Tax Governance and Operational Performance
▍Tax Governance
The principles of Brogent's tax governance policy and transfer pricing policy are in accordance with the Income Tax Act and Regulations Governing Assessment of Profit-Seeking Enterprise Income Tax on Non-Arm's-Length Transfer Pricing. Transactions between affiliated enterprises are handled in accordance with the principles of arm's length transactions, and the internationally recognized transfer pricing guidelines announced by the Organization for Economic Cooperation and Development (OECD). We do not use tax havens for tax planning for the purpose of tax avoidance.
Brogent mainly operates and expands business in Taiwan and Asia. At the same time, we comply with the tax laws and regulations of the countries we operate in, and assesses potential tax risks. Under tax governance risk management, we actively respond to international trends in tax governance, support the government in implementing preferential tax policies, adhere to the principle of honest tax payment, and fulfill our obligations as a corporate citizen, in order to implement sustainable development and increase value for shareholders.
Brogent's board of directors is the highest decision-making unit for an effective tax risk management mechanism; The Finance Center is responsible for tax governance and implements the five principles of the tax policy. It also regularly reviews the implementation of tax management, and reports on relevant tax management to the board of directors every six months.
▍Implementation Plan for IFRS Sustainability Disclosure Standards
In response to the international trend of financialization of sustainability information and in accordance with the "Taiwan's Roadmap for Aligning with IFRS Sustainability Disclosure Standards" issued by the Financial Supervisory Commission R.O.C. (Taiwan) on August 17, 2023, and referring to the alignment with IFRS Sustainable Disclosure Standards outlined in the dedicated roadmap for listed and OTC companies, as provided in the "Dedicated Section for IFRS Sustainability Disclosure Alignment". Brogent will apply IFRS Sustainable Disclosure Standards in 2028 and disclose it in the Company's annual report in 2029. In order to smoothly align with the IFRS sustainability disclosure standards, Brogent will convene relevant departments to research and discuss the differences between the IFRS sustainability disclosure standards and Brogent's sustainability information disclosure, and gradually improve it to meet the disclosure requirements. The specific implementation schedule is to establish a standard implementation working group in 2026, complete the identification of sustainability-related risks and opportunities and related financial analysis in 2027, voluntarily disclose sustainability information in the annual report in advance in 2028, and officially disclose a special chapter on sustainability information in the annual report in 2029.
▍Operational Performance
In recent years, Brogent has continued to invest in a diverse range of simulator rides and integrated solutions. Its product lines include flying theaters, ultra-large to mid- and small-sized simulator rides, as well as personalized immersive simulators. The Company also possesses the ability to integrate thematic venue applications, enabling flexible configurations based on venue size and investment conditions. This helps customers shorten construction period and improve operational efficiency. This year, Brogent also actively developed new products, namely o-Ride X, v-Ride Explorer Plus, and o-Ride E, to continuously strengthen product portfolio completeness and medium- to long-term growth momentum. The results of existing technologies and solutions have been gradually transformed into tangible projects.
The flying theater "Niagara Takes Flight" at Niagara Parks, Canada, officially opened in August 2025. Brogent provided turnkey construction services, theme-based venue design, and film content production, fully demonstrating its integrated application capabilities. In terms of the Asian market, Brogent's "Air Cruise the Ride" flying theater built for Huis Ten Bosch in Japan was opened in September 2025, making it the first flying theater with the largest LED dome screen in Japan. In addition, at the end of 2025, Brogent secured an order from a major theme park operator in Vietnam for five different sets of large-sized simulator rides, demonstrating Brogent's achievements in promoting multiple product lines to a single customer. The Middle East also remains a key market where Brogent continues to deepen its presence. The "Flying Over Saudi" flying theater developed by Brogent was opened in December 2025. It is not only the first flying theater in the Middle East, but also the first flying theater in the world to use the 8K projection system. Featuring the original film "Flying Over Saudi Arabia," the flying theater presents local natural landscapes and cultural features, marking an important milestone for Brogent in the Middle East. Brogent has also participated in a number of large-sized entertainment and theme park tenders in the Middle East, progressively deepening its presence in the region.
In terms of digital content, in addition to promoting the existing video database to more markets, this year, we also announced a collaboration with TOHO Co., Ltd. to launch a new "Godzilla The Ride" flying theater film, providing high-quality immersive experience content to theme parks and flying theaters, enhancing venue attractiveness and entertainment value.
Looking forward, Brogent expects to launch simulator rides and flying theater projects across the Middle East, Asia, North America, and South America in the next two years. We will continue to deepen partnerships with top international IP holders and provide complete solutions for software and hardware integration and content licensing to steadily expand its global footprint.
In addition to the diverse business models mentioned above, Brogent continues to pay attention to the international situation and attaches even greater importance to risk assessment and management, so that it will be able to respond to the geopolitical tension and uncertainty of changes in the global economy and markets, as well as the potential impact of exchange rate and interest rate fluctuations on the Company's financial performance. We continued to strengthen foreign exchange hedging in 2025, and carried out natural hedging under appropriate risk regulations, which further assisted the management of interest rates and exchange rates.
