ADLINK Technology Inc.

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

Deloitte.

勤業眾信

勤業眾信聯合會計師事務所

110421 台北市信義區松仁路100號20樓

Deloitte & Touche

20F, Taipei Nan Shan Plaza

No. 100, Songren Rd.,

Xinyi Dist., Taipei 110421, Taiwan

Tel: +886 (2) 2725-9988

Fax: +886 (2) 4051-6888

www.deloitte.com.tw

INDEPENDENT AUDITORS' REPORT

The Board of Directors and Shareholders
ADLINK Technology Inc.

Opinion

We have audited the accompanying parent company only financial statements of ADLINK Technology Inc. (the “Company”), which comprise the balance sheets as of December 31, 2025 and 2024, and the statements of comprehensive income, changes in equity and cash flows for the years ended December 31, 2025 and 2024, and the notes to the parent company only financial statements, including material accounting policy information (collectively referred to as the “parent company only financial statements”).

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and its financial performance and its cash flows for the years ended December 31, 2025 and 2024, 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 the 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 Financial Statements section of our report. We are independent of the Company in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit 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 for the year ended December 31, 2025. 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.

The key audit matters of the parent company only financial statements for the year ended December 31, 2025 are stated as follows:

Revenue Recognition

The operating revenue of ADLINK Technology Inc. mainly arises from selling industrial computers. Based on our assessment, there is a risk that revenue are recognized for certain customers with specific indicators showing abnormal fluctuations that may not reflect actual transaction. Thus, we identified the occurrence of operating revenue from customers that met the abovementioned criteria as a key audit matter.

Refer to Notes 4 and 19 to the parent company only financial statements for details on accounting policies and relevant disclosures on revenue recognition.

The key audit procedures that we performed in respect of the recognition of operating revenue were as follows:

We obtained an understanding of the internal controls related to the aforementioned sales transactions, assessed the design and tested the operating effectiveness of these controls.
We performed substantive procedure testing of the aforementioned sales transactions, examined the external supporting documents and the subsequent collection of receivables, and verified that such transactions did occur. We also verified that the settlement of payments of major customers was consistent with the payment terms.
We checked for any significant sales return of the aforementioned sales after December 31, 2025, and we confirmed that no significant misstatements of revenue were found from the aforementioned customers.

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 Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance, including the audit committee, are responsible for overseeing the Company's financial reporting process.

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.

As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and maintain 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 the Company'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, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our 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 the Company 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 and appropriate audit evidence regarding the financial information of the entities or business activities within the Company 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 statements that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements for the year ended December 31, 2025, 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 audits resulting in this independent auditors’ report are Chien-Liang Liu and Yi-Wen Wang.

Deloitte & Touche
Taipei, Taiwan
Republic of China
March 12, 2026

Notice to Readers

The accompanying parent company only financial statements are intended only to present the financial position, financial performance and cash flows in accordance with 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 applied in the Republic of China.

For the convenience of readers, the independent auditors’ report and the accompanying parent company only financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ report and parent company only financial statements shall prevail.

ADLINK TECHNOLOGY INC.

PARENT COMPANY ONLY BALANCE SHEETS

DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	2025		2024
ASSETS	Amount	%	Amount	%
CURRENT ASSETS
Cash and cash equivalents (Note 6)	$ 1,047,708	9	$ 833,476	8
Financial assets at fair value through profit or loss (Notes 7 and 26)	98	-	-	-
Financial assets at amortized cost	-	-	8,942	-
Notes receivable (Note 8)	57	-	9,455	-
Trade receivables (Note 8)	592,271	5	594,634	5
Trade receivables from related parties (Note 26)	1,706,179	15	1,508,289	14
Other receivables	35,875	-	30,940	-
Other receivables from related parties (Note 26)	3,641	-	8,485	-
Inventories (Note 9)	1,582,087	14	1,219,956	11
Other current assets (Note 26)	68,218	1	72,860	1
Total current assets	5,036,134	44	4,287,037	39
NON-CURRENT ASSETS
Investments accounted for using the equity method (Note 10)	2,588,030	23	2,772,323	26
Property, plant and equipment (Notes 11, 26 and 27)	3,192,546	28	3,288,210	30
Right-of-use assets (Note 12)	8,205	-	15,634	-
Investment properties (Notes 13 and 27)	224,057	2	229,008	2
Intangible assets (Note 26)	37,847	1	57,159	1
Deferred tax assets (Note 21)	242,434	2	204,579	2
Prepayments for equipment	2,584	-	1,442	-
Refundable deposits	13,220	-	15,077	-
Other non-current assets	411	-	1,349	-
Total non-current assets	6,309,334	56	6,584,781	61
TOTAL	$ 11,345,468	100	$ 10,871,818	100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term borrowings (Note 14)	$ 750,000	7	$ 350,000	3
Financial liabilities at fair value through profit or loss (Note 7)	13,221	-	1,518	-
Trade payables (Note 15)	1,010,295	9	874,701	8
Trade payables to related parties (Note 26)	328,488	3	507,680	5
Other payables (Notes 16 and 26)	481,363	4	488,342	5
Current tax liabilities	116,994	1	52,127	1
Provisions	26,798	-	31,419	-
Lease liabilities (Note 12)	7,673	-	9,421	-
Current portion of long-term borrowings (Note 14)	634,256	6	483,149	4
Other current liabilities (Note 19)	70,214	1	66,857	1
Total current liabilities	3,439,302	31	2,865,214	27
NON-CURRENT LIABILITIES
Long-term borrowings (Note 14)	2,240,922	20	2,575,178	24
Provisions	32,719	-	26,798	-
Deferred tax liabilities (Note 21)	16,167	-	4,863	-
Lease liabilities (Note 12)	271	-	6,054	-
Net defined benefit liabilities (Note 17)	11,359	-	16,534	-
Total non-current liabilities	2,301,438	20	2,629,427	24
Total liabilities	5,740,740	51	5,494,641	51
EQUITY (Note 18)
Share capital	2,177,243	19	2,174,973	20
Capital surplus	1,321,736	12	1,290,107	12
Retained earnings
Legal reserve	788,269	7	782,098	7
Special reserve	8,808	-	156,153	1
Unappropriated earnings	1,425,177	12	982,654	9
Total retained earnings	2,222,254	19	1,920,905	17
Other equity	(116,505)	(1)	(8,808)	-
Total equity	5,604,728	49	5,377,177	49
TOTAL	$ 11,345,468	100	$ 10,871,818	100

The accompanying notes are an integral part of the parent company only financial statements.

ADLINK TECHNOLOGY INC.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

	2025		2024
	Amount	%	Amount	%
OPERATING REVENUE (Notes 19 and 26)	$ 8,150,845	100	$ 6,666,370	100
OPERATING COSTS (Notes 9, 20 and 26)	5,669,650	69	4,632,998	70
GROSS PROFIT	2,481,195	31	2,033,372	30
UNREALIZED LOSS (GAIN) ON TRANSACTIONS WITH ASSOCIATES	1,529	-	(6,920)	-
NET GROSS PROFIT	2,482,724	31	2,026,452	30
OPERATING EXPENSES (Notes 20 and 26)
Selling and marketing	269,597	3	283,099	4
General and administrative	399,394	5	398,868	6
Research and development	1,128,514	14	1,145,351	17
Expected credit loss (gain)	1,321	-	(3,856)	-
Total operating expenses	1,798,826	22	1,823,462	27
PROFIT FROM OPERATIONS	683,898	9	202,990	3
NON-OPERATING INCOME AND EXPENSES
(Notes 20 and 26)
Interest income	4,523	-	5,971	-
Other income	68,853	1	72,957	1
Other gains and losses	(28,282)	-	35,798	1
Finance costs	(69,917)	(1)	(60,675)	(1)
Share of profit or loss of subsidiaries and associates	(34,684)	(1)	(212,986)	(3)
Total non-operating income and expenses	(59,507)	(1)	(158,935)	(2)
PROFIT BEFORE INCOME TAX	624,391	8	44,055	1
INCOME TAX EXPENSE (BENEFIT) (Note 21)	112,884	2	(6,845)	-
NET PROFIT FOR THE YEAR	511,507	6	50,900	1

(Continued)

ADLINK TECHNOLOGY INC.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

	2025		2024
	Amount	%	Amount	%
OTHER COMPREHENSIVE INCOME (LOSS)
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit plans (Note 17)	$ 3,853	-	$ 13,503	-
Share of the other comprehensive loss of subsidiaries accounted for using the equity method (Note 18)	(2,922)	-	7,469	-
Income tax relating to items that will not be reclassified subsequently to profit or loss (Note 21)	(771)	-	(2,700)	-
	160	-	18,272	-
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of the financial statements of foreign operations (Note 18)	(143,922)	(2)	174,845	3
Income tax relating to items that may be reclassified subsequently to profit or loss (Note 21)	28,784	1	(34,969)	(1)
	(115,138)	(1)	139,876	2
Other comprehensive (loss) income for the year, net of income tax	(114,978)	(1)	158,148	2
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	$ 396,529	5	$ 209,048	3
EARNINGS PER SHARE (Note 22)
Basic	$ 2.35		$ 0.23
Diluted	$ 2.34		$ 0.23

The accompanying notes are an integral part of the parent company only financial statements. (Concluded)

ADLINK TECHNOLOGY INC.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	Share Capital			Capital Surplus	Retained Earnings			Exchange Differences on Translation of the Financial Statements of Foreign Operations	Other Equity Unrealized Valuation Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income	Total Other Equity	Total Equity
	Ordinary Shares	Capital Collected in Advance	Total Share Capital		Legal Reserve	Special Reserve	Unappropriated Earnings
BALANCE AT JANUARY 1, 2024	$ 2,174,973	$ -	$ 2,174,973	$ 1,298,616	$ 748,708	$ 147,309	$ 1,180,683	$ 2,076,700	$ (163,734)	$ 7,581	$ (156,153)
Appropriation of the 2023 earnings
Legal reserve	-	-	-	-	33,390	-	(33,390)	-	-	-	-
Special reserve	-	-	-	-	-	8,844	(8,844)	-	-	-	-
Cash dividends - NT$1.0 per share	-	-	-	-	-	-	(217,498)	(217,498)	-	-	(217,498)
Compensation costs of share-based payments recognized	-	-	-	16,030	-	-	-	-	-	-	16,030
Changes in capital surplus from investments in associates accounted for using the equity method	-	-	-	(24,539)	-	-	-	-	-	-	(24,539)
Net profit for the year ended December 31, 2024	-	-	-	-	-	-	50,900	50,900	-	-	50,900
Other comprehensive income for the year ended December 31, 2024, net of income tax	-	-	-	-	-	-	10,803	10,803	139,876	7,469	147,345
Total comprehensive income for the year ended December 31, 2024	-	-	-	-	-	-	61,703	61,703	139,876	7,469	147,345
BALANCE AT DECEMBER 31, 2024	2,174,973	-	2,174,973	1,290,107	782,098	156,153	982,654	1,920,905	(23,858)	15,050	(8,808)
Appropriation of the 2024 earnings
Legal reserve	-	-	-	-	6,171	-	(6,171)	-	-	-	-
Reversal of special reserve	-	-	-	-	-	(147,345)	147,345	-	-	-	-
Cash dividends - NT$0.93 per share	-	-	-	-	-	-	(202,877)	(202,877)	-	-	(202,877)
Compensation costs of share-based payments recognized	-	-	-	35,356	-	-	-	-	-	-	35,356
Issuance of ordinary shares under employee share options	980	1,290	2,270	10,700	-	-	-	-	-	-	12,970
Changes in capital surplus from investments in associates accounted for using the equity method	-	-	-	(14,427)	-	-	-	-	-	-	(14,427)
Disposal of investments in equity instruments designated as at fair value through other comprehensive income	-	-	-	-	-	-	(10,363)	(10,363)	-	10,363	10,363
Net profit for the year ended December 31, 2025	-	-	-	-	-	-	511,507	511,507	-	-	511,507
Other comprehensive income (loss) for the year ended December 31, 2025, net of income tax	-	-	-	-	-	-	3,082	3,082	(115,138)	(2,922)	(118,060)
Total comprehensive income (loss) for the year ended December 31, 2025	-	-	-	-	-	-	514,589	514,589	(115,138)	(2,922)	(118,060)
BALANCE AT DECEMBER 31, 2025	$ 2,175,953	$ 1,290	$ 2,177,243	$ 1,321,736	$ 788,269	$ 8,808	$ 1,425,177	$ 2,222,254	$ (138,996)	$ 22,491	$ (116,505)

The accompanying notes are an integral part of the parent company only financial statements.

ADLINK TECHNOLOGY INC.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax	$ 624,391	$ 44,055
Adjustments for:
Depreciation expenses	141,226	148,954
Amortization expenses	76,585	74,374
Expected credit loss (gain) recognized on trade receivables	1,321	(3,856)
Net loss of financial assets and liabilities at fair value through profit or loss	11,605	7,044
Finance costs	69,917	60,675
Interest income	(4,523)	(5,971)
Dividend income	(717)	(430)
Compensation cost of share-based payments	35,356	16,030
Share of loss of subsidiaries and associates accounted for using the equity method	34,684	212,986
Loss on disposal of property, plant and equipment	1,877	1
Gain on disposal of investments accounted for using the equity method	(1,986)	-
Write-downs of inventories	50,726	5,025
Unrealized (loss) gain on transactions with subsidiaries	(1,529)	6,920
Net loss (gain) on foreign currency exchange	8,264	(72,712)
Gain on lease modifications	(56)	-
Unrealized gain (loss) on procurement with subsidiaries	2,766	(1,208)
Changes in operating assets and liabilities
Notes receivable	9,398	(7,126)
Trade receivables	(18,838)	8,306
Trade receivables from related parties	(221,994)	111,505
Other receivables	(4,935)	(1,388)
Other receivables from related parties	4,866	150
Inventories	(412,916)	336,322
Other current assets	(825)	(31,005)
Other non-current assets	939	1,140
Trade payables	154,811	92,628
Trade payables to related parties	(158,208)	114,579
Other payables	6,423	(51,797)
Provisions	1,300	(5,450)
Other current liabilities	3,357	8,115
Net defined benefit liabilities	(1,322)	5,951
Cash generated from operations	411,963	1,073,817
Interest received	4,523	5,971
Interest paid	(69,216)	(61,123)
Income tax paid	(46,555)	(57,763)
Net cash generated from operating activities	300,715	960,902
		(Continued)

ADLINK TECHNOLOGY INC.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars)

	2025	2024
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of financial assets at amortized cost	$ -	$ (8,942)
Proceeds from sale of financial assets at amortized cost	8,942	8,000
Proceeds from sale of financial assets at fair value through profit or loss	-	3,235
Acquisition of investments accounted for using the equity method	(11,879)	(162,612)
Proceeds from disposal of investments accounted for using the equity method	966	-
Payments for property, plant and equipment	(44,318)	(39,420)
Proceeds from disposal of property, plant and equipment	-	4
Decrease (increase) in refundable deposits	1,856	(397)
Payments for intangible assets	(51,806)	(71,620)
Increase in prepayments for equipment	(3,544)	(12,429)
Dividends received	717	430
Net cash used in investing activities	(99,066)	(283,751)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term borrowings	3,874,111	1,452,000
Repayments of short-term borrowings	(3,474,111)	(1,752,000)
Proceeds from long-term borrowings	640,000	587,000
Repayments of long-term borrowings	(823,149)	(843,197)
Repayment of the principal portion of lease liabilities	(10,295)	(11,458)
Cash dividends paid	(202,877)	(217,498)
Proceeds from the exercise of employee stock options	12,970	-
Net cash generated from (used in) financing activities	16,649	(785,153)
EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH AND CASH EQUIVALENTS HELD IN FOREIGN CURRENCIES	(4,066)	16,836
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	214,232	(91,166)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR	833,476	924,642
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	$ 1,047,708	$ 833,476

The accompanying notes are an integral part of the parent company only financial statements. (Concluded)

10 -

ADLINK TECHNOLOGY INC.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. GENERAL INFORMATION

ADLINK Technology Inc. (the "Company") was incorporated in the Republic of China (ROC) in August 1995. The Company mainly manufactures and sells hardware, software and peripheral devices of industrial computers.

