Stock Code:2353

ACER INCORPORATED

Parent-Company-Only Financial Statements With Independent Auditors' Report For the Years Ended December 31, 2025 and 2024

The independent auditors' report and the accompanying parent-company-only financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors' report and parent-company-only financial statements, the Chinese version shall prevail.

Contents	Page
1. Cover Page	1
2. Table of Contents	2
3. Independent Auditors’ Report	3
4. Parent-Company-Only Balance Sheets	4
5. Parent-Company-Only Statements of Comprehensive Income	5
6. Parent-Company-Only Statements of Changes in Equity	6
7. Parent-Company-Only Statements of Cash Flows	7
8. Notes to Parent-Company-Only Financial Statements
(1) Organization and business	8
(2) Authorization of the parent-company-only financial statements	8
(3) Application of new and revised accounting standards and interpretations	8~10
(4) Summary of material accounting policies	10~29
(5) Critical accounting judgments and key sources of estimation and assumption uncertainty	29~30
(6) Significant account disclosures	30~65
(7) Related-party transactions	65~75
(8) Pledged assets	75
(9) Significant commitments and contingencies	76
(10) Significant loss from disaster	76
(11) Significant subsequent events	76
(12) Others	76~77
(13) Additional disclosures
(a) Information on significant transactions	77, 78~88
(b) Information on investees	77, 89~92
(c) Information on investment in Mainland China	77, 93~94
(14) Segment information	77
9. List of major account titles	95~105

KPMG

多快速素群合作計算學合作

KPMG

台北市110615信義路5段7號68樓(台北101大樓)

68F., TAIPEI 101 TOWER, No. 7, Sec. 5,

Xinyi Road, Taipei City 110615, Taiwan (R.O.C.)

電話 Tel +886 2 8101 6666

傳真 Fax +886 2 8101 6667

網址 Web kpmg.com/tw

Independent Auditors’ Report

To the Board of Directors

Acer Incorporated:

Opinion

We have audited the parent-company-only financial statements of Acer Incorporated, which comprise the balance sheets as of December 31, 2025 and 2024, 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 material accounting policies.

In our opinion, the accompanying parent-company-only financial statements present fairly, in all material respects, the parent-company-only financial position of Acer Incorporated as of December 31, 2025 and 2024, and its parent-company-only financial performance and its parent-company-only 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 Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Parent-Company-Only Financial Statements section of our report. We are independent of Acer Incorporated 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 of our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the parent-company-only financial statements of the current period. These matters were addressed in the context of our audit of the parent-company-only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matters for the Company’s parent-company-only financial statements for the year ended December 31, 2025 are stated as follows:

Revenue recognition

Refer to Note 4(p) for the accounting policies on recognizing revenue, and Note 5(a) for uncertainty of accounting estimations and assumptions for sales allowances, respectively, to the parent-company-only financial statements.

KPMG, a Taiwan partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

KPMG
3-1

Description of key audit matter:

Acer Incorporated engaged primarily in the sale of brand-name IT products. Revenue is recognized depending on the various trade terms agreed with customers. This exposes Acer Incorporated to the risk that the sales transactions made close to the balance sheet date are not recorded in the appropriate period. Furthermore, the accrual of sales allowances based on business practice is subject to management’s judgment, which involves significant uncertainty. Consequently, whether revenue is recognized in the appropriate period and accrual of sales allowances have been identified as one of the key audit matters.

How the matter was addressed in our audit:

In relation to the key audit matters above, we have performed certain audit procedures including, among others, testing the design and operating effectiveness of the Acer Incorporated’s internal controls over the timing of revenue recognition; performing a sample test of sales transactions taking place before and after the balance sheet date to ensure that revenue was recognized in the appropriate period; assessing the methodology used by management in estimating sales allowances, including the reasonableness of key assumptions; and inspecting the historical payments of sales allowances to evaluate the reasonableness of the accrual of sales allowances estimated by management.

Business Combinations

Refer to Note 4(i) for the accounting policies on business combinations, Note 5(d) for uncertainty of accounting estimations and assumptions for business combinations and Note 6(h) for the description of the business combination, respectively, to the parent-company-only financial statements.

Description of key audit matter:

Acer Incorporated obtained control over Posiflex Technology, Inc. and its subsidiaries through its subsidiary in 2025. To apply the accounting treatment for business combinations, management is required to assess and determine the fair values of the identifiable net assets acquired and the liabilities assumed. The assessment is complex and involves significant assumptions and estimations and is complex in nature. Accordingly, the recognition and measurement of the business combination has been identified as one of the key audit matters.

How the matter was addressed in our audit:

In relation to the key audit matter above, we have performed certain audit procedures including, among others, obtaining the purchase price allocation report with the valuation of the intangible assets of Posiflex Technology, Inc. and its subsidiaries conducted by an external expert engaged by management; evaluating the reasonableness of the acquired assets and liabilities assumed identified by the management at the acquisition date; consulting internal valuation specialists to assist us in evaluating the reasonableness of the valuation model used and the significant assumptions; assessing whether correct accounting treatment has been applied, and appropriate disclosures with respect to the acquisition have been made.

Impairment of goodwill from investment in subsidiaries

Refer to Note 4(n) for the accounting policies on impairment of non-financial assets, Note 5(c) for uncertainty of accounting estimations and assumptions for goodwill impairment and Note 6(h) for the evaluation of goodwill impairment, respectively, to the parent-company-only financial statements.

KPMG
3-2

Description of key audit matter:

Goodwill arising from acquisition of subsidiaries, which are included within the carrying amount of investments accounted for using the equity method, is subject to impairment test annually or at the time there are indications that goodwill may have been impaired. The assessment of the recoverable amount of the cash-generating unit to which goodwill is allocated involves management’s judgment and estimation with respect to the future cash flows and key assumptions, which are complex and involve significant uncertainty. Accordingly, the assessment of impairment of goodwill has been identified as one of the key audit matters.

How the matter was addressed in our audit:

In relation to the key audit matter above, we have performed certain audit procedures including, among others, assessing the basis used by management for identifying the cash-generating units and whether book value of assets belonging to respective cash-generating units have been completely covered; assessing the appropriateness of the valuation method and key assumptions (in particular projected sales growth rate and weighted-average cost of capital) used by the management in measuring the recoverable amount; assessing the reasonableness of management’s historical estimates of financial forecasts, and performing a sensitivity analysis to assess the impact of variations in key assumptions. In addition to the above audit procedures, we have also involved a valuation specialist to evaluate the appropriateness of the weighted-average cost of capital used and its underlying assumptions; and inspecting the adequacy of disclosures of related information on impairment evaluation of goodwill.

Responsibilities of Management and Those Charged with Governance for the Parent-Company-Only Financial Statements

Management is responsible for the preparation and fair presentation of the parent-company-only 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 parent-company-only financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the parent-company-only financial statements, management is responsible for assessing the Acer Incorporated’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 Acer Incorporated or to cease operations, or has no realistic alternative but to do so.

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

Auditors’ Responsibilities for the Audit of the Parent-Company-Only Financial Statements

Our objectives are to obtain reasonable assurance about whether the parent-company-only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ 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 Standards on Auditing of the Republic of China 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 parent-company-only financial statements.

KPMG

As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the parent-company-only 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 fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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 Acer Incorporated’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, base on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on Acer Incorporated’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the parent-company-only 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 auditors’ report. However, future events or conditions may cause Acer Incorporated to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the parent-company-only financial statements, including the disclosures, and whether the parent-company-only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the investee companies accounted for using the equity method to express an opinion on the parent-company-only 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.

KPMG

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent-company-only financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ 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.

The engagement partners on the audit resulting in this independent auditors’ report are Kao, Ching-Wen and Shih, Wei-Ming.

KPMG

Taipei, Taiwan (Republic of China)
March 12, 2026

Notes to Readers

The accompanying parent-company-only financial statements are intended only to present the parent-company-only financial position, financial performance and cash flows in accordance with the accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such parent-company-only financial statements are those generally accepted and applied in the Republic of China.

The independent auditors’ report and the accompanying parent-company-only financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ report and parent-company-only financial statements, the Chinese version shall prevail.

(English Translation of Parent-Company-Only Financial Statements and Report Originally Issued in Chinese)

ACER INCORPORATED

Parent-Company-Only Balance Sheets

December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

	Assets	December 31, 2025		December 31, 2024
		Amount	%	Amount	%
	Current assets:
1100	Cash and cash equivalents (note 6(a))	$ 5,141,235	3	11,468,571	7
1110	Financial assets measured at fair value through profit or loss - current (note 6(b))	157,661	-	777,726	-
1136	Financial assets measured at amortized cost - current (note 6(g))	874,705	1	785,759	1
1170	Notes and accounts receivable, net (notes 6(c) & (v))	4,637,182	3	4,733,876	3
1180	Notes and accounts receivable from related parties (notes 6(c) & (v) and 7)	23,016,375	14	14,950,427	10
1200	Other receivables, net (note 6(d))	823,672	1	670,312	-
1210	Other receivables from related parties (notes 6(d) and 7)	745,275	1	1,222,997	1
1220	Current income tax assets	666,271	-	102,547	-
130X	Inventories (note 6(e))	13,238,625	8	12,143,167	8
1476	Other financial assets - current (note 6(a))	11,000	-	357,340	-
1479	Other current assets	576,988	-	517,058	-
	Total current assets	49,888,989	31	47,729,780	30
	Non-current assets:
1517	Financial assets measured at fair value through other comprehensive income - non-current (note 6(f))	7,577,869	5	7,886,772	5
1535	Financial assets measured at amortized cost - non-current (note 6(g))	6,673,570	4	7,254,028	5
1550	Investments accounted for using the equity method (note 6(h))	90,704,949	56	87,130,774	56
1600	Property, plant and equipment (note 6(i))	1,885,025	1	1,781,877	1
1755	Right-of-use assets (note 6(j))	153,784	-	129,289	-
1760	Investment property (note 6(k))	812,669	1	828,161	1
1780	Intangible assets (note 6(l))	181,850	-	180,130	-
1840	Deferred income tax assets (note 6(s))	3,232,007	2	3,644,016	2
1980	Other financial assets - non-current (note 8)	225,002	-	155,618	-
1990	Other non-current assets	97,511	-	58,623	-
	Total non-current assets	111,544,236	69	109,049,288	70
	Total assets	$ 161,433,225	100	156,779,068	100

(Continued)

See accompanying notes to parent-company-only financial statements.

4-1

(English Translation of Parent-Company-Only Financial Statements and Report Originally Issued in Chinese)

ACER INCORPORATED

Parent-Company-Only Balance Sheets (Continued)

December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

	Liabilities and Equity	December 31, 2025		December 31, 2024
		Amount	%	Amount	%
	Current liabilities:
2120	Financial liabilities measured at fair value through profit or loss - current (note 6(b))	$ 104,379	-	12,321	-
2130	Contract liabilities - current (note 6(v))	62,759	-	17,236	-
2170	Accounts payable	29,101,316	18	22,860,683	15
2180	Accounts payable to related parties (note 7)	1,779,291	1	1,338,314	1
2200	Other payables (note 6(w))	21,047,595	13	24,191,292	15
2220	Other payables to related parties (note 7)	1,068,083	1	1,008,921	-
2230	Current tax liabilities	1,346,275	1	3,148,586	2
2250	Provisions - current (note 6(p))	707,114	-	727,411	-
2280	Lease liabilities - current (note 6(o))	52,097	-	45,079	-
2321	Current portion of bonds payable (note 6(n))	7,500,000	5	2,500,000	2
2365	Refund liabilities - current	2,593,950	2	2,651,067	2
2399	Other current liabilities	309,793	-	123,228	-
	Total current liabilities	65,672,652	41	58,624,138	37
	Non-current liabilities:
2530	Bonds payable (note 6(n))	5,000,000	3	12,500,000	8
2540	Long-term debt (note 6(m))	9,500,000	6	3,000,000	2
2570	Deferred income tax liabilities (note 6(s))	5,315,183	3	5,531,453	4
2580	Lease liabilities - non-current (note 6(o))	104,811	-	85,373	-
2600	Other non-current liabilities (note 6(r))	226,795	-	196,338	-
2622	Long-term payable to related parties (note 7)	13,635	-	13,635	-
	Total non-current liabilities	20,160,424	12	21,326,799	14
	Total liabilities	85,833,076	53	79,950,937	51
	Equity (notes 6(f) & (t)):
3110	Common stock	30,478,538	19	30,478,538	19
3200	Capital surplus	27,963,060	17	27,876,265	18
3300	Retained earnings	18,424,400	12	19,653,833	13
3400	Other equity	1,446,925	1	1,532,269	1
3500	Treasury stock	(2,712,774)	(2)	(2,712,774)	(2)
	Total equity	75,600,149	47	76,828,131	49
	Total liabilities and equity	$ 161,433,225	100	156,779,068	100

See accompanying notes to parent-company-only financial statements.

(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)

ACER INCORPORATED

Parent-Company-Only Statements of Comprehensive Income

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share)

	2025		2024
		Amount	%	Amount	%
4000	Net revenue (notes 6(v) and 7)	$ 154,861,404	100	159,448,009	100
5000	Cost of revenue (notes 6(e) & (p), 7 and 12)	(147,386,548)	(95)	(151,450,559)	(95)
	Gross profit	7,474,856	5	7,997,450	5
5920	Unrealized profit from intercompany sales	(12,580)	-	(36,402)	-
	Realized gross profit	7,462,276	5	7,961,048	5
	Operating expenses (notes 6(c), (d), (i), (j), (k), (l), (q), (r) & (w), 7 and 12):
6100	Selling expenses	(2,171,143)	(1)	(2,083,365)	(1)
6200	General and administrative expenses	(1,194,309)	(1)	(1,306,240)	(1)
6300	Research and development expenses	(1,103,052)	(1)	(1,698,771)	(1)
	Total operating expenses	(4,468,504)	(3)	(5,088,376)	(3)
6500	Other operating income and expenses, net (notes 6(q) & (x) and 7)	120,752	-	121,355	-
	Operating income	3,114,524	2	2,994,027	2
	Non-operating income and loss:
7100	Interest income (notes 6(y) and 7)	723,872	1	883,943	-
7010	Other income (note 6(y))	253,368	-	227,956	-
7020	Other gains and losses (notes 6(y) and 7)	264,052	-	1,579,640	1
7050	Finance costs (notes 6(o) & (y) and 7)	(316,593)	-	(183,329)	-
7060	Share of profits of subsidiaries, associates and joint ventures (note 6(h))	442,591	-	1,750,364	1
	Total non-operating income and loss	1,367,290	1	4,258,574	2
	Income before taxes	4,481,814	3	7,252,601	4
7950	Income tax expenses (note 6(s))	(701,328)	(1)	(1,713,272)	(1)
	Net Income	3,780,486	2	5,539,329	3
	Other comprehensive income (loss) (notes 6(h), (r), (s) & (t)):
8310	Items that will not be reclassified subsequently to profit or loss
8311	Remeasurements of defined benefit plans	(39,767)	-	31,137	-
8316	Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income	164,272	-	(1,512,286)	(1)
8330	Share of other comprehensive income (loss) of subsidiaries, associates and joint ventures	517,211	-	(127,786)	-
8349	Income tax related to items that will not be reclassified subsequently to profit or loss	7,953	-	(6,227)	-
	Total items that will not be reclassified subsequently to profit or loss	649,669	-	(1,615,162)	(1)
8360	Items that may be reclassified subsequently to profit or loss
8361	Exchange differences on translation of foreign operations	(569,902)	-	2,980,318	2
8380	Share of other comprehensive losses of associates	(89)	-	(221)	-
8399	Income tax related to items that may be reclassified subsequently to profit or loss	-	-	-	-
	Total items that may be reclassified subsequently to profit or loss	(569,991)	-	2,980,097	2
	Other comprehensive income, net of taxes	79,678	-	1,364,935	1
	Total comprehensive income for the year	$ 3,860,164	2	6,904,264	4
	Earnings per share (in New Taiwan Dollars) (note 6(u)):
9750	Basic earnings per share	$	1.26		1.84
9850	Diluted earnings per share	$	1.25		1.84

See accompanying notes to parent-company-only financial statements.

(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)

ACER INCORPORATED

Parent-Company-Only Statements of Changes in Equity

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

	Retained earnings						Other equity
	Common stock	Capital surplus	Legal reserve	Special reserve	Unappropriated retained earnings	Total	Foreign currency translation differences	Unrealized gain (loss) from financial assets measured at fair value through other comprehensive income	Remeasurements of defined benefit plans	Total	Treasury stock
Balance at January 1, 2024	$ 30,478,538	27,805,176	3,011,327	7,313,941	8,165,718	18,490,986	(3,799,702)	4,170,049	294,251	664,398	(2,712,774)
Net income for the year	-	-	-	-	5,539,329	5,539,329	-	-	-	-	5,539,329
Other comprehensive income (loss) for the year	-	-	-	-	-	-	2,980,318	(1,503,281)	(112,102)	1,364,935	-
Total comprehensive income (loss) for the year	-	-	-	-	5,539,329	5,539,329	2,980,318	(1,503,281)	(112,102)	1,364,935	-
Appropriation and distribution of retained earnings:
Legal reserve	-	-	816,562	-	(816,562)	-	-	-	-	-	-
Cash dividends	-	-	-	-	(4,876,566)	(4,876,566)	-	-	-	-	(4,876,566)
Adjustments of capital surplus for the cash dividends distributed to subsidiaries	-	66,634	-	-	-	-	-	-	-	-	66,634
Share of changes in equity of associates	-	4,982	-	-	-	-	-	-	-	-	4,982
Changes in ownership interests in subsidiaries	-	108,685	-	-	-	-	(187)	512	2,435	2,760	-
Difference between consideration and carrying amount of subsidiaries acquired or disposed	-	(128,685)	-	-	-	-	27	-	33	60	-
Organizational restructuring under common control	-	4	-	-	-	-	-	-	-	-	4
Stock option compensation cost of subsidiaries	-	19,469	-	-	-	-	-	-	-	-	19,469
Disposal of financial assets measured at fair value through other comprehensive income by the Company	-	-	-	-	499,017	499,017	-	(499,017)	-	(499,017)	-
Disposal of financial assets measured at fair value through other comprehensive income by subsidiaries	-	-	-	-	1,067	1,067	-	(1,067)	-	(1,067)	-
Balance at December 31, 2024	30,478,538	27,876,265	3,827,889	7,313,941	8,512,003	19,653,833	(819,544)	2,167,196	184,617	1,532,269	(2,712,774)
Net income for the year	-	-	-	-	3,780,486	3,780,486	-	-	-	-	3,780,486
Other comprehensive income (loss) for the year	-	-	-	-	-	-	(569,902)	756,312	(106,732)	79,678	-
Total comprehensive income (loss) for the year	-	-	-	-	3,780,486	3,780,486	(569,902)	756,312	(106,732)	79,678	-
Appropriation and distribution of retained earnings:
Legal reserve	-	-	603,941	-	(603,941)	-	-	-	-	-	-
Special reserve	-	-	-	528,327	(528,327)	-	-	-	-	-	-
Cash dividends	-	-	-	-	(5,181,352)	(5,181,352)	-	-	-	-	(5,181,352)
Adjustments of capital surplus for the cash dividends distributed to subsidiaries	-	70,799	-	-	-	-	-	-	-	-	70,799
Share of changes in equity of associates	-	(224,677)	-	-	-	-	-	-	-	-	(224,677)
Changes in ownership interests in subsidiaries	-	85,460	-	-	-	-	784	2,006	1,687	4,477	-
Difference between consideration and carrying amount of subsidiaries acquired or disposed	-	136,103	-	-	-	-	371	640	923	1,934	-
Organizational restructuring under common control	-	(107)	-	-	-	-	-	-	-	-	(107)
Stock option compensation cost of subsidiaries	-	19,217	-	-	-	-	-	-	-	-	19,217
Disposal of financial assets measured at fair value through other comprehensive income by the Company	-	-	-	-	180,179	180,179	-	(180,179)	-	(180,179)	-
Disposal of financial assets measured at fair value through other comprehensive income by subsidiaries	-	-	-	-	(8,746)	(8,746)	-	8,746	-	8,746	-
Balance at December 31, 2025	$ 30,478,538	27,963,060	4,431,830	7,842,268	6,150,302	18,424,400	(1,388,291)	2,754,721	80,495	1,446,925	(2,712,774)

See accompanying notes to parent-company-only financial statements.

(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)

ACER INCORPORATED

Parent-Company-Only Statements of Cash Flows

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

	2025	2024
Cash flows from operating activities:
Income before income tax	$ 4,481,814	7,252,601
Adjustments for:
Adjustments to reconcile profit or loss:
Depreciation	191,033	157,957
Amortization	29,579	32,246
Net loss on financial assets measured at fair value through profit or loss	-	88
Effects of exchange rate changes on financial assets measured at amortized cost	220,508	(252,617)
Interest expense	316,593	183,329
Interest income	(723,872)	(883,943)
Dividend income	(253,368)	(227,956)
Share of profits of subsidiaries, associates and joint ventures	(442,591)	(1,750,364)
Loss (gain) on disposal of property, plant and equipment	84	(15,825)
Loss (gain) on disposal of investments	277,487	(15,007)
Unrealized profit from intercompany sales	12,580	36,402
Total adjustments for profit or loss	(371,967)	(2,735,690)
Changes in operating assets and liabilities:
Changes in operating assets:
Derivative financial instruments measured at fair value through profit or loss	712,123	(1,197,741)
Notes and accounts receivable	96,694	(696,858)
Notes and accounts from related parties	(8,065,948)	(1,932,009)
Inventories	(1,107,388)	1,635,864
Other receivables and other current assets	(205,206)	(227,657)
Other non-current assets	(43,851)	(24,208)
Changes in operating assets	(8,613,576)	(2,442,609)
Changes in operating liabilities:
Accounts payable	6,240,633	(8,095,485)
Payables to related parties	200,810	421,552
Refund liabilities	(57,117)	6,981
Other payables and other current liabilities	(2,959,680)	2,966,156
Provisions	(20,297)	(69,833)
Contract liabilities	45,523	6,381
Other non-current liabilities and long-term payables to related parties	(9,310)	(384,575)
Changes in operating liabilities	3,440,562	(5,148,823)
Cash used in operations	(1,063,167)	(3,074,521)
Interest received	687,515	799,389
Income taxes paid	(2,863,669)	(496,014)
Net cash used in operating activities	(3,239,321)	(2,771,146)

(Continued)

See accompanying notes to parent-company-only financial statements.

7-1

(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)

ACER INCORPORATED

Parent-Company-Only Statements of Cash Flows (Continued)

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

	2025	2024
Cash flows from investing activities:
Acquisition of financial assets measured at fair value through other comprehensive income	(79,023)	(553,294)
Proceeds from disposal of financial assets measured at fair value through other comprehensive income	358,255	595,723
Proceeds from capital reduction of financial assets measured at fair value through other comprehensive income	143,948	-
Acquisition of financial assets measured at amortized cost	(473,092)	(3,564,872)
Proceeds from repayment of principal of financial assets measured at amortized cost	764,900	470,000
Proceeds from disposal of financial assets measured at fair value through profit or loss	-	729
Acquisition of investments accounted for using the equity method	(6,080,114)	(4,951,103)
Proceeds from disposal of investments accounted for using the equity method	50,343	274,617
Proceeds from capital reduction of investments accounted for using the equity method	1,835,903	-
Acquisition of property, plant and equipment and investment property	(198,869)	(83,519)
Proceeds from disposal of property, plant and equipment	937	33,502
Decrease (increase) in receivables from related parties	485,726	(15,201)
Acquisition of intangible assets	(13,878)	(26,690)
Decrease in other financial assets	276,956	879,724
Increase in assets recognized from costs to fulfill contracts with customers	(12,459)	(5,089)
Dividends received	1,115,470	1,136,381
Net cash flows used in investing activities	(1,824,997)	(5,809,092)
Cash flows from financing activities:
Proceeds from issuing bonds	-	5,000,000
Repayments of bonds	(2,500,000)	-
Increase in long-term debt	6,500,000	1,500,000
Payment of lease liabilities	(66,949)	(67,184)
Increase in loans from related parties	295,000	255,000
Cash dividends	(5,181,352)	(4,876,566)
Interest paid	(309,717)	(125,629)
Net cash flows (used in) provided by financing activities	(1,263,018)	1,685,621
Net decrease in cash and cash equivalents	(6,327,336)	(6,894,617)
Cash and cash equivalents at beginning of period	11,468,571	18,363,188
Cash and cash equivalents at end of period	$ 5,141,235	11,468,571

See accompanying notes to parent-company-only financial statements.

(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars, Except for Per Share Information And Otherwise Specified)

1. Organization and business

Acer Incorporated (the “Company”) was incorporated on August 1, 1976, as a company limited by shares under the laws of the Republic of China (“R.O.C.”) and registered under the Ministry of Economic Affairs, R.O.C.

The Company is primarily engaged in marketing and sale of brand-name IT products. The Company also builds innovative ecosystems in consumer and commercial markets to provide more products and integrated applications along with software, hardware and related services. In addition, the Company aims at building multiple business engines to foster innovation of products and application services for market expansion.

2. Authorization of the parent-company-only financial statements

These parent-company-only financial statements were authorized for issuance by the Board of Directors on March 12, 2026.

3. Application of new and revised accounting standards and interpretations:

(a) The impact of the International Financial Reporting Standards (“IFRS Accounting Standards”) 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, 2025:

Amendments to IAS 21 “Lack of Exchangeability”

(b) The impact of IFRS Accounting Standards endorsed by the FSC but not yet effective

The Company assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2026, would not have a significant impact on its financial statements:

IFRS 17 “Insurance Contracts” and amendments to IFRS 17 “Insurance Contracts”
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments”
Annual Improvements to IFRS Accounting Standards—Volume 11
Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(c) The impact of IFRS Accounting Standards issued by the International Accounting Standards Board (“IASB”) but not yet endorsed by the FSC

The following new and amended standards, which may be relevant to the Company, have been issued by the IASB, but have yet to be endorsed by the FSC:

Standards or Interpretations	Content of amendment	Effective date per IASB
IFRS 18 “Presentation and Disclosure in Financial Statements”	The new standard introduces three categories of income and expenses, two income 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 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 (MPMs): 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. | January 1, 2027
note: On September 25, 2025, the FSC issued a press release announcing that Taiwan will adopt IFRS 18 beginning in 2028. Companies could elect to early adopt IFRS 18, when necessary, after the endorsement by the FSC. |

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

The Company is evaluating the impact on its financial position and financial performance upon the initial adoption of the abovementioned standards or interpretations. The results thereof will be disclosed when the Company completes its evaluation.

The Company does not expect the following other new and amended standards, which have yet to be endorsed by the FSC, to 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 19 “Subsidiaries without Public Accountability: Disclosures” and amendments to IFRS 19 “Subsidiaries without Public Accountability: Disclosures”
Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency”

4. Summary of material accounting policies

The material accounting policies presented in the parent-company-only financial statements are summarized as follows. The following accounting policies have been applied consistently to all periods presented in these financial statements.

(a) Statement of compliance

The accompanying parent-company-only financial statements have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” (the “Regulations”).

(b) Basis of preparation

(i) Basis of measurement

The accompanying parent-company-only financial statements have been prepared on a historical cost basis except for the following items:

1) Financial instruments measured at fair value through profit or loss (including derivative financial instruments);
2) Financial assets measured at fair value through other comprehensive income; and
3) Net defined benefit liability measured at present value of defined benefit obligation less the fair value of plan assets and limited as explained in note 4(r).

(ii) Functional and presentation currency

The functional currency of the Company is determined based on the primary economic environment in which the Company operates. The Company’s parent-company-only financial statements are presented in New Taiwan Dollars (NTD), which is the Company’s functional currency. Except when otherwise indicated, all financial information presented in New Taiwan Dollars has been rounded to the nearest thousand.

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(i) Foreign currency transactions

Transactions in foreign currencies are translated into the functional currency of the Company using the exchange rates prevailing at the dates of the transactions. At the end of each reporting period (“the reporting date”), 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 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 at 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 an investment in equity securities designated as at fair value through other comprehensive income, which are recognized in other comprehensive income.

(ii) Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising from acquisition, are translated into the presentation currency of the Company’s parent-company-only financial statements at the exchange rates at the reporting date. The income and expenses of foreign operations, excluding foreign operations in hyperinflationary economies, are translated into the presentation currency of the Company’s parent-company-only financial statements at the average exchange rates for the period. All resulting exchange differences are recognized in other comprehensive income.

When a foreign operation is disposed of such that control, joint control, or significant influence is lost, the accumulated exchange differences related to that foreign operation is reclassified to profit or loss. In the case of a partial disposal that does not result in the Company losing control over a subsidiary, the proportionate share of the accumulated exchange differences is reclassified to non-controlling interests. For a partial disposal of the Company’s ownership interest in an associate or joint venture, the proportionate share of the accumulated exchange differences in equity 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, the monetary item is, in substance, a part of net investment in that foreign operation, and the related foreign exchange gains and losses thereon are recognized as other comprehensive income.

(d) Classification of current and non-current assets and liabilities

The Company classifies the asset as current under one of the following criteria, and all other assets are classified as non-current.

(i) It is expected to be realized, or intended to be sold or consumed, in the normal operating cycle;

(ii) It is held primarily for the purpose of trading;

(iii) It is expected to be realized within twelve months after the reporting period; or

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(iv) The asset is cash or a cash equivalent (as defined in IAS 7) unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

The Company classifies the liability as current under one of the following criteria, and all other liabilities are classified as non-current.

(i) It is expected to be settled in the normal operating cycle;
(ii) It is held primarily for the purpose of trading;
(iii) It is due to be settled within twelve months after the reporting period; or
(iv) The Company does not have the right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period.

(e) Cash and cash equivalents

Cash consists of cash on hand, checking deposits, and demand deposits. Cash equivalents consist of short-term and 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 that 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 classified as cash equivalents.

(f) Financial instruments

Trade 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 a trade 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 issuance. A trade receivable without a significant financing component is initially measured at the transaction price.

(i) Financial assets

On initial recognition, a financial asset is classified as measured at: amortized cost, fair value through other comprehensive income (FVOCI), or fair value through profit or loss (FVTPL). All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

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.

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

1) 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 financial 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 (SPPI) 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.

2) Fair value through other comprehensive income ("FVOCI")

A debt investment is measured at FVOCI 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 achieved by both collecting contractual cash flows and selling financial assets; 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.

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.

Debt investments at FVOCI are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment loss are recognized in profit or loss. Other net gains and losses are recognized in other comprehensive income. On derecognition, other comprehensive income accumulated in equity are reclassified to profit or loss.

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. On derecognition, other comprehensive income accumulated in equity is reclassified to retained earnings and is never reclassified to profit or loss.

Dividend income derived from equity investments is recognized on the date that the Company's right to receive the dividends is established (usually the ex-dividend date).

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

3) Fair value through profit or loss ("FVTPL")

All financial assets not classified as measured at amortized cost or at FVOCI described as above (e.g. financial assets held for trading and those that are managed and whose performance is evaluated on a fair value basis) are measured at FVTPL, including derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset, which meets the requirements to be measured at amortized cost or at FVOCI, as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

These assets are subsequently measured at fair value. Net gains and losses, including any dividend and interest income, are recognized in profit or loss.

4) 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 receivable, other receivables and other financial assets) and contract assets.

The Company measures loss allowances for accounts receivable, contract assets and other financial assets at an amount equal to lifetime ECL, except for the following financial assets which are measured using 12-month ECL:

debt securities that are determined to have low credit risk at the reporting date; 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.

Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument. 12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).

The maximum period considered when estimating ECLs is the maximum contractual period over which the Company is exposed to credit risk.

