Stock Code:6782

VISCO VISION INC.

Parent-Company-Only Financial Statements

With Independent Auditors' Report
For the Years Ended December 31, 2025 and 2024

Address: No. 1, Xingye St., Guishan Dist., Taoyuan City, Taiwan
Telephone: 886-3-359-6868

The independent auditors' report and the accompanying parent-company-only financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors' report and parent-company-only financial statements, the Chinese version shall prevail.

Contents	Page
1. Cover Page	1
2. Table of Contents	2
3. Independent Auditors’ Report	3
4. Parent-Company-Only Balance Sheets	4
5. Parent-Company-Only Statements of Comprehensive Income	5
6. Parent-Company-Only Statements of Changes in Equity	6
7. Parent-Company-Only Statements of Cash Flows	7
8. Notes to the Parent-Company-Only Financial Statements
(1) Organization and business	8
(2) Authorization of the parent-company-only financial statements	8
(3) Application of new and revised accounting standards and interpretations	8~10
(4) Summary of material accounting policies	10~22
(5) Critical accounting judgments and key sources of estimation and assumption uncertainty	22
(6) Significant account disclosures	22~42
(7) Related-party transactions	42~45
(8) Pledged assets	45
(9) Significant commitments and contingencies	45
(10) Significant loss from disaster	46
(11) Significant subsequent events	46
(12) Others	46~47
(13) Additional disclosures
(a) Information on significant transactions	47~48
(b) Information on investees	49
(c) Information on investment in Mainland China	49~50
(14) Segment information	50
9. List of major account titles	51~59

KPMG

多信連素群合作計算子答題

KPMG

台北市110615信義路5段7號68樓(台北101大樓)

68F., TAIPEI 101 TOWER, No. 7, Sec. 5,

Xinyi Road, Taipei City 110615, Taiwan (R.O.C.)

電話 Tel +886 2 8101 6666

傳真 Fax +886 2 8101 6667

網址 Web kpmg.com/tw

Independent Auditors’ Report

To the Board of Directors of Visco Vision Inc.:

Opinion

We have audited the parent-company-only financial statements of Visco Vision Inc. (“the Company”), which comprise the parent-company-only balance sheets as of December 31, 2025 and 2024, the parent-company-only statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the parent-company-only financial statements, including a summary of material accounting policies.

In our opinion, the accompanying parent-company-only financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Parent-Company-Only Financial Statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis of our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significant in our audit of the parent-company-only financial statements of the current period. These matters were addressed in the context of our audit of parent-company-only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

KPMG, a Taiwan partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

KPMG

Key audit matters for the Company’s parent-company-only financial statements for the year ended December 31, 2025 are stated as follows:

Revenue recognition

Please refer to Note 4(o) for the accounting policies on revenue recognition and Note 6(q) for related disclosures of revenue recognition, respectively, to the parent-company-only financial statements.

Description of key audit matter:

The Company deals with customers located in different geographic areas worldwide and has various trade terms with customers. Revenue is recognized at the timing of transferring control of goods to customers, which is identified based on each individual sale transaction and trade term. This exposes the Company to the risk that the sales transactions made close to the balance sheet date are not recorded in the appropriate period. Therefore, revenue recognition has been identified as one of the key audit matters.

How the matter was addressed in our audit:

In relation to the key audit matter above, our principal audit procedures included, among others, testing the Company’s internal controls over financial reporting in the sales and collection cycle; performing a sample test on sales transactions that took place before and after the balance sheet date to assess the accuracy of the timing of revenue recognition through understanding of trade terms between the Company and its customers as well as vouching related transaction documents.

Impairment of goodwill from investments in subsidiaries

Please refer to Note 4(m) for the accounting policies on impairment of non-financial assets, Note 5 for the uncertainty of accounting estimations and assumptions for goodwill impairment, and Note 6(f) for related disclosures of impairment test of goodwill, respectively, to the parent-company-only financial statements.

Description of key audit matter:

Goodwill arising from the acquisition of From-eyes Co., Ltd., which is included in the carrying amount of investments accounted for using the equity method, is subject to an impairment test annually or when there are indications that goodwill may have been impaired. The assessment of the recoverable amount of cash generating units that include goodwill involves management’s judgement and estimation. Accordingly, the assessment of impairment of goodwill has been identified as one of the key audit matters.

How the matter was addressed in our audit:

In relation to the key audit matter above, our principal audit procedures included, among others, obtaining assessment of impairment of goodwill with respect to From-eyes Co., Ltd. provided by the management; assessing the appropriateness of the estimation and key assumptions, including the discount rate, expected revenue growth rate and future cash flow projections, used by the management in measuring the recoverable amount; evaluating the reasonableness of management’s estimates of financial forecasts and performing a sensitivity analysis of key assumptions and results and assessing the adequacy of the Company’s disclosures with respect to the related information on goodwill impairment.

KPMG

Responsibilities of Management and Those Charged with Governance for the Parent-Company-Only Financial Statements

Management is responsible for the preparation and fair presentation of the parent-company-only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and for such internal control as management determines is necessary to enable the preparation of parent-company-only financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the parent-company-only financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance (including the Audit Committee) are responsible for overseeing the Company’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Parent-Company-Only Financial Statements

Our objectives are to obtain reasonable assurance about whether the parent-company-only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these parent-company-only financial statements.

As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the parent-company-only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the parent-company-only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the parent-company-only financial statements, including the disclosures, and whether the parent-company-only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

KPMG

Obtain sufficient appropriate audit evidence regarding the financial information of the investee companies accounted for using the equity method to express an opinion on the parent-company-only financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent-company-only financial statements of the current year and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audit resulting in this independent auditors’ report are Kao, Ching-Wen and Hsu, Shih-Chun.

KPMG

Taipei, Taiwan (Republic of China)
February 25, 2026

Notes to Readers

The accompanying parent-company-only financial statements are intended only to present the financial position, financial performance and cash flows in accordance with the accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such parent-company-only financial statements are those generally accepted and applied in the Republic of China.

The independent auditors’ audit report and the accompanying parent-company-only financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ report and parent-company-only financial statements, the Chinese version shall prevail.

(English Translation of Parent-Company-Only Financial Statements and Report Originally Issued in Chinese)

VISCO VISION INC.

Parent-Company-Only Balance Sheets

December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollar)

Assets	December 31, 2025		December 31, 2024		Liabilities and Equity	December 31, 2025		December 31, 2024
		Amount	%	Amount		%	Amount	%	Amount	%
Current assets:						Current liabilities:
1100	Cash and cash equivalents (note 6(a))	$ 119,606	2	442,990	9	2130	Contract liabilities – current (note 6(q))	$ 15,357	-	24,871
1110	Financial assets at fair value through profit or loss – current (note 6(b))	38,190	1	-	-	2170	Notes and accounts payable	28,715	1	7,908
1170	Accounts receivable, net (notes 6(d) and (q))	188,650	3	233,381	5	2180	Accounts payable to related parties (note 7)	445,951	8	523,346
1180	Accounts receivable from related parties (notes 6(d), (q) and 7)	566,892	10	341,800	7	2219	Other payables (note 6(r))	259,158	4	192,138
1200	Other receivables	-	-	226	-	2220	Other payables to related parties (note 7)	2,853	-	1,328
1210	Other receivables from related parties (note 7)	5,243	-	9,387	-	2281	Lease liabilities – current (notes 6(k) and 7)	7,487	-	6,272
130X	Inventories (note 6(e))	55,994	1	-	-	2322	Current portion of long-term debt (note 6(l))	149,065	3	249,065
1479	Prepayments and other current assets	28,361	1	20,619	-	2399	Other current liabilities	1,936	-	1,628
	Total current assets	1,002,936	18	1,048,403	21		Total current liabilities	910,522	16	1,006,556
Non-current assets:						Non-current liabilities:
1550	Investments accounted for using equity method (notes 6(c) and (f))	4,524,125	80	3,795,307	76	2540	Long-term debt (note 6(l))	307,994	6	267,058
1600	Property, plant and equipment (notes 6(g) and 7)	84,196	1	102,908	3	2570	Deferred income tax liabilities (note 6(n))	653	-	-
1755	Right-of-use assets (notes 6(h) and 7)	23,211	1	13,791	-	2581	Lease liabilities – non-current (notes 6(k) and 7)	16,347	-	8,108
1780	Intangible assets (note 6(i))	2,327	-	2,217	-		Total non-current liabilities	324,994	6	275,166
1840	Deferred income tax assets (note 6(n))	18,692	-	13,734	-		Total liabilities	1,235,516	22	1,281,722
1915	Prepayments for equipment	800	-	280	-	Equity (notes 6(c) and (o)):
1920	Refundable deposits	1,529	-	1,529	-	3110	Common stock	630,000	11	630,000
1990	Other non-current assets	-	-	600	-	3200	Capital surplus	1,431,007	25	1,431,007
	Total non-current assets	4,654,880	82	3,930,366	79		Retained earnings:
						3310	Legal reserve	256,273	5	188,770
						3320	Special reserve	-	-	194,181
						3350	Unappropriated earnings	1,931,439	34	1,238,990
								2,187,712	39	1,621,941
						3400	Other equity	173,581	3	14,099
							Total equity	4,422,300	78	3,697,047
Total assets		$ 5,657,816	100	4,978,769	100	Total liabilities and equity	$ 5,657,816	100	4,978,769	100

See accompanying notes to the parent-company-only financial statements.

(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)

VISCO VISION INC.

Parent-Company-Only Statements of Comprehensive Income

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollar, Except for Earnings Per Share)

	2025		2024
		Amount	%	Amount	%
4000	Net sales (notes 6(q) and 7)	$ 3,851,656	100	3,382,124	100
5000	Cost of sales (notes 6(e) and 7)	(2,881,219)	(75)	(2,549,036)	(75)
	Gross profit	970,437	25	833,088	25
5910	Realized (unrealized) gross profit on sales	(24,226)	-	(32,164)	(1)
5950	Realized gross profit	946,211	25	800,924	24
	Operating expenses (notes 6(g), (h), (i), (k), (m), (r), 7 and 12):
6100	Selling expenses	(53,679)	(1)	(33,999)	(1)
6200	Administrative expenses	(170,030)	(5)	(153,355)	(5)
6300	Research and development expenses	(195,400)	(5)	(201,371)	(6)
	Total operating expenses	(419,109)	(11)	(388,725)	(12)
	Operating income	527,102	14	412,199	12
	Non-operating income and loss (notes 6(f), (k), (s) and 7):
7100	Interest income	4,976	-	6,204	-
7010	Other income	2,246	-	8,658	-
7020	Other gains and losses	2,309	-	(17,403)	-
7050	Finance costs	(11,111)	-	(14,086)	-
7070	Share of profits of subsidiaries and associates	487,848	12	318,761	9
	Total non-operating income and loss	486,268	12	302,134	9
7900	Income before income tax	1,013,370	26	714,333	21
7950	Income tax expense (note 6(n))	(126,299)	(3)	(77,862)	(2)
8200	Net income	887,071	23	636,471	19
	Other comprehensive income (note 6(o)):
8310	Items that will not be reclassified subsequently to profit or loss:
8316	Unrealized gains from investments in equity instruments measured at fair value through other comprehensive income	-	-	8,671	-
8330	Share of other comprehensive loss of subsidiaries	(27,874)	(1)	-	-
8349	Income tax related to items that will not be reclassified subsequently to profit or loss	-	-	-	-
		(27,874)	(1)	8,671	-
8360	Items that may be reclassified subsequently to profit or loss:
8361	Exchange differences on translation of foreign operations	187,356	5	238,165	7
8399	Income tax related to items that may be reclassified subsequently to profit or loss	-	-	-	-
		187,356	5	238,165	7
	Other comprehensive income for the year, net of income tax	159,482	4	246,836	7
8500	Total comprehensive income for the year	$ 1,046,553	27	883,307	26
	Earnings per share (in New Taiwan Dollar) (note 6(p)):
9750	Basic earnings per share	$	14.08		10.10
9850	Diluted earnings per share	$	13.98		10.06

See accompanying notes to the parent-company-only financial statements.

