AI assistant
PEGAVISION — AGM Information 2026
Jun 3, 2026
52572_rns_2026-06-03_8a544a8b-d073-4afd-a538-137ea0573f90.pdf
AGM Information
Open in viewerOpens in your device viewer
TRANSLATION- THE TRANSLATED DOCUMENT IS PREPARED IN ACCORDANCE WITH THE CHINESE VERSION. THE TRANSLATION IS FOR REFERENCE ONLY. IF THERE IS ANY DISCREPANCY BETWEEN THE ENGLISH VERSION AND CHINESE VERSION, THE CHINESE VERSION SHALL PREVAIL.
Pegavision Corporation
2026 Annual General Shareholders' Meeting Minutes
(Translation)
- Time : 9:00 a.m., May 20, 2026, Wednesday
- Place : Pegavision's Guishan Fab (No.5, Shing Yeh St., Guishan Dist., Taoyuan City 333, Taiwan (R.O.C.))
- Convening method: Physical Shareholders Meeting
- Total outstanding Pegavision shares: 78,000,000 shares
- Total Pegavision shares with voting rights: 78,000,000 shares
- Total shares held by shareholders presented in person or by proxy: 53,320,830 shares (of which 51,974,733 shares were represented by shareholders attending and exercising their voting rights via electronic means)
- Percentage of shares held by shareholders presented in person or by proxy: 68.36%
- Chairman: Ming-Tung Kuo, the Chairman of the Board of Directors
- Directors Present: T.H Tung, Te-Sheng Yang, Ho-Hsu Chen, and Independent Director Jen-Lu Yao, Convener of the Audit Committee. Five directors were present in person at the meeting, constituting more than one-half of the Company's nine director seats.
- Attendees: Chih-Ming Chang, CPA, Ernst & Young
Hung-Sheng Chu, Attorney, Phoebus & Artemis Attorneys-at-Law and CPAs
Ching-Hsiang Wang, Director of Finance & Accounting Division - Recorder: Wei-Chieh Peng
- Corporate Governance Officer: Ching-Hsiang Wang
The aggregate shareholding of the shareholders present in person or by proxy constituted a quorum. The Chairman called the meeting to order.
- Chairman’s Address (omitted)
I. Items to be reported
(I) Summary: The Company's 2025 operational and financial results (Business Report).
Details: Please refer to Attachment 1 (pages 6 to 7) for the 2025 Business Report.
(II) Summary: Audit Committee's review report on 2025 financial statements.
Details: Please refer to Attachment 2 (page 8) for Audit Committee's Review Report.
(III) Summary: The 2025 compensation of directors and employee bonus.
Details:
1. Pursuant to Article 27 of the company’s Articles of Incorporation, 2025 employees’ and directors’ remuneration resolved is NT$252,044,055 (representing 11.5% of pre-tax profit), of which 25%, totaling NT$63,011,014, is allocated to grassroots employees, and NT$21,916,874 (representing 1% of pre-tax profit) respectively; both amounts will be entirely paid in cash.
2. The sum of director remuneration paid in cash to directors and corporate representatives who hold positions within the group amounted to NT$21,914,000.
3. No differences exist between the estimated amount and the actual distribution of the employee bonuses and there is negative NT$2,874 differences between the estimated amount and the actual distribution of the remuneration to directors for the year ended December 31, 2025.
(IV) Summary: The cash dividends distribution of 2025 earnings.
Details:
1. Pursuant to Article 27-1 of the Company's Articles of Incorporation, cash distribution to shareholders shall be resolved in a board meeting, and reported in the upcoming shareholder meeting. A proposal has been made to pay NT$780,000,000 in cash dividends at NT$10 per share.
2. The amount of cash dividend distribution shall be calculated using the payout ratio and truncated to the nearest NT$1. Fractions that do not amount to a full NT$1 shall be summed and recognized by the Company as other income. At which time, a proposal will also be raised to authorize the Chairman to set details such as the dividend baseline date.
3. In the event that subsequent changes in the number of outstanding shares result in a change in the dividend distribution ratio and necessitate a revision, the Chairman is hereby authorized to handle such adjustments in
2
full, within the scope of the total distributable amount
II. Items to be approved
(I) Summary: Adoption of the Company's 2025 Business Report and Financial Statements (proposed by board of directors).
Details:
- The Company's 2025 business report and financial statements have been approved by the board of directors; the financial statements have also been audited by CPA Chih-Ming Chang and CPA Kuo-Shuai Chen of Ernst & Young and reviewed by the Audit Committee.
- Please refer to Attachment 1 (pages 6 to 7) for the 2025 business report, and Attachment 3 (pages 9 to 29) for standalone and consolidated financial statements.
Voting Results:
| Number of shares presented at the time of voting | For | Against | Abstained | Invalid |
|---|---|---|---|---|
| 53,320,830 votes* | 52,819,340 votes* | 408,404 votes* | 93,086 votes* | 0 Votes* |
| (51,974,733 votes) | (51,476,632 votes) | (408,404 votes) | (89,697 votes) |
*including votes casted electronically (number in brackets)
RESOLVED, the above proposal was accepted as submitted.
(II) Summary: Adoption of the 2025 Earnings Appropriation (proposed by board of directors).
Details:
- The Company reported NT$1,628,044,179 of net income in 2025; after providing for legal reserves of NT$ 162,804,418 and special reserves of NT$ 105,301,183, and adding to undistributed earnings of NT$ 4,189,878,256 carried from previous years, the Company had NT$ 5,549,816,834 of earnings that were available for distribution.
- Please refer to Attachment 4 (page 30) for the Company's 2025 earnings appropriation report
Voting Results:
| Number of shares presented at the time of voting | For | Against | Abstained | Invalid |
|---|---|---|---|---|
4
| 53,320,830 votes
(51,974,733 votes) | 52,861,345 votes
(51,518,637 votes) | 421,126 votes
(421,126 votes) | 38,359 votes
(34,970 votes) | 0 Votes* |
| --- | --- | --- | --- | --- |
*including votes casted electronically (number in brackets)
RESOLVED, the above proposal was accepted as submitted.
III. Other Question and Special Motion:
Summary: Execution Status of the Company’s Share Repurchase Program.
Details: The Company’s Board of Directors approved the implementation of a share repurchase program on March 16, 2026. The execution status is as follows:
| Planned Share Repurchase | |
|---|---|
| Board Resolution Date | 2026/3/16 |
| Purpose of Repurchase | Transfer of shares to employees |
| Planned Repurchase Period | 2026 / 3 / 17 ~ 2026 / 5 / 15 |
| Planned Repurchase Price Range | NT$240 ~ NT$300 |
| Planned Number of Shares to be Repurchased(Percentage of Total Issued Shares) | 1,200,000 shares (1.54%) |
| Maximum Amount for Share Repurchase | NT$10,171,193,500 |
| Actual Share Repurchase Status | |
| Actual Repurchase Period | 2026 / 3 / 19 ~ 2026 / 4 / 14 |
| Actual Number of Shares Repurchased(Percentage of Total Issued Shares) | 1,200,000 shares (1.54%) |
| Actual Amount of Shares Repurchased | NT$340,651,975 |
| Average Repurchase Price per Share | NT$283.88 |
| Cumulative Shares Held by the Company(Percentage of Total Issued Shares) | 1.54% |
| Reason for Incomplete Execution | None |
Shareholder Account No. 36520 proposed the following four suggestions regarding investor relations and the promotion of ESG initiatives:
- To establish a dedicated Investor Relations (IR) department and related mechanisms in order to enhance communication with external investors.