The Company's shares were previously listed on the Taipei Exchange (TPEx) Mainboard from March 2002 until it became listed on the Taiwan Stock Exchange (TWSE) in November 2004.

AUO Corp held 32.84% of the voting rights on the Company as the largest and single shareholder of the Company. In June 2025, AUO Corp. participated in the Company's regular shareholders' meeting and obtained three directors and had the power to appoint Chairman of the Board of directors after resolving the re-election of directors. AUO Corp. determined that they obtained control in substance over the Company and became the Company's parent company.

The parent company only financial statements are presented in the Company's functional currency, the New Taiwan dollar (NTD).

2. APPROVAL OF FINANCIAL STATEMENTS

The parent company only financial statements were approved by the Company's board of directors on March 12, 2026.

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

a. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the "IFRS Accounting Standards") endorsed and issued into effect by the Financial Supervisory Commission (FSC)

The initial application of the IFRS Accounting Standards endorsed and issued into effect by the FSC did not have material impact on the Company's accounting policies.

b. The IFRS Accounting Standards endorsed by the FSC for application starting from 2026

New, Amended and Revised Standards and Interpretations	Effective Date Announced by IASB
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments”	January 1, 2026
Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”	January 1, 2026
Annual Improvements to IFRS Accounting Standards - Volume 11	January 1, 2026
IFRS 17 “Insurance Contracts” (including the 2020 and 2021 amendments to IFRS 17)	January 1, 2023

As of the date the financial statements were authorized for issue, the Company is continuously assessing the impact of the application of the above amendments on the Company’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.

c. The IFRS Accounting Standards in issue but not yet endorsed and issued into effect by the FSC

New, Amended and Revised Standards and Interpretations	Effective Date Announced by IASB (Note 1)
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”	To be determined by IASB
IFRS 18 “Presentation and Disclosure in Financial Statements”	January 1, 2027 (Note 2)
IFRS 19 “Subsidiaries without Public Accountability: Disclosures” (including the 2025 amendments to IFRS 19)	January 1, 2027
Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency”	January 1, 2027

Note 1: Unless stated otherwise, the above IFRS Accounting Standards are effective for annual reporting periods beginning on or after their respective effective dates.

Note 2: On September 25, 2025, the FSC announced that IFRS 18 will take effect starting from January 1, 2028. Domestic entities could elect to apply IFRS 18 for an earlier period after the endorsement of IFRS 18 by the FSC.

IFRS 18 “Presentation and Disclosure in Financial Statements” and consequential amendments

IFRS 18 will supersede IAS 1 “Presentation of Financial Statements”. The main changes comprise:

To classify items of income and expenses presented in the statement of profit or loss into the operating, investing, financing, income taxes and discontinued operations categories, the Company shall assess whether it has specified main business activities of investing in particular types of assets and providing financing to customers.
The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.
Provides guidance to enhance the requirements of aggregation and disaggregation: The Company shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Company shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Company labels items as “other” only if it cannot find a more informative label.
Disclosures on Management-defined Performance Measures (MPMs): When in public communications outside financial statements and communicating to users of financial statements management’s view of an aspect of the financial performance of the Company as a whole, the Company shall disclose related information about its MPMs in a single note to the financial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards and the income tax and non-controlling interests effects of related reconciliation items.
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In addition, the following consequential amendments have been made to IAS 7 “Statement of Cash Flows”:

The Company shall use operating profit or loss as the starting point when presenting cash flows from operating activities under the indirect method.
Interest and dividends received by the Company shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. However, if, after assessment, the Company has a specific main operating activity, it shall determine how to classify dividends received, interest received and interest paid in the statement of cash flows by referring to how it classifies dividend income, interest income and interest expense in the statement of profit or loss. The total of each of these cash flows shall be classified in a single category in the statement of cash flows.

Except for the above impact, as of the date the individual financial statements were authorized for issue, the Company is continuously assessing the other impacts of the above amended standards and interpretations on the Company’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

a. Statement of compliance

The parent company only financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

b. Basis of preparation

The parent company only financial statements have been prepared on the historical cost basis except for financial instruments measured at fair value and net defined benefit liabilities which are measured at the present value of the defined benefit obligation less the fair value of plan assets.

The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and based on the significance of the inputs to the fair value measurement in its entirety, are described as follows:

1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;
2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
3) Level 3 inputs are unobservable inputs for an asset or liability.

When preparing these parent company only financial statements, the Company used the equity method to account for its investments in subsidiaries and associates. In order for the amounts of the net profit for the year, other comprehensive income for the year and total equity in the parent company only financial statements to be the same with the amounts attributable to the owner of the Company in its consolidated parent company only financial statements, adjustments arising from the differences in accounting treatment between the standalone basis and the consolidated basis were made to investments accounted for using the equity method, the share of profit or loss of subsidiaries and associates, the share of other comprehensive income of subsidiaries and related equity items, as appropriate, in these parent company only financial statements.

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c. Classification of current and non-current assets and liabilities

Current assets include:

1) Assets held primarily for the purpose of trading;
2) Assets expected to be realized within 12 months after the reporting period; and
3) Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

Current liabilities include:

1) Liabilities held primarily for the purpose of trading;
2) Liabilities due to be settled within 12 months after the reporting period; and
3) Liabilities for which the Company does not have the substantial right at the end of the reporting period to defer settlement for at least 12 months after the reporting period.

Assets and liabilities that are not classified as current are classified as non-current.

d. Foreign currencies

In preparing the parent company only financial statements, transactions in currencies other than the entity's functional currency (i.e., foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the period in which they arise.

Non-monetary items measured at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Exchange differences arising from the retranslation of non-monetary items are included in profit or loss for the period except for exchange differences arising from the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income, in which case, the exchange differences are also recognized directly in other comprehensive income.

Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rate at the date of the transaction (i.e., not retranslated).

For the purpose of presenting parent company only financial statements, the functional currencies of the Company and the group entities (including subsidiaries and associates in other countries that use currencies different from the currency of the Company) are translated into the presentation currency, - the New Taiwan dollar, as follows: Assets and liabilities are translated at the exchange rates prevailing at the end of the reporting period; income and expense items are translated at the average exchange rates for the period. The resulting currency translation differences are recognized in other comprehensive income.

On the disposal of a foreign operation (i.e., a disposal of the Company's entire interest in a foreign operation, or a disposal involving the loss of control over a subsidiary that includes a foreign operation), all of the exchange differences accumulated in equity in respect of that operation are reclassified to profit or loss.

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In a partial disposal of a subsidiary that does not result in the Company losing control over the subsidiary, the proportionate share of accumulated exchange differences is included in the calculation of equity transactions but is not recognized in profit or loss. For all other partial disposals, the proportionate share of the accumulated exchange differences recognized in other comprehensive income is reclassified to profit or loss.

e. Inventories

Inventories consist of raw materials and supplies, work-in-process, finished goods and merchandise, which are stated at the lower of cost or net realizable value. Inventory write-downs are made by item, except where it may be appropriate to group similar or related items. The net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded at the weighted-average cost on the balance sheet date.

f. Investments accounted for using the equity method

Investments in subsidiaries and associates are accounted for using the equity method.

Under the equity method, investments in a subsidiary and associates are initially recognized at cost and adjusted thereafter to recognize the Company's share of the profit or loss and other comprehensive income of the subsidiaries and associates. The Company recognizes the changes in the Company's share of equity of subsidiaries attributable to the Company, and recognizes the changes in the Company's share of equity of associates.

1) Investment in subsidiaries

A subsidiary is an entity that is controlled by the Company.

Changes in the Company's ownership interest in a subsidiary that do not result in the Company losing control of the subsidiary are equity transactions. The Company recognizes directly in equity any difference between the carrying amount of the investment and the fair value of the consideration paid or received.

When the Company's share of losses of a subsidiary equals or exceeds its interest in that subsidiary (which includes any carrying amount of the investment in subsidiary accounted for using the equity method and long-term interests that, in substance, form part of the Company's net investment in the subsidiary), the Company continues recognizing its share of further losses.

Any excess of the cost of acquisition over the Company's share of the net fair value of the identifiable assets and liabilities of a subsidiary at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized. Any excess of the Company's share of the net fair value of the identifiable assets and liabilities over the cost of acquisition is recognized immediately in profit or loss.

When the Company loses control of a subsidiary, it recognizes the investment retained in the former subsidiary at its fair value at the date when control is lost. The difference between the fair value of the retained investment plus any consideration received and the carrying amount of previous investment at the date when control is lost is recognized as a gain or loss in profit or loss. Besides, the Company accounts for all amounts previously recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required if the Company had directly disposed of the related assets or liabilities.

Profits and losses resulting from downstream transactions are eliminated in full in the Company's financial statement. Profits and losses resulting from upstream transactions and transactions between subsidiaries are recognized in the parent company only financial statements only to the extent of interests in the subsidiaries that are not related to the Company.

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2) Investments in associates

An associate is an entity over which the Company has significant influence and which is neither a subsidiary nor an interest in a joint venture.

When the Company’s share of losses of an associate equals or exceeds its interest in that associate (which includes any carrying amount of the investment accounted for using the equity method and long-term interests that, in substance, form part of the Company’s net investment in the associate), the Company discontinues recognizing its share of further loss, if any. Additional losses and liabilities are recognized only to the extent that the Company has incurred legal obligations, or constructive obligations, or made payments on behalf of that associate.

When the Company subscribes for additional new shares of an associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Company’s proportionate interest in the associate. The Company records such a difference as an adjustment to investments with the corresponding amount charged or credited to capital surplus - changes in capital surplus from investments in associates accounted for using the equity method. If the Company’s ownership interest is reduced due to its additional subscription of the new shares of the associate, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate is reclassified to profit or loss on the same basis as would be required had the investee directly disposed of the related assets or liabilities. When the adjustment should be debited to capital surplus, but the capital surplus recognized from investments accounted for using the equity method is insufficient, the shortage is debited to retained earnings.

The Company discontinues the use of the equity method from the date on which its investment ceases to be an associate. Any retained investment is measured at fair value at that date, and the fair value is regarded as the investment’s fair value on initial recognition as a financial asset. The difference between the previous carrying amount of the associate attributable to the retained interest and its fair value is included in the determination of the gain or loss on disposal of the associate. The Company accounts for all amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would be required had that associate directly disposed of the related assets or liabilities.

When the Company transacts with its associate, profits and losses resulting from the transactions with the associate are recognized in the parent company only financial statements only to the extent interests in the associate that are not related to the Company.

g. Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment loss.

Property, plant and equipment in the course of construction are measured at cost. Cost includes professional fees. Such assets are depreciated and classified to the appropriate categories of property, plant and equipment when completed and ready for their intended use.

Except for freehold land which is not depreciated, the depreciation of property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effects of any changes in the estimates accounted for on a prospective basis.

On derecognition of an item of property, plant and equipment, the difference between the sales proceeds and the carrying amount of the asset is recognized in profit or loss.

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h. Investment properties

Investment properties are properties held to earn rental and/or for capital appreciation. Investment properties also include land held for a currently undetermined future use.

Investment properties are initially measured at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at cost less accumulated depreciation and accumulated impairment loss. Depreciation is recognized using the straight-line method.

For a transfer of classification from property, plant and equipment to investment properties, the deemed cost of an item of property for subsequent accounting is its carrying amount at the end of owner-occupation.

For a transfer of classification from the investment properties to property, plant and equipment, the deemed cost of the property, plant and equipment for subsequent accounting is its carrying amount at the commencement of owner-occupation.

On derecognition of an investment property, the difference between the net disposal proceeds and the carrying amount of the asset is included in profit or loss.

i. Intangible assets

Intangible assets (computer software) with finite useful lives that are acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment loss. Amortization is recognized on a straight-line basis. The estimated useful lives, residual values, and amortization methods are reviewed at the end of each reporting period, with the effect of any changes in the estimates accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are measured at cost less accumulated impairment loss.

On derecognition of an intangible asset, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss.

j. Financial instruments

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issuance of financial assets and financial liabilities (other than financial assets and financial liabilities at FVTPL) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognized immediately in profit or loss.

For those financial assets and financial liabilities which are measured at fair value, its fair value is determined in the manner described in Note 25.

1) Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis. The Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

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The Company’s financial assets are classified into the following categories:

a) Financial assets at FVTPL

The Company’s financial assets mandatorily classified as at FVTPL are investments in equity instruments which are not designated as at FVTOCI, it was measured at fair value, and any dividends or interest earned on such financial assets are recognized in other income and interest income, respectively; any remeasurement gains or losses on such financial assets are recognized in other gains or losses.

b) Financial assets at amortized cost

If the financial assets, which are invested by the Company, are held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding, are subsequently measured at amortized cost.

Subsequent to initial recognition, financial assets are measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss. On derecognition, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss.

Except for purchased or originated credit-impaired financial assets, for which interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of such financial assets; and financial assets that are not credit-impaired on purchase or origination but have subsequently become credit-impaired, which interest income is calculated by applying the effective interest rate to the amortized cost of such financial assets in subsequent reporting periods, interest income is calculated by applying the effective interest rate to the gross carrying amount of such a financial asset.

