v3.26.1
Equity
12 Months Ended
Dec. 31, 2025
Equity  
Equity

Note 20.  Equity

(a)Ordinary Shares

The Company’s authorized ordinary shares, with par value of $0.3 per share, were 1,000,000,000 shares at December 31, 2024 and 2025.

In accordance with the Company’s board of director’s resolution on December 4, 2024, the Company authorized a share buyback program. The program allows the Company to repurchase up to $20 million of the Company’s ADSs. The Company repurchased $5.3 million or 822,431 ADSs in the open market at an average price of $6.46 per ADS as of December 31, 2025.

The Company’s issued and fully paid ordinary shares, with par value of $0.3 per share, were 356,699,482 shares at December 31, 2024 and 2025. The outstanding ordinary shares were 349,826,828 shares and 348,851,828 shares at December 31, 2024 and 2025, respectively. 6,872,654 treasury shares and 7,847,654 treasury shares were held by the Company as of December 31, 2024 and 2025, respectively.

The Company’s ordinary shares have been quoted on the NASDAQ Global Select Market under the symbol “HIMX” in the form of ADSs and two ordinary shares represent one ADS with effect from August 10, 2009.

(b)Additional Paid-in Capital

Balance of additional paid-in capital as of December 31, 2024 and 2025 were as follows:

  ​ ​ ​

December 31, 

  ​ ​ ​

December 31, 

2024

2025

(in thousands)

From ordinary shares

$

93,341

 

93,341

From treasury shares

 

5,864

 

5,563

From share-based compensation

 

14,509

 

15,201

From share of changes in equities of associates and subsidiaries

 

1,662

 

1,745

$

115,376

 

115,850

(c)

Earnings distribution

As a holding company, the major asset of the Company is the 100% ownership interest in Himax Taiwan. Dividends received from the Company’s subsidiaries in Taiwan, if any, will be subjected to withholding tax under ROC law. The ability of the Company’s subsidiaries to pay dividends, repay intercompany loans from the Company or make other distributions to the Company may be restricted by the availability of funds, the terms of various credit arrangements entered into by the Company’s subsidiaries, as well as statutory and other legal restrictions. The Company’s subsidiaries in Taiwan are generally not permitted to distribute dividends or to make any other distributions to shareholders for any year in which it did not have either earnings or retained earnings (excluding reserve). In addition, before distributing a dividend to shareholders following the end of a fiscal year, a Taiwan company must recover any past losses, pay all outstanding taxes and set aside 10% of its annual net income (less prior years’ losses and outstanding taxes) as a legal reserve until the accumulated legal reserve equals its paid-in capital, and may set aside a special reserve.

The accumulated legal and special reserve provided by Himax Taiwan as of December 31, 2024 and 2025 amounted to $159,580 thousand and $167,891 thousand, respectively.

For the year ended December 31, 2025, the Company declared the cash dividend of $0.185 per share, totaling $64,492 thousand, and was paid on July 11, 2025.

(d)Accumulated other comprehensive income

Changes in accumulated other comprehensive income, net of tax, are as follows:

  ​ ​ ​

  ​ ​ ​

Unrealized

  ​ ​ ​

Defined 

  ​ ​ ​

Accumulated

Foreign

gains

benefit 

other

currency

(losses) on

pension

comprehensive

translation

securities

plans

income

(in thousands)

Beginning balance, January 1, 2023

$

(101)

(906)

789

(218)

Exchange differences arising on translation of foreign operations

 

(123)

(123)

Changes in fair value of financial assets

 

152

152

Remeasurement of defined benefit pension plans

 

9

9

Ending balance, December 31, 2023

 

(224)

 

(754)

 

798

 

(180)

Exchange differences arising on translation of foreign operations

 

(626)

(626)

Changes in fair value of financial assets

 

9,427

9,427

Remeasurement of defined benefit pension plans

 

Ending balance, December 31, 2024

(850)

 

8,673

 

798

 

8,621

Exchange differences arising on translation of foreign operations

273

273

Changes in fair value of financial assets

27,810

27,810

Remeasurement of defined benefit pension plans

Ending balance, December 31, 2025

$

(577)

 

36,483

 

798

 

36,704

(e)

Noncontrolling interest

Year ended December 31, 

  ​ ​ ​

2023

  ​ ​ ​

2024

  ​ ​ ​

2025

(in thousands)

Balance at the beginning of year

$

1,249

6,934

 

6,266

Equity attributable to non-controlling interests

 

 

Profit (Loss) for the year

(1,195)

 

15

 

1,338

Remeasurement of defined benefit pension plans

2

 

 

Share-based compensation expenses

40

 

78

 

41

New shares issued by subsidiaries

6,015

 

9

 

1,508

Dividend to noncontrolling interest from subsidiary

(442)

Acquired the controlling power from noncontrolling interest

811

Purchase of subsidiaries shares from noncontrolling interest

12

(764)

45

Exchange differences arising on translation of foreign operations

 

(6)

 

(9)

Balance at the end of year

$

6,934

6,266

 

8,747