(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)

VISCO VISION INC.

Parent-Company-Only Statements of Changes in Equity

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollar)

		Retained earnings					Other equity
	Common stock	Capital surplus	Legal reserve	Special reserve	Unappropriated earnings	Total retained earnings	Foreign currency translation differences	Unrealized gains (losses) from financial assets at fair value through other comprehensive income	Subtotal	Total equity
Balance at January 1, 2024	$ 630,000	1,431,007	158,609	119,796	819,709	1,098,114	(224,066)	29,885	(194,181)	2,964,940
Net income in 2024	-	-	-	-	636,471	636,471	-	-	-	636,471
Other comprehensive income in 2024	-	-	-	-	-	-	238,165	8,671	246,836	246,836
Total comprehensive income in 2024	-	-	-	-	636,471	636,471	238,165	8,671	246,836	883,307
Appropriation of earnings:
Legal reserve	-	-	30,161	-	(30,161)	-	-	-	-	-
Special reserve	-	-	-	74,385	(74,385)	-	-	-	-	-
Cash dividends distributed to shareholders	-	-	-	-	(151,200)	(151,200)	-	-	-	(151,200)
Disposal of equity investments measured at fair value through other comprehensive income	-	-	-	-	38,556	38,556	-	(38,556)	(38,556)	-
Balance at December 31, 2024	630,000	1,431,007	188,770	194,181	1,238,990	1,621,941	14,099	-	14,099	3,697,047
Net income in 2025	-	-	-	-	887,071	887,071	-	-	-	887,071
Other comprehensive income (loss) in 2025	-	-	-	-	-	-	187,356	(27,874)	159,482	159,482
Total comprehensive income (loss) in 2025	-	-	-	-	887,071	887,071	187,356	(27,874)	159,482	1,046,553
Appropriation of earnings:
Legal reserve	-	-	67,503	-	(67,503)	-	-	-	-	-
Reversal of special reserve	-	-	-	(194,181)	194,181	-	-	-	-	-
Cash dividends distributed to shareholders	-	-	-	-	(321,300)	(321,300)	-	-	-	(321,300)
Balance at December 31, 2025	$ 630,000	1,431,007	256,273	-	1,931,439	2,187,712	201,455	(27,874)	173,581	4,422,300

See accompanying notes to the parent-company-only financial statements.

(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)

VISCO VISION INC.

Parent-Company-Only Statements of Cash Flows

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollar)

	2025	2024
Cash flows from operating activities:
Income before income tax	$ 1,013,370	714,333
Adjustments:
Adjustments to reconcile profit or loss:
Depreciation	40,451	40,278
Amortization	1,664	4,349
Net gain on financial assets at fair value through profit or loss	(1,661)	-
Interest expense	11,111	14,086
Interest income	(4,976)	(6,204)
Dividend income	(1,199)	(8,327)
Share of profit of subsidiaries and associates	(487,848)	(318,761)
Unrealized gross profit on sales	24,226	32,164
Total adjustments for profit or loss	(418,232)	(242,415)
Changes in operating assets and liabilities:
Changes in operating assets:
Accounts receivable	44,731	(85,168)
Accounts receivable from related parties	(225,092)	(34,977)
Other receivables	-	17,571
Other receivable from related parties	4,144	(3,085)
Inventories	(55,994)	-
Prepayments and other current assets	(7,742)	(7,842)
Other non-current assets	600	720
Total changes in operating assets	(239,353)	(112,781)
Changes in operating liabilities:
Contract liabilities	(9,514)	15,819
Notes and accounts payable	20,807	(195)
Accounts payable to related parties	(77,395)	157,786
Other payables	39,560	41,078
Other payables to related parties	1,613	(6,533)
Other current liabilities	308	(75)
Total changes in operating liabilities	(24,621)	207,880
Total changes in operating assets and liabilities	(263,974)	95,099
Total adjustments	(682,206)	(147,316)
Cash provided by operations	331,164	567,017
Interest received	5,202	6,235
Interest paid	(11,128)	(14,219)
Income taxes paid	(99,112)	(75,845)
Net cash provided by operating activities	226,126	483,188
		(Continued)

See accompanying notes to the parent-company-only financial statements.

7-1

(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)

VISCO VISION INC.

Parent-Company-Only Statements of Cash Flows (Continued)

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollar)

	2025	2024
Cash flows from investing activities:
Purchase of financial assets at fair value through other comprehensive income	-	(175,841)
Proceeds from disposal of financial assets measured at amortized cost	-	200,000
Purchase of financial assets at fair value through profit or loss	(77,112)	-
Proceeds from disposal of financial assets at fair value through profit or loss	40,583	-
Additions to investments accounted for using equity method	(119,041)	-
Additions to property, plant and equipment (including prepayments for equipment)	(17,992)	(28,554)
Increase in refundable deposits	-	(229)
Additions to intangible assets	(1,774)	(1,052)
Dividends received	14,526	8,327
Net cash provided by (used in) investing activities	(160,810)	2,651
Cash flows from financing activities:
Repayments of long-term debt	(249,064)	(219,243)
Increase in long-term debt	190,000	85,000
Payment of lease liabilities	(8,336)	(8,904)
Cash dividends distributed to shareholders	(321,300)	(151,200)
Net cash used in financing activities	(388,700)	(294,347)
Net increase (decrease) in cash and cash equivalents	(323,384)	191,492
Cash and cash equivalents at beginning of year	442,990	251,498
Cash and cash equivalents at end of year	$ 119,606	442,990

See accompanying notes to the parent-company-only financial statements.

(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollar, Unless Otherwise Specified)

Organization and business

Visco Vision Inc. (the “Company”) was incorporated on November 9, 1998, as a company limited by shares under the laws of the Republic of China (“R.O.C.”) and registered under the Ministry of Economic Affairs, R.O.C. The address of the Company’s registered office is No. 1, Xingye St., Guishan Dist., Taoyuan City, Taiwan. The Company is mainly engaged in the manufacture and sale of disposable contact lenses.

Authorization of the parent-company-only financial statements

These parent-company-only financial statements were authorized for issuance by the Board of Directors on February 25, 2026.

Application of new and revised accounting standards and interpretations

(a) The impact of the International Financial Reporting Standards (“IFRS Accounting Standards”) endorsed by the Financial Supervisory Commission, R.O.C. (“FSC”) which have already been adopted

The Company has initially adopted the following new amendments, which do not have a significant impact on its parent-company-only financial statements, from January 1, 2025:

Amendments to IAS 21 “Lack of Exchangeability”

(b) The impact of IFRS Accounting Standards endorsed by the FSC but not yet effective

The Company assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2026, would not have a significant impact on its parent-company-only financial statements:

IFRS 17 “Insurance Contracts” and amendments to IFRS 17 “Insurance Contracts”
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments”
Annual Improvements to IFRS Accounting Standards – Volume 11
Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

(c) The impact of IFRS Accounting Standards issued by the International Accounting Standards Board (“IASB”) but not yet endorsed by the FSC

The following new and amended standards, which may be relevant to the Company, have been issued by the IASB, but have yet to be endorsed by the FSC:

Standards or interpretations	Content of amendment	Effective date per IASB
IFRS 18
“Presentation and Disclosure in Financial Statements”	The new standard introduces three categories of income and expenses, two income statement subtotals and one single note on management performance measures. The three amendments, combined with enhanced guidance on how to disaggregate information, set the stage for better and more consistent information for users, and will affect all the entities.

• A more structured income statement: under current standards, companies use different formats to present their results, making it difficult for investors to compare financial performance across companies. The new standard promotes a more structured income statement, introducing a newly defined “operating profit” subtotal and a requirement for all income and expenses to be allocated between three new distinct categories based on a company’s main business activities.

• Management performance measures (MPMs): the new standard introduces a definition for management performance measures, and requires companies to explain in a single note to the financial statements why the measure provides useful information, how it is calculated and reconcile it to an amount determined under IFRS Accounting Standards.

• Greater disaggregation of information: the new standard includes enhanced guidance on how companies group information in the financial statements. This includes guidance on whether information is included in the primary financial statements or is further disaggregated in the notes. | January 1, 2027

Note: On September 25, 2025, the FSC issued a press release announcing that Taiwan will adopt IFRS 18 beginning in 2028. Companies could elect to early adopt IFRS 18, when necessary, after the endorsement by the FSC. |

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

The Company is evaluating the impact on its parent-company-only financial position and parent-company-only financial performance upon the initial adoption of the abovementioned standards or interpretations. The results thereof will be disclosed when the Company completes its evaluation.

The Company does not expect the following other new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its parent-company-only financial statements:

Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”
IFRS 19 “Subsidiaries without Public Accountability: Disclosures” and amendments to IFRS 19 “Subsidiaries without Public Accountability: Disclosures”
Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency”

4. Summary of material accounting policies

The material accounting policies presented in the parent-company-only financial statements are summarized as follows, and have been applied consistently to all periods presented in these financial statements.

(a) Statement of compliance

The Company’s accompanying parent-company-only financial statements have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” (the “Regulations”).

(b) Basis of preparation

(i) Basis of measurement

The accompanying parent-company-only financial statements have been prepared on a historical cost basis except for the following items in the balance sheets:

1) Financial instruments measured at fair value through profit or loss; and
2) Financial assets measured at fair value through other comprehensive income.

(ii) Functional and presentation currency

The functional currency of the Company is determined based on the primary economic environment in which the entity operates. The Company’s parent-company-only financial statements are presented in New Taiwan Dollar (NTD), which is the Company’s functional currency. Except when otherwise indicated, all financial information presented in New Taiwan Dollar has been rounded to the nearest thousand.

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

(i) Foreign currency transactions

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. At the end of each reporting period (“the reporting date”), monetary items denominated in foreign currencies are translated into the functional currencies using the exchange rate at that date. Non-monetary items denominated in foreign currencies that are measured at fair value are translated into functional currencies using the exchange rate at the date that the fair value was determined. Non-monetary items denominated in foreign currencies that are measured at historical cost are translated using the exchange rate at the date of the transaction.

Exchange differences are generally recognized in profit or loss, except for an investment in equity securities designated as at fair value through other comprehensive income, which are recognized in other comprehensive income.

(ii) Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising from acquisition, are translated into the presentation currency of the Company’s parent-company-only financial statements at the exchange rates at the reporting date. The income and expenses of foreign operations are translated into the presentation currency of the Company’s parent-company-only financial statements at the average exchange rates for the period. All resulting exchange differences are recognized in other comprehensive income.

When a foreign operation is disposed of such that control, joint control, or significant influence is lost, the accumulated exchange differences related to that foreign operation are reclassified to profit or loss. In the case of a partial disposal that does not result in the Company losing control over a subsidiary, the proportionate share of accumulated exchange differences is reclassified to non-controlling interests. For a partial disposal of the Company’s ownership interest in an associate or joint venture, the proportionate share of the accumulated exchange differences in equity is reclassified to profit or loss.

When the settlement of a monetary receivable from or payable to a foreign operation is neither planned nor likely to occur in the foreseeable future, the monetary item is, in substance, a part of net investment in that foreign operation, and the related foreign exchange gains and losses thereon are recognized as other comprehensive income.

(d) Classification of current and non-current assets and liabilities

The Company classifies the asset as current under one of the following criteria, and all other assets are classified as non-current.

(i) It is expected to be realized, or intended to be sold or consumed, in the normal operating cycle;

(ii) It is held primarily for the purpose of trading;

(iii) It is expected to be realized within twelve months after the reporting period; or

(iv) The asset is cash or a cash equivalent (as defined in IAS 7) unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

The Company classifies the liability as current under one of the following criteria, and all other liabilities are classified as non-current.

(i) It is expected to be settled in the normal operating cycle;

(ii) It is held primarily for the purpose of trading;

(iii) It is due to be settled within twelve months after the reporting period; or

(iv) The Company does not have the right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period.

(e) Cash and cash equivalents

Cash consists of cash on hand, checking deposits, and demand deposits. Cash equivalents consist of short-term and highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Time deposits that meet the aforesaid criteria and are not held for investing purposes are also classified as cash equivalents.

