AEC — Annual Report 2024

Nov 12, 2024

Stock code: 1514

Allis Electric Co., Ltd. and Subsidiaries

Consolidated Financial Statements for the Years Ended December 31, 2024 and 2023

(With Auditors' Report Thereon)

12F., No. 19-11, Sanchong Rd., Taipei

TEL:(02)26553456 FAX:(02)26553388

The independent auditors’ report and the accompanying consolidated 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 consolidated financial statements shall prevail.

Allis Electric Co., Ltd. and Subsidiaries Table of Contents

Contents I. Cover page II. Table of Contents III. Representation Letter IV. Independent Auditors’ Report V. Consolidated Balance Sheets VI. Consolidated Statements of Comprehensive Income VII. Consolidated Statements of Changes in Equity VIII. Consolidated Statements of Cash Flows IX. Notes to the Consolidated Financial Statements 1. General 2. Approval Date and Procedures of the Financial Statements 3. Application of New, Amended and Revised Standards and Interpretations 4. Summary of Significant Accounting Policies 5. Critical Accounting Judgments and Key Sources of Estimation Uncertainty 6. Significant Accounts Disclosures 7. Transactions with Related Parties 8. Pledged Assets 9. Significant Contingent Liabilities and Unrecognized Commitments 10. Significant Loss from Disasters 11. Significant Subsequent Events 12. Others 13. Additional Disclosures (1) Information on Significant Transactions (2) Information on Investees (3) Information on Investment in Mainland China (4) Information of Major Shareholder 14. Segment Information

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I～IV 1 2 3 4～5 6 6 6～7 7～17 17 17～46 47～49 49 49 － 49～50 － 50、53～62 50、63 50、64 － 51～52

REPRESENTATION LETTER

The entities that are required to be included in the consolidated financial statements of affiliates in accordance with the “Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises” for the year ended December 31, 2024 are all the same as those included in the consolidated financial statements of Allis Electric Co., Ltd. and its subsidiaries prepared in conformity with the International Financial Reporting Standard 10 “Consolidated Financial Statements”. Relevant information that should be disclosed in the consolidated financial statements of affiliates is included in the consolidated financial statements of Allis Electric Co., Ltd. and its subsidiaries. Hence, we do not prepare a separate set of consolidated financial statements of affiliates.

Very truly yours,

ALLIS ELECTRIC CO., LTD.

By

Herr-Yeh Sung

Chairman

March 13, 2025

Earnest & Co., CPAs. 4F.,No.501,Sec.2,Tiding Blvd., Taipei,Taiwan (R.O.C)

惠眾聯合會計師事務所 台北市堤頂大道二段501 號4 樓 TEL:(02)87519698 FAX:(02)87515658

INDEPENDENT AUDITORS’ REPORT

Allis Electric Co., Ltd.

Opinion

We have audited the accompanying consolidated financial statements of Allis Electric Co., Ltd. and its subsidiaries (collectively referred to as “Allis Electric Group”), which comprise the consolidated balance sheets as of December 31, 2024 and 2023, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, based on our audits and the reports of other auditors (refer to Other Matter section), the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Allis Electric Group as of December 31, 2024 and 2023, and its consolidated financial performance and its consolidated cash flows for the years then ended, in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of Allis Electric Group 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 consolidated financial statements for the year ended December 31, 2024. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Revenue Recognition

Please refer to Note 4(16) of the consolidated financial statements for the accounting policies on revenue recognition.

Because revenue is high-risk in nature and parts of goods are customized, revenue recognition was identified as one of the key audit matters.

We have obtained understanding and have verified the accounting policy and the design and

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implementation of internal controls with respect to revenue recognition. We checked the compliance with the accounting policy on revenue recognition by reviewing the relevant documents. For ensuring Allis Electric Group’s compliance with IFRS 15, samples from the recognized revenue have been selected to test if the conditions of revenue recognition were met.

Estimated Impairment of Accounts Receivable

Please refer to Note 4(6) of the consolidated financial statements for the accounting policies on impairment of accounts receivables and Note 5 of the consolidated financial statements for uncertainty of accounting estimation and assumptions for the estimated impairment of accounts receivable.

Because of measuring expected credit losses on accounts receivable involve significant judgments and uncertainties, the estimated impairment of accounts receivables was identified as one of the key audit matters.

We evaluated the reasonableness of allowance for impairment loss by testing the aging of accounts receivables and by quantifying the potential risk of accounts receivables that were overdue at the balance sheet date. We tested the recoverability of the accounts receivables by vouching cash receipts after the balance sheet date. For the estimated impairment of accounts receivable, we evaluated the adequacy of management’s provision for impairment based on customers’ past default experience, current financial position, any collateral pledged, existing market conditions as well as forward looking estimates.