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

ECLs are probability-weighted estimate of credit losses over the expected life of financial assets. 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.

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

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. 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.

5) 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 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.

(ii) Financial liabilities and equity instruments

1) Classification of debt or equity

Debt and equity instruments issued by the Company are classified as financial liabilities or equity in accordance with the substance of the contractual agreements and the definitions of a financial liability and an equity instrument.

2) Equity instruments

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 are recognized at the amount of consideration received, less the direct issuing cost.

3) Treasury stock

When shares recognized as equity are repurchased, the amount of the consideration paid, including directly attributable costs, is recognized as a deduction from equity. Repurchased shares are classified as treasury stock. When treasury stock is sold or reissued subsequently, the amount received is recognized as an increase in equity, and the resulting surplus or deficit on the transaction is recognized in capital surplus or retained earnings (if the capital surplus is not sufficient to be written down).

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

4) Financial liabilities

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is held for trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss.

Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss.

5) Derecognition of financial liabilities

The Company derecognizes a financial liability when its contractual obligation has been fulfilled or cancelled, or has expired. The Company also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value. The difference between the carrying amount of a financial liability derecognized and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

6) Offsetting of financial assets and liabilities

Financial assets and liabilities are presented on a net basis only when the Company has the legally enforceable right to offset and intends to settle such financial assets and liabilities on a net basis or to realize the assets and settle the liabilities simultaneously.

(iii) Derivative financial instruments

The Company uses derivative financial instruments to hedge its foreign currency exposures. Embedded derivatives are separated from the host contract and accounted for separately if the host contract is not a financial asset and certain criteria are met. Derivatives are initially measured at fair value. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are recognized in profit or loss.

(g) Inventories

Inventories are measured at the lower of cost and net realizable value. The cost of inventories is calculated using the weighted-average method, and includes expenditure incurred in bringing them to their existing location and condition. Net realizable value represents the estimated selling price in the ordinary course of business, less all estimated costs of completion and necessary selling expenses.

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(h) Investments accounted for using the equity method

Investments accounted for using the equity method include investments in associates and interests in joint venture.

An associate is an entity in which the Company has significant influence, but not control or joint control, over their financial and operating policies.

Investments in associates are accounted for using the equity method and are recognized initially at cost. The cost of the investment includes transaction costs. The carrying amount of the investment in associates includes goodwill arising from the acquisition less any accumulated impairment losses. When necessary, the entire carrying amount of the investment (including goodwill) will be tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

The Company recognizes its share of the profit or loss and other comprehensive income of those associates, after adjustments to align its accounting policies with those of the Company, from the date on which significant influence commences until the date on which significant influence ceases. The Company recognizes any changes of its proportionate share in the investee within capital surplus, when an associate’s equity changes due to reasons other than profit and loss or comprehensive income, which did not result in changes in percentage of ownership.

Gains and losses resulting from transactions between the Company and an associate are recognized only to the extent of unrelated investors’ interests in the associate.

When the Company’s share of losses of an associate equals or exceeds its interests in an associate, it discontinues recognizing its share of further losses. After the recognized interest is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the associate.

The Company discontinues the use of the equity method and measures the retained interest at fair value from the date when its investment ceases to be an associate. The difference between the fair value of retained interest and proceeds from disposing of a part interest in the associate, and the carrying amount of the investment at the date the equity method was discontinued is recognized in profit or loss. The Company accounts for all the amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would have been required if the associates had directly disposed of the related assets or liabilities. If a gain or loss previously recognized in other comprehensive income would be reclassified to profit or loss (or retained earnings) on the disposal of the related assets or liabilities, the Company reclassifies the gain or loss from equity to profit or loss (or retained earnings) when the equity method is discontinued. If the Company’s ownership interest in an associate is reduced while it continues to apply the equity method, the Company reclassifies the proportion of the gain or loss that had previously been recognized in other comprehensive income relating to the reduction in ownership interest to profit or loss (or retained earnings).

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

When the Company subscribes to additional shares in an associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment will differ from the amount of the Company’s proportionate interest in the net assets of the associate. The Company records such a difference as an adjustment to investments, with the corresponding amount charged or credited to capital surplus. If the adjustments are charged to capital surplus and the capital surplus resulting from investments accounted for using the equity method is not sufficient, the remaining difference is debited to retained earnings. If the Company’s ownership interest is reduced due to the additional subscription to the shares of the associate by other investors, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate will be reclassified to profit or loss on the same basis as would be required if the associate had directly disposed of the related assets or liabilities.

A joint venture is a joint arrangement whereby the Company has joint control of the arrangement (i.e. joint ventures) in which the Company has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities. The Company recognizes its interest in a joint venture as an investment and accounts for that investment using the equity method in accordance with IAS 28 “Investments in Associates and Joint Ventures”, unless the Company qualifies for exemption from that Standard.

When assessing the classification of a joint arrangement, the Company considers the structure and legal form of the arrangement, the terms in the contractual arrangement, and other facts and circumstances. When the facts and circumstances change, the Company reevaluates whether the classification of the joint arrangement has changed.

(i) Investments 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. Carrying amount of investments in subsidiaries includes goodwill arising from initial recognition less any accumulated impairment losses, which is recognized as a reduction of carry amount. Under the equity method, profit or loss and other comprehensive income recognized in parent-company-only financial statement is in line with total comprehensive income attributable to owners of the Parent in the consolidated financial statements. In addition, changes in equity recognized in parent-company-only financial statement is in line with the changes in equity attributable to owners of parent in the consolidated financial statements. Changes in a parent’s ownership interest in a subsidiary that do not result in the loss of control are accounted for within equity.

The Company uses acquisition method for acquisitions of subsidiaries. The goodwill arising from an acquisition is measured as the excess of the acquisition-date fair value of consideration transferred, including the amount of non-controlling interest in the acquiree, over the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed (generally at fair value). If the amount calculated above is a deficit balance, the Company recognizes that amount as a gain on a bargain purchase in profit or loss immediately after reassessing whether it has correctly identified all of the assets acquired and all of the liabilities assumed. For each business combination, non-controlling interest in the acquiree is measured either at fair value or at the non-controlling interest’s proportionate share of the fair value of acquiree’s identifiable net assets.

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

In an acquisition of new subsidiary achieved in stages, the Company shall remeasure its previously held equity interest in the acquiree at its acquisition-date fair value and recognize the resulting gain or loss in profit or loss. The amount previously recognized in other comprehensive income in relation to the changes in the value of the Company’s equity interest should be reclassified to profit or loss on the same basis as would be required if the Company had disposed directly of the previously held equity interest.

If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, provisional amounts for the items for which the accounting is incomplete are reported in the financial statements. During the measurement period, the provisional amounts recognized at the acquisition date are retrospectively adjusted, or additional assets or liabilities are recognized, to reflect new information obtained about facts and circumstances that existed as of the acquisition date. The measurement period shall not exceed one year from the acquisition date.

Acquisition-related costs are expensed as incurred except for the costs related to issuance of debt or equity instruments.

(j) Property, plant and equipment

(i) Recognition and measurement

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.

(ii) Reclassification to investment property

A property is reclassified to investment property at its carrying amount when the purpose of the property changes from owner-occupied to investment.

(iii) Subsequent costs

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

(iv) Depreciation

Depreciation is calculated on the cost of assets less their residual values 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 are as follows: buildings — main structure - 30 to 50 years; air-conditioning system - 10 years; other equipment pertaining to buildings - 20 years; computer and communication equipment - 3 to 5 years; other equipment - 3 to 10 years.

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

Depreciation methods, useful lives, and residual values are reviewed at each financial year-end, with the effect of any changes in estimate accounted for on a prospective basis.

(k) Investment property

Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of business or for administrative purposes. Investment property is measured at cost on initial recognition, and subsequently at cost, less accumulated depreciation and accumulated impairment losses. The methods for depreciating and determining the useful life and residual value of investment property are the same as those adopted for property, plant and equipment.

Rental income from investment property is recognized as other operating income and expenses on a straight-line basis over the term of the lease. Lease incentives granted are recognized as an integral part of the total rental income, over the term of the lease.

An investment property is reclassified to property, plant and equipment at its carrying amount when the purpose of the investment property has been changed from investment to owner-occupied.

(l) 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.

(i) 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.

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 evaluated and 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.

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

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

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

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

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

At inception or on reassessment of whether a contract contains a lease, the Company allocates the consideration in the contract to each lease component on the basis of their relative standalone prices. However, for the leases of land and buildings, the Company has elected not to separate non-lease components and account for each lease component and any associated non-lease components as a single lease component.

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 the difference in profit or loss for any gain or loss relating to the partial or full termination of the lease.

The Company presents right-of-use assets that do not meet the definition of investment properties and lease liabilities as a separate line item respectively in the parent-company-only balance sheets.

The Company has elected not to recognize right-of-use assets and lease liabilities for 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.

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(ii) As a lessor

When the Company acts as a lessor, it determines at lease commencement whether each lease is a finance lease or an operating lease. To classify each lease, the Company makes an overall assessment of whether the lease transfers to the lessee substantially all the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then the lease is an operating lease. As part of this assessment, the Company considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease. If a head lease is a short-term lease to which the Company applies the exemption described above, then it classifies the sub-lease as an operating lease.

For operating lease, the Company recognizes rental income on a straight-line basis over the lease term.

(m) Intangible assets

(i) Goodwill

Goodwill arising from acquisitions of subsidiaries is accounted for as intangible assets. Please refer to note 4(i) for the description of the measurement of goodwill at initial recognition. Goodwill arising from acquisitions of subsidiaries and associates are included in the carrying amount of investments in associates. Goodwill is not amortized but is measured at cost less accumulated impairment losses.

(ii) Trademarks

Trademarks are measured at cost. Subsequent to the initial recognition, trademarks with definite useful lives are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is recognized on a straight-line basis. Trademarks with indefinite useful lives are carried at cost less any accumulated impairment losses and are tested for impairment annually. The useful life of an intangible asset not subject to amortization is reviewed annually at each financial year-end to determine whether events and circumstances continue to support an indefinite useful life assessment for the asset. Any change in the useful life assessment from indefinite to definite is accounted for as a change in accounting estimate.

(iii) Other intangible assets

Other separately acquired intangible assets are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is recognized in profit or loss on a straight-line basis over the following estimated useful lives: patents - 4 to 15 years; acquired software - 1 to 3 years.

The residual value, amortization period, and amortization method are reviewed at least at each financial year-end, with the effect of any changes in estimate accounted for on a prospective basis.

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(n) Impairment of non-financial assets

The Company assesses at the end of each reporting date whether there is any indication that the carrying amounts of non-financial assets (other than inventories and deferred tax assets) may be impaired. If any such indication exists, then the asset’s recoverable amount is estimated. Goodwill is tested annually or when there are indications of impairment.

For the purpose of 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 from other assets or groups of assets. Goodwill arising from a business combination is allocated to cash-generating units (“CGUs”) or groups of CGUs that are expected to benefit from the synergies of the combination.

The recoverable amount of an individual asset or CGU is the higher 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. Impairment losses are recognized in profit or loss. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis.

An impairment loss in respect of goodwill is not reversed. For other non-financial assets, an impairment loss is reversed only to the extent that the asset’s carrying amount that would have been determined (net of depreciation or amortization) had no impairment loss been recognized for the assets in prior years.

(o) Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

(i) Warranties

A provision for warranties is recognized when the underlying products or services are sold. This provision reflects the historical warranty claim rate and the weighting of all possible outcomes against their associated probabilities.

(ii) Others

Provisions for litigation claims and environmental restoration are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(p) Revenue recognition

(i) 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 or services to a customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control of a good or a service to a customer. The accounting policies for the Company’s main types of revenue are explained below.

1) Sale of goods

The Company recognizes revenue when control of the products has been transferred, being when the products are delivered to the customer, 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 recognizes revenue based on the price specified in the contract, net of the estimated volume discounts and rebates. Accumulated experience is used to estimate the discounts and rebates using the expected value method, and revenue is only recognized to the extent that it is highly probable that a significant reversal will not occur. A refund liability is recognized for expected sales discounts and rebate payable to customers in relation to sales made until the end of the reporting period. No element of financing is deemed present as the sales are made with a credit term ranged from 30 to 90 days, which is consistent with the market practice.

The Company’s obligation to provide a refund for faulty goods under the standard warranty terms is recognized as a provision for warranty. Please refer to note 6(p) for more explanation.

A receivable is recognized when the goods are delivered as this is the point in time that the Company has a right to an amount of consideration that is unconditional.

2) Revenue from service rendered

The Company provides system implementation or integration services to enterprise customers. Revenue from providing services is recognized in the accounting periods in which the services are rendered. For performance obligations that are satisfied over time, revenue is recognized based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided. The proportion of services provided is determined based on the portion of the work performed, the time passed by, or the milestone reached.

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

Estimates of revenues, costs, or extent of progress toward completion, are revised if circumstances change. Any resulting increases or decreases in estimated revenues or costs are reflected in profit or loss in the period in which the circumstances that give rise to the revision become known by the management.

In case of fixed-price contracts, the customer pays the fixed amount based on a payment schedule. If the accumulated revenue recognized by the Company exceed the payments, a contract asset is recognized. If the payments exceed the accumulated revenue recognized, a contract liability is recognized.

3) Financing components

The Company does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and the payment made by the customer exceeds one year. As a consequence, the Company does not adjust any of the transaction prices for the time value of money.

(ii) Contract costs

1) Incremental costs of obtaining a contract

The Company recognizes the incremental costs of obtaining a contract with a customer as an asset if the Company expects to recover those costs. The incremental costs of obtaining a contract are those costs that the Company incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained. Costs to obtain a contract that would have been incurred, regardless of whether the contract was obtained, shall be recognized as an expense when incurred, unless those costs are explicitly chargeable to the customer regardless of whether the contract is obtained.

The Company applies the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the Company otherwise would have recognized is one year or less.

2) Assets recognized from costs to fulfill contracts with customers

If the costs incurred in fulfilling a contract with a customer are not within the scope of another Standard (e.g., IAS 2 Inventories, IAS 16 Property, Plant and Equipment or IAS 38 Intangible Assets), the Company recognizes an asset from the costs incurred to fulfil a contract only if those costs meet all of the following criteria:

the costs relate directly to a contract or to an anticipated contract that the Company can specifically identify;
the costs generate or enhance resources of the Company that will be used in satisfying (or in continuing to satisfy) performance obligations in the future; and
the costs are expected to be recovered.

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

General and administrative costs, costs of wasted materials, labor or other resources to fulfil the contract that were not reflected in the price of the contract, costs that relate to satisfied performance obligations (or partially satisfied performance obligations), and costs for which the Company cannot distinguish whether the costs relate to unsatisfied performance obligations or to satisfied performance obligations (or partially satisfied performance obligations) are recognized as expenses when incurred.

(q) Government grant

A government grant is recognized in profit or loss only when there is reasonable assurance that the Company will comply with the conditions associated with the grant and that the grant will be received.

A government grant is recognized in profit or loss in the period in which it becomes receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Company without future related costs.

Government grant is recorded in other operating income and expenses, net.

(r) Employee benefits

(i) Defined contribution plans

Obligations for contributions to defined contribution pension plans are expensed during the year in which employees render services.

(ii) Defined benefit plans

The Company’s net obligation in respect of defined benefit plans is calculated separately for each plan 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 discount rate for calculating the present value of the defined benefit obligation refers to the interest rate of high-quality government bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating the terms of the related pension obligation. The defined benefit obligation is calculated annually by qualified actuaries using the projected unit credit method.

When the benefits of a plan are improved, the expenses related to the increased obligations resulting from the services rendered by employees in the past years are recognized in profit or loss immediately.

The remeasurements of the net defined benefit liability (asset) comprise (i) actuarial gains and losses; (ii) return on plan assets, excluding amounts included in net interest on the net defined benefit liability (asset); and (iii) any change in the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability (asset). The remeasurements of the net defined benefit liability (asset) are recognized in other comprehensive income and reflected in other equity.

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

The Company recognizes gains or losses on the curtailment or settlement of a defined benefit plan when the curtailment or settlement occurs. The gain or loss on curtailment or settlement comprises any resulting change in the fair value of plan assets and any change in the present value of the defined benefit obligation.

(iii) Short-term employee benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed during the period in which employees render services. A liability is recognized for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Company has a present legal or constructive obligation to make such payments as a result of past service provided by the employees, and the obligation can be estimated reliably.

(s) Share-based payment

The grant-date fair value of equity-settled share-based payment arrangements granted to employees is generally recognized as an expense, with a corresponding increase in equity, over the vesting period of the awards. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to be met, and the amount ultimately recognized is based on the number of awards that meet the related service and non-market performance conditions at the vesting date.

For share-based payment awards with non-vesting conditions, the grant-date fair value of the share-based payment is measured to reflect such conditions and there is no true-up for differences between expected and actual outcomes.

The grant date of options for employees to subscribe new shares for a cash injection is the date when the Board of Directors approves the exercise price and the shares to which employees can subscribe.

(t) Income taxes

Income taxes comprise current taxes and deferred taxes. Current and deferred taxes are recognized in profit or loss unless they relate to business combinations or items recognized directly in equity or other comprehensive income.

The Company has determined that interest and penalties related to income taxes, including uncertain tax treatment, do not meet the definition of income taxes, and therefore accounted for them under IAS37.

The Company has determined that the global minimum top-up tax – which it is required to pay under Pillar Two legislation – is an income tax in the scope of IAS 12. The Company has applied a temporary mandatory relief from deferred tax accounting for the impacts of the top-up tax and accounts for it as a current tax when it is incurred.

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 that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date.

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

Deferred taxes arise due to temporary differences between the carrying amounts of assets and liabilities at the reporting date and their respective tax bases. Deferred taxes are recognized except for the following:

(i) Temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and at the time of the transaction (1) affects neither accounting nor taxable profits (losses) and (2) does not give rise to equal taxable and deductible temporary differences;

(ii) Temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Company is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and

(iii) Taxable temporary differences arising on the initial recognition of goodwill.

Deferred tax assets are recognized for unused tax losses, 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 reduced to the extent that it is no longer probable that the related tax benefit will be realized; such reductions are reversed when the probability of future taxable profits improves.

Deferred taxes are measured at tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date, and reflect uncertainty related to income taxes, if any.

Deferred tax assets and liabilities are offset if the following criteria are met:

(i) the Company has a legally enforceable right to set off current tax assets against current tax liabilities; and

(ii) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either:

1) the same taxable entity; or

2) 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.

(u) Earnings per share ("EPS")

The basic and diluted EPS attributable to stockholders of the Company are disclosed in the financial statements. Basic EPS is calculated by dividing net income attributable to stockholders of the Company by the weighted-average number of common shares outstanding during the year. In calculating diluted EPS, the net income attributable to stockholders of the Company and weighted-average number of common shares outstanding during the year are adjusted for the effects of dilutive potential common shares. The Company's dilutive potential common shares include profit sharing for employees to be settled in the form of common stock.

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(v) Operating segments

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

5. Critical accounting judgments and key sources of estimation and assumption uncertainty

In preparing the parent-company-only financial statements, management has made judgments and estimates about the future, including climate-related risks and opportunities, which affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis and are consistent with the Company’s risk management and climate-related commitments where appropriate. Revisions to estimates are recognized prospectively in the period of the change and future periods.

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year is included as follows:

(a) Revenue recognition (accrual of sales allowance)

The Company records a refund liability for estimated future allowances in the same period the related revenue is recognized. Refund liability for estimated sales allowances is generally made and adjusted based on historical experience, channel inventory, market and economic conditions, and any other factors that would significantly affect the allowance. The adequacy of estimations is reviewed periodically. The fierce market competition and rapid evolution of technology could result in significant adjustments to the accruals made.

(b) Valuation of inventory

Inventories are measured at the lower of cost or net realizable value. The Company uses judgment and estimates to determine the net realizable value of inventory at each reporting date.

The Company estimates the net realizable value of inventory, taking obsolescence and unmarketable items into account at the reporting date, and then writes down the cost of inventories to net realizable value. The net realizable value of the inventory is mainly determined based on assumptions of future demand within a time horizon, which could result in significant adjustments. Please refer to note 6(e) for further description of inventory write-downs.

The assessment of impairment of goodwill requires the Company to make subjective judgments to identify cash-generating units, allocate the goodwill to relevant cash-generating units, and estimate the recoverable amount of relevant cash-generating units. Any changes in these estimates based on changed economic conditions or business strategies could result in significant adjustments in future years. Please refer to note 6(h) for further description of the impairment of goodwill.

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(d) Acquisition of subsidiaries

The fair value of identifiable net assets acquired in a business combination is the provisional amount and will be finalized until the completion of valuation. The Company's subsidiaries continuously review the abovementioned items during the measurement period. If there is any information discovered within one year from the acquisition date about facts and circumstances that existed at the acquisition date which leads to an adjustment to the above provisional amounts, or any additional liability provisions existed as at the acquisition date, the acquisition accounting will be updated.

6. Significant account disclosures

(a) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash on hand	$ 579	599
Bank deposits	2,620,781	5,552,641
Time deposits with original maturities less than three months	2,519,875	5,915,331
	$ 5,141,235	11,468,571

As of December 31, 2025 and 2024, the time deposits with original maturities between three months and one year amounted to $11,000 and $357,340, respectively, which were classified as other financial assets—current.

(b) Financial instruments measured at fair value through profit or loss—current

	December 31, 2025	December 31, 2024
Financial assets mandatorily measured at fair value through profit or loss:
Derivative instruments not used for hedging
Foreign currency forward contracts	$ 157,661	777,726
Financial liabilities held for trading—current:
Derivatives—Foreign currency forward contracts	$ (104,379)	(12,321)

Please refer to note 6(y) for the amounts recognized in profit or loss arising from remeasurement at fair value.

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

The Company entered into derivative contracts to manage foreign currency exchange risk arising from operating activities. At each reporting date, the outstanding foreign currency forward contracts that did not conform to the criteria for hedge accounting consisted of the following (the contract amount was presented in USD):

(i) Foreign currency forward contracts

December 31, 2025
Contract amount (in thousands)		Currency		Maturity period
USD	473,700	USD	/ NTD	2026/01
USD	293,925	EUR	/ USD	2026/01~2026/05
USD	2,216	NZD	/ USD	2026/01~2026/03
USD	72,399	AUD	/ USD	2026/01~2026/05
USD	20,956	USD	/ JPY	2026/01~2026/10
USD	164,756	USD	/ INR	2026/01~2026/09
December 31, 2024
Contract amount (in thousands)		Currency		Maturity period
USD	408,000	USD	/ NTD	2025/01
USD	303,573	EUR	/ USD	2025/01~2025/05
USD	2,413	NZD	/ USD	2025/01~2025/03
USD	45,432	AUD	/ USD	2025/01~2025/05
USD	35,658	USD	/ JPY	2025/01~2025/09
USD	160,696	USD	/ INR	2025/01~2025/09

	December 31, 2025	December 31, 2024
Notes receivable	$ 7,809	10,267
Accounts receivable	4,630,833	4,725,069
Less: loss allowance	(1,460)	(1,460)
	4,637,182	4,733,876
Notes and accounts receivable from related parties (note 7(b))	23,016,375	14,950,427
	$ 27,653,557	19,684,303

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

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. Forward looking information is taken into consideration as well. Analysis of expected credit losses on notes and accounts receivable was as follows:

	December 31, 2025
	Gross carrying amount	Weighted-average loss rate	Loss allowance
Current	$ 3,932,914	0.04%	(1,460)
Past due 1-30 days	631,738	0.00%	-
Past due 31-60 days	67,070	0.00%	-
Past due 61-90 days	5,245	0.00%	-
Past due 91-180 days	1,675	0.00%	-
	$ 4,638,642		(1,460)
	December 31, 2024
	Gross carrying amount	Weighted-average loss rate	Loss allowance
Current	$ 3,618,281	0.04%	(1,460)
Past due 1-30 days	785,284	0.00%	-
Past due 31-60 days	36,732	0.00%	-
Past due 61-90 days	89,641	0.00%	-
Past due 91-180 days	205,398	0.00%	-
	$ 4,735,336		(1,460)

As of December 31, 2025 and 2024, except for the loss allowance of $8,083 and $19,895 provided for notes and accounts receivable from related parties in 2025 and 2024, respectively, which was also written off in the same year, no expected credit losses were provided for other notes and accounts receivable from related parties after management's assessment. The analysis was as follows:

	December 31, 2025	December 31, 2024
Current	$ 19,828,125	10,926,253
Past due 1-30 days	2,199,310	2,912,531
Past due 31-60 days	502,672	262,091
Past due 61-90 days	41,228	32,922
Past due 91-180 days	223,539	369,858
Past due 181 days or over	221,501	446,772
	$ 23,016,375	14,950,427

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

Movements of the allowance for notes and accounts receivable (including receivables from related parties) were as follows:

	2025	2024
Balance at January 1	$ 1,460	1,461
Impairment loss recognized	8,083	19,894
Write-off	(8,083)	(19,895)
Balance at December 31	$ 1,460	1,460

(d) Other receivables, net

	December 31, 2025	December 31, 2024
Other receivables from related parties (note 7(b))	$ 745,275	1,222,997
Reimbursement of advertising expense	325,310	328,322
Receivables of purchase discount	344,155	209,161
Interest receivable	136,205	128,656
Others	20,748	6,919
	1,571,693	1,896,055
Less: loss allowance	(2,746)	(2,746)
	$ 1,568,947	1,893,309

As of December 31, 2025 and 2024, except for the loss provision of $2,746 and $5,881 provided for other receivables in 2025 and 2024, respectively, of which $3,135 was written off in 2024, no other loss allowance was provided for other receivables after management’s assessment.

(e) Inventories

	December 31, 2025	December 31, 2024
Raw materials	$ 11,341,344	10,742,532
Finished goods and merchandise	1,019,771	1,032,735
Spare parts	137,354	61,454
Inventories in transit	740,156	306,446
	$ 13,238,625	12,143,167

For the years ended December 31, 2025 and 2024, the amounts of inventories recognized as cost of revenues were $134,241,982 and $138,342,016, respectively, of which $(432,105) and $265,112, respectively, were the write-down of inventories (reversal of write-downs). The write-downs arose from the write-down of inventories to net realizable value. The reversal of write-downs arose from the increase in the net realizable value or the sale of inventories, and the circumstance of net realizable value of inventories being lower than the cost of inventories no longer existed.

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(f) Financial assets measured at fair value through other comprehensive income—non-current

	December 31, 2025	December 31, 2024
Equity investments measured at fair value through other comprehensive income:
Domestic listed stock	$ 6,986,795	7,114,981
Domestic unlisted stock	591,074	771,791
	$ 7,577,869	7,886,772

The Company designated the investments shown above financial assets measured as at fair value through other comprehensive income as these equity instruments are held for long-term strategic purposes and not for trading. Certain financial assets measured at FVOCI were disposed of in 2025 and 2024, the related gain accumulated in other comprehensive income of $180,179 and $499,017, respectively, has been reclassified from other equity to retained earnings, accordingly.

(g) Financial assets measured at amortized cost

	December 31, 2025	December 31, 2024
Fixed rate corporate bonds	$ 7,548,275	8,039,787
Current	$ 874,705	785,759
Non-current	6,673,570	7,254,028
	$ 7,548,275	8,039,787

The Company assessed that it holds these financial assets until maturity to collect the contractual cash flows and the cash flows of these assets are solely payments for principal and interest on principal amount outstanding. Therefore, such financial assets were classified as financial assets measured at amortized cost.

(h) Investments accounted for using the equity method

A summary of the Company’s investments accounted for using the equity method is as follows:

	December 31, 2025	December 31, 2024
Subsidiaries	$ 85,445,395	81,853,284
Associates	3,036,189	1,874,357
Joint ventures	2,223,365	3,403,133
	$ 90,704,949	87,130,774

(i) For the information of subsidiaries, please refer to the consolidated financial statements for the year ended December 31, 2025.

(ii) For the information of business combination through subsidiaries, please refer to the consolidated financial statements for the year ended December 31, 2025.

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(iii) The Company has performed an impairment test for goodwill from investment in subsidiaries, and there was no impairment as a result of the test. Please refer to the consolidated financial statements for the year ended December 31, 2025 for the description of the impairment of goodwill.

(iv) Associates and joint venture

Name of Associates and Joint Venture	December 31, 2025		December 31, 2024
	Percentage of ownership	Carrying amount	Percentage of ownership	Carrying amount
Associate:
Apacer Technology Inc. (“AMT”, note (ii))	9.32	$ 680,239	9.27	637,435
Chaoming Electric Co., Ltd. (“Chaoming Electric”)	25.00	336,607	25.00	335,784
Chao-Chi Property Management Consulting Co., Ltd. (“CCP”, note (iii))	20.03	352,758	20.03	338,184
Haosheng No. 3 Electric Co., Ltd. (“Haosheng No. 3”)	25.00	295,807	25.00	295,252
Solming Green Energy Corp. (“SGE”)	22.84	218,797	22.84	208,562
Yun Yung Co., Ltd. (Yun Yung)	25.00	698,320	-	-
GreenHarvest Co., Ltd. (GreenHarvest)	32.06	391,845	-	-
Others	-	61,816	-	59,140
Joint Venture:
Haoru Electric Co., Ltd. (“HRC”, note (i))	60.00	1,676,786	60.00	1,678,367
Enrich Investment Incorporated (“ERI”, note (i)&(iv))	-	-	74.35	1,421,483
Haosheng Co., Ltd. (“Haosheng”, note (i))	35.00	546,579	35.00	303,283
		$ 5,259,554		5,277,490

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

Note (i): Based on the joint venture agreement with a third party, the Company and the other party have joint control over the investee. Accordingly, the investment was accounted for using the equity method.

Note (ii): The Company holds 9.27% of the voting shares in AMT, which were initially classified as FVOCI. After acquiring a board seat, it is determined that the Company has significant influence over AMT. Consequently, the investments in AMT have been reclassified in May 2024 as investments accounted for using the equity method.

Note (iii): In February 2025, the Company obtained more than half of the voting rights of CCP through written agreements among the shareholders of CCP, resulting in the Company obtaining the right to control the daily operation of CCP and having the power to direct the operating relevant activities of CCP. Therefore, CCP has been incorporated into the Company’s subsidiaries since then. Additionally, CCP redeemed the preferred stocks held by the Company on December 17, 2025, wherein the abovementioned written agreements were terminated and expired on the redemption date according to written agreements with the shareholders of CCP. Consequently, the Company lost control over CCP on December 17, 2025. The Company has significant influence over CCP and reclassified CCP as an associate accounted for using the equity method thereafter.

Note (iv): On April 30, 2025, the Company acquired the remaining shares of ERI and thereafter, ERI has become a subsidiary of the Company.

