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ZIPPY — AGM Information 2026
Jun 2, 2026
52069_rns_2026-06-02_63011279-deef-4349-8525-7e2c06871462.pdf
AGM Information
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ZIPPY TECHNOLOGY CORP.
Minutes of 2026 Annual General Shareholders’ Meeting (Translation)
Time and Date: 9:00 am., May 20, 2026
Place: No. 20-2, Sanmin Rd., Xindian Dist., New Taipei City 231
Quorum: 102,222,872 shares were represented by shareholders in person and by proxy (including by exercising voting rights electronically: 12,635,999 shares), which are mounted to 66.96% of the Company’s 152,648,688 issued and outstanding shares.
Chairman: Kao, Ming-Chuan
Recorder: Yeh, Pei-Yu
Board Members Present:
Director: Kao, Ming-Chuan / Chou, Chin-Wen / Tsai, Yi-Ting / Chung, Meng-Ting/
Independent Director: Liu, Hsueh-Li / Hung, Chung-Wen/
Chuang, Weng-Kai
Attendance: Chen, Ying-Ru, CPA / Chen, Howard, Attorney-at-Law
- Call the Meeting to Order
The Chairman announced that the aggregate shareholding of the shareholders present in person or proxy constituted a quorum. The Chairman called the meeting to order.
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Chairman Remarks: (Omitted)
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Report Items:
a. 2025 Business report (Please refer to Attachment 1)
b. 2025 Audit Committee’s Review Report (Please refer to Attachment 2)
c. The Status of Distribution Remuneration of Employees and Directors in 2025
- Ratification Items
Report No. 1
Proposed by the Board
Proposal: Ratification of the 2025 Business Report and Financial Statements
Explanation:
a. The Company’s 2025 Consolidated and Individual financial statements were audited by the CPA firm of KPMG, and can represent the financial and operating status of the Company. Also Business Report and Financial Statements have been approved by the Audit Committee of Zippy Technology Corp.
b. The 2024 Business Report, independent auditors’ audit report, and the above-mentioned Financial Statements are attached hereto as Attachment 1 and Attachment 3.
Resolution: Approved and acknowledged as proposed by voting: a total of 98,557,088 shares with voting rights were present when votes were cast.
| Result | % of the total voting rights |
|---|---|
| The number of voting rights for approval is 94,490,944 among which 9,331,858 was exercised by electronic transmission | 95.87% |
| The number of votes against is 45,645, among which 45,645 was exercised by electronic transmission | 0.00% |
| The number of invalid votes is 0 | 0.00% |
| The number of votes abstained is 4,020,499, among which 3,258,496 was exercised by electronic transmission | 4.07% |
Report No. 2
Proposed by the Board
Proposal: Adoption of the Proposal for Distribution of 2025 Profits
Explanation:
a. The 2025 Profit Distribution had been resolved by the Board of Directors and reviewed by the Audit Committee, please refer to Attachment 4.
b. Subject to the approval of the Annual General Shareholders’ Meeting, it is proposed that the Board of Directors be authorized to determine the ex-dividend date, ex-rights date, and to handle all
other matters relating thereto. Any fractional cash dividends of less than NT$1 resulting from the distribution shall be deemed as odd lots and the Chairman is fully authorized to negotiate and handle such matters with specific parties at his sole discretion.
c. If payout ratio has been changed due to the number of outstanding shares affected by a buyback of common shares or a transfer, conversion, retirement of treasury stocks, it is proposed that the Board of Directors be fully authorized to deal with.
Resolution: Approved and acknowledged as proposed by voting: a total of 98,557,088 shares with voting rights were present when votes were cast.
| Result | % of the total voting rights |
|---|---|
| The number of voting rights for approval is 94,556,989, among which 9,399,903 was exercised by electronic transmission | 95.94% |
| The number of votes against is 41,803, among which 41,803 was exercised by electronic transmission | 0.04% |
| The number of invalid votes is 0 | 0.00% |
| The number of votes abstained is 3,958,296, among which 3,194,293 was exercised by electronic transmission | 4.01% |
5. Questions and Motions:
Shareholder Account No. 9040 raised the following questions:
a. Regarding the proposal for the distribution of 2025 earnings, the Company proposes to distribute cash dividends of NT$3.00 per share. What was the basis for the Company's decision or evaluation in determining this amount? In addition, the ending unappropriated retained earnings amounted to NT$748,000,462. How does the Company plan to utilize these funds in the future?
b. Could the Company provide its dividend distribution record for the past five years?
Chairperson's Response:
The Company has consistently followed its established dividend policy in carrying out earnings distributions. In previous years, the earnings distribution ratio has generally been maintained at
around 80%. The proposed cash dividend for this year was determined after taking into comprehensive consideration the Company’s profitability, financial structure, working capital requirements, and future development plans.
As for the ending unappropriated retained earnings, the Company expects to utilize them, subject to operational needs, for product development, investment planning, and matters necessary to support the Company’s sustainable operations. In addition, the Company’s profitability last year was indeed lower than that of the previous year, and the management team will continue its efforts to improve operating performance.
Regarding the dividend distribution record for the past five years, based on the information currently available at the meeting, the cash dividend was NT$3.5 per share for 2024 and NT$3.0 per share for 2023. Information for the remaining years will be compiled after the meeting and provided for reference.
6. Adjournment
Meeting adjourned at 9:28 am.
- The minutes of this general meeting of shareholders only contain the main points of the meeting, and the contents and procedures of the meeting are still subject to the video records of the meeting.
**In case of any discrepancy between the English version and the Chinese version of the minute of 2026 Annual General Shareholders’ Meeting of ZIPPY TECHNOLOGY CORP., the Chinese version shall prevail.
