070)	(3.5)
7900	Profit (loss) before tax		44,961	4.5	(418,761)	(23.0)
7950	Income tax expense	6	2,018	0.1	1,417	0.1
8200	Profit (Loss) for the year		42,943	4.4	(420,178)	(23.1)
	Other comprehensive income (loss):
8310	Item that will not be reclassified to profit or loss
8311	Remeasurements of defined benefit		10,182	1.1	18,316	1.0
	Unrealised loss from investments in equity instruments measured at fair value through other comprehensive income	6	119,122	12.3	(7,918)	(0.4)
8330	Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss		(2,417)	(0.2)	(25,955)	(1.4)
8310	Total items that will not be reclassified to profit or loss		126,887	13.2	(15,557)	(0.8)
8360	Items that may be reclassified to profit orloss:
8361	Financial statements translation differences of foreign operations	6	(251)	-	1,619	0.1
8380	Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that may be reclassified to profit or loss		9,174	0.9	11,564	0.6
8360	Total items that may be reclassified to profit or loss		8,923	0.9	13,183	0.7
8300	Total other comprehensive income or loss, net of tax		135,810	14.1	(2,374)	(0.1)
8500	Total comprehensive income or loss for the year		$ 178,753	18.5	$ (422,552)	(23.2)
	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 these parent company only financial statements.)

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

AVISION INC.
PARENT COMPANY ONLY STATEMENTS OF CHANGES IN
EQUITY
YEARS ENDED DECEMBER 31, 2025 AND 2024

Item	Share capital - common stock	Additional paid-in capital	Retained earnings		Other equity interest		Treasury stocks	Total equity
			Special reserve	Unappropriated earnings (accumulated deficit)	Financial statements translation differences of foreign operations	Unrealised losses from financial assets measured at fair value through other
Balance at January 1, 2024	$ 2,169,341	$ 102,026	$ 5,836	$ (1,337,746)	$ 43,225	$ (180,736)	$ (6,669)	$ 795,277
Loss for the year	—	—	—	(420,178)	—	—	—	(420,178)
Other comprehensive income (loss) for the year	—	—	—	18,316	13,183	(33,873)	—	(2,374)
Cost of share-based payments	—	5,412		—	—	—	—	5,412
Disposals of financial assets measured at fair value through other comprehensive income	—	—	—	(2,340)	—	2,340	—	—
Balance at January 1, 2025	$ 2,169,341	$ 107,438	$ 5,836	$ (1,741,948)	$ 56,408	$ (212,269)	$ (6,669)	$ 378,137
Profit (Loss) for the year	—	—	—	42,943	—	—	—	42,943
Other comprehensive income (loss) for the year	—	—	—	10,182	8,923	116,705	—	135,810
Changes in other capital reserves	—	1	—	—	—	—	—	1
Cost of share-based payments	—	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

(Please refer to the accompanying notes to these parent company only financial statements.)

Chairman: SHENG, SHAO-LAN
Manager: SHENG, SHAO-LAN
Chief accounLU,KUAN-YI

AVISION INC.
PARENT COMPANY ONLY 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:
Profit (loss) before tax	$ 44,961	$ (418,761)
Adjustments:
Income/expenses that do not affect cash flow
Depreciation expense	22,043	21,573
Amortisation expense	4,672	736
Expected credit (gain) loss	(4,686)	13,422
Interest expense	8,797	9,712
Interest income	(534)	(1,027)
Costs of share-based payments	1,872	5,412
Gain on disposal of property, plant and equipment	—	(147)
(Gain) Loss on disposal of intangible assets	(33,665)	(66,199)
Share of subsidiaries, affiliates and joint ventures	(165,343)	93,422
accounted for using equity method
Unrealized gains of affiliated companies	7,719	11,063
Realized gains of affiliated companies	(10,648)	(10,292)
Total adjustments	(169,773)	77,675
Changes in operating assets and liabilities
Changes in operating assets
Decrease (increase) in notes receivable	—	4
Decrease (increase) in accounts receivable	80,218	(45,215)
Decrease (increase) in receivables - related parties	14,464	120,242
Decrease (increase) in other receivables	(3,796)	1,230
Decrease (increase) in other receivables - related parties	(19,199)	11,141
Decrease (increase) in inventories	(31,467)	87,333
Decrease (increase) in prepayments	4,231	6,630
Decrease (increase) in other current assets	(3,581)	(1)
Total changes in operating assets	40,870	181,364
Changes in operating liabilities
Increase (decrease) in contract liabilities — Current	(1,827)	(17,986)
Increase (decrease) in notes payable	130	—
Increase (decrease) in accounts payable	5,319	(10,547)
Increase (decrease) in payables - related partes	144,975	207,917
Increase (decrease) in other payables	(12,869)	6,444
Increase (decrease) in other payables - related parties	(2,024)	(4,759)
Increase (decrease) in provisions - Current	(2,542)	3,351
Increase (decrease) in other current liabilities	(704)	(5,525)
Net defined benefit liabilities — Non-current	(11,524)	(11,618)
Total changes in operating liabilities	118,934	167,277
Total changes in operating assets and liabilities	159,804	348,641
Net cash flows from operating activities	34,992	7,555
Interest received	534	1,027
Interest paid	(8,797)	(9,712)
Income taxes refunded (paid)	(2,018)	(1,417)
Net cash flows from operating activities	24,711	(2,547)

(Continued)

AVISION INC.
PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2025 AND 2024

( Continued )

Expressed in thousands of NTD

Item	Year ended Dec. 31, 2025	Year ended Dec. 31, 2024
CASH FLOWS FROM OPERATING ACTIVITIES
Acquisition of property, plant and equipment	(1,798)	(5,839)
Proceeds from disposal of property, plant and equipment	—	181
Decrease (increase) in guarantee deposits paid	1,953	8,252
Acquisition of intangible assets	—	(1,905)
Net cash flows used in financing activities	155	689
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (decrease) in short-term notes and bills payable	—	(25,000)
Increase (decrease) in guarantee deposits received	(1)	(3)
Increase (decrease) in long-term borrowings	(8,637)	(46,470)
Increase (decrease) in principals of lease liabilities	(4,988)	(5,041)
Other financing activities	1	—
Net cash flows used in financing activities	(13,625)	(76,514)
Net (decrease) increase in cash and cash equivalents	11,241	(78,372)
Cash and cash equivalents at beginning of year	96,115	174,487
Cash and cash equivalents at end of year	$ 107,356	$ 96,115

(Please refer to the accompanying notes to these parent company only financial statements.)

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

-11-

AVISION INC.
NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
Expressed in thousands of New Taiwan 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 is 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 parent company only financial statements were authorised for issuance by the Board of Directors on March 26, 2026.

Application of New Standards, Amendments and Interpretations

(1) The Company 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 Company’s financial condition and financial performance based on the Company’s assessment.

(2) Effect of new issuances of or amendments to IFRS Accounting Standards as endorsed by the FSC but not yet adopted by the Company:

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
Amendments to IFRS 9 and IFRS 7, ‘Amendments to the classification and measurement of financial instruments’	January 1, 2026
Amendments to IFRS 9 and IFRS 7, ‘Contracts referencing 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

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

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(3) Effect of 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 Company’s financial condition and financial performance based on the Company’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 parent company only financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

The parent company only financial statements of the Company have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

(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 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”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the parent company only financial statements are disclosed in Note 5.

(3) Foreign currency translation

The parent company only financial statements are presented in New Taiwan dollars, which is the Company’s functional 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.

