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HOLY STONE — AGM Information 2026
Jun 9, 2026
52259_rns_2026-06-09_6cc3285b-c1a7-4474-80b5-ea2fe85f20fc.pdf
AGM Information
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Holy Stone Enterprise Co., Ltd. ("Company")
Minutes of 2026 Annual General Shareholders Meeting
Translation
This document is prepared in accordance with the Chinese version and is for reference only. If there is any inconsistency or ambiguity between the two versions, the Chinese version shall prevail.
Format of Meeting: Physical Meeting
Time: 09:00a.m., May 25th 2026 (Monday)
Place: Conference Room at 7th floor, No. 17 (Chu Pao Building), Lane 91, Sec. 1, NeiHu Road, Taipei 114, Taiwan
Shareholders Present: Shares represented by shareholders present are 105,390,772 shares (including 30,695,414 shares casted electronically, accounted for 63.53% of total shares 165,890,318 issued.
Chairman: Jing-Rong Tang
Minute Taker: Shu-Ying Chang
Directors present: Jing-Rong Tang, Fang-Ming Lo, Shih-Yun Shen, Shao-Kuo Huang, Tang-Ming Wu, Ken-Yi Cheng (Chairman of the Audit Committee), Chu-Yang Chien, Jen-Wei Ko, Jui-Chu Li
Attendance: Pei-Chi Chen, CPA, KPMG
Fan-Chuan Shi, Attorney, STRING Law Firm
I. The aggregate shareholding of the shareholders present in person or casted electronically constituted a quorum. The Chairman called the meeting to order.
A. Report Items
(1) Business Report of 2025 (attachment 1)
(2) Audit Committee Audit Report (attachment 2)
(3) Report the Distribution of 2025 Remuneration for Employees and Directors
The board of directors meeting on March 4th 2026, passed the remuneration for employee of NT$155,296,000 (including NT$16,306,000 thousand in remuneration for entry-level employees), and remuneration for directors of NT$28,236,000, both distributed via cash.
(4) Report 2025 Earnings Distribution and Cash Dividends
i. The company has passed the resolution of 2025 earnings distribution on March 4th, 2026, cash dividend distribution totaled NT$962,163,844, which is NT$5.8 per share distributed from earnings. Cash dividend distribution were distributed up to one NT dollar, if the distribution is under one NT dollar, it will be accounted as other revenue.
ii. Board of Directors will convene a separate meeting to make a resolution on the record date for cash dividends and related matters concerning the distribution of cash dividends.
iii. If there is a change in the number of ordinary shares outside of the company, or when there is a
change in shareholders' dividend rate that requires revision, chairman of the board will take full authority.
[Meeting Proceedings]
Summary of Shareholder Remarks: Shareholder Account No.30739, No.185218 and No.90226694 raised inquiries regarding the Company's operational development and corporate strategies (including business, finance, capital expenditure, and production capacity). The Chairman addressed and responded to the inquiries.
B. Acknowledgement Items
I. (Proposed by the Board of Directors)
To approve 2025 Business Report and Financial Statements
Explanation:
(1) 2025 Financial Statement of the company was audited by accountants Pei-Chi Chen and Chi-Long Yu of KPMG, and was issued an audit report.
(2) The 2025 Financial Statement and Business Report were audited by the Audit Committee and was issued a report.
(3) Attachments
i. Business Report (attachment 1)
ii. CPA Audit Report (attachment 3&4)
iii. Financial Statements (attachment 3&4)
iv. Audit Committee Audit Report (attachment 2)
(4) Please approve
[Meeting Proceedings]
Summary of Shareholder Remarks: Shareholder Account No. 30739 raised inquiries regarding the Company's operational development, corporate strategies, and financial reports. The Chairman and designated financial executive addressed and responded to the inquiries.
Resolution: Voting Results are shown below:
Shares represented at the time of voting: 105,384,772 (including 30,695,414 shares casted electronically)
| Voting Results* | % of the total represented share present |
|---|---|
| Votes in favor: 94,389,782 votes (including electronic votes 19,717,437) | 89.56% |
| Votes against: 8,803 votes (including electronic votes 8,803) | 0.00% |
| Votes invalid: 0 vote | 0.00% |
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| Voting Results* | % of the total represented share present |
|---|---|
| (electronic votes 0) | |
| Votes abstained/Votes Not Cast: 10,986,187 votes | |
| (including electronic votes 10,969,174) | 10.42% |
The resolution was passed by initial vote.
II. (Proposed by the Board of Directors)
To approve the Earning Distribution of 2025
Explanation:
(1) To draft the distribution of earnings according to company’s Articles of Association. (attachment 5)
(2) The distribution of earnings is reviewed by the Audit Committee and issued into report. (attachment 2)
(3) Please approve
[Meeting Proceedings]
Summary of Shareholder Remarks: Shareholder Account No.185218 inquired about the company’s dividend policy and distribution status. The Chairman provided explanations and responses accordingly.
Resolution: Voting Results are shown below :
Shares represented at the time of voting : 105,384,772 (including 30,695,414 shares casted electronically)
| Voting Results* | % of the total represented share present |
|---|---|
| Votes in favor: 94,493,119 votes | |
| (including electronic votes 19,820,774) | 89.66% |
| Votes against: 9,447 votes | |
| (including electronic votes 9,447) | 0.00% |
| Votes invalid: 0 vote | |
| (electronic votes 0) | 0.00% |
| Votes abstained/Votes Not Cast: 10,882,206 votes | |
| (including electronic votes 10,865,193) | 10.32% |
The resolution was passed by initial vote.
Chairman: Jing-Rong Tang
Minute Taker: Shu-Ying Chang
C. Discussion Items
I. (Proposed by the Board of Directors)
To revise Articles of Association
Explanation:
(1) Amendments to the Company's Articles of Association are proposed in compliance with TWSE Order No. 11200147631 (August 23, 2023), which added Paragraph 3 to Article 4 of the 'Directions for Compliance Requirements on the Assignment and Exercise of Powers of Boards of Directors of TWSE Listed Companies'.
(2) Revision chart (attachment 6)
(3) Please vote for the abovementioned item.
Resolution: Voting Results are shown below :
Shares represented at the time of voting : 105,384,772 (including 30,695,414 shares casted electronically)
| Voting Results* | % of the total represented share present |
|---|---|
| Votes in favor: 94,480,729 votes | |
| (including electronic votes 19,808,384) | 89.65% |
| Votes against: 11,668 votes | |
| (including electronic votes 11,668) | 0.01% |
| Votes invalid: 0 vote | |
| (electronic votes 0) | 0.00% |
| Votes abstained/Votes Not Cast: 10,892,375 votes | |
| (including electronic votes 10,875,362) | 10.33% |
The resolution was passed by initial vote.
D. Special Motion: None
Shareholder Account No. 30739 provided recommendations to the Company; no proposals were put forward for discussion and voting.
E. Adjournment (10:17 a.m)
These minutes contain only the essential points of the meeting proceedings. For comprehensive details, the official audio and video recordings of the meeting shall prevail.
【Attachment 1】
Holy Stone Enterprise Co., Ltd.
