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Shuttle — Annual Report 2025
Apr 30, 2026
52059_rns_2026-04-30_31a95a2c-c68a-42ec-aa31-53f300a1534c.pdf
Annual Report
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Shuttle Inc. and Subsidiaries
Consolidated Financial Statements for the Years Ended December 31, 2025 and 2024 and Independent Auditors' Report
DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES
The companies required to be included in the consolidated financial statements of affiliates in accordance with the "Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises" for the year ended December 31, 2025 are all the same as the companies required to be included in the consolidated financial statements of parent and subsidiary companies as provided in International Accounting Standard 10 "Consolidated and Separate Financial Statements". Relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies. Hence, we do not prepare a separate set of consolidated financial statements of affiliates.
Very truly yours,
SHUTTLE INC.
By
LI-NA YU
Chairman
March 10, 2026
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INDEPENDENT AUDITORS' REPORT
The Board of Directors and Shareholders
Shuttle Inc.
Opinion
We have audited the accompanying consolidated financial statements of Shuttle Inc. (the "Company") and its subsidiaries (collectively referred to as the "Group"), which comprise the consolidated balance sheets as of December 31, 2025 and 2024, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended and the notes to the consolidated financial statements, including material accounting policy information (collectively referred to as the "consolidated financial statements").
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2025 and 2024 and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC) and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.
Basis for Opinion
We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the 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.
Key audit matters identified during the audit of the Group’s consolidated financial statements for the year ended December 31, 2025 are stated as follows:
Revenue Recognition - Medical Devices Segment
The medical device segment, including those in Carilex Medical Inc. and its subsidiaries, is selling air mattresses and medical peripherals. The medical device segment is an important business in which the Group has focused on development and the sales market is mainly in overseas areas, causing long shipping time in terms of FOB and DDU agreed-upon sales contracts with customers, which increase the complexity of revenue recognition. Hence, we identified revenue recognition as a key audit matter. For details about revenue from the medical devices segment, refer to Note 33.
Our main audit procedures performed with respect to the above key audit matter are described here. We obtained an understanding, and tested the design and operating effectiveness, of key internal controls over the sales process of the medical device business. We reviewed the main customers’ basic information and credit limits and tested the process of sales transactions with these customers to identify exceptions. Also, we performed tests of details by selecting samples from sales subledgers and inspecting sales orders, shipping documents, bills of customs clearances, and other documents relevant to the samples. We audited and verified the transaction authenticity and completeness of revenue recognition.
Other Matter
We have also audited the parent company only financial statements of Shuttle Inc. as of and for the years ended December 31, 2025 and 2024 on which we have issued unmodified opinions.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
Those charged with governance, including the audit committee, are responsible for overseeing the Group’s financial reporting process.
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Auditors' Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
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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.
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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.
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Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
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Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the 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.
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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.
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Obtain sufficient and appropriate audit evidence regarding the financial information of entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision, and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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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 consolidated financial statements for the year ended December 31, 2025 and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
The engagement partners on the audits resulting in this independent auditors' report are Kuan-Hao Lee and I-Chi Chien.
Deloitte & Touche
Taipei, Taiwan
Republic of China
March 26, 2026
Notice to Readers
The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such consolidated financial statements are those generally applied in the Republic of China.
For the convenience of readers, the independent auditors' report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors' report and consolidated financial statements shall prevail.
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SHUTTLE INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars)
| 2025 | 2024 | |||
|---|---|---|---|---|
| ASSETS | Amount | % | Amount | % |
| CURRENT ASSETS | ||||
| Cash and cash equivalents (Notes 4 and 6) | $ 869,340 | 20 | $ 932,327 | 21 |
| Financial assets at fair value through profit or loss - current (Notes 4 and 7) | 1,969 | - | 4,931 | - |
| Financial assets at fair value through other comprehensive income - current (Notes 4 and 8) | 26,093 | 1 | 26,034 | 1 |
| Trade receivables from unrelated parties (Notes 4 and 9) | 215,055 | 5 | 176,503 | 4 |
| Other receivables (Notes 4 and 9) | 5,733 | - | 13,748 | - |
| Current tax assets (Note 4) | 15,034 | - | 17,528 | - |
| Inventories (Notes 4, 5 and 10) | 645,945 | 15 | 631,786 | 14 |
| Prepayments (Notes 11 and 29) | 35,599 | 1 | 28,210 | 1 |
| Other current assets (Note 17) | 60,122 | 1 | 74,978 | 2 |
| Total current assets | 1,874,890 | 43 | 1,906,045 | 43 |
| NON-CURRENT ASSETS | ||||
| Financial assets at fair value through profit or loss - non-current (Notes 4 and 7) | 22,817 | 1 | - | - |
| Financial assets at fair value through other comprehensive income - non-current (Notes 4 and 8) | 236,233 | 5 | 236,105 | 5 |
| Investments accounted for using the equity method (Notes 4 and 13) | 36,719 | 1 | 37,608 | 1 |
| Property, plant and equipment (Notes 4, 14 and 30) | 1,089,007 | 25 | 1,085,332 | 25 |
| Right-of-use assets (Notes 4 and 15) | 139,290 | 3 | 141,868 | 3 |
| Goodwill (Note 4) | 54,565 | 1 | 54,565 | 1 |
| Other intangible assets (Notes 4 and 16) | 138,368 | 3 | 154,834 | 4 |
| Deferred tax assets (Notes 4 and 24) | 129,625 | 3 | 114,462 | 3 |
| Other non-current assets (Notes 4, 17 and 30) | 667,893 | 15 | 669,563 | 15 |
| Total non-current assets | 2,514,517 | 57 | 2,494,337 | 57 |
| TOTAL | $ 4,389,407 | 100 | $ 4,400,382 | 100 |
| LIABILITIES AND EQUITY | ||||
| CURRENT LIABILITIES | ||||
| Short-term borrowings (Notes 18 and 30) | $ 130,000 | 3 | $ 50,000 | 1 |
| Contract liabilities (Note 33) | 17,021 | - | 14,148 | 1 |
| Trade payables to unrelated parties | 189,616 | 4 | 144,905 | 3 |
| Other payables (Note 19) | 152,477 | 4 | 151,098 | 4 |
| Current tax liabilities - current (Note 4) | 3,882 | - | 3,163 | - |
| Provisions (Notes 4 and 20) | 63,947 | 1 | 58,092 | 1 |
| Lease liabilities - current (Notes 4 and 15) | 72,029 | 2 | 54,402 | 1 |
| Other current liabilities | 34,520 | 1 | 6,804 | - |
| Total current liabilities | 663,492 | 15 | 482,612 | 11 |
| NON-CURRENT LIABILITIES | ||||
| Current tax liabilities - non-current (Note 4) | - | - | 716 | - |
| Deferred tax liabilities (Notes 4 and 24) | 7,460 | - | 2,494 | - |
| Lease liabilities - non-current (Notes 4 and 15) | 121,174 | 3 | 152,466 | 4 |
| Other non-current liabilities (Note 30) | 2,739 | - | 2,135 | - |
| Total non-current liabilities | 131,373 | 3 | 157,811 | 4 |
| Total liabilities | 794,865 | 18 | 640,423 | 15 |
| EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Note 22) | ||||
| Ordinary shares | 3,434,273 | 78 | 3,434,273 | 78 |
| Capital surplus | 36,688 | 1 | 42,763 | 1 |
| Retained earnings | ||||
| Legal reserve | 33,240 | 1 | 33,240 | 1 |
| Special reserve | 23,713 | - | 23,713 | - |
| Unappropriated earnings | 462 | - | 127,706 | 3 |
| Total retained earnings | 57,415 | 1 | 184,659 | 4 |
| Other equity | (44,553) | (1) | (34,894) | (1) |
| Total equity attributable to owners of the Company | 3,483,823 | 79 | 3,626,801 | 82 |
| NON-CONTROLLING INTERESTS | 110,719 | 3 | 133,158 | 3 |
| Total equity | 3,594,542 | 82 | 3,759,959 | 85 |
| TOTAL | $ 4,389,407 | 100 | $ 4,400,382 | 100 |
The accompanying notes are an integral part of the consolidated financial statements.
SHUTTLE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars, Except (Losses) Earnings Per Share)
| 2025 | 2024 | |||
|---|---|---|---|---|
| Amount | % | Amount | % | |
| OPERATING REVENUE (Notes 4 and 33) | ||||
| Sales | $ 1,764,793 | 101 | $ 1,681,309 | 101 |
| Less: Sales returns and allowances | 23,198 | 1 | 14,264 | 1 |
| Total operating revenue | 1,741,595 | 100 | 1,667,045 | 100 |
| OPERATING COSTS (Notes 4, 10 and 23) | ||||
| Cost of goods sold | 1,101,467 | 63 | 982,756 | 59 |
| GROSS PROFIT | 640,128 | 37 | 684,289 | 41 |
| OPERATING EXPENSES (Notes 4, 9, 23 and 29) | ||||
| Selling and marketing expenses | 374,779 | 21 | 373,457 | 22 |
| General and administrative expenses | 183,568 | 11 | 193,503 | 12 |
| Research and development expenses | 176,265 | 10 | 166,485 | 10 |
| Expected credit (gain) loss | (2,573) | - | 1,050 | - |
| Total operating expenses | 732,039 | 42 | 734,495 | 44 |
| LOSS FROM OPERATIONS | (91,911) | (5) | (50,206) | (3) |
| NON-OPERATING INCOME AND EXPENSES | ||||
| Interest income | 15,444 | 1 | 30,959 | 2 |
| Other income (Notes 4 and 23) | 11,046 | 1 | 13,777 | 1 |
| Other gains and losses (Notes 4 and 23) | (11,110) | (1) | 34,470 | 2 |
| Finance costs (Note 23) | (7,397) | (1) | (7,604) | (1) |
| Share of loss of joint ventures (Notes 4 and 13) | (150) | - | (228) | - |
| Total non-operating income and expenses | 7,833 | - | 71,374 | 4 |
| (LOSS) PROFIT BEFORE INCOME TAX | (84,078) | (5) | 21,168 | 1 |
| INCOME TAX BENEFIT (EXPENSE) (Notes 4 and 24) | 3,659 | - | (11,364) | - |
| NET (LOSS) PROFIT FOR THE YEAR | (80,419) | (5) | 9,804 | 1 |
| OTHER COMPREHENSIVE INCOME | ||||
| Items that will not be reclassified subsequently to profit or loss: | ||||
| Unrealized (loss) gain on investments in equity instruments at fair value through other comprehensive income (Notes 4 and 22) | (7,032) | - | (3,824) | - |
| (Continued) |
SHUTTLE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars, Except (Losses) Earnings Per Share)
| 2025 | 2024 | |||
|---|---|---|---|---|
| Amount | % | Amount | % | |
| Items that may be reclassified subsequently to profit or loss: | ||||
| Exchange differences on translating foreign operations (Note 4) | $ (2,523) | - | $ 24,299 | 1 |
| Income tax relating to items that may be reclassified subsequently to profit or loss (Notes 4 and 24) | 294 | - | (4,999) | - |
| Other comprehensive income for the year, net of income tax | (9,261) | - | 15,476 | 1 |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR | $ (89,680) | (5) | $ 25,280 | 2 |
| NET (LOSS) PROFIT ATTRIBUTABLE TO: | ||||
| Owners of the Company | $ (68,872) | (4) | $ 10,805 | 1 |
| Non-controlling interests | (11,547) | (1) | (1,001) | - |
| $ (80,419) | (5) | $ 9,804 | 1 | |
| TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO: | ||||
| Owners of the Company | $ (78,520) | (4) | $ 25,949 | 2 |
| Non-controlling interests | (11,160) | (1) | (669) | - |
| $ (89,680) | (5) | $ 25,280 | 2 | |
| (LOSSES) EARNINGS PER SHARE (Note 25) | ||||
| Basic | $ (0.20) | $ 0.03 | ||
| Diluted | $ (0.20) | $ 0.03 |
The accompanying notes are an integral part of the consolidated financial statements.