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. In addition, even when the Company 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.

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(4) 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 that are expected to be realised, or are intended to be sold or consumed in the normal operating cycle;

(b) Assets that are held primarily for the purpose of trading;

(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.

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 in the normal operating cycle;

(b) Liabilities that are held primarily for the purpose of trading;

(4) 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.

(5) 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.

(6) 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 Company measures the financial assets at fair value plus transaction costs. The Company subsequently measures the financial assets at fair value. The changes in fair value of equity investments that were recognised in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognised as revenue when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably.

(7) Accounts and notes receivable

A. Accounts and notes receivable entitle the Company 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.

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(8) Impairment of financial assets

For financial assets at amortised cost including accounts receivable that have a significant financing component, at each reporting date, the Company 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 Company recognises the impairment provision for lifetime ECLs.

(9) Derecognition of financial assets

The Company 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 Company 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 Company has not retained control of the financial asset.

(10) 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.

(11) Investments accounted for using equity method / subsidiary

A. Subsidiaries are all entities controlled by the Company. The Company controls an entity when the Company 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.
B. Inter-company transactions, balances and unrealised gains or losses on transactions between the Company and subsidiaries are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Company.
C. The Company's share of its subsidiaries' post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Company's share of losses in a subsidiary equals or exceeds its interest in the subsidiary, the Company continues to recognise losses proportionate to its ownership.

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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 Company loses control of a subsidiary, the Company 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 Company 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.

F. Pursuant to the Regulations Governing the Preparation of Financial Reports by Securities Issuers, profit (loss) of the current period and other comprehensive income in the parent company only financial statements shall equal to the amount attributable to owners of the parent in the consolidated financial statements. Owners’ equity in the parent company only financial statements shall equal to equity attributable to owners of the parent in the consolidated financial statements.

(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 Company 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.

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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 interior decoration work)	4 - 51 years
Machinery and equipment	3 - 6 years
Transportation equipment	4 - 6 years
Office equipment	4 years
Other equipment	4 - 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 Company. 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 Company 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 5 years.

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(16) Impairment of non-financial assets

The Company 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 Company 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.

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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 Company 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 Company 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.

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(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 Company 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.

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B. Where the Company repurchases the Company's 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 Company's financial statements in the period in which they are resolved by the Company'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 Company 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 Company 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 Company does not adjust the transaction price to reflect the time value of money.

(b) The Company'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 Company 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.

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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.

C. The Company’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 Company 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 Company recognises expenses for the related costs for which the grants are intended to compensate.

Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

The preparation of these parent company only financial statements requires management to make critical judgements in applying the Company’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. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year; and the related information is addressed below:

(1) Impairment assessment of property and plant

The Company 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 Company strategy might cause material impairment on assets in the future. As of December 31, 2025, the carrying amount of property and plant was $192,124 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 Company 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 $274,636 thousand.

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6. Details of Significant Accounts

(1) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash on hand and revolving funds	$ 638	$ 608
Checking accounts and demand deposits	106,718	95,507
	$ 107,356	$ 96,115

A. The Company 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.

B. The Company 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	$ 87,040	$ 68,107
Accounts receivable due from related parties	53,643	168,616
Less: Allowance for uncollectible accounts	(40,691)	(46,735)
	$ 99,992	$ 189,988

A. The aging analysis of accounts receivable is as follows:

December 31, 2025
	Not past due	Up to 30 days past due	31 to 90 days past due	91 to 180 days past due	Over 180 days past due	Total
Expected credit loss rate	0%	6.87%	7.16%	0%	100%
Accounts receivable	$ 77,874	$ 19,231	$ 433	$ 3,807	$ 39,338	$ 140,683
Provisions (Lifetime expected credit losses)	-	(1,321)	(31)	(1)	(39,338)	(40,691)
Amortised cost	$ 77,874	$ 17,910	$ 402	$ 3,806	$ -	$ 99,992
December 31, 2024
	Not past due	Up to 30 days past due	31 to 90 days past due	91 to 180 days past due	Over 180 days past due	Total
Expected credit loss rate	0.1%	3.25%	3.32%	10.83%	100%
Accounts receivable	$ 67,929	$ 100,782	$ 24,564	$ 979	$ 42,469	$ 236,723
Provisions (Lifetime expected credit losses)	(68)	(3,276)	(816)	(106)	(42,469)	(46,735)
Amortised cost	$ 67,861	$ 97,506	$ 23,748	$ 873	$ -	$ 189,988

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	$ 46,735	$ 54,720
Provision for (reversal of) impairment loss for the year	(6,044)	(7,985)
Balance at December 31	$ 40,691	$ 46,735
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 $311,749 thousand.

D. The Company has not held any collaterals.

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 Company's notes and accounts receivable was the carrying amount.

(3) Inventories

	December 31, 2025	December 31, 2024
Finished goods	$ 209,690	$ 165,530
Semi-finished goods and work in progress	28,377	30,570
Raw materials	96,904	115,239
Less: Allowance for inventory valuation loss and slow-moving loss	(60,335)	(68,170)
	$ 274,636	$ 243,169

A. The cost of inventories recognised as expense:

	December 31, 2025	December 31, 2024
Cost of goods sold	$ 738,651	$ 1,535,231
Loss on decline (gains) in market value	(7,835)	24,516
Loss on idle capacity	-	133,094
Loss on physical inventory	10	59
Loss on disposals	4,948	5,524
Others	-	-
	$ 735,774	$ 1,698,424

B. The Company's inventory valuation gains for the year ended December 31, 2025 were primarily attributable to a reduction in slow-moving inventory.
C. For details of collateral provided for secured borrowings, please refer to Note 8.

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

	December 31, 2025	December 31, 2024
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
Subtotal	88,015	88,015
Valuation adjustment of financial assets at fair value through other comprehensive income	64,408	(54,714)
	$ 152,423	$ 33,301

A. The Company has elected to classify investments in equity instruments that are considered to be strategic as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $152,423 thousand and $33,301 thousand as at December 31, 2025 and 2024, respectively.
B. Amounts recognised in profit or loss and other comprehensive income in relation to the financial assets at fair value through other comprehensive income are listed below:

	Year ended December 31, 2025	Year ended December 31, 2024
Change in value	$ 119,112	($ 7,918)

C. The Company has no financial assets at fair value through other comprehensive income pledged to others.
D. Information relating to fair value of financial assets at fair value through other comprehensive income is provided in Note 12(4).

(5) Investments accounted for using equity method

Investee companies	December 31, 2025	December 31, 2024
Subsidiaries
Avision International Inc.	$ 1,072,775	$ 897,765
Avision Development Inc.	29,949	6,050
Avision Brasil Ltda	(1,469)	5,317
Quantum Investment Co., Ltd.	39,054	22,735
	$ 1,140,309	$ 931,867

A. Please refer to Note 4(3) in the 2025 consolidated financial statements for the information regarding the Company's subsidiaries.
B. For the years ended December 31, 2025 and 2024, investment loss accounted for using the equity method were $165,343 thousand and $(93,422) thousand, respectively, and other comprehensive loss accounted for using the equity method were $0 thousand and $(12,772) thousand, respectively.