Other Matter

We did not audit the financial statements of certain subsidiaries of Allis Electric Group as of and for the years ended December 31, 2024 and 2023, which were included in the accompanying consolidated financial statements, but such financial statements were audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to the amounts included in Allis Electric Group’s consolidated financial statements for such subsidiaries, is based solely on the reports of other auditors. As of December 31, 2024 and 2023, the total assets of such subsidiaries were NT$487,330 thousand and NT$734,705 thousand, respectively, which represented 4.32% and 6.54%, respectively, of Allis Electric Group’s consolidated total assets. For the years ended December 31, 2024 and 2023, the operating revenue of such subsidiaries were NT$617,909 thousand and NT$859,416 thousand, respectively, which represented 6.96% and 9.06%, respectively, of Allis Electric Group’s consolidated total operating revenue. In addition, we did not audit the financial statements of certain associates of Allis Electric Group as of and for the years ended December 31, 2024 and 2023, which reflected in the consolidated financial statements using the equity of accounting, but such financial statements were audited by other auditors whose reports have been furnished to us. Thus, our opinion, insofar as it relates to the amounts included in Allis Electric Group’s consolidated financial statements for such associates, is based solely on the reports of other auditors. As of December 31, 2024 and 2023, the aforementioned investments accounted for using equity method were NT$389,201 thousand and NT$367,146 thousand, respectively, which represented 3.45% and 3.27%, respectively, of Allis Electric Group’s consolidated total assets. Allis Electric Group’s share of comprehensive income or loss of such associates were NT$74,402 thousand and NT$75,386 thousand for the years ended December 31, 2024 and 2023, respectively, which represented 8.23% and 11.89%, respectively, of Allis Electric Group’s consolidated total comprehensive income.

We have also audited the parent company only financial statements of Allis Electric Co., Ltd. as of and for the years ended December 31, 2024 and 2023 on which we have issued an unmodified opinion with Other Matter section.

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Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and IFRS, IAS, IFRIC, and SIC endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing Allis Electric Group’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 Allis Electric Group 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 Allis Electric Group’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated 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 consolidated 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:

1. Identify and assess the risks of material misstatement of the consolidated 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.

2. 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 Allis Electric Group’s internal control.

3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

4. 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 Allis Electric Group’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 consolidated 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 Allis Electric Group to cease to continue as a going concern.

5. Evaluate the overall presentation, structure and content of the consolidated financial statements,

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including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

1. Obtain sufficient and appropriate audit evidence regarding the financial information of entities or business activities within Allis Electric Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision, and performance of the group audit. We remain solely responsible for our audit opinion.

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the year ended December 31, 2024 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audit resulting in this independent auditors’ report are Yu-ling Hung and Wen-Ting Hsiang.

Earnest & Co., CPAs. Taipei, Taiwan Republic of China

March 13, 2025

Notice to Readers

The accompanying consolidated financial statements are intended only to present the consolidated 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 consolidated financial statements are those generally applied in the Republic of China.

For the convenience of readers, the auditors’ report and the accompanying consolidated 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 consolidated financial statements shall prevail.

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Allis Electric Co., Ltd. and Subsidiaries CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2024 AND 2023

(In Thousands of New Taiwan Dollars)