(Concluded)
SHUTTLE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars)
| Equity Attributable to Owners of the Company | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Share Capital | Capital Surplus | Retained Earnings | Exchange Differences on Translating Foreign Operations | Other Equity | Non-controlling Interests | Total Equity | ||||
| Legal Reserve | Special Reserve | Unappropriated Earnings | Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income | Total Other Equity | ||||||
| BALANCE, JANUARY 1, 2024 | $ 3,434,273 | $ 52,526 | $ 30,822 | $ 27,631 | $ 173,795 | $ (18,884) | $ (31,165) | $ (50,049) | $ 155,663 | $ 3,824,661 |
| Appropriation of earnings | ||||||||||
| Legal reserve | - | - | 2,418 | - | (2,418) | - | - | - | - | - |
| Special reserve | - | - | - | (3,918) | 3,918 | - | - | - | - | - |
| Cash dividends distributed by the Company (NT$0.17 per share) | - | - | - | - | (58,383) | - | - | - | - | (58,383) |
| Cash dividends distributed to non-controlling interests by subsidiaries | - | - | - | - | - | - | - | - | (11,050) | (11,050) |
| Changes in percentage of ownership interests in subsidiaries | - | (9,763) | - | - | - | - | - | - | (10,786) | (20,549) |
| Net profit for the year ended December 31, 2024 | - | - | - | - | 10,805 | - | - | - | (1,001) | 9,804 |
| Other comprehensive income (loss) for the year ended December 31, 2024, net of income tax | - | - | - | - | - | 18,968 | (3,824) | 15,144 | 332 | 15,476 |
| Total comprehensive income (loss) for the year ended December 31, 2024 | - | - | - | - | 10,805 | 18,968 | (3,824) | 15,144 | (669) | 25,280 |
| Disposals of investments in equity instruments designated as at fair value through other comprehensive income | - | - | - | - | (11) | - | 11 | 11 | - | - |
| BALANCE, DECEMBER 31, 2024 | 3,434,273 | 42,763 | 33,240 | 23,713 | 127,706 | 84 | (34,978) | (34,894) | 133,158 | 3,759,959 |
| Appropriation of earnings | ||||||||||
| Legal reserve | - | - | - | - | - | - | - | - | - | - |
| Special reserve | - | - | - | - | - | - | - | - | - | - |
| Cash dividends distributed by the Company (NT$0.17 per share) | - | - | - | - | (58,383) | - | - | - | - | (58,383) |
| Cash dividends distributed to non-controlling interests by subsidiaries | - | - | - | - | - | - | - | - | (3,222) | (3,222) |
| Changes in percentage of ownership interests in subsidiaries | - | (6,075) | - | - | - | - | - | - | (8,057) | (14,132) |
| Issuance of ordinary shares under employee share options by subsidiaries | - | - | - | - | - | - | - | - | - | - |
| Net profit for the year ended December 31, 2025 | - | - | - | - | (68,872) | - | - | - | (11,547) | (80,419) |
| Other comprehensive income (loss) for the year ended December 31, 2025, net of income tax | - | - | - | - | - | (2,616) | (7,032) | (9,648) | 387 | (9,261) |
| Total comprehensive income (loss) for the year ended December 31, 2025 | - | - | - | - | (68,872) | (2,616) | (7,032) | (9,648) | (11,160) | (89,680) |
| Disposals of investments in equity instruments designated as at fair value through other comprehensive income | - | - | - | - | 11 | - | (11) | (11) | - | - |
| BALANCE, DECEMBER 31, 2025 | $ 3,434,273 | $ 36,688 | $ 33,240 | $ 23,713 | $ 462 | $ (2,532) | $ (42,021) | $ (44,553) | $ 110,719 | $ 3,594,542 |
The accompanying notes are an integral part of the consolidated financial statements.
SHUTTLE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars)
| 2025 | 2024 | |
|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | ||
| (Loss) profit before income tax | $ (84,078) | $ 21,168 |
| Adjustments for: | ||
| Depreciation expenses | 65,939 | 58,117 |
| Amortization expenses | 24,603 | 30,008 |
| (Reversal of) expected credit loss recognized on trade receivables | (2,573) | 1,050 |
| Net loss (gain) on financial assets and liabilities at fair value through profit or loss | 3,098 | (3,991) |
| Finance costs | 7,397 | 7,604 |
| Interest income | (15,444) | (30,959) |
| Dividend income | (1,437) | (1,552) |
| Share of profit or loss of joint ventures | 150 | 228 |
| (Gain) loss on disposal of property, plant and equipment | (285) | 2,869 |
| Write-downs of inventories | 80,731 | 74,580 |
| Unrealized gain on foreign currency exchange | (11,969) | (5,042) |
| Recognition of provisions | 5,703 | 161 |
| Changes in operating assets and liabilities: | ||
| Trade receivables | (31,511) | (22,997) |
| Other receivables | 7,778 | (9,129) |
| Inventories | (90,064) | (35,022) |
| Prepayments | (15,413) | (6,757) |
| Other current assets | 14,854 | (20,121) |
| Contract liabilities | 3,157 | (12,314) |
| Trade payables | 43,201 | 52,227 |
| Other payables | 1,661 | (11,020) |
| Provisions | (1,099) | (928) |
| Other current liabilities | 27,716 | (6,765) |
| Cash generated from operations | 32,115 | 81,415 |
| Interest paid | (7,354) | (7,584) |
| Income tax paid | (3,957) | (38,565) |
| Net cash generated from operating activities | 20,804 | 35,266 |
| CASH FLOWS USED IN INVESTING ACTIVITIES | ||
| Purchase of financial assets at fair value through other comprehensive income | (7,229) | (39,322) |
| Purchase of financial assets at fair value through profit or loss | (22,953) | - |
| Proceeds from sale of financial assets at fair value through profit or loss | - | 2,365 |
| Acquisition of property, plant and equipment | (15,123) | (8,630) |
| Proceeds from disposal of property, plant and equipment | 359 | 138 |
| Acquisition of intangible assets | (362) | (364) |
| Decrease (increase) in other non-current assets | 16,718 | (1,124) |
| Acquisition of subsidiary shares | (14,132) | (20,598) |
| Increase in other prepayments | (16,596) | (252,150) |
| (Continued) |
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SHUTTLE INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars)
| 2025 | 2024 | |
|---|---|---|
| Interest received | $ 15,681 | $ 31,847 |
| Dividends received | 1,437 | 1,552 |
| Net cash used in investing activities | (42,200) | (286,286) |
| CASH FLOWS USED IN FINANCING ACTIVITIES | ||
| Increase in short-term borrowings | 80,000 | - |
| Repayment of the principal portion of lease liabilities | (66,888) | (57,913) |
| Increase (decrease) other non-current liabilities | 685 | (290) |
| Dividends paid to owners of the Company | (58,383) | (58,383) |
| Partial disposal of interests in subsidiary without a loss of control | - | 49 |
| Cash dividends distributed to noncontrolling interests | (3,222) | (11,050) |
| Net cash used in financing activities | (47,808) | (127,587) |
| EFFECT OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH AND CASH EQUIVALENTS HELD IN FOREIGN CURRENCIES | 6,217 | 15,823 |
| NET DECREASE IN CASH AND CASH EQUIVALENTS | (62,987) | (362,784) |
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR | 932,327 | 1,295,111 |
| CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR | $ 869,340 | $ 932,327 |
The accompanying notes are an integral part of the consolidated financial statements.
(Concluded)
SHUTTLE INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)
1. ORGANIZATION AND OPERATIONS
Shuttle Inc. (the "Company," the Company and its subsidiaries are collectively referred to as the "Group") was incorporated in June 1983. The Company is engaged in manufacturing and selling barebones, mainboards, medical devices, other computer and medical device peripherals, as well as providing related technical services. The Company's shares were listed and traded on the Taipei Exchange (TPEx) Mainboard from December 8, 1998 until the shares became listed and traded on the Taiwan Stock Exchange (TWSE) starting on March 17, 2000.
The consolidated financial statements are presented in the Company's functional currency, New Taiwan dollars.
2. APPROVAL OF CONSOLIDATED FINANCIAL STATEMENTS
The consolidated financial statements were approved by the Company's board of directors and authorized for issue on March 10, 2026.
3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS
a. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the "IFRS Accounting Standards") endorsed and issued into effect by the FSC
The initial application of the IFRS Accounting Standards endorsed and issued into effect by the FSC did not have material impact on the Group's accounting policies.
b. The IFRS Accounting Standards endorsed by the FSC for application starting from 2026
| New, Amended and Revised Standards and Interpretations | Effective Date Announced by IASB |
|---|---|
| Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” | January 1, 2026 |
| Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity” | January 1, 2026 |
| Annual Improvements to IFRS Accounting Standards - Volume 11 | January 1, 2026 |
| IFRS 17 “Insurance Contracts” (including the 2020 and 2021 amendments to IFRS 17) | January 1, 2023 |
As of the date the consolidated financial statements were authorized for issue, the Group has assessed that the application of other standards and interpretations will not have a material impact on the Group's financial position and financial performance.
c. The IFRS Accounting Standards in issue but not yet endorsed and issued into effect by the FSC
| New, Amended and Revised Standards and Interpretations | Effective Date Announced by IASB (Note 1) |
|---|---|
| Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture” | To be determined by IASB |
| IFRS 18 “Presentation and Disclosure in Financial Statements” | January 1, 2027 (Note 2) |
| IFRS 19 “Subsidiaries without Public Accountability: Disclosures” (including the 2025 amendments to IFRS 19) | January 1, 2027 |
| Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency” | January 1, 2027 |
Note 1: Unless stated otherwise, the above IFRS Accounting Standards are effective for annual reporting periods beginning on or after their respective effective dates.
Note 2: On September 25, 2025, the FSC announced that IFRS 18 will take effect starting from January 1, 2028. Domestic entities could elect to apply IFRS 18 for an earlier period after the endorsement of IFRS 18 by the FSC.
IFRS 18 “Presentation and Disclosure in Financial Statements” and consequential amendments
IFRS 18 will supersede IAS 1 “Presentation of Financial Statements”. The main changes comprise:
- To classify items of income and expenses presented in the statement of profit or loss into the operating, investing, financing, income taxes and discontinued operations categories, the Group shall assess whether it has specified main business activities of investing in particular types of assets and providing financing to customers.
- The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.
- Provides guidance to enhance the requirements of aggregation and disaggregation: The Group shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Group shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Group labels items as “other” only if it cannot find a more informative label.
- Disclosures on Management-defined Performance Measures (MPMs): When in public communications outside financial statements and communicating to users of financial statements management’s view of an aspect of the financial performance of the Group as a whole, the Group shall disclose related information about its MPMs in a single note to the financial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards and the income tax and non-controlling interests effects of related reconciliation items.
In addition, the following consequential amendments have been made to IAS 7 “Statement of Cash Flows”:
-
The Group shall use operating profit or loss as the starting point when presenting cash flows from operating activities under the indirect method.
-
13 -
- Interest and dividends received by the Group shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. However, if, after assessment, the Group has a specific main operating activity, it shall determine how to classify dividends received, interest received and interest paid in the statement of cash flows by referring to how it classifies dividend income, interest income and interest expense in the statement of profit or loss. The total of each of these cash flows shall be classified in a single category in the statement of cash flows.
Except for the above impact, as of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the other impacts of the above amended standards and interpretations on the Group's financial position and financial performance and will disclose the relevant impact when the assessment is completed.
4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION
a. Statement of compliance
The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IFRS Accounting Standards as endorsed and issued into effect by the FSC.
b. Basis of preparation
The consolidated financial statements have been prepared on the historical cost basis, except for financial instruments that are measured at fair values.
The fair value measurements are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:
1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;
2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for assets or liabilities, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
3) Level 3 inputs are unobservable inputs for assets or liabilities.
c. Classification of current and non-current assets and liabilities
Current assets include:
1) Assets held primarily for the purpose of trading;
2) Assets expected to be realized within twelve months after the reporting period; and
3) Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.
Current liabilities include:
1) Liabilities held primarily for the purpose of trading;
2) Liabilities due to be settled within twelve months after the reporting period; and
3) Liabilities for which the Group does not have the substantial right at the end of the reporting period to defer settlement for at least twelve months after the reporting period.
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Assets and liabilities that are not classified as current are classified as non-current.
d. Basis of consolidation
The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company (i.e., its subsidiaries).
Income and expenses of subsidiaries acquired or disposed of during the period are included in the consolidated statement of comprehensive income from the effective dates of acquisitions up to the effective dates of disposals, as appropriate.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those of the Group.
All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Group and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.
Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the interests of the Group and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the Company.
When the Group loses control of a subsidiary, a gain or loss is recognized in profit or loss and is calculated as the difference between (i) the aggregate of the fair value of the consideration received and any investment retained in the former subsidiary at its fair value at the date when control is lost and (ii) the assets (including any goodwill) and liabilities and any non-controlling interests of the former subsidiary at their carrying amounts at the date when control is lost. The Group accounts for all amounts recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required had the Group directly disposed of the related assets or liabilities.
See Note 12, Tables 4 and 5 for the detailed information of subsidiaries (including the percentage of ownership and main business).
e. Foreign currencies
In preparing the financial statements of each individual group entity, transactions in currencies other than the entity’s functional currency (i.e., foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.
At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the period in which they arise.
Non-monetary items measured at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Exchange differences arising on the retranslation of non-monetary items are included in profit or loss for the period except for exchange differences arising from the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income, in which case, the exchange differences are also recognized directly in other comprehensive income.
Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rate at the date of transaction.
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For the purposes of presenting consolidated financial statements, the assets and liabilities of the Group's foreign operations (including subsidiaries, associates and joint ventures in other countries that use currencies which are different from the currency of the Company) are translated into New Taiwan dollars using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period. Exchange differences arising are recognized in other comprehensive income.
f. Inventories
Inventories consist of raw materials, work-in-process, finished goods and merchandise and are stated at the lower of cost or net realizable value. Inventory write-downs are made by item, except where it may be appropriate to group similar or related items. Net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded at weighted-average cost on the balance sheet date.
g. Investments in associates and joint ventures
An associate is an entity over which the Group has significant influence and which is neither a subsidiary nor an interest in a joint venture. A joint venture is a joint arrangement whereby the Group and other parties that have joint control of the arrangement have rights to the net assets of the arrangement.
The Group uses the equity method to account for its investments in associates and joint ventures.
Under the equity method, investments in an associate and a joint venture are initially recognized at cost and adjusted thereafter to recognize the Group's share of the profit or loss and other comprehensive income of the associate and joint venture. The Group also recognizes the changes in the Group's share of the equity of associates and joint ventures.
Any excess of the cost of acquisition over the Group's share of the net fair value of the identifiable assets and liabilities of an associate or a joint venture at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized. Any excess of the Group's share of the net fair value of the identifiable assets and liabilities over the cost of acquisition, after reassessment, is recognized immediately in profit or loss.
h. Property, plant and equipment
Property, plant and equipment are stated at cost, less recognized accumulated depreciation and accumulated impairment loss.
Freehold land is not depreciated.
Depreciation on property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.
On derecognition of an item of property, plant and equipment, the difference between the sales proceeds and the carrying amount of the asset is recognized in profit or loss.
i. Goodwill
Goodwill arising from the acquisition of a business is measured at cost as established at the date of acquisition of the business less accumulated impairment loss.
