Tax Management

Tax
Manegement

Gamania Groupdrovea surge in active players through offline signature events and localized operations. With continued cultivation of its digital entertainment landscape, its diversified businesses delivered steady revenue growth. In response to international trends and the increasingly complex landscape of cross-border business and taxation, the Board of Directors of Gamania approved revisions to the “Group Tax Policy.” The policy focuses on compliance with local tax laws and disclosure requirements, enhancement of shareholder value, effective risk management, and fulfillment of corporate responsibilities.

The Principle of Tax Governance

1

All operations comply with the applicable tax laws and regulations of the jurisdictions in which the Group and its subsidiaries operate, and taxes are paid in accordance with the law.
2

Related-party transactions are carefully assessed to ensure the reasonableness and consistency of profit allocation in accordance with the arm's length principle and to prevent the deliberate shifting of profits to low-tax jurisdictions.
3

Tax information is disclosed transparently in accordance with financial reporting standards and annual report disclosure requirements.
4

Tax risks are properly managed when tax decisions are made and implemented.
5

Upfront tax assessments are conducted to avoid double taxation, reasonably and lawfully reduce tax costs, and create shareholder value.
6

Relationships of mutual respect are established with tax authorities on the basis of mutual trust and information transparency.
7

Transactions between affiliated enterprises are conducted in accordance with the arm's length principle and the internationally recognized transfer pricing guidelines issued by the Organisation for Economic Co-operation and Development (OECD).
8

The Group does not engage in arrangements undertaken solely for tax avoidance purposes, such as shifting profits to low-tax jurisdictions or tax havens or using multi-tiered organizational structures that lack commercial substance.

Financial information

Unit: NTD millions

	2024	2025
Operating income	11,077	8,867
Operating gross profit	3,912	2,467
Net profit of current term	2,068	(269)
EPS (NTD)	11.78	(1.53)
Debt ratio (%)	28.07%	46.12%

Unit: NTD millions

Direct economic value generated and distributed		2025
Direct economic value generated (A)	a. Net sales	8,867
	b. Financial investments	25
	c. Revenue from sale of assets	0
Economic value distributed (B)	a. Operating costs	6,400
	b. Employee wages and benefits	1,423
	c. Dividend distribution	175
	d. Payment of interest	11
	e. Payments to government	53
	f. Community investments	31
Economic value retained (C)	-	799

【 The Group's tax information 】

Unit: NTD thousand

	2024	2025
Pre-tax net profit	2,186,299	(418,677)
Book tax amount	114,624	(143,355)
Effective tax rate on book amount (%)	5.24%	34.24%
Income tax payment	45,678	52,560
Effective tax rate on cash (%)	2.09%	(12.55%)

Note: The 2024 data were primarily affected by non-recurring tax adjustments arising from gains on the disposal of subsidiaries and asset impairments.

【 Tax reporting by each tax jurisdiction 】

Unit: NTD thousand

Tax jurisdiction	Major business activities	Number of employees	Revenue	Pre-tax profit	Income tax payable	Income tax payment
Taiwan	Game operations, information software services and sales, game point sales, electronic payments, e-commerce platform, customer service, TB program production, and advertising services	987	8,106,011	(803,388)	7,994	45,098
Hong Kong	Game operations, information software service and distribution, sales of game points	20	1,744,597	(39,103)	(17,066)	0
China		31	432,773	31,289	516	7,462
Singapore		0	38,641	4,550	4,745	0
Japan		1	56,622	(808)	0	0

Tax Management

The Principle of Tax Governance

All operations comply with the applicable tax laws and regulations of the jurisdictions in which the Group and its subsidiaries operate, and taxes are paid in accordance with the law.

Related-party transactions are carefully assessed to ensure the reasonableness and consistency of profit allocation in accordance with the arm's length principle and to prevent the deliberate shifting of profits to low-tax jurisdictions.

Tax information is disclosed transparently in accordance with financial reporting standards and annual report disclosure requirements.

Tax risks are properly managed when tax decisions are made and implemented.

Upfront tax assessments are conducted to avoid double taxation, reasonably and lawfully reduce tax costs, and create shareholder value.

Relationships of mutual respect are established with tax authorities on the basis of mutual trust and information transparency.

Transactions between affiliated enterprises are conducted in accordance with the arm's length principle and the internationally recognized transfer pricing guidelines issued by the Organisation for Economic Co-operation and Development (OECD).

The Group does not engage in arrangements undertaken solely for tax avoidance purposes, such as shifting profits to low-tax jurisdictions or tax havens or using multi-tiered organizational structures that lack commercial substance.

Financial information

【 The Group's tax information 】

【 Tax reporting by each tax jurisdiction 】