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EDT — AGM Information 2026
Apr 17, 2026
52271_rns_2026-04-17_86efe93b-df7e-4040-ba80-8bbaeb6b53c4.pdf
AGM Information
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edt Stock code: 3038
Emerging Display Technologies Corp. 2026 Annual Shareholders' Meeting
Meeting Agenda (Translation)
Meeting Date: May 20, 2026
Meeting Place: No. 5, Central 1st Road, Cianjhen Dist., Kaohsiung, Taiwan, R.O.C. (Physical meeting)
Table of Contents
I. MEETING PROCEDURE 1
II. MEETING AGENDA
- Reporting Items 2
- Adopting Items 3
- Extemporary Motions 3
III. ATTACHMENT
- 2025 Business Report 4
- Audit Committee's Review Report 10
- Status of Share Buyback Program 11
- Rules of Year 2025 Share Repurchase for Transferring to Employees 12
- Independent Auditor's Report and 2025 Parent-Company-Only Financial Statements 15
- Independent Auditor's Report and 2025 Consolidated Financial Statements 23
- 2025 Profit Distribution Proposal 31
IV. APPENDIX
- Rules of Procedures for Shareholders' Meeting 32
- Articles of Incorporation 37
- Shareholdings of All Directors 44
Emerging Display Technologies Corp. 2026 Annual Shareholders' Meeting Procedure
I. Call Meeting to Order
II. Meeting Agenda
Time: 9:00 a.m., May 20, 2026
Place: No. 5, Central 1st Road, Cianjhen Dist., Kaohsiung, Taiwan, R.O.C. (edt's Headquarters at 1st Floor)
How to convene: Physical meeting
Attendants: All shareholders or their proxy holders
Chairman: Tseng, Jui-Ming (Chairman of the Board of Directors)
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Reporting Items: (1) Report on 2025 business report. (2) Audit Committee's review report. (3) Report on distribution of 2025 employees' compensation and remuneration for directors. (4) Report on 2025 earnings distribution of cash dividend. (5) Report on status of share buyback program and adoption of the Company's "Rules of Year 2025 Share Repurchase for Transferring to Employees."
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Adopting Items: (1) Adoption of the Business Report and Financial Statements of 2025. (2) Adoption of the proposal for distribution of 2025 profits.
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Extemporary Motions
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Meeting Adjourned
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Reporting Items:
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Report on 2025 business report. Explanatory Note: Please refer to Attachment 1 (page 4~9).
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Audit Committee’s review report. Explanatory Note: Please refer to Attachment 2 (page 10).
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Report on distribution of 2025 employees’ compensation and remuneration for directors. Explanatory Note: (1) The Company’s 2025 profit before tax is NT$170,180,545 (NT$184,978,854 if employees’ compensation and remuneration for directors excluded). In accordance with Article 22-1 of “Articles of Incorporation,” the Company distribute 2025 employees’ compensation and remuneration for directors as follows, ♦ Employees’ compensation: 5% allocated and NT$9,248,943 in total. ♦ Remuneration for directors: 3% allocated and NT$5,549,366 in total. ♦ The above will be fully paid in cash. (2) Qualification requirements of employees for the compensation include employees of subsidiary companies who meet certain specific requirements. The distribution amount will depend on employee’s seniority, position, job performance, overall contribution or special merits and employee qualification. (3) There’s no difference between the above distribution amount of employees’ compensation, remuneration for directors and our book value recognized.
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Report on 2025 earnings distribution of cash dividend. Explanatory Note: (1) Pursuant to Article 23-1 of the Company’s “Articles of Incorporation,” the Board of Directors has approved the appropriation of cash dividends of NT$183,403,924 at NT$1.2 per share. (2) The cash dividends will be distributed according to the percent of shareholding on ex-dividend date and fully distributed until last integer and preclude fraction of dollar. The remainder of undistributed net earnings will be recorded as the Company’s other income. (3) The cash dividends were approved by the Board of Directors, and the Chairman was authorized to resolve the ex-dividend date and payment date. In the event that, the proposed dividend distribution ratio is affected due to share buyback program, transfer of treasury stocks to employees, reduction of shares or any other reasons affecting the number of outstanding shares, it is proposed that the Chairman be fully authorized to handle such distribution. (4) The aforementioned cash dividends were paid on April 17, 2026.
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- Report on status of share buyback program and adoption of the Company's "Rules of Year 2025 Share Repurchase for Transferring to Employees."
Explanatory Note: Please refer to Attachment 3 and 4 (page 11 and 12~14).
Adopting Items:
- 2025 Business Report and Financial Statements of the Company. Adoption is respectfully requested. (Proposed by the Board of Directors)
Explanatory Note:
(1) 2025 Parent-Company-Only Financial Statements and Consolidated Financial Statements were audited by independent auditors. (2) 2025 Business Report, Independent Auditor's report and the aforementioned Financial Statements are attached hereto as Attachment 1, 5 and 6 (page 49, 1522 and 23~30). (3) Please proceed to adopt.
Resolution:
- Distribution of 2025 Profits. Adoption is respectfully requested. (Proposed by the Board of Directors)
Explanatory Note:
(1) In Fiscal Year 2025, the Company made a net profit of NT$163,314,621. By adding previous years' retained earnings of NT$658,133,603, proceeds from disposal of equity instruments at fair value through other comprehensive income of NT$28,472,981, changes of remeasurement from defined benefit plans of NT$4,838,000, and deducting special reserve for equity deduction of NT$30,300,388, total distributable earnings for year amounted to NT$824,458,817. After setting aside 10% of net profit as legal reserve of NT$19,662,560, the Board of Directors has determined the profit to be distributed among shareholders shall be NT$183,403,924 in cash dividends (NT$1.2 per share). Please refer to Attachment 7 (page 31) for profit allocation proposal. (2) Please proceed to adopt.
Resolution:
Extemporary Motions
Meeting Adjourned
ATTACHMENT 1
Emerging Display Technologies Corp. 2025 Business Report
Dear Shareholders,
First and foremost, I would like to thank you for taking time from your busy schedule to attend this shareholders' meeting. On behalf of edt, I would like to express my upmost appreciation for your support and encouragement.
The results of our operating performance in 2025 and outlook for the future are as following:
2025 Business Report
- Operating performance
In 2025, the Company faced challenges of declining revenue and profitability. The consolidated net operating revenue for 2025 amounted to NT$3,010,539 thousand, representing a decrease of 16.50% compared to NT$3,605,552 thousand in the previous year. In addition, due to less favorable exchange rate movements in 2025, consolidated net profit declined by 50.47% year-over-year, with earnings per share (EPS) at NT$1.10. Nevertheless, by focusing on high value-added markets, expanding non-China business opportunities, optimizing capacity allocation, and strengthening technological development, the Company expects to achieve revenue growth and maintain profitability in 2026.
In individual products, LCD modules (LCM) accounted for approximately 42% of total sales. Meanwhile, the sales of Capacitive Touch Panels (CTP) and modules declined slightly to 56% from the previous year due to reduced customer demand, which contributed to the decrease in revenue. The Company has continuously improved cost structures and enhanced operational efficiency to maintain strong profitability; as a result, the gross margin remained comparable to the previous year with a slight improvement.
The year 2025 has been one of dramatic changes in the global industrial landscape. Geopolitical realignments and rising trade barriers have led to increased policy uncertainty. At the same time, display and touch technologies have continued to evolve rapidly, while artificial intelligence has become widely adopted. Under the combined influence of these factors, the touch display industry stands at a structural turning point. In the past, the industry's success was built on large-scale manufacturing, cost
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efficiency, and continuous specification upgrades. However, as the external environment and technologies undergo fundamental changes, the industry's value must also be redefined. Future competition will no longer be limited to hardware components, but will instead center on the capabilities of integrated solutions and platforms.
In response to these changes, we firmly believe that the key to success is no longer confined to the specifications and cost of individual components, but lies in the repositioning of the entire value chain. Accordingly, the Company has clearly shifted our development focus from traditional touch display modules to expanding into User-Machine Interface (UMI) solutions. Through higher value-added offerings and deeper integration, we aim to play a more critical role in the global wave of smart devices, and to embrace the opportunities and challenges of the coming decade.
2. Consolidated financial results & profitability analysis
Unit: NT$ thousands
| 2025 | 2024 | |
|---|---|---|
| Operating profit | 157,275 | 232,302 |
| Non-operating income and expenses | 12,559 | 161,101 |
| Profit before tax | 169,834 | 393,403 |
| Net profit | 162,491 | 328,092 |
| Return on assets | 4.37% | 8.29% |
| Return on shareholders’ equity | 6.09% | 12.28% |
| Pre-tax income to paid-in capital | 10.78% | 24.99% |
| Profit ratio | 5.39% | 9.09% |
| Earnings per share (NT$) | 1.10 | 2.21 |
3. Research and development Status
(1) From the establishment of edt, the research and development of new technology has been highly valued. We spare no effort in improving product quality and developing new varieties. Research and development results of 2025 are as following:
| Item | R&D Results | Description of Benefits |
|---|---|---|
| 1 | Development of a projected capacitive touch display module with multi-mode physical control interface driven by a single touch IC | This technology integrates physical control components within the ink area of the cover lens. By utilizing capacitive sensing technology to convert physical displacement into capacitance variation, a single touch IC can support both finger touch functions in the display area and physical control functions in the cover lens ink area. This reduces development costs and enhances product added value. |
| 2 | Development of an UWB radar with smart sensor-fusion control, integrated with a projected capacitive touch display module | By integrating our Smart UMI Display with a UWB radar developed by a partner company, a smart video doorbell intercom display system is created. The UWB radar detects the position of individuals within a 6-meter semicircular range in front of the display and switches operating modes based on distance. By identifying user intent through UWB radar and proactively providing appropriate service interfaces via the Smart UMI Display, this solution enhances product value. |
| 3 | Development of high vibration-resistant touch display products | We have developed a “high vibration-resistant touch display structure” that employs reinforced housings, mounting brackets, or fastening clips to effectively disperse external vibration stress and prevent component damage caused by structural loosening. In addition, shock-absorbing and noise-reducing materials (such as rubber and composite optical films) are used in the backlight module to mitigate environmental impact. With a vibration resistance target of 10G and compliance with MIL-STD-810 standards, these durable displays are suitable for automotive, military, and aerospace applications. |
|---|---|---|
| 4 | Development of touch display products with zero-failure touch functionality | Touch panels typically use glass substrates, which, despite their strength, may still crack due to drops, impacts, or pressure during daily use. In critical fields such as medical, industrial control, and transportation, such failures pose significant risks. We adopt an odd-even signal line architecture with firmware compensation, allowing the touch panel to maintain functionality even if one side’s signal is interrupted due to damage. This achieves an optimal balance between reliability and manufacturing cost. |
| 5 | Development of wide viewing angle glasses-free 3D floating interactive display products | Glasses-free 3D display technology allows users to view stereoscopic images without wearing additional devices, enhancing immersion, information recognition, intuitiveness and efficiency of user-machine interaction compared to traditional 2D displays. Our “wide viewing angle glasses-free 3D floating interactive display” leverages innovative optical structure design, optimized parallax distribution, and light field guidance mechanisms to significantly improve viewing angles and image stability. Users can maintain clear 3D visuals even with wider viewing angles and movement ranges. Additionally, by integrating space gesture technology and millimeter-wave sensing algorithms, the system enables interactive control of floating 3D images, improving immersion and operational efficiency. This technology is applicable in high-end industrial control equipment, medical imaging, education and training simulations, in-vehicle infotainment systems, professional design, and 3D modeling, thereby enhancing product value, creating differentiated competitive advantages and expanding the development opportunities of high-end display modules in the professional application market. |
| 6 | Development of high-efficiency touch display systems supporting OTA updates and modular expansion | Through a modular architecture design, the system can flexibly expand sensing, communication, and functional modules based on application needs, enhancing versatility and scalability. A secure and stable OTA (over-the-air) update mechanism is also introduced to enable remote firmware upgrades and function optimization, reducing maintenance costs and on-site service requirements. This technology shortens development cycles, improves system reliability, and enhances competitiveness in smart industrial control, smart devices, and user-machine interface applications. |
| 7 | Development of manufacturing process for touch displays with embedded Wi-Fi functionality | Conventional external wireless modules are bulky and costly. We utilize patented structural designs to fabricate Wi-Fi circuits directly on the cover lens or touch panel surface using silver paste printing technology, and further develop nano-silver spray coating technology. This enables effective integration of Wi-Fi antennas while reducing procurement costs, thereby improving product competitiveness. |
| 8 | Intellectual Property Rights (include Patents and Trade Secret) | Number of intellectual property right proposals totaled 27, which include 19 patent proposals and 8 trade secret proposals. Number of intellectual property rights granted totaled 10 (proposals accumulated in the previous years). |
(2) Future research and development projects and corresponding budget
In addition to sparing no effort in the research and development of existing areas, we are also quite prepared for new application related software / hardware technologies, such as touch function, somatosensory technology, and embedded system software in response to the vast market of increasingly popular interaction displays. We plan on investing NT$180,000 thousand for below research and development projects in 2026:
- Development of projected capacitive touch display modules supporting AnyPen encrypted stylus input and NFC card sensing functions
- Development of projected capacitive touch display modules supporting wireless capacitive/electromagnetic waterproof rotary knob functions
- Development of display modules with dynamic pixel shifting functionality
- Development of irregular-shaped (circular) touch displays with embedded heater functionality
- Development of smart greenhouse embedded control applications integrating multi-channel imaging and communication
- Development of hermetic assembly technologies for smart IoT devices
Summary of Business Plan for 2026
1. Business objectives
(1) Develop new technologies and explore niche markets. ① Develop integrated sensor systems. ② Optimize touch and display performance.
