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FPC — Management Reports 2025
Apr 27, 2026
51762_rns_2026-04-27_86430aed-508b-4b47-9236-cbc18ff786e9.pdf
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Formosa Plastics Corporation 2025 Business Report
1. 2025 Business Report:
The Company (Formosa Plastics Corporation) reported consolidated sales of NTD 175.41bn, achieving 82% of the targeted NTD 215.04bn and marking a 12% decline compared to NTD 200.04bn in 2024. Consolidated pre-tax loss amounted to NTD 10.215bn, widening from a loss of NTD 2.414bn in 2024 and representing an increase in loss of NTD 7.801bn.
The weaker performance in 2025 was mainly attributable to continued capacity additions in mainland China and the US, leading to aggressive low-priced exports. In addition, the average contract prices of Dubai crude, ethylene, and propylene declined YoY. Coupled with sluggish domestic demand in mainland China and the implementation of reciprocal tariffs by the US, overall petrochemical demand softened and product spreads narrowed. As a result, the Company recorded a consolidated operating loss of NTD 7.505bn, with losses expanding by NTD 3.344bn YoY.
Furthermore, equity income from investees, including Formosa Petrochemical Corporation and FPCUSA, totaled NTD 405.8mn, decreasing significantly by NTD 1.423bn YoY. The Company also recorded foreign exchange losses of NTD 1.163bn, compared to a gain of NTD 598.6mn in 2024, representing a negative swing of NTD 1.762bn. In addition, cash dividend income declined to NTD 981.19mn, down by NTD 74.84mn. As a result, the Company remained loss-making in 2025.
In 2025, the global economy recorded modest growth amid multiple challenges. While major central banks began easing monetary policy as inflationary pressures moderated, rising trade protectionism and escalating geopolitical tensions continued to weigh on the outlook. In particular, the implementation of reciprocal tariff policies by the US reshaped global trade dynamics and increased uncertainties in supply chain logistics. Meanwhile, severe oversupply in Asia's petrochemical sector intensified market competition, posing significant challenges to industry operations.
In response to the rapidly evolving global economic and political landscape, as well as persistent oversupply in the petrochemical market, the Company continued to strengthen its core petrochemical business while optimizing and developing higher value-added and differentiated products to enhance profitability. In 2025, revenue contribution from differentiated products reached 21.6%, up 1.8% YoY. In line with global supply chain shifts, the Company expanded its presence beyond mainland China to diversify market exposure, increasing sales to regions including India, Southeast Asia, Australia, New Zealand, Turkey, Europe, and South America. The share of exports to Southeast Asia rose from 21.6% in 2024 to 25.2% in 2025, while Europe increased from 3.1% to 5.6%. Meanwhile, exposure to mainland China declined from 27.7% to 23.8%, reducing reliance on a single market.
At the same time, in line with the expected completion and commencement of the ethylene refrigerated tank and underground pipeline facilities at the Kaohsiung Intercontinental Terminal in 1H26, the Company plans to import lower-cost ethylene opportunistically based on market conditions in order to reduce raw material procurement and transportation costs. In addition, the Company has continued to exercise strict control over project spending, optimize manpower allocation, and contain operating expenses. In response to changes in the macro environment, raw material and product pricing, and supply-demand conditions, the Company has reviewed the optimal production and sales strategies for each product line, and has adopted measures including production suspension, consolidation, plant closure, or asset disposal for underperforming products or investees to reduce losses. Among these, the Mailiao ECH plant was shut down and mothballed in January 2025 due to limited prospects for material improvement.
The Company has also continued to deepen efforts in new product and new business development, energy transition, and digital transformation. In new product and business development, the Company is focusing on three major areas: semiconductor chemicals, advanced new materials, and medical and healthcare-related businesses. Currently, there
are more than 20 approved transformation projects under way, and the commencement of production at some of these projects is expected to help improve operating performance.
In terms of energy transition, in response to the global decarbonization trend, the domestic carbon fee regime introduced in 2025, and stakeholder expectations for the Company's sustainable transformation, the Company has initiated a range of measures, including autonomous carbon reduction at individual plants, the gradual replacement of coal-fired utility boilers with gas-fired boilers, a higher proportion of wind and solar power generation, increased use of renewable energy, and additional water- and energy-saving initiatives. Among these efforts, the Company has installed a waste-gas-fired boiler at its Linyuan plant. Renewable energy usage reached 9.86mn kWh in 2025, while installed solar power capacity reached 1,520kW, with a further 4,017kW expected to be added by the end of 2026.
In digital transformation, the Company has continued to apply AI to production and sales optimization to improve output and quality while reducing raw material consumption, energy use, and environmental, health and safety risks. With the goal of building smart factories and digitizing operations management, the Company further promoted cross-unit process AI integration, generative AI-based R&D innovation, in-house development of smart robotics applications, and the digitalization of industrial safety management to enhance operating efficiency. As of the end of 2025, the Company had proposed 462 development projects, of which 279 had been completed, generating annual benefits of NTD 1.14bn.
Through the implementation of the above operating improvement measures and transformation strategies, the Company aims to strengthen its fundamentals step by step, improve operational resilience, and mitigate the impact of various external challenges.
The Company, together with its Ningbo operations in mainland China and US subsidiaries, mainly produces plastics, chemicals, and fiber raw materials. Among its key products, PVC was affected by the prolonged
Russia-Ukraine war, weak economic growth in Europe, weakness in China's property market, and limited effectiveness of government stimulus measures. In addition, as India's anti-dumping measures and BIS certification requirements for PVC were ultimately not implemented, excess capacity in China and the US continued to be exported aggressively at low prices, resulting in persistent oversupply and continued price declines. As a result, PVC sales volume declined 4.8% YoY to 1.629mn tonnes in 2025.
Caustic soda remained oversupplied in the East Asian market. In 1H25, disruptions to bauxite exports from Guinea in West Africa pushed up global alumina prices, while new alumina capacity in China and nickel hydroxide capacity in Indonesia supported caustic soda demand. However, in 2H25, following the implementation of US reciprocal tariffs, new caustic soda capacity came onstream in China and Thailand, while global alumina prices continued to decline. As profitability weakened, the Company reduced caustic soda sales, resulting in 2025 sales volume of 1.146mn tonnes, down 10.8% YoY.
HDPE was affected by rising US-China trade tensions, weak demand in China, and continued capacity additions, which pressured prices. Coupled with high ethylene costs, Far East market prices fell below variable costs. Nevertheless, through stronger sales efforts for differentiated products and market expansion into Vietnam and Bangladesh, HDPE sales volume rose 14.7% YoY to 321k tonnes in 2025.
LLDPE was similarly affected by weak market conditions in China. While the Company continued to promote differentiated products and diversify its sales markets, weak conditions in North and Central/South America weighed on the performance of its US subsidiary. As a result, LLDPE sales volume declined 7.7% YoY to 412k tonnes in 2025.
EVA faced intense competition due to continued capacity additions in mainland China. However, benefiting from rapid growth in India's solar industry and stronger sales of solar encapsulation film materials in India, EVA sales volume increased 2.7% YoY to 324k tonnes in 2025.
For acrylic esters (AE), China’s economy did not recover meaningfully, while weak property market conditions reduced coating demand. At the same time, new capacity additions increased supply pressure, peers continued aggressive export pricing, and new capacity in India narrowed the market supply-demand gap. As a result, AE sales volume declined 7.2% YoY to 548k tonnes in 2025.
For carbon fiber, the Company strategically increased the share of sales to Northeast Asia, Southeast Asia, Europe, and the US in order to diversify market risk. Sales volume reached 5k tonnes, broadly flat YoY.
Butanol was mainly supplied for internal use in Taiwan, with exports to Northeast Asia and South Asia. However, weaker-than-expected domestic and export demand in mainland China weighed on demand from the coatings and adhesive tape industries, while new capacity additions intensified competition. As a result, butanol sales volume fell 7.3% YoY to 257k tonnes in 2025.
For SAP, the Company sought to diversify sales risk by actively securing new customers in Asia, expanding into non-hygiene product applications, and increasing the share of sales to North America. Sales volume was 202k tonnes, broadly flat YoY.
PP continued to face oversupply due to ongoing capacity additions in mainland China and the implementation of US reciprocal tariffs. With a focus on improving profitability, the Company continued to develop medical-grade PP and expand sales of higher-margin differentiated products, while reducing sales of general-purpose grades. Consequently, PP sales volume declined 7.5% YoY to 776k tonnes in 2025.