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For the purposes of impairment testing, goodwill is allocated to each of the Group’s cash-generating units or groups of cash-generating units (referred to as “cash-generating units”) that is expected to benefit from the synergies of the combination.
A cash-generating unit to which goodwill has been allocated is tested for impairment annually or more frequently whenever there is an indication that the unit may be impaired, by comparing its carrying amount, including the attributed goodwill, with its recoverable amount. However, if the goodwill allocated to a cash-generating unit was acquired in a business combination during the current annual period, that unit shall be tested for impairment before the end of the current annual period. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then pro rata to the other assets of the unit based on the carrying amount of each asset in the unit. Any impairment loss is recognized directly in profit or loss. Any impairment loss recognized for goodwill is not reversed in subsequent periods.
If goodwill has been allocated to a cash-generating unit and the Group disposes of an operation within that unit, the goodwill associated with the operation which is disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal and is measured on the basis of the relative values of the operation disposed of and the portion of the cash-generating unit retained.
j. Other intangible assets
Intangible assets with finite useful lives that are acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment loss. Amortization is recognized on a straight-line basis. The estimated useful life, residual value, and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.
Expenditure on research activities is recognized as expenses in period in which it is incurred.
On derecognition of an intangible asset, the difference between the net disposal proceeds and the carrying amount of the asset are recognized in profit or loss.
k. Impairment of property, plant and equipment, right-of-use asset and intangible assets other than goodwill
At the end of each reporting period, the Group reviews the carrying amounts of its property, plant and equipment, right-of-use asset and intangible assets, excluding goodwill, to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to the individual cash-generating units on a reasonable and consistent basis, otherwise corporate assets are allocated to the smallest group of cash-generating units on a reasonable and consistent allocation basis.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually and whenever there is an indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.
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When an impairment loss is subsequently reversed, the carrying amount of the asset or cash-generating unit is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized for the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized in profit or loss.
1. Financial instruments
Financial assets and financial liabilities are recognized when a group entity becomes a party to the contractual provisions of the instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.
1) Financial assets
All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.
a) Measurement category
Financial assets are classified into the following categories: Financial assets at FVTPL, financial assets at amortized cost and investments in equity instruments at FVTOCI.
i. Financial assets at FVTPL
Financial assets are classified as at FVTPL when such a financial asset is mandatorily classified or designated as at FVTPL. Financial assets mandatorily classified as at FVTPL include investments in equity instruments which are not designated as at FVTOCI and debt instruments that do not meet the amortized cost criteria or the FVTOCI criteria.
Financial assets at FVTPL are subsequently measured at fair value, with any gains or losses arising on remeasurement recognized in profit or loss. The net gain or loss recognized in profit or loss does not incorporate any dividends or interest earned on such a financial asset. Fair value is determined in the manner described in Note 28.
ii. Financial assets at amortized cost
Financial assets that meet the following conditions are subsequently measured at amortized cost:
- i) The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and
- ii) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, trade receivables at amortized cost, other receivables, and refundable deposits, are measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.
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Interest income is calculated by applying the effective interest rate to the gross carrying amount of such a financial asset, except for:
i) Purchased or originated credit-impaired financial assets, for which interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of such financial assets; and
ii) Financial assets that are not credit-impaired on purchase or origination but have subsequently become credit-impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost of such financial assets in subsequent reporting periods.
A financial asset is credit impaired when one or more of the following events have occurred:
i) Significant financial difficulty of the issuer or the borrower;
ii) Breach of contract, such as a default;
iii) It is becoming probable that the borrower will enter bankruptcy or undergo a financial reorganization; or
iv) The disappearance of an active market for that financial asset because of financial difficulties.
Cash equivalents include time deposits with original maturities within 3 months from the date of acquisition, which are highly liquid, readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These cash equivalents are held for the purpose of meeting short-term cash commitments.
iii. Investments in equity instruments at FVTOCI
On initial recognition, the Group may make an irrevocable election to designate investments in equity instruments as at FVTOCI. Designation as at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.
Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments; instead, it will be transferred to retained earnings.
Dividends on these investments in equity instruments are recognized in profit or loss when the Group’s right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment.
b) Impairment of financial assets
The Group recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including trade receivables).
The Group always recognizes lifetime expected credit losses (ECLs) for trade receivables. For all other financial instruments, the Group recognizes lifetime ECLs when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on a financial instrument has not increased significantly since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal to 12-month ECLs.
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Expected credit losses reflect the weighted average of credit losses with the respective risks of default occurring as the weights. Lifetime ECLs represent the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECLs represent the portion of lifetime ECLs that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.
The Group recognizes an impairment gain or loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account.
c) Derecognition of financial assets
The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.
On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. On derecognition of an investment in a debt instrument at FVTOCI, the difference between the asset's carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss which had been recognized in other comprehensive income is recognized in profit or loss. However, on derecognition of an investment in an equity instrument at FVTOCI, the cumulative gain or loss which had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss.
2) Equity instruments
Equity instruments issued by a group entity are classified as equity in accordance with the substance of the contractual arrangements and the definitions of an equity instrument.
Equity instruments issued by a group entity are recognized at the proceeds received, net of direct issue costs.
3) Financial liabilities
a) Subsequent measurement
All the financial liabilities are measured at amortized cost using the effective interest method.
b) Derecognition of financial liabilities
The difference between the carrying amount of the financial liability derecognized and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.
4) Derivative financial instruments
The Group enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign exchange rate risks, including foreign exchange forward contracts.
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Derivatives are initially recognized at fair value at the date the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately. When the fair value of derivative financial instruments is positive, the derivative is recognized as a financial asset; when the fair value of derivative financial instruments is negative, the derivative is recognized as a financial liability.
m. Provisions
Provisions for the expected cost of warranty obligations are recognized at the date of sale of the relevant products, at the best estimate of the expenditure required to settle the Group’s obligation by the management of the Group.
n. Revenue recognition
The Group identifies contracts with customers, allocates the transaction price to the performance obligations and recognizes revenue when performance obligations are satisfied.
For contracts where the period between the date on which the Group transfers a promised good or service to a customer and the date on which the customer pays for that good or service is one year or less, the Group does not adjust the promised amount of consideration for the effects of a significant financing component.
1) Revenue from the sale of goods
Revenue from the sale of goods comes from sales of computer equipment, medical devices and sophisticated instruments. Sales of computer equipment, medical devices and sophisticated instruments are recognized as revenue when the goods are shipped or delivered to customer’s specific location because it is the time when the customer has full discretion over the manner of distribution and price to sell the goods, has the primary responsibility for sales to future customers and bears the risks of obsolescence. Trade receivables are recognized concurrently. Any amounts received in advance with remaining obligation are recognized as contract liabilities.
The Group does not recognize revenue on materials delivered to subcontractors because this delivery does not involve a transfer of control.
2) Dividend and interest income
Dividend income from investments is recognized when the shareholder’s right to receive payment has been established provided that it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably.
Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable.
o. Leases
At the inception of a contract, the Group assesses whether the contract is, or contains, a lease.
1) The Group as lessor
Leases are classified as finance leases whenever the terms of a lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.
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When the Group subleases a right-of-use asset, the sublease is classified by reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. However, if the head lease is a short-term lease that the Group, as a lessee, has accounted for applying recognition exemption, the sublease is classified as an operating lease.
Lease payments (less any lease incentives payable) from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases. Initial direct costs incurred in obtaining operating leases are added to the carrying amounts of the underlying assets and recognized as expenses on a straight-line basis over the lease terms.
2) The Group as lessee
The Group recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for short-term leases and low-value asset leases accounted for applying a recognition exemption where lease payments are recognized as expenses on a straight-line basis over the lease terms.
Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities adjusted for lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs needed to restore the underlying assets, and less any lease incentives received. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the consolidated balance sheets.
Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.
Lease liabilities are initially measured at the present value of the lease payments. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the Group uses the lessee's incremental borrowing rate.
Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term, a change in the amounts expected to be payable under a residual value guarantee, a change in the assessment of an option to purchase an underlying asset, or a change in future lease payments resulting from a change in an index or a rate used to determine those payments, the Group remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate line in the consolidated balance sheets.
p. Employee benefits
1) Short-term employee benefits
Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service.
2) Retirement benefits
Payments to defined contribution retirement benefit plans are recognized as an expense when employees have rendered service entitling them to the contributions.
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Defined benefit costs (including service cost, net interest and remeasurement) under the defined contribution retirement benefit plans are determined using the projected unit credit method. Current service cost and net interest on the net defined benefit assets are recognized as employee benefits expense in the period in which they occur. Remeasurement, comprising actuarial gains and losses and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which it occurs. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.
Net defined benefit assets represents the actual surplus in the Group’s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.
q. Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
1) Current tax
According to the Income Tax Act in the ROC, an additional tax of unappropriated earnings is provided for as income tax in the year the shareholders approve to retain the earnings.
Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax provision.
2) Deferred tax
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences and unused loss carry forward to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.
Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period and recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
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3) Current and deferred taxes for the year
Current and deferred taxes are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred taxes are also recognized in other comprehensive income or directly in equity, respectively.
- MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
In the application of the Group’s accounting policies, management is required to make judgments, estimates and assumptions on the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised if the revisions affect only that period or in the period of the revisions and future periods if the revisions affect both current and future periods.
Key Sources of Estimation Uncertainty
Inventory Write-down
Net realizable value of inventory is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. The estimation of net realizable value was based on current market conditions and historical experience with selling products of a similar nature. Changes in market conditions may have a material impact on the estimation of net realizable value.
- CASH AND CASH EQUIVALENTS
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Cash on hand | $ 711 | $ 569 |
| Checking accounts and demand deposits | 665,980 | 583,540 |
| Cash equivalents | ||
| Time deposits with original maturities of less than 3 months | 202,649 | 348,218 |
| $ 869,340 | $ 932,327 |
The market rate intervals of cash in bank and time deposits with original maturities of less than 3 months at the end of the reporting period were as follows:
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Demand deposits | 0.000%-0.705% | 0.001%-1.05% |
| Time deposits with original maturities of less than 3 months | 1.76%-3.90% | 1.65%-4.68% |
- FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Financial assets at fair value through profit and loss (FVTPL) - current | ||
| Financial assets mandatorily classified as at FVTPL | ||
| Derivative financial assets (not under hedge accounting) | ||
| Foreign exchange forward contracts | $ 567 | $ 3,103 |
| Non-derivative financial assets | ||
| Domestic listed shares | 1,402 | 1,828 |
| $ 1,969 | $ 4,931 | |
| Financial assets at fair value through profit and loss (FVTPL) - non - current | ||
| Non-derivative financial assets | ||
| Foreign bonds | $ 6,233 | $ - |
| Foreign Fund beneficiary certificates | 16,584 | - |
| $ 22,817 | $ - |
At the end of reporting period, outstanding foreign exchange forward contracts not under hedge accounting were as follows:
| Currency | Maturity Period | Contract Amount (In Thousands) | |
|---|---|---|---|
| December 31, 2025 | |||
| Sell | JPY/USD | 2026.01.21 | JPY38,500/USD264 |
| December 31, 2024 | |||
| Sell | EUR/USD | 2025.02.10-2025.02.20 | EUR1,450/USD1,549 |
| Sell | EUR/NTD | 2025.01.21-2025.02.04 | EUR1,310/NTD46,157 |
| Sell | JPY/USD | 2025.04.14-2025.05.19 | JPY40,250/USD266 |
| Sell | JPY/NTD | 2025.01.24-2025.02.27 | JPY25,500/NTD5,638 |
The Group entered into foreign exchange forward contracts to manage exposures to exchange rate fluctuations of foreign currency denominated assets and liabilities.
- 26 -
8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Current | ||
| Domestic listed shares | $ 26,093 | $ 26,034 |
| Non-current | ||
| Domestic listed shares | $ 111,994 | $ 131,406 |
| Domestic unlisted shares | 6,504 | 5,535 |
| Foreign unlisted shares | 117,735 | 99,164 |
| $ 236,233 | $ 236,105 |
These investments in equity instruments are held for medium to long-term strategic purposes. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI as they believe that recognizing short-term fluctuations in these investments' fair value in profit or loss would not be consistent with the Group's strategy of holding these investments for long-term purposes.
9. TRADE RECEIVABLES AND OTHER RECEIVABLES
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Trade receivables | ||
| At amortized cost | ||
| Gross carrying amount | $ 216,673 | $ 180,649 |
| Less: Allowance for impairment loss | (1,618) | (4,146) |
| $ 215,055 | $ 176,503 | |
| Other receivables | $ 5,733 | $ 13,748 |
a. Trade receivables
The average credit terms range from 90 to 120 days. No interest was charged on trade receivables. The Group adopted a policy of rating its major customers by using other public financial information or its own trading records and obtaining sufficient collateral or insurance, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Group's exposure and the credit ratings of its counterparties are continuously monitored, and the aggregate value of transactions concluded is spread amongst approved counterparties.
The Group measures the loss allowance for trade receivables at an amount equal to lifetime ECLs. The expected credit losses on trade receivables are estimated using a provision matrix prepared by reference to the past default experience of the customer, the customer's current financial position, insurance coverage, as well as economic condition of the industry in which the customer operates, and industry outlook. As the Group's historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Group's different customer base.
The Group writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation. For trade receivables that have been written off, the Group continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.
The following tables detail the loss allowance of trade receivables based on the Group's provision matrix.