- To optimize the content of the Investor Relations section on the Company’s website and add Q&A records of investor conferences.
- To enhance the frequency and depth of external communications and proactively disclose operational updates, including production and R&D status.
- To strengthen ESG management of overseas supply chains.
Responses from the Chairperson and the President :
The Company will endeavor to implement shareholders' suggestions to the extent practicable and feasible. As the Company's global expansion and business development become increasingly complex, the Company will maintain regular and proactive external communications without compromising its competitive strategy or disclosing confidential information. The President will also participate in investor conferences at appropriate times. The Company has consistently upheld a policy of timely and transparent disclosure of financial information. With respect to ESG, the Company will continue to uphold its commitment to giving back to society and fulfilling its corporate social responsibilities by promoting energy conservation, carbon reduction, and participation in social welfare activities.
Shareholder Account No. 35418 did not complete the proxy appointment procedures for attendance at the meeting. With the consent of the Chairperson, the shareholder's proxy was permitted to speak. The proxy expressed concern that the Company's share price had failed to reflect its underlying fundamentals, resulting in unrealized investment losses, and hoped that the Company could deliver returns to its long-term investors through improved share price performance.
Response from the Chairperson :
Currently, market investment sentiment is primarily focused on AI-related stocks. The Company will continue striving to achieve strong operational performance and await the market trend's return to non-electronics sectors. It is believed that, at such time, the Company's share price will reflect its true value.
IV. Adjournment
(Note: This minutes is extracted from the 2026 Annual General Shareholders' Meeting, the details are subject to the audio and video recording.)
Attachment 1
Pegavision Corporation
Business Report
Dear Shareholders,
The year 2025 was marked by heightened uncertainty and significant challenges worldwide. Escalating climate-related risks, tariff-driven trade tensions under the Trump administration in the United States, and intensifying geopolitical conflicts all contributed to a volatile global economic environment. Meanwhile, the rapid advancement of artificial intelligence enhanced corporate productivity and accelerated business model transformation, while also intensifying imbalances in talent supply and demand, cybersecurity concerns, and corporate governance risks. Nevertheless, the increasing prevalence of electronic devices and the expanding scale of AI applications have led to longer screen time, making vision-related issues such as myopia increasingly prevalent and thereby supporting continued growth in the contact lens market. Leveraging its strong research and development and manufacturing capabilities, together with an unwavering commitment to quality, PEGAVISION continued to earn the trust of its customers, and the Company's revenue once again reached a record high. The business performance in 2025 and the business plan for 2026 are reported as follows:
2025 Financial Performance
The consolidated revenue of the Company in 2025 was NT$7,039.41 million, representing an increase of NT$22.21 million over the last year, with an annual growth rate of 3.3%. Our gross profit margin was 52%, representing an decrease of 3.8% compared to the previous year. Net income attributable to shareholders of the parent company was NT$1,628.04 million, representing an decrease of NT$202.63 million over the last year, or 11% year on year. Earnings per share were NT$20.87, representing an decrease of NT$2.6 over the previous year. The Company's consolidated revenue performance in 2025 was principally attributable to continued growth in its OEM business in the Japanese market, while persistent market price competition exerted pressure on gross margin.
Technological Developments
Pegavision committed 8.9% of its operating revenues, totaling NT$624.68 million, to R&D expenses in 2025. These funds were allocated to support new product development, certification, and to improve production technologies. We acquired 46 new patents in 2025, covering areas such as automated process testing, material formulations, surface coating technologies, and packaging sterilization techniques. Moreover, we acquired 76 product licenses across various countries. These include:
- The first 59% water-content cosmetic contact lens in the U.S.;
- The first toric lens in China, Malaysia, and the Philippines;
- The first multifocal lens in Malaysia and the Philippines
- The first silicone hydrogel clear lens in Taiwan, the U.S., South Korea, and the Philippines;
- The first silicone hydrogel lens containing vitamin ingredients in Taiwan, Japan, and South Korea; and
- The first premium silicone hydrogel optical lenses in Taiwan, the U.S., Vietnam, and Indonesia.
Environmental, Social, and Corporate Governance
Apart from being ranked among the top 6% to 20% of all listed companies in the TWSE 2025 Corporate Governance Evaluation System, received the 2025 Silver Award in the Happy Enterprise program organized by 1111 Job Bank, and completed renewal of its ISO 14001 Environmental Management System and ISO 45001 Occupational Health and Safety Management System certifications. The Company will continue to advance green manufacturing initiatives. In 2025, it proposed a voluntary reduction plan targeting a 6% reduction in carbon emissions by 2030 relative to the 2023 baseline, in support of its long-term sustainable development objectives.
Summary of Current Business Plan
In 2025, the Company officially commenced mass production at its facilities in Daxi, Taiwan and Nantong, China.
Together with its subsequent capacity deployment in Hung Yen Province, Vietnam, this production footprint is expected to enhance the Company's ability to serve brand customers and mitigate the impact on revenue arising from overreliance on any single market or customer. PEGAVISION continues to invest in and optimize its contact lens products, automation equipment, production costs, product quality, and product certification portfolio. The Company expects operating revenue in 2026 to exceed that of 2025 and to maintain its leading position among Taiwan industry peers.
Outlook
Notwithstanding ongoing macroeconomic uncertainty, the essential nature of contact lenses as a consumer staple supports our expectation that the global contact lens market will sustain a long-term annual growth rate of 4%-6%. The medical device industry is characterized by high capital requirements, significant technological barriers, lengthy product certification cycles, and stringent regulatory oversight. The Company has long been committed to innovation in contact lens research and development and precision manufacturing, with the aspiration of becoming consumers' lifelong optical solutions provider. From a strategic perspective, we have already initiated forward-looking planning for future product lines, closely tracking developments in optical material technologies and visual health trends, broadening application scenarios, and strengthening our competitiveness in the global market. As a professional manufacturer of soft contact lenses, the Company will continue to focus on smart manufacturing while further enhancing its capabilities in product research and development, patent applications, and certification planning.
On behalf of the employees at Pegavision, we thank you for your continued trust and support. Upholding our business philosophy of broadening horizons for consumers, we will adhere to this responsibility with our commitment to our products, the environment, and our personnel and persistently go to all lengths necessary to create greater value for shareholders.
Pegavision Corporation
Chairman Peter Kuo
President T.S Yang
Head of Accounting C.H. Wang
8
Attachment 2
Pegavision Corporation
Audit Committee’s Review Report
The Board of Directors has prepared the Company’s 2025 Business Report, Financial Statements, and proposal for allocation of earnings. The CPA firm of Ernst & Young Taiwan was retained to audit Pegavision’s Financial Statements and has issued an audit report relating to the Financial Statements. The Business Report, Financial Statements, and earnings allocation proposal have been reviewed and determined to be correct and accurate by the Audit Committee members of Pegavision Corporation. According to Article 14-4 of the Securities and Exchange Act and Article 219 of the Company Law, we hereby submit this report.
Pegavision Corporation
Chairman of the Audit Committee : Eric Yao
January 30, 2026
Attachment 3
INDEPENDENT AUDITORS' REPORT
To: the Board of Directors and Shareholders of
Pegavision Corporation
Opinion
We have audited the accompanying parent-company-only balance sheets of Pegavision Corporation (the “Company”) as of December 31, 2025 and 2024, and the related parent-company-only statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the parent-company-only financial statements, including the summary of material accounting policies (together referred as “the parent-company-only financial statements”).