I. Attachments
Attachment 1
2025 Business Report of ZIPPY TECHNOLOGY CORP.
(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)
- The Company's Consolidated Balance Sheet on 12/31/25 is as follows:
a. The amount of current assets, including cash and cash equivalents, financial assets measured at fair value through profit or loss, accounts receivable, notes receivable, other receivables, inventories, other current assets, etc., was $2,273,025. The amount of non-current assets, including property, plant and equipment, right-of-use assets, investment property, intangible assets, deferred income tax assets, prepayment for business facilities and guarantee deposits paid, etc., was $3,336,345. The total amount of total assets was $5,609,370.
b. The amount of current liabilities, including short-term borrowings, contract liabilities, accounts payable, notes payable, other payables, current tax liabilities, lease liabilities, long-term borrowings (current portion) and other current liabilities was $628,254. The amount of non-current liabilities, including long-term borrowings, deferred income tax liabilities, lease liabilities, net determined benefit liability and guarantee deposits received, etc., was $985,192. The total amount of total liabilities was $1,613,446.
c. The total amount of the equity attributable to the owners of the parent company, which included $1,526,487 of ordinary share, $138,051 in capital surplus, $2,312,051 in retained earnings, and $830 in other equity interests, was $3,977,419. After adding $18,505 of non-controlling interests, the total amount of total equity was $3,995,924.
- The Company's consolidated Statements of Comprehensive Income for 2025 is as follows:
a. The total amount of consolidated sales revenue was $2,178,524, which included $1,157,235 of micro-switch and $1,021,289 of power supply. The
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consolidated sales revenue for the year decreased by $58,216, compared with last year, a decrease of 2.60%.
b. The total amount of operating expenses, which included $1,178,200 of operating costs and $363,886 of operating expenses, was $1,542,086.
c. Non-operating income and expenses included $20,309 of interest income, $129,453 of other income, $8,753 of net incomes of other gains and losses, and $23,534 of financial costs. Total non-operating net income was $117,475.
- The Company's surplus in 2025 is as follows:
a. The annual net operating income was $636,438, accounting for 29% of the sales revenue. The profit from continuing operations before tax was $753,913, accounting for 35% of the sales revenue; the net profit after tax for the current period was $597,022, accounting for 28% of the sales revenue. Compared with last year, net operating income increased by $15,001; the increases were 2.41%, pre-tax net profit and current net profit decreased by $75,507 and $69,867, respectively; the decreases were 9.10% and 10.48%.
b. The net after-tax other comprehensive income/(loss) was $(13,345), and the total comprehensive income for the period was $590,904, accounting for 27% of operating income. The amount of net profit attributable to owners of parent in the current period was $596,183, and the total amount of comprehensive income attributable to owners of parent was $590,129. Compared with last year, the net profit attributable to owners of parent and the total comprehensive income attributable to owners of parent decreased by $69,836 and $122,308, respectively; the decreases were 10.49% and 17.17%, respectively.
c. The basic earnings per share was 3.91, a decrease of 0.45 from last year's 4.36, a decrease of 10.32%.
d. Taking a comprehensive view, amid adverse factors such as regional conflicts, changes in U.S. tariff policies and trade agreements, global supply chain restructuring, increasing geo-economic fragmentation, and exchange rate fluctuations, global trade has become increasingly fragmented. As a result, the Company's overall operating performance in fiscal year 2025 declined compared to the previous year.
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Looking ahead, macroeconomic weakness and geopolitical uncertainties are expected to persist. In particular, U.S. tariff policies are likely to have a significant impact on global political and economic developments. In response, the Company will continue to adjust its business strategies in a timely and agile manner, proactively addressing challenges, expanding market opportunities, and strengthening supply chain management to maintain its competitiveness.
Leveraging high-quality, innovative products and services with short lead times, we aim to meet the diverse needs of our customers. Ultimately, we remain committed to creating greater value for our shareholders, customers, and employees, and to sharing the benefits of our operating achievements..
Chairman: Kao, Ming-Chuan
President: Cheng, Chiu-Yi
Accounting officer: Yeh, Pei-Yu
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Attachment 2
ZIPPY TECHNOLOGY CORP.
Audit Committee’s Review Report
The Board of Directors has prepared and submitted to us the Company’s 2025 Business Report, Financial Statements, and proposal for profit distribution. The Financial Statements have been audited, certified and issued an audit report by CPA firm of KPMG. The Business Report, Financial Statements, and profit distribution proposal have been reviewed and determined to be correct and accurate by the Audit Committee members. According to Article 14-4 of the Securities and Exchange Act and Article 219 of the Company Law, we hereby submit this report.
ZIPPY TECHNOLOGY CORP.
Convener of the Audit Committee: Liu, Hsueh-Li
March 4, 2026
Attachment 3
Independent Auditors' Report
To the Board of Directors of Zippy Technology Corp.:
Opinion
We have audited the consolidated financial statements of Zippy Technology Corp. and its subsidiaries (“the Group”), which comprise the consolidated statement of financial position as of December 31, 2025 and 2024, and the consolidated statement of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the year ended December 31, 2025 and 2024 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the International Financial Reporting Standards (“IFRSs”), International Accounting Standards (“IASs”), Interpretations developed by the International Financial Reporting Interpretations Committee (“IFRIC”) or the former Standing Interpretations Committee (“SIC”) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.
Basis for Opinion
We conducted our audit in accordance with the Regulations Governing Auditing and Certification of Financial Statements by Certified Public Accountants and the auditing standards generally accepted in the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the Certified Public Accountants Code of Professional Ethics in Republic of China (“the Code”), and we have fulfilled our other ethical responsibilities in accordance with the Code. 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 significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Revenue recognition
Please refer to Note 4(o), and 6(t) for accounting policies and related disclosure information for revenue, respectively.
Description of the key audit matter:
The main business items of the Group are power supplies and micro switches. Sales transactions of the Group are mainly for export. There is uncertainty in the timing of export revenue recognition due to the long delivery period and the risk reward and ownership of the goods. The focus of attention is whether the timing of revenue recognition meets the transaction terms. Therefore, the timing for revenue recognition has been identified as a key audit matter in the current period.