2025 Business Report
2025 is a prolific year for Holy Stone; driven by the booming development of AI industry and a rebound in consumer market, whether in production of passive components or sales of distributed products, both have been presented with different opportunities for growth. Passive components cooperated with clients and market demand, successfully developed niche products that have begun to generate revenue contribution; meanwhile, our distributed products also capitalizing on market opportunities, ensuring the timely supply of products to meet customers' needs. Driven by the collective efforts of the entire company, we have achieved a significant boost in overall operational efficiency. An overview of the business performance for 2025 and the business plan for 2026 is as follows:
1. 2025 Business Results
1.1 Business Result: consolidated revenue of 2025 totaled NT$ (same below) 13.43 billion, gross profit NT$ 2.52 billion, gross margin 18.77%, net profit attributable to the parent company totaled NT$ 1.09 billion, increased 12.17% YoY. Earnings per share totaled NT$ 6.58.
1.2 Budget Implementation: The company did not publish any forms of finance forecast for 2025; therefore, no act of disclosure is required.
1.3 Financial Income and Expenditure, Profitability Analysis: For financial overview, please refer to the financial statements announced on Market Observation Post System (MOPS).
1.4 Research and Development Status: To seize growth opportunities in the AI market, Holy Stone maintains ongoing investment in the R&D and manufacturing of critical MLCC materials, while focusing on the development of niche products required for AI server HVDC power structures. Total expenditure of research and development above for 2025 was NT$173 million.
2. Summary of 2026 Annual Business Plan
2.1 Operating Strategy: Holy Stone believes in programmatic, innovative and mutually beneficial business philosophy, continue to cultivate in manufacturing and strengthening product agency continuously.
Deep Cultivation in Manufacturing: house brand products are committed in developing new application fields based on industry trends, focusing on niche products continuously, deepening our presence in emerging markets; such as AI, automotive, and new network applications markets. Product Agency Strengthening: The company mainly agents for products such as communication device, automotive and consumer electronics, we will continue to assist customers in designing and developing products, enhancing the competitiveness of agency products and maintaining stable product supply.
2.2 Important Production and Sales Management: Expanding the production and sales of niche products is the most important development strategy for the company, and a critical key to
support its sustained growth. Through the development of materials and technologies, as well as the enhancement of manufacturing capabilities, we have successfully established a presence in key areas such as AI server power supplies. Continuously enhance plant capacity in 2026, in order to align with customer requirements.
3. Influence of External Competitive Environment, Regulatory Environment and Overall Business Environment
Holy Stone firmly believes that besides pursuing profit and growth, synchronize ESG implementation is also essential for becoming a sustainable company. Regardless of the company's governance association, or the solutions for climate change, it's all been implemented in our daily operating activities. The company has followed ISO 14067 : 2018 standard to accomplished Product Carbon Footprint Certification. By understanding product carbon emissions, effective carbon reduction plans can be formulated. In terms of energy management, the second stage of solar photovoltaic (PV) installation plan is currently underway. Beyond routine energy conservation measures, using self-issue and self-use green electricity to reduce energy consumption and greenhouse gas emissions. Regarding water and waste management, we strive to maximize effectiveness of resource circulation and reuse, in pursuit of environmental sustainability goals. Additionally, Holy Stone foundation has long been committed to public welfare initiatives, reaching out to those in need with practical actions, and been actively engaged in our society. These ESG performance highlights will be presented to stakeholders through sustainability report. Looking ahead, we will continue to prioritize ESG integration as we strive toward the goal of sustainable operations.
Last but not least, the company would like to express our appreciation to our customers, suppliers, shareholders and the society for the unwavering long-term support; we also thank each and every employee for their contribution to the company. We hope for the best in the years to come.
Chairman: Jing-Rong Tang
President: Jing-Rong Tang
Accountant Manager: Shu-Ying Chang
【Attachment 2】
Holy Stone Enterprise Co., Ltd.
Audit Committee’s Audit Report
The Board of Directors has prepared the Company’s 2025 Business Report, Financial Statements and Proposal for Earning Distributions. The Financial Statements have been audited and certified by Pei-Chi Chen CPA and Chi-Long Yu CPA of KPMG and audit reports regarding the Financial Statements have been issued. The Business Report, Financial Statements and Proposal for Earning Distributions have been reviewed and determined to be correct and accurate by the Audit Committee of Holy Stone Enterprise Company Limited. In accordance to Article 14-4 of the Securities and Exchange Act and Article 219 of the Company Act, we hereby, submit this report.
Holy Stone’s Annual Shareholders Meeting, 2026
Audit Committee of Holy Stone Enterprise Co., Ltd.
Chairman of Audit Committee: Ken-Yi Cheng
March 4th, 2026
[Attachment 3]
Independent Auditors' Report
To the Board of Directors of Holy Stone Enterprise Co., Ltd.:
Opinion
We have audited the financial statements of Holy Stone Enterprise Co., Ltd. ("the Company"), which comprise the balance sheets as of December 31, 2025 and 2024, the statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the financial statements, including a summary of material accounting policies.
In our opinion, based on our audits and the report of another auditor (please refer to Other Matter paragraph), the accompanying 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 audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagement of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditor's 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 Account of Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. Based on our audits and the report of another auditor, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis of our opinion.
Other Matter
We did not audit the 2024 financial statements of one of the subsidiaries, which represented the investment in another entity accounted for using the equity method of the Company. Those statements were audited by another auditor, whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the subsidiary, is based solely on the report of another auditor. The investment in the subsidiary accounted for using the equity method constituting 3.49% of total assets at December 31, 2024, and the related share of profit of subsidiaries accounted for using the equity method constituting 3.03% of total profit before tax for the year then ended.
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. We have determined the matters described below to be the
key audit matters to be communicated in our report.
1. Revenue recognition
Please refer to Note (4)(m) “Revenue from contracts with customers” for accounting policy and Note (6)(r) “Revenue from contracts with customers” for details of revenue to the parent company only financial statements.
Description of key audit matter:
The Company engages primarily in the manufacturing and sales of MLCC, integrated circuits, modules, and other electronic components. The Operating Revenue is the main indicator for the investor to evaluate the financial and business performance of the Company. Therefore, it has been identified as a key audit matter.
Matter that addressed in our audit:
Regarding the key audit matter mentioned above, our key audit procedures include understanding the design and implementation of internal control over revenue recognition and verifying the compliance of accounting policy; analyzing the changes in sales revenue from top ten clients and comparing them with those of the same period in the previous year to confirm whether or not there are significant exceptions or irregular transactions exist; examining the vouchers to determine the appropriate cut offs for revenue recognition within selected periods before and after the balance sheet date to evaluate whether the revenue was recorded in the appropriate period.
2. Impairment evaluation of accounts receivable
Please refer to Note (4)(f) “Financial instruments”; Note (5)(a) “Significant accounting assumptions and judgments, and major sources of estimation uncertainty”, and Note (6)(d) “Notes and accounts receivables” to the parent company only financial statements.
Description of key audit matter:
The Company measured its accounts receivable by the recoverable amounts. Impairment evaluation of accounts receivable is one of the key judgmental areas for our audit, particularly in respect of the great influence of given the challenging industry climate. Due to the provision of bad debt allowance that is subject to the management’s judgement, it is uncertain to have enough of information of recoverability before the issuance of the financial statements.