A financial asset is credit impaired when one or more of the following events have occurred:

i. Significant financial difficulty of the issuer or the borrower;
ii. Breach of contract, such as a default;
iii. It is becoming probable that the borrower will enter bankruptcy or undergo a financial reorganization; or
iv. The disappearance of an active market for that financial asset because of financial difficulties.

The Company’s financial assets at amortized cost include cash and cash equivalents, pledge deposits, trade receivables and project deposits at amortized cost, other receivables and refundable deposits. Cash equivalents include third-party paying accounts, which are highly liquid, readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These cash equivalents are held for the purpose of meeting short-term cash commitments.

2) Equity instruments

Equity instruments issued by the Company are recognized at the proceeds received, net of direct issue costs.

The repurchase of the Company’s own equity instruments is recognized in and deducted directly from equity. No gain or loss is recognized in profit or loss on the purchase, sale, issuance or cancellation

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of the Company’s own equity instruments.

3) Financial liabilities

Except the Financial liabilities at FVTPL, all financial liabilities are measured at amortized cost using the effective interest method.

Financial liabilities held for trading are stated at fair value, and any gains or losses on such financial liabilities are recognized in other gains or losses.

On derecognition of financial liabilities, 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.

4) Derivative financial instruments

The Company enters into foreign exchange forward contracts to manage its exposure to foreign exchange rate risks.

Derivatives are initially recognized at fair value at the date on which the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately. When the fair value of a derivative financial instrument is positive, the derivative is recognized as a financial asset; when the fair value of a derivative financial instrument is negative, the derivative is recognized as a financial liability.

k. Assessment of asset impairment

1) Property, plant and equipment, right-of-use asset, investment properties and intangible assets

At the end of each reporting period, the Company reviews the carrying amounts of the above assets, to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually and whenever there is an indication that the assets may be impaired.

The recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.

When an impairment loss is subsequently reversed, the carrying amount of the corresponding asset, cash-generating unit or assets related to contract costs is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized on the asset, cash-generating unit or assets related to contract costs in prior years. A reversal of an impairment loss is recognized in profit or loss.

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2) Investments accounted for using the equity method

The Company assesses its investment in subsidiaries for any impairment by comparing the carrying amount with the estimated recoverable amount as assessed based on the investee’s parent company only financial statements as a whole. If the recoverable amount of the investment subsequently increases, the Company recognizes a reversal of the impairment loss; the adjusted post-reversal carrying amount should not exceed the carrying amount that would have been recognized had no impairment loss been recognized in prior years. An impairment loss recognized on goodwill cannot be reversed in a subsequent period.

The entire carrying amount of an investment in associate is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is not allocated to any asset, including goodwill, that 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.

3) Financial assets

The Company assesses the impairment loss of financial assets at amortized cost (including trade receivables) by lifetime expected credit losses on each balance sheet date.

The Company always recognizes lifetime expected credit losses for trade receivables. For all other financial instruments, the Company recognizes lifetime ECLs when there has been a significant increase in credit risk since initial recognition. If the credit risk on a financial instrument has not increased significantly, the Company measures the loss allowance for that financial instrument at an amount equal to 12-month ECLs. If the credit risk on a financial instrument has increased significantly, the Company measures the loss allowance for that financial instrument at lifetime expected credit losses.

Expected credit losses reflect the weighted average of credit losses with the respective risks of default occurring as the weights. Lifetime ECLs represent the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECLs represent the portion of lifetime ECLs that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.

For internal credit risk management purposes, the Company determines that situations such as a default or delinquency in interest or principal payments, or internal or external information show that the debtor is unlikely to pay its creditors, indicates that a financial asset is in default (without taking into account any collateral held by the Company).

The impairment loss of all financial assets is recognized in profit or loss by a reduction in their carrying amounts through a loss allowance account.

Provision

Provisions are measured at the best estimate of the discounted cash flows of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

Provisions for the expected cost of warranty obligations to assure that products comply with agreed-upon specifications are recognized on the date of sale of the relevant products at the best estimate by the management of the Company of the expenditures required to settle the Company’s obligations.

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m. Revenue recognition

The Company identifies contracts with customers, allocates the transaction price to the performance obligations and recognizes revenue when performance obligations are satisfied.

Revenue from the sale of goods comes from sales of hardware, software and peripheral devices of industrial computers. Sales of the above goods are recognized as revenue when the goods are delivered to the customer’s specific location or the goods are shipped, because it is the time when the customer has full discretion over the manner of distribution and price to sell the goods, has the primary responsibility for sales to future customers and bears the risks of obsolescence. Trade receivables are recognized concurrently. The transaction price received prior to delivery of the goods is recognized as a contract liability until the goods have been transferred to the customer.

The Company does not recognize revenue on materials delivered to subcontractors because this delivery does not involve a transfer of control.

n. Leases

At the inception of a contract, the Company assesses whether the contract is, or contains, a lease.

1) The Company as lessor

Leases are classified as finance leases whenever the terms of a lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Lease payments (less any lease incentives payable) from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases.

When a lease includes both land and building elements, the Company assesses the classification of each element separately as a finance or an operating lease based on the assessment as to whether substantially all the risks and rewards incidental to ownership of each element have been transferred to the lessee. The lease payments are allocated to the land and the building elements in proportion to the relative fair values of the leasehold interests in the land element and building element of the lease at the inception of the contract. If the allocation of the lease payments can be made reliably, each element is accounted for separately in accordance with its lease classification. When the lease payments cannot be allocated reliably to the land and building elements, the entire lease is generally classified as a finance lease unless it is clear that both elements are operating leases; in which case, the entire lease is classified as an operating lease.

2) The Company as lessee

The Company recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for short-term leases and low-value asset leases accounted for applying a recognition exemption where lease payments are recognized as expenses on a straight-line basis over the lease terms. Right-of-use assets and lease liabilities are presented on a separate line in the balance sheets, respectively.

Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities. Right-of-use assets are subsequently measured at cost less accumulated depreciation and adjusted for any remeasurement of the lease liabilities.

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.

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Lease liabilities are initially measured at the present value of the lease payments, which comprise fixed payments. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the lessee’s incremental borrowing rate will be used.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term, a change in the assessment of an option to purchase an underlying asset, or a change in future lease payments resulting from a change in an index or a rate used to determine those payments, the Company remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. For a lease modification that is not accounted for as a separate lease, the Company accounts for the remeasurement of the lease liability by (a) decreasing the carrying amount of the right-of-use asset of lease modifications that decreased the scope of the lease, and recognizing in profit or loss any gain or loss on the partial or full termination of the lease; (b) making a corresponding adjustment to the right-of-use asset of all other lease modifications.

Variable lease payments that do not depend on an index or a rate are recognized as expenses in the periods in which they are incurred.

o. Employee benefits

1) Short-term employee benefits

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related services.

2) Retirement benefits

Payments to defined contribution retirement benefit plans are recognized as expenses when employees have rendered services entitling them to the contributions.

Defined benefit costs (including service cost, net interest and remeasurement) under defined benefit retirement benefit plans are determined using the projected unit credit method. Service cost (including current service cost, past service cost) and net interest on the net defined benefit liabilities (assets) are recognized as employee benefits expense in the period in which they occur or when the plan amendment or curtailment occurs. Remeasurement, comprising actuarial gains and losses, and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which it occurs. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liabilities represent the actual deficit in the Company’s defined benefit plans.

3) Termination benefits

A liability for a termination benefit is recognized at the earlier of when the Company can no longer withdraw the offer of the termination benefits and when the Company recognizes any related restructuring costs.

p. Share-based payment arrangements

The fair value at the grant date of the employee share options is expensed on a straight-line basis over the vesting period, based on the Company’s best estimates of the number of shares or options that are expected to ultimately vest, with a corresponding increase in capital surplus - employee share options. The expense is recognized in full at the grant date if the grants are vested immediately.

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At the end of each reporting period, the Company revises its estimate of the number of employee share options that are expected to vest. The impact of the revision of the original estimates is recognized in profit or loss such that the cumulative expenses reflect the revised estimate, with a corresponding adjustment to capital surplus - employee share options.

q. Taxation

Current and deferred taxes are recognized in profit or loss as income tax expense, except when they are related to items recognized in other comprehensive income or directly in equity; in which case, the current and deferred taxes are also recognized in other comprehensive income or directly in equity, respectively.

1) Current tax

Income tax payable (recoverable) is based on taxable profit (loss) for the year determined according to the applicable tax laws of tax jurisdiction.

According to the Income Tax Act in the ROC, an additional tax of unappropriated earnings is provided for as income tax in the year the shareholders approve to retain earnings.

Adjustments of prior years' tax liabilities are added to or deducted from the current year's tax provision.

2) Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences and unused tax credits for research and development expenditures to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable profit against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the assets to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period and recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liabilities are settled or the assets are realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

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5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Company’s accounting policies, management is required to make judgments, estimations and assumptions on the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

When developing material accounting estimates, the Company considers the possible impact on the cash flow projection, growth rates, discount rates, profitabilities and other relevant material estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.

Based on the assessment of the Company’s management, the accounting policies, estimates, and assumptions adopted by the Company have not been subject to material accounting judgements, estimates and assumptions uncertainty.

6. CASH AND CASH EQUIVALENTS

	December 31
	2025	2024
Cash on hand	$ 50	$ 50
Demand deposits	1,046,525	832,393
Cash equivalents
Third-party paying accounts	1,133	1,033
	$ 1,047,708	$ 833,476

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

	December 31
	2025	2024
Financial assets mandatorily classified as at FVTPL
Derivative instruments
Foreign exchange forward contracts not under hedge accounting	$ 98	$ -
Financial liabilities held for trading
Derivative instruments
Foreign exchange forward contracts not under hedge accounting	$ 13,221	$ 1,518

At the end of the reporting period, outstanding foreign exchange forward contracts not under hedge accounting were as follows:

	Currency	Maturity Date	Notional Amount (In Thousands)
December 31, 2025
Sell	EUR/NTD	January to February 2026	EUR2,800/NTD100,146
Sell	USD/NTD	January to March 2026	USD20,700/NTD639,417
(Continued)

	Currency	Maturity Date	Notional Amount (In Thousands)
December 31, 2024
Sell	USD/NTD	January to February 2025	USD5,500/NTD178,620 (Concluded)

The Company entered into foreign exchange forward contracts to manage exposures to exchange rate fluctuations of foreign currency denominated assets and liabilities. Therefore, the Company elected not to be accounted for using hedge accounting.

Refer to Table 3 for information relating to the equity instruments held by the Company were classified as financial assets at FVTPL as of December 31, 2025.

8. NOTES RECEIVABLE AND TRADE RECEIVABLES

	December 31
	2025	2024
Notes receivable
Gross carrying amount at amortized cost	$ 57	$ 9,455
Less: Allowance for impairment loss	-	-
	$ 57	$ 9,455
Trade receivables
Gross carrying amount at amortized cost	$ 600,951	$ 603,098
Less: Allowance for impairment loss	(8,680)	(8,464)
	$ 592,271	$ 594,634

The average credit period of sales of goods is 30 to 90 days. In order to minimize credit risk, the management of the Company has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Company reviews the recoverable amount of each individual trade debt at the end of the reporting period to ensure that adequate allowance is made for possible irrecoverable amounts. In this regard, the management believes the Company's credit risk was significantly reduced.

The Company applies the simplified approach to providing for expected credit losses prescribed by IFRS 9, which permits the use of lifetime expected loss provision for all trade receivables. The expected credit losses on trade receivables are estimated using a provision matrix approach considering the past default experience of the debtor and an analysis of the debtor's current financial position, adjusted for general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of economic conditions at the reporting date. As the Company's historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Company's different customer base.

The Company writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, e.g., when the debtor has been placed under liquidation, or when the trade receivables are over certain days past due, whichever occurs earlier. For trade receivables that have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

The following table details the loss allowance of trade receivables based on the Company’s provision matrix:

December 31, 2025

	Not Past Due	Less than 30 Days	31 to 90 Days	Over 91 Days	Total
Gross carrying amount	$ 583,923	$ 2,071	$ 14,619	$ 338	$ 600,951
Loss allowance	-	-	(8,342)	(338)	(8,680)
Amortized cost	$ 583,923	$ 2,071	$ 6,277	$ -	$ 592,271

December 31, 2024

	Not Past Due	Less than 30 Days	31 to 90 Days	Over 91 Days	Total
Gross carrying amount	$ 582,974	$ 1,211	$ 17,504	$ 1,409	$ 603,098
Loss allowance	-	-	(7,055)	(1,409)	(8,464)
Amortized cost	$ 582,974	$ 1,211	$ 10,449	$ -	$ 594,634

The movements of the loss allowance of trade receivables were as follows:

	For the Year Ended December 31
	2025	2024
Balance at January 1	$ 8,464	$ 12,320
Add: Net remeasurement of loss allowance	1,321	-
Less: Net reversal of loss allowance	-	(3,856)
Less: Amounts written off	(1,105)	-
Balance at December 31	$ 8,680	$ 8,464

INVENTORIES

	December 31
	2025	2024
Raw materials and supplies	$ 693,361	$ 654,369
Work in progress	328,551	197,218
Finished goods	395,230	268,914
Merchandise	164,945	99,455
	$ 1,582,087	$ 1,219,956

The cost of inventories recognized as cost of goods sold for the years ended December 31, 2025 and 2024 included inventory write-downs of $50,726 thousands and $5,025 thousands, respectively, and unallocated manufacturing expenses of $101,974 thousands and $110,555 thousands, respectively.

10. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

	December 31
	2025		2024
	Amount	Percentage of Equity Interest (%)	Amount	Percentage of Equity Interest (%)
Investments in subsidiaries (a)
ADLINK International Co., Ltd.	$ 2,028,616	100.00	$ 2,196,615	100.00
ADLINK Technology Singapore Pte Ltd.	348,336	100.00	314,084	100.00
ADLINK Technology Japan Company	108,271	100.00	105,616	100.00
ADLINK Technology Korea Ltd.	34,301	100.00	32,364	100.00
ZETTASCALE Technology Cayman Limited	39,427	100.00	68,971	100.00
ADLINK Edge Computing Limited	6,038	100.00	8,622	100.00
	2,564,989		2,726,272
Investments in associates that are not individually material (b)
FAROBOT Technology Ltd.	23,041	49.00	43,945	49.00
JY Technology (Korea)	-	-	2,106	28.16
	23,041		46,051
	$ 2,588,030		$ 2,772,323

a. Investments in subsidiaries

Refer to Note 11 to the Company's consolidated financial statements for the year ended December 31, 2025 for disclosures on the investment and disposal of subsidiaries.

