Stock Code：4133

Abnova (Taiwan) Corporation Parent Company Only Financial Statements

With Independent Auditors’ Report

For the Years Ended December 31, 2024 and 2023

Address ： 9th Fl., No. 108, Jhouzih St., Neihu District, Taipei City Telephone ： (02)8751-1888

Notice to readers.

THIS IS A TRANSLATION OF THE FINANCIAL STATEMENTS (THE “FINANCIAL STATEMENTS”) OF ABNOVA (TAIWAN) CORPORATION (THE “COMPANY”). THIS TRANSLATION IS INTENDED FOR REFERENCE ONLY AND NOTHING ELSE, THE COMPANY HEREBY DISCLAIMS ANY AND ALL LIABILITIES WHATSOEVER FOR THE TRANSLATION. THE CHINESE TEXT OF THE FINANCIAL STATEMENTS SHALL GOVERN ANY AND ALL MATTERS RELATED TO THE INTERPRETATION OF THE SUBJECT MATTER STATED HEREIN.

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Contents 1. Cover Page 2. Table of Contents 3. Independent Auditors’ Report 4. Balance Sheets 5. Statements of Comprehensive Income 6. Statements of Changes in Equity 7. Statements of Cash Flows 8. Notes to the Parent Company Only Financial Statements (1) Company history (2) Approval date and procedures of the financial statements (3) New standards, amendments and interpretations adopted (4) Summary of significant accounting policies (5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty (6) Explanation of significant accounts (7) Related-party transactions (8) Pledged assets (9) Commitments and contingencies (10) Losses due to major disasters (11) Subsequent events (12) Other (13) Other disclosures 1. Information on significant transactions 2. Information on investees 3. Information on investment in Mainland China 4. Major shareholders (14) Segment information 9. Statements of major accounting items	Page
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Contents
1. Cover Page
2. Table of Contents
3. Independent Auditors’ Report
4. Balance Sheets
5. Statements of Comprehensive Income
6. Statements of Changes in Equity
7. Statements of Cash Flows
8. Notes to the Parent Company Only Financial Statements
(1) Company history
(2) Approval date and procedures of the financial statements
(3) New standards, amendments and interpretations adopted
(4) Summary of significant accounting policies
(5) Significant accounting assumptions and judgments, and major sources of
estimation uncertainty
(6) Explanation of significant accounts
(7) Related-party transactions
(8) Pledged assets
(9) Commitments and contingencies
(10) Losses due to major disasters
(11) Subsequent events
(12) Other
(13) Other disclosures
1. Information on significant transactions
2. Information on investees
3. Information on investment in Mainland China
4. Major shareholders
(14) Segment information
9. Statements of major accounting items

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Independent Auditors’ Report

To the Board of Directors of Abnova (Taiwan) Corporation:

Opinion

We have audited the financial statements of Abnova (Taiwan) Corporation (“the Company”), which comprise the balance sheets as of December 31, 2024 and 2023, the statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statement section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matter

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. The key audit matters we judge that shall be communicated in the audit report are as follows:

1. Inventory valuation

Please refer to Note 4(7) “Inventories”; Note 5(1) “Significant accounting assumptions and judgments, and major sources of estimation uncertainty”, and Note 6(5) “Inventories”.

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Description of key audit matter:

The major business of the Company is the manufacturing and sales of antibody, protein, test reagents and testing instruments. Inventories are measured at the lower of cost and net realizable value. Due to the longer life cycle of the products, the management considers factors such as product circulation, exposure, preservation and industry information to evaluate the net realizable value of inventories. As the Company has large amount of inventories and a large number of items, and the net realizable value used in the above-mentioned evaluation involves subjective judgment, the evaluation of loss allowance for inventory valuation has been listed as the key audit matter of the year.

Our principal audit procedures included:

The key audit procedures for the above-mentioned key audit matter based on the understanding of the industrial characteristics of the Company include obtaining statistical information on the sales time and sales status of the products on the shelves in each year provided by the management in the subsequent years to evaluate the rationality of the policy used to recognize the inventory valuation loss; understanding the Company’s inventory management process, reviewing the annual inventory plan and participating in the annual inventory check to evaluate the effectiveness of the management’s inventory control; obtaining the inventory net realizable value calculation sheet, and spot check the correctness of the calculation.

Responsibilities of management and those charged with governance for the financial statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance (including the Audit Committee) are responsible for overseeing the Company’s financial reporting process.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with auditing standards, we exercise professional judgment and professional skepticism throughout the audit. We also:

A. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as

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fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

B. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
C. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
D. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company’s to cease to continue as a going concern.
E. Evaluate the overall presentation, structure and content of the financial reports, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
F. Obtain sufficient and appropriate audit evidence regarding the financial information of the investment in other entities accounted for using the equity method to express an opinion on these financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

KPMG

Auditors：

Securities ：Financial-Supervisory-Securitie Competent s-Auditing -1080303300 Authority Financial-Supervisory-Securitie Approved-certi s-Auditing-1070304941 fied No. February 26, 2025

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Abnova (Taiwan) Corporation

Balance Sheets

December 31, 2024 and 2023

(Expressed in Thousands of New Taiwan Dollars)

December 31, 2024 Amount % $ 439,796 31 43,066 3 6,803 1 451,886 32 16,746 1 958,297 68 - - 8,994 1 252,184 18 23,936 2 62,687 4 91,258 7 3,651 - 442,710 32 $ 1,401,007 100	December 31,	December 31, 2024 Amount % $ 2,483 - 18,982 1 32,300 2 5,508 1 5,403 -	December 31,	2023 % - 2 3 - -
	Amount 360,329 39,849 4,825 408,302 16,661

			Amount 2,349 14,935 31,630 5,105 5,787

958,297 68	829,966
- - 8,994 1 252,184 18 23,936 2 62,687 4 91,258 7 3,651 -	- 87,431 257,749 7,649 69,640 95,274 5,238
		64,676 4	59,806	5
		8,006 1 18,498 1 427 -	3,783 2,601 438	- - -
		26,931 2	6,822	-
		91,607 6	66,628	5
		605,536 43 474,527 34 102,871 8 12,199 1 121,859 9 (7,592) (1)	605,536 474,527 98,565 11,907 107,983 (12,199)	45 35 7 1 8 (1)
442,710 32	522,981
$ 1,401,007 100	1,352,947	1,309,400 94	1,286,319	95
		$ 1,401,007 100	1,352,947	100

(See accompanying notes to financial statements.) Manager: JIH PEI JU

Chairman: WILBER HUANG

Accounting supervisor: CHANG YA PING

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Abnova (Taiwan) Corporation Statements of Comprehensive Income For the years ended December 31, 2024 and 2023 (Expressed in Thousands of New Taiwan Dollars)

2024	% 100 (54)	2023	% 100 (55)
Amount $ 354,700 (191,998)		Amount 380,593 (208,137)
162,702	46	172,456	45
(42,220) (46,212) (40,025) 687	(12) (13) (11) -	(45,261) (43,437) (38,396) 3,053	(12) (11) (10) 1
(127,770)	(36)	(124,041)	(32)
34,932	10	48,415	13
16,852 44 22,017 (118) (577)	5 - 6 - -	10,332 152 517 (140) (10,799)	3 - - - (3)
38,218	11	62	-
73,150 11,543	21 3	48,477 4,799	13 1
61,607	18	43,678	12
465 -	- -	(618) -	- -
465	-	(618)	-
4,607 -	1 -	(292) -	- -
4,607	1	(292)	-
5,072	1	(910)	-
$ 66,679	19	42,768	12
$	1.02		0.72
$	1.02		0.72

(See accompanying notes to financial statements.)

Chairman: WILBER HUANG Manager: JIH PEI JU

Accounting supervisor: CHANG YA PING

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Abnova (Taiwan) Corporation Statements of Changes in Equity For the years ended December 31, 2024 and 2023

(Expressed in Thousands of New Taiwan Dollars)

Balance at January 1, 2023 Profit Other comprehensive income Total comprehensive income Appropriation and distribution of retained earnings: Legal reserve Special reserve Cash dividends on ordinary shares Balance at December 31, 2023 Profit Other comprehensive income Total comprehensive income Appropriation and distribution of retained earnings: Legal reserve Special reserve Cash dividends on ordinary shares Balance at December 31, 2024	Shares Ordinary shares $ 605,536 - - - - - - 605,536 - - - - - - $ 605,536	Capital surplus 474,527 - - - - - - 474,527 - - - - - - 474,527	Legal reserve 85,642 - - - 12,923 - - 98,565 - - - 4,306 - - 102,871	Retained earnings	Retained earnings	Unappropriated retained earnings 138,196 43,678 (618) 43,060 (12,923) (11,907) (48,443) 107,983 61,607 465 62,072 (4,306) (292) (43,598) 121,859	Other equity interest Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income Exchange differences on translation of foreign financial statements (6,962) (4,945) - - (292) - (292) - - - - - - - (7,254) (4,945) - - 4,607 - 4,607 - - - - - - - (2,647) (4,945)	Total equity 1,291,994 43,678 (910)
					Special reserve - - - 11,907 - 11,907 - 292 - 12,199
								42,768
								- - (48,443)
								1,286,319 61,607 5,072
								66,679
								- - (43,598)
								1,309,400

(See accompanying notes to financial statements.)

Chairman: WILBER HUANG

Accounting supervisor: CHANG YA PING

Manager: JIH PEI JU

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Abnova (Taiwan) Corporation Statements of Cash Flows For the years ended December 31, 2024 and 2023 (Expressed in Thousands of New Taiwan Dollars)

Cash flows from operating activities: Profit before tax Adjustments: Adjustments to reconcile profit (loss) Depreciation expenses Amortization expenses Expected credit reversal gains Interest expense Interest income Share of subsidiaries, associates and joint ventures losses accounted for using equity method Gains on disposals of property, plant and equipment Total adjustments to reconcile profit (loss) Changes in operating assets and liabilities: Changes in operating assets: Accounts and notes receivable Other receivables Inventories Other current assets Total changes in operating assets Changes in operating liabilities: Contract liabilities Accounts payable Other payables Other current liabilities Total changes in operating liabilities Total changes in operating assets and liabilities Total adjustments Cash inflow generated from operations Interest received Interest paid Income taxes paid Net cash flows from operating activities Cash flows used in investing activities: Acquisition of investments accounted for using equity method Disposal of investments accounted for using equity method Cash refund from capital reduction of investees accounted for using equity method Acquisition of property, plant and equipment Disposal of property, plant and equipment Acquisition of intangible assets Other financial assets Other non-current assets Other non-current liabilities Net cash flows (outflows) used in investing activities Cash flows from financing activities: Repayment of lease principles Cash dividends paid Net cash flows from financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period	2024 $ 73,150 19,825 10,050 (687) 118 (16,852) 577 -	2023 48,477 20,744 10,820 (3,053) 140 (10,332) 10,799 (160)
	13,031	28,958
	(2,530) 93 (45,584) (74)	23,449 (317) (14,548) (7,811)
	(48,095)	773
	134 4,047 670 (384)	(273) (60) (4,911) 1,232
	4,467	(4,012)
	(43,628)	(3,239)
	(30,597)	25,719
	42,553 16,866 (118) (5,389)	74,196 9,878 (140) (7,433)
	53,912	76,501
	- - 82,467 (6,620) - (1,097) (11) (81) (11)	(1,300) 342 - (19,566) 160 (9,320) 791 5,059 (88)
	74,647	(23,922)
	(5,494) (43,598)	(6,778) (48,443)
	(49,092)	(55,221)
	79,467 360,329	(2,642) 362,971
	$ 439,796	360,329

(See accompanying notes to financial statements.)