	2025	2024
The Company’s share of net income of the associates:
Net income (loss)	$ 78,895	(107)
Other comprehensive income (loss)	(2,293)	1,028
Total comprehensive income	$ 76,602	921
	2025	2024
The Company’s share of net income of the joint venture:
Net income	$ 942,699	240,900
Other comprehensive income (loss)	(740)	1,818
Total comprehensive income (loss)	$ 941,959	242,718

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(i) Property, plant and equipment

The movements of cost, and accumulated depreciation and impairment loss of the property, plant and equipment were as follows:

	Land	Buildings	Computer and communication equipment	Other equipment	Total
Cost or deemed cost:
Balance at January 1, 2025	$ 1,427,739	2,542,629	567,695	250,061	4,788,124
Additions	-	14,414	182,648	1,807	198,869
Disposals	-	-	(55,236)	(1,651)	(56,887)
Reclassifications	-	-	12,740	(809)	11,931
Balance at December 31, 2025	$ 1,427,739	2,557,043	707,847	249,408	4,942,037
Balance at January 1, 2024	$ 1,427,739	2,539,590	565,640	252,723	4,785,692
Additions	-	12,169	54,303	5,066	71,538
Disposals	-	(21,373)	(54,190)	(7,728)	(83,291)
Reclassifications	-	12,243	1,942	-	14,185
Balance at December 31, 2024	$ 1,427,739	2,542,629	567,695	250,061	4,788,124
Accumulated depreciation and impairment loss:
Balance at January 1, 2025	$ 278,877	2,042,520	451,003	233,847	3,006,247
Depreciation	-	23,606	77,150	5,875	106,631
Disposals	-	-	(55,236)	(630)	(55,866)
Reclassifications	-	-	809	(809)	-
Balance at December 31, 2025	$ 278,877	2,066,126	473,726	238,283	3,057,012
Balance at January 1, 2024	$ 278,877	2,007,059	459,104	234,842	2,979,882
Depreciation	-	28,203	46,089	6,733	81,025
Disposals	-	(3,696)	(54,190)	(7,728)	(65,614)
Reclassifications	-	10,954	-	-	10,954
Balance at December 31, 2024	$ 278,877	2,042,520	451,003	233,847	3,006,247
Carrying amounts:
Balance at December 31, 2025	$ 1,148,862	490,917	234,121	11,125	1,885,025
Balance at December 31, 2024	$ 1,148,862	500,109	116,692	16,214	1,781,877

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(j) Right-of-use assets

	Buildings	Other equipment	Total
Cost:
Balance at January 1, 2025	$ 222,487	5,909	228,396
Additions	93,405	-	93,405
Disposals	(65,615)	-	(65,615)
Balance at December 31, 2025	$ 250,277	5,909	256,186
Balance at January 1, 2024	$ 182,148	4,365	186,513
Additions	113,133	2,396	115,529
Disposals	(72,794)	(852)	(73,646)
Balance at December 31, 2024	$ 222,487	5,909	228,396
Accumulated depreciation:
Balance at January 1, 2025	$ 97,233	1,874	99,107
Depreciation	66,917	1,993	68,910
Disposals	(65,615)	-	(65,615)
Balance at December 31, 2025	$ 98,535	3,867	102,402
Balance at January 1, 2024	$ 105,304	576	105,880
Depreciation	64,723	1,936	66,659
Disposals	(72,794)	(638)	(73,432)
Balance at December 31, 2024	$ 97,233	1,874	99,107
Carrying amount:
Balance at December 31, 2025	$ 151,742	2,042	153,784
Balance at December 31, 2024	$ 125,254	4,035	129,289

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(k) Investment property

	Land	Buildings	Total
Cost or deemed cost:
Balance at January 1, 2025 (at December 31)	$ 840,869	2,203,305	3,044,174
Balance at January 1, 2024	$ 840,869	2,203,567	3,044,436
Additions	-	11,981	11,981
Reclassifications	-	(12,243)	(12,243)
Balance at December 31, 2024	$ 840,869	2,203,305	3,044,174
Accumulated depreciation and impairment loss:
Balance at January 1, 2025	$ 274,710	1,941,303	2,216,013
Depreciation	-	15,492	15,492
Balance at December 31, 2025	$ 274,710	1,956,795	2,231,505
Balance at January 1, 2024	$ 274,710	1,941,984	2,216,694
Depreciation	-	10,273	10,273
Reclassifications	-	(10,954)	(10,954)
Balance at December 31, 2024	$ 274,710	1,941,303	2,216,013
Carrying amounts:
Balance at December 31, 2025	$ 566,159	246,510	812,669
Balance at December 31, 2024	$ 566,159	262,002	828,161
Fair value:
Balance at December 31, 2025			$ 1,178,389
Balance at December 31, 2024			$ 1,380,301

The fair value of the investment property is determined by referring to the market price of similar real estate transaction or the value in use of the investment property. The value in use is the present value of the future cash flows from continuous lease activities. On December 31, 2025 and 2024, the estimated discount rate used for calculating the present value of the future cash flows was 7.65% and 6.86%, respectively.

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(1) Intangible assets

The movements of costs, and accumulated amortization and impairment loss of intangible assets were as follows:

	Goodwill	Trademarks and trade names	Patent	Software and others	Total
Net balance at January 1, 2025:
Cost	$ 166,604	7,489,298	1,344,680	329,852	9,330,434
Accumulated amortization and impairment loss	-	(7,489,298)	(1,344,680)	(316,326)	(9,150,304)
Net balance at January 1, 2025	166,604	-	-	13,526	180,130
Additions	-	-	-	13,878	13,878
Amortization	-	-	-	(12,158)	(12,158)
Net balance at December 31, 2025	$ 166,604	-	-	15,246	181,850
Net balance at December 31, 2025:
Cost	$ 166,604	7,489,298	1,344,680	247,440	9,248,022
Accumulated amortization and impairment loss	-	(7,489,298)	(1,344,680)	(232,194)	(9,066,172)
	$ 166,604	-	-	15,246	181,850
Net balance at January 1, 2024:
Cost	$ 166,604	7,489,298	1,344,680	338,489	9,339,071
Accumulated amortization and impairment loss	-	(7,489,298)	(1,344,680)	(325,389)	(9,159,367)
Net balance at January 1, 2024	166,604	-	-	13,100	179,704
Additions	-	-	-	26,690	26,690
Reclassifications	-	-	-	762	762
Amortization	-	-	-	(27,026)	(27,026)
Net balance at December 31, 2024	$ 166,604	-	-	13,526	180,130
Net balance at December 31, 2024:
Cost	$ 166,604	7,489,298	1,344,680	329,852	9,330,434
Accumulated amortization and impairment loss	-	(7,489,298)	(1,344,680)	(316,326)	(9,150,304)
	$ 166,604	-	-	13,526	180,130

The amortization of intangible assets was included in the following line items of the statements of comprehensive income:

	2025	2024
Cost of revenue	$ 280	404
Operating expenses	11,878	26,622
	$ 12,158	$ 27,026

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(m) Long-term debt

	December 31, 2025	December 31, 2024
Secured loans	$ 3,000,000	3,000,000
Unsecured loans	6,500,000	-
Less: current portion of long-term debt	-	-
	$ 9,500,000	3,000,000
Unused credit facilities	$ 4,141,600	8,778,100
Interest rates	1.70%~1.98%	1.70%

The Company pledged the time deposits held by its subsidiaries as collateral to the bank loans.

(n) Bonds payable

	December 31, 2025	December 31, 2024
Unsecured corporate bonds	$ 12,500,000	15,000,000
Less: current portion of bonds payable	(7,500,000)	(2,500,000)
	$ 5,000,000	12,500,000

On April 27, 2021, the Company issued $5,000,000 of unsecured corporate bonds at par value with 5-year term repayable on maturity. The bonds bear annual coupon rate of 0.76% and interests are payable annually at coupon rate from the issuance date. On August 26, 2021, the Company issued $5,000,000 of unsecured corporate bonds at par value with 5-year term repayable in two equal installments on August 26, 2025 and on maturity. The bonds bear annual coupon rate of 0.62% and interests are payable annually at coupon rate from the issuance date. Additionally, on June 12, 2024, the Company issued $5,000,000 of unsecured corporate bonds at par value, consisting of Bond A and Bond B, with total amounts of $2,900,000 and $2,100,000, respectively. Bond A has 3-year term, while Bond B has 5-year term, both repayable on maturity. Bond A and Bond B bear annual coupon rates of 1.99% and 2.05%, respectively, with interest payable annually at coupon rate from the issuance date.

(o) Lease liabilities

(i) The carrying amounts of lease liabilities were as follows:

	December 31, 2025	December 31, 2024
Current	$ 52,097	45,079
Non-current	$ 104,811	85,373

Please refer to note 6(aa) for maturity analysis.

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(ii) The amounts recognized in profit or loss were as follows:

Interest on lease liabilities

	2025	2024
	$ 4,942	1,368

(iii) The amounts recognized in the statement of cash flows for the Company were as follows:

Total cash outflow for leases

	2025	2024
	$ 71,891	68,552

(iv) Major terms of leases

The Company leases buildings, vehicles, office equipment, and miscellaneous equipment with lease terms ranged from 1 to 5 years.

(p) Provisions—current

	Warranties	Environmental protection	Total
Balance at January 1, 2025	$ 663,630	63,781	727,411
Additions and reversals	306,082	69,717	375,799
Amount utilized	(327,740)	(63,179)	(390,919)
Effect of exchange rate changes	(5,177)	-	(5,177)
Balance at December 31, 2025	$ 636,795	70,319	707,114
Balance at January 1, 2024	$ 732,544	64,700	797,244
Additions and reversals	233,314	60,461	293,775
Amount utilized	(310,453)	(61,380)	(371,833)
Effect of exchange rate changes	8,225	-	8,225
Balance at December 31, 2024	$ 663,630	63,781	727,411

(i) Warranties

The provision for warranties is made based on the number of units sold currently under warranty, historical rates of warranty claim on those units, and cost per claim to satisfy the warranty obligation. The Company reviews the estimation basis on an ongoing basis and revises it when appropriate.

(ii) Environmental protection

An environmental protection provision is made when products are sold and is estimated based on historical experience.

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(q) Operating lease

The Company leases its investment property and a part of property, plant and equipment to others. The Company has classified these leases as operating leases as it does not transfer substantially all the risks and rewards incidental to ownership of the assets to lessees. Please refer to note 6(k) for the information of investment property and note 6(i) for the information of property, plant and equipment.

A maturity analysis of lease payments, showing the undiscounted lease payments to be received after the reporting date, is as follows:

	December 31, 2025	December 31, 2024
Less than 1 year	$ 95,527	83,763
1 year to 2 years	91,922	62,573
2 years to 3 years	83,987	62,573
3 years to 4 years	63,125	62,573
4 years to 5 years	63,129	62,573
Over 5 years	80,688	140,778
Total undiscounted lease payments	$ 478,378	474,833

In 2025 and 2024, the rental income from investment property amounted to $65,148 and $65,143, respectively, which were recognized and included in other operating income and loss. Related repair and maintenance expenses recognized were as follows:

	2025	2024
Arising from investment property that generated rental income during the period	$ 26,680	27,655
Arising from investment property that did not generate rental income during the period	8,402	6,684
	$ 35,082	34,339

(r) Employee benefits

(i) Defined benefit plans

The reconciliation between the present value of defined benefit obligations and the net defined benefit liabilities for defined benefit plans was as follows:

	December 31, 2025	December 31, 2024
Present value of benefit obligations	$ 712,881	685,694
Fair value of plan assets	(494,654)	(497,674)
Net defined benefit liabilities (reported under other non-current liabilities)	$ 218,227	188,020

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

The Company makes defined benefit plan contributions to the pension fund account at Bank of Taiwan that provides pension benefits for employees upon retirement. The plans (covered by the Labor Standards Law) entitle a retired employee to receive a payment based on years of service and average salary for the six months prior to the employee’s retirement.

1) Composition of plan assets

The pension fund (the “Fund”) contributed by the Company is managed and administered by the Bureau of Labor Funds of the Ministry of Labor (the Bureau of Labor Funds). According to the “Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund”, with regard to the utilization of the Fund, minimum earnings shall be no less than the earnings attainable from two-year time deposits with interest rates offered by local banks. The Company also established pension funds in accordance with the “Regulations Governing the Management, Investment, and Distribution of the Employees’ Retirement Fund Established by a Profit-seeking Enterprise”, which are funded by time deposits and bank deposits deposited in the designated financial institutions. The administration of pension funds is separate from the Company, and the principal and interest from such funds shall not be used in any form except for the payment of pension and severance to employees.

As of December 31, 2025 and 2024, the balances of aforementioned pension funds were $494,654 and $497,674, respectively. For information on the domestic labor pension fund assets (including the asset portfolio and yield of the fund), please refer to the website of the Bureau of Labor Funds.

2) Movements in present value of the defined benefit obligations

	2025	2024
Defined benefit obligations at January 1	$ 685,694	776,435
Current service costs	3,699	6,020
Interest expense	13,387	12,492
Remeasurement on the net defined benefit liabilities:
Actuarial (gain) loss arising from experience adjustments	38,806	3,519
Actuarial loss (gain) arising from changes in financial assumption	13,960	(22,509)
Benefits paid by the company and the plan	(49,753)	(42,840)
Liabilities transferred (in) out due to employees transfer within the group	7,088	(47,423)
Defined benefit obligations at December 31	$ 712,881	685,694

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

3) Movements in fair value of plan assets

	2025	2024
Fair value of plan assets at January 1	$ 497,674	172,198
Interest income	8,313	1,662
Remeasurement on the net defined benefit liabilities
Return on plan assets (excluding amounts included in net interest expense)	12,999	12,147
Benefits paid by the plan	(49,591)	(42,750)
Contributions by the employer	26,811	356,456
Loss on curtailment	(1,552)	(2,039)
Fair value of plan assets at December 31	$ 494,654	497,674

4) Changes in the effect of the asset ceiling

In 2025 and 2024, there was no effect of the asset ceiling.

5) Expenses recognized in profit or loss

	2025	2024
Current service costs	$ 3,699	6,020
Net interest expense	5,074	10,830
Loss on curtailment	1,552	2,039
	$ 10,325	18,889
Classified under operating expense	$ 10,325	18,889

6) Actuarial assumptions

The principal assumptions of the actuarial valuation were as follows:

	December 31, 2025	December 31, 2024
Discount rate	1.750 %	2.000 %
Future salary increases rate	4.000 %	4.000 %

The Company expects to make contribution of $25,295 to the defined benefit plans in the year following December 31, 2025. The weighted average duration of the defined benefit plans is 10.32 years.

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

7) Sensitivity analysis

The following table summarizes the impact of a change in the assumptions on the present value of the defined benefit obligation on December 31, 2025 and 2024.

	December 31, 2025		December 31, 2024
	0.25% Increase	0.25% Decrease	0.25% Increase	0.25% Decrease
Discount rate	$ (14,223)	14,617	(14,451)	14,891
Future salary increasing rate	$ 13,918	(13,621)	14,244	(13,906)

The above sensitivity analysis considers the change in one assumption at a time, leaving other assumptions unchanged. This approach shows the isolated effect of changing one individual assumption but does not take into account that some assumptions are interrelated. The method used to carry out the sensitivity analysis is consistent with the calculation of the net defined benefit liabilities recognized in the balance sheets. The method and assumptions used to carry out the sensitivity analysis is the same as in the prior year.

(ii) Defined contribution plans

The Company contributes monthly an amount equal to 6% of each employee’s monthly wages to the employee’s individual pension fund account at the Bureau of Labor Insurance in accordance with the provisions of the Labor Pension Act. Under this defined contribution plan, the Company has no legal or constructive obligation to pay additional amounts after contributing a fixed amount to the Bureau of Labor Insurance.

For the years ended December 31, 2025 and 2024, the Company recognized pension expenses of $87,804 and $86,080, respectively, which had been contributed to the Bureau of Labor Insurance, in relation to the defined contribution plans.

(s) Income taxes

(i) The components of income tax expense were as follows:

	2025	2024
Current income tax expense
Current period	$ 558,684	2,367,179
Adjustments for prior years	(61,048)	(389,471)
	497,636	1,977,708
Deferred tax expense
Origination and reversal of temporary differences	158,564	(560,314)
Change in unrecognized deductible temporary differences	45,128	295,878
	203,692	(264,436)
Income tax expense	$ 701,328	1,713,272

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

The components of income tax expense (benefit) recognized in other comprehensive income were as follows:

	2025	2024
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit plans	$ (7,953)	6,227

Reconciliation between the expected income tax expense calculated based on the Company’s statutory tax rate and the actual income tax expense reported in the statements of comprehensive income was as follows:

	2025	2024
Income before taxes	$ 4,481,814	7,252,601
Income tax using the Company’s statutory tax rate	$ 896,363	1,450,520
Adjustments for prior-year income tax expense	(61,048)	(389,471)
Change in unrecognized temporary differences	45,128	295,878
Surtax on undistributed earnings	-	402,972
Others	(179,115)	(46,627)
	$ 701,328	1,713,272

(ii) Deferred income tax assets and liabilities

1) Unrecognized deferred income tax assets

	December 31, 2025	December 31, 2024
Unrecognized deferred income tax assets:
Loss associated with investments in subsidiaries	$ 1,931,855	1,886,727

As the Company is able to control the timing of the realization of the temporary differences, and management believed that it is probable that the temporary differences will not realize in the foreseeable future, such temporary differences were not recognized as deferred income tax assets.

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

2) Recognized deferred income tax assets and liabilities

Changes in the amount of deferred income tax assets and liabilities were as follows:

Deferred income tax assets:

	Remeasurements of defined benefit plans	Accrued expenses and costs	Loss from investment accounted for using the equity method	Total
Balance at January 1, 2025	$ 78,331	3,417,222	148,463	3,644,016
Recognized in profit or loss	-	(411,445)	(8,517)	(419,962)
Recognized in other comprehensive loss	7,953	-	-	7,953
Balance at December 31, 2025	$ 86,284	3,005,777	139,946	3,232,007
Balance at January 1, 2024	$ 84,558	2,848,871	148,463	3,081,892
Recognized in profit or loss	-	568,351	-	568,351
Recognized in other comprehensive income	(6,227)	-	-	(6,227)
Balance at December 31, 2024	$ 78,331	3,417,222	148,463	3,644,016

Deferred income tax liabilities:

	Income from investments accounted for using the equity method	Others	Total
Balance at January 1, 2025	$ 5,527,255	4,198	5,531,453
Recognized in profit or loss	(216,270)	-	(216,270)
Balance at December 31, 2025	$ 5,310,985	4,198	5,315,183
Balance at January 1, 2024	$ 5,223,340	4,198	5,227,538
Recognized in profit or loss	303,915	-	303,915
Balance at December 31, 2024	$ 5,527,255	4,198	5,531,453

(iii) No income tax was recognized directly in equity in 2025 and 2024.

(iv) The Company's income tax returns for the years through 2023 were examined and approved by the R.O.C. income tax authorities.

(t) Capital and other equity

(i) Common stock

As of December 31, 2025 and 2024, the Company had issued 434 thousand units and 5,494 thousand units, respectively, of global depository receipts (GDRs). The GDRs were listed on the London Stock Exchange, and each GDR represents five common shares. On March 13, 2025, the Company's Board of Directors resolved to terminate the issuance of the GDRs, wherein the GDRs were no longer listed on the London Stock Exchange starting July 17, 2025.

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

As of December 31, 2025 and 2024, the Company’s authorized shares of common stock consisted of 4,000,000 thousand shares, of which 3,047,854 thousand shares were issued. The par value of the Company’s common stock is $10 per share. All issued shares were paid up upon issuance.

Certain shares of common stock were not outstanding as they were held by the Company’s subsidiaries. The movements in outstanding shares of common stock were as follows (in thousands of shares):

	2025	2024
Balance at January 1 (at December 31)	$ 3,006,208	3,006,208
(ii) Capital surplus
	December 31, 2025	December 31, 2024
Paid-in capital in excess of par value	$ 10,095,099	10,095,206
Surplus from mergers	15,797,245	15,797,245
Surplus related to treasury stock transactions and cash dividends	1,009,940	939,141
Difference between consideration and carrying amount of subsidiaries acquired or disposed	247,526	111,423
Employee share options	90,000	90,000
Surplus from equity-method investments	723,250	843,250
	$ 27,963,060	27,876,265

Pursuant to the Company Act, any realized capital surplus is initially used to cover accumulated deficit, and the balance, if any, could be transferred to common stock as stock dividends or distributed by cash based on the original shareholding ratio. Realized capital surplus includes the premium derived from the issuance of shares of stock in excess of par value and donations received by the Company. In accordance with the “Regulations Governing the Offering and Issuance of Securities by Securities Issuers”, distribution of stock dividends from capital surplus in any one year shall not exceed 10% of paid-in capital.

(iii) Legal reserve, special reserve, surplus distribution and dividend policy

The Company’s Articles of Incorporation stipulate that at least 10% of annual net income, after deducting accumulated deficit, if any, must be retained as legal reserve until such retention equals the amount of paid-in capital. In addition, a special reserve shall be set aside in accordance with applicable laws and regulations. The remaining balance, together with the unappropriated earnings from the previous years, after retaining a certain portion of it for business considerations, can be distributed as dividends to stockholders. Except for the distribution of capital surplus and legal reserve in accordance with applicable laws and regulations, the Company cannot distribute any earnings when there are no retained earnings. The distributable dividends in whole or in part will be paid in cash by the Company 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.

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

Since the Company operates in an industry experiencing rapid change and development, earnings are distributed in consideration of the current year’s earnings, the overall economic environment, related laws and decrees, and the Company’s long-term development and stability in its financial position. The Company has adopted a stable dividend policy, in which a cash dividend comprises at least 10% of the total dividend distribution.

Additionally, pursuant to the Company Act, if the Company has no accumulated deficit, it may, pursuant to a resolution approved by the stockholders, distribute its legal reserve by issuing new shares or distributing cash for the portion of legal reserve which exceeds 25% of the paid-in capital.

In accordance with the rulings issued by the FSC, a special reserve shall be retained at an amount equal to the proportionate share of the carrying value of the treasury stock held by subsidiaries in excess of the market value at the reporting date. The special reserve may be reversed when the market value recovers in subsequent periods.

In accordance with the rulings issued by the FSC, a special reserve equal to the total amount of items that are accounted for as deductions from stockholders’ equity shall be set aside from the after-tax net profit in the period, plus items other than the after-tax net profit in the period that are included in the undistributed current-period earnings and undistributed prior-period earnings. This special reserve shall revert to retained earnings and be made available for distribution when the items that are accounted for as deductions from stockholders’ equity are reversed in subsequent periods.

On March 13, 2025, the Company’s Board of Directors approved the distribution of cash dividends amounting to $5,181,352 ($1.7 per share, in New Taiwan Dollars), of which $70,799 was distributed to the subsidiaries holding the Company’s common shares. Additionally, on May 29, 2025, the Company’s shareholders approved an appropriation of legal reserve $603,941 and a reversal of special reserve of $528,327, respectively.

On March 14, 2024, the Company’s Board of Directors approved the distribution of cash dividends amounting to $4,876,566 ($1.6 per share, in New Taiwan Dollars), of which $66,634 was distributed to the subsidiaries holding the Company’s common shares. Additionally, on May 31, 2024, the Company’s shareholders approved an appropriation of legal reserve of $816,562.

On March 12, 2026, the Company’s Board of Directors approved the distribution of cash dividends amounting to $3,962,210 ($1.3 per share, in New Taiwan Dollars), of which $54,140 was distributed to the subsidiaries holding the Company’s common shares.

Related information is available on the Market Observation Post System website of the Taiwan Stock Exchange.

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(iv) Treasury stock

As of December 31, 2025 and 2024, details of the GDRs (for the implementation of an overseas employee stock option plan) held by subsidiary CCI and the Company’s common stock held by subsidiaries CCI (to maintain the Company’s shareholders’ equity), and AGT (resulting from the acquisition of AGT) were as follows (expressed in thousands of shares):

	December 31, 2025
	Number of shares	Carrying amount	Market value
Common stock	41,646	$ 2,712,774	1,099,462
	December 31, 2024
	Number of shares	Carrying amount	Market value
Common stock	16,709	$ 743,157	665,018
GDRs	24,937	1,969,617	931,915
	41,646	$ 2,712,774	1,596,933

According to the Securities and Exchange Act, treasury stock cannot be collateralized. In addition, treasury shares do not bear shareholder rights prior to being sold to third parties. Moreover, the number of treasury shares shall not exceed 10% of the number of common shares issued. The total amount of treasury stock shall not exceed the sum of retained earnings, paid-in capital in excess of par value, and other realized capital surplus.

(v) Other equity items (net after tax)

1) Foreign currency translation differences:

	2025	2024
Balance at January 1	$ (819,544)	(3,799,702)
Generated by the Company:
Foreign exchange differences arising from translation of foreign operations	(569,902)	2,980,318
Changes in ownership interests in subsidiaries	784	(187)
Difference between consideration and carrying amount of subsidiaries acquired or disposed	371	27
Balance at December 31	$ (1,388,291)	(819,544)

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

2) Unrealized gain (loss) from financial assets measured at fair value through other comprehensive income:

	2025	2024
Balance at January 1	$ 2,167,196	4,170,049
Generated by the Company:
Change in fair value of financial assets measured at fair value through other comprehensive income	164,272	(1,512,286)
Share of other comprehensive income of subsidiaries, associates and joint ventures	592,040	9,005
Difference between consideration and carrying amount of subsidiaries acquired or disposed	640	-
Disposal of financial assets measured at fair value through other comprehensive income by the Company	(180,179)	(499,017)
Disposal of financial assets measured at fair value through other comprehensive income by subsidiaries	8,746	(1,067)
Changes in ownership interests in subsidiaries	2,006	512
Balance at December 31	$ 2,754,721	2,167,196

3) Remeasurement of defined benefit plans:

	2025	2024
Balance at January 1	$ 184,617	294,251
Change in the period (generated by the Company)	(31,814)	24,910
Share of other comprehensive loss of subsidiaries and associates	(74,918)	(137,012)
Changes in ownership interests in subsidiaries	1,687	2,435
Difference between consideration and carrying amount of subsidiaries acquired or disposed	923	33
Balance at December 31	$ 80,495	184,617

(u) Earnings per share ("EPS")

(i) Basic earnings per share

The basic earnings per share were calculated as the earnings attributable to the shareholders of the Company divided by the weighted-average number of common shares outstanding as follows:

	2025	2024
Net income attributable to the ordinary shareholders	$ 3,780,486	5,539,329
Weighted-average number of ordinary shares outstanding (in thousands)	3,006,208	3,006,208
Basic earnings per share (in New Taiwan Dollars)	$ 1.26	1.84

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(ii) Diluted earnings per share

	2025	2024
Net income attributable to the ordinary shareholders	$ 3,780,486	5,539,329
Weighted-average number of ordinary shares outstanding (in thousands)	3,006,208	3,006,208
Effect of dilutive potential common stock (in thousands):
Effect of employee remuneration in stock	18,403	9,682
Weighted-average shares of common stock outstanding (including effect of dilutive potential common stock) (in thousands)	3,024,611	3,015,890
Diluted earnings per share (in New Taiwan Dollars)	$ 1.25	1.84

(v) Revenue from contracts with customers

(i) Disaggregation of revenue

	2025
	IT Hardware Products	Others	Total
Primary geographical markets:
EMEA	$ 46,906,450	4,446,835	51,353,285
Pan America	45,396,110	5,956,234	51,352,344
Asia Pacific	38,947,963	13,207,812	52,155,775
	$ 131,250,523	23,610,881	154,861,404
	2024
	IT Hardware Products	Others	Total
Primary geographical markets:
EMEA	$ 45,911,695	6,586,939	52,498,634
Pan America	43,483,905	7,502,429	50,986,334
Asia Pacific	42,196,254	13,766,787	55,963,041
	$ 131,591,854	27,856,155	159,448,009

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(ii) Contract balances

	December 31, 2025	December 31, 2024	January 1, 2024
Notes and accounts receivable
(including receivables from related parties)	$ 27,655,017	19,685,763	17,056,897
Less: loss allowance	(1,460)	(1,460)	(1,461)
	$ 27,653,557	19,684,303	17,055,436
Contract liabilities – current	$ 62,759	17,236	10,855

Please refer to note 6(c) for details on notes and accounts receivable and related loss allowance.

The major changes in the balance of contract liabilities was due to the timing difference between the satisfaction of performance obligation and the receipt of customer's payment.

The amount of revenue recognized in 2025 and 2024 that was included in the contract liability balance at January 1, 2025 and 2024, was $16,060 and $9,687, respectively.

(w) Remuneration to employees and directors

The Company's amended Articles of Incorporation, which were resolved during the shareholders' meeting held on May 29, 2025, require that annual earning shall first be offset against any deficit, then, a minimum of 4% shall be allocated as employee remuneration, of which no less than 1.5% should be distributed to base-level employees, and a maximum of 0.8% be allocated as directors' remuneration. The Company's Articles of Incorporation before amendment require that annual earning shall first be offset against any deficit, then, a minimum of 4% shall be allocated as employee remuneration and a maximum of 0.8% be allocated as directors' remuneration. Employees who are entitled to receive the abovementioned employee remuneration, in share or cash, include the employees of subsidiaries of the Company who meet certain specific requirements.

For the years ended December 31, 2025 and 2024, the Company accrued its remuneration to employees amounting to $415,000 and $517,000, respectively, and the remuneration for directors of $5,927 and $8,000, respectively. The said amounts, which were recognized as operating expenses, were calculated based on pre-tax net profit for each year before deducting the amount of the remuneration to employees and directors, multiplied by the proposed distribution ratio of remuneration to employees and directors.

Except that the remuneration to directors for 2025 resolved by the Company's Board of Directors on March 12, 2026 was $2,000 and that for 2024 resolved by the Company's Board of Directors on March 13, 2025 was $5,200, the aforementioned accrued remunerations to employees were the same as the amounts resolved by the Board of Directors, which were all paid in cash. The difference between accrual and actual payment, amounting to $3,927 and $2,800 for 2025 and 2024, respectively, is treated as change in accounting estimate and recognized in profit or loss in the following year.

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

Related information is available on the Market Observation Post System website of Taiwan Stock Exchange.

(x) Other operating income and expenses – net

	2025	2024
Government grants	$ 7,933	3,382
Rental income	112,819	117,973
	$ 120,752	121,355

(y) Non-operating income and loss

(i) Interest income

	2025	2024
Interest income from bank deposits	$ 364,021	523,079
Other interest income	359,851	360,864
	$ 723,872	883,943

(ii) Other income

	2025	2024
Dividend income	$ 253,368	227,956

(iii) Other gains and losses

	2025	2024
(Loss) gain on disposal of property, plant and equipment	$ (84)	15,825
(Loss) gain on disposal of investments	(277,487)	15,007
Foreign currency exchange gain (loss), net	994,253	(1,222,948)
(Loss) gain on financial assets and liabilities measured at fair value through profit	(472,533)	2,730,076
Others	19,903	41,680
	$ 264,052	1,579,640

(iv) Finance costs

	2025	2024
Interest expense from bank loans and bonds payable	$ 300,287	174,310
Interest expense on lease liabilities	4,942	1,368
Others	11,364	7,651
	$ 316,593	183,329

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(z) Financial instruments and fair value information

(i) Categories of financial instruments

1) Financial assets

	December 31, 2025	December 31, 2024
Financial assets measured at fair value through profit or loss	$ 157,661	777,726
Financial assets measured at fair value through other comprehensive income	7,577,869	7,886,772
Financial assets measured at amortized cost:
Cash and cash equivalents	5,141,235	11,468,571
Fixed rate corporate bonds (classified as financial assets measured at amortized cost)	7,548,275	8,039,787
Notes and accounts receivable and other receivables (including receivables from related parties)	29,222,504	21,577,612
Other financial assets – current and non-current	236,002	512,958
	$ 49,883,546	50,263,426

2) Financial liabilities

	December 31, 2025	December 31, 2024
Financial liabilities measured at fair value through profit or loss	$ 104,379	12,321
Financial liabilities measured at amortized cost:
Accounts payable (including payables to related parties)	30,880,607	24,198,997
Other payables (including payables to related parties)	22,115,678	25,200,213
Long-term payables to related parties	13,635	13,635
Lease liabilities – current and non-current	156,908	130,452
Long-term debt	9,500,000	3,000,000
Bonds payable (including current portion)	12,500,000	15,000,000
	$ 75,271,207	67,555,618

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(ii) Fair value information

1) Financial instruments not measured at fair value

The Company considers that the carrying amounts of financial assets and financial liabilities measured at amortized cost approximate their fair values.