(2) Innovate the Touch Display Solution business model. ① Expand new channels for Smart Embedded products. ② Strengthen software/firmware service development processes.
(3) Upgrade digital production information and build smart manufacturing processes. ① Intellectualization of manufacturing engineering to lower human factors. ② Make good use of data for process backtracking and early management.
(4) Enhance efficacy of research and development. ① Develop in-vehicle user-machine interface (UMI) application technologies. ② Promote and use the ability of machine learning technology.
2. Expected sales numbers and its basis
(1) Expected sales numbers for 2026: ① LCD modules (LCM) 1,500 thousand units ② CTP and its modules 1,200 thousand units
(2) Basis for expected sales numbers of 2026: ① With the rise of various smart devices, IoT applications, smart homes, and wearable devices, the trend toward software-driven user interfaces (UI) has become increasingly evident, along with growing demand for enhanced industrial design. Future market demand and application diversity of touch panels are expected to continue expanding. ② Although the TFT-LCD display industry is mature, it continues to demonstrate stable and sustainable demand growth in sectors such as automotive, industrial, medical, and outdoor equipment. In particular, TFT technology maintains advantages in high brightness, long lifespan, wide temperature tolerance, and vibration resistance, which are expected to drive sales of LCM products.
① Integrated design for touch display solutions has gradually become mainstream across various application markets. AI and smart devices are driving the adoption of UMI solutions, with increasing demand for customization. Customers tend to prefer integrated module designs to reduce development costs. Trends such as thinner designs, fewer components, simplified assembly, and structural integration (Integrated Design) are becoming dominant. The Company believes that touch-integrated display solutions are expected to achieve double-digit annual growth.
④ Global geopolitical conflicts and tariff trade wars have created uncertainties in both macroeconomic and microeconomic environments, slowing down overall growth momentum.
3. Key sales strategies
(1) Continuously developing application technology of the CTP, such as lamination technology / surface treatment / free form cutting technology of related touch sensors and display panels. Also, continuously developing and optimizing the optical bonding technology of touch module and display module, and touch feedback technology that enhances the user-machine interaction experience.
(2) Actively developing new high value-added products and markets, such as large size products and small and medium size displays with embedded systems, and combined with optical bonding, UV resistance for outdoors, water tolerance, antibacterial touch, contactless gesture control and so on.
(3) Both business model of low-volume high-mix and high-volume low-mix has pros and cons. Under the principle of 50/50, we will adopt the sales strategy with most appropriate percentage of above two business models according to supply chain and new technology appliance.
Future Development Strategies
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Focus on developing innovative user-machine interaction technologies for capacitive touch panels (CTP) and continue to increase the proportion of niche-oriented CTP products. By integrating technologies such as Heater on Glass, NFC on Glass, capacitive knobs/multimodal input, and TDDI (in-cell touch), the touch display module will evolve from a single component into a front-end system platform.
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Strengthen differentiated design capabilities for TFT-LCD modules and expand into diverse application markets, including large-size displays, ultra-thin designs, and high-reliability solutions. Develop differentiated products to meet diverse customer customization needs by enhancing integration across display, touch, and mechanical structures and promoting Integrated Design.
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Continuously enhance design development of pan-industrial control and medical application products to maintain future growth and profitability. Develop embedded system solution, assist the customer in integrated software, firmware and hardware design, and further differentiate and provide high value-added.
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- Actively build IP strategies and invest in research and development to develop futuristic product technology such as 3D gesture, water / conductive liquid tolerance touch and intelligent algorithm, so as to seize prior opportunity into high margin markets.
- Improve the localized and immediate service quality for major clients via the technical service function of overseas channels.
The Impact of the External Competitive Environment, Regulatory Environment and Macroeconomic Conditions
- In an attempt to cope with the global climate changes and the international net-zero tendency, we spare no efforts to replace low-energy-consuming equipment, select low-carbon materials and manufacturing processes, and evaluate energy-saving and carbon-reducing measures such as renewable energy, energy management systems and energy storage. With reference guidelines and relevant regulations of the "Sustainable Development Roadmap for TWSE/TPEx Listed Companies" issued by the Financial Supervision Commission in March 2022, we continue to control the completion status of our greenhouse gas inventory and verification disclosure schedule. By doing this, we expect to learn where reduction can be improved, so as to upgrade energy efficiency, reduce greenhouse gas emissions, and strive towards the commitment and goals of net-zero carbon emission.
- In recent years, global industries have gradually shifted from efficiency-oriented strategies to those emphasizing security and resilience. Companies are adopting strategies such as "China+many," nearshoring, and friendshoring to reduce risks associated with reliance on a single region. As a result, supply chain configurations in the electronic components and display industries are also being adjusted. In response to geopolitical tensions and tariff trade conflicts, the Company has collaborated with customers to effectively reallocate production lines across regions, thereby minimizing related impacts to near zero.
- Facing the continuously changing market environment such as the impact of the global epidemic, trade barriers from major countries, and supervision of trade policies, we still maintain long-term and stable cooperative relationships with our customers. In addition, by providing an optimized product sales mix, improving manufacturing processes, strengthening the supply chain communication and effective management, our revenue and profit growth are just around the corner.
- The Company's export sales accounted for 88% of total operating revenue in 2025. Since exchange rate fluctuations have a significant impact on us, efficient and stable financial operations will be used for risk aversion.
With dedication to becoming the leading brand with the most complete solutions of interactive user-machine interface displays, edt stride to hold up to shareholders' expectations and achieve the basis for sustainability and stable development.
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ATTACHMENT 2
Emerging Display Technologies Corp.
Audit Committee's Review Report
The Board of Directors reports the business report, consolidated financial statements, parent-company-only financial statements and profit allocation proposal of 2025. Of the said documents, the financial statements have been duly audited by Certified Public Accountants Yung Hsiang, Chen and Yen Ta, Su of KPMG Taiwan.
The above business report, consolidated financial statements, parent-company-only financial statements and profit allocation proposal have been reviewed and determined to be correct and accurate by the Audit Committee members of the Company. According to relevant requirements of the Securities and Exchange Act and the Company Law, we hereby submit this report.
Emerging Display Technologies Corp.
Chairman of the Audit Committee: Huang, Hui-Ling
March 4, 2026
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ATTACHMENT 3
Emerging Display Technologies Corp. Status of Share Buyback Program
- Already completed
April 10, 2026
| Time of the buyback | 1st time of 2025 |
|---|---|
| The purpose of the buyback | Transfer to employees |
| The period for the buyback | Dec. 12, 2025~Feb. 10, 2026 |
| The price range of the shares to be bought back | NT$20~30 per share |
| The type and number of the shares already bought back | Common stock / 4,571,000 shares |
| The monetary amount of the shares already bought back | NT$107,554,352 |
| The ratio of the number of shares bought back to the planned number of shares to be bought | 61.77% |
| The number of shares that have been canceled and that have been transferred | - |
| The cumulative number of shares held by the Corporation | 4,571,000 shares |
| The ratio of the cumulative number of shares held by the Corporation to the total number of the Corporation's issued shares | 2.90% |
- Still in progress: None.
ATTACHMENT 4
Emerging Display Technologies Corp.
Rules of Year 2025 Share Repurchase for Transferring to Employees
Adopted on December 11, 2025
Amended on March 4, 2026
Article 1
In order to motivate employees and enhance staff coherence, the Company adopts these "Rules of Year 2025 Share Repurchase for Transferring to Employees" (hereinafter "Rules") in accordance with Article 28-2, paragraph 1, subparagraph 1 of the Securities and Exchange Act and the provisions of the "Regulations Governing Share Repurchase by Exchange-Listed and OTC-Listed Companies" issued by the Financial Supervisory Commission. Any repurchase of shares and transfer to employees by the Company, in addition to complying with applicable laws and regulations, shall be processed in accordance with these Rules.
Article 2
The shares repurchased to be transferred to employees are the Company's common shares. The rights and obligations associated with those shares, unless otherwise regulated by applicable laws and regulations or these Rules, will be the same as other outstanding common shares of the Company.
Article 3
In accordance with these Rules, the repurchased shares may be transferred to employees in a single transfer or multiple transfers within five (5) years from the date of the shares repurchased. The shares not transferred within the said time limit shall be deemed as unissued by the Company, and an amendment registration of share cancellation shall be duly processed.