Chairman: WILBER HUANG

Accounting supervisor: CHANG YA PING

Manager: JIH PEI JU

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Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

Abnova (Taiwan) Corporation Notes to the Financial Statements For the years ended December 31, 2024 and 2023 (Expressed in thousands of New Taiwan Dollars, unless specified otherwise)

1. Company history

Abnova (Taiwan) Corporation (the “Company”) was legally established with the approval of the Ministry of Economic Affairs (R.O.C.) on January 4, 2002, with registered address at 9th Fl., No. 108, Jhouzih St., Neihu District, Taipei City, Taiwan (R.O.C.). The Company has been actively developing, manufacturing, and selling monoclonal antibody, polyclonal antibody, proteins, medical inspection instruments and testing reagents, which are mainly antibody reagents, antibody chips or related products provided to and used by academic, research institutions or pharmaceutical factories, etc. Antibodies are the most important means for understanding proteins and their functions. The products of the Company help to study the relationship between protein changes in the process of cancer, infectious diseases, metabolism and endocrine diseases, and then apply to the development of medical inspection reagents and drugs.

2. Approval date and procedures of the financial statements

These parent company only financial statements were authorized for issue by the Board of Directors on February 26, 2025.

3. New standards, amendments and interpretations adopted

(1) The impact of the International Financial Reporting Standards (“IFRSs”) endorsed by the Financial Supervisory Commission, R.O.C. (“FSC”) which have already been adopted. The Company has initially adopted the following new amendments, which do not have a significant impact on its financial statements, from January 1, 2024.
‧ Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”
‧ Amendments to IAS 1 “Non-current Liabilities with Covenants
‧ Amendments to IAS 7 and IFRS 7 “Supplier Finance Arrangements”
‧ Amendments to IFRS 16 “Lease Liability in Sale and Leaseback”
(2) The impact of not yet adopting IFRS accounting standards endorsed by the FSC The Company assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2025, would not have a significant impact on its financial statements.
‧ Amendments to IAS 21 “Lack of Exchangeability”
(3) The impact of IFRS issued by IASB but not yet endorsed by the FSC
Standards and interpretations issued and amended by the IASB, but not yet endorsed by the FSC which may be relevant to the Group are as follows:

New or amended standards Major amendments Effective date by IASB IFRS 18 “Presentation and The new standard introduces three categories January 1, 2027 Disclosure in Financial of income and expenses, two income Statements” statement subtotals and one single note on management performance measures. The three amendments, combined with enhanced guidance on how to disaggregate information, set the stage for better and more consistent information for users, and

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Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

New or amended standards	Major amendments will affect all the entities. ‧ A more structured income statement: under current standards, companies use different formats to present their results, making it difficult for investors to compare financial performance across companies. The new standard promotes a more structured income statement, introducing a newly defined “operating profit” subtotal and a requirement for all income and expenses to be allocated between three new distinct categories based on a company’s main business activities. ‧ Management performance measures (MPM): the new standard introduces a definition for management performance measures, and requires companies to explain in a single note to the financial statements why the measure provides useful information, how it is calculated and reconcile it to an amount determined under IFRS accounting standards. ‧ Greater disaggregation of information: the new standard includes enhanced guidance on how companies group information in the financial statements. This includes guidance on whether information is included in the primary financial statements or is further disaggregated in the notes.	Effective date by IASB

The Company continues to evaluate the impact of the aforementioned standards and interpretations on the financial position and financial performance; the relevant impact will be disclosed upon completion of the assessment.

The Company assesses that the adoption of the following other new or amended standards, not yet endorsed by the FSC, would not have a significant impact on its financial statements.

‧ Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”

‧ IFRS 17 “Insurance Contracts” and amendments to IFRS 17 “Insurance Contracts”

‧ IFRS 19 “Subsidiaries without Public Accountability: ”

‧ Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments”

‧ Annual Improvements to IFRS Standards

‧ Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”

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Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

4. Summary of significant accounting policies

The significant accounting policies presented in the financial statements are summarized below. Except for those specifically indicated, the following accounting policies were applied consistently throughout the periods presented in the financial statements.

(1) Statement of compliance

These financial statements have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” (hereinafter referred to as the Regulations).

(2) Basis of preparation
A. Basis of measurement

Except for the following significant accounts, the financial statements have been prepared on a historical cost basis:

(a) Financial assets at fair value through other comprehensive income are measured at fair value; and
(b) The defined benefit liabilities (assets) are measured at fair value of the plan assets less the present value of the defined benefit obligation, limited as explained in Note 4(15).
B. Functional and presentation currency
The functional currency of each entity of the Company is determined based on the primary economic environment in which the entity operates. The financial statements are presented in New Taiwan Dollars, which is the Company’s functional currency. All financial information presented in New Taiwan Dollars has been rounded to the nearest thousand.
(3) Foreign currency
A. Foreign currency transactions
Transactions in foreign currencies are translated into the respective functional currencies of Company entities at the exchange rates at the dates of the transactions. At the end of each subsequent reporting period, monetary items denominated in foreign currencies are translated into the functional currencies using the exchange rate at that date. Non-monetary items denominated in foreign currencies that are measured at fair value are translated into the functional currencies using the exchange rate at the date that the fair value was determined. Non-monetary items denominated in foreign currencies that are measured based on historical cost are translated using the exchange rate at the date of the transaction.
Exchange differences are generally recognized in profit or loss, except for those differences relating to the following, which are recognized in other comprehensive income:
(a) an investment in equity securities designated as at fair value through other comprehensive income;
(b) a financial liability designated as a hedge of the net investment in a foreign operation to the extent that the hedge is effective; or
(c) qualifying cash flow hedges to the extent that the hedges are effective.

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Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

B. Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into the New Taiwan Dollars at the exchange rates at the reporting date. The income and expenses of foreign operations are translated into the New Taiwan Dollars at the average exchange rate. Exchange differences are recognized in other comprehensive income.

When a foreign operation is disposed of such that control, significant influence, or joint control is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. When the Company disposes only a part of its interest in a subsidiary that includes a foreign operation while retaining control, the relevant proportion of the cumulative amount is reattributed to non-controlling interests. When the Company disposes only a part of its investment in an associate or joint venture that includes a foreign operation while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss.

When the settlement of a monetary receivable from or payable to a foreign operation is neither planned nor likely to occur in the foreseeable future, Exchange differences arising from such a monetary item that are considered to form part of the net investment in the foreign operation are recognized in other comprehensive income.

(4) Classification of current and non-current assets and liabilities
An asset is classified as current under one of the following criteria, and all other assets are classified as non-current:
A. It is expected to be realized, or intended to be sold or consumed, in the normal operating cycle;
B. It is held primarily for the purpose of trading;
C. It is expected to be realized within twelve months after the reporting period; or
D. The asset is cash or cash equivalent (as defined in IAS7) unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

A liability is classified as current under one of the following criteria, and all other liabilities are classified as non-current:

A. It is expected to be settled in the normal operating cycle;
B. It is held primarily for the purpose of trading;
C. The liability is due to be settled within twelve months after the reporting period ; or
D. The Company does not have the right at the end of the reporting period to defer the settlement of the liability for at least twelve months after the reporting period .
(5) Cash and cash equivalents
Cash comprises cash on hand and demand deposits. Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Time deposits which meet the above definition and are held for the purpose of meeting short term cash commitments rather than for investment or other purposes should be recognized as cash equivalents.

The periods of time deposits held by the Group are within one year from the date of acquisition, which are held for meeting short-term cash commitments, can be converted into a known amount of cash at any time, with only an insignificant risk of value changes. Therefore, time deposits are classified under cash and cash equivalents.

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Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

(6) Financial instruments

Accounts receivables and debt securities issued are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the Company becomes a party to the contractual provisions of the instrument. A financial asset (unless it is an accounts receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue. An accounts receivable without a significant financing component is initially measured at the transaction price.

A. Financial assets
All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

On initial recognition, a financial asset is classified as measured at: amortized cost; Fair value through other comprehensive income (FVOCI) – debt investment; FVOCI – equity investment; or FVTPL. Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

(a) Financial assets measured at amortized cost
A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:
‧ It is held within a business model whose objective is to hold assets to collect contractual cash flows; and
‧ Its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
These assets are subsequently measured at amortized cost, which is the amount at which the financial asset is measured at initial recognition, plus/minus, the cumulative amortization using the effective interest method, adjusted for any loss allowance. Interest income, foreign exchange gains and losses, as well as impairment, are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.
(b) Financial assets measured at fair value through other comprehensive income On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment’s fair value in other comprehensive income. This election is made on an instrument-by-instrument basis. Equity investments at FVOCI are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in other comprehensive income and are never reclassified to profit or loss.
Dividend income is recognized in profit or loss on the date on which the Company’s right to receive payment is established (usually the ex-dividend date).
(c) Impairment of financial assets
The Company recognizes loss allowances for expected credit losses (ECL) on financial assets measured at amortized cost (including cash and cash equivalents, notes and accounts receivables, other receivable, guarantee deposit paid and other financial assets).

The Company measures loss allowances at an amount equal to lifetime ECL, except for the following which are measured as 12-month ECL:

‧ Debt securities that are determined to have low credit risk at the reporting date; and
‧ Other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.

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Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

Loss allowances for accounts receivables are always measured at an amount equal to lifetime ECL.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECL, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis based on the Company’s historical experience and informed credit assessment as well as forward-looking information.

Lifetime expected credit losses are the expected credit losses resulted from all the possible defaults occurring on the financial instrument during its expected life.

12-month expected credit losses are the expected credit losses resulted from all the possible defaults occurring on the financial instrument in the 12 months after the reporting date (or a shorter period if the expected life of a financial statement is less than 12 months).

The maximum period to consider when measuring expected credit losses is the maximum contractual period over which the Company is exposed to credit risk.

ECLs are probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the Company in accordance with the contract and the cash flows that the Company expects to receive). ECLs are discounted at the effective interest rate of the financial asset.

At each reporting date, the Company assesses whether financial assets carried at amortized cost are credit-impaired. A financial asset is 'credit-impaired' when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Evidence that a financial asset is credit-impaired includes the following observable data:

‧ Significant financial difficulty of the borrower or issuer;

‧ A breach of contract such as a default or being some time past due;
‧ The lender of the borrower, for economic or contractual reasons relating to the borrower's financial difficulty, having granted to the borrower a concession that the lender would not otherwise consider;
‧ It is probable that the borrower will enter bankruptcy or other financial reorganization; or

‧ The disappearance of an active market for that financial assets because of financial difficulties. Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets.

The gross carrying amount of a financial asset is written off when the Company has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. For corporate accounts, the Company individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Company expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Company’s procedures for recovery of amounts due.

(d) Derecognition of financial assets

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

The Company enters into transactions whereby it transfers assets recognized in its statement of balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognized.

B. Financial liabilities and equity instruments

～13～

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

(a) Classification of liabilities and equity

The Company shall classify the debt and equity instruments issued by the Company as a financial liability or an equity instrument in accordance with the substance of the contractual arrangement and the definition of a financial liability and an equity instrument.

(b) Equity transactions

An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.

Equity instruments issued by the Group are recognized by the amounts equal to proceeds deducting direct issuing cost.

Financial liabilities are measured at amortized costs.

Other financial assets are measured at amortized costs by effective interest rate method subsequently. The interest expenses and exchange gains or losses are recognized in profit or loss. Any gains or losses at derecognition are recognized in profit or loss as well.

(d) Derecognition of financial liabilities
The Company shall remove a financial liability from its statement of financial position when the obligation specified in the contract is discharged or cancelled or expires. A substantial modification of the terms of an existing financial liability and significant difference in cash flows after the modification shall be accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability by fair value based on the modified contractual terms.

At derecognition of a financial liability, the difference between the carrying amount of the financial liability extinguished or transferred to another party and the consideration paid (including any non-cash assets transferred or liabilities assumed), shall be recognized in profit or loss.