2) Financial instruments measured at fair value

The following financial instruments are measured at fair value on a recurring basis.

The table below analyzes the financial instruments measured at fair value on a regular basis subsequent to initial recognition, grouped into Levels 1 to 3 based on the degree to which the fair value is observable. The different levels have been defined as follows:

a) Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

b) Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

c) Level 3: inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

	December 31, 2025
	Fair value
	Level 1	Level 2	Level 3	Total
Financial assets mandatorily measured at fair value through profit or loss:
Foreign currency forward contracts	$ -	157,661	-	157,661
Financial assets measured at fair value through other comprehensive income:
Domestic listed stock	$ 6,986,795	-	-	6,986,795
Unlisted stock	-	-	591,074	591,074
	$ 6,986,795	-	591,074	7,577,869
Financial liabilities measured at fair value through profit or loss:
Foreign currency forward contracts	$ -	(104,379)	-	(104,379)
Financial instruments measured at amortized cost:
Corporate bonds carrying fixed interest rates	$ 4,639,749	2,999,541	-	7,639,290

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

	December 31, 2024
	Fair value
	Level 1	Level 2	Level 3	Total
Financial assets mandatorily measured at fair value through profit or loss:
Foreign currency forward contracts	$ -	777,726	-	777,726
Financial assets measured at fair value through other comprehensive income:
Domestic listed stock	$ 7,114,981	-	-	7,114,981
Unlisted stock	-	-	771,791	771,791
	$ 7,114,981	-	771,791	7,886,772
Financial liabilities measured at fair value through profit or loss:
Foreign currency forward contracts	$ -	(12,321)	-	(12,321)
Financial assets measured at amortized cost:
Corporate bonds carrying fixed interest rates	$ 4,867,517	3,162,364	-	8,029,881

The stocks of Pell Bio-med Technology Co., Ltd., were initially classified under Level 3 of the fair value hierarchy, they were transferred to Level 1 following their listing on the Taiwan Stock Exchange on March 8, 2024.

There were no transfers among fair value hierarchies for the year ended December 31, 2025.

3) Movement in financial assets included in Level 3 fair value hierarchy

	Financial assets measured at fair value through other comprehensive income
	2025	2024

Balance at January 1	$ 771,791	544,368
Additions	13,085	456,870
Disposals	(184,454)	-
Recognized in other comprehensive income	(9,348)	(109,447)
Transfers out of Level 3	-	(120,000)
Balance at December 31	$ 591,074	771,791

The abovementioned total gains or losses were included in "unrealized (loss) gain from financial assets measured at fair value through other comprehensive income". The gains or losses attributable to the financial assets held on December 31, 2025 and 2024 were as follows:

	2025	2024
Total gains or losses:
Recognized in other comprehensive income (included in “unrealized loss from financial assets measured at fair value through other comprehensive income”)	$ (30,620)	(109,447)

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

4) Valuation techniques and inputs used for financial instruments measured at fair value

a) The fair values of financial assets with standard terms and conditions and traded on active markets are determined with reference to quoted market prices (e.g. listed stocks).

b) The fair value of derivative financial instruments is determined using a valuation technique, with estimates and assumptions consistent with those used by market participants that are readily available to the Company. The fair value of foreign currency forward contracts is computed individually by each contract using the valuation technique.

c) The fair value of unlisted stocks in Level 3 fair value hierarchy is estimated by using the market approach and is determined by reference to recent financing activities, valuations of similar companies, market conditions, and other economic indicators. The significant unobservable input is the liquidity discount. No quantitative information is disclosed due to the possible changes in liquidity discount would not cause significant potential financial impact.

(iii) Offsetting of financial assets and liabilities

The Company has financial instrument transactions which are set off in accordance with paragraph 42 of IAS 32; the related financial assets and liabilities are presented in the balance sheets on a net basis.

The table below summarizes the related information of offsetting of financial assets and liabilities:

December 31, 2025
Financial assets subject to offsetting, enforceable master netting arrangements or similar agreements
	Gross amounts of recognized financial assets	Gross amounts of recognized financial liabilities offset in the balance sheet	Net amounts of financial assets presented in the balance sheet	Amount not set off in the balance sheet (d)		Net amounts
	(a)	(b)	(c)=(a)-(b)	Financial instruments	Cash collateral received	(e)=(c)-(d)
Notes and accounts receivable, net	$ 28,006,188	23,369,006	4,637,182	-	-	4,637,182
December 31, 2025
Financial liabilities subject to offsetting, enforceable master netting arrangements or similar agreements
	Gross amounts of recognized financial liabilities	Gross amounts of recognized financial assets offset in the balance sheet	Net amounts of financial liabilities presented in the balance sheet	Amount not set off in the balance sheet (d)		Net amounts
	(a)	(b)	(c)=(a)-(b)	Financial instruments	Cash collateral received	(e)=(c)-(d)
Accounts payable	$ 52,470,322	23,369,006	29,101,316	-	-	29,101,316

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

December 31, 2024
Financial assets subject to offsetting, enforceable master netting arrangements or similar agreements
	Gross amounts of recognized financial assets	Gross amounts of recognized financial liabilities offset in the balance sheet	Net amounts of financial assets presented in the balance sheet	Amount not set off in the balance sheet (d)		Net amounts (e)=(c)-(d)
				Financial instruments	Cash collateral received
Notes and accounts receivable, net	(a) $28,478,602	(b) 23,744,726	(c)=(a)-(b) 4,733,876	-	-	4,733,876
December 31, 2024
Financial liabilities subject to offsetting, enforceable master netting arrangements or similar agreements
	Gross amounts of recognized financial liabilities	Gross amounts of recognized financial assets offset in the balance sheet	Net amounts of financial liabilities presented in the balance sheet	Amount not set off in the balance sheet (d)		Net amounts (e)=(c)-(d)
				Financial instruments	Cash collateral received
Accounts payable	(a) $46,605,409	(b) 23,744,726	(c)=(a)-(b) 22,860,683	-	-	22,860,683

(aa) Financial risk management

The Company is exposed to credit risk, liquidity risk, and market risk (including currency risk, interest rate risk, and other market price risk). The Company has disclosed the information on exposure to the aforementioned risks and the Company's policies and procedures to measure and manage those risks as well as the quantitative information below.

The Board of Directors are responsible for developing and monitoring the Company's risk management policies. The Company's risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor adherence to the controls. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company's operations.

The Company's management monitors and reviews the financial activities in accordance with procedures required by relevant regulations and internal controls. Internal auditors undertake reviews of risk management controls and procedures, and the results of which are reported to the Board of Directors on a regular basis.

(i) Credit risk

1) The maximum exposure to credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty of a financial instrument fails to meet its contractual obligations, and arises principally from the Company's cash and cash equivalents, derivative instruments, receivables from customers, other receivables, corporate bonds and time deposits. The maximum exposure to credit risk is equal to the carrying amount of the Company's financial assets.

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

The maximum exposure to credit risk of financial loss due to the financial guarantees provided by the Company mainly arose from the following items:

the carrying amounts of financial assets recognized in the balance sheets and;
As of December 31, 2025 and 2024, the financial guarantees provided to subsidiaries and joint ventures amounted to $12,485,909 and $6,506,251, respectively.

2) Concentration of credit risk

The Company primarily sells and markets its multi-branded IT products through its subsidiaries and distributors in different geographic areas. The Company believes that there is no significant concentration of credit risk due to the Company's large number of customers and their wide geographical spread.

3) Credit risk from receivables

Please refer to note 6(c) for credit risk exposure of notes and accounts receivable. Other financial assets measured at amortized cost include corporate bonds carrying fixed interest rates, other receivables (refer to note 6(d)) and time deposits (classified as other financial assets). Abovementioned financial assets are considered low-credit-risk financial assets, and thus, the loss allowance is measured using 12 months ECL. Please refer to note 4(f) for descriptions about how the Company determines the credit risk.

(ii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in settling its financial liabilities by delivering cash or another financial assets. The Company manages liquidity risk by monitoring regularly the current and mid- to long-term cash demand, maintaining adequate cash and banking facilities, and ensuring compliance with the terms of the loan agreements. As of December 31, 2025 and 2024, the Company had unused credit facilities of $32,849,513 and $40,022,524, respectively.

The table below is the maturity profile of the Company's financial liabilities based on contractual undiscounted payments, including principal and estimated interest.

	Contractual cash flows	Within 1 year	1-2 years	2-5 years	Over 5 years
December 31, 2025
Non-derivative financial liabilities:
Bonds payable	$ 12,841,120	7,654,260	3,000,760	2,186,100	-
Long-term debt carrying fixed interest rate	7,588,398	127,720	127,720	4,183,451	3,149,507
Long-term debt carrying floating interest rate	2,607,643	48,075	1,041,131	1,518,437	-
Accounts payable (including related parties)	30,880,607	30,880,607	-	-	-
Other payables (including related parties)	22,115,678	19,895,236	2,220,442	-	-
Long-term payable to related parties	13,635	-	-	13,635	-
Lease liability	165,050	55,835	41,369	67,846	-
	$ 76,212,131	58,661,733	6,431,422	7,969,469	3,149,507

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

	Contractual cash flows	Within 1 year	1-2 years	2-5 years	Over 5 years
Derivative financial instruments:
Foreign currency forward contracts – settled in gross
Outflow	$ 41,016,942	41,016,942	-	-	-
Inflow	(41,092,493)	(41,092,493)	-	-	-
	$ (75,551)	(75,551)	-	-	-
December 31, 2024
Non-derivative financial liabilities:
Bonds payable	$ 15,510,880	2,669,760	7,654,260	5,186,860	-
Long-term debt carrying fixed interest rate	3,484,500	51,000	51,000	153,000	3,229,500
Accounts payable (including related parties)	24,198,997	24,198,997	-	-	-
Other payables (including related parties)	25,200,213	22,507,036	2,693,177	-	-
Long-term payable to related parties	13,635	-	-	13,635	-
Lease liability	137,667	47,918	30,304	59,445	-
	$ 68,545,892	49,474,711	10,428,741	5,412,940	3,229,500
Derivative financial instruments:
Foreign currency forward contracts – settled in gross
Outflow	$ 35,084,692	35,084,692	-	-	-
Inflow	(35,890,841)	(35,890,841)	-	-	-
	$ (806,149)	(806,149)	-	-	-

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

(iii) Market risk

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

The Company utilizes derivative financial instruments to manage market risks and the volatility of profit or loss. All such transactions are carried out within the guidelines set by the Board of Directors.

1) Foreign currency risk

The Company is exposed to foreign currency risk on sales and purchases that are denominated in a currency other than the functional currency of the Company. The foreign currencies used in these transactions are mainly the US Dollar (USD), Indian Rupee (INR) and Euro (EUR), etc. The Company utilizes foreign currency forward contracts to hedge its foreign currency exposure with respect to its forecast sales and purchases over the following 12 months.

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

Exposure to foreign currency risk and sensitivity analysis:

The Company’s exposure to foreign currency risk arises from cash and cash equivalents, notes and accounts receivable/payable (including related parties), and other receivables/ payables (including related parties) that are denominated in foreign currencies. At the reporting date, the carrying amounts of the Company’s significant monetary assets and liabilities denominated in a currency other than the functional currency of the Company and their sensitivity analysis were as follows:

(in thousands)

	December 31, 2025
	Foreign currency	Exchange rate	NTD	Change in magnitude	Pre-tax effect on profit or loss
Financial assets
Monetary items
USD	$ 839,460	31.4160	26,372,475	1 %	263,725
INR	12,867,191	0.3495	4,497,083	1 %	44,971
EUR	54,292	36.9012	2,003,440	1 %	20,034
Financial liabilities
Monetary items
USD	1,544,424	31.4160	48,519,624	1 %	485,196

(in thousands)

	December 31, 2024
	Foreign currency	Exchange rate	NTD	Change in magnitude	Pre-tax effect on profit or loss
Financial assets
Monetary items
USD	$ 824,863	32.7810	27,039,834	1 %	270,398
INR	11,623,809	0.3829	4,450,756	1 %	44,508
Financial liabilities
Monetary items
USD	1,373,023	32.7810	45,009,067	1 %	450,091

With varieties of foreign currencies, the Company disclosed foreign exchange gain (loss) on monetary items in aggregate. Please refer to note 6(y) for further information.

2) Interest rate risk

The Company’s short-term borrowings and long-term debts carry floating or fixed interest rates. The Company has not entered into interest rate swap contracts to convert floating interest rates to fixed interest rates. To manage the interest rate risk, the Company periodically assesses the interest rates of bank loans and maintains good relationships with financial institutions to obtain lower financing costs. The Company also strengthens the management of working capital to reduce the dependence on bank loans as well as the risk arising from fluctuation of interest rates.

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

The following sensitivity analysis is based on the risk exposure to floating-interest-rate liabilities on the reporting date. The sensitivity analysis assumes the liabilities recorded at the reporting date had been outstanding for the entire period. The change in interest rate reported to the key management in the Company is based on 100 basis points (1%), which is consistent with the assessment made by the key management in respect of the possible change in interest rate.

If the interest rate had been 100 basis points (1%) higher/lower with all other variables held constant, pre-tax income for the year ended December 31, 2025 would have been $25,000 lower/higher, which mainly resulted from the borrowings with floating interest rate

3) Other market price risk

The Company is exposed to the risk of price fluctuation in securities resulting from its investment in publicly traded stocks. The Company supervises the equity price risk actively and manages the risk based on fair value. The Company also has strategic investments in privately held stocks, in which the Company does not actively participate in their trading.

Assuming a hypothetical increase or decrease of 5% in equity prices of the equity investments at each reporting date, the other comprehensive income for the years ended December 31, 2025 and 2024, would have increased or decreased by $378,893 and $394,339, respectively.

(ab) Capital management

In consideration of the industry dynamics and future developments, as well as external environment factors, the Company maintains an optimal capital structure to enhance long-term shareholder value by managing its capital in a manner to ensure that it has sufficient and necessary financial resources to fund its working capital needs, research and development activities, dividend payments, and other business requirements for continuing operations and to reward shareholders and take into consideration the interests of other stakeholders.

(ac) Investing and financing activities not affecting cash flows

(i) Please refer to note 6(j) for a description of acquisition of right-of-use assets through leases in 2025 and 2024.

(ii) The reconciliation of liabilities arising from financing activities were as follows:

	January 1, 2025	Cash flows	Non-cash changes of leasing	December 31, 2025
Long-term debt	$ 3,000,000	6,500,000	-	9,500,000
Lease liabilities	130,452	(66,949)	93,405	156,908
Loans from related parties	505,000	295,000	-	800,000
Bonds payable	15,000,000	(2,500,000)	-	12,500,000
Total liabilities from financing activities	$ 18,635,452	4,228,051	93,405	22,956,908

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

	January 1, 2024	Cash flows	Non-cash changes of leasing	December 31, 2024
Long-term debt	$ 1,500,000	1,500,000	-	3,000,000
Lease liabilities	82,321	(67,184)	115,315	130,452
Loans from related parties	250,000	255,000	-	505,000
Bonds payable	10,000,000	5,000,000	-	15,000,000
Total liabilities from financing activities	$ 11,832,321	6,687,816	115,315	18,635,452

7. Related-party transactions

(a) Related party name and relationship

The followings are subsidiaries and other related parties that have had transactions with the Company during the reporting periods.

Name of related party	Relationship with the Company
Acer European Holdings SA (AEH)	Subsidiaries
Acer Europe B.V. (AHN)	Subsidiaries
Acer Africa (Proprietary) Limited (AAF)	Subsidiaries
AGP Insurance (Guernsey) Limited (AGU)	Subsidiaries
Acer Europe SA (AEG)	Subsidiaries
Sertec 360 SA (SER)	Subsidiaries
Acer Bilisim Teknolojileri Limited Sirketi (ATR)	Subsidiaries
Acer Computer France S.A.S.U. (ACF)	Subsidiaries
Acer U.K. Limited (AUK)	Subsidiaries
Acer Italy S.R.L. (AIT)	Subsidiaries
Acer Computer GmbH (ACG)	Subsidiaries
Acer Austria GmbH (ACV)	Subsidiaries
Acer Czech Republic s.r.o. (ACZ)	Subsidiaries
Acer Computer Iberica, S.A. (AIB)	Subsidiaries
Enfinitec Switzerland AG (ENCH)	Subsidiaries
Asplex Sp. z o.o. (APX)	Subsidiaries
Acer Marketing Services LLC (ARU)	Subsidiaries
Acer Poland sp. z o.o. (APL)	Subsidiaries
Acer Computer B.V. (ACH)	Subsidiaries
CPYou B.V. (CPY)	Subsidiaries
Enfinitec B.V. (ENNL)	Subsidiaries
Enfinitec Germany GmbH (ENDE)	Subsidiaries
Enfinitec France (ENFR)	Subsidiaries
Enfinitec Italy S.R.L. (ENIT)	Subsidiaries
Enfinitec Poland Sp. z o.o. (ENPL)	Subsidiaries

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

Name of related party	Relationship with the Company
Enfinitec Czech Republic s.r.o (ENCZ)	Subsidiaries
Enfinitec Spain, S.L.U. (ENES)	Subsidiaries
Acer Computer Norway AS (ACN)	Subsidiaries
Acer Finland Oy (AFN)	Subsidiaries
Acer Sweden AB (ACW)	Subsidiaries
Acer Denmark A/S (ACD)	Subsidiaries
Boardwalk Capital Holdings Limited (Boardwalk)	Subsidiaries
Acer Computec Mexico, S.A. de C.V. (AMEX)	Subsidiaries
Acer American Holdings Corp. (AAH)	Subsidiaries
AGP Tecnologia em Informatica do Brasil Ltda. (ATB)	Subsidiaries
Acer Cloud Technology Inc. (ACTI)	Subsidiaries (note 7)
Acer Cloud Technology (US), Inc. (ACTUS)	Subsidiaries (note 7)
Gateway, Inc. (GWI)	Subsidiaries
Acer America Corporation (AAC)	Subsidiaries
Acer Service Corporation (ASC)	Subsidiaries
Acer Holdings International, Incorporated (AHI)	Subsidiaries
Acer Computer Co., Ltd. (ATH)	Subsidiaries
Acer Japan Corp. (AJC)	Subsidiaries
Acer Computer Australia Pty. Limited (ACA)	Subsidiaries
Acer Sales And Services Sdn Bhd (ASSB)	Subsidiaries
Acer Asia Pacific Sdn Bhd (AAPH)	Subsidiaries
Acer Computer (Singapore) Pte. Ltd. (ACS)	Subsidiaries
Acer Computer New Zealand Limited (ACNZ)	Subsidiaries
PT. Acer Indonesia (AIN)	Subsidiaries
PT. Acer Manufacturing Indonesia (AMI)	Subsidiaries
Acer India Private Limited (AIL)	Subsidiaries
Acer Vietnam Co., Ltd. (AVN)	Subsidiaries
Acer Philippines, Inc. (APHI)	Subsidiaries
Servex (Malaysia) Sdn Bhd (SMA)	Subsidiaries
Acer Market Services Limited (AMS)	Subsidiaries
Acer Computer (Far East) Limited (AFE)	Subsidiaries
Acer Information (Zhong Shan) Co., Ltd. (AIZS)	Subsidiaries
Acer Computer (Shanghai) Ltd. (ACCN)	Subsidiaries
Acer (Chongqing) Ltd. (ACCQ)	Subsidiaries
Weblink International Inc. (WLII)	Subsidiaries
Wellife Inc. (WELL)	Subsidiaries
Pecer Bio-medical Technology Incorporated (PBT)	Subsidiaries
Protrade Applied Materials Corp. (PAM)	Subsidiaries

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

Name of related party	Relationship with the Company
Protrade Asia Limited (PAL)	Subsidiaries
Dakota Co., Ltd. (DCL)	Subsidiaries
Protrade Shanghai Trading Co., Ltd. (PST)	Subsidiaries
Protrade Resources Vietnam Company Limited (PRV)	Subsidiaries
Cascadia Resources Inc. (CRI)	Subsidiaries
Acer Synergy Tech Corp. (AST)	Subsidiaries
Shanghai AST Technology Service Ltd. (ASTS)	Subsidiaries
Acer Synergy Manpower Corp. (ASM)	Subsidiaries
Acer Synergy Tech America Corporation (ASTA)	Subsidiaries
Shine Passion Engineering Co., Ltd. (SPE)	Subsidiaries/Associates (note 1)
Acer Synergy Manpower America Corporation (ASMA)	Subsidiaries
Acer Synergy Manpower Japan Corporation (ASMJ)	Subsidiaries
Acer Digital Service Co. (ADSC)	Subsidiaries
Acer Energy Pack Inc. (ENP)	Subsidiaries
Acer Gaming Inc. (AGM)	Subsidiaries
Acer Global Merchandise Philippines Inc. (AGMPH)	Subsidiaries
DropZone (Hong Kong) Limited (DZL)	Subsidiaries
ACER TECHNOLOGY AND BUSINESS DEVELOPMENT PTE. LTD. (ATBD)	Subsidiaries
Winking Studios Limited (WKS)	Subsidiaries
Winking Art Pte. Ltd. (WKSG)	Subsidiaries
Winking Entertainment Corporation (WKTW)	Subsidiaries
Winking Skywalker Entertainment Limited (WKSK)	Subsidiaries
Shanghai Winking Entertainment Limited (WKSH)	Subsidiaries
Pixelline Art Sdn. Bhd. (PLMY)	Subsidiaries
On Point Creative Co., Ltd. (OPTW)	Subsidiaries
Nanjing Winking Entertainment Ltd. (WKNJ)	Subsidiaries
Vertic Studios Sdn. Bhd.(VTMY)	Subsidiaries (note 2)
On Point Creative(HK) Company Limited (OPHK)	Subsidiaries
Suzhou Winking Entertainment Ltd. (WKSZ, formerly OPSZ)	Subsidiaries
Shanghai Wishing Entertainment Limited (SHW)	Subsidiaries
Shanghai Mineloader Digital Technology Co., Ltd. (SHML)	Subsidiaries (note 2)
Dalian Mineloader Software Co., Ltd (DLYY)	Subsidiaries (note 2)
Chengdu Mineloader Digital Technology Co., Ltd. (CDML)	Subsidiaries (note 2)
MINE LOADER (TIANJIN) SOFTWARE CO.,LTD. (TJML)	Subsidiaries (note 2)

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

Name of related party	Relationship with the Company
Tianjin Binhai High-tech Zone Yiyou Training Institute Co., Ltd. (TJYY)	Subsidiaries (note 2)
Winking Art Limited (WKHK)	Subsidiaries
Acer SoftCapital Incorporated (CCI)	Subsidiaries
DropZone Holding Limited (DZH)	Subsidiaries
Acer Gadget Inc. (AGT)	Subsidiaries
GadgeTek (Shanghai) Limited (GCN)	Subsidiaries
Acer Gadget America Inc. (AGA)	Subsidiaries
Acer Fashion Inc. (AFS, formerly XPL)	Subsidiaries
Acer BeingWare Holding Inc. (ABH)	Subsidiaries
Acer Cloud Technology (Taiwan) Inc. (ACTTW)	Subsidiaries
Altos Computing Inc. (ALT)	Subsidiaries
Beijing Altos Computing Ltd. (BJAC)	Subsidiaries (note 7)
Altos Computing (Thailand) Co., Ltd. (ALTH)	Subsidiaries
Altos Computing (India) Private Limited (ALIN)	Subsidiaries
Acer Mobile Power System Inc. (MPS)	Subsidiaries
Acer e-Enabling Service Business Inc. (AEB)	Subsidiaries
Acer e-Enabling Service Business (Shang-Hai) Ltd. (EBSH)	Subsidiaries
Acer E-Enabling Service Business Vietnam Company Limited (EBVN)	Subsidiaries
Acer ITS Inc. (ITS)	Subsidiaries
Acer Medical Inc. (AMED)	Subsidiaries
Acer Healthcare Inc. (AHC)	Subsidiaries
Acer Cloud Technology(Chongqing) Ltd. (ACTCQ)	Subsidiaries
Acer Being Communication Inc. (ABC)	Subsidiaries
Acer Being Signage Inc. (ABST)	Subsidiaries
Acer Being Signage GmbH (ABSG)	Subsidiaries
Acer AI Cloud Inc. (AIC)	Subsidiaries
Acer Third Wave Software (Beijing) Co. Ltd. (TW PBJ)	Subsidiaries
Acer Cyber Security Incorporated (ACSI)	Subsidiaries
Acer e-Enabling Data Center Incorporated (EDC)	Subsidiaries
ACSI Cyber Security Academy Inc. (ACAD)	Subsidiaries
Sertec (Beijing) Ltd. (SEB)	Subsidiaries
StarVR Corporation (ASBZ)	Subsidiaries
AOPEN Inc. (AOI)	Subsidiaries
AOPEN America Inc. (AOA)	Subsidiaries
AOPEN Computer B.V. (AOE)	Subsidiaries
AOPEN Technology Inc. (AOTH)	Subsidiaries

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

Name of related party	Relationship with the Company
AOPEN Japan Inc. (AOJ)	Subsidiaries
Aopen SmartVision Incorporated (AOSV)	Subsidiaries
AOPEN Global Solutions Pty Ltd. (AOGS)	Subsidiaries
Great Connection LTD. (GCL)	Subsidiaries
AOPEN International (ShangHai) Co., Ltd. (AOC)	Subsidiaries
AOPEN Information Products (Zhongshan) Inc. (AOZ)	Subsidiaries
AOPEN Australia & New Zealand Pty Ltd. (AOAU)	Subsidiaries
Amadana Corporation (AMDA)	Subsidiaries
Beasty Coffee Cafe Laboratory Corp. (BCC)	Subsidiaries
Bluechip Infotech Pty Ltd. (Bluechip)	Subsidiaries
Bluechip Infotech Incorporated (BLI)	Subsidiaries
Dingo Tech Pty Ltd. (DTP)	Subsidiaries
Mia Telecomms Pty Limited (MIA)	Subsidiaries
O’Nature Pty Ltd. (ONA)	Subsidiaries
Digital Networks Australia Pty Ltd. (DNA)	Subsidiaries
Ingeniq Pty Ltd. (IGP)	Subsidiaries
BLUECHIP GROUP (NZ) LIMITED (BLNZ)	Subsidiaries
BLUECHIP INFOTECH NEW ZEALAND LIMITED (BLINZ)	Subsidiaries
Goodson Imports Pty. Ltd. (GSI)	Subsidiaries (note 2)
Highpoint Service Network Corporation (HSNC)	Subsidiaries
Highpoint Service Network (Thailand) Co., Ltd. (HSNT)	Subsidiaries
Highpoint Service Network Vietnam Company Limited (HSNV)	Subsidiaries
PT HSN Tech Indonesia (HSNI)	Subsidiaries
HighPoint Service Network Sdn Bhd (HSN)	Subsidiaries
Highpoint Services Network Philippines, Inc. (HSNP)	Subsidiaries
Acerpure Inc. (API)	Subsidiaries
Acer Property Development Inc. (APDI)	Subsidiaries
Aspire Service & Development Inc. (ASDI)	Subsidiaries
Acerpure India CE Private Limited (APIN)	Subsidiaries
Acer Asset Management Incorporated (AAM)	Subsidiaries
Smart Frequency Technology Inc. (SFT)	Subsidiaries (note 3)
Haoyu Electric Co., Ltd. (HYE)	Subsidiaries
Embedded City Taiwan Limited (ECT)	Subsidiaries (note 2)
Posiflex Technology, Inc. (POSI)	Subsidiaries (note 2)
Portwell Inc. (PWTW)	Subsidiaries (note 2)
Posiflex Business Machines, Inc. (PBM)	Subsidiaries (note 2)
Posiflex GmbH (PG)	Subsidiaries (note 2)

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

Name of related party	Relationship with the Company
Posiflex International Co., Ltd. (PIC)	Subsidiaries (note 2)
Posiflex Business Machines Sdn. Bhd. (PBMM)	Subsidiaries (note 2)
Posiflex Technologies South Cone (PTSC)	Subsidiaries (note 2)
Posiflex Technology (India) Pvt Ltd. (PTIL)	Subsidiaries (note 2)
Posiflex Technology Pte. Ltd. (PTPL)	Subsidiaries (note 2)
Posiflex Technology Japan (PJ)	Subsidiaries (note 2)
Koming Technology Inc. (KMTW)	Subsidiaries (note 2)
ONK Cloud Computing Technology Inc. (ONKTW)	Subsidiaries (note 2)
Penetek Technology Inc. (PNTW)	Subsidiaries (note 2)
KIOSK Integrated Solutions, Inc. (KISTW)	Subsidiaries (note 2)
Posiflex Business Machines (Beijing) Co., Ltd. (PBMB)	Subsidiaries (note 2)
Mustek Technologies Pvt Ltd. (MTIN)	Subsidiaries (note 2)
Quinta Systems Pvt Ltd. (QSIN)	Subsidiaries (note 2)
ONK Clouding International Ltd. (ONKWS)	Subsidiaries (note 2)
ONK Clouding (Shanghai) (ONKSH)	Subsidiaries (note 2)
KIS Acquisition Corp. (KIA)	Subsidiaries (note 2)
KIOSK Information Systems, Inc. (KIOSK)	Subsidiaries (note 2)
Posiflex Business Machines, LLC (PBMLC)	Subsidiaries (note 2)
American Portwell Technology, Inc. (APT)	Subsidiaries (note 2)
Portwell Japan, Inc. (PJI)	Subsidiaries (note 2)
Portwell Development Co., Ltd. (DEVWS)	Subsidiaries (note 2)
European Portwell Technology B.V. (EPT)	Subsidiaries (note 2)
Portwell India Technology Private Limited (PIT)	Subsidiaries (note 2)
Portwell Korea, Inc. (PKI)	Subsidiaries (note 2)
GANLOT, Inc (GANTW)	Subsidiaries (note 2)
Holdwel Co., Ltd. (HWKY)	Subsidiaries (note 2)
MEDWEL, Inc. (MEDTW)	Subsidiaries (note 2)
WINCOMM CORPORATION (WCC)	Subsidiaries (note 2)
Wincomm Japan Corporation (WCJP)	Subsidiaries (note 2)
Wincomm Corporation (USA) (WCUS)	Subsidiaries (note 2)
Portwell Holding Ltd. (HOLWS)	Subsidiaries (note 2)
Portwell (UK) Ltd. (PUK)	Subsidiaries (note 2)
KIOSK Embedded Systems GmbH (KES)	Subsidiaries (note 2)
Kiosk Embedded Systems Srl (KESI)	Subsidiaries (note 2)
Welink Technology Co., Ltd. (WLTSH)	Subsidiaries (note 2)
Haoru Electric Co., Ltd. (HRC)	Joint venture
Haosheng Co., Ltd. (Haosheng)	Joint venture
Enrich Investment Incorporated (ERI)	Subsidiaries/Joint venture (note 6)

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

Name of related party	Relationship with the Company
GrandPad Inc. (GrandPad)	Associates (note 4)
Piovision International Inc. (HPT)	Associates
Kbest Technology Inc. (KBest)	Associates
Apacer Technology Inc. (AMT)	Associates (The Company has significant influence over AMT since May 31, 2024.)
Chao-Chi Property Management Consulting Co., Ltd. (CCP)	Subsidiaries/Associates (note 5)
Solming Green Energy Corp.	Associates
Acer Foundation	Substantive related party
Satoro Taiwan Inc.	The entity’s chairman is the Company’s director.
Mu-Jin Investments Co., Ltd.	The entity’s legal representative is the Company’s chairman.
Mu-Shi Investments Co., Ltd.	The entity’s legal representative is the Company’s chairman.

Note 1: SPE was originally one of subsidiaries of AST, who lost control over SPE on July 24, 2025. AST still has significant influence over SPE, and thus SPE was reclassified as an associate accounted for using the equity method.

