Interim report
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VANGUARD INTERNATIONAL SEMICONDUCTOR CORPORATION CONSOLIDATED BALANCE SHEETS As of Jun. 30, 2026 and 2025 (Figures in Millions of New Taiwan Dollars (NTD) and U.S. Dollars (USD))* Jun. 30, 2026 Jun. 30, 2025 YoY ASSETS USD NTD % NTD % Move Inc(Dec)% Cash and Cash Designated for Hedging 1,269 40,506 18.5 57,779 36.8 (17,273) (29.9) Investments in Marketable Financial Instruments 133 4,245 1.9 3,124 2.0 1,121 35.9 Accounts Receivable 253 8,080 3.7 6,421 4.1 1,659 25.8 Inventories 246 7,848 3.6 6,409 4.1 1,439 22.5 Other Current Assets 214 6,823 3.1 5,369 3.4 1,454 27.1 Total Current Assets 2,115 67,501 30.8 79,102 50.4 (11,601) (14.7) Investments 256 8,176 3.7 7,813 5.0 363 4.7 Property, Plant and Equipment 4,145 132,305 60.4 60,266 38.4 72,039 119.5 Right-of-use Assets and Other Assets 351 11,204 5.1 9,912 6.3 1,292 13.0 Total Assets 6,867 219,187 100.0 157,093 100.0 62,094 39.5 LIABILITIES Accounts Payable & Other Current Liabilities 1,571 50,152 22.9 37,824 24.1 12,328 32.6 Other Long Term Liabilities 2,385 76,124 34.7 55,247 35.2 20,876 37.8 Total Liabilities 3,956 126,276 57.6 93,071 59.2 33,205 35.7 EQUITY Equity Attributable to Shareholders of the Parent Capital Stock 588 18,783 8.6 18,674 11.9 109 0.6 Capital Surplus 672 21,444 9.8 18,965 12.1 2,479 13.1 Retained Earnings - Legal Reserve 353 11,278 5.1 10,488 6.7 789 7.5 - Unappropriated Earnings 400 12,775 5.8 13,189 8.4 (414) (3.1) Other Equity (41) (1,305) (0.6) (3,376) (2.1) 2,071 (61.3) Equity Attributable to Shareholders of the Parent 1,973 62,976 28.7 57,941 36.9 5,035 8.7 Non - controlling interests 938 29,936 13.7 6,082 3.9 23,854 392.2 Total Equity 2,911 92,911 42.4 64,022 40.8 28,889 45.1 Total Liabilities & Equity 6,867 219,187 100.0 157,093 100.0 62,094 39.5 *Note: The exchange rate for the figures of Jun. 30, 2026 was NTD31.918. - 1 -
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VANGUARD INTERNATIONAL SEMICONDUCTOR CORPORATION CONSOLIDATED BALANCE SHEETS As of Jun. 30, 2026 and Mar. 31, 2026 (Figures in Millions of New Taiwan Dollars (NTD) and U.S. Dollars (USD))* Jun. 30, 2026 Mar. 31, 2026 QoQ ASSETS USD NTD % NTD % Move Inc(Dec)% Cash and Cash Designated for Hedging 1,269 40,506 18.5 44,353 20.2 (3,847) (8.7) Investments in Marketable Financial Instruments 133 4,245 1.9 2,184 1.0 2,060 94.3 Accounts Receivable 253 8,080 3.7 7,203 3.3 877 12.2 Inventories 246 7,848 3.6 7,505 3.4 343 4.6 Other Current Assets 214 6,823 3.1 9,929 4.5 (3,106) (31.3) Total Current Assets 2,115 67,501 30.8 71,174 32.5 (3,672) (5.2) Investments 256 8,176 3.7 8,827 4.0 (651) (7.4) Property, Plant and Equipment 4,145 132,305 60.4 128,157 58.5 4,148 3.2 Right-of-use Assets and Other Assets 351 11,204 5.1 11,048 5.0 156 1.4 Total Assets 6,867 219,187 100.0 219,206 100.0 (19) (0.0) LIABILITIES Accounts Payable & Other Current Liabilities 1,571 50,152 22.9 47,890 21.8 2,262 4.7 Other Long Term Liabilities 2,385 76,124 34.7 76,601 34.9 (478) (0.6) Total Liabilities 3,956 