(6) Property, plant and equipment

	December 31, 2025	December 31, 2024
Buildings and structures	$ 192,124	$ 200,905
Machinery equipment	5,576	8,764
Office equipment	164	138
Others	6,541	9,889
	$ 204,405	$ 219,696

	At January 1, 2025	Additions	Disposals	Reclassifications	At December 31, 2025
Cost
Buildings and structures	$417,080	$-	$(200)	$-	$416,880
Machinery equipment	158,752	1,320	(400)	-	159,672
Office equipment	584	166	(238)	-	512
Others	22,423	504	(1,925)	-	21,002
	$598,839	$1,990	$(2,763)	$-	$598,066
	At January 1, 2025	Depreciation expense	Disposals	Reclassifications	At December 31, 2025
Accumulated depreciation and impairment
Buildings and structures	$216,175	$8,781	$(200)	$-	$224,756
Machinery equipment	149,988	4,508	(400)	-	154,096
Office equipment	446	140	(238)	-	348
Others	12,534	2,652	(725)	-	14,461
Accumulated depreciation and impairment	$379,143	$16,081	$(1,563)	$-	$393,661
Net amount	$219,696				$204,405
	At January 1, 2024	Additions	Disposals	Reclassifications	At December 31, 2024
Cost
Buildings and structures	$417,195	$934	$(1,049)	$-	$417,080
Machinery equipment	238,404	2,336	(83,988)	2,000	158,752
Office equipment	584	-	-	-	584
Others	22,536	3,577	(1,690)	(2,000)	22,423
	$678,719	$6,847	$(86,727)	$-	$598,839
	At January 1, 2024	Depreciation expense	Disposals	Reclassification	At December 31, 2024
Accumulated depreciation and impairment
Buildings and structures	$208,358	$8,866	$(1,049)	$-	$216,175
Machinery equipment	229,917	4,025	(83,954)	-	149,988
Office equipment	300	146	-	-	446
Others	11,784	2,440	(1,690)	-	12,534
	$450,359	$15,477	$(86,693)	$-	$379,143
Net amount	$228,360				$219,696

A. There was no interest capitalised for the years ended December 31, 2025 and 2024.
B. Information about the property, plant and equipment that were pledged to others as collaterals is provided in Note 8.

(7) Leasing arrangements—lessee

A. The Company 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	$ 118,470	$ 128,583
Buildings	3,039	2,495
Transportation equipment	241	109
	$ 121,750	$ 131,187
	December 31, 2025	December 31, 2024
	Depreciation expense	Depreciation expense
Land	$ 4,891	$ 4,995
Buildings	979	831
Transportation equipment	144	270
	$ 6,014	$ 6,096

For the years ended December 31, 2025 and 2024, the additions to right-of-use assets were $1,747 thousand and $490 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	$ 2,647	$ 2,826
Expense on short-term lease agreement	$ 2,779	$ 13,290
Expense on leases of low-value assets (excluding low-value short-term lease)	$ 467	$ 237
Gain on sublease of right-of-use assets	$ 491	$ 506

(a) For the years ended December 31, 2025 and 2024, the Company's total cash outflow for leases were $7,494 thousand and $21,759 thousand, respectively.

(b) In determining the lease term, the Company 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.

(8) Short-term borrowings

Type of borrowings	December 31, 2025	December 31, 2024
Secured bank borrowings	$ 180,000	$ 180,000
Interest rate range	2.700%~3.103%	2.700%~3.103%

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

(9) Other payables

	December 31, 2025	December 31, 2024
Salary and bonus payable	$ 58,533	$ 58,389
Pension payable	3,105	3,136
Payable on equipment	-	1,008
Others	25,931	38,913
	$ 87,569	$ 101,446

(10) Long-term borrowings

Type of borrowings	Borrowing period and repayment term	December 31, 2025	December 31, 2024
Long-term bank borrowings
Secured borrowings	June 2025-January 2027	$ 8,633	$ 3,784
Credit borrowings	January 2025- January 2027	2,158	22,321
Other non-financial institutional borrowings
Secured borrowings	June 2025-February 2028	13,104	6,427
Total		$ 23,895	$ 32,532
Less: Current portion		(15,776)	(21,038)
		8,119	11,494
Interest range		2.975%~4.860%	1.500%~3.750%

A. The long-term borrowing agreements, 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.

(11) Pensions

A. Old system of pensions

(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 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 (asset)
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 in financial assumptions	(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 (asset)
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 is 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:

	Year ended December 31, 2025	Year ended 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 for the year ended December 31, 2025.

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)

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.

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

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

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) The pension costs under defined contribution pension plans of the Company for the years ended December 31, 2025 and 2024 were $16,623 thousand and $16,829 thousand, respectively.

(12) 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-	10,000	5 years	2 years’ service vested 40%
	2021.11			3 years’ service vested 70%
				4 years’ service vested 100%

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

	December 31, 2025		December 31, 2024
	No. of options (share in thousands)	Weighted-average exercise price (in dollars)	No. of options (share in thousands)	Weighted-average exercise price (in 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 (in dollars)
2021.05	2026.05	4,605	14.35
2021.11	2026.11	3,042	10.20
		December 31, 2024
Issue date approved	Expiry date	No. of shares (in thousands)	Exercise price (in dollars)
2021.05	2026.05	4,895	14.35
2021.11	2026.11	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 (in dollars)	Exercise price (in dollars)	Expected price volatility (Note)	Expected option life	Expected dividends	Risk-free interest rate	Fair value per share (in 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:

	December 31, 2025	December 31, 2024
Share-based payment	$ 1,872	$ 5,412

(13) 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 dollars) per share.

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

	Expressed in thousands of shares
	2025	2024
At January 1	$ 216,738	$ 216,738
At December 31	$ 216,738	$ 216,738

B. The Company's shareholders at their annual meeting on June 26, 2025 adopted a resolution to reduce capital to offset deficits and to raise ordinary shares through private placement, where the plan of capital reduction was approved by the competent authority on March 6, 2026. For details, refer to Note 12(1).

C. Treasury shares

(a) The reason of 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 (in thousands) are as follows:

	2025		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.

(14) 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.

37 -

	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

(15) Accumulate profit and loss

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. 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 policies. 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 Company 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 not yet to be resolved by 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.

(16) Other equity items

	2025
	Currency translation	Unrealised losses on valuation	Total
At January 1	$ 56,408	$ (212,269)	$ (155,861)
Revaluation – the Company	-	119,122	119,122
Revaluation – subsidiaries	-	(2,417)	(2,417)
Disposals of financial assets at fair value through other comprehensive income	-	-	-
Currency translation differences: the Company	(251)	-	(251)
Currency translation differences: Subsidiaries	9,174	-	9,174
At December 31	$ 65,331	$ (95,564)	$ (30,233)
	2024
---	---	---	---
	Currency translation	Unrealised losses on valuation	Total
At January 1	$ 43,225	$ (180,736)	$ (137,511)
Revaluation – the Company	-	(7,918)	(7,918)
Revaluation – subsidiaries	-	(25,955)	(25,955)
Disposals of financial assets at fair value through other comprehensive income	-	2,340	2,340
Currency translation differences: the Company	1,619	-	1,619
Currency translation differences: Subsidiaries	11,564	-	11,564
At December 31	$ 56,408	$ (212,269)	$ (155,861)

(17) Operating revenue

	Year ended December 31, 2025	Year ended December 31, 2024
Revenue from contracts with customers	$ 969,298	$ 1,816,579

A. Disaggregation of revenue from contracts with customers

(a) The Company derives revenue as follows:

2025	Revenue recognised at a point in time	Revenue recognized over time	Total
Segment revenue
Taiwan	$ 27,484	$ -	$ 27,484
Germany	232,385	-	232,385
USA	177,625	-	177,625
China	491,214	-	491,214
Brazil	24,514	-	24,514
Middle East	166,518	-	166,518
Russia	117,828	32,635	150,463
Others	137,619	82	137,701
Inter-segment revenue	(438,606)	-	(438,606)
Revenue from external customer contracts	$ 936,581	$ 32,717	$ 969,298
2024	Revenue recognised at a point in time	Revenue recognized over time	Total
Segment revenue
Taiwan	$ 26,520	$ -	$ 26,520
Germany	322,100	-	322,100
USA	182,252	1,277	183,529
China	443,503	-	443,503
Brazil	40,399	-	40,399
Middle East	181,431	-	181,431
Russia	835,047	643	835,690
Others	170,033	-	170,033
Inter-segment revenue	(386,446)	-	(386,446)
Revenue from external customer contracts	$ 1,814,839	$ 1,920	$ 1,816,759

B. Contract liabilities

Balances of contract liabilities from products sold as of December 31, 2025 and 2024 were $615 thousand and $2,442 thousand, respectively.