Note 2: The entities were new subsidiaries acquired in 2025.

Note 3: As the Company disposed of the entire ownership of SFT on September 30, 2025, SFT was no longer a subsidiary of the Company thereafter.

Note 4: As ACTI disposed of the entire ownership of GrandPad on December 31, 2025, GrandPad was no longer an associate of the Company thereafter.

Note 5: Please refer to note 6(h)(iii) for further information.

Note 6: Please refer to note 6(h)(iv) for further information.

Note 7: The entities were liquidated in 2025 or mergered with the Company’s other subsidiary.

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(b) Significant related-party transactions

(i) Revenue

The amounts of significant sales to related parties were as follows:

	2025	2024
Subsidiaries
AEG	$ 51,286,878	52,431,036
AAC	51,255,547	50,857,656
Others	37,913,192	41,720,034
Associates	(284)	-
Other related parties	9	2,395
	$ 140,455,342	145,011,121

The sales prices and trade term with related parties depend on the economic environment and market competition, and are not comparable to those with third-party customers.

(ii) Purchases

The amounts of significant purchases from related parties were as follows:

	2025	2024
Subsidiaries	$ 8,718,980	8,871,040
Associates	1,534,464	233,631
	$ 10,253,444	9,104,671

The purchase price with related parties are not comparable to the purchase price with third-party vendors as the specifications of products are different.

(iii) Operating costs and expenses

The operating costs and expenses related to after-sale services for IT products, product development and design as well as business continuity plan services provided by related parties and the donation to related parties were as follows:

Accounts	Related-party categories	2025	2024
Cost of revenue	Subsidiaries	$ 723,419	609,856
Operating expense	Subsidiaries	138,144	51,028
Operating expense	Associates	1,748	2,182
Operating expense	Other related parties	12,000	16,000
		$ 875,311	679,066

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(iv) Lease

The Company leased investment property, property and rental office premises to its related parties. The related rental income was reported in “other operating income and expenses – net” and summarized as follows:

	2025	2024
Subsidiaries	$ 80,626	85,405
Joint venture	9	32
Other related parties	34	103
	$ 80,669	85,540

(v) Service income

The service income related to management services provided to related parties was included in “other gains and losses” and was summarized as follows:

	2025	2024
Subsidiaries	$ 38,399	30,832
Associates	4,575	48
Other related parties	160	134
	$ 43,134	31,014

(vi) Loans to related parties

The actual drawdown amounts were as follows:

	December 31, 2025	December 31, 2024
Subsidiaries:
AFE	$ 230,086	295,377
ITS	415,000	436,000
ALT	-	140,000
PAM	-	151,953
Associates:
CCP	-	140,000
	$ 645,086	1,163,330
Interest rate	1.49%-4.51%	1.49%-5.85%

Interest income related to loans to subsidiaries and associates in 2025 and 2024 was $21,335 and $57,920, respectively.

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(vii) Borrowings from related parties

The borrowings from related parties were as follows:

	December 31, 2025	December 31, 2024
Subsidiaries:
ADSC	$ 150,000	-
CCI	550,000	505,000
ABH	100,000	-
	$ 800,000	505,000
Interest rate	1.58%~1.87%	1.58%

Interest expenses related to borrowings from subsidiaries in 2025 and 2024 were $11,285 and $7,570, respectively.

(viii) Payables related to defined benefit liabilities due to employee transfer to subsidiaries

The net defined benefit liabilities have been transferred to subsidiaries as certain employees were transferred from the Company to ALT, HSNC, API, ITS and AEB. Related payables were included in "other payables to related parties" and "long-term payable to related parties".

(ix) Receivables from related parties

Accounts	Related-party categories	December 31, 2025	December 31, 2024
Notes and accounts receivable from related parties	Subsidiaries:
	AAC	$ 8,566,766	1,940,566
	AIL	4,521,109	4,520,627
	Others	9,928,408	8,393,271
Notes and accounts receivable from related parties	Associates	92	95,963
	Subtotal	23,016,375	14,950,427
Other receivables from related parties	Subsidiaries	95,842	59,048
Other receivables from related parties (financing)	Subsidiaries	645,086	1,023,330
Other receivables from related parties (financing)	Associates	-	140,000
Other receivables from related parties	Associates	4,179	601
Other receivables from related parties	Other related parties	168	18
	Subtotal	745,275	1,222,997
		$ 23,761,650	16,173,424

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

(x) Payables to related parties

Accounts	Related party categories	December 31, 2025	December 31, 2024
Accounts payable to related parties	Subsidiaries	$ 1,528,454	1,259,608
Accounts payable to related parties	Associates	250,837	78,706
	Subtotal	1,779,291	1,338,314
Other payables to related parties	Subsidiaries	262,083	503,921
Other payables to related parties	Other related parties	6,000	-
Other payables to related parties (financing)	Subsidiaries	800,000	505,000
	Subtotal	1,068,083	1,008,921
Long-term payable to related parties	Subsidiaries	13,635	13,635
		$ 2,861,009	2,360,870

(xi) Guarantees and endorsements provided to related parties

As of December 31, 2025 and 2024, the balances of guarantees and endorsements provided to subsidiaries and joint ventures were $34,071,687 and $30,346,121, respectively, and the amounts actually drawn were $12,485,909 and $6,506,251, respectively.

	2025	2024
Short-term employee benefits	$ 146,067	172,273
Post-employment benefits	2,873	2,781
	$ 148,940	175,054

8. Pledged assets

The carrying values of pledged assets (reported under other financial assets—non-current) were as follows:

Assets	Pledged to secure	December 31, 2025	December 31, 2024
Cash in bank and time deposits	Contract bidding, refundable deposits, and project fulfillment guarantee	$ 225,002	155,618

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

9. Significant commitments and contingencies

(a) The Company has entered into software and royalty license agreements with Microsoft, Google and other companies. The Company has fulfilled its obligations according to the contracts.

(b) In the regular course of its business from, the Company received letter of notice from third parties asserting that the Company has infringed certain patents and demanded that it should obtain certain patent licenses. Although the Company does not expect that the outcome of any of these legal proceedings (individually or collectively) will have a material adverse effect on its business operations and finance, the litigation is inherently unpredictable. Therefore, the Company may be involved in a future lawsuit or enter into settlements of claims that could adversely affect its operating results or cash flows within a particular period.

(c) As of December 31, 2025 and 2024, the Company had outstanding stand-by letters of credit provided by the banks amounting to $7,933 and $3,322, respectively, for purposes of bids and contracts.

(d) As of December 31, 2025 and 2024, the Company had issued promissory notes amounting to $33,994,656 and $35,873,262, respectively, as collateral for obtaining credit facilities from financial institutions.

10. Significant loss from disaster: None

11. Significant subsequent events: None

12. Others

A summary of employee benefits, depreciation, and amortization, by function, is as follows:

	2025			2024
	Cost of revenue	Operating expenses	Total	Cost of revenue	Operating expenses	Total
Employee benefits:
Salaries	-	2,380,376	2,380,376	-	2,676,691	2,676,691
Insurance	-	175,430	175,430	-	171,616	171,616
Pension	-	98,129	98,129	-	104,969	104,969
Remuneration of directors	-	18,767	18,767	-	20,840	20,840
Others	-	139,309	139,309	-	143,642	143,642
Depreciation	-	191,033	191,033	-	157,957	157,957
Amortization	3,630	25,949	29,579	5,493	26,753	32,246

Number of employees
Directors not in concurrent employment
Average employee benefits
Average employee salaries
Adjustment of average employee salaries

2025	2024
1,499	1,518
4	4
$ 1,868	2,046
$ 1,592	1,768
(9.95)%

(Continued)

ACER INCORPORATED

Notes to Parent-Company-Only Financial Statements

The Company’s compensation policy, including directors, managers, and employees, is as follows:

The compensation of directors and managers is evaluated and reviewed by Compensation Committee periodically. The compensation of employees is determined by participating in salary surveys every year and reviewing salary level regularly to provide competitive compensation to employees.

13. Additional disclosures

(a) Information on significant transactions:

(i) Financing provided to other parties: See Table 1 attached;

(ii) Guarantees and endorsements provided to other parties: See Table 2 attached;

(iii) Material marketable securities held at reporting date (excluding investments in subsidiaries, associates, and jointly controlled entities): See Table 3 attached;

(iv) Total purchases from and sales to related parties which exceed $100 million or 20% of the paid-in capital: See Table 4 attached;

(v) Receivables from related parties which exceed $100 million or 20% of the paid-in capital: See Table 5 attached;

(b) Information on investees: See Table 6 attached;

(i) The names of investees in Mainland China, the main businesses and products, paid-in capital, method of investment, information on inflow or outflow of capital, percentage of ownership, income (losses) of the investees, share of profits (losses) of investees, ending balance, amount received as earnings distributions from the investment, and limitation on investment: See Table 7 attached;

(ii) Significant direct or indirect transactions with investee companies, the prices and terms of payment, unrealized gain or loss, and other related information which is helpful to understand the impact of investment in Mainland China on financial reports: For the Company’s significant direct or indirect transactions (eliminated when compiling the consolidated financial statements) with investee companies in Mainland China for the year ended December 31, 2025, please refer to “Information on significant transactions” above.

14. Segment information

Please refer to the consolidated financial statements for the year ended December 31, 2025.

(Continued)

Acer Incorporated

Financing provided to other parties

For the year ended December 31, 2025

Table 1
(Amounts in Thousands of New Taiwan Dollars)

No.	Financing Company	Counterparty	Financial Statement Account (Note 4)	Related Party	Maximum Balance for the Period	Ending Balance	Actual Amount Drawn	Interest Rate	Nature of Financing (Note 1)	Transaction Amounts	Reasons for Short-term Financing	Loss Allowance	Collateral		Financing Limit for Each Borrowing Company (Note 2)	Financing Company's Total Financing Amount Limits (Note 3)
													Item	Value
0	The Company	ADSC	Other receivables from related parties	Yes	31,000	30,000	-	1%-8%	2	-	Operating requirements	-	None	-	7,560,015	15,120,030
0	The Company	EDC	Other receivables from related parties	Yes	600,000	200,000	-	1%-8%	2	-	Operating requirements	-	None	-	2,783,433	15,120,030
0	The Company	ALT	Other receivables from related parties	Yes	375,000	-	-	1%-8%	2	-	Operating requirements	-	None	-	661,001	15,120,030
0	The Company	ITS	Other receivables from related parties	Yes	1,140,000	560,000	415,000	1%-8%	2	-	Operating requirements	-	None	-	7,560,015	15,120,030
0	The Company	AFE	Other receivables from related parties	Yes	684,292	343,110	230,086	1%-8%	2	-	Operating requirements	-	None	-	7,560,015	15,120,030
0	The Company	ABH	Other receivables from related parties	Yes	40,000	39,000	-	1%-8%	2	-	Operating requirements	-	None	-	7,560,015	15,120,030
0	The Company	PAM	Other receivables from related parties	Yes	869,004	-	-	1%-8%	2	-	Operating requirements	-	None	-	491,834	15,120,030
0	The Company	CCI	Other receivables from related parties	Yes	2,000	1,000	-	1%-8%	2	-	Operating requirements	-	None	-	7,560,015	15,120,030
0	The Company	CCP	Other receivables from related parties	Yes	140,000	-	-	1%-8%	2	-	Operating requirements	-	None	-	900,934	15,120,030
0	The Company	AEB	Other receivables from related parties	Yes	800,000	300,000	-	1%-8%	2	-	Operating requirements	-	None	-	4,714,130	15,120,030
0	The Company	HYE	Other receivables from related parties	Yes	590,000	590,000	-	1%-8%	2	-	Operating requirements	-	None	-	1,602,797	15,120,030
1	ABH	ABST	Other receivables from related parties	Yes	170,000	68,000	68,000	1%-8%	2	-	Operating requirements	-	None	-	238,204	952,817
1	ABH	ABSG	Other receivables from related parties	Yes	168,418	92,253	84,873	1%-8%	2	-	Operating requirements	-	None	-	238,204	952,817
1	ABH	ABC	Other receivables from related parties	Yes	84,000	41,500	29,300	1%-8%	2	-	Operating requirements	-	None	-	238,204	952,817
1	ABH	The Company	Other receivables from related parties	Yes	200,000	100,000	100,000	1%-8%	2	-	Operating requirements	-	None	-	952,817	952,817
2	ADSC	The Company	Other receivables from related parties	Yes	300,000	150,000	150,000	1%-8%	2	-	Operating requirements	-	None	-	1,065,853	1,065,853
2	ADSC	Bhuchip	Other receivables from related parties	Yes	192,021	117,398	117,398	1%-8%	2	-	Operating requirements	-	None	-	266,463	1,065,853
2	ADSC	ENP	Other receivables from related parties	Yes	25,000	-	-	1%-8%	2	-	Operating requirements	-	None	-	266,463	1,065,853
2	ADSC	ABH	Other receivables from related parties	Yes	140,000	-	-	1%-8%	2	-	Operating requirements	-	None	-	266,463	1,065,853
2	ADSC	BLI	Other receivables from related parties	Yes	24,500	9,500	9,000	1%-8%	2	-	Operating requirements	-	None	-	266,463	1,065,853
2	ADSC	ABST	Other receivables from related parties	Yes	36,000	36,000	35,600	1%-8%	2	-	Operating requirements	-	None	-	266,463	1,065,853
2	ADSC	ALT	Other receivables from related parties	Yes	190,000	-	-	1%-8%	2	-	Operating requirements	-	None	-	266,463	1,065,853
2	ADSC	AMDA	Other receivables from related parties	Yes	10,530	-	-	1%-8%	2	-	Operating requirements	-	None	-	266,463	1,065,853
3	GWI	AAC	Other receivables from related parties	Yes	1,053,824	502,656	502,656	1%-8%	2	-	Operating requirements	-	None	-	29,831,126	29,831,126
3	GWI	CRI	Other receivables from related parties	Yes	497,730	-	-	1%-8%	2	-	Operating requirements	-	None	-	4,971,854	4,971,854
4	AAH	AAC	Other receivables from related parties	Yes	10,440,444	5,042,268	5,042,268	1%-8%	2	-	Operating requirements	-	None	-	37,533,891	37,533,891
5	AHN	ENNL	Other receivables from related parties	Yes	550,357	369,012	236,168	1%-8%	2	-	Operating requirements	-	None	-	6,522,190	13,044,380
6	CCI	The Company	Other receivables from related parties	Yes	1,150,000	550,000	550,000	1%-8%	2	-	Operating requirements	-	None	-	726,608	726,608
7	AEG	The Company	Other receivables from related parties	Yes	1,813,443	-	-	1%-8%	2	-	Operating requirements	-	None	-	3,424,110	3,424,110
8	AIZS	ACCQ	Other receivables from related parties	Yes	367,223	184,324	184,324	1%-8%	2	-	Operating requirements	-	None	-	231,423	231,423
9	ACCN	ACCQ	Other receivables from related parties	Yes	2,222,089	1,078,970	989,056	1%-8%	2	-	Operating requirements	-	None	-	1,581,167	1,581,167
9	ACCN	EBSH	Other receivables from related parties	Yes	88,434	42,709	-	1%-8%	2	-	Operating requirements	-	None	-	263,528	263,528

No.	Financing Company	Counterparty	Financial Statement Account (Note 4)	Related Party	Maximum Balance for the Period	Ending Balance	Actual Amount Drawn	Interest Rate	Nature of Financing (Note 1)	Transaction Amounts	Reasons for Short-term Financing	Loss Allowance	Collateral		Financing Limit for Each Borrowing Company (Note 2)	Financing Company's Total Financing Amount Limits (Note 3)
													Item	Value
10	ASSB	IMA	Other receivables from related parties	Yes	218,926	-	-	1%-8%	2	-	Operating requirements	-	None	-	787,123	1,574,246
11	ASDI	APDI	Other receivables from related parties	Yes	18,000	9,000	-	2.00%	2	-	Operating requirements	-	None	-	12,466	49,865
12	API	APDI	Other receivables from related parties	Yes	63,000	32,000	-	2.00%	2	-	Operating requirements	-	None	-	36,902	147,607
13	AST	ASTA	Other receivables from related parties	Yes	120,000	120,000	-	-	2	-	Operating requirements	-	None	-	96,204	384,815
13	AST	SPE	Other receivables from related parties	Yes	60,000	-	-	-	2	-	Operating requirements	-	None	-	96,204	384,815
14	AMED	AHC	Other receivables from related parties	Yes	25,000	5,000	5,000	2.025%-2.0755%	2	-	Operating requirements	-	None	-	16,492	65,970
15	AOI	AOAU	Other receivables from related parties	Yes	20,964	20,964	15,200	5.60%	2	-	Operating requirements	-	None	-	166,611	666,445
16	ASM	ASMA	Other receivables from related parties	Yes	13,447	13,195	-	-	2	-	Operating requirements	-	None	-	14,186	56,742
17	AGT	AFS	Other receivables from related parties	Yes	60,000	60,000	-	1.90%	2	-	Operating requirements	-	None	-	118,549	474,195
17	AGT	AGA	Other receivables from related parties	Yes	62,832	62,832	-	5.00%	2	-	Operating requirements	-	None	-	118,549	474,195

Note 1: Nature of Financing:
Type 2: Short-term financing purpose
Note 2: 1. The aggregate financing amount shall not exceed 50% of net worth of the Company, within which the short-term financing amount shall not exceed 20% of net worth of the Company.
1-1. When a subsidiary who provides financing to other parties is directly or indirectly wholly owned by the Company, the individual financing amounts shall not exceed 10% of net worth of the Company.
1-2. For an entity which the Company owns more than 50% but less than 100% of its outstanding common shares, the individual financing amounts shall not exceed lower of 10% of net worth of the Company and 200% of net worth of the entity.
1-3. For an entity which the Company owns less than 50% of its outstanding common shares, the individual financing amounts shall not exceed 10% of net worth of the Company.
1-4. When a joint venture provides financing to other parties, the individual financing amounts shall not exceed lower of 5% of net worth of the Company and the net worth of the joint venture recognized based on the Company's ownership percentage.
2. The financing limits of ABH, ADSC and CCI were as follows:
2-1. The aggregate financing amount shall not exceed 40% of net worth of the entities listed above.
2-2. For an entity or other affiliates which the Company owns more than 50% of its outstanding common shares, the individual financing amounts shall not exceed 10% of net worth of the Company.
2-3. For an entity which the Company owns less than 50% of its outstanding common shares, the individual financing amounts shall not exceed lower of 5% of net worth of the Company and 40% of net worth of the entity.
2-4. The individual financing amounts to the ultimate parent company shall not exceed 40% of net worth of the entities listed above.
3. The financing limits of GWI, AAH, AIZS and ACCN were as follows:
3-1. The aggregate financing amount shall not exceed 20% of net worth of the entities listed above, or the financing amount subject to regulations governing financing provided to other parties stipulated by the ultimate parent company.
3-2. The individual financing amounts shall not exceed higher of 20% of net worth of the entity or the financing amount subject to regulations governing financing provided to other parties stipulated by the ultimate parent company.
3-3. For an entity which the ultimate parent company wholly owns directly or indirectly, the individual financing amounts shall not exceed 120% of net worth of the entity.
4. The financing limits of AHN and ASSB were as follows:
4-1. The financing amounts provided to an entity which the ultimate parent company directly or indirectly owns more than 50% of its outstanding shares or a fellow subsidiary of the same group were as follows:
4-1-1. The aggregate financing amount shall not exceed 50% of net worth of the entities listed above.
4-1-2. The individual financing amounts shall not exceed 20% of net worth of the entities listed above.
4-2. For a foreign subsidiary directly or indirectly owned by the ultimate parent company, there is no limit as mentioned in 4-1.
4-2-1. The aggregate financing amount shall not exceed 100% of net worth of the entities listed above.
4-2-2. The individual financing amounts shall not exceed 50% of net worth of the entities listed above.
5. The financing limits of AEG were as follows:
5-1. The financing amounts provided to an entity which the ultimate parent company directly or indirectly owns more than 50% of its outstanding shares or a fellow subsidiary of the same group were as follows:
5-1-1. The aggregate financing amount shall not exceed 50% of net worth of the entities listed above.
5-1-2. The individual financing amounts shall not exceed 20% of net worth of the entities listed above.
5-2. For the ultimate parent company and a foreign subsidiary directly or indirectly owned by the ultimate parent company, there is no limit as mentioned in 5-1.
5-2-1. The aggregate financing amount shall not exceed 120% of net worth of the entities listed above.
5-2-2. The individual financing amounts shall not exceed 120% of net worth of the entities listed above.
6. The financing limits of AST, ASM, AMED, AGT, API, and ASDI were as follows:
6-1. The aggregate financing amount shall not exceed 40% of net worth of the entities listed above.
6-2. The individual financing amounts to the ultimate parent company and its related parties shall not exceed 10% of net worth of the entities listed above.
6-3. Regarding the financing provided by AST to ASTA, as the financing contract with a financing limit of $60,000 expired in January 2025, AST's Board of Directors had approved the financing of $60,000 to ASTA due to its operating requirements. However, because of the early meeting of the Board of Directors, the ending balance of the financing provided by AST to ASTA was repetitively calculated.
7. The financing limits of ADI were as follows:
7-1. The aggregate financing amount shall not exceed 40% of net worth of the entities listed above, within which the short-term financing amount shall not exceed 40% of net worth of the Company.
7-2. The individual financing amounts shall not exceed 10% of net worth of the entities listed above.
Note 3: Net worth of the Company and subsidiaries listed above are the most recent audited.
Note 4: The above transactions are eliminated when preparing the consolidated financial statements.

Acer Incorporated

Guarantees and endorsements provided to other parties

For the year ended December 31, 2025

Table 2
(Amounts in Thousands of New Taiwan Dollars)

No.	Endorsement/ Guarantee Provider	Guaranteed Party		Limits on Endorsement/ Guarantee Amount Provided to Each Guaranteed Party (Note 2 to Note 11)	Maximum Balance for the Period	Ending Balance	Actual Amount Drawn	Amount of Endorsement/ Guarantee Collateralized by Properties	Ratio of Accumulated Endorsement/ Guarantee to Net Equity per Latest Financial Statements	Maximum Endorsement/ Guarantee Amount Allowable (Note 2 to Note 11)	Guarantee Provided by Parent Company	Guarantee Provided by A Subsidiary	Guarantee Provided to Subsidiaries in Mainland China
		Name	Nature of Relationship (Note 1)
0	The Company	AJC	2	15,120,030	671,357	601,417	-	-	0.80%	75,600,149	Y
0	The Company	ATH/ALTH	2	15,120,030	175,865	166,505	-	-	0.22%	75,600,149	Y
0	The Company	Acer Asia Pacific subsidiaries	2	15,120,030	2,322,740	2,199,120	211,751	-	2.91%	75,600,149	Y
0	The Company	AEG	2	15,120,030	323,847	323,847	323,847	-	0.43%	75,600,149	Y
0	The Company	Acer EMEA subsidiaries	2	15,120,030	1,161,370	1,099,560	168,726	-	1.45%	75,600,149	Y
0	The Company	Acer EMEA subsidiaries	2	15,120,030	165,910	157,080	29,426	-	0.21%	75,600,149	Y
0	The Company	ACN/ACD/ACW/AFN	2	15,120,030	13,643	13,643	13,643	-	0.02%	75,600,149	Y
0	The Company	Acer Pan America subsidiaries	2	15,120,030	5,640,940	5,340,720	1,663,379	-	7.06%	75,600,149	Y
0	The Company	AMEX	2	15,120,030	298,638	282,744	-	-	0.37%	75,600,149	Y
0	The Company	Acer Greater China subsidiaries	2	15,120,030	1,825,010	1,727,880	16,907	-	2.29%	75,600,149	Y		Y
0	The Company	SMA	2	15,120,030	232,121	232,121	128,301	-	0.31%	75,600,149	Y
0	The Company	ACA	2	15,120,030	182,501	172,788	172,788	-	0.23%	75,600,149	Y
0	The Company	AJL	2	15,120,030	3,335,563	3,014,519	911,230	-	3.99%	75,600,149	Y
0	The Company	ACCQ	2	15,120,030	663,640	628,320	628,320	-	0.83%	75,600,149	Y		Y
0	The Company	ABSG	2	15,120,030	165,910	157,080	-	-	0.21%	75,600,149	Y
0	The Company	J2X	2	15,120,030	402,100	402,100	82,100	-	0.53%	75,600,149	Y
0	The Company	ALT	2	15,120,030	310,000	100,000	-	-	0.13%	75,600,149	Y
0	The Company	MPS	2	15,120,030	150,000	100,000	-	-	0.13%	75,600,149	Y
0	The Company	EDC	2	15,120,030	2,986,380	2,827,440	690,336	-	3.74%	75,600,149	Y
0	The Company	AAC	2	15,120,030	2,104,872	2,104,872	1,504,808	-	2.78%	75,600,149	Y
0	The Company	API	2	15,120,030	60,000	-	-	-	0.00%	75,600,149	Y
0	The Company	CPY	2	15,120,030	18,451	18,451	18,451	-	0.02%	75,600,149	Y
0	The Company	ALTH	2	15,120,030	49,773	-	-	-	0.00%	75,600,149	Y
0	The Company	ALIN	2	15,120,030	116,479	-	-	-	0.00%	75,600,149	Y
0	The Company	ATB	2	15,120,030	995,460	942,480	155,909	-	1.25%	75,600,149	Y
0	The Company	HRC	6	15,120,030	6,480,000	4,980,000	3,775,898	-	6.59%	75,600,149	Y
0	The Company	AMED	2	15,120,030	100,000	100,000	2,500	-	0.13%	75,600,149	Y
0	The Company	Haosheng	6	15,120,030	1,799,000	1,799,000	267,589	-	2.38%	75,600,149	Y
0	The Company	HYE	2	15,120,030	2,800,000	2,800,000	-	-	3.70%	75,600,149	Y
0	The Company	ECT	2	15,120,030	1,780,000	1,780,000	1,720,000	-	2.35%	75,600,149	Y
1	AHI	The Company	3	15,120,030	3,333,333	3,333,333	3,333,333	-	23.07%	14,448,514		Y
2	AST	ASTA	2	192,407	66,364	47,124	-	-	4.90%	481,019
3	WLII	CRI	2	560,552	199,092	-	-	-	0.00%	1,401,380
3	WLII	PAM	2	560,552	82,955	-	-	-	0.00%	1,401,380
3	WLII	PST	2	560,552	149,319	-	-	-	0.00%	1,401,380			Y
3	WLII	PAL	2	560,552	38,159	-	-	-	0.00%	1,401,380
4	HSNC	HSNT	2	133,016	66,364	62,832	3,959	-	18.89%	332,540
4	HSNC	HSNI	2	133,016	16,591	15,708	-	-	4.72%	332,540
4	HSNC	HSNV	2	133,016	33,182	31,416	-	-	9.45%	332,540
4	HSNC	HSNP	2	133,016	33,182	31,416	-	-	9.45%	332,540
4	HSNC	HSN	2	133,016	33,182	31,416	1,918	-	9.45%	332,540
5	API	APDI	2	73,803	50,000	50,000	26,000	-	13.55%	184,509
6	AOI	AMDA	2	499,834	234,990	210,525	108,270	-	12.64%	1,666,113
7	PAM	CRI	2	245,917	80,043	-	-	-	0.00%	491,835
7	PAM	PST	2	245,917	80,043	78,540	1,197	-	15.97%	491,835			Y
8	ASM	ASMA	2	28,371	25,614	25,133	-	-	17.72%	70,928
9	POSI	PBM/KIOSK	2	20,639,024	265,640	251,328	163,363	-	2.44%	20,639,024
9	POSI	KIOSK	2	20,639,024	534,072	534,072	172,003	-	5.18%	20,639,024
9	POSI	PTIL	2	20,639,024	52,873	52,873	24,033	-	10.51%	20,639,024
9	POSI	MTIN	2	20,639,024	18,393	18,393	-	-	0.18%	20,639,024
10	APT	PWTW	3	8,926,062	498,075	-	-	-	0.00%	8,926,062
11	PTIL	MTIN	2	109,723	62,240	-	-	-	0.00%	109,723
12	WKNJ	WKSH	4	50,305	22,479	22,479	-	-	22.34%	50,305			Y

Note 1: Relationships between the endorsement/guarantee provider and the guaranteed party:
Type 2: an entity directly or indirectly owned by the Company over 50%
Type 3: the Company, directly and indirectly, has voting rights of the entity over 50%
Type 4: between entities directly or indirectly owned by the Company over 90%
Type 6: An entity jointly invested by capital contributing shareholders that make endorsements/guarantees in proportion to their shareholding percentages.

Note 2: The aggregate endorsement/guarantee amount provided shall not exceed the most recent audited net worth of the Company.
The endorsement/guarantee amount provided to individual guarantee party shall not exceed 20% of the most recent audited net worth of the Company.

Note 3: The aggregate endorsement/guarantee amount provided shall not exceed the most recent audited net worth of AHI.
The endorsement/guarantee amount provided to individual guarantee party shall not exceed 20% of the most recent audited net worth of AHI.
However, for the endorsement/guarantee amount provided to the parent company, the limit of the endorsement/guarantee amount is determined using the net worth of the parent company.

Note 4: The aggregate endorsement/guarantee amount provided shall not exceed 50% of the most recent audited net worth of AST, ASM, WLII and API.
The endorsement/guarantee amount provided to individual guarantee party shall not exceed 20% of the most recent audited net worth of AST, ASM, WLII and API.

Note 5: The aggregate endorsement/guarantee amount provided shall not exceed the most recent audited net worth of HSNC.
The endorsement/guarantee amount provided to individual guarantee party shall not exceed 40% of the most recent audited net worth of HSNC.

Note 6: The aggregate endorsement/guarantee amount provided shall not exceed the most recent audited net worth of AOI.
The endorsement/guarantee amount provided to individual guarantee party shall not exceed 30% of the most recent audited net worth of AOI.

Note 7: The aggregate endorsement/guarantee amount provided shall not exceed the most recent audited net worth of PAM.
The endorsement/guarantee amount provided to individual guarantee party shall not exceed 20% of the most recent audited net worth of AOI.
The endorsement/guarantee amount provided to a subsidiary directly or indirectly wholly owned by PAM shall not exceed 50% of the abovementioned net worth.

Note 8: The aggregate endorsement/guarantee amount provided shall not exceed 200% of the most recent audited net worth of POSI.
The endorsement/guarantee amount provided to individual guarantee party shall not exceed 200% of the most recent audited net worth of POSI.

Note 9: Limit for the total endorsements/ guarantees amount shall not exceed 200% of the latest financial statements of APT’s net assets, and it shall not exceed 200% of the latest financial statements of the Company’s net assets as well.
The amount of endorsements/ guarantees for any single entity shall not exceed 200% of the latest financial statements of APT’s net assets, and it shall not exceed 200% of the latest financial statements of the Company’s net assets as well.

Note 10: Limit for the total endorsements/ guarantees amount shall not exceed 150% of the latest financial statements of PTIL’s net assets, and it shall not exceed 200% of the latest financial statements of the Company’s net assets as well.
The amount of endorsements/ guarantees for any single entity shall not exceed 150% of the latest financial statements of PTIL’s net assets and it shall not exceed 200% of the lastest statements of the Company’s net assets as well.

Note 11: The aggregate endorsement/guarantee amount provided shall not exceed 50% of the most recent audited net worth of WKNJ.
The endorsement/guarantee amount provided to individual guarantee party shall not exceed 50% of the most recent audited net worth of WKNJ.