AN sales volume declined 1.6% YoY to 279k tonnes in 2025, mainly due to lower production and sales at domestic downstream ABS customers. MMA sales volume rose 3.2% YoY to 95k tonnes, as the Company captured part of the market opportunity created by plant closures among peers in Southeast Asia and the US.
To strengthen international competitiveness and enhance product value-added, the Company’s domestic and overseas plants have been
actively carrying out capacity expansion, debottlenecking, and transformation projects. Ongoing projects include a new 100-tonne/year PAEK composite materials facility in Renwu, expected to be completed in 1H26; a 2,800-tonne/year precursor expansion project in Renwu; and a 1,600-tonne/year carbon fiber expansion project, both expected to be completed in 2H26. In Mailiao, a new electronic-grade ultra-high-purity hydrogen facility with annual capacity of 438 tonnes, as well as a conversion project at the LLDPE plant to produce gas-phase polyolefin elastomer (gPOE) with annual capacity of 163k tonnes, are expected to be completed in 1H27.
At the Ningbo site in mainland China, a new 25,000 m³ ethylene refrigerated tank was completed in June 2025, while a new dedicated wharf is scheduled for completion in 2030. At the Texas site in the US, a new 100k-tonne/year 1-hexene plant is expected to commence production in 1H26.
In addition, in line with Kaohsiung's urban development plans, the Company has relocated its tank terminal area to the Kaohsiung Intercontinental Phase II Petrochemical Zone. Apart from the ethylene storage tank and underground pipeline facilities, which are scheduled for completion in 1H26, the remaining 11 storage tanks and one salt warehouse had already commenced operations by the end of 2023.
The Company expects that the completion of these new build, expansion, debottlenecking, and transformation projects will help enlarge economies of scale, reduce production costs, enhance product value-added, and build a more resilient operating structure.
In terms of equity investments, FPCUSA (22.66% owned by the Company) recorded a pretax loss of USD 287.55mn, a deterioration from 2024's level. This was mainly attributable to the implementation of US reciprocal tariff policies, which hurt prices, consumer confidence, and overall demand in the North American petrochemical market. In addition, significant capacity additions in China exacerbated the global supply-demand imbalance, while average petrochemical selling prices declined YoY, resulting in losses.
As part of the Company’s transformation plan, the Company and Formosa Heavy Industries each invested NTD 75mn to jointly establish Formosa Turbowin Co., Ltd. with Korea’s Turbowin. The new venture will produce air suspension blowers, which are more energy efficient than conventional Roots blowers and have lower maintenance and spare parts costs. The plant will have annual capacity of 600 units and is expected to be completed in 2H26.
R&D expenditure totaled NTD 2.4bn in 2025, equivalent to 1.4% of the Company’s revenue. Spending was primarily directed toward formulation development, process improvement, quality enhancement, energy saving and consumption reduction, and talent development, with the aim of increasing value-added and reducing costs. A total of 38 R&D projects were completed, generating annual benefits of more than NTD 150mn. Meanwhile, the Company continued to develop and commercialize forward-looking products and process technologies, including easy-gelation suspension PVC, easy-chlorination suspension PVC, ultra-transparent impact modifiers, anti-adhesion painless silicone catheters, high-strength HDPE fiber-grade materials, LLDPE lamination film materials, EVA solar encapsulation film grades, high-rigidity and high-heat-resistant PP, high-flow transparent PP, dry-jet wet-spun high-strength high-modulus carbon fiber, aerospace-grade carbon prepreg, high-performance instant-absorption SAP, MMA derivatives, high-purity acetonitrile, and calcium carbonate slurry for latex glove applications. These efforts have delivered encouraging results in enhancing downstream customer value-added.
In response to the severe long-term challenge of structural oversupply in the petrochemical industry, the Company has actively promoted transformation and industry upgrading while strengthening product diversification. In recent years, the Company has continued to invest in key technologies, R&D, and patent deployment both domestically and overseas. In 2025, the Company obtained 64 new patents, bringing its total valid patent portfolio to 408 by year-end. To deepen its R&D foundation and strengthen innovation capabilities, the Company has also expanded
industry-academia collaboration and dispatched personnel to domestic and overseas universities for advanced study and training, thereby reinforcing technical expertise, aligning with international R&D trends, and broadening global perspectives.
At the same time, by leveraging the research capabilities and high-performance quantum computing capacity of leading domestic academic institutions, as well as integrating resources such as the Mailiao Advanced Instrument Center and virtual laboratories, the Company has effectively shortened product development cycles and expanded both the speed and breadth of R&D. To advance its transformation toward the semiconductor industry, the Company also applied at the end of 2025 to Taiwan's Ministry of Economic Affairs for participation in the Industrial Upgrading and Innovation Program, focusing on key technologies for precursors used in advanced semiconductor fine-line interconnect processes.
In addition, the Company remains committed to green transformation and breakthroughs in low-carbon technologies, with a focus on recyclability and circularity of product materials. Completed developments include post-consumer recycled (PCR) raw materials for luggage and paint buckets, a chlor-alkali $\mathrm{CO}_{2}$ utilization system, and a new activated carbon recycling and regeneration system. Through diversified technological innovation and product transformation, the Company aims to respond proactively to current industry challenges and achieve sustainable development.
The Company has consistently adhered to an operating philosophy that places equal emphasis on industrial development and environmental protection. By the end of 2025, cumulative investment in industrial safety, environmental protection, and fire prevention improvement had reached NTD 37.9bn, primarily for pollution prevention and control, energy saving and waste reduction, greenhouse gas reduction, and industrial/fire safety improvements. As a result, the treatment and discharge performance of various pollutants remained better than national regulatory standards.
In 2025, the Company received multiple recognitions from government authorities, including the “Outstanding Occupational Safety and Health Unit” award for the Mailiao C4 plant from the Yunlin County Government; the “Outstanding Toxic Chemical Disaster Prevention Organization” award for the Mailiao and Xingang plants from the Ministry of Environment; and recognition for the Renwu VCM plant in the Ministry of Economic Affairs’ industrial hazard prevention organization evaluation.
In terms of greenhouse gas reduction, the Company has set 2020 Scope 1 and Scope 2 emissions of 8.635mn tonnes as the baseline and established reduction targets of 20% by 2025, 40% by 2030, and carbon neutrality by 2050. Verified by an independent third party, 2024 greenhouse gas emissions totaled 7.55mn tonnes, representing an absolute reduction of 1.085mn tonnes, or 12.6%, from the baseline year.
Regarding water, energy, and emissions reduction, the Company completed 977 improvement projects in 2025, which are expected to save 3,664 tonnes of water per day and reduce annual greenhouse gas emissions by approximately 128k tonnes. A further 755 projects remain under way and are expected to save an additional 4,408 tonnes of water per day and reduce annual greenhouse gas emissions by another 815k tonnes.
According to the 2025 CDP assessment results, the Company again received the highest rating of “A” in both climate change and water security. This marked the third consecutive year since 2023 that the Company ranked among the leading international chemical companies, reflecting meaningful progress in energy saving, emissions reduction, and the circular economy in response to climate change.
In addition, in the area of smart industrial safety management, the Company’s Linyuan site adopted a range of intelligent technologies in 2025 under the guidance of Taiwan’s Industrial Development Administration, including a VOC gas detection management platform, personnel positioning systems, smart supervision, equipment monitoring, and intelligent inspection systems, to further strengthen safety management.
To enhance source control and inventory management of chemicals, the Company has promoted chemical risk classification and fully implemented the new regulatory requirements for dynamic declaration of hazardous materials at factories. Through its ERP information system, the Company strictly manages inventories of public hazardous substances and has further standardized fire safety management indicators to improve fire safety execution across its plants. The goal is to achieve a level of fire safety management exceeding both current legal requirements and industry standards, ensuring that organic peroxides and public hazardous materials are properly stored in a safe environment.
2. Business Performance:
Consolidated revenue in 2025 was NTD 175.41bn, down by NTD 24.63bn from NTD 200.04bn in 2024. After deducting operating costs of NTD 169.81bn and operating expenses of NTD 13.1879bn, the Company recorded an operating loss of NTD 7.505bn, with an operating margin of -4%. Including net non-operating income and expenses of -NTD 2.7952bn and equity-method-recognized earnings from associates and joint ventures of NTD 0.4558bn, pre-tax loss reached NTD 10.215bn in 2025, widening by NTD 7.801bn YoY.