In our opinion, the parent-company-only financial statements referred to above present fairly, in all material respects, the parent-company-only financial position of the Company as of December 31, 2025 and 2024, and the parent-company-only financial performance and cash flows for the years then ended, in conformity with the requirements of the Regulations Governing the Preparation of Financial Reports by Securities Issuers.
Basis for Opinion
We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Parent-Company-Only Financial Statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China (the “Norm”), and we have fulfilled our other ethical responsibilities in accordance with Norm. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of the most significance in our audit of parent-company-only financial statements for the year ended December 31, 2025.
9
These matters were addressed in the context of our audit of the parent-company-only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Revenue Recognition
We determine that revenue recognition is one of the key audit matters. The Company's revenue amounting to NT$6,072,328 thousand for the year ended December 31, 2025 is a significant account to the Company's financial statements. The Company has conducted these sale activities in multi-marketplace, including Taiwan, China, Japan, etc. Furthermore, the timing of fulfilling performance obligation needs to be determined based on varieties of sale terms and conditions enacted in the main sale contracts or sale orders. We therefore conclude that there are significant risks with respect to the topic of revenue recognition.
Our audit procedures therefore include, but not limit to, evaluating the properness of accounting policy for revenue recognition, assessing and testing the effectiveness of relevant internal controls related to revenue recognition, sampling-test of details, including obtaining major sale orders or agreements to inspect the terms and conditions, checking the consistency of the fulfillment timing, performing analytical review procedures on sale revenues, and executing sale cut-off tests, etc. We have also evaluated the appropriateness of the related disclosure in Note 6 to the financial statements.
Market valuation on Inventory
We determined the market valuation on inventory is also one of key audit matters. The Company's net inventory amounted to NT$707,003 thousand, representing 5% of total assets, as of December 31, 2025, which is significant to the Company's financial statements. Due to the fierce competition in the contact lens market and the continuous introduction of new products, management, in timely considering the status of new products development and the demand from clients, has to evaluate the loss due to market value decline as well as write-down on slow-moving inventories to their net realizable value. Our audit procedures therefore include, but not limit to, evaluating the Company's policy with respect to assessment the loss from slow-moving inventory and phased-out items, (including identification method, testing the accuracy of inventory aging schedule, analysis on inventory movement), evaluating the physical inventory stock take plan report provided by the management and choose the significant location to perform the observation, and inspecting the current status of inventory usage, etc. We also evaluated the appropriateness of related disclosure in the Note 5 and 6 to the financial statements.
10
11
Responsibilities of Management and Those Charged with Governance for the Parent-Company-Only Financial Statements
Management is responsible for the preparation and fair presentation of the parent-company-only financial statements in accordance with the requirements of the Regulations Governing the Preparation of Financial Reports by Securities Issuers and for such internal control as management determines is necessary to enable the preparation of parent-company-only financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the parent-company-only financial statements, management is responsible for assessing the ability to continue as a going concern of the Company, 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 audit committee, are responsible for overseeing the financial reporting process of the Company.
Auditor’s Responsibilities for the Audit of the Parent-Company-Only Financial Statements
Our objectives are to obtain reasonable assurance about whether the parent-company-only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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 parent-company-only financial statements.
As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the parent-company-only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
-
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control of the Company.
-
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 ability to continue as a going concern of the Company. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s 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 auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
-
Evaluate the overall presentation, structure and content of the parent-company-only financial statements, including the accompanying notes, and whether the parent-company-only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
-
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the parent-company-only financial statements. We are responsible for the direction, supervision and performance of the company 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.
12
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of 2025 parent-company-only financial statements and are therefore the key audit matters. We describe these matters in our auditor’s 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.
/s/Chang, Chih-Ming
/s/Chen, Kuo-Shuai
Ernst & Young
Taiwan, R.O.C
January 30, 2026
Notice to Readers
The accompanying parent-company-only financial statements are intended only to present the parent-company-only financial position, results of operations and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China on Taiwan and not those of any other jurisdictions. The standards, procedures and practice to audit such financial parent-company-only statements are those generally accepted and applied in the Republic of China on Taiwan.
Accordingly, the accompanying parent-company-only financial statements and report of independent accountants are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice. As the financial statements are the responsibility of the management, Ernst & Young cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.
13
Pegavision Corporation
Parent-Company-Only Balance Sheets
As of December 31, 2025 and 2024
(Amounts Expressed in Thousands of New Taiwan Dollars)
| Assets | 2025.12.31 | 2024.12.31 | ||||
|---|---|---|---|---|---|---|
| Code | Accounts | Notes | Amount | % | Amount | % |
| 11xx | Current assets | |||||
| 1100 | Cash and cash equivalents | 4, 6(1) | $1,135,021 | 7 | $1,142,305 | 8 |
| 1110 | Financial assets at fair value through profit or loss | 4, 6(2) | 942,381 | 6 | 977,900 | 7 |
| 1136 | Financial assets measured at amortized cost | 6(4) | 1,150,000 | 8 | 942,990 | 7 |
| 1170 | Accounts receivable, net | 4, 6(5) | 196,677 | 1 | 198,594 | 2 |
| 1180 | Accounts receivable - related parties, net | 4, 6(5), 7 | 957,723 | 6 | 852,520 | 6 |
| 1200 | Other receivables | 11,006 | - | 8,764 | - | |
| 1210 | Other receivables - related parties | 7 | 8,978 | - | 7,107 | - |
| 1310 | Inventories, net | 4, 6(6) | 707,003 | 5 | 516,227 | 4 |
| 1410 | Prepayments | 100,998 | 1 | 99,770 | 1 | |
| 1470 | Other current assets | 7 | 28,367 | - | 20,753 | - |
| Total current assets | 5,238,154 | 34 | 4,766,930 | 35 | ||
| 15xx | Non-current assets | |||||
| 1517 | Financial assets at fair value through other comprehensive income | 4, 6(3) | 1,295 | - | - | - |
| 1550 | Investment accounted for using equity method | 4, 6(7) | 1,909,130 | 12 | 1,416,995 | 10 |
| 1600 | Property, plant and equipment, net | 4, 6(8), 7 | 7,943,702 | 52 | 7,390,086 | 54 |
| 1780 | Intangible assets, net | 4, 6(9) | 43,874 | - | 21,981 | - |
| 1840 | Deferred tax assets | 4, 6(24) | 70,494 | - | 71,462 | - |
| 1900 | Other non-current assets | 6(8), 6(10), 7, 8, 9 | 231,746 | 2 | 128,938 | 1 |
| Total non-current assets | 10,200,241 | 66 | 9,029,462 | 65 | ||
| Total Assets | $15,438,395 | 100 | $13,796,392 | 100 |
(The accompanying notes are an integral part of the parent-company-only financial statements.)