How the matter was addressed in our audit:
Our principal audit procedures included understanding the design and implementation of internal control; assessing the rationality of the provision policy and verifying the compliance of provision policy for accounts receivable allowance; examining the aging analysis table and checking the amount of receivables received after the balance date, as well as discussing with the management to assess the
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whether or not the provision is reasonable; evaluating the adequacy of the Company’s disclosure for bad debt allowance.
3. Inventory valuation
Please refer to Note (4)(g) “Inventories”; Note (5)(b) “Significant accounting assumptions and judgments, and major sources of estimation uncertainty”, and Note (6)(f) “Inventories” to the parent company only financial statements.
Description of key audit matter:
Inventories are measured at the lower of cost and net realizable value in the financial statements. However, with the rapid development of the consumer market and the volatility of sales, that may result in the cost of inventory may exceed its net realizable value. Therefore, it has been identified as a key audit matter.
How the matter was addressed in our audit:
Regarding the key audit matter mentioned above, our audit procedures included evaluating the reasonableness of the Company’s inventory valuation policy and the management’s assumption used when measuring allowance for inventory valuation and obsolescence losses; performing a retrospective review of the Company’s historical accuracy of judgments with reference to inventory valuation and comparing them with the current year’s calculation to evaluate the appropriateness of estimation and assumption used for inventory valuation; assessing the adequacy of the Company’s disclosure for inventories.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance (including the Audit Committee) are responsible for overseeing the Company’s financial reporting process.
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
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free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
- Obtain sufficient and appropriate audit evidence regarding the financial information of the investment in other entities accounted for using the equity method to express an opinion on this financial statement. 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 also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements 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 Chen, Pei Chi. and Yu, Chi Lung.
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 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)
Holy Stone Enterprise Co., Ltd.
Balance Sheet
December 31, 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars)
Assets
Current assets:
1100 Cash and cash equivalents (note (8)(a))
1110 Current financial assets at fair value through profit or loss (note (8)(b))
1150 Notes and accounts receivables, net (notes (8)(d)(r))
1180 Accounts receivable-related parties, net (notes (8)(d)(r) and (7))
1200 Other receivables, net (note (8)(e))
1220 Current tax assets
130X Inventories (note (8)(f))
1410 Prepayments and other current assets
Total current assets
Non-current assets:
1510 Non-current financial assets at fair value through profit or loss (note (8)(b))
1550 Investments accounted for using the equity method (note (8)(g))
1600 Property, plant and equipment (notes (8)(h) and (7))
1755 Right-of-use assets (note (8)(i))
1840 Deferred tax assets (note (8)(e))
1915 Prepayments for business facilities (note (7))
1990 Other non-current assets, others (note (8))
Total non-current assets
| December 31, 2025 | December 31, 2024 | ||
|---|---|---|---|
| Amount | % | Amount | % |
| $ 3,578,610 | 23 | 3,035,216 | 20 |
| 456,109 | 3 | 262,010 | 2 |
| 2,668,332 | 18 | 1,996,705 | 14 |
| 456,564 | 3 | 411,992 | 3 |
| 61,215 | - | 25,758 | - |
| 35,616 | - | 35,616 | - |
| 1,875,225 | 12 | 2,250,010 | 15 |
| 16,289 | - | 12,032 | - |
| 9,147,960 | 59 | 8,029,339 | 54 |
| 9,173 | - | 4,669 | - |
| 2,695,911 | 18 | 2,730,155 | 19 |
| 3,567,322 | 23 | 4,023,642 | 27 |
| 4,679 | - | 2,584 | - |
| 52,203 | - | 55,467 | - |
| 24,778 | - | 1,039 | - |
| 30,851 | - | 23,770 | - |
| 6,384,917 | 41 | 6,841,326 | 46 |
Total assets
| $ 15,532,877 | 100 | 14,870,665 | 100 |
|---|---|---|---|
Liabilities and Equity
Current liabilities:
2100 Short-term borrowings (note (8)(j))
2130 Current contract liabilities (note (8)(r))
2170 Accounts payable
2180 Accounts payable to related parties (note (7))
2200 Other payables (note (8)(k))
2230 Current tax liabilities
2280 Current lease liabilities (note (8)(m))
2322 Long-term borrowings, current portion (note (8)(l))
Total current liabilities
Non-Current liabilities:
2540 Long-term borrowings (note (8)(l))
2570 Deferred tax liabilities (note (8)(o))
2580 Non-current lease liabilities (note (8)(m))
2640 Net defined benefit liability, non-current (note (8)(n))
2670 Other non-current liabilities, others
Total non-current liabilities
Total liabilities
Equity (notes (8)(n)(p)):
3110 Ordinary share
3200 Capital surplus
Retained earnings:
3310 Legal reserve
3320 Special reserve
3350 Unappropriated retained earnings
Total retained earnings
Other equity:
3410 Exchange differences on translation of foreign financial statements
3420 Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income
Total other equity
Total equity
Total liabilities and equity
| December 31, 2025 | December 31, 2024 | ||
|---|---|---|---|
| Amount | % | Amount | % |
| $ 2,047,965 | 13 | 962,626 | 7 |
| 27,288 | - | 16,969 | - |
| 490,753 | 3 | 533,035 | 4 |
| 395,862 | 3 | 359,403 | 2 |
| 826,961 | 5 | 770,709 | 5 |
| 84,497 | 1 | 54,817 | - |
| 2,940 | - | 1,516 | - |
| 667,052 | 4 | 557,500 | 4 |
| 4,543,318 | 29 | 3,256,575 | 22 |
| 721,016 | 5 | 1,510,833 | 10 |
| 102,859 | 1 | 91,656 | 1 |
| 1,769 | - | 1,081 | - |
| 16,139 | - | 27,428 | - |
| - | - | 6 | - |
| 841,789 | 6 | 1,631,004 | 11 |
| 5,385,107 | 35 | 4,887,579 | 33 |
| 1,658,903 | 10 | 1,658,903 | 11 |
| 3,159,439 | 20 | 3,160,144 | 22 |
| 1,821,073 | 12 | 1,723,213 | 11 |
| 94,768 | 1 | 143,624 | 1 |
| 3,526,540 | 22 | 3,391,970 | 23 |
| 5,442,381 | 35 | 5,258,807 | 35 |
| (41,744) | - | (12,734) | - |
| (71,209) | - | (82,034) | (1) |
| (112,953) | - | (94,768) | (1) |
| 10,147,770 | 65 | 9,983,086 | 67 |
| $ 15,532,877 | 100 | 14,870,665 | 100 |
Chairman: Jing-Rong Tang
General Manager: Jing-Rong Tang
Chief Accounting Officer: Shu-Ying Chang
(English Translation of Parent Company Only Financial Statements Originally Issued in Chinese)
Holy Stone Enterprise Co., Ltd.