3. 2026 Business Performance Target and Outlook:
Looking ahead to 2026, continued rate cuts by major central banks and a diminishing impact from US tariffs on global growth are expected to support corporate investment and consumer confidence. Together with the ongoing AI investment boom, this should help global economic growth improve gradually. That said, the outlook remains subject to multiple uncertainties, including developments in US tariff and trade policy, the monetary policy trajectory of major economies, the implementation of China's economic stimulus measures, geopolitical risks, and climate change. These factors will continue to be key variables affecting global trade, energy prices, and inflation trends.
According to CMA (Chemical Market Analytics), global ethylene capacity in 2026 is expected to increase by a net 7.2mn tonnes to 242mn
tonnes, while demand is projected to rise by about 5.8mn tonnes. Global propylene capacity is expected to increase by a net 6.1mn tonnes to 186mn tonnes, while demand is projected to increase by about 4.0mn tonnes. This suggests that the global ethylene and propylene markets will remain under oversupply pressure. China remains the key region for petrochemical feedstock expansion, with new ethylene and propylene capacity additions of 6.1mn tonnes and 4.1mn tonnes, respectively, accounting for 84% and 68% of global additions in 2026. Cumulative additions during 2026–2028 are expected to exceed 20mn tonnes for ethylene and 15mn tonnes for propylene.
Asia’s petrochemical market remained weak in 2025, as the structural issue of global overcapacity persisted. Under China’s import substitution policy, a large number of integrated refining and petrochemical projects have come onstream in recent years, driving downstream plastics and synthetic fiber capacity expansion. However, stimulus measures have had only limited success in reviving domestic demand, while the property market remains weak and petrochemical demand subdued. As a result, China has been unable to absorb excess capacity, leading to an unprecedented level of internal competition. Local producers have had to cut prices aggressively to export surplus inventories to international markets, particularly India and Southeast Asia, directly pressuring Asian export markets and global pricing. Profitability across the region has therefore been severely squeezed. Moreover, high US tariffs on Chinese petrochemical feedstocks and downstream processed products have increased production costs for Chinese manufacturers and accelerated the migration of downstream processing capacity to Southeast Asia and other lower-tariff regions, creating unprecedented challenges for the Asian petrochemical industry.
The Company expects the petrochemical industry to remain challenged in 2026, as the spillover effects of excess capacity in China continue to compress product spreads, while trade protectionism and geopolitical conflicts heighten operating and supply chain risks. However, China is reportedly planning a series of supply-side reforms under its 15th
Five-Year Plan to address excessive internal competition in the petrochemical sector, including accelerating the upgrading of petrochemical facilities older than 20 years and more tightly controlling new feedstock capacity additions that would worsen oversupply. At the same time, China is encouraging investment in higher-end specialty chemicals and new materials and guiding the industry toward green and low-carbon transformation. Together with capacity rationalization and plant closures by some global peers due to market competition and energy transition pressures, the oversupply situation may gradually ease.
In addition, with the US and Europe moving into an easing cycle and signs of easing tensions in US-China trade relations, global demand and investment confidence may improve. Meanwhile, President Trump's energy policy orientation toward supporting fossil fuel and oil and gas production and exports may help lower energy and petrochemical feedstock costs. Combined with China's continued fiscal and monetary easing measures to stimulate growth, these developments may create opportunities for improvement in the petrochemical operating environment. As such, the Company expects industry conditions in 2026 to improve from 2025.
Looking ahead, by emphasizing cost discipline and operational improvement, the Company will continue to tightly manage project spending, optimize manpower utilization, and control all categories of operating expenses. The Company also plans to make full use of the Kaohsiung Intercontinental Terminal feedstock storage tanks and underground pipeline infrastructure, while flexibly adopting strategies such as procuring lower-cost spot cargoes and engaging in swap transactions to lower costs. In addition, production rates will be adjusted flexibly based on the operating value and competitiveness of each product, and old facilities lacking competitiveness and suffering persistent losses may be shut down to reinforce refined operations management. The Company will also continue to use automation and digital technologies to monitor and optimize production processes, reduce unit consumption, improve energy efficiency, and strengthen preventive maintenance in order
to minimize unplanned shutdowns and ensure safe and stable plant operations.
At the same time, the Company will remain focused on transformation through new products and new businesses. In addition to continuing to optimize and develop higher value-added and differentiated products based on its core petrochemical operations and introducing technical upgrades to inefficient production lines, the Company will also pursue technology transfer and collaborative development of advanced materials in line with growth trends in high-end applications and emerging industries, including electronics/semiconductors, low-carbon green energy, and medical biotechnology, thereby creating new growth drivers.
The Company will also continue to deepen AI development and digital transformation through cross-unit process AI integration and intelligent industrial safety management, with the goal of building smart plants, lowering operating costs, and reducing safety risks. It is also leveraging generative AI technology to develop Formosa GPT as a comprehensive digital intelligence platform to simplify workflows, accelerate knowledge transfer, and enhance management efficiency. In response to the global decarbonization trend, Taiwan's carbon fee regime introduced in 2025, and stakeholder expectations for sustainable transformation, the Company will continue to promote autonomous carbon reduction at each plant, low-carbon energy transition, expansion of wind and solar generation capacity, and increased renewable energy consumption, as it works toward its 2050 carbon neutrality goal.
Through the above multi-pronged operating strategies, the Company aims to strengthen management, accelerate transformation, diversify its business portfolio, and drive innovation-led development. By doing so, it hopes to reinforce its long-term competitiveness, overcome current challenges, open up new opportunities, and restore sustainable growth momentum.
Chairman: Wen-Bee Kuo President: Jerry Lin In-charge Accountant: I-Yu Chiu
Formosa Plastics Corporation
Audit Committee’s Review Report
The Board of Directors has prepared the Company’s 2025 Business Report, Financial Statements, including Consolidated and Individual Financial Statement, and Proposal for Profits Distribution. The CPA firm of KPMG was retained to audit Formosa Plastics Corporation’s Financial Statements and has issued an audit report relating to Financial Statements. The Business Report, Financial Statements, and Proposal for Profits Distribution have been reviewed and determined to be correct and accurate by the Audit Committee members of Formosa Plastics Corporation. According to the Securities and Exchange Act and the Company Act, we hereby submit this report. Please be advised accordingly.
Formosa Plastics Corporation
Chairman of the Audit Committee: Chi-Lin, Wei
March 6, 2026
Ratification Items Proposal 1
Proposal: For approval of the 2025 Business Report and Financial Statements as required by the Company Act.
Proposed by the Board of Directors
Explanation:
-
The preparation of the Company’s 2025 Consolidated and Individual Financial Statements were completed. The aforementioned Financial Statement were reviewed by the Audit Committee and approved by the Board Meeting on March 6, 2026, and audited by independent auditors, Ms. Hsin-Yi, Kuo and Mr. Jhao-Wun, Jhang of KPMG. The aforesaid Financial Statements together with the Business Report were reviewed by the Audit Committee, which the Audit Committee’ Review Report is presented.
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For the aforementioned Business Report, please refer to page 5 through page 17 of the Meeting Handbook. As for the Financial Statements, please refer to page 26 through page 33 of the Handbook. Please approve the Business Report and the Financial Statements.
Resolution:
Ratification Items Proposal 2
Proposal: For approval of the proposal for distribution of 2025 Profits as required by the Company Act.
Proposed by the Board of Directors
Explanation:
Please refer to page 34 of the Handbook for the Statement of Profits Distribution, which has been reviewed by the Audit Committee members of Formosa Plastics Corporation and approved by the Board of Directors on March 6, 2026.
Resolution:
Discussion Items Proposal 1
Proposal: Amendment to Procedures for Acquisition or Disposal of Assets of the Company. Please discuss and resolve.