(18) Interest income

	Year ended December 31, 2025	Year ended December 31, 2024
Interest income from bank deposits	$ 416	$ 911
Interest income from financial assets measured at amortised cost	118	116
	$ 534	$ 1,027
(19) Other income
	Year ended December 31, 2025	Year ended December 31, 2024
Reclassification of liabilities to income	$ 9,822	$ -
Cost sharing	7,412	-
Other income, others	4,758	864
	$ 21,992	$ 864
(20) Other gains and losses
	Year ended December 31, 2025	Year ended December 31, 2024
Other gains
Income from subleasing right-of-use assets	$ 491	$ 506
Net foreign currency exchange (losses) gains	28,684	(29,078)
Gains (losses) on disposals of property, plant and quipment	-	147
Gains on disposals of intangible assets	33,665	66,199
Other gains (losses)	(8,484)	(601)
	$ 54,356	$ 37,173
(21) Finance costs
	Year ended December 31, 2025	Year ended December 31, 2024
Bank borrowings	$ 5,833	$ 6,341
Other borrowings	317	545
Lease liabilities	2,647	2,826
	$ 8,797	$ 9,712

(22) Expenses by nature

	Year ended December 31, 2025	Year ended December 31, 2024
Wages and salaries	$ 341,135	$ 350,313
Labour and health insurance fees	31,181	5,412
Pension costs	17,708	31,409
Share-based payment costs	1,872	18,277
Other personnel expenses	13,663	17,905
Employee benefit expense	$ 405,559	$ 423,316
Depreciation expense	$ 22,043	$ 21,573
Amortisation expense	4,672	736
Depreciation and amortization expense	$ 26,715	$ 22,309

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.

(23) Income tax

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	$ -	$ -
Prior year income tax underestimation	2,017	1,417
Total current tax	2,017	1,417
Deferred tax:
Origination and reversal of temporary differences	-	-
Deferred tax expense (benefit)	-	-
Effect from tax losses	-	-
Total deferred tax	-	-
Income tax expense recognized for the year	$ 2,017	$ 1,417

B. Reconciliation between accounting income and taxable income

	Year ended December 31, 2025	Year ended December 31, 2024
Tax calculated based on loss before tax and statutory tax rate	$ 8,992	$ (83,752)
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	(8,245)	(19,820)
Tax losses not recognised as deferred tax assets	-	103,338
Income tax expense	$ 2,017	$ 1,417

C. The income tax (charge)/credit relating to components of other comprehensive income: None.
D. Amounts of deferred tax assets or liabilities as a result of temporary differences and tax losses: None.
E. Expiration dates of unused tax losses and amounts of unrecognised tax losses are as follows:

Year incurred	Amount assessed / filed	Unused amount (investment income not deducted)	Expiry year
2016	$ 248,588	$ 248,588	115
2017	411,043	410,888	116
2018	360,210	360,075	117
2019	62,528	62,412	118
2020	46,480	46,364	119
2021	90,077	70,077	120
2022	127,703	127,703	121
2023	286,480	286,480	122
2024	469,132	469,132	123
2025	160,032	160,032	124
	$ 2,262,273	$ 2,241,751

F. The amounts of deductible temporary difference and of tax loss that are not recognised as deferred tax assets are as follows: $\text{及}$

	December 31, 2025	December 31, ,2024
Deductible temporary differences	$ 24,876	$ 172,074
Tax loss	$ 448,350	$ 441,574

G. The Company's income tax returns through 2023 have been assessed and approved by the Tax Authority.

(24) Earning (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 dollars)
Basic and diluted losses per share
Loss attributable to ordinary shareholders of the parent	$ 42,943	59,946	$ 0.72
Loss attributable to other liabilities of the parent	$ 1,000,000	1,000,000	$ 0.00

	Year ended December 31, 2024
	Amount after tax	Weighted average number of ordinary shares outstanding (share in thousands)	Losses per share (in dollars)
Basic and diluted losses per share
Loss attributable to ordinary shareholders of the parent	($ 420,178)	59,946	($ 7.01)
(25) Supplemental cash flow information
Investing activities with partial cash payments:	Year ended December 31, 2025		Year ended December 31, 2024
Acquisition of property, plant and equipment	$790		$6,847
Add: Opening balance of payable on equipment	1,008		-
Less: Ending balance of payable on equipment	-		(1,008)
Cash paid during the year	$1,798		$5,839
(26) Changes in liabilities from financing activities
	January 1, 2025	Cash flow	Changes in other non-cash items December 31, 2025
Short-term borrowings	$180,000	$-	$180,000
Long-term borrowings (including current portion)	32,532	(8,637)	23,895
Lease liabilities	138,551	(4,988)	(3,475)
Guarantee deposits	19	(2)	17
	$351,102	(13,627)	(3,475)

45 -

	January 1, 2024	Cash flow	Changes in other non-cash items	December 31, 2024
Short-term borrowings	$ 180,000	$ -	$ -	$ 180,000
Long-term borrowings (including current portion)	79,002	(46,470)	-	32,532
Short-term notes payable	25,000	(25,000)	-	-
Lease liabilities	143,102	(5,041)	490	138,551
Guarantee deposits received	16	3	-	19
	$ 427,120	$ (76,508)	$ 490	$ 351,102

7. Related Party Transactions

(1) Names of related parties and relationship

The related parties with whom the Company transacted during the reporting period of these parent company only financial statements are as follows:

ames of related parties	Relationship with the Company
Quantum Investment Co., Ltd.	A subsidiary which has 100% of shares directly owned by the Company
Avision Development Inc.	A subsidiary which has 100% of shares directly owned by the Company
Avision International Inc.	A subsidiary which has 100% of shares directly owned by the Company
Avision Brasil Ltda.	A subsidiary which has 99% of shares directly owned by the Company
Avision Digital Office Equipment (Shanghai) Trading Co., Ltd.	A subsidiary which has 100% of shares directly owned by the Company
Avision (Suzhou) Co., Ltd.	A subsidiary which has 100% of shares directly owned by the Company
Avision Europe GmbH	A subsidiary which has 100% of shares directly owned by the Company
Avision Labs, Inc.	A subsidiary which has 96.39% of shares directly owned by the Company
Suzhou Hongxin Microelectronics Technology Co., Ltd.	A subsidiary which has 84.61% of shares directly owned by the Company

(2) Significant related party transactions

A. Operating revenue

	Year ended December 31, 2025	Year ended December 31, 2024
Avision Europe GmbH	$ 232,385	$ 322,100
Avision Labs, Inc.	154,416	-
Subsidiaries	57,265	43,930
	$ 444,066	$ 366,030

Goods are sold based on the normal commercial terms and conditions that would be available to third parties.