Pegavision Corporation
Parent-Company-Only Balance Sheets (Continued)
As of December 31, 2025 and 2024
(Amounts Expressed in Thousands of New Taiwan Dollars)
| Liabilities and Equity | 2025.12.31 | 2024.12.31 | ||||
|---|---|---|---|---|---|---|
| Code | Accounts | Notes | Amount | % | Amount | % |
| 21xx | Current liabilities | |||||
| 2100 | Short-term borrowings | 6(11) | $528,870 | 3 | $351,503 | 3 |
| 2130 | Contract liabilities | 6(18) | 131,273 | 1 | 11,389 | - |
| 2150 | Notes payable | 3,183 | - | 2,122 | - | |
| 2170 | Accounts payable | 281,824 | 2 | 191,701 | 1 | |
| 2200 | Other payables | 6(12) | 1,758,093 | 11 | 1,443,312 | 11 |
| 2220 | Other payables - related parties | 7 | 7,653 | - | 12,198 | - |
| 2230 | Current tax liabilities | 4, 6(24) | 280,152 | 2 | 66,721 | 1 |
| 2250 | Provisions | 4, 6(13) | 4,800 | - | - | - |
| 2300 | Other current liabilities | 6(14), 6(15), 7, 8 | 400,531 | 3 | 331,554 | 2 |
| Total current liabilities | 3,396,379 | 22 | 2,410,500 | 18 | ||
| 25xx | Non-current liabilities | |||||
| 2540 | Non-current portion of long-term borrowings | 6(15), 8 | 337,966 | 3 | 357,588 | 3 |
| 2570 | Deferred tax liabilities | 4, 6(24) | 69,600 | - | 58,550 | - |
| 2645 | Guarantee deposits received | 7 | 3,300 | - | 3,300 | - |
| 2670 | Other non-current liabilities | 6(14) | - | - | 47 | - |
| Total non-current liabilities | 410,866 | 3 | 419,485 | 3 | ||
| Total liabilities | 3,807,245 | 25 | 2,829,985 | 21 | ||
| 31xx | Equity attributable to shareholders of the parent | |||||
| 3100 | Capital | 6(17) | ||||
| 3110 | Common stock | 780,000 | 4 | 780,000 | 5 | |
| 3200 | Capital surplus | 6(17) | 4,269,544 | 28 | 4,269,544 | 31 |
| 3300 | Retained earnings | 6(17) | ||||
| 3310 | Legal reserve | 868,985 | 6 | 685,917 | 5 | |
| 3320 | Special reserve | 19,760 | - | 27,786 | - | |
| 3350 | Unappropriated retained earnings | 5,817,922 | 38 | 5,222,920 | 38 | |
| 3400 | Other equity interest | (125,061) | (1) | (19,760) | - | |
| Total equity | 11,631,150 | 75 | 10,966,407 | 79 | ||
| Total liabilities and equity | $15,438,395 | 100 | $13,796,392 | 100 |
(The accompanying notes are an integral part of the parent-company-only financial statements.)
Pegavision Corporation
Parent-Company-Only Statements of Comprehensive Income
For the Years Ended December 31, 2025 and 2024
(Amounts Expressed in Thousands of New Taiwan Dollars, Except Earnings Per Share)
| Code | Accounts | Notes | 2025 | 2024 | ||
|---|---|---|---|---|---|---|
| Amount | % | Amount | % | |||
| 4000 | Operating revenue | 4, 6(18), 7 | $6,072,328 | 100 | $5,924,458 | 100 |
| 5000 | Operating costs | 6(6), 7 | (3,263,063) | (54) | (2,928,639) | (49) |
| 5900 | Gross profit | 2,809,265 | 46 | 2,995,819 | 51 | |
| 5910 | Unrealized gains (losses) from sales | 24,340 | 1 | 3,140 | - | |
| Gross profit from operations | 2,833,605 | 47 | 2,998,959 | 51 | ||
| 6000 | Operating expenses | 7 | ||||
| 6100 | Selling expenses | (219,614) | (4) | (180,597) | (3) | |
| 6200 | Administrative expenses | (402,899) | (7) | (353,914) | (6) | |
| 6300 | Research and development expenses | (621,211) | (10) | (646,400) | (11) | |
| 6450 | Expected credit gains (losses) | 6(19) | 120 | - | 41,567 | 1 |
| Operating expenses total | (1,243,604) | (21) | (1,139,344) | (19) | ||
| 6900 | Operating income | 1,590,001 | 26 | 1,859,615 | 32 | |
| 7000 | Non-operating income and expenses | 6(22) | ||||
| 7100 | Interest income | 35,577 | 1 | 18,254 | - | |
| 7010 | Other income | 7 | 180,866 | 3 | 42,123 | 1 |
| 7020 | Other gains and losses | 33,015 | 1 | 31,168 | 1 | |
| 7050 | Finance costs | 7 | (48,027) | (1) | (54,325) | (1) |
| 7060 | Share of profit or loss of subsidiaries, associates and joint ventures | 4, 6(7) | 126,294 | 2 | 141,582 | 2 |
| Non-operating income and expense total | 327,725 | 6 | 178,802 | 3 | ||
| 7900 | Income from continuing operations before income tax | 1,917,726 | 32 | 2,038,417 | 35 | |
| 7950 | Income tax | 4, 6(24) | (289,682) | (5) | (207,741) | (4) |
| 8200 | Net income | 1,628,044 | 27 | 1,830,676 | 31 | |
| 8300 | Other comprehensive income (loss) | 6(23) | ||||
| 8310 | Items that not be reclassified to profit or loss | |||||
| 8316 | Unrealized gain (loss) on equity instrument investment measured at fair value through other comprehensive income | (49,585) | (1) | - | - | |
| 8360 | Items that may be reclassified subsequently to profit or loss | |||||
| 8380 | Share of other comprehensive income (loss) of subsidiaries, associates and joint ventures | (55,716) | (1) | 8,026 | - | |
| Total other comprehensive income, net of tax | (105,301) | (2) | 8,026 | - | ||
| 8500 | Total comprehensive income | $1,522,743 | 25 | $1,838,702 | 31 | |
| 9750 | Earnings per share - basic (in NT$) | 4, 6(25) | $20.87 | $23.47 | ||
| 9850 | Earnings per share - diluted (in NT$) | 4, 6(25) | $20.62 | $23.24 |
(The accompanying notes are an integral part of the parent-company-only financial statements.)
Pegavision Corporation
Parent-Company-Only Statements of Changes in Equity
For the Years Ended December 31, 2025 and 2024
(Amounts Expressed in Thousands of New Taiwan Dollars)
| Code | Items | Capital | Capital Surplus | Retained Earnings | Other Components of equity | Total Equity | |||
|---|---|---|---|---|---|---|---|---|---|
| Legal Reserve | Special Reserve | Unappropriated Earnings | Exchange differences arising on translation of foreign operations | Unrealized gain (loss) on financial assets at fair value through other comprehensive income (loss) | |||||
| 3100 | 3200 | 3310 | 3320 | 3350 | 3410 | 3420 | 3XXX | ||
| A1 | Balance as of January 1, 2024 | $780,000 | $4,269,521 | $520,327 | $12,934 | $4,352,686 | $(27,786) | $- | $9,907,682 |
| Appropriation and distribution of 2023 earnings | |||||||||
| B1 | Legal reserve appropriated | 165,590 | (165,590) | - | |||||
| B3 | Special reserve appropriated | 14,852 | (14,852) | - | |||||
| B5 | Cash dividends - common shares | (780,000) | (780,000) | ||||||
| C7 | Changes in associated and joint ventures accounted for using the equity method | 23 | 23 | ||||||
| D1 | Net income for 2024 | 1,830,676 | 1,830,676 | ||||||
| D3 | Other comprehensive income (loss) for 2024 | 8,026 | 8,026 | ||||||
| D5 | Total comprehensive income | - | - | - | - | 1,830,676 | 8,026 | - | 1,838,702 |
| Z1 | Balance as of December 31, 2024 | $780,000 | $4,269,544 | $685,917 | $27,786 | $5,222,920 | $(19,760) | $- | $10,966,407 |
| A1 | Balance as of January 1, 2025 | $780,000 | $4,269,544 | $685,917 | $27,786 | $5,222,920 | $(19,760) | $- | $10,966,407 |
| Appropriation and distribution of 2024 earnings | |||||||||
| B1 | Legal reserve appropriated | 183,068 | (183,068) | - | |||||
| B5 | Cash dividends - common shares | (858,000) | (858,000) | ||||||
| B17 | Reversal of special reserve | (8,026) | 8,026 | - | |||||
| D1 | Net income for 2025 | 1,628,044 | 1,628,044 | ||||||
| D3 | Other comprehensive income (loss) for 2025 | (55,716) | (49,585) | (105,301) | |||||
| D5 | Total comprehensive income | - | - | - | - | 1,628,044 | (55,716) | (49,585) | 1,522,743 |
| Z1 | Balance as of December 31, 2025 | $780,000 | $4,269,544 | $868,985 | $19,760 | $5,817,922 | $(75,476) | $(49,585) | $11,631,150 |
(The accompanying notes are an integral part of the parent-company-only financial statements.)