ASSETS	Notes Note 4 and 6 Note 4 and 6 Note 4 and 6 Note 4 Note 4 and 6 Note 7 Note 4 and 6 Note 6 and 7 Note 4, 6, 7, and 8 Note 4 Note 4 and 6 Note 6 Note 4 and 6 Note 4 and 6 Note 4, 6 and 8 Note 4 and 6 Note 4, 6 and 8 Note 4 and 6 Note 4 and 6 Note 4 and 6 Note 6 Note 6	2024.12.31 Amount % $ 1,023,242 9.06 69 0.00 142,350 1.26 832,546 7.37 95,397 0.85 － － 3,819,728 33.83 12,930 0.12 58,231 0.51 471 0.00 2,374,348 21.03 93,046 0.82 4,250 0.04 8,456,608 74.89 131,038 1.16 389,201 3.45 1,728,841 15.31 9,114 0.08 347,523 3.08 26,898 0.24 27,010 0.24 18,376 0.16 109,812 0.97 37,346 0.33 407 0.00 9,748 0.09 2,835,314 25.11 $11,291,922 100.00	2023.12.31 Amount % $ 751,079 6.69 － － 31,612 0.28 491,143 4.37 210,241 1.87 7,837 0.07 4,140,452 36.86 31,594 0.28 87,695 0.78 － － 2,649,553 23.58 82,809 0.74 2,322 0.02 8,486,337 75.54 174,916 1.56 367,146 3.27 1,659,519 14.77 4,023 0.03 351,403 3.13 7,355 0.06 43,717 0.39 23,011 0.20 104,313 0.93 2,928 0.03 405 0.00 9,748 0.09 2,748,484 24.46 $ 11,234,821 100.00	LIABILITIES AND EQUITY CURRENT LIABILITIES 2100 Short-term loans 2120 Financial liabilities at fair value through profit or loss 2130 Contract liabilities 2150 Notes payable 2170 Accounts payable 2180 Accounts payable to related parties 2200 Other payables 2230 Current tax liabilities 2250 Provisions 2280 Lease liabilities 2320 Current portion of long-term loans 2399 Other current liabilities 21xx Total current liabilities NON-CURRENT LIABILITIES 2530 Bonds payable 2540 Long-term loans 2571 Deferred tax liabilities 2580 Lease liabilities 2640 Net defined benefit liabilities 2645 Guarantee deposits 25xx Total non-current liabilities 2xxx Total liabilities EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT 3110 Share capital 3130 Bond conversion entilement certificates 3100 Total share capital 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Unappropriated earnings 3300 Total retained earnings 3400 Other equity 3500 Treasury Stock 31xx Total equity attributable to owners of the parent 36xx NON-CONTROLLING INTERESTS 3xxx Total equity TOTAL LIABILITIES AND EQUITY	Notes Note 6 Note 4 and 6 Note 4 and 7 Note 7 Note 7 Note 7 Note 4 Note 4 and 6 Note 4 Note 6 Note 4 and 6 Note 6 Note 4 and 6 Note 4 Note 4 and 6 Note 6 Note 6 Note 6 Note 6 Note 6	2024.12.31 Amount ％ $ 1,970,000 17.44 98 0.00 383,921 3.40 30,125 0.27 1,975,606 17.49 139,661 1.24 415,307 3.68 84,676 0.75 12,100 0.11 3,567 0.03 29,762 0.26 1,031 0.01 5,045,854 44.68 9,690 0.09 185,866 1.65 174,476 1.54 5,672 0.05 － － 3,459 0.03 379,163 3.36 5,425,017 48.04 2,675,437 23.70 435 0.00 2,675,872 23.70 985,582 8.73 333,094 2.95 448,977 3.97 1,362,388 12.07 2,144,459 18.99 (11,378 ) (0.10) (30,866 ) (0.27) 5,763,669 51.05 103,236 0.91 5,866,905 51.96 $ 11,291,922 100.00	2023.12.31 Amount ％ $ 1,924,000 17.13 1,064 0.01 476,650 4.24 27,949 0.24 2,256,726 20.09 209,487 1.86 497,985 4.43 111,982 1.00 12,100 0.11 2,966 0.03 30,586 0.27 1,924 0.02 5,553,419 49.43 572,064 5.09 180,077 1.60 174,876 1.56 1,488 0.01 14,065 0.13 3,456 0.03 946,026 8.42 6,499,445 57.85 2,469,353 21.98 58,439 0.52 2,527,792 22.50 440,925 3.93 258,944 2.31 449,780 4.00 1,068,907 9.51 1,777,631 15.82 (69,505) (0.62) (41,616) (0.37) 4,635,227 41.26 100,149 0.89 4,735,376 42.15 $ 11,234,821 100.00
		Amount $ 1,023,242 69 142,350 832,546 95,397 － 3,819,728 12,930 58,231 471 2,374,348 93,046 4,250 8,456,608 131,038 389,201 1,728,841 9,114 347,523 26,898 27,010 18,376 109,812 37,346 407 9,748 2,835,314 $11,291,922	Amount $ 751,079 － 31,612 491,143 210,241 7,837 4,140,452 31,594 87,695 － 2,649,553 82,809 2,322 8,486,337 174,916 367,146 1,659,519 4,023 351,403 7,355 43,717 23,011 104,313 2,928 405 9,748 2,748,484 $ 11,234,821			Amount $ 1,970,000 98 383,921 30,125 1,975,606 139,661 415,307 84,676 12,100 3,567 29,762 1,031 5,045,854 9,690 185,866 174,476 5,672 － 3,459 379,163 5,425,017 2,675,437 435 2,675,872 985,582 333,094 448,977 1,362,388 2,144,459 (11,378 ) (30,866 ) 5,763,669 103,236 5,866,905 $ 11,291,922
CURRENT ASSETS 1100 Cash and cash equivalents 1110 Financial assets at fair value through profit or loss 1120 Financial assets at fair value through other comprehensive income 1140 Contract assets 1150 Notes receivable, net 1160 Notes receivable from related parties 1170 Accounts receivable, net 1180 Accounts receivable from related parties 1200 Other receivables 1220 Current Tax Assets 1310 Inventories 1410 Prepayments 1479 Other current assets 11xx Total current assets NON-CURRENT ASSETS 1517 Financial assets at fair value through other comprehensive income 1550 Investments accounted for using equity method 1600 Property, plant and equipment 1755 Right-of-use assets 1760 Investment properties 1780 Intangible assets 1840 Deferred tax assets 1915 Prepayments for equipment 1920 Refundable deposits 1975 Net defined benefit asset 1980 Other receivables 1990 Other non-current assets 15xx Total non-current assets 1xxx TOTAL ASSETS

The accompanying notes are an integral part of the consolidated financial statements. (With Earnest & Co., CPAs auditors’ report dated March 13, 2025)

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Allis Electric Co., Ltd. and Subsidiaries