126,276 57.6 124,492 56.8 1,784 1.4 EQUITY Equity Attributable to Shareholders of the Parent Capital Stock 588 18,783 8.6 18,671 8.5 113 0.6 Capital Surplus 672 21,444 9.8 19,829 9.0 1,615 8.1 Retained Earnings - Legal Reserve 353 11,278 5.1 10,488 4.8 789 7.5 - Unappropriated Earnings 400 12,775 5.8 18,993 8.7 (6,218) (32.7) Other Equity (41) (1,305) (0.6) 434 0.2 (1,740) (400.5) Equity Attributable to Shareholders of the Parent 1,973 62,976 28.7 68,416 31.2 (5,441) (8.0) Non - controlling interests 938 29,936 13.7 26,298 12.0 3,637 13.8 Total Equity 2,911 92,911 42.4 94,714 43.2 (1,803) (1.9) Total Liabilities & Equity 6,867 219,187 100.0 219,206 100.0 (19) (0.0) *Note: The exchange rate for the figures of Jun. 30, 2026 was NTD31.918. - 1 -
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Vanguard International Semiconductor Corporation Consolidated Statements of Comprehensive Income For the Six Months Ended Jun. 30, 2026 and 2025 (Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars (USD) (1) Except for Per Share Amounts and Shares Outstanding) Six Months Ended Jun. 30 2026 % of 2025 YoY USD NTD Sales NTD Inc(Dec) % Net Revenue 847 26,776 100.0 23,649 13.2 Cost of Revenue (585) (18,501) (69.1) (16,771) 10.3 Gross Profit 262 8,275 30.9 6,877 20.3 Operating Expenses General and Administrative Expenses (52) (1,657) (6.2) (1,450) 14.2 Selling and Marketing Expenses (11) (341) (1.3) (250) 36.6 Research and Development Expenses (41) (1,290) (4.8) (1,043) 23.7 Total Operating Expenses (104) (3,288) (12.3) (2,742) 19.9 Income from Operations 158 4,988 18.6 4,135 20.6 Net Non-operating Income 24 762 2.8 922 (17.3) Income before Income Tax 182 5,750 21.5 5,057 13.7 Income Tax Expense (22) (693) (2.6) (638) 8.6 Net Income 160 5,057 18.9 4,419 14.5 Other Comprehensive Income 47 1,491 5.6 (3,283) - Comprehensive Income 207 6,549 24.5 1,136 476.6 Net Income Attributable to: Shareholders of the Parent 165 5,221 19.5 4,457 17.1 Non-controlling Interests (5) (164) (0.6) (38) 328.3 160 5,057 18.9 4,419 14.5 Diluted Earnings Per Share (2) 0.087 2.74 2.40 14.2 Weighted Average Outstanding Shares('M) (2) 1,930 1,859 Note: (1) The exchange rate for the figures of six months ended Jun. 30, 2026 was NTD31.607. (2) Total weighted average outstanding shares were 1,930,362K and 1,858,569K for the six months ended Jun. 30, 2026 and 2025, respectively. - 1 -
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Vanguard International Semiconductor Corporation Consolidated Statements of Comprehensive Income For the Three Months Ended Jun. 30, 2026, Mar. 31, 2026 and Jun. 30, 2025 (Expressed in Millions of New Taiwan Dollars (NTD) and U.S. Dollars (USD) (1) Except for Per Share Amounts and Shares Outstanding) Year over Year Comparison Sequential Comparison 2Q 2026 % of 2Q 2025 YoY 2Q 2026 % of 1Q 2026 QoQ USD NTD Sales NTD Inc(Dec) % USD NTD Sales NTD Inc(Dec) % Net Revenue 451 14,245 100.0 11,699 21.8 451 14,245 100.0 12,532 13.7 Cost of Revenue (305) (9,640) (67.7) (8,419) 14.5 (305) (9,640) (67.7) (8,861) 