Article 4
All full-time formal employees who have joined the Company and its subordinate company at home and abroad (the term "subordinate company" is in accordance with Article 369-2, paragraph 1 of the Company Act) on or before the record date of subscription are eligible to subscribe to shares in the amounts set out in Article 5 herein. Employees entitled to subscribe the shares resign during the record date of subscription and the payment period will lose their rights.
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Article 5
The number of shares to which employees may subscribe shall be determined by the relevant department based on criteria such as employees' rank, seniority, individual performance, overall performance evaluation, and special contributions to the Company. Consideration shall also be given to factors including the total number of repurchased shares held by the Company on the record date of subscription and the maximum number of shares subscribable by any single employee. The actual eligibility and number of shares to be subscribed by each employee shall be resolved by the Board of Directors. However, where the transferee employee is a managerial officer, such transfer shall first be approved by the Compensation Committee and then submitted to the Board of Directors for resolution; where the transferee employee is not a managerial officer, such transfer shall first be approved by the Audit Committee and then submitted to the Board of Directors for resolution.
Article 6
The transfer procedures of this share repurchase program:
(1) Subject to the resolution of the Board of Directors, the repurchase of the Company's shares will be publicly announced, reported, and then executed.
(2) Upon resolution of the Board of Directors, announce the record date of subscription, the standard for subscription amount, the payment period, the rights contents, restrictions, etc.
(3) Employees who have not subscribed and accomplished payment at the conclusion of the designated subscription and payment period will be deemed to have waived their subscription rights. Any unsubscribed balance may, within the same subscription process, be offered to other employees as arranged by the Board of Directors, and shall be submitted—based on the subscriber's status—to the Audit Committee or the Compensation Committee for review, and then to the Board of Directors for resolution.
(4) Numbers of shares actually subscribed with payment received shall be calculated, and the registration of share transfers will be carried out accordingly.
Article 7
The transfer price of the shares repurchased will be determined by the average price of the actual repurchase shares. (The calculation will be rounded off to dime in NT Dollar.) Based on the Company's "Articles of Incorporation," transfer of shares to employees at a price lower than average price of the actual repurchase shares shall be adopted by a large majority representing two thirds of the votes at a shareholders' meeting attended by shareholders representing a majority of the total number of issued shares, and shall be included in the proposed resolution and explain the provisions of Article 10-1 of "Regulations Governing Share Repurchase by Exchange-Listed and OTC-Listed Companies." If there is either an increase or a decrease in the number of the issued shares of the Company's common stock prior to the transfer, the transfer price may be adjusted accordingly within a range proportional to the increase or decrease.
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The formula of adjusted transfer price:
$$ \text{Adjusted transfer price} = \text{Average price of the actual repurchase shares} \times \text{Number of the Company's common shares issued as completion of the repurchase program} \div \text{Number of the Company's common shares issued before transfer of shares to employees} $$
Article 8
After the repurchased shares being transferred and registered under employees' names, unless otherwise specified, the rights and obligations of the shares are the same as the ordinary.
Article 9
These Rules will be adopted and take effect subject to a resolution of the Board of Directors, and may be amended by submission to the Board of Directors for a resolution.
Article 10
These Rules shall be reported in the shareholders' meeting. This shall apply to any amendments.
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ATTACHMENT 5
Independent Auditors' Report
To the Board of Directors of Emerging Display Technologies Corp.:
Opinion
We have audited the financial statements of Emerging Display Technologies Corp. ("the Company"), which comprise the balance sheet as of December 31, 2025 and 2024, the statement of comprehensive income, changes in equity and cash flows for the years then ended December 31, 2025 and 2024, and notes to the parent-company-only financial statements, including a summary of material accounting policies.
In our opinion, the accompanying parent-company-only financial statements present fairly, in all material respects, the financial position of the Company as 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 audit in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the 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 of 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 of the current period. 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 matters we judged shall be presented in the financial report as follows:
1. Valuation of accounts receivable
Please refer to Note 4(f) for accounting policy of accounts receivable valuation and Note 5(a) for accounting assumption and estimation uncertainty of impairment of accounts receivable. Information regarding accounts receivable is shown in Note 6 (d) of the parent-company-only financial statements.
Description of key audit matters:
The Company's customers are the manufacturers of industrial equipment, smart home control devices, healthcare equipment, handheld devices, and information appliance products. The customers' delayed payments were due to the need to clarify the responsibility of problematic products resulted from failure of process or usage of end products, and global economic turmoil. Because of the inherent credit risk of receivables, the financial statements users value the collection results. Since the accounts receivable is significant to the financial statements, they are one of the key areas our audit focused on.
How the matter was addressed in our audit:
In relation to the key audit matter above, our principal audit procedures included understanding the process of account checking and collection between the Company and customers; analyzing the receivables aging report; reviewing the historical receipt and bad debt records; and understanding the forward looking industrial economy status and concentration of credit risk of the customers. In addition, we also evaluated the accuracy of the allowance for losses on accounts receivable and the appropriateness of related disclosures in the parent-company-only financial statements.
2. Valuation of obsolete inventory
Please refer to Note 4(g) for accounting policy of obsolete inventory and Note 5(b) for accounting assumption and estimation uncertainty of obsolete inventory valuation. Information regarding obsolete inventory valuation is shown in Note 6(f) of the parent-company-only financial statements.
Description of key audit matters:
Obsolete inventory is carried at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. The Company is engaged in the manufacture and sale of liquid crystal displays and capacity touch panels. It focuses on the small and medium sized niche markets of non consumable area. The products are used in industrial equipment, smart home control devices, healthcare equipment, handheld devices, and information appliance products. The development strategy of the Company is diversifying and customizing its products which may result in having an impact on its obsolete inventory cost. As a consequence, there is a risk that the net realizable value of obsolete inventory may turn out to be lower than its carrying value. Therefore, the valuation of obsolete inventory is one of the key areas our audit focused on.
How the matter was addressed in our audit:
In relation to the key audit matter above, our principal audit procedures included selecting samples to test the accuracy of inventory aging report; analyzing the changes of inventory aging, and examining the provision of inventory by reviewing the historical accuracy on provision. We assessed the changes of obsolescence inventory in the subsequent events and the basis of net realizable value to evaluate the accuracy of the Company's provisions. In addition, we also assessed the appropriateness of the provisions and disclosures made by the management.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of the parent-company-only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and for such internal control as management determines is necessary to enable the preparation of parent-company-only financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the parent-company-only financial statements, management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance (including the Audit Committee) are responsible for overseeing the Company's financial reporting process.
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Auditors' Responsibilities for the Audit of the 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 professional skepticism throughout the audit. We also:
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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.
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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 Company'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 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.
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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.
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Obtain sufficient appropriate audit evidence regarding the financial information of the investment in other entities accounted for using the equity method 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.
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We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent-company-only financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
The engagement partners on the audit resulting in this independent auditors' report are Yung Hsiang, Chen and Yen Ta, Su.
KPMG
Taipei, Taiwan (Republic of China) March 4, 2026
Notes to Readers
The accompanying parent-company-only financial statements are intended only to present the statement of financial position, financial performance and cash flows in accordance with the 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 accepted and applied in the Republic of China.
The independent auditors' report and the accompanying parent-company-only financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors' report and parent-company-only financial statements, the Chinese version shall prevail.
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(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese) EMERGING DISPLAY TECHNOLOGIES CORP. Balance Sheets December 31, 2025 and 2024 (Expressed in Thousands of New Taiwan Dollars)
| Assets | December 31, 2025 | December 31, 2024 | |||
|---|---|---|---|---|---|
| Amount | % | Amount | % | ||
| Current assets: | |||||
| 1100 | Cash and cash equivalents (note 6(a)) | $ 1,071,723 | 28 | 824,423 | 21 |
| 1110 | Financial assets at fair value through profit or loss, current (note 6(b)) | 93,237 | 2 | 187,927 | 5 |
| 1120 | Financial assets at fair value through other comprehensive income, current (note 6(c)) | 676,636 | 18 | 734,167 | 19 |
| 1170 | Accounts receivable, net (notes 6(d) and (t)) | 193,254 | 5 | 291,746 | 8 |
| 1180 | Accounts receivable – related parties, net (notes 6(d), (t), and 7) | 262,227 | 7 | 354,491 | 9 |
| 1200 | Other receivables (note 6(e)) | 5,548 | - | 6,078 | - |
| 1220 | Income tax assets | 3,908 | - | 3,908 | - |
| 130X | Inventories (notes 6(f)) | 441,580 | 13 | 499,444 | 13 |
| 1470 | Other current assets (notes 6(g), and 8) | 12,936 | - | 11,420 | - |
| Total current assets | 2,761,049 | 73 | 2,913,604 | 75 | |
| Non-current assets: | |||||
| 1517 | Financial assets at fair value through other comprehensive income, non-current (note 6(c)) | 135,421 | 4 | 59,340 | 2 |
| 1550 | Investments accounted for using the equity method (note 6(h),7 and 11) | 419,311 | 11 | 428,298 | 11 |
| 1600 | Property, plant and equipment (notes 6(i), 8 and 9) | 379,783 | 10 | 373,020 | 10 |
| 1755 | Right-of-use assets (note 6(j)) | 41,120 | 1 | 43,504 | 1 |
| 1780 | Intangible assets (note 6(k)) | 6,794 | - | 4,953 | - |
| 1840 | Deferred income tax assets (note 6(q)) | 31,374 | 1 | 30,290 | 1 |
| 1980 | Other non-current assets (note 6(g)) | 10,087 | - | 3,347 | - |
| Total non-current assets | 1,023,890 | 27 | 942,752 | 25 | |
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| December 31, 2025 | December 31, 2024 | |||
|---|---|---|---|---|
| Amount | % | Amount | % | |
| Liabilities and Equity | ||||
| Current liabilities: | ||||
| 2150 | Notes payable | - | - | 20 |
| 2170 | Accounts payable | 350,831 | 9 | 327,645 |
| 2180 | Accounts payable – related parties (note 7) | 15,986 | - | 37,739 |
| 2200 | Other payables (note 6(m)) | 250,169 | 7 | 303,695 |
| 2220 | Other payables – related parties (note 7) | 4,478 | - | 9,040 |
| 2230 | Income tax liabilities | 24,754 | 1 | 8,221 |
| 2280 | Lease liabilities, current (note 6(o)) | 2,043 | - | 1,979 |
| 2300 | Other current liabilities (note 6(t)) | 30,392 | 1 | 42,730 |
| Total current liabilities | 678,653 | 18 | 731,069 | |
| Non-Current liabilities: | ||||
| 2540 | Long-term borrowings (notes 6(n) and 8) | 398,980 | 11 | 299,653 |
| 2570 | Deferred income tax liabilities (note 6(q)) | 6,144 | - | 5,995 |
| 2580 | Lease liabilities, non-current (note 6(o)) | 43,628 | 1 | 45,673 |
| 2640 | Net defined benefit liability, non-current (note 6(p)) | 75,977 | 2 | 98,808 |
| 2645 | Guarantee deposits received | - | - | 34 |
| Total non-current liabilities | 524,729 | 14 | 450,163 | |
| Total liabilities | 1,203,382 | 32 | 1,181,232 | |
| Equity attributable to owners of parent (notes 6(c), (r) and 11): | ||||
| 3100 | Ordinary stock | 1,574,076 | 41 | 1,574,076 |
| 3200 | Capital surplus | 82,045 | 2 | 68,712 |
| 3300 | Retained earnings | 1,205,658 | 32 | 1,245,143 |
| 3400 | Other equity interest | (120,826) | (3) | (90,525) |
| 3500 | Treasury shares | (159,396) | (4) | (122,282) |
| Total equity | 2,581,557 | 68 | 2,675,124 | |
| Total liabilities and equity | $ 3,784,939 | 100 | 3,856,356 |
See accompanying notes to financial statements.