Explanation: To comply with the requirements provided in the order Jin-Guan-Zheng-Fa-Zi No. 1140383333 dated July 24, 2025 by the Financial Supervisory Commission, certain articles of Procedures for Acquisition or Disposal of Assets of the Company have been amended. The comparison table for articles before and after amendment is hereby attached. Please determine whether the amendments are reasonable.
| Article | Current Article | Amended Article | Reason for Amendment |
|---|---|---|---|
| Article 28 | Under any of the following circumstances, the Company acquiring or disposing of assets shall publicly announce and report the relevant information on the securities competent authority's designated website in the appropriate format as prescribed by regulations within 2 days commencing immediately from the date of occurrence of the event: | ||
| 1. Acquisition or disposal of real property or right-of-use assets thereof from or to a related party, or | Under any of the following circumstances, the Company acquiring or disposing of assets shall publicly announce and report the relevant information on the securities competent authority's designated website in the appropriate format as prescribed by regulations within 2 days commencing immediately from the date of occurrence of the event: | ||
| 1. Acquisition or disposal of real property or right-of-use assets thereof from or to a related party, or acquisition or disposal | Amended to comply with the order Jin-Guan-Zheng-Fa-Zi No. 1140383333 dated July 24, 2025 by the Financial Supervisory Commission. |
| | acquisition or disposal of assets other than real property or right-of-use assets thereof from or to a related party where the transaction amount reaches 20 percent or more of paid-in capital, 10 percent or more of the Company's total assets, or NT$300 million or more; provided, this shall not apply to trading of domestic government bonds or bonds under repurchase and resale agreements, or subscription or repurchase of money market funds issued by domestic securities investment trust enterprises.
2. Merger, demerger, acquisition, or assignment of shares.
3. Losses from derivatives trading reaching the limits on aggregate losses or losses on individual contracts set out in the procedures adopted by the Company.
4. Where equipment/machinery or right-of-use assets | of assets other than real property or right-of-use assets thereof from or to a related party where the transaction amount reaches 20 percent or more of paid-in capital, 10 percent or more of the Company's total assets, or NT$300 million or more; provided, this shall not apply to trading of domestic government bonds or bonds under repurchase and resale agreements, or subscription or repurchase of money market funds issued by domestic securities investment trust enterprises.
2. Merger, demerger, acquisition, or assignment of shares.
3. Losses from derivatives trading reaching the limits on aggregate losses or losses on individual contracts set out in the procedures adopted by the Company.
4. Where equipment/machinery or right-of-use assets |
| --- | --- | --- |
| | thereof for business use are acquired or disposed of, and furthermore the trading counterparty is not a related party, and the transaction amount is more than NT$1 billion.
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Where land is acquired under an arrangement on engaging others to build on the company's own land, engaging others to build on rented land, joint construction and allocation of housing units, joint construction and allocation of ownership percentages, or joint construction and separate sale, and furthermore the trading counterparty is not a related party, and the amount the Company expects to invest in the transaction is more than NT$500 million.
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An asset transaction other than any of those referred to in the preceding five subparagraphs, a | use are acquired or disposed of, and furthermore the trading counterparty is not a related party, and the transaction amount reaches 5 percent or more of the Company’s paid-in capital.
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Where land is acquired under an arrangement on engaging others to build on the company's own land, engaging others to build on rented land, joint construction and allocation of housing units, joint construction and allocation of ownership percentages, or joint construction and separate sale, and furthermore the trading counterparty is not a related party, and the amount the Company expects to invest in the transaction is more than NT$500 million.
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Transactions in government bonds, ordinary corporate bonds, and general bank debentures without equity |
| --- | --- | --- |
| disposal of receivables by a financial institution, or an investment in the mainland China area where the transaction amount reaches 20 percent or more of paid-in capital or NT$300 million or more, provided this shall not apply to the following circumstances: (1) Trading of domestic government bonds or foreign government bonds with a sovereign rating not lower than the sovereign rating of the R.O.C. (2) Trading of bonds under repurchase/resale agreements or the subscription or repurchase of money market funds issued by domestic securities investment trust enterprises. (below omitted) | characteristics (excluding subordinated debt) traded on securities exchanges or OTC markets, which do not fall under any of the circumstances listed in the proviso of subparagraph 8, and where furthermore the transaction counterparty is not a related party, and the transaction amount reaches 5 percent or more of the Company's paid-in capital. 7. An asset transaction other than any of those referred to in the preceding six subparagraphs, a disposal of receivables by a financial institution, or an investment in the mainland China area where the transaction amount reaches 20 percent or more of paid-in capital or NT$300 million or more, provided this shall not apply to the following circumstances: (1) Trading of domestic | |
|---|---|---|
| | | government bonds or foreign government bonds with a sovereign rating not lower than the sovereign rating of the R.O.C.
(2) Trading of bonds under repurchase/resale agreements or the subscription or repurchase of money market funds issued by domestic securities investment trust enterprises.
(below omitted) | |
| --- | --- | --- | --- |
Resolution:
(English Translation of Consolidated Financial Statements Originally Issued in Chinese)
FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES
Consolidated 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(r) and 7) | 175,411,403 | 100 | 200,040,347 | 100 |
| 5000 | Operating costs (Notes 6(c), (g), (h), (n), (s) and 7) | 169,808,092 | 97 | 189,891,929 | 95 |
| Gross profit from operations | 5,603,311 | 3 | 10,148,418 | 5 | |
| Operating expenses (Notes 6(c), (g), (h), (m), (n), (s) and 7): | |||||
| 6100 | Selling expenses | 6,460,518 | 3 | 7,499,691 | 4 |
| 6200 | Administrative expenses | 5,098,519 | 3 | 5,015,913 | 2 |
| 6300 | Research and development expenses | 1,479,276 | 1 | 1,648,941 | 1 |
| 6450 | Expected credit losses | 70,481 | - | 145,623 | - |
| Total operating expenses | 13,108,794 | 7 | 14,310,168 | 7 | |
| Net operating losses | (7,505,483) | (4) | (4,161,750) | (2) | |
| Non-operating income and expenses (Notes 6(b), (f), (g), (m), (t) and 7): | |||||
| 7100 | Interest income | 342,365 | - | 766,263 | - |
| 7010 | Other income | 1,206,547 | 1 | 1,224,071 | 1 |
| 7020 | Other gains and losses | (1,468,382) | (1) | 1,164,581 | 1 |
| 7050 | Finance costs | (3,195,631) | (2) | (3,236,845) | (2) |
| 7060 | Recognized share of profit of associates and joint ventures accounted for using equity method, net | 405,584 | - | 1,829,447 | 1 |
| Total non-operating income and expenses | (2,709,517) | (2) | 1,747,517 | 1 | |
| Loss before tax | (10,215,000) | (6) | (2,414,233) | (1) | |
| 7950 | Less: Income tax profit (Note 6(o)) | (166,341) | - | (1,182,468) | - |
| Net loss | (10,048,659) | (6) | (1,231,765) | (1) | |
| 8300 | Other comprehensive income (loss) (Notes 6(n), 6(o) and (p)): | ||||
| 8310 | Components of other comprehensive income (loss) that will not be reclassified to profit or loss: | ||||
| 8311 | Gains (losses) on remeasurements of defined benefit plans | 239,519 | - | 385,969 | - |
| 8316 | Unrealized gains (losses) from equity instruments measured at fair value through other comprehensive income | 75,116,030 | 43 | (50,352,277) | (25) |
| 8320 | Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss | 17,934,528 | 10 | (7,622,469) | (4) |
| 8349 | Income tax related to components of other comprehensive income that will not be reclassified to profit or loss | 47,904 | - | 77,194 | - |
| Total components of other comprehensive income (loss) that will not be reclassified to profit or loss | 93,242,173 | 53 | (57,665,971) | (29) | |
| 8360 | Components of other comprehensive income (loss) that will be reclassified to profit or loss: | ||||
| 8361 | Exchange differences on translation of foreign financial statements | (5,299,538) | (3) | 8,572,153 | 4 |
| 8370 | Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss | (752,843) | - | 1,273,990 | 1 |
| 8399 | Income tax related to components of other comprehensive income (loss) that will be reclassified to profit or loss | (195,682) | - | 543,715 | - |
| Total components of other comprehensive income (loss) that will be reclassified to profit or loss | (5,856,699) | (3) | 9,302,428 | 5 | |
| 8300 | Other comprehensive income (loss) | 87,385,474 | 50 | (48,363,543) | (24) |
| 8500 | Total comprehensive income (loss) | $ 77,336,815 | 44 | (49,595,308) | (25) |
| Before Tax | After Tax | Before Tax | After Tax | ||
| 9710 | Basic/Diluted loss per share (in New Taiwan Dollars) (Note 6(q)) | $ (1.60) | (1.58) | (0.38) | (0.19) |
See accompanying notes to consolidated financial statements.