Refer to Tables 6 and 7 for the details of the subsidiaries indirectly held by the Company.

b. Investments in associates that are not individually material

Aggregate information of associates that are not individually material:

	For the Year Ended December 31
	2025	2024
The Company’s share of Net loss for the year	$ (33,982)	$ (48,261)

Refer to Tables 6 and 7 for the nature of activities, principal place of business and country of incorporation of the associate.

Refer to Note 12 to the Company's consolidated financial statements for the year ended December 31, 2025 for disclosures on the investment and disposal of associates indirectly held.

In December 2025, the Company sold all of its equity interest in JY Technology (Korea) back to JY Technology (Korea) for a total consideration of NT$966 thousand (or US$30 thousand). After taking into account the foreign exchange gains and losses to be derecognized of NT$1,020 thousand, the Company recognized a net gain on disposal of investments accounted for using the equity method of NT$1,986.

In May 2025, May 2024 and December 2024, the Company subscribed for a total of 1,173 thousand shares of Farobot Technology Ltd. with the same amount of payment of US$391 thousand (approximately NT$11,879 thousand, NT$12,688 thousand and NT$12,710 thousand, respectively) at the same percentage as its existing ownership percentage. This transaction did not affect the Company's significant influence over Farobot Technology Ltd.

11. PROPERTY, PLANT AND EQUIPMENT

	Freehold Land	Buildings	Machinery and Equipment	Leasehold Improvements	Other Equipment	Property under Construction	Total
Cost
Balance at January 1, 2025	$ 2,202,003	$ 1,188,036	$ 433,422	$ 293	$ 386,033	$ -	$ 4,209,787
Additions	-	5,797	3,238	-	18,543	2,200	29,778
Disposals	-	-	(1,240)	-	(12,955)	-	(14,195)
Reclassification	-	-	59	-	-	-	59
Transfers from prepayments for equipment	-	-	-	-	2,402	-	2,402
Balance at December 31, 2025	$ 2,202,003	$ 1,193,833	$ 435,479	$ 293	$ 394,023	$ 2,200	$ 4,227,831
Accumulated depreciation
Balance at January 1, 2025	$ -	$ 216,840	$ 397,815	$ 173	$ 306,749	$ -	$ 921,577
Depreciation expense	-	68,625	11,473	90	45,838	-	126,026
Disposals	-	-	(1,239)	-	(11,079)	-	(12,318)
Balance at December 31, 2025	$ -	$ 285,465	$ 408,049	$ 263	$ 341,508	$ -	$ 1,035,285
Carrying amounts at December 31, 2025	$ 2,202,003	$ 908,368	$ 27,430	$ 30	$ 52,515	$ 2,200	$ 3,192,546
Cost
Balance at January 1, 2024	$ 2,202,003	$ 1,171,137	$ 425,992	$ 293	$ 356,111	$ -	$ 4,155,536
Additions	-	5,249	4,985	-	30,219	3,146	43,599
Disposals	-	-	(1,407)	-	(7,673)	-	(9,080)
Reclassification	-	143	3,852	-	(143)	(3,146)	706
Transfers from prepayments for equipment	-	11,507	-	-	7,519	-	19,026
Balance at December 31, 2024	$ 2,202,003	$ 1,188,036	$ 433,422	$ 293	$ 386,033	$ -	$ 4,209,787
Accumulated depreciation
Balance at January 1, 2024	$ -	$ 149,994	$ 387,145	$ 83	$ 260,748	$ -	$ 797,970
Depreciation expense	-	66,846	11,928	90	53,668	-	132,532
Disposals	-	-	(1,408)	-	(7,667)	-	(9,075)
Reclassification	-	-	150	-	-	-	150
Balance at December 31, 2024	$ -	$ 216,840	$ 397,815	$ 173	$ 306,749	$ -	$ 921,577
Carrying amounts at December 31, 2024	$ 2,202,003	$ 971,196	$ 35,607	$ 120	$ 79,284	$ -	$ 3,288,210

The above items of property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives as follows:

Building
Main buildings	50 years
Mechanical and electrical accessories	2-10 years
Decoration	2-10 years
Machinery equipment	3-8 years
Leasehold improvements	3 years
Other equipment	1-5 years

Property, plant and equipment pledged by the Company as collateral for bank borrowing facilities are set out in Note 27.

12. LEASE ARRANGEMENTS

The Company's important lease projects include lease the plants from other companies for the use of the plants and warehouses. The lease terms are 2 to 3 years. The Company does not have bargain purchase options to acquire lease items at the end of lease terms. In addition, the Company leases building and office equipment which qualify as short-term leases and low-value asset leases. The Company has elected to apply the recognition exemption and thus, did not recognize right-of-use assets and lease liabilities for these leases. Refer to the balance sheet for the balance of right-of-use assets and lease liabilities of lease arrangement as of balance sheet date.

Other significant lease related information are as follows:

	For the Year Ended December 31
	2025	2024
Additions to right-of-use assets	$ 6,732	$ 3,433
Depreciation charge for right-of-use assets	$ 10,249	$ 11,470
Expenses relating to short-term leases	$ 3,330	$ 1,327
Total cash outflow for leases	$ 13,762	$ 13,014

13. INVESTMENT PROPERTY

Except for depreciation expenses recognized, the Company did not recognize significant additions, disposal or impairment loss of investment properties for the years ended December 31, 2025 and 2024. The fair value of investment properties as of December 31, 2024, which was arrived at by reference to market evidence of transaction prices for similar properties, was approximately NT$798,492 thousands. Refer to the parent company only balance sheet for the balance as of balance sheet date, investment properties are buildings. Investment properties are depreciated on a straight-line basis over their estimated useful lives which are 50 years.

Lease commitments with lease terms commencing after the balance sheet dates are as follows:

	December 31
	2025	2024
Lease commitments of investment properties	$ 11,147	$ 55,735

Investment property pledged by the Company as collateral for bank borrowing facilities are set out in Note 27.

30 -

14. BORROWINGS

a. Short-term borrowings

	December 31
	2025	2024
Unsecured bank loans	$ 750,000	$ 350,000
Expected repayment period	2026.1-2026.11	2025.6-2025.11
Interest rate	1.88%-2.01%	1.90%

Refer to Note 25 for related information on utilized and unutilized bank loan facilities.

b. Long-term borrowings

	December 31
	2025	2024
Unsecured bank loans	$ 1,653,778	$ 1,716,927
Secured bank loans (Note 27)	1,221,400	1,341,400
Less: Current portion	(634,256)	(483,149)
	$ 2,240,922	$ 2,575,178
Expected repayment period	2027.1-2033.03	2026.11-2033.3
Interest rate	1.38%-2.30%	1.38%-2.30%

Refer to Note 25 for related information on utilized and unutilized bank loan facilities.

15. TRADE PAYABLES

Trade payables are generated from operating activities. The average credit period for purchase of certain goods is 60 days. The Company has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms.

16. OTHER PAYABLES

	December 31
	2025	2024
Salaries and bonuses	$ 264,963	$ 281,553
Compensation to employees	57,569	9,459
Annual leave	15,784	13,660
Others	143,047	183,670
	$ 481,363	$ 488,342

17. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

The Company adopted a pension plan under the Labor Pension Act (LPA), which is a state-managed defined contribution plan. Under the LPA, the Company makes monthly contributions to employees' individual pension accounts at 6% of monthly salaries and wages.

b. Defined benefit plans

The defined benefit plan adopted by the Company in accordance with the Labor Standards Act is operated by the government of the ROC. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the 6 months before retirement. The Company contributes amounts equal to 2% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee's name. Before the end of each year, the Company assesses the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Company is required to fund the difference in one appropriation that should be made before the end of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (the "Bureau"); the Company has no right to influence the investment policy and strategy.

The amounts included in the parent company only balance sheets in respect of the Company's defined benefit plans are as follows:

	December 31
	2025	2024
Present value of defined benefit obligation	$ 75,383	$ 90,104
Fair value of plan assets	(64,024)	(73,570)
Net defined benefit liabilities	$ 11,359	$ 16,534

Movements in net defined benefit liabilities were as follows:

	Present Value of the Defined Benefit Obligation	Fair Value of the Plan Assets	Net Defined Benefit Liabilities
Balance at January 1, 2025	$ 90,104	$ (73,570)	$ 16,534
Current service cost	1,139	-	1,139
Loss (gain) on settlements	(1,253)	-	(1,253)
Net interest expense (income)	1,457	(1,200)	257
Recognized in profit or loss	1,343	(1,200)	143
Remeasurement
Return on plan assets (excluding amounts included in net interest)	-	(4,914)	(4,914)
Actuarial gain
Changes in demographic assumptions	1,047	-	1,047
Changes in financial assumptions	1,973	-	1,973
Experience adjustments	(1,959)	-	(1,959)
Recognized in other comprehensive income (loss)	1,061	(4,914)	(3,853)
			(Continued)

32 -

	Present Value of the Defined Benefit Obligation	Fair Value of the Plan Assets	Net Defined Benefit Liabilities
Contributions from the employer	$ -	$ (1,465)	$ (1,465)
Benefits paid	(17,125)	17,125	-
Balance at December 31, 2025	$ 75,383	$ (64,024)	$ 11,359
Balance at January 1, 2024	$ 89,451	$ (65,365)	$ 24,086
Current service cost	804	-	804
Past service cost	6,510	-	6,510
Net interest expense (income)	1,060	(782)	278
Recognized in profit or loss	8,374	(782)	7,592
Remeasurement
Return on plan assets (excluding amounts included in net interest)	-	(5,782)	(5,782)
Actuarial gain
Changes in demographic assumptions	(339)	-	(339)
Changes in financial assumptions	(3,071)	-	(3,071)
Experience adjustments	(4,311)	-	(4,311)
Recognized in other comprehensive income (loss)	(7,721)	(5,782)	(13,503)
Contributions from the employer	-	(1,641)	(1,641)
Balance at December 31, 2024	$ 90,104	$ (73,570)	$ 16,534

(Concluded)

Through the defined benefit plans under the Labor Standards Act, the Company is exposed to the following risks:

1) Investment risk: The plan assets are invested in domestic and foreign equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the Bureau or under the mandated management. However, in accordance with relevant regulations, the return generated by plan assets shall not be below the interest rate for a 2-year time deposit with local banks.

2) Interest risk: A decrease in the government bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plans' debt investments.

3) Salary risk: The present value of the defined benefit obligation is calculated using the future salaries of plan participants. As such, an increase in the salaries of the plan participants will increase the present value of the defined benefit obligation.

The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The significant assumptions used for the purposes of the actuarial valuations are as follows:

	December 31
	2025	2024
Discount rate(s)	1.40%	1.65%
Expected rate(s) of salary increase	3.80%	3.80%

If possible reasonable changes in each of the significant actuarial assumptions occur and all other assumptions remain constant, the present value of the defined benefit obligation would increase (decrease) as follows:

	December 31
	2025	2024
Discount rate(s)
0.25% increase	$ (1,686)	$ (1,901)
0.25% decrease	$ 1,756	$ 1,971
Expected rate(s) of salary increase
0.25% increase	$ 1,710	$ 1,925
0.25% decrease	$ (1,651)	$ (1,867)

The above sensitivity analysis may not be representative of the actual changes in the present value of the defined benefit obligation as it is unlikely that changes in assumptions will occur in isolation of one another as some of the assumptions may be correlated.

	December 31
	2025	2024
Expected contributions to the plan for the next year	$ 1,359	$ 1,907
Average duration of the defined benefit obligation	9.2 years	8.7 years

18. EQUITY

a. Ordinary shares

	December 31
	2025	2024
Number of shares authorized (in thousands)	280,000	280,000
Shares authorized	$ 2,800,000	$ 2,800,000
Number of shares issued and fully paid (in thousands)	217,724	217,497
Shares issued	$ 2,177,243	$ 2,174,973

Fully paid ordinary shares, which have a par value of $10, carry one vote per share and carry a right to dividends.

A total of 20,000 thousand shares of the Company's authorized shares were reserved for the issuance of employee share options.

The changes in the Company's share capital for the year ended December 31, 2025, was attributable to the issuance of ordinary shares upon the exercise of employee stock options. Among these, 129 thousand shares had not yet been registered with the Ministry of Economic Affairs before the date of approval of issuance of the consolidated financial statements.

As of December 31, 2025, the number of ordinary shares issued through private placements, has not yet been applied to be listed, was 14,708 thousand shares.

b. Capital surplus

	December 31
	2025	2024
May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (1)
Issuance of ordinary shares	$ 577,582	$ 566,881
Conversion of bonds	207,034	207,034
Arising from employee restricted shares vested	97,689	97,689
Arising from employee share options exercised	46,753	43,453
Treasury share transactions	17,579	17,579
Arising from employee share options expired	12,805	12,073
May be used to offset a deficit only
Changes in percentage of ownership interests in subsidiaries and associates (2)	308,018	322,445
May not be used for any purpose
Employee share options	54,276	22,953
	$ 1,321,736	$ 1,290,107

1) Such capital surplus may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Company's capital surplus and once a year).
2) Such capital surplus arises from changes in capital surplus of subsidiaries and associates accounted for using the equity method.

c. Retained earnings and dividend policy

Under the dividends policy as set forth in the Company's Articles of Incorporation (the "Articles"), where the Company made post-tax profit for the period and other profit or loss items adjusted to the current year's undistributed earnings other than post-tax profit for the period in a fiscal year, the profit shall be first utilized for offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit unless the total legal reserve accumulated has already reached the amount of the Company's authorized capital. When a special reserve is appropriated from the prior unappropriated earnings for cumulative net debit balance reserves from prior period, the sum of net profit for the current period and items other than net profit that are included directly in the unappropriated earnings for the current period shall be used if the prior unappropriated earnings is not sufficient, setting aside or reversing special reserve in accordance with the laws and regulations, and then any remaining profit together with any undistributed retained earnings, which should be resolved in the shareholders' meeting for distribution of dividends and bonuses to shareholders. The distributable dividends and bonuses, capital surplus or legal reserve in whole or in part may be paid in cash after a resolution has been adopted by a majority vote at a meeting of the board of directors attended by two-thirds of the total number of directors; in addition, a report of such distribution shall be submitted to the shareholders' meeting, and then resolutions adopted by the shareholders' meeting of the above dividends policy are not required. For the Company's policies on distribution of employees' compensation and remuneration of directors, refer to "Employees' compensation and remuneration of directors" in Note 20-f.

The Articles stipulate that the Company adopts a residual dividend policy. After setting aside amounts based on the Company's capital budget plan, the residual profits shall be distributed as cash dividends. The Articles also prescribe that distribution of cash dividends shall not be less than 10% of total dividends.