(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)
EMERGING DISPLAY TECHNOLOGIES CORP.
Statements of Comprehensive Income
For the years ended December 31, 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share)
| 2025 | 2024 | ||||
|---|---|---|---|---|---|
| Amount | % | Amount | % | ||
| 4000 | Operating revenue (notes 6(t) and 7) | $ 2,918,247 | 100 | 3,480,332 | 100 |
| 5000 | Operating costs (notes 6(f), (k), (p), (u), 7 and 12) | 2,321,347 | 80 | 2,782,352 | 80 |
| Gross profit | 596,900 | 20 | 697,980 | 20 | |
| 5910 | Less: Unrealized profit (loss) from sales (note 7) | 34,766 | 1 | 39,170 | 1 |
| 5920 | Add: Realized profit (loss) from sales (note 7) | 39,170 | 1 | 39,397 | 1 |
| Gross profit | 601,304 | 20 | 698,207 | 20 | |
| Operating expenses (notes 6(d), (k), (p), (u), 7 and 12): | |||||
| 6100 | Selling expenses | 167,562 | 6 | 184,448 | 5 |
| 6200 | Administrative expenses | 110,271 | 4 | 124,872 | 4 |
| 6300 | Research and development expenses | 163,053 | 6 | 174,535 | 5 |
| 6450 | Expected credit impairment (gain) loss | (4,719) | - | 4,357 | - |
| Net operating income | 436,167 | 16 | 488,212 | 14 | |
| 6500 | Net other income (expenses) (note 6(v)) | 370 | - | 504 | - |
| Net operating income | 165,507 | 4 | 210,499 | 6 | |
| Non-operating income and expenses (notes 6(b), (c), (o), (w) and 7): | |||||
| 7100 | Interest income | 31,899 | 1 | 37,999 | 1 |
| 7010 | Other income | 48,433 | 2 | 25,850 | 1 |
| 7020 | Other gains and losses | (55,342) | (2) | 104,374 | 3 |
| 7050 | Finance costs | (10,491) | - | (9,613) | - |
| 7070 | Share of profit (loss) of subsidiaries for using the equity method | (9,825) | - | 20,415 | 1 |
| Total non-operating income and expenses | 4,674 | 1 | 179,025 | 6 | |
| 7900 | Profit from continuing operations before tax | 170,181 | 5 | 389,524 | 12 |
| 7950 | Less: Income tax expenses (note 6(q)) | 6,866 | - | 61,627 | 2 |
| Profit | 163,315 | 5 | 327,897 | 10 | |
| 8300 | Other comprehensive income: | ||||
| 8310 | Components of other comprehensive income that will not be reclassified to profit or loss | ||||
| 8311 | Gains (losses) on remeasurements of defined benefit plans (note 6(p)) | 4,838 | - | (8,460) | - |
| 8316 | Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income (note 6(r)) | 281 | - | (4,273) | - |
| 8330 | Share of other comprehensive income of subsidiaries, associates accounted for using the equity method, components of other comprehensive income that will not be reclassified to profit or loss (note 6(r)) | (4,804) | - | (5,963) | - |
| 8349 | Income tax related to components of other comprehensive income that will not be reclassified to profit or loss (note 6(q)) | 4,539 | - | - | - |
| (4,224) | - | (18,696) | - | ||
| 8360 | Components of other comprehensive income (loss) that will be reclassified to profit or loss | ||||
| 8361 | Exchange differences on translation of foreign financial statements (note 6(r)) | 1,908 | - | 11,147 | - |
| 8367 | Unrealized gains (losses) from investments in debt instruments measured at fair value through other comprehensive income (note 6(r)) | 6,743 | - | (672) | - |
| 8380 | Share of other comprehensive income of subsidiaries, associates accounted for using the equity method, components of other comprehensive income that will be reclassified to profit or loss (note 6(r)) | (68) | - | 519 | - |
| 8399 | Income tax related to components of other comprehensive income that will be reclassified to profit or loss (note 6(q)) | 1,349 | - | (135) | - |
| 7,234 | - | 11,129 | - | ||
| 8300 | Other comprehensive income | 3,010 | - | (7,567) | - |
| 8500 | Comprehensive income | $ 166,325 | 5 | 320,330 | 10 |
| Earnings per share (New Taiwan Dollars) (note 6(s)): | |||||
| 9750 | Basic net income per share (New Taiwan Dollars) | $ | 1.10 | 2.21 | |
| 9850 | Diluted net income per share (New Taiwan Dollars) | $ | 1.10 | 2.19 |
See accompanying notes to financial statements.
(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)
EMERGING DISPLAY TECHNOLOGIES CORP.
Statements of Changes in Equity
For the years ended December 31, 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars)
| Ordinary shares | Capital surplus | Retained earnings | Total other equity interest | Treasury shares | Total equity | ||||
|---|---|---|---|---|---|---|---|---|---|
| Legal reserve | Special reserve | Unappropriated retained earnings | Exchange differences on translation of foreign financial statements | Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income | |||||
| Balance at January 1, 2024 | $ 1,574,076 | 50,291 | 175,266 | 120,343 | 881,759 | (3,047) | (88,181) | (122,282) | 2,588,225 |
| Profit | - | - | - | - | 327,897 | - | - | - | 327,897 |
| Other comprehensive income | - | - | - | - | (8,460) | 11,666 | (10,773) | - | (7,567) |
| Total comprehensive income | - | - | - | - | 319,437 | 11,666 | (10,773) | - | 320,330 |
| Appropriation and distribution of retained earnings: | |||||||||
| Legal reserve | - | - | 53,144 | - | (53,144) | - | - | - | - |
| Cash dividends on ordinary shares | - | - | - | - | (251,852) | - | - | - | (251,852) |
| Reversal of special reserve | - | - | - | (29,115) | 29,115 | - | - | - | - |
| Exercise of disgorgement | - | 4,043 | - | - | - | - | - | - | 4,043 |
| Cash dividends to subsidiaries | - | 14,071 | - | - | - | - | - | - | 14,071 |
| Disposal of investments in equity instruments designated at fair value through other comprehensive income | - | - | - | - | 190 | - | (190) | - | - |
| Return of employee stock ownership trust | - | 307 | - | - | - | - | - | - | 307 |
| Balance on December 31, 2024 | 1,574,076 | 68,712 | 228,410 | 91,228 | 925,505 | 8,619 | (99,144) | (122,282) | 2,675,124 |
| Profit | - | - | - | - | 163,315 | - | - | - | 163,315 |
| Other comprehensive income | - | - | - | - | 4,838 | 1,840 | (3,668) | - | 3,010 |
| Total comprehensive income | - | - | - | - | 168,153 | 1,840 | (3,668) | - | 166,325 |
| Appropriation and distribution of retained earnings: | |||||||||
| Legal reserve | - | - | 31,963 | - | (31,963) | - | - | - | - |
| Cash dividends on ordinary shares | - | - | - | - | (236,111) | - | - | - | (236,111) |
| Reversal of special reserve | - | - | - | (703) | 703 | - | - | - | - |
| Purchase of treasury share | - | - | - | - | - | - | - | (37,114) | (37,114) |
| Cash dividends to subsidiaries | - | 13,192 | - | - | - | - | - | - | 13,192 |
| Disposal of investments in equity instruments designated at fair value through other comprehensive income | - | - | - | - | 28,473 | - | (28,473) | - | - |
| Return of employee stock ownership trust | - | 141 | - | - | - | - | - | - | 141 |
| Balance on December 31, 2025 | $ 1,574,076 | 82,045 | 260,373 | 90,525 | 854,760 | 10,459 | (131,285) | (159,396) | 2,581,557 |
See accompanying notes to financial statements.
(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese) EMERGING DISPLAY TECHNOLOGIES CORP. Statements of Cash Flows For the years ended December 31, 2025 and 2024 (Expressed in Thousands of New Taiwan Dollars)
| 2025 | 2024 | |
|---|---|---|
| Cash flows from (used in) operating activities: | ||
| Profit before tax | $ 170,181 | 389,524 |
| Adjustments: | ||
| Adjustments to reconcile profit (loss): | ||
| Depreciation expense | 63,116 | 59,244 |
| Amortization expense | 831 | 463 |
| Expected credit impairment (gain) loss | (4,719) | 4,357 |
| Net (gain) loss on financial assets or liabilities at fair value | 3,828 | (9,701) |
| Interest expense | 10,491 | 9,613 |
| Interest income | (31,899) | (37,999) |
| Dividend income | (35,285) | (25,420) |
| Share of profit of subsidiaries for using the equity method | 9,825 | (20,415) |
| Gain on disposal of property, plant and equipment | (276) | (2,128) |
| Gain on disposal of investments | (1,562) | (348) |
| Unrealized profit from sales | 34,767 | 39,170 |
| Realized profit from sales | (39,170) | (39,397) |
| Unrealized foreign exchange loss (gain) | 22,179 | (22,940) |
| Total adjustments to reconcile profit | 32,126 | (45,501) |
| Changes in operating assets and liabilities: | ||
| Changes in operating assets: | ||
| Decrease in accounts receivable | 104,470 | 114,295 |
| Decrease in accounts receivable - related parties | 95,330 | 1,252 |
| Decrease in other receivables | 140 | 42 |
| Decrease in inventories | 57,864 | 160,466 |
| (Increase) decrease in other current assets | (1,341) | 4,391 |
| Total changes in operating assets | 256,463 | 280,446 |
| Changes in operating liabilities: | ||
| Decrease in notes payable | (20) | (10) |
| Increase (decrease) in accounts payable | 16,722 | (33,991) |
| Decrease in accounts payable - related parties | (22,478) | (7,678) |
| Decrease in other payables | (61,597) | (22,603) |
| Decrease in other payables - related parties | (4,527) | (3,495) |
| Decrease in other current liabilities | (12,338) | (22,376) |
| Decrease in net defined benefit liability | (17,993) | (2,717) |
| Decrease in other non-current liabilities | - | (104) |
| Total changes in operating liabilities | (102,231) | (92,974) |
| Total changes in operating assets and liabilities | 154,232 | 187,472 |
| Total adjustments | 186,358 | 141,971 |
| Cash inflow generated from operations | 356,539 | 531,495 |
| Interest received | 32,289 | 35,382 |
| Dividends received | 35,285 | 25,420 |
| Interest paid | (11,245) | (9,381) |
| Income taxes refunded (paid) | 2,844 | (143,856) |
| Net cash flows from operating activities | 415,712 | 439,060 |
| Cash flows from (used in) investing activities: | ||
| Acquisition of financial assets at fair value through other comprehensive income | (289,133) | (434,689) |
| Proceeds from disposal of financial assets at fair value through other comprehensive income | 269,445 | 44,588 |
| Acquisition of financial assets at fair value through profit or loss | (24,506) | (109,255) |
| Proceeds from disposal of financial assets at fair value through profit or loss | 109,987 | 46,091 |
| Acquisition of property, plant and equipment | (67,167) | (89,383) |
| Proceeds from disposal of property, plant and equipment | 1,004 | 2,195 |
| Acquisition of intangible assets | (2,672) | (436) |
| Increase in other assets | (6,957) | 982 |
| Dividends received | 13,794 | 21,227 |
| Net cash flows from (used in) investing activities | 3,795 | (518,680) |
| Cash flows from (used in) financing activities: | ||
| Increase in long-term borrowings | 400,000 | - |
| Repayments of long-term borrowings | (300,000) | (100,000) |
| Decrease in guarantee deposits received | (34) | - |
| Exercise of disgorgement | - | 4,043 |
| Cash dividends paid | (236,111) | (251,852) |
| Payments to acquire treasury shares | (30,345) | - |
| Return of employee stock ownership trust | 141 | 307 |
| Repayments of lease liabilities | (1,977) | (1,959) |
| Net cash flows used in financing activities | (168,326) | (349,461) |
| Effect of exchange rate changes on cash and cash equivalents | (3,881) | 5,645 |
| Net (decrease) increase in cash and cash equivalents | 247,300 | (423,436) |
| Cash and cash equivalents at beginning of period | 824,423 | 1,247,859 |
| Cash and cash equivalents at end of period | $ 1,071,723 | 824,423 |
See accompanying notes to financial statements.