Statement of Comprehensive Income
For Years Ended December 31, 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Share)
| 2025 | 2024 | ||||
|---|---|---|---|---|---|
| Amount | % | Amount | % | ||
| 4000 | Operating revenue (notes (6)(c) and (7)) | $ 10,773,222 | 100 | 9,691,393 | 100 |
| 5000 | Operating costs (notes (6)(f)(m)(n), (7) and (12)) | 8,839,751 | 82 | 8,019,451 | 83 |
| Gross profit | 1,933,471 | 18 | 1,671,942 | 17 | |
| 5910 | Unrealized profit (loss) from sales | (2,153) | - | 5,507 | - |
| Net gross profit | 1,931,318 | 18 | 1,677,449 | 17 | |
| Operating expenses (notes (6)(m)(n)(s), (7) and (12)): | |||||
| 6100 | Selling and administrative expenses | 755,969 | 7 | 704,400 | 7 |
| 6300 | Research and development expenses | 173,117 | 2 | 195,597 | 2 |
| 6450 | Expected credit loss (gain) (note (6)(d)) | 529 | - | (6,809) | - |
| Total operating expenses | 929,615 | 9 | 893,188 | 9 | |
| Net operating income | 1,001,703 | 9 | 784,261 | 8 | |
| Non-operating income and expenses (note (6)(m)): | |||||
| 7020 | Other gains and losses, net | 124,852 | 1 | 154,049 | 2 |
| 7050 | Finance costs | (97,033) | (1) | (59,988) | (1) |
| 7070 | Share of profit (loss) of subsidiaries and associates accounted for using the equity method | 170,991 | 2 | 230,597 | 3 |
| 7100 | Interest income | 27,741 | - | 22,310 | - |
| Total non-operating income and expenses | 226,551 | 2 | 346,968 | 4 | |
| 7900 | Profit before tax | 1,228,254 | 11 | 1,131,229 | 12 |
| 7950 | Less: Income tax expenses (note (6)(a)) | 136,553 | 1 | 157,955 | 2 |
| Profit | 1,091,701 | 10 | 973,274 | 10 | |
| 8300 | Other comprehensive income (loss): | ||||
| 8310 | Components of other comprehensive income that will not be reclassified to profit or loss: | ||||
| 8311 | Gains (losses) on remeasurements of defined benefit plans | 3,778 | - | 5,098 | - |
| 8316 | Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income | - | - | (5,699) | - |
| 8330 | Share of other comprehensive income of associates accounted for using the equity method, components of other comprehensive income that will not be reclassified to profit or loss | 11,317 | - | 222 | - |
| 8349 | Income tax related to components of other comprehensive income that will not be reclassified to profit or loss | - | - | - | - |
| Total components of other comprehensive income that will not be reclassified to profit or loss | 15,095 | - | (379) | - | |
| 8360 | Components of other comprehensive income (loss) that may not be reclassified to profit or loss | ||||
| 8361 | Exchange differences on translation of foreign financial statements | (29,010) | - | 54,555 | 1 |
| 8399 | Income tax related to components of other comprehensive income that will be reclassified to profit or loss | - | - | - | - |
| Total components of other comprehensive income (loss) that may be reclassified to profit or loss | (29,010) | - | 54,555 | 1 | |
| 8300 | Other comprehensive income, net of tax | (13,915) | - | 54,176 | 1 |
| 8500 | Total comprehensive income | $ 1,077,786 | 10 | 1,027,450 | 11 |
| Earnings per share (note (6)(q)) | |||||
| 9750 | Basic earnings per share (NT dollars) | $ 6.58 | 5.87 | ||
| 9850 | Diluted earnings per share (NT dollars) | $ 6.51 | 5.80 |
(See accompanying notes to parent company only financial statements.)
Chairman: Jing-Rong Tang
General Manager: Jing-Rong Tang
Chief Accounting Officer: Shu-Ying Chang
(English Translation of Parent Company Only Financial Statements Originally Issued in Chinese)
Holy Stone Enterprise Co., Ltd.
Statement of Changes in Equity
For Years Ended December 31, 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars)
| Ordinary shares | Capital surplus | Retained earnings | Other equity | Total equity | ||||
|---|---|---|---|---|---|---|---|---|
| Legal reserve | Special reserve | Unappropriated retained earnings | Exchange differences on translation of foreign financial statements | Unrealized gains (losses) on financial assets measured at fair value through other comprehensive income | ||||
| Balance at January 1, 2024 | $ 1,658,903 | 3,209,892 | 1,638,205 | 133,682 | 3,337,778 | (67,289) | (76,335) | 9,834,836 |
| Profit | - | - | - | - | 973,274 | - | - | 973,274 |
| Other comprehensive income | - | - | - | - | 5,320 | 54,555 | (5,699) | 54,176 |
| Total comprehensive income | - | - | - | - | 978,594 | 54,555 | (5,699) | 1,027,450 |
| Appropriation and distribution of retained earnings: | ||||||||
| Legal reserve | - | - | 85,008 | - | (85,008) | - | - | - |
| Special reserve | - | - | - | 9,942 | (9,942) | - | - | - |
| Cash dividends of ordinary shares | - | - | - | - | (829,452) | - | - | (829,452) |
| Changes in ownership interests in subsidiaries | - | (49,748) | - | - | - | - | - | (49,748) |
| Balance at December 31, 2024 | 1,658,903 | 3,160,144 | 1,723,213 | 143,624 | 3,391,970 | (12,734) | (82,034) | 9,983,086 |
| Profit | - | - | - | - | 1,091,701 | - | - | 1,091,701 |
| Other comprehensive income | - | - | - | - | 4,196 | (29,010) | 10,899 | (13,915) |
| Total comprehensive income | - | - | - | - | 1,095,897 | (29,010) | 10,899 | 1,077,786 |
| Appropriation and distribution of retained earnings: | ||||||||
| Legal reserve | - | - | 97,860 | - | (97,860) | - | - | - |
| Cash dividends of ordinary share | - | - | - | - | (912,397) | - | - | (912,397) |
| Reversal of special reserve | - | - | - | (48,856) | 48,856 | - | - | - |
| Changes in ownership interests in subsidiaries | - | (705) | - | - | - | - | - | (705) |
| Disposal of investments in equity instruments designated at fair value through other comprehensive income | - | - | - | - | 74 | - | (74) | - |
| Balance at December 31, 2025 | $ 1,658,903 | 3,159,439 | 1,821,073 | 94,768 | 3,526,540 | (41,744) | (71,209) | 10,147,770 |
(See accompanying notes to parent company only financial statements.)
Chairman: Jing-Rong Tang
General Manager: Jing-Rong Tang
Chief Accounting Officer: Shu-Ying Chang
(English Translation of Parent Company Only Financial Statements Originally Issued in Chinese)
Holy Stone Enterprise Co., Ltd.