December 31, 2025
| Not Past Due | 1 to 30 Days Past Due | 31 to 60 Days Past Due | 61 to 90 Days Past Due | 91 to 180 Days Past Due | Over 180 Days Past Due | Total | |
|---|---|---|---|---|---|---|---|
| Expected credit loss rate | 0%-0.10% | 0%-0.30% | 0%-1.00% | 0%-3.00% | 0%-7.00% | 0%-100% | |
| Gross carrying amount | $ 168,749 | $ 32,448 | $ 8,049 | $ 6,426 | $ 107 | $ 894 | $ 216,673 |
| Loss allowance (Lifetime ECL) | (44) | (472) | (75) | (129) | (4) | (894) | (1,618) |
| Amortized cost | $ 168,705 | $ 31,976 | $ 7,974 | $ 6,297 | $ 103 | $ - | $ 215,055 |
December 31, 2024
| Not Past Due | 1 to 30 Days Past Due | 31 to 60 Days Past Due | 61 to 90 Days Past Due | 91 to 180 Days Past Due | Over 180 Days Past Due | Total | |
|---|---|---|---|---|---|---|---|
| Expected credit loss rate | 0%-0.10% | 0%-0.30% | 0%-1.00% | 0%-3.00% | 0%-9.00% | 0%-100% | |
| Gross carrying amount | $ 133,864 | $ 37,543 | $ 601 | $ 3,741 | $ 1,317 | $ 3,583 | $ 180,649 |
| Loss allowance (Lifetime ECL) | (34) | (443) | (5) | (17) | (64) | (3,583) | (4,146) |
| Amortized cost | $ 133,830 | $ 37,100 | $ 596 | $ 3,724 | $ 1,253 | $ - | $ 176,503 |
The movements of the loss allowance of trade receivables were as follows:
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Balance at January 1 | $ 4,146 | $ 2,984 |
| Add: Net remeasurement of loss allowance | (2,573) | 1,050 |
| Foreign exchange gains and losses | 45 | 112 |
| Balance at December 31 | $ 1,618 | $ 4,146 |
b. Other receivables
Other receivables are individually assessed for impairment and considered to be impaired when there is objective evidence of impairment. At the end of reporting period, there was no past due other receivables and the Group had not recognized allowance for impairment on other receivables.
- 28 -
10. INVENTORIES
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Finished goods | $ 440,336 | $ 488,610 |
| Work in process | 3,874 | 2,836 |
| Raw materials | 152,931 | 114,852 |
| Merchandise | 48,804 | 25,488 |
| $ 645,945 | $ 631,786 |
The costs of inventories recognized as cost of goods sold for the years ended December 31, 2025 and 2024 were $1,101,467 thousand and $982,756 thousand, respectively. The costs of goods sold included losses from inventory write-downs of $80,731 thousand and $74,580 thousand for the years ended December 31, 2025 and 2024, respectively.
11. PREPAYMENTS
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Prepayments for purchases | $ 501 | $ 181 |
| Other prepaid expenses | 34,340 | 27,135 |
| Prepaid expenses - mold templates | 758 | 894 |
| $ 35,599 | $ 28,210 |
12. SUBSIDIARIES
Subsidiaries included in the consolidated financial statements are as follows:
| Investor | Investee | Nature of Activities | Proportion of Ownership (%) | Remark | |
|---|---|---|---|---|---|
| 2025 | 2024 | ||||
| Shuttle Inc. (“Shuttle”) | Holco (BVI) Inc. | Investment holding company | 100.00 | 100.00 | |
| Gold Fountain Limited | Investment holding company | 100.00 | 100.00 | ||
| Fuxing Biomedical Co., Ltd | Providing elderly care services and selling medical peripherals | 100.00 | 100.00 | ||
| Liigen Inc. | Selling and maintaining computers and peripherals | 100.00 | 100.00 | ||
| Yong Jhao Innovation Investment Co., Ltd. | Investment holding company | 100.00 | 100.00 | ||
| Big Ten Investment Consulting Co., Ltd. | Investment holding company | 100.00 | 100.00 | ||
| Carilex Medical Inc. | Selling and maintaining air mattress and medical peripherals | 6.26 | 6.26 | b | |
| Holco (BVI) Inc. | Shuttle Computer (H.K.) Ltd., (“S.H.K.”) | Selling and maintaining computers and peripherals | 100.00 | 100.00 | |
| Gold Fountain Limited | Shuttle Computer Handels GmbH (“S.C.H.”) | Selling and maintaining computers and peripherals | 100.00 | 100.00 | |
| Shuttle Computer Group Inc. (“S.C.G.”) | Selling and maintaining computers and peripherals | 100.00 | 100.00 | ||
| Japan Shuttle Co., Ltd. (“S.C.J.”) | Selling and maintaining computers and peripherals | 100.00 | 100.00 | ||
| Shuttle Commerce (Shenzhen) Ltd. (“S.C.M.”) | Selling and maintaining computers and peripherals | 100.00 | 100.00 |
(Continued)
| Investor | Investee | Nature of Activities | Proportion of Ownership (%) | Remark | |
|---|---|---|---|---|---|
| December 31 | |||||
| 2025 | 2024 | ||||
| Yong Jhao Innovation Investment Co., Ltd. | Carilex Medical Inc. | Selling and maintaining air mattress and medical peripherals | 55.60 | 55.60 | |
| Big Ten Investment Consulting Co., Ltd. | Carilex Medical Inc. | Selling and maintaining air mattress and medical peripherals | 11.50 | 9.70 | a |
| Carilex Medical Inc. | Carilex Medical Ltd. | Selling and maintaining air mattress and medical peripherals | 100.00 | 100.00 | |
| Carilex Medical USA, Inc. | Selling and maintaining air mattress and medical peripherals | 100.00 | 100.00 | ||
| Carilex Medical Technologies GmbH | Selling and maintaining air mattress and medical peripherals | 100.00 | 100.00 | ||
| (Concluded) |
Remarks:
a. Big Ten Investment Consulting Co., Ltd. purchased 365 thousand and 469 thousand shares of Carilex Medical Inc. in 2025 and 2024, respectively.
b. The shares of Carilex Medical Inc. have been listed in the Emerging Stock Market since February 27, 2024.
13. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Investments in joint ventures | ||
| Shandong Lixin Pension Industry Development Co., Ltd. | $ 36,719 | $ 37,608 |
At the end of the reporting period, the proportion of ownership and voting rights in joint venture held by the Group were as follows:
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Shandong Lixin Pension Industry Development Co., Ltd. | 50% | 50% |
The Group entered into a joint venture agreement with Zhongcai Huitou (Beijing) Fund Management Co., Ltd. in May 2017 to jointly invest RMB20,000 thousand in Shandong Lixin Pension Industry Development Co., Ltd. The Group's investment amount was RMB10,000 thousand. According to the agreement, both parties have a majority power on the board of directors and the ability to veto, and therefore, the Group does not have control. In addition, the agreement stipulates that in the future, if the management of the joint venture reaches a certain performance condition, the management may obtain 20% of the shares of the joint venture. Zhongcai Huitou (Beijing) Fund Management Co., Ltd. completed shares transfer to Shanghai Jiayi Investment Holding Co., Ltd. in May 2018 without any changes in the agreement.
Shares of loss of the joint venture recognized in 2025 and 2024 by the Group were $150 thousand and $228 thousand, respectively. The investments accounted for using equity method and the share of profit or loss and other comprehensive income of those investments for the years ended December 31, 2025 and 2024 were calculated based on the financial statements which have not been audited by accountants. However, the management believes that there would have been no significant adjustments had this investee's financial statements not been independently audited.
The financial statements used as a basis of the amounts of and related information on the investments accounted for using the equity method and the share of profit or loss and other comprehensive income of those investments for the years ended December 31, 2025 and 2024 were not independently audited. However, the management believes that there would have been no significant adjustments had this investee's financial statements not been independently audited.
For details on services, major business offices and the country where the above jointly controlled entities are registered, refer to Table 5, "Investments in Mainland China," following the Notes to Consolidated Financial Statements.
14. PROPERTY, PLANT AND EQUIPMENT
| Land | Buildings | Machinery and Equipment | Transportation Equipment | Facilities | Leasehold Improvement | Other Equipment | Total | |
|---|---|---|---|---|---|---|---|---|
| Cent | ||||||||
| Balance at January 1, 2024 | $ 1,043,154 | $ 37,317 | $ 46,048 | $ 10,068 | $ 27,165 | $ 13,711 | $ 29,507 | $ 1,206,970 |
| Additions | - | 1,104 | 5,527 | 520 | 46 | 978 | 455 | 8,630 |
| Disposals | - | - | (4,664) | (1,327) | (6,407) | (5,289) | (5,181) | (22,868) |
| Reclassification | - | - | - | - | - | - | - | - |
| Effect of foreign exchange differences | 3,381 | 1,474 | 73 | (87) | 45 | (41) | 25 | 4,870 |
| Balance at December 31, 2024 | $ 1,046,535 | $ 39,895 | $ 46,984 | $ 9,174 | $ 20,849 | $ 9,359 | $ 24,806 | $ 1,197,602 |
| Accumulated depreciation and impairment | ||||||||
| Balance at January 1, 2024 | $ - | $ 17,158 | $ 41,496 | $ 5,269 | $ 26,312 | $ 7,230 | $ 25,227 | $ 122,692 |
| Depreciation expenses | - | 491 | 2,242 | 1,818 | 286 | 3,161 | 1,227 | 9,225 |
| Disposals | - | - | (4,664) | (1,315) | (6,407) | (3,163) | (4,312) | (19,861) |
| Reclassification | - | - | - | - | - | - | - | - |
| Effect of foreign exchange differences | - | 96 | 73 | 12 | 43 | (48) | 38 | 214 |
| Balance at December 31, 2024 | $ - | $ 17,745 | $ 39,147 | $ 5,784 | $ 20,234 | $ 7,180 | $ 22,180 | $ 112,270 |
| Carrying amounts at December 31, 2024 | $ 1,046,535 | $ 22,150 | $ 7,837 | $ 3,390 | $ 615 | $ 2,179 | $ 2,626 | $ 1,085,332 |
| Cent | ||||||||
| Balance at January 1, 2025 | $ 1,046,535 | $ 39,895 | $ 46,984 | $ 9,174 | $ 20,849 | $ 9,359 | $ 24,806 | $ 1,197,602 |
| Additions | - | - | 3,603 | 874 | 4,450 | 4,959 | 1,237 | 15,123 |
| Disposals | - | - | (63) | (762) | - | (5,405) | (590) | (6,820) |
| Reclassification | - | - | 21,000 | - | - | - | (849) | 20,151 |
| Effect of foreign exchange differences | (1,755) | 448 | (23) | (129) | 462 | (73) | 208 | (862) |
| Balance at December 31, 2025 | $ 1,044,780 | $ 40,343 | $ 71,501 | $ 9,157 | $ 25,761 | $ 8,840 | $ 24,812 | $ 1,225,194 |
| Accumulated depreciation and impairment | ||||||||
| Balance at January 1, 2025 | $ - | $ 17,745 | $ 39,147 | $ 5,784 | $ 20,234 | $ 7,180 | $ 22,180 | $ 112,270 |
| Depreciation expenses | - | 481 | 4,117 | 1,802 | 612 | 2,110 | 969 | 10,091 |
| Disposals | - | - | (63) | (762) | - | (5,331) | (590) | (6,746) |
| Reclassification | - | - | 19,396 | - | - | - | (711) | 18,685 |
| Effect of foreign exchange differences | - | 1,367 | (23) | (68) | 461 | (61) | 211 | 1,887 |
| Balance at December 31, 2025 | $ - | $ 19,593 | $ 62,574 | $ 6,756 | $ 21,307 | $ 3,898 | $ 22,059 | $ 136,187 |
| Carrying amounts at December 31, 2025 | $ 1,044,780 | $ 20,750 | $ 8,927 | $ 2,401 | $ 4,454 | $ 4,942 | $ 2,753 | $ 1,089,007 |
The above items of property, plant and equipment used by the Group are depreciated on a straight-line basis over their estimated useful lives as follows:
Buildings
Main buildings
Machinery and equipment
Transportation equipment
Facilities
Leasehold improvements
Other equipment
25-45 years
2-7 years
5-7 years
2-5 years
3-10 years
2-12 years
The Company's board of directors authorized the chairman to deal with the purchase of headquarters buildings in accordance with the resolution of the Company's board of directors passed on August 3, 2023. The Group signed a $2,350,776 thousand pre-sale contract on November 9, 2023. The payment is paid based on the progress of construction, which is expected to be completed in 2026, with a final payment of $1,645,543 thousand. As of December 31, 2025, the Group had paid $601,126 thousand (classified as other non-current assets - prepayments for buildings and land).
Property, plant and equipment used by the Group and pledged as collateral for bank borrowings are set out in Note 30.
15. LEASE ARRANGEMENTS
a. Right-of-use assets
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Carrying amounts | ||
| Buildings | $ 129,450 | $ 137,673 |
| Transportation equipment | 9,840 | 4,195 |
| $ 139,290 | $ 141,868 | |
| For the Year Ended December 31 | ||
| 2025 | 2024 | |
| Additions to right-of-use assets | $ 50,777 | $ 36,941 |
| Depreciation charge for right-of-use assets | ||
| Buildings | $ 51,507 | $ 45,287 |
| Transportation equipment | 4,341 | 3,605 |
| $ 55,848 | $ 48,892 |
b. Lease liabilities
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Carrying amounts | ||
| Current | $ 72,029 | $ 54,402 |
| Non-current | $ 121,174 | $ 152,466 |
Range of discount rates for lease liabilities was as follows:
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Buildings | 0.95%-8.50% | 0.95%-8.50% |
| Transportation equipment | 1.10%-5.50% | 1.10%-5.50% |
c. Material leasing activities and terms
The Group leases certain buildings as plant and offices with lease terms of 2 to 8 years. These arrangements do not contain renewal or purchase options.