(English Translation of Financial Statements and Report Originally Issued in Chinese)
FORMOSA PLASTICS CORPORATION
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(r) and 7) | $ 126,499,573 | 100 | 146,040,920 | 100 |
| 5000 | Operating costs (Notes 6(e), (g), (h), (n), (s) and 7) | 119,758,000 | 95 | 135,227,134 | 93 |
| Gross profit from operations | 6,741,573 | 5 | 10,813,786 | 7 | |
| 5920 | Add: Realized profit from sales | 5,429 | - | 15,712 | - |
| Gross profit from operations | 6,747,002 | 5 | 10,829,498 | 7 | |
| Operating expenses (Notes 6(c), (g), (h), (m), (n), (s) and 7): | |||||
| 6100 | Selling expenses | 5,224,548 | 4 | 6,027,091 | 4 |
| 6200 | Administrative expenses | 4,603,093 | 4 | 4,650,480 | 3 |
| 6300 | Research and development expenses | 1,479,276 | 1 | 1,648,941 | 1 |
| 6450 | Expected credit loss | 15,289 | - | 123,435 | - |
| Total operating expenses | 11,322,206 | 9 | 12,449,947 | 8 | |
| Net operating losses | (4,575,204) | (4) | (1,620,449) | (1) | |
| Non-operating income and expenses (Notes 6(b), (f), (g), (m), (t) and 7): | |||||
| 7100 | Interest income | 237,374 | - | 272,860 | - |
| 7010 | Other income | 1,136,027 | 1 | 1,219,832 | 1 |
| 7020 | Other gains and losses | (1,123,052) | (1) | 1,345,089 | 1 |
| 7050 | Finance costs | (2,088,847) | (1) | (1,835,331) | (1) |
| 7070 | Recognized share of subsidiaries, associates and joint ventures accounted for using equity method, net | (3,786,636) | (3) | (1,862,382) | (1) |
| Total non-operating income and expenses | (5,625,134) | (4) | (859,932) | - | |
| Loss before tax | (10,200,338) | (8) | (2,480,381) | (1) | |
| 7950 | Less: Income tax benefits (Note 6(o)) | (151,679) | - | (1,248,616) | (1) |
| Net loss | (10,048,659) | (8) | (1,231,765) | - | |
| 8300 | Other comprehensive income (loss) (Notes 6(n), (o) and (p)): | ||||
| 8310 | Components of other comprehensive income (loss) that will not be reclassified to profit or loss: | ||||
| 8311 | Gains (losses) on remeasurements of defined benefit plans | 239,519 | - | 385,969 | - |
| 8316 | Unrealized (losses) gains from equity instruments measured at fair value through other comprehensive income | 75,142,459 | 60 | (50,365,392) | (34) |
| 8330 | Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss | 17,908,099 | 14 | (7,609,354) | (5) |
| 8349 | Income tax related to components of other comprehensive income that will not be reclassified to profit or loss | 47,904 | - | 77,194 | - |
| Total components of other comprehensive income (loss) that will not be reclassified to profit or loss | 93,242,173 | 74 | (57,665,971) | (39) | |
| 8360 | Components of other comprehensive income (loss) that will be reclassified to profit or loss: | ||||
| 8361 | Exchange differences on translation of foreign financial statements | (5,299,538) | (4) | 8,572,153 | 5 |
| 8380 | Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss | (752,843) | (1) | 1,273,990 | 1 |
| 8399 | Income tax related to components of other comprehensive income that will be reclassified to profit or loss | (195,682) | - | 543,715 | - |
| Total components of other comprehensive income (loss) that will be reclassified to profit or loss | (5,856,699) | (5) | 9,302,428 | 6 | |
| 8300 | Other comprehensive income (loss) | 87,385,474 | 69 | (48,363,543) | (33) |
| Total comprehensive income (loss) | $ 77,336,815 | 61 | (49,595,308) | (33) | |
| Before tax | After tax | Before tax | After tax | ||
| 9710 | Basic/Diluted loss per share (New Taiwan Dollars) (Note 6(q)) | $ (1.60) | (1.58) | (0.39) | (0.19) |
See accompanying notes to financial statements.
(English Translation of Consolidated Financial Statements Originally Issued in Chinese)
FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
December 31, 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars)
| Assets Current assets: | December 31, 2025 | December 31, 2024 | Liabilities and Equity | December 31, 2025 | December 31, 2024 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Amount | % | Amount | % | Current liabilities: | % | Amount | % | Amount | % | ||
| 1100 | Cash and cash equivalents (Note 6(a)) | $ 10,651,822 | 2 | 18,200,100 | 4 | 2100 | Short-term borrowings (Note 6(i)) | $ 32,453,764 | 6 | 33,060,589 | 7 |
| 1110 | Current financial assets at fair value through profit or loss (Note 6(b)) | 1,849,655 | - | 1,846,201 | - | 2110 | Short-term notes and bills payable (Note 6(j)) | 9,393,667 | 2 | 26,034,782 | 5 |
| 1120 | Current financial assets at fair value through other comprehensive income (Note 6(b)) | 106,287,867 | 19 | 38,771,885 | 8 | 2120 | Current financial liabilities at fair value through profit or loss (Note 6(b)) | 226,726 | - | - | - |
| 1150 | Notes receivable, net (Notes 6(c) and (r)) | 1,509,481 | - | 1,359,990 | - | 2130 | Current contract liabilities (Note 6(r)) | 245,446 | - | 673,723 | - |
| 1170 | Accounts receivable, net (Notes 6(c) and (r)) | 8,911,320 | 2 | 10,285,979 | 2 | 2170 | Notes and accounts payable | 5,561,305 | 1 | 9,055,984 | 2 |
| 1180 | Accounts receivable—related parties, net (Notes 6(c), (r) and 7) | 1,603,457 | - | 2,790,869 | 1 | 2180 | Accounts payable—related parties (Note 7) | 4,400,577 | 1 | 4,269,684 | 1 |
| 1200 | Other receivables (Note 6(d)) | 2,018,510 | - | 1,612,586 | - | 2200 | Other payables | 291,832 | - | 1,260,630 | - |
| 1210 | Other receivables—related parties (Notes 6(d) and 7) | 1,202,355 | - | 1,401,465 | - | 2220 | Other payables—related parties (Note 7) | 3,111,935 | - | 2,088,246 | 1 |
| 130X | Inventories (Note 6(e)) | 17,297,286 | 4 | 24,212,141 | 5 | 2240 | Current lease liabilities (Note 6(m)) | 91,733 | - | 89,879 | - |
| 1470 | Other current assets | 4,112,131 | 1 | 5,383,778 | 1 | 2322 | Current portion of bonds payable (Note 6(k)) | 6,524,036 | 1 | 7,799,374 | 2 |
| Total current assets | 155,423,904 | 28 | 105,864,994 | 21 | 2399 | Current portion of long-term borrowings (Notes 6(k) and 8) | 4,044,727 | 1 | 20,545,603 | 4 | |
| Non-current assets: | Other current liabilities (including related parties) (Notes 6(f) and 7) | 9,481,881 | 2 | 11,752,166 | 2 | ||||||
| 1517 | Non-current financial assets at fair value through other comprehensive income (Note 6(b)) | 19,332,489 | 4 | 20,027,034 | 4 | 2530 | Total current liabilities | 75,827,629 | 14 | 116,630,660 | 24 |
| 1550 | Investments accounted for using equity method (Note 6(f)) | 243,822,403 | 44 | 233,299,209 | 47 | 2540 | Bonds payable (Note 6(l)) | 43,124,176 | 8 | 39,651,972 | 8 |
| 1600 | Property, plant and equipment (Notes 6(g), 7 and 8) | 123,711,111 | 22 | 121,422,368 | 25 | 2570 | Long-term debts (Notes 6(k) and 8) | 33,390,617 | 6 | 11,602,608 | 2 |
| 1755 | Right-of-use assets (Note 6(h)) | 2,760,709 | - | 2,914,492 | 1 | 2580 | Deferred tax liabilities (Note 6(o)) | 17,108,671 | 3 | 17,328,580 | 4 |
| 1780 | Intangible assets | 577,262 | - | 622,209 | - | 2622 | Non-current lease liabilities (Note 6(n)) | 1,718,188 | - | 1,809,921 | - |
| 1840 | Deferred tax assets (Note (o)) | 895,639 | - | 987,207 | - | 2640 | Long-term payables to related parties (Note 7) | 20,434,700 | 4 | 17,472,273 | 3 |
| 1900 | Other non-current assets (Note 8) | 10,978,471 | 2 | 11,692,565 | 2 | 2670 | Net defined benefit liabilities-non-current (Note 6(n)) | 2,315,539 | - | 2,887,969 | 1 |
| Total non-current assets | 402,078,104 | 72 | 390,965,084 | 79 | Other non-current liabilities | 560,059 | - | 265,160 | - | ||
| Total non-current liabilities | 118,451,950 | 21 | 91,218,483 | 18 | |||||||
| Total liabilities | 194,270,579 | 33 | 207,849,143 | 42 | |||||||
| Equity (Note 6(p)): | |||||||||||
| 3110 | Ordinary shares | 63,657,408 | 12 | 63,657,408 | 13 | ||||||
| 3200 | Capital surplus | 11,869,342 | 2 | 11,842,112 | 2 | ||||||
| Retained earnings: | |||||||||||
| 3310 | Legal reserve | 79,259,054 | 14 | 79,259,054 | 16 | ||||||
| 3320 | Special reserve | 87,681,152 | 16 | 87,681,152 | 18 | ||||||
| 3350 | Unappropriated retained earnings | 30,085,826 | 5 | 34,479,977 | 7 | ||||||
| Total retained earnings | 197,026,032 | 35 | 201,420,183 | 41 | |||||||
| 3400 | Other equity interest | 90,669,647 | 16 | 12,061,232 | 2 | ||||||
| Total equity | 363,222,429 | 65 | 288,980,935 | 58 | |||||||
| Total liabilities and equity | $ 557,502,008 | 100 | 496,830,078 | 100 |
See accompanying notes to consolidated financial statements.