Statement of Cash Flow
For Years Ended December 31, 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars)
| 2025 | 2024 | |
|---|---|---|
| Cash flows from operating activities: | ||
| Profit before tax | $ 1,228,254 | 1,131,229 |
| Adjustments: | ||
| Adjustments to reconcile profit (loss): | ||
| Depreciation expense | 685,439 | 673,465 |
| Expected credit loss (gain) | 529 | (6,809) |
| Net gain on financial assets at fair value through profit or loss | (119,979) | (70,884) |
| Interest expense | 97,033 | 59,988 |
| Interest income | (27,741) | (22,310) |
| Dividend income | (2,840) | (2,462) |
| Share of profit of subsidiaries and associates, accounted for using the equity method | (170,991) | (230,597) |
| Gain from disposal of property, plant and equipment | (4,460) | (1,079) |
| Unrealized profit (loss) from sales | 2,153 | (5,507) |
| Others | (3) | (10) |
| Total adjustments to reconcile profit (loss) | 459,140 | 393,795 |
| Changes in operating assets and liabilities: | ||
| Changes in operating assets: | ||
| Current financial assets at fair value through profit or loss | (78,624) | (36,488) |
| Notes and accounts receivable | (672,156) | (309,306) |
| Accounts receivable-related parties | (44,572) | 56,421 |
| Other receivables | (35,828) | (1,813) |
| Inventories | 374,785 | 652,620 |
| Prepayments and other current assets | (4,257) | 2,838 |
| Total changes in operating assets | (460,652) | 364,272 |
| Changes in operating liabilities: | ||
| Contract liabilities | 10,319 | 791 |
| Accounts payable | (42,282) | 141,591 |
| Accounts payable to related parties | 36,459 | 117,990 |
| Other payables | 63,454 | 16,216 |
| Net defined benefit liability | (7,511) | (13,464) |
| Total changes in operating liabilities | 60,439 | 263,124 |
| Net changes in operating assets and liabilities | (400,213) | 627,396 |
| Total adjustments | 58,927 | 1,021,191 |
| Cash inflow generated from operations | 1,287,181 | 2,152,420 |
| Interest received | 28,212 | 20,734 |
| Dividends received | 2,740 | 2,062 |
| Interest paid | (90,778) | (59,242) |
| Income taxes paid | (92,406) | (93,518) |
| Net cash flows from operating activities | 1,134,949 | 2,022,456 |
| Cash flows used in investing activities: | ||
| Acquisition of investments accounted for using the equity method | - | (34,000) |
| Acquisition of property, plant and equipment | (239,517) | (447,622) |
| Proceeds from disposal of property, plant and equipment | 4,460 | 1,079 |
| Increase in other non-current assets, others | (7,081) | (4,282) |
| (Increase) decrease in prepayments for business facilities | (23,739) | 152,799 |
| Dividends received | 184,684 | 2,025 |
| Net cash flows used in investing activities | (81,193) | (330,001) |
| Cash flows used in financing activities: | ||
| Increase (decrease) in short-term borrowing | 1,085,339 | (5,847) |
| Proceeds from long-term borrowings | - | 500,000 |
| Repayments of long-term borrowings | (680,265) | (340,000) |
| Payment of lease liabilities | (3,039) | (2,910) |
| Cash dividends paid | (912,397) | (829,452) |
| Net cash flows used in financing activities | (510,362) | (678,209) |
| Net increase in cash and cash equivalents | 543,394 | 1,014,246 |
| Cash and cash equivalents at beginning of period | 3,035,216 | 2,020,970 |
| Cash and cash equivalents at end of period | $ 3,578,610 | 3,035,216 |
(See accompanying notes to parent company only financial statements.)
Chairman: Jing-Rong Tang
General Manager: Jing-Rong Tang
Chief Accounting Officer: Shu-Ying Chang
17
【Attachment 4】
Independent Auditors' Report
To the Board of Directors of Holy Stone Enterprise Co., Ltd.:
Opinion
We have audited the consolidated financial statements of Holy Stone Enterprise Co., Ltd. and its subsidiaries (“the Group”), which comprise the consolidated balance sheet as of December 31, 2025 and 2024, the consolidated statement of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of material accounting policies.
In our opinion, based on our audits and the reports of another auditor (please refer to Other Matter paragraph), the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the International Financial Reporting Standards (“IFRSs”), International Accounting Standards (“IASs”), 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 audits 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 Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. Based on our audits and the report of another auditor, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis of our opinion.
Other Matter
We did not audit the 2024 financial statements of one of a subsidiaries. The statements were audited by another auditor, whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the subsidiary, is based solely on the report of another auditor. The financial statements of the subsidiary reflect total assets constituting 5.03% of consolidated total assets at December 31, 2024, and total operating revenues constituting 8.74% of consolidated total operating revenues for the year then ended.
Holy Stone Enterprise Co., Ltd. has prepared its parent company only financial statements as of and for the years ended December 31, 2025 and 2024, on which we have issued an unmodified opinion and unmodified opinion with Other Matters paragraph, respectively.
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. We have determined the matters described below to be the key audit matters to be communicated in our report.
1. Revenue recognition
Please refer to Note (4)(n) "Revenue recognition" for accounting policy and Note (6)(u) "Revenue from contracts with customers for details of revenue to the consolidated statements."
Description of key audit matter:
The Group engages primarily in the manufacturing and sales of MLCC, integrated circuits, modules, and other electronic components. The Operating Revenue is the main indicator for the investor to evaluate the financial and business performance of the Group. Therefore, it has been identified as a key audit matter.
Our principal audit procedures included:
Regarding to the key audit matter mentioned above, our key audit procedures include understanding the design and implementation of internal control over revenue recognition and verifying the compliance of accounting policy; analyzing the changes in sales revenue from top ten clients and comparing them with those of the same period in the previous year to confirm whether or not there are significant exceptions or irregular transactions exist; examining the vouchers to determine the appropriate cut offs for revenue recognition within selected periods before and after the balance sheet date to evaluate whether the revenue was recorded in the appropriate period.
2. Impairment evaluation of accounts receivable
Please refer to Note (4)(g) "Financial instruments"; Note (5)(a) "Significant accounting assumptions and judgments, and major sources of estimation uncertainty", and Note (6)(d) "Notes and accounts receivables" to the consolidated financial statements.
Description of key audit matter:
The Group measured its accounts receivable by the recoverable amounts. Impairment evaluation of accounts receivable is one of the key judgmental areas for our audit, particularly in respect of the great
18
influence of given the challenging industry climate. Due to the provision of bad debt allowance that is subject to the management's judgement, it is uncertain to have enough of information of recoverability before the issuance of the financial statements.
How the matter was addressed in our audit:
Our principal audit procedures included understanding the design and implementation of internal control; assessing the rationality of the provision policy and verifying the compliance of provision policy for accounts receivable allowance; examining the aging analysis table and checking the amount of receivables received after the balance date, as well as discussing with the management to assess the whether or not the provision is reasonable; evaluating the adequacy of the Group’s disclosure for bad debt allowance.
3. Inventory valuation
Please refer to Note (4)(h) "Inventories"; Note (5)(b) "Significant accounting assumptions and judgments, and major sources of estimation uncertainty", and Note (6)(f) "Inventories" to the consolidated financial statements.
Description of key audit matter:
Inventories are measured at the lower of cost and net realizable value in the financial statements. However, with the rapid development of the consumer market and the volatility of sales, that may result in the cost of inventory may exceed its net realizable value. Therefore, it has been identified as a key audit matter.