B. Purchases

	Year ended December 31, 2025	Year ended December 31, 2024
Avision (Suzhou) Co., Ltd.	$ 257,719	$ 975,618
	$ 257,719	$ 975,618

Goods are purchased from subsidiaries based on the normal commercial terms and conditions.

C. Accounts receivable

	December 31, 2025	December 31, 2024
Avision Europe GmbH	$ 24,233	$ 55,149
Avision Labs, Inc.	21,868	-
Avision Brasil Ltda.	5,562	-
Subsidiaries	1,980	12,958
	$ 53,643	$ 68,107

The receivables from related parties arise mainly from sale transactions and the terms of sales transactions are 60 - 90 days after monthly billings. The receivables bear no interest.

D. Accounts payable

	December 31, 2025	December 31, 2024
Avision (Suzhou) Co., Ltd.	$ 1,106,954	$ 961,979
	$ 1,106,954	$ 961,979

The payables to related parties arise mainly from purchase transactions and are due 45 days after the date of purchase. The payables bear no interest.

E. Other receivables

	December 31, 2025	December 31, 2024
Avision Brasil Ltda.	$ 1,699	$ 1,741
Avision Europe GmbH	8,563	545
Avision Labs Inc.	11,315	-
Subsidiaries	(11)	81
	$ 21,566	$ 2,367

Other receivables arise mainly from the receivables for payments on behalf of others and receivables for freight fees paid on behalf of others.

F. Other payables

	December 31, 2025	December 31, 2024
Avision (Suzhou) Co., Ltd.	$ 2,982	$ 3,313
Avision Labs Inc.	-	1,693
	$ 2,982	$ 5,006

Other payables mainly consist of payables on payments made by third parties and payables for service fees.

G. Other expenses

	Year ended December 31, 2025	Year ended December 31, 2024
Avision Labs, Inc.	$ 6,661	$ 22,743
Avision (Suzhou) Co., Ltd.	179	1,628
	$ 6,840	$ 24,371

Other expenses mainly arise from service, rent fees and export fees.

H. Other income and expenses

	Year ended December 31, 2025	Year ended December 31, 2024
Avision Europe GmbH	$ 7,412	$ -
	$ 7,412	$ -

(3) Key management compensation:

	Year ended December 31, 2025	Year ended December 31, 2024
Short-term employee benefits	$ 13,974	$ 12,157
Post-employment benefits	856	774
Cost of share-based payments	111	444
	$ 14,941	$ 13,375

Pledged Assets

The Company’s assets pledged as collateral are as follows:

assets	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 (including
current portion)
Property, plant and
equipment	192,123	200,905	Long- and short-term
borrowings and credit
line
Guarantee deposits paid	3,350	5,303	Other long-term
borrowings and
performance guarantee
	$ 221,832	$ 219,635

Significant Contingent Liabilities and Unrecognised Contract Commitments: None.
Significant Disaster Loss: None
Significant Events after the Reporting Period
Refer to Note 6(15) and Note 12(1) for the deficit compensation as proposed by the Board of Directors on March 26, 2026.
Additionally, refer to Note 12 Others (4) Fair value information C, D and F for changes in fair value of financial assets measured at fair value.
Others

(1) Countermeasures to improve operating and financial condition

The Company’s current liabilities exceeded its current assets, at $938,022 thousand as of December 31, 2025 and the accumulated deficit balance amounted to $1,688,823 thousand as of December 31, 2025. Despite of 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 Company actively developed new customers and product cooperation projects and will endeavor to continually increase our shipments in the future, in order to bring growth momentum to our future operations.

48 -

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 $107,356 thousand were insufficient to cover the short-term borrowings of $180,000 thousand and long-term borrowings due within one year of $15,776 thousand, the Company’s short-term liquidity was insufficient. The Company is actively negotiating for the financing credit lines and extension of the contracts with the financial and non-financial institutions.

(a) The Company has been maintaining good credit relationships with correspondent banks and will, based on the history record and experience, actively apply for renewal of existing financing credit lines from financial institutions. Additionally, the Company 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.

(d) 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.

49 -

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 Company makes more effective utilisation (including the possibility of leasing or selling) of its existing tangible assets, such as, land, factories and premises (including the plants in Hsinchu and Suzhou). Additionally, regarding patents and other intangible assets related to intellectual property rights, the Company has identified potential parties for sales or licensing agreements and is currently engaged in active negotiations. In terms of investments, the Company is also actively seeking counterparties with the goal of divesting part of its shareholdings to generate cash inflows.

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

(2) Capital management

The Company’s objectives when managing capital are to safeguard the Company’s ability 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 Company 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 Company’s strategy, which was unchanged from 2024, was to maintain the gearing ratio within 50%.

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	$ 152,423	$ 33,301
Subtotal	152,423	33,301
Financial assets at amortised cost
Cash and cash equivalents	107,356	96,115
Financial assets at amortised cost	7,000	7,000
Accounts receivable (including related parties)	99,992	189,988
Other receivables (including related parties)	28,325	5,330
Guarantee deposits paid	3,350	5,303
Subtotal	246,023	303,736
Total	$ 398,446	$ 337,037
Financial liabilities
	December 31, 2025	December 31, 2024
Financial liabilities at amortised cost
Short-term borrowings	$ 180,000	$ 180,000
Accounts payable (including related parties)	1,168,583	1,018,289
Other accounts payable	90,551	106,452
(including related parties)
Long-term borrowings (including current portion)	23,895	32,532
Guarantee deposits received	18	19
Subtotal	1,463,047	1,337,292
Total	$ 1,463,047	$ 1,337,292
Lease liabilities	$ 130,088	$ 138,551

B. Financial risk management policies

(a) The Company'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.

(b) Risk management is carried out by a central treasury department (the Company treasury) under policies approved by the Board of Directors. Company treasury identifies, evaluates and hedges financial risks in close co-operation with the Company's operating units. The Board provides 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

Exchange rate risk

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

ii. 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 Company treasury. Foreign exchange risk arises when future commercial transactions or recognised assets or liabilities are denominated in a currency that is not the entity's functional currency.

iii. The Company's businesses involve some non-functional currency operations (the Company's functional currency: NTD). 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 amount (in thousands)	Exchange rate	Book value in thousands of New Taiwan dollars
Financial assets
Monetary items
USD:NTD	$ 7,308	31.374	$ 229,282
EUR:NTD	251	36.90	9,262
CNY:NTD	431	4.496	1,937
JPY:NTD	676	0.201	136

Non-monetary items

Investments accounted for under equity method

USD:NTD

Financial assets at fair value through other comprehensive income

USD:NTD

Others

USD:NTD

Financial liabilities

Monetary items

USD:NTD

JPY:NTD

December 31, 2024

	Foreign currency amount (in thousands)	Exchange rate	Book value in thousands of New Taiwan dollars
Financial assetss
Monetary items
USD:NTD	$ 13,469	32.785	$ 441,581
EUR:NTD	610	34.14	20,825
Non-monetary items
Investments accounted for under equity method
USD:NTD	$ 27,568	32.785	$ 903,815
Financial assets at fair value through other comprehensive income
USD:NTD	$ 411	32.785	$ 13,459
Financial liabilities
Monetary items
USD:NTD	$ 32,361	32.785	$ 1,060,955

The total exchange (loss) and gain, including realised and unrealised, arising from significant foreign exchange variation on the monetary items held by the Company for the years ended December 31, 2025 and 2024, amounted to $28,684 thousand and $(29,078 thousand), respectively.