(7) Inventories

The perpetual inventory system is adopted, and the acquisition costs are recorded in the account. The costs are determined by the weighted average method, and the fixed production overheads are allocated according to the normal operating capacity of the production equipment. Inventories at the end of period except for obsolete and slow-moving inventories are provided for loss allowance. Inventories are measured at the lower of cost and net realizable value. When comparing the lower of cost and net realizable value, the item-by-item comparison method is adopted. The market price of raw materials is the replacement cost (that is, the latest purchase price); the market price of work in progress, semi-finished goods, finished goods and commodity inventories is the net realizable value.

(8) Invest in associates
Associates are that in which the Company has significant influence over their financial and operating policies but is not controlling or jointly controlling.

The Company adopts the equity method to handle the interests of the associates. Under the equity method, the original acquisition is recognized at cost, and investment costs include transaction costs. The carrying amount of investments in an associate includes the goodwill identified at the time of the original investment, less any accumulated impairment loss.

The financial report includes from the date of significant influence to the date of loss of significant influence; after the adjustments made consistent with the accounting policy of the Company, the Company recognizes the profit and loss and the amount of other comprehensive income of each investment in associates based on the equity ratio. When the equity changes in non- profit or loss and other comprehensive income of an associate does not affect the shareholding ratio of the Company, the Company will recognize all changes in equity as capital reserves according to the shareholding ratio.

Unrealized gains and losses arising from transactions between the Company and associates are recognized in the corporate financial statements only within the scope of non-related party investors’

～14～

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

interests in associates. When the Company shall recognize the loss share of an associate proportionally equal to or exceeds its equity in the associate, it shall stop recognizing the losses, and only within the scope of a legal obligation, a constructive obligation, or a payment made on behalf of the invested company, additional losses and related liabilities shall be recognized.

(9) Invest in subsidiaries

When preparing the parent company only financial statements, investment in subsidiaries which are controlled by the Company is accounted for using the equity method. Under the equity method, an investment in a subsidiary is initially recognized at cost and adjusted thereafter to recognize the Company's share of profit or loss and other comprehensive income of the subsidiary as well as the distribution received. The Company also recognized its share in the changes in the equity of subsidiaries.

Changes in a parent’s ownership interest in a subsidiary that do not result in the loss of control are accounted for within equity.

(10) Property, plant and equipment
A. Recognition and measurement

Items of property, plant and equipment are measured at cost, which includes capitalized borrowing costs, less accumulated depreciation and any accumulated impairment losses.

If significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. Any gain or loss on disposal of an item of property, plant and equipment is recognized in profit or loss.

B. Subsequent cost

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.

C. Depreciation

Depreciation is calculated on the cost of an asset less its residual value and is recognized in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment.

Land is not depreciated.

The estimated useful lives of property, plant and equipment for current and comparative periods are as follows:

(a) Buildings and structures 9 to 50 years (b) Machinery and equipment 3 to 16 years (c) Office equipment 3 to 8 years (d) Leasehold improvements 3 to 10 years (e) Other equipment 1 to 7 years

Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

(11) Leases

At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

A. As a lessee

The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

～15～

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be reliably determined, the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprise the following:

(a) fixed payments;
(b) variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
(c) amounts expected to be payable under a residual value guarantee; and
(d) payments for purchase or termination options that are reasonably certain to be exercised.

The lease liability is measured at amortized cost using the effective interest method. It is remeasured when:

(a) there is a change in future lease payments arising from the change in an index or rate;
(b) there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee;
(c) there is a change in the lease term resulting from a change of its assessment on whether it will exercise an option to purchase the underlying asset;
(d) there is a change of its assessment on whether it will exercise a purchase, extension or termination option;
(e) there is any lease modification.

When the lease liability is remeasured, other than lease modifications, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or in profit and loss if the carrying amount of the right-of-use asset has been reduced to zero.

When the lease liability is remeasured to reflect the partial or full termination of the lease for lease modifications that decrease the scope of the lease, the Company accounts for the remeasurement of the lease liability by decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognize in profit or loss any gain or loss relating to the partial or full termination of the lease.

The Company presents right-of-use assets and lease liabilities that do not meet the definition of investment property as a separate line item respectively in the statement of financial position. The Company has elected not to recognize right-of-use assets and lease liabilities for office equipment with short-term leases that have a lease term of 12 months or less and leases of low-value assets. The Company recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

(12) Intangible assets
A. Recognition and measurement
Expenditure on research activities is recognized in profit or loss as incurred.
Development expenditure is capitalized only if the expenditure can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable and the Company intends to, and has sufficient resources to, complete development and to use or sell the asset. Otherwise, it is recognized in profit or loss as incurred. Subsequent to initial recognition, development expenditure is measured at cost, less accumulated amortization and any accumulated impairment losses.

Other intangible assets, including computer software, patent rights and customer relationships, are acquired by the Company and have finite useful lives are measured at cost less accumulated

～16～

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

amortization and any accumulated impairment losses.

B. Subsequent expenditure

Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, is recognized in profit or loss as incurred, including internally developed goodwill and brands.

C. Amortization

Amortization is calculated over the cost of the asset, less its residual value, and is recognized in profit or loss on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use.

The estimated useful lives of intangible assets for current and comparative periods are as follows:

(a)Royalty 5 to 30 years

(b)Intangible assets internally generated

(b)Intangible assets internally generated 3 years (c)Customer relationships 3 years (d)Computer software 5 to 10 years

Amortization methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

(13) Impairment of non-derivative financial assets

At each reporting date, the Company reviews the carrying amounts of its non-financial assets (other than inventories, and deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated.

For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs.

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount.

(14) Revenue recognition
A. Revenue from contracts with customers

Revenue is measured based on the consideration to which the Company expects to be entitled in exchange for transferring goods to a customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control of a good to a customer. The description of main income items is as follows:

(a) Sales of goods

The Company recognizes revenue when control of the products has transferred, being when the products are delivered to the customer upon the transaction terms, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed, or the Company has objective evidence that all criteria for acceptance have been satisfied.

The Company offers volume discounts to customers. The Company recognizes revenue on the basis of the net amount of the contract price minus the estimated volume discount. The amount of the volume discount is estimated based on the expected value based on past cumulative experience, and revenue is recognized only in the range where there is a high probability that no significant reversal will occur.

～17～

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

(15) Employee benefits
A. Defined contribution plans

Obligations for contributions of pension to defined contribution plans are expensed as the related service is provided.

B. Defined benefit plans
The Company’s net obligation is calculated by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.

The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Company, the recognized asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements.

Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in other comprehensive income, and accumulated in retained earnings within equity. The Company determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset). Net interest expense and other expenses related to defined benefit plans are recognized in profit or loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognized immediately in profit or loss. The Company recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.

C. Short-term employee benefits
Short-term employee benefits are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.
(16) Income taxes

Income taxes comprise current taxes and deferred taxes. Except for expenses related to business combinations or recognized directly in equity or other comprehensive income, all current and deferred taxes are recognized in profit or loss.

Current taxes comprise the expected tax payables or receivables on the taxable profits (losses) for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payables or receivables are the best estimate of the tax amount expected to be paid or received. It is measured using tax rates enacted or substantively enacted at the reporting date. Deferred taxes are measured at tax rates that are expected to be applied to temporary differences when they reserve, using tax rates enacted or substantively enacted at the reporting date. Deferred income tax shall be recognized for the temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements, except to the extent that:

A. the initial recognition of an asset or liability in a transaction which is not a business combination, and at the time of the transaction, (i) affects neither accounting profit (ii) nor taxable profit (tax loss) and (ii) does not give rise to equal taxable and deductible temporary differences, or
B. the temporary differences associated with investments in subsidiaries, and it is probable that the temporary differences will not reverse in the foreseeable future, or
C. the deferred tax liabilities arise from the initial recognition of goodwill.

～18～

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

Deferred tax assets are recognized for the carry forward of unused tax losses, unused tax credits, and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefits will be realized; such reductions are reversed when the probability of future taxable profits improves.

Deferred income tax is measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates or tax laws that have been enacted or substantively enacted at the reporting date.

The Company shall offset current tax assets and current tax liabilities, only if:

A. the Company has a legally enforceable right to set off current tax assets against current tax liabilities; and
B. the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either:
(a) The same taxable entity; or
(b) Different taxable entities which intend to settle current tax assets and liabilities on a net basis, or to realize the assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.
(17) Earnings per share

The Company discloses the Company’s basic and diluted earnings per share attributable to ordinary shareholders of the Company. Basic earnings per share is calculated as the profit attributable to ordinary shareholders of the Company divided by the weighted average number of ordinary shares outstanding. Diluted earnings per share is calculated as the profit attributable to ordinary shareholders of the Company divided by the weighted average number of ordinary shares outstanding after adjustment for the effects of all potentially dilutive ordinary shares.

(18) Segment information

The Company discloses the operating segments information in the consolidated financial statements. Therefore, the Company does not disclose such information in the parent company only financial statements.

～19～

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

5. Significant accounting assumptions and judgments, and major sources of estimation uncertainty

The preparation of the consolidated financial report requires management to make judgments, estimates, and assumptions to future (including climate-related risks and opportunities) that affect the application of the accounting policies and the reported amount of assets, liabilities, income, and expenses. Actual results may differ from these estimates.

The management continues to monitor the accounting estimates and assumptions to be in consistent with the Company’s risk management and climate-related commitments. The management recognizes any changes in accounting estimates during the period and the impact of those changes in accounting estimates in the following period on a prospective basis.

Accounting policies involve critical judgments and have no significant impact on the amount recognized in this parent company only financial statements.

Information about uncertainties of the following assumptions and estimates which have significant risks of causing critical adjustments to the carrying amount of assets and liabilities in the next fiscal year is as follows:

(1) Valuation of inventories

As inventories are stated at the lower of cost or net realizable value, the Company estimates the net realizable value of inventories for normal loss and unmarketable items at the end of the reporting period and then writes down the cost of inventories to net realizable value. In addition, the Company has also considered the industry characteristics and the liquidity of inventories to assess the loss allowance for slow-moving inventories. The net realizable value of the inventory is mainly determined based on assumptions as to future demand within a specific time horizon. Due to the changes in industrial application technology, there may be significant changes in the net realizable value of inventories.

6. Explanation of significant accounts

(1) Cash and cash equivalents

ation of significant accounts ash and cash equivalents
Cash Checking account Demand deposits Time deposits	December 31, 2024	December 31, 2023
	$ 489 515 152,904 285,888	466 487 68,454 290,922 360,329
	$ 439,796

Please refer to Note 6(18) for the interest rate risk, and sensitivity analysis of the financial assets and liabilities.

(2) Financial assets measured at fair value through other comprehensive income

Equity instruments measured at fair value through other comprehensive income: Foreign non-listed (non-OTC-listed) stocks －Hukui Biotechnology Corporation (Samoa)	December 31, 2024 $ -	December 31, 2023 -

A. Investments in equity instruments measured at fair value through other comprehensive

～20～

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

income

The Company designated the investment shown above as equity securities at fair value through other comprehensive income because these equity securities represent those investments that the Company intends to hold for long-term strategic purpose.

Please refer to Note 6(18) for information on the carrying amount, fair value and market risks of the foreign non-listed (non-OTC-listed) stocks of Hukui Biotechnology Corporation (Samoa) held by the Company.

The Company did not dispose strategic investments in 2024 and 2023, and the accumulated profits and losses during these periods have not been made for any transfer within the equity.

B. The aforementioned financial assets were not pledged as long-term loans and financing facilities.

(3) Notes and accounts receivable

facilities. otes and accounts receivable
Notes receivable Accounts receivable Less: Loss allowance	December 31, 2024	December 31, 2023
	$ - 47,626 (4,560)	491 44,605 (5,247)
	$ 43,066	39,849

The Company applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables. To measure the expected credit losses, accounts receivables have been grouped based on shared credit risk characteristics and the days past due, as well as the incorporated forward-looking information.