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

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

4000 OPERATING REVENUE 5000 OPERATING COST 5900 GROSS PROFIT 5910 LESS: UNREALIZED GROSS PROFIT ON SALES 5920 ADD: REALIZED GROSS PROFIT ON SALES 5950 NET GROSS PROFIT OPERATING EXPENSES 6100 Selling and marketing expenses 6200 General and administrative expenses 6300 Research and development expenses 6450 Expected credit impairment loss 6000 Total operating expenses 6900 OPERATING INCOME NON-OPERATING INCOME AND EXPENSES 7010 Other income 7020 Other gains and losses 7050 Finance costs 7060 Share of profit of associates accounted for using equity method 7000 Total non-operating income and expenses 7900 INCOME BEFORE INCOME TAX 7950 INCOME TAX EXPENSE 8200 NET INCOME OTHER COMPREHENSIVE INCOME (LOSS) Items that will not be reclassified subsequently to profit or loss 8311 Remeasurement of defined benefit plans 8316 Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income 8321 Share of remeasurement of defined benefit plans of associates accounted for using equity method 8349 Income tax relating to items that will not be reclassified to profit or loss Items that may be reclassified subsequently to profit or loss 8361 Exchange differences on translating foreign operation 8370 Share of other comprehensive income (loss) of associates accounted for using equity method 8300 Other comprehensive income, net 8500 TOTAL COMPREHENSIVE INCOME FOR THE YEAR 8600 NET INCOME ATTRIBUTABLE TO 8610 Owners of the parent 8620 Non-controlling interests 8700 TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO 8710 Owners of the parent 8720 Non-controlling interests 9750 BASIC EARNINGS PER SHARE 9850 DILUTED EARNINGS PER SHARE	Notes Note 4, 6 and 7 Note 6 and 7 Note 7 Note 7 Note 6 and 7 Note 6 Note 6 Note 4 and 6 Note 4 and 6 Note 4 and 6 Note 4 Note 4 Note 4 and 6 Note 4 Note 6 Note 6	2024

The accompanying notes are an integral part of the consolidated financial statements.

(With Earnest & Co., CPAs auditors’ report dated March 13, 2025)

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Allis Electric Co., Ltd. and Subsidiaries CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) Equity Attributable to Owners of Parent

BALANCE, JANUARY 1, 2023 Appropriation of the 2022 earnings Legal reserve appropriated Cash dividends Stock dividends Net income in 2023 Other comprehensive income and loss in 2023, net of income tax Total comprehensive income in 2023 Cash dividends from subsidiaries Cash dividends distributed to subsidiaries Disposal of investments in equity instruments at fair value through other comprehensive income Changes in equity of subsidiaries accounted for using equity method Return of donation from owners Reversal of special reserve Equity components of convertible bonds issued by the Company Conversion of convertible bonds BALANCE, DECEMBER 31, 2023 Appropriation of the 2023 earnings Legal reserve appropriated Cash dividends Stock dividends Net income in 2024 Other comprehensive income and loss in 2024, net of income tax Total comprehensive income in 2024 Reversal of special reserve Return of donation from owners Sale of the Company's shares held by subsidaries Disposal of investments in equity instruments at fair value through other comprehensive income Cash dividends from subsidiaries Changes in equity of subsidiary accounted for using the equity method Cash dividends distributed to subsidiaries Changes in ownership interests in subsidiary Conversion of convertible bonds Bond conversion entitlement certificates converted to ordinary shares BALANCE, DECEMBER 31, 2024	Share Capital Ordinary Shares Bond Conversion Entitlement Certificates Capital Surplus $ 2,397,430 $ －$ 73,039 － － － － － － 71,923 － － － － － － － － － － － － － － － － 2,818 － － － － － － － (8) － － － － － 83,247 － 58,439 281,829 2,469,353 58,439 440,925 － － － － － － 51,834 － － － － － － － － － － － － － － － － (7) － － 76,398 － － － － － － － － － － － 3,402 － 329 － 96,246 464,535 154,250 (154,250 ) － $ 2,675,437 $ 435 $ 985,582	Retained Earnings	Retained Earnings	Retained Earnings	Other Equity	Other Equity	Treasury Stock $ (41,616) － － － － － － － － － － － － － (41,616) － － － － － － － － 10,750 － － － － － － － $ (30,866)	Total $ 3,831,361 － (239,744 ) － 751,699 (133,575) 618,124 － 2,818 － (839 ) (8 ) － 83,247 340,268 4,635,227 － (414,672 ) － 801,224 92,607 893,831 － (7 ) 87,148 － － (198 ) 3,402 (1,843 ) 560,781 － $ 5,763,669	Non- controlling Interests $ 88,443 － － － 15,662 28 15,690 (3,626) 1 － (359) － － － － 100,149 － － － 9,582 1,106 10,688 － － 53 － (9,589) － 2 1,933 － － $ 103,236	Total Equity $ 3,919,804 － (239,744) － 767,361 (133,547) 633,814 (3,626) 2,819 － (1,198) (8) － 83,247 340,268 4,735,376 － (414,672) － 810,806 93,713 904,519 － (7) 87,201 － (9,589) (198) 3,404 90 560,781 － $ 5,866,905
	Ordinary Shares $ 2,397,430 － － 71,923 － － － － － － － － － － － 2,469,353 － － 51,834 － － － － － － － － － － － 154,250 $ 2,675,437	Legal Reserve $ 204,656 54,288 － － － － － － － － － － － － － 258,944 74,150 － － － － － － － － － － － － － － － $ 333,094	Special Reserve $ 450,584 － － － － － － － － － － － (804 ) － － 449,780 － － － － － － (803 ) － － － － － － － － － $ 448,977	Unappropriated Earnings		Unrealized Gains (Losses) on Financial Assets Measured at Fair Value Through Other ComprehensiveIncome $ 60,890 － － － － (121,814) (121,814) － － (372) － － － － － (61,296) － － － － 52,728 52,728 － － － (3,075) － － － － － － $ (11,643)
				$ 1,362,388

The accompanying notes are an integral part of the consolidated financial statements.