To revitalize assets and strengthen the financial structure, the Group sold the office building at Ruiguang Rd., Neihu Dist., Taipei City in December 2021, to Nan Shan Life Insurance Company, Ltd, and then leased it back immediately. The Group signed an 8-year lease arrangement with Nan Shan Life Insurance Company, Ltd. for the continued use of the building. The lease agreement has a preemptive term of the tenancy agreement, with annual rental payments of $24,762 thousand for the first two years, and an increase of the rental starting from the third year of the lease term at 1% of the prior year’s rental fee.
d. Other lease information
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Expenses relating to short-term leases and low-value asset leases | $ 7,372 | $ 9,547 |
| Total cash outflow for leases | $ 79,890 | $ 73,842 |
The Group leases certain buildings and transportation equipment, which qualify as short-term leases and low-value asset leases. The Group has elected to apply the recognition exemption and, thus, did not recognize right-of-use assets and lease liabilities for these leases.
- OTHER INTANGIBLE ASSETS
| Core Technologies | Trademark Rights | Computer Software | Others | Net Value | |
|---|---|---|---|---|---|
| Balance at January 1, 2024 | $ 92,178 | $ 58,328 | $ 21,107 | $ 3,508 | $ 175,121 |
| Additions | - | - | 364 | - | 364 |
| Amortization expenses | (3,568) | (9,999) | (3,568) | (3,508) | (20,643) |
| Effect of foreign currency exchange differences | - | - | (8) | - | (8) |
| Balance at December 31, 2024 | $ 88,610 | $ 48,329 | $ 17,895 | $ - | $ 154,834 |
| Balance at January 1, 2025 | $ 88,610 | $ 48,329 | $ 17,895 | $ - | $ 154,834 |
| Additions | - | - | 362 | - | 362 |
| Amortization expenses | (3,568) | (9,999) | (3,256) | - | (16,823) |
| Effect of foreign currency exchange differences | - | - | (5) | - | (5) |
| Balance at December 31, 2025 | $ 85,042 | $ 38,330 | $ 14,996 | $ - | $ 138,368 |
The above trademark rights, core technologies, computer software and other assets are amortized on a straight-line method over 30 years, 10 years and 2 to 5 years, respectively.
- 33 -
17. OTHER ASSETS - CURRENT AND NON-CURRENT
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Current | ||
| Overpaid sales tax | $ 38,557 | $ 37,128 |
| Others | 21,565 | 37,850 |
| $ 60,122 | $ 74,978 | |
| Non-current | ||
| Prepayments for building and land (Note 14) | $ 601,126 | $ 597,526 |
| Restricted bank deposits (Note 30) | 21,667 | 43,333 |
| Refundable deposits | 27,021 | 23,621 |
| Prepayments | 17,051 | 4,055 |
| Net defined benefit assets | 1,028 | 1,028 |
| $ 667,893 | $ 669,563 |
18. SHORT-TERM BORROWINGS
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Credit loans | $ 130,000 | $ 50,000 |
| Interest rate | 2.15%-2.19% | 2.23% |
19. OTHER PAYABLES
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Accrued salaries and compensation | $ 61,850 | $ 78,447 |
| Payables for promotion expenses | 35,142 | 18,164 |
| Payables for professional services | 9,710 | 10,401 |
| Others | 45,775 | 44,086 |
| $ 152,477 | $ 151,098 |
20. PROVISIONS
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Warranties | $ 63,947 | $ 58,092 |
The movements of the warranties were as follows:
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Balance at January 1 | $ 58,092 | $ 58,789 |
| Additional provisions recognized | 5,703 | 161 |
| Usage | (1,099) | (928) |
| Effect of foreign currency exchange differences | 1,251 | 70 |
| Balance at December 31 | $ 63,947 | $ 58,092 |
The provision for warranty claims represents the present value of management’s best estimate of the future outflow of economic benefits that will be required under the Group’s obligations for warranties under local legislation on sale of goods. The estimate had been made on the basis of historical warranty trends and may vary as a result of new materials, altered manufacturing processes or other events affecting product quality.
21. RETIREMENT BENEFIT PLANS
a. Defined contribution plan
The Company and Carilex Medical Inc. adopted a pension plan under the Labor Pension Act (LPA) of the ROC government, which is a state-managed defined contribution plan. Under the LPA, the Company makes monthly contributions to employees’ individual pension accounts at 6% of monthly salaries and wages.
The employees of the Group’s subsidiaries are members of a state-managed retirement benefit plan operated by the governments of China, Germany and United Kingdom. The relevant subsidiaries are required to contribute a specified percentage of payroll costs to the retirement benefit scheme to fund the benefits. The only obligation of the Group with respect to the retirement benefit plan is to make the specified contributions.
S.C.G. make monthly contributions at a prescribed percentage of salaries to personal investment accounts pursuant to the U.S. IRC 401 (K) plan. There are no qualified employees under the plans adopted by Holco (BVI) Inc., Gold Fountain Limited, S.H.K., Liigen Inc., Yong Jhao Innovation Investment Co., Ltd. and Big Ten Investment Consulting Co., Ltd.
b. Defined benefit plans
The defined benefit plan adopted by the Company and Carilex Medical Inc. in accordance with the Labor Standards Act is operated by the government of the ROC. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the six months before retirement. The Company contributes amounts equal to 2% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee’s name. Before the end of each year, the Company assesses the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Company is required to fund the difference in one appropriation that should be made before the end of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (the “Bureau”); the Company has no right to influence the investment policy and strategy.
The Company and Carilex Medical Inc. adopt the defined benefit plan under the Labor Standards Act for a small portion of its foreign employees. The defined benefit pension expenses recognized as a result of employing foreign employees were NT$0 thousand for the years 2025 and 2024.
The Company and Carilex Medical Inc.'s expected contributions to the plans for the respective subsequent years as of December 31, 2025 and 2024 were both $0 thousand.
22. EQUITY
a. Ordinary shares
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Shares authorized (in thousands of shares) | 500,000 | 500,000 |
| Authorized shares | $ 5,000,000 | $ 5,000,000 |
| Shares issued and fully paid (in thousands of shares) | 343,427 | 343,427 |
| Issued shares | $ 3,434,273 | $ 3,434,273 |
The issued ordinary shares with a par value of $10 entitle the holders to the rights to vote and receive dividends.
b. Capital surplus
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| May be used to offset a deficit, distributed as cash dividends, or transferred to share capital | ||
| Share premium of issuance of ordinary shares | $ 11,865 | $ 11,865 |
| Treasury share transactions | 4,483 | 4,483 |
| Treasury shares transferred to employees | 8,740 | 8,740 |
| The difference between the consideration received or paid and the carrying amount of the subsidiaries’ net assets during actual disposal or acquisition (Note 26) | 11,600 | 17,675 |
| $ 36,688 | $ 42,763 |
The capital surplus arising from shares issued in excess of par (including share premium from issuance of ordinary shares, and treasury share transactions) may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash or transferred to share capital which however is limited to a certain percentage of the Company's capital surplus and once a year.
c. Retained earnings and dividends policy
Under the dividends policy as set forth in the Company’s Articles of Incorporation (the “Articles”), where the Company made an earnings distribution or offsetting for deficits after the end of the half-year period in a fiscal year, the profit shall be first utilized for paying taxes and employees’ compensation, offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit, setting aside or reversing a special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings shall be used by the Company’s board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for the distribution of dividends and bonuses to shareholders. The partial or full distribution of dividends and bonuses by way of cash is authorized to be approved by the Company’s board of directors and reported in the shareholder’s meeting. For the policies on the distribution of compensation of employees and remuneration of directors, refer to compensation of employees and remuneration of directors in Note 23(f).
The Company’s Articles also stipulate that the profit of the Company may be distributed by way of cash dividends and/or share dividends. The ratio for cash dividends shall not be less than 10% of the total dividend distribution. However, the Company may adjust the distributed ratio based on the current fund allocation.
An appropriation of earnings to a legal reserve shall be made until the legal reserve equals the Company’s paid-in capital. The legal reserve may be used to offset deficits. If the Company has no deficit and the legal reserve has exceeded 25% of the Company’s paid-in capital, the excess may be transferred to capital or distributed in cash.
The appropriation of earnings for 2024 and 2023, which was resolved by the Company’s board of directors, was as follows:
| Second Half of 2024 | First Half of 2024 | |
|---|---|---|
| Date of Board Resolution | March 6, 2025 | August 13, 2024 |
| Legal reserve | $ - | $ 2,418 |
| Special reserve | $ - | $ (3,918) |
| Cash dividends | $ 58,383 | $ - |
| Cash dividends per share (NT$) | $ 0.17 | $ - |
| Second Half of 2023 | First Half of 2023 | |
| Date of Board Resolution | April 18, 2024 | August 3, 2023 |
| Legal reserve | $ - | $ 4,835 |
| Special reserve | $ - | $ (20,079) |
| Cash dividends | $ 58,383 | $ - |
| Cash dividends per share (NT$) | $ 0.17 | $ - |
The above cash dividend was resolved for distribution by the board of directors, and the appropriation of the remaining earnings was also approved at the shareholders’ annual meetings on May 29, 2025 and June 7, 2024, respectively.
The earnings for first half and second half of 2025, were resolved by the Company’s board of directors, not to distribe on August 4, 2025 and March 10, 2026, respectively.
The cash from capital surplus $34,343 thousand was resolved for distribution by the board of directors on March 10, 2026.
- 36 -
d. Other equity
Unrealized gain (loss) on financial assets at FVTOCI
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Balance at January 1 | $ (34,978) | $ (31,165) |
| Recognized for the year | ||
| Unrealized gain (loss) - equity instruments | (7,032) | (3,824) |
| Other comprehensive income recognized for the year | (7,032) | (3,824) |
| Cumulative unrealized gain (loss) of equity instruments transferred to retained earnings due to disposal | (11) | 11 |
| Balance at December 31 | $ (42,021) | $ (34,978) |
- NET (LOSS) PROFIT
a. Other income
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Dividend income | $ 1,437 | $ 1,552 |
| Rental income | 3,092 | 3,337 |
| Others | 6,517 | 8,888 |
| $ 11,046 | $ 13,777 |
b. Other gains and losses
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Net (loss) gain on foreign exchange | $ (6,768) | $ 34,674 |
| Net (loss) gain on financial instruments at FVTPL | (3,098) | 3,991 |
| Gain (loss) on disposal of property, plant and equipment | 285 | (2,869) |
| Others | (1,529) | (1,326) |
| $ (11,110) | $ 34,470 |
c. Finance costs
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Interest on bank loans | $ 1,767 | $ 1,222 |
| Interest on lease liabilities | 5,630 | 6,382 |
| $ 7,397 | $ 7,604 |
d. Depreciation and amortization
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| An analysis of depreciation by function | ||
| Operating costs | $ 17,164 | $ 11,971 |
| Operating expenses | 48,775 | 46,146 |
| $ 65,939 | $ 58,117 | |
| An analysis of amortization by function | ||
| Operating costs | $ 7,780 | $ 9,133 |
| Operating expenses | 16,823 | 20,875 |
| $ 24,603 | $ 30,008 |
e. Employee benefits expense
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Post-employment benefits (Note 21) | $ 29,404 | $ 28,857 |
| Salaries and bonuses | 416,904 | 429,631 |
| Labor and health insurance | 36,190 | 35,513 |
| Other employee benefits | 21,696 | 20,178 |
| Total employee benefits expense | $ 504,194 | $ 514,179 |
| An analysis of employee benefits expense by function | ||
| Operating costs | $ 58,953 | $ 69,229 |
| Operating expenses | 445,241 | 444,950 |
| $ 504,194 | $ 514,179 |
f. Employees' compensation and remuneration of directors
According to the Company's Articles of Incorporation, the Company accrues compensation of employees and remuneration of directors at rates ranging from 2% to 10% and no higher than 3%, respectively, of the net profit before income tax, compensation of employees, and remuneration of directors for the year.
Following the amendment to the Securities and Exchange Act promulgated in August 2024, the Company amended its Articles of Incorporation as approved by the shareholders' meeting held in 2025, which stipulate that no less than 20% of the employee compensation appropriated for the year shall be distributed to entry-level employees.
As the Company incurred a net loss for the year ended December 31, 2025, no compensation of employees or remuneration of directors was accrued. The compensation of employees and the remuneration of directors for the year ended December 31, 2024 were accrued at the rate of 2% each, as resolved by the Company's board of directors on March 6, 2026, amounting to NT$299 thousand for compensation of employees (including compensation to entry-level employees) and NT$299 thousand for remuneration of directors.
If there is a change in the proposed amounts after the annual parent company only financial statements are authorized for issue, the differences are accounted for as changes in accounting estimates and are adjusted in the subsequent year.
There was no difference between the actual amounts of employees' compensation and remuneration of directors distributed and the amounts recognized in the parent company only financial statements for the years ended December 31, 2024 and 2023.
Information on employees' compensation and remuneration of directors is available on the Market Observation Post System website of the Taiwan Stock Exchange.