How the matter was addressed in our audit:
In relation to the key audit matter above, we have performed certain key audit procedures that included assessing the appropriateness of the accounting policies and the design of related internal control for the timing of revenue recognition to the Group; conducting internal control tests to confirm whether the internal control is effectively implemented; executing the cut-off test for revenue recognition based on the transactions for a period of time before and after the report date.
Other Matter
Zippy Technology Corp. has additionally prepared its parent company only financial statements as of and for the years ended December 31, 2025 and 2024, on which we have issued an unqualified opinion.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with Regulations Governing the Preparation of Financial Reports by Securities Issuers and IFRSs, IASs, interpretation as well as related guidance endorsed by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
Those charged with governance (including the Audit Committee) are responsible for overseeing the Group's financial reporting process.
Auditor's Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the auditing standards generally accepted in the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with auditing standards generally accepted in the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
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Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.
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Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
The engagement partners on the audit resulting in this independent auditors’ report are Rou-Lan Kuo and Ying-Ru Chen.
KPMG
Taipei, Taiwan (Republic of China)
March 4, 2026
(ENGLISH TRANSLATION OF CONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN CHINESE)
ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2025 AND 2024
(AMOUNTS EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)
| ASSETS | 2025.12.31 | 2024.12.31 | LIABILITIES AND EQUITY | 2025.12.31 | 2024.12.31 | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Amount | % | Amount | % | Amount | % | Amount | % | |||
| 11XX | Current Assets : | 21XX | Current Liabilities : | |||||||
| 1100 | Cash and cash equivalents (Notes (6)(a)) | $ 1,011,653 | 18 | $ 1,054,027 | 19 | 2100 | Short-term borrowings (Note (6)(l), (6)(z) and (8)) | $ 14,740 | - | $ 13,653 |
| 1110 | Current financial assets at fair value through profit or loss (Notes (6)(b)) | 240,872 | 4 | 215,607 | 4 | 2130 | Current contract liabilities (Note (6)(t)) | 17,471 | - | 15,225 |
| 1136 | Current financial assets at amortized cost (Note 6(c)) | 117,510 | 2 | 110,413 | 2 | 2150 | Note payable | 6,744 | - | 12,046 |
| 1150 | Notes receivable, net (Notes (6)(d)) | 18,286 | 1 | 15,746 | - | 2170 | Accounts payable | 240,412 | 4 | 223,877 |
| 1170 | Accounts receivable, net (Notes (6)(d)) | 269,134 | 5 | 293,405 | 5 | 2200 | Other payables (Note (6)(p)) | 190,005 | 4 | 233,541 |
| 1200 | Other receivables (Notes (6)(e)) | 9,642 | - | 11,550 | - | 2230 | Current tax liabilities (Notes (4) and (6)(q)) | 93,667 | 2 | 106,018 |
| 1220 | Current tax assets (Notes (4) and (6)(q)) | 208 | - | 185 | - | 2280 | Current lease liabilities (Notes (4), (6)(n) and 6(z)) | 1,398 | - | 1,370 |
| 130X | Inventories, net (Notes (6)(f)) | 560,772 | 10 | 558,830 | 10 | 2320 | Long-term borrowings, current portion (Note (6)(m), (6)(z) and (8)) | 50,000 | 1 | 50,000 |
| 1470 | Other current assets | 44,948 | 1 | 45,079 | 1 | 2399 | Other current liabilities, others | 13,817 | - | 13,942 |
| Total current assets | 2,273,025 | 41 | 2,304,842 | 41 | Total current liabilities | 628,254 | 11 | 669,672 | ||
| 25XX | Non-current Liabilities : | |||||||||
| 15XX | Non-current Assets : | 2540 | Long-term borrowings (Note (6)(m), (6)(z) and (8)) | 958,000 | 17 | 1,008,000 | ||||
| 1518 | Non-current financial assets at fair value through other comprehensive income (Notes (4) and (6)(h)) | 10,000 | - | 2570 | Deferred income tax liabilities (Notes (6)(q)) | 1,964 | - | 1,776 | ||
| 1600 | Property, plant and equipment (Notes (6)(h) and (8)) | 1,144,470 | 20 | 1,161,617 | 20 | 2580 | Non-current lease liabilities (Notes (4), (6)(n) and 6(z)) | 3,524 | - | 4,922 |
| 1755 | Right-of-use assets (Notes (6)(i)) | 12,342 | - | 14,034 | - | 2640 | Net defined benefit liability, non-current (Notes (6)(p)) | 2,142 | - | 11,040 |
| 1760 | Investment property, net (Notes (6)(j) and (8)) | 2,086,489 | 37 | 2,103,520 | 37 | 2645 | Guarantee deposits received | 19,562 | 1 | 24,362 |
| 1780 | Intangible assets (Notes (6)(k)) | 20,450 | - | 20,646 | - | Total non-current liabilities | 985,192 | 18 | 1,050,100 | |
| 1840 | Deferred income tax assets (Note (6)(q)) | 26,931 | 1 | 30,614 | 1 | 2XXX | Total Liabilities | 1,613,446 | 29 | 1,719,772 |
| 1915 | Prepayments for business facilities | 35,256 | 1 | 34,447 | 1 | |||||
| 1920 | Guarantee deposits paid | 407 | - | 407 | - | 3XXX | Equity attributable to owners of parent (Note (6)(r)) : | |||
| Total non-current assets | 3,336,345 | 59 | 3,365,285 | 59 | 3110 | Ordinary share | 1,526,487 | 27 | 1,526,487 | |
| 3200 | Capital surplus | 138,051 | 3 | 135,562 | ||||||
| 3300 | Retained earnings | 2,312,051 | 41 | 2,243,847 | ||||||
| 3400 | Other equity interest | 830 | - | 13,175 | ||||||
| Total equity attributable to owners of parent | 3,977,419 | 71 | 3,919,071 | |||||||
| 36xx | Non-controlling interests | 18,505 | - | 31,284 | ||||||