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

Year ended December 31, 2025

Risk	Degree of variation	Profit and loss sensitivity
Monetary items
Exchange rate risk	NTD/USD exchange rate + / - 1%	$ (9,884) thousand
Exchange rate risk	NTD/EUR exchange rate + / - 1%	93 thousand
Exchange rate risk	NTD/CNY exchange rate + / - 1%	19 thousand
Exchange rate risk	NTD/JPY exchange rate + / - 1%	(4) thousand
Non-monetary items
Exchange rate risk	USD/NTD exchange rate + / - 1%	11,162 thousand
	Year ended December 31, 2024
Risk	Degree of variation	Profit and loss sensitivity
Monetary items
Exchange rate risk	NTD/USD exchange rate + / - 1%	$ (6,194) thousand
Exchange rate risk	NTD/EUR exchange rate + / - 1%	208 thousand
Non-monetary items
Exchange rate risk	USD/NTD exchange rate + / - 1%	9,173 thousand

Price risk

i. The Company'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 Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company.

ii. The Company's investments in equity securities comprise shares issued by domestic and foreign 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 $15,242 thousand and $3,330 thousand, respectively, as a result of other comprehensive income classified as equity investment at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

i. The Company’s main interest rate risk arises from borrowings with variable rates, which expose the Company 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.

ii. The Company’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.

iii. 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 $2,039 thousand and $2,125 thousand, respectively. The main factor is that changes in interest expense resulting from floating-rate borrowings.

(b) Credit risk

i. Credit risk refers to the risk of financial loss to the Company 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.

ii. The Company manages its credit risk taking into consideration the entire Company’s concern. For the banks and financial institutions the Company transacts with, it was set that only the companies with good credit quality may be accepted as counterparties of transaction. According to the Company’s credit policy, the Company 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. The utilisation of credit limits is regularly monitored.

55 -

iv. In line with credit risk management procedure, when the counterparty's contract payments are past due over 180 days, the default has occurred.

iv. The Company 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.

v. 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.

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

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

i. Cash flow forecasting is performed in the operating entities of the Company and aggregated by Company treasury. Company treasury monitors rolling forecasts of the Company'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 Company does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities. Such forecasting takes into consideration the Company's debt financing plans, covenant compliance, compliance with internal balance sheet ratio targets.

ii. The Company has the following undrawn borrowing facilities:

	December 31, 2025	December 31, 2024
NTD	$ 66,000	$ 68,000

iii. The table below analyses the Company'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.

56 -

December 31, 2025

	Book value	contractual cash flows	Less than 1 year	Between 1 and 5 years	Over 5 years
Non-derivative financial liabilities
Short-term borrowings	$ 180,000	$ 180,000	$ 180,000	$ -	$ -
Notes payable	-	-	-	-	-
Accounts payable (including related parties)	1,168,583	1,168,583	1,168,583	-	-
Other payables (including related parties)	90,551	90,551	90,551	-	-
Long-term borrowings (including current portion)	23,895	23,895	15,776	8,119	-
Guarantee deposits received	17	17	17	-	-
Lease liabilities	130,088	164,166	7,780	34,587	121,782
	$ 1,593,134	$ 1,627,212	$ 1,462,707	$ 42,706	$ 121,782

December 31, 2024

	Book value	contractual cash flows	Less than 1 year	Between 1 and 5 years	Over 5 years
Non-derivative financial liabilities
Short-term borrowings	$ 180,000	$ 180,000	$ 180,000	$ -	$ -
Notes payable (including related parties)	1,018,289	1,018,289	1,018,289	-	-
Other payables (including related parties)	106,452	106,452	106,452	-	-
Long-term borrowings (including current portion)	32,532	32,532	21,038	11,494	-
Guarantee deposits received	19	19	19	-	-
Lease liabilities	138,551	176,650	7,721	28,729	140,200
	$ 1,475,843	$ 1,513,942	$ 1,333,519	$ 40,223	$ 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 Company'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 at December 31, 2025 and 2024 are as follows:

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

December 31, 2025	Level 1	Level 2	Level 3	Total
Recurring fair value measurements
Financial assets at fair value through other comprehensive income
Equity securities	$ 128,095	$ -	$ 24,328	$ 152,423
December 31, 2024	Level 1	Level 2	Level 3	Total
Recurring fair value measurements
Financial assets at fair value through other comprehensive income
Equity securities	$ -	$ -	$ 33,301	$ 33,301

(b) The methods and assumptions the Company 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.

58 -

When assessing non-standard and low-complexity financial instruments, the Company 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 Company'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 Company'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 3 for the years ended December 31, 2025 and 2024:

	Equity instrument
At January 1, 2025	$ 33,301
Losses recognised in other comprehensive income	119,122
Movement from Level 3 to Level 1	(128,095)
At December 31, 2025	$ 24,328
	Equity instrument
At January 1, 2024	$ 41,219
Losses recognised in other comprehensive income	(7,918)
At December 31, 2024	$ 33,301

E. For the years ended December 31, 2025 and 2024, there was no transfer between Level 1 and Level 2.
F. Transfer from and to Level 3 occurred 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
Estimated loss based on post-period evaluation:	(27,658)
Fair value at March 26, 2026:	$100,437

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.

G. For the Company’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.

H. 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:

60 -

	December 31, 2025		Significant unobservable input	Range	Relationship of inputs to fair value
	Fair value	Valuation technique
Equity instrument:
Unlisted shares	$ 24,328	Market comparable companies	Price to book ratio、	1.53-5.50	The higher the multiple, the higher the fair value;
			Discount for lack of arketability	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 Fair value	Valuation technique	Significant unobservable input	Range	Relationship of inputs to fair value
Equity instrument:
Unlisted shares	$ 33,301	Market comparable companies	Price to book ratio	1.53-5.50	The higher the multiple, the higher the fair value;
			Discount for lack of arketability	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 Company has carefully assessed the valuation models and assumptions used to measure fair value. However, use of different valuation models or assumptions may result in different measurement. The following is the effect on profit or loss or on other comprehensive income from financial assets and liabilities categorised within Level 3 if the inputs used to valuation models have changed:

62 -

	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%	$ -	$ -	$ 243	$ 243
	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%	$ -	$ -	$ 427	($ 427)

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. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company's paid-in capital: 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.

14. Segment Information

Not applicable.

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

Holder	Marketable securities	Relationship with the securities issuer	issuer General ledger account	As of December 31, 2025				Footnote
				Number of shares	Book value (Note 1)	Ownership (%)	Fair value
AVISION INC.	Stocks 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.	Stocks 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 "Book value" 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 NT$100 million or 20% of paid-in capital or more
Year ended 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)		Footnote
			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	AVISION 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 transaction	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 transaction	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.

67 -

Table 5:
Information on investees (not including investees in Mainland China) for 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	Foot- note
				Balance as at December 31, 2025	Balance as at December 31, 2024			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.	USA	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.

69 -

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 Co., Ltd.	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.

71 -

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.