(English Translation of Financial Statements and Report Originally Issued in Chinese)
FORMOSA PLASTICS CORPORATION
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: | Current liabilities: | ||||||||||
| 1100 | Cash and cash equivalents (Note 6(a)) | $ 2,742,983 | 1 | 3,671,107 | 1 | 2100 | Short-term borrowings (Note 6(i)) | $ 26,758,400 | 5 | 25,977,400 | 6 |
| 1110 | Current financial assets at fair value through profit or loss (Note 6(b)) | 1,849,655 | - | 1,846,201 | - | 2110 | Short-term notes and bills payable (Note 6(j)) | 9,393,667 | 2 | 26,034,782 | 6 |
| 1120 | Current financial assets at fair value through other comprehensive income (Note 6(b)) | 106,287,867 | 21 | 38,771,885 | 8 | 2120 | Current financial liabilities at fair value through profit or loss (Note 6(b)) | 226,726 | - | - | - |
| 1170 | Notes and accounts receivable, net (Notes 6(c) and (r)) | 6,608,227 | 1 | 7,777,357 | 2 | 2130 | Current contract liabilities (Note 6(r)) | 245,446 | - | 673,723 | - |
| 1180 | Accounts receivable - related parties, net (Notes 6(c), (r) and 7) | 1,817,601 | - | 3,058,630 | 1 | 2170 | Accounts payable | 3,835,336 | 1 | 5,706,877 | 1 |
| 1200 | Other receivables (Note 6(d)) | 1,950,098 | - | 1,583,865 | - | 2180 | Accounts payable - related parties (Note 7) | 4,424,950 | 1 | 3,979,984 | 1 |
| 1210 | Other receivables - related parties (Notes 6(d) and 7) | 1,135,614 | - | 6,894,963 | 2 | 2200 | Other payables | 133,768 | - | 993,016 | - |
| 130X | Inventories (Note 6(r)) | 10,354,546 | 2 | 14,233,940 | 3 | 2220 | Other payables - related parties (Note 7) | 1,062,103 | - | 1,201,190 | - |
| 1470 | Other current assets | 3,260,198 | 1 | 4,333,222 | 1 | 2280 | Current lease liabilities (Note 6(m)) | 91,733 | - | 89,879 | - |
| Total current assets | 136,006,789 | 26 | 82,171,170 | 18 | 2322 | Current portion of bonds payable (Note 6(l)) | 6,524,036 | 1 | 7,799,374 | 2 | |
| Non-current assets: | 2399 | Current portion of long-term borrowings (Notes 6(k) and 8) | 4,000,000 | 1 | 20,500,000 | 4 | |||||
| 1517 | Non-current financial assets at fair value through other comprehensive income (Note 6(b)) | 19,242,792 | 4 | 19,906,797 | 4 | Other current liabilities | 7,304,378 | 1 | 8,424,765 | 2 | |
| Total current liabilities | 64,000,543 | 12 | 101,380,990 | 22 | |||||||
| 1550 | Investments accounted for using equity method (Note 6(f)) | 291,926,580 | 56 | 286,706,647 | 62 | Non-Current liabilities: | |||||
| 1600 | Property, plant and equipment (Notes 6(g), 7 and 8) | 64,898,258 | 13 | 61,195,897 | 13 | 2530 | Bonds payable (Note 6(l)) | 43,124,176 | 8 | 39,651,972 | 8 |
| 1755 | Right-of-use assets (Note 6(b)) | 1,758,081 | - | 1,863,208 | 1 | 2540 | Long-term debts (Notes 6(k) and 8) | 30,484,230 | 6 | 8,000,000 | 2 |
| 1780 | Intangible assets | 124,762 | - | 124,762 | - | 2570 | Deferred tax liabilities (Note 6(o)) | 17,106,440 | 3 | 17,528,381 | 4 |
| 1840 | Deferred tax assets (Note 6(o)) | 713,981 | - | 836,465 | - | 2580 | Non-current lease liabilities (Note 6(m)) | 1,718,188 | - | 1,809,921 | - |
| 1900 | Other non-current assets (Note 8) | 7,371,108 | 1 | 7,548,036 | 2 | 2640 | Net defined benefit liabilities-non-current (Note 6(n)) | 2,315,539 | 1 | 2,887,969 | 1 |
| Total non-current assets | 386,035,562 | 74 | 378,181,812 | 82 | Other non-current liabilities | 70,806 | - | 112,814 | - | ||
| Total non-current liabilities | 94,819,379 | 18 | 69,991,057 | 15 | |||||||
| Total liabilities | 158,819,922 | 30 | 171,372,047 | 37 | |||||||
| Equity (Note 6(p)): | |||||||||||
| 3110 | Ordinary shares | 63,657,408 | 12 | 63,657,408 | 14 | ||||||
| 3200 | Capital surplus | 11,869,342 | 2 | 11,842,112 | 3 | ||||||
| Retained earnings: | |||||||||||
| 3310 | Legal reserve | 79,259,054 | 15 | 79,259,054 | 17 | ||||||
| 3320 | Special reserve | 87,681,152 | 17 | 87,681,152 | 19 | ||||||
| 3350 | Unappropriated retained earnings | 30,085,826 | 6 | 34,479,977 | 7 | ||||||
| Total retained earnings | 197,026,032 | 38 | 201,420,183 | 43 | |||||||
| 3400 | Other equity interest | 90,669,647 | 18 | 12,061,232 | 3 | ||||||
| Total equity | 363,222,429 | 70 | 288,980,935 | 63 | |||||||
| Total liabilities and equity | $ 522,042,351 | 100 | 460,352,982 | 100 |
See accompanying notes to financial statements.