Pegavision Corporation
Parent-Company-Only Statements of Cash Flows
For the Years Ended December 31, 2025 and 2024
(Amounts Expressed in Thousands of New Taiwan Dollars)
| Code | Items | 2025 | 2024 | Code | Items | 2025 | 2024 |
|---|---|---|---|---|---|---|---|
| AAAA | Cash flows from operating activities: | BBBB | Cash flows from investing activities: | ||||
| A10000 | Net income before tax | $1,917,726 | $2,038,417 | B00010 | Disposal (acquisition) of financial assets at fair value through other comprehensive income | (50,880) | - |
| A20010 | Profit or loss not effecting cash flows: | B00040 | Increase in financial assets measured at amortized cost | (207,010) | 1,077,000 | ||
| A20100 | Depreciation (including right-of-use assets) | 677,758 | 642,542 | B01800 | Acquisition of investment accounted for using the equity method | (397,217) | (509,448) |
| A20200 | Amortization | 23,057 | 17,843 | B02700 | Acquisition of property, plant and equipment | (1,145,202) | (3,107,578) |
| A20300 | Expected credit losses (gain) | (120) | (41,567) | B02800 | Proceeds from disposal of property, plant and equipment | 76 | 30 |
| A20400 | Net loss (gain) of financial assets (liabilities) at fair value through profit or loss | (13,245) | (25,691) | B03700 | Decrease (increase) in refundable deposits | 967 | 12,620 |
| A20900 | Interest expense | 48,027 | 54,325 | B04500 | Acquisition of intangible assets | (44,950) | (20,648) |
| A21200 | Interest income | (35,577) | (18,254) | BBBB | Net cash provided by (used in) investing activities | (1,844,216) | (2,548,024) |
| A22300 | Share of profit or loss of subsidiaries, associates and joint ventures | (126,294) | (141,582) | ||||
| A22500 | Loss (gain) on disposal of property, plant and equipment | 4,674 | (30) | CCCC | Cash flows from financing activities: | ||
| A23700 | Impairment loss on non-financial assets | - | 19,242 | C00100 | Increase in (repayment of) short-term borrowings | 177,367 | (557,117) |
| A23900 | Unrealized (gains) losses | (24,340) | (3,140) | C01600 | Increase in long-term borrowings | - | 205,000 |
| A29900 | Loss (gain) on government grants | - | (1,612) | C01700 | Repayment of long-term borrowings | (20,567) | (13,210) |
| A29900 | Impairment losses on non-financial assets | (278) | (316) | C03000 | Increase (decrease) in guarantee deposits received | - | 2,900 |
| A30000 | Changes in operating assets and liabilities: | C04020 | Payments of lease liabilities | - | (25,280) | ||
| A31115 | Financial assets at fair value through profit or loss | 48,764 | 1,458,002 | C04500 | Dividend distribution | (858,000) | (780,000) |
| A31150 | Accounts receivable | 2,037 | 126,865 | CCCC | Net cash provided by (used in) financing activities | (701,200) | (1,167,707) |
| A31160 | Accounts receivable - related parties | (105,203) | (67,212) | ||||
| A31180 | Other receivables | (2,946) | 3,847 | EEEE | Increase (decrease) in cash and cash equivalents | (7,284) | 105,594 |
| A31190 | Other receivables - related parties | (1,871) | (7,107) | E00100 | Cash and cash equivalents at beginning of period | 1,142,305 | 1,036,711 |
| A31200 | Inventories | (190,776) | (97,142) | E00200 | Cash and cash equivalents at end of period | $1,135,021 | $1,142,305 |
| A31230 | Prepayments | (1,228) | 12,795 | ||||
| A31240 | Other current assets | (7,614) | (2,606) | ||||
| A32125 | Contract liabilities | 119,884 | (20,560) | ||||
| A32130 | Notes payable | 1,061 | 1,533 | ||||
| A32150 | Accounts payable | 90,123 | (35,248) | ||||
| A32180 | Other payables | 119,877 | 109,994 | ||||
| A32190 | Other payables - related parties | (4,635) | (27,316) | ||||
| A32200 | Provision | 4,800 | - | ||||
| A32230 | Other current liabilities | 69,991 | 79,255 | ||||
| A33000 | Cash generated from operations | 2,613,652 | 4,075,277 | ||||
| A33100 | Interest received | 36,281 | 23,650 | ||||
| A33300 | Interest paid | (47,568) | (56,401) | ||||
| A33500 | Income tax paid | (64,233) | (221,201) | ||||
| AAAA | Net cash provided by (used in) operating activities | 2,538,132 | 3,821,325 |
(The accompanying notes are an integral part of the parent-company-only financial statements.)
19
MANAGEMENT REPRESENTATION LETTER
The entities that are required to be included in the combined financial statements of Pegavision Corporation as of December 31, 2025 and for the year then ended under the Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises are the same as those included in the consolidated financial statements prepared in conformity with the International Financial Reporting Standard No. 10, "Consolidated Financial Statements." In addition, the information required to be disclosed in the combined financial statements is included in the consolidated financial statements. Consequently, Pegavision Corporation and Subsidiaries do not prepare a separate set of combined financial statements.
Very truly yours,
Pegavision Corporation
By
Guo, Ming-Dong
Chairman
January 30, 2026
20
INDEPENDENT AUDITORS' REPORT
To : the Board of Directors and Shareholders of
Pegavision Corporation
Opinion
We have audited the accompanying consolidated balance sheets of Pegavision Corporation (the "Company") and its subsidiaries as of December 31, 2025 and 2024, the related consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including the summary of material accounting policies (together referred as "the consolidated financial statements").
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of the Company and its subsidiaries as of December 31, 2025 and 2024, and its consolidated financial performance and cash flows for the years then ended, in conformity with the requirements of the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards, International Accounting Standards, Interpretations developed by the International Financial Reporting Interpretations Committee or the former Standing Interpretations Committee as endorsed and became effective by Financial Supervisory Commission of the Republic of China.