(f) Financial instruments

Accounts receivable and debt securities issued are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the Company becomes a party to the contractual provisions of the instrument. A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to its acquisition or issuance. Accounts receivable without a significant financing component are initially measured at the transaction price.

(i) Financial assets

The Company’s financial assets are classified as measured at amortized cost, fair value through other comprehensive income (FVOCI) and fair value through profit or loss (FVTPL) on initial recognition. All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

1) Financial assets measured at amortized cost

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

it is held within a business model whose objective is to hold financial assets to collect contractual cash flows; and
its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

Subsequent to initial recognition, these assets are measured at amortized cost, using the effective interest method less impairment loss. Interest income, foreign exchange gains and losses, and recognition (reversal) of impairment loss are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

2) Financial assets measured at fair value through other comprehensive income (FVOCI)

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:

it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and
its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment’s fair value in other comprehensive income. This election is made on an instrument-by-instrument basis.

Financial assets measured at FVOCI are initially recognized at fair value, plus any directly attributable transaction costs and subsequently measured at fair value. Foreign exchange gains and losses deriving from debt investments, interest income calculated using the effective interest method, impairment loss and dividends deriving from equity investments (unless the dividend clearly represents a recovery of part of the cost of the investment) are recognized as income in profit or loss. Other net gains and losses of financial assets measured at FVOCI are recognized in other comprehensive income and accumulated in other equity as unrealized gains (losses) from financial assets measured at fair value through other comprehensive income. On derecognition, gains and losses accumulated in other equity of debt investments are reclassified to profit or loss. On derecognition, gains and losses accumulated in other equity of equity investments are reclassified to retain earnings and are never reclassified to profit or loss.

Dividend income derived from equity investments is recognized on the date that the Company’s right to receive the dividends is established (usually the ex-dividend date).

3) Financial assets measured at fair value through profit or loss

All financial assets not classified as measured at amortized cost or at FVOCI described as above (e.g. financial assets held for trading and those that are managed and evaluated for performance on a fair value basis) are measured at FVTPL, including derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset, which meets the requirements to be measured at amortized cost or at FVOCI, as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

These assets are subsequently measured at fair value. Net gains and losses, including any dividend and interest income, are recognized in profit or loss

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

4) Assessment of whether contractual cash flows are solely payments of principal and interest

For the purposes of this assessment, “principal” is defined as the fair value of the financial assets on initial recognition. “Interest” is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs, as well as a profit margin.

In assessing whether the contractual cash flows are solely payments of principal and interest, the Company considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making this assessment, the Company considers:

contingent events that would change the amount or timing of cash flows;
terms that may adjust the contractual coupon rate, including variable rate features;
prepayment and extension features; and
terms that limit the Company’s claim to cash flows from specified assets (e.g. non-recourse features)

5) Impairment of financial assets

The Company recognizes loss allowances for expected credit losses (“ECL”) on financial assets measured at amortized cost (including cash and cash equivalents, financial assets at amortized cost, accounts receivable, other receivables and refundable deposits).

The Company measures loss allowances at an amount equal to lifetime (ECL), except for the following financial assets which are measured as 12-month ECL:

bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This information includes both quantitative and qualitative information and analysis based on the Company’s historical experience and credit assessment, as well as forward-looking information.

The Company measures loss allowances for accounts receivable at an amount equal to lifetime ECL.

Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument. 12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

The maximum period considered when estimating ECLs is the maximum contractual period over which the Company is exposed to credit risk.

ECLs are probability-weighted estimate of credit losses over the expected life of financial assets. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the Company in accordance with the contract and the cash flows that the Company expects to receive). ECLs are discounted at the effective interest rate of the financial asset.

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets. The recognition or reversal of the loss allowance is recognized in profit or loss.

The gross carrying amount of a financial asset is written off when the Company has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. The Company individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Company expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Company’s procedures for recovery of amounts due. Based on its experience, it is unable to collect overdue receivables from corporate customers after overdue more than 120 days.

6) Derecognition of financial assets

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

The Company enters into transactions whereby it transfers assets recognized in its balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets; in these cases, the transferred assets are not derecognized.

(ii) Financial liabilities

1) Classification of debt or equity

Debt and equity instruments issued by the Company are classified as financial liabilities or equity in accordance with the substance of the contractual agreements and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Equity instruments are recognized at the amount of consideration received, less, the direct issuing cost.

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

2) Financial liabilities

Financial liabilities are classified as measured at amortized cost.

Financial liabilities measured at amortized cost are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss.

3) Derecognition of financial liabilities

The Company derecognizes a financial liability when its contractual obligation has been fulfilled or cancelled, or has expired. The Company also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value.

The difference between the carrying amount of a financial liability derecognized and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

(iii) Offsetting of financial assets and liabilities

Financial assets and liabilities are presented on a net basis only when the Company has the legally enforceable right to offset and intends to settle such financial assets and liabilities on a net basis or to realize the assets and settle the liabilities simultaneously.

(g) Inventories

Inventories are measured at the lower of cost and net realizable value. The cost of inventories is calculated based on the weighted-average method and includes all necessary expenditure incurred in bringing them to the location and condition ready for sale. Net realized value represents the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.

(h) Investment in associates

Associates are those entities in which the Company has significant influence, but not control or joint control, over their financial and operating policies.

Investments in associates are accounted for using the equity method and are recognized initially at cost. The cost of the investment includes transaction costs. The carrying amount of the investment in associates includes goodwill arising from the acquisition less any accumulated impairment losses.

The parent-company-only financial statements include the Company’s share of the profit or loss and other comprehensive income of those associates, after adjustments to align their accounting policies with those of the Company, from the date on which significant influence commences until the date on which significant influence ceases. The Company recognizes any changes of its proportionate share in the investee within capital surplus, when an associate’s equity changes due to reasons other than profit and loss or comprehensive income, which did not result in changes in actual proportionate share.

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

Gains and losses resulting from transactions between the Company and an associate are recognized only to the extent of unrelated Company’s interests in the associate. When the Company’s share of losses of an associate equals or exceeds its interests in an associate, it discontinues recognizing its share of further losses. After the recognized interest is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the associate.

(i) Investments in subsidiaries

When preparing the parent-company-only financial statements, investments in subsidiaries which are controlled by the Company is accounted for using the equity method. Under equity method, profit or loss, and other comprehensive income recognized in parent-company-only financial statement is in line with total comprehensive income attributable to the shareholders of the Company in the consolidated financial statements. In addition, the equity recognized in the parent-company-only financial statements is in line with the equity attributable to shareholders of the Company in the consolidated financial statements.

Changes in a parent’s ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions.

Gains or losses from transactions between the Company and its subsidiaries that have not yet been realized are deferred. Gains or losses on transactions resulting from depreciable or amortizable assets are recognized annually over their useful lives; and those resulting from other types of assets are recognized in the year in which they are realized.

(j) Property, plant and equipment

(i) Recognition and measurement

Property, plant and equipment are measured at cost, which includes capitalized borrowing costs, less accumulated depreciation and any accumulated impairment losses.

If significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment is recognized in profit or loss.

(ii) Subsequent costs

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.

(iii) Depreciation

Depreciation is calculated on the cost of assets less their residual values and is recognized in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment. The estimated useful lives of property, plant and equipment for current and comparative periods are as follows: leasehold improvements: 1 to 10 years; machinery and equipment: 2 to 6 years; other equipment: 3.5 to 6 years.

Depreciation methods, useful lives, and residual values are reviewed at each reporting date, with the effect of any changes in estimate accounted for on a prospective basis.

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

(k) Leases

At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

(i) As a lessee

The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. In addition, the right-of-use asset is periodically evaluated and reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be reliably determined, the Company's incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprise the following:

fixed payments, including in-substance fixed payments;
variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;

The lease liability is subsequently measured at amortized cost using the effective interest method. It is remeasured when:

there is a change in future lease payments arising from the change in an index or rate; or
there is a change in the lease term resulting from a change of the Company's assessment on whether it will exercise an extension or termination option; or
there is any lease modification in lease subject, scope of the lease or other terms.

When the lease liability is remeasured, other than lease modifications, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or in profit and loss if the carrying amount of the right-of-use asset has been reduced to zero.

When the lease liability is remeasured to reflect the partial or full termination of the lease for lease modifications that decrease the scope of the lease, the Company accounts for the remeasurement of the lease liability by decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognize the difference in profit or loss for any gain or loss relating to the partial or full termination of the lease.

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

The Company presents right-of-use assets that do not meet the definition of investment properties, and lease liabilities as a separate line item respectively in the parent-company-only balance sheets.

The Company has elected not to recognize right-of-use assets and lease liabilities for leases that have a lease term of 12 months or less and leases of low-value assets. The Company recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

(l) Intangible assets

Acquired software is carried at cost, less accumulated amortization and accumulated impairment losses. Amortization is recognized in profit or loss using the straight-line method over the estimated useful lives of 2 to 3 years.

The residual value, amortization period, and amortization method are reviewed at least at each reporting date and adjusted when necessary.

(m) Impairment of non-financial assets

The Company assesses at the end of each reporting date whether there is any indication that the carrying amounts of non-financial assets (other than inventories and deferred tax assets) may be impaired. If any such indication exists, then the asset’s recoverable amount is estimated. Goodwill is tested annually or when there are indications of impairment.

For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or groups of assets. Goodwill arising from a business combination is allocated to cash-generating units (“CGUs”) or groups of CGUs that are expected to benefit from the synergies of the combination.

The recoverable amount of an individual asset or CGU is the higher of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount. Impairment losses are recognized in profit or loss. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis.

An impairment loss in respect of goodwill is not reversed. For other non-financial assets, an impairment loss is reversed only to the extent that the asset’s carrying amount that would have been determined (net of depreciation or amortization) had no impairment loss been recognized for the assets in prior years.

(n) Provisions

Provisions for warranties are recognized when the Company has a present obligation as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation and when the underlying products are sold.

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

(o) Revenue from contracts with customers

Revenue is measured based on the consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control of a good or a service to a customer.

(i) Sale of goods

The Company recognizes revenue when control of the goods has been transferred to the customer, being when the goods are delivered to the customer, and there is no unfulfilled obligation that could affect the customer’s acceptance of the goods. Delivery occurs when the customer has accepted the goods in accordance with the terms of sales, the risks of obsolescence and loss have been transferred to the customer, and the Company has objective evidence that all criteria for acceptance have been satisfied.

Sales discount and rebates are recognized and estimated based on historical experience and each contractual term. Revenue is only recognized to the extent that it is highly probable that a significant reversal will not occur. A refund liability is recognized for expected sales discounts and rebate payables to customers in relation to sales made until the end of the reporting period.

The Company provides warranty to customers to assure the replacement of goods when there are defects incurred with the goods that conforms to the agree-upon specification and recognizes warranty provision accordingly.

A receivable is recognized when the goods are delivered, as this is the point in time that the Company has a right to an amount of consideration that is unconditional.

(ii) Rendering of services

The Company’s revenue from provision of research and development of new products is recognized in the period in which the services are rendered.

(iii) Financing components

The Company does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and the payment made by the customer exceeds one year. As a consequence, the Company does not adjust any of the transaction prices for the time value of money.

(p) Employee benefits

(i) Defined contribution plans

Obligations for contributions to defined contribution pension plans are expensed during the year in which employees render services.

(ii) Short-term employee benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed during the period in which employees render services. A liability is recognized for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Company has a present legal or constructive obligation to make such payments as a result of past service provided by the employees, and the obligation can be estimated reliably.

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

(q) Income taxes

Income taxes comprise current taxes and deferred taxes. Current and deferred taxes are recognized in profit or loss unless they relate to business combinations or items recognized directly in equity or other comprehensive income.

Current taxes comprise the expected tax payables or receivables on the taxable profits (losses) for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payables or receivables are the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date.