(With Earnest & Co., CPAs auditors’ report dated March 13, 2025)

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Allis Electric Co., Ltd. and Subsidiaries CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

(In Thousands of New Taiwan Dollars)

CASH FLOWS FROM OPERATING ACTIVITIES: Income before income tax Adjustments for Adjustments to reconcile profit (loss) Depreciation expense Amortization expense Expected credit impairment loss (gain) Net gain on financial instruments at fair value through profit or loss Interest expense Interest income Dividend income Share of profit of associates accounted for using equity method Net loss (gain) on disposal of property, plant and equipment Unrealized (realized) gross profit on sales Impairment loss Changes in operating assets and liabilities Decrease (increase) in contract assets Decrease (increase) in notes receivable Decrease (increase) in notes receivable from related parties Decrease (increase) in accounts receivable Decrease in accounts receivable from related parties Decrease (increase) in other receivables Decrease (increase) in inventories Increase in prepayments Increase in other current assets Increase in net defined benefit asset Changes in financial instruments at fair value through profit or loss Decrease in contract liabilities Increase (decrease) in notes payable Increase (decrease) in accounts payable Increase (decrease) in accounts payable to related parties Increase (decrease) in other payables Decrease in other current liabilities Decrease in net defined benefit liabilities	2024 $ 992,057 63,411 5,352 (5,923 ) (5,052 ) 43,853 (7,187 ) (5,545 ) (71,197 ) 386 1,347 － (341,403 ) 115,461 7,837 308,632 18,664 30,068 277,737 (9,897 ) (1,933 ) (18,926 ) 154 (92,532 ) 2,176 (265,819 ) (69,826 ) (79,364 ) (893 ) －	2023 $ 937,338 50,696 4,724 21,694 (10,829 ) 55,360 (5,938 ) (5,745 ) (76,764 ) (25 ) (336 ) 25,000 41,555 (90,948 ) (4,333 ) (700,276 ) 450 (34,090 ) (274,420 ) (4,975 ) (608 ) (28 ) 3,246 (251,691 ) (42,824 ) 199,402 79,809 118,929 (572 ) (14,882 )

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Allis Electric Co., Ltd. and Subsidiaries CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

(In Thousands of New Taiwan Dollars)

Cash inflow generated from operations Income tax paid Net cash generated from (used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from disposal of financial assets at fair value through profit or loss Acquisition of financial assets at fair value through other comprehensive income Proceeds from disposal of financial assets at fair value through other comprehensive income Proceeds from disposal of partial interest in a subsidiary Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Decrease (increase) in prepayments for equipment Decrease (increase) in refundable deposits Decrease in other receivables Interest received Cash dividend received Net cash flows used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES： Increase in short-term loans Decrease in short-term loans Proceeds from issuance of convertible bonds Increase in long-term loans Decrease in long-term loans Repayment of the principal portion of lease liabilities Increase in guarantee deposits Interest paid Cash dividends paid Proceede from disposal of treasury stock Others Net cash flows generated from (used in) financing activities EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS NET INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, BEGINNING OF THE YEAR CASH AND CASH EQUIVALENTS, END OF THE YEAR	2024 891,638 (197,968 ) 693,670 － (27,093 ) 12,714 930 (130,334 ) － (24,872 ) 4,635 (5,499 ) 6 7,178 56,547 (105,788 ) 10,198,184 (10,152,184 ) － 35,000 (30,130 ) (4,430 ) 3 (41,062 ) (420,805 ) 91,977 (7 ) (323,454 ) 7,735 272,163 751,079 $1,023,242	2023 18,919 (124,758 ) (105,839 ) 657 (42,814 ) 7,820 － (227,966 ) 38 (1,369 ) (22,291 ) 22,806 38,742 6,071 56,666 (161,640 ) 10,070,447 (10,418,952 ) 999,610 － (9,968 ) (3,591 ) 87 (49,182 ) (240,553 ) － (8 ) 347,890 604 81,015 $ 670,064 751,079

The accompanying notes are an integral part of the consolidated financial statements. (With Earnest & Co., CPAs auditors’ report dated March 13, 2025)

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Allis Electric Co., Ltd. and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

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

1. GENERAL

Allis Electric Co., Ltd. (the “Company”) was incorporated in September 1968. Allis Electric Co., Ltd. and Subsidiaries (collectively referred to as the “Group” is engaged in manufacturing and selling of switchgear, transformer, electrical products, and construction and installation of electrical equipment. Please refer to Note 4(2) and 14.

The consolidated financial statements are presented in the Company’s functional currency, the New Taiwan dollar.

2. APPROVAL DATE AND PROCEDURES OF THE FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Company’s board of directors on March 13, 2025.

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

• (1) 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 any material impact on the Group’s accounting policies.

• (2) The IFRS Accounting Standards endorsed by the FSC for application starting from 2025

New,Amended and Revised Standards and Interpretations Amendments to IAS 21 “Lack of Exchangeability”	Effective Date Announced byIASB
	January 1, 2025

As of the date the consolidated financial statements were authorized for issue, the Group has assessed that the application of aforementioned standards and interpretations will not have a material impact on the Group’s financial position and financial performance.

