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DATA IMAGE — Annual Report 2026
Apr 30, 2026
52303_rns_2026-04-30_46518245-4412-4f21-aeda-29b01a4dbc93.pdf
Annual Report
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Data Image Corporation
Financial Statements for the Years Ended December 31, 2025 and 2024 and Independent Auditors’ Report
Independent Auditors' Report
The Board of Directors and Shareholders
Data Image Corporation
Opinion
We have audited the accompanying financial statements of Data Image Corporation, which comprise the balance sheets as of December 31, 2025 and 2024, and the statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the financial statements, including material accounting policy information.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of Data Image Corporation as of December 31, 2025 and 2024, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.
Basis for Opinion
We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial Statements section of our report. We are independent of Data Image Corporation in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements for the year ended December 31, 2025. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
The key audit matter identified in Data Image Corporation financial statements for the year ended December 31, 2025 is stated as follows:
Occurrence of operating revenue
Data Image Corporation is engaged in the design, manufacturing, and sales of LCD touch modules and LCD modules. The manufacturing of LCD touch modules and LCD modules are customized products and make development according to different purposes and needs of customers. Whether the sales transactions underlying the customer's operating revenue have genuinely occurred has a material impact on the presentation of the financial statements; therefore, we include the occurrence of the abovementioned operating revenue from customers as a key audit matter.
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Corresponding audit procedures
Our audit procedures for the key audit matters above include understanding the major internal control design and the effectiveness of implementation, and sampling and implementing relevant audits to ensure that the revenue transactions occurred.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing Data Image Corporation’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 Data Image Corporation 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 Data Image Corporation’s financial reporting process.
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
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Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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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 Data Image Corporation’s internal control.
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Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
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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 Data Image Corporation’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the
date of our auditors' report. However, future events or conditions may cause Data Image Corporation to cease to continue as a going concern.
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Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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Obtain sufficient and appropriate audit evidence regarding the financial information of entities or business activities within Data Image Corporation to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements for the year ended December 31, 2025, and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
The engagement partners on the audits resulting in this independent auditor s' report are Chih-Ming Shao and Kuo-Ning Huang.
Deloitte & Touche
Taipei, Taiwan
Republic of China
March 2, 2026
Notice to Readers
The accompanying financial statements are intended only to present the financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such financial statements are those generally applied in the Republic of China.
For the convenience of readers, the independent auditors' report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors' report and financial statements shall prevail.
Data Image Corporation
Balance Sheets
December 31, 2025 and 2024
(In Thousands of New Taiwan Dollars)
| Assets | December 31, 2025 | December 31, 2024 | ||
|---|---|---|---|---|
| Amount | % | Amount | % | |
| Current assets | ||||
| Cash and cash equivalents (Note 6) | $ 497,817 | 19 | $ 699,083 | 26 |
| Financial assets at fair value through profit or loss - Current (Note 7) | 70 | - | - | - |
| Accounts receivable (Notes 9 and 19) | 431,465 | 17 | 430,560 | 16 |
| Accounts receivable from related parties (Notes 19 and 27) | 22,740 | 1 | 17,830 | 1 |
| Other receivables (Note 9) | 10,823 | - | 6,122 | - |
| Other receivables from related parties (Note 27) | 103 | - | 107 | - |
| Inventories (Note 10) | 296,375 | 12 | 291,036 | 11 |
| Other current assets (Notes 15, 27 and 28) | 14,998 | 1 | 6,111 | - |
| Total current assets | 1,274,391 | 50 | 1,450,849 | 54 |
| Non-current assets | ||||
| Financial assets at amortized cost - non-current (Notes 8 and 28) | 1,054 | - | - | - |
| Investments accounted for using the equity method (Note 11) | 1,175,937 | 46 | 1,150,910 | 43 |
| Property, plant and equipment (Notes 12 and 27) | 35,541 | 1 | 21,722 | 1 |
| Right-of-use assets (Notes 13 and 27) | 39,855 | 2 | 37,186 | 1 |
| Intangible assets | 1,772 | - | 2,181 | - |
| Deferred tax assets (Note 21) | 13,606 | - | 9,200 | - |
| Net defined benefit assets - Non-current (Note 14) | 2,196 | - | 2,196 | - |
| Other non-current assets (Notes 15 and 28) | 30,412 | 1 | 14,613 | 1 |
| Total current assets | 1,300,373 | 50 | 1,238,008 | 46 |
| Total assets | $ 2,574,764 | 100 | $ 2,688,857 | 100 |
| Liabilities and equity | ||||
| Current liabilities | ||||
| Financial liabilities at fair value through profit or loss - Current (Note 7) | $ 843 | - | $ 1,824 | - |
| Contract liabilities - Current (Note 19) | 37,554 | 2 | 91,085 | 4 |
| Accounts payable (Note 16) | 213,721 | 8 | 155,824 | 6 |
| Accounts payable from related parties (Note 27) | 363,699 | 14 | 315,507 | 12 |
| Other payables (Note 17) | 93,818 | 4 | 85,924 | 3 |
| Other payables from related parties (Note 27) | 7,326 | - | 8,536 | - |
| Current tax liabilities (Note 21) | 32,250 | 1 | 29,200 | 1 |
| Provisions - Current | 5,660 | - | 5,660 | - |
| Lease liabilities - Current (Notes 13 and 27) | 11,252 | 1 | 8,997 | - |
| Other current liabilities | 2,304 | - | 2,293 | - |
| Total current liabilities | 768,427 | 30 | 704,850 | 26 |
| Non-current liabilities | ||||
| Deferred tax liabilities (Note 21) | 4,255 | - | 3,312 | - |
| Lease liabilities - Non-current (Notes 13 and 27) | 29,382 | 1 | 28,944 | 1 |
| Total non-current liabilities | 33,637 | 1 | 32,256 | 1 |
| Total liabilities | 802,064 | 31 | 737,106 | 27 |
| Equity | ||||
| Share capital | 750,996 | 29 | 780,996 | 29 |
| Capital surplus | 462,069 | 18 | 480,527 | 18 |
| Retained earnings | ||||
| Legal reserve | 186,918 | 7 | 164,945 | 6 |
| Special reserves | 8,278 | - | 26,854 | 1 |
| Unappropriated earnings | 369,973 | 15 | 506,707 | 19 |
| Total retained earnings | 565,169 | 22 | 698,506 | 26 |
| Other equity | (5,534) | - | (8,278) | - |
| Total equity | 1,772,700 | 69 | 1,951,751 | 73 |
| Total liabilities and equity | $ 2,574,764 | 100 | $ 2,688,857 | 100 |
The accompanying notes are an integral part of the financial statements.
Data Image Corporation
Statements of Comprehensive Income
For the Years Ended December 31, 2025 and 2024
(In Thousands of New Taiwan Dollars; Except Earnings Per Share)
| 2025 | 2024 | |||
|---|---|---|---|---|
| Amount | % | Amount | % | |
| Operating revenue (Notes 19 and 27) | $ 2,550,654 | 100 | $ 2,543,460 | 100 |
| Operating costs (Notes 10, 20 and 27) | 2,096,878 | 82 | 2,049,109 | 81 |
| Gross profit | 453,776 | 18 | 494,351 | 19 |
| Realized gain on transactions | 250 | - | 1,041 | - |
| Realized gross profit | 454,026 | 18 | 495,392 | 19 |
| Operating expenses (Notes 20 and 27) | ||||
| Selling expenses | 65,399 | 3 | 61,873 | 3 |
| General and administrative expenses | 106,108 | 4 | 108,583 | 4 |
| Research and development expenses | 110,223 | 4 | 109,780 | 4 |
| Expected credit loss(gain) | 4 | - | 473 | - |
| Total operating expenses | 281,734 | 11 | 280,709 | 11 |
| Operating income | 172,292 | 7 | 214,683 | 8 |
| Non-operating income and expenses (Notes 20 and 27) | ||||
| Interest income | 5,639 | - | 7,012 | - |
| Other gains and losses | (6,517) | - | (5,644) | - |
| Finance cost | (1,233) | - | (350) | - |
| Share of profit or loss of subsidiaries and associates | 64,247 | 2 | 44,475 | 2 |
| Total non-operating income and expenses | 62,136 | 2 | 45,493 | 2 |
| Income before income tax | 234,428 | 9 | 260,176 | 10 |
| Income tax expenses (Note 21) | 34,337 | 1 | 36,982 | 1 |
| Net income | 200,091 | 8 | 223,194 | 9 |
| Other comprehensive income (Note 18) | ||||
| Items that will not be reclassified subsequently to profit or loss | ||||
| Share of the other comprehensive income (loss) of subsidiaries accounted for using the equity method | 521 | - | 316 | - |
(Continued)
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Data Image Corporation
Statements of Comprehensive Income
For the Years Ended December 31, 2025 and 2024
(In Thousands of New Taiwan Dollars; Except Earnings Per Share)
| 2025 | 2024 | |||
|---|---|---|---|---|
| Amount | % | Amount | % | |
| Items that may be reclassified subsequently to profit or loss: | ||||
| Share of the other comprehensive income (loss) of subsidiaries and associates accounted for using the equity method | $ 2,556 | - | $ 18,414 | 1 |
| Other comprehensive income (loss), net of income tax | 3,077 | - | 18,730 | 1 |
| Total comprehensive income | $ 203,168 | 8 | $ 241,924 | 10 |
| Earnings per share (Note 21) | ||||
| Basic earnings per share | $ 2.61 | $ 2.93 | ||
| Diluted earnings per share | $ 2.59 | $ 2.91 |
The accompanying notes are an integral part of the financial statements.
Data Image Corporation
Statement of Changes in Equity
For the Years Ended December 31, 2025 and 2024
(In Thousands of New Taiwan Dollars)
| Share Capital (Note 18) | Capital Surplus (Note 18) | Retained Earnings (Note 18) | Other Equity (Note 18) | Treasury shares | Total Equity | ||||
|---|---|---|---|---|---|---|---|---|---|
| Legal Reserve | Special Reserve | Unappropriated Earnings | Exchange Differences on Translation of Financial Statements of Foreign Operations | Unrealized Valuation Gains (Losses) on Financial Assets at Fair Value through Other Comprehensive Income | |||||
| Balance on January 1, 2024 | $ 693,996 | $ 60,000 | $ 137,054 | $ 20,397 | $ 598,919 | $ (26,998) | $ 144 | $ - | $ 1,483,512 |
| Appropriation of 2023 earnings: | |||||||||
| Legal reserve | - | - | 27,891 | - | (27,891) | - | - | - | - |
| Special reserve | - | - | - | 6,457 | (6,457) | - | - | - | - |
| Cash dividends distributed by the Company | - | - | - | - | (277,598) | - | - | - | (277,598) |
| - | - | 27,891 | 6,457 | (311,946) | - | - | - | (277,598) | |
| Net income for the year ended December 31, 2024 | - | - | - | - | 223,194 | - | - | - | 223,194 |
| Other comprehensive income for the year ended December 31, 2024, net of income tax | - | - | - | - | 167 | 18,414 | 149 | - | 18,730 |
| Total comprehensive income for the year ended December 31, 2024 | - | - | - | - | 223,361 | 18,414 | 149 | - | 241,924 |
| Gain from exercise of disgorgement | - | 6 | - | - | - | - | - | - | 6 |
| Difference between consideration and carrying amount of subsidiaries acquired | - | - | - | - | (3,627) | 33 | (20) | - | (3,614) |
| Issuance of ordinary shares for cash | 87,000 | 419,160 | - | - | - | - | - | - | 506,160 |
| Share-based payments | - | 1,361 | - | - | - | - | - | - | 1,361 |
| Balance on December 31, 2024 | 780,996 | 480,527 | 164,945 | 26,854 | 506,707 | (8,551) | 273 | - | 1,951,751 |
| Appropriation of 2024 earnings: | |||||||||
| Legal reserve | - | - | 21,973 | - | (21,973) | - | - | - | - |
| Special reserve | - | - | - | (18,576) | 18,576 | - | - | - | - |
| Cash dividends distributed by the Company | - | - | - | - | (234,299) | - | - | - | (234,299) |
| - | - | 21,973 | (18,576) | (237,696) | - | - | - | (234,299) | |
| Net income for the year ended December 31, 2025 | - | - | - | - | 200,091 | - | - | - | 200,091 |
| Other comprehensive income for the year ended December 31, 2025, net of income tax | - | - | - | - | 333 | 2,556 | 188 | - | 3,077 |
| Total comprehensive income for the year ended December 31, 2025 | - | - | - | - | 200,424 | 2,556 | 188 | - | 203,168 |
| Buy-back of ordinary shares | - | - | - | - | - | - | - | (147,920) | (147,920) |
| Cancellation of treasury shares | (30,000) | (18,458) | - | - | (99,462) | - | - | 147,920 | - |
| Balance on December 31, 2025 | $ 750,996 | $ 462,069 | $ 186,918 | $ 8,278 | $ 369,973 | $ (5,995) | $ 461 | $ - | $ 1,772,700 |
The accompanying notes are an integral part of the financial statements.