~81~

Acer Incorporated

Significant Securities held

(Excluding investments in subsidiaries, associates, and jointly controlled entities)

December 31, 2025

Table 3
(Amounts in Thousands of New Taiwan Dollars / Shares)

Investing Company	Marketable Securities Type and Name	Relationship with the Securities Issuer	Financial Statement Account	Ending Balance				Maximum ownership during 2025		Note
				Shares/ Units (in thousands)	Carrying Value	Percentage of Ownership	Fair Value	Shares/ Units (in thousands)	Percentage of Ownership
The Company	Stock: Qisda	-	Financial assets measured at fair value through other comprehensive income — non-current	65,576	1,541,035	4.15%	1,541,035	81,716	4.24%
The Company	Stock: Wistron	-	Financial assets measured at fair value through other comprehensive income — non-current	19,109	2,875,904	0.60%	2,875,904	19,109	0.66%
The Company	Stock: FocalTech	-	Financial assets measured at fair value through other comprehensive income — non-current	8,733	451,480	3.95%	451,480	8,733	3.98%
The Company	Preferred stock C: FBFH	-	Financial assets measured at fair value through other comprehensive income — non-current	7,000	373,800	2.10%	373,800	7,000	2.10%	(Note 1)
The Company	Stock: Welldone	-	Financial assets measured at fair value through other comprehensive income — non-current	12,225	605,138	12.57%	605,138	12,225	12.57%
The Company	Stock: PELL BMT	-	Financial assets measured at fair value through other comprehensive income — non-current	1,861	637,504	2.87%	637,504	2,400	4.15%
The Company	P12 Cathay Life Insurance 1A	-	Financial assets measured at amortized cost — non-current	-	1,500,000	-	1,499,753	-	-
The Company	P13 Cathay Life Insurance 1A	-	Financial assets measured at amortized cost — non-current	-	1,500,000	-	1,499,789	-	-
ADSC	Stock: Wistron	-	Financial assets measured at fair value through other comprehensive income — non-current	13,046	1,963,451	0.41%	1,963,451	13,046	0.45%

Note 1: The stocks held are preferred stocks, the percentage of ownership listed above is the percentage of ownership of preferred stock.
Note 2: Material securities held at reporting date are listed for the carrying amounts which exceed $300 million or 20% of the paid-in capital in accordance with materiality principles.

Acer Incorporated

Total purchases from and sales to related parties which exceed NT$100 million or 20% of the paid-in capital

For the year ended December 31, 2025

Table 4
(Amounts in Thousands of New Taiwan Dollars)

Company Name	Related Party	Nature of Relationship	Transaction Details				Transactions with Terms Different from Others (Note 1)		Notes/Accounts Receivable or (Payable)
			Purchases/ (Sales)	Amount	% of Total Purchases/(Sales)	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
The Company	AAC	Parent/Subsidiary	(Sales)	(51,255,547)	(33.10)%	OA90	-	-	8,566,766	30.98%
The Company	ACA	Parent/Subsidiary	(Sales)	(4,986,325)	(3.22)%	OA60	-	-	1,786,320	6.46%
The Company	ACCQ	Parent/Subsidiary	(Sales)	(1,857,186)	(1.20)%	OA60	-	-	135,084	0.49%
The Company	ACNZ	Parent/Subsidiary	(Sales)	(314,355)	(0.20)%	OA60	-	-	37,938	0.14%
The Company	ACS	Parent/Subsidiary	(Sales)	(2,259,335)	(1.46)%	OA60	-	-	475,668	1.72%
The Company	AEG	Parent/Subsidiary	(Sales)	(51,286,878)	(33.12)%	OA60	-	-	2,174,820	7.86%
The Company	AFE	Parent/Subsidiary	(Sales)	(3,208,690)	(2.07)%	OA60	-	-	332,426	1.20%
The Company	AIL	Parent/Subsidiary	(Sales)	(7,447,637)	(4.81)%	OA150	-	-	4,521,109	16.35%
The Company	AIN	Parent/Subsidiary	(Sales)	(4,232,287)	(2.73)%	OA90	-	-	596,869	2.16%
The Company	AJC	Parent/Subsidiary	(Sales)	(891,720)	(0.58)%	OA60	-	-	710,490	2.57%
The Company	AMI	Parent/Subsidiary	(Sales)	(1,274,133)	(0.82)%	OA90	-	-	333,796	1.21%
The Company	APHI	Parent/Subsidiary	(Sales)	(1,731,455)	(1.12)%	OA60	-	-	881,453	3.19%
The Company	ASSB	Parent/Subsidiary	(Sales)	(2,429,471)	(1.57)%	OA60	-	-	869,457	3.14%
The Company	ATH	Parent/Subsidiary	(Sales)	(4,360,220)	(2.82)%	OA60	-	-	1,007,372	3.64%
The Company	AVN	Parent/Subsidiary	(Sales)	(165,070)	(0.11)%	OA60	-	-	43,438	0.16%
The Company	AGT	Parent/Subsidiary	(Sales)	(146,136)	(0.10)%	OA60	-	-	36,513	0.14%
The Company	WLII	Parent/Subsidiary	(Sales)	(2,209,432)	(1.43)%	EM45	-	-	367,140	1.33%
The Company	AFS	Parent/Subsidiary	Purchases	139,647	0.06%	OA60	-	-	(45,675)	(0.15)%
The Company	APHI	Parent/Subsidiary	Purchases	290,820	0.12%	OA60	-	-	(46,304)	(0.15)%
The Company	AVN	Parent/Subsidiary	Purchases	111,614	0.05%	OA60	-	-	(31,330)	(0.10)%
The Company	HSNC	Parent/Subsidiary	Purchases	125,333	0.05%	OA60	-	-	(25,547)	(0.08)%
The Company	ALT	Parent/Subsidiary	Purchases	694,106	0.29%	OA60	-	-	(90,261)	(0.29)%
The Company	EDC	Parent/Subsidiary	Purchases	108,749	0.04%	EM60	-	-	(36,607)	(0.12)%
The Company	AEB	Parent/Subsidiary	Purchases	330,423	0.14%	EM30	-	-	(22,433)	(0.07)%
The Company	AOI	Parent/Subsidiary	Purchases	6,690,944	2.76%	EM60	-	-	(1,256,504)	(4.07)%
The Company	AGT	Parent/Subsidiary	Purchases	767,791	0.32%	OA60	-	-	(82,234)	(0.27)%
WELL	WLII	Parent/Subsidiary	Purchases	922,524	95.91%	EM45	-	-	(60,682)	(88.95)%
ALT	The Company	Parent/Subsidiary	(Sales)	(694,106)	(61.91)%	OA60	-	-	90,261	54.37%
EDC	The Company	Parent/Subsidiary	(Sales)	(108,749)	(4.47)%	EM60	-	-	36,607	9.87%
AEB	The Company	Parent/Subsidiary	(Sales)	(330,423)	(3.48)%	EM30	-	-	22,433	0.85%
AEB	WLII	Fellow subsidiary	Purchases	337,072	4.16%	EM60	-	-	(58,017)	(3.98)%
AGM	AGMPH	Parent/Subsidiary	(Sales)	(557,912)	(17.94)%	OA60	-	-	279,895	58.71%
AFS	The Company	Parent/Subsidiary	(Sales)	(139,647)	(67.66)%	OA60	-	-	45,675	68.93%
WKNJ	WKSH	Fellow subsidiary	Purchases	255,491	44.23%	EM45	-	-	(207,578)	(75.80)%
AOI	AOE	Parent/Subsidiary	(Sales)	(302,641)	(4.18)%	OA60	-	-	186,074	10.32%

Company Name	Related Party	Nature of Relationship	Transaction Details				Transactions with Terms Different from Others (Note 1)		Notes/Accounts Receivable or (Payable)
			Purchases/ (Sales)	Amount	% of Total Purchases/(Sales)	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
AOI	The Company	Parent/Subsidiary	(Sales)	(6,690,944)	(92.33)%	EM60	-	-	1,256,504	69.69%
AGT	The Company	Parent/Subsidiary	(Sales)	(767,791)	(28.29)%	OA60	-	-	82,234	57.80%
AGT	The Company	Parent/Subsidiary	Purchases	146,136	6.27%	OA60	-	-	(36,513)	(18.88)%
WLII	WELL	Parent/Subsidiary	(Sales)	(922,524)	(3.96)%	EM45	-	-	60,682	1.91%
WLII	AEB	Fellow subsidiary	(Sales)	(337,072)	(1.45)%	EM60	-	-	58,017	1.83%
WLII	The Company	Parent/Subsidiary	Purchases	2,209,432	9.52%	EM45	-	-	(367,140)	(11.88)%
PAM	CRI	Fellow subsidiary	(Sales)	(916,255)	(26.71)%	EM120	-	-	175,054	39.64%
WKSH	WKNJ	Fellow subsidiary	(Sales)	(255,491)	(99.66)%	EM45	-	-	207,578	93.74%
HSNC	The Company	Parent/Subsidiary	(Sales)	(125,333)	(49.67)%	OA60	-	-	25,547	56.20%
PWTW	APT	Parent/Subsidiary	(Sales)	(1,849,322)	(76.96)%	OA22	-	-	78,522	16.21%
PWTW	EPT	Parent/Subsidiary	(Sales)	(106,335)	(4.43)%	OA120	-	-	181,844	37.54%
AAC	AMEX	Fellow subsidiary	(Sales)	(1,088,290)	(1.94)%	OA60	-	-	274,127	2.68%
AAC	ATB	Fellow subsidiary	(Sales)	(239,952)	(0.43)%	OA60	-	-	112,082	1.10%
AAC	The Company	Parent/Subsidiary	Purchases	51,255,547	88.31%	OA90	-	-	(8,566,766)	(91.54)%
AAF	AEG	Fellow subsidiary	(Sales)	(104,874)	(88.30)%	OA60	-	-	10,981	85.62%
ACA	ACNZ	Fellow subsidiary	(Sales)	(102,950)	(1.84)%	OA60	-	-	8,230	0.58%
ACA	Bluechip	Fellow subsidiary	(Sales)	(110,988)	(1.98)%	EM30	-	-	38,582	2.71%
ACA	The Company	Parent/Subsidiary	Purchases	4,986,325	80.85%	OA60	-	-	(1,786,320)	(96.56)%
ACCN	ACCQ	Fellow subsidiary	(Sales)	(396,391)	(59.17)%	OA60	-	-	126,977	89.45%
ACCQ	ACCN	Fellow subsidiary	Purchases	396,391	3.94%	OA60	-	-	(126,977)	(14.10)%
ACCQ	The Company	Parent/Subsidiary	Purchases	1,857,186	18.44%	OA60	-	-	(135,084)	(15.00)%
ACF	AEG	Fellow subsidiary	Purchases	4,797,141	92.14%	OA60	-	-	(963,413)	(95.31)%
ACG	AEG	Fellow subsidiary	(Sales)	(100,117)	(0.60)%	OA60	-	-	2,072,937	24.74%
ACG	AEG	Fellow subsidiary	Purchases	15,428,187	96.60%	OA60	-	-	(3,595,101)	(97.34)%
ACG	APL	Fellow subsidiary	Purchases	116,575	0.73%	OA30	-	-	(36,642)	(0.99)%
ACG	APX	Fellow subsidiary	Purchases	157,198	0.98%	OA45	-	-	(29,634)	(0.80)%
ACH	AEG	Fellow subsidiary	Purchases	3,815,909	96.33%	OA60	-	-	(463,313)	(94.42)%
ACNZ	ACA	Fellow subsidiary	Purchases	102,950	20.14%	OA60	-	-	(8,230)	(17.00)%
ACNZ	The Company	Parent/Subsidiary	Purchases	314,355	61.51%	OA60	-	-	(37,938)	(78.36)%
ACS	The Company	Parent/Subsidiary	Purchases	2,259,335	86.12%	OA60	-	-	(475,668)	(97.49)%
ACZ	AEG	Fellow subsidiary	(Sales)	(174,572)	(41.33)%	OA60	-	-	28,603	37.65%
ACZ	APX	Fellow subsidiary	Purchases	162,190	45.59%	OA90	-	-	(28,569)	(88.58)%
AEG	ACF	Fellow subsidiary	(Sales)	(4,797,141)	(8.38)%	OA60	-	-	963,413	6.21%
AEG	ACG	Fellow subsidiary	(Sales)	(15,428,187)	(26.95)%	OA60	-	-	3,595,101	23.17%
AEG	ACH	Fellow subsidiary	(Sales)	(3,815,909)	(6.67)%	OA60	-	-	463,313	2.99%
AEG	AIB	Fellow subsidiary	(Sales)	(5,021,751)	(8.77)%	OA60	-	-	1,581,027	10.19%

~84~

Company Name	Related Party	Nature of Relationship	Transaction Details				Transactions with Terms Different from Others (Note 1)		Notes/Accounts Receivable or (Payable)
			Purchases/ (Sales)	Amount	% of Total Purchases/(Sales)	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
AEG	AIT	Fellow subsidiary	(Sales)	(3,994,965)	(6.98)%	OA60	-	-	1,028,190	6.63%
AEG	AUK	Fellow subsidiary	(Sales)	(6,340,355)	(11.08)%	OA60	-	-	1,929,703	12.44%
AEG	CPY	Fellow subsidiary	(Sales)	(1,073,899)	(1.88)%	OA60	-	-	253,923	1.64%
AEG	AAF	Fellow subsidiary	Purchases	104,874	0.18%	OA60	-	-	(10,981)	(0.14)%
AEG	ACG	Fellow subsidiary	Purchases	100,117	0.18%	OA60	-	-	(2,072,937)	(27.08)%
AEG	ACZ	Fellow subsidiary	Purchases	174,572	0.31%	OA60	-	-	(28,603)	(0.37)%
AEG	AEH	Parent/Subsidiary	Purchases	300,146	0.53%	OA60	-	-	(41,112)	(0.54)%
AEG	APX	Fellow subsidiary	Purchases	119,101	0.21%	OA60	-	-	(25,040)	(0.33)%
AEG	ENNL	Fellow subsidiary	Purchases	982,814	1.72%	OA30	-	-	(63,426)	(0.83)%
AEG	The Company	Parent/Subsidiary	Purchases	51,286,878	89.86%	OA60	-	-	(2,174,820)	(28.41)%
AEH	AEG	Parent/Subsidiary	(Sales)	(300,146)	(100.00)%	OA60	-	-	41,112	100.00%
AFE	The Company	Parent/Subsidiary	Purchases	3,208,690	82.46%	OA60	-	-	(332,426)	(100.00)%
AGMPH	AGM	Parent/Subsidiary	Purchases	557,912	81.53%	OA60	-	-	(279,895)	(99.77)%
AIB	AEG	Fellow subsidiary	Purchases	5,021,751	95.57%	OA60	-	-	(1,581,027)	(98.63)%
AIL	AIN	Fellow subsidiary	(Sales)	(158,359)	(0.73)%	OA60	-	-	-	-
AIL	ALIN	Fellow subsidiary	(Sales)	(144,428)	(0.79)%	OA120	-	-	104,453	2.55%
AIL	AMI	Fellow subsidiary	(Sales)	(141,554)	(0.65)%	OA60	-	-	-	-
AIL	The Company	Parent/Subsidiary	Purchases	7,447,637	33.21%	OA150	-	-	(4,521,109)	(59.93)%
AIN	AMI	Parent/Subsidiary	(Sales)	(426,530)	(5.97)%	OA60	-	-	53,054	34.04%
AIN	AIL	Fellow subsidiary	Purchases	158,359	2.23%	OA60	-	-	-	-
AIN	AMI	Fellow subsidiary	Purchases	2,247,331	31.59%	OA90	-	-	(58,618)	(8.88)%
AIN	The Company	Parent/Subsidiary	Purchases	4,232,287	59.49%	OA90	-	-	(596,869)	(90.39)%
AIT	AEG	Fellow subsidiary	Purchases	3,994,965	98.58%	OA60	-	-	(1,028,190)	(98.86)%
AJC	The Company	Parent/Subsidiary	Purchases	891,720	90.32%	OA60	-	-	(710,490)	(92.68)%
ALIN	AIL	Fellow subsidiary	Purchases	144,428	14.66%	OA120	-	-	(104,453)	(67.81)%
AMEX	AAC	Fellow subsidiary	Purchases	1,088,290	91.89%	OA60	-	-	(274,127)	(100.00)%
AMI	AIN	Fellow subsidiary	(Sales)	(2,247,331)	(99.67)%	OA90	-	-	58,618	100.00%
AMI	AIL	Fellow subsidiary	Purchases	141,554	6.43%	OA60	-	-	-	-
AMI	AIN	Parent/Subsidiary	Purchases	426,530	19.38%	OA60	-	-	(53,054)	(12.04)%
AMI	The Company	Parent/Subsidiary	Purchases	1,274,133	57.90%	OA90	-	-	(333,796)	(75.74)%
AOE	AOI	Parent/Subsidiary	Purchases	302,641	87.08%	OA60	-	-	(186,074)	(100.00)%
APHI	The Company	Parent/Subsidiary	(Sales)	(290,820)	(10.29)%	OA60	-	-	46,304	10.03%
APHI	The Company	Parent/Subsidiary	Purchases	1,731,455	87.11%	OA60	-	-	(881,453)	(96.07)%
APL	ACG	Fellow subsidiary	(Sales)	(116,575)	(100.00)%	OA30	-	-	36,642	98.33%
APT	PWTW	Parent/Subsidiary	Purchases	1,849,322	77.84%	OA22	-	-	(78,522)	(27.75)%

~85~

Company Name	Related Party	Nature of Relationship	Transaction Details				Transactions with Terms Different from Others (Note 1)		Notes/Accounts Receivable or (Payable)
			Purchases/ (Sales)	Amount	% of Total Purchases/(Sales)	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
APX	ACG	Fellow subsidiary	(Sales)	(157,198)	(18.72)%	OA45	-	-	29,634	18.39%
APX	ACZ	Fellow subsidiary	(Sales)	(162,190)	(19.31)%	OA90	-	-	28,569	17.73%
APX	AEG	Fellow subsidiary	(Sales)	(119,101)	(14.18)%	OA60	-	-	25,040	15.54%
ASSB	SMA	Parent/Subsidiary	(Sales)	(424,297)	(12.87)%	OA60	-	-	45,751	15.96%
ASSB	The Company	Parent/Subsidiary	Purchases	2,429,471	86.50%	OA60	-	-	(869,457)	(97.77)%
ATB	AAC	Fellow subsidiary	Purchases	239,952	2.61%	OA60	-	-	(112,082)	(2.86)%
ATH	The Company	Parent/Subsidiary	Purchases	4,360,220	89.83%	OA60	-	-	(1,007,372)	(90.35)%
AUK	AEG	Fellow subsidiary	Purchases	6,340,355	97.65%	OA60	-	-	(1,929,703)	(99.22)%
AVN	The Company	Parent/Subsidiary	(Sales)	(111,614)	(28.69)%	OA60	-	-	31,330	31.88%
AVN	The Company	Parent/Subsidiary	Purchases	165,070	62.87%	OA60	-	-	(43,438)	(82.19)%
Bluechip	ACA	Fellow subsidiary	Purchases	110,988	2.46%	EM30	-	-	(38,582)	(9.49)%
CPY	AEG	Fellow subsidiary	Purchases	1,073,899	90.10%	OA60	-	-	(253,923)	(96.75)%
CRI	PAM	Fellow subsidiary	Purchases	916,255	50.51%	EM120	-	-	(175,054)	(77.69)%
ENCZ	ENNL	Fellow subsidiary	(Sales)	(145,462)	(99.45)%	OA30	-	-	26,335	99.96%
ENDE	ENNL	Fellow subsidiary	(Sales)	(424,586)	(99.77)%	OA60	-	-	142,303	99.15%
ENES	ENNL	Fellow subsidiary	(Sales)	(284,894)	(99.08)%	OA60	-	-	68,390	96.70%
ENFR	ENNL	Fellow subsidiary	(Sales)	(386,353)	(97.56)%	OA60	-	-	110,649	99.46%
ENIT	ENNL	Fellow subsidiary	(Sales)	(305,526)	(98.20)%	OA60	-	-	64,734	99.90%
ENNL	AEG	Fellow subsidiary	(Sales)	(982,814)	(31.37)%	OA30	-	-	63,426	15.27%
ENNL	ENCZ	Fellow subsidiary	Purchases	145,462	4.91%	OA30	-	-	(26,335)	(3.69)%
ENNL	ENDE	Fellow subsidiary	Purchases	424,586	14.34%	OA60	-	-	(142,303)	(19.95)%
ENNL	ENES	Fellow subsidiary	Purchases	284,894	9.62%	OA60	-	-	(68,390)	(9.59)%
ENNL	ENFR	Fellow subsidiary	Purchases	386,353	13.05%	OA60	-	-	(110,649)	(15.51)%
ENNL	ENIT	Fellow subsidiary	Purchases	305,526	10.32%	OA60	-	-	(64,734)	(9.08)%
ENNL	ENPL	Fellow subsidiary	Purchases	800,583	27.04%	OA60	-	-	(213,934)	(29.99)%
ENPL	ENNL	Fellow subsidiary	(Sales)	(800,583)	(95.76)%	OA60	-	-	213,934	97.54%
EPT	PWTW	Parent/Subsidiary	Purchases	106,335	45.06%	OA120	-	-	(181,844)	(75.58)%
SMA	ASSB	Parent/Subsidiary	Purchases	424,297	9.87%	OA60	-	-	(45,751)	(14.29)%

Note 1: The trade terms and price of sales with related parties are not comparable to those with third-party customers as they are determined by the economic environment and market competition of specific locations.
The purchase price with related parties are not comparable to those with third-party vendors as the specifications of products are different.
Note 2: The above transactions between parent and subsidiary are eliminated when preparing the consolidated financial statements.

~87~

Acer Incorporated

Receivables from related parties which exceed NTS100 million or 20% of the paid-in capital

December 31, 2025

Table 5
(Amounts in Thousands of New Taiwan Dollars)

Company Name	Related Party	Nature of Relationship	Ending Balance	Turnover Rate	Overdue		Amount Received in Subsequent Period	Loss Allowance	Note
					Amount	Action Taken
The Company	AAC	Parent/Subsidiary	8,566,766	9.76	13,203	Under Collection	5,814,678	-
The Company	ACA	Parent/Subsidiary	1,787,339	3.65	1,126,452	Under Collection	668,852	-
The Company	ACCQ	Parent/Subsidiary	135,084	27.50	-		77,477	-
The Company	ACS	Parent/Subsidiary	475,668	6.61	3,312	Under Collection	233,395	-
The Company	AEG	Parent/Subsidiary	2,174,820	26.39	-		2,174,820	-
The Company	AFE	Parent/Subsidiary	566,115	8.15	-		334,269	-
The Company	AIL	Parent/Subsidiary	4,521,109	1.65	462,340	Under Collection	39,188	-
The Company	AIN	Parent/Subsidiary	598,325	6.41	-		145,724	-
The Company	AJC	Parent/Subsidiary	723,343	1.07	483,772	Under Collection	43,293	-
The Company	AMI	Parent/Subsidiary	333,796	3.71	53,952	Under Collection	47,067	-
The Company	APHI	Parent/Subsidiary	881,453	2.10	500,942	Under Collection	290,371	-
The Company	ASSB	Parent/Subsidiary	869,457	2.65	286,299	Under Collection	412,926	-
The Company	ATH	Parent/Subsidiary	1,007,372	5.60	314,524	Under Collection	756,450	-
The Company	ITS	Parent/Subsidiary	421,606	4.55	15	Under Collection	230	-
The Company	WLII	Parent/Subsidiary	367,883	5.85	-		363,557	-
ALT	The Company	Parent/Subsidiary	100,033	6.68	170,185	Under Collection	-	-
ABH	The Company	Parent/Subsidiary	100,400	-	-		-	-	(Note 2)
AGM	AGMPH	Parent/Subsidiary	279,895	2.20	111,929	Under Collection	183,977	-
AOI	AOA	Parent/Subsidiary	273,211	0.30	257,764	Under Collection	8,685	-
AOI	AOE	Parent/Subsidiary	186,074	1.99	132,313	Under Collection	51,433	-
AOI	The Company	Parent/Subsidiary	1,256,504	6.73	-		1,253,362	-
POSI	PBM	Parent/Subsidiary	232,055	1.31	128,844	Under Collection	16,751	-
POSI	PTIL	Parent/Subsidiary	118,415	1.37	68,702	Under Collection	25,968	-
PAM	CRI	Fellow subsidiary	175,054	2.70	43,781	Under Collection	-	-
PWTW	EPT	Parent/Subsidiary	181,844	1.16	97,045	Under Collection	3,658	-
ADSC	Bluechip	Fellow subsidiary	117,944	-	-		-	-	(Note 2)
ADSC	The Company	Parent/Subsidiary	150,818	-	-		-	-	(Note 2)

Company Name	Related Party	Nature of Relationship	Ending Balance	Turnover Rate	Overdue		Amount Received in Subsequent Period	Loss Allowance	Note
					Amount	Action Taken
CCI	The Company	Parent/Subsidiary	556,063	-	-	-	-	-	(Note 2)
WKSH	WKNJ	Fellow subsidiary	207,578	1.48	93,429	Under Collection	68,766	-
AAC	AMEX	Fellow subsidiary	274,127	1.66	274,127	Under Collection	243,671	-
AAC	ASC	Fellow subsidiary	498,601	13.04	-	-	-	-
AAC	ATB	Fellow subsidiary	112,082	1.73	23,372	Under Collection	23,265	-
AAH	AAC	Parent/Subsidiary	5,228,727	-	-	-	-	-	(Note 2)
ACCN	ACCQ	Fellow subsidiary	1,123,985	3.36	-	-	-	-
ACF	AEG	Fellow subsidiary	607,384	0.04	2,517	Under Collection	2,517	-
ACG	AEG	Fellow subsidiary	2,072,937	0.05	11,879	Under Collection	14,256	-
ACG	ENDE	Fellow subsidiary	135,686	0.46	11,237	Under Collection	4,092	-
ACH	AEG	Fellow subsidiary	356,754	0.05	-	-	-	-
AEG	ACF	Fellow subsidiary	963,413	6.35	-	-	-	-
AEG	ACG	Fellow subsidiary	3,595,101	5.80	546,599	Under Collection	521,542	-
AEG	ACH	Fellow subsidiary	463,313	14.81	-	-	-	-
AEG	AIB	Fellow subsidiary	1,581,027	3.35	301,027	Under Collection	301,027	-
AEG	AIT	Fellow subsidiary	1,028,190	4.38	-	-	-	-
AEG	AUK	Fellow subsidiary	1,929,703	3.39	768,279	Under Collection	755,624	-
AEG	CPY	Fellow subsidiary	253,923	3.78	205,171	Under Collection	158,996	-
AHN	ENNL	Parent/Subsidiary	236,436	-	-	-	-	-	(Note 2)
AIB	AEG	Fellow subsidiary	691,057	0.09	-	-	-	-
AIL	ALIN	Fellow subsidiary	105,638	0.82	-	-	-	-
AIT	AEG	Fellow subsidiary	769,239	0.02	-	-	-	-
AIZS	ACCQ	Fellow subsidiary	186,167	-	1,843	Under Collection	-	-	(Note 2)
ASC	AAC	Fellow subsidiary	187,619	6.11	57	Under Collection	57	-
AUK	AEG	Fellow subsidiary	667,235	0.07	-	-	-	-
ENDE	ENNL	Fellow subsidiary	142,303	3.70	-	-	-	-
ENFR	ENNL	Fellow subsidiary	110,649	3.61	-	-	-	-
ENPL	ENNL	Fellow subsidiary	213,934	4.52	-	-	-	-
GWI	AAC	Parent/Subsidiary	502,656	-	-	-	-	-	(Note 2)

Note 1: The above transactions between parent and subsidiary are eliminated when preparing the consolidated financial statements.
Note 2: Receivables are financing and interest receivables, not applicable.