How the matter was addressed in our audit:
Regarding the key audit matter mentioned above, our audit procedures included evaluating the reasonableness of the Group’s inventory valuation policy and the management’s assumption used when measuring allowance for inventory valuation and obsolescence losses; performing a retrospective review of the Group’s historical accuracy of judgments with reference to inventory valuation and comparing them with the current year’s calculation to evaluate the appropriateness of estimation and assumption used for inventory valuation; assessing the adequacy of the Group’s disclosure for inventories.
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 with IFRSs, IASs, IFRC, SIC endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
19
In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
Those charged with governance (including Audit Committee) are responsible for overseeing the Group's financial reporting process.
Auditors' Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and professional skepticism throughout the audit. We also:
-
Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
-
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.
-
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
-
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Group to cease to continue as a going concern.
20
-
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
-
Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements 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 Chen, Pei Chi and Yu, Chi Lung
KPMG
Taipei, Taiwan (Republic of China)
March 4, 2026
Notes to Readers
The accompanying consolidated financial statements are intended only to present the consolidated 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' 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' report and consolidated financial statements, the Chinese version shall prevail.
(English Translation of Consolidated Financial Statements Originally Issued in Chinese)
HOLY STONE ENTERPRISE CO., LTD. AND SUBSIDIARIES
Consolidated Balance Sheets
December 31, 2025 and 2024
(Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Share)
| Assets | |
|---|---|
| Current assets: | |
| 1100 | Cash and cash equivalents (note (6)(a)) |
| 1110 | Current financial assets at fair value through profit or loss (note (6)(b)) |
| 1150 | Notes and accounts receivable, net (notes (6)(d)(u) and (7)) |
| 1200 | Other receivables, net (note (6)(e)) |
| 1220 | Current tax assets |
| 130X | Inventories (note (6)(f)) |
| 1410 | Prepayments and other current assets |
| Total current assets | |
| Non-current assets: | |
| 1510 | Non-current financial assets at fair value through profit or loss (note (6)(b)) |
| 1517 | Non-current financial assets at fair value through other comprehensive income (note (6)(c)) |
| 1550 | Investments accounted for using the equity method (note (6)(g)) |
| 1600 | Property, plant and equipment (note (6)(i)) |
| 1755 | Right-of-use assets (note (6)(j)) |
| 1780 | Intangible assets (note (6)(k)) |
| 1840 | Deferred tax assets (note (6)(q)) |
| 1915 | Prepayments for business facilities |
| 1990 | Other non-current assets, others (note (8)) |
| Total non-current assets | |
| December 31, 2025 | |
| --- | --- |
| Amount | % |
| $ 4,619,044 | 29 |
| 965,366 | 6 |
| 3,784,208 | 24 |
| 88,697 | 1 |
| 36,778 | - |
| 2,155,692 | 14 |
| 73,948 | - |
| 11,723,733 | 74 |
| 53,037 | - |
| 62,170 | - |
| 443,846 | 3 |
| 3,763,870 | 23 |
| 31,370 | - |
| 1,185 | - |
| 54,008 | - |
| 10,873 | - |
| 44,340 | - |
| 4,464,699 | 26 |
| Liabilities and Equity | |
| --- | --- |
| Current liabilities: | |
| 2100 | Short-term borrowings (note (6)(l)) |
| 2130 | Current contract liabilities (note (6)(u)) |
| 2170 | Accounts payable |
| 2180 | Accounts payable to related parties (note (7)) |
| 2200 | Other payables (note (6)(m)) |
| 2230 | Current tax liabilities |
| 2280 | Current lease liabilities (note (6)(e)) |
| 2322 | Long-term borrowings, current portion (note (6)(n)) |
| Total current liabilities | |
| Non-Current liabilities: | |
| 2540 | Long-term borrowings (note (6)(n)) |
| 2570 | Deferred tax liabilities (note (6)(q)) |
| 2580 | Non-current lease liabilities (note (6)(o)) |
| 2640 | Net defined benefit liability, non-current |
| 2670 | Other non-current liabilities, others |
| Total non-current liabilities | |
| Total liabilities | |
| Equity attributable to owners of parent (notes (4)(b), (6)(h)(r)): | |
| 3110 | Ordinary share |
| 3200 | Capital surplus |
| Retained earnings: | |
| 3310 | Legal reserve |
| 3320 | Special reserve |
| 3350 | Unappropriated retained earnings |
| Total retained earnings | |
| Other equity: | |
| 3410 | Exchange differences on translation of foreign financial statements |
| 3420 | Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income |
| Total other equity | |
| Total equity attributable to owners of parent: | |
| 36XX | Non-controlling interests |
| Total equity | |
| Total liabilities and equity | |
| December 31, 2025 | |
| --- | --- |
| Amount | % |
| $ 2,223,056 | 14 |
| 43,366 | - |
| 879,601 | 5 |
| 66,065 | - |
| 935,479 | 6 |
| 98,754 | 1 |
| 18,246 | - |
| 667,052 | 4 |
| 4,931,619 | 30 |
| 721,016 | 4 |
| 103,691 | 1 |
| 14,141 | - |
| 16,139 | - |
| 2,508 | - |
| 857,495 | 5 |
| 5,789,114 | 35 |
| 1,658,903 | 10 |
| 3,159,439 | 19 |
| 1,821,073 | 11 |
| 94,768 | 1 |
| 3,526,540 | 22 |
| 5,442,381 | 34 |
| (41,744) | - |
| (71,209) | - |
| (112,953) | - |
| 10,147,770 | 63 |
| 251,548 | 2 |
| 10,399,318 | 65 |
| $ 16,188,432 | 100 |
Total assets
(See accompanying notes to consolidated financial statements)
Chairman: Jing-Rong Tang
General Manager: Jing-Rong Tang
Chief Accounting Officer: Shu-Ying Chang
(English Translation of Consolidated Financial Statements Originally Issued in Chinese)
HOLY STONE ENTERPRISE CO., LTD. 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 Share)
| 2025 | 2024 | ||||
|---|---|---|---|---|---|
| Amount | % | Amount | % | ||
| 4000 | Operating revenue (note (6)(u)) | $ 13,426,839 | 100 | 12,785,820 | 100 |
| 5000 | Operating costs (notes (6)(f)(o)(p)(v), (7) and (12)) | 10,906,541 | 81 | 10,696,809 | 84 |
| Gross profit | 2,520,298 | 19 | 2,089,011 | 16 | |
| Operating expenses: | |||||
| 6100 | Selling and administrative expenses (notes (6)(o)(p)(v) and (12)) | 1,168,455 | 9 | 1,124,694 | 9 |
| 6300 | Research and development expenses (notes (6)(o)(p)(v) and (12)) | 272,543 | 2 | 346,701 | 2 |
| 6450 | Expected credit loss (gain) (note (6)(d)) | 1,069 | - | (3,125) | - |
| Total operating expenses | 1,442,067 | 11 | 1,468,270 | 11 | |
| Net operating income | 1,078,231 | 8 | 620,741 | 5 | |
| Non-operating income and expenses: | |||||
| 7020 | Other gains and losses, net (note (6)(w)) | 154,094 | 1 | 490,251 | 5 |
| 7050 | Finance costs (note (6)(o)) | (103,911) | - | (70,209) | (1) |
| 7060 | Share of profit of associates accounted for using the equity method | 18,985 | - | 19,710 | - |
| 7100 | Interest income | 43,411 | - | 42,555 | - |