The loss allowance provisions for notes and accounts receivable were determined as follows:

December 31, 2024	December 31, 2024	Loss allowance provision 751 687 554 415 457 234 1,462
Gross carrying amount $ 40,072 2,857 1,412 741 776 306 1,462	Weighted-aver age loss rate
	1.87% 24.05% 39.22% 55.95% 58.84% 76.44% 100.00%
$ 47,626		4,560

December 31, 2023	December 31, 2023	Loss allowance provision 584 245 179 283 1,058 1,590 1,308
Gross carrying amount $ 37,295 1,276 563 582 1,962 2,110 1,308	Weighted-aver age loss rate
	1.57% 19.20% 31.74% 48.68% 53.91% 75.37% 100.00%
$ 45,096		5,247

～21～

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

The movement in the loss allowance for notes and accounts receivable were as follows:

Balance at January 1 Reversal of impairment losses Others Balance at December 31	2024 $ 5,247 (687) -	2023 8,152 (3,053) 148
	$ 4,560	5,247

The aforementioned financial assets were not pledged as long-term loans and financing facilities.

(4) Other receivables

Other receivables Other receivables-related parties	December 31, 2024 $ 6,803 -	December 31, 2023 4,711 114
	$ 6,803	4,825

(5) Inventories

Raw materials and supplies Semi-finished goods Work in progress Finished goods Merchandise Testing instruments	December 31, 2024 $ 31,505 257,884 34,414 121,953 6,107 23	December 31, 2023 23,680 250,513 9,954 118,303 5,163 689
	$ 451,886	408,302

The components of cost of sales for the years ended December 31, 2024 and 2023 are as follows:

Sales of inventories transferred Inventory disposal loss Gain from price recovery of inventory valuation and obsolescence Total	2024 $ 151,320 60,048 (19,370)	2023 160,359 60,126 (12,348)
	$ 191,998	208,137

As of December 31, 2024 and 2023, the inventories were not pledged as collateral. (6) Investments accounted for using equity method

The equity method adopted by the Company at the reporting date was as follows:

Subsidiary Abnova Holding Corporation AxleBio Ventures Abnova-GmbH (Note)	December 31, 2024 $ 8,050 944 (2,809)	December 31, 2023 86,277 1,154 (2,809)
	$ 6,185	84,622

Note: The net amount deducted from receivables as of December 31, 2024 and 2023 were listed in “other non-current liabilities.” Please refer to Note 7.

～22～

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

Since Abnova GmbH’s capital equivalent to NT$1,210 thousand (0.2% of the Group’s capital), its total assets were less than 1% of the Group’s total assets, and it had no operating income, the consolidated financial report with this subsidiary had not been prepared.

The Board of Directors of the Company approved the dissolution and liquidation proposal of Abnova GmbH on November 11, 2016, and the dissolution and liquidation was on December 31, 2016, as the base date. The liquidation has not completed by December 31, 2024. The Company established AxleBio Ventures in July, 2023 by NT$1,300 thousand with 100% of percentage of ownership.

The Company sold the shares of the associate, Citil Pharma Incorporated, by NT$342 thousand to the subsidiary, AxleBio Ventures. As the transaction is the restructure under joint control, the unrealized gains on disposal of NT$68 thousand is recognized as the deduction of investments accounted for using equity method.

Abnova Holding Corporation refunded the proceeds from capital reduction of NT$82,467 thousand (US$2,550 thousand) in June 2024, and the legal registration procedures have been completed.

For information on the Company’s subsidiaries, please refer to the 2024 consolidated financial statements.

As of December 31, 2024 and 2023, the investment accounted for using equity method were not pledged as collateral.

(7) Property, plant and equipment

The movements of costs and depreciation of the property, plant and equipment as of and for the years ended December 31, 2024 and 2023 were as follows:

Land	Buildings and structures	Machinery and equipment	Office equipment	Leasehold improvem ents	Other equipment	Unfinished constructi on and equipment pending acceptance	Total
$ 137,911 - - -	101,747 - - -	183,232 5,435 2,133 (10,194)	25,272 640 - (10)	18,366 149 25 -	8,642 396 - (260)	225 - (25) -	475,395 6,620 2,133 (10,464)
$ 137,911	101,747	180,606	25,902	18,540	8,778	200	473,684
$ 137,911 - -	101,747 - -	183,264 11,913 (11,945)	25,833 173 (734)	11,386 6,980 -	9,094 475 (927)	200 25 -	469,435 19,566 (13,606)
$ 137,911	101,747	183,232	25,272	18,366	8,642	225	475,395
$ - - -	35,799 5,997 -	136,726 7,136 (10,194)	25,068 155 (10)	11,833 814 -	8,220 216 (260)	- - -	217,646 14,318 (10,464)
$ -	41,796	133,668	25,213	12,647	8,176	-	221,500
$ - - -	29,801 5,998 -	141,622 7,049 (11,945)	25,753 49 (734)	11,386 447 -	8,739 408 (927)	- - -	217,301 13,951 (13,606)
$ -	35,799	136,726	25,068	11,833	8,220	-	217,646
$ 137,911	59,951	46,938	689	5,893	602	200	252,184
$ 137,911	71,946	41,642	80	-	355	200	252,134
$ 137,911	65,948	46,506	204	6,533	422	225	257,749

As of December 31, 2024 and 2023, the property, plant and equipment were not pledged as collateral.

～23～

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

(8) Right-of-use assets

The movements of costs and depreciation of the buildings and structures and transportation equipment rented by the Company were as follows:

Buildings and structures $ 41,650 20,846 (33,027)	Transportation equipment 2,954 948 (1,552)	Total 44,604 21,794 (34,579)
$ 29,469	2,350	31,819
$ 37,630 4,020	2,954 -	40,584 4,020
$ 41,650	2,954	44,604
34,078 5,035 (33,027)	2,877 472 (1,552)	36,955 5,507 (34,579)
$ 6,086	1,797	7,883
$ 27,753 6,325	2,409 468	30,162 6,793
$ 34,078	2,877	36,955
$ 23,383	553	23,936
$ 9,877	545	10,422
$ 7,572	77	7,649

～24～

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

(9) Intangible assets

The movements of costs, amortization and impairment of the intangible assets for the years ended December 31, 2024 and 2023 were as follows:

Development expenditure of monoclonal antibody hybridoma Cost: Balance at January 1, 2024 $ 321,979 Separately acquired - Internally developed 1,065 Inventories transferred to intangible assets 2,000 Balance at December 31, 2024 $ 325,044 Balance at January 1, 2023 $ 318,105 Separately acquired - Internally developed 1,549 Inventories transferred to intangible assets 2,325 Balance at December 31, 2023 $ 321,979 Amortization and impairment loss: Balance at January 1, 2024 $ 311,710 Amortization 6,663 Balance at December 31, 2024 $ 318,373 Balance at January 1, 2023 $ 303,497 Amortization 8,213 Balance at December 31, 2023 $ 311,710 Carrying amount: Balance at December 31, 2024 $ 6,671 January 1, 2023 $ 14,608 Balance at December 31, 2023 $ 10,269	Royalty 75,616 - - -	Others 7,771 32 - -	Total 405,366 32 1,065 2,000
$ 325,044	75,616	7,803	408,463
	75,616 - - -	- 7,771 - -	393,721 7,771 1,549 2,325
$ 321,979	75,616	7,771	405,366
$ 311,710 6,663	23,818 2,408	198 979	335,726 10,050
$ 318,373	26,226	1,177	345,776
$ 303,497 8,213	21,409 2,409	- 198	324,906 10,820
$ 311,710	23,818	198	335,726
$ 6,671	49,390	6,626	62,687
$ 14,608	54,207	-	68,815
$ 10,269	51,798	7,573	69,640

The amortization expenses of intangible assets for the years ended December 2024 and 2023 were presented in the following items in the statements of comprehensive income:

Operating costs Operating expenses	2024 $ 6,662 3,388	2023 8,214 2,606
	$ 10,050	10,820

～25～

Notes to the Financial Statements (Cont.)

Abnova (Taiwan) Corporation

(10) Lease liabilities

The carrying amount of lease liabilities were as follows:

Current Non-current	December 31, 2024		December 31, 2023 5,105
	$ 5,508
	$ 18,498		2,601

For the maturity analysis, please refer to Note 6(18) Financial instruments. The amount recognized in profit or loss were as follows:

For the maturity analysis, please refer to Note 6(18) Financial instruments. The amount recognized in profit or loss were as follows:	cial instruments.
2024 2023 Interest on lease liabilities $ 118 136 Expenses relating to short-term leases $ 3,278 2,203 The amount recognized in the statements of cash flows for the Company were as follows: 2024 2023 Total cash outflow for leases $ 8,890 9,117	2024		2023 136
			2,203

The amount recognized in the statements of cash flows for the Company were as follows:

A. Buildings and structures leases

The Company leases buildings and structures for its office space for the year ended December 31, 2024, which typically run for a period of one to five years.

B. Other leases

The Company leases transportation equipment with contract terms of two to three years. In addition, the Company leases copy machines with contract terms of five years. As these leases are short-term and/or of low-value, the Company elects the recognition exemption and does not recognize the relevant right-of-use assets and lease liabilities.

(11) Employee benefits

A. Defined benefit plans

Reconciliation of defined benefit obligation at present value and plan asset at fair value were as follows:

Present value of defined benefit obligations Fair value of plan assets Net defined benefit assets	December 31, 2024 $ 5,075 (6,402)	December 31, 2023 5,609 (6,460)
	$ (1,327)	(851)

The Company makes defined benefit plan contributions to the pension fund account with Bank of Taiwan that provides pensions for employees upon retirement. Plans (covered by the Labor Standards Law) entitle retired employees to receive retirement benefits based on their years of service and average monthly salary for the six months prior to retirement.

The Company received the approval letters from the Department of Labor, Taipei City Government No. 1116069618, No. 1126041943, and No. 1136038957 of August 15, 2022, August 29,2023, and August 5, 2024, respectively which approved to suspend the appropriation of pension fund from September 2022 to August 2023, from September 2023 to August 2024, and from September 2024 to August 2025.

～26～

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

(a) Composition of plan assets

The Company allocates pension funds in accordance with the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund, and such funds are managed by the Bureau of Labor Funds, Ministry of Labor. With regard to the utilization of the funds, minimum earnings shall be no less than the earnings attainable from two-year time deposits with interest rates offered by local banks.

The Company’s Bank of Taiwan labor pension reserve account balance amounted to NT$6,402 thousand as of the reporting date. For information on the utilization of the labor pension fund assets, including the asset allocation and yield of the fund, please refer to the website of the Bureau of Labor Funds, Ministry of Labor.

(b) Movements in present value of defined benefit obligations

The movement in the present value of the defined benefit obligations for the years ended December 31, 2024 and 2023 were as follows:

Defined benefit obligations at January 1 Current service cost and interest cost Remeasurements of net defined benefit obligations －Actuarial gains or losses arising from experience adjustments －Actuarial gains or losses arising from changes in financial assumptions Benefits paid Defined benefit obligations at December 31	2024 $ 5,609 73 409 (251) (765)	2023 5,743 80 575 67 (856)
	$ 5,075	5,609

(c) Movements in fair value of plan assets

The movements in the fair value of the plan assets for the years ended December 31, 2024 and 2023 were as follows:

2024 and 2023 were as follows:
Fair value of plan assets at January 1 Interest income Remeasurements of net defined benefit obligations －Return on plan assets excluding interest income Benefits paid Fair value of plan assets at December 31	2024 $ (6,460) (84) (623) 765 $ (6,402)	2023
		(7,191) (101) (24) 856
		(6,460)

～27～

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

(d) Expenses recognized in profit or loss

The expenses recognized in profit or loss for the years ended December 31, 2024 and 2023 were as follows:

2023 were as follows:
Net interest of net defined benefit liabilities (assets) Operating costs Operating expenses	2024 $ (11)	2023
		(21)
	$ (8) (3)	(16) (5)
	$ (11)	(21)

(e) Actuarial assumptions

The principal actuarial assumptions for determining present value of defined benefit obligations at the reporting date were as follows:

obligations at the reporting date were as follows:
Discount rate Future salary increase rate	December 31, 2024 1.70% 3.00%	December 31, 2023
		1.30% 3.00%

The expected allocation payment to be made by the Company to the defined benefit plans for the one-year period after the reporting date was $0.