Accr Incorporated

Names, Locations, and Related Information of Investees over which The Company Exercises Significant Influence

December 31, 2025

Table 6
(Amounts in Thousands of New Taiwan Dollars/Shares)

Investor	Investor	Location	Main Businesses and Products	Original Investment Amount		Balances as of December 31, 2025			Maximum ownership during 2025		Net Income (Loss) of the Investor	Share of profit/losses of Investor	Note
				December 31, 2025	December 31, 2024	Shares (in thousands)	Percentage of Ownership	Carrying Value	Shares (in thousands)	Percentage of Ownership
The Company	ADSC	Taiwan	Investment and holding activity	1,143,750	1,143,750	66,215	100.00	2,664,635	66,215	100.00	88,605	88,605	Parent/Subsidiary
The Company	Boardwalk	British Virgin Islands	Investment and holding activity	41,496,383	41,496,383	1,263,432	92.02	28,770,870	1,263,432	92.02	(346,355)	(318,699)	Parent/Subsidiary
The Company	AEH	Switzerland	Management services and and investment and holding activity	2,464,262	2,464,262	147	100.00	20,054,695	147	100.00	(1,236,401)	(1,236,401)	Parent/Subsidiary
The Company	AEI	British Virgin Islands	Investment and holding activity	4,807,024	6,230,208	150,155	100.00	14,448,510	191,155	100.00	(266,114)	(266,114)	Parent/Subsidiary
The Company	Bhuchip	Australia	Agency and distribution of IT hardware and software equipment and other products	45,136	45,136	1,421	19.10	88,688	1,421	20.48	32,732	5,876	Parent/Subsidiary
The Company	CCI	Taiwan	Investment and holding activity	6,957,028	6,957,028	850	100.00	3,410,563	850	100.00	17,663	17,663	Parent/Subsidiary
The Company	ACSI	Taiwan	Cyber security service	1,815,829	1,815,829	15,562	51.87	1,628,012	15,562	51.87	306,685	159,024	Parent/Subsidiary
The Company	WLI	Taiwan	Distribution and sale of consumer electronics and information technology products	820,421	728,694	49,507	54.06	1,533,033	49,551	58.93	346,112	201,732	Parent/Subsidiary
The Company	AGT	Taiwan	Research, development, and sale of 3C peripherals and accessories, smart mobility solutions, and related products	6,968,300	6,968,300	39,308	63.54	2,287,131	39,308	63.54	117,426	67,305	Parent/Subsidiary
The Company	ABH	Taiwan	Investment and holding activity	2,128,004	2,128,004	160,320	100.00	2,382,042	160,320	100.00	321,029	321,029	Parent/Subsidiary
The Company	ASBZ	Taiwan	Currently not in operation	396,299	402,702	20	100.00	6,352	660	100.00	218	218	Parent/Subsidiary
The Company	AOS	Taiwan	Research and development, marketing, and sale of commercial IT hardware and software equipment (such as digital signage and kiosks); and after-sale service for Aspen brand-name products	693,833	693,160	34,282	43.70	733,791	34,282	43.70	314,865	138,608	Parent/Subsidiary
The Company	HSSC	Taiwan	After-sales and value-added services of IT products	101,419	102,419	10,142	55.15	183,387	10,242	63.18	33,411	20,910	Parent/Subsidiary
The Company	AST	Taiwan	System integration service	404,558	404,558	12,640	56.94	547,748	12,640	56.94	115,537	65,783	Parent/Subsidiary
The Company	API	Taiwan	Development and sale of intelligent air solution and smart home appliances	171,957	171,957	14,233	56.93	210,089	14,233	56.93	67,921	38,669	Parent/Subsidiary
The Company	AGM	Taiwan	Agency and sale of video game console and peripherals	893,639	893,639	24,449	69.85	810,453	24,449	69.85	50,533	35,300	Parent/Subsidiary
The Company	AAM	Taiwan	Real estate leasing and management	1,077,189	1,077,189	107,719	100.00	1,051,998	107,719	100.00	(8,325)	(8,325)	Parent/Subsidiary
The Company	ALT	Taiwan	Product development and sale of high-performance computing products and solutions (including AI computing and cloud computing solutions) and Alisa IPP interactive displays	32,760	-	1,800	9.00	29,745	1,800	9.00	20,239	644	Parent/Subsidiary
The Company	ITS	Taiwan	Programs and services of intelligent transportation, electronic ticketing and multiple	122,927	-	15,521	80.00	131,044	15,521	80.00	(37,302)	7,911	Parent/Subsidiary
The Company	ASSB	Malaysia	Marketing and sale of brand-name IT products	1,193,559	1,193,559	30,969	100.00	1,574,244	30,969	100.00	42,847	42,847	Parent/Subsidiary
The Company	ACS	Singapore	Marketing and sale of brand-name IT products	171,997	171,997	3,985	100.00	226,074	3,985	100.00	(1,773)	(1,773)	Parent/Subsidiary
The Company	CHC	Taiwan	Energy storage-related business	50,000	50,000	5,000	21.28	50,730	5,000	21.28	12,534	2,667	Associate
The Company	HBC	Taiwan	Energy storage-related business	1,680,000	1,680,000	168,000	60.00	1,676,786	168,000	60.00	(2,634)	(1,581)	Joint Venture
The Company	HVE	Taiwan	Energy storage-related business	560,000	210,000	56,000	70.00	560,979	56,000	70.00	1,519	1,064	Parent/Subsidiary
The Company	ERI	Taiwan	Investment and holding activity	1,828,268	1,176,911	3,900	100.00	2,676,158	3,900	100.00	1,207,601	962,097	Parent/Subsidiary(The Company had controls over ERI from April 30,2025.)
The Company	ECT	Taiwan	Investment and holding activity	2,791,564	-	13,535	50.00	2,649,899	13,535	50.00	34,412	(30,277)	Parent/Subsidiary
The Company	POSI Common Share	Taiwan	Research, development, manufacturing, and sale of Posiflex brand-name products, other industrial consumers, and peripheral equipment	9,797	-	56	0.07	9,797	56	0.07	1,908,960	-	Parent/Subsidiary
The Company	AMT	Taiwan	Sale of memory module	412,474	411,827	11,946	9.32	680,239	11,946	9.32	859,875	71,508	Associates
The Company	CCP	Taiwan	Rental housing subleasing and management services	337,500	337,500	6,750	20.03	352,758	6,750	20.03	140,169	28,074	Associate
The Company	Hawkung	Taiwan	Energy storage-related business	546,000	303,383	54,600	35.00	546,579	54,600	35.00	1,938	678	Joint Venture
The Company	Hawkung No.3	Taiwan	Energy storage-related business	295,072	295,072	29,507	25.00	295,807	29,507	25.00	2,897	724	Associate
The Company	SGE	Taiwan	Energy storage-related business	217,224	217,224	12,068	22.84	218,797	12,068	22.84	59,316	10,235	Associate
The Company	Channing Electric	Taiwan	Energy storage-related business	335,580	335,580	33,558	25.00	336,607	33,558	25.00	4,026	1,007	Associate
The Company	Yun Yang	Taiwan	Solar energy-related businesses	712,500	-	71,250	25.00	698,320	71,250	25.00	(56,721)	(14,180)	Associate
The Company	GreenHarvest	Taiwan	Comprehensive solar power system installation and service provider	406,859	49,995	8,292	32.06	391,845	8,292	32.06	39,043	7,002	Associate
HSSC	HSNT	Thailand	After-sale and value-added services of IT products	2,345	2,345	24	100.00	39,013	24	100.00	13,443	Note 1	Parent/Subsidiary
HSSC	HSNI	Indonesia	After-sale and value-added services of IT products	30,501	30,501	990	99.00	58,828	990	99.00	10,194	Note 1	Parent/Subsidiary
HSSC	HSN	Malaysia	After-sale and value-added services of IT products	87,268	87,268	1,000	100.00	172,397	1,000	100.00	24,774	Note 1	Parent/Subsidiary
HSSC	HSNP	Philippines	After-sale and value-added services of IT products	6,357	6,357	106	100.00	49,827	106	100.00	14,427	Note 1	Parent/Subsidiary
HSSC	HSNV	Vietnam	After-sale and value-added services of IT products	4,192	4,192	-	100.00	19,286	-	100.00	7,438	Note 1	Parent/Subsidiary
HSN	Misfix	Malaysia	After-sale and value-added services of IT products	28,691	28,691	80	20.00	32,884	80	20.00	11,201	Note 1	Associate

Investor	Investor	Location	Main Businesses and Products	Original Investment Amount		Balances as of December 31, 2025			Maximum ownership during 2025		Net Income: (Loss) of the Investor	Share of profits/house of investee	Note
				December 31, 2025	December 31, 2024	Shares (in thousands)	Percentage of Ownership	Carrying Value	Shares (in thousands)	Percentage of Ownership
AST	ASM	Taiwan	Human resources solutions	66,005	66,005	6,063	60.63	86,625	4,063	60.63	13,135	Note 1	Parent/Subsidiary
AST	ASTA	U.S.A.	System integration service	14,000	14,000	1	100.00	34,013	1	100.00	1,757	Note 1	Parent/Subsidiary
AST	SPE	Taiwan	Factory plant engineering planning and construction	95,137	99,700	3,315	27.88	200,124	3,474	29.21	31,139	Note 1	Associate
AST	TET	Taiwan	Air conditioning system engineering	158,652	-	2,628	20.00	158,987	2,628	20.00	8,821	Note 1	Associate
ASM	ASMA	U.S.A.	Human resources solutions	15,759	15,759	100	100.00	23,191	100	100.00	2,876	Note 1	Parent/Subsidiary
ASM	ASMI	Japan	Human resources solutions	6,333	6,333	3	100.00	5,476	3	100.00	(516)	Note 1	Parent/Subsidiary
ADSC	ECS	Taiwan	Delivering services in integration, optimization and security for digital transformation	40,851	40,851	1,244	24.88	30,098	1,244	24.88	30,907	Note 1	Associate
ADSC	KBest	Taiwan	Development and manufacturing of radiofrequency and microwave equipment	130,720	130,720	4,713	29.84	74,888	4,713	29.84	66,874	Note 1	Associate
ADSC	ENP	Taiwan	Currently not in operation	25,026	19,000	2,430	100.00	788	2,430	100.00	(13,484)	Note 1	Parent/Subsidiary
ADSC	AST	Taiwan	System integration service	10,125	13,056	190	0.86	8,235	245	1.10	115,537	Note 1	Fellow subsidiaries
ADSC	ACSI	Taiwan	Cyber security service	237,430	238,720	1,288	4.29	134,744	1,295	4.30	306,685	Note 1	Fellow subsidiaries
ADSC	AGM	Taiwan	Agency and sale of video game console and peripherals	4,582	4,582	63	0.18	2,081	63	0.18	50,533	Note 1	Fellow subsidiaries
CCI	ATB	Brazil	Marketing and sale of brand-name IT products	304,540	304,540	2	0.00	-	2	0.00	(306,637)	Note 1	Fellow subsidiaries
CCI	ALIN	India	Product development and sale of high-performance computing products and solutions (including AI computing and cloud computing solutions) and Aliso IPP interactive displays	161,621	161,621	163	1.00	553	163	1.00	10,341	Note 1	Fellow subsidiaries
CCI	ECS	Taiwan	Delivering services in integration, optimization and security for digital transformation	-	-	452	9.05	-	452	9.05	30,907	Note 1	Associate
CCI	AIN	Indonesia	Marketing and sale of brand-name IT products	3,484	3,484	1	0.00	3	1	0.00	116,664	Note 1	Fellow subsidiaries
CCI	WKS	Cayman Islands	Investment and holding activity	148,784	148,784	29,809	6.77	140,028	29,809	6.77	5,907	Note 1	Fellow subsidiaries
CCI	DZII	Cayman Islands	Investment and holding activity	845,523	845,523	100	100.00	582	100	100.00	(157)	Note 1	Parent/Subsidiary
CCI	Bhasekip	Australia	Agency and distribution of IT hardware and software equipment and other products	17,767	17,767	260	3.50	16,240	260	3.75	32,732	Note 1	Fellow subsidiaries
WLII	Bhasekip	Australia	Agency and distribution of IT hardware and software equipment and other products	106,361	77,411	1,756	23.60	118,293	1,756	23.60	32,732	Note 1	Fellow subsidiaries
WLII	WELL	Taiwan	Retail of household appliances and 3C products	10,000	10,000	1,000	100.00	44,192	1,000	100.00	28,247	Note 1	Parent/Subsidiary
WLII	PBT	Taiwan	Healthcare product distribution and biotechnology services	730	730	75	75.00	745	75	75.00	(11)	Note 1	Parent/Subsidiary
WLII	HPT	Taiwan	Software retail and services	26,820	26,820	882	30.22	18,505	882	30.22	12,019	Note 1	Associate
WLII	ANT	Taiwan	Agency service, sales, and OEM of components of heavy machinery, automobiles, and motorcycles	203,052	203,052	6,000	20.00	316,434	6,000	20.00	122,430	Note 1	Associate
WLII	PAM	Taiwan	Trading of rubber and various rubber products	602,150	602,150	13,759	59.91	521,640	13,759	59.91	(22,447)	Note 1	Parent/Subsidiary
PAM	PAL	British Virgin Islands	Trading of rubber and various rubber products	36,979	36,979	70	100.00	59,458	70	100.00	8,243	Note 1	Parent/Subsidiary
PAM	DCL	Samoa	Investment and holding activity	135,924	135,924	650	100.00	48,396	650	100.00	(23,142)	Note 1	Parent/Subsidiary
PAM	CRI	U.S.A.	Trading of rubber and various rubber products	99,078	99,078	2,000	100.00	174,318	2,000	100.00	(13,223)	Note 1	Parent/Subsidiary
PAM	PRV	Vietnam	Trading of rubber and various rubber products	14,940	14,940	-	100.00	11,142	-	100.00	(1,322)	Note 1	Parent/Subsidiary
AEH	Boardwalk	British Virgin Islands	Investment and holding activity	3,333,032	3,333,032	109,639	7.98	2,500,609	109,639	7.98	(346,355)	Note 1	Fellow subsidiaries
Bhasekip	BLI	Taiwan	Agency and distribution of IT hardware and software equipment and other products	8,150	8,150	815	100.00	3,993	815	100.00	(252)	Note 1	Parent/Subsidiary
Bhasekip	ONA	Australia	Agency for hair, makeup, and skincare brands	2	2	1	100.00	(2,365)	1	100.00	(311)	Note 1	Parent/Subsidiary
Bhasekip	BLNZ	New Zealand	Investment and holding activity	69,343	69,343	3,600	100.00	53,980	3,600	100.00	5,672	Note 1	Parent/Subsidiary
Bhasekip	DTP	Australia	Investment and holding activity	110,110	110,110	1	100.00	2	1	100.00	-	Note 1	Parent/Subsidiary
Bhasekip	GIS	Australia	Commercial and industrial computer system integration service provider	70,252	-	2	70.02	70,855	2	70.02	(706)	Note 1	Parent/Subsidiary
AGT	AGA	U.S.A.	Sale of 3C peripherals and accessories	15,786	15,786	500	100.00	19,512	500	100.00	3,024	Note 1	Parent/Subsidiary
AGT	AFS	Taiwan	Design and sale of fashion and lifestyle products	42,882	-	4,292	100.00	61,797	4,292	100.00	17,704	Note 1	Parent/Subsidiary
ABH	HPS	Taiwan	Research, development, and sale of smart mobility solutions	148,348	179,111	2,800	100.00	10,874	9,750	100.00	(19,615)	Note 1	Parent/Subsidiary
ABH	AIC	Taiwan	Providing cloud technology and solutions	77,676	77,676	2,900	100.00	28,841	2,900	100.00	6,171	Note 1	Parent/Subsidiary
ABH	ABC	Taiwan	Providing smart IoT solutions	18,500	18,500	1,225	49.00	(9,103)	1,225	49.00	1,631	Note 1	Parent/Subsidiary
ABH	ACSI	Taiwan	Cyber security service	239,000	240,000	1,195	3.98	125,015	1,200	4.00	306,685	Note 1	Fellow subsidiaries
ABH	WLII	Taiwan	Distribution and sale of consumer electronics and information technology products	40,749	-	867	0.95	26,534	867	0.95	346,112	Note 1	Fellow subsidiaries
ABH	AMED	Taiwan	Research, development, and sale of intelligent healthcare solutions and related hardware and software equipment	267,834	267,834	10,279	67.51	111,340	10,279	67.51	(29,685)	Note 1	Parent/Subsidiary
ABH	ITS	Taiwan	Programs and services of intelligent transportation, electronic ticketing and multiple payment	124,277	621,384	3,880	20.00	32,761	25,550	100.00	(37,302)	Note 1	Parent/Subsidiary
ABH	ALT	Taiwan	Product development and sale of high-performance computing products and solutions (including AI computing and cloud computing solutions) and Aliso IPP interactive displays	156,665	78,613	10,447	52.23	172,632	12,848	78.59	20,239	Note 1	Parent/Subsidiary
ABH	AEB	Taiwan	AI application service provider, offering comprehensive solutions for cloud and digital applications	268,232	274,568	25,697	62.00	1,461,302	26,304	63.46	595,134	Note 1	Parent/Subsidiary
ABH	ACTTW	Taiwan	Investment and holding activity	955,056	955,056	2,900	100.00	(166,430)	2,900	100.00	(15,844)	Note 1	Parent/Subsidiary

Investor	Investor	Location	Main Businesses and Products	Original Investment Amount		Balances as of December 31, 2025			Maximum ownership during 2025		Net Income (Lmn) of the Investor	Share of profits/lower of investee	Note
				December 31, 2025	December 31, 2024	Shares (in thousands)	Percentage of Ownership	Carrying Value	Shares (in thousands)	Percentage of Ownership
ALT	QSAN	Taiwan	Data storage equipment	161,877	78,270	1,205	12.62	182,589	1,205	18.16	57,046	Note 1	Associate
ALT	ALTH	Thailand	Product development and sale of high-performance computing products and solutions (including AI computing and cloud computing solutions) and Alton IPP interactive displays	514	514	25	49.00	8,915	25	49.00	1,536	Note 1	Parent/Subsidiary
ALT	ALIN	India	Product development and sale of high-performance computing products and solutions (including AI computing and cloud computing solutions) and Alton IPP interactive displays	38,857	38,857	27,688	99.42	94,152	27,688	99.42	10,281	Note 1	Parent/Subsidiary
ASSB	SMA	Malaysia	Agency and distribution of IT hardware and software equipment and other products	32,739	32,739	4,748	100.00	944,738	4,748	100.00	28,504	Note 1	Parent/Subsidiary
ACTTW	ABC	Taiwan	Providing smart IoT solutions	76,371	76,371	1,275	51.00	(9,475)	1,275	51.00	1,631	Note 1	Parent/Subsidiary
ACTTW	ABST	Taiwan	Investment and holding activity	300,000	300,000	2,500	100.00	(168,961)	2,500	100.00	(16,683)	Note 1	Parent/Subsidiary
ABST	ABSG	Germany	Research and development, sale, technical support, and after-sale service for altering cloud digital content solutions	325,630	325,630	6,029	100.00	(65,568)	6,029	100.00	(14,645)	Note 1	Parent/Subsidiary
AEB	DIS	Taiwan	Wholesale of computer software packages	14,205	10,125	1,366	19.16	13,432	1,366	20.00	(674)	Note 1	Associate
AEB	EBVN	Vietnam	AI application service provider, offering comprehensive solutions for cloud and digital applications	45,710	16,285	-	100.00	49,034	-	100.00	2,852	Note 1	Parent/Subsidiary
ITS	TOB	Taiwan	Professional parking lot management services and intelligent parking equipment	97,661	97,661	1,999	15.59	100,289	1,999	16.13	3,910	Note 1	Associate
AMED	ABC	Taiwan	Sale of health supplements	2,500	2,500	1,000	100.00	3,496	1,000	100.00	(1,607)	Note 1	Parent/Subsidiary
AGM	AGMPH	Philippines	Agency and sale of video game console and peripherals	8,340	8,340	154	100.00	40,426	154	100.00	3,325	Note 1	Parent/Subsidiary
AGM	DZL	Hong Kong	Agency and sale of video game console and peripherals	20,402	2,474	69	100.00	43,879	69	100.00	20,820	Note 1	Parent/Subsidiary
AGM	ATBD	Singapore	Agency and sale of video game console and peripherals	5,506	-	275	100.00	19,759	275	100.00	13,350	Note 1	Parent/Subsidiary
AGM	WKS	Cayman Islands	Investment and holding activity	1,362,423	1,362,423	252,738	57.19	1,338,398	252,738	57.39	5,907	Note 1	Parent/Subsidiary
API	APDI	Taiwan	Solar optomics business	37,446	37,446	2,957	100.00	43,285	2,957	100.00	5,655	Note 1	Parent/Subsidiary
API	ASDI	Taiwan	Hotel operations and real estate asset management	73,758	73,758	5,000	100.00	124,664	5,000	100.00	58,443	Note 1	Parent/Subsidiary
API	APIN	India	Intelligent air quality solutions and smart home appliances	90,185	90,185	234,257	99.98	71,691	234,257	99.98	(7,871)	Note 1	Parent/Subsidiary
ASDI	APIN	India	Intelligent air quality solutions and smart home appliances	20	20	50	0.02	20	50	0.02	(7,871)	Note 1	Follow subsidiaries
ACSI	ACAD	Taiwan	Cyber security training	10,000	10,000	1,000	100.00	8,666	1,000	100.00	5,369	Note 1	Parent/Subsidiary
ACSI	EDC	Taiwan	Operation of internet data center and IT operation outsourcing services	1,175,748	1,175,748	114,462	100.00	1,391,717	114,462	100.00	206,181	Note 1	Parent/Subsidiary
AOI	Bhaselep	Australia	Agency and distribution of IT hardware and software equipment and other products	36,915	36,915	570	7.66	22,564	570	8.22	32,732	Note 1	Follow subsidiaries
AOI	AOA	U.S.A.	Marketing and sale of commercial IT hardware and software equipment (such as digital signage and kiosks); and after-sale service for/open brand-name products	295,771	295,771	15,000	100.00	(246,358)	15,000	100.00	(4,251)	Note 1	Parent/Subsidiary
AOI	AOE	Netherlands	Marketing and sale of commercial IT hardware and software equipment (such as digital signage and kiosks); and after-sale service for/open brand-name products	214,094	214,094	1	100.00	(39,360)	1	100.00	2,602	Note 1	Parent/Subsidiary
AOI	AOTH	British Virgin Islands	Investment and holding activity	1,623	1,623	50	100.00	342,085	50	100.00	8,214	Note 1	Parent/Subsidiary
AOI	AOJ	Japan	Marketing and sale of commercial IT hardware and software equipment (such as digital signage and kiosks); and after-sale service for/open brand-name products	2,899	2,899	1	100.00	13,424	1	100.00	(9,038)	Note 1	Parent/Subsidiary
AOI	AOSV	Taiwan	Marketing and sale of commercial IT hardware and software equipment (such as digital signage and kiosks); and after-sale service for/open brand-name products	15,000	15,000	1,500	100.00	13,691	1,500	100.00	436	Note 1	Parent/Subsidiary
AOI	AOGIS	Australia	Investment and holding activity	2,956	2,956	150	100.00	(52,722)	150	100.00	(18,882)	Note 1	Parent/Subsidiary
AOI	AMTC	Taiwan	Sale and manufacture of touch screens, touch screens controllers, and drives	363,284	363,284	6,399	15.27	333,056	6,399	15.27	99,408	Note 1	Associate
AOGIS	AOAU	Australia	Marketing and sale of commercial IT hardware and software equipment (such as digital signage and kiosks); and after-sale service for/open brand-name products	3	3	1	100.00	(54,864)	1	100.00	(18,830)	Note 1	Parent/Subsidiary
AOI	AMDA	Japan	Design and sale of lifestyle products	18,639	18,639	38	90.00	3,498	38	90.00	(7,643)	Note 1	Parent/Subsidiary
AMDA	BCC	Japan	Catering, catering management, and related consulting	2,071	2,071	1	100.00	(5,740)	1	100.00	(254)	Note 1	Parent/Subsidiary
AMDA	GV Corp.	Japan	Design and sale of lifestyle products	207	207	1	50.00	75	1	50.00	(25)	Note 1	Associate
AMDA	amadana Creative Institute	Japan	Design and sale of lifestyle products	1,864	1,864	1	30.00	179	1	30.00	(216)	Note 1	Associate
ERI	ECT	Taiwan	Investment and holding activity	1,351,206	-	13,535	50.00	2,649,899	13,535	50.00	34,412	Note 1	Parent/Subsidiary
ERI	POSI Common Share	Taiwan	Research, development, manufacturing, and sale of Posiflex brand-name products, other industrial computers, and peripheral equipment	1,348	-	10	0.01	2,890	10	0.01	1,988,960	Note 1	Parent/Subsidiary
ECT	POSI Preferred Share	Taiwan	Research, development, manufacturing, and sale of Posiflex brand-name products, other industrial computers, and peripheral equipment	4,595,089	-	31,153	100.00	6,935,549	31,153	100.00	1,988,960	Note 1	Parent/Subsidiary(The percentage of ownership is the percentage of ownership of preferred stock.)
POSI	PWTW	Taiwan	Research and development, manufacture, and sale of industrial computers and peripheral equipment, and related software services	2,534,078	-	54,071	55.00	5,118,711	54,071	55.00	3,524,039	Note 1	Parent/Subsidiary
POSI	PBM	U.S.A.	Import and export of Posiflex brand-name products	3,413,718	-	417,034	100.00	2,313,488	417,034	100.00	(159,419)	Note 1	Parent/Subsidiary
POSI	PIC	Seychelles	Import and export of Posiflex brand-name products	107,055	-	-	100.00	48,989	-	100.00	(11,633)	Note 1	Parent/Subsidiary
POSI	PNTW	Taiwan	Manufacture and sale of computers and peripheral equipment	36,910	-	3,691	61.52	26,875	3,691	61.52	(10,536)	Note 1	Parent/Subsidiary
POSI	KMTW	Taiwan	Import and export and software services	15,000	-	1,500	100.00	10,549	1,500	100.00	138	Note 1	Parent/Subsidiary
POSI	PBMM	Malaysia	Import and export of Posiflex brand-name products	7,795	-	801	83.46	13,877	801	83.46	1,207	Note 1	Parent/Subsidiary
POSI	PTSC	Argentina	Import and export of Posiflex brand-name products	15,151	-	-	100.00	(26)	-	100.00	-	Note 1	Parent/Subsidiary
POSI	ONKTW	Taiwan	Software services	3,196	-	320	99.90	82	320	99.90	-	Note 1	Parent/Subsidiary

Investor	Investor	Location	Main Businesses and Products	Original Investment Amount		Balances as of December 31, 2025			Maximum ownership during 2025		Net Income: (Loss) of the Investor	Share of profits/bases of investee	Note
				December 31, 2025	December 31, 2024	Shares (in thousands)	Percentage of Ownership	Carrying Value	Shares (in thousands)	Percentage of Ownership
POSI	PG	Germany	Import and export of Posiflex brand-name products	67,989	-	-	100.00	22,548	-	100.00	(7,011)	Note 1	Parent/Subsidiary
POSI	PTIL	India	Import and export of Posiflex brand-name products	8,441	-	51	51.00	28,398	51	51.00	(5,729)	Note 1	Parent/Subsidiary
POSI	PTPL	Singapore	Import and export of Posiflex brand-name products	11,612	-	500	100.00	1,315	500	100.00	(2,100)	Note 1	Parent/Subsidiary
POSI	PI	Japan	Import and export of Posiflex brand-name products	43,162	-	2	100.00	(5,297)	2	100.00	306	Note 1	Parent/Subsidiary
POSI	LiPOS	Hong Kong	Import and export	52,403	-	18	35.00	51,677	18	35.00	(5,675)	Note 1	Associate
POSI	KISTW	Taiwan	Software services	29,000	-	2,900	100.00	22,657	2,900	100.00	6,577	Note 1	Parent/Subsidiary
ONKTW	ONKWS	Samoa	Investment and holding activity	5,027	-	-	100.00	(95)	-	100.00	-	Note 1	Parent/Subsidiary
PBM	KIA	U.S.A.	Investment and holding activity	3,295,755	-	1,012	82.00	1,768,556	1,012	82.00	(30,538)	Note 1	Parent/Subsidiary
PBM	PBMLC	U.S.A.	Investment and holding activity	626,840	-	-	100.00	629,183	-	100.00	(73)	Note 1	Parent/Subsidiary
PTIL	MTIN	India	Import and export of Posiflex brand-name products	48	-	10	82.00	9,109	10	82.00	924	Note 1	Parent/Subsidiary
PTIL	QSIN	India	Import and export of Posiflex brand-name products	931	-	70	70.00	(9,747)	70	70.00	68	Note 1	Parent/Subsidiary
QSIN	QULO	India	Travel E-commerce platform service provider	474	-	13	25.00	(27)	13	25.00	916	Note 1	Associate
PWTW	APT	U.S.A.	Research and development, manufacture, and sale of industrial computers and peripheral equipment, and related software services	909,329	-	42,778	100.00	4,409,326	42,778	100.00	888,888	Note 1	Parent/Subsidiary
PWTW	PII	Japan	Manufacture and sale of industrial computers and peripheral equipment, and related software services	31,383	-	2	99.00	163,074	2	99.00	12,125	Note 1	Parent/Subsidiary
PWTW	DEVWS	Samoa	Investment and holding activity	91,840	-	2,800	100.00	41,826	2,800	100.00	(3,372)	Note 1	Parent/Subsidiary
PWTW	EPT	Netherlands	Sale of industrial computers and peripheral equipment, and related software services	208,574	-	45	100.00	40,566	45	100.00	(97,190)	Note 1	Parent/Subsidiary
PWTW	PIT	India	Manufacture and sale of industrial computers and peripheral equipment	14,470	-	2,878	51.00	7,195	2,878	51.00	5,567	Note 1	Parent/Subsidiary
PWTW	PKI	South Korea	Sale of industrial computers and peripheral equipment, and related software services	36,457	-	278	100.00	(3,099)	278	100.00	(271)	Note 1	Parent/Subsidiary
PWTW	GANSTW	Taiwan	Sale of industrial computers and peripheral equipment, and related software services	16,000	-	2,800	100.00	61,213	2,800	100.00	(849)	Note 1	Parent/Subsidiary
PWTW	MITWELL	Taiwan	Sale of industrial computers and peripheral equipment, and related software services	64,047	-	6,098	18.86	162,813	6,098	18.86	(70,013)	Note 1	Associate
PWTW	HWKY	Cayman Islands	Investment and holding activity	233,441	-	120,000	100.00	337,003	120,000	100.00	(3,831)	Note 1	Parent/Subsidiary
PWTW	WCC	Taiwan	Manufacture and sale of computers and peripheral equipment	299,239	-	10,764	41.00	299,239	10,764	41.00	5,931	Note 1	Parent/Subsidiary
APT	KIA	U.S.A.	Investment and holding activity	525,215	-	222	18.00	511,036	222	18.00	(30,538)	Note 1	Parent/Subsidiary
DEVWS	HOLWS	Samoa	Investment and holding activity	91,840	-	2,800	100.00	42,497	2,800	100.00	(3,372)	Note 1	Parent/Subsidiary
EPT	KES	Germany	Manufacture and sale of self-service equipment and software	59,953	-	-	100.00	94,822	-	100.00	2,790	Note 1	Parent/Subsidiary
EPT	PCK	U.K.	Sale of industrial computers and peripheral equipment	1,583	-	200	100.00	15,168	200	100.00	489	Note 1	Parent/Subsidiary
EPT	KESI	Italy	Sale of industrial computers and peripheral equipment	1,586	-	50	100.00	4,693	50	100.00	1,455	Note 1	Parent/Subsidiary
HWKY	MEDTW	Taiwan	Sale of computers and peripheral equipment	92,000	-	9,200	100.00	253,155	9,200	100.00	(2,183)	Note 1	Parent/Subsidiary
WCC	WCUS	U.S.A.	Sale of computers and peripheral equipment	3,114	-	1,000	100.00	3,864	1,000	100.00	2,006	Note 1	Parent/Subsidiary
WCC	WCJP	Japan	Sale of computers and peripheral equipment	1,092	-	4	100.00	2,596	4	100.00	(22)	Note 1	Parent/Subsidiary

Note 1: The share of profits or losses of the investee company is not disclosed herein as such amount is already included in the share of profits or losses of the investor company.