Deferred taxes arise due to temporary differences between the carrying amounts of assets and liabilities at the reporting date and their respective tax bases. Deferred taxes are recognized except for the following:

(i) Temporary differences on the initial recognition of assets and liabilities in a transaction that is not a business combination and at the time of the transaction 1) affects neither accounting nor taxable profits (losses) and 2) does not give rise to equal taxable and deductible temporary differences;

(ii) Temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Company is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and

(iii) Taxable temporary differences arising on the initial recognition of goodwill.

Deferred tax assets are recognized for unused tax losses, tax credits, and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer probable that the related tax benefit will be realized; such reductions are reversed when the probability of future taxable profits improves.

Deferred taxes are measured at tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date, and reflect uncertainty related to income taxes, if any.

Deferred tax assets and liabilities are offset if the following criteria are met:

(i) the Company has a legally enforceable right to set off current tax assets against current tax liabilities; and

(ii) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either:

1) the same taxable entity; or

2) different taxable entities which intend to settle current tax assets and liabilities on a net basis, or to realize the assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

(r) Earnings per share (“EPS”)

The basic and diluted EPS attributable to stockholders of the Company are disclosed in the parent-company-only financial statements. Basic EPS is calculated by dividing net income attributable to stockholders of the Company by the weighted-average number of common shares outstanding during the year. In calculating diluted EPS, the net income attributable to stockholders of the Company and weighted-average number of common shares outstanding during the year are adjusted for the effects of dilutive potential common shares. The Company’s dilutive potential common shares are profit sharing for employees to be settled in the form of common stock.

(s) Operating segments

The Company discloses the operating segment information in the consolidated financial statements. Therefore, the Company does not disclose the operating segment information in the parent-company-only financial statements.

5. Critical accounting judgments and key sources of estimation and assumption uncertainty

The preparation of the parent-company-only financial statements requires management to make judgments and estimates about the future, including climate-related risks and opportunities, which affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates and will be continually evaluated and adjusted based on historical experience and other factors.

Estimates and underlying assumptions are reviewed on an ongoing basis and are consistent with the Company’s risk management and climate-related commitments where appropriate. Revisions to estimates are recognized prospectively in the period of the change and future periods.

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year is included as follows:

Impairment of goodwill from investments in subsidiaries

The carrying amount of investments in subsidiaries includes goodwill identified on acquisition. The assessment of impairment of goodwill requires the Company to make subjective judgments to identify cash-generating units, allocate the goodwill to relevant cash-generating units, and estimate the recoverable amount of relevant cash-generating units. Any changes in these estimates in response to changed economic conditions or business strategies could result in significant adjustments to the test results in future years. Please refer to note 6(g) for further description of the impairment of goodwill from investments in subsidiaries.

6. Significant account disclosures

(a) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash on hand	$ 16	16
Demand deposits and checking accounts	119,590	80,842
Time deposits with original maturities less than three months	-	362,132
	$ 119,606	442,990

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

(b) Financial assets at fair value through profit or loss

	December 31, 2025	December 31, 2024
Financial assets at fair value through profit or loss – current:
Listed stocks	$ 38,190	-

Please refer to note 6(s) for the gains (losses) recognized related to financial assets measured at fair value.

The Company’s investments in Crystalvue Medical Corp. (“Crystalvue”) were originally recognized as financial assets at fair value through other comprehensive income. In consideration of operations strategy, the Company increased its ownership interest in Crystalvue to 20.01% in 2024, thereby gaining significant influence over Crystalvue. Consequently, the Company reclassified its investments in Crystalvue amounting to $449,888 to investments accounted for using equity method. The related other equity—unrealized gains from financial assets measured at fair value through other comprehensive income amounting to $38,556 were reclassified to retained earnings.

(d) Accounts receivable

	December 31, 2025	December 31, 2024
Accounts receivable	$ 188,650	233,381
Accounts receivable from related parties	566,892	341,800
	755,542	575,181
Less: loss allowance	-	-
	$ 755,542	575,181

The Company applies the simplified approach to provide for its expected credit losses, i.e., the use of lifetime expected loss provision for all receivables (including receivables from related parties). Forward-looking information is taken into consideration as well. No loss allowance was provided for accounts receivable (including receivables from related parties) after management’s assessment. As of December 31, 2025 and 2024, aging analysis on accounts receivable (including receivables from related parties) was as follows:

	December 31, 2025	December 31, 2024
Current	$ 672,561	454,998
Past due 1-30 days	80,913	81,001
Past due 31-60 days	2,068	39,116
Past due 61-90 days	-	66
	$ 755,542	575,181

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

(e) Inventories

	December 31, 2025	December 31, 2024
Raw materials	$ 33,916	-
Work in progress	1,614	-
Finished goods	20,464	-
	$ 55,994	-

The amounts of inventories recognized as cost of sales were as follows:

	2025	2024
Cost of inventories sold	$ 2,881,219	2,549,036

(f) Investments accounted for using the equity method

A summary of the Company’s investments accounted for using the equity method at the reporting date is as follows:

	December 31, 2025	December 31, 2024
Subsidiaries	$ 3,946,131	3,343,806
Associates	577,994	451,501
	$ 4,524,125	3,795,307

(i) Subsidiaries

For related information of subsidiaries, please refer to consolidated financial statements for the year ended December 31, 2025.

(ii) Impairment test on goodwill

Goodwill is measured as the excess of consideration transferred over the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed. Impairment of goodwill (if any) is recognized as a deduction from the carrying amount of investments accounted for using the equity method. As of December 31, 2025 and 2024, the carrying amount of goodwill arising from business combination and the respective CGU to which the goodwill was allocated for impairment test purpose was as follows:

	December 31, 2025	December 31, 2024
From-eyes Co., Ltd. (“From-eyes”)	$ 59,431	62,155
Other CGUs without significant goodwill — Trend Young Vision Care Inc. (“VCT”)	-	5,108
	$ 59,431	67,263

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

Each CGU to which the goodwill is allocated represents the lowest level within the group, at which the goodwill is monitored for internal management purpose. Based on the results of impairment tests conducted by the Company, the recoverable amount of CGU of From-eyes exceeded its carrying amount at December 31, 2025 and 2024; as a result, no impairment loss was recognized. At December 31, 2025, the carrying amount of CGU of VCT exceeded its recoverable amount, resulting in an impairment loss of $5,108. For the year ended December 31, 2024, no impairment loss was recognized for the CGU of VCT. The recoverable amount of a CGU was determined based on the value in use.

The related key assumptions were as follows:

	December 31, 2025	December 31, 2024
From-eyes:
Revenue growth rate	5%~17.72%	5%~18.82%
Discount rate	22.6%	23.53%
VCT:
Revenue growth rate	26.88%~105.92%	(35.91)%~112.1%
Discount rate	18.15%	16.33%

1) The cash flow projections were based on future financial budgets, covering a period of 5 years and were approved by management. Cash flows beyond 5-year period have been extrapolated using 0% to 1% growth rate.
2) The estimation of discount rate is based on the weighted average cost of capital.

(iii) Associates

Associates that were material to the Company were as follows:

Name of associates	Main business and relationship	Principal place of business/ Registration country	December 31, 2025		December 31, 2024
			Percentage of ownership	Carrying amount	Percentage of ownership	Carrying amount
Crystalvue Medical Corp. (“Crystalvue”)	The Company’s strategic partner, mainly engaged in research and sale of medical equipment	Taiwan	25.66 %	$ 577,994	20.01 %	$ 451,501

The Company's investments in Crystalvue were originally recognized as financial assets at fair value through other comprehensive income. The Company increased its ownership interest in Crystalvue to 20.01% in November 2024, thereby gaining significant influence over Crystalvue. Consequently, in the fourth quarter of 2024, the Company reclassified its investments in Crystalvue amounting to $449,888 to investments accounted for using equity method. The related other equity—unrealized gains from financial assets measured at fair value through other comprehensive income amounting to $38,556 were reclassified to retained earnings.

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

The fair value of the investment in associates which are publicly traded was as follows:

	December 31, 2025	December 31, 2024
Crystalvue	$ 494,878	432,566

The summarized financial information of the Company’s material associate is set out below:

1) The summarized financial information of Crystalvue

	December 31, 2025	December 31, 2024
Current assets	$ 640,924	699,861
Non-current assets	1,549,458	1,300,566
Current liabilities	(261,136)	(233,215)
Non-current liabilities	(5,654)	(13,174)
Net assets	$ 1,923,592	1,754,038
	2025	2024
---	---	---
Net sales	$ 949,049	868,033
Net income	$ 90,656	127,152
Other comprehensive income	-	-
Total comprehensive income	$ 90,656	127,152
	2025	2024
---	---	---
The carrying amount of investments in the associates at January 1	$ 451,501	-
Increase in investments	119,041	449,888
Total comprehensive income attributable to the Company	20,779	1,613
Dividends received from associates	(13,327)	-
The carrying amount of investments in the associates at December 31	$ 577,994	451,501

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

(g) Property, plant and equipment

	Machinery	Leasehold improvements	Other equipment	Equipment to be inspected	Total
Cost:
Balance at January 1, 2025	$ 182,192	32,671	16,373	509	231,745
Additions	8,972	1,357	-	2,760	13,089
Disposals	(618)	-	(60)	-	(678)
Reclassification	789	-	-	(509)	280
Balance at December 31, 2025	$ 191,335	34,028	16,313	2,760	244,436
Balance at January 1, 2024	$ 166,176	32,032	9,686	580	208,474
Additions	15,384	639	6,687	509	23,219
Disposals	(1,178)	-	-	-	(1,178)
Reclassification	1,810	-	-	(580)	1,230
Balance at December 31, 2024	$ 182,192	32,671	16,373	509	231,745
Accumulated depreciation:
Balance at January 1, 2025	$ 102,661	19,635	6,541	-	128,837
Depreciation	25,064	4,226	2,791	-	32,081
Disposals	(618)	-	(60)	-	(678)
Balance at December 31, 2025	$ 127,107	23,861	9,272	-	160,240
Balance at January 1, 2024	$ 79,679	14,264	4,588	-	98,531
Depreciation	24,160	5,371	1,953	-	31,484
Disposals	(1,178)	-	-	-	(1,178)
Balance at December 31, 2024	$ 102,661	19,635	6,541	-	128,837
Carrying amounts:
Balance at December 31, 2025	$ 64,228	10,167	7,041	2,760	84,196
Balance at December 31, 2024	$ 79,531	13,036	9,832	509	102,908

(h) Right-of-use assets

	Buildings	Transportation equipment	Total
Cost:
Balance at January 1, 2025	$ 42,816	-	42,816
Additions	17,790	-	17,790
Disposals	(16,779)	-	(16,779)
Balance at December 31, 2025	$ 43,827	-	43,827
Balance at January 1, 2024	$ 42,816	1,201	44,017
Disposals	-	(1,201)	(1,201)
Balance at December 31, 2024	$ 42,816	-	42,816

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

	Buildings	Transportation equipment	Total
Accumulated depreciation:
Balance at January 1, 2025	$ 29,025	-	29,025
Depreciation	8,370	-	8,370
Disposals	(16,779)	-	(16,779)
Balance at December 31, 2025	$ 20,616	-	20,616
Balance at January 1, 2024	$ 20,731	701	21,432
Depreciation	8,294	500	8,794
Disposals	-	(1,201)	(1,201)
Balance at December 31, 2024	$ 29,025	-	29,025
Carrying amounts:
Balance at December 31, 2025	$ 23,211	-	23,211
Balance at December 31, 2024	$ 13,791	-	13,791

(i) Intangible assets

The movements of cost and accumulated amortization of intangible assets were as follows:

	Acquired software
Cost:
Balance at January 1, 2025	$ 34,824
Additions	1,774
Balance at December 31, 2025	$ 36,598
Balance at January 1, 2024	$ 33,772
Additions	1,052
Balance at December 31, 2024	$ 34,824
Accumulated amortization:
Balance at January 1, 2025	$ 32,607
Amortization	1,664
Balance at December 31, 2025	$ 34,271
Balance at January 1, 2024	$ 28,258
Amortization	4,349
Balance at December 31, 2024	$ 32,607
Carrying amounts:
Balance at December 31, 2025	$ 2,327
Balance at December 31, 2024	$ 2,217

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

(j) Short-term borrowings

As of December 31, 2025 and 2024, the unused credit facilities of short-term borrowings were $420,000 and $330,000, respectively.