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 owners of parent | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Retained earnings | Total other equity interest | |||||||||
| Ordinary shares | Capital surplus | 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 | Gains (losses) on hedging instruments | Revaluation surplus | Total equity | |
| Balance on January 1, 2024 | $ 63,657,408 | 11,829,847 | 78,532,046 | 87,559,869 | 44,712,409 | (1,924,536) | 62,058,632 | (68,123) | 1,002,593 | 347,360,145 |
| Net loss for the period | - | - | - | - | (1,231,765) | - | - | - | - | (1,231,765) |
| Other comprehensive income for the period | - | - | - | - | 579,490 | 9,260,072 | (58,245,461) | 42,356 | - | (48,363,543) |
| Total comprehensive income for the period | - | - | - | - | (652,275) | 9,260,072 | (58,245,461) | 42,356 | - | (49,595,308) |
| Appropriation and distribution of retained earnings: | ||||||||||
| Legal reserve appropriated | - | - | 727,008 | - | (727,008) | - | - | - | - | - |
| Special reserve appropriated | - | - | - | 121,283 | (121,283) | - | - | - | - | - |
| Cash dividends of ordinary share | - | - | - | - | (6,365,741) | - | - | - | - | (6,365,741) |
| Changes in equity of associates and joint ventures accounted for using equity method | - | - | - | - | (2,430,426) | - | - | - | - | (2,430,426) |
| Disposal of investments accounted for using equity method | - | - | - | - | 27,479 | - | (27,479) | - | - | - |
| Other changes in capital surplus: | ||||||||||
| Changes in equity of associates and joint ventures accounted for using equity method | - | 139 | - | - | - | - | - | - | - | 139 |
| Other changes in capital surplus | - | 12,126 | - | - | - | - | - | - | - | 12,126 |
| Disposal of investments in equity instruments designated at fair value through other comprehensive income | - | - | - | - | 36,822 | - | (36,822) | - | - | - |
| Balance on December 31, 2024 | 63,657,408 | 11,842,112 | 79,259,054 | 87,681,152 | 34,479,977 | 7,335,536 | 3,748,870 | (25,767) | 1,002,593 | 288,980,935 |
| Net loss for the period | - | - | - | - | (10,048,659) | - | - | - | - | (10,048,659) |
| Other comprehensive income for the period | - | - | - | - | 467,223 | (5,878,520) | 92,774,950 | 21,821 | - | 87,385,474 |
| Total comprehensive income for the period | - | - | - | - | (9,581,436) | (5,878,520) | 92,774,950 | 21,821 | - | 77,336,815 |
| Appropriation and distribution of retained earnings: | ||||||||||
| Cash dividends of ordinary share | - | - | - | - | (3,182,870) | - | - | - | - | (3,182,870) |
| Changes in equity of associates and joint ventures accounted for using equity method | - | - | - | - | 60,319 | - | - | - | - | 60,319 |
| Other changes in capital surplus: | ||||||||||
| Changes in equity of associates and joint ventures accounted for using equity method | - | 738 | - | - | - | - | - | - | - | 738 |
| Other changes in capital surplus | - | 26,492 | - | - | - | - | - | - | - | 26,492 |
| Disposal of investments in equity instruments designated at fair value through other comprehensive income | - | - | - | - | 8,309,836 | - | (8,309,836) | - | - | - |
| Balance on December 31, 2025 | $ 63,657,408 | 11,869,342 | 79,259,054 | 87,681,152 | 30,085,826 | 1,457,016 | 88,213,984 | (3,946) | 1,002,593 | 363,222,429 |
(English Translation of Parent Company Only Financial Statements and Report Originally Issued in Chinese)
FORMOSA PLASTICS CORPORATION
Statements of Changes in Equity
For the years ended December 31, 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars)
| Retained earnings | Total other equity interest | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Ordinary shares | Capital surplus | 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 | Gains (losses) on hedging instruments | Revaluation surplus | |
| Balance on January 1, 2024 | $ 63,657,408 | 11,829,847 | 78,332,046 | 87,559,869 | 44,712,409 | (1,924,336) | 62,038,632 | (68,123) | 1,002,593 |
| Net loss for the period | - | - | - | - | (1,231,765) | - | - | - | (1,231,765) |
| Other comprehensive income for the period | - | - | - | - | 579,490 | 9,260,072 | (58,245,461) | 42,356 | (48,363,543) |
| Total comprehensive income for the period | - | - | - | - | (652,275) | 9,260,072 | (58,245,461) | 42,356 | (49,595,308) |
| Appropriation and distribution of retained earnings: | |||||||||
| Legal reserve appropriated | - | - | 727,008 | - | (727,008) | - | - | - | - |
| Special reserve appropriated | - | - | - | 121,283 | (121,283) | - | - | - | - |
| Cash dividends of ordinary share | - | - | - | - | (6,365,741) | - | - | - | (6,365,741) |
| Changes in equity of associates and joint ventures accounted for using equity method | - | - | - | - | (2,430,426) | - | - | - | (2,430,426) |
| Disposal of investments accounted for using equity method | - | - | - | - | 27,479 | - | (27,479) | - | - |
| Other changes in capital surplus: | |||||||||
| Changes in equity of associates and joint ventures accounted for using equity method | - | 139 | - | - | - | - | - | - | 139 |
| Other changes in capital surplus | - | 12,126 | - | - | - | - | - | - | 12,126 |
| Disposal of investments in equity instruments designated at fair value through other comprehensive income | - | - | - | - | 36,822 | - | (36,822) | - | - |
| Balance on December 31, 2024 | 63,657,408 | 11,842,112 | 79,259,054 | 87,681,152 | 34,479,977 | 7,335,536 | 3,748,870 | (25,767) | 1,002,593 |
| Net loss for the period | - | - | - | - | (10,048,659) | - | - | - | (10,048,659) |
| Other comprehensive income for the period | - | - | - | - | 467,223 | (5,878,520) | 92,774,950 | 21,821 | 87,385,474 |
| Total comprehensive income for the period | - | - | - | - | (9,581,436) | (5,878,520) | 92,774,950 | 21,821 | 77,336,815 |
| Appropriation and distribution of retained earnings: | |||||||||
| Cash dividends of ordinary share | - | - | - | - | (3,182,870) | - | - | - | (3,182,870) |
| Changes in equity of associates and joint ventures accounted for using equity method | - | - | - | - | 60,319 | - | - | - | 60,319 |
| Other changes in capital surplus | - | - | - | - | - | - | - | - | - |
| Changes in equity of associates and joint ventures accounted for using equity method | - | 738 | - | - | - | - | - | - | 738 |
| Other changes in capital surplus | - | 26,492 | - | - | - | - | - | - | 26,492 |
| Disposal of investments in equity instruments designated at fair value through other comprehensive income | - | - | - | - | 8,309,836 | - | (8,309,836) | - | - |
| Balance on December 31, 2025 | $ 63,657,408 | 11,869,342 | 79,259,054 | 87,681,152 | 30,085,826 | 1,457,016 | 88,213,984 | (3,946) | 1,002,593 |
Consolidated Statements of Cash Flows
| 2025 | 2024 | |
|---|---|---|
| Cash flows from (used in) operating activities: | ||
| Loss before tax | $ (10,215,000) | (2,414,233) |
| Adjustments: | ||
| Adjustments to reconcile gain (loss): | ||
| Depreciation expenses | 9,577,569 | 8,237,880 |
| Amortization expenses | 997,468 | 757,827 |
| Expected credit losses | 70,481 | 145,623 |
| Interest expenses | 3,195,631 | 3,236,845 |
| Net loss (gain) on financial assets and liabilities at fair value through profit or loss | 223,272 | (204,603) |
| Interest income | (342,365) | (766,263) |
| Dividend income | (981,192) | (1,056,035) |
| Share of profit of associates and joint ventures accounted for using equity method | (405,584) | (1,829,447) |
| Gain on disposal of property, plant and equipment | (690) | (61,970) |
| Gain on disposal of investments accounted for using equity method | (56,922) | (3,933) |
| Unrealized foreign exchange gains | (118,812) | (144,409) |
| Total adjustments to reconcile gain | 12,158,856 | 8,311,515 |
| Changes in operating assets and liabilities: | ||
| Changes in operating assets: | ||
| Notes receivable | (149,491) | 361,812 |
| Accounts receivable | 1,419,642 | (963,239) |
| Accounts receivable - related parties | 1,187,412 | 395,915 |
| Other receivables | (1,520,311) | 764,842 |
| Other receivables - related parties | 178,853 | 256,408 |
| Inventories | 5,374,669 | (2,234,653) |
| Other current assets | 2,976,328 | 1,301,461 |
| Total changes in operating assets | 9,067,102 | (117,454) |
| Changes in operating liabilities: | ||
| Notes and accounts payable | (3,493,537) | 2,210,844 |
| Accounts payable - related parties | 130,893 | (522,859) |
| Other payables | 236,110 | (444,512) |
| Other payables - related parties | 1,023,688 | 76,567 |
| Other current liabilities (including contract liabilities) | (2,707,367) | (2,046,702) |
| Net defined benefit liabilities | (332,911) | (335,232) |
| Total changes in operating liabilities | (5,143,124) | (1,061,894) |
| Total changes in operating assets and liabilities | 3,923,978 | (1,179,348) |