8.8 Gross Profit 146 4,604 32.3 3,280 40.4 146 4,604 32.3 3,671 25.4 Operating Expenses General and Administrative Expenses (27) (842) (5.9) (741) 13.5 (27) (842) (5.9) (815) 3.3 Selling and Marketing Expenses (6) (182) (1.3) (120) 51.1 (6) (182) (1.3) (159) 14.0 Research and Development Expenses (22) (680) (4.8) (522) 30.3 (22) (680) (4.8) (610) 11.5 Total Operating Expenses (54) (1,704) (12.0) (1,384) 23.1 (54) (1,704) (12.0) (1,584) 7.5 Income from Operations 92 2,901 20.4 1,897 53.0 92 2,901 20.4 2,087 39.0 Net Non-operating Income 13 412 2.9 485 (15.0) 13 412 2.9 350 17.8 Income before Income Tax 105 3,313 23.3 2,382 39.1 105 3,313 23.3 2,437 36.0 Income Tax Expense (13) (420) (2.9) (369) 13.7 (13) (420) (2.9) (273) 53.8 Net Income 92 2,894 20.3 2,013 43.8 92 2,894 20.3 2,164 33.7 Other Comprehensive Income (10) (315) (2.2) (3,403) (90.8) (10) (315) (2.2) 1,806 - Comprehensive Income 82 2,579 18.1 (1,390) - 82 2,579 18.1 3,970 (35.0) Net Income Attributable to: Shareholders of the Parent 94 2,975 20.9 2,043 45.6 94 2,975 20.9 2,246 32.4 Non-controlling Interests (3) (81) (0.6) (30) 166.8 (3) (81) (0.6) (82) (1.5) 92 2,894 20.3 2,013 43.8 92 2,894 20.3 2,164 33.7 Diluted Earnings Per Share (2) 0.049 1.56 1.10 41.8 0.049 1.56 1.18 32.2 Weighted Average Outstanding Shares('M) (2) 1,928 1,853 1,928 1,922 Note: (1) The exchange rate for the figures of three months ended Jun. 30, 2026 was NTD31.611. (2) Total weighted average outstanding shares were 1,927,860K, 1,921,720K and 1,853,289K for 2Q26, 1Q26 and 2Q25, respectively. - 1 -
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VANGUARD INTERNATIONAL SEMICONDUCTOR CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS For the Six Months Ended Jun. 30, 2026 and 2025 (Figures in Millions of New Taiwan Dollars (NTD) and U.S. Dollars (USD))* 2026 2025 USD NTD NTD Cash Flows from Operating Activities Income before income tax 182 5,750 5,057 Depreciation & Amortization 140 4,419 4,132 Income taxes paid (13) (424) (557) Changes in working capital & others 236 7,447 1,251 Net Cash Provided by Operating Activities 544 17,191 9,882 Cash Flows from Investing Activities (Increase) Decrease in financial assets (16) (498) 1,331 Acquisitions of PP&E and intangible assets (1,220) (38,552) (18,910) Received Government Subsidy - PP&E 90 2,859 6 Others 1 40 24 Net Cash Used in Investing Activities (1,144) (36,151) (17,549) Cash Flows from Financing Activities (Decrease) Increase in short-term loans (151) (4,788) 3,242 Increase in long-term loans 95 3,000 100 Issuance of bonds 347 10,964 0 Changes in Non-Controlling Interests 315 9,958 2,313 Others 21 649 (442) Net Cash Provided by Financing Activities 626 19,782 5,214 Net Increase (Decrease) in Cash and Cash Equivalents 26 822 (2,453) Effect of Exchange Rate Changes 2 49 (463) Cash and Cash Equivalents, Beginning of Period 1,254 39,635 60,695 Cash and Cash Equivalents, End of Period 1,282 40,506 57,779 *Note: The exchange rate for the figures of six months ended Jun. 30, 2026 was NTD31.607. - 1 -