(k) Lease liabilities

The carrying amounts of lease liabilities were as follows:

	December 31, 2025	December 31, 2024
Current	$ 7,487	6,272
Non-current	$ 16,347	8,108

For the maturity analysis, please refer to note 6(u) for the financial risk management.

The amounts recognized in profit or loss were as follows:

	2025	2025
Interest expense on lease liabilities	$ 409	281
Expenses relating to short-term leases	$ 246	137

The amounts recognized in the statement of cash flows were as follows:

	2025	2024
Total cash outflow for leases	$ 9,013	9,322

(i) Real estate leases

The Company leases buildings for its office premises and the leases typically run for 5 to 10 years.

(ii) Other leases

The Company has elected to apply exemption and not to recognize right-of-use assets and lease liabilities for the short-term leases.

(l) Long-term debt

	December 31, 2025
	Interest rate	Maturity year	Amount
Unsecured bank loans	1.98%~2.04%	2027~2028	$ 457,059
Less: current portion of long-term debt			(149,065)
			$ 307,994
Unused credit facilities			$ 570,000

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

	December 31, 2024
	Interest rate	Maturity year	Amount
Unsecured bank loans	1.98%~2.16%	2025~2028	$ 516,123
Less: current portion of long-term debt			(249,065)
			$ 267,058
Unused credit facilities			$ 700,000

(m) Employee benefits

The Company contributes monthly an amount equal to 6% of each employee’s monthly wages to the employee’s individual pension fund account at the Bureau of Labor Insurance in accordance with the provisions of the Labor Pension Act. Under these defined contribution plans, the Company has no legal or constructive obligation to pay any additional amounts after contributing a fixed amount. For the years ended December 31, 2025 and 2024, the Company recognized pension expenses of $6,557 and $5,757, respectively, in relation to the defined contribution plans.

(n) Income taxes

(i) The components of income tax expense were as follows:

	2025	2024
Current income tax expense
Current period	$ 131,183	89,582
Adjustment for prior years	(579)	(1,621)
	130,604	87,961
Deferred income tax expense
Origination of temporary differences	(4,305)	(10,099)
Income tax expense	$ 126,299	77,862

In 2025 and 2024, there was no income tax recognized directly in equity or other comprehensive income.

Reconciliation of income tax expense and income before income tax for 2025 and 2024 was as follows:

	2025	2024
Income before income tax	$ 1,013,370	714,333
Income tax using the Company’s statutory tax rate	$ 202,674	142,867
Non-deductible expense	802	780
Tax-exempt income	(4,728)	(1,988)
Changes in unrecognized temporary differences	(95,305)	(63,788)
Surtax on undistributed earnings	23,435	1,612
Adjustments for prior-year income tax	(579)	(1,621)
	$ 126,299	77,862

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

(ii) Deferred income tax assets and liabilities

1) Unrecognized deferred income tax assets and liabilities

Unrecognized deferred income tax assets were as follows:

	December 31, 2025	December 31, 2024
Losses associated with investments in subsidiaries	$ 4,133	2,997

Unrecognized deferred income tax liabilities were as follows:

	December 31, 2025	December 31, 2024
Net profits associated with investments in subsidiaries	$ 303,630	207,189

The Company is able to control the timing of reversal of the temporary differences associated with investments in subsidiaries. As management believed that it is probable that the temporary differences will not reverse in the foreseeable future, such temporary differences were not recognized as deferred income tax liabilities.

2) Recognized deferred income tax assets and liabilities

Changes in the amount of deferred income tax assets and liabilities were as follows:

Deferred income tax assets:

	Unrealized gross profit	Unrealized foreign currency exchange losses	Others	Total
Balance at January 1, 2025	$ 11,391	1,870	473	13,734
Recognized in profit or loss	6,737	(1,870)	91	4,958
Balance at December 31, 2025	$ 18,128	-	564	18,692
Balance at January 1, 2024	$ 4,958	-	-	4,958
Recognized in profit or loss	6,433	1,870	473	8,776
Balance at December 31, 2024	$ 11,391	1,870	473	13,734

Deferred income tax liabilities:

	Unrealized foreign currency exchange gains
Balance at January 1, 2025	$ -
Recognized in profit or loss	653
Balance at December 31, 2025	$ 653
Balance at January 1, 2024	$ 1,323
Recognized in profit or loss	(1,323)
Balance at December 31, 2024	$ -
	(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

(iii) The Company’s income tax return for the years through 2023 have been examined and approved by the R.O.C. income tax authorities.

(o) Capital and other equity

(i) Common stock

As of December 31, 2025 and 2024, the Company’s authorized common stock consisted of 90,000 thousand shares, of which 63,000 thousand shares were issued and outstanding. The par value of the Company’s common stock is NTD 10 per share. All issued shares were paid up upon issuance.

(ii) Capital surplus

	December 31, 2025	December 31, 2024
Paid-in capital in excess of par value of common shares	$ 1,431,007	1,431,007

Pursuant to the Company Act, any realized capital surplus is initially used to cover an accumulated deficit, and the balance, if any, could be transferred to common stock as stock dividends or distributed as cash dividends based on the original shareholding ratio. Realized capital surplus includes the premium derived from the issuance of shares of stock in excess of par value and donations received by the Company. In accordance with the Regulations Governing the Offering and Issuance of Securities by Securities Issuers, distribution of stock dividends from capital surplus in any one year shall not exceed 10% of paid-in capital.

(iii) Retained earnings

The Company’s Articles of Incorporation stipulate that at least 10% of annual net income, after deducting accumulated deficit, if any, must be retained as legal reserve, except when the legal reserve has reached the Company’s total paid-in capital. In addition, a special reserve shall be set aside in accordance with applicable laws and regulations when necessary. The remaining balance, together with the unappropriated earnings from the previous years can be distributed as dividends to stockholders, pursuant to the appropriation of earnings proposed by the Board of Directors and approved by the stockholders.

Furthermore, the Company’s Articles of Incorporation also stipulate that the earning distribution is made on a semi-annually basis after the close of each half year. The earning distribution proposal together with business report and financial statements are reviewed by audit committee and approved by the Board of Directors and then reported to shareholders in their meeting.

Distribution of earnings by way of cash dividends is made as the preceding paragraph and distribution of earnings by issuing new shares is made in accordance with Article 240 of the Company Act.

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

The Company may distribute its legal reserve or capital surplus to shareholders by issuing new shares or by distributing cash according to Article 241, Paragraph 2 of the Company Act. The abovementioned distribution of earnings by way of cash dividends could be approved by the Board of Directors and then reported to the shareholders in their meeting.

As the Company is a technology-intensive enterprise with growing phase, the Company has adopted a remaining earnings appropriation method as its dividend policy in order to meet long-term capital needs and cash requirements of stockholders, and thereby maintain continuous development and steady growth. If the current year's earnings are available for distribution, considering the future expansion of operation scale and cash flow requirements, the distribution ratio for cash dividends shall not be less than 10% of the total distribution and the total dividends distributed shall not be less than 10% of the unappropriated earnings.

1) Legal reserve

Pursuant to the Company Act, legal reserve may be used to offset a deficit. If the Company has no accumulated deficit, it may, pursuant to a resolution approved by the stockholders, distribute its legal reserve to shareholders by issuing new shares or by distributing cash for the portion of legal reserve which exceeds 25% of the paid-in capital.

2) Special reserve

In accordance with the rulings issued by the FSC, a special reserve equal to the total amount of items that are accounted for as deductions from stockholders' equity shall be set aside from the after-tax net profit in the period, plus items other than the after-tax net profit in the period that are included in the current-period undistributed earnings, and prior-period undistributed earnings, and prior-period undistributed earnings. A portion of the undistributed prior-period earnings shall be reclassified to special reserve (which does not qualify for earnings distribution) to account for cumulative changes to the net reduction of other shareholders' equity pertaining to prior periods. This special reserve shall revert to retained earnings and be made available for distribution when the items that are accounted for as deductions from stockholders' equity are reversed in subsequent periods.

3) Earnings distribution

The cash dividends appropriated from 2024 and 2023 earnings was approved by the Company's Board of Directors on March 12, 2025 and February 27, 2024, respectively. The resolved appropriations of the dividends were as follows:

	2024 earnings		2023 earnings
	Dividend per share (in NTD)	Amount	Dividend per share (in NTD)	Amount
Dividends per share:
Cash dividends	$ 5.10	321,300	2.40	151,200

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

On February 25, 2026, the cash dividends appropriated from 2025 earnings approved by the Company’s Board of Directors were as follows:

	2025 earnings
	Dividend per share (in NTD)	Amount
Dividends per share:
Cash dividends	$ 8.40	529,200

Related information is available on the Market Observation Post System website of the Taiwan Stock Exchange.

(iv) Other equity items (net after tax)

	Foreign currency translation differences	Unrealized gains (losses) from financial assets at fair value through other comprehensive income	Total
Balance at January 1, 2025	$ 14,099	-	14,099
Foreign exchange differences arising from translation of foreign operations	187,356	-	187,356
Share of other comprehensive loss of subsidiaries	-	(27,874)	(27,874)
Balance at December 31, 2025	$ 201,455	(27,874)	173,581
Balance at January 1, 2024	$ (224,066)	29,885	(194,181)
Foreign exchange differences arising from translation of foreign operations	238,165	-	238,165
Unrealized gains from financial assets at fair value through other comprehensive income	-	8,671	8,671
Disposal of equity instruments measured at fair value through other comprehensive income	-	(38,556)	(38,556)
Balance at December 31, 2024	$ 14,099	-	14,099

(p) Earnings per share ("EPS")

(i) Basic earnings per share

	2025	2024
Net income attributable to shareholders of the Parent	$ 887,071	636,471
Weighted-average number of common shares outstanding (in thousands)	63,000	63,000
Basic earnings per share (in New Taiwan Dollar)	$ 14.08	10.10

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

(ii) Diluted earnings per share

	2025	2024
Net income attributable to shareholders of the Parent	$ 887,071	636,471
Weighted-average number of common shares outstanding (in thousands)	63,000	63,000
Effect of dilutive potential common shares (in thousands):
Remuneration to employees in stock	433	265
Weighted-average number of common shares outstanding (including the effect of dilutive potential common shares) (in thousands)	63,433	63,265
Diluted earnings per share (in New Taiwan Dollar)	$ 13.98	10.06

(q) Revenue from contracts with customers

(i) Disaggregation of revenue

	2025	2024
Primary geographical markets:
Asia	$ 2,917,524	2,408,702
Europe	715,600	707,855
Americas	218,532	265,567
	$ 3,851,656	3,382,124
Major products and services lines:
Contact lenses	$ 3,827,278	3,381,749
Others	24,378	375
	$ 3,851,656	3,382,124

(ii) Contract balances

	December 31, 2025	December 31, 2024	January 1, 2024
Accounts receivable (including related parties)	$ 755,542	575,181	455,036
Less: loss allowance	-	-	-
	$ 755,542	575,181	455,036
Contract liabilities	$ 15,357	24,871	9,052

For details on accounts receivable and their loss allowance, please refer to note 6(d).

The contract liabilities mainly arose from the timing difference between the satisfaction of performance obligation and the receipt of customer's payment.

The amounts of revenue recognized in 2025 and 2024 that were included in the balances of contract liabilities at January 1, 2025 and 2024, were $15,948 and $1,108, respectively.

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

(r) Remuneration to employees and directors

The Company’s amended Articles of Incorporation, which was resolved during the shareholders’ meeting held on May 28, 2025, require that annual earnings shall first to be offset against any deficit, then, a range from 5% to 20% shall be allocated as employee remuneration, of which no less than 50% should be distributed to base-level employees, and a maximum of 1% be allocated as directors’ remuneration. The Company’s Articles of Incorporation before amendment require that annual earnings shall first to be offset against any deficit, then, a range from 5% to 20% shall be allocated as employee remuneration and a maximum of 1% be allocated as directors’ remuneration. Employees who are entitled to receive the abovementioned employee remuneration, in shares or cash, include the employees of the Company or subsidiaries of the Company who meet certain specific requirement.