An appropriation of earnings to a legal reserve shall be made until the legal reserve equals the Company's paid-in capital. The legal reserve may be used to offset deficit. If the Company has no deficit and the legal reserve has exceeded 25% of the Company's paid-in capital, the excess may be transferred to capital or distributed in cash.

Items referred to under Rule No. 1090150022, issued by the FSC and the directive titled "Questions and Answers for Special Reserves Appropriated Following Adoption of IFRS Accounting Standards" should be appropriated to or reversed from a special reserve by the Company.

The appropriations of earnings for 2024 and 2023 were as follows:

	Appropriation of Earnings
	For the Year Ended December 31
	2024	2023
Legal reserve	$ 6,171	$ 33,390
(Reversal of) special reserve	$ (147,345)	$ 8,844
Cash dividends	$ 202,877	$ 217,498
Cash dividends per share (NT$)	$ 0.93	$ 1.00

The above 2024 and 2023 appropriations for cash dividends were resolved by the Company's board of directors on March 6, 2025 and March 7, 2024, respectively; the other proposed appropriations were resolved by the shareholders in their meetings on June 20, 2025 and June 19, 2024, respectively.

The appropriations of earnings for 2025 were proposed by the Company's board of directors. The appropriation and dividends per share were as follows:

	Appropriation of Earnings	Dividend Per Share (NT$)
Legal reserve	$ 50,422
Special reserve	107,697
Cash dividends	261,114	$ 1.20

The above appropriation for cash dividends has been resolved by the Company's board of directors; the other proposed appropriations will be resolved by the shareholders in their meeting to be held on June 18, 2026.

35 -

d. Other equity items

	Exchange Differences on Translation of the Financial Statements of Foreign Operations	Unrealized Valuation Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income
For the year ended December 31, 2025
Balance at January 1	$ (23,858)	$ 15,050
Exchange differences on translation of the financial statements of foreign operations	(142,902)	-
Share from the disposal of associates accounted for using the equity method	(1,020)	-
Cumulative unrealized gain (loss) of equity instruments transferred to retained earnings due to disposal	-	10,363
Unrealized gain (loss) on equity instruments	-	(2,922)
Related income tax	28,784	-
Balance at December 31	$ (138,996)	$ 22,491
For the year ended December 31, 2024
Balance at January 1	$ (163,734)	$ 7,581
Exchange differences on translation of the financial statements of foreign operations	174,845	-
Unrealized gain (loss) on equity instruments	-	7,469
Related income tax	(34,969)	-
Balance at December 31	$ (23,858)	$ 15,050

19. REVENUE

All revenue comes from sale of goods. Refer to Note 4 for the information of contracts with customers. Except for trade receivables, the balance of contract liabilities at the end of reporting period and the information of contracts with customers for the years ended December 31, 2025 and 2024, respectively, were as follows:

a. Contract information

	For the Year Ended December 31
	2025	2024
Computer-On-Modules	$ 3,124,998	$ 2,123,955
Edge Visualization	1,746,121	1,323,682
DMS Rugged Computing	1,171,412	835,113
Edge Computing Platforms	1,001,142	909,751
IoT Solutions and Technology	898,584	925,141
Others	208,588	548,728
	$ 8,150,845	$ 6,666,370

b. Contract balances

	December 31
	2025	2024
Contract liabilities (reported as other current liabilities)
Sale of goods	$ 54,458	$ 51,841

The changes in the balance of contract liabilities primarily result from the timing difference between the Company's satisfaction of performance obligations and the respective customer's payment.

20. NET PROFIT FOR THE YEAR

a. Other income

	For the Year Ended December 31
	2025	2024
Rental income (Note 26)	$ 46,747	$ 46,654
Procurement service revenue (Note 26)	7,906	244
Grant revenue	11	6,111
Others	14,189	19,948
	$ 68,853	$ 72,957

b. Other gains and losses

	For the Year Ended December 31
	2025	2024
Net loss of financial assets and liabilities at fair value through profit or loss (Note 26)	$ (11,605)	$ (7,044)
Loss on disposal of property, plant and equipment	(1,877)	(1)
Net foreign exchange gains (Note 29)	1,056	46,299
Others	(15,856)	(3,456)
	$ (28,282)	$ 35,798

c. Finance costs

	For the Year Ended December 31
	2025	2024
Interest on bank loans	$ 69,780	$ 60,443
Interest on lease liabilities	137	232
	$ 69,917	$ 60,675

d. Depreciation and amortization

	For the Year Ended December 31
	2025	2024
An analysis of depreciation by function
Cost of goods sold	$ 47,588	$ 49,938
Operating expenses	88,687	99,016
Other gains and losses	4,951	-
	$ 141,226	$ 148,954
An analysis of amortization by function
Cost of goods sold	$ 5,021	$ 4,350
Operating expenses	71,564	70,024
	$ 76,585	$ 74,374

e. Employee benefits expense

	For the Year Ended December 31
	2025			2024
	Operating Costs	Operating Expenses	Total	Operating Costs	Operating Expenses	Total
Short-term benefits
Salary expenses	$ 306,157	$ 979,772	$ 1,285,929	$ 280,351	$ 983,622	$ 1,263,973
Insurance expenses	26,871	70,638	97,509	26,071	74,559	100,630
Remuneration of directors	-	11,466	11,466	-	6,591	6,591
	333,028	1,061,876	1,394,904	306,422	1,064,772	1,371,194
Retirement benefits
Defined contribution plans	10,257	41,816	52,073	10,278	44,377	54,655
Defined benefit plans	-	143	143	6,510	1,082	7,592
	10,257	41,959	52,216	16,788	45,459	62,247
Equity-settled share-based payments (Note 23)	-	35,356	35,356	-	16,030	16,030
Other employee benefits	19,103	38,848	57,951	17,729	38,180	55,909
Total employee benefits expense	$ 362,388	$ 1,178,039	$ 1,540,427	$ 340,939	$ 1,164,441	$ 1,505,380

As of December 31, 2025 and 2024, the Company's average number of employees was 1,052 and 1,059 employees, respectively, among which 7 and 8 directors were not concurrently serving as employees of the Company in 2025 and 2024, respectively. The basis of the above calculations was the same as the basis used in the calculation of employee benefits expense.

As of December 31, 2025 and 2024, the average employee benefit expenses were $1,463 thousands and $1,426 thousands, respectively; average salary expenses were $1,264 thousands and $1,218 thousands, respectively. The change in average salary expense was 3.8%.

The Company's compensation policy of the remuneration of directors and supervisors, managers and employees are as follows:

Remuneration of directors

In accordance with Article 26 of the Company's Articles of Incorporation, no more than 3% of the Company's annual net income before tax shall be allocated as remuneration of directors. The distribution of directors' remuneration is determined based on the weighting of their position. Similarly, directors' compensation by a base amount is added on the weighting of their position, and is disbursed on a quarterly basis. In addition, an attendance subsidy is provided for directors and members of functional committees, with a transportation allowance of NT$10,000 per meeting per person.

Salary of managers and staffs

In accordance with Article 26 of the Company's Articles of Incorporation, the Company accrues employees' compensation at rates from 3% to 20% of the Company's annual net income before tax. The Company has established the Regulations Incentives for Staffs, and he/she shall be paid a fixed monthly salary based on the pay standards for similar positions in the industry. Any proposal to change employee bonus shall be made according to the Company's operational performance for the current year and by taking individual performance appraisal into consideration.

f. Employees' compensation and remuneration of directors

According to the Articles of Incorporation of the Company, the Company accrued employees' compensation and remuneration of directors at the rates from 3% to 20% and no higher than 3%, respectively, of net profit before income tax, employees' compensation, and remuneration of directors. In accordance with the amendments to the Securities and Exchange Act in August 2024, the shareholders of the Company resolved the amendments to the Company's Articles of Incorporation at their 2025 regular meeting. The amendments explicitly stipulate which is based on the above compensation of employees at the rate no lower than 10% as compensation distributions for non-executive employees. The compensation of employees (including non-executive employees) and the remuneration of directors for the years ended December 31, 2025 and 2024, which were approved by the Company's board of directors are as follows:

	For the Year Ended December 31
	2025		2024
	Cash	Accrual Rate (%)	Cash	Accrual Rate (%)
Employees' compensation	$ 56,310	8.21	$ 9,459	17.50
Remuneration of directors	5,480	0.80	541	1.00

If there is a change in the amounts after the annual parent company only financial statements are authorized for issue, the differences are recorded as a change in accounting estimate.

There is no difference between the actual amounts of employees' compensation and remuneration of directors paid and the amounts recognized in the parent company only financial statements for the years ended December 31, 2024 and 2023.

Information on the employees' compensation and remuneration of directors resolved by the Company's board of directors is available at the Market Observation Post System website of the Taiwan Stock Exchange.

INCOME TAXES

a. Major components of income tax expense (benefit) recognized in profit or loss

	For the Year Ended December 31
	2025	2024
Current tax
In respect of the current year	$ 123,459	$ 46,060
Adjustments for prior years	(12,037)	(15,620)
	111,422	30,440
Deferred tax
In respect of the current year	1,462	(37,285)
Income tax expense (benefit) recognized in profit or loss	$ 112,884	$ (6,845)

A reconciliation of accounting profit and income tax expense (benefit) is as follows:

	For the Year Ended December 31
	2025	2024
Profit before tax	$ 624,391	$ 44,055
Income tax expense calculated at the statutory rate	$ 124,878	$ 8,811
Nondeductible expenses in determining taxable income	186	50
Tax-exempt income	(143)	(86)
Adjustments for prior years’ tax	(12,037)	(15,620)
Income tax expense (benefit) recognized in profit or loss	$ 112,884	$ (6,845)

b. Income tax recognized in other comprehensive income

	For the Year Ended December 31
	2025	2024
Deferred tax in respect of the current year
Translation of foreign operations	$ 28,784	$ (34,969)
Remeasurement of defined benefit plans	(771)	(2,700)
Income tax recognized in other comprehensive income	$ 28,013	$ (37,669)

c. Deferred tax assets and liabilities

For the year ended December 31, 2025

	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Closing Balance
Deferred tax assets
Temporary differences
Unrealized intercompany gains	$ 19,835	$ 248	$ -	$ 20,083
Defined benefit obligation	3,307	(264)	(771)	2,272
Allowance for write-down of inventories	18,669	2,379	-	21,048
Foreign investment loss	62,676	4,898	-	67,574
Exchange differences on translation of the financial statements of foreign operations	5,918	-	28,784	34,702
Invested company impairment loss	82,227	-	-	82,227
Others	11,947	2,581	-	14,528
	$ 204,579	$ 9,842	$ 28,013	$ 242,434
Deferred tax liabilities
Temporary differences
Unrealized exchange gains	$ 4,863	$ 11,304	$ -	$ 16,167

For the year ended December 31, 2024

	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Closing Balance
Deferred tax assets
Temporary differences
Unrealized intercompany gains	$ 18,693	$ 1,142	$ -	$ 19,835
Defined benefit obligation	4,817	1,190	(2,700)	3,307
Allowance for write-down of inventories	23,197	(4,528)	-	18,669
Foreign investment loss	20,079	42,597	-	62,676
Exchange differences on translation of the financial statements of foreign operations	40,887	-	(34,969)	5,918
Invested company impairment loss	83,801	(1,574)	-	82,227
Others	12,733	(786)	-	11,947
	$ 204,207	$ 38,041	$ (37,669)	$ 204,579
Deferred tax liabilities
Temporary differences
Unrealized exchange gains	$ 2,355	$ 2,508	$ -	$ 4,863
Others	1,752	(1,752)	-	-
	$ 4,107	$ 756	$ -	$ 4,863

d. Income tax assessments

The Company’s income tax returns through 2023 have been assessed by the tax authorities.

22. EARNINGS PER SHARE

The earnings and weighted average number of ordinary shares outstanding used in the computation of earnings per share are as follows:

Net Profit for the Year

	For the Year Ended December 31
	2025	2024
Earnings used in the computation of basic and diluted earnings per share	$ 511,507	$ 50,900

(In Thousands of Shares)

	For the Year Ended December 31
	2025	2024
Weighted average number of ordinary shares used in the computation of basic earnings per share	217,553	217,497
Effect of potentially dilutive ordinary shares:
Employees’ compensation	911	241
Employee share options	203	139
Weighted average number of ordinary shares used in the computation of diluted earnings per share	218,667	217,877

The Company may settle compensation or bonuses paid to employees in cash or shares; therefore, the Company assumes that the entire amount of the compensation or bonuses will be settled in shares, and the resulting potentially dilutive shares will be included in the weighted average number of shares outstanding used in the computation of diluted earnings per share. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

23. EMPLOYEE SHARE OPTION PLAN

As of December 31, 2025, qualified employees of the Company were granted 5,000 options. Each option entitles the holder to subscribe for one thousand ordinary shares of the Company. The options granted are valid for 6 years and exercisable at 100% after the second anniversary year from the grant date. Based on each grant date, information on the number of options granted and exercise prices was as follows:

	Grant Date
	March 18, 2025	September 18, 2024	May 2, 2023
Number of options granted	1,368	2,198	1,434
Exercise price per share granted (equal to the closing price of the Company’s ordinary shares listed on the TWSE on the grant date) (NT$)	$ 84.40	$ 67.40	$ 60.80
Exercise price per share as of independent auditors’ review report date (revised in accordance with relevant regulations) (NT$)	83.19	66.44	57.14

Information on options granted for the years ended December 31, 2025 and 2024 was as follows:

a. Movements of the number of options and the related price were as follows:

	For the Year Ended December 31, 2025
	2025		2024
	Number of Options (In Thousands of Units)	Weighted-average Exercise Price (NT$)	Number of Options (In Thousands of Units)	Weighted-average Exercise Price (NT$)
Balance at January 1	3,632	$ 63.68	1,434	$ 58.71
Options granted	1,368	83.19	2,198	67.40
Options exercised	(227)	57.14	-	-
Options expired	(87)	66.44	-	-
Balance at December 31	4,686	69.38	3,632	63.97
Options exercisable, end of the period	1,207	57.14	-
Weighted-average fair value of options granted (NT$)	$ 24.22		$ 17.58

b. Information on outstanding options at the end of the reporting period was as follows:

	December 31
	2025	2024
Range of exercise price (NT$)	$57.14-$83.19	$57.97/$67.40
Weighted-average remaining contractual life (in years)	0.65	1.18

The fair value of options granted were priced using the Black-Scholes pricing model and the inputs to the model on the grant date were as follows:

	March 18, 2025	September 18, 2024	May 2, 2023
Grant-date share price (NT$)	$ 84.40	$ 67.40	$ 60.08
Exercise price (NT$)	$ 84.40	$ 67.40	$ 60.08
Expected volatility (%)	33.73	33.26	30.24
Expected life (in years)	4	4	4
Risk-free interest rate (%)	1.53	1.38	1.09

The compensation costs from employee share options were $35,356 thousand and $16,030 thousand for the years ended December 31, 2025 and 2024, respectively.