The weighted average lifetime of the defined benefit plans was 12 years.

(f) Sensitivity analysis

When calculating the present value of defined benefit obligations, the Company must practice judgments and estimates to determine relevant actuarial assumptions at the balance sheets date, including discount rates and future salary changes. Any changes in actuarial assumptions may cause significant impacts on the amount of defined benefit obligations.

As of December 31, 2024 and 2023, if the actuarial assumptions had changed, the impact on the present value of the defined benefit obligations shall be as follows:

Influences of defined benefit obligations

December 31, 2024 Discount rate Future salary increase rate December 31, 2023 Discount rate Future salary increase rate	Increase0.25 % (150) 140 (166) 156	Decrease0.25 % 155 (136) 172 (151)

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions remain constant, would have affected the defined benefit obligation by the amounts shown above. The method used in the sensitivity analysis was consistent with the calculation of net defined benefit liabilities in the balance sheets.

There were no changes in the method and assumptions used in the preparation of sensitivity analysis for 2024 and 2023.

～28～

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

B. Defined contribution plans

The Company allocates 6% of each employee’s monthly wages to the labor pension personal account at the Bureau of Labor Insurance in accordance with the provisions of the Labor Pension Act. Under these defined contribution plans, the Company allocates a fixed amount to the Bureau of Labor Insurance without additional legal or constructive obligation.

The pension costs incurred from the contributions to the Bureau of the Labor Insurance amounted to NT$3,521 thousand and NT$3,686 thousand for the years ended December 31, 2024 and 2023, respectively.

(12) Income taxes

A. Tax expense

The components of the income tax in the years 2024 and 2023 were as follows:

2024 2023 Current tax expense Current period $ 3,304 5,325 Adjustment for prior periods - (1,509) 3,304 3,816 Deferred tax expense Origination and reversal of temporary differences 8,239 983 Income tax for the continuing operations $ 11,543 4,799 The reconciliation of income tax expenses recognized in other comprehensive income were as below: 2024 2023 Profit from continuing operations before tax $ 73,150 48,477 Income tax using the Company’s domestic tax rate $ 14,630 9,695 Nondeductible expenses 81 91 Tax incentive (3,168) (5,326) Overestimation for prior periods - (1,509) Surtax on undistributed earnings of the prior year - 1,848 Tax expense $ 11,543 4,799	2024 $ 3,304 -	2023 5,325 (1,509)
	3,304 8,239	3,816 983
	$ 11,543	4,799
	$ 14,630 81 (3,168) - -	9,695 91 (5,326) (1,509) 1,848
	$ 11,543	4,799

The reconciliation of income tax expenses recognized in other comprehensive income were as below:

B. Deferred tax assets and liabilities

Changes in the amount of deferred tax assets for the years ended December 31, 2024 and 2023 were as follows:

～29～

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

Unrealized gains on exchange $ 1,376 4,293	Gains on long-term equity investments accounted for using equity method 2,407 (70)	Total 3,783 4,223
$ 5,669	2,337	8,006
$ 1,296 80	4,508 (2,101)	5,804 (2,021)
$ 1,376	2,407	3,783
Allowance for inventory valuation and obsolescence $ 93,288 (3,874)	Other 1,986 (142)	Total 95,274 (4,016)
$ 89,414	1,844	91,258
$ 95,758 (2,470)	2,520 (534)	98,278 (3,004)
$ 93,288	1,986	95,274

C. Assessment of tax

The Company’s tax returns for the years through 2022 were assessed by the National Taiwan Bureau.

(13) Capital and other equity

A. Ordinary shares

The Company had authorized capital of NT$800,000 thousand (80,000 thousand shares) as of December 31, 2024 and 2023, of which 60,554 thousand shares with par value of NT$10 were issued. Payments for all issued shares had been received.

B. Capital surplus

The balances of capital surplus were as follows:

Share premium	December 31, 2024 $ 474,527	December 31, 2023 474,527

According to the R.O.C. Group Act, capital surplus can only be used to offset a deficit, and only the realized capital surplus can be used to increase the common stock or be distributed as cash dividends. The aforementioned realized capital surplus includes capital surplus resulting from premium on issuance of capital stock and earnings from donated assets received. According to the Regulations Governing the Offering and Issuance of Securities by Securities Issuers, capital increases by transferring capital surplus in excess of par value should not exceed 10% of the total common stock outstanding.

～30～

Abnova (Taiwan) Corporation

Notes to the Financial Statements (Cont.)

C. Retained earnings
The Company’s article of incorporation stipulates that any Company’s profit for the period should first be used to offset the prior years’ deficits (including the adjustments of the unappropriated retained earnings), allocate 10% of the remaining balance as legal reserve, unless such legal reserve has amounted to the paid-in capital, then set aside or reverse a special reserve in accordance with the laws and regulations or competent authorities. The remainder, if any, together with any undistributed retained earnings (including the adjustments of the unappropriated retained earnings) should be proposed earnings distribution by the Company’s Board of Directors. Wherein the distributable dividend and bonus may be paid by cash after a resolution has been adopted by a majority vote at a meeting of the Board of Directors attended by two-thirds of the total number of directors, and in addition thereto, a report of such distribution shall be submitted to the shareholders’ meeting. Wherein the distributable dividend and bonus may be paid by issuing new shares after a resolution has been adopted in the shareholders’ meeting.

The dividend distribution policy of the Company is to coordinate with the current and future development plans, consider the investment environment, capital needs, and domestic and foreign competition conditions, and take into consideration factors such as shareholders’ interests. The dividends and bonus to shareholders each year shall not be less than 10% of the distributable earnings, but when the accumulated distributable earnings are lower than 3% of the paid-in capital, the distribution may not be done. When distributing dividends and bonus to shareholders, it can be done in the form of cash or stocks, and the cash dividends should not be less than 10% of the total dividends.

(a) Legal reserve

When a company incurs no loss, it may, pursuant to a resolution by a shareholders’ meeting, distribute its legal reserve by issuing new shares or by distributing cash, and only the portion of legal reserve which exceeds 25% of capital may be distributed.

(b) Special reserve
According to the laws and regulations, special earnings shall be set aside from the net reduction of other shareholders’ equity in current-period balance sheets during earnings distribution. Amounts of subsequent reversals pertaining to the net reduction of other shareholders’ equity shall qualify for additional distributions.
(c) Earnings distribution

The amount of cash dividends on the appropriations of earnings for 2023 and 2022 had been approved during the board meetings on February 20, 2024 and February 24, 2023, respectively. The relevant dividend distributions to shareholders were as follows:

Dividends distributed to ordinary shareholders: Cash	2023 Amount per share Amount $ 0.72 43,598	2022 Amount per share Amount 0.80 48,443	2022 Amount per share Amount 0.80 48,443
	Amount per share	Amount per share
	$ 0.72	0.80

The amount of dividends on the appropriation of earnings for 2024 is proposed to be approved by the board meetings on February 26, 2025. The distribution to shareholders was as follows:

Dividends distributed to ordinary shareholders: Cash	2024 Amount per share Amount $ 0.90 54,498	2024 Amount per share Amount $ 0.90 54,498
	Amount per share
	$ 0.90

～31～

Abnova (Taiwan) Corporation

Notes to the Financial Statements (Cont.)

D. Other equity interest

Exchange differences on translation of foreign financial statements	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income	Total (12,199) 4,607
$ (7,254) 4,607 $ (2,647) $ (6,962) (292) $ (7,254)	(4,945) - (4,945) (4,945) - (4,945)
		(7,592)
		(11,907) (292)
		(12,199)

(14) Earnings per share

A. Basic earnings per share

The basic earnings per share of the Company in 2024 and 2023 were calculated based on the net profit attributable to the ordinary shareholders of the Company according to the weighted average number of ordinary shares outstanding. The calculations were as follows:

(a) Profit attributable to ordinary shareholders of the Company

2024 Profit attributable to ordinary shareholders of the Company $ 61,607 Weighted average number of ordinary shares (in thousands) 2024 Weighted average number of ordinary shares at December 31 (in thousands) (the number of shares at January 1) 60,554	2024	2023 43,678
	$ 61,607
		2023 60,554

(b) Weighted average number of ordinary shares (in thousands)

B. Diluted earnings per share

The diluted earnings per share in 2024 and 2023 were calculated based on the net profit attributable to the ordinary shareholders of the Company according to the weighted average number of ordinary shares outstanding after all potential ordinary shares adjusted to be diluted. The calculations were as follows:

(a) Profit attributable to ordinary shareholders of the Company (diluted)

2024 Profit attributable to ordinary shareholders of the Company (diluted) $ 61,607 Weighted average number of ordinary shares (diluted) (in thousands) 2024 Weighted average number of ordinary shares (basic) 60,554 Effect of employee share remuneration 118 Weighted average number of ordinary shares at December 31 (diluted) 60,672	2024	2023 43,678
	$ 61,607
		2023 60,554 78
	60,672	60,632

(b) Weighted average number of ordinary shares (diluted) (in thousands)

～32～

Notes to the Financial Statements (Cont.)

Abnova (Taiwan) Corporation

(15) Revenue from contracts with customers
A. Details of revenue

Primary geographical markets: America Europe Taiwan Other country Main product/service line: Monoclonal antibody Matched antibody Protein Polyclonal antibody Testing instruments Other	2024 $ 183,229 84,043 15,232 72,196 $ 354,700 $ 120,247 70,998 51,681 22,471 5,831 83,472 $ 354,700	2024 $ 183,229 84,043 15,232 72,196 $ 354,700 $ 120,247 70,998 51,681 22,471 5,831 83,472 $ 354,700	2023
			192,568 94,885 12,387 80,753
		$ 354,700	380,593
			121,011 76,590 63,250 24,502 7,343 87,897
		$ 354,700	380,593

B. Contract balances

Notes and accounts receivable Less: Loss allowance Total Contract liabilities	December 31, 2024		December 31, 2023		January 1, 2023 68,397 (8,152) 60,245 2,622
	$ 47,626 (4,560) $ 43,066 $ 2,483		45,096 (5,247) 39,849 2,349

For details on accounts receivable and its loss allowance, please refer to Note 6(3). The balance of contract liabilities at January 1, 2024 and 2023 recognized as revenue for the years 2024 and 2023 were NT$360 thousand and NT$706 thousand, respectively.

～33～

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

(16) Remuneration to employees and directors

The Company’s articles of incorporation, which were authorized by the Board of Directors but has yet to be approved by the shareholders, require that earnings shall first be offset against any deficit, then, a minimum of 1% will be distributed as employee remuneration, and a maximum of 3% will be allocated as remuneration to directors. Employees who are entitled to receive the abovementioned employee remuneration, in share or cash, include the employees of the Company’s subsidiaries who meet requirements set by the Board of Directors. The aforesaid remuneration to directors shall be distributed in cash only.

For the years ended December 31, 2024 and 2023, the Company recognized its employee remuneration amounting to NT$3,235 thousand and NT$2,155 thousand respectively; as well as its remuneration to directors and supervisors amounting to NT$616 thousand and NT$411 thousand, respectively. These amounts were calculated by using the Company’s pre-tax net profit for the period before deducting the amounts of the remuneration to employees and directors and supervisors, multiplied by the distribution of ratio of the remuneration to employees and directors and supervisors based on the Company’s articles of incorporation, and expensed under operating costs or expenses. If any discrepancy occurred between the actual distributions and the accrued amount for the following year, it shall be treated as a change in accounting estimates, and the difference shall be recognized as profit or loss for the next year. Related information would be available at the Market Observation Post System website.

The amounts, as stated in the financial statements are identical to those of the actual distributions for 2024 and 2023.