ATTACHMENT 6
Independent Auditors' Report
To the Board of Directors of Emerging Display Technologies Corp.:
Opinion
We have audited the accompanying consolidated financial statements of Emerging Display Technologies Corp. and subsidiaries (the Group), which comprise the consolidated balance sheets as of December 31, 2025 and 2024, the consolidated statements of comprehensive income, changes in equity and cash flows for the years ended December 31, 2025 and 2024, and notes to the consolidated financial statements, including a summary of significant accounting policies.
In our opinion, the Group's 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 cash flows for the years ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), Interpretations developed by the international Financial Reporting Interpretations Committee (IFRIC) or the former Standing Interpretations Committee (SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.
Basis for Opinion
We conducted our audit in accordance with the Regulations Governing Auditing and Certification of Financial Statements by Certified Public Accountants, and the auditing standards. 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 Certified Public Accountants Code of Professional Ethics in Republic of China ("the Code"), and we have fulfilled our other ethical responsibilities in accordance with the Code. 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 consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on these matters. The key audit matters we judged shall be presented in the consolidated financial report as follows:
1. Valuation of accounts receivable
Please refer to Note 4(g) for accounting policy of accounts receivable valuation and Note 5(a) for accounting assumption and estimation uncertainty of impairment of accounts receivable. Information regarding accounts receivable is shown in Note 6 (d) of the consolidated financial statements.
Description of key audit matters:
The Group's customers are manufacturers of industrial equipment, smart home devices, handheld devices, and information appliance products. The customers' delayed payments were due to the need to clarify the responsibility of problematic products resulted from failure of process or usage of end products, and global economic turmoil. Because of the inherent credit risk of receivables, the financial statements users value the collection results. Since the accounts receivable is significant to the financial statements, they are one of the key areas our audit focuses on.
How the matter was addressed in our audit:
In relation to the key audit matter above, our principal audit procedures included understanding the process of account checking and collection with customers; analyzing the receivable aging report; reviewing the historical receipt and bad debt records; and understanding the forward-looking industrial economic status and concentration of credit risk of the customers. In addition, we also evaluated the appropriateness of related disclosures in the consolidated financial statements.
2. Valuation of obsolete inventory
Please refer to Note 4(h) for accounting policy of obsolete inventory and Note 5(b) for accounting assumption and estimation uncertainty of obsolete inventory valuation. Information regarding obsolete inventory valuation is shown in Note 6(f) of the consolidated financial statements.
Description of key audit matters:
Obsolete inventory is carried at the lower cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses. The Group is engaged in the manufacture and sale of liquid crystal displays and capacity touch panels. It focuses on the small and medium sized niche markets of non-consumable area. The products are used in industrial equipment, smart home devices, handheld devices, and information appliance products. The development strategy of the Group is diversifying and customizing its products, which may result in having an impact on its obsolete inventory cost. Consequently, there is a risk that the net realizable value of obsolete inventory may turn out to be lower than its carrying value. Therefore, the valuation of obsolete inventory is one of the key areas our audit focused on.
How the matter was addressed in our audit:
In relation to the key audit matter above, our principal audit procedures included selecting samples to test the accuracy of inventory aging report, analyzing the changes of inventory aging, and examining the provision of inventory by reviewing the historical accuracy on provision. We assessed the changes of obsolescence inventory in the subsequent events and the basis of net realizable value to evaluate the accuracy of the Group's provisions. In addition, we also assessed the appropriateness of the provisions and disclosures made by the management.
Other Matters
We have also audited the parent-company-only financial statements of Emerging Display Technologies Corp. as of and for the year 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 Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRS, IAS, IFRIC, and 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 financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the 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 the management either intends to liquidate the Group or to cease its operations, there is no realistic alternative but to do so.
Those charged with governance, including supervisors are responsible for overseeing the Group's financial reporting process.
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Auditors' Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatements, 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 auditing standards 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 based on these consolidated financial statements.
As part of an audit in accordance with the auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We are 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, we have to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Group to cease to continue as a going concern.
-
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
-
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on these consolidated financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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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 of the current period and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
The engagement partners on the audit resulting in this independent auditors' report are Yung Hsiang, Chen and Yen Ta, Su.
KPMG
Taipei, Taiwan (Republic of China)
March 4, 2026
Notes to Readers
The accompanying consolidated financial statements are intended only to present the statement of financial position, financial performance and cash flows in accordance with the 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 accepted and applied in the Republic of China.
The independent auditors' review report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors' review report and consolidated financial statements, the Chinese version shall prevail.
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(English Translation of Financial Statements and Report Originally Issued in Chinese)
EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES
Consolidated Balance Sheets
December 31, 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars)
| Assets | December 31, 2025 December 31, 2024 | Liabilities and Equity | December 31, 2025 December 31, 2024 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Amount | % | Amount | % | Amount | % | Amount | % | |||
| Current assets: | ||||||||||
| 1100 | Cash and cash equivalents (Note 6(a)) | $ 1,193,766 | 31 | 925,775 | 23 | Current liabilities: | ||||
| 1110 | Financial assets at fair value through profit or loss, current (Note 6(b)) | 93,237 | 2 | 187,927 | 5 | 2150 Notes payable | - | - | 20 | - |
| 1120 | Financial assets at fair value through other comprehensive income, current (Note 6(c)) | 695,820 | 18 | 757,399 | 19 | 2170 Accounts payable | 398,670 | 10 | 397,322 | 10 |
| 1170 | Accounts receivables, net (Note 6(d) and (v)) | 325,564 | 8 | 529,908 | 13 | 2200 Other payables (Note 6(n)) | 270,752 | 7 | 329,197 | 9 |
| 1200 | Other receivables (Notes 6(e)) | 5,571 | - | 6,099 | - | 2230 Income tax liabilities | 25,631 | 1 | 9,802 | - |
| 1220 | Income tax assets | 5,122 | - | 4,898 | - | 2280 Lease liabilities, current (Notes 6(p)) | 11,870 | - | 11,593 | - |
| 130X | Inventories (Note 6(f)) | 604,532 | 16 | 658,877 | 17 | 2300 Other current liabilities (Notes 6(v)) | 33,121 | 1 | 43,782 | 1 |
| 1470 | Other current assets (Notes 6(g) and 8) | 37,593 | 1 | 43,987 | 1 | Total current liabilities | 740,044 | 19 | 791,716 | 20 |
| Total current assets | 2,961,205 | 76 | 3,114,870 | 78 | Non-current liabilities: | |||||
| Non-current assets: | ||||||||||
| 1517 | Financial assets at fair value through other comprehensive income, non-current (Note 6(c)) | 199,081 | 5 | 124,440 | 3 | 2540 Long-term borrowings (Notes 6(o) and 8) | 398,980 | 10 | 299,653 | 8 |
| 1600 | Property, plant and equipment (Notes 6(i),8 and 9) | 541,230 | 14 | 560,509 | 14 | 2570 Deferred income tax liabilities (Note 6(s)) | 6,144 | - | 5,995 | - |
| 1755 | Right-of-use assets (Notes 6(j)) | 52,751 | 2 | 63,703 | 2 | 2580 Lease liabilities, non-current (Notes 6(p)) | 46,054 | 1 | 56,777 | 1 |
| 1760 | Investment property (Notes 6(k) and (q)) | 76,461 | 2 | 61,083 | 2 | 2640 Net defined benefit liabilities, non-current (Note 6(r)) | 75,977 | 2 | 98,808 | 3 |
| 1780 | Intangible assets (Note 6(l)) | 6,794 | - | 4,953 | - | 2645 Guarantee deposits received | 930 | - | 963 | - |
| 1840 | Deferred income tax assets (Note 6(s)) | 35,656 | 1 | 30,683 | 1 | Total non-current liabilities | 528,085 | 13 | 462,196 | 12 |
| 1980 | Other non-current assets (Notes 6(g)) | 14,801 | - | 8,613 | - | Total liabilities | 1,268,129 | 32 | 1,253,912 | 32 |
| Total non-current assets | 926,774 | 24 | 853,984 | 22 | Equity attributable to shareholders of the parent (Note 6 (c), (t) and (k)): | |||||
| 3100 Ordinary stock | 1,574,076 | 40 | 1,574,076 | 39 | ||||||
| 3200 Capital surplus | 82,045 | 2 | 68,712 | 2 | ||||||
| 3300 Retained earnings | 1,205,658 | 31 | 1,245,143 | 31 | ||||||
| 3400 Other equity interest | (120,826) | (2) | (90,525) | (2) | ||||||
| 3500 Treasury shares | (159,396) | (4) | (122,282) | (3) | ||||||
| Total equity attributable to shareholders of the parent | 2,581,557 | 67 | 2,675,124 | 67 | ||||||
| 36XX Non-controlling interests (Note 6(h)) | 38,293 | 1 | 39,818 | 1 | ||||||
| Total equity | 2,619,850 | 68 | 2,714,942 | 68 | ||||||
| TOTAL | $ 3,887,979 | 100 | 3,968,854 | 100 | TOTAL | $ 3,887,979 | 100 | 3,968,854 | 100 |
See accompanying notes to financial statements.