AVISION INC.
Statements of Significant Accounting Items
Year ended December 31, 2025

Item	Page
(1) STATEMENT OF CASH AND CASH EQUIVALENTS	74
(2) STATEMENT OF ACCOUNTS RECEIVABLE	75
(3) STATEMENT OF INVENTORIES	76
(4) STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD	77
(5) STATEMENT OF SHORT-TERM BORROWINGS	78
(6) STATEMENT OF ACCOUNTS PAYABLE	79
(7) STATEMENT OF OPERATING INCOME, NET	80
(8) STATEMENT OF OPERATING COSTS	81
(9) STATEMENT OF MANUFACTURING EXPENSES	82
(10) STATEMENT OF SELLING EXPENSES	83
(11) STATEMENT OF ADMINISTRATIVE EXPENSES	84
(12) STATEMENT OF RESEARCH DEVELOPMENT EXPENSES	85
(13) STATEMENT OF LABOUR, DEPRECIATION AND AMORTIZATION EXPENSES BY FUNCTION	86-87

73 -

AVISION INC.
STATEMENT OF CASH AND CASH EQUIVALENTS
DECEMBER 31, 2025

Statement 1
Expressed in thousands of NTD

Item	Description			Amount
Cash on hand and petty cash				638
Bank deposits
Checking accounts				2
Demand deposits - NTD				31,759
Demand deposits – Foreign currency	USD	2,284 thousand	Conversion rate 31.43	71,771
	EUR	39 thousand	Conversion rate 36.90	1,442
	JPY	426 thousand	Conversion rate 0.20	85
	CNY	369 thousand	Conversion rate 4.50	1,659
Total				107,356

74 -

AVISION INC.
STATEMENT OF ACCOUNTS RECEIVABLE
DECEMBER 31, 2025

Statement 2
Expressed in thousands of NTD

Client Name	Description	Amount	Note
General customers
SUN ELECTRONICS LTD.	Purchases	9,936
FOJHUN EXSOM CO.	Purchases	13,117
PFU LIMITED	Purchases	7,096
DATECSA S.A.	Purchases	4,875
INFOACER CO.	Purchases	5,154
Others	Purchases	46,862	Balance of each client has not exceeded 5% of total account balance
		87,040	Accounts aged over a year amounted to $39,338 thousand
Less: Allowance for uncollectible accounts		(40,691)
		46,349
Related parties
Avision Europe GMbH		24,233
Avision Labs, Inc.		21,868
Avision Brazil Ltda		5,562
Avision Digital Office Equipment (Shanghai) Trading Co., Ltd.		1,980
		53,643
Total		99,992

75 -

AVISION INC.
STATEMENT OF INVENTORIES
DECEMBER 31, 2025

Statement 3
Expressed in thousands of NTD

Item	Amount
	Cost	Realizable value
Raw materials	96,904	92,236
Semi-finished goods and current work in progress	28,377	26,197
Finished goods	209,690	188,870
	334,971
Less: Allowance for inventory valuation loss and slow-moving loss	(60,335)
Total	274,636	307,303

Note: Please refer to Note 4(10) for the method of determining net realisable value.

76 -

AVISION INC.
STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD
FOR THE YEAR ENDED DECEMBER 31, 2025

Statement 4
Expressed in thousands of NTD

	Beginning Balance		Addition (Decrease) (Note)			Ending Balance			Market Value or Net Assets Value		Provision of collateral or pledged assets	Note
Name	Shares (in thousands)	Amount	Shares (in thousands)	Amount	Investment Income (Loss)	Shares (in thousands)	Percentage of Ownership	Amount	Unit price	Total amount
Avision International Inc.	38,546	$ 897,765	-	$ 50,719	$ 124,291	38,546	100%	$ 1,072,775	$ 31.06	$ 1,197,111	None	None
Avision Development Inc.	8,390	6,050	-	117	23,782	8,390	100%	29,949	3.57	29,949	None	None
Avision Brasil Ltda	Cash USD550,500	5,317	-	251	(7,037)	現金 USD 550,500	100%	(1,469)	(2.67)	(1,469)	None	None
Quantum Investment Co., Ltd.	2,550	22,735	-	(7,988)	24,307	2,550	99%	39,054	18.22	46,473	None	None
		$ 931,867		$ 43,099	$ 165,343			$ 1,140,309

Note: Addition (Decrease) includes realised profit from sales of investments accounted for using the equity method and accumulated translation adjustment of investees.

AVISION INC.
STATEMENT OF SHORT-TERM BORROWINGS
DECEMBER 31, 2025

Statement 5
Expressed in thousands of NTD

Nature	Description	Ending Balance	Contract Period	Range of Interest Rate	Credit Line	Collateral
Financial Institutions Secured short-term	Bank short-term loan	30,000	2025.07.24-2026.07.24	3.103%	100,000	Property, plant and equipment
Financial Institutions Secured short-term	Bank short-term loan	20,000	2025.08.20-2026.08.20	3.103%	Same as above	Property, plant and equipment
Financial Institutions Secured short-term	Bank short-term loan	20,000	2025.08.26-2026.08.26	3.103%	Same as above	Property, plant and equipment
Financial Institutions Secured short-term	Bank short-term loan	10,000	2025.09.03-2026.09.03	3.103%	Same as above	Property, plant and equipment
Financial Institutions Secured short-term	Bank short-term loan	20,000	2025.09.24-2026.09.24	3.103%	Same as above	Property, plant and equipment
Financial Institutions Secured short-term	Bank short-term loan	80,000	2025.08.26-2026.02.06	2.700%	80,000	Property, plant and equipment
Total		180,000

78 -

AVISION INC.
STATEMENT OF ACCOUNTS PAYABLE
DECEMBER 31, 2025

Statement 6
Expressed in thousands of NTD

Supplier Name	Description	Amount	Note
General suppliers
RUBBERTEK INDUSTRIAL CO., LTD.	Purchases	4,606
AVNET ASIA PTE LTD., TAIWAN BRANCH (SINGAPORE)	Purchases	4,047
UCHEER Group	Purchases	3,394
Others	Purchases	49,582	Balance of each supplier has not exceeded 5% of total account balance
		61,629
Related parties
Avision (Suzhou) Co., Ltd.		1,106,954
Total		1,168,583

79 -

AVISION INC.
STATEMENT OF OPERATING INCOME, NET
FOR THE YEAR ENDED DECEMBER 31, 2025

Statement 7
Expressed in thousands of NTD

Item	Volume	Amount
Multi-function peripherals and related products	131,749 sets	650,891
Image scanners	19,834 sets	45,502
Digital office equipment	89,516 sets	162,492
Other products		61,147
Other operating revenue		16,549
Service revenue		32,717
Total		969,298

80 -

AVISION INC.
STATEMENT OF OPERATING COSTS
FOR THE YEAR ENDED DECEMBER 31, 2025

Statement 8
Expressed in thousands of NTD

Item	Amount
Beginning raw materials	115,239
Add: Raw materials purchased	305,932
Less: Ending raw materials	( 96,904 )
Transferred to expenses	( 5,055 )
Transferred to disposals	( 2,926 )
Gain (Loss) on physical inventory	( 9 )
Raw materials used	316,277
Direct labor	18,349
Manufacturing expense	137,069
Manufacturing cost	471,695
Add: Beginning work in progress	1,487
Less: Ending work in progress	( 6,236 )
Add: Beginning semi-finished goods	29,083
Net purchase for the year	5,048
Less: Ending semi-finished goods	( 22,141 )
Transferred to expenses	( 6,776 )
Transferred to disposals	( 1,323 )
Cost of finished goods	470,837
Add: Beginning finished goods	165,530
Net purchase for the year	320,891
Less: Ending finished goods	( 209,690 )
Transferred to expenses	( 8,132 )
Transferred to disposals	( 700 )
Deduction of manufacturing and selling	( 85 )
Cost of goods manufactured and sold	738,651
Less: Others	( 2,877 )
Operating costs	735,774