(17) Non-operating income and expenses
A. Interest income

The details of interest income were as follows: Interest income from bank deposits B. Other income The details of other income were as follows: Other income C. Other gains and losses The details of other gains and losses were as follows: Gains on disposals of property, plant and equipment Foreign exchange gains D. Finance cost The details of finance cost were as follows: Other finance expenses	2024 $ 16,852	2023 10,332
	2024 $ 44	2023 152
	2024 $ - 22,017	2023 160 357
	$ 22,017	517
	2024 $ 118	2023 140

～34～

Abnova (Taiwan) Corporation

Notes to the Financial Statements (Cont.)

(18) Financial instruments
A. Credit risk
(a) Credit risk exposure

The carrying amount of financial assets represents the maximum amount exposed to credit risk.

(b) Concentration of credit risk

Except for the biggest customers, the Company has no significant credit risk exposure to any single counterparty or any group of counterparties with similar characteristics. For the years ended December 31, 2024 and 2023, 8% and 13%, respectively, of accounts receivable were concentrated on the biggest customer, and 92% and 87%, respectively, of accounts receivable were concentrated on other counterparties’ transactions.

For credit risk exposure of notes and accounts receivable, please refer to Note 6(3). Other financial assets measured at amortized cost, including other receivables are with low credit risk and which loss allowance for the period is measured by the twelve-month expected credit loss amount. As of December 31, 2024, the Company had no impairment on other receivables.

B. Liquidity risk

The following table shows the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements.

Carrying amount	Contractua lcash flow	Within 1 year	1to 2years	2to 5 years	Over 5 years
$ 18,982 32,300 24,006	18,982 32,300 25,120	18,982 32,300 5,932	- - 5,524	- - 13,664	- - -
$ 75,288	76,402	57,214	5,524	13,664	-
$ 14,935 31,630 7,706	14,935 31,630 7,867	14,935 31,630 5,203	- - 2,664	- - -	- - -
$ 54,271	54,432	51,768	2,664	-	-

The Company does not expect the cash flows included in the maturity analysis to occur significantly earlier or at significantly different amounts.

～35～

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

C. Currency risk

(a) Exposure to foreign currency risk

The Company’s significant exposure to foreign currency risk was as follows:

Financial assets Monetary items USD EUR GBP JPY Non-monetary items USD EUR Financial liabilities Monetary items USD EUR Financial assets Monetary items USD EUR GBP Non-monetary items USD EUR Financial liabilities Monetary items USD EUR		December 31, 2024
	Foreign currency (inthousands) Exchange rate $ 10,974USD：TWD 32.785 318EUR：TWD 34.14 111GBP：TWD 41.19 8,292JPY：TWD 0.2099 246USD：TWD 32.785 (82)EUR：TWD 34.14 372USD：TWD 32.785 89EUR：TWD 34.14 December 31, 2023		New Taiwan Dollars
			359,788 10,840 4,565 1,741 8,050 (2,809) 12,201 3,033
	Foreign currency (inthousands) Exchange rate $ 11,048USD：TWD 30.705 303EUR：TWD 33.98 88GBP：TWD 39.15 2,810 USD：TWD 32.785 (83) EUR：TWD 34.14 321USD：TWD 30.705 86EUR：TWD 33.98		New Taiwan Dollars
			339,214 10,311 3,464 86,277 (2,809) 9,844 2,909

～36～

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

(b) Sensitivity analysis

The Company’s monetary items of exposure to foreign currency risk arises from the conversion of the foreign currency exchange gains and losses on cash and cash equivalents, accounts and other receivables, accounts and other payables and financial assets measured at fair value through other comprehensive income that are denominated in foreign currency. A strengthening (weakening) of 1% of the NTD against the USD as of December 31, 2024 and 2023 would have increased (decreased) the net profit after tax by NT$2,894 thousand and NT$2,721 thousand, respectively.

Since the Company transacts in different functional currencies, the information on foreign exchange gains (losses) on monetary items is disclosed by total amount. For the years ended December 31, 2024 and 2023, the foreign exchange gains (including realized and unrealized portions) amounted to NT$22,017 thousand and NT$357 thousand, respectively.

D. Interest rate analysis
Please refer to the notes on liquidity risk management and interest rate exposure of the Company’s financial assets and liabilities.

The following sensitivity analysis is based on the exposure to the interest rate risk of derivative and non-derivative financial instruments on the reporting date. Regarding assets with variable interest rates, the analysis is based on the assumption that the amount of assets outstanding at the reporting date was outstanding throughout the year. The rate of change is expressed as the interest rate increases or decreases by 1% when reporting to the management internally, which also represents the Company management’s assessment of the reasonably possible interest rate change.

If the interest rate had increased or decreased by 1% basis points, the Company’s net income would have increased or decreased by NT$1,529 thousand and NT$685 thousand for the years ended December 31, 2024 and 2023, assuming all other variable factors remain constant. This is mainly due to the Company’s deposits and investments in floating variable rates.

E. Fair value of financial instruments
(a) Fair value hierarchy

The Company’s financial assets at fair value through other comprehensive income are measured at fair value on a recurring basis. The carrying amount and fair value of financial assets and liabilities, including the information on fair value hierarchy were as follows; however, except as described in the following paragraphs, for financial instruments not measured at fair value whose carrying amount is reasonably close to the fair value and lease liabilities, disclosure of fair value information is not required:

	_December 31, 2024	_December 31, 2024
	Fair value
Level 1 -	Level 2 -	Level 3 -

～37～

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

439,796 43,066 6,803 869 1,781 492,315 $ 492,315 $ 18,982 32,300 24,006 $ 75,288	_December 31, 2024 Fair value - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - December 31, 2023	_December 31, 2024 Fair value - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - December 31, 2023	_December 31, 2024 Fair value - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - December 31, 2023	- - - - -
				-
				-
				- - -
				-
				Total -
Carrying amount $ - 360,329 39,849 4,825 858 1,781 407,642 $ 407,642 $ 14,935 31,630 7,706 $ 54,271		Fair value
	Level 1 - - - - - - - - - - - -	Level 2 - - - - - - - - - - - -	Level 3 - - - - - - - - - - - -
				- - - - -
				-
				-
				- - -
				-

～38～

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

(b) Valuation techniques for financial instruments measured at fair value
(2.1) Non-derivative financial instruments

If there is a quoted price in an active market, the Company uses that price when measuring fair value of financial instruments.

The fair values of financial instruments other than those in an active market are acquired through valuation technique or referring to quotations from counterparties. The fair value acquired through valuation technique can refer to the current fair value of other financial instruments with substantial conditions and similar characteristics, discounted cash flow method or other valuation techniques.

(19) Financial risk management
A. Overview

The Company has exposures to the following risks from its financial instruments:

(a) Credit risk
(b) Liquidity risk
(c) Market risk

The following likewise discusses the Company’s objectives, policies and processes for measuring and managing the abovementioned risks. For more disclosures about the quantitative effects of these risk exposures, please refer to the respective notes in the accompanying financial statements.

B. Risk management framework
The Board of Directors is fully responsible for the development and control of the risk management policy of the Company, which its establishment is to identify and analyze the risks faced by the Company, set adequate risk limits and controls and supervise the risks and compliance with risk limits. Risk management policies and systems are regularly reviewed to reflect changes in market conditions and operations of the Company. The Company develops a disciplined and constructive control environment through training, management principles and operating procedures so that all employees understand their roles and responsibilities.

The Board of Directors oversees how the managements supervision is in compliance with the Company’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Company is assisted in its oversight role by Internal Audit. Internal Audit undertakes both regular and ad hoc reviews of risk management controls and procedures, and reports the reviews to the Board of Directors.

C. Credit risk

Credit risk is the risk of financial loss to the Company if a counterparty to a financial instrument fails to meet its contractual obligations. A credit policy of the Company is stipulated internally to assess the credit quality of customers through the internal risk controls of considering their financial conditions, past experience and other factors, and periodically monitor the use of credit lines. The main credit risk arises principally from cash and cash equivalents, deposits in banks and financial institutions and outstanding accounts receivable from customers’ sales. The credit quality of the financial institutions that the Company contacts is stable, and deals with multiple institutions to diversify credit risks. The possibility of default is expected to be very low. The maximum amount of exposure to credit risk on the balance sheet date is the carrying amount of cash and deposits in banks.

～39～

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

D. Liquidity risk

Cash flow forecasts are summarized by the Company’s finance department. The management regularly monitors rolling forecasts of working capital needs to ensure sufficient funds to cover daily operating activities and appropriate financial flexibility to maintain a balance between funding continuity and agility.

E. Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates, and equity prices that will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

(a) Currency risk

The Company operates transnationally, so it is subject to currency risks arising from transactions that are relatively different from the functional currency of the Company and its subsidiaries, mainly the US dollar and Euro. The related currency risk arises from future commercial transactions, assets and liabilities recognized and net investments in foreign operating institutions.

The management of the Company has established a policy, managing currency risk arises from future commercial transactions and assets and liabilities recognized, and based on the principal of natural hedging, the Company considers the funding needs and net positions in the Company and its subsidiaries’ currency to hedge risks in accordance with market foreign exchange conditions. Currency risks arise when future commercial transactions and assets or liabilities recognized are denominated in a foreign currency that is not the Company’s functional currency.

(b) Interest rate risk

The measures taken by the Company to respond to the risk of interest rate changes are mainly to regularly assess loan interest rates from banks and each currency and maintain good relationships with financial institutions to obtain lower financing costs, meanwhile practice methods such as strengthening working capital management to reduce the dependence on bank loans and diversify the risk of interest rate changes.

(20) Capital management

The goal of the Company’s capital management is to ensure for continuing operating, maintain an optimal capital structure to reduce capital costs, and provide remuneration to shareholders. The Company achieves the goal of capital management through monitoring whether the capital position is sufficient to meet the debt repayments.

7. Related-party transactions

(1) Names of related parties and their relationships

The transactions between the Company and subsidiaries and other related parties within the period of this financial report were as follows:

Name of related party Abnova-GmbH Abnova Holding Corporation AxleBio Ventures Abnova (Cayman) Corporation Abnova (HK) Limited Abnova Diagnostics Citil Pharma Incorporated Wellconn Genomics	Relationship with the Company
	Subsidiary of the Company Subsidiary of the Company Subsidiary of the Company Subsidiary indirectly owned by the Company Subsidiary indirectly owned by the Company Subsidiary indirectly owned by the Company Investee accounted for using equity method of subsidiary of the Company (associate) Other related party (Note)

Note: The liquidation procedures of the related party have been completed in March 2023.

～40～

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

(2) Significant transactions with related parties
A. Operating revenue

The significant sales amount of the Company to related parties were as follows:

Associate	2024 $ -	2023 448

The sales between the Company and its associates have no other counterparty for comparison but is negotiated. The collection period is one to four months, and the receivables between the related parties have not collateral.

B. Receivables from related parties

Receivables from related parties were as follows:

Account Relationship Other receivables Subsidiary . Loans to related parties Related parties Abnova-GmbH Less: Investment additions accounted for using equity method Other non-current liabilities	December 31, 2024 $ - December 31, 2024 $ 2,382 (2,809)	December 31, 2023 114
		December 31, 2023 2,371 (2,809) (438)
	$ (427)

C. Loans to related parties
(a) The Company did not charge interest for the above-mentioned transactions of loans to related parties.
(b) The Company’s maximum limit of fund lent to related parties in 2024 and 2023 were both NT$5,000 thousand.
D. Other
(a) The Company entrusted other related parties to provide cell testing services. Since there was no similar type of transaction for reference, the transaction price and payment terms were agreed according to the contract signed by both parties. The commissioned research expenses (as R&D expenses) in 2023 were NT$360 thousand.
(b) The Company signed an office leasing contract with other related parties, which has been expired in March, 2023. The leasing price was negotiated by both parties, and the Company collects rent on a monthly basis according to the contract. The rent income in 2023 were NT$135 thousand.
(3) Key management personnel transaction

Key management personnel compensation comprised:

Short-term employee benefits

2024 $ 12,118	2023 11,651

～41～

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

8. Pledged assets

The carrying values of pledged assets were as follows:

Pledged assets Pledged time deposits (as other current assets) Guarantee deposits paid (as other non-current assets)	Object	December 31, 2024 $ 869 1,781	December 31, 2023 858 1,781
	Customs duty pledged, Deposits for office and plant
		$ 2,650	2,639

9. Commitments and contingencies

The Company’s significant contractual commitments were as follows:

The Company and Louisiana State University of the United States signed an exclusive license for CHP technology on September 20, 2018, and the first payment was paid in 2018. Since the follow-up payments of the above contract must meet the requirements of conditions stipulated in the contract and the outcome obtained, whether and when it will be paid are uncertain. The Company’s contractual commitments for the acquisition of intangible assets that were not recognized in 2024 and 2023 were NT$35,572 thousand and NT$33,315 thousand, respectively. In addition, the Company paid the maintenance fee on an annual basis according to the contract, and paid royalty after the income was generated.