24. CAPITAL MANAGEMENT

The Company manages its capital to ensure that entities in the Company will be able to continue as going concerns while maximizing the return to stakeholders through the optimization of the debt and total assets balance. The Company's overall strategy is expected to remain unchanged for the year ahead.

Key management personnel of the Company review the capital structure on a quarterly basis. As part of this review, the key management personnel consider the cost of capital and the risks associated with each class of capital. Based on recommendations of the key management personnel, in order to balance the overall capital structure, the Company may adjust the amount of dividends paid to shareholders, the number of new shares, and the amount of new debt issued.

The Company review the capital structure and component on basis of related amount in its consolidated financial statements. Refer to related information of the Company in its consolidated financial statements.

25. FINANCIAL INSTRUMENTS

a. Fair value of financial instruments not measured at fair value

Management considers that the carrying amounts of the financial instruments recognized in the parent company only financial statements approximate their fair values.

b. Fair value of financial instruments measured at fair value on a recurring basis

1) Fair value hierarchy

The Company measured foreign exchange forward contracts at fair value under Level 2.

There was no transfers between Levels 1 and 2 for the years ended December 31, 2025 and 2024.

2) Valuation techniques and inputs applied for Level 2 fair value measurement

Foreign exchange forward contracts measured at discounted cash flows basis, which are estimated based on observable forward exchange rates at the end of the reporting period and contract forward rates, discounted at a rate that reflects the credit risk of various counterparties.

c. Categories of financial instruments

	December 31
	2025	2024
Financial assets
Financial assets at FVTPL	$ 98	$ -
Financial assets at amortized cost (1)	3,398,951	3,009,298
Financial liabilities
Financial liabilities at FVTPL	13,221	1,518
Financial liabilities at amortized cost (2)	5,453,061	5,286,794

1) The balances include financial assets at amortized cost, which comprise cash and cash equivalents, project deposits, notes receivable, trade and other receivables (including related parties) and refundable deposits.

2) The balances include financial liabilities measured at amortized cost, which comprise short-term borrowings, trade and other payables (including related parties), long-term borrowings (including current portion) and guarantee deposits received (classified as other current liabilities).

44 -

d. Financial risk management objectives and policies

The Company’s major financial instruments include trade receivables, trade payables and borrowings. The Company’s Corporate Treasury function provides services to the business, coordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Company through internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk (including foreign currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

1) Market risk

The Company’s activities exposed it primarily to the financial risks of changes in foreign currency exchange rates and interest rates.

There has been no change to the Company’s exposure to market risks or the manner in which these risks were managed and measured.

a) Foreign currency risk

The Company had sales and purchases denominated in foreign currency, which exposed the Company to foreign currency risk. Based on the approval range of policy, the Company managed the partial of foreign currency risk through foreign exchange forward contracts.

The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities are set out in Note 29.

Sensitivity analysis

The Company was mainly exposed to the USD, CNY and EUR.

The Company’s sensitivity of 1% is used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis included only outstanding foreign currency denominated monetary items and adjusts their translation at the end of the reporting period for a 1% change in foreign currency rates.

A positive number below indicates an increase in pre-tax profit that would result if the New Taiwan dollar (the functional currency) weakened 1% against the relevant currency. For a 1% strengthening of the New Taiwan dollar against the relevant currency, there would be an equal and opposite impact on pre-tax profit and the balances below would be negative.

	For the Year Ended December 31
	2025	2024
USD impact	$ 13,020	$ 9,356
CNY impact	1,742	3,381
EUR impact	6,583	2,761

The impact listed above was mainly attributable to the exposure on outstanding USD, CNY and EUR deposits, receivables, and payables.

b) Interest rate risk

The Company was exposed to interest rate risk because the Company borrowed funds at both fixed and floating interest rates.

45 -

The carrying amounts of the Company’s financial assets and financial liabilities with exposure to interest rates at the end of the reporting period were as follows:

	December 31
	2025	2024
Fair value interest rate risk
Financial liabilities	$ 107,944	$ 365,475
Cash flow interest rate risk
Financial assets	1,046,525	841,335
Financial liabilities	3,525,178	3,058,327

Sensitivity analysis

The sensitivity analysis below was determined based on the Company’s exposure to interest rates for non-derivative instruments at the end of the reporting period. For floating rate assets and liabilities, the analysis was prepared assuming the amount of each asset and liability outstanding at the end of the reporting period was outstanding for the whole year. A 50 basis point increase or decrease was used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

If interest rates had been 50 basis points higher/lower and all other variables were held constant, the Company’s pre-tax profit for the years ended December 31, 2025 and 2024 would have decreased/increased by $12,393 thousands and $11,085 thousands, respectively.

2) Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. As at the end of the reporting period, the Company’s maximum exposure to credit risk, which would cause a financial loss to the Company due to failure of counterparties to discharge an obligation, could arise from the carrying amount of the respective recognized financial assets as stated in the parent company only balance sheets.

The Company adopted a policy of only dealing with creditworthy counterparties. Before accepting new customers, the Company evaluated the potential customer’s credit quality through internal credit reporting and sales management department to determine credit limits. Credit limits and rating will be re-evaluated regularly every year.

In addition, the Company reviews the recoverable amount of each individual trade debt at the end of the year to ensure that adequate allowance is made for possible irrecoverable amounts.

The Company’s concentration of credit risk of 50% and 44% of total trade receivables as of December 31, 2025 and 2024, respectively, was attributable to the Company’s the three largest customers (non-related parties). However, the Company considered credit risk is not significant because the above customers were the listed companies in domestic and foreign.

3) Liquidity risk

The Company manages liquidity risk by monitoring and maintaining a level of cash deemed adequate to finance the Company’s operations and mitigate the effects of fluctuations in cash flows. In addition, management monitors the utilization of bank borrowings and ensures compliance with loan covenants.

The Company relies on bank borrowings as a significant source of liquidity. As of December 31, 2025 and 2024, the Company had available unutilized bank facilities as set out in (b) below.

a) Liquidity and interest rate risk table for non-derivative financial liabilities

The following table details the Company's remaining contractual maturities for its non-derivative financial liabilities with agreed repayment periods. The table has been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Company can be required to pay. Specifically, bank loans with a repayment on demand clause were included in the earliest time band regardless of the probability of the banks choosing to exercise their rights. The maturity dates for other non-derivative financial liabilities were based on the agreed repayment dates.

December 31, 2025

	Less than 1 Year	1-3 Year	3+ Years
Non-interest bearing liabilities	$ 1,827,883	$ -	$ -
Variable interest rate liabilities	1,340,500	1,426,700	925,372
Fixed interest rate liabilities	100,171	-	-
Lease liabilities	7,720	273	-
	$ 3,276,274	$ 1,426,973	$ 925,372

December 31, 2024

	Less than 1 Year	1-3 Year	3+ Years
Non-interest bearing liabilities	$ 1,878,467	$ -	$ -
Variable interest rate liabilities	534,426	1,451,333	1,264,802
Fixed interest rate liabilities	354,353	-	-
Lease liabilities	9,539	6,085	-
	$ 2,776,785	$ 1,457,418	$ 1,264,802

b) Financing facilities

	December 31
	2025	2024
Unsecured bank facilities:
Amount used	$ 2,403,778	$ 2,066,927
Amount unused	3,209,935	3,483,108
	$ 5,613,713	$ 5,550,035
Secured bank facilities:
Amount used	$ 1,221,400	$ 1,341,400
Amount unused	-	-
	$ 1,221,400	$ 1,341,400

48 -

26. TRANSACTIONS WITH RELATED PARTIES

Besides information disclosed elsewhere in the other notes, details of transactions between the Company and other related parties are disclosed below.

a. Related party name and relationship

Related Party Name	Related Party Category
Chroma ATE Inc.	Investor with significant influence over the Company (Note 1)
AUO Corp.	Parent company (Note 2)
Testar Electronics Corporation.	Subsidiary of investor with significant influence over the Company (Note 1)
Adivic Technology Co., Ltd.	Subsidiary of investor with significant influence over the Company (Note 1)
Darwin Precisions Corp.	Fellow subsidiary (Note 3)
Edgetech Data Technologies (Suzhou) Corp., Ltd.	Fellow subsidiary (Note 3)
AUO Display Plus Corporation	Fellow subsidiary (Note 3)
AUO Envirotech Inc	Fellow subsidiary (Notes 3 and 6)
AUO Digitech Taiwan Inc	Fellow subsidiary (Notes 3 and 6)
AUO Optoelectronics (Suzhou) Co., Ltd.	Fellow subsidiary (Note 3)
Space Money Inc.	Fellow subsidiary (Note 3)
ADLINK Technology (China) Co., Ltd.	Subsidiary
Dongguan Lingyao Electronic Technology Co., Ltd.	Subsidiary
ADLINK Technology Singapore Pte Ltd.	Subsidiary
ADLINK Technology India Private Limited	Subsidiary
Shanghai ADLINK Intelligence Technology Co., Ltd.	Subsidiary
ADLINK Technology Japan Company	Subsidiary
ADLINK Technology Korea Ltd.	Subsidiary
ZETTASCALE Technology Cayman Limited	Subsidiary
ADLINK Edge Computing Limited	Subsidiary
Ampro ADLINK Technology Inc.	Subsidiary
ADLINK Technology GmbH	Subsidiary
ZETTASCALE Technology Limited	Subsidiary
JY Technology (Korea)	Associate (Note 8)
JY Technology (Shanghai)	Associate (Note 4)
FAROBOT Inc.	Associate
FAROBOT Technology Ltd.	Associate
ADLINK Education Foundation	Other related party (Note 7)
Zenitron Company	Other related party (Note 1)
AutoCore Technology (Nanjing) Co., Ltd.	Other related party
eeWare SAS	Other related party (Note 5)

Note 1: Due to the re-election of directors, the entity has not served as a director of the company and has been considered a non-related party in June 2025.

Note 2: Due to the re-election of directors, the entity became a parent company from investor with significant influence over the Company in June 2025.

Note 3: Due to the re-election of directors, the entity became a fellow subsidiary from subsidiary of investor with significant influence over the Company in June 2025.

Note 4: The Company changed its status from an associate to an other related party in March 2025.

Note 5: The Company has not served as a director of its company and has been considered a non-related party since May 2024.

Note 6: AUO Envirotech Inc., as the surviving entity, completed its merger with AUO Digitech Taiwan Inc. in September 2025. AUO Digitech Taiwan Inc. was dissolved following the organizational restructuring.

Note 7: Following the re-election of the board of directors, the entity has been classified as an other related party since the end of June 2025 due to its appointment as a corporate director of the Company.

Note 8: Due to the sale of all equity interests, the entity has been classified as a non-related party since the end of December 2025.

b. Sales of goods

Related Party Category/Name	For the Year Ended December 31
	2025	2024
Subsidiaries
Ampro ADLINK Technology Inc.	$ 2,427,194	$ 1,825,989
ADLINK Technology GmbH	1,412,639	1,304,654
ADLINK Technology Japan Company	540,334	-
Others	539,857	1,073,007
	4,920,024	4,203,650
Parent company	12,745	-
Fellow subsidiary	3,076	-
Investors with significant influence over the Company	19,402	68,645
Subsidiaries of investors with significant influence over the Company	1,592	4,848
Associates	5,594	50,397
	$ 4,962,433	$ 4,327,540

c. Purchases of goods

Related Party Category/Name	For the Year Ended December 31
	2025	2024
Subsidiaries
ADLINK Technology (China) Co., Ltd.	$ 1,053,823	$ 1,247,627
Dongguan Lingyao Electronic Technology Co., Ltd.	74,096	37,742
Others	6,649	35,098
	1,134,568	1,320,467
Fellow subsidiary	12,261	-
Investors with significant influence over the Company	270	312
Subsidiaries of investors with significant influence over the Company	15,101	15,658
Others	3,543	7,189
Associates	51	3,519
	$ 1,165,794	$ 1,347,145

d. Receivables from related parties

Line Item	Related Party Category/Name	December 31
		2025	2024
Trade receivables	Subsidiaries
	ADLINK Technology GmbH	$ 809,326	$ 714,915
	Ampro ADLINK Technology Inc.	526,499	315,863
	ADLINK Technology Japan Company	137,715	95,931
	ADLINK Technology (China) Co., Ltd.	87,369	211,973
	Others	135,110	127,653
		1,696,019	1,466,335
	Parent company	9,099	-
	Fellow subsidiary	1,052	-
	Investors with significant influence over the Company	-	12,749
	Subsidiaries of investors with significant influence over the Company	-	1,105
	Associates	9	28,100
		$ 1,706,179	$ 1,508,289
Other receivables	Subsidiaries
	ADLINK Technology (China) Co., Ltd.	$ 3,165	$ 2,815
	ADLINK Technology GmbH	281	751
	Others	195	113
		3,641	3,679
	Investors with significant influence over the Company	-	2,327
	Subsidiaries of investors with significant influence over the Company	-	2,479
		$ 3,641	$ 8,485

The outstanding trade receivables from related parties are unsecured. For the years ended December 31, 2025 and 2024, no impairment loss was recognized for trade receivables from related parties.

e. Payables to related parties

Line Item	Related Party Category/Name	December 31
		2025	2024
Trade payables	Subsidiaries
	ADLINK Technology (China) Co., Ltd.	$ 296,953	$ 486,250
	Dongguan Lingyao Electronic Technology Co., Ltd.	24,797	7,315
	Others	1,340	4,938
		323,090	498,503
(Continued)

51 -

Line Item	Related Party Category/Name	December 31
		2025	2024
	Fellow subsidiary	$ 5,398	$ 4,807
	Investors with significant influence over the Company	-	3
	Subsidiaries of investors with significant influence over the Company	-	4,807
	Others	-	2,715
	Associates	-	1,652
		$ 328,488	$ 507,680
Other payables	Subsidiaries	$ 16,891	$ 28,481
	Fellow subsidiary	26	-
	Investors with significant influence over the Company	-	188
	Subsidiaries of investors with significant influence over the Company	-	89
	Others	1,500	131
		$ 18,417	$ 28,889
			(Concluded)

The outstanding trade payables to related parties are unsecured.