Data Image Corporation
Statements of Cash Flows
For the Years Ended December 31, 2025 and 2024
(In Thousands of New Taiwan Dollars)
| 2025 | 2024 | |
|---|---|---|
| Cash flows from operating activities | ||
| Income before income tax | $ 234,428 | $ 260,176 |
| Adjustments for: | ||
| Depreciation expenses | 23,049 | 20,530 |
| Amortization expenses | 715 | 1,328 |
| Expected credit loss recognized | 4 | 473 |
| Net loss on fair value changes of financial assets and liabilities at fair value through profit or loss | (4,075) | 20,070 |
| Finance cost | 1,233 | 350 |
| Interest income | (5,639) | (7,012) |
| Share-based payments | - | 1,361 |
| Share of profit or loss of subsidiaries and associates | (64,247) | (44,475) |
| Gain on lease modification | (14) | - |
| Write-down and scrapping losses of inventories | 38,594 | 15,288 |
| Realized gain on transactions with associates | (250) | (1,041) |
| Changes in operating assets and liabilities | ||
| Financial assets mandatorily measured at fair value through profit or loss | 24,971 | 4,196 |
| Accounts receivable | (909) | (94,519) |
| Accounts receivable from related parties | (4,910) | (10,553) |
| Other receivables | (2,685) | (1,786) |
| Other receivables from related parties | 4 | - |
| Inventories | (43,933) | 5,411 |
| Prepayments | (6,783) | 212 |
| Other current assets | (2,104) | 47 |
| Financial liabilities held for trading | (21,947) | (18,196) |
| Contract liabilities - Current | (53,531) | 11,221 |
| Notes payable | - | (307) |
| Accounts payable | 57,897 | 14,208 |
| Accounts payable from related parties | 48,192 | (235) |
| Other payables | 4,827 | 2,155 |
| Other payables from related parties | (1,210) | (4,197) |
| Provisions | - | 1,377 |
| Other current liabilities | 11 | 151 |
| Cash generated from operations | 221,688 | 176,233 |
| Interest received | 5,685 | 6,972 |
| Interest paid | (1,233) | (350) |
| Income tax paid | (34,750) | (67,602) |
| Net cash generated from operating activities | 191,390 | 115,253 |
| Cash flows from investing activities | ||
| Purchase of financial assets at amortized cost | (18) | - |
| Acquisition of further interests in subsidiaries | - | (13,060) |
| Payments for property, plant and equipment and prepayment for equipment | (43,638) | (10,002) |
| (Continued) |
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Data Image Corporation
Statements of Cash Flows
For the Years Ended December 31, 2025 and 2024
(In Thousands of New Taiwan Dollars)
| 2025 | 2024 | |
|---|---|---|
| Proceeds from disposal of property, plant and equipment | $ 485 | $ - |
| Increase in refundable deposits | - | (17) |
| Decrease in refundable deposits | 2,031 | - |
| Payments for intangible assets | (306) | (400) |
| Increase in other non-current assets | (89) | (265) |
| Dividends received | 42,547 | 26,592 |
| Net cash generated from investing activities | 1,012 | 2,848 |
| Cash flows from financing activities | ||
| Repayment of the principal portion of lease liabilities | (11,449) | (11,198) |
| Dividends paid | (234,299) | (277,598) |
| Proceeds from issuance of ordinary shares | - | 505,526 |
| Buy-back of ordinary shares | (147,920) | - |
| Gain from exercise of disgorgement | - | 6 |
| Net cash (used in) generated from financing activities | (393,668) | 216,736 |
| Net (decrease) increase in cash and cash equivalents | (201,266) | 334,837 |
| Cash and cash equivalents at the beginning of the year | 699,083 | 364,246 |
| Cash and cash equivalents at the end of the year | $ 497,817 | $ 699,083 |
The accompanying notes are an integral part of the financial statements.
Data Image Corporation
Notes to the Financial Statements
For the Years Ended December 31, 2025 and 2024
(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)
- General information
Data Image Corporation (the "Company") was approved by the Ministry of Economic Affairs on November 22, 1997 for establishment. Its scope of business is the design, manufacturing, and sales of LCD touch modules and LCD modules.
The Company's shares have been listed on the Taiwan Stock Exchange (TSE) since March 26, 2024.
The financial statements are presented in the New Taiwan Dollar, which is the Company's functional currency.
- Date and procedure for approving the financial statements
These financial statements were approved by the Board on March 2, 2026.
- Application of new and amended standards and interpretations
a. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the "IFRS Accounting Standards") endorsed and issued into effect by the Financial Supervisory Commission (FSC)
The initial application of the IFRS Accounting Standards endorsed and issued into effect by the FSC did not result in material changes in the Company's accounting policies and did not have a material impact on the financial position and financial performance of the Company.
b. The IFRS Accounting Standards endorsed by the FSC for application starting from 2026
| New, Amended and Revised Standards and Interpretations | Effective Date Announced by IASB |
|---|---|
| Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” | January 1, 2026 |
| Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity” | January 1, 2026 |
| Annual Improvements to IFRS Accounting Standards - Volume 11 | January 1, 2026 |
| IFRS 17 “Insurance Contracts” (including the 2020 and 2021 amendments to IFRS 17) | January 1, 2023 |
As of the date the financial statements were authorized for issue, the Company has assessed that the amendments to the above standards and interpretations have not had a material impact on the financial position and financial performance.
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c. The IFRS Accounting Standards in issue but not yet endorsed and issued into effect by the FSC
| New/Amended/Revised Standards and Interpretations | Effective Date Announced by IASB (Note 1) |
|---|---|
| Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture” | To be determined by IASB |
| IFRS 18 “Presentation and Disclosure in Financial Statements” | January 1, 2027 (Note 2) |
| IFRS 19 “Subsidiaries without Public Accountability: Disclosures” (including the 2025 amendments to IFRS 19) | January 1, 2027 |
| Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency” | January 1, 2027 |
Note 1: Unless stated otherwise, the above IFRS Accounting Standards are effective for annual reporting periods beginning on or after their respective effective dates.
Note 2: On September 25, 2025, the FSC announced that IFRS 18 will take effect starting from January 1, 2028. Domestic entities could elect to apply IFRS 18 for an earlier period after the endorsement of IFRS 18 by the FSC.
IFRS 18 “Presentation and Disclosure in Financial Statements” and consequential amendments
IFRS 18 will supersede IAS 1” Presentation of Financial Statements”. The main changes comprise:
1) To classify items of income and expenses presented in the statement of profit or loss into the operating, investing, financing, income taxes and discontinued operations categories, the Company shall assess whether it has specified main business activities of investing in particular types of assets and providing financing to customers.
2) The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.
3) Provides guidance to enhance the requirements of aggregation and disaggregation: The Company shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Company shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Company labels items as “other” only if it cannot find a more informative label.
4) Disclosures on Management-defined Performance Measures (MPMs): When in public communications outside financial statements and communicating to users of financial statements management’s view of an aspect of the financial performance of the Company as a whole, the Company shall disclose related information about its MPMs in a single note to the financial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards and the income tax and non-controlling interests effects of related reconciliation items.
In addition, the following consequential amendments have been made to IAS 7 “Statement of Cash Flows”:
1) The Company shall use operating profit or loss as the starting point when presenting cash flows from operating activities under the indirect method.
2) Interest and dividends received by the Company shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. However, if, after assessment,
the Company has a specific main operating activity, it shall determine how to classify dividends received, interest received and interest paid in the statement of cash flows by referring to how it classifies dividend income, interest income and interest expense in the statement of profit or loss. The total of each of these cash flows shall be classified in a single category in the statement of cash flows.
Except for the above impact, as of the date the financial statements were authorized for issue, the Company is continuously assessing the other impacts of the above amended standards and interpretations on the financial position and financial performance and will disclose the relevant impact when the assessment is completed.
4. Summary of material accounting policy information
a. Statement of compliance
The financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.
b. Basis of preparation
The financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair value and net defined benefit liabilities which are measured at the present value of the defined benefit obligation less the fair value of plan assets.
The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and based on the significance of the inputs to the fair value measurement in its entirety, are described as follows:
1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;
2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
3) Level 3 inputs are unobservable inputs for an asset or liability.
When preparing these parent company only financial statements, the Company used the equity method to account for its investments in subsidiaries, associates and joint ventures. In order for the amounts of the net profit for the year, other comprehensive income for the year and total equity in the parent company only financial statements to be the same with the amounts attributable to the owners of the Company in its consolidated financial statements, adjustments arising from the differences in accounting treatments between the parent company only basis and the consolidated basis were made to investments accounted for using the equity method, the share of profit or loss of subsidiaries and associates, the share of other comprehensive income of subsidiaries and associates and the related equity items, as appropriate, in these parent company only financial statements.
c. Classification of current and non-current assets and liabilities
Current assets include:
1) Assets held mainly for the purpose of trading;
2) Assets expected to be realized within 12 months after the reporting period; and
3) Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.
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Current liabilities include:
1) Liabilities held primarily for the purpose of trading;
2) Liabilities due to be settled within 12 months after the reporting period; and
3) Liabilities for which the Company does not have the substantial right at the end of the reporting period to defer settlement for at least 12 months after the reporting period.
Assets and liabilities that are not classified as current are classified as non-current.
d. Foreign currency
In preparing the financial statements of each individual entity, transactions in currencies other than the entity's functional currency (i.e., foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.
At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the period in which they arise.
Non-monetary item that are measured at historical cost in a foreign currency are not retranslated.
For the purpose of presenting financial statements, the financial statements of the Company's foreign operations (including subsidiaries and associates) that are prepared using functional currencies which are different from the currency of the Company are translated into the presentation currency, the New Taiwan dollar, as follows: Assets and liabilities are translated at the exchange rates prevailing at the end of the reporting period; and income and expense items are translated at the average exchange rates for the period. The resulting currency translation differences are recognized in other comprehensive income.
e. Inventories
Inventories consist of raw materials, supplies, finished goods and work in progress and are stated at the lower of cost or net realizable value. Inventory write-downs are made by item, except where it may be appropriate to group similar or related items. The net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded at the weighted-average cost on the balance sheet date.
f. Investment in subsidiaries
The Company uses the equity method to account for its investments in subsidiaries.
A subsidiary is an entity (including a structured entity) that is controlled by the Company.
Under the equity method, an investment in a subsidiary is initially recognized at cost and adjusted thereafter to recognize the Company's share of the profit or loss and other comprehensive income of the subsidiary. The Company also recognizes the changes in the Company's share of equity of subsidiaries.
Changes in the Company's ownership interest in a subsidiary that do not result in the Company losing control of the subsidiary are accounted for as equity transactions. The Company recognizes directly in equity any difference between the carrying amount of the investment and the fair value of the consideration paid or received.
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The Company assesses its investment for any impairment by comparing the carrying amount with the estimated recoverable amount as assessed based on the investee’s financial statements as a whole. Impairment loss is recognized when the carrying amount exceeds the recoverable amount. If the recoverable amount of the investment subsequently increases, the Company recognizes a reversal of the impairment loss; the adjusted post-reversal carrying amount should not exceed the carrying amount that would have been recognized (net of amortization or depreciation) had no impairment loss been recognized in prior years.
Profit or loss resulting from downstream transactions is eliminated in full only in the financial statements. Profit and loss resulting from upstream transactions and transactions between subsidiaries is recognized only in the financial statements and only to the extent of interests in the subsidiaries that are not related to the Company.
g. Investment in associates
An associate is an entity over which the Company has significant influence and which is neither a subsidiary nor an interest in a joint venture.
The Company uses the equity method to account for its investments in associates.
Under the equity method, investments in an associate are initially recognized at cost and adjusted thereafter to recognize the Company’s share of the profit or loss and other comprehensive income of the associate. The Company also recognizes the changes in the Company’s share of the equity of associates attributable to the Company.
Any excess of the cost of acquisition over the Company’s share of the net fair value of the identifiable assets and liabilities of an associate at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized. Any excess of the Company’s share of the net fair value of the identifiable assets and liabilities over the cost of acquisition, after reassessment, is recognized immediately in profit or loss.
The entire carrying amount of an investment (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is not allocated to any asset, including goodwill, that forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.
When the Company transacts with its associate, profits and losses resulting from the transactions with the associate are recognized in the Company’s financial statements only to the extent of interests in the associate that are not related to the Company.
h. Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment loss.
The depreciation of property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each reporting period, with the effects of any changes in the estimates accounted for on a prospective basis.
On derecognition of an item of property, plant and equipment, the difference between the sales proceeds and the carrying amount of the asset is recognized in profit or loss.
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i. Intangible assets
1) Acquired separately
Intangible assets with finite useful lives that are acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment loss. Amortization is recognized on a straight-line basis. The estimated useful lives, residual values, and amortization methods are reviewed at the end of each reporting period, with the effect of any changes in the estimates accounted for on a prospective basis.
2) Derecognition
On derecognition of an intangible asset, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss.
j. Impairment of property, plant and equipment, right-of-use assets and intangible assets
At the end of each reporting period, the Company reviews the carrying amounts of its property, plant and equipment, right-of-use asset and intangible assets, to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to the smallest group of cash-generating units on a reasonable and consistent basis of allocation.
The recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.
When an impairment loss is subsequently reversed, the carrying amount of the corresponding asset or cash-generating unit is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized on the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized in profit or loss.
k. Financial instruments
Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issuance of financial assets and financial liabilities (other than financial assets and financial liabilities at FVTPL) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognized immediately in profit or loss.
1) Financial assets
All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.