(English Translation of Financial Statements and Report Originally Issued in Chinese) EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES Consolidated Statements of Comprehensive Income For the years ended December 31, 2025 and 2024 (Expressed in Thousands of New Taiwan Dollars, Except Earnings Per Share)
| 2025 | 2024 | ||||
|---|---|---|---|---|---|
| Amount | % | Amount | % | ||
| 4000 | Operating revenue (Note 6(v)) | $ 3,010,539 | 100 | 3,605,552 | 100 |
| 5000 | Operating cost (Note 6(f, I, r & w) and 12) | 2,317,373 | 77 | 2,778,598 | 77 |
| Gross profit | 693,166 | 23 | 826,954 | 23 | |
| Operating expenses (Note 6(d, I, r & w) 7 and 12): | |||||
| 6100 | Selling expenses | 237,424 | 8 | 259,223 | 7 |
| 6200 | Administrative expenses | 145,834 | 5 | 161,372 | 5 |
| 6300 | Research and development expenses | 163,052 | 5 | 174,535 | 5 |
| 6450 | Expected credit impairment loss(gain) | (4,815) | - | 4,372 | - |
| Total operating expenses | 541,495 | 18 | 599,502 | 17 | |
| 6500 | Net other income (expenses) (Note 6(x)) | 5,604 | - | 4,850 | - |
| Net operating income | 157,275 | 5 | 232,302 | 6 | |
| Non-operating income and expenses (Note 6(c, p & y)): | |||||
| 7100 | Interest income | 32,729 | 1 | 39,045 | 1 |
| 7010 | Other income | 49,149 | 1 | 27,396 | 1 |
| 7020 | Other gains and losses | (57,771) | (2) | 105,596 | 3 |
| 7050 | Finance cost | (11,548) | - | (10,936) | - |
| Total non-operating income and expenses | 12,559 | - | 161,101 | 5 | |
| 7900 | Profit from continuing operations before tax | 169,834 | 5 | 393,403 | 11 |
| 7950 | Less: Income tax expense (Note 6(s)) | 7,343 | - | 65,311 | 2 |
| Profit | 162,491 | 5 | 328,092 | 9 | |
| 8300 | Other comprehensive income: | ||||
| 8310 | Components of other comprehensive income that will not be reclassified to profit or loss | ||||
| 8311 | Losses on remeasurements of defined benefit plans (Note 6(r)) | 4,838 | - | (8,460) | - |
| 8316 | Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income (Note 6(t)) | (5,208) | - | (10,550) | - |
| 8349 | Income tax related to components of other comprehensive income that will not be reclassified to profit or loss (Note 6(s)) | 4,539 | - | - | - |
| (4,909) | - | (19,010) | - | ||
| 8360 | Components of other comprehensive income (loss) that will be reclassified to profit or loss | ||||
| 8361 | Exchange differences on translation of foreign financial statements (Note 6(t)) | 1,824 | - | 11,792 | - |
| 8367 | Unrealized gains (losses) from investments in debt instruments measured at fair value through other comprehensive income (Note 6(t)) | 6,743 | - | (672) | - |
| 8399 | Income tax related to components of other comprehensive income that will be reclassified to profit or loss (Note 6(s)) | 1,349 | - | (135) | - |
| 7,218 | - | 11,255 | - | ||
| 8300 | Other comprehensive income | 2,309 | - | (7,755) | - |
| 8500 | Comprehensive income | $ 164,800 | 5 | 320,337 | 9 |
| Profit (loss) attributable to | |||||
| 8610 | Shareholders of the parent | $ 163,315 | 5 | 327,897 | 9 |
| 8620 | Non-controlling interests | (824) | - | 195 | - |
| Net profit (loss) | $ 162,491 | 5 | 328,092 | 9 | |
| Comprehensive income attributable to | |||||
| 8710 | Shareholders of the parent | $ 166,325 | 5 | 320,330 | 9 |
| 8720 | Non-controlling interests | (1,525) | - | 7 | - |
| Total comprehensive income | $ 164,800 | 5 | 320,337 | 9 | |
| Earnings per share (New Taiwan Dollars) (Note 6(u)) | |||||
| 9750 | Basic net income per share (New Taiwan Dollars) | $ | 1.10 | 2.21 | |
| 9850 | Diluted net income per share (New Taiwan Dollars) | $ | 1.10 | 2.19 |
See accompanying notes to financial statements.
(English Translation of Financial Statements and Report Originally Issued in Chinese)
EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES
Consolidated Statements of Changes in Equity
For the years ended December 31, 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars)
| Equity attributable to shareholders of parent | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Retained earnings | Exchange | Total equity | |||||||||
| Ordinary shares | Capital surplus | Legal reserve | Special reserve | Unappropriated retained earnings | differences on translation of foreign financial statements | Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income | Treasury shares | attributable to shareholders of parent | Non-controlling interests | Total Equity | |
| Balance on January 1, 2024 | $ 1,574,076 | 50,291 | 175,266 | 120,343 | 881,759 | (3,047) | (88,181) | (122,282) | 2,588,225 | 39,811 | 2,628,036 |
| Profit | - | - | - | - | 327,897 | - | - | - | 327,897 | 195 | 328,092 |
| Other comprehensive income | - | - | - | - | (8,460) | 11,666 | (10,773) | - | (7,567) | (188) | (7,755) |
| Total comprehensive income | - | - | - | - | 319,437 | 11,666 | (10,773) | - | 320,330 | 7 | 320,337 |
| Appropriation and distribution of retained earnings: | |||||||||||
| Legal reserve | - | - | 53,144 | - | (53,144) | - | - | - | - | - | - |
| Cash dividends of ordinary shares | - | - | - | - | (251,852) | - | - | - | (251,852) | - | (251,852) |
| Reversal of special reserve | - | - | - | (29,115) | 29,115 | - | - | - | - | - | - |
| Exercise of disgorgement | - | 4,043 | - | - | - | - | - | - | 4,043 | - | 4,043 |
| Cash dividends to subsidiaries | - | 14,071 | - | - | - | - | - | - | 14,071 | - | 14,071 |
| Disposal of investments in equity instruments designated at fair value through other comprehensive income | - | - | - | - | 190 | - | (190) | - | - | - | - |
| Return of employee stock ownership trust | - | 307 | - | - | - | - | - | - | 307 | - | 307 |
| Balance on December 31, 2024 | 1,574,076 | 68,712 | 228,410 | 91,228 | 925,505 | 8,619 | (99,144) | (122,282) | 2,675,124 | 39,818 | 2,714,942 |
| Profit | - | - | - | - | 163,315 | - | - | - | 163,315 | (824) | 162,491 |
| Other comprehensive income | - | - | - | - | 4,838 | 1,840 | (3,668) | - | 3,010 | (701) | 2,309 |
| Total comprehensive income | - | - | - | - | 168,153 | 1,840 | (3,668) | - | 166,325 | (1,525) | 164,800 |
| Appropriation and distribution of retained earnings: | |||||||||||
| Legal reserve | - | - | 31,963 | - | (31,963) | - | - | - | - | - | - |
| Cash dividends of ordinary shares | - | - | - | - | (236,111) | - | - | - | (236,111) | - | (236,111) |
| Reversal of special reserve | - | - | - | (703) | 703 | - | - | - | - | - | - |
| Retirement of treasury stock | - | - | - | - | - | - | - | (37,114) | (37,114) | - | (37,114) |
| Cash dividends to subsidiaries | - | 13,192 | - | - | - | - | - | - | 13,192 | - | 13,192 |
| Disposal of investments in equity instruments designated at fair value through other comprehensive income | - | - | - | - | 28,473 | - | (28,473) | - | - | - | - |
| Return of employee stock ownership trust | - | 141 | - | - | - | - | - | - | 141 | - | 141 |
| Balance on December 31, 2025 | $ 1,574,076 | 82,045 | 260,373 | 90,525 | 854,760 | 10,459 | (131,285) | (159,396) | 2,581,557 | 38,293 | 2,619,850 |
See accompanying notes to financial statements.
(English Translation of Financial Statements and Report Originally Issued in Chinese) EMERGING DISPLAY TECHNOLOGIES CORP. AND SUBSIDIARIES Consolidated Statements of Cash Flows For the years ended December 31, 2025 and 2024 (Expressed in Thousands of New Taiwan Dollars)
| 2025 | 2024 | |
|---|---|---|
| Cash flows from (used in) operating activities: | ||
| Profit (Loss) before tax | $ 169,834 | 393,403 |
| Adjustments: | ||
| Adjustments to reconcile profit (loss): | ||
| Depreciation expense | 84,653 | 81,889 |
| Amortization expense | 857 | 490 |
| Expected credit impairment loss (gain) | (4,815) | 4,372 |
| Net losses (gains) on financial assets or liabilities at fair value | 3,828 | (9,701) |
| Interest expense | 11,548 | 10,936 |
| Interest income | (32,729) | (39,045) |
| Dividend income | (35,989) | (26,916) |
| Gain on disposal of property, plant, equipment | (52) | (2,114) |
| Gain on disposal of investments | (1,562) | (348) |
| Unrealized foreign exchange loss(gain) | 26,829 | (19,541) |
| Total adjustments to reconcile profit | 52,568 | 22 |
| Changes in operating assets and liabilities: | ||
| Changes in operating assets: | ||
| Decrease in accounts receivable | 199,819 | 99,661 |
| Decrease in other receivable | 140 | 42 |
| Decrease in inventories | 48,294 | 181,632 |
| Decrease in other current assets | 6,838 | 14,391 |
| Total net changes in operating assets | 255,091 | 295,726 |
| Changes in operating liabilities: | ||
| Decrease in notes payable | (20) | (10) |
| Decrease in accounts payable | (4,354) | (49,414) |
| Decrease in other payable | (66,957) | (34,399) |
| Decrease in other current liabilities | (10,723) | (23,835) |
| Decrease in net defined benefit liability | (17,993) | (2,717) |
| Decrease in other non-current liabilities | - | (104) |
| Total changes in operating liabilities | (100,047) | (110,479) |
| Total changes in operating assets and liabilities | 155,044 | 185,247 |
| Total adjustments | 207,612 | 185,269 |
| Cash inflow generated from operations | 377,446 | 578,672 |
| Interest received | 33,118 | 36,428 |
| Dividends received | 35,989 | 26,916 |
| Interest paid | (12,303) | (10,703) |
| Income taxes paid | (2,507) | (148,132) |
| Net cash flows from (used in) operating activities | 431,743 | 483,181 |
| Cash flows from (used in) investing activities: | ||
| Acquisition of financial assets at fair value through other comprehensive income | (289,133) | (451,169) |
| Proceeds from disposal of financial assets at fair value through other comprehensive income | 269,445 | 44,588 |
| Acquisition of financial assets at fair value through profit or loss | (24,506) | (109,255) |
| Proceeds from disposal of financial assets at fair value through profit or loss | 109,987 | 46,091 |
| Acquisition of property, plant and equipment | (69,204) | (105,953) |
| Proceeds from disposal of property, plant, equipment | 4,442 | 2,196 |
| Acquisition of financial assets at fair value through other comprehensive income | (2,698) | (463) |
| Increase (Decrease) in Other current assets | (6,740) | 982 |
| Net cash flows from (used in) investing activities | (8,407) | (572,983) |
| Cash flows from (used in) financing activities: | ||
| Increase in long-term borrowings | 400,000 | - |
| Repayments of long-term borrowings | (300,000) | (100,000) |
| Increase (Decrease) in guaranteed deposits received | (34) | 331 |
| Exercise of disgorgement | - | 4,043 |
| Cash dividends paid | (222,919) | (237,781) |
| Payments to acquire treasury stock | (30,345) | - |
| Return of employee stock ownership trust | 141 | 307 |
| Repayments of lease liabilities | (11,666) | (11,946) |
| Net cash flows from (used in) financing activities | (164,823) | (345,046) |
| Effects of changes in foreign exchange rates | 9,478 | (9,901) |
| Net increase (decrease) in cash and cash equivalents | 267,991 | (444,749) |
| Cash and cash equivalents at beginning of period | 925,775 | 1,370,524 |
| Cash and cash equivalents at end of period | $ 1,193,766 | 925,775 |
See accompanying notes to financial statements.