Acer Incorporated

Information on Investment in Mainland China

For the year ended December 31, 2025

Table 7
(Amounts in Thousands of New Taiwan Dollars)

Investor Company Name	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment (Note 1)	Accumulated Outflow of Investment from Taiwan as of January 1, 2025	Investment Flows		Accumulated Outflow of Investment from Taiwan as of December 31, 2025	Net Income (Losses) of Investor	% of Ownership of Direct or Indirect Investment	Maximum ownership during 2025		Share of profit-losses of investor	Carrying Value as of December 31, 2025	Accumulated Inward Remittance of Earnings as of December 31, 2025
					Outflow	Inflow				Shares	Percentage of Ownership
Acer Third Wave Software (Beijing) Co. Ltd.	Sale of commercial and cloud application software and technical and services	94,248	1	94,248	-	-	94,248	2,051	100.00	-	100.00	2,051	5,250	-
Acer Information (Zhong Shan) Co., Ltd.	Marketing of brand-name IT products	47,124	2	-	-	-	-	5,110	100.00	-	100.00	5,110	192,853	-
Acer Computer (Shanghai) Ltd.	Responsible for the repair and maintenance services of Acer brand-name products sold in China, mainly engaged in after-sale service	62,832	2	62,832	-	-	62,832	7,596	100.00	-	100.00	7,596	1,317,639	-
Acer (Chongqing) Ltd.	Marketing and sale of brand-name IT products	4,712,400	2	4,838,064	-	-	4,838,064	(1,117,690)	100.00	-	100.00	(1,117,690)	1,318,987	-
Acer Cloud Technology (Chongqing) Ltd.	Design, development, sale, and advisory of computer software and hardware	157,080	1	157,080	-	-	157,080	(16)	100.00	-	100.00	(16)	7,174	-
Innovation and Commercialization Accelerator Inc.	Development, design, manufacturing, sale, and maintenance of intelligent terminal devices	26,974	1	-	-	-	-	-	30.00	-	30.00	-	-	-
Consumer Insights Research (Chongqing) Inc.	Collection, analysis and research of data information	13,487	1	-	-	-	-	-	30.00	-	30.00	-	-	-
Sartac (Beijing) Ltd.	Currently not in operation	4,496	1	4,496	-	-	4,496	135	100.00	-	100.00	135	9,646	-
Beijing Altoo Computing Ltd.	Product development and sale of high-performance computing products and solutions (including AI computing and cloud computing solutions) and Altoo IFP interactive displays	19,888	1	19,888	-	19,888	-	171	-	-	100.00	171	-	73,166
Shanghai AST Technology Service Ltd.	System integration service	19,973	1	19,973	-	-	19,973	365	100.00	-	100.00	365	31,130	-
GudgeTek (Shanghai) Limited	Sale of 3C peripherals and accessories	15,708	1	15,708	-	-	15,708	19,159	100.00	-	100.00	19,159	103,570	-
AOPEN International (Shanghai) Co., Ltd	Marketing and sale of commercial IT hardware and software equipment (such as digital signage and kiosks); and after-sale service forAopen brand-name products	161,322	2	161,322	-	-	161,322	(1,750)	100.00	-	100.00	(1,750)	5,815	-
AOPEN Information Products (Zhongshan) Inc.	Outsourcing manufacturing management of commercial computer products, computer components, peripheral equipment and apparatus	450,261	2	450,261	-	-	450,261	9,960	100.00	-	100.00	9,960	332,185	-
Protrade Shanghai Trading Co., Ltd.	Trading of rubber and various rubber products	19,960	2	-	-	-	-	(22,951)	100.00	-	100.00	(22,951)	46,084	-
Shanghai Winking Entertainment Limited	Holding activity, Art outsourcing and Game development headquarter	940,508	2	-	-	-	-	48,810	100.00	-	100.00	27,914	502,402	-
Shanghai Winking Entertainment Limited	Management of collaborative art design and IP licensing in Mainland China	92,917	2	-	-	-	-	922	100.00	-	100.00	527	11,781	-
Nanjing Winking Entertainment Ltd	Game art outsourcing services	89,733	2	-	-	-	-	(11,890)	100.00	-	100.00	(6,800)	57,537	-
Suzhou Winking Entertainment Ltd	Game art outsourcing services	4,496	2	-	-	-	-	(90)	100.00	-	100.00	(51)	480	-
Acer e-Enabling Service Business (Shang-Hai) Ltd.	AI application service provider, offering comprehensive solutions for cloud and digital applications	47,124	1	47,124	-	-	47,124	7,303	100.00	-	100.00	7,303	64,303	-
Shanghai Minelsuder Digital Technology Co., Ltd.	Game art outsourcing services	4,496	2	-	-	-	-	64,048	100.00	-	100.00	36,628	165,860	-
Dalian Minelsuder Software Co., Ltd	Game art outsourcing services	4,496	2	-	-	-	-	6,628	100.00	-	100.00	3,791	31,042	-
Chengdu Minelsuder Digital Technology Co., Ltd.	Game art outsourcing services	4,496	2	-	-	-	-	217	100.00	-	100.00	124	4,861	-
MINE LOADER (TIANJIN) SOFTWARE CO.,LTD.	Game art outsourcing services	4,496	2	-	-	-	-	42,296	100.00	-	100.00	24,189	82,892	-
Tianjin Binhsi High-tech Zone Yiyou Training Institute Co., Ltd	Game art outsourcing training	2,023	2	-	-	-	-	1,775	100.00	-	100.00	1,015	1,155	-

Investor Company Name	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment (Note 1)	Accumulated Outflow of Investment from Taiwan as of January 1, 2025	Investment Flows		Accumulated Outflow of Investment from Taiwan as of December 31, 2025	Net Income (Loans) of Investor	% of Ownership of Direct or Indirect Investment	Maximum ownership during 2025		Share of profit/ losses of investor	Carrying Value as of December 31, 2025	Accumulated Inward Remittance of Earnings as of December 31, 2025
					Outflow	Inflow				Shares	Percentage of Ownership
Posiflex Business Machines (Beijing) Co., Ltd.	Import and export of Posiflex brand-name products	109,956	2	109,956	-	-	109,956	(11,633)	100.00	-	100.00	(11,633)	48,989	-
ONK Clouding (Shanghai)	Software services	5,341	2	5,341	-	-	5,341	-	100.00	-	100.00	-	(95)	-
Welink Technology Co., Ltd.	Sale of industrial computers and peripheral equipment, and related software services	39,113	2	-	-	-	-	(3,388)	100.00	-	100.00	(3,388)	(2,800)	-
BEIJING CASWELL LTD.	Manufacturing and sale of network communication products	119,381	2	21,489	-	-	21,489	(53,943)	18.00	-	18.00	-	16,538	-

Note 1: Method of Investment:
Type 1: Direct investment in Mainland China.
Type 2: Indirect investment in Mainland China through a holding company established in other countries.

Note 2: Acer Intellectual (Chongqing) Limited had merged with Acer (Chongqing) Ltd. in 2014, and Acer (Chongqing) Ltd. was the surviving entity from the merger. This amount included the original investment in Acer Intellectual (Chongqing) Limited of $125,664 (US$ 4,000 thousand).

Note 3: Innovation and Commercialization Accelerator Inc. and Consumer Insights Research (Chongqing) Inc. were reinvested by Acer Cloud Technology (Chongqing) Ltd.

Investor Company Name	Accumulated Investment in Mainland China as of December 31, 2025 (Note 4)(Note 5)(Note 6)(Note 7)	Investment Amounts Authorized by Investment Commission, MOEA (Note 4)(Note 5)(Note 6)(Note 7)	Upper Limit on Investment Authorized by Investment Commission, MOEA
The Company and Subsidiaries	$6,004,507 (US$191,128,953)	$7,358,548 (US$234,229,304.5)	$58,942,649 (Note)

Note 4: In September 2008, AOI had disposed all shares of JNS Technology Co., Ltd., and the proceeds from the disposal of US$ 730,000 had been remitted to AOI in March 2010.

AOI has not yet to report to MOEA, therefore, the amount of US$ 1,645,200 was still included the original investment in JNS Technology Co., Ltd.

Note 5: T-Conn Precision (Zhongshan) Co., Ltd., indirectly invested by AOI, had been dissolved and the related liquidation process has been completed. The liquidation proceeds of US$ 31,549.06 (according to ownership percentage of 19%) has been remitted to Super Elite Ltd., a holding company established in other countries. On March 12, 2010, AOI has obtained MOEA's approval to withdraw its investment. However, the amount of accumulated investment in Mainland China still included the amount of US$ 57,000 due to the liquidation of capital which has yet to be remitted to Taiwan.

Note 6: As a result of the acquisition of WKS, AGM indirectly acquired its investment of WKSH located in Mainland China, and meanwhile accumulated the investments in Mainland China amounting to US$16,033,042.

Note 7: AGM made indirect investment in Mainland China through a holding company (WKS) established in other countries.

The above amounts were translated into New Taiwan dollars at the exchange rate of US$1=NTS31.416 as of December 31, 2025.

Note: Calculated based on 60% of the consolidated net equity value.

ACER INCORPORATED

Statement of Cash and Cash Equivalents

December 31, 2025

(Expressed in Thousands of New Taiwan Dollars)

Item	Description	Amount
Cash on hand		$ 579
Bank deposits	Note 1	2,620,781
Time deposits (mature within three months)	Interest rate at 0.35%~3.80%; Note 2	2,519,875
		$ 5,141,235

Note 1: Foreign currency deposits (in thousands) and their exchange rates were as follows:

CNY $ 196	CNY: NTD=1 : 4.4957
EUR $ 374	EUR: NTD=1 : 36.9012
USD $ 69,063	USD: NTD=1 : 31.4160
JPY $ 53	JPY: NTD=1 : 0.2005
AUD $ 14	AUD: NTD=1 : 20.9639
NZD $ 24	NZD: NTD=1 : 18.0893
KRW $ 21,546	KRW: NTD=1 : 0.0218
HKD $ 0.7	HKD: NTD=1 : 4.0366

Note 2: Including time deposit denominated in USD of $70,000 and JPY of $1,600,000.

(Continued)

ACER INCORPORATED

Statement of Notes and Accounts Receivable

December 31, 2025

(Expressed in Thousands of New Taiwan Dollars)

Item	Amount
Notes and accounts receivable:
Client A	$ 585,796
Client B	483,822
Client C	459,108
Client D	281,174
Client E	263,410
Others (the amount of individual client does not exceed 5% of the account balance)	2,565,332
Less: loss allowance	(1,460)
	$ 4,637,182

Statement of Inventories

Item	Amount		Note
	Carrying Amount	Market Value
Raw materials	$ 11,341,344	12,651,892	Market value at net realizable value
Finished goods and merchandise	1,019,771	1,135,572	Market value at net realizable value
Spare parts	137,354	137,354	Market value at net realizable value
Inventories in transit	740,156	740,156	Market value at net realizable value
	$ 13,238,625	14,664,974

(Continued)

ACER INCORPORATED

Statement of Other Current Assets

December 31, 2025

(Expressed in Thousands of New Taiwan Dollars)

Item	Amount
Prepaid expenses	$ 185,259
Input VAT	359,531
Others	32,198
	$ 576,988

(Continued)

Acer Incorporated

Statement of Changes in Financial Assets Measured at Amortized Cost – Current

For the year ended December 31, 2025

(Expressed in Thousands of New Taiwan Dollars)

Name	Beginning Balance		Addition		Deductions		Others (Note)		Ending Balance
	Quantity	Amount	Quantity	Amount	Quantity	Amount	Quantity	Amount	Quantity	Amount
USD Fixed Rate Callable Note 3.85 05/13/25	-	$ 163,905	-	-	-	(150,000)	-	(13,905)	-	-
CREDIT AGRICOLE SA Bond 4.375 03/17/25	-	65,579	-	-	-	(65,400)	-	(179)	-	-
UBS Bond 4.125 09/24/25	-	65,480	-	-	-	(60,000)	-	(5,480)	-	-
Citigroup Inc. Bond 3.3 04/27/25	-	65,266	-	-	-	(65,600)	-	334	-	-
Citigroup Inc. Bond 3.3 04/27/25	-	97,895	-	-	-	(98,400)	-	505	-	-
HSBC 5.625 03/17/25	-	98,358	-	-	-	(98,100)	-	(258)	-	-
BNP 3.375 01/09/25	-	98,141	-	-	-	(97,200)	-	(941)	-	-
BNP 3.375 01/09/25	-	65,569	-	-	-	(64,800)	-	(769)	-	-
HSBC 5.625 03/17/25	-	65,566	-	-	-	(65,400)	-	(166)	-	-
HSBC Bond 4.375 11/23/26	-	-	-	-	-	-	-	62,705	-	62,705
HSBC Bond 3.9 05/25/26	-	-	-	-	-	-	-	218,978	-	218,978
MUFG Bond 2.757 09/13/26	-	-	-	-	-	-	-	185,595	-	185,595
MIZUHO Bond 3.477 04/12/26	-	-	-	-	-	-	-	93,822	-	93,822
MUFG Bond 3.85 03/01/26	-	-	-	-	-	-	-	94,082	-	94,082
MIZUHO Bond 3.477 04/12/26	-	-	-	-	-	-	-	62,546	-	62,546
C 3.7 01/12/26	-	-	-	-	-	-	-	156,977	-	156,977
		$ 785,759		-		(764,900)		853,846		874,705

Note: Others include amortization, foreign currency translation adjustments and reclassification from non-current assets to current assets.

(Continued)

Acer Incorporated

Statement of Changes in Financial Assets Measured at Amortized Cost – Non-current

For the year ended December 31, 2025

(Expressed in Thousands of New Taiwan Dollars)

Name	Beginning Balance		Addition		Deductions		Others (Note)		Ending Balance		Pledged as Collateral	Remark
	Quantity	Amount	Quantity	Amount	Quantity	Amount	Quantity	Amount	Quantity	Amount
HSBC Bond 4.375 11/23/26	-	$ 65,290	-	-	-	-	-	(65,290)	-	-	-	-
HSBC Bond 3.9 05/25/26	-	226,228	-	-	-	-	-	(226,228)	-	-	-	-
UBS Bond 4.253 03/23/28	-	223,701	-	-	-	-	-	(7,709)	-	215,992	-	-
MUFG Bond 2.757 09/13/26	-	189,781	-	-	-	-	-	(189,781)	-	-	-	-
SUMIBK Bond 5.52 01/13/28	-	99,797	-	-	-	-	-	(4,594)	-	95,203	-	-
MIZUHO Bond 3.477 04/12/26	-	96,602	-	-	-	-	-	(96,602)	-	-	-	-
SUMIBK Bond 3.364 07/12/27	-	158,602	-	-	-	-	-	(4,708)	-	153,894	-	-
MUFG Bond 3.85 03/01/26	-	97,151	-	-	-	-	-	(97,151)	-	-	-	-
SUMIBK Bond 5.52 01/13/28	-	66,645	-	-	-	-	-	(3,095)	-	63,550	-	-
MIZUHO Bond 3.477 04/12/26	-	64,393	-	-	-	-	-	(64,393)	-	-	-	-
CREDIT AGRICOLE 5.301 07.12/28	-	98,343	-	-	-	-	-	(4,095)	-	94,248	-	-
P12 Cathay Life Insurance 1A	-	1,500,000	-	-	-	-	-	-	-	1,500,000	-	-
SOCGEN 4.677 06/15/27	-	96,347	-	-	-	-	-	(3,251)	-	93,096	-	-
BNP 3.5 11/16/27	-	93,279	-	-	-	-	-	(2,280)	-	90,999	-	-
CREDIT AGRICOLE 5.301 07/12/28	-	65,131	-	-	-	-	-	(2,602)	-	62,529	-	-
SOCGEN 4.677 06/15/27	-	64,093	-	-	-	-	-	(2,063)	-	62,030	-	-
BNP 3.5 11/16/27	-	92,496	-	-	-	-	-	(2,005)	-	90,491	-	-
WSTPNZ 4.902 02/15/28	-	163,905	-	-	-	-	-	(6,825)	-	157,080	-	-
ANZNZ 5.355 08/14/28	-	166,871	-	-	-	-	-	(7,685)	-	159,186	-	-
HSBC 4.95 03/31/30	-	162,672	-	-	-	-	-	(6,572)	-	156,100	-	-
SUMIBK 5.8 07/13/28	-	168,400	-	-	-	-	-	(8,154)	-	160,246	-	-
SUMIBK 5.71 01/13/30	-	101,198	-	-	-	-	-	(4,703)	-	96,495	-	-
SUMIBK 5.71 01/13/30	-	67,532	-	-	-	-	-	(3,150)	-	64,382	-	-
P13 Cathay Life Insurance 1A	-	1,500,000	-	-	-	-	-	-	-	1,500,000	-	-
C 3.7 01/12/26	-	161,252	-	-	-	-	-	(161,252)	-	-	-	-
HSBC 4.95 03/31/30	-	97,372	-	-	-	-	-	(3,896)	-	93,476	-	-
WSTPNZ 5.195 02/28/29	-	165,111	-	-	-	-	-	(7,132)	-	157,979	-	-
SUMIBK 5.71 01/13/30	-	100,876	-	-	-	-	-	(4,634)	-	96,242	-	-
WSTPNZ 4.902 02/15/28	-	98,024	-	-	-	-	-	(3,989)	-	94,035	-	-
ANZNZ 2.55 02/13/30	-	87,500	-	-	-	-	-	(1,817)	-	85,683	-	-
SUMIBK 5.52 01/13/28	-	66,307	-	-	-	-	-	(2,984)	-	63,323	-	-
SUMIBK 5.8 07/13/28	-	100,314	-	-	-	-	-	(4,676)	-	95,638	-	-
SUMIBK 5.424 07/09/31	-	99,593	-	-	-	-	-	(4,317)	-	95,276	-	-
DB 5.414 05/10/29	-	167,400	-	-	-	-	-	(7,614)	-	159,786	-	-
INTNED 4.05 04/09/29	-	160,116	-	-	-	-	-	(5,824)	-	154,292	-	-
SUMIBK 5.516 07/09/29	-	167,873	-	-	-	-	-	(7,774)	-	160,099	-	-
MUFG 3.195 07/18/29	-	153,833	-	-	-	-	-	(4,429)	-	149,404	-	-
SUMIBK 5.424 07/09/31	-	-	-	167,686	-	-	-	(6,919)	-	160,767	-	-
SUMIBK 5.852 07/13/30	-	-	-	239,498	-	-	-	(10,592)	-	228,906	-	-
SUMIBK 5.454 01/15/32	-	-	-	65,908	-	-	-	(2,765)	-	63,143	-	-
		$ 7,254,028		473,092		-		(1,053,550)		6,673,570

Note: Others include amortization, foreign currency translation adjustments and reclassification from non-current assets to current assets.

(Continued)

100

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Statement of Changes in Investments Accounted for Using The Equity Method

For the year ended December 31, 2025

(Expressed in Thousands of New Taiwan Dollars / Thousands of Shares)

Name of Investor	Beginning Balance		Addition		Decrease				Foreign Currency Translation Differences		Ending balance		Market Value or Net Assets Value
	Shares	Amount	Shares	Amount	Shares	Amount (note)	Others	Investment Profit (Loss)	Shares	Percentage of Ownership	Amount	Unit Price (In Dollars)	Total Amount	Collateral
ADSC	66,215	$ 2,020,558	-	-	-	(50,288)	605,821	88,605	(61)	66,215	100.00 %	2,664,635	40.24	2,664,634	-
Boardwalk	1,263,432	30,497,256	-	-	-	-	(182,036)	(318,699)	(1,225,651)	1,263,432	92.02 %	28,770,870	22.77	28,770,870	-
AEH	147	$ 20,225,758	-	-	-	-	(82,268)	(1,236,401)	1,147,606	147	100.00 %	20,054,695	136,426.50	20,054,695	-
AHI	191,155	16,317,656	-	-	(33,000)	(1,072,500)	815	(266,114)	(531,347)	158,155	100.00 %	14,448,510	91.36	14,448,510	-
Bluechip	1,421	79,830	-	-	-	-	487	5,876	2,495	1,421	19.10 %	88,688	62	88,688	-
CCI	850	3,403,155	-	-	-	-	(44,077)	35,621	17,663	(1,799)	850	100.00 %	3,410,563	4,012.43	3,410,563
ACSI	15,562	1,556,409	-	-	-	-	(93,372)	5,951	159,024	-	15,562	51.87 %	1,628,012	174.00	2,707,788
WLB	48,073	1,297,975	2,200	103,400	(766)	(186,184)	116,273	201,732	(163)	49,507	54.06 %	1,533,033	53.70	2,658,526	-
AGT	39,308	2,286,727	-	-	-	(66,824)	(102)	67,305	25	39,308	63.54 %	2,287,131	25.60	1,006,285	-
ABH	130,308	1,958,793	30,012	-	-	-	110,724	321,029	(8,504)	160,320	100.00 %	2,382,042	14.86	2,382,042	-
ASBZ	660	23,725	-	-	(640)	(17,591)	-	218	-	20	100.00 %	6,352	317.60	6,352	-
AOI	34,264	686,688	18	664	-	(92,562)	(2,705)	138,608	3,098	34,282	43.70 %	733,791	51.90	1,779,236	-
SEB	-	9,495	-	-	-	-	-	136	15	-	100.00 %	9,646	-	9,646	-
SFT	9,110	86,863	-	-	(9,110)	(62,040)	-	(24,823)	-	-	-	-	-	-	-
HSNC	10,242	150,388	-	-	(100)	(18,653)	28,954	20,910	1,788	10,142	55.15 %	183,387	35.95	364,605	-
ADSBH	12,640	495,236	-	-	-	(12,640)	378	65,783	(1,009)	12,640	56.94 %	547,748	43.33	547,748	-
API	14,233	186,956	-	-	-	(11,386)	133	38,669	(4,283)	14,233	56.93 %	210,089	46.00	654,718	-
AGM	24,449	812,127	-	-	-	(29,340)	9,404	35,300	(17,038)	24,449	69.85 %	810,453	62.49	1,527,818	-
AAM	107,719	1,060,323	-	-	-	-	-	(8,325)	-	107,719	100.00 %	1,051,998	9.77	1,051,998	-
ASSB	30,969	1,448,419	-	-	-	-	-	42,847	82,978	30,969	100.00 %	1,574,244	50.83	1,574,244	-
ACS	3,985	255,273	-	-	-	(31,500)	-	(1,773)	4,074	3,985	100.00 %	226,074	56.73	226,074	-
ATBD	40	66	-	-	(40)	(66)	-	-	-	-	-	-	-	-	-
HYE	21,000	209,915	35,000	350,000	-	-	-	1,064	-	56,000	70.00 %	560,979	10.02	560,979	-
ECL	-	-	33,701	2,796,581	(33,701)	(2,791,564)	(28,533)	47,197	(23,681)	-	-	-	-	-	-
ECT	-	-	13,535	2,791,564	-	(111,388)	-	(30,277)	-	13,535	50.00 %	2,649,899	195.78	2,649,899	-
ALT	-	-	1,800	32,760	-	-	(4,183)	644	524	1,800	9.00 %	29,745	16.53	29,745	-
ITS	-	-	15,521	122,927	-	-	349	7,911	(143)	15,521	80.00 %	131,044	8.44	131,044	-
PONI	-	-	56	9,797	-	-	-	-	-	56	0.07 %	9,797	171.50	9,604	-
CHC	5,000	48,063	-	-	-	-	-	2,667	-	5,000	21.28 %	50,730	10.15	50,730	-
HRC	168,000	1,678,367	-	-	-	-	-	(1,581)	-	168,000	60.00 %	1,676,786	9.98	1,676,786	-
ERI	2,900	1,421,483	3,900	3,015,701	(2,900)	(2,472,480)	(250,643)	962,097	-	3,900	100.00 %	2,676,158	686.19	2,676,158	-
Haosheng	30,338	303,283	24,262	242,618	-	-	-	678	-	54,600	35.00 %	546,579	10.01	546,579	-
Haosheng No.3	29,507	295,252	-	-	-	(169)	-	724	-	29,507	25.00 %	295,807	10.02	295,807	-
SGE	12,068	208,562	-	-	-	-	-	10,235	-	12,068	22.84 %	218,797	18.13	218,797	-
Channing Electric	33,558	335,784	-	-	-	(184)	-	1,007	-	33,558	25.00 %	336,607	10.03	336,607	-
AMT	11,928	637,435	18	647	-	(26,404)	(1,190)	71,587	(1,757)	11,946	9.32 %	680,239	113.00	1,349,898	-
CCP	6,750	338,184	13,500	690,866	(13,500)	(704,366)	-	28,074	-	6,750	20.03 %	352,758	52.26	352,758	-
CCP Preferred stock	-	-	14,000	700,000	(14,000)	(700,000)	-	-	-	-	-	-	-	-	-
Yan Yang	-	-	71,250	712,500	-	-	-	(14,180)	-	71,250	25.00 %	698,320	9.80	698,320	-
Greenflavrest	-	-	8,292	406,859	-	-	(22,016)	7,002	-	8,292	32.06 %	391,845	47.26	391,845	-
Others	-	17,101	-	-	-	-	(8,474)	251	2,931	-	-	11,809	-	-	-
Subtotal		90,353,105		11,976,884		(8,595,578)	332,760	442,591	(569,902)			93,939,860
Less: Treasury stock held by subsidiaries		(2,712,774)										(2,712,774)
Adjustments of unrealized profits or losses resulting from transactions with subsidiaries and associates		(509,557)										(522,137)
		$ 87,130,774		11,976,884		(8,608,158)	332,760	442,591	(569,902)			90,704,949

Note: The amount included cash dividends distributed from the investees amounting to $862,102 and proceeds from capital reduction of the investees amounting to $1,835,903.

(Continued)

101

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Statement of Changes in Financial Assets Measured at Fair Value through Other Comprehensive Income —Non-current

For the year ended December 31, 2025

(Expressed in Thousands of New Taiwan Dollars / Thousands of Shares)

Name of Financial Instrument	Beginning balance		Addition		Decrease		Unrealized Gain (Loss)	Ending Balance		Collateral
	Shares	Amount	Shares	Amount	Shares	Amount		Shares	Amount
Stock: Qinda	81,716	$ 2,745,647	-	-	(16,140)	(198,600)	(1,006,012)	65,576	1,541,035	-
Stock: Wistron	19,109	1,987,335	-	-	-	-	888,569	19,109	2,875,904	-
Stock: FocalTech	8,733	777,209	-	-	-	-	(325,729)	8,733	451,480	-
Stock: Welldene	11,712	562,762	513	24,917	-	-	17,459	12,225	605,138	-
Stock: Pell Bio-med Technology Co., Ltd.	2,400	196,080	132	41,021	(671)	(169,034)	569,437	1,861	637,504	-
Preferred stock B: SKFH	6,750	238,613	-	-	(6,750)	(303,139)	64,526	-	-	-
Preferred stock G II: TSFH	-	-	6,750	303,139	-	-	(37,864)	6,750	265,275	-
Preferred stock B: CTBC	855	53,438	-	-	-	-	1,111	855	54,549	-
Preferred stock A: CTFH	260	15,860	-	-	-	-	(78)	260	15,782	-
Preferred stock B: CTFH	1,177	70,738	-	-	-	-	(118)	1,177	70,620	-
Preferred stock A: FBFH	254	16,053	-	-	-	-	25	254	16,078	-
Preferred stock B: FBFH	991	59,955	-	-	-	-	1,190	991	61,145	-
Preferred stock C: FBFH	7,000	372,400	-	-	-	-	1,400	7,000	373,800	-
Preferred stock A: UBOT	30	1,605	-	-	-	-	30	30	1,635	-
Preferred stock E: TSFH	335	17,286	-	-	-	-	(436)	335	16,850	-
Stock: StumCyte International, Ltd.	27	-	-	-	(5)	(110)	110	22	-	-
Stock: CT Ambi Investment and Consulting Inc.	2,000	14,165	-	-	-	-	-	2,000	14,165	-
Stock: Fortune Electric Value Company Limited	2,500	22,421	-	-	-	-	-	2,500	22,421	-
Stock: Starbit Innovation Co., Ltd.	6,922	6,083	-	-	-	-	-	6,922	6,083	-
Stock: GreenHarvest Co., Ltd.	1,111	49,995	-	-	(1,111)	(49,995)	-	-	-	-
Stock: C-Life Technologies, Inc.	11,000	230,000	-	-	-	-	(30,000)	11,000	200,000	-
Stock: Carota Corporation	3,905	250,500	-	-	-	-	-	3,905	250,500
Stock: Porrima Inc.	4,000	38,340	-	-	-	-	(620)	4,000	37,720
Stock: Taiwan Cell Manufacturing Company Ltd.	500	6,000	180	6,285	-	-	-	680	12,285
Stock: Chih He Low Carbon Co., Ltd.	910	9,100	-	-	-	-	-	910	9,100
Stock: Sheng He Energy Co., Ltd.	9,990	113,187	-	-	(9,990)	(134,459)	21,272	-	-
Stock: Aurosi Precision Co., Ltd.	3,200	32,000	680	6,800	-	-	-	3,880	38,800
		$ 7,886,772		382,162		(855,337)	164,272		7,577,869

(Continued)

102

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Statement of Accounts Payable

December 31, 2025

(Expressed in Thousands of New Taiwan Dollars)

Vendor Name	Amount
Vendor A	$ 5,255,091
Vendor B	3,134,333
Vendor C	2,676,044
Vendor D	1,996,319
Others (the amount of individual vendor does not exceed 5% of the account balance)	16,039,529
	$ 29,101,316

Statement of Other Payable

Item	Amount
Royalty payable	$ 4,153,634
Accrued for price difference	7,442,636
Accrued product development costs	4,440,884
Salaries and bonus payable	1,480,867
Others (the amount of individual item does not exceed 5% of the account balance)	3,529,574
	$ 21,047,595

(Continued)

103

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Statement of Other Non-Current Liabilities

December 31, 2025

(Expressed in Thousands of New Taiwan Dollars)

Item	Amount
Defined benefit liabilities	$ 218,227
Guarantee deposits	8,568
	$ 226,795

Statement of Lease Liabilities

Item	Description	Lease terms	Discount rate	Ending balance
Lease liabilities	Buildings	2022/01~2029/12	1.14%~2.95%	$ 154,819
Lease liabilities	Other equipment	2023/10~2027/05	2.24%~2.85%	2,089
				$ 156,908
Lease liabilities—current				$ 52,097
Lease liabilities—non-current				$ 104,811

(Continued)

104

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Statement of Cost of Revenue

For the year ended December 31, 2025

(Expressed in Thousands of New Taiwan Dollars)

Item	Amount
	Subtotal	Total
Cost of goods sold from purchase		$ 147,279,227
Beginning inventory	$ 13,595,566
Net purchase for the period	134,382,716
Ending inventory	(14,258,918)
Reclassified to property, plant and equipment	(11,931)
Royalty for software and technology	13,090,913
Reversal of write-downs of inventories	(432,105)
ODM stock provision	105,615
Others	807,371
Cost of product development and repair and maintenance		107,321
Cost of revenue		$ 147,386,548

(Continued)

105

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Statement of Operating Expenses

For the year ended December 31, 2025

(Expressed in Thousands of New Taiwan Dollars)

Item	Selling expenses	Administrative expenses	Research and development expenses
Salaries	$ 1,311,095	425,657	643,624
Depreciation	123,372	44,719	22,942
Amortization	374	25,143	432
Advertising and promotion expense	205,691	1,191	1,787
NRE and test inspection expense	-	-	169,658
Professional service expense	111,119	514,904	-
Others	419,492	182,695	264,609
	$ 2,171,143	1,194,309	1,103,052

Statement of Financial Assets Measured at Fair Value through Profit or Loss – Current: Note 6(b).

Statement of Receivable from Related Parties and Other Receivable from Related Parties: Note 7.

Statement of Other Receivables: Note 6(d).

Statement of Changes in Property, Plant and Equipment: Note 6(i).

Statement of Changes in Right-of-use Assets: Note 6(j).

Statement of Changes in Investment Property: Note 6(k).

Statement of Changes in Intangible Assets: Note 6(l).

Statement of Financial Liabilities Measured at Fair Value through Profit or Loss – Current: Note 6(b).

Statement of Long-term Debt: Note 6(m).

Statement of Payables to Related Parties and Other Payables to Related Parties: Note 7.

Statement of Bonds Payable: Note 6(n).

Statement of Provisions – Current: Note 6(p).

Statement of Deferred Tax Assets/Liabilities: Note 6(s).

Statement of Revenue: Note 6(v).

Statement of Other Operating Income and Expenses: Note 6(x).

Statement of Other Income: Note 6(y).

Statement of Other Gains and Losses: Note 6(y).

Statement of Financial Costs: Note 6(y).

AI assistant

ACER — Audit Report / Information 2025

10414_rns_2026-05-10_3e4a1ad8-57ac-4979-acfc-f23b4b007f0d.pdf

ACER INCORPORATED

Table of contents

Independent Auditors’ Report

Opinion

Basis for Opinion

Key Audit Matters

Responsibilities of Management and Those Charged with Governance for the Parent-Company-Only Financial Statements

Auditors’ Responsibilities for the Audit of the Parent-Company-Only Financial Statements

Notes to Readers

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(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)

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(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)

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Parent-Company-Only Statements of Cash Flows (Continued)

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

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1. Organization and business

2. Authorization of the parent-company-only financial statements

3. Application of new and revised accounting standards and interpretations:

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Notes to Parent-Company-Only Financial Statements

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Notes to Parent-Company-Only Financial Statements

4. Summary of material accounting policies

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Notes to Parent-Company-Only Financial Statements

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Notes to Parent-Company-Only Financial Statements

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Notes to Parent-Company-Only Financial Statements

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Notes to Parent-Company-Only Financial Statements

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Notes to Parent-Company-Only Financial Statements

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Notes to Parent-Company-Only Financial Statements

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Notes to Parent-Company-Only Financial Statements

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Notes to Parent-Company-Only Financial Statements

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Notes to Parent-Company-Only Financial Statements

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Notes to Parent-Company-Only Financial Statements

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Notes to Parent-Company-Only Financial Statements

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Notes to Parent-Company-Only Financial Statements

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Notes to Parent-Company-Only Financial Statements

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Notes to Parent-Company-Only Financial Statements

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Notes to Parent-Company-Only Financial Statements

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Notes to Parent-Company-Only Financial Statements

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Notes to Parent-Company-Only Financial Statements

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Notes to Parent-Company-Only Financial Statements

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Notes to Parent-Company-Only Financial Statements

5. Critical accounting judgments and key sources of estimation and assumption uncertainty

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Notes to Parent-Company-Only Financial Statements

6. Significant account disclosures

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Notes to Parent-Company-Only Financial Statements

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Notes to Parent-Company-Only Financial Statements

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Notes to Parent-Company-Only Financial Statements

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Notes to Parent-Company-Only Financial Statements

ACER Audit Report / Information 2025