| Total non-operating income and expenses | 112,579 | 1 | 482,307 | 4 | |
| Profit before tax | 1,190,810 | 9 | 1,103,048 | 9 | |
| 7950 | Less: Income tax expenses (note (6)(q)) | 164,875 | 1 | 176,693 | 2 |
| Profit | 1,025,935 | 8 | 926,355 | 7 | |
| 8300 | Other comprehensive income (loss): | ||||
| 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 | 3,778 | - | 5,098 | - |
| 8316 | Unrealized (losses) gains from investments in equity instruments measured at fair value through other comprehensive income (note (6)(r)) | 10,899 | - | (5,699) | - |
| 8320 | Share of other comprehensive income of associates accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss | 418 | - | 222 | - |
| 8349 | Income tax related to components of other comprehensive income that will not be reclassified to profit or loss | - | - | - | - |
| Components of other comprehensive income (loss) that will be reclassified to profit or loss | 15,095 | - | (379) | - | |
| 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)) | (24,156) | - | 54,545 | 1 |
| 8399 | Income tax related to components of other comprehensive income that will be reclassified to profit or loss | - | - | - | - |
| Components of other comprehensive income (loss) that will be reclassified to profit or loss | (24,156) | - | 54,545 | 1 | |
| 8300 | Other comprehensive income, net of tax | (9,061) | - | 54,166 | 1 |
| 8500 | Total comprehensive income | $ 1,016,874 | 8 | 980,521 | 8 |
| Profit, attributable to: | |||||
| 8610 | Owners of parent | $ 1,091,701 | 8 | 973,274 | 7 |
| 8620 | Non-controlling interests | (65,766) | - | (46,919) | - |
| Profit | $ 1,025,935 | 8 | 926,355 | 7 | |
| Comprehensive income attributable to: | |||||
| 8710 | Owners of parent | $ 1,077,786 | 8 | 1,027,450 | 8 |
| 8720 | Non-controlling interests | (60,912) | - | (46,929) | - |
| Total comprehensive income | $ 1,016,874 | 8 | 980,521 | 8 | |
| Earnings per share (in dollars) (note (6)(t)) | |||||
| 9750 | Basic earnings per share | $ 6.58 | 5.87 | ||
| 9850 | Diluted earnings per share | $ 6.51 | 5.80 |
Chairman: Jing-Rong Tang
General Manager: Jing-Rong Tang
Chief Accounting Officer: Shu-Ying Chang
(English Translation of Consolidated Financial Statements Originally Issued in Chinese)
HOLY STONE ENTERPRISE CO., LTD. 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 owners of parent | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Retained earnings | Other equity | Non-controlling interests | ||||||||
| Ordinary shares | Capital surplus | Legal reserve | Special reserve | Unappropriated retained earnings | Exchange differences on translation of foreign financial statements | Unrealized gains (losses) on financial assets measured at fair value through other comprehensive income | Total equity attributable to owners of parent | Total equity attributable to owners of total assets | Total equity | |
| Balance at January 1, 2024 | $ 1,658,903 | 3,209,892 | 1,638,205 | 133,682 | 3,337,778 | (67,289) | (76,335) | 9,834,836 | 200,608 | 10,035,444 |
| Profit | - | - | - | - | 973,274 | - | - | 973,274 | (46,919) | 926,355 |
| Other comprehensive income | - | - | - | - | 5,320 | 54,555 | (5,699) | 54,176 | (10) | 54,166 |
| Total comprehensive income | - | - | - | - | 978,594 | 54,555 | (5,699) | 1,027,450 | (46,929) | 980,521 |
| Appropriation and distribution of retained earnings: | ||||||||||
| Legal reserve | - | - | 85,008 | - | (85,008) | - | - | - | - | - |
| Special reserve | - | - | - | 9,942 | (9,942) | - | - | - | - | - |
| Cash dividends of ordinary shares | - | - | - | - | (829,452) | - | - | (829,452) | - | (829,452) |
| Changes in ownership interests in subsidiaries | - | (49,748) | - | - | - | - | - | (49,748) | 55,500 | 5,752 |
| Changes in non-controlling interests | - | - | - | - | - | - | - | - | 187,106 | 187,106 |
| Balance at December 31, 2024 | 1,658,903 | 3,160,144 | 1,723,213 | 143,624 | 3,391,970 | (12,734) | (82,034) | 9,983,086 | 396,285 | 10,379,371 |
| Profit | - | - | - | - | 1,091,701 | - | - | 1,091,701 | (65,766) | 1,025,935 |
| Other comprehensive income | - | - | - | - | 4,196 | (29,010) | 10,899 | (13,915) | 4,854 | (9,061) |
| Total comprehensive income | - | - | - | - | 1,095,897 | (29,010) | 10,899 | 1,077,786 | (60,912) | 1,016,874 |
| Appropriation and distribution of retained earnings: | ||||||||||
| Legal reserve | - | - | 97,860 | - | (97,860) | - | - | - | - | - |
| Cash dividends of ordinary shares | - | - | - | - | (912,397) | - | - | (912,397) | - | (912,397) |
| Reversal of special reserve | - | - | - | (48,856) | 48,856 | - | - | - | - | - |
| Changes in ownership interests in subsidiaries | - | (705) | - | - | - | - | - | (705) | 630 | (75) |
| Changes in non-controlling interests | - | - | - | - | - | - | - | - | (84,455) | (84,455) |
| Disposal of investments in equity instruments designated at fair value through other comprehensive income | - | - | - | - | 74 | - | (74) | - | - | - |
| Balance at December 31, 2025 | $ 1,658,903 | 3,159,439 | 1,821,073 | 94,768 | 3,526,540 | (41,744) | (71,209) | 10,147,770 | 251,548 | 10,399,318 |
(See accompanying notes to consolidated financial statements)
Chairman: Jing-Rong Tang
General Manager: Jing-Rong Tang
Chief Accounting Officer: Shu-Ying Chang
(English Translation of Consolidated Financial Statements Originally Issued in Chinese) HOLY STONE ENTERPRISE CO., LTD. AND SUBSIDIARIES Consolidated Statements of Cash Flow For the Years Ended December 31, 2025 and 2024 (Expressed in Thousands of New Taiwan Dollars)
| 2026 | 2024 | |
|---|---|---|
| Cash flows from operating activities: | ||
| Profit before tax | $ 1,190,810 | 1,103,048 |
| Adjustments: | ||
| Adjustments to reconcile profit (loss): | ||
| Depreciation expense | 731,347 | 720,602 |
| Amortization expense | 2,461 | 3,207 |
| Expected credit loss (gain) | 1,069 | (3,125) |
| Net gain on financial assets or liabilities at fair value through profit or loss | (124,729) | (158,043) |
| Interest expense | 103,911 | 70,209 |
| Interest revenue | (43,411) | (42,555) |
| Dividend revenue | (9,372) | (10,136) |
| Share-based payments | 325 | 2,619 |
| Share of profit of associates accounted for using the equity method | (18,985) | (19,710) |
| Gain from disposal of property, plant and equipment | (4,409) | (245,233) |
| Gain on disposal of investments | - | (169) |
| Others | (2) | (11) |
| Total adjustments to reconcile profit | 638,205 | 317,655 |
| Changes in operating assets and liabilities: | ||
| Changes in operating assets: | ||
| Current financial assets at fair value through profit or loss | (246,590) | (49,600) |
| Notes and accounts receivable | (699,919) | (314,344) |
| Other receivables | (30,550) | (3,921) |
| Inventories | 419,001 | 553,068 |
| Prepayments and other current assets | (30,280) | 15,686 |
| Total changes in operating assets | (588,338) | 200,889 |
| Changes in operating liabilities: | ||
| Contract liabilities | (42,859) | (21,046) |
| Accounts payable | (48,751) | 125,949 |