For the years ended December 31, 2025 and 2024, the Company estimated its remuneration to employees amounting to $66,935 and $44,727, respectively, and the remuneration to directors amounting to $6,345 and $4,473, respectively. The said amounts, which were recognized in operating expenses, were calculated based on the net profits before tax of each period (excluding the remuneration to employees and directors), multiplied by proposed percentage of the remuneration to employees and directors. If the actual amounts differ from the estimated amounts, the differences shall be accounted as changes in accounting estimates and recognized as profit or loss in next year.

The above-mentioned accrued remuneration to employees and directors were the same as the amount resolved by the Board of Directors, which will be paid in cash. Related information is available on the Market Observation Post System website of the Taiwan Stock Exchange.

(s) Non-operating income and loss

(i) Interest income

	2025	2024
Interest income from bank deposits	$ 4,976	6,204

(ii) Other income

	2025	2024
Dividend income	$ 1,199	8,327
Others	1,047	331
	$ 2,246	8,658

(iii) Other gains and losses

	2025	2024
Foreign exchange gains (losses), net	$ 648	(17,403)
Gains on financial assets at fair value through profit or loss	1,661	-
	$ 2,309	(17,403)

(iv) Finance costs

	2025	2024
Interest expense:
Bank loans	$ (10,702)	(13,805)
Lease liabilities	(409)	(281)
	$ (11,111)	(14,086)
		(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

(t) Financial instruments

(i) Categories of financial instruments

1) Financial assets

	December 31, 2025	December 31, 2024
Financial assets at fair value through profit or loss –current	$ 38,190	-
Financial assets measured at amortized cost:
Cash and cash equivalents	119,606	442,990
Accounts receivable and other receivables (including related parties)	760,785	584,794
Refundable deposits	1,529	1,529
	881,920	1,029,313
Total	$ 920,110	1,029,313

2) Financial liabilities

	December 31, 2025	December 31, 2024
Financial liabilities measured at amortized cost:
Notes and accounts payable (including related parties)	$ 474,666	531,254
Other payables (including related parties)	175,288	138,235
Lease liabilities (including current and non-current)	23,834	14,380
Long-term debt (including current portion)	457,059	516,123
	$ 1,130,847	1,199,992

(ii) Fair value of financial instruments

1) Financial instruments that are not measured at fair value

The Company considers that the carrying amounts of financial assets and financial liabilities measured at amortized cost approximate their fair values.

2) Financial instruments that are measured at fair value

The fair value of financial assets at fair value through profit or loss is measured on a recurring basis. The table below analyzes financial instruments that are measured at fair value subsequent to initial recognition, grouped into Levels 1 to 3 based on the degree to which the fair value is observable. The different levels have been defined as follows:

a) Level 1: quoted prices (unadjusted) in active markets for identified assets or liabilities.

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

b) Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

c) Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

	December 31, 2025
	Carrying amount	Fair value
		Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss:
Domestic listed stocks	$ 38,190	38,190	-	-	38,190

3) Valuation techniques and assumptions used in fair value measurement

The fair value of financial instruments traded in active markets is determined with reference to quoted market prices.

For listed stocks held by the Company with standard terms and conditions and traded in active markets, the fair value is based on quoted market prices.

4) Transfer between levels of the fair value hierarchy

There were no transfers among fair value hierarchies for the years ended December 31, 2025 and 2024.

(u) Financial risk management

The Company is exposed to credit risk, liquidity risk, and market risk (including currency risk, interest rate risk and other market price risk). The Company has disclosed the information on exposure to the aforementioned risks and the Company’s policies and procedures to measure and manage those risks as well as the quantitative information below.

The Company’s Board of Directors is responsible for developing and monitoring the Company’s risk management policies. The Company’s risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor adherence to the controls. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s operations.

The Company’s management monitors and reviews the financial activities in accordance with procedures required by relevant regulations and internal controls.

(i) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty of financial instruments fails to meet its contractual obligations, which arises principally from the Company’s cash and cash equivalents and receivables from customers. The maximum exposure to credit risk is equal to the carrying amount of the Company’s financial assets.

The Company maintains cash and cash equivalents with reputable financial institutions. Therefore, the exposure related to potential default by those counter-parties is not considered significant.

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

1) Accounts receivable and other receivables

The Company have established a credit policy under which each customer is analyzed individually for creditworthiness for purposes of setting the credit limit. As of December 31, 2025 and 2024, 82% and 71%, respectively, of accounts receivable (including related parties) were from four customers; thus, credit risk was significantly centralized. The Company continuously evaluates the credit quality of customers and utilizes insurance to minimize the credit risk. Additionally, other receivables mainly consisted of receivables from subsidiaries that are wholly owned by the Company and therefore, the exposure related to other receivables is not considered significant.

2) Guarantees and endorsements

As of December 31, 2025 and 2024, the Company did not provide any guarantees and endorsements.

(ii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in settling its financial liabilities by delivering cash or another financial assets. The Company manages liquidity risk by monitoring regularly the current and estimated mid-term to long-term cash demand, maintaining adequate cash and banking facilities and ensuring compliance with the terms of the loan agreements. As of December 31, 2025 and 2024, the Company had unused credit facilities of $990,000 and $1,030,000, respectively.

The table below summarizes the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments, including interest payable.

	Contractual cash flow	Within 6 months	6 months-1 year	1-2 years	2-5 years	Over 5 years
December 31, 2025
Non-derivative financial liabilities:
Notes and accounts payable (including related parties)	$ 474,666	474,666	-	-	-	-
Other payables (including related parties)	175,288	175,288	-	-	-	-
Lease liabilities (including current and non-current)	24,784	4,422	3,422	6,577	9,560	803
Long-term debt (including current portion)	469,821	68,823	88,177	287,691	25,130	-
	$ 1,144,559	723,199	91,599	294,268	34,690	803
December 31, 2024
Non-derivative financial liabilities:
Notes and accounts payable (including related parties)	$ 531,254	531,254	-	-	-	-
Other payables (including related parties)	138,235	138,235	-	-	-	-
Lease liabilities (including current and non-current)	14,625	3,592	2,835	4,756	3,442	-
Long-term debt (including current portion)	530,366	89,386	168,035	143,369	129,576	-
	$ 1,214,480	762,467	170,870	148,125	133,018	-

The Company does not expect that the cash flows included in the maturity analysis would occur significantly earlier or at significantly different amounts.

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

(iii) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices, and will affect the Company's income or the value of their financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

1) Exposure to foreign currency risk and sensitivity analysis

The Company's exposure to foreign currency risk arises from cash and cash equivalents, accounts receivable (including related-party transactions), accounts payable (including related-party transactions), other receivables (including related-party transactions), and other payables (including related-party transactions) that are denominated in a currency other than the functional currency of the Company. At the reporting date, the carrying amounts of the Company's significant monetary assets and liabilities denominated in a currency other than the functional currency of the Company and the sensitivity analysis were as follows:

	December 31, 2025
	Foreign currency (in thousands)	Exchange rate	New Taiwan Dollar (in thousands)	Change in magnitude	Pre-tax effect on profit or loss (in thousands)
Financial assets
Monetary items
USD	$ 2,064	31.430	64,872	1 %	649
EUR	2,299	36.896	84,824	1 %	848
CNY	31,496	4.4952	141,581	1 %	1,416
JPY	2,290,181	0.2007	459,639	1 %	4,596
Financial liabilities
Monetary items
USD	4,441	31.430	139,581	1 %	1,396
CNY	16,200	4.4952	72,822	1 %	728
JPY	1,294,324	0.2007	259,771	1 %	2,598
	December 31, 2024
---	---	---	---	---	---
	Foreign currency (in thousands)	Exchange rate	New Taiwan Dollar (in thousands)	Change in magnitude	Pre-tax effect on profit or loss (in thousands)
Financial assets
Monetary items
USD	$ 13,235	32.785	433,909	1 %	4,339
EUR	1,379	34.132	47,068	1 %	471
CNY	14,645	4.4915	65,778	1 %	658
JPY	1,722,808	0.2099	361,617	1 %	3,616
Financial liabilities
Monetary items
USD	15,354	32.785	503,381	1 %	5,034

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

With varieties of functional currencies within the Company, the Company disclosed net realized and unrealized foreign exchange gains (losses) on monetary items in aggregate. For the years ended December 31, 2025 and 2024, the foreign exchange gains (losses) amounted to $648 and $(17,403), respectively.

2) Interest rate risk

The Company’s short-term borrowings and long-term borrowings carried floating interest rates. To manage the interest rate risk, the Company periodically assesses the interest rates of bank loans and maintain good relationships with financial institutions to obtain lower financing costs. The Company also manages working capital to reduce the dependence on bank loans as well as the risk arising from fluctuation of interest rates.

The following sensitivity analysis is based on the risk exposure to floating-interest-rate liabilities at the reporting date. The sensitivity analysis assumes the liabilities recorded at the reporting date had been outstanding for the entire period.

If interest rates had been 100 basis points (1%) higher/lower, with all other variables held constant, pre-tax income for the years ended December 31, 2025 and 2024 would have been $4,571 and $5,161, respectively, lower/higher, which mainly resulted from the borrowings with floating interest rates.

3) Other market price risk

The Company is exposed to the risk of price fluctuation in securities resulting from its investment in publicly traded stocks. The Company supervises the equity price risk actively and manages the risk based on fair value.

Assuming a hypothetical increase or decrease of 5% in equity prices of the equity investments (accounted for as financial assets at fair value through profit or loss) at each reporting date, the pre-tax income for the year ended December 31, 2025, would have increased or decreased by $1,910.

(v) Capital management

In consideration of the industry dynamics and future developments, as well as external environment factors, the Company maintains an optimal capital structure to enhance long-term shareholder value by managing its capital in a manner to ensure that it has sufficient and necessary financial resources to fund its working capital needs for continuing operations and to reward shareholders and take into consideration the interests of other stakeholders.

The Company monitors its capital through reviewing the liability-to-equity ratio periodically.

(w) Investing and financing activities not affecting cash flow

(i) Please refer to note 6(h) for a description of acquisition of the right-of-use assets through lease.

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

(ii) Reconciliation of liabilities arising from financing activities was as follows:

	January 1, 2025	Cash flows	Non-cash changes		December 31, 2025
			Additions of lease liabilities	Derecognition of lease liabilities
Long-term debt (including current portion)	$ 516,123	(59,064)	-	-	457,059
Lease liabilities (including current portion)	14,380	(8,336)	17,790	-	23,834
Total liabilities from financing activities	$ 530,503	(67,400)	17,790	-	480,893
	January 1, 2024	Cash flows	Non-cash changes		December 31, 2024
---	---	---	---	---	---
			Additions of lease liabilities	Derecognition of lease liabilities
Long-term debt (including current portion)	$ 650,366	(134,243)	-	-	516,123
Lease liabilities (including current portion)	23,284	(8,904)	-	-	14,380
Total liabilities from financing activities	$ 673,650	(143,147)	-	-	530,503

7. Related-party transactions

(a) Related party name and categories

The followings are subsidiaries of the Company and related parties that have had transactions with the Company during periods covered in the parent-company-only financial statements:

Name of related party	Relationship with the Company
Visco Technology Sdn. Bhd. (“VVM”)	The Company’s subsidiary
From-eyes Co., Ltd. (“From-eyes”)	The Company’s subsidiary
Trend Young Trading (Shanghai) Limited Company (“TYC”)	The Company’s subsidiary
Trend Young Vision Care Inc. (“VCT”)	The Company’s subsidiary
Visco Med Sdn. Bhd. (“VMM”)	VVM’s subsidiary
Crystalvue Medical Corp. (“Crystalvue”)	The Company’s associate/other related party (Note 1)
BenQ Materials Corp. (“BMC”)	The entity with significant influence over the Company
Qisda Corporation (“Qisda”)	The parent company of BMC and the entity with indirect significant influence over the Company
BenQ Asia Pacific Corp. (“BQP”)	Subsidiary of Qisda
BenQ Dialysis Technology Corp. (“BDT”)	Subsidiary of Qisda
Ace Pillar Co., Ltd. (“ACE”)	Subsidiary of Qisda
Dr. Li, Wen-Hao	Substantive related party

Note 1: Prior to November 2024, Crystalvue was other related party of the Company. Crystalvue has become an associate of the Company since November 2024

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

(b) Significant transactions with related parties

(i) Net Sales

The amounts of significant sales to related parties were as follows:

	2025	2024
Subsidiary—From-eyes	$ 1,317,555	1,030,486
Subsidiary—TYC	452,333	283,733
Entity with significant influence over the Company—BMC	433,002	439,572
	$ 2,202,890	1,753,791

The sales prices with related parties were determined based on the market competition and were not significantly different from those with third-party customers. The credit terms with related parties were 60 days.