81 -

AVISION INC.
STATEMENT OF MANUFACTURING EXPENSES
FOR THE YEAR ENDED DECEMBER 31, 2025

Statement 9
Expressed in thousands of NTD

Item	Amount
Wages and salaries	60,122
Depreciation expense	15,305
Import expenses	10,980
Other expenses (Note)	50,662
Total	137,069

Note: Balance of each item has not exceeded 5% of total account balance

82 -

AVISION INC.
STATEMENT OF SELLING EXPENSES
FOR THE YEAR ENDED DECEMBER 31, 2025

Statement 10
Expressed in thousands of NTD

Item	Amount
Wages and salaries	23,088
Export expense	13,197
Other expenses	11,710
Others (Note)	13,210
Total	61,205

Note: Balance of each item has not exceeded 5% of total account balance

83 -

AVISION INC.
STATEMENT OF ADMINISTRATIVE EXPENSES
FOR THE YEAR ENDED DECEMBER 31, 2025

Statement 11
Expressed in thousands of NTD

Item	Amount
Wages and salaries	30,696
Insurance expense	5,229
Service expense	12,905
Other expenses	3,660
Others (Note)	14,688
Total	67,178

Note: Balance of each item has not exceeded 5% of total account balance

84 -

AVISION INC.
STATEMENT OF RESEARCH DEVELOPMENT EXPENSES
FOR THE YEAR ENDED DECEMBER 31, 2025

Statement 12
Expressed in thousands of NTD

Item	Amount
Wages and salaries	211,516
Insurance expense	20,812
Pesnions	11,187
Others (Note)	57,708
	301,223

Note: Balance of each item has not exceeded 5% of total account balance

85 -

AVISION INC.
STATEMENT OF LABOUR, DEPRECIATION AND AMORTIZATION EXPENSES BY FUNCTION
FOR THE YEAR ENDED DECEMBER 31, 2025

Statement 13
Expressed in thousands of NTD

| Function
Nature | Year ended December 31, 2025 | | | Year ended December 31, 2024 | | |
| --- | --- | --- | --- | --- | --- | --- |
| | Classified as Operating Costs | Classified as Operating Expenses | Total | Classified as Operating Costs | Classified as Operating Expenses | Total |
| Employee benefit expense | | | | | | |
| Wages and salaries | $ 75,742 | $ 265,393 | $ 341,135 | $ 86,187 | $ 264,126 | $ 350,313 |
| Share-based payments | 1,872 | - | 1,872 | 1,167 | 4,245 | 5,412 |
| Labour and health insurance fees | 6,474 | 24,707 | 31,181 | 6,758 | 24,651 | 31,409 |
| Pension costs | 3,676 | 14,031 | 17,708 | 3,933 | 14,344 | 18,277 |
| Directors’ remuneration | - | - | - | - | - | - |
| Other personnel expenses | 4,029 | 9,634 | 13,663 | 5,278 | 12,627 | 17,905 |
| Depreciation expense | 15,305 | 6,738 | 22,043 | 13,921 | 7,652 | 21,573 |
| Amortisation expense | 4,037 | 635 | 4,672 | 175 | 561 | 736 |

Note:
1. As at December 31, 2024 and 2023, the Company had average of 351 and 378 employees, including 5 non-employee directors, respectively.
2. A company whose stock is listed for trading on the stock exchange or over-the-counter securities exchange shall additionally disclose the following information:
(1) Average employee benefit expense in current year was $1,172 ((Total employee benefit expense in current year–Total directors’ compensation in current year)/(Number of employees in current year–Number of non-employee directors in current year))
Average employee benefit expense in previous year was $1,135 ((Total employee benefit expense in previous year–Total directors’ compensation in previous year)/(Number of employees in previous year–Number of non-employee directors in previous year)).

87 -

AVISION INC.

STATEMENT OF LABOUR, DEPRECIATION AND AMORTIZATION EXPENSES BY FUNCTION

FOR THE YEAR ENDED DECEMBER 31, 2025

Statement 13

Expressed in thousands of NTD

(2) Average employee salaries in current year were $986 (Total employee salaries in current year/(Number of employees in current year–Number of non-employee directors in current year)).

Average employee salaries in previous year were $939 (Total employee salaries in previous year/(Number of employees in previous year–Number of non-employee directors in previous year)).

(3) Adjustments of average employee salaries were 5.02% ((Average employee salaries in current year–Average employee salaries in previous year)/Average employee salaries in previous year).

(4) There was no supervisor’s remuneration as the Company had set up an audit committee.

(5) The remuneration policies of the Company’s directors, managers and employees are described as follows:

The remuneration policies of the Company are determined based on the position, personal ability, contribution to the Company and performance and have a positive correlation with the operating performance.

A. Directors: In accordance with the Articles of Incorporation of the Company, a ratio of distributable profit of the current year, after covering accumulated losses, is distributed as directors’ remuneration. The ratio is not higher than 2%. The distribution is reviewed by the remuneration committee and reported to the Board of Directors for resolution.

B. Managers: The remuneration committee of the Company assesses managers’ salaries based on the position, professional knowledge, contribution to the Company’s operations and future risk. The assessment is reviewed by the remuneration committee and reported to the Board of Directors for resolution.

C. Employees: Employees’ salaries are stipulated by regularly measuring and considering the general pay levels of the market and industry. If the Company has distributable profit of the current year, 6% shall be distributed as employees’ compensation. However, if the Company has accumulated deficit, earnings shall first be reserved to cover losses. Employees’ compensation can be distributed in the form of shares or cash. The employees include the employees of subsidiaries who meet specific requirements. The requirements are stipulated by the Board of Directors. The distribution is reviewed by the remuneration committee and reported to the Board of Directors for resolution.

D. The Company has set up work rules and related personnel management regulation which cover basic salaries, working hours, leave, pension payment, labour and health insurance payment, workers’ compensation, etc. for the hired employees and also set up an employees’ welfare committee which was elected by the employees to handle various welfare matters.

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AVISION — Audit Report / Information 2025

52044_rns_2026-05-18_fc0edfc9-1f29-45d4-87ba-c9e8fb3d2588.pdf

AVISION INC.

PARENT COMPANY ONLY FINANCIAL

STATEMENTS AND INDEPENDENT AUDITORS' REPORT

YEARS ENDED DECEMBER 31, 2025 AND 2024

INDEPENDENT AUDITORS' REPORT TRANSLATED FROM CHINESE

Opinion

Basis for opinion

Emphasis of Matter - Significant Events after the Reporting Period - Approval by competent authority for covering deficit by capital reduction

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 parent company only financial statements

Auditors' responsibilities for the audit of the parent company only financial statements

Other matters

AVISION INC.

PARENT COMPANY ONLY BALANCE SHEETS

YEARS ENDED DECEMBER 31, 2025 AND 2024

AVISION INC.

6. Details of Significant Accounts

(1) Cash and cash equivalents

(2) Notes and accounts receivable

B. New system of pensions

(12) Share-based payment

7. Related Party Transactions

(1) Names of related parties and relationship

D. Assets revitalisation

(2) Capital management

Price risk

Cash flow and fair value interest rate risk

(b) Credit risk

(4) Fair value information

13. Supplementary Disclosures

14. Segment Information

AVISION INC.

STATEMENT OF LABOUR, DEPRECIATION AND AMORTIZATION EXPENSES BY FUNCTION

FOR THE YEAR ENDED DECEMBER 31, 2025

Statement 13

Expressed in thousands of NTD

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AVISION Audit Report / Information 2025