The principles of Brogent's tax governance policy and transfer pricing policy are in accordance with the Income Tax Act and Regulations Governing Assessment of Profit-Seeking Enterprise Income Tax on Non-Arm's-Length Transfer Pricing. Transactions between affiliated enterprises are handled in accordance with the principles of arm's length transactions, and the internationally recognized transfer pricing guidelines announced by the Organization for Economic Cooperation and Development (OECD). We do not use tax havens for tax planning for the purpose of tax avoidance.
Brogent mainly operates and expands business in Taiwan and Asia. At the same time, we comply with the tax laws and regulations of the countries we operate in, and assesses potential tax risks. Under tax governance risk management, we actively respond to international trends in tax governance, support the government in implementing preferential tax policies, adhere to the principle of honest tax payment, and fulfill our obligations as a corporate citizen, in order to implement sustainable development and increase value for shareholders.
Brogent's board of directors is the highest decision-making unit for an effective tax risk management mechanism; The Finance Center is responsible for tax governance and implements the five principles of the tax policy. It also regularly reviews the implementation of tax management, and reports on relevant tax management to the board of directors every six months.
▍Implementation Plan for IFRS Sustainability Disclosure Standards
In response to the international trend of financialization of sustainability information and in accordance with the "Taiwan's Roadmap for Aligning with IFRS Sustainability Disclosure Standards" issued by the Financial Supervisory Commission R.O.C. (Taiwan) on August 17, 2023, and referring to the alignment with IFRS Sustainable Disclosure Standards outlined in the dedicated roadmap for listed and OTC companies, as provided in the "Dedicated Section for IFRS Sustainability Disclosure Alignment". Brogent will apply IFRS Sustainable Disclosure Standards in 2028 and disclose it in the Company's annual report in 2029. In order to smoothly align with the IFRS sustainability disclosure standards, Brogent will convene relevant departments to research and discuss the differences between the IFRS sustainability disclosure standards and Brogent's sustainability information disclosure, and gradually improve it to meet the disclosure requirements. The specific implementation schedule is to establish a standard implementation working group in 2026, complete the identification of sustainability-related risks and opportunities and related financial analysis in 2027, voluntarily disclose sustainability information in the annual report in advance in 2028, and officially disclose a special chapter on sustainability information in the annual report in 2029.
▍Operational Performance
In recent years, Brogent has continued to invest in a diverse range of simulator rides and integrated solutions. Its product lines include flying theaters, ultra-large to mid- and small-sized simulator rides, as well as personalized immersive simulators. The Company also possesses the ability to integrate thematic venue applications, enabling flexible configurations based on venue size and investment conditions. This helps customers shorten construction period and improve operational efficiency. This year, Brogent also actively developed new products, namely o-Ride X, v-Ride Explorer Plus, and o-Ride E, to continuously strengthen product portfolio completeness and medium- to long-term growth momentum. The results of existing technologies and solutions have been gradually transformed into tangible projects.
The flying theater "Niagara Takes Flight" at Niagara Parks, Canada, officially opened in August 2025. Brogent provided turnkey construction services, theme-based venue design, and film content production, fully demonstrating its integrated application capabilities. In terms of the Asian market, Brogent's "Air Cruise the Ride" flying theater built for Huis Ten Bosch in Japan was opened in September 2025, making it the first flying theater with the largest LED dome screen in Japan. In addition, at the end of 2025, Brogent secured an order from a major theme park operator in Vietnam for five different sets of large-sized simulator rides, demonstrating Brogent's achievements in promoting multiple product lines to a single customer. The Middle East also remains a key market where Brogent continues to deepen its presence. The "Flying Over Saudi" flying theater developed by Brogent was opened in December 2025. It is not only the first flying theater in the Middle East, but also the first flying theater in the world to use the 8K projection system. Featuring the original film "Flying Over Saudi Arabia," the flying theater presents local natural landscapes and cultural features, marking an important milestone for Brogent in the Middle East. Brogent has also participated in a number of large-sized entertainment and theme park tenders in the Middle East, progressively deepening its presence in the region.
In terms of digital content, in addition to promoting the existing video database to more markets, this year, we also announced a collaboration with TOHO Co., Ltd. to launch a new "Godzilla The Ride" flying theater film, providing high-quality immersive experience content to theme parks and flying theaters, enhancing venue attractiveness and entertainment value.
Looking forward, Brogent expects to launch simulator rides and flying theater projects across the Middle East, Asia, North America, and South America in the next two years. We will continue to deepen partnerships with top international IP holders and provide complete solutions for software and hardware integration and content licensing to steadily expand its global footprint.
In addition to the diverse business models mentioned above, Brogent continues to pay attention to the international situation and attaches even greater importance to risk assessment and management, so that it will be able to respond to the geopolitical tension and uncertainty of changes in the global economy and markets, as well as the potential impact of exchange rate and interest rate fluctuations on the Company's financial performance. We continued to strengthen foreign exchange hedging in 2025, and carried out natural hedging under appropriate risk regulations, which further assisted the management of interest rates and exchange rates.