24. INCOME TAX
a. Major components of tax (benefit) expense recognized in profit or loss are as follows:
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Current tax | ||
| In respect of the current year | $ 5,034 | $ 4,293 |
| Income tax on unappropriated earnings | - | 145 |
| Adjustments for prior years | 398 | (465) |
| 5,432 | 3,973 | |
| Deferred tax | ||
| In respect of the current year | (18,564) | 7,346 |
| Adjustments for prior years | 9,473 | 45 |
| (9,091) | 7,391 | |
| Income tax (benefit) expense recognized in profit or loss | $ (3,659) | $ 11,364 |
A reconciliation of accounting profit and income tax (benefit) expense is as follows:
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| (Loss) profit before tax | $ (84,078) | $ 21,168 |
| Income tax (benefit) expense calculated at the statutory rate (20%) | $ (16,815) | $ 4,233 |
| (Non-taxable income) non-deductible expenses in determining taxable income | (5,705) | 9,201 |
| Tax-exempt income | (29) | (26) |
| Additional income tax under the Alternative Minimum Tax Act | 489 | 26 |
| Income tax on unappropriated earnings | - | 145 |
| Unrecognized loss carryforwards and deductible temporary differences | (3,638) | 827 |
| Effect of different tax rates of group entities operating in other jurisdictions | 12,168 | (2,622) |
| Adjustments for prior years’ tax - current | 398 | (465) |
| Adjustments for prior year’s tax - deferred | 9,473 | 45 |
| Income tax (benefit) expense recognized in profit or loss | $ (3,659) | $ 11,364 |
The applicable tax rate used by subsidiaries in China is 25%, and in the U.S.A., 21%. Tax rates used by other group entities operating in other jurisdictions are based on the tax laws in those jurisdictions.
b. Tax expense recognized in other comprehensive income (loss)
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Deferred tax | ||
| In respect of the current year - exchange differences on translating foreign operations | $ 294 | $ (4,999) |
c. Deferred tax assets and liabilities
The movements of deferred tax assets and deferred tax liabilities were as follows:
For the year ended December 31, 2025
| Opening Balance | Recognized in Profit or Loss | Recognized in Other Comprehensive Income | Exchange Differences | Closing Balance | |
|---|---|---|---|---|---|
| Deferred tax assets | |||||
| Temporarily differences | |||||
| Unrealized gross profit on sales | $ 25,272 | $ (8,670) | $ - | $ - | $ 16,602 |
| Provisions for loss on inventory and loss on disposal of inventory | 13,693 | 13,873 | - | - | 27,566 |
| Share of loss of associates accounted for using the equity method | 54,898 | (1,643) | - | - | 53,255 |
| Exchange differences on translating foreign operations | - | - | 633 | - | 633 |
| Provisions | 8,507 | 950 | - | - | 9,457 |
| Others | 638 | (456) | - | - | 182 |
| 103,008 | 4,054 | 633 | - | 107,695 | |
| Loss carryforwards | 11,454 | 9,664 | - | 812 | 21,930 |
| $ 114,462 | $ 13,718 | $ 633 | $ 812 | $ 129,625 | |
| Deferred tax liabilities | |||||
| Temporarily differences | |||||
| Provisions for gain on inventory and loss on disposal of inventory | $ - | $ 3,223 | $ - | $ - | $ 3,223 |
| Exchange differences on translating foreign operations | 284 | - | 339 | - | 623 |
| Others | 2,210 | 1,404 | - | - | 3,614 |
| $ 2,494 | $ 4,627 | $ 339 | $ - | $ 7,460 |
For the year ended December 31, 2024
| Opening Balance | Recognized in Profit or Loss | Recognized in Other Comprehensive Income | Exchange Differences | Closing Balance | |
|---|---|---|---|---|---|
| Deferred tax assets | |||||
| Temporarily differences | |||||
| Unrealized gross profit on sales | $ 22,750 | $ 2,522 | $ - | $ - | $ 25,272 |
| Provisions for loss on inventory and loss on disposal of inventory | 12,782 | 911 | - | - | 13,693 |
| Share of loss of associates accounted for using the equity method | 54,553 | 345 | - | - | 54,898 |
| Unrealized loss on foreign exchange | 1,225 | (1,225) | - | - | - |
| Exchange differences on translating foreign operations | 4,722 | - | (4,722) | - | - |
| Provisions | 8,687 | (180) | - | - | 8,507 |
| Others | 208 | 430 | - | - | 638 |
| 104,927 | 2,803 | (4,722) | - | 103,008 | |
| Loss carryforwards | 19,289 | (8,281) | - | 446 | 11,454 |
| $ 124,216 | $ (5,478) | $ (4,722) | $ 446 | $ 114,462 | |
| (Continued) |
| Opening Balance | Recognized in Profit or Loss | Recognized in Other Comprehensive Income | Exchange Differences | Closing Balance | |
|---|---|---|---|---|---|
| Deferred tax liabilities | |||||
| Temporarily differences | |||||
| Exchange differences on translating foreign operations | $ 7 | $ - | $ 277 | $ - | $ 284 |
| Others | 297 | 1,913 | - | - | 2,210 |
| $ 304 | $ 1,913 | $ 277 | $ - | $ 2,494 | |
| (Concluded) |
d. Unused loss carryforwards and deductible temporary differences for which no deferred tax assets have been recognized in the balance sheets
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Loss carryforwards | ||
| Expire in 2025 | $ - | $ 203,518 |
| Expire in 2026 | 38,500 | 38,500 |
| Expire in 2028 | 9,375 | 9,375 |
| Expire in 2029 | 14,203 | 14,203 |
| Expire in 2030 | 4,743 | 4,743 |
| Expire in 2031 | 9,591 | 9,591 |
| Expire in 2032 | 70,574 | 90,757 |
| Expire in 2033 | 35,451 | 36,129 |
| Expire in 2034 | 6,622 | 6,622 |
| Expire in 2035 | 61 | - |
| $ 189,120 | $ 413,438 | |
| Deductible temporary differences | $ 70,560 | $ 67,789 |
e. Information about unused loss carryforwards
Loss carryforwards of the Company, Fuxing Biomedical Co., Ltd, Liigen Inc., and subsidiaries in China and in U.S.A. as of December 31, 2025 comprised:
| Unused Amount | Expiry Year |
|---|---|
| $ 38,500 | 2026 |
| 9,375 | 2028 |
| 14,203 | 2029 |
| 4,743 | 2030 |
| 9,591 | 2031 |
| 110,691 | 2032 |
| 129,119 | 2033 and after |
| $ 316,222 |
f. Income tax assessments
The income tax returns of the Company through 2022 have been assessed by the tax authorities.
- (LOSSES) EARNINGS PER SHARE
Unit: NT$ Per Share
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Basic (losses) earnings per share | $ (0.20) | $ 0.03 |
| Diluted (losses) earnings per share | $ (0.20) | $ 0.03 |
The (loss) profit and the weighted-average shares of ordinary shares to calculate (losses) earnings per share were as follows:
Net (Loss) Profit for the Year
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| (Loss) profit used in the computation of basic and diluted (losses) earnings per share | $ (68,872) | $ 10,805 |
The weighted average number of ordinary shares outstanding (in thousands of shares) was as follows:
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Weighted-average number of ordinary shares used in computation of basic (losses) earnings per share | 343,427 | 343,427 |
| Effect of potentially dilutive ordinary shares | ||
| Employees’ compensation or bonuses issued to employees | - | 18 |
| Weighted average number of ordinary shares used in the computation of diluted (losses) earnings per share | 343,427 | 343,445 |
The Group may settle the compensation or bonuses paid to employees in cash or shares; therefore, the Group assumes that the entire amount of the compensation or bonuses will be settled in shares, and the resulting potential shares are included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year. Since the potential ordinary shares from employee compensation would result in an anti-dilutive effect on the computation of loss per share for 2025, they were excluded from the computation of diluted loss per share.
- 42 -
- 43 -
26. EQUITY TRANSACTIONS WITH NON-CONTROLLING INTERESTS
On February 19, 2024, the subsidiary Carilex Medical Inc. submitted documents for registration in the Emerging Stock Market, therefore, the Company legally transferred 1,000 shares of Carilex Medical Inc. to the Investor Protection Center. The above transaction was accounted for as an equity-method transaction, since the Group did not cease to have control over the subsidiary.
| Carilex Medical Inc. | |
|---|---|
| Consideration received | $ 49 |
| The proportionate share of the carrying amount of the net assets of the subsidiary transferred to non-controlling interests | - |
| Differences recognized from equity transactions | $ 49 |
| Line items adjusted for equity transactions | |
| Capital surplus - difference between consideration received or paid and the carrying amount of the subsidiaries’ net assets during actual disposal or acquisition | $ 49 |
In 2025, the Company purchased approximately 365,000 shares of Carilex Medical Inc., increasing its ownership interest from 71.56% to 73.36%. This transaction was accounted for under the equity method, since the Company did not cease to have control over the subsidiary.
| Carilex Medical Inc. | |
|---|---|
| Consideration paid | $ (14,132) |
| The proportionate share of the carrying amount of the net assets of the subsidiary transferred to non-controlling interests | 8,057 |
| Differences recognized from equity transactions | $ (6,075) |
| Line items adjusted for equity transactions | |
| Capital surplus - difference between consideration received or paid and the carrying amount of the subsidiaries’ net assets during actual disposal or acquisition | $ (6,075) |
27. CAPITAL MANAGEMENT
The Group manages its capital to ensure that the Group will be able to continue as going concerns while maximizing the return to stakeholders through the optimization of the debt and equity balance.
Key management personnel of the Group review the capital structure on an annual basis. As part of this review, the key management personnel consider the cost of capital and the risks associated with each class of capital. Based on recommendations of the key management personnel, in order to balance the overall capital structure, the Group may adjust the amount of dividends paid to shareholders, and the number of new shares issued or repurchased, the amount of new debt issued or existing debt redeemed.
28. FINANCIAL INSTRUMENTS
a. Fair value of financial instruments that are not measured at fair value
The management believes the carrying amount of the financial assets not carried at fair value is approximately equal to their fair value.
b. Fair value of financial instruments that are measured at fair value on a recurring basis
1) Fair value hierarchy
December 31, 2025
| Level 1 | Level 2 | Level 3 | Total | |
|---|---|---|---|---|
| Financial assets at FVTPL | ||||
| Derivatives | $ - | $ 567 | $ - | $ 567 |
| Foreign bonds | 6,233 | - | - | 6,233 |
| Foreign fund beneficiary certificates | 16,584 | - | - | 16,584 |
| Domestic listed shares | 1,402 | - | - | 1,402 |
| $ 24,219 | $ 567 | $ - | $ 24,786 | |
| Financial assets at FVTOCI | ||||
| Domestic listed shares | $ 84,461 | $ 53,626 | $ - | $ 138,087 |
| Domestic unlisted shares | - | - | 6,504 | 6,504 |
| Foreign unlisted shares | - | - | 117,735 | 117,735 |
| $ 84,461 | $ 53,626 | $ 124,239 | $ 262,326 | |
| December 31, 2024 | ||||
| Level 1 | Level 2 | Level 3 | Total | |
| Financial assets at FVTPL | ||||
| Derivatives | $ - | $ 3,103 | $ - | $ 3,103 |
| Domestic listed shares | 1,828 | - | - | 1,828 |
| $ 1,828 | $ 3,103 | $ - | $ 4,931 | |
| Financial assets at FVTOCI | ||||
| Domestic listed shares | $ 87,519 | $ 69,921 | $ - | $ 157,440 |
| Domestic unlisted shares | - | - | 5,535 | 5,535 |
| Foreign unlisted shares | - | - | 99,164 | 99,164 |
| $ 87,519 | $ 69,921 | $ 104,699 | $ 262,139 |
There were no transfers between Levels 1 and 2 in the current and prior years.
2) Reconciliation of Level 3 fair value measurements of financial instruments
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Balance at January 1 | $ 104,699 | $ 107,646 |
| Purchase shares | 7,229 | - |
| Recognized in other comprehensive income (included in unrealized gain on financial assets at FVTOCI) | 12,311 | (2,947) |
| Balance at December 31 | $ 124,239 | $ 104,699 |
3) Valuation techniques and inputs applied for Level 2 fair value measurement
| Financial Instruments | Valuation Techniques and Inputs |
|---|---|
| Derivatives - foreign exchange forward contracts | Discounted cash flow method: Future cash flows are estimated based on observable forward exchange rates at the end of the reporting period and contract forward rates, discounted at a rate that reflects the credit risk of various counterparties. |
| Privately placed stocks of domestic listed companies | The fair value is calculated based on the observable stock prices and the liquidity discount at the end of the reporting period. The liquidity discount was 10% as of December 31, 2025 and 2024. |
4) Valuation techniques and inputs applied for Level 3 fair value measurement
The fair values of domestic and foreign unlisted equity securities were determined using asset approach and income approach. In this approach, the net asset value of each share is evaluated by reference to financial information of the Company, observable information of market prices, and by considering liquidity discounts, 20%-30% as of December 31, 2025 and 2024, respectively. The lower the liquidity discount is, the higher the fair value of the investments.
c. Categories of financial instruments
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Financial assets | ||
| Financial assets at FVTPL | $ 24,786 | $ 4,931 |
| Financial assets at amortized cost (Note 1) | 1,138,816 | 1,189,532 |
| Financial assets at FVTOCI | 262,326 | 262,139 |
| Financial liabilities | ||
| Amortized cost (Note 2) | 474,832 | 348,138 |
Note 1: The balances include financial assets at amortized cost, which comprise cash and cash equivalents, trade receivables, other receivables, restricted bank deposits and refundable deposits.
Note 2: The balances include financial liabilities at amortized cost, which comprise short-term loans, trade payables, other payables and other non-current liabilities.
- 45 -
d. Financial risk management objectives and policies
The major financial instruments of the Group include trade receivables, accounts payable and short-term borrowings. The Group’s finance department provides services to the business units, coordinates access to domestic and international financial markets, and monitors and manages the financial risks relating to the operations of the Group through internal risk reports that analyze exposures by degree and magnitude of risks. These risks include market risk (including foreign currency risk and interest rate risk), credit risk, and liquidity risk.
1) Market risk
The Group’s activities exposed it primarily to the market risks of changes in foreign currency exchange rates and interest rates.