• (3) The IFRS Accounting Standards in issue but not yet endorsed and issued into effect by the FSC

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Effective Date Announced New, Amended and Revised Standards and Interpretations by IASB Annual Improvements to IFRS Accounting Standards-Volume 11 January 1, 2026 Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification January 1, 2026 and Measurement of Financial Instruments” Amendments to IFRS 9 and IFRS 7 “Contracts Referencing NatureJanuary 1, 2026 Dependent Electricity” Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets To be determined by IASB between an Investor and its Associate or Joint Venture” IFRS 17 “Insurance Contracts” January 1, 2023 Amendments to IFRS 17 January 1, 2023 Amendments to IFRS 17 “Initial Application of IFRS 17 and IFRS 9- January 1, 2023 Comparative Information” IFRS 18 ” Presentation and Disclosure in Financial Statements” January 1, 2027 IFRS 19 ” Subsidiaries without Public Accountability: Disclosure” January 1, 2027

As of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the possible impact that the application of the aforementiond standards and interpretations will have on the Group’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

• (1) Statement of compliance

These consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IFRS Accounting Standards as endorsed and issued into effect by the FSC.

• (2) Basis of consolidation

a. The basis of the consolidated financial statements

The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company. Income and expenses of subsidiaries acquired or disposed of during the period are included in the consolidated statement of profit or loss and other comprehensive income from the effective date of acquisition or up to the effective date of disposal, as appropriate. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Group. All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group’s interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the Company.

When the Group loses control of a subsidiary, a gain or loss is recognized in profit or loss and is calculated as the difference between (i) the aggregate of the fair value of the consideration received and any investment retained in the former subsidiary at its

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fair value at the date when control is lost and (ii) the assets (including any goodwill) and liabilities and any non-controlling interests of the former subsidiary at their carrying amounts at the date when control is lost. The Group accounts for all amounts recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required if the Group had directly disposed of the related assets or liabilities.

b. The subsidiaries in the consolidated financial statements

Name of Subsidiaries Air King Industrial Co., Ltd. Ares Technology Co., Ltd. Yishun Investment Co., Ltd. Allis Communications Co., Ltd. Hengyuan Allis Electric Co., Ltd. AEC International S.r.l. PHD Powerhouse Distributions (PTY) Ltd. Allis Electric (S) Pte. Ltd.	Principle Businesses Activities	Location	Percentage of Ownership 2024.12.31 2023.12.31 83.12% 83.12% 100.00% 100.00% 99.94% 99.94% 82.64% 82.64% 65.38% 65.38% 70.00% 70.00% 93.75% 90.00% 100.00% 100.00%
			2024.12.31
	Design and installation of electrical equipment Manufacturing of UPS Investment and holding Manufacturing of GPS antennas Selling of electrical equipment Selling of electrical equipment Selling of electrical equipment Selling of electrical equipment	Taipei, Taiwan New Taipei City, Taiwan Taipei, Taiwan New Taipei City, Taiwan Qingdao, China Italy South Africa Singapore	83.12% 100.00% 99.94% 82.64% 65.38% 70.00% 93.75% 100.00%

(3) Foreign currencies

In preparing the financial statements of each individual group entity, transactions in currencies other than the entity’s functional currency (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 not retranslated.

For the purpose of presenting consolidated financial statements, the assets and liabilities of the Company’s foreign operations (including subsidiaries and associates in other countries that use currency different from the currency of the Company) are translated into the New Taiwan dollars using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period. Exchange differences arising, if any, are recognized in other comprehensive income and accumulated in equity (attributed to the owners of the Company and non-controlling interests as appropriate).

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• (4) Classification of current and non-current assets and liabilities

Current assets include:

• a. Assets held primarily for the purpose of trading;

• b. Assets expected to be realized within twelve months after the reporting period; and

• c. Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

Current liabilities include:

• a. Liabilities held primarily for the purpose of trading;

• b. Liabilities due to be settled within twelve months after the reporting period, even if an agreement to refinance or to reschedule payments on a long-term basis is completed after the reporting period and before the consolidated financial statements are authorized for issue; and

• c. Liabilities for which the Group does not have the right at the end of the reporting period to defer settlement beyond twelve months.

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

The Group engages in the construction business, which has an operating cycle of over one year, the normal operating cycle applies when considering the classification of the Group’s construction-related assets and liabilities.

• (5) Cash and cash equivalents

Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value. Cash and cash equivalents are cash on hand, checking accounts and demand deposit, and short-term time deposits with original maturities less than one year.

• (6) Financial instruments

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

Transaction costs that are directly attributable to the acquisition or issue 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.

Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace.

• a. Measurement categories

Financial assets are classified into the following categories: Financial assets at FVTPL, financial assets at amortized cost and investments in equity instruments at FVTOCI.

 Financial assets at FVTPL

Financial assets are classified as at FVTPL when the financial asset is mandatorily classified as at FVTPL. Financial assets mandatorily classified as at FVTPL include investments in equity instruments which are not designated as at FVTOCI and debt

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instruments that do not meet the amortized cost criteria or the FVTOCI criteria.

Financial assets at FVTPL are subsequently measured at fair value, and any remeasurement gains or losses on such financial assets are recognized in profit or loss.