The Company sold raw materials and work in progress to its subsidiary, VVM, for processing, and the related finished goods were sold back to the Company. Such transactions were not regarded as sales and purchase. In 2025 and 2024, the revenue related to sales of raw materials and work in progress amounting to $27,193 and $9,176, respectively, which has been offset with the related costs in the accompanying financial statements.

(ii) Purchases

The amounts of purchases from related parties were as follows:

	2025	2024
Subsidiary—VVM	$ 2,892,398	2,549,493
Entity with significant influence over the Company—BMC	321	428
	$ 2,892,719	2,549,921

The purchase prices with related parties were not comparable to purchase prices with third-party vendors as the Company did not make purchase from third-party vendors for the similar products purchased from above related parties. The payment terms with related parties of 60 days were not significantly different from those with third-party vendors.

(iii) Leases

The Company leased factory and office premise from related parties. The rent was determined by referring to the market price nearby and paid monthly. Additions to right-of-use assets amounted to $17,790 in 2025.

Interest expense arising from the abovementioned leases was as follows:

	2025	2024
Entity with significant influence over the Company—Qisda	$ 255	38

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

(iv) Property transactions

For the years ended December 31, 2025 and 2024, the payments made by the Company on behalf of VVM for the acquisition of machinery and equipment amounted to $28,842 and $16,136, respectively, and the related outstanding receivables were included in other receivables in the accompanying financial statements.

In addition, the Company purchased equipment from other related parties, the related amounts were as follows:

	2025	2024
Subsidiary—VVM	$ 1,540	-
Associates	-	1,050
	$ 1,540	1,050

(v) Operating expenses

Service expenses paid to related parties and other expenses were as follows:

	2025	2024
Subsidiary—TYC	$ 1,365	1,313
Entity with significant influence over the Company—Qisda	244	244
Substantive related party	1,200	1,200
Other related parties	202	298
	$ 3,011	3,055

As of December 31, 2025 and 2024, the related outstanding payables were included in other payables in the accompanying financial statements.

(vi) Receivables from related parties

Related receivables as a result of the above transactions and the payments made by the Company on behalf of related parties were as follows:

Account	Related-party categories	December 31, 2025	December 31, 2024
Accounts receivable	Entity with significant influence over the Company—BMC	$ 81,573	64,977
	Subsidiary—From-eyes	324,429	230,208
	Subsidiary—VVM	20,404	218
	Subsidiary—TYC	140,302	46,397
	Subsidiary—VCT	184	-
		$ 566,892	341,800
Other receivables	Subsidiary—From-eyes	$ 715	283
	Subsidiary—VVM	4,443	9,060
	Subsidiary—TYC	-	29
	Subsidiary—VCT	85	15
		$ 5,243	9,387

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

(vii) Payables to related parties

Related payables as a result of the above transactions and the payments made by related parties on behalf of the Company were as follows:

Account	Related-party categories	December 31, 2025	December 31, 2024
Accounts payable	Entity with significant influence over the Company—BMC	$ -	224
	Subsidiary—VVM	445,951	523,122
		$ 445,951	523,346
Other payables	Entity with significant influence over the Company—Qisda	$ 803	797
	Subsidiary—VVM	1,815	260
	Other subsidiaries	30	20
	Substantive related party	88	88
	Other related parties	117	163
		$ 2,853	1,328
Lease liabilities—current	Entity with significant influence over the Company—Qisda	$ 2,800	756
Lease liabilities—non-current	Entity with significant influence over the Company—Qisda	12,927	-
		$ 15,727	756

	2025	2024
Short-term employee benefits	$ 25,201	23,538
Post-employment benefits	108	108
	$ 25,309	23,646

Pledged assets: None.
Significant commitments and contingencies

The Company's unrecognized commitments were as follows:

	December 31, 2025	December 31, 2024
Acquisition of property, plant and equipment	$ 1,890	477

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

Significant loss from disaster: None.
Significant subsequent events: None.
Others

Employee benefits, depreciation and amortization, categorized by function, were as follows:

	2025			2024
	Cost of sales	Operating expenses	Total	Cost of sales	Operating expenses	Total
Employee benefits:
Salaries	1,103	245,915	247,018	-	199,689	199,689
Insurance	-	14,271	14,271	-	11,742	11,742
Pension	-	6,557	6,557	-	5,757	5,757
Remuneration to directors	-	15,545	15,545	-	13,753	13,753
Others	-	8,816	8,816	-	8,058	8,058
Depreciation	485	39,966	40,451	-	40,278	40,278
Amortization	-	1,664	1,664	-	4,349	4,349

Additional information related to the number of employees and employee benefits of 2025 and 2024 was as follows:

	2025	2024
The number of employees	136	127
The number of non-employee directors	7	7
Average employee benefits	$ 2,145	1,877
Average employee salaries	$ 1,915	1,664
Average employee salaries adjustment rate	15.08 %	23.08 %

Information on the Company's remuneration policy (including directors, independent directors, managers, and employees) is as follows:

(a) Remuneration to directors

The remuneration to directors is determined by the Board of Directors in accordance with the Company's Articles of Incorporation, the "Remuneration Policy for Directors and Functional Committee Members", which is established by referring to domestic and overseas peers, as well as the directors' participation in and contribution to the Company's operations. If the Company makes profits in a year, the Board of Directors shall determine the remuneration to directors in accordance with the Company's Articles of Incorporation, with a maximum of 1% of the current year's profit, and thereafter report it to shareholders in their meeting.

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

(b) Remuneration to president and vice president

The remuneration to president and vice president is determined by the Remuneration Committee in accordance with the “Policies and Principles of Managers’ Compensation” and with reference to the industry level, the Company’s revenue, profitability, and the performance of individual.

The Company provides competitive remuneration to attract, maintain, and develop talents. The salaries and bonuses to employees are determined in accordance with the “Policies and Principles of Managers’ Compensation” and “Performance measurement policies”. In addition to the overall operational performance of the Company, future industry operation risks and development, the remuneration also takes into account the personal performance and contribution of each employee to the Company. In order to balance the sustainable operation and risk control of the Company and link to long-term value of shareholders, the performance evaluation and reasonableness of remuneration are reviewed by Remuneration Committee and Board of Directors and are adjusted from time to time in accordance with actual operation results and relevant regulations, rather than using short-term profitability as the only indicator for the measurement of remuneration and performance.

13. Additional disclosures

(a) Information on significant transactions:

In accordance with the requirements of the Regulations, the Company additionally discloses the following information on significant transactions for the year ended December 31, 2025:

(i) Financing provided to other parties:

(In Thousands of New Taiwan Dollar/Malaysian Ringgit)

No.	Financing Company	Counter-Party	Financial Statement Account	Related Party	Maximum Balance for the Period	Ending Balance	Actual Drawdown Amounts	Interest Rate	Nature of Financing	Transaction Amounts	Reasons for Short-Term Financing	Loss Allowance	Collateral		Financing Limits for Each Borrowing Company	Financing Company’s Total Financing Amount Limits
													Item	Value
1	VVM	VMM	Other receivables from related parties	yes	13,936 (MYR 1,800)	13,936 (MYR 1,800)	13,936 (MYR 1,800)	5%	2	-	Operating requirement	-	-	-	1,470,141	1,470,141

Note 1: The aggregate financing amount shall not exceed 40% of the most recent net worth of VVM.
Note 2: The individual financing amount of VVM to subsidiaries shall not exceed 40% of the most recent net worth of VVM.
Note 3: Nature of financing: 1. Business transaction purpose. 2. Short-term financing purpose.

(ii) Guarantees and endorsement provided to other parties: None.

(iii) Material securities held (excluding investments in subsidiaries, associates, and jointly controlled entities): None.

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

(iv) Total purchases from and sales to related parties which exceed $100 million or 20% of the paid-in capital:

(In Thousands of New Taiwan Dollar)

Company Name	Related Party	Nature of Relationship	Transaction Details				Transactions with Terms Different from Others		Notes/Accounts Receivable (Payable)		Note
			Purchases/ (Sales)	Amount	% of Total Purchases/ (Sales)	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total Notes/ Accounts Receivable (Payable)
The Company	BMC	Entity with significant influence over the Company	(Sales)	(433,002)	(11)%	OA 60	Note 1	Note 1	81,573	11 %	-
VVM	BMC	Entity with significant influence over the Company	Purchases	208,396	21 %	OA 60	Note 2	Note 1	(32,725)	(17)%	-
The Company	From-eyes	Parent/Subsidiary	(Sales)	(1,317,555)	(34)%	OA 60	Note 1	Note 1	324,429	43 %	-
From-eyes	The Company	Parent/Subsidiary	Purchases	1,317,555	96 %	OA 60	Note 1	Note 1	(324,429)	99 %	-
VVM	The Company	Parent/Subsidiary	(Sales)	(2,892,398)	(100)%	OA 60	Note 3	Note 1	445,951	100 %	-
The Company	VVM	Parent/Subsidiary	Purchases	2,892,398	100 %	OA 60	Note 2	Note 1	(445,951)	(94)%	-
The Company	TYC	Parent/Subsidiary	(Sales)	(452,333)	(12)%	OA 60	Note 1	Note 1	140,302	19 %	-
TYC	The Company	Parent/Subsidiary	Purchases	452,333	100 %	OA 60	Note 1	Note 1	(140,302)	(100)%	-

Note 1: There were no significant differences between the transactions with related parties and those with third-party customers and vendors.
Note 2: The transactions with related parties are not comparable to the transactions with third-party vendors as the Company did not purchase the same products from other vendors.
Note 3: The transactions with related parties are not comparable to the transactions with third-party customers as VVM only sold products to the Company.

(v) Receivables from related parties which exceed $100 million or 20% of the paid-in capital:

(In Thousands of New Taiwan Dollar)

Company Name	Related Party	Nature of Relationship	Ending Balance	Turnover Rate	Overdue		Amounts Received in Subsequent Period	Allowance for Bad Debts
					Amount	Action Taken
The Company	From-eyes	Parent/Subsidiary	324,429	4.75	-	-	176,317	-
The Company	TYC	Parent/Subsidiary	140,302	4.85	26,901	-	95,413	-
VVM	The Company	Parent/Subsidiary	445,951	5.97	-	-	309,702	-

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

(b) Information on investees:

(In Thousands of New Taiwan Dollar/Shares)

Investor	Investee	Location	Main Businesses and Products	Investment Amount		Balance as of December 31, 2025			Net Income (Loss) of the Investee	Investment Income (Loss)	Note
				December 31, 2025	December 31, 2024	Shares	Percentage of Ownership	Carrying Value
The Company	VVM	Malaysia	Manufacture and sale of contact lenses	2,102,783	2,102,783	289,761	100.00 %	3,676,644	427,096	417,637	Parent/Subsidiary
The Company	From-eyes	Japan	Sale of contact lenses	220,441	220,441	1	100.00 %	264,424	57,408	55,112	Parent/Subsidiary
The Company	VCT	Taiwan	Medical management services	44,000	44,000	4,400	55.00 %	22,867	1,155	(5,670)	Parent/Subsidiary
The Company	Crystalvue	Taiwan	Design, manufacture and sale of medical equipment	568,929	449,888	6,503	25.66 %	577,994	146,980	20,779	Associate
VVM	VMM	Malaysia	Lease management services	3,696	3,696	500	100.00 %	1,298	(292)	(292)	Parent/Subsidiary

(i) Name and main businesses and products of investee companies in Mainland China:

(In Thousands of Renminbi/New Taiwan Dollar)

Investee Company	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of January 1, 2025	Investment Flows		Accumulated Outflow of Investment from Taiwan as of December 31, 2025	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of December 31, 2025	Accumulated Inward Remittance of Earnings as of December 31, 2025
					Outflow	Inflow
Trend Young Trading (Shanghai) Limited Company	Sale of contact lenses	15,533 (CNY 3,500)	Note 1	15,733 (CNY 3,500)	-	-	15,733 (CNY 3,500)	(10)	100.00 %	(10)	(17,804)	-

Note 1: Direct investment in Mainland China.
Note 2: Except for the paid-in capital which was measured at historical foreign exchange rate, the above amounts were translated into New Taiwan Dollar at the exchange rate of CNY 1=NTD 4.4952 at December 31, 2025.