| Total adjustments | 16,082,834 | 7,132,167 |
| Cash inflow from operations | 5,867,834 | 4,717,934 |
| Interest received | 304,307 | 934,568 |
| Dividends received | 3,440,183 | 9,051,148 |
| Interest paid | (2,976,905) | (3,221,886) |
| Income taxes paid | (16,331) | (20,376) |
| Net cash flows from operating activities | 6,619,088 | 11,461,388 |
| Cash flows from (used in) investing activities: | ||
| Proceeds from disposal of financial assets at fair value through other comprehensive income | 8,270,922 | - |
| Proceeds from capital reduction of financial assets at fair value through other comprehensive income | 19,561 | 3,484 |
| Acquisition of investments accounted for using equity method | (523,000) | (20,177,711) |
| Proceeds from disposal of investments accounted for using equity method | 945,872 | 3,933 |
| Acquisition of property, plant and equipment | (14,548,253) | (16,126,503) |
| Proceeds from disposal of property, plant and equipment | 18,467 | 114,615 |
| Acquisition of intangible assets | (12,415) | (12,942) |
| (Increase) decrease in other receivables - related parties | (28,632) | 17,130,376 |
| Acquisition of right-of-use assets | - | (58,554) |
| (Increase) Decrease in other non-current assets | (238,956) | 1,312,806 |
| Net cash flows used in investing activities | (6,096,434) | (17,810,496) |
| Cash flows from (used in) financing activities: | ||
| Increase in short-term borrowings | 220,975,483 | 252,138,319 |
| Decrease in short-term borrowings | (221,303,164) | (242,951,718) |
| Decrease in short-term notes and bills payable | (16,700,000) | (4,650,000) |
| Proceeds from issuing bonds | 10,000,000 | 14,600,000 |
| Repayments of bonds | (7,800,000) | (5,500,000) |
| Proceeds from long-term debts | 20,501,363 | 12,000,000 |
| Repayments of long-term debts | (15,011,887) | (2,953,791) |
| Increase in other payables - related parties and long-term payables to related parties | 3,643,883 | 1,053,368 |
| Payment of lease liabilities | (89,879) | (79,458) |
| Increase in other non-current liabilities | 79,261 | 279,276 |
| Cash dividends paid | (3,156,378) | (6,353,614) |
| Net cash flows (used in) from financing activities | (8,861,318) | 17,582,382 |
| Effect of exchange rate changes on cash and cash equivalents | 770,386 | 819,785 |
| Net (decrease) increase in cash and cash equivalents | (7,568,278) | 12,053,059 |
| Cash and cash equivalents at the beginning of period | 18,200,100 | 6,147,041 |
| Cash and cash equivalents at the end of period | $ 10,631,822 | 18,200,100 |
(English Translation of and Report Originally Issued in Chinese)
FORMOSA PLASTICS CORPORATION
Statements of Cash Flows
| 2025 | 2024 | |
|---|---|---|
| Cash flows from (used in) operating activities: | ||
| Loss before tax | $ (10,200,338) | (2,480,381) |
| Adjustments: | ||
| Adjustments to reconcile gain (loss): | ||
| Depreciation expenses | 5,371,055 | 4,929,985 |
| Amortization expenses | 255,818 | 292,867 |
| Expected credit losses | 15,289 | 123,435 |
| Interest expenses | 2,088,847 | 1,835,331 |
| Net loss (gain) on financial assets and liabilities at fair value through profit or loss | 223,272 | (204,603) |
| Interest income | (237,374) | (272,860) |
| Dividend income | (981,192) | (1,056,035) |
| Share of loss of associates and joint ventures accounted for using equity method | 3,786,636 | 1,862,382 |
| Gains on disposal of property, plant and equipment | (15,293) | (82,327) |
| Loss (gain) on disposal of investments accounted for using equity method | 33,771 | (3,933) |
| Realized gains from sales | (5,429) | (15,712) |
| Unrealized foreign exchange gains | (118,812) | (144,409) |
| Total adjustments to reconcile gain (loss) | 10,416,588 | 7,264,121 |
| Changes in operating assets and liabilities: | ||
| Changes in operating assets: | ||
| Notes and accounts receivable | 1,269,149 | (887,082) |
| Accounts receivable - related parties | 1,241,029 | 937,122 |
| Other receivables | (165,684) | 710,911 |
| Other receivables - related parties | 465,170 | 363,182 |
| Inventories | 3,879,394 | (260,759) |
| Other current assets | 2,377,726 | 907,222 |
| Total changes in operating assets | 9,066,784 | 1,770,596 |
| Changes in operating liabilities: | ||
| Accounts payable | (1,870,399) | 1,600,015 |
| Accounts payable - related parties | 444,966 | (336,591) |
| Other payables | (1,004,761) | (519,055) |
| Other payables - related parties | (139,087) | 16,760 |
| Other current liabilities (including contract liabilities) | (1,640,405) | (1,929,042) |
| Net defined benefit liabilities | (332,911) | (335,232) |
| Total changes in operating liabilities | (4,542,597) | (1,503,145) |
| Total changes in operating assets and liabilities | 4,524,187 | 267,451 |
| Total adjustments | 14,940,775 | 7,531,572 |
| Cash inflow from operations | 4,740,437 | 5,051,191 |
| Interest received | 198,427 | 281,411 |
| Dividends received | 9,123,518 | 9,051,148 |
| Interest paid | (1,968,162) | (1,703,832) |
| Net cash flows from operating activities | 12,094,220 | 12,679,918 |
| Cash flows from (used in) investing activities: | ||
| Proceeds from disposal of financial assets at fair value through other comprehensive income | 8,270,922 | - |
| Proceeds from capital reduction of financial assets at fair value through other comprehensive income | 19,561 | 3,484 |
| Acquisition of investments accounted for using equity method | (523,000) | (20,177,711) |
| Proceeds from disposal of investments accounted for using equity method | 945,872 | 3,933 |
| Acquisition of property, plant and equipment | (10,277,999) | (11,631,900) |
| Proceeds from disposal of property, plant and equipment | 17,665 | 111,571 |
| (Increase) decrease in other receivables - related parties | (387,500) | 2,289,727 |
| Increase in other non-current assets | (66,385) | (211,307) |
| Net cash flows used in investing activities | (2,000,864) | (29,612,203) |
| Cash flows from (used in) financing activities: | ||
| Increase in short-term borrowings | 213,496,400 | 229,348,654 |
| Decrease in short-term borrowings | (212,715,400) | (217,862,854) |
| Decrease in short-term notes and bills payable | (16,700,000) | (4,650,000) |
| Proceeds from issuing bonds | 10,000,000 | 14,600,000 |
| Repayments of bonds | (7,800,000) | (5,500,000) |
| Proceeds from long-term debts | 20,000,000 | 12,000,000 |
| Repayments of long-term debts | (14,000,000) | (2,500,000) |
| Payment of lease liabilities | (89,879) | (79,458) |
| Decrease in other non-current liabilities | (57,646) | (13,370) |
| Cash dividends paid | (3,156,378) | (6,353,614) |
| Net cash flows (used in) from financing activities | (11,022,903) | 18,989,358 |
| Effect of exchange rate changes on cash and cash equivalents | 1,425 | 23,117 |
| Net (decrease) increase in cash and cash equivalents | (928,124) | 2,080,190 |
| Cash and cash equivalents at beginning of period | 3,671,107 | 1,590,917 |
| Cash and cash equivalents at end of period | $ 2,742,983 | 3,671,107 |
Formosa Plastics Corporation
Statement of Profits Distribution
For the year of 2025
Unit : NTD
| Items | Amount | |
|---|---|---|
| Available for Distribution: | ||
| 1.Unappropriated retained earnings of previous years | 31,297,486,033 | |
| 2.Net loss after tax of current year | -10,048,659,468 | |
| 3.Other loss items adjusted to the current year’s undistributed earnings other than after-tax net income for the period | 8,837,377,959 | |
| Total | 30,086,204,524 | |
| Distribution Items: | ||
| 1.Distribution of dividends in cash ( NTD 0.5 per share) | 3,182,870,391 | |
| 2.Unappropriated retained earnings carried forward to next year | 26,903,334,133 | |
| Total | 30,086,204,524 | |
| Explanation | 1. According Article 40 of the Articles of Incorporation of the Company, the cash dividend distribution is authorized to the Board of Directors and submitted a report to the shareholders’ meeting. | |
| 2. The Company plans to distribute dividends of NTD 0.5 per share for current year; all of which are cash dividends. | ||
| 3. In accordance with the Ministry of Finance directive Tai-Tsai-Shui No. 871941343 dated April 30, 1998, earnings distribution shall adopt the specific identification method. The dividend distribution of NTD 3,182,870,391 this time is derived from undistributed earnings after fiscal year 1998. | ||
| 4. Items other than the net loss after tax for the current period that were transferred to the undistributed earnings of the current year were primarily attributable to the gains on disposal of Financial Assets at Fair Value through Other Comprehensive Income by the Company and its equity-method investees. | ||
| 5. While the distribution of cash dividends to each individual shareholder is less than $1, the distribution will be rounded to the nearest dollar. |