| Total Equity | 3,995,924 | 71 | 3,950,355 | |||||||
| TOTAL ASSETS | $ 5,609,370 | 100 | $ 5,670,127 | 100 | TOTAL LIABILITIES AND EQUITY | $ 5,609,370 | 100 | $ 5,670,127 | 100 |
The accompanying notes are an integral part of financial statements
(ENGLISH TRANSLATION OF CONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN CHINESE)
ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(AMOUNTS EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)
| For the years ended December 31, | |||||
|---|---|---|---|---|---|
| 2025 | % | 2024 | % | ||
| 4000 | Total sales revenue (Notes (6)(t)) | $ 2,178,524 | 100 | 2,236,740 | 100 |
| 5110 | Total operating costs (Notes (6)(f)) | 1,178,200 | 54 | 1,165,733 | 52 |
| 5900 | Gross profit from operations | 1,000,324 | 46 | 1,071,007 | 48 |
| 6000 | Operating expenses (Notes (6)(d), (6)(n), (6)(p) and (6)(u)): | ||||
| 6100 | Selling expenses | 77,731 | 4 | 88,690 | 4 |
| 6200 | Administrative expenses | 221,603 | 10 | 288,473 | 13 |
| 6300 | Research and development expenses | 62,534 | 3 | 72,346 | 3 |
| 6450 | Expected credit loss (gain) | 2,018 | - | 61 | - |
| Total operating expenses | 363,886 | 17 | 449,570 | 20 | |
| 6900 | Net operating income | 636,438 | 29 | 621,437 | 28 |
| 7000 | Non-operating income and expenses (Note (6)(o) and (v)): | ||||
| 7100 | Interest income | 20,309 | 1 | 35,884 | 2 |
| 7010 | Other income | 129,453 | 6 | 140,737 | 6 |
| 7020 | Other gains and losses, net | (8,753) | - | 55,870 | 2 |
| 7050 | Finance costs, net | (23,534) | (1) | (24,508) | (1) |
| Total non-operating income and expenses | 117,475 | 6 | 207,983 | 9 | |
| Profit (loss) from continuing operations before tax | 753,913 | 35 | 829,420 | 37 | |
| 7950 | Less: Income tax expenses (Note (6)(q)) | 156,891 | 7 | 162,531 | 7 |
| Profit | 597,022 | 28 | 666,889 | 30 | |
| Other comprehensive income: | |||||
| 8310 | Components of other comprehensive income that will not be reclassified to profit or loss | ||||
| 8311 | Gains (losses) on remeasurements of defined benefit plans | 7,783 | - | 6,306 | - |
| 8349 | Income tax related to components of other comprehensive income that will not be reclassified to profit or loss | (1,556) | - | (1,261) | - |
| Components of other comprehensive income that will not be reclassified to profit or loss | 6,227 | - | 5,045 | - | |
| 8360 | Components of other comprehensive income (loss) that will be reclassified to profit or loss | ||||
| 8361 | Exchange differences on translation of foreign financial statements | (12,345) | (1) | 41,403 | 2 |
| 8399 | Income tax related to components of other comprehensive income that will be reclassified to profit or loss | - | - | - | - |
| Components of other comprehensive income that will be reclassified to profit or loss | (12,345) | (1) | 41,403 | 2 | |
| Other comprehensive income | (6,118) | (1) | 46,448 | 2 | |
| 8500 | Total comprehensive income | $ 590,904 | 27 | 713,337 | 32 |
| Profit (loss), attributable to: | |||||
| 8610 | Profit (loss), attributable to owners of parent | $ 596,183 | 28 | 666,019 | 30 |
| 8620 | Profit (loss), attributable to non-controlling interests | 839 | - | 870 | - |
| $ 597,022 | 28 | 666,889 | 30 | ||
| Comprehensive income attributable to: | |||||
| 8710 | Comprehensive income, attributable to owners of parent | $ 590,129 | 27 | 712,437 | 32 |
| 8720 | Comprehensive income, attributable to non-controlling interests | 775 | - | 900 | - |
| $ 590,904 | 27 | 713,337 | 32 | ||
| 9750 | Basic earnings per share (NT dollars) (Notes (6)(s)) | $ | 3.91 | 4.36 | |
| 9870 | Diluted earnings per share (NT dollars) (Notes (6)(s)) | $ | 3.89 | 4.35 |
The accompanying notes are an integral part of financial statements
(ENGLISH TRANSLATION OF CONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN CHINESE)
ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(AMOUNTS EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)
| Equity attributable to owners of parent | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Capital Stock | Retained Earnings | Other Equity | Non-Controlling Interests | Total Equity | ||||||
| Share Capital | Capital Surplus | Legal Reserve | Special Reserve | Unappropriated Retained Earnings | Total | Exchange Differences on Translation of Foreign Financial Statements | Total Equity Attributable to Owners of Parent | |||
| Balance at January 1, 2024 | $ 1,526,487 | 135,562 | 924,672 | 23,960 | 1,082,127 | 2,030,759 | (28,228) | 3,664,580 | 30,384 | 3,694,964 |
| Net income (loss) for the period | - | - | - | - | 666,019 | 666,019 | - | 666,019 | 870 | 666,889 |
| Other comprehensive income (loss) for the period | - | - | - | - | 5,015 | 5,015 | 41,403 | 46,418 | 30 | 46,448 |
| Total comprehensive income (loss) for the period | - | - | - | - | 671,034 | 671,034 | 41,403 | 712,437 | 900 | 713,337 |
| Appropriation and distribution of retained earnings: | ||||||||||
| Legal reserve appropriated | - | - | 54,082 | - | (54,082) | - | - | - | - | - |
| Special reserve reversed | - | - | - | 4,268 | (4,268) | - | - | - | - | - |
| Cash dividends of ordinary shares | - | - | - | - | (457,946) | (457,946) | - | (457,946) | - | (457,946) |
| Balance at December 31, 2024 | 1,526,487 | 135,562 | 978,754 | 28,228 | 1,236,865 | 2,243,847 | 13,175 | 3,919,071 | 31,284 | 3,950,355 |
| Net income (loss) for the period | - | - | - | - | 596,183 | 596,183 | - | 596,183 | 839 | 597,022 |
| Other comprehensive income (loss) for the period | - | - | - | - | 6,291 | 6,291 | (12,345) | (6,054) | (64) | (6,118) |