(ii) Limits on investments in Mainland China:

(In Thousands)

Investor Company Name	Accumulated Investment in Mainland China as of December 31, 2025	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment Authorized by Investment Commission, MOEA
The Company	115,052 (Note 2) (USD 3,160 and CNY 3,500)	116,309 (Note 2) (USD 3,200 and CNY 3,500)	2,664,705

Note 1: The above amounts were translated into New Taiwan Dollar at the exchange rate of US$1=NTD 31.43 and CNY 1=NTD 4.4952 at December 31, 2025.
Note 2: The investment amounts included investments in Mainland China of US$3,160 and investment amount of US$3,200 authorized by Investment Commission, MOEA in prior years. In 2019, the related investees were liquidated and the withdrawal of the abovementioned investments in Mainland China has been approved by the Investment Commission, MOEA.

(Continued)

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

(iii) Significant transactions with investee companies in Mainland China:

Related Party	Nature of Relationship	Transaction Terms					Notes/Accounts Receivable (Payable)		Unrealized Gain (Loss)
		Type	Amount	Price	Payment Terms	Transactions with Others	Balance	Percentage
Trend Young Trading (Shanghai) Limited Company	The Company's subsidiary	Sales	452,333	Note 1	OA 60	Note 1	140,302	18.57 %	(26,255)

Note 1: There were no significant differences between the transactions with related parties and those with third-party customers.

14. Segment information

Please refer to the consolidated financial statements for detailed information.

Visco Vision Inc.

Statement of Cash and Cash Equivalents

December 31, 2025

(Expressed in Thousands of New Taiwan Dollar)

Item	Description	Amount
Petty cash		$ 16
Demand deposits and checking accounts		42,462
Foreign currency deposits (Note)	USD : 413 thousand	12,986
	EUR : 100 thousand	3,697
	JPY : 294,796 thousand	59,165
	Others	1,280
		$ 119,606

Note: The spot exchange rate of each foreign currency at December 31, 2025 was as follows:

USD : NTD = 1 : 31.4300
EUR : NTD = 1 : 36.8960
JPY : NTD = 1 : 0.2007

Statement of Financial Assets at Fair Value through Profit or Loss—Current

(Expressed in Thousands of New Taiwan Dollar/Shares)

Name of Financial Instrument	Shares	Amount	Fair Value
Listed stocks – Pegavision Corporation	134	$ 38,190	Unit Price $ 285	Amount $ 38,190

(Continued)

Visco Vision Inc.
Statement of Accounts Receivable
December 31, 2025
(Expressed in Thousands of New Taiwan Dollar)

Client Name	Amount
Customer A	$ 76,946
Customer B	57,916
Customer C	16,613
Customer D	11,442
Customer E	9,873
Others (Note)	15,860
	$ 188,650

Note: The amount of individual client included in others did not exceed 5% of the account balance.

Statement of Inventories

Item	Amount
	Carrying Amount	Net Realizable Value
Raw materials	$ 33,916	33,916
Work in progress	1,614	1,614
Finished goods	20,464	25,790
	$ 55,994	61,320

Note: Provision of inventory obsolescence has been deducted.

(Continued)

Visco Vision Inc.

Statement of Movements of Investments Accounted for Using the Equity Method

For the year ended December 31, 2025

(Expressed in Thousands of New Taiwan Dollar/Shares)

Name of Investor	Balance as of January 1, 2025		Addition		Decrease		Investment Income (Loss)	Others (Note)	Realized (unrealized) gross profit	Translation adjustments	Balance as of December 31, 2025			Net Assets Value
	Share	Amount	Share	Amount	Share	Amount					Share	Percentage of Ownership	Amount	Unit Price (in NTD)	Total Amount	Collateral
VVM	289,761	$ 3,085,165	-	-	-	-	417,637	(27,874)	-	201,716	289,761	100.00 %	3,676,644	12.69	3,676,644	-
From-eyes	1	232,969	-	-	-	-	55,112	-	(9,291)	(14,366)	1	100.00 %	264,424	257,512	257,512	-
TYC	1	(3,067)	-	-	-	-	(10)	-	(14,733)	6	1	100.00 %	(17,804)	8,451	8,451	-
VCT	4,400	28,739	-	-	-	-	(5,670)	-	(202)	-	4,400	55.00 %	22,867	5.24	23,069	-
Crystalvue	5,095	451,501	1,408	119,041	-	-	20,779	(13,327)	-	-	6,503	25.66 %	577,994	84.90	494,878	-
		$ 3,795,307		119,041		-	487,848	(41,201)	(24,226)	187,356			4,524,125

Note: Others include unrealized loss of $27,874 on financial assets at fair value through other comprehensive income and cash dividends of $13,327 received from the investee.

(Continued)

VISCO VISION INC.

Statement of Contract Liabilities—Current

December 31, 2025

(Expressed in Thousands of New Taiwan Dollar)

Client Name	Amount
Customer I	$ 7,821
Customer II	2,417
Customer III	2,134
Customer IV	1,517
Customer V	874
Others (Note)	594
	$ 15,357

Note: The amount of individual client included in others did not exceed 5% of the account balance.

Statement of Notes and Accounts Payables

Vendor Name	Amount
Vendor A	$ 22,819
Vendor B	3,405
Vendor C	1,881
Others (Note)	610
	$ 28,715

Note: The amount of individual vendor included in others did not exceed 5% of the account balance.

(Continued)

Visco Vision Inc.
Statement of Other Payables
December 31, 2025
(Expressed in Thousands of New Taiwan Dollar)

Item	Amount
Salaries and bonus payables (including remuneration to employees and directors)	$ 139,844
Income tax payables	86,723
Accrued expenses	31,123
Others (Note)	1,468
	$ 259,158

Note: The amount of individual item included in others did not exceed 5% of the account balance.

Statement of Lease Liabilities

Item	Description	Lease Term	Discount Rate	Ending Balance
Buildings	Office	2021.12~2027.12	1.13%	$ 6,338
Buildings	Office	2022.11~2027.12	1.13%	380
Buildings	Laboratory	2023.06~2026.07	2.18%	1,390
Buildings	Office	2025.04~2031.03	2.00%	15,726
				23,834
Less: Current portion of lease liabilities				(7,487)
				$ 16,347

(Continued)

Visco Vision Inc.

Statement of Long-term Debt

December 31, 2025

(Expressed in Thousands of New Taiwan Dollar)

Creditor	Description	Loan Amount	Contract Period	Interest Rates	Collateral
Bank of Taiwan	5 years mid- to long-term loan	$ 60,000	2022.03~2027.03		-
First Commercial Bank	5 years mid- to long-term loan	42,500	2022.10~2027.08		-
Mega International Commercial Bank	5 years mid- to long-term loan	29,559	2022.11~2027.11		-
The Export-Import Bank of the Republic of China	5 years mid- to long-term loan	125,000	2023.03~2028.03		-
Yuanta Commercial Bank	3 years mid- to long-term loan	200,000	2024.12~2027.12		-
		457,059		1.98% ~2.04%
Less: Current portion of long-term debt		(149,065)
		$ 307,994

(Continued)

Visco Vision Inc.

Statement of Revenue

For the year ended December 31, 2025

(Expressed in Thousands of New Taiwan Dollar)

Item	Quantity (in thousands)	Amount
Contact lenses	490,751	$ 3,838,296
Others		24,378
		3,862,674
Less: Sales returns and allowance		(11,018)
		$ 3,851,656

Statement of Cost of Revenue

Item	Amount
Raw materials
Add: Purchase of raw materials	$ 46,299
Less: Raw materials, end of year	(33,915)
Reclassified to other expenses	(12,384)
Raw materials used	-
Direct labor	1,103
Manufacturing overhead	1,602
Manufacturing cost	2,705
Add: Purchase of work in progress	98
Reclassified from other expenses	1,614
Less: Work in progress, end of year	(1,614)
Reclassified to other expenses	(98)
Cost of work in progress	2,705
Add: Finished goods, beginning of year	-
Purchase of finished goods	2,898,978
Less: Finished goods, end of year	(20,464)
Cost of revenue	$ 2,881,219

(Continued)

Visco Vision Inc.

Statement of Selling Expenses

For the year ended December 31, 2025

(Expressed in Thousands of New Taiwan Dollar)

Item	Amount
Salaries	$ 30,806
Insurance expense	9,124
Advertisement expense	3,543
Professional service expense	2,950
Others (Note)	7,256
	$ 53,679

Note: The amount of individual item included in others did not exceed 5% of the account balance.

Statement of Administrative Expenses

Item	Amount
Salaries	$ 107,765
Remuneration to directors	15,545
Professional service expense	12,457
Others (Note)	34,263
	$ 170,030

Note: The amount of individual item included in others did not exceed 5% of the account balance.

(Continued)

Visco Vision Inc.
Statement of Research and Development Expenses
For the year ended December 31, 2025
(Expressed in Thousands of New Taiwan Dollar)

Item	Amount
Salaries	$ 107,344
Depreciation	32,606
Outsourced research expense	19,300
Others (Note)	36,150
	$ 195,400

Note: The amount of individual item included in others did not exceed 5% of the account balance.

For details of Accounts Receivable from Related Parties, please refer to note 7.
For details of Other Receivables from Related Parties, please refer to note 7.
For details of movements of Property, Plant and Equipment, please refer to note 6(g).
For details of movements of Right-of-Use Assets, please refer to note 6(h).
For details of movements of Intangible Assets, please refer to note 6(i).
For details of Deferred Income Tax Assets, please refer to note 6(n).
For details of Accounts Payables to Related Parties, please refer to note 7.
For details of Other Payables to Related Parties, please refer to note 7.
For details of Deferred Income Tax Liabilities, please refer to note 6(n).
For details of Interest Income, please refer to note 6(s).
For details of Other Income, please refer to note 6(s).
For details of Other Gains and Losses, please refer to note 6(s).
For details of Finance Costs, please refer to note 6(s).

AI assistant

VISCO — Audit Report / Information 2025

52629_rns_2026-04-15_67bc5578-62bb-46f0-a485-655586becd9e.pdf

VISCO VISION INC.

Table of contents

Independent Auditors’ Report

Opinion

Basis for Opinion

Key Audit Matters

Responsibilities of Management and Those Charged with Governance for the Parent-Company-Only Financial Statements

Auditors’ Responsibilities for the Audit of the Parent-Company-Only Financial Statements

Notes to Readers

VISCO VISION INC.

Parent-Company-Only Balance Sheets

December 31, 2025 and 2024

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

4. Summary of material accounting policies

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

(l) Intangible assets

(m) Impairment of non-financial assets

(n) Provisions

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

5. Critical accounting judgments and key sources of estimation and assumption uncertainty

6. Significant account disclosures

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

(i) Intangible assets

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

(m) Employee benefits

(n) Income taxes

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

(ii) Deferred income tax assets and liabilities

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

VISCO VISION INC.

Notes to the Parent-Company-Only Financial Statements

VISCO VISION INC.

VISCO Audit Report / Information 2025