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ATTACHMENT 7
Emerging Display Technologies Corp.
2025 Profit Distribution Proposal
| Unit: NT$ | |
|---|---|
| Beginning retained earnings | $658,133,603 |
| Plus: Net income of year 2025 | 163,314,621 |
| Proceeds from disposal of equity instruments at fair value through other comprehensive income | 28,472,981 |
| Changes of remeasurement of defined benefit plan | 4,838,000 |
| Less: Special reserve for equity deduction | (30,300,388) |
| Retained earnings available for distribution | 824,458,817 |
| Less: 10% of legal reserve | (19,662,560) |
| Distribution item: | |
| Cash dividend for common shareholders (NT$1.2 per share) | (183,403,924) |
| Unappropriated retained earnings | $621,392,333 |
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APPENDIX 1
Emerging Display Technologies Corp. Rules of Procedures for Shareholders' Meeting
Article 1
Shareholders' Meeting of the Corporation (the "Meeting") shall be conducted in accordance with these Rules of Procedures (the "Rules").
Article 2
Shareholders shall attend the Meeting based on attendance certificates and submit the attendance cards for the purpose of signing in. The number of shares represented by shareholders attending the Meeting shall be calculated in accordance with the attendance cards by the shareholders and the shares checked in on the virtual meeting platform, plus the number of shares whose voting rights are exercised by correspondence or electronically. The attendance and voting of the Meeting shall be calculated based on number of shares.
Article 3
The Chairman shall call the Meeting to order when the number of shares represented by shareholders exceeded half of total outstanding shares. If the number of shares represented by the shareholders present at the Meeting has not yet constituted the quorum at the time scheduled for the Meeting, the Chairman may postpone the time for the Meeting. The postponements shall be limited to two times at the most. If after two postponements no quorum can yet be constituted but the shareholder present at the Meeting represent more than one-third of the total outstanding shares, tentative resolutions may be made in accordance with Article 175 of the Company Act. The Chairman may announce the Meeting at any time and submit the tentative resolutions to the Meeting for approval if the number of outstanding shares represented by the shareholders present becomes sufficient to constitute the quorum during the process of the Meeting.
In the event of a virtual Shareholders' Meeting, shareholders wishing to attend the Meeting online shall register with the Corporation two days before the meeting date.
Article 4
The venue for a Meeting shall be the premises of the Corporation, or a place easily accessible to shareholders and suitable for a Meeting. The Meeting may begin no earlier than 9 a.m. and no later than 3 p.m. When the Corporation convenes a virtual-only Shareholders' Meeting, the restrictions on the place of the meeting shall not apply; however, both the chair and secretary shall be in the same location, and the chair shall declare the address of the location when the Meeting is called to order.
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Article 5
The Chairman of the Board of Directors shall be the chairman presiding at the Meeting in the case the Meeting is convened by the Board of Directors. If, for any reason, the Chairman of the Board of Directors cannot preside at the Meeting, the chairman should designated one of Directors to preside at the Meeting. Where the Chairman doesn't designate a proxy, Directors may elect a person among themselves to act on behalf of Chairman. When the Meeting is convened by other persons who have the convening right, the Meeting shall be presided by the convener. If there are over two conveners, they shall elect one as chairman. In the event that the chairman adjourns the Meeting in violation of these Rules, the shareholders may designate, by a majority of votes represented by shareholders attending the Meeting, one person as chairman to continue the Meeting. After the adjournment of the Meeting, the shareholders may not elect a chairman to continue the Meeting at the original address or at another location.
Article 6
The Corporation may appoint designated counsel, CPA, or other related persons to attend the Meeting and answer related questions. Persons handling affairs of the Meeting shall wear identification cards or badges.
Article 7
The process of the Meeting shall be tape recorded and videotaped and these tapes shall be preserved for at least one year.
Where the Meeting is held online, the Corporation shall keep records of shareholder registration, sign-in, check-in, questions raised, votes cast and results of votes counted by the Corporation, and continuously audio and video record, without interruption, the proceedings of the virtual meeting from beginning to end. Aforementioned information and audio and video recording shall be properly kept by the Corporation during the entirety of existence, and copies of the audio and video recording shall be provided to and kept by the party appointed to handle matters of the virtual meeting.
Article 8
The agenda of the Meeting shall be set by the Board of Directors if the Meeting is convened by the Board of Directors. Unless otherwise resolved at the Meeting, the Meeting shall proceed in accordance with the agenda. The above provision applies mutatis mutandis to cases where the Meeting is convened by any person, other than the Board of Directors, entitled to convene such Meeting. Unless otherwise resolved at the Meeting, the chairman cannot announce adjournment of the Meeting before all the discussion items (include special motions) listed in the agenda are resolved. After the adjournment of the Meeting, the shareholders may not elect a chairman to continue the Meeting at the original address or at another location.
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Article 9
When a shareholder present at the Meeting wishes to speak, a Speech Note shall be filled out with summary of the speech, the shareholder’s number and name. The sequence of speeches by shareholders should be decided by the chairman. If any shareholder present at the Meeting submit a Speech Note but does not speak, no speech shall be deemed to have been made by such shareholder. In case the contents of the speech of a shareholder are inconsistent with the contents of the Speech Note, the contents of actual speech shall prevail. Unless otherwise permitted by the chairman and the shareholder in speaking, no shareholder shall interrupt the speeches of the other shareholders, otherwise the chairman shall stop such interruption.
Article 10
Unless otherwise permitted by the chairman, each shareholder shall not, for each discussion item, speak more than twice and each time not exceeding 5 minutes. In case of speech of any shareholder violates the above provision or exceeds the scope of the discussion item, the chairman may stop the speech of such shareholder.
Article 11
A corporate shareholder can only designated one representative to attend the Meeting. If a corporate shareholder designated two or more representatives to attend the Meeting, only one representative can speak for each discussion item.
Article 11-1
Where a virtual Shareholders’ Meeting is convened, shareholders attending the virtual meeting online may raise questions in writing at the virtual meeting platform from the chair declaring the Meeting open until the chair declaring the Meeting adjourned. No more than two questions for the same proposal may be raised. Each question shall contain no more than 200 words. The regulations in Article 9 to 11 do not apply. As long as questions so raised in accordance with the preceding paragraph are not in violation of the regulations or beyond the scope of a proposal, it is advisable the questions be disclosed to the public at the virtual meeting platform.
Article 12
After the speech of a shareholder, the chairman may respond himself/herself or appoint an appropriate person to respond.
Article 13
The chairman may announce to end the discussion of any resolution and go into voting if the chairman deems it appropriate.
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Article 14
Except as otherwise provided in the Company Act, the adoption of a discussion shall require an affirmative vote of a majority of the voting rights represented by the attending shareholders. A shareholder shall be entitled to one vote for each share held, except when the shares are restricted to shares or are deemed non-voting shares under Paragraph 2 of Article 179 of the Company Act. When one person is concurrently appointed as proxy by two or more shareholders, the voting rights represented by that proxy may not exceed 3 percent of the voting rights represented by the total number of issued shares. If that percentage is exceeded, the voting rights in excess of that percentage shall not be included in the calculation.
Article 15
If there is amendment to or substitute for a discussion item, the chairman shall decide the sequence of voting for such discussion item, the amendment or the substitute. If any one of them has been adopted, the others shall be deemed vetoed and no further voting is necessary.
In the event of a virtual Shareholders' Meeting, votes shall be counted at once after the chair announces the voting session ends, and results of votes and elections shall be announced immediately.
When the Corporation convenes a hybrid Shareholders' Meeting, if shareholders who have registered to attend the Meeting online in accordance with the rules decide to attend the physical Shareholders' Meeting in person, they shall revoke their registration two days before the Meeting in the same manner as they registered. If their registration is not revoked within the time limit, they may only attend the Meeting online.
When shareholders exercise voting rights by correspondence or electronic means, unless they have withdrawn the declaration of intent and attended the Meeting online, except for extraordinary motions, they will not exercise voting rights on the original proposals or make any amendments to the original proposals or exercise voting rights on amendments to the original proposal.
Article 16
The persons to check and the persons to record the ballots during a vote by casting ballots shall be appointed by the chairman. The persons checking the ballots shall be a shareholder. The result of voting shall be announced at the Meeting and placed on record.
Article 17
The chairman may conduct the disciplinary officers or the security guard to assist in keeping order of the Meeting place. Such disciplinary officers or security guards shall wear badges marked "Disciplinary Officers".
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Article 18
When a Meeting is in progress, the chairman may announce a break based on time considerations.
Article 19
Any matter not provided in these Rules shall be handled in accordance with the Company Act or Articles of Incorporation of the Corporation.
Article 20
These Rules, and any amendments hereto, shall be implemented after adoption by Shareholders’ Meeting.
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APPENDIX 2
Emerging Display Technologies Corp. Articles of Incorporation
Chapter 1: General Provisions
Article 1 Under the Company Act, the name of the Corporation shall be Emerging Display Technologies Corporation.
Article 2 The scope of business of the Corporation shall be as follows:
- CC01080 - Electronics Components Manufacturing
- CC01110 - Computer and Peripheral Equipment Manufacturing
- F119010 - Wholesale of Electronic Materials
- D101060 - Self-usage Power Generation Equipment Utilizing Renewable Energy
- F399040 - Retail Sale No Storefront
- F601010 - Intellectual Property Rights
- ZZ99999 - In addition to licensed business activities, the Corporation may conduct business that is neither prohibited nor restricted by law.
Article 3 The Corporation shall have its headquarters in Kaohsiung City, and shall be free, with the resolution of the Board of Directors, to set up branch offices at various locations in Taiwan and abroad when necessary.
Article 4 Public announcements of the Corporation shall be made in accordance with regulations in Article 28 of the Company Act.
Chapter 2: Stock Shares
Article 5 The total capital stock of the Corporation shall be in the amount of 3,500,000,000 New Taiwan Dollars, divided into 350,000,000 shares, with the par value at 10 New Taiwan Dollars each share. The Board of Directors shall be authorized to distribute the shares in installments. The Corporation may issue employee stock options. A total of 10,500,000 shares among the total capital stock should be reserved for issuing employee stock options. Transfer of shares to employees by the Corporation at a price lower than average of actual price brought back shall be adopted by a large majority representing two thirds of the votes at the Shareholders' Meeting attended by shareholders representing a majority of the total number of issued shares.