The Company and the company of non-related party signed a contract manufacturing agreement on October 11, 2023, and the lead payment and the first payment were paid. Since the follow-up payments of the above contract must meet the requirements of conditions stipulated in the contract and the outcome obtained, whether and when it will be paid are uncertain. The Company’s contractual commitments for the aforementioned contract that were not recognized as of December 31, 2024 is NT$23,250 thousand.

10. Losses due to major disasters ： None.

11. Subsequent events ： None.

12. Other

The employee benefits, depreciation, and amortization expenses categorized by function, were as follows:

_By function By item	2024	2024	2024	2023	2023	2023
	Operating cost	Operating expenses	Total	Operating cost	Operating expenses	Total
Employee benefits Salaries and wages Labor and health insurance Pension Remuneration to directors Other Depreciation expenses Amortization expenses	33,411 3,716 1,820 - 1,792 6,973 6,662	40,883 3,307 1,690 2,656 1,471 12,852 3,388	74,294 7,023 3,510 2,656 3,263 19,825 10,050	34,285 3,893 1,895 - 1,872 7,038 8,214	41,333 3,588 1,770 2,451 1,606 13,706 2,606	75,618 7,481 3,665 2,451 3,478 20,744 10,820

～42～

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

The complementary information on the number of employees and employee benefits for the years ended December 31, 2024 and 2023 was as follows:

ended December 31, 2024 and 2023 was as follows:
Number of employees Number of non-employee directors Average employee benefits Average salaries and wages Adjustments of average salaries and wages Remuneration to supervisors	2024	2023 105 6 912 764 (3.17)% -
	99 6 $ 947 $ 799 4.58% $ -

The remuneration policy (including directors, managers and employees) is as follows:
(1) Directors
A. Remuneration to directors is paid monthly in accordance with the Company’s Articles of Incorporation, and is allocated according to the annual income and the ratio specified in the Articles of Incorporation. The appropriation is reviewed by the Remuneration Committee and reported to the shareholders’ meeting after resolved by the Board of Directors.
B. According to Article 24 of the Company’s Articles of Incorporation, remuneration to directors is not more than 3% of the current year net profit (the profit refers to the profit before tax deducting the distribution of remunerations to employees and directors). When allocating the net profits, including the adjustments of unappropriated retained earnings, for each fiscal year, the Company shall first offset its losses in previous years. The aforesaid directors’ remuneration shall be paid in cash only.

According to Article 25 of the Articles of Incorporation, the Company’s directors may be paid traveling expenses on a case-by-case basis, and the amount is authorized to the Board of Directors to determine in accordance with the general standards in the industry.

According to Article 26 of the Articles of Incorporation, the Company’s directors may be paid remuneration monthly, and the amount is authorized to the Board of Directors to determine in accordance with the general standards in the industry. Remuneration to independent directors may be set a reasonable amount different from general directors.

(2) Managers

The rule of remuneration to managers (including salary, bonus and employee remuneration) is based on the regulations of the Company, and salary and bonus are reviewed by the Remuneration Committee and approved by the Board of Directors. The appropriation of employee remuneration is reviewed by the Remuneration Committee and reported to the shareholders’ meeting after resolved by the Board of Directors according to the annual income and the ratio specified in the Articles of Incorporation.

(3) Employees
A. Assess by the appointment of position, education, work ability, experience and professional knowledge and skills.
B. According to Article 24 of the Company’s Articles of Incorporation, remuneration to employees is not more than 1% of the current year net profit (the profit refers to the profit before tax deducting the distribution of remunerations to employees and directors). When allocating the net profits, including the adjustments of unappropriated retained earnings, for each fiscal year, the Company shall first offset its losses in previous years. Employees who are entitled to receive the abovementioned employee remuneration, in share or cash, include the employees of the Company’s subsidiaries who meet requirements set by the Board of Directors.

～43～

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

(4) The Company’s remuneration policy is regularly reviewed by the Remuneration Committee. In addition to evaluating the Company’s overall operating performance, future industry operating risks and development trends, and peer industry conditions, the remuneration policy sets reasonable remuneration with reference to the personal performance and contribution of directors and managers to the Company, and is reviewed in due time depending on the actual operating conditions and laws and regulations.

13. Other disclosures

(1) Information on significant transactions

The following is the information on significant transactions required by the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” for the Company:

A. Loans to other parties：

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(Expressed in Thousands of New Taiwan Dollars)
Name of Name of Account Related Highest Ending Actual Range Natur Transacti Reasons for Allowance Collateral Individual Maximum
Numb lender borrower name party balance of balance usage of e of on short-term for bad funding limit of
er financing amount interest financ amount financing debt loan limits fund
to other during the rates ing for Amount financing
parties period during business
during the the between
period period two
parties
Name Value
0 Abnova Abnova-G Other Yes 5,000 5,000 2,382 - 2 - Operating - - 130,940 523,760
(Taiwan) mbH receivabl turnover for
Corporation es － insufficient
related working
party capital
(Note 4)
----- End of picture text -----

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----- Start of picture text -----

Note 1 ： The numbers filled in were as follows:
----- End of picture text -----

The Company is ‘0’.
The investee companies are numbered in order starting from ‘1’.

Note 2 ： Financing purpose:

‘1’ for entities the Company has business transactions with.
‘2’ for entities that have short-term financing needs.
Note 3 ： Limit of fund financing:
The total amount available for financing purposes shall not exceed 40% of the Company’s net worth in the latest financial statements audited or reviewed by accountants.
The individual financing amount to one entity that have business transaction with the Company shall not exceed the total transaction amount.
The total amount for short-term financing to one entity shall not exceed 10% (inclusive) of the Company’s net worth in the latest financial statements audited or reviewed by auditors.
Note 4: The investee is a subsidiary of the Company, and the net amount after deducting its receivables was listed in “Other non-current liabilities”.. Please refer to Note 7.
B. Guarantees and endorsements for other parties: None.
C. Securities held as of December 31, 2024 (excluding investment in subsidiaries, associates and joint ventures):

ote 4: The investee is a subsidiary of the Company, and the net amount after deducting its receivables was listed in “Other non-current liabilities”.. Please refer to Note 7. Guarantees and endorsements for other parties: None. Securities held as of December 31, 2024 (excluding investment in subsidiaries, associates and joint ventures):	ote 4: The investee is a subsidiary of the Company, and the net amount after deducting its receivables was listed in “Other non-current liabilities”.. Please refer to Note 7. Guarantees and endorsements for other parties: None. Securities held as of December 31, 2024 (excluding investment in subsidiaries, associates and joint ventures):	ote 4: The investee is a subsidiary of the Company, and the net amount after deducting its receivables was listed in “Other non-current liabilities”.. Please refer to Note 7. Guarantees and endorsements for other parties: None. Securities held as of December 31, 2024 (excluding investment in subsidiaries, associates and joint ventures):	ote 4: The investee is a subsidiary of the Company, and the net amount after deducting its receivables was listed in “Other non-current liabilities”.. Please refer to Note 7. Guarantees and endorsements for other parties: None. Securities held as of December 31, 2024 (excluding investment in subsidiaries, associates and joint ventures):	ote 4: The investee is a subsidiary of the Company, and the net amount after deducting its receivables was listed in “Other non-current liabilities”.. Please refer to Note 7. Guarantees and endorsements for other parties: None. Securities held as of December 31, 2024 (excluding investment in subsidiaries, associates and joint ventures):	ote 4: The investee is a subsidiary of the Company, and the net amount after deducting its receivables was listed in “Other non-current liabilities”.. Please refer to Note 7. Guarantees and endorsements for other parties: None. Securities held as of December 31, 2024 (excluding investment in subsidiaries, associates and joint ventures):	ote 4: The investee is a subsidiary of the Company, and the net amount after deducting its receivables was listed in “Other non-current liabilities”.. Please refer to Note 7. Guarantees and endorsements for other parties: None. Securities held as of December 31, 2024 (excluding investment in subsidiaries, associates and joint ventures):	ote 4: The investee is a subsidiary of the Company, and the net amount after deducting its receivables was listed in “Other non-current liabilities”.. Please refer to Note 7. Guarantees and endorsements for other parties: None. Securities held as of December 31, 2024 (excluding investment in subsidiaries, associates and joint ventures):	ote 4: The investee is a subsidiary of the Company, and the net amount after deducting its receivables was listed in “Other non-current liabilities”.. Please refer to Note 7. Guarantees and endorsements for other parties: None. Securities held as of December 31, 2024 (excluding investment in subsidiaries, associates and joint ventures):
(Expressed in Thousands of New Taiwan Dollars / Share)
Name of holder	Category and name of security	Relationship with company	Account name	Ending balance				Note
				Shares	Carrying amount	Percentage of ownership	Fair value
The Company	Hukui Biotechnology Corporation (Samoa)	-	Financial assets measured at fair value through other comprehensive income	50,000	-	1.32%	-

D. Individual securities acquired or disposed of with accumulated amount exceeding the lower of NT$300 million or 20% of the capital stock: None.
E. Acquisition of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock: None.
F. Disposal of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock: None.
G. Related-party transactions for purchases and sales with amounts exceeding the lower of NT$100 million or 20% of the capital stock: None.
H. Receivables from related parties with amounts exceeding the lower of NT$100 million or 20% of the capital stock: None.
I. Trading in derivative instruments: None.

～44～

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

(2) Information on investees (excluding information on investees in Mainland China): The following is the information on investees for the years ended December 31, 2024

(Expressed in Thousands of New Taiwan Dollars / Share)

Name of investor	Name of investee	Location	Main businesses and products	Original investment amount	Original investment amount	Balance as of December 31, 2023	Balance as of December 31, 2023	Balance as of December 31, 2023	Net income (loss) of investee	Investment profit (loss) recognized by investor	Note
				December 31, 2024	December 31, 2023	Shares	Percentage of ownership	Carrying amount
The Company 〞〞 AxleBio Ventures Abnova Holding Corporation Abnova (Cayman) Corporation	Abnova GmbH (Note 4) Abnova Holding Corporation AxleBio Ventures Citil Pharma Incorporated Abnova (Cayman) Corporation Abnova (HK) Limited Abnova Diagnostics	Germany British Virgin Islands Taiwan USA Cayman Islands Hong Kong Japan	Distribution of biological products Investment business Investment business R&D of cell therapy technology Investment business Investment business R&D, manufacturing and sales of medical device, etc., testing services	854 2,787 1,300 342 656 - 18,891	854 86,388 1,300 342 85,405 54,751 18,891	(Note 4) 1,700 130,000 2,890,000 20,000 - 1,800,000	100.00% 100.00% 100.00% 40.00% 100.00% - % 100.00%	(2,809) 8,050 944 64 7,102 - 984	- (350) (227) (514) (162) 153 (61)	- (350) (227) (205) (162) 153 (61)	Subsidiar y 〞〞 Associate (Note 5) Second-ti er subsidiar y 〞〞

Note 1 ： The original investment amount of investees was calculated at USD1:TWD32.785 of December 31, 2024.