 Financial assets at amortized cost

Financial assets that meet the following conditions are subsequently measured at amortized cost:

• i. The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

• ii. The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Subsequent to initial recognition, financial assets at amortized cost are measured at amortized cost, which equals to their gross carrying amount determined by the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

 Investments in equity instruments at FVTOCI

On initial recognition, the Group may make an irrevocable election to designate investments in equity instruments as at FVTOCI. Designation as at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.

Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments, instead, they will be transferred to retained earnings.

Dividends on these investments in equity instruments are recognized in profit or loss when the Group’s right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment.

b. Impairment of financial assets

At the end of each reporting period, a loss allowance for expected credit loss is recognized for financial assets at amortized cost (including accounts receivable).

The loss allowance for accounts receivable is measured at an amount equal to lifetime expected credit losses. For all other financial assets, when the credit risk on the financial instrument has not increased significantly since initial recognition, a loss allowance is recognized at an amount equal to expected credit loss resulting from possible default events of a financial instrument within 12 months after the reporting date. If, on the other hand, there has been a significant increase in credit risk since initial recognition, a loss allowance is recognized at an amount equal to expected credit loss resulting from all possible default events over the expected life of a financial instrument.

Expected credit losses reflect the weighted average of credit losses with the respective risks of a default occurring as the weights. 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. In contrast, Lifetime ECLs represent the expected credit losses that will result from all possible default events over the expected life of a financial instrument.

The impairment loss of all financial assets is recognized in profit or loss by a

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reduction in their carrying amounts through a loss allowance account, except for investments in debt instruments that are measured at FVTOCI, for which the loss allowance is recognized in other comprehensive income and the carrying amounts of such financial assets are not reduced.

c.Derecognition of financial assets

The Group 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.

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. On derecognition of an investment in an equity instrument at FVTOCI, the cumulative gain or loss which had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss.

Equity instruments

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

Equity instruments issued by the Group entity 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, issue or cancellation of the Company’s own equity instruments.

Financial liabilities

• a. Subsequent measurement

Financial liabilities are subsequently measured either at amortized cost using effective interest method or at FVTPL.

Financial liabilities at fair value through profit or loss are stated at fair value, with any gains or losses arising on remeasurement recognized in profit or loss.

• b. Derecognition of financial liabilities

The Group derecognizes financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or they expire. 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.

Convertible bonds

The component parts of compound instruments (i.e., convertible bonds) issued by the Company are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

On initial recognition, the fair value of the liability component is estimated using the prevailing market interest rate for similar non-convertible instruments. This amount is recorded as a liability on an amortized cost basis using the effective interest method until extinguished upon conversion or upon the instrument’s maturity date. Any embedded derivative liability is measured at fair value.

The conversion option classified as equity is determined by deducting the amount of the liability component from the fair value of the compound instrument as a whole. This

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is recognized and included in equity, net of income tax effects, and is not subsequently remeasured. In addition, the conversion option classified as equity will remain in equity until the conversion option is exercised; in which case, the balance recognized in equity will be transferred to capital surplus – share premiums. When the conversion option remains unexercised at maturity, the balance recognized in equity will be transferred to capital surplus-share premiums.

Transaction costs that relate to the issuance of the convertible bonds are allocated to the liability and equity components in proportion to the allocation of the gross proceeds. Transaction costs relating to the equity component are recognized directly in equity. Transaction costs relating to the liability component are included in the carrying amount of the liability component.

Derivative financial instruments

The Group enters into the 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.

(7) Inventories

Inventories consist of raw materials, finished goods and work-in-process and 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. 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.

(8) Investments accounted for using equity method

An associate is an entity over which the Group has significant influence and that is not a subsidiary. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control over those policies.

The Group uses the equity method to account for its investments in associates. Under the equity method, investments in an associate are initially recognized at cost and adjusted thereafter to recognize the Group’s share of the profit or loss and other comprehensive income of the associate as well as the distribution received. The Group also recognizes the changes in the Group’s share of equity of associates. When the Group’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 by the equity method and long-term interests that, in substance, form part of the Group’s net investment in the associate), the Group discontinues recognizing its share of further losses, if any. Additional losses and liabilities are recognized only to the extent that the Group has incurred legal obligations, or constructive obligations, or made payments on behalf of that associate.

Any excess of the cost of acquisition over the Group’s share of the net fair value of the identifiable assets and liabilities of an associate 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 Group’s share of the net fair value of the identifiable assets and liabilities over the cost acquisition, after reassessment, this is recognized immediately in profit or loss.

The entire carrying amount of the investment (including goodwill) is tested for

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impairment as a single asset by comparing its recoverable amount (higher of value in use and fair value less costs to sell) with its carrying amount. Any impairment loss recognized forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

When the Group subscribes to additional shares in an associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Group’s proportionate interest in the net assets of the associate. The Group records such a difference as an adjustment to investments accounted for using equity method with the corresponding amount charged or credited to capital surplus. If the Group’s ownership interest is reduced due to the additional subscription of the new shares of 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 if the associate had 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 by the equity method is insufficient, the shortage is debited to retained earnings.

The Group 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 its 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 Group accounts for all amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would be required if that associate had directly disposed of the related assets or liabilities.

When a group entity transacts with its associate, profits and losses resulting from the transactions with the associate are recognized in the Group’ consolidated financial statements only to the extent of interests in the associate that are not related to the Group.

