| Property, Plant and Equipment |
Note 14. Property, Plant and Equipment (a) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Prepayments | | | | | | | | | | | | | | | | | | for purchase | | | | | | | | | | | | Research | | Office | | | | of equipment | | | | | | | | Building | | | | and | | furniture | | | | and | | | | | | | | and | | | | development | | and | | | | construction | | | | | Land | | improvements | | Machinery | | equipment | | equipment | | Others | | in progress | | Total | | | | (in thousands) | Cost | | | | | | | | | | | | | | | | | | Balance at January 1, 2024 | | $ | 37,653 | | 77,782 | | 94,732 | | 50,233 | | 14,991 | | 50,772 | | 4,428 | | 330,591 | Additions | | | — | | 651 | | 2,210 | | 5,998 | | 739 | | 4,844 | | 2,028 | | 16,470 | Transfers | | | — | | 1,610 | | 656 | | 28 | | — | | 453 | | (2,870) | | (123) | Disposals | | | — | | (15) | | (1,034) | | (185) | | (195) | | (13,596) | | — | | (15,025) | Effect of exchange rate changes | | | — | | — | | — | | (7) | | (51) | | (157) | | — | | (215) | Balance at December 31, 2024 | | | 37,653 | | 80,028 | | 96,564 | | 56,067 | | 15,484 | | 42,316 | | 3,586 | | 331,698 | Acquisitions through business combinations | | | 162 | | 55 | | 101 | | — | | 17 | | 31 | | — | | 366 | Additions | | | — | | 483 | | 1,551 | | 6,414 | | 1,116 | | 5,362 | | 7,027 | | 21,953 | Transfers | | | — | | — | | 939 | | — | | — | | — | | (939) | | — | Disposals | | | — | | — | | (59) | | (245) | | (168) | | (11,322) | | — | | (11,794) | Effect of exchange rate changes | | | (3) | | (2) | | (12) | | 3 | | 39 | | 106 | | (1) | | 130 | Balance at December 31, 2025 | | $ | 37,812 | | 80,564 | | 99,084 | | 62,239 | | 16,488 | | 36,493 | | 9,673 | | 342,353 | | | | | | | | | | | | | | | | | | | Accumulated Depreciation | | | | | | | | | | | | | | | | | | Balance at January 1, 2024 | | $ | — | | 37,300 | | 72,261 | | 43,850 | | 12,669 | | 34,402 | | — | | 200,482 | Depreciation for the year | | | — | | 4,394 | | 6,863 | | 3,823 | | 1,018 | | 5,923 | | — | | 22,021 | Disposals | | | — | | (15) | | (1,034) | | (185) | | (195) | | (10,504) | | — | | (11,933) | Effect of exchange rate changes | | | — | | (1) | | — | | (6) | | (43) | | (102) | | — | | (152) | Balance at December 31, 2024 | | | — | | 41,678 | | 78,090 | | 47,482 | | 13,449 | | 29,719 | | — | | 210,418 | Depreciation for the year | | | — | | 4,392 | | 4,856 | | 5,672 | | 985 | | 5,099 | | — | | 21,004 | Disposals | | | — | | — | | (59) | | (245) | | (168) | | (8,726) | | — | | (9,198) | Effect of exchange rate changes | | | — | | (2) | | (10) | | 3 | | 35 | | 72 | | — | | 98 | Balance at December 31, 2025 | | $ | — | | 46,068 | | 82,877 | | 52,912 | | 14,301 | | 26,164 | | — | | 222,322 | | | | | | | | | | | | | | | | | | | Carrying amounts | | | | | | | | | | | | | | | | | | At December 31, 2024 | | $ | 37,653 | | 38,350 | | 18,474 | | 8,585 | | 2,035 | | 12,597 | | 3,586 | | 121,280 | At December 31, 2025 | | $ | 37,812 | | 34,496 | | 16,207 | | 9,327 | | 2,187 | | 10,329 | | 9,673 | | 120,031 |
Others in property, plant and equipment includes mold equipment, leasehold improvements, right-of-use assets and other equipment. The Company incurred non-cash capital expenditures of $3,086 thousand, $3,121 thousand and $3,296 thousand in the years ended December 31, 2023, 2024 and 2025. The above items of property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives as follows: | | | Buildings | | 25 years | Building improvements | | 4-16 years | Machinery | | 4-10 years | Research and development equipment | | 2-6 years | Office furniture and equipment | | 3-8 years | Others | | 2-15 years |
For the years ended December 31, 2023, 2024 and 2025, the Company did not recognize any impairment loss on property, plant and equipment. Information on property, plant and equipment that were pledged to bank as collateral is provided in Note 26. (b) Lease Arrangements (i) Right-of-use assets Addition to right-of-use assets during 2024 and 2025 were $2,113 thousand and $839 thousand, respectively. The carrying amounts of right-of-use assets for offices and buildings lease included in Others in property, plant and equipment was $8,368 thousand and $4,125 thousand as of December 31, 2024 and 2025, respectively. Depreciation expense of right-of-use assets amounted to $4,609 thousand, $4,178 thousand and $2,519 thousand in 2023, 2024 and 2025, respectively. (ii) Lease liabilities | | | | | | | | December 31, | | December 31, | | | 2024 | | 2025 | | | | (in thousands) | Current portion (classified under other current liabilities) | | $ | 3,708 | | 1,752 | Non-current portion (classified under other non-current liabilities) | | | 3,452 | | 2,466 | | | $ | 7,160 | | 4,218 |
(iii) Additional lease information | | | | | | | | | | Year ended December 31, | | | 2023 | | 2024 | | 2025 | | | | (in thousands) | Expenses relating to short-term leases | | $ | 73 | | 65 | | 54 | Expenses relating to low-value asset leases | | $ | 368 | | 246 | | 211 | Expenses relating to variable lease payments not included in the measurement of lease liabilities | | $ | 2,195 | | 2,739 | | 2,438 |
The reconciliation of lease liabilities to cash flows arising from financing activities was as follows: | | | | | | | | Year ended December 31, | | | 2024 | | 2025 | | | | (in thousands) | Balance at beginning of year | | $ | 11,380 | | 7,160 | Change from financing activities: | | | | | | Payment of lease liabilities | | | (5,032) | | (3,160) | Total change from financing activities | | | (5,032) | | (3,160) | Other changes: | | | | | | New lease | | | 1,758 | | 840 | Interest expense | | | 216 | | 160 | Interest paid | | | (216) | | (160) | Lease modifications | | | (1,624) | | (1,577) | Effect of exchange rate changes | | | 678 | | 955 | Total liability-related other changes | | | 812 | | 218 | Balance at end of year | | $ | 7,160 | | 4,218 |
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