| Accounts payable to related parties | 4,961 | 30,864 |
| Other payables | 89,981 | 18,714 |
| Net defined benefit liability | (7,511) | (13,464) |
| Total changes in operating liabilities | (4,179) | 141,017 |
| Net changes in operating assets and liabilities | (592,517) | 341,906 |
| Total adjustments | 45,688 | 659,561 |
| Cash inflow generated from operations | 1,236,498 | 1,762,609 |
| Interest received | 43,398 | 40,528 |
| Dividends received | 9,072 | 8,996 |
| Interest paid | (97,779) | (69,433) |
| Income taxes paid | (110,710) | (132,074) |
| Net cash flows from operating activities | 1,080,479 | 1,610,626 |
| Cash flows (used in) from investing activities: | ||
| Proceeds from disposal of financial assets at fair value through other comprehensive income | 88 | - |
| Proceeds from disposal of investments accounted for using equity method | - | 1,350 |
| Acquisition of property, plant and equipment | (260,796) | (454,331) |
| Proceeds from disposal of property, plant and equipment | 4,463 | 448,161 |
| Acquisition of intangible assets | (528) | (606) |
| Increase in other non-current assets | (4,246) | (1,130) |
| (Increase) decrease in prepayments for business facilities | (9,834) | 144,669 |
| Dividends received | 18,116 | 7,839 |
| Net cash flows (used in) from investing activities | (252,737) | 145,952 |
| Cash flows used in financing activities: | ||
| Increase in short-term borrowings | 997,158 | 122,238 |
| Proceeds from long-term borrowings | - | 500,000 |
| Repayments of long-term borrowings | (680,265) | (340,000) |
| Payment of lease liabilities | (22,438) | (22,508) |
| Increase in other non-current liabilities | - | 104 |
| Cash dividends paid | (912,397) | (829,452) |
| Change in non-controlling interests | (84,455) | 190,239 |
| Net cash flows used in financing activities | (702,397) | (379,379) |
| Effect of exchange rate changes on cash and cash equivalents | (8,479) | 44,730 |
| Net increase in cash and cash equivalents | 116,866 | 1,421,929 |
| Cash and cash equivalents at beginning of period | 4,502,178 | 3,080,249 |
| Cash and cash equivalents at end of period | $ 4,619,044 | 4,602,178 |
(See accompanying notes to consolidated financial statements)
Chairman: Jing-Rong Tang
General Manager: Jing-Rong Tang
Chief Accounting Officer: Shu-Ying Chang
【Attachment 5】
Holy Stone Enterprise Co., Ltd.
2025 Earnings Distribution Table
Unit: NT$
| Item | Amount | Total Amount |
|---|---|---|
| Net Income of 2025 | 1,091,701,398 | |
| Add: Re-measurements of defined benefit plans | 3,778,064 | |
| Share of other comprehensive income of subsidiaries accounted for using equity method | 417,535 | |
| Disposal of equity instruments measured at fair value through other comprehensive income | 73,744 | |
| 2025 Unappropriated retained earnings | 1,095,970,741 | |
| Less: Legal Reserve | 109,597,074 | |
| Special Reserve | 18,184,569 | |
| 2025 Unappropriated retained earnings | 968,189,098 | |
| Add: Beginning unappropriated retained earnings | 2,430,569,203 | |
| Total unappropriated retained earnings | 3,398,758,301 | |
| Less: Distribution Item | ||
| Cash Dividends | 962,163,844 | |
| Stock Dividends | 0 | |
| Total shareholder dividends | 962,163,844 | |
| Ending unappropriated retained earnings | 2,436,594,457 |
Note: Dividend distributions to shareholders shall be rounded to the nearest yuan (NTD), the outstanding shares are 165,890,318 shares which are based on January 31st, 2026 Share Calculation.
Chairman: Jing-Rong Tang General Manager: Jing-Rong Tang Chief Accounting Officer: Shu-Ying Chang
【Attachment 6】
Holy Stone Enterprise Co., Ltd.
Articles of Association Revision Chart
| Article | Amended Provision | Current Provision | Notes |
|---|---|---|---|
| Article 13 | The Company shall have seven to eleven directors. The board of directors is authorized to determine the number of directors. The abovementioned board of directors must have at least three independent directors, and must not be less than one-third of the total members. The election of directors adopts the candidate nomination system of Article 192-1 of the Company Act. Shareholders shall appoint candidates from the list of nominated directors for a term of three years and may be re-elected. |
The acceptance method and announcement of the nomination of director candidates shall be handled in accordance with the Company Act, the Securities and Exchange Act and other relevant laws and regulations.
The nomination, election and appointment of independent directors and other matters to be complied with shall be handled in accordance with the relevant regulations of the competent authority.
The election of directors shall be handled in accordance with Article 198 of the Company Act. Independent directors and non-independent directors shall be | The Company shall have seven to eleven directors. The board of directors is authorized to determine the number of directors. The abovementioned board of directors must have at least three independent directors, and must not be less than one-fifth of the total members. The election of directors adopts the candidate nomination system of Article 192-1 of the Company Act. Shareholders shall appoint candidates from the list of nominated directors for a term of three years and may be re-elected.
The acceptance method and announcement of the nomination of director candidates shall be handled in accordance with the Company Act, the Securities and Exchange Act and other relevant laws and regulations.
The nomination, election and appointment of independent directors and other matters to be complied with shall be handled in accordance with the relevant regulations of the competent authority.
The election of directors shall be handled in accordance with Article 198 of the Company Act. Independent directors and non-independent directors shall be elected together, and the elected quota shall be calculated separately. | Revised in accordance to the Financial Supervisory Commission's No. 11200147631 dated August 23rd, 2023, which added Article 4-3 of the Operation Directions for Compliance with the Establishment of Board of Directors by TWSE Listed Companies and the Board's Exercise of Powers, the provision is hereby amended. |
| elected together, and the elected quota shall be calculated separately. More than half of the members among the directors shall not have the following relationships: 1.Spouse 2.Relative within second degree | More than half of the members among the directors shall not have the following relationships: 1.Spouse 2.Relative within second degree | ||
|---|---|---|---|
| Article 22 | These Articles of Association is stipulated on 1981.05.06. 1st ~31st amendments (omitted). The 32nd Revision was made on 2025.05.28. The 33rd Revision was made on 2026.05.25. | These Articles of Association is stipulated on 1981.05.06. 1st ~31st amendments (omitted). The 32nd Revision was made on 2025.05.28. New. | Add revision to the number of items and dates. |
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