Note 2 ： The original investment amount of investees was calculated at JPY1:TWD0.2099 of December 31, 2024. Note 3 ： The investee is a limited company with no shares issued.

Note 4 ： The investee is a subsidiary of the Company, and the net amount after deducting its receivables was listed in “Other non-current liabilities”. Note 5 ： Please refer to the explanation in Note 6(6).

(3) Major shareholders:

Major shareholders:	Major shareholders:	Major shareholders:
Unit: Shares
Shareholding Shareholder’s name	Shares	Percentage
Huang Wilber	3,651,144	6.02%

14. Segment information

Please refer to the 2024 consolidated financial statements.

～45～

Abnova (Taiwan) Corporation Statement of cash and cash equivalents December 31, 2024

Item Cash Cash in banks Total	December 31, 2024 Description Petty cash Checking account Demand deposits Foreign demand deposits (USD2,279 thousand and EUR161 thousand, etc.) Time deposits (USD7,500 thousand and NT$40,000 thousand)	(Expressed in Thousands of New Taiwan Dollars) Amount $ 489 515 66,772 86,132 285,888 $ 439,796

Statement of accounts receivable Item Description Amount Note Non-related party Client A $ 5,024 Client B 4,866 Client C 4,201 Client D 3,831 Client E 3,701 Client F 2,782 Other 23,221 The amount of each item does not exceed 5% of the account balance. Less: Loss allowance (4,560) Total $ 43,066	Statement of accounts receivable Item Description Amount Note Non-related party Client A $ 5,024 Client B 4,866 Client C 4,201 Client D 3,831 Client E 3,701 Client F 2,782 Other 23,221 The amount of each item does not exceed 5% of the account balance. Less: Loss allowance (4,560) Total $ 43,066
Non-related party Client A Client B Client C Client D Client E Client F Other Less: Loss allowance Total

～46～

Abnova (Taiwan) Corporation Statement of inventories December 31, 2024

(Expressed in Thousands of New Taiwan Dollars)

Item	Amount Cost Net realizable value $ 71,267 31,505 568,963 257,884 34,414 34,414 205,683 121,953 10,251 6,107 8,378 23 898,956 451,886 (447,070) $ 451,886	Amount Cost Net realizable value $ 71,267 31,505 568,963 257,884 34,414 34,414 205,683 121,953 10,251 6,107 8,378 23 898,956 451,886 (447,070) $ 451,886	Note
	Cost $ 71,267 568,963 34,414 205,683 10,251 8,378
Raw materials and supplies Semi-finished goods Work in progress Finished goods Merchandise inventory Testing instruments Subtotal Less: Allowance for inventory valuation and impairment loss
	898,956 (447,070)
	$ 451,886

～47～

Abnova (Taiwan) Corporation

Statement of movements in non-current financial assets measured at fair value through other comprehensive income For the year ended December 31, 2024

(Expressed in Thousands of New Taiwan Dollars)

Beginning balance Shares Fair value 50,000 $ -	Acquisition Shares Amount - -	Disposal Shares Amount - -	Ending balance Shares Fair value 50,000 -
Shares	Shares	Shares	Shares
50,000	-	-	50,000

～48～

Abnova (Taiwan) Corporation Statement of Other Current Assets December 31, 2024

(Expressed in Thousands of New Taiwan Dollars)

Item	Description	Amount $ 14,692 869 1,185	Note
Prepayments Restricted assets Others
		$ 16,746

Statement of Other Non-current Assets

Item	Description	Amount $ 1,781 1,327 543	Note
Guarantee deposits paid Net defined benefit assets Others Total
		$ 3,651

～49～

Abnova (Taiwan) Corporation Statement of movements in investments accounted for using equity method For the year ended December 31, 2024

(Expressed in Thousands of New Taiwan Dollars)

Balance at January 1 Shares Amount 52,700 $ 86,277 130,000 1,154 $ 87,431	Acquisition Shares Amount - - - - -	Acquisition Shares Amount - - - - -	Disposal Shares Amount 51,000 78,227 - 210 78,437	Balance at December 31 Shares Percentag e of ownershi p Amount 1,700 100.00% 8,050 130,000 100.00% 944 8,994	Balance at December 31 Shares Percentag e of ownershi p Amount 1,700 100.00% 8,050 130,000 100.00% 944 8,994	Balance at December 31 Shares Percentag e of ownershi p Amount 1,700 100.00% 8,050 130,000 100.00% 944 8,994	Market value or net assets value Unit price Total amount 4,735 8,050 7.8 1,012 9,062	Market value or net assets value Unit price Total amount 4,735 8,050 7.8 1,012 9,062
	Shares			Shares 1,700 130,000	Percentag e of ownershi p 100.00% 100.00%		Unit price 4,735 7.8
	- -
$ 87,431		-	78,437			8,994		9,062

Note: Please refer to the explanation in Note 6(6).

～50～

Abnova (Taiwan) Corporation Statement of accounts payable December 31, 2024

(Expressed in Thousands of New Taiwan Dollars)

Name		Amount $ 1,861 1,238 1,159 14,724	Amount $ 1,861 1,238 1,159 14,724
Company A Company B Company C Other Total Item
		$ 18,982
Salaries and wages payable Employees’ and directors’ remuneration payable Labor and health insurance and pension payable Other Total	Salaries and wages, overtime pay and bonus Accrued employees’ and directors’ remuneration payable Accrued labor and health insurance and pension payable Accrued expenses payables
			$ 32,300

～51～

Abnova (Taiwan) Corporation Statement of operating costs For the year ended December 31, 2024

(Expressed in Thousands of New Taiwan Dollars)

Item Raw materials and supplies, beginning of year Add: Materials purchased Less: Inventory, end of year Scrapped raw materials and supplies Transferred to expenses Transferred to intangible assets Transferred to other expenses Supplies consumed Direct labor Manufacturing expenses Manufacturing cost Add: Work in process, beginning of year Semi-finished goods, beginning of year Materials purchased Less: Work in process, end of year Semi-finished goods, end of year Scrapped semi-finished goods Transferred to expenses Transferred to other expenses Cost of finished goods Add: Finished goods, beginning of year Testing instruments, beginning of year Merchandise inventory, beginning of year Inventory purchased Less: Finished goods, end of year Testing instruments, end of year Merchandise inventory, end of year Transferred to expenses Transferred to other expenses Scrapped finished goods Cost of inventory sold Inventory disposal loss Loss on price recovery of inventory valuation and obsolescence Total operating costs	Amount Subtotal Total $ 63,404 73,367 (71,267) (2,146) (1,096) (2,000) (10,443) 49,819 12,220 84,098 146,137 9,954 586,351 12,840 (34,414) (568,963) (56,802) (36) (3,243) 91,824 198,268 8,378 8,388 70,229 (205,683) (8,378) (10,251) (18) (337) (1,100) 151,320 60,048 (19,370) $ 191,998	Amount Subtotal Total $ 63,404 73,367 (71,267) (2,146) (1,096) (2,000) (10,443) 49,819 12,220 84,098 146,137 9,954 586,351 12,840 (34,414) (568,963) (56,802) (36) (3,243) 91,824 198,268 8,378 8,388 70,229 (205,683) (8,378) (10,251) (18) (337) (1,100) 151,320 60,048 (19,370) $ 191,998	Amount Subtotal Total $ 63,404 73,367 (71,267) (2,146) (1,096) (2,000) (10,443) 49,819 12,220 84,098 146,137 9,954 586,351 12,840 (34,414) (568,963) (56,802) (36) (3,243) 91,824 198,268 8,378 8,388 70,229 (205,683) (8,378) (10,251) (18) (337) (1,100) 151,320 60,048 (19,370) $ 191,998
			146,137 9,954 586,351 12,840 (34,414) (568,963) (56,802) (36) (3,243)
			91,824 198,268 8,378 8,388 70,229 (205,683) (8,378) (10,251) (18) (337) (1,100) 151,320 60,048 (19,370)
		$ 191,998

～52～

Abnova (Taiwan) Corporation Statement of marketing expenses For the year ended December 31, 2024 (Expressed in Thousands of New Taiwan Dollars)

Item	Description	Amount $ 11,270 10,135 4,853 3,908 12,054	Note
Freight Salaries and wages Packing expenses Advertisement expenses Other expenses	Salaries and wages, overtime pay and bonus		Each amount does not exceed 5% of the account balance.
		$ 42,220

Statement of administrative expenses

Item	Description	Amount $ 25,010 6,020 2,735 2,414 10,033	Note
Salaries and wages Services expenses Miscellaneous expenses Depreciation Other expenses	Salaries and wages, overtime pay and bonus		Each amount does not exceed 5% of the account balance.
		$ 46,212

～53～

Abnova (Taiwan) Corporation Statement of research and development expenses For the year ended December 31, 2024 (Expressed in Thousands of New Taiwan Dollars)

Item	Description	Amount $ 15,711 8,417 8,394 2,497 5,006	Note
Materials for R&D Depreciation Salaries and wages Amortization Other expenses	Salaries and wages, overtime pay and bonus		Each amount does not exceed 5% of the account balance.
		$ 40,025

～54～

AI assistant

Abnova — Annual Report 2024

52384_rns_2024-11-14_2c010778-3a6b-400a-bf52-26500a63f23d.pdf

Abnova (Taiwan) Corporation Parent Company Only Financial Statements

With Independent Auditors’ Report

Table of Contents

Independent Auditors’ Report

Opinion

Basis for Opinion

Key audit matter

1. Inventory valuation

Description of key audit matter:

Responsibilities of management and those charged with governance for the financial statements

Auditor’s responsibilities for the audit of the financial statements

KPMG

Abnova (Taiwan) Corporation

Balance Sheets

December 31, 2024 and 2023

Abnova (Taiwan) Corporation Statements of Comprehensive Income For the years ended December 31, 2024 and 2023 (Expressed in Thousands of New Taiwan Dollars)

Abnova (Taiwan) Corporation Statements of Changes in Equity For the years ended December 31, 2024 and 2023

(Expressed in Thousands of New Taiwan Dollars)

Abnova (Taiwan) Corporation Statements of Cash Flows For the years ended December 31, 2024 and 2023 (Expressed in Thousands of New Taiwan Dollars)

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

Abnova (Taiwan) Corporation Notes to the Financial Statements For the years ended December 31, 2024 and 2023 (Expressed in thousands of New Taiwan Dollars, unless specified otherwise)

1. Company history

2. Approval date and procedures of the financial statements

3. New standards, amendments and interpretations adopted

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

4. Summary of significant accounting policies

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

B. Foreign operations

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

5. Significant accounting assumptions and judgments, and major sources of estimation uncertainty

6. Explanation of significant accounts

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

income

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

(8) Right-of-use assets

(9) Intangible assets

Abnova (Taiwan) Corporation

(10) Lease liabilities

A. Buildings and structures leases

B. Other leases

(11) Employee benefits

A. Defined benefit plans

(a) Composition of plan assets

(b) Movements in present value of defined benefit obligations

(c) Movements in fair value of plan assets

(d) Expenses recognized in profit or loss

(e) Actuarial assumptions

(f) Sensitivity analysis

Influences of defined benefit obligations

B. Defined contribution plans

A. Tax expense

B. Deferred tax assets and liabilities

Abnova (Taiwan) Corporation Notes to the Financial Statements (Cont.)

C. Assessment of tax

(13) Capital and other equity

A. Ordinary shares

B. Capital surplus

Abnova (Taiwan) Corporation

Notes to the Financial Statements (Cont.)

Abnova (Taiwan) Corporation

Notes to the Financial Statements (Cont.)

D. Other equity interest

(14) Earnings per share

A. Basic earnings per share

B. Diluted earnings per share

(a) Profit attributable to ordinary shareholders of the Company (diluted)

Abnova (Taiwan) Corporation

B. Contract balances

Abnova Annual Report 2024