(9) Property, plant and equipment

Property, plant and equipment are stated at cost, less accumulated depreciation and accumulated impairment loss.

Property, plant and equipment in the course of construction are carried at cost, less any recognized impairment loss. Cost includes professional fees and borrowing costs eligible for capitalization. Such properties are depreciated and classified to the appropriate categories of property, plant and equipment when completed and ready for intended use.

Freehold land is not depreciated.

Depreciation on 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 effect of any changes in estimate 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.

(10)Leases

a. The Group as lessee

The Group recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for low-value asset leases and short-term leases accounted for applying a recognition exemption where lease payments are recognized

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as expenses on a straight-line basis over the lease terms.

Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities adjusted for lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs needed to restore the underlying assets, and less any lease incentives received. Rightof-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Rightof-use assets are presented on a separate line in the consolidated balance sheets.

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.

Lease liabilities are initially measured at the present value of the lease payments, which comprise fixed payments, in-substance fixed payments, variable lease payments which depend on an index or a rate. 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 Group uses the lessee’s incremental borrowing rate.

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 or a change in future lease payments resulting from a change in an index or a rate used to determine those payments, the Group 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. Lease liabilities are presented on a separate line in the consolidated balance sheets.

b.The Group 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 income from operating leases is recognized on a straight-line basis over the terms of the lease. Initial direct costs incurred in obtaining operating leases are added to the carrying amounts of the underlying assets and recognized as expenses on a straight-line basis over the lease terms.

(11) Investment properties

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

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

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.

(12) Intangible assets

Intangible assets 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 life, residual value, and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. The residual value of an intangible asset with a finite useful life shall

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be assumed to be zero unless the Group expects to dispose of the intangible asset before the end of its economic life.

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.

• (13) Impairment of property, plant and equipment, right-of-use assets, investment properties and intangible assets other than goodwill

At the end of each reporting period, the Group reviews the carrying amounts of its property, plant and equipment, right-of-use assets, investment properties and other intangible assets, excluding goodwill, 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 Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to the individual cashgenerating units on a reasonable and consistent basis of allocation.

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 asset or cash-generating unit 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 for the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized in profit or loss.

(14) Provisions

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.

(15) 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 the defined benefit retirement benefit plans are determined using the projected unit credit method. Service cost (including current service cost, past service cost and gains or losses on settlements) and interest on the net defined benefit liability (asset) are recognized as employee benefits expense in the period they occur. 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 they occur. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liability (asset) represents the actual deficit (surplus) in the Group’s defined benefit plan. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.

(16) Revenue Recognition

The Group identifies the performance obligations in the contract with the customers, allocates transaction price to each performance obligation and recognizes revenue when performance obligations are satisfied.

• a. Revenue from sale of goods

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Revenue from sale of goods comes from sales of transformer, switchgear, transmission and distribution apparatus and electrical equipment. Sales of goods are recognized as revenue when the goods are delivered to the customer’s specific location or 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. Revenue and accounts receivables are recognized concurrently. Advance receipts received before the merchandise has been transferred are recognized as a contract liability.

b. Construction contract revenue

Customers control construction contract while they are construction in progress, and thus, the Group recognizes revenue over time. The Group measures the progress on the basis of costs incurred relative to the total expected costs as there is a direct relationship between the costs incurred and the progress of satisfying the performance obligations. Contract assets are recognized during the construction and are reclassified to accounts receivables at the point at which the customer is invoiced. If the milestone payments exceed the revenue recognized to date, then the Group recognizes contract liabilities for the difference. Certain payments, which are retained by the customer as specified in the contract, are intended to ensure that the Group adequately completes all of its contractual obligations. Such retention receivables are recognized as contract assets until the Group satisfies its performance obligations.

(17) Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

a. Current tax

According to the Income Tax Law of the Republic of China, an additional tax on 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.

b. Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements 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, unused loss carryforwards and unused tax credits 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 Group 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 profits 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 profits will be available to allow all or part of the asset 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

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taxable profit will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the asset realized or the liability is settled, 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 assets and liabilities reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

c. Current and deferred tax

Current and deferred taxes are recognized in profit or loss, except when they relate to items that are 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.

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Group’s accounting policies, management is required to make judgments, estimates and assumptions about 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.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

Estimated impairment of accounts receivable

The provision for impairment of account receivable is based on assumptions about risk of default and expected loss. The Group uses judgment in making these assumptions and in selecting the inputs to the impairment calculation, based on the Group’s historical experience, existing market conditions as well as forward looking estimates as of the end of each reporting period. Where the actual future cash inflows are less than expected, a material impairment loss may arise.

As of December 31, 2024 and 2023, the carrying amounts of accounts receivable were NT$3,832,658 thousand and NT$4,172,046 thousand, respectively.

6. SIGNIFICANT ACCOUNTS DISCLOSURES

• (1) Cash and cash equivalents

Cash and cash equivalents
Petty cash and cash on hand Checking accounts and demand deposits Cash equivalents (Time deposits with original maturities less than one year) Total	2024.12.31 $ 1,484 999,008 22,750 $ 1,023,242	2023.12.31
		$ 10,185 712,094 28,800
		$ 751,079

～ 17 ～

• (2) Financial assets and liabilities at fair value through profit or loss (FVTPL)

Financial assets Financial