There has been no change to the Group’s exposure to market risks or the manner in which these risks are managed and measured. Sensitivity analysis is an estimate of the influence of the reasonably possible range of the interest rate and currency fluctuation in a year. Sensitivity analysis of interest rate and currency fluctuation was as follows:
a) Foreign currency risk
The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities (including the foreign currency denominated monetary assets and monetary liabilities that were eliminated upon consolidation) at the end of the reporting period are set out in Note 31.
Sensitivity analysis
The Group is mainly affected by the fluctuations of the U.S. dollar, Japanese yen, Euro and Great British Pound.
The table below is the analysis of the sensitivity of the Group’s foreign currencies to a 5% increase or decrease in the relevant currency rate on the balance sheet date. The 5% sensitivity rate is the currency risk factor used in the internal report to management; it is the rate that management believes represents the reasonably possible range of the currency fluctuation. The sensitivity analysis included only outstanding foreign-currency denominated monetary items and assumed their translation at the end of the reporting period for a 5% change in foreign currency rates.
The table below shows the amount of change in income before tax when the Group’s foreign currencies increase by 5% against the relevant currency. When the Group’s foreign increases fall 5% against the relevant currency, the impact on income before tax is the negative number of the same amount.
| U.S. Dollar | Japanese Yen | Euro | Pound Sterling | |||||
|---|---|---|---|---|---|---|---|---|
| For the Year Ended December 31 | For the Year Ended December 31 | For the Year Ended December 31 | For the Year Ended December 31 | |||||
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |
| Profit or loss | $(8,286) | $(10,351) | $(2,742) | $(894) | $(10,240) | $(13,697) | $(1,331) | $(1,460) |
The above effects are mainly derived from the Group’s outstanding cash in the bank, short-term loans, receivables and payables, which did not have cash flows hedged and which were valued in U.S. dollars, Japanese yen, Euros and Great British Pound on the balance sheet date.
- 46 -
b) Interest rate risk
The carrying amounts of the Group’s exposures to interest rates on financial assets and financial liabilities are as follows:
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Fair value interest rate risk | ||
| Financial assets | $ 224,388 | $ 391,622 |
| Cash flow interest rate risk | ||
| Financial assets | 665,908 | 583,469 |
| Financial liabilities | 131,763 | 52,135 |
Sensitivity analysis
The sensitivity analyses below have been determined the exposure to interest rates risk for non-derivative instruments at the end of the reporting period. Increase or decrease of 25-basis point is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.
If interest rates had been 25 basis points higher/lower and all other variables were held constant, the Group’s profit for the years ended December 31, 2025 and 2024 would increase/decrease by $1,335 thousand and $1,328 thousand, respectively. This is mainly attributable to the Group’s exposure to floating rates on demand deposits and short-term borrowings.
2) Credit risk
Credit risk refers to the risk that a counterparty will default on contractual obligations resulting in a financial loss to the Group. The maximum credit exposure of the aforementioned financial instruments is equal to their carrying amounts recognized in the consolidated balance sheet as of the balance sheet date.
The Group evaluates its main customers’ credit rating by the use of accessible financial information and transaction records with those customers. The Group keeps an eye on credit exposure and customers’ credit ratings.
The Group’s credit risk is mainly focused on its main customers. As of December 31, 2025 and 2024, the percent of the Group’s total receivables from its main customers were 50% and 35%, respectively.
3) Liquidity risk
The Group closely monitors operations and alleviates the effects of fluctuations in cash flows by managing and maintaining sufficient cash and cash equivalents. The management monitors the usage of the bank’s financing limit and ensures that the terms of loan agreements are followed.
Bank loans are sources of liquidity for the Group. As of December 31, 2025 and 2024, the Group’s unused bank financing limits were $919,010 thousand and $958,495 thousand, respectively.
- 47 -
The following tables detail the Group's remaining contractual maturities for its non-derivative financial liabilities with agreed upon repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Group can be required to pay. The tables include both interest and principal cash flows.
December 31, 2025
| Weighted-average Effective Interest Rate (%) | On Demand or Less than 1 Month | 1 to 3 Months | 3 Months to 1 Year | 1 Year to 5 Years | 5+ Years | |
|---|---|---|---|---|---|---|
| Financial liabilities - non-derivative | ||||||
| Non-interest bearing liabilities | - | $ 64,688 | $ 126,946 | $ 150,459 | $ - | $ - |
| Variable interest rate liabilities | 2.16 | 130,254 | 53 | 1,715 | - | - |
| Lease liabilities | 2.87 | 7,521 | 15,317 | 57,094 | 124,326 | - |
| $ 202,463 | $ 142,316 | $ 209,268 | $ 124,326 | $ - |
December 31, 2024
| Weighted-average Effective Interest Rate (%) | On Demand or Less than 1 Month | 1 to 3 Months | 3 Months to 1 Year | 1 Year to 5 Years | 5+ Years | |
|---|---|---|---|---|---|---|
| Financial liabilities - non-derivative | ||||||
| Non-interest bearing liabilities | - | $ 74,675 | $ 77,962 | $ 143,366 | $ - | $ - |
| Variable interest rate liabilities | 2.23 | 50,117 | 55 | 249 | 1,876 | - |
| Lease liabilities | 3.07 | 5,567 | 11,231 | 42,710 | 159,046 | - |
| $ 130,359 | $ 89,248 | $ 186,325 | $ 160,922 | $ - |
29. TRANSACTIONS WITH RELATED PARTIES
Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note. Besides information disclosed elsewhere in other notes, details of transactions between the Group and other related parties are disclosed below.
a. Related party name and category
| Related Party Name | Related Party Category |
|---|---|
| Other parties | |
| Ares International Corporation | The chairman is a second degree relative of the Company’s chairman |
b. Prepayments
| December 31 | ||
|---|---|---|
| Related Party Category/Name | 2025 | 2024 |
| Other parties | $ 128 | $ 732 |
c. Operating expenses
| For the Year Ended December 31 | ||
|---|---|---|
| Related Party Category | 2025 | 2024 |
| Other parties | $ 935 | $ 906 |
d. Remuneration of key management personnel
The remunerations of directors and key executives were as follows:
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Short-term employee benefits | $ 32,167 | $ 38,326 |
| Post-employment benefits | 608 | 584 |
| $ 32,775 | $ 38,910 |
The remuneration of directors and key executives was determined by the remuneration committee based on the performance of individuals and market trends.
30. PLEDGED ASSETS
The following assets were provided as collateral for bank guarantee and loan commitment were as follows:
| December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| Restricted bank deposits | $ 21,667 | $ 43,333 |
| Transportation equipment | 1,155 | 1,380 |
| $ 22,822 | $ 44,713 |
- 50 -
31. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES
The Group’s significant financial assets and liabilities denominated in foreign currencies aggregated by the foreign currencies other than functional currencies of the entities in the Group and the related exchange rates between the foreign currencies and the respective functional currencies were as follows:
(Foreign Currencies in Thousands)
| December 31 | ||||||
|---|---|---|---|---|---|---|
| 2025 | 2024 | |||||
| Foreign Currency | Exchange Rate | Carrying Amount | Foreign Currency | Exchange Rate | Carrying Amount | |
| Financial assets | ||||||
| Monetary items | ||||||
| USD | $ 10,913 | 31.430 | $ 343,001 | $ 10,228 | 32.785 | $ 335,311 |
| EUR | 5,570 | 36.90 | 205,538 | 8,033 | 34.14 | 274,262 |
| JPY | 273,129 | 0.2008 | 54,844 | 85,149 | 0.2099 | 17,873 |
| GBP | 641 | 42.33 | 27,153 | 711 | 41.19 | 29,306 |
| Financial liabilities | ||||||
| Monetary items | ||||||
| USD | 5,640 | 31.430 | 177,275 | 3,913 | 32.785 | 128,294 |
| EUR | 20 | 36.90 | 746 | 10 | 34.14 | 330 |
| GBP | 13 | 42.33 | 543 | 3 | 41.19 | 112 |
For the Group’s realized and unrealized foreign exchange gains (losses) in 2025 and 2024, refer to Note 23. It is impractical to disclose net foreign exchange gains (losses) by each significant foreign currency due to the variety of the foreign currency transactions.
32. SEPARATELY DISCLOSED ITEMS
a. Information about significant transactions and b. investees
1) Financing provided to others: None;
2) Endorsements/guarantees provided: None;
3) Significant marketable securities held (excluding investments in subsidiaries and associates and joint ventures): Table 1 (attached);
4) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: Table 2 (attached);
5) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: Table 3 (attached);
6) Information on investees: Table 4 (attached);
7) Intercompany relationships and significant intercompany transactions: Table 6 (attached).
c. Information on investments in mainland China
1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area: Table 5 (attached);
2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses:
a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period: None;
b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period:
| Seller Company | Related Party | Sales | Trade Receivables | ||
|---|---|---|---|---|---|
| Amount | % of Sales | Amount | % of Trade Receivables | ||
| Shuttle Inc. | S.C.M. | $ 10,990 | 1.33 | $ 1,902 | 1.10 |
c) The amount of property transactions and the amount of the resultant gains or losses: None;
d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes: None;
e) The highest period balance, the end of period balance, the interest rate range, and total current period interest with respect to financing of funds: None;
f) Other transactions that have a material effect on the profit or loss for the period or on the financial position, such as the rendering or receipt of services: None.
- SEGMENT INFORMATION
The following was an analysis of the Group’s revenue and results from continuing operations for 2025 and 2024 by reportable segments:
a. Segment revenue and results
| Computer Equipment | Medical Devices | Adjustments and Elimination | Total | |
|---|---|---|---|---|
| For the year ended December 31, 2025 | ||||
| Segment revenue | $ 1,403,997 | $ 338,628 | $ (1,030) | $ 1,741,595 |
| Segment profit or loss | $ (47,042) | $ (40,053) | $ (4,816) | $ (91,911) |
| Interest revenue | 15,444 (Continued) |
- 52 -
| Computer Equipment | Medical Devices | Adjustments and Elimination | Total | |
|---|---|---|---|---|
| Share of profit or loss of joint ventures accounted for using the equity method | $ (150) | |||
| Revenue | 11,046 | |||
| Financial costs | (7,397) | |||
| Other gains and losses | (11,110) | |||
| Profit before tax | $ (84,078) | |||
| Identifiable assets | $ 1,174,392 | $ 53,905 | $ - | $ 1,228,297 |
| Investments accounted for using the equity method | 36,719 | |||
| Assets | 3,124,391 | |||
| Total assets | $ 4,389,407 | |||
| For the year ended December 31, 2024 | ||||
| Segment revenue | $ 1,315,946 | $ 351,721 | $ (622) | $ 1,667,045 |
| Segment profit or loss | $ (47,731) | $ 2,150 | $ (4,625) | $ (50,206) |
| Interest revenue | 30,959 | |||
| Share of profit or loss of joint ventures accounted for using the equity method | (228) | |||
| Revenue | 13,777 | |||
| Financial costs | (7,604) | |||
| Other gains and losses | 34,470 | |||
| Profit before tax | $ 21,168 | |||
| Identifiable assets | $ 1,199,117 | $ 28,083 | $ - | $ 1,227,200 |
| Investments accounted for using the equity method | 37,608 | |||
| Assets | 3,135,574 | |||
| Total assets | $ 4,400,382 | |||
| (Concluded) |
b. Revenue from major products and services
An analysis of the Group’s revenue from continuing operations from its major products and services is as follows:
| For the Year Ended December 31 | ||
|---|---|---|
| 2025 | 2024 | |
| XPC | $ 1,333,480 | $ 1,254,893 |
| Air mattress and medical peripherals | 338,628 | 351,721 |
| Computer peripherals and components | 69,487 | 60,431 |
| $ 1,741,595 | $ 1,667,045 |
The balances of the Group’s contact liabilities arising from sales of goods were $17,021 thousand and $14,148 thousand as of December 31, 2025 and 2024, respectively. The change in contract liabilities mainly arises from the difference in the timing of customers’ payment and satisfaction of performance obligation.
c. Geographical information
The Group operates in four principal geographical areas - America, Asia, China and Europe.
The Group’s revenue from continuing operations from external customers by location of operations and information about its non-current assets by location of assets are detailed below:
| Revenue from External Customers | Non-current Assets | |||
|---|---|---|---|---|
| For the Year Ended December 31 | December 31 | |||
| 2025 | 2024 | 2025 | 2024 | |
| America | $ 577,088 | $ 559,045 | $ 30,032 | $ 39,555 |
| Asia | 188,202 | 179,798 | 7,124 | 7,415 |
| Europe | 839,379 | 801,241 | 20,515 | 23,942 |
| China | 12,917 | 6,086 | 71,836 | 75,637 |
| Domestic | 74,828 | 63,934 | 1,731,963 | 1,724,776 |
| Others | 49,181 | 56,941 | - | - |
| $ 1,741,595 | $ 1,667,045 | $ 1,861,470 | $ 1,871,325 |
Non-current assets exclude financial instruments, net defined benefit assets and deferred tax assets.
d. Information about major customers
No single customers contributed 10% or more to the Group’s revenue for both 2025 and 2024.