Basis for Opinion
We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Company and its subsidiaries in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China (the "Norm"), and we have fulfilled our other ethical responsibilities in accordance with the Norm. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
21
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of consolidated financial statements for the year ended December 31, 2025. 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.
Revenue Recognition
We determine that revenue recognition is one of the key audit matters. The Group's revenue amounting to NT$7,039,409 thousand for the year ended December 31, 2025 is a significant account to the Group's consolidated financial statements. The Group has conducted these sale activities in multi-marketplace, including Taiwan, China, Japan, etc. Furthermore, the timing of fulfilling performance obligation needs to be determined based on varieties of sale terms and conditions enacted in the main sale contracts or sale orders. We therefore conclude that there are significant risks with respect to the topic of revenue recognition. Our audit procedures therefore include, but not limit to, evaluating the properness of accounting policy for revenue recognition, assessing and testing the effectiveness of relevant internal controls related to revenue recognition, sampling-test of details, including obtaining major sale orders or agreements to inspect the terms and conditions, checking the consistency of the fulfillment timing, performing analytical review procedures on sale revenues, and executing sale cut-off tests, etc. We have also evaluated the appropriateness of the related disclosure in Note 6 to the consolidated financial statements.
Market valuation on Inventory
We determined the market valuation on inventory is also one of key audit matters. The Group's net inventory amounted to NT$881,342 thousand, representing 5% of total assets, as of December 31, 2025, which is significant to the Group's consolidated financial statements. The market of the Group's main products, is characterized by fierce competition and the trend of consumers' preference, management, in timely considering the status of new products development and the demand from clients, has to evaluate the loss due to market value decline as well as write-down on slow-moving inventories to their net realizable value. Our audit procedures therefore include, but not limit to, evaluating the Group's policy with respect to assessment the loss from slow-moving inventory and phased-out items, (including identification method, testing the accuracy of inventory aging schedule, analysis on inventory movement), evaluating the physical inventory stock take plan report provided by the management and choose the significant location to perform the observation, and inspecting the current status of inventory usage, etc. We also evaluated the appropriateness of related disclosure in the Note 5 and 6 to the consolidated financial statements.
22
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the requirements of the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards, International Accounting Standards, Interpretations developed by the International Financial Reporting Interpretations Committee or the former Standing Interpretations Committee as endorsed by Financial Supervisory Commission of the Republic of China and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the ability to continue as a going concern of the Company and its subsidiaries, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company and its subsidiaries 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 financial reporting process of the Company and its subsidiaries.
Auditor's 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 in 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 internal control of the Company and its subsidiaries.
-
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 ability to continue as a going concern of the Company and its subsidiaries. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's 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 auditor's report. However, future events or conditions may cause the Company and its subsidiaries to cease to continue as a going concern.
-
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the accompanying notes, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
-
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company and its subsidiaries 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.
23
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 2025 consolidated financial statements and are therefore the key audit matters. We describe these matters in our auditor's 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.
Other
We have audited and expressed an unqualified opinion on the parent-company-only financial statements of the Company as of and for the years then ended December 31, 2025 and 2024.
/s/Chang, Chih-Ming
/s/Chen, Kuo-Shuai
Ernst & Young
Taiwan, R.O.C.
January 30, 2026
Notice to Readers
The accompanying consolidated financial statements are intended only to present the consolidated financial position, results of operations and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China on Taiwan and not those of any other jurisdictions. The standards, procedures and practice to audit such consolidated financial statements are those generally accepted and applied in the Republic of China on Taiwan.
Accordingly, the accompanying consolidated financial statements and report of independent accountants are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice. As the financial statements are the responsibility of the management, Ernst & Young cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.
24
Pegavision Corporation and Subsidiaries
Consolidated Balance Sheets
As of December 31, 2025 and 2024
(Amounts Expressed In Thousands of New Taiwan Dollars)
| Assets | As of December 31, 2025 | As of December 31, 2024 | ||||
|---|---|---|---|---|---|---|
| Code | Accounts | Notes | Amount | % | Amount | % |
| 11xx | Current assets | |||||
| 1100 | Cash and cash equivalents | 4, 6(1) | $1,708,677 | 11 | $2,002,176 | 14 |
| 1110 | Financial assets at fair value through profit or loss | 4, 6(2) | 1,108,186 | 7 | 1,121,378 | 8 |
| 1136 | Financial assets measured at amortized cost | 6(4) | 1,664,233 | 10 | 1,134,932 | 8 |
| 1170 | Accounts receivable, net | 4, 6(5), 6(19), 7 | 938,058 | 6 | 806,188 | 5 |
| 1200 | Other receivables | 7 | 28,960 | - | 21,001 | - |
| 1220 | Current tax assets | 114 | - | 780 | - | |
| 1310 | Inventories, net | 4, 6(6) | 881,342 | 5 | 671,023 | 5 |
| 1410 | Prepayments | 130,359 | 1 | 119,066 | 1 | |
| 1470 | Other current assets | 76,078 | - | 40,980 | - | |
| Total current assets | 6,536,007 | 40 | 5,917,524 | 41 | ||
| 15xx | Non-current assets | |||||
| 1517 | Financial assets at fair value through other comprehensive income | 4, 6(3) | 1,295 | - | - | - |
| 1535 | Financial assets measured at amortized cost | 6(4), 8 | 37,107 | - | - | - |
| 1550 | Investment accounted for using equity method | 4, 6(7) | 19,408 | - | 19,751 | - |
| 1600 | Property, plant and equipment, net | 4, 6(8), 8, 9 | 8,729,232 | 54 | 7,860,209 | 54 |
| 1755 | Right-of-use assets, net | 4, 6(20) | 419,915 | 3 | 370,874 | 2 |
| 1780 | Intangible assets, net | 4, 6(9) | 43,996 | - | 22,054 | - |
| 1840 | Deferred tax assets | 4, 6(24) | 83,074 | 1 | 83,325 | 1 |
| 1900 | Other non-current assets | 6(8), 6(10),8 | 304,293 | 2 | 272,026 | 2 |
| Total non-current assets | 9,638,320 | 60 | 8,628,239 | 59 | ||
| Total Assets | $16,174,327 | 100 | $14,545,763 | 100 |
(The accompanying notes are an integral part of the consolidated financial statements.)