f. Prepayments

Related Party Category/Name	December 31
	2025	2024
Fellow subsidiary	$ 99	$ -
Subsidiaries of investors with significant influence over the Company	-	5,367
Associates
FAROBOT Inc	19,856	19,856
	$ 19,955	$ 25,223

g. Acquisition of intangible assets

	Price
	For the Year Ended December 31
Related Party Category/Name	2025	2024
Investors with significant influence over the Company
AUO Corp.	$ -	$ 1,515
Subsidiaries of investors with significant influence over the Company
AUO Digitech Taiwan Inc	1,450	-
	$ 1,450	$ 1,515

h. Acquisition of property, plant and equipment

	Price
	For the Year Ended December 31
Related Party Category/Name	2025	2024
Investors with significant influence over the Company
Chroma ATE Inc.	$ 808	$ -
Subsidiaries of investors with significant influence over the Company
AUO Digitech Taiwan Inc	-	5,800
Associates	-	25
	$ 808	$ 5,825

i. Lease arrangements

Line Item	Related Party Category/Name	For the Year Ended December 31
		2025	2024
Rental income	Investors with significant influence over the Company	$ 17,611	$ 35,120
	Subsidiaries of investors with significant influence over the Company	5,185	10,341
		$ 22,796	$ 45,461

The rentals were received monthly based on local normal commercial rates.

j. Disposal of financial assets

For the year ended December 31, 2024

Related Party Category/Name	Line Item	Number of Shares	Underlying Assets	Proceeds	Gain on Disposal
Others eeWare SAS	Financial assets at fair value through profit or loss	932	Ordinary shares	$ 3,235	$ 3,235

As of the end of April 2024, the Company's other related party, eeWare SAS, repurchased its ordinary shares. Gain on disposal was recognized as net gain on fair value changes of financial assets and liabilities at fair value through profit or loss.

k. Endorsements and guarantees

Information on the endorsements or guarantees for subsidiaries was as follows:

	December 31
	2025	2024
ADLINK Technology GmbH	$ 996,182	$ 921,780
ADLINK Technology (China) Co., Ltd.	$ 31,438	$ -

Others

1) Using of services

Line Item	Related Party Category/Name	For the Year Ended December 31
		2025	2024
Operating expense
R&D design expense	Subsidiaries	$ 35,826	$ 37,218

2) Procurement of raw materials and equipment

Related Party Category/Name	Price		Procurement Service Revenue (Classified as Other Income)
	For the Year Ended December 31		For the Year Ended December 31
	2025	2024	2025	2024
Subsidiaries
ADLINK Technology (China) Co., Ltd.	$ 89,833	$ 84,725	$ 8,182	$ (458)
Ampro ADLINK Technology Inc.	9,455	1,954	(699)	(744)
ADLINK Technology GmbH	7,758	5,266	358	(69)
ADLINK Technology Singapore Pte Ltd.	4,779	2,615	65	1,515
	$ 111,825	$ 94,560	$ 7,906	$ 244

3) Donations

Line Item	Related Party Category/Name	For the Year Ended December 31
		2025	2024
Donations expense	Other related party ADLINK Education Foundation	$ 3,000	$ -

m. Remuneration of key management personnel

	For the Year Ended December 31
	2025	2024
Short-term employee benefits	$ 35,743	$ 27,934
Share-based payment	5,285	2,014
Post-employment benefits	216	216
	$ 41,244	$ 30,164

The remuneration of directors and key executives was determined by the remuneration committee based on the performance of the Company and market trends.

54 -

27. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The assets pledged as collaterals for bank facilities were as follows:

	December 31
	2025	2024
Land	$ 2,202,003	$ 2,202,003
Investment properties	224,057	229,008
Buildings	908,368	971,196
Property under construction	2,200	-
	$ 3,336,628	$ 3,402,207

28. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

Contingent Liabilities

The facilities that the Company provided endorsements or guarantees for its subsidiaries refer to Note 26 for information.

29. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The Company's significant financial assets and liabilities denominated in foreign currencies aggregated by the foreign currencies other than functional currencies and the related exchange rates between the foreign currencies and the respective functional currencies were as follows:

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

December 31, 2025

	Foreign Currency (In Thousands)	Exchange Rate	Carrying Amount (In Thousands)
Financial assets
Monetary items
USD	$ 70,552	31.44 (USD:NTD)	$ 2,218,158
CNY	42,018	4.50 (CNY:NTD)	188,965
JPY	107,303	0.20 (JPY:NTD)	21,547
EUR	18,323	36.90 (EUR:NTD)	676,036
			$ 3,104,706
			(Continued)

	Foreign Currency (In Thousands)	Exchange Rate	Carrying Amount (In Thousands)
Non-monetary items
Investments accounted for using the equity method
USD	$ 65,260	31.44 (USD:NTD)	$ 2,051,657
SGD	539,198	24.44 (SGD:NTD)	348,336
JPY	14,250	0.20 (JPY:NTD)	108,271
GBP	1,075	42.30 (GBP:NTD)	45,465
KRW	1,573,440	0.02 (KRW:NTD)	34,301
			$ 2,558,030
Derivative instruments
USD	2,800	31.44 (USD:NTD)	$ 98
Financial liabilities
Monetary items
USD	29,139	31.44 (USD:NTD)	$ 916,124
CNY	3,284	4.50 (CNY:NTD)	14,768
EUR	481	36.90 (EUR:NTD)	17,736
			$ 948,628
Non-monetary items
Derivative instruments
USD	17,900	31.44 (USD:NTD)	$ 10,082
EUR	2,800	36.90 (EUR:NTD)	3,139
			$ 13,221
			(Concluded)
December 31, 2024
	Foreign Currency (In Thousands)	Exchange Rate	Carrying Amount (In Thousands)
Financial assets
Monetary items
USD	$ 59,669	32.79 (USD:NTD)	$ 1,956,554
CNY	74,684	4.56 (CNY:NTD)	340,621
EUR	8,856	34.14 (EUR:NTD)	302,337
			$ 2,599,512
			(Continued)

	Foreign Currency (In Thousands)	Exchange Rate	Carrying Amount (In Thousands)
Non-monetary items
Investments accounted for using the equity method
USD	$ 68,341	32.79 (USD:NTD)	$ 2,240,561
SGD	13,016	24.13 (SGD:NTD)	314,084
GBP	1,884	41.19 (GBP:NTD)	77,593
			$ 2,632,238
Financial liabilities
Monetary items
USD	31,137	32.79 (USD:NTD)	$ 1,020,982
CNY	550	4.56 (CNY:NTD)	2,508
EUR	769	34.14 (EUR:NTD)	26,240
			$ 1,049,730
Non-monetary items
Derivative instruments
EUR	5,500	32.79 (EUR:NTD)	$ 1,518
			(Concluded)

The Company entered into foreign exchange forward contracts as derivative instruments under non-monetary items, and its foreign currency amounts are contractual amounts.

For the years ended December 31, 2025 and 2024, realized and unrealized net foreign exchange gains (losses) were $1,056 thousands and $46,299 thousands, respectively. It is impractical to disclose net foreign exchange gains (losses) by each significant foreign currency due to the variety of the foreign currency transactions.

30. SEPARATELY DISCLOSED ITEMS

a. Information on significant transactions and investees:

1) Financing provided to others: Table 1
2) Endorsements/guarantees provided: Table 2
3) Significant marketable securities held (excluding investment in subsidiaries, associates and joint ventures): Table 3
4) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: Table 4
5) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: Table 5

b. Information on investees: Table 6
c. Information on investments in mainland China

1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area: Table 7

2) Any of the following significant transactions with invested companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses:

a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period: Table 4

b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period: Table 4

c) The amount of property transactions and the amount of the resultant gains or losses: None

d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes: Table 2

e) The highest balance, the end of period balance, the interest rate range, and total current period interest with respect to financing of funds: Table 1

f) Other transactions that have a material effect on the profit or loss for the year or on the financial position, such as the rendering or receiving of services: Note 26

57 -

TABLE 1

ADLINK TECHNOLOGY INC.

FINANCING PROVIDED TO OTHERS

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No. (Note 1)	Lender	Borrower	Financial Statement Account	Related Party	Highest Balance for the Period	Ending Balance	Actual Amount Borrowed	Interest Rate (%)	Nature of Financing (Note 2)	Business Transaction Amount	Requirement Reasons for Short-term Financing	Allowance for Impairment Loss	Collateral		Financing Limit for Each Borrower (Note 3)	Aggregate Financing Limit (Note 3)	Note
													Item	Value
0	The Company	ADLINK Technology (China) Co., Ltd.	Other receivables	Y	$ 199,230	$ 188,628 (US$ 6,000)	$ -	2	b	$ -	Operation requirement	$ -	-	$ -	$ 560,473	$ 2,241,891	-
1	ADLINK International Co., Ltd.	ADLINK Technology (China) Co., Ltd.	Other receivables	Y	99,615	94,314 (US$ 3,000)	-	2	b	-	Operation requirement	-	-	-	1,478,628	1,478,628	-
2	Ampro ADLINK Technology Inc.	ADLINK Technology GmbH	Other receivables	Y	66,410	62,876 (US$ 2,000)	62,876	4	b	-	Operation requirement	-	-	-	639,954	639,945	-

Note 1: Fill in 0 for the Company, 1 for ADLINK International Co., Ltd. 2 for Ampro ADLINK Technology Inc.
Note 2: The nature of financing provided is specified below:

a. 1 for transactions.
b. 2 for short-term financing.

Note 3: The aggregate financing limit and financing limit for each borrower is specified below:

a. Transactions: The aggregate financing limit for each borrower shall not exceed 20% of the lender's net equity in the latest financial statements. Meanwhile, the financing limit for each borrower shall not exceed the number of transactions with each other in the most recent year. The above-mentioned transactions are measured at the higher of purchases and sales with each other.
b. Short-term financing: When the lender is the Company, the aggregate financing limit for each borrower shall not exceed 40% of the lender's net equity in the latest financial statements. Meanwhile, the financing limit for each borrower shall not exceed 10% of the lender's net equity in the latest financial statements.
c. When foreign borrower was held 100% of voting shares directly and indirectly by the Company, there is financing provided to others with each other or the Company. The aggregate financing limit and financing limit for each borrower both shall not exceed 70% of the lender's net equity in latest financial statements.

TABLE 2

ADLINK TECHNOLOGY INC.

ENDORSEMENTS/GUARANTEES PROVIDED

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No. (Note 1)	Endorser/ Guarantor	Endorsee/Guarantee		Limits on Endorsement/ Guarantee Given on Behalf of Each Party (Note 3)	Maximum Amount Endorsed/ Guaranteed During the Period	Outstanding Endorsement/ Guarantee at the End of the Period	Actual Amount Borrowed	Amount Endorsed/ Guaranteed by Collateral	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/ Guarantee Limit (Note 4)	Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries
		Name	Relationship (Note 2)
0	The Company	ADLINK Technology GmbH
ADLINK Technology (China) Co., Ltd.	a. and b.	$ 2,802,364	$ 996,182	$ 996,182	$ 568,192	$ -	17.77	$ 2,802,364	Y	-	-
			a. and b.	2,802,364	66,410	(EUR 27,000)
31,438
(US$ 1,000)	-	-	0.56	2,802,364	Y	-	Y

Note 1: Fill in 0 for the Company.
Note 2: Relationships between the endorsement/guarantee and the Company are specified as follows:
a. Companies that have business dealings with the Company.
b. Companies in which the Company directly and indirectly holds more than 50% of the voting shares.
Note 3: The subsidiaries of the Company in which the Company directly or indirectly holds 100% of shares shall be capped at 50% of the net value of the Company's latest financial statements. Other companies shall be capped at 20% of the net value of the Company's latest financial statements.
Note 4: The total endorsement and guarantee amount shall be capped at 50% of the net value of the Company's latest financial statements.

TABLE 3

ADLINK TECHNOLOGY INC.

SIGNIFICANT MARKETABLE SECURITIES HELD (EXCLUDING INVESTMENT IN SUBSIDIARIES AND ASSOCIATES)

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account	December 31, 2025				Note
				Shares/Units (Thousands)	Carrying Amount	Percentage of Ownership (%)	Fair Value (Note 2)
The Company	Shares - ordinary shares
	Netio Technologies Co., Ltd.	-	Financial assets at fair value through profit or loss	385	$ -	15.00	$ -	-
	Applied Green Light Taiwan, Inc.	-	n	143	-	3.03	-	-
ADLINK Technology (China) Co., Ltd.	Shares - ordinary shares
	AutoCore Technology (Nanjing) Co., Ltd.	-	Financial assets at fair value through other comprehensive income	Note 3	83,987	3.95	83,987	-
	JY Technology (Shanghai)	-	n	9,054	17,620	19.67	17,620

Note 1: Marketable securities in this table is shares, bonds, mutual funds and securities derived from the mentioned above under the range of IFRS 9 "Financial Instruments".
Note 2: The fair value of open market value was calculated based on the closing price as of balance sheet date. In contrast, it was calculated based on the appropriate valuation techniques and inputs.
Note 3: It is a limited company so that no specific shares or units are disclosed.

TABLE 4

ADLINK TECHNOLOGY INC.

TOTAL PURCHASE FROM OR SALE TO RELATED PARTIES AMOUNTING TO AT LEAST $100 MILLION OR 20% OF THE PAID-IN CAPITAL

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Buyer	Related Party	Relationship	Transaction Details				Abnormal Transaction		Notes/Accounts Receivable (Payable)
			Purchase/ (Sale)	Amount	% of Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
The Company	ADLINK Technology Japan Corporation	Subsidiary	(Sale)	$ (540,334)	(6.64)	Net 120 days	-	-	$ 137,715	5.99
ADLINK Technology Japan Corporation	The Company	Parent company	Purchase	540,334	97.60	Net 120 days	-	-	(137,715)	(100.00)
The Company	Ampro ADLINK Technology Inc.	Indirectly owned subsidiary	(Sale)	(2,427,194)	(29.82)	Net 60 days	-	-	526,499	22.91
Ampro ADLINK Technology Inc.	The Company	Parent company	Purchase	2,427,194	90.97	Net 60 days	-	-	(526,499)	(98.73)
The Company	ADLINK Technology GmbH	Indirectly owned subsidiary	(Sale)	(1,412,639)	(17.36)	Net 150 days	-	-	809,326	35.21
ADLINK Technology GmbH	The Company	Parent company	Purchase	1,412,639	89.36	Net 150 days	-	-	(809,326)	(99.38)
The Company	ADLINK Technology (China) Co., Ltd.	Indirectly owned subsidiary	(Sale)	(127,781)	(1.57)	Net 30 days	-	-	87,369	3.80
ADLINK Technology (China) Co., Ltd.	The Company	Parent company	Purchase	127,781	6.16	Net 30 days	-	-	(87,369)	(18.19)
The Company	Shanghai ADLINK Intelligence Technology Co., Ltd.	Indirectly owned subsidiary	(Sale)	(167,353)	(2.06)	Net 30 days	-	-	65,032	2.83
Shanghai ADLINK Intelligence Technology Co., Ltd.	The Company	Parent company	Purchase	167,353	16.89	Net 30 days	-	-	(65,032)	(14.31)
The Company	ADLINK Technology Singapore Pte Ltd.	Subsidiary	(Sale)	(120,276)	(1.48)	Net 60 days	-	-	30,916	1.35
ADLINK Technology Singapore Pte Ltd.	The Company	Parent company	Purchase	120,276	26.55	Net 60 days	-	-	(30,916)	(40.14)
The Company	ADLINK Technology Korea Ltd.	Subsidiary	(Sale)	(114,400)	(1.41)	Net 60 days	-	-	37,508	1.63
ADLINK Technology Korea Ltd.	The Company	Parent company	Purchase	114,400	87.86	Net 60 days	-	-	(37,508)	(97.98)
ADLINK Technology (China) Co., Ltd.	The Company	Parent company	(Sale)	(1,053,823)	(40.57)	Net 30 days	-	-	296,953	36.67
The Company	ADLINK Technology (China) Co., Ltd.	Indirectly owned subsidiary	Purchase	1,053,823	18.20	Net 30 days	-	-	(296,953)	(22.62)
ADLINK Technology (China) Co., Ltd.	Shanghai ADLINK Intelligence Technology Co., Ltd.	Fellow subsidiary	(Sale)	(740,413)	(28.51)	Net 90 days	-	-	377,143	46.58
Shanghai ADLINK Intelligence Technology Co., Ltd.	ADLINK Technology (China) Co., Ltd.	Fellow subsidiary	Purchase	740,413	74.74	Net 90 days	-	-	(377,143)	(83.00)

TABLE 5

ADLINK TECHNOLOGY INC.