- 53 -
TABLE 1
SHUTTLE INC. AND SUBSIDIARIES
SIGNIFICANT MARKETABLE SECURITIES HELD
DECEMBER 31, 2025
(In Thousands of New Taiwan Dollars)
| Holding Company Name | Type and Name of Marketable Securities | Relationship with the Holding Company | Financial Statement Account | December 31, 2025 | Note | |||
|---|---|---|---|---|---|---|---|---|
| Number of Shares/Units | Carrying Amount | Percentage of Ownership (%) | Fair Value | |||||
| Shuttle Inc. | Shares | |||||||
| Motech Industries Inc. | - | Financial assets at FVTOCI - current | 400,730 | $ 8,616 | 0.10 | $ 8,616 | ||
| InterServ International Inc. | - | Financial assets at FVTOCI - non-current | 1,114,834 | 21,405 | 4.77 | 21,405 | ||
| Lutz Yonson Holdings Company Limited | - | Financial assets at FVTOCI - non-current | 1,779 | 117,735 | 15.10 | 117,735 | ||
| Bonds | ||||||||
| TSMC Arizona Corp USD-denominated foreign bonds | - | Financial assets at FVTPL - non-current | 200 | 6,233 | - | 6,233 | ||
| Fund | ||||||||
| UBS (Lux) Bond Fund - Euro High Yield (EUR) (JPY hedged) P-mdist | - | Financial assets at FVTPL - non-current | 9,883 | 16,584 | - | 16,584 | ||
| Yong Jhao Innovation Investment Co., Ltd. | Shares | |||||||
| Yao Sheng Electronic Co., Ltd. | - | Financial assets at FVTPL - current | 20,000 | 1,402 | 0.03 | 1,402 | ||
| Motech Industries Inc. | - | Financial assets at FVTOCI - current | 465,110 | 10,000 | 0.12 | 10,000 | ||
| Ares International Corporation | Chairman has a second-degree kinship to the Company's chairman | Financial assets at FVTOCI - current | 150,000 | 7,477 | 0.32 | 7,477 | ||
| Yao Sheng Electronic Co., Ltd. | - | Financial assets at FVTOCI - non-current | 850,000 | 53,626 | 1.28 | 53,626 | ||
| I-See Vision Technology Inc. | - | Financial assets at FVTOCI - non-current | 987,128 | 5,768 | 2.52 | 5,768 | ||
| Viware Ulife Co., Ltd. | - | Financial assets at FVTOCI - non-current | 400,000 | 736 | 8.00 | 736 | ||
| Shui-Mu International Co., Ltd. | - | Financial assets at FVTOCI - non-current | 3,330,000 | 36,963 | 4.99 | 36,963 |
Note 1: Disclosure of the marketable securities held above is decided by the Company based on the materiality principle.
Note 2: Information on investees is set out in Tables 4 and 5.
TABLE 2
SHUTTLE INC. AND SUBSIDIARIES
TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL
FOR THE YEAR ENDED DECEMBER 31, 2025
(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)
| Company Name | Related Party | Nature of Relationship | Transaction Details | Abnormal Transaction | Accounts Receivable (Payable) | Note | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Purchase/Sale | Amount | % to Total | Payment Terms | Unit Price | Payment Terms | Ending Balance | % of Total | ||||
| Shuttle Inc. | S.C.H. | Subsidiary of Gold Fountain Limited | Sale | $ (425,540) | (51) | OA 120 days | - | - | $ 23,972 | 14 | |
| S.C.H. | Shuttle Inc. | Parent company of Gold Fountain Limited | Purchase | 425,540 | 81 | OA 120 days | - | - | (23,972) | (81) | |
| Shuttle Inc. | S.C.G. | Subsidiary of Gold Fountain Limited | Sale | (209,050) | (25) | OA 120 days | - | - | 113,216 | 66 | |
| S.C.G. | Shuttle Inc. | Parent company of Gold Fountain Limited | Purchase | 209,050 | 78 | OA 120 days | - | - | (113,216) | (96) |
Note: The amount was eliminated upon consolidation.
TABLE 3
SHUTTLE INC. AND SUBSIDIARIES
RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL
DECEMBER 31, 2025
(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)
| Company Name | Related Party | Relationship | Ending Balance | Turnover Rate | Overdue | Amount Received in Subsequent Period | Allowance for Impairment Loss | |
|---|---|---|---|---|---|---|---|---|
| Amount | Actions Taken | |||||||
| Shuttle Inc. | S.C.G. | Subsidiary of Gold Fountain Limited | $ 113,216 | 2.37 | $ - | - | $ 13,820 | $ - |
TABLE 4
SHUTTLE INC. AND SUBSIDIARIES
NAMES, LOCATIONS, AND OTHER INFORMATION OF INVESTEES OVER WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCE
FOR THE YEAR ENDED DECEMBER 31, 2025
(In Thousands of New Taiwan Dollars)
| Investor Company | Investee Company | Location | Main Businesses and Products | Original Investment Amount | Balance as of December 31, 2025 | Net Income (Loss) of the Investee | Investment Gain (Loss) | Note | |||
|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, 2025 | December 31, 2024 | Number of Shares | Percentage of Ownership (%) | Carrying Amount | |||||||
| Shuttle Inc. | Holco (BVI) Inc. | B.V.I. | Investment holding company | $ 285,137 | $ 285,137 | 923 | 100.00 | $ 247,018 | $ (15,459) | $ (15,459) | Note 1 |
| Gold Fountain Limited | Cayman Islands | Investment holding company | 337,041 | 337,041 | 10,000,000 | 100.00 | 215,795 | 12,688 | 42,957 | Notes 1 and 3 | |
| Fuxing Biomedical Co., Ltd. | 2F., No. 30, Ln. 76, Ruiguang Rd., Neihu Dist., Taipei City | Providing elderly care services and selling medical peripherals | 100,000 | 100,000 | 10,000,000 | 100.00 | 30,271 | 284 | |||
| Liigen Inc. | 6F., No. 32, Ln. 76, Ruiguang Rd., Neihu Dist., Taipei City | Selling and maintaining computers and peripherals | 15,000 | 15,000 | 1,500,000 | 100.00 | 696 | (61) | (61) | ||
| Yong Jhao Innovation Investment Co., Ltd. | No. 30, Ln. 76, Ruiguang Rd., Neihu Dist., Taipei City | Investment holding company | 379,107 | 379,107 | 16,350,000 | 100.00 | 421,000 | (15,115) | (22,659) | Notes 1 and 2 | |
| Big Ten Investment Consulting Co., Ltd. | No. 30, Ln. 76, Ruiguang Rd., Neihu Dist., Taipei City | Investment holding company | 182,503 | 182,503 | 10,000,000 | 100.00 | 104,768 | (2,395) | (3,834) | Notes 1 and 2 | |
| Carilex Medical Inc. | No. 77, Keji Ist Rd., Guishan Dist., Taoyuan City | Selling and maintaining medical peripherals | 21,814 | 21,814 | 1,270,602 | 6.26 | 25,587 | (28,979) | (2,663) | Notes 1 and 2 | |
| Holco (BVI) Inc. | S.H.K. | Unit 1405-1406, Dominion Centre, 43-59 Queen's Road East, Wanchai | Selling and maintaining computers and peripherals | 262,218 | 262,218 | 8,001,300 | 100.00 | 199,422 | (17,094) | (17,094) | |
| Gold Fountain Limited | S.C.G. | 17068 EVERGREEN PL, CITY OF INDUSTRY, CA 91745 U.S.A. | Selling and maintaining computers and peripherals | 186,662 | 186,662 | 30,000 | 100.00 | 98,281 | 5,516 | 5,516 | Note 1 |
| S.C.H. | FRITZ-STRASSMANN STR. 5 D-25337 ELMSHORN, GERMANY | Selling and maintaining computers and peripherals | 171,495 | 171,495 | 100.00 | 161,059 | 6,373 | 6,373 | Note 1 | ||
| S.C.J. | 2F Murakami Bldg., 1-8-3 Ojima Koto-ku Tokyo, 136-0072 Japan | Selling and maintaining computers and peripherals | 34,658 | 34,658 | 2,000 | 100.00 | 33,413 | 891 | 891 | ||
| Yong Jhao Innovation Investment Co., Ltd. | Carilex Medical Inc. | No. 77, Keji Ist Rd., Guishan Dist., Taoyuan City | Selling and maintaining medical peripherals | 146,035 | 146,035 | 11,288,829 | 55.60 | 161,758 | (28,979) | (16,112) | Note 1 |
| Big Ten Investment Consulting Co., Ltd. | Carilex Medical Inc. | No. 77, Keji Ist Rd., Guishan Dist., Taoyuan City | Selling and maintaining medical peripherals | 59,123 | 44,953 | 2,334,382 | 11.50 | 33,457 | (28,979) | (3,289) | Note 1 |
| Carilex Medical Inc. | Carilex Medical Ltd | Unit B3 Chaucer Business Park, Dittions Road, Polegate, BN26 6QH | Selling and maintaining medical peripherals | 24,038 | 24,038 | 600,000 | 100.00 | 37,259 | 9,216 | 9,216 | |
| Carilex Medical USA, Inc. | 17068 EVERGREEN PL, CITY OF INDUSTRY, CA 91745 U.S.A. | Selling and maintaining medical peripherals | 2,787 | 2,787 | 100,000 | 100.00 | 8,145 | 12,784 | 12,784 | Note 1 | |
| Carilex Medical Technologies GmbH | FRITZ-STRASSMANN STR. 5 D-25337 ELMSHORN, GERMANY | Selling and maintaining medical peripherals | 6,341 | 6,341 | 100.00 | 7,113 | 2,334 | 2,334 |
Note 1: The recognition of investment gains (losses) was based on the investee's audited financial statements.
Note 2: The difference between the subsidiaries' net value and the Company's acquisition costs should be amortized monthly.
Note 3: Unrealized gain (loss) on transactions with subsidiaries was considered.
Note 4: Unrealized gain (loss) on sidestream transactions among subsidiaries was considered.
Note 5: The information on investments in mainland China is set out in Table 5.
Note 6: The amount was eliminated upon consolidation.
TABLE 5
SHUTTLE INC. AND SUBSIDIARIES
INVESTMENTS IN MAINLAND CHINA
FOR THE YEAR ENDED DECEMBER 31, 2025
(New Taiwan Dollars and Foreign Currencies in Thousands)
| Investee Company | Main Businesses and Products | Paid-in Capital | Method of Investment | Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2025 | Remittance of Funds | Accumulated Outward Remittance for Investment from Taiwan as of December 31, 2025 | Net Income (Loss) of the Investee | Ownership of Direct or Indirect Investment (%) | Investment Gain (Loss) (Note 3) | Carrying Amount as of December 31, 2025 | Accumulated Repatriation of Investment Income as of December 31, 2025 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Outward | Inward | |||||||||||
| S.C.M. | Selling and maintaining computers and peripheral products | $ 55,617 | (Note 1) | $ 55,617 | $ - | $ - | $ 55,617 | $ 212 | 100 | $ 212 | $ 5,986 | $ - |
| Shandong Lixin Pension Industry Development Co., Ltd. | Elder care service and peripheral products | 91,090 | (Note 3) | - | - | - | - | (300) | 50 | (150) | 36,719 | - |
| Accumulated Outward Remittance for Investment in Mainland China as of December 31, 2025 (Note 5) | Investment Amounts Authorized by Investment Commission, MOEA | Upper Limit on the Amount of Investment Stipulated by Investment Commission, MOEA (Note 4) | ||||||||||
| --- | --- | --- | ||||||||||
| $375,336 | US$14,486 | $2,156,725 |
Note 1: Investments were through a holding company registered in a third region.
Note 2: Investments were through S.H.K.
Note 3: Investment amounts in other investee companies were calculated based on unaudited financial statements for the same period.
Note 4: The limit stated in the Investment Commission's regulation, "Investment or Technical Cooperation in Mainland China Adjustment Rule", is the higher of the Company's net asset value or 60% of its consolidated net asset value.
Note 5: The amount included original investment amounts of $7,621 thousand, $21,319 thousand, $43,024 thousand, $215,745 thousand and 32,010 thousand which were not returned by the respective liquidated companies, Shuttle Computer (Shanghai) Incorporation Limited, Shuttle Technology (Shenzhen) Ltd., KAKI, Shuttle Information Technology (Sip) Ltd and S.C.Q.
Note 6: The amount was eliminated upon consolidation.
- 58 -
TABLE 6
SHUTTLE INC. AND SUBSIDIARIES
INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 2025
(In Thousands of New Taiwan Dollars)
| No. | Investee Company | Counterparty | Relationship (Note 1) | Transaction Details | % to Total Sales or Assets | ||
|---|---|---|---|---|---|---|---|
| Financial Statement Account | Amount | Payment Terms | |||||
| 0 | Shuttle Inc. | S.C.H. | a | Sales revenue | $ 425,540 | OA 120 days | 24 |
| S.C.H. | a | Trade receivables from related parties | 23,972 | OA 120 days | 1 | ||
| S.C.G. | a | Trade receivables from related parties | 113,216 | OA 120 days | 3 | ||
| S.C.G. | a | Sales revenue | 209,050 | OA 120 days | 12 | ||
| S.C.G. | a | Other income | 43,562 | OA 120 days | 3 | ||
| S.C.J. | a | Trade receivables from related parties | 19,767 | OA 120 days | - | ||
| S.C.J. | a | Sales revenue | 52,406 | OA 120 days | 3 | ||
| S.C.M. | a | Sales revenue | 10,990 | OA 120 days | 1 | ||
| 1 | Carilex Medical Inc. | Carilex Medical USA, Inc. | c | Trade receivables from related parties | 42,464 | OA 90 days | 1 |
| Carilex Medical USA, Inc. | c | Other Receivables | 25,144 | OA 90 days | 1 | ||
| Carilex Medical USA, Inc. | c | Other income | 27,871 | OA 90 days | 1 | ||
| Carilex Medical Ltd. | c | Trade payables from related parties | 10,243 | OA 90 days | - | ||
| 2 | S.C.M. | S.H.K. | c | Technical service income | 14,908 | OA 120 days | 1 |
Note 1: Related party transactions are divided into three categories (based on the flow of the transaction and the relationship between the parties) as follows:
a. From the Company to subsidiaries.
b. From the subsidiary to the Company.
c. Between subsidiaries.
Note 2: The table discloses transaction amounts or balances of $10,000 thousand and above, while the counterparty is not otherwise specified.
Note 3: The amount was eliminated upon consolidation.