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Article 6
The total amount of the Corporation reinvestment shall not be subjected to the restriction of forty percent or less of the Corporation's paid-up capital as regulated in Article 13 of the Company Act.
Article 7
The share certificates of the Corporation shall all be registered that are affixed with the signatures or personal seals of the director representing the Corporation and legally certified before issuance thereof. For the shares to be issued to the public, the Corporation may be exempted from printing any share certificate for the shares issued, but shall appoint a centralized securities custody enterprise/institution to make recordation of the issue of such shares.
Article 8
Shareholders who wish to assign their shares shall fill out an application, which is signed respectively by assignor and assignee, and apply for assignment with the Corporation. Assignment of shares shall not be set up as a defence against the Corporation, unless the assignee has been recorded in the shareholders' roster.
Article 9
The entries in the shareholders' roster shall not be altered within 60 days prior to the convening date of a regular Shareholders' Meeting, or within 30 days prior to the convening date of a special Shareholders' Meeting, or within 5 days prior to the target date fixed by the Corporation for distribution of dividends, bonus or other benefits.
Article 10
Stock transactions of the Corporation shall follow the "Regulations Governing the Administration of Shareholder Services of Public Companies" imposed by the competent authority.
Chapter 3: Shareholders' Meeting
Article 11
Shareholders' Meetings of the Corporation shall be of the following two kinds: (1) regular meeting of shareholders and (2) special meeting of shareholders. Regular meeting of shareholders shall be held at least once every year and convened within six months after close of each fiscal year by the Board of Directors. Special meeting of shareholders shall be held when necessary. All meetings of shareholders shall be convened in accordance with relevant laws, rules and regulations. Shareholders' Meetings of the Corporation may be held by means of visual communication network or other methods promulgated by Ministry of Economic Affairs.
Article 12
A shareholder may appoint a proxy to attend the Shareholders' Meeting in his/her/its behalf by executing a power of attorney printed by the Corporation stating therein the scope of power authorized to the proxy if he/she/it is unable to attend.
Article 13
Except in the circumstances set forth in Article 179 of the Company Act which there is no right to vote, a shareholder shall have one voting power in respect of each share in his/her/its possession.
Article 14
Resolutions at the Shareholders' Meeting shall, unless otherwise provided for in the Company Act, be adopted by a majority vote of the shareholders present, who represent more than one-half of the total number of voting shares.
Chapter 4: Directors and Audit Committee
Article 15
The Corporation shall have seven to nine directors who shall be elected by the Shareholders' Meeting from among the persons with disposing capacity. The term of office of a director shall be three years and eligible for re-election. The total number of shares held by all directors shall respectively be no less than the percentage regulated by the competent authority.
The election of directors shall adopt a candidates nomination system as specified in Article 192-1 of the Company Act. Accepting the nomination of director candidates, announcement to the public, and related issues shall comply with the relevant regulations of the Company Act and the Securities and Exchange Act. The election of independent directors and non-independent directors shall be held together. The number of independent directors and non-independent directors elected shall be calculated separately.
Independent directors must be not less than three in number and not less than one-fifth of the total number of directors in the aforesaid number of directors. The election of independent directors shall adopt a candidates nomination system. The independent directors shall be elected from among a list of nominated candidates in the Shareholders' Meeting. Regulations governing the professional qualifications, restrictions on shareholdings and concurrent positions held, assessment of independence, method of nomination, and other matters for compliance with respect to independent directors shall be prescribed by the competent authority.
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Article 16
The Board of Directors shall be organized by the directors and elect a chairman of the board directors from among the directors by a majority vote at a meeting attended by over two-thirds of the directors. The chairman of the Board of Directors shall externally represent the Corporation. The Board of Directors shall be authorized to determine the remuneration for directors, taking in account the standards of related listed companies, business operation of the Corporation, and the value of the services provided.
Article 17
The chairman of the Board of Directors shall manage affairs of the Corporation in accordance with the law, these Articles of Incorporation, and the resolutions of Shareholders’ Meeting as well as the Board of Directors. In case the chairman of the Board of Directors can not exercise his power and authority for any cause, the proxy shall act according to Article 208 of the Company Act.
Article 18
The meeting of the Board of Directors shall be held at least once every quarter, and may be convened, at any time, in cases of necessity. Unless otherwise provided for in the Company Act and these Articles of Incorporation, resolutions of the Board of Directors shall be adopted by a majority of the directors at a meeting attended by a majority of the directors. In case a director cannot attend a meeting of the Board of Directors for any cause, he/she shall appoint another director to in his/her behalf by issuing a written proxy and state therein the scope of authority with reference to the subjects to be discussed at the meeting. A director may accept the appointment to act as the proxy of one other director only. In case a meeting of the Board of Directors is proceeded via visual communication network, then the directors taking part in such a visual communication meeting shall be deemed to have attended the meeting in person.
Notices for the meeting of the Board of Directors shall be sent via written form, fax, or E-mail.
Article 19
The Corporation shall establish an audit committee in accordance with regulations in Article 14-4 of the Securities and Exchange Act. The audit committee shall be composed of the entire number of independent directors, and its members, exercise of powers and other compliance requirements shall be handled in accordance with the relevant laws and regulations. Further, the audit committee charter shall be adopted by the Board of Directors.
Article 19-1
The Corporation may purchase liability insurance for the legal compensation liabilities of directors on the execution of business within their term of office.
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Chapter 5: Managerial Personnel
Article 20 The Corporation may employ a certain number of managerial personnel. The appointment, discharge and the remuneration of managerial personnel shall be in accordance with Article 29 of the Company Act. The remuneration of managerial personnel shall take into account the standards of related listed companies in the industry, business operation of the Corporation, and the value of the services provided.
Chapter 6: Accounting
Article 21 The Board of Directors shall prepare the following reports at the end of each fiscal year and submit to the Shareholders' Meeting for ratification.
- Annual business report,
- Financial statements,
- Surplus earnings distribution or loss make-up proposal.
Article 22 The Corporation is at the steady growth stage of its business development. Residual dividend policy shall be adopted for dividend distribution of the Corporation, taking into consideration the future capital budget plans and operational capital needs of the Corporation, as well as the extent of dilution on earnings per share and influence upon return on equity. Hence, future distribution of earnings shall be made priority by way of cash dividend over stock dividend, provided the ratio for cash dividend shall be 50 percent or more of the total annual distribution.
Article 22-1 When there is profit for the current year, the Corporation shall allocate 5 percent or more as employees' compensation and 3 percent or less as remuneration for directors. However, the Corporation's accumulated losses shall have been covered.
The amount of above employees' compensation shall allocate 20 to 50 percent as compensation for its non-executive employees. Qualification requirements of employees, including the employees of subsidiaries of the Corporation meeting certain specific requirements, may be entitled to receive shares or cash for above employees' compensation.
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Article 23
The Corporation, when allocating the surplus profits after having paid all taxes and dues and covered accumulated losses, shall first set aside legal reserve and special reserve in accordance with relevant laws, rules and regulations. The said special reserve shall require to be reversed before distribution of earnings. If there is a remaining balance, the Board of Directors shall propose an earning distribution plan which distribution amount is no more than 80 percent of retained earnings available for distribution for the current year, then summit it to the Shareholders’ Meeting for concurrence.
Article 23-1
The Corporation, in accordance with paragraph 5 of Article 240 of the Company Act, authorizes the distributable dividends and bonuses or legal reserve and special reserve stipulated in paragraph 1 of Article 241 of the Company Act in whole or in part may be paid in cash after a resolution has been adopted by a majority vote at a meeting of the Board of Directors attended by two-thirds of the total number of directors; and in addition thereto a report of such distribution shall be submitted to the Shareholders’ Meeting.
Chapter 7: Supplemental Provisions
Article 24
Owing to business purpose, the Corporation may make endorsements/guarantees for others.
Article 25
The internal organizational regulations of the Corporation and the details of business operation shall be determined separately by the Board of Directors.
Article 26
In regard to all matters not provided for in these Articles of Incorporation, the Company Act and other rules and regulations shall govern.
Article 27
These Articles of Incorporation are agreed to on September 14, 1994.
The first Amendment was approved on December 5, 1996.
The second Amendment was approved on October 20, 1997.
The third Amendment was approved on December 29, 1997.
The fourth Amendment was approved on May 28, 1998.
The fifth Amendment was approved on May 27, 1999.
The sixth Amendment was approved on May 23, 2000.
The seventh Amendment was approved on June 12, 2001.
The eighth Amendment was approved on June 13, 2002.
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The ninth Amendment was approved on May 27, 2004. The tenth Amendment was approved on May 31, 2005. The eleventh Amendment was approved on June 8, 2006. The twelfth Amendment was approved on June 11, 2007. The thirteenth Amendment was approved on June 10, 2009. The fourteenth Amendment was approved on June 6, 2012. The fifteenth Amendment was approved on June 11, 2014. The sixteenth Amendment was approved on June 7, 2016. The seventeenth Amendment was approved on June 12, 2020. The eighteenth Amendment was approved on July 26, 2021. The nineteenth Amendment was approved on June 17, 2022. The twentieth Amendment was approved on May 28, 2025.
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APPENDIX 3
Emerging Display Technologies Corp. Shareholdings of All Directors
Record date: March 22, 2026
| Title | Name | Current Shareholding | |
|---|---|---|---|
| Shares | % | ||
| Chairman | Tseng, Jui-Ming | 11,043,723 | 7.02% |
| Director | Wang, Tai-Kuang | 1,666,487 | 1.06% |
| Director | Hsieh, Hui-Tai | 6,097,867 | 3.87% |
| Director | Yu, Cheng-Chung | 1,002,000 | 0.64% |
| Director | Ying Dar Investment Development Corp. | ||
| Representative: Huang, Hsiu-Wen | 5,346,672 | 3.40% | |
| Director | Bae Haw Investment Development Corp. | ||
| Representative: Hsieh, Wen-Hsiung | 3,447,716 | 2.19% | |
| Independent Director | Huang, Hui-Ling | 0 | 0.00% |
| Independent Director | Li, Chi-Cheng | 0 | 0.00% |
| Independent Director | Ting, Hung-Hsun | 0 | 0.00% |
| Total Directors' shareholdings | 28,604,465 | 18.17% |
Note:
- Total shares issued as of March 22, 2026: 157,407,603 common shares.
- In accordance with Article 26 of the Securities and Exchange Act, the total shareholdings of Directors should not less than 9,444,456 shares.
- As edt has established the Audit Committee that satisfies the requirements of the Securities and Exchange Act, the minimum shareholding requirements for supervisors do not apply.
- Based on Article 2 of the Rules and Review Procedures for Directors and Supervisors Share Ownership Ratio at Public Companies, edt had elected three independent directors, the minimum shareholding for all directors and supervisors other than the independent directors shall be decreased by 20 percent.