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a) Measurement categories
Financial assets are classified into the following categories: Financial assets at FVTPL and financial assets at amortized cost.
i. Financial assets at FVTPL
Financial assets are classified as at FVTPL when such financial assets are mandatorily classified as at FVTPL. Financial assets mandatorily classified as at FVTPL include investments in equity instruments which are not designated as at FVTOCI.
Financial assets at FVTPL are subsequently measured at fair value, and any dividends or interest earned on such financial assets are recognized in other income and interest income, respectively; any remeasurement gains or losses on such financial assets are recognized in other gains or losses. Fair value is determined in the manner described in Note 26: Financial Instruments.
ii. Financial assets at amortized cost
Financial assets that meet the following conditions are subsequently measured at amortized cost:
i) The financial assets are held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and
ii) The contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, accounts receivable at amortized cost, other receivables and refundable deposits, are measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.
Interest income is calculated by applying the effective interest rate to the gross carrying amount of such a financial asset.
Cash equivalents include time deposits with original maturities within 3 months from the date of acquisition, which are highly liquid, readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These cash equivalents are held for the purpose of meeting short-term cash commitments.
b) Impairment of financial assets
The Company recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including accounts receivable).
The Company always recognizes lifetime expected credit losses (ECLs) for accounts receivable. For all other financial instruments, the Company recognizes lifetime ECLs when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on a financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to 12-month ECLs.
Expected credit losses reflect the weighted average of credit losses with the respective risks of default occurring as the weights. Lifetime ECLs represent the expected credit losses that will
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result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECLs represent the portion of lifetime ECLs that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.
The impairment loss of all financial assets is recognized in profit or loss by a reduction in their carrying amounts through a loss allowance account.
c) Derecognition of financial assets
The Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.
On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognized in profit or loss.
2) Equity instruments
Equity instruments issued by the Company are recognized at the proceeds received, net of direct issue costs.
3) Financial liabilities
a) Subsequent measurement
Except for the following situations, all financial liabilities are measured at amortized cost using the effective interest method:
Financial liabilities at FVTPL
Financial liabilities are classified as at FVTPL when such financial liabilities are either held for trading.
Financial liabilities held for trading are stated at fair value, and any gains or losses on such financial liabilities are recognized in other gains or losses.
b) Derecognition of financial liabilities
The difference between the carrying amount of a financial liability derecognized and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.
4) Derivative financial instruments
The Company enters into a variety of derivative financial instruments to manage its exposure to foreign exchange rate risks, including foreign exchange swap contracts.
Derivatives are initially recognized at fair value at the date on which the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately. When the fair value of a derivative financial instrument is positive, the derivative is recognized as a financial asset; when the fair value of a derivative financial instrument is negative, the derivative is recognized as a financial liability.
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18 -
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Provisions
Provisions are measured at the best estimate of the discounted cash flows of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.
m. Revenue recognition
The Company identifies contracts with customers, allocates the transaction price to the performance obligations and recognizes revenue when performance obligations are satisfied.
1) Sale of goods
The Company recognizes revenue when control of the goods is transferred to the customer. When the goods are delivered to the customer’s specific location, it is the time when the customer has full discretion over the manner of distribution and price to sell the goods, has the primary responsibility for sales to future customers and bears the risks of obsolescence. Accounts receivable are recognized concurrently.
The Company does not recognize revenue on materials delivered to subcontractors because this delivery does not involve a transfer of control.
2) Provision of services
Service revenue is the provision of product processing services; that is, it is recognized when the processed products are delivered to the customer’s specific location
n. Leases
At the inception of a contract, the Company assesses whether the contract is, or contains, a lease.
The Company as lessee
The Company recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for short-term leases and low-value asset leases accounted for by applying a recognition exemption where lease payments are recognized as expenses on a straight-line basis over the lease terms.
Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the balance sheets.
Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.
Lease liabilities are initially measured at the present value of the lease payments, which comprise fixed payments. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the lessee’s incremental borrowing rate will be used.
Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in future lease payments resulting from a lease term, the Company remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is
reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate line in the balance sheets.
o. Borrowing costs
All borrowing costs are recognized in profit or loss in the period in which they are incurred.
p. Employee benefits
1) Short-term employee benefits
Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related services.
2) Retirement benefits
Payments to defined contribution retirement benefit plans are recognized as expenses when employees have rendered services entitling them to the contributions.
Defined benefit costs (including service cost, net interest and remeasurement) under defined benefit retirement benefit plans are determined using the projected unit credit method. Service cost and net interest on the net defined benefit liabilities (assets) are recognized as employee benefits expense in the period in which they occur. Remeasurement, comprising actuarial gains and losses and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which it occurs. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.
Net defined benefit liabilities (assets) represent the actual deficit (surplus) in the Company's defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.
q. Share-based payment arrangements
The fair value at the grant date is expensed on a straight-line basis over the vesting period, based on the Company's best estimates of the number of shares or options that are expected to ultimately vest, with a corresponding increase in capital surplus - employee share options. The grant date of issued ordinary shares for cash which are reserved for employees is the date on which the employees are informed.
r. Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
1) Current tax
Income tax payable (recoverable) is based on taxable profit (loss) for the year determined according to the applicable tax laws of each tax jurisdiction.
According to the Income Tax Act in the ROC, an additional tax on unappropriated earnings is provided for in the year the shareholders approve to retain earnings.
Adjustments of prior years' tax liabilities are added to or deducted from the current year's tax provision.
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2) Deferred tax
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit.
Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.
Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are recognized only to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and such temporary differences are expected to reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the assets to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period and recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liabilities are settled or the assets are realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
3) Current and deferred tax
Current and deferred taxes are recognized in profit or loss.
- Material accounting judgments and key sources of estimation uncertainty
In the application of the Company's accounting policies, management is required to make judgments, estimations, and assumptions on the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.
Based on the assessment of the Company's management, the accounting policies, estimates, and assumptions adopted by the Company have not been subject to material accounting judgements, estimates and assumptions uncertainty.
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6. Cash and cash equivalents
| December 31, 2025 | December 31, 2024 | |
|---|---|---|
| Cash on hand and petty cash | $ 1 | $ 1 |
| Checking accounts and demand deposits | 382,416 | 503,682 |
| Cash equivalents | ||
| Time deposits | 115,400 | 195,400 |
| $ 497,817 | $ 699,083 |
7. Financial instruments at fair value through profit or loss
| December 31, 2025 | December 31, 2024 | |
|---|---|---|
| Financial assets - Current | ||
| Financial assets mandatorily measured as at FVTPL | ||
| Derivative instruments (not under hedge accounting) | ||
| Foreign exchange swap contract (a) | $ 70 | $ - |
| Financial liabilities - Current | ||
| Held for trading | ||
| Derivatives instruments (not under hedge accounting) | ||
| Foreign exchange swap contract (a) | $ 822 | $ 1,824 |
| Foreign exchange forward contracts (b) | 21 | - |
| $ 843 | $ 1,824 |
a. At the end of the year, outstanding foreign exchange swap contracts not under hedge accounting were as follows:
December 31, 2025
| Currency | Maturity Date | Contract Amount (In Thousands) | |
|---|---|---|---|
| Sell | USD/NTD | 2026.01.02~2026.01.22 | USD5,300/NTD165,791 |
December 31, 2024
| Currency | Maturity Date | Contract Amount (In Thousands) | |
|---|---|---|---|
| Sell | USD/NTD | 2025.01.02~2025.01.24 | USD6,000/NTD194,661 |
The Company entered into foreign exchange swap contracts to manage exposures to exchange rate fluctuations of foreign currency denominated assets and liabilities.
b. At the end of the reporting period, outstanding foreign exchange forward contracts not under hedge accounting were as follows:
December 31, 2025
| Currency | Maturity Date | Contract Amount (In Thousands) | |
|---|---|---|---|
| Sell | USD/RMB | 2026.1.30 | USD1,200/RMB8,367 |
The Group entered into foreign exchange forward contracts to manage exposures to exchange rate fluctuations of foreign currency denominated assets and liabilities.
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8. Financial assets at amortized cost
| December 31, 2025 | December 31, 2024 | |
|---|---|---|
| Non-current | ||
| Pledged time deposits | $ 1,054 | $ - |
| Gross carrying amount | $ 1,054 | $ - |
| Less: Allowance for impairment loss | - | - |
| Amortized cost | $ 1,054 | $ - |
a. As of December 31, 2025, the interest rate range of pledged time deposits was 1.7% per annum.
b. Refer to Note 28 for information related to the pledged financial assets at amortized cost.
9. Accounts receivable and other receivables
| December 31, 2025 | December 31, 2024 | |
|---|---|---|
| Accounts receivable | ||
| At amortized cost | ||
| Gross carrying amount | $ 433,633 | $ 432,724 |
| Less: Loss allowance | (2,168) | (2,164) |
| $ 431,465 | $ 430,560 | |
| Other receivables | ||
| Business tax refunds receivable | $ 8,682 | $ 5,934 |
| Others | 2,141 | 188 |
| $ 10,823 | $ 6,122 |
The average credit period of sales of goods is 30 to 90 days from upon shipment or the end of the month. No interest is charged on accounts receivable. In determining the recoverability of accounts receivable, the Company considers any changes in the credit quality of accounts receivable from the original credit granting date to the balance sheet date. For new trading customers, the Company uses publicly available financial information or its own trading records to rate its major customers. The Company's exposure and the credit ratings of its counterparties are continuously monitored and credit exposure is controlled by counterparty limits that are reviewed and approved.
The Company measures the loss allowance for accounts receivable at an amount equal to lifetime ECLs. The expected credit losses on accounts receivable are estimated using a provision matrix prepared by reference to the past default experience of the customer and the customer's current financial position. As the Company's historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Company's different customer base.
The Company writes off a account receivable when there is evidence indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. For accounts receivable that have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.
The following table details the loss allowance of accounts receivable based on the Company's provision matrix.
December 31, 2025
| Not Past Due | 1 to 90 Days Past Due | Total | |
|---|---|---|---|
| Expected credit loss rate | 0.5% | 0.5% | |
| Gross carrying amount | $ 355,715 | $ 77,918 | $ 433,633 |
| Loss allowance (Lifetime ECLs) | (1,778) | (390) | (2,168) |
| Amortized cost | $ 353,937 | $ 77,528 | $ 431,465 |
December 31, 2024
| Not Past Due | 1 to 90 Days Past Due | Total | |
|---|---|---|---|
| Expected credit loss rate | 0.5% | 0.5% | |
| Gross carrying amount | $ 344,798 | $ 87,926 | $ 432,724 |
| Loss allowance (Lifetime ECLs) | (1,724) | (440) | (2,164) |
| Amortized cost | $ 343,074 | $ 87,486 | $ 430,560 |
The movements of the loss allowance of accounts receivable were as follows:
| 2025 | 2024 | |
|---|---|---|
| Balance on January 1 | $ 2,164 | $ 1,691 |
| Add: Impairment loss recognized | 4 | 473 |
| Balance on December 31 | $ 2,168 | $ 2,164 |
- Inventories
| December 31, 2025 | December 31, 2024 | |
|---|---|---|
| Raw materials | $ 218,831 | $ 204,681 |
| Work in process | 42,482 | 50,462 |
| Finished goods | 22,605 | 14,927 |
| Merchandise | 12,457 | 20,966 |
| $ 296,375 | $ 291,036 |
The cost of inventories recognized as cost of goods sold for the years ended December 31, 2025 and 2024, was $2,058,284 thousand and $2,033,821 thousand, respectively. The cost of goods sold included inventory write-downs and scrapping losses for the year ended December 31, 2025 and 2024, were $38,594 thousand and $15,288 thousand, respectively.
- Investment accounted for using the equity method
| December 31, 2025 | December 31, 2024 | |
|---|---|---|
| Investment in subsidiaries | $ 1,168,335 | $ 1,141,567 |
| Investment in associates | 7,602 | 9,343 |
| $ 1,175,937 | $ 1,150,910 |
a. Investment in subsidiaries
| December 31, 2025 | December 31, 2024 | |
|---|---|---|
| Listed Corporation | ||
| DIVA Laboratories, Ltd. | $ 617,428 | $ 633,622 |
| Unlisted Corporation | ||
| Data Image (MAURITIUS) Corporation | 550,907 | 507,945 |
| $ 1,168,335 | $ 1,141,567 | |
| Proportion of Ownership and Voting Rights | ||
| Name of Subsidiary | December 31, 2025 | December 31, 2024 |
| DIVA Laboratories, Ltd. | 36.26% | 36.26% |
| Data Image (MAURITIUS) Corporation | 100.00% | 100.00% |
The Company originally held 35.55% of the equity in DIVA Laboratories, Ltd. and it acquired an additional 0.71% of the equity on June 14, 2024, increasing shareholding ratio from 35.55% to 36.26% (Note 24). As of December 31, 2025 and 2024, the equity interest both held in DIVA Laboratories, Ltd. is 36.26%, and controls more than half of the directors of DIVA Laboratories, Ltd.. It is considered that the Company has the substantial ability to lead its relevant activities; therefore, it is included as a subsidiary.
b. Investment in associates
| December 31, 2025 | December 31, 2024 | ||
|---|---|---|---|
| DMC Components International, LLC | $ 7,602 | $ 9,343 | |
| Name of Associate | Nature of Activities | Principal Place of Business | Proportion of Ownership and Voting Rights |
| December 31, 2025 | |||
| DMC Components International, LLC | Sales agency | Orlando, USA | 30.00% |
- Property, plant and equipment
| Land | Buildings | Machinery | Other Equipment | Total | |
|---|---|---|---|---|---|
| Cost | |||||
| Balance on January 1, 2025 | $ 2,100 | $ 1,358 | $ 18,086 | $ 30,938 | $ 52,482 |
| Additions | - | - | 4,320 | 16,943 | 21,263 |
| Disposals/derecognitions | - | - | (1,848) | (19,545) | (21,393) |
| Reclassification | - | - | 4,603 | - | 4,603 |
| Balance on December 31, 2025 | $ 2,100 | $ 1,358 | $ 25,161 | $ 28,336 | $ 56,955 |
| Accumulated depreciation | |||||
| Balance on January 1, 2025 | $ - | $ 1,104 | $ 8,811 | $ 20,845 | $ 30,760 |
| Depreciation expenses | - | 47 | 3,164 | 8,351 | 11,562 |
| Disposals/derecognitions | - | - | (1,363) | (19,545) | (20,908) |
| Balance on December 31, 2025 | $ - | $ 1,151 | $ 10,612 | $ 9,651 | $ 21,414 |
| Carrying amount on December 31, 2025 | $ 2,100 | $ 207 | $ 14,549 | $ 18,685 | $ 35,541 |
| (Continued) |
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| Cost | Land | Buildings | Machinery | Other Equipment | Total |
|---|---|---|---|---|---|
| Balance on January 1, 2024 | $ 2,100 | $ 1,358 | $ 15,720 | $ 39,217 | $ 58,395 |
| Additions | - | - | 2,516 | 5,283 | 7,799 |
| Disposals/derecognitions | - | - | (150) | (13,562) | (13,712) |
| Balance on December 31, 2024 | $ 2,100 | $ 1,358 | $ 18,086 | $ 30,938 | $ 52,482 |
| Accumulated depreciation | |||||
| Balance on January 1, 2024 | $ - | $ 1,057 | $ 6,475 | $ 27,312 | $ 34,844 |
| Depreciation expenses | - | 47 | 2,486 | 7,095 | 9,628 |
| Disposals/derecognitions | - | - | (150) | (13,562) | (13,712) |
| Balance on December 31, 2024 | $ - | $ 1,104 | $ 8,811 | $ 20,845 | $ 30,760 |
| Carrying amount on December 31, 2024 | $ 2,100 | $ 254 | $ 9,275 | $ 10,093 | $ 21,722 |
The above items of property, plant and equipment leased under operating leases are depreciated on a straight-line basis over their estimated useful lives as follows:
Buildings 30 years
Machinery 3-6 years
Other equipment 3-5 years
13. Lease arrangements
a. Right-of-use assets
| December 31, 2025 | December 31, 2024 | |
|---|---|---|
| Carrying amounts | ||
| Buildings | $ 36,221 | $ 33,665 |
| Transportation equipment | 2,060 | 3,521 |
| Office equipment | 1,574 | - |
| $ 39,855 | $ 37,186 | |
| 2025 | 2024 | |
| Additions to right-of-use assets | $ 14,706 | $ 34,857 |
| Depreciation charge for right-of-use assets | ||
| Buildings | $ 9,537 | $ 8,402 |
| Transportation equipment | 1,570 | 2,500 |
| Office equipment | 380 | - |
| $ 11,487 | $ 10,902 |
Except for the aforementioned addition and recognized depreciation, there was no material sublease agreement or impairment on the Company's right-of-use assets for the years ended December 31, 2025 and 2024.
b. Lease liabilities
| December 31, 2025 | December 31, 2024 | |
|---|---|---|
| Carrying amounts | ||
| Current | $ 11,252 | $ 8,997 |
| Non-current | $ 29,382 | $ 28,944 |
The range of discount rates for lease liabilities was as follows:
| 2025 | 2024 | |
|---|---|---|
| Buildings | 2.50%~2.60% | 1.35%~2.50% |
| Transportation equipment | 2.15%~2.60% | 1.30%~2.15% |
| Office equipment | 2.60% | - |
c. Other lease information
| 2025 | 2024 | |
|---|---|---|
| Expenses relating to short-term leases | $ 1,539 | $ 1,111 |
| Expenses relating to low-value asset leases | $ 1,171 | $ 1,095 |
| Total cash outflow for leases | $ (15,202) | $ (13,693) |
The Company's leases of certain qualify as short-term leases and leases of certain qualify as low-value asset leases. The Company has elected to apply the recognition exemption and thus, did not recognize right-of-use assets and lease liabilities for these leases.
14. Retirement benefit plans
a. Defined contribution plan
The Company adopted a pension plan under the Labor Pension Act (LPA), which is a state-managed defined contribution plan. Under the LPA, the Company makes monthly contributions to employees' individual pension accounts at 6% of monthly salaries and wages.
b. Defined benefit plan
The defined benefit plans adopted by the Company in accordance with the Labor Standards Act are operated by the government of the ROC. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the 6 months before retirement. The Company contributes amounts equal to 2% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee's name. Before the end of each year, the Company assesses the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Company is required to fund the difference in one appropriation that should be made before the end of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (the "Bureau"); the Company has no right to influence the investment policy and strategy.
The amounts included in the balance sheets in respect of the Company's defined benefit plans are as follows:
| December 31, 2025 | December 31, 2024 | |
|---|---|---|
| Present value of defined benefit obligation | $ - | $ - |
| Fair value of plan assets | 2,196 | 2,196 |
| Net defined benefit assets | $ 2,196 | $ 2,196 |
Movements in net defined benefit assets were as follows:
| Present Value of the Defined Benefit Obligation | Fair Value of the Plan Assets | Net defined benefit Assets | |
|---|---|---|---|
| 2025 | $ - | $ 2,196 | $ 2,196 |
| 2024 | $ - | $ 2,196 | $ 2,196 |
Through the defined benefit plans under the Labor Standards Act, the Company is exposed to the following risks:
1) Investment risk: The plan assets are invested in domestic and foreign equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the Bureau or under the mandated management. However, in accordance with relevant regulations, the return generated by plan assets shall not be below the interest rate for a 2-year time deposit with local banks.
2) Interest risk: A decrease in the government bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plans' debt investments.
3) Salary risk: The present value of the defined benefit obligation is calculated using the future salaries of plan participants. As such, an increase in the salaries of the plan participants will increase the present value of the defined benefit obligation.
15. Other assets
| December 31, 2025 | December 31, 2024 | |
|---|---|---|
| Current | ||
| Prepayments | $ 12,727 | $ 5,944 |
| Others | 2,271 | 167 |
| $ 14,998 | $ 6,111 | |
| Non-current | ||
| Prepayment for equipment | $ 25,442 | $ 4,603 |
| Refundable deposits | 1,453 | 4,520 |
| Others | 3,517 | 5,490 |
| $ 30,412 | $ 14,613 |
Other current assets pledged as collateral for bank borrowings are set out in Note 28.
16. Notes payable and accounts payable
| December 31, 2025 | December 31, 2024 | |
|---|---|---|
| Accounts payable | ||
| Operating | $ 213,721 | $ 155,824 |
- 28 -
17. Other payables
| December 31, 2025 | December 31, 2024 | |
|---|---|---|
| Payables for salaries or bonuses | $ 36,364 | $ 34,210 |
| Remunerations of employee | 20,553 | 22,810 |
| Payables for annual leave | 7,790 | 7,578 |
| Payables for professional service fees | 3,711 | 4,426 |
| Remunerations of directors | 1,927 | 2,138 |
| Others | 23,473 | 14,762 |
| $ 93,818 | $ 85,924 |
18. Equity
a. Share capital
Ordinary shares
| December 31, 2025 | December 31, 2024 | |
|---|---|---|
| Authorized shares (in thousands) | 200,000 | 200,000 |
| Authorized capital | $ 2,000,000 | $ 2,000,000 |
| Issued and paid shares (in thousands) | 75,100 | 78,100 |
| Issued capital | $ 750,996 | $ 780,996 |
The share issued had a par value of $10 and the right of voting and receiving dividends.
To facilitate the initial public offering (IPO) of the company's shares, the board of directors resolved on December 27, 2023, to issue 8,700 thousand new shares through a cash capital increase, with a par value of $10 per share. This cash capital increase plan was approved by the Taiwan Stock Exchange Corporation on January 9, 2024, and became effective on that date. The capital increase base date is set for March 22, 2024, and the change of registration was completed on April 8, 2024.
The issuance of the 8,700 thousand new shares through this cash capital increase includes 1,566 thousand shares for public offering, 870 thousand shares for employee subscription, and 6,264 thousand shares for competitive auction. Both the public offering and the employee subscription are issued at a premium of $50 per share. The competitive auction shares are issued at a weighted average premium price of $61.76 per share. The total amount received, after deducting underwriting-related fees, was $505,526 thousand on March 22, 2024.
Within the authorized capital, 5,400 thousand shares are reserved for the issuance of employee stock warrants.
b. Capital surplus
| December 31, 2025 | December 31, 2024 | |
|---|---|---|
| May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (Note) | ||
| Issuance of ordinary shares | $ 462,063 | $ 480,521 |
| May only be used to offset a deficit | ||
| Exercise of disgorgement | $ 6 | $ 6 |
Note: Such capital surplus may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Company's capital surplus and to once a year).
c. Retained earnings and dividend policy
According to the Company's Articles of Incorporation, the board of directors is authorized to adopt a special resolution to distribute dividends and bonuses in cash and a report of such distribution should be submitted in the shareholders' meeting
Under the dividends policy as set forth in the Articles of Incorporation, where the Company made a profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit, until the accumulated legal capital reserve equals the Company's paid-in share capital, setting aside or reversing a special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Company's board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders' meeting for the distribution of dividends and bonuses to shareholders. For the policies on the distribution of compensation of employees and remuneration of directors and supervisors after the amendment, refer to compensation of employees and remuneration of directors and supervisors in Note 20(6).
The Company's dividend policy complies with the current and future development plans, taking investment environments, capital requirements, and domestic or foreign competition status into account, and considers shareholders' interest and other factors. The Company made a profit in a fiscal year, and until the distributable earnings equal the Company's paid-in share capital 2%, dividends may be distributed in the form of both cash dividends and share dividends. However, cash dividends are limited to 10% of the total dividends distributed.
An appropriation of earnings to a legal reserve shall be made until the legal reserve equals the Company's paid-in capital. The legal reserve may be used to offset deficits. If the Company has no deficit and the legal reserve has exceeded 25% of the Company's paid-in capital, the excess may be transferred to capital or distributed in cash.
The appropriations of earnings for 2024 and 2023 are as follows:
| 2024 | 2023 | |
|---|---|---|
| Legal reserve | $ 21,973 | $ 27,891 |
| Special reserve (Reversal of) | $ (18,576) | $ 6,457 |
| Cash dividends | $ 234,299 | $ 277,598 |
| Cash dividends per share (NT$) | $ 3.00 | $ 3.55 |
The above appropriations for cash dividends were resolved by the Company's board of directors on March 4, 2025 and March 1, 2024, respectively; the other proposed appropriations were resolved by the shareholders in their meeting on May 23, 2025 and May 28, 2024, respectively.
The company conducted an initial public offering of cash capital increase on March 22, 2024, resulting in an increase in the number of outstanding shares from 69,400 thousand shares to 78,100 thousand shares. Consequently, the cash dividend per share for the 2023 earnings distribution was adjusted to NT$3.55.
- 29 -
The appropriation of earnings for 2025, which were proposed by the Company's board of directors on March 2, 2026, were as follows:
| 2025 | |
|---|---|
| Legal reserve | $ 10,096 |
| Special reserve | $ (2,744) |
| Cash dividends | $ 225,299 |
| Cash dividends per share (NT$) | $ 3.00 |
The above appropriation for cash dividends has been resolved by the Company's board of directors; the other proposed appropriations will be resolved by the shareholders in their meeting to be held on May 20, 2026.
d. Special reserve
| 2025 | 2024 | |
|---|---|---|
| Balance on January 1 | $ 26,854 | $ 20,397 |
| Appropriations in respect of | ||
| Debits to other equity items | - | 6,457 |
| Reversal: | ||
| Reversal of the debits to other equity items | (18,576) | - |
| Balance on December 31 | $ 8,278 | $ 26,854 |
When distributing earnings, additional special reserve should be appropriated for the amount equal to the difference between net debit balance reserves and the special reserve appropriated at the end of the reporting period. Any special reserve appropriated may be reversed to the extent that the net debit balance reverses and is thereafter distributed.
e. Other equity items
1) Exchange differences on the translation of the financial statements of foreign operations
| 2025 | 2024 | |
|---|---|---|
| Balance on January 1 | $ (8,551) | $ (26,998) |
| Other comprehensive income recognized for the year | ||
| Share from subsidiaries and associates accounted for using the equity method | 2,556 | 18,414 |
| Acquisition of further interests in subsidiaries | - | 33 |
| Balance on December 31 | $ (5,995) | $ (8,551) |
2) Unrealized valuation gain(loss) on financial assets at FVTOCI
| 2025 | 2024 | |
|---|---|---|
| Balance on January 1 | $ 273 | $ 144 |
| Other comprehensive income recognized for the year | ||
| Share from subsidiaries accounted for using the equity method | 188 | 149 |
| Acquisition of further interests in subsidiaries | - | (20) |
| Balance on December 31 | $ 461 | $ 273 |
f. Treasury shares
| Shares Cancelled (In Thousands of Shares) | |
|---|---|
| Number of shares on January 1, 2025 | - |
| Increase during the period | 3,000 |
| Decrease during the period | (3,000) |
| Number of shares on December 31, 2025 | - |
The Company's board of directors resolved to repurchase shares from the centralized market on April 10, 2025 to maintain the Company's credibility and protect shareholders' interests. The buyback period was from April 11, 2025 to June 10, 2025. The Company repurchased a total of 1,000 thousand treasury shares at a cost of $49,406 thousand.
The Company's board of directors resolved to cancel 1,000 thousand shares of treasury stock on July 29, 2025, and the base date of capital reduction was August 5, 2025, and the registration of change was completed on September 11, 2025.
The Company's board of directors resolved to repurchase shares from the centralized market on July 29, 2025 to maintain the Company's credibility and protect shareholders' interests. The buyback period was from July 30, 2025 to September 29, 2025. The Company repurchased a total of 2,000 thousand treasury shares at a cost of $98,514 thousand.
The Company's board of directors resolved to cancel 2,000 thousand shares of treasury stock on October 28, 2025, and the base date of capital reduction was November 7, 2025, and the registration of change was completed on December 9, 2025.
Under the Securities and Exchange Act, the Company shall neither pledge treasury shares nor exercise shareholders' rights on these shares, such as the rights to dividends and to vote.
- Revenue
a. Breakdown of revenue from contracts with customers
| 2025 | 2024 | |
|---|---|---|
| LCD touch module | $ 2,183,618 | $ 2,086,437 |
| LCD module | 276,328 | 429,058 |
| Others | 90,708 | 27,965 |
| $ 2,550,654 | $ 2,543,460 |
b. Contract balance
| December 31, 2025 | December 31, 2024 | January 1, 2024 | |
|---|---|---|---|
| Accounts receivable | $ 431,465 | $ 430,560 | $ 336,514 |
| Accounts receivable from related parties | $ 22,740 | $ 17,830 | $ 7,277 |
| Contract liabilities - Current | $ 37,554 | $ 91,085 | $ 79,864 |
The changes in the balance of contract assets and contract liabilities primarily result from the timing difference between the Company's satisfaction of performance obligations and the respective customer's payment.
Revenue in the current year that was recognized from the performance obligations satisfied with the contract liability balance at the beginning of the year was summarized as follows:
| 2025 | 2024 | |
|---|---|---|
| From contract liabilities at the start of the year | $ 69,782 | $ 10,526 |
| 20. Net income | ||
| a. Interest income | ||
| 2025 | 2024 | |
| Bank deposits | $ 5,639 | $ 7,012 |
| b. Other gains and losses | ||
| 2025 | 2024 | |
| Valuation gain (loss) on financial assets and liabilities | ||
| Financial assets mandatorily measured at FVTPL | $ 25,041 | $ (50) |
| Financial liabilities held for trading | (20,966) | (20,020) |
| Net foreign exchange (losses) gains | (12,944) | 13,566 |
| Other gains | 2,352 | 860 |
| $ (6,517) | $ (5,644) | |
| c. Finance cost | ||
| 2025 | 2024 | |
| Interest on bank loans | $ 190 | $ 61 |
| Interest on lease liabilities | 1,043 | 289 |
| $ 1,233 | $ 350 | |
| d. Depreciation and amortization | ||
| 2025 | 2024 | |
| Property, plant and equipment | $ 11,562 | $ 9,628 |
| Right-of-use assets | 11,487 | 10,902 |
| Intangible assets | 715 | 1,328 |
| $ 23,764 | $ 21,858 | |
| An analysis of depreciation by function | ||
| Operating costs | $ 5,997 | $ 4,807 |
| Operating expenses | 17,052 | 15,723 |
| $ 23,049 | $ 20,530 | |
| An analysis of amortization by function | ||
| Operating expenses | $ 715 | $ 1,328 |
e. Employee benefits expense
| 2025 | 2024 | |
|---|---|---|
| Short-term benefits | $ 198,434 | $ 194,403 |
| Post-employment benefits | ||
| Defined contribution plan | 6,864 | 6,537 |
| Share-based payment | ||
| Equity-settled (Note 23) | - | 1,361 |
| Other employee benefits | 19,825 | 19,115 |
| $ 225,123 | $ 221,416 | |
| An analysis of employee benefits expense by function | ||
| Operating cost | $ 42,954 | $ 45,545 |
| Operating expenses | 182,169 | 175,871 |
| $ 225,123 | $ 221,416 |
f. Compensation of employees and remuneration of directors
According to the Articles of Incorporation, where the Company made a profit in a fiscal year, the Company accrues compensation of employees at rates of no less than 5% and no higher than 20% and accrues remuneration of directors at rates of no higher than 1%. In accordance with the amendments to the Securities and Exchange Act in August 2024, the shareholders of the Company resolved the amendments to the Company's Articles at their 2025 regular meeting. The amendments explicitly stipulate the allocation of non-executive employees at rates of no less than 10% of the total compensation of employees mentioned above. The compensation of employees (including non-executive employees) and the remuneration of directors for the years ended December 31, 2025 and 2024, which were approved by the Company's board of directors on March 2, 2026 and March 4, 2025, respectively, are as follows:
Accrual rate
| 2025 | 2024 | |
|---|---|---|
| Compensation of employees | 8.00% | 8.00% |
| Remuneration of directors | 0.75% | 0.75% |
| Amount | ||
| 2025 | 2024 | |
| Compensation of employees | $ 20,553 | $ 22,810 |
| Remuneration of directors | 1,927 | 2,138 |
If there is a change in the amounts after the annual financial statements are authorized for issue, the differences are recorded as a change in the accounting estimate.
There is no difference between the actual amounts of compensation of employees and remuneration of directors paid and the amounts recognized in the financial statements for the years ended December 31, 2024 and 2023.
Information on the compensation of employees and remuneration of directors resolved by the Company's board of directors is available at the Market Observation Post System website of the Taiwan Stock Exchange.
21. Income tax
a. Major components of income tax expenses recognized in profit or loss
| 2025 | 2024 | |
|---|---|---|
| Current tax | ||
| In respect of the current year | $ 37,526 | $ 44,875 |
| Adjustments for prior year | 274 | (6,782) |
| 37,800 | 38,093 | |
| Deferred tax | ||
| In respect of the current year | (3,463) | (1,110) |
| Adjustments for prior year | - | (1) |
| (3,463) | (1,111) | |
| Income tax expenses recognized in profit or loss | $ 34,337 | $ 36,982 |
A reconciliation of accounting profit and income tax expense is as follows:
| 2025 | 2024 | |
|---|---|---|
| Income before tax | $ 234,428 | $ 260,176 |
| Income tax expense calculated at the statutory rate | $ 46,885 | $ 52,035 |
| Nondeductible expenses in determining taxable income | - | 1 |
| Tax-exempted income | (5,237) | (5,409) |
| Unrecognized deductible temporary differences | (7,585) | (2,863) |
| Adjustments for prior years’ tax | 274 | (6,782) |
| Adjustments for prior years’ deferred tax | - | (1) |
| Other | - | 1 |
| Income tax expenses recognized in profit or loss | $ 34,337 | $ 36,982 |
b. Income tax recognized directly in equity
| 2025 | 2024 | |
|---|---|---|
| Current tax | ||
| Transaction costs attributed to the issuance of shares | $ - | $ 634 |
c. Current tax assets and liabilities
| December 31, 2025 | December 31, 2024 | |
|---|---|---|
| Current tax liabilities | ||
| Income taxes payable | $ 32,250 | $ 29,200 |
d. Deferred tax assets and liabilities
The movements of deferred tax assets and deferred tax liabilities were as follows:
2025
| Deferred Tax Assets | Opening Balance | Recognized in Profit or Loss | Closing Balance |
|---|---|---|---|
| Temporary differences | |||
| Inventory write-downs | $ 5,507 | $ 4,609 | $ 10,116 |
| Payables for annual leave | 1,515 | 43 | 1,558 |
| Others | 2,178 | (246) | 1,932 |
| $ 9,200 | $ 4,406 | $ 13,606 | |
| Deferred Tax Liabilities | |||
| Temporary differences | |||
| Investment accounted for using the equity method | $ 1,924 | $ 27 | $ 1,951 |
| Unrealized foreign exchange gains | 1,280 | 902 | 2,182 |
| Others | 108 | 14 | 122 |
| $ 3,312 | $ 943 | $ 4,255 |
2024
| Deferred Tax Assets | Opening Balance | Recognized in Profit or Loss | Closing Balance |
|---|---|---|---|
| Temporary differences | |||
| Inventory write-downs | $ 3,340 | $ 2,167 | $ 5,507 |
| Payables for annual leave | 1,219 | 296 | 1,515 |
| Unrealized foreign exchange losses | 679 | (679) | - |
| Others | 1,745 | 433 | 2,178 |
| $ 6,983 | $ 2,217 | $ 9,200 | |
| Deferred Tax Liabilities | |||
| Temporary differences | |||
| Investment accounted for using the equity method | $ 2,151 | $ (227) | $ 1,924 |
| Unrealized foreign exchange gains | - | 1,280 | 1,280 |
| Others | 55 | 53 | 108 |
| $ 2,206 | $ 1,106 | $ 3,312 |
e. Deductible temporary difference for which no deferred tax assets have been recognized in the balance sheets
| December 31, 2025 | December 31, 2024 | |
|---|---|---|
| Deductible temporary differences | ||
| Investment accounted for using the equity method | $ - | $ 37,925 |
f. Income tax assessments
The income tax for the Company returns through 2023, have been assessed by the tax authorities.
- Earnings per share
Unit: NT$ per share
| 2025 | 2024 | |
|---|---|---|
| Basic earnings per share | $ 2.61 | $ 2.93 |
| Diluted earnings per share | $ 2.59 | $ 2.91 |
The earnings and weighted average number of ordinary shares outstanding used in the computation of earnings per share were as follows:
Net Income
| 2025 | 2024 | |
|---|---|---|
| Earnings used in the computation of basic and diluted earnings per share | $ 200,091 | $ 223,194 |
Weighted average number of ordinary shares outstanding
| 2025 | 2024 | |
|---|---|---|
| Weighted average number of ordinary shares used in the computation of basic earnings per share | 76,786 | 76,174 |
| Effect of potentially dilutive ordinary shares: Compensation of employees | 576 | 566 |
| Weighted average number of ordinary shares used in the computation of diluted earnings per share | 77,362 | 76,740 |
The Company may settle the compensation of employees in cash or shares; therefore, the Company assumes that the entire amount of the compensation will be settled in shares, and the resulting potential shares are included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.
- Share-based payment arrangements
Employee Stock Option Plan for Issuance of Ordinary Shares for Cash
On December 27, 2023, the Company's board of directors resolved to issue 8,700 thousand ordinary shares which increased the share capital issued, reserving 870 thousand shares for employee subscription in accordance with the Company Act. If employees do not fully subscribe or waive their subscription rights, the chairman is authorized to allocate the unsubscribed shares to designated investors. The recognized compensation cost for the Year Ended December 31, 2024, is $1,361 thousand.
Options of ordinary shares issued for Cash granted in March 2024 were priced using the Black-Scholes pricing model, and the inputs to the model are as follows:
| March, 2024 | |
|---|---|
| Share price on the grant date | $ 52.22 |
| Exercise price | $ 50 |
| Expected volatility | 12.7% |
| Expected life | 0.008 years |
| Expected dividends rate | 0.0% |
| Risk-free interest rate | 1.1% |
- 37 -
24. Partial Acquisition of subsidiaries - Without loss of control
On June 14, 2024, the Company acquired 0.71% of its interest in DIVA Laboratories, Ltd., increasing its continuing interest from 35.55% to 36.26%.
The above transactions were accounted for as equity transactions, since the Company did not cease to have control over this subsidiary.
| DIVA Laboratories, Ltd. | |
|---|---|
| Consideration paid | $ (13,060) |
| The proportionate share of the carrying amount of the net assets of the subsidiary transferred to non-controlling interests | 9,446 |
| Reattribution of other equity from non-controlling interests | |
| Exchange differences on translating the financial statements of foreign operations | (33) |
| Unrealized gain on financial assets at FVTOCI | 20 |
| Differences recognized from equity transactions | $ (3,627) |
| DIVA Laboratories, Ltd. | |
| Line items adjusted for equity transactions | |
| Retained earnings | $ (3,627) |
25. Capital management
The Company manages its capital to ensure the Company will be able to continue as going concerns with a capital structure that is most suitable for the Company's current operation and development and make good use of various equity and debt instruments to provide the Company with capital required for operating plans, while maximizing the return to stakeholders.
The capital structure of the Company consists of net debt and equity.
The Company is not subject to any externally imposed capital requirements.
26. Financial instruments
a. Fair value of financial instruments not measured at fair value
For financial instruments not measured at fair value, that maturities are near or that future receipt or payment amounts approximate their carrying amounts, their fair values are estimated based on their carrying amounts as of the balance sheet date.
b. Fair value of financial instruments measured at fair value on a recurring basis
1) Fair value hierarchy
December 31, 2025
| Level 1 | Level 2 | Level 3 | Total | |
|---|---|---|---|---|
| Financial assets at FVTPL | ||||
| Derivatives | $ - | $ 70 | $ - | $ 70 |
| Financial liabilities at FVTPL | ||||
| Derivatives | $ - | $ 843 | $ - | $ 843 |
| December 31, 2024 | ||||
| Level 1 | Level 2 | Level 3 | Total | |
| Financial liabilities at FVTPL | ||||
| Derivatives | $ - | $ 1,824 | $ - | $ 1,824 |
There were no transfers between Levels 1 and 2 in the current and prior years
2) Valuation techniques and inputs applied for Level 2 fair value measurement
| Financial Instrument | Valuation Technique and Inputs |
|---|---|
| Derivatives - foreign exchange swap contracts | Discounted cash flow: Future cash flows are estimated based on observable forward exchange rates at the end of the year and contract forward rates, discounted at a rate that reflects the credit risk of various counterparties. |
c. Categories of financial instruments
| December 31, 2025 | December 31, 2024 | |
|---|---|---|
| Financial assets | ||
| FVTPL | ||
| Mandatorily measured as at FVTPL | $ 70 | $ - |
| Financial assets at amortized cost | ||
| Cash and cash equivalents | 497,817 | 699,083 |
| Accounts receivable | 431,465 | 430,560 |
| Accounts receivable from related parties | 22,740 | 17,830 |
| Other receivables | 2,141 | 188 |
| Other receivables from related parties | 103 | 107 |
| Restricted assets (accounted for as other current assets) | 2,000 | - |
| Financial assets at amortized cost - non-current | 1,054 | - |
| Refundable deposits | 1,453 | 4,520 |
| Financial liabilities | ||
| FVTPL | ||
| Held for trading | 842 | 1,824 |
| Amortized cost | ||
| Accounts payable | 213,721 | 155,824 |
| Accounts payable from related parties | 363,699 | 315,507 |
| Other payables | 27,184 | 19,188 |
| Other payables from related parties | 7,326 | 8,536 |
d. Financial risk management objectives and policies
The financial risks related to the operating activities of the Company are market risk, credit risk and liquidity risk. Except for market risk, which is affected by external factors and is unpredictable, the remaining two risks can be generally controlled or eliminated through internal control or operating procedures. Therefore, in response to changes in market risks, the Company uses appropriate financial instrument operations to reduce the adverse effects that market risks may have on the Company's financial position and financial performance.
1) Market risk
The Company's activities exposed it primarily to the market risks include foreign currency exchange rates and interest rates.
a) Foreign currency risk
The Company have foreign currency denominated sales and purchases, which expose to foreign currency risk. Exchange rate exposures are managed within approved policy parameters utilizing foreign exchange forward contracts.
The carrying amounts of the Company's foreign currency denominated monetary assets and monetary liabilities at the end of the year are set out in Note 29.
Sensitivity analysis
The Company is mainly exposed to the U.S. dollars.
The following table details the Company's sensitivity to a 1% increase and decrease in the New Taiwan dollar (i.e., the functional currency) against the relevant foreign currencies. The sensitivity analysis included only outstanding foreign currency denominated monetary items and foreign exchange forward contracts designated as cash flow hedges, and adjusts their translation at the end of the year for a 1% change in foreign currency rates. A positive number below indicates an increase/a decrease in pre-tax profit associated with the New Taiwan dollar strengthening 1% against the relevant currency. For a 1% weakening of the New Taiwan dollar against the relevant currency, there would be an equal and opposite impact on pre-tax profit, and the balances below would be negative.
| Impact of U.S. dollars | ||
|---|---|---|
| 2025 | 2024 | |
| Profit and loss | $ 874 | $ 530 |
b) Interest rate risk
The Company's risk of changes in interest rates mainly comes from short-term borrowings and long-term borrowings with fixed and floating interest rates. Changes in market interest rates will change the effective interest rate of borrowings, resulting in the risk of changes in the future fair value and cash flow.
- 39 -
The carrying amounts of the Company’s financial assets and financial liabilities with exposure to interest rates at the end of the year were as follows:
| December 31, 2025 | December 31, 2024 | |
|---|---|---|
| Fair value interest rate risk | ||
| Financial assets | $ 116,454 | $ 196,436 |
| Financial liabilities | 40,634 | 37,941 |
| Cash flow interest rate risk | ||
| Financial assets | 384,114 | 502,747 |
Sensitivity analysis
The sensitivity analysis below was determined based on the Company’s exposure to interest rates for non-derivative instruments at the end of the year. For floating rate liabilities, the analysis was prepared assuming the amount of each liability outstanding at the end of the year was outstanding for the whole year.
If interest rates had been 1% basis points higher/lower and all other variables were held constant, the Company’s pre-tax profit for the years ended December 31, 2025 and 2024 would have decreased/increased by $3,841 thousand and $5,027 thousand, respectively.
2) Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Company. At the end of the year, the Company’s maximum exposure to credit risk, due to the failure of the counterparty to discharge its obligation, could be equal to the carrying amount of the respective recognized financial assets as stated in the balance sheets.
To mitigate credit risk, the Company’s management has assigned a dedicated team to be responsible for credit limit determination, credit approval and other monitoring procedures to ensure that appropriate actions have been taken in the recovery of overdue receivables. In addition, the Company reviews the recoverable amounts of amounts receivable on a case-by-case basis on the balance sheet date to ensure that appropriate impairment losses have been provided for uncollectible amounts receivable. Accordingly, the Company’s management considers that the Company’s credit risk has been significantly reduced.
3) Liquidity risk
The Company maintains sufficient cash and cash equivalents to meet the cash requirements for operating activities through accounts and financing management and reduces the impact of cash flow fluctuations. The Company’s Finance Department monitors the use of bank financing limits at all times and ensures compliance with the terms of borrowing contracts.
Liquidity and interest rate risk tables for non-derivative financial liabilities
The following table details the Company’s remaining contractual maturities for its non-derivative financial liabilities with agreed upon repayment periods. The table has been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Company can be required to pay. The table includes both interest and principal cash flows. Specifically, bank loans with a repayment on demand clause were included in the earliest time band regardless of the probability of the banks choosing to exercise their rights. The maturity dates for other non-derivative financial liabilities were based on the agreed upon repayment dates
- 40 -
To the extent that interest flows are at floating rates, the undiscounted amount was derived from the interest rate curve at the end of the year.
The current portion of non-interest-bearing financial liabilities is due within one year. These liabilities are not subject to any contractual obligations requiring immediate settlement. The non-current financial liabilities primarily comprise guarantee deposits received from customers, which serve as credit collateral. These deposits do not have specified maturity dates.
December 31, 2025
| Within 1 Year | 1-5 Years | |
|---|---|---|
| Non-derivative financial liabilities | ||
| Lease liabilities | $ 12,142 | $ 30,389 |
| December 31, 2024 | ||
| Within 1 Year | 1-5 Years | |
| Non-derivative financial liabilities | ||
| Lease liabilities | $ 9,816 | $ 30,340 |
The amounts included above for variable interest rate instruments for non-derivative financial liabilities are subject to change if changes in variable interest rates differ from those estimates of interest rates determined at the end of the year.
27. Related party transactions
The Company's parent is Qisda Corporation, which both held 31.11% of the ordinary shares of the Company at December 31, 2025 and 2024. Besides information disclosed elsewhere in the other notes, details of transactions between the Company and other related parties are disclosed as follows.
a. Related parties and their relationship with the Company
| Related Party | Relationship with the Company |
|---|---|
| Qisda Corporation | Parent company |
| Darfon Electronics Corp. | A corporate Director who values the parent company by using the equity method |
| Darwin Precisions Corporation | A subsidiary of AUO Corporation |
| AUO Display Plus Corporation | A subsidiary of AUO Corporation |
| Data Image (Suzhou) Corporation | Subsidiary |
| DIVA Laboratories, Ltd. | Subsidiary |
| DFI Inc. | Sister company |
| Qisda Optronics (Suzhou) Co., Ltd. | Sister company |
| Qisda Electronics (Suzhou) Co. Ltd. | Sister company |
| Qisda Vietnam Co.,Ltd. | Sister company |
| BenQ Asia Pacific Corp. | Sister company |
| BenQ Materials Corp. | Sister company |
| BenQ Healthcare Corporation | Sister company |
| BenQ Materials (Suzhou) Corp. | Sister company |
| Global Intelligence Network Co., Ltd. | Sister company |
| Metaage Corporation | Sister company |
| Simula Technology Inc. | Sister company |
| Metaguru Corporation | Sister company |
| Golden Spirit Co., Ltd. | Sister company |
(Continued)
- 42 -
| Related Party | Relationship with the Company |
|---|---|
| Concord Medical Co., Ltd | Sister company |
| Action Star Technology Co., Ltd. | Sister company |
| Ace Pillar Co., Ltd. | Sister company |
| BenQ Foundation | Substantial related party |
| Aplex Technology Inc. | Substantial related party |
| DMC Components International, LLC | Associate |
b. Operating revenue
| Related Party Category | 2025 | 2024 |
|---|---|---|
| Parent company | $ 1,777 | $ 336 |
| Subsidiary | 19,970 | 19,389 |
| Sister company | 15,790 | 12,768 |
| Associate | 52,671 | 52,451 |
| Substantial related party | 1,825 | 5 |
| $ 92,033 | $ 84,949 |
For sales prices, since most of the products are customized and no comparable products, the prices are negotiated by both parties; sales to related parties and non-related parties are collected 30 to 60 days from upon shipment or end of the month and collected 30 to 90 days from upon shipment or end of the month., respectively.
c. Purchases
| Related Party Category | 2025 | 2024 |
|---|---|---|
| Parent company | $ 10 | $ - |
| A corporate Director who values the parent company by using the equity method | 43 | - |
| Subsidiary | - | 2,998 |
| Sister company | 5,570 | 3,146 |
| A subsidiary of AUO Corporation | ||
| AUO Display Plus Corporation | 42,724 | 125,340 |
| $ 48,347 | $ 131,484 |
Purchases are made at the general purchase price. Purchases from related parties and non-related parties are paid 30 to 45 days from after delivery or end of the month and paid 30 to 120 days end of the month, respectively.
d. Manufacturing expenses - Processing fee
| Related Party Category | December 31, 2025 | December 31, 2024 |
|---|---|---|
| Subsidiary | ||
| Data Image (Suzhou) Corporation | $ 1,046,706 | $ 974,711 |
Processing fees are directly incurred as a result of transactions with Data Image (Suzhou) Corporation.
e. Receivables from related parties
| Item | Related Party Category/Name | December 31, 2025 | December 31, 2024 |
|---|---|---|---|
| Accounts receivable | Parent company | $ 245 | $ 43 |
| Subsidiary | 3,422 | 2,533 | |
| Sister company | 9,014 | 2,250 | |
| Associate | 9,769 | 13,004 | |
| Substantial related party | 290 | - | |
| $ 22,740 | $ 17,830 | ||
| Other receivables | Associate | $ 103 | $ 107 |
The outstanding accounts receivable from related parties are unsecured. For the years ended December 31, 2025 and 2024, no impairment losses were recognized for accounts receivable from related parties.
f. Payables to related parties
| Item | Related Party Category | December 31, 2025 | December 31, 2024 |
|---|---|---|---|
| Accounts payable | A subsidiary of AUO Corporation | $ 8,516 | $ 7,499 |
| Subsidiary | |||
| Data Image (Suzhou) Corporation | 355,084 | 307,842 | |
| Other | - | 166 | |
| 355,084 | 308,008 | ||
| Sister company | 99 | - | |
| $ 363,699 | $ 315,507 | ||
| Other payables | Parent company | $ 1,185 | $ 3,043 |
| Sister company | 26 | 50 | |
| Associate | 6,115 | 5,443 | |
| $ 7,326 | $ 8,536 |
For the years ended December 31, 2025 and 2024, the Company sells raw materials and semi-finished goods to Data Image (Suzhou) Corporation, and then it processes, the Company purchases partial finished goods and semi-finished goods from it to sell to customers. Due to the processing trade, the related sales income and cost are expressed at a net amount. In addition, the relevant accounts payable for collection and payment will be made based on its capital status.
The outstanding accounts payable to related parties are unsecured.
g. Prepayments (accounted for as other current assets)
| Related Party Category | December 31, 2025 | December 31, 2024 |
|---|---|---|
| Sister company | $ 1,390 | $ - |
h. Acquisition of property, plant and equipment
| Related Party Category | Purchase price | |
|---|---|---|
| 2025 | 2024 | |
| Parent company | $ 306 | $ 1,739 |
| Sister company | 153 | - |
| $ 459 | $ 1,739 |
i. Lease agreement
| Related Party Category/Name | 2025 | 2024 | |
|---|---|---|---|
| Acquisitions of right-of-use assets | |||
| Parent company | $ 12,094 | $ - | |
| Item | Related Party Category | December 31, 2025 | December 31, 2024 |
| Lease liabilities | Parent company | $ 10,195 | $ 597 |
| Item | Related Party Category | 2025 | 2024 |
| Interest expenses | |||
| (accounted for as finance cost) | Parent company | $ 197 | $ 21 |
The Company rented the Taoyuan Office from the parent company in November 2021 and the Taoyuan Plant from the parent company in May 2020. The lease terms are 3.5 years and 5 years, respectively, and both leases expired in May 2025. The Company renewed the lease agreements for the Taoyuan office and plant in May 2025. The lease term is 4 years. The rental is based on the rental level of similar assets, and it pays a fixed lease payment monthly according to the lease contract.
j. Other related party transactions
| Related Party Category/Name | 2025 | 2024 |
|---|---|---|
| Operating cost | ||
| Parent company | $ 12,380 | $ 10,061 |
| A subsidiary of AUO Corporation | 47 | 15 |
| Sister company | 360 | 255 |
| Associate | - | 138 |
| $ 12,787 | $ 10,469 | |
| Operating expenses | ||
| Parent company | $ 1,748 | $ 1,783 |
| A corporate Director who values the parent company by using the equity method | 24 | - |
| A subsidiary of AUO Corporation | 207 | 458 |
| Subsidiary | 69 | 720 |
| Sister company | 1,294 | 2,139 |
| Associate | - | 1,738 |
| Substantial related party | 1,000 | - |
| $ 4,342 | $ 6,838 | |
| Operating expenses - Commission expense | ||
| Associate | $ 17,435 | $ 22,762 |
| Other income | ||
| Sister company | $ 108 | $ - |
As the parent company provided partial management services to the Company, the management expenses recognized for the years ended December 31, 2025 and 2024 were $14,128 thousand and $11,844 thousand, respectively. Commission expenses are calculated based on the rates agreed upon in contracts and are paid only after the Company has received the relevant accounts receivable for sales of goods as an agent.
k. Endorsements and guarantees
Information on endorsements and guarantees for related party by the Company is set out in Table 1.
l. Remuneration of key management personnel
| 2025 | 2024 | |
|---|---|---|
| Short-term employee benefits | $ 18,709 | $ 19,708 |
| Share-based payments | - | 151 |
| $ 18,709 | $ 19,859 |
The remuneration of directors and key executives, as determined by the remuneration committee, is based on the performance of individuals and market trends.
- Pledged assets
The following assets of the Company have been pledged as the collateral for the collection of business taxes after the release of the imported goods by customs:
| December 31, 2025 | December 31, 2024 | |
|---|---|---|
| Financial assets at amortized cost - non-current | $ 1,054 | $ - |
| Restricted assets (accounted for as other current assets) | 2,000 | - |
| Refundable deposits (accounted for as other non-current assets) | - | 1,036 |
| $ 3,054 | $ 1,036 |
- Significant assets and liabilities denominated in foreign currencies
The Company's significant financial assets and liabilities denominated in foreign currencies aggregated by the foreign currencies other than functional currencies in the Company and the related exchange rates between the foreign currencies and the respective functional currencies were as follows:
December 31, 2025
| Foreign Currency | Exchange Rate | Carrying Amount | ||
|---|---|---|---|---|
| Financial assets | ||||
| Monetary items | ||||
| USD | $ 17,229 | 31.430 | (USD: NTD) | $ 541,516 |
| Non-monetary items | ||||
| Investment accounted for using the equity method | ||||
| USD | 242 | 31.430 | (USD: NTD) | 7,602 |
| Financial liabilities | ||||
| Monetary items | ||||
| USD | 20,009 | 31.430 | (USD: NTD) | 628,890 |
December 31, 2024
| Foreign Currency | Exchange Rate | Carrying Amount | ||
|---|---|---|---|---|
| Financial assets | ||||
| Monetary items | ||||
| USD | $ 15,661 | 32.785 | (USD: NTD) | $ 513,460 |
| Non-monetary items | ||||
| Investment accounted for using the equity method | ||||
| USD | 285 | 32.785 | (USD: NTD) | 9,343 |
| Financial liabilities | ||||
| Monetary items | ||||
| USD | 17,278 | 32.785 | (USD: NTD) | 566,457 |
The significant realized and unrealized foreign exchange gains (losses) were as follows:
| 2025 | 2024 | |||
|---|---|---|---|---|
| Foreign Currency | Exchange Rate | Net Foreign Exchange Gains (Losses) | Exchange Rate | Net Foreign Exchange Gains (Losses) |
| USD | 31.430 (USD:NTD) | $ (12,944) | 32.785 (USD:NTD) | $ 13,566 |
30. Separately disclosed items
a. Information on significant transactions:
1) Financing provided to others: None.
2) Endorsements/guarantees provided: Table 1.
3) Significant marketable securities held (excluding investments in subsidiaries, associates and joint ventures): None.
4) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: Table 2.
5) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: Table 3.
b. Information on investees: Table 4.
c. Information on investments in mainland China:
1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the year, repatriations of investment income, and limit on the amount of investment in the mainland China area: Table 5.
2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses: Table 6.
a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the year
b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the year
c) The amount of property transactions and the amount of the resultant gains or losses
d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the year and the purposes
e) The highest balance, the ending balance, the interest rate range, and total current period interest with respect to the financing of funds
f) Other transactions that have a material effect on the profit or loss for the year or on the financial position, such as the rendering or receipt of services
- 47 -
Data Image Corporation
Endorsements/Guarantees Provided
For the Year Ended December 31, 2025
(In Thousands of New Taiwan Dollars)
Table 1
| No. | Endorser/Guarant or | Endorsee/Guarantee | Limit on Endorsement/ Guarantee Given on Behalf of Each Party (Note) | Maximum Amount Endorsed/ Guaranteed During the Year | Outstanding Endorsement/ Guarantee at the End of the Year | Actual Amount Borrowed | Amount Endorsed/ Guaranteed by Collateral | Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements | Aggregate Endorsement/ Guarantee Limit (Note) | Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries | Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent | Endorsement/ Guarantee Given on Behalf of Companies in Mainland China | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Name | Relationship | ||||||||||||
| 0 | The Company | Data Image (Suzhou) Corporation | A wholly owned subsidiary through Data Image (MAURITIUS) Corporation | $ 354,540 | $ 33,205 | $ - | $ - | $ - | - | $ 886,350 | Yes | No | Yes |
Note: The total amount of the Company's endorsements /guarantees is limited to 50% of the Company's net worth as stated in its latest financial statements. The endorsements/guarantees provided to a single enterprise are limited to 20% of its net worth, as stated in its latest financial statements.
- 48 -
Data Image Corporation
Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital
For the Year Ended December 31, 2025
(In Thousands of New Taiwan Dollars)
Table 2
| Company Name | Related Party | Relationship | Transaction Details | Abnormal Transaction | Notes/Accounts Receivable (Payable) | Note | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Purchases/ sales | Amount | % of Total (Note 1) | Payment Terms | Unit price | Payment Terms | Ending Balance | % of Total | ||||
| The Company | Data Image (Suzhou) Corporation | Subsidiary | Processing fees | $ (1,046,706) | (96) | To be determined subject to the capital status | Based on the agreed prices | To be determined subject to the capital status | $ (355,084) | (61) | |
| Data Image (Suzhou) Corporation | The Company | Parent company | Processing income | 1,046,706 | 95 | To be determined subject to the capital status | Based on the agreed prices | To be determined subject to the capital status | 355,084 | 99 |
Note : The processing fees are calculated as a percentage of the total manufacturing expenses.
- 49 -
Data Image Corporation
Receivables from Related Parties Amounting to at least NT$100 million or 20% of the Paid-in Capital
December 31, 2025
(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)
Table 3
| Company Name | Related Party | Relationship | Ending Balance | Turnover Rate | Overdue | | Amount Received in Subsequent Year | Allowance for Impairment Loss |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | | | | Amount | Actions Taken | | |
| Data Image (Suzhou) Corporation | The Company | Parent company | $ 355,084 | 3.21 | $ - | — | $ 163,210 | $ - |
- 50 -
- 51 -
Data Image Corporation
Information on Investees
For the Year Ended December 31, 2025
(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)
Table 4
| Investor Company | Investee Company | Location | Main Businesses and Products | Original Investment Amount | | As of December 31, 2025 | | | Net Income (Loss) of the Investee | Share of Profit (Loss) | Note |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | | | December 31, 2025 | December 31, 2024 | Number of shares | Ratio (%) | Carrying amount | | | |
| The Company | Data Image (MAURITIUS) Corporation | Mauritius | Investment | $ 518,381 | $ 518,381 | 20,215,000 | 100.00 | $ 550,907 | $ 39,623 | $ 39,623 | — |
| | DIVA Laboratories, Ltd. | Taiwan | Medical equipment manufacturing and sales | 638,740 | 625,680 | 21,273,122 | 36.26 | 617,428 | 90,540 | 26,187 | Note 1 |
| | DMC Components International, LLC | Orlando, USA | Sales agency | 24,304 | 24,304 | 300,000 | 30.00 | 7,602 | (5,210) | (1,563) | Note 2 |
| DIVA Laboratories, Ltd. | DIVA Laboratories GmbH | Germany | Sales of monitor | 25,092 | 25,092 | - | 100.00 | 851 | (233) | (233) | — |
| | DIVA Laboratories U.S., LLC | USA | Sales of monitor | 35,858 | 35,858 | - | 100.00 | 21,313 | 1,129 | 1,129 | — |
| | Diva Capital Inc. | Samoa | Reinvestment | 52,908 | 52,908 | - | 100.00 | 9,541 | 490 | 490 | Note 3 |
| | The Linden Group Corp. | USA | Sales of monitor | 30,015 | 30,015 | - | 19.00 | 2,028 | 8,768 | 1,666 | Notes 4 and 5 |
| Diva Capital Inc. | Diva Holding Inc. | Samoa | Reinvestment | 52,598 | 52,598 | - | 100.00 | 9,615 | 490 | Note 6 | — |
Note 1: The difference between the profit and loss of the investee recognized based on the shareholding ratio in the current year and the investment gain or loss recognized in the current year is the effect of the fair value of the investee's assets being higher than the book value of the amortization.
Note 2: The carrying amount deducted the unrealized gain on downstream transactions of $371 thousand.
Note 3: The carrying amount deducted the unrealized gain on downstream transactions of $76 thousand.
Note 4: The carrying amount deducted the unrealized gain on downstream transactions of $1,466 thousand.
Note 5: DIVA Laboratories, Ltd. had accumulated $25,787 thousand of impairment loss on the investment in The Linden Group Corp. accounted for using the equity method.
Note 6: The profit or loss of the investee has been included in its investees. To avoid confusion, it is not expressed otherwise presented in these financial statements.
- 52 -
Data Image Corporation
Information on Investments in Mainland China
For the Year Ended December 31, 2025
(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)
Table 5
| Investee Company | Main Businesses and Products | Paid-in capital | Method of Investment | Accumulated Outward Remittance for Investment from Taiwan at the Beginning of Year | Remittance of Funds | Accumulated Outward Remittance for Investment from Taiwan at the End of Year | Net Income (Loss) of the Investee | Ownership of Direct or Indirect Investment (%) | Investment Gain (Loss) (Note 1) | Carrying Amount at the End of Year (Note 1) | Accumulated Repatriation of Investment Income at the End of Year | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Outward | Inward | |||||||||||
| Data Image (Suzhou) Corporation | Manufacturing, processing, and sale of LCD touch modules and LCD modules | $ 534,081 (USD 16,300 thousand) | An investee in Mainland China through investment in the establishment of Data Image (MAURITIUS) Corporation in a third region | $ 511,884 (USD 15,654 thousand) | $ - | $ - | $ 511,884 (USD 15,654 thousand) | $ 39,881 (RMB 9,522 thousand) | 100% | $ 39,881 (RMB 9,522 thousand) | $ 549,772 (RMB 122,302 thousand) | $ - |
| Suzhou Diva Lab. Inc. | Medical equipment wholesale, import and export business | $ 52,643 (USD 1,725 thousand) | Diva Capital Inc., a 100% owned third region subsidiary, reinvested in a third region company Diva Holding Inc., and reinvested in a mainland China company | $ 52,643 (USD 1,725 thousand) | - | - | $ 52,643 (USD 1,725 thousand) | $ 490 (RMB 111 thousand) | 100% | $ 490 (RMB 111 thousand) | $ 9,586 (RMB 2,132 thousand) | - |
| Investor | Accumulated Outward Remittance for Investments in Mainland China at the end of the year | Investment Amount Authorized by the Investment Commission, MOEA | Upper Limit on the Amount of Investments Stipulated by the Investment Commission, MOEA | |||||||||
| --- | --- | --- | --- | |||||||||
| The Company | USD 15,654 thousand | USD 16,952 thousand | $ 1,540,986 (Note 2) | |||||||||
| DIVA Laboratories, Ltd. | USD 1,725 thousand | USD 2,000 thousand (Note 3) | $ 617,497 (Note 4) |
Note 1: It was recognized based on the financial statements reviewed by the parent company's CPAs in Taiwan for the same period.
Note 2: The calculation is based on the limit of 60% of the net worth, according to related regulations from the Investment Commission, MOEA.
Note 3: As of December 31, 2025, DIVA Laboratories, Ltd. had remitted an accumulated investment amount of US$1,725 thousand from Taiwan and an unexecuted investment amount of US$275 thousand.
Note 4: The calculation is based on a limit of 60% of the consolidated net value of DIVA Laboratories, Ltd., according to related regulations from the Investment Commission, MOEA.
Data Image Corporation
Significant Transactions with Investee Companies in Mainland China, Either Directly or Indirectly through a Third Party, and Their Prices, Payment Terms, and Unrealized Gains or Losses
For the Year Ended December 31, 2025
(In Thousands of New Taiwan Dollars,)
Table 6
| Investee Company | Transaction type | Purchases/sale | Price | Transaction Details | Notes/Accounts Receivable (Payable) | Unrealized (Gain) Loss | Note | |||
|---|---|---|---|---|---|---|---|---|---|---|
| Amount | % | Payment Terms | Comparison with Normal Transaction | Ending Balance | % | |||||
| Data Image (Suzhou) Corporation | Sales | $ 9,805 | - | Proceed in accordance with the agreed-upon price | To be determined subject to the capital status | To be determined subject to the capital status | $ - | - | $ - | - |
| Data Image (Suzhou) Corporation | Processing fee | 1,046,706 | 96% | Made at the general purchase price | To be determined subject to the capital status | To be determined subject to the capital status | (355,084) | 61% | - | (Note) |
Note : The Company sells raw materials and semi-finished goods to Data Image (Suzhou) Corporation, and then it processes, the Company purchases partial finished goods and semi-finished goods from it to sell to customers. Due to the processing trade, the related sales income and cost are expressed at a net amount.
- 53 -
The Contents of Statements of Major Accounting Items
| Item | Statement Index |
|---|---|
| Major Accounting Items in Assets, Liabilities and Equity | |
| Statement of cash and cash equivalents | 1 |
| Statement of financial assets at fair value though profit or loss | Note 7 |
| Statement of accounts receivable | 2 |
| Statement of inventories | 3 |
| Statement of changes in investments accounted for using the equity method | 4 |
| Statement of changes in property, plant and equipment | Note 12 |
| Statement of changes in accumulated depreciation of property, plant and equipment | Note 12 |
| Statement of changes in right-of-use assets | 5 |
| Statement of deferred tax assets | Note 21 |
| Statement of accounts payable | 6 |
| Statement of other payables | Note 17 |
| Statement of lease liabilities | 7 |
| Statement of deferred tax liabilities | Note 21 |
| Major Accounting Items in Profit or Loss | |
| Statement of operating revenue | 8 |
| Statement of operating cost | 9 |
| Statement of operating expenses | 10 |
| Statement of other operating income and expenses | Note 20 |
| Statement of finance cost | Note 20 |
| Statement of labor, depreciation and amortization by function | 11 |
- 54 -
STATEMENT 1
Data Image Corporation
Statement of Cash and Cash Equivalents
December 31, 2025
(In Thousands of New Taiwan Dollars)
| Item | Exchange Rate | Annual Interest Rate | Amount |
|---|---|---|---|
| Cash | |||
| Cash on hand | $ 1 | ||
| Cash in banks | |||
| Demand deposits - NTD | 0.010%-0.725% | 68,712 | |
| Demand deposits - foreign currency USD | 31.43 | 0.010%-0.450% | 313,402 |
| Checking account | 302 | ||
| 382,416 | |||
| Cash equivalents | |||
| Time deposits | 1.255%-1.630% | 115,400 | |
| $ 497,817 |
STATEMENT 2
Data Image Corporation
Statement of Accounts Receivable
December 31, 2025
(In Thousands of New Taiwan Dollars)
| Client Name | Amount |
|---|---|
| Customer A | $ 76,997 |
| Customer B | 55,433 |
| Customer C | 50,084 |
| Customer D | 47,964 |
| Customer E | 37,089 |
| Customer F | 31,617 |
| Others (Note) | 134,449 |
| 433,633 | |
| Less: Loss allowance | 2,168 |
| $ 431,465 |
Note: The amount of individual client included in others does not exceed 5% of the account balance.
- 56 -
STATEMENT 3
Data Image Corporation
Statement of Inventories
December 31, 2025
(In Thousands of New Taiwan Dollars)
| Item | Amount | |
|---|---|---|
| Cost | Net Realizable Value | |
| Raw materials | $ 218,831 | $ 208,031 |
| Work in process | 42,482 | 92,796 |
| Finished goods | 22,605 | 38,689 |
| Merchandise | 12,457 | 64,286 |
| $ 296,375 | $ 403,802 |
- 57 -
STATEMENT 4
Data Image Corporation
Statement of Changes in Investments Accounted for Using the Equity Method
For the Year Ended December 31, 2025
(In Thousands of New Taiwan Dollars)
| Investee Company | Par Value | Changes in 2025 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance, January 1, 2025 | Additions (Decrease) in Investment | Share of profit or loss of subsidiaries and associates | Unrealized Valuation Gains (Losses) on Financial Assets at Fair Value through Other Comprehensive Income | Exchange Differences on Translation of Financial Statements of Foreign Operations | Others | Balance, December 31, 2025 | Net Assets Value | ||||||
| Shares | Amount | Shares | Amount | Shares | (%) | Amount | |||||||
| Data Image (MAURITIUS) Corporation | US$1 | 20,215,000 | $ 507,945 | - | $ - | $ 39,623 | $ - | $ 3,339 | $ - | 20,215,000 | 100.00 | $ 550,907 | $ 550,907 |
| DIVA Laboratories, Ltd. | NTD$10 | 21,273,122 | 633,622 | - | - | 26,187 | 188 | (355) | (42,214) | 21,273,222 | 36.26 | 617,428 | 742,432 |
| DMC Components International ,LLC | US$1 | 300,000 | 9,343 | - | - | (1,563) | - | (428) | 250 | 300,000 | 30.00 | 7,602 | 7,973 |
| $ 1,150,910 | $ -- | $ 64,247 | $ 188 | $ 2,556 | $ (41,964) | - | $ 1,175,937 | $ 1,301,312 |
Note 1: Long-term equity investments were not pledged as collateral.
Note 2: Others included actuarial gain of $333 thousand and a cash dividend of ($42,547) thousand.
Note 3: Others included realized gross profit on downstream $250 thousand.
STATEMENT 5
Data Image Corporation
Statement of Changes in Right-of-Use Assets
For the Year Ended December 31, 2025
(In Thousands of New Taiwan Dollars)
| Item | Balance, January 1, 2025 | Additions | Decreases | Balance, December 31, 2025 |
|---|---|---|---|---|
| Costs | ||||
| Buildings | $ 43,012 | $ 12,093 | $ (8,155) | $ 46,950 |
| Transportation equipment | 9,840 | 659 | (6,943) | 3,556 |
| Office equipment | - | 1,954 | - | 1,954 |
| 52,852 | $ 14,706 | $ (15,098) | 52,460 | |
| Accumulated depreciation | ||||
| Buildings | 9,347 | $ 9,537 | $ (8,155) | 10,729 |
| Transportation equipment | 6,319 | 1,570 | (6,393) | 1,496 |
| Office equipment | - | 380 | - | 380 |
| 15,666 | $ 11,487 | $ (14,548) | 12,605 | |
| $ 37,186 | $ 39,855 |
STATEMENT 6
Data Image Corporation
Statement of Accounts Payable
December 31, 2025
| Vendor Name | Amount |
|---|---|
| Vendor A | $ 41,728 |
| Vendor B | 19,122 |
| Vendor C | 16,827 |
| Vendor D | 16,540 |
| Vendor E | 13,262 |
| Vendor F | 11,599 |
| Others (Note) | 94,643 |
| $ 213,721 |
Note: The amount included in others does not exceed 5% of the account balance.
STATEMENT 7
Data Image Corporation
Statement of Lease Liabilities
December 31, 2025
(In Thousands of New Taiwan Dollars)
| Item | Summary | Lease Period | Discount Rate | Amount | Note |
|---|---|---|---|---|---|
| Buildings | 2020/05/01-2029/10/29 | 2.50%-2.60% | $ 37,304 | — | |
| Transportation equipment | 2021/05/11-2028/10/05 | 2.15%-2.60% | 2,102 | — | |
| Office equipment | 2025/05/22-2028/05/21 | 2.60% | 1,228 | — | |
| 40,634 | |||||
| Transfer of current liabilities within one year | (11,252) | ||||
| $ 29,382 |
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STATEMENT 8
Data Image Corporation
Statement of Operating Revenue
For the Year Ended December 31, 2025
(In Thousands of New Taiwan Dollars)
| Item | Quantity (Pcs) | Amount |
|---|---|---|
| LCD touch module | 911,667 | $ 2,183,618 |
| LCD module | 363,130 | 276,328 |
| Others | - | 90,708 |
| $ 2,550,654 |
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STATEMENT 9
Data Image Corporation
Statement of Operating Cost
For the Year Ended December 31, 2025
(In Thousands of New Taiwan Dollars)
| Items | Amount |
|---|---|
| Cost of goods sold - Manufactured Products | |
| Raw material | |
| Raw material, beginning of the year | $ 204,681 |
| Add: Raw material purchased | 457,491 |
| Less: Sales of raw material | (12,959) |
| Raw material, end of the year | (218,831) |
| Scrapping losses | (12,910) |
| Internal used | (4,036) |
| Raw material used | 413,436 |
| Manufacturing expense | 1,093,005 |
| Manufacturing cost | 1,506,441 |
| Add: Work in process, beginning of the year | 50,462 |
| Less: Work in process, end of the year | (42,482) |
| Cost of finished goods | 1,514,421 |
| Add: Finished goods, beginning of the year | 14,927 |
| Less: Finished goods, end of the year | (22,605) |
| Scrapping losses | (525) |
| Internal used | (2,480) |
| Cost of goods sold - Manufactured Products | 1,503,738 |
| Cost of goods sold - Purchased Merchandise | |
| Add: Merchandise, beginning of the year | 20,966 |
| Merchandise, purchased | 558,944 |
| Less: Merchandise, end of the year | (12,457) |
| Scrapping losses | (2,112) |
| Internal used | (707) |
| Cost of goods sold - Purchased Merchandise | 564,634 |
| Cost of raw material sold | 12,959 |
| Inventory scrapping losses | 15,547 |
| Operating costs | $ 2,096,878 |
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STATEMENT 10
Data Image Corporation
Statement of Operating Expenses
For the Year Ended December 31, 2025
(In Thousands of New Taiwan Dollars)
| Item | Selling expenses | General and administrative expenses | Research and development expenses | Expected credit loss(gain) | Total |
|---|---|---|---|---|---|
| Salaries | $ 23,293 | $ 71,159 | $ 66,664 | $ - | $ 161,116 |
| Commission fee | 18,048 | - | - | - | 18,048 |
| Depreciation expenses | 1,458 | 5,259 | 10,335 | - | 17,052 |
| Insurance expense | 4,280 | 5,204 | 4,524 | - | 14,008 |
| Professional service fees | 1,881 | 7,376 | 1,372 | - | 10,629 |
| Promotion expense | 4,053 | 29 | - | - | 4,082 |
| Others (Note) | 12,386 | 17,081 | 27,328 | 4 | 56,799 |
| $ 65,399 | $ 106,108 | $ 110,223 | $ 4 | $ 281,734 |
Note: The amount included in others does not exceed 5% of the account balance.
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STATEMENT 11
Data Image Corporation
Statement of Labor, Depreciation and Amortization by Function
For the Year Ended December 31, 2025 and 2024
(In Thousands of New Taiwan Dollars)
| Item | 2025 | 2024 | ||||
|---|---|---|---|---|---|---|
| Allocated to Operating Costs | Allocated to Operating Expense | Total | Allocated to Operating Costs | Allocated to Operating Expenses | Total | |
| Employee benefits expense | ||||||
| Salary | $ 37,318 | $153,632 | $190,950 | $ 39,807 | $148,329 | $188,136 |
| Labor and health insurance fees | 1,243 | 4,281 | 5,524 | 1,243 | 4,282 | 5,525 |
| Pension expense | 1,292 | 5,572 | 6,864 | 1,326 | 5,211 | 6,537 |
| Directors’ remuneration | - | 7,484 | 7,484 | - | 7,628 | 7,628 |
| Other employee benefits | 3,101 | 11,200 | 14,301 | 3,169 | 10,421 | 13,590 |
| $ 42,954 | $182,169 | $225,123 | $ 45,545 | $175,871 | $221,416 | |
| Depreciation expense | $ 5,997 | $ 17,052 | $ 23,049 | $ 4,807 | $ 15,723 | $ 20,530 |
| Amortization expense | $ - | $ 715 | $ 715 | $ - | $ 1,328 | $ 1,328 |
Note:
1. As of December 31, 2025 and 2024, the number of employees of the Company were 142 and 135, respectively, of which the number of directors who did not concurrently serve as employees was both 7.
2. Additional disclosure of the following information
a) The average employee benefit expense of the current year was $1,612 thousand and the previous year was $1,670 thousand.
b) The average employee's salary expense of the current year was $1,414 thousand and the previous year was $1,470 thousand.
c) Change in average employee's salary expense adjustments increased by 4%.
d) Directors' remuneration includes compensation, remuneration of directors, and transportation allowances. The compensation is determined with reference to industry standards. Transportation allowances are paid based on directors' attendance at board meetings, and remuneration of directors are handled in accordance with the Company's Articles of Incorporation. Remuneration of managerial personnel and employees includes salaries, bonuses, retirement or severance payments, and compensation of employees. Such compensation is determined with reference to prevailing industry practices, and takes into account individual performance, the Company's operating results, and the reasonableness in relation to future risks. Compensation is administered in accordance with the Company's salary management policies and related internal regulations. All directors' remuneration and managerial officers are reviewed and approved by the Compensation Committee and subsequently submitted to the Board of Directors for resolution in accordance with applicable regulations.
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