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST $100 MILLION OR 20% OF THE PAID-IN CAPITAL

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Company Name	Related Party	Relationship	Ending Balance	Turnover Rate	Overdue
					Amount	Actions Taken
The Company	Ampro ADLINK Technology Inc.	Indirectly owned subsidiary	Trade receivables $ 526,499
Other receivables -
$ 526,499	5.76	$ -	-	$ 526,499	$ -
	ADLINK Technology GmbH	Indirectly owned subsidiary	Trade receivables $ 809,326
Other receivables 281
$ 809,607	1.85	$ -	-	$ 280,252	$ -
	ADLINK Technology Japan Company	Subsidiary	Trade receivables $ 137,713
Other receivables 27
$ 137,742	4.63	$ -	-	$ 137,715	$ -
ADLINK Technology (China) Co., Ltd.	The Company	Parent company	Trade receivables $ 296,953
Other receivables 879
$ 297,832	2.69	$ -	-	$ 125,752	$ -
	Shanghai ADLINK Intelligence Technology Co., Ltd.	Same parent company	Trade receivables $ 377,143
Other receivables -
$ 377,143	2.09	$ -	-	$ 204,320	$ -

Note: It was the subsequent amount received as of March 12, 2026.

TABLE 6

ADLINK TECHNOLOGY INC.

INFORMATION ON INVESTEES

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars or Foreign Currency, Unless Stated Otherwise)

Investor	Investor	Location	Main Businesses and Products	Original Investment Amount			Balance as of December 31, 2025			Net (Loss) Income of the Investor	Share of (Loss) Profit
				December 31, 2025	December 31, 2024	Shares	%	Carrying Amount
The Company	ADLINK International Co., Ltd.	Samsu	Investment activities	US$ 61,872	US$ 61,872	61,872,494	100.00	$ 2,028,616	$ (17,047)	$ (17,047)	Subsidiary
	ADLINK Technology Singapore Pte Ltd.	Singapore	Selling of industrial automatic control cards, industrial motherboards, etc.	SGD 659	SGD 659	7,659,200	100.00	348,336	35,604	35,604	Subsidiary
				US$ 4,200	US$ 4,200
	ADLINK Technology Japan Corporation	Japan	Selling of industrial automatic control cards, industrial motherboards, etc.	JPY 98,000	JPY 98,000	1,960	100.00	108,271	7,372	7,372	Subsidiary
	ADLINK Technology Korea Ltd.	Korea	Selling of industrial automatic control cards, industrial motherboards, etc.	US$ 300	US$ 300	(Note 3)	100.00	34,301	3,621	3,621	Subsidiary
	Zettascale Technology Cayman Limited	Cayman Islands	Investment activities	GBP 9,050	GBP 9,050	61,155,000	100.00	39,427	(27,518)	(27,518)	Subsidiary
	ADLINK Edge Computing Limited	United Kingdom	Software development, authorization and service	GBP 500	GBP 500	500,000	100.00	6,038	(2,734)	(2,734)	Subsidiary
	JY Technology (Korea)	Korea	Selling of industrial automatic control cards, industrial motherboards, computers and peripherals, etc.	US$ -	US$ 300	-	-	-	(16,415)	(2,098)	Associate (Note 6)
Farobot Technology Ltd.	Cayman Islands	Investment activities	US$ 6,249	US$ 5,858	6,248,765	49.00	23,041	(65,069)	(31,884)	Associate
Farobot Technology Ltd.	Farobot Inc.	Taiwan	Manufacturing and selling and developing software of autonomous mobile robots	NT$ 475,882	NT$ 451,741	47,588,163	100.00	131,624	(65,069)	-	Associate
ADLINK International Co., Ltd.	ADLINK Technology (HK) Co., Ltd.	Hong Kong	Investment activities	US$ 24,255	US$ 24,255	24,255,369	100.00	US$ 51,966	US$ 143	-	Indirectly owned subsidiary
	Ampro ADLINK Technology Inc.	California, USA	Manufacturing and selling of industrial computers	US$ 20,789	US$ 20,789	39,743,137	100.00	US$ 37,535	US$ 1,358	-	Indirectly owned subsidiary
	ADLINK Technology Holding GmbH	Germany	Investment activities	EUR 12,609	EUR 12,609	12,609,356	100.00	US$ (26,072)	US$ (2,160)	-	Indirectly owned subsidiary
ADLINK Technology Singapore Pte Ltd.	ADLINK Technology India Private Limited	India	Selling of industrial automatic control cards, industrial motherboards, etc.	INR 8,000	INR 8,000	800,000	100.00	SGD 146	SGD 105	-	Indirectly owned subsidiary (Note 4)
	ADLINK Intelligence Technology Co., Limited	Hong Kong	Investment activities	US$ 4,200	US$ 4,200	4,200,000	100.00	SGD 5,046	SGD 1,891	-	Indirectly owned subsidiary (Note 5)
Zettascale Technology Cayman Limited	Zettascale Technology Limited	United Kingdom	Software development, authorization and service	GBP 22,029	GBP 22,029	577,981,689	69.50	GBP 932	GBP (964)	-	Indirectly owned subsidiary
ADLINK Technology Holding GmbH	ADLINK Technology GmbH	Germany	Manufacturing and selling of industrial computers	EUR 12,409	EUR 12,409	750,000	100.00	EUR (22,306)	EUR (1,909)	-	Indirectly owned subsidiary
Ampro ADLINK Technology Inc.	ADLINK Technology Corporation	Massachusetts, USA	Software authorization and service	US$ 12,701	US$ 12,701	1,000	100.00	US$ (601)	US$ 66	-	Indirectly owned subsidiary
Zettascale Technology Limited	Zettascale Technology SARL	France	Software development, authorization and service	EUR 221	EUR 221	(Note 2)	100.00	EUR (667)	EUR (1,216)	-	Indirectly owned subsidiary
	Zettascale Technology OpenSplice B.V.	Netherlands	Software development	EUR 18	EUR 18	180	100.00	EUR 13	EUR 2	-	Indirectly owned subsidiary

Note 1: Refer to Table 7 for information on investments in Mainland China.
Note 2: No number of shares were available on Zettascale Technology SARL's license except for its original investment amount.
Note 3: It is a limited company so that there is no record of the number of shares.
Note 4: ADLINK Technology India Private Limited was incorporated in January 2024.
Note 5: ADLINK Intelligence Technology Co., Limited was incorporated in May 2024.
Note 6: JY Technology (Korea) was disposed of in December 2025.

TABLE 7

ADLINK TECHNOLOGY INC.

INFORMATION ON INVESTMENTS IN MAINLAND CHINA

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars or Foreign Currency, Unless Stated Otherwise)

Investee Company	Main Businesses and Products	Paid-in Capital	Method of Investment (Note 1)	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2025	Remittance of Funds		Accumulated Outward Remittance for Investment from Taiwan as of December 31, 2025	Net (Loss) Income of the Investee	% Ownership of Direct or Indirect Investment	Investment (Loss) Gain (Note 2)	Carrying Amount as of December 31, 2025 (Note 2)	Accumulated Repatriation of Investment Income as of December 31, 2025
					Outward	Inward
Shanghai ADLINK Intelligence Technology Co., Ltd.	Selling of industrial automatic control cards, industrial motherboards, etc.	US$ 4,200 (NT$ 132,048)	b. ADLINK Intelligence Technology Co., Limited (Note 8)	US$ 4,200 (NT$ 132,048)	$ -	$ -	US$ 4,200 (NT$ 132,048)	CNY 10,411 (NT$ 45,080)	100.00	CNY 10,411 (NT$ 45,080)	CNY 27,421 (NT$ 123,395)	$ -
ADLINK Technology (China) Co., Ltd.	Manufacturing and selling of industrial automatic control cards, industrial motherboards, etc.	US$ 26,670 (NT$ 828,505)	b. ADLINK Technology (HK) Co., Ltd.	HK$ 7,283 US$ 22,671 (NT$ 742,200) (Notes 5 and 7)	-	-	HK$ 7,283 US$ 22,671 (NT$ 742,200) (Notes 5 and 7)	CNY 1,846 (NT$ 7,993)	100.00	CNY 1,846 (NT$ 7,993)	CNY 361,882 (NT$ 1,628,469)	-
Dongguan Lingyao Electronic Technology Co., Ltd.	Selling of electronic parts	CNY 2,000 (NT$ 9,000)	c. ADLINK Technology (China) Co., Ltd.	(Note 6)	-	-	(Note 6)	CNY 2,130 (NT$ 9,223)	100.00	CNY 2,130 (NT$ 9,223)	CNY 13,038 (NT$ 58,671)	-
JY Technology (Shanghai)	Selling of industrial automatic control cards, industrial motherboards, etc.	CNY 49,892 (NT$ 224,514)	c. ADLINK Technology (China) Co., Ltd.	(Note 6)	-	-	(Note 6)	CNY (4,355) (NT$ (19,293))	(Note 8)	CNY (790) (NT$ (3,623))	(Note 8)	-
Accumulated Outward Remittance for Investments in Mainland China as of December 31, 2025	Investment Amounts Authorized by the Investment Commission, MOEA	Upper Limit on the Amount of Investments Stipulated by the Investment Commission, MOEA
---	---	---
$874,248 (HK$7,283, US$26,871)	$967,022 (HK$7,305, US$29,819)	$3,362,837 (Note 3)

Note 1: Methods of investment have the following type:
a. Direct investment in mainland China.
b. Indirect investment in mainland China through an existing company in a third region.
c. Other - direct investment in subsidiaries of mainland China.

Note 2: Except for JY Technology (Shanghai), the others are not based on audited financial statements.

Note 3: Calculated based on 60% of the net equity of the latest financial statements of the Company as of December 31, 2025.

Note 4: Investment gain (loss) was translated into the New Taiwan dollar at the average rate of HK$1=NT$4.00, US$1=NT$31.14, CNY1=NT$4.33 for the year ended December 31, 2025; the others are translated into the New Taiwan dollars at the rates of HK$1=NT$4.04, US$1=NT$31.44, CNY1=NT$4.50 prevailing on December 31, 2025.

Note 5: Excluded the investment amount of HK$22 thousand in ADLINK Technology (China) Co., Ltd. and US$148 thousand in ADLINK Technology (China) Co., Ltd. from ADLINK Technology (HK) Co., Ltd.'s capital surplus.

Note 6: Excluded ADLINK Technology (China) Co., Ltd.'s investment amount, CNY2,000 thousand in Dongguan Lingyao Electronic Technology Co., Ltd. and CNY15,000 thousand in JY Technology (Shanghai), respectively.

Note 7: ADLINK Technology (Shenzhen) Co., Ltd. was liquidated in November 2020. ADLINK Technology (HK) Co., Ltd. withdrew the inward investment of US$2,850 thousand, which included the amounts of accumulated outward remittance of investment from Taiwan of HK$7,283 thousand and US$298 thousand. The Company indirectly invested in ADLINK Technology (China) Co., Ltd. through ADLINK Technology (HK) Co., Ltd.

Note 8: The Company reclassified JY Technology (Shanghai) from investments accounted for using the equity method to FVOCI in March 2025.

AI assistant

ADLINK — Audit Report / Information 2025

52517_rns_2026-05-14_5f493af9-8a84-40ba-84e2-80c270d0c487.pdf

INDEPENDENT AUDITORS' REPORT

Opinion

Basis for Opinion

Key Audit Matters

Revenue Recognition

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

Notice to Readers

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

3) Financial liabilities

4) Derivative financial instruments

k. Assessment of asset impairment

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. CASH AND CASH EQUIVALENTS

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

8. NOTES RECEIVABLE AND TRADE RECEIVABLES

10. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

11. PROPERTY, PLANT AND EQUIPMENT

12. LEASE ARRANGEMENTS

13. INVESTMENT PROPERTY

14. BORROWINGS

15. TRADE PAYABLES

16. OTHER PAYABLES

17. RETIREMENT BENEFIT PLANS

18. EQUITY

19. REVENUE

20. NET PROFIT FOR THE YEAR

22. EARNINGS PER SHARE

Net Profit for the Year

23. EMPLOYEE SHARE OPTION PLAN

24. CAPITAL MANAGEMENT

25. FINANCIAL INSTRUMENTS

Sensitivity analysis

2) Credit risk

3) Liquidity risk

26. TRANSACTIONS WITH RELATED PARTIES

27. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

28. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

Contingent Liabilities

29. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

30. SEPARATELY DISCLOSED ITEMS

ADLINK TECHNOLOGY INC.

ADLINK TECHNOLOGY INC.

ENDORSEMENTS/GUARANTEES PROVIDED

FOR THE YEAR ENDED DECEMBER 31, 2025

ADLINK TECHNOLOGY INC.

SIGNIFICANT MARKETABLE SECURITIES HELD (EXCLUDING INVESTMENT IN SUBSIDIARIES AND ASSOCIATES)

ADLINK TECHNOLOGY INC.

ADLINK TECHNOLOGY INC.

ADLINK TECHNOLOGY INC.

ADLINK TECHNOLOGY INC.

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