Pegavision Corporation and Subsidiaries
Consolidated Balance Sheets (Continued)
As of December 31, 2025 and 2024
(Amounts Expressed In Thousands of New Taiwan Dollars)
| Liabilities and Equity | As of December 31, 2025 | As of December 31, 2024 | ||||
|---|---|---|---|---|---|---|
| Code | Accounts | Notes | Amount | % | Amount | % |
| 21xx | Current liabilities | |||||
| 2100 | Short-term borrowings | 6(11) | $564,632 | 3 | $351,503 | 3 |
| 2130 | Contract liabilities | 6(18), 7 | 83,976 | 1 | 55,329 | - |
| 2150 | Notes payable | 17,362 | - | 2,262 | - | |
| 2170 | Accounts payable | 310,216 | 2 | 196,289 | 1 | |
| 2200 | Other payables | 6(12), 7 | 2,048,806 | 13 | 1,684,261 | 12 |
| 2230 | Current tax liabilities | 4, 6(24) | 336,858 | 2 | 118,311 | 1 |
| 2250 | Provisions | 4, 6(13) | 4,800 | - | - | - |
| 2280 | Lease liabilities | 4, 6(20) | 38,155 | - | 31,533 | - |
| 2300 | Other current liabilities | 6(14), 6(15), 8 | 412,961 | 3 | 350,662 | 2 |
| Total current liabilities | 3,817,766 | 24 | 2,790,150 | 19 | ||
| 25xx | Non-current liabilities | |||||
| 2540 | Non-current portion of long-term borrowings | 6(15), 8 | 454,375 | 3 | 548,764 | 4 |
| 2570 | Deferred tax liabilities | 4, 6(24) | 84,738 | 1 | 70,906 | - |
| 2580 | Lease liabilities | 4, 6(20) | 77,794 | - | 73,586 | 1 |
| 2645 | Guarantee deposits received | 7 | 3,792 | - | 3,615 | - |
| 2670 | Other non-current liabilities | 4, 6(14) | - | - | 47 | - |
| Total non-current liabilities | 620,699 | 4 | 696,918 | 5 | ||
| Total liabilities | 4,438,465 | 28 | 3,487,068 | 24 | ||
| 31xx | Equity attributable to shareholders of the parent | |||||
| 3100 | Capital | 6(17) | ||||
| 3110 | Common stock | 780,000 | 5 | 780,000 | 5 | |
| 3200 | Capital surplus | 6(17) | 4,269,544 | 26 | 4,269,544 | 29 |
| 3300 | Retained earnings | 6(17) | ||||
| 3310 | Legal reserve | 868,985 | 5 | 685,917 | 5 | |
| 3320 | Special reserve | 19,760 | - | 27,786 | - | |
| 3350 | Unappropriated retained earnings | 5,817,922 | 36 | 5,222,920 | 36 | |
| 3400 | Other equity interest | (125,061) | (1) | (19,760) | - | |
| 36xx | Non-controlling interests | 6(17) | 104,712 | 1 | 92,288 | 1 |
| Total equity | 11,735,862 | 72 | 11,058,695 | 76 | ||
| Total liabilities and equity | $16,174,327 | 100 | $14,545,763 | 100 |
(The accompanying notes are an integral part of the consolidated financial statements.)
Pegavision Corporation and Subsidiaries
Consolidated Statements Of Comprehensive Incomes
For the Years Ended December 31, 2025 and 2024
(Amounts Expressed in Thousands of New Taiwan Dollars, Except for Earnings per Share)
| Code | Items | Notes | 2025 | 2024 | ||
|---|---|---|---|---|---|---|
| Amount | % | Amount | % | |||
| 4000 | Operating revenue | 4, 6(18), 7 | $7,039,409 | 100 | 6,817,305 | 100 |
| 5000 | Operating costs | 6(6), 7 | (3,361,010) | (48) | (2,993,356) | (44) |
| 5900 | Gross profit | 3,678,399 | 52 | 3,823,949 | 56 | |
| 6000 | Operating expenses | 7 | ||||
| 6100 | Selling expenses | (731,586) | (10) | (689,611) | (10) | |
| 6200 | Administrative expenses | (515,017) | (7) | (443,114) | (7) | |
| 6300 | Research and development expenses | (624,683) | (9) | (646,167) | (10) | |
| 6450 | Expected credit gains (losses) | 6(19) | (175) | - | 41,733 | 1 |
| Operating expenses total | (1,871,461) | (26) | (1,737,159) | (26) | ||
| 6900 | Operating income | 1,806,938 | 26 | 2,086,790 | 30 | |
| 7000 | Non-operating income and expenses | 6(22) | ||||
| 7100 | Interest income | 46,199 | 1 | 26,691 | - | |
| 7010 | Other income | 7 | 180,723 | 2 | 45,211 | 1 |
| 7020 | Other gains or losses | 38,503 | 1 | 33,945 | 1 | |
| 7050 | Finance costs | 7 | (53,274) | (1) | (59,754) | (1) |
| 7060 | Share of profit or loss of associates and joint ventures accounted | 4, 6(7) | (343) | - | (89) | - |
| Total non-operating incomes and expenses | 211,808 | 3 | 46,004 | 1 | ||
| 7900 | Income from continuing operations before income tax | 2,018,746 | 29 | 2,132,794 | 31 | |
| 7950 | Income tax | 4, 6(24) | (368,281) | (5) | (279,310) | (4) |
| 8200 | Net income | 1,650,465 | 24 | 1,853,484 | 27 | |
| 8300 | Other comprehensive income (loss) | 6(23) | ||||
| 8310 | Items that not be reclassified to profit or loss | |||||
| 8316 | Unrealized gain (loss) on equity instrument investment measured at fair value through other comprehensive income | (49,585) | (1) | - | - | |
| 8360 | Items that may be reclassified subsequently to profit or loss | |||||
| 8380 | Exchange differences resulting from translating the financial statements of a foreign operation | (56,800) | (1) | 9,516 | - | |
| 8399 | Income tax relating to components of other comprehensive income | 87 | - | (52) | - | |
| Total other comprehensive income, net of tax | (106,298) | (2) | 9,464 | - | ||
| 8500 | Total comprehensive income | $1,544,167 | 22 | $1,862,948 | 27 | |
| 8600 | Net income (loss) attributable to: | |||||
| 8610 | Shareholders of the parent | $1,628,044 | 23 | $1,830,676 | 27 | |
| 8620 | Non-controlling interests | 22,421 | 1 | 22,808 | - | |
| $1,650,465 | 24 | $1,853,484 | 27 | |||
| 8700 | Comprehensive income (loss) attributable to: | |||||
| 8710 | Shareholders of the parent | $1,522,743 | 22 | $1,838,702 | 27 | |
| 8720 | Non-controlling interests | 21,424 | - | 24,246 | - | |
| $1,544,167 | 22 | $1,862,948 | 27 | |||
| 9750 | Earnings per share-basic (in NTD) | 4, 6(25) | $20.87 | $23.47 | ||
| 9850 | Earnings per share-diluted (in NTD) | 4, 6(25) | $20.62 | $23.24 |
(The accompanying notes are an integral part of the consolidated financial statements.)