| Total comprehensive income (loss) for the period | - | - | - | - | 602,474 | 602,474 | (12,345) | 590,129 | 775 | 590,904 |
| Appropriation and distribution of retained earnings: | ||||||||||
| Legal reserve appropriated | - | - | 67,103 | - | (67,103) | - | - | - | - | - |
| Cash dividends of ordinary shares | - | - | - | - | (534,270) | (534,270) | - | (534,270) | - | (534,270) |
| Special reserve reversed | - | - | - | (28,228) | 28,228 | - | - | - | - | - |
| Difference between consideration and carrying amount of subsidiaries acquired or disposed | - | 2,489 | - | - | - | - | - | 2,489 | (13,554) | (11,065) |
| Balance at December 31, 2025 | $ 1,526,487 | 138,051 | 1,045,857 | - | 1,266,194 | 2,312,051 | 830 | 3,977,419 | 18,505 | 3,995,924 |
The accompanying notes are an integral part of financial statements
(English Translation of Consolidated Financial Statements Originally Issued in Chinese)
ZIPPY TECHNOLOGY CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(AMOUNTS EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)
| 2025 | 2024 | |
|---|---|---|
| Cash flows from operating activities: | ||
| Profit before tax | $ 753,913 | 829,420 |
| Adjustments: | ||
| Adjustments to reconcile profit: | ||
| Depreciation expense | 71,631 | 83,665 |
| Amortization expense | 553 | 664 |
| Expected credit loss (gain) | 2,018 | 61 |
| Net gain on financial assets or liabilities at fair value through profit or loss | (1,648) | (1,821) |
| Interest expense | 23,534 | 24,508 |
| Interest income | (20,309) | (35,884) |
| Loss on disposal of property, plant and equipment | 139 | 8 |
| Total adjustments to reconcile profit | 75,918 | 71,201 |
| Changes in operating assets and liabilities: | ||
| Changes in operating assets: | ||
| Notes receivable | (2,425) | 3,919 |
| Accounts receivable | 22,143 | (19,454) |
| Other receivables | (3,370) | (1,223) |
| Inventories | (1,942) | 44,161 |
| Other current assets | 1,110 | (143) |
| Total changes in operating assets | 15,516 | 27,260 |
| Changes in operating liabilities: | ||
| Contract liabilities | 2,246 | 3,967 |
| Notes payable | (5,302) | 1,859 |
| Accounts payable | 16,535 | 65,580 |
| Other payables | (42,742) | 53,233 |
| Other current liabilities | (125) | (996) |
| Net defined benefit liabilities, non-current | (1,114) | (119) |
| Total changes in operating liabilities | (30,502) | 123,524 |
| Total changes in operating assets and liabilities | (14,986) | 150,784 |
| Total adjustments | 60,932 | 221,985 |
| Cash inflow (outflow) generated from operations | 814,845 | 1,051,405 |
| Interest received | 25,587 | 31,057 |
| Interest paid | (23,662) | (24,414) |
| Income taxes paid | (168,433) | (207,104) |
| Net cash flows from (used in) operating activities | 648,337 | 850,944 |
| Cash flows from investing activities: | ||
| Acquisition of financial assets at fair value through other comprehensive income | (10,000) | |
| Acquisition of financial assets at amortized cost | (7,097) | (41,713) |
| Acquisition of financial assets at fair value through profit or loss | (1,769,996) | (1,424,193) |
| Proceeds from disposal of financial assets at fair value through profit or loss | 1,746,959 | 1,303,901 |
| Acquisition of property, plant and equipment | (26,645) | (13,340) |
| Decrease in guarantee deposits paid | - | 33 |
| Acquisition of intangible assets | (358) | (1,048) |
| Acquisition of investment property | (188) | - |
| Increase in prepayments for business facilities | (15,960) | (20,601) |
| Net cash flows (used in) from investing activities | (83,285) | (196,961) |
| Cash flows from financing activities: | ||
| Repayments of long-term borrowings | (50,000) | (50,000) |
| Increase (decrease) in guarantee deposits received | (4,800) | 787 |
| Payment of lease liabilities | (1,356) | (1,760) |
| Cash dividends paid | (534,270) | (457,946) |
| Acquisition of ownership interests in subsidiaries | (11,065) | - |
| Net cash flows used in (from) financing activities | (601,491) | (508,919) |
| Effect of exchange rate changes on cash and cash equivalents | (5,935) | 23,952 |
| Net (decrease) increase in cash and cash equivalents | (42,374) | 169,016 |
| Cash and cash equivalents at beginning of period | 1,054,027 | 885,011 |
| Cash and cash equivalents at end of period | $ 1,011,653 | 1,054,027 |
The accompanying notes are an integral part of financial statements
Independent Auditors' Report
To the Board of Directors of Zippy Technology Corp.:
Opinion
We have audited the financial statements of Zippy Technology Corp. (“the Company”), which comprise the balance sheet as of December 31, 2025 and 2024, and the statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2025 and 2024, and its financial performance and its cash flows for the years ended December 31, 2025 and 2024 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 Auditing and Certification of Financial Statements by Certified Public Accountants and the auditing standards generally accepted in the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Certified Public Accountants Code of Professional Ethics in Republic of China (“the Code”), and we have fulfilled our other ethical responsibilities in accordance with the Code. 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 significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Revenue Recognition
Please refer to Note 4(o), and 6(q) for accounting policies and related disclosure information for revenue, respectively.
