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DTECH — AGM Information 2026
May 29, 2026
52473_rns_2026-05-29_cbd353c2-e61e-4ffe-9e77-adc90ce80c56.pdf
AGM Information
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Desiccant Technology Co., Ltd.
2026 Annual General Meeting Minutes
Time: Wednesday, May 20, 2026 at 09:00 AM
Location: 17F., No. 88, Jhongshan Rd., Jhongli Dist., Taoyuan City (Main Conference Room)
Attendants: The company has issued 42,108,000 shares. The number of shares present, including those represented by proxies, totals 23,477,719, accounting for 55.75% of the issued shares. This meets the legal attendance requirement.
Board Members Present: Shih-Chih Cheng (Chairman), Ming-Chu Lee-Lai, Jung-Ming Chang.
Attendee: Kuo-Yuan Lin (General Manager), Sheng-Hsiung Yao (CPA from Deloitte & Touche).
Chairperson: Shih-Chih Cheng, Chairman
Minute Recorder: Yi-Shiuan Lu
- The number of shares represented in the meeting has reached the quorum required by the Company Act, and the Chairman declares the meeting open in accordance with the law.
- Chairman's Address (omitted)
- Report Items
(1). 2025 Business Report. Submitted for your review
The Company's 2025 Business Report is attached as Attachments 1 of this handbook for your reference..
(2). Audit Committee's Review Report on the 2025 Final Financial Statements. Submitted for your review.
Description: The Audit Committee's Review Report is attached as Attachment 2 (page 14) of this handbook for your reference.
(3). Report on the Distribution of Employees' and Directors' Compensation for 2025. Submitted for your review.
Description: In accordance with the allocation ratios stipulated in the Company's Articles of Incorporation and based on the Company's
profitability for 2025, the profit before tax prior to the deduction of employees' and directors' compensation amounted to NT$564,172,868. Among the aforementioned amount of employees' compensation, no less than 10% shall be allocated for salary adjustments or bonuses for junior-level employees. The proposed allocation for 2025 is as follows, and all amounts will be distributed in cash:
Unit: NT$
| Category | Allocation Ratio | Allocation Amount | Remarks |
|---|---|---|---|
| Employees' Compensation | 6.00% | 33,850,372 | 10% (NT$3,385,037) is allocated to junior-level employees. |
| Directors' Remuneration | 0.93% | 5,253,428 | |
| Total | 39,103,800 |
4. Ratification Items
(1). Ratification of the 2025 Business Report and Financial Statements. (Proposed by the Board of Directors)
Description: The Company's 2025 financial statements (including consolidated financial statements) have been duly audited by CPAs Sheng-Hsiung Yao and Tsung-Yuan Tsai of Deloitte & Touche. These statements, together with the Business Report and Earnings Distribution Table,a have been reviewed by the Audit Committee. Please refer to Attachments $1\sim 2$ , Attachment 3, and Attachment 4 of this handbook. They are hereby submitted to the Annual General Meeting for ratification.
Resolution: Approved and acknowledged as proposed by the Board of Directors.
Voting Result: 22,952,719 shares were represented at the time of voting (including 1,633,991 shares voted via electronic transmission)
| Voting Results | %of the total representation at the time of voting |
|---|---|
| Votes in favor: 22,463,610 votes (including 1,160,788 shares voted via electronic transmission) | 97.86% |
| Dissent Votes: 10,367 votes (including 10,367 | 0.04% |
| Dissent's Dissent: 10,367 votes (including 10,367 | 0.04% |
| Dissent's Dissent's Dissent: 10,367 votes (including 10,367 | 0.04% |
(2). Ratification of the 2025 Earnings Distribution Proposal. (Proposed by the Board of Directors)
1) Description: After the Company's 2025 net income after tax has been set aside as a legal reserve in accordance with the law, together with the undistributed earnings from previous years, the Earnings Distribution Table has been prepared in accordance with the Articles of Incorporation.
2) For this earnings distribution, it is proposed to distribute a cash dividend of NT$5.5 per share and a stock dividend of NT$1.0 per share to shareholders. The distribution will be based on the shareholding proportion of the shareholders recorded in the register of shareholders on the record date.
3) Fractional amounts of cash dividends less than NT$1 shall be recognized as other income of the Company.
4) It is proposed that the Annual General Meeting authorize the Board of Directors to determine the ex-rights record date and the distribution date.
5) Please refer to Attachments 3 of this handbook for the Earnings Distribution Table.
Voting Result: 22,952,719 shares were represented at the time of voting (including 1,633,991 shares voted via electronic transmission)
| Voting Results | % of the total representation at the time of voting |
|---|---|
| Votes in favor: 22,462,688 votes (including 1,159,866 shares voted via electronic transmission) | 97.86% |
| Dissent Votes: 10,498 votes (including 10,498 shares voted via electronic transmission) | 0.04% |
| Votes abstained: 479,533 votes (including | 2.08% |
463,627 shares voted via electronic transmission)
- Discussion Items
(1). Proposal for Issuance of New Shares through Capitalization of Earnings. Submitted for discussion. (Proposed by the Board of Directors)
1) The Company proposes to capitalize NT$42,108,000 from the 2025 distributable shareholder dividends to issue 4,210,800 new shares with a par value of NT$10 per share. New shares will be distributed to shareholders listed in the register of shareholders on the record date at a ratio of 100 shares for every 1,000 shares held. For fractional shares that do not amount to one whole share, shareholders may pool their fractional shares to form whole shares and apply to the Company's stock affairs agent within five days from the first day of the book closure period. For fractional shares that are not pooled or remain less than one whole share, cash will be paid based on the par value (truncated to the nearest dollar), and the Chairman is authorized to find designated persons to purchase such fractional shares at par value.
2) It is proposed that the Annual General Meeting authorize the Board of Directors to set the record date for stock distribution and the capital increase after the proposal is approved by the competent authority.
3) Should there be any change in the number of outstanding shares due to capital fluctuations, resulting in a change in the distribution rate, it is proposed that the Annual General Meeting authorize the Board of Directors with full power to handle the matter.
4) If the competent authority mandates amendments to the capital increase or if revisions are necessary due to factual circumstances, it is proposed that the Annual General Meeting authorize the Board of Directors with full power to handle the matter.
5) The rights and obligations of the new common shares issued are identical to those of the existing shares.
Voting Result: 22,952,719 shares were represented at the time of voting (including 1,633,991 shares voted via electronic transmission)
| Voting Results | % of the total representation at the time of voting |
|---|---|
| Votes in favor: 22,452,260 votes | |
| (including 1,149,438 shares voted via electronic transmission) | 97.81% |
| Dissent Votes: 13,041 votes (including 13,041 shares voted via electronic transmission) | 0.05% |
| Votes abstained: 487,418 votes (including 471,512 shares voted via electronic transmission) | 2.12% |
6. Election Items
(1). Proposal for the by-election of one Director and the election of one additional Director. Submitted for discussion. (Proposed by the Board of Directors)
1) The Company's current Director, Hsin-Huan Chen, intends to resign from the position of Director on May 19, 2026, due to personal reasons. It is proposed to conduct a by-election for one Director at the 2026 Annual General Meeting of Shareholders.
2) According to Article 13 of the Company's Articles of Incorporation, the Company shall have five to eleven Directors. To meet the Company's operational needs, it is proposed to elect one additional Director.
3) The Directors elected in this by-election and additional election shall assume office immediately after being elected at the Annual General Meeting. Their term of office shall be the same as that of the current Directors, ending on May 21, 2028.
4) The election of Directors of the Company adopts a Candidate Nomination System. The list of candidates for Directors and Independent Directors was reviewed and approved by the Board of Directors on March 3, 2026. For relevant information, please refer to Attachments 5 of this handbook.
Resolution:
The election results are as follows:
| Position | Elected Person | Number of Votes Received |
|---|---|---|
| Director | Lun-Ching Chen | 22,155,399 votes |
| Director | Chun-Jung Chen | 22,105,917 votes |
7. Other Proposals
(1). Proposal to release the newly appointed Directors from non-competition restrictions. Submitted for discussion. (Proposed by the Board of Directors)
1) In accordance with Article 209 of the Company Act and the Company's Articles of Incorporation.
2) Whereas the Company's Directors may invest in or manage other companies with business scopes identical or similar to that of the Company, it is hereby submitted to the Annual General Meeting for approval. Provided that there is no prejudice to the interests of the Company, it is proposed to approve the release of the newly appointed Directors from non-competition restrictions.
3) It is proposed that the Shareholders' Meeting approve the release of the newly appointed Directors from non-competition restrictions, as listed in the table below:
| Name | Current Positions in Other Companies |
|---|---|
| Lun Ching Chen | Chairman of Ju-Jin Investment Co., Ltd. Chairman of Ju-Lun Investment Co., Ltd |
Resolution: The proposal was approved as submitted by the Board of Directors.
Voting Result: 23,448,719 shares were represented at the time of voting (including 1,633,991 shares voted via electronic transmission)
| Voting Results | % of the total representation at the time of voting |
|---|---|
| Votes in favor: 22,375,117 votes (including 1,072,295 shares voted via electronic transmission) | 95.42% |
| Dissent Votes: 50,781 votes (including 50,781 shares voted via electronic transmission) | 0.21% |
| Votes abstained: 1,022,821 votes (including 510,915 shares voted via electronic transmission) | 4.36% |
|---|---|
-
Extraordinary Motions : None
-
Adjournment: The meeting ended at 09:28 am
(Note: The minutes of this shareholders' meeting only summarize the key points of the meeting and the results of the resolutions; the detailed proceedings, procedures, and shareholder speeches are based on the meeting's audio and video recordings.)
【Attachments 1】 Business Report for 2025
Desiccant Technology Co., Ltd. 2025 Business Report
Report to Shareholders:
For the fiscal year 2025, the Company's total consolidated operating revenue reached NT$2,861,139 thousand, representing an increase of 27.29% compared to 2024. Consolidated net income after tax was NT$418,316 thousand, a growth of 10.87% over 2024, with earnings per share (EPS) of NT$9.93. For this period, the Company has distributed a cash dividend of NT$5.5 per share and a stock dividend of NT$1.0 per share.
Driven by the demand for High Performance Computing (HPC) and Artificial Intelligence (AI) applications, chip demand remains robust, and the semiconductor output value continues to grow significantly. Benefiting from these trends, the Company's consolidated operating revenue reached a new peak in 2024. However, escalating geopolitical tensions and the introduction of "CHIPS Acts" by major nations—aimed at strengthening local industrial production capacity and securing autonomy in key technologies—continue to test the Company's agility in supply chain layout and cost control. Fortunately, through the collective efforts of all employees in 2024, our profitability grew substantially, and it is an honor to share these operational results with all shareholders.
To achieve the goal of a sustainable homeland, net-zero emissions and air pollution reduction remain key policies of the Taiwan government. In 2024, the Ministry of Environment established carbon pricing, officially marking Taiwan's entry into the carbon pricing era. In the same year, the "Fine Determination Criteria for Violations of the Air Pollution Control Act by Stationary Pollution Sources at Public and Private Premises" was released, increasing penalties for violations regarding Nitrogen Oxides (NOx) and Volatile Organic Compounds (VOCs) emissions.
This objective aligns with the Company's long-standing business philosophy. Pursuing sustainable operations (ESG) is both our goal and our corporate social responsibility. Global CO2 reduction is a common goal for humanity. To keep pace with global environmental protection efforts and improve the human living environment, the Company collaborates with professional foreign companies, domestic R&D institutions, and academic units to develop equipment and systems that address increasing market demands.
Micro-pollution in the semiconductor manufacturing environment is critical to product quality and yield rates. Therefore, the Company actively invests in R&D to continuously optimize and innovate our existing VOCs abatement systems. Additionally, the Company is collaborating with academic and research institutions to develop fuel cell technology and gasifier systems (Green Hydrogen), while also independently developing nano-grade Chemical Filter systems. These efforts aim to increase the breadth and depth of the Company's applications in energy and environmental air treatment systems.
Finally, we hope for the continued support of all shareholders to achieve our goals. We sincerely thank you for your support and recognition of the Company.
Wishing all shareholders good health and every success.
Chairman: Shih-Chih Cheng
2025 Consolidated Business Report
I. Implementation Results of the Business Plan
Unit: NTD in thousands
| Item | 2025 (Current Year) | 2024 (Previous Year) | Increase (Decrease) | |||
|---|---|---|---|---|---|---|
| Amount | % | Amount | % | Amount | % | |
| Operating Revenue | 2,861,139 | 100 | 2,247,746 | 100 | 613,393 | 27.29% |
| Gross Profit | 676,664 | 23 | 570,753 | 25 | 105,911 | 18.56% |
| Operating Income | 493,259 | 17 | 409,808 | 18 | 83,451 | 20.36% |
| Net Income Before Tax | 535,132 | 19 | 485,846 | 22 | 49,286 | 10.14% |
II. Analysis of Financial Receipts, Expenditures, and Profitability:
The Company's financial condition for 2025 remained sound, with earnings per share (EPS) of NT$9.93. The profitability analysis is as follows :
| Year Category | 2025 | ||
|---|---|---|---|
| Financial Structure (%) | Ratio of Liabilities to Assets | A | 55.72 |
| Ratio of Long-term Capital to Property, Plant and Equipment | B | 536.58 | |
| Solvency | Current Ratio (%) | C | 164.45 |
| Quick Ratio (%) | D | 149.25 | |
| Times Interest Earned (Times) | E | 7,433.44 | |
| Profitability | Return on Assets (%) | F | 10.85 |
| Return on Equity (%) | G | 23.17 | |
| Ratio to Paid-in Capital (%) | Operating Income | 116.94 | |
| Net Income Before Tax | 126.87 | ||
| Net Profit Margin (%) | 14.62 | ||
| Basic Earnings Per Share (NTD) | 9.93 |
A= Total Liabilities / Total Assets *
B= ( Total Equity + Non-current Liabilities ) / Net Property, Plant and Equipment
C= Current Assets/ Current Liabilities
D= ( Current Assets - Inventories - Prepaid Expenses ) / Current Liabilities
E= Profit Before Tax and Interest Expense / Interest Expense for the Current Period
F= [ Net Income After Tax + Interest Expense × ( 1 - Tax Rate ) / Average Total Assets
G= Net Income After Tax / Average Total Equity
Chairman:
President:
Chief Accounting Officer:
【Attachments 2】 Audit Committee’s Review Report
Audit Committee’s Review Report
The Board of Directors has prepared the Company’s 2025 Business Report, Financial Statements, and Earnings Distribution Proposal. Among these, the Financial Statements have been duly audited by CPAs Sheng-Hsiung Yao and Tsung-Yuan Tsai of Deloitte & Touche, who have issued an audit report accordingly.
The aforementioned Business Report, Financial Statements, and Earnings Distribution Proposal have been reviewed by the Audit Committee and were determined to be correct. We hereby submit this report in accordance with Article 14-4 of the Securities and Exchange Act and Article 219 of the Company Act.
Submitted for consideration.
To: The 2026 Annual General Meeting of Shareholders of Desiccant Technology Corporation
審計委員會召集人：張榮銘 陳榮銘
March 3, 2026
【Attachments 3】 Earnings Distribution Table
| Items | Total | (Unit : NTD $) Remark |
|---|---|---|
| Beginning retained earnings | 595,833,488 | |
| Add:Actuarial Gain (Loss) on Defined Benefit Plans | (15,472) | A |
| Adjusted un-appropriated retained earnings | 595,818,016 | |
| Add: net profit after tax | 418,316,213 | B |
| Special reserves | (6,839,646) | |
| Less: 10% legal reserve | (41,830,074) | C=(A+B)*10% |
| Distributable net profit | 965,464,509 | |
| Distributable items: | ||
| Cash Dividends to Shareholders | (231,594,000) | NT$ 5.5 per share |
| Stock Dividends to Shareholders | (42,108,000) | NT$ 1.0 per share |
| Un-appropriated retained earnings after distribution | 691,762,509 |
Chairman:
President:
Chief Accounting Officer:
【Attachments 4】 Independent Auditors' Report and 2025 Financial Statements
Deloitte.
勤業眾信
勤業眾信聯合會針師事務所
110421 台北市信義區松仁路100號20樓
Deloitte & Touche
20F, Taipei Nan Shan Plaza
No. 100, Songren Rd.,
Xinyi Dist., Taipei 110421, Taiwan
Tel: +886 (2) 2725-9988
Fax: +886 (2) 4051-6888
www.deloitte.com.tw
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders
Desiccant Technology Corporation
Opinion
We have audited the accompanying consolidated financial statements of Desiccant Technology Corporation and its subsidiaries (collectively referred to as the "Group"), which comprise the consolidated balance sheets as of December 31, 2025 and 2024, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the consolidated financial statements, including material accounting policy information (collectively referred to as the "consolidated financial statements").
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.
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 Consolidated Financial Statements section of our report. We are independent of the Group in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matter
Key audit matter is the matter that, in our professional judgment, was of most significance in our audit of the consolidated financial statements for the year ended December 31, 2025. The matter was addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on the matter.
The key audit matter of the Group’s consolidated financial statements for the year ended December 31, 2025 is stated as follows:
Revenue Recognition from Construction Contracts
The Group mainly engages in the design, engineering and installation of systems. Construction revenue is recognized over time using the percentage-of-completion method, with progress measured based on costs incurred relative to the estimated total contracts costs. The estimated total project cost and contract items are evaluated and judged by the management with respect to the nature of different projects, estimated contract amounts, engineering periods, engineering work, work methods, etc. However, due to the long contract periods, the contracts are susceptible to fluctuations in raw material and labor prices and additions and deletions of projects, which make them subject to inherent risks of complexity. Due to the nature of subjective estimation, errors could exist in calculation of construction revenue based on the percentage of completion method for some projects, leading to significant impacts on inaccurate revenue presentation in each period. The estimation of total construction cost for project contracts is a significant estimation and judgment. Therefore, it is identified as key audit matter.
Refer to Notes 4(m), 5 and 24 of the consolidated financial statements for the accounting policy, accounting estimates and assumptions uncertainties, and relevant disclosures relating to revenue recognition from construction contracts.
Our main audit procedures performed in respect of the above key audit matter included the following:
- We obtained an understanding of the design and implementation of internal controls for estimating total construction cost.
- We selected samples and performed tests of details to verify the reasonableness of the estimated total construction cost.
Other Matter
We have also audited the parent company only financial statements of Desiccant Technology Corporation as of and for the years ended December 31, 2025 and 2024 on which we have issued an unmodified opinion.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
Those charged with governance, including the audit committee, are responsible for overseeing the Group’s financial reporting process.
Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
-
Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
-
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
-
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
-
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern.
-
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
-
Obtain sufficient and appropriate audit evidence regarding the financial information of entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision, and performance of the group 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 consolidated financial statements for the year ended December 31, 2025 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
The engagement partners on the audits resulting in this independent auditors’ report are Sheng-Hsiung, Yao and Tsung-Yuan, Tsai.
Yao Sheng Hsiung Tsungyuan Tsai
Deloitte & Touche
Taipei, Taiwan
Republic of China
March 13, 2026
Notice to Readers
The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such consolidated financial statements are those generally applied in the Republic of China.
For the convenience of readers, the independent auditors’ report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ report and consolidated financial statements shall prevail.
DESICCANT TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars)
| 2025 | 2024 | |||
|---|---|---|---|---|
| ASSETS | Amount | % | Amount | % |
| CURRENT ASSETS | ||||
| Cash and cash equivalents (Note 6) | $ 952,334 | 22 | $ 1,629,928 | 48 |
| Financial assets at fair value through profit or loss - current (Notes 7 and 31) | 228,946 | 5 | 226,675 | 7 |
| Financial assets at amortized cost - current (Notes 9 and 33) | 1,302,584 | 30 | 1,841 | - |
| Contract assets - current (Note 24) | 524,583 | 12 | 443,117 | 13 |
| Notes receivable (Notes 10 and 24) | 1,455 | - | 20,061 | 1 |
| Trade receivables (Notes 10 and 24) | 507,358 | 12 | 289,102 | 9 |
| Other receivables (Note 10) | 5,921 | - | 15,556 | - |
| Inventories (Note 11) | 311,845 | 7 | 249,039 | 7 |
| Prepayments (Note 17) | 15,841 | 1 | 24,261 | 1 |
| Other current assets (Note 17) | - | - | 9 | - |
| Total current assets | 3,850,867 | 89 | 2,899,589 | 86 |
| NON-CURRENT ASSETS | ||||
| Financial assets at fair value through other comprehensive income - non-current (Notes 8 and 31) | 423 | - | 423 | - |
| Contract assets - non-current (Note 24) | 6,861 | - | 10,558 | - |
| Property, plant and equipment (Notes 13 and 33) | 370,295 | 9 | 382,986 | 12 |
| Right-of-use asset (Note 14) | 1,791 | - | - | - |
| Investment properties (Notes 15 and 33) | 55,157 | 1 | 58,917 | 2 |
| Other intangible assets (Note 16) | 33 | - | 151 | - |
| Deferred tax assets (Note 26) | 27,806 | 1 | 11,431 | - |
| Prepayments for equipment (Note 17) | 65 | - | - | - |
| Refundable deposits (Note 17) | 941 | - | 3,309 | - |
| Other financial assets - non-current (Notes 17 and 33) | - | - | 2,693 | - |
| Total non-current assets | 463,372 | 11 | 470,468 | 14 |
| TOTAL | $ 4,314,239 | 100 | $ 3,370,057 | 100 |
| LIABILITIES AND EQUITY | ||||
| CURRENT LIABILITIES | ||||
| Short-term borrowings (Notes 18 and 34) | $ 65,233 | 1 | $ 71,656 | 2 |
| Contract liabilities - current (Note 24) | 1,497,400 | 35 | 864,597 | 26 |
| Notes payable (Note 19) | 295,659 | 7 | 318,822 | 9 |
| Trade payables (Note 19) | 231,539 | 5 | 180,017 | 5 |
| Other payables (Note 20) | 130,380 | 3 | 115,859 | 3 |
| Current tax liabilities (Note 26) | 81,674 | 2 | 55,622 | 2 |
| Provisions - current (Note 21) | 25,444 | 1 | 21,882 | 1 |
| Lease Liabilities - current (Note 14) | 1,354 | - | - | - |
| Other current liabilities (Note 20) | 1,635 | - | 1,958 | - |
| Total current liabilities | 2,330,318 | 54 | 1,630,413 | 48 |
| NON-CURRENT LIABILITIES | ||||
| Deferred tax liabilities (Note 26) | 46,232 | 1 | 41,909 | 1 |
| Lease liabilities - non-current (Note 14) | 467 | - | - | - |
| Net defined benefit liabilities - non-current (Note 22) | 13,851 | - | 13,565 | 1 |
| Other non-current liabilities (Note 20) | 147 | - | 147 | - |
| Total non-current liabilities | 60,697 | 1 | 55,621 | 2 |
| Total liabilities | 2,391,015 | 55 | 1,686,034 | 50 |
| EQUITY (Note 23) | ||||
| Ordinary shares | 421,080 | 10 | 382,800 | 11 |
| Capital surplus | 335,473 | 8 | 335,473 | 10 |
| Retained earnings | ||||
| Legal reserve | 159,377 | 4 | 121,604 | 3 |
| Special reserve | 12,496 | - | 20,987 | 1 |
| Unappropriated earnings | 1,014,134 | 23 | 835,655 | 25 |
| Total retained earnings | 1,186,007 | 27 | 978,246 | 29 |
| Other equity | (19,336) | - | (12,496) | - |
| Total equity | 1,923,224 | 45 | 1,684,023 | 50 |
| TOTAL | $ 4,314,239 | 100 | $ 3,370,057 | 100 |
The accompanying notes are an integral part of the consolidated financial statements.
DESICCANT TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED 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 (Note 24) | ||||
| Sales | $ 28,486 | 1 | $ 37,327 | 2 |
| Construction revenue | 2,549,489 | 89 | 1,932,660 | 86 |
| Repair and maintenance service | 283,164 | 10 | 277,759 | 12 |
| Total operating revenue | 2,861,139 | 100 | 2,247,746 | 100 |
| OPERATING COSTS (Notes 11 and 25) | ||||
| Cost of sales | (21,836) | (1) | (26,397) | (1) |
| Construction costs | (2,020,589) | (70) | (1,510,092) | (67) |
| Repair and maintenance costs | (142,052) | (5) | (140,504) | (7) |
| Total operating costs | (2,184,477) | (76) | (1,676,993) | (75) |
| GROSS PROFIT | 676,662 | 24 | 570,753 | 25 |
| OPERATING EXPENSES (Notes 25 and 33) | ||||
| Selling and marketing expenses | (16,493) | (1) | (10,857) | - |
| General and administrative expenses | (109,234) | (4) | (82,181) | (4) |
| Research and development expenses | (55,611) | (2) | (63,248) | (3) |
| Expected credit loss (Notes 10 and 24) | (2,066) | - | (4,659) | - |
| Total operating expenses | (183,404) | (7) | (160,945) | (7) |
| PROFIT FROM OPERATIONS | 493,258 | 17 | 409,808 | 18 |
| NON-OPERATING INCOME (Notes 25, 29 and 33) | ||||
| Interest income | 24,334 | 1 | 22,323 | 1 |
| Other income | 4,746 | - | 32,628 | 2 |
| Other gains | 12,867 | - | 21,087 | 1 |
| Finance costs | (72) | - | - | - |
| Total non-operating income | 41,875 | 1 | 76,038 | 4 |
| PROFIT BEFORE INCOME TAX | 535,133 | 18 | 485,846 | 22 |
| INCOME TAX EXPENSE (Note 26) | (116,817) | (4) | (108,533) | (5) |
| NET PROFIT | 418,316 | 14 | 377,313 | 17 |
| OTHER COMPREHENSIVE INCOME |
(Continued)
DESICCANT TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED 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 will not be reclassified subsequently to profit or loss: | ||||
| Remeasurement of defined benefit plans (Note 22) | (19) | - | 530 | - |
| Income tax relating to items that will not be reclassified subsequently to profit or loss (Note 26) | 4 | - | (106) | - |
| (15) | - | 424 | - | |
| Items that may be reclassified subsequently to profit or loss: | ||||
| Exchange differences on translation of the financial statements of foreign operations (Note 23) | (8,550) | - | 10,613 | - |
| Income tax related to items that may be reclassified subsequently to profit or loss (Notes 23 and 26) | 1,710 | - | (2,122) | - |
| (6,840) | - | 8,491 | - | |
| Other comprehensive (loss) income, net of income tax | (6,855) | - | 8,915 | - |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR | $ 411,461 | 14 | $ 386,228 | 17 |
| EARNINGS PER SHARE (NT$; Note 27) | ||||
| From continuing and discontinued operations | ||||
| Basic | $ 9.93 | $ 8.96 | ||
| Diluted | $ 9.88 | $ 8.91 |
The accompanying notes are an integral part of the consolidated financial statements. (Concluded)
DESICCANT TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars)
| Equity Attributable to Owners of the Company | ||||||||
|---|---|---|---|---|---|---|---|---|
| Share Capital | Capital Surplus | Retained Earnings | Other Equity Exchange Differences on Translation of the Financial Statements of Foreign Operations | Total Equity | ||||
| Shares (In Thousands) | Amount | Legal Reserve | Special Reserve | Unappropriated Earnings | ||||
| BALANCE, JANUARY 1, 2024 | 34,800 | $ 348,000 | $ 335,473 | $ 91,066 | $ 18,038 | $ 682,805 | $ (20,987) | $ 1,454,395 |
| Appropriation of 2023 earnings (Note 23) | ||||||||
| Legal reserve | - | - | - | 30,538 | - | (30,538) | - | - |
| Special reserve | - | - | - | - | 2,949 | (2,949) | - | - |
| Cash dividends distributed by the Company | - | - | - | - | - | (156,600) | - | (156,600) |
| Share dividends distributed by the Company | 3,480 | 34,800 | - | - | - | (34,800) | - | - |
| Net profit for the year ended December 31, 2024 | - | - | - | - | - | 377,313 | - | 377,313 |
| Other comprehensive income for the year ended December 31, 2024 (Note 23) | - | - | - | - | - | 424 | 8,491 | 8,915 |
| Total comprehensive income for the year ended December 31, 2024 | - | - | - | - | - | 377,737 | 8,491 | 386,228 |
| BALANCE, DECEMBER 31, 2024 | 38,280 | 382,800 | 335,473 | 121,604 | 20,987 | 835,655 | (12,496) | 1,684,023 |
| Appropriation of 2024 earnings (Note 23) | ||||||||
| Legal reserve | - | - | - | 37,773 | - | (37,773) | - | - |
| Special reserve | - | - | - | - | (8,491) | 8,491 | - | - |
| Cash dividends distributed by the Company | - | - | - | - | - | (172,260) | - | (172,260) |
| Share dividends distributed by the Company | 3,828 | 38,280 | - | - | - | (38,280) | - | - |
| Net profit for the year ended December 31, 2025 | - | - | - | - | - | 418,316 | - | 418,316 |
| Other comprehensive loss for the year ended December 31, 2025 (Note 23) | - | - | - | - | - | (15) | (6,840) | (6,855) |
| Total comprehensive income (loss) for the year ended December 31, 2025 | - | - | - | - | - | 418,301 | (6,840) | 411,461 |
| BALANCE, DECEMBER 31, 2025 | 42,108 | $ 421,080 | $ 335,473 | $ 159,377 | $ 12,496 | $ 1,014,134 | $ (19,336) | $ 1,923,224 |
The accompanying notes are an integral part of the consolidated financial statements.
DESICCANT TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED 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 | $ 535,133 | $ 485,846 |
| Adjustments for: | ||
| Depreciation expense | 19,021 | 20,003 |
| Amortization expense | 118 | 2,669 |
| Expected credit loss recognized on trade receivables | 2,066 | 4,659 |
| Net gain on fair value changes of financial assets at fair value through profit or loss | (3,331) | (3,121) |
| Finance costs | 72 | - |
| Interest income | (24,334) | (22,323) |
| Dividend income | (48) | (41) |
| Loss on disposal of property, plant and equipment | - | 5 |
| Write-down of inventories | 6,246 | 7,462 |
| Changes in operating assets and liabilities | ||
| Contract assets | (73,917) | (121,238) |
| Notes receivable | 18,606 | (7,891) |
| Trade receivables | (223,916) | 104,545 |
| Other receivables | 12,883 | (12,508) |
| Inventories | (69,255) | (90,299) |
| Prepayments | 8,420 | 2,066 |
| Other current assets | 9 | (9) |
| Contract liabilities | 632,803 | 117,689 |
| Notes payable | (23,163) | 156,551 |
| Trade payables | 51,522 | 27,795 |
| Other payables | 16,043 | 11,003 |
| Provisions | 3,562 | 5 |
| Other current liabilities | (323) | 365 |
| Net defined benefit liabilities | 267 | 286 |
| Cash generated from operations | 888,484 | 683,519 |
| Interest received | 21,086 | 20,999 |
| Income tax paid | (101,086) | (92,848) |
| Net cash generated from operating activities | 808,484 | 611,670 |
| CASH FLOWS USED IN INVESTING ACTIVITIES | ||
| Purchase of financial assets at amortized cost | (1,300,743) | (22) |
| Proceeds from sale of financial assets at fair value through profit or loss | 1,060 | 515 |
| Payments for property, plant and equipment | (3,906) | (44,673) |
| Proceeds from disposal of property, plant and equipment | - | 101 |
| Decrease (increase) in refundable deposits | 2,368 | (500) |
| Decrease (increase) in other financial assets | 2,693 | (2,693) |
| Increase in prepayments for equipment | (65) | - |
| Other dividends received | 48 | 41 |
(Continued)
DESICCANT TECHNOLOGY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars)
| 2025 | 2024 | |
|---|---|---|
| Net cash used in investing activities | (1,298,545) | (47,231) |
| CASH FLOWS USED IN FINANCING ACTIVITIES | ||
| Increase in short-term borrowings | - | 50,023 |
| Decrease in short-term borrowings | (6,423) | - |
| Increase in guarantee deposits received | - | 3 |
| Repayment of the principal portion of lease liabilities | (916) | - |
| Dividends paid to owners of the Company | (172,260) | (156,600) |
| Net cash used in financing activities | (179,599) | (106,574) |
| EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH HELD IN FOREIGN CURRENCIES | (7,934) | 9,110 |
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (677,594) | 466,975 |
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR | 1,629,928 | 1,162,953 |
| CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR | $ 952,334 | $ 1,629,928 |
The accompanying notes are an integral part of the consolidated financial statements. (Concluded)
Deloitte.
勤業眾信
勤業眾信聯合會針師事務所
110421 台北市信義區松仁路100號20樓
Deloitte & Touche
20F, Taipei Nan Shan Plaza
No. 100, Songren Rd.,
Xinyi Dist., Taipei 110421, Taiwan
Tel: +886 (2) 2725-9988
Fax: +886 (2) 4051-6888
www.deloitte.com.tw
INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders
Desiccant Technology Corporation
Opinion
We have audited the accompanying parent company only financial statements of Desiccant Technology Corporation (the “Company”), which comprise the parent company only balance sheets as of December 31, 2025 and 2024, and the parent company only statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the parent company only financial statements, including material accounting policy information (collectively referred to as the “parent company only financial statements”).
In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the parent company only financial position of the Company as of December 31, 2025 and 2024, and its parent company only financial performance and its parent company only 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 Parent Company Only Financial Statements section of our report. We are independent of the Company in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matter
Key audit matter is the matter that, in our professional judgment, was of most significance in our audit of the parent company only financial statements for the year ended December 31, 2025. The matter was addressed in the context of our audit of the parent company only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on the matter.
Auditors' Responsibilities for the Audit of the Parent Company Only Financial Statements
Our objectives are to obtain reasonable assurance about whether the parent company only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these parent company only financial statements.
As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
-
Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
-
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
-
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
-
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.
-
Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
-
Obtain sufficient and appropriate audit evidence regarding the parent company only financial information of entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements for the year ended December 31, 2025 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
The engagement partners on the audits resulting in this independent auditors’ report are Sheng-Hsiung, Yao and Tsung-Yuan, Tsai.
Yao Sheng Hsiung Tsungyuan Tsai
Deloitte & Touche
Taipei, Taiwan
Republic of China
March 13, 2026
Notice to Readers
The accompanying parent company only financial statements are intended only to present the parent company only 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 parent company only financial statements are those generally applied in the Republic of China.
For the convenience of readers, the independent auditors’ report and the accompanying parent company only 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 parent company only financial statements shall prevail.
DESICCANT TECHNOLOGY CORPORATION
PARENT COMPANY ONLY BALANCE SHEETS
DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars)
| 2025 | 2024 | |||
|---|---|---|---|---|
| ASSETS | Amount | % | Amount | % |
| CURRENT ASSETS | ||||
| Cash and cash equivalents (Note 6) | $ 614,404 | 15 | $ 1,335,090 | 42 |
| Financial assets at fair value through profit or loss - current (Notes 7 and 31) | 227,005 | 5 | 223,707 | 7 |
| Financial assets at amortized cost - current (Notes 9 and 33) | 1,302,584 | 32 | 1,841 | - |
| Contract assets - current (Note 24) | 454,471 | 11 | 376,190 | 12 |
| Notes receivable (Notes 10 and 24) | 1,301 | - | 16,715 | 1 |
| Trade receivables from non-related parties (Notes 10 and 24) | 436,086 | 11 | 264,289 | 8 |
| Trade receivables from related parties (Notes 10, 24 and 32) | 773 | - | 177 | - |
| Other receivables (Note 10) | 5,540 | - | 14,498 | - |
| Inventories (Note 11) | 310,278 | 8 | 246,655 | 8 |
| Prepayments (Note 17) | 10,655 | - | 14,842 | - |
| Other current assets (Note 17) | - | - | 9 | - |
| Total current assets | 3,363,097 | 82 | 2,494,013 | 78 |
| NON-CURRENT ASSETS | ||||
| Financial assets at fair value through other comprehensive income - non-current (Notes 8 and 31) | 423 | - | 423 | - |
| Investments accounted for using the equity method (Note 12) | 332,439 | 8 | 290,381 | 9 |
| Property, plant and equipment (Notes 13 and 33) | 343,652 | 8 | 355,666 | 11 |
| Investment properties (Notes 15 and 33) | 54,678 | 1 | 55,194 | 2 |
| Other intangible assets (Note 16) | 33 | - | 151 | - |
| Deferred tax assets (Note 26) | 27,806 | 1 | 11,431 | - |
| Prepayments for equipment (Note 17) | 65 | - | - | - |
| Refundable deposits (Notes 17 and 32) | 400 | - | 2,009 | - |
| Total non-current assets | 759,496 | 18 | 715,255 | 22 |
| TOTAL | $ 4,122,593 | 100 | $ 3,209,268 | 100 |
| LIABILITIES AND EQUITY | ||||
| CURRENT LIABILITIES | ||||
| Short-term borrowings (Notes 18 and 33) | $ 65,233 | 2 | $ 71,656 | 2 |
| Contract liabilities - current (Note 24) | 1,356,369 | 33 | 745,038 | 23 |
| Notes payable (Note 19) | 295,659 | 7 | 318,822 | 10 |
| Trade payables to non-related parties (Note 19) | 198,705 | 5 | 155,998 | 5 |
| Trade payables to related parties (Notes 19 and 32) | 317 | - | 2,590 | - |
| Other payables (Note 20) | 122,409 | 3 | 107,681 | 3 |
| Current tax liabilities (Note 26) | 78,661 | 2 | 51,740 | 2 |
| Provisions - current (Note 21) | 20,251 | - | 14,911 | 1 |
| Other current liabilities (Note 20) | 1,602 | - | 1,658 | - |
| Total current liabilities | 2,139,206 | 52 | 1,470,094 | 46 |
| NON-CURRENT LIABILITIES | ||||
| Deferred tax liabilities (Note 26) | 46,232 | 1 | 41,506 | 1 |
| Net defined benefit liabilities - non-current (Note 22) | 13,851 | - | 13,565 | 1 |
| Other non-current liabilities (Note 20) | 80 | - | 80 | - |
| Total non-current liabilities | 60,163 | 1 | 55,151 | 2 |
| Total liabilities | 2,199,369 | 53 | 1,525,245 | 48 |
| EQUITY (Notes 23 and 28) | ||||
| Ordinary shares | 421,080 | 10 | 382,800 | 12 |
| Capital surplus | 335,473 | 8 | 335,473 | 10 |
| Retained earnings | ||||
| Legal reserve | 159,377 | 4 | 121,604 | 4 |
| Special reserve | 12,496 | - | 20,987 | - |
| Unappropriated earnings | 1,014,134 | 25 | 835,655 | 26 |
| Total retained earnings | 1,186,007 | 29 | 978,246 | 30 |
| Other equity | (19,336) | - | (12,496) | - |
| Total equity | 1,923,224 | 47 | 1,684,023 | 52 |
| TOTAL | $ 4,122,593 | 100 | $ 3,209,268 | 100 |
The accompanying notes are an integral part of the parent company only financial statements.
DESICCANT TECHNOLOGY CORPORATION
PARENT COMPANY ONLY 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 24 and 32) | ||||
| Sales | $ 27,442 | 1 | $ 41,828 | 2 |
| Construction revenue | 2,383,904 | 90 | 1,703,087 | 86 |
| Repair and maintenance service | 246,025 | 9 | 237,226 | 12 |
| Total operating revenue | 2,657,371 | 100 | 1,982,141 | 100 |
| OPERATING COSTS (Notes 11, 25 and 32) | ||||
| Cost of sales | (20,117) | (1) | (28,374) | (2) |
| Construction costs | (1,916,445) | (72) | (1,352,733) | (68) |
| Repair and maintenance costs | (121,325) | (5) | (120,219) | (6) |
| Total operating costs | (2,057,887) | (78) | (1,501,326) | (76) |
| GROSS PROFIT | 599,484 | 22 | 480,815 | 24 |
| OPERATING EXPENSES (Notes 25 and 32) | ||||
| Selling and marketing expenses | (14,039) | - | (10,857) | - |
| General and administrative expenses | (82,530) | (3) | (67,398) | (3) |
| Research and development expenses | (44,809) | (2) | (51,740) | (3) |
| Expected credit gain (loss) (Notes 10 and 24) | 84 | - | (85) | - |
| Total operating expenses | (141,294) | (5) | (130,080) | (6) |
| PROFIT FROM OPERATIONS | 458,190 | 17 | 350,735 | 18 |
| NON-OPERATING INCOME AND EXPENSES (Notes 25 and 32) | ||||
| Interest income | 18,298 | 1 | 17,934 | 1 |
| Other income | 2,611 | - | 28,476 | 1 |
| Other gains | 14,018 | - | 21,238 | 1 |
| Share of profits of subsidiaries, associates and joint ventures | 31,952 | 1 | 53,174 | 3 |
| Total non-operating income | 66,879 | 2 | 120,822 | 6 |
| PROFIT BEFORE INCOME TAX | 525,069 | 19 | 471,557 | 24 |
| INCOME TAX EXPENSE (Note 26) | (106,753) | (4) | (94,244) | (5) |
| NET PROFIT | 418,316 | 15 | 377,313 | 19 |
(Continued)
DESICCANT TECHNOLOGY CORPORATION
PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars, Except Earnings Per Share)
| 2025 | 2024 | |||
|---|---|---|---|---|
| Amount | % | Amount | % | |
| OTHER COMPREHENSIVE INCOME (LOSS) | ||||
| Items that will not be reclassified subsequently to profit or loss: | ||||
| Remeasurement of defined benefit plans (Note 22) | (19) | - | 530 | - |
| Income tax relating to items that will not be reclassified subsequently to profit or loss (Note 26) | 4 | - | (106) | - |
| (15) | - | 424 | - | |
| Items that may be reclassified subsequently to profit or loss: | ||||
| Exchange differences on translation of the financial statements of foreign operations (Note 23) | (8,550) | - | 10,613 | - |
| Income tax related to items that may be reclassified subsequently to profit or loss (Notes 23 and 26) | 1,710 | - | (2,122) | - |
| (6,840) | - | 8,491 | - | |
| Other comprehensive (loss) income, net of income tax | (6,855) | - | 8,915 | - |
| TOTAL COMPREHENSIVE INCOME | $ 411,461 | 15 | $ 386,228 | 19 |
| EARNINGS PER SHARE (NT$; Note 27) | ||||
| Basic | $ 9.93 | $ 8.96 | ||
| Diluted | $ 9.88 | $ 8.91 |
The accompanying notes are an integral part of the parent company only financial statements.
(Concluded)
DESICCANT TECHNOLOGY CORPORATION
PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars)
| Equity Attributable to Owners of the Company | ||||||||
|---|---|---|---|---|---|---|---|---|
| Share Capital | Capital Surplus | Retained Earnings | Other Equity Exchange Differences on Translation of the Financial Statements of | |||||
| Shares (In Thousands) | Amount | Legal Reserve | Special Reserve | Unappropriated Earnings | Foreign Operations | Total Equity | ||
| BALANCE, JANUARY 1, 2024 | 34,800 | $ 348,000 | $ 335,473 | $ 91,066 | $ 18,038 | $ 682,805 | $ (20,987) | $ 1,454,395 |
| Appropriation of 2023 earnings (Note 23) | ||||||||
| Legal reserve | - | - | - | 30,538 | - | (30,538) | - | - |
| Special reserve | - | - | - | - | 2,949 | (2,949) | - | - |
| Cash dividends distributed by the Company | - | - | - | - | - | (156,600) | - | (156,600) |
| Share dividends distributed by the Company | 3,480 | 34,800 | - | - | - | (34,800) | - | - |
| Net profit for the year ended December 31, 2024 | - | - | - | - | - | 377,313 | - | 377,313 |
| Other comprehensive income for the year ended December 31, 2024 (Note 23) | - | - | - | - | - | 424 | 8,491 | 8,915 |
| Total comprehensive income for the year ended December 31, 2024 | - | - | - | - | - | 377,737 | 8,491 | 386,228 |
| BALANCE, DECEMBER 31, 2024 | 38,280 | 382,800 | 335,473 | 121,604 | 20,987 | 835,655 | (12,496) | 1,684,023 |
| Appropriation of 2024 earnings (Note 23) | ||||||||
| Legal reserve | - | - | - | 37,773 | - | (37,773) | - | - |
| Special reserve | - | - | - | - | (8,491) | 8,491 | - | - |
| Cash dividends distributed by the Company | - | - | - | - | - | (172,260) | - | (172,260) |
| Share dividends distributed by the Company | 3,828 | 38,280 | - | - | - | (38,280) | - | - |
| Net profit for the year ended December 31, 2025 | - | - | - | - | - | 418,316 | - | 418,316 |
| Other comprehensive loss for the year ended December 31, 2025 (Note 23) | - | - | - | - | - | (15) | (6,840) | (6,855) |
| Total comprehensive income (loss) for the year ended December 31, 2025 | - | - | - | - | - | 418,301 | (6,840) | 411,461 |
| BALANCE, DECEMBER 31, 2025 | 42,108 | $ 421,080 | $ 335,473 | $ 159,377 | $ 12,496 | $ 1,014,134 | $ (19,336) | $ 1,923,224 |
The accompanying notes are an integral part of the parent company only financial statements.
DESICCANT TECHNOLOGY CORPORATION
PARENT COMPANY ONLY 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 | $ 525,069 | $ 471,557 |
| Adjustments for: | ||
| Depreciation expense | 14,803 | 16,563 |
| Amortization expense | 118 | 2,669 |
| Expected credit loss (reversed) recognized on trade receivables | (84) | 85 |
| Net gain on fair value changes of financial assets at fair value through profit or loss | (3,298) | (3,078) |
| Interest income | (18,298) | (17,934) |
| Dividend income | (48) | (41) |
| Share of profits of subsidiaries, associates and joint ventures | (31,952) | (53,174) |
| Write-down of inventories | 7,347 | 7,678 |
| Changes in operating assets and liabilities | ||
| Contract assets | (78,281) | (110,640) |
| Notes receivable | 15,414 | (9,148) |
| Trade receivables from non-related parties | (171,713) | 62,809 |
| Trade receivables from related parties | (596) | (177) |
| Other receivables | 12,530 | (12,600) |
| Inventories | (70,970) | (89,628) |
| Prepayments | 4,187 | (5,743) |
| Other current assets | 9 | (9) |
| Contract liability | 611,331 | 148,280 |
| Notes payable | (23,163) | 156,551 |
| Trade payables to non-related parties | 42,707 | 34,677 |
| Trade payables to related parties | (2,273) | 2,135 |
| Other payables | 16,250 | 5,450 |
| Provisions | 5,340 | 1,870 |
| Net defined benefit liabilities | 267 | 286 |
| Other current liabilities | (56) | 97 |
| Cash generated from operations | 854,640 | 608,535 |
| Interest received | 14,726 | 17,234 |
| Income tax paid | (89,767) | (75,903) |
| Net cash generated from operating activities | 779,599 | 549,866 |
| CASH FLOWS USED IN INVESTING ACTIVITIES | ||
| Purchase of financial assets at amortized cost | (1,300,743) | (22) |
| Acquisition of associates | (18,656) | (19,380) |
| Payments for property, plant and equipment | (3,795) | (44,082) |
| Increase in refundable deposits | 1,609 | (33) |
| Increase in prepayments for equipment | (65) | - |
| Other dividends received | 48 | 41 |
| Net cash used in investing activities | (1,321,602) | (63,476) |
(Continued)
30
DESICCANT TECHNOLOGY CORPORATION
PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars)
| 2025 | 2024 | |
|---|---|---|
| CASH FLOWS USED IN FINANCING ACTIVITIES | ||
| Increase in short-term borrowings | - | 50,023 |
| Decrease in short-term borrowings | (6,423) | - |
| Dividends paid to owners of the Company | (172,260) | (156,600) |
| Net cash used in financing activities | (178,683) | (106,577) |
| NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (720,686) | 379,813 |
| CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 1,335,090 | 955,277 |
| CASH AND CASH EQUIVALENTS, END OF THE YEAR | $ 614,404 | $ 1,335,090 |
The accompanying notes are an integral part of the parent company only financial statements. (Concluded)
[Attachments 5] List of Director and Independent Director Nominees
| Candidate Type | Director | Director |
|---|---|---|
| Candidate Name | Lun-Ching Chen | Chun-Jung Chen |
| Education | 1. B.S., Dept. of Forestry, National Taiwan University. | |
| 2. MBA, Boston College | Department of Mechanical Engineering, Chien Hsin University of Science and Technology (formerly Ching Yun University) | |
| Professional Experience | 1. Vice President & Director, Desiccant Technology Co., Ltd. | |
| 2. Chairman, DESICCANT TECHNOLOGY CORP. (USA) | ||
| 3. Chairman, SINGAPORE HUAMAO TECHNOLOGY PTE. LTD. | Engineer, Desiccant Technology Corporation | |
| Current Position | 1. Vice President, Desiccant Technology Corporation | |
| 2. DESICCANT TECHNOLOGY CORP. (USA) Chairman | ||
| 3. SINGAPORE HUAMAO TECHNOLOGY PTE. LTD. Chairman | Owner and Operator, Jia Jia Ice Shop | |
| Number of Shares Held (Unit: Shares) | 686,280 | 449 |
| Name of the government or juridical person represented | Not Applicable | Not Applicable |
| Whether has served as an independent director for three consecutive terms | Not Applicable | Not Applicable |