Pegavision Corporation and Subsidiaries
Consolidated Statements of Changes in Equity
For the Years Ended December 31, 2025 and 2024
(Amounts Expressed In Thousands of New Taiwan Dollars)
| Code | Items | Equity Attributable to Shareholders of the Parent | Non-controlling interests | Total Equity | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Capital | Capital Surplus | Retained Earnings | Other Components of equity | ||||||||
| Legal Reserve | Special reserve | Unappropriated Earnings | Exchange differences arising on translation of foreign operations | Unrealized gain (loss) on financial assets at fair value through other comprehensive income (loss) | Total | ||||||
| 3100 | 3200 | 3310 | 3320 | 3350 | 3410 | 3420 | 31XX | 36XX | 3XXX | ||
| A1 | Balance as of January 1, 2024 | $780,000 | $4,269,521 | $520,327 | $12,934 | $4,352,686 | $(27,786) | $- | $9,907,682 | $72,558 | $9,980,240 |
| Appropriation and distribution of 2023 earnings | |||||||||||
| B1 | Legal reserve appropriated | 165,590 | (165,590) | - | - | ||||||
| B3 | Special reserve appropriated | 14,852 | (14,852) | - | - | ||||||
| B5 | Cash dividends-common shares | (780,000) | (780,000) | (780,000) | |||||||
| C7 | Changes in associates and joint ventures accounted for using the equity method | 23 | 23 | 23 | |||||||
| D1 | Net income for 2024 | 1,830,676 | 1,830,676 | 22,808 | 1,853,484 | ||||||
| D3 | Other comprehensive income (loss) for 2024 | 8,026 | 8,026 | 1,438 | 9,464 | ||||||
| D5 | Total comprehensive income | - | - | - | - | 1,830,676 | 8,026 | - | 1,838,702 | 24,246 | 1,862,948 |
| O1 | Non-controlling interests | (4,516) | (4,516) | ||||||||
| Z1 | Balance as of December 31, 2024 | $780,000 | $4,269,544 | $685,917 | $27,786 | $5,222,920 | ($19,760) | $- | $10,966,407 | $92,288 | $11,058,695 |
| A1 | Balance as of January 1, 2025 | $780,000 | $4,269,544 | $685,917 | $27,786 | $5,222,920 | $(19,760) | $- | $10,966,407 | $92,288 | $11,058,695 |
| Appropriation and distribution of 2024 earnings | |||||||||||
| B1 | Legal reserve appropriated | 183,068 | (183,068) | - | - | ||||||
| B5 | Cash dividends-common shares | (858,000) | (858,000) | (858,000) | |||||||
| B17 | Reversal of special reserve | (8,026) | 8,026 | - | - | ||||||
| D1 | Net income for 2025 | 1,628,044 | 1,628,044 | 22,421 | 1,650,465 | ||||||
| D3 | Other comprehensive income (loss) for 2025 | (55,716) | (49,585) | (105,301) | (997) | (106,298) | |||||
| D5 | Total comprehensive income | - | - | - | - | 1,628,044 | (55,716) | (49,585) | 1,522,743 | 21,424 | 1,544,167 |
| O1 | Non-controlling interests | (9,000) | (9,000) | ||||||||
| Z1 | Balance as of December 31, 2025 | $780,000 | $4,269,544 | $868,985 | $19,760 | $5,817,922 | $(75,476) | $(49,585) | $11,631,150 | $104,712 | $11,735,862 |
(The accompanying notes are an integral part of the consolidated financial statements.)
Pegavision Corporation and Subsidiaries
Consolidated Statements of Cash Flows
For the Years Ended December 31, 2025 and 2024
(Amounts Expressed in Thousands of New Taiwan Dollars)
| Code | Items | 2025 | 2024 | Code | Items | 2025 | 2024 |
|---|---|---|---|---|---|---|---|
| AAAA | Cash flows from operating activities: | BBBB | Cash flows from investing activities: | ||||
| A10000 | Income before income tax | $2,018,746 | $2,132,794 | B00010 | Disposal (acquisition) of financial assets | (50,880) | - |
| A20000 | Adjustments: | at fair value through other comprehensive income | |||||
| A20010 | Profit or loss not effecting cash flows: | B00040 | Financial assets measured at amortized cost (increase) decrease | (566,408) | 963,437 | ||
| A20100 | Depreciation (including right-of-use assets) | 750,967 | 709,315 | B02700 | Acquisition of property, plant and equipment | (1,408,510) | (3,320,046) |
| A20200 | Amortization | 23,135 | 18,134 | B02800 | Proceeds from disposal of property, plant and equipment | 76 | 30 |
| A20300 | Expected credit losses (gain) | 175 | (41,733) | B03800 | (Increase) decrease in refundable deposits | (1,421) | 13,922 |
| A20400 | Net loss (gain) of financial assets (liabilities) at fair value through profit or loss | (15,478) | (29,416) | B04500 | Acquisition of intangible assets | (45,077) | (20,648) |
| B05350 | Acquisition of right-of use assets | (63,844) | (112,795) | ||||
| A20900 | Interest expense | 53,274 | 59,754 | BBBB | Net cash provided by (used in) investing activities | (2,136,064) | (2,476,100) |
| A21200 | Interest income | (46,199) | (26,691) | ||||
| A22300 | Share of profit or loss of associates and joint ventures | 343 | 89 | CCCC | Cash flows from financing activities | ||
| A22500 | Loss (gain) on disposal of property, plant and equipment | 6,530 | 192 | C00100 | Increase in (repayment of) short-term borrowings | 213,129 | (557,117) |
| A23100 | Loss (gain) on disposal of investment | (415) | - | C01600 | Increase in long-term borrowings | - | 232,369 |
| A23700 | Impairment loss on non-financial assets | - | 19,242 | C01700 | Repayment of long-term borrowings | (94,850) | (55,666) |
| A29900 | Gain on lease modification | (568) | (1,805) | C03000 | Increase (decrease) in guarantee deposits received | 177 | 2,611 |
| A29900 | Gain on government grants | (278) | (316) | C04020 | Payments of lease liabilities | (41,913) | (66,298) |
| A30000 | Changes in operating assets and liabilities: | C04500 | Dividend distribution | (858,000) | (780,000) | ||
| A31115 | Financial assets at fair value through profit or loss | 28,670 | 1,543,503 | C05800 | Non-controlling interests changed | (9,000) | (4,516) |
| A31150 | Accounts receivable | (132,042) | 66,581 | CCCC | Net cash provided by (used in) financing activities | (790,457) | (1,228,617) |
| A31180 | Other receivables | (6,961) | 8,734 | ||||
| A31200 | Inventories | (210,319) | (87,544) | DDDD | Effect of exchange rate changes | (25,442) | 5,576 |
| A31230 | Prepayments | (11,293) | 8,069 | ||||
| A31240 | Other current assets | (35,098) | 22,573 | EEEE | Increase (decrease) in cash and cash equivalents | (293,499) | 501,674 |
| A32125 | Contract liabilities | 28,647 | (32,025) | E00100 | Cash and cash equivalents at beginning of period | 2,002,176 | 1,500,502 |
| A32130 | Notes payable | 15,100 | 1,673 | E00200 | Cash and cash equivalents at end of period | $1,708,677 | $2,002,176 |
| A32150 | Accounts payable | 113,927 | (36,438) | ||||
| A32180 | Other payables | 149,564 | 111,024 | ||||
| A32200 | Provision | 4,800 | - | ||||
| A32230 | Other current liabilities | 63,367 | 79,774 | ||||
| A32000 | Cash generated from operations | 2,798,594 | 4,525,483 | ||||
| A33100 | Interest received | 45,160 | 31,586 | ||||
| A33300 | Interest paid | (51,129) | (60,348) | ||||
| A33500 | Income tax paid | (134,161) | (295,906) | ||||
| AAAA | Net cash provided by (used in) operating activities | 2,658,464 | 4,200,815 |
(The accompanying notes are an integral part of the consolidated financial statements.)
Attachment 4
Pegavision Corporation Earnings Appropriation Report 2025
Unit: NTD
| Item | Amount |
|---|---|
| Opening undistributed earnings | 4,189,878,256 |
| Plus: 2025 net income | 1,628,044,179 |
| Subtotal | 5,817,922,435 |
| Provisions: | |
| Provision for legal reserve (10%) | (162,804,418) |
| Provision for special reserve | (105,301,183) |
| Subtotal of distributable earnings for the year | 5,549,816,834 |
| Distributions: | |
| Shareholders' dividends - NT$10 cash per share | (780,000,000) |
| Closing undistributed earnings | 4,769,816,834 |
| Note 1: The appropriation will be allocated out of 2025 earnings as a priority. |
Chairman: Peter Kuo
President: Te-Sheng Yang
Head of Accounting: Ching-Hsiang Wang
30