Description of the key audit matter:
The main business items of the Company are power supplies and micro switches. Sales transactions of the Company are mainly for export. There is uncertainty in the timing of export revenue recognition due to the long delivery period and the risk reward and ownership of the goods. The focus of attention is whether the timing of revenue recognition meets the transaction terms. Therefore, the timing for revenue recognition has been identified as a key audit matter in the current period.
16
How the matter was addressed in our audit:
In relation to the key audit matter above, we have performed certain key audit procedures that included assessing the appropriateness of the accounting policies and the design of related internal control for the timing of revenue recognition to the Company; conducting internal control tests to confirm whether the internal control is effectively implemented; executing the cut-off test for revenue recognition based on the transactions for a period of time before and after the report date.
Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance (including the Audit Committee) are responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the auditing standards generally accepted in the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with auditing standards generally accepted in the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
17
-
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
-
Obtain sufficient appropriate audit evidence regarding the financial information of the investment in other entities accounted for using the equity method to express an opinion on the 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 financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
The engagement partners on the audit resulting in this independent auditors' report are Rou-Lan Kuo and Ying-Ru Chen.
KPMG
Taipei, Taiwan (Republic of China)
March
4,
2026
Notes to Readers
The accompanying parent company only financial statements are intended only to present the financial position, financial performance and cash flows in accordance with the accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such parent company only financial statements are those generally accepted and applied in the Republic of China.
The independent auditors' 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' audit report and parent company only financial statements, the Chinese version shall prevail.
(ENGLISH TRANSLATION OF PARENT COMPANY ONLY FINANCIAL STATEMENTS ORIGINALLY ISSUED IN CHINESE)
ZIPPY TECHNOLOGY CORP.
BALANCE SHEETS
DECEMBER 31, 2025 AND 2024
(AMOUNTS EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)
| ASSETS | 2025.12.31 | 2024.12.31 | LIABILITIES AND EQUITY | 2025.12.31 | 2024.12.31 | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Amount | % | Amount | % | Amount | % | Amount | % | |||
| 11XX | Current Assets : | 21XX | Current Liabilities : | |||||||
| 1100 | Cash and cash equivalents (Notes (4) and (6)(a)) | $ 624,107 | 11 | 723,990 | 13 | 2130 | Current contract liabilities (Note (6)(q)) | $ 16,051 | - | 14,912 |
| 1110 | Current financial assets at fair value through profit or loss (Notes (4) and (6)(b)) | 190,261 | 4 | 181,069 | 3 | 2150 | Note payable | 5,201 | - | 10,941 |
| 1150 | Notes receivable, net (Notes (4) and (6)(c)) | 7,232 | - | 5,039 | - | 2170 | Accounts payable | 230,533 | 5 | 218,688 |
| 1170 | Accounts receivable, net (Notes (4) and (6)(c)) | 180,331 | 3 | 211,153 | 4 | 2181 | Accounts payable to related parties (Note (7)) | 54,014 | 1 | 48,591 |
| 1180 | Accounts receivable due from related parties, net (Notes (4), (6)(c) and (7)) | 96,653 | 2 | 97,073 | 2 | 2200 | Other payables | 159,396 | 3 | 203,287 |
| 1200 | Other receivables (Notes (4) and (6)(d)) | 6,644 | - | 3,694 | - | 2220 | Other payables due to related parties (Note (7)) | 14,184 | - | 14,701 |
| 130X | Inventories, net (Notes (4) and (6)(e)) | 425,139 | 8 | 418,820 | 7 | 2230 | Current tax liabilities (Notes (4) and (6)(n)) | 58,109 | 1 | 76,955 |
| 1410 | Other prepayments (Note (7)) | 3,644 | - | 2,967 | - | 2320 | Long-term borrowings, current portion (Note (6)(k) and (8)) | 50,000 | 1 | 50,000 |
| 1470 | Other current assets | 1,397 | - | 2,064 | - | 2399 | Other current liabilities, others | 6,700 | - | 7,960 |
| 1,535,408 | 28 | 1,645,869 | 29 | 594,188 | 11 | 645,585 | ||||
| 15XX | Non-current Assets : | 25XX | Non-current Liabilities : | |||||||
| 1517 | Non-current financial assets at fair value through other comp rehensive income (Notes (4) and (6)(b)) | 10,000 | - | - | - | 2540 | Long-term borrowings (Note (6)(k) and (8)) | 958,000 | 17 | 1,008,000 |
| 1550 | Investments accounted for using equity method, net (Notes (4) and (6)(f)) | 1,008,835 | 18 | 942,026 | 17 | 2570 | Deferred income tax liabilities (Notes (4) and (6)(n)) | 1,481 | - | 1,081 |
| 1600 | Property, plant and equipment (Notes (4), (6)(g) and (8)) | 918,906 | 17 | 930,182 | 17 | 2640 | Net defined benefit liability, non-current (Notes (4) and (6)(m)) | 850 | - | 9,042 |
| 1760 | Investment property, net (Notes (4), (6)(h) and (8)) | 2,006,743 | 36 | 2,016,984 | 36 | 2645 | Guarantee deposits received (Notes (6)(t)) | 18,058 | - | 21,148 |
| 1780 | Intangible assets (Notes (4) and (6)(i)) | 20,397 | - | 20,577 | - | 978,389 | 17 | 1,039,271 | ||
| 1840 | Deferred income tax assets (Notes (4) and (6)(n)) | 16,050 | - | 18,855 | 1 | Total Liabilities | 1,572,577 | 28 | 1,684,856 | |
| 1915 | Prepayments for business facilities | 33,573 | 1 | 29,350 | - | |||||
| 1920 | Guarantee deposits paid (Notes (6)(t)) | 84 | - | 84 | - | 31XX | Equity (Note (6)(e)) : | |||
| 4,014,588 | 72 | 3,958,058 | 71 | 3110 | Ordinary share | 1,526,487 | 28 | 1,526,487 | ||
| 3200 | Capital surplus | 138,051 | 2 | 135,562 | ||||||
| 3300 | Retained earnings | 2,312,051 | 42 | 2,243,847 | ||||||
| 3410 | Exchange Differences on Translation of Foreign Financial Statements | 830 | - | 13,175 | ||||||
| Total Equity | 3,977,419 | 72 | 3,919,071 | |||||||
| 1XXX | TOTAL ASSETS | $ 5,549,996 | 100 | 5,603,927 | 100 | 2-3XXX | TOTAL LIABILITIES AND EQUITY | $ 5,549,996 | 100 | 5,603,927 |
The accompanying notes are an integral part of financial statements
(ENGLISH TRANSLATION OF PARENT COMPANY ONLY FINANCIAL STATEMENTS ORIGINALLY ISSUED IN CHINESE)
ZIPPY TECHNOLOGY CORP.
STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(AMOUNTS EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)
| For the years ended December 31, | |||||
|---|---|---|---|---|---|
| 2025 | % | 2024 | % | ||
| 4000 | Total sales revenue (Notes (6)(q) and (7)) | $ 2,012,967 | 100 | 2,081,404 | 100 |
| 5110 | Total operating costs (Notes (6)(e)) | 1,178,864 | 59 | 1,163,107 | 56 |
| Gross profit from operations | 834,103 | 41 | 918,297 | 44 | |
| 5910 | Less: Unrealized profit (loss) from sales (Note (7)) | 29,996 | 1 | 35,281 | 2 |
| 5920 | Add: Realized profit (loss) from sales (Note (7)) | 35,281 | 2 | 42,064 | 2 |
| 5900 | Gross profit from operations | 839,388 | 42 | 925,080 | 44 |
| 6000 | Operating expenses (Notes (6)(m), (6)(r) and (7)): | ||||
| 6100 | Selling expenses | 43,718 | 2 | 49,663 | 2 |
| 6200 | Administrative expenses | 159,254 | 8 | 206,088 | 10 |
| 6300 | Research and development expenses | 62,533 | 3 | 72,346 | 3 |
| 6450 | Expected credit loss (gain) | 2,115 | - | 71 | - |
| Total operating expenses | 267,620 | 13 | 328,168 | 15 | |
| 6900 | Net operating income | 571,768 | 29 | 596,912 | 29 |
| 7000 | Non-operating income and expenses (Note (6)(s)): | ||||
| 7100 | Interest income | 15,800 | 1 | 32,437 | 2 |
| 7010 | Other income | 109,890 | 5 | 111,322 | 5 |
| 7020 | Other gains and losses, net | (920) | - | 56,070 | 3 |
| 7050 | Finance costs, net | (22,964) | (1) | (23,819) | (1) |
| 7375 | Share of profit (loss) of subsidiaries, associates and joint ventures accounted for using equity method | 60,569 | 3 | 45,181 | 2 |
| Total non-operating income and expenses | 162,375 | 8 | 221,191 | 11 | |
| 7900 | Profit (loss) from continuing operations before tax | 734,143 | 37 | 818,103 | 40 |
| 7950 | Less: Income tax expenses (Note (6)(n)) | 137,960 | 7 | 152,084 | 7 |
| 8200 | Profit | 596,183 | 30 | 666,019 | 33 |
| Other comprehensive income: | |||||
| 8310 | Components of other comprehensive income that will not be reclassified to profit or loss | ||||
| 8311 | Gains (losses) on remeasurements of defined benefit plans | 8,182 | - | 6,202 | - |
| 8330 | Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss | (254) | - | 53 | - |
| 8349 | Income tax related to components of other comprehensive income that will not be reclassified to profit or loss | (1,637) | - | (1,240) | - |
| Components of other comprehensive income that will not be reclassified to profit or loss | 6,291 | - | 5,015 | - | |
| 8360 | Components of other comprehensive income (loss) that will be reclassified to profit or loss | ||||
| 8361 | Exchange differences on translation of foreign financial statements | (12,345) | (1) | 41,403 | 2 |
| 8399 | Income tax related to components of other comprehensive income that will be reclassified to profit or loss | - | - | - | - |
| Components of other comprehensive income that will be reclassified to profit or loss | (12,345) | (1) | 41,403 | 2 | |
| Other comprehensive income | (6,054) | (1) | 46,418 | 2 | |
| 8500 | Total comprehensive income | $ 590,129 | 29 | 712,437 | 35 |
| 9750 | Basic earnings per share (NT dollars) (Notes (6)(p)) | $ | 3.91 | 4.36 | |
| 9870 | Diluted earnings per share (NT dollars) (Notes (6)(p)) | $ | 3.89 | 4.35 |
The accompanying notes are an integral part of financial statements
(ENGLISH TRANSLATION OF PARENT COMPANY ONLY FINANCIAL STATEMENTS ORIGINALLY ISSUED IN CHINESE)
ZIPPY TECHNOLOGY CORP.
STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(AMOUNTS EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)
| Capital Stock | Retained Earnings | Other Equity | ||||||
|---|---|---|---|---|---|---|---|---|
| Share Capital | Capital Surplus | Legal Reserve | Special Reserve | Unappropriated Retained Earnings | Total | Exchange Differences on Translation of Foreign Financial Statements | Total Equity | |
| Balance at January 1, 2024 | $ 1,526,487 | 135,562 | 924,672 | 23,960 | 1,082,127 | 2,030,759 | (28,228) | 3,664,580 |
| Net income (loss) for the period | - | - | - | - | 666,019 | 666,019 | - | 666,019 |
| Other comprehensive income (loss) for the period | - | - | - | - | 5,015 | 5,015 | 41,403 | 46,418 |
| Total comprehensive income (loss) for the period | - | - | - | - | 671,034 | 671,034 | 41,403 | 712,437 |
| Appropriation and distribution of retained earnings: | ||||||||
| Legal reserve appropriated | - | - | 54,082 | - | (54,082) | - | - | - |
| Special reserve appropriated | - | - | - | 4,268 | (4,268) | - | - | - |
| Cash dividends of ordinary shares | - | - | - | - | (457,946) | (457,946) | - | (457,946) |
| Balance at December 31, 2024 | 1,526,487 | 135,562 | 978,754 | 28,228 | 1,236,865 | 2,243,847 | 13,175 | 3,919,071 |
| Net income (loss) for the period | - | - | - | - | 666,019 | 666,019 | - | 666,019 |
| Other comprehensive income (loss) for the period | - | - | - | - | 5,015 | 5,015 | 41,403 | 46,418 |
| Total comprehensive income (loss) for the period | - | - | - | - | 671,034 | 671,034 | 41,403 | 712,437 |
| Appropriation and distribution of retained earnings: | ||||||||
| Legal reserve appropriated | - | - | 67,103 | - | (67,103) | - | - | - |
| Cash dividends of ordinary shares | - | - | - | - | (534,270) | (534,270) | - | (534,270) |
| Special reserve reversed | (28,228) | 28,228 | - | - | - | |||
| Difference between consideration and carrying amount of subsidiaries acquired or disposed | - | 2,489 | - | - | - | - | - | 2,489 |
| Balance at December 31, 2025 | $ 1,526,487 | 138,051 | 1,045,857 | - | 1,266,194 | 2,312,051 | 830 | 3,977,419 |
The accompanying notes are an integral part of financial statement
(ENGLISH TRANSLATION OF PARENT COMPANY ONLY FINANCIAL STATEMENTS ORIGINALLY ISSUED IN CHINESE)
ZIPPY TECHNOLOGY CORP.
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(AMOUNTS EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)
| 2025 | 2024 | |
|---|---|---|
| Cash flows from operating activities: | ||
| Profit before income tax | $ 734,143 | 818,103 |
| Adjustments: | ||
| Adjustments to reconcile profit before income tax to net cash provided by operating activities: | ||
| Depreciation expense | 49,927 | 60,062 |
| Amortization expense | 538 | 653 |
| Expected credit loss (gain) | 2,115 | 71 |
| Net loss (gain) on financial assets and liabilities at fair value through profit or loss | (1,069) | (798) |
| Interest expense | 22,964 | 23,819 |
| Interest income | (15,800) | (32,437) |
| Share of profit of subsidiaries, associates and joint ventures accounted for using equity method | (60,569) | (41,181) |
| Loss on disposal of property, plant and equipment | - | 1 |
| Unrealized profit (loss) from sales | 29,996 | 35,281 |
| Realized profit (loss) from sales | (35,281) | (42,064) |
| Total adjustments to reconcile profit | (7,179) | (593) |
| Changes in operating assets and liabilities: | ||
| Changes in operating assets: | ||
| Notes receivable | (2,078) | 2,415 |
| Accounts receivable | 28,592 | (11,440) |
| Accounts receivable due from related parties | 420 | (15,505) |
| Other receivables | (2,698) | (747) |
| Other receivables due from related parties | (153) | - |
| Inventories | (6,319) | 56,379 |
| Other prepayments | (677) | (2,119) |
| Other current assets | 1,012 | 203 |
| Total changes in operating assets | 18,099 | 29,186 |
| Changes in operating liabilities: | ||
| Contract liabilities | 1,139 | 3,654 |
| Notes payable | (5,290) | 1,546 |
| Accounts payable | 11,845 | 65,089 |
| Payables to related parties | 5,423 | 27,542 |
| Other payables | (43,521) | 50,806 |
| Other payables due to related parties | (517) | 3,374 |
| Other current liabilities | (1,260) | 887 |
| Net defined benefit liabilities, non-current | (10) | (7) |
| Total changes in operating liabilities | (32,191) | 152,891 |
| Total changes in operating assets and liabilities | (14,092) | 182,077 |
| Total adjustments | (21,271) | 181,484 |
| Cash inflow (outflow) generated from operations | 712,872 | 999,587 |
| Interest received | 15,741 | 32,409 |
| Interest paid | (23,092) | (23,725) |
| Income taxes paid | (155,238) | (198,583) |
| Net cash flows from (used in) operating activities | 550,283 | 809,688 |
| Cash flows from investing activities: | ||
| Acquisition of financial assets at fair value through other comprehensive income | (10,000) | - |
| Acquisition of financial assets at fair value through profit or loss | (8,123) | (143,252) |
| Increase in investments accounted for using equity method | (11,065) | - |
| Acquisition of property, plant and equipment income | (18,024) | (9,465) |
| Acquisition of intangible assets | (358) | (969) |
| Increase in prepayments for business facilities | (15,236) | (16,361) |
| Net cash flows (used in) from investing activities | (62,806) | (170,047) |
| Cash flows from financing activities: | ||
| Repayments of long-term borrowings | (50,000) | (50,000) |
| Increase (Decrease) in guarantee deposits received | (3,090) | 691 |
| Cash dividends paid | (534,270) | (457,946) |
| Net cash flows (used in) from financing activities | (587,360) | (507,255) |
| Net increase (decrease) in cash and cash equivalents | (99,883) | 132,386 |
| Cash and cash equivalents at beginning of period | 723,990 | 591,604 |
| Cash and cash equivalents at end of period | $ 624,107 | 723,990 |
The accompanying notes are an integral part of financial statements
Attachment 4
ZIPPY TECHNOLOGY CORP.
Profits Distribution Table
Year 2025
| Items | Unit: NTD$
Total amount |
| --- | --- |
| Beginning retained earnings | 663,719,820 |
| Add: Remeasurements of Defined Benefit Plans | 6,545,535 |
| Less: Other comprehensive income - Long-term investment | (254,069) |
| Add: Net profit after tax | 596,182,652 |
| Less: Appropriation to Legal Reserve | (60,247,412) |
| Add: Reversal of Special Reserve | - |
| Distributable net profit | 1,205,946,526 |
| Less: Distributable item | |
| Cash dividend to shareholders (NT$3.0 per share) | (457,946,064) |
| Unappropriated retained earnings | 748,000,462 |
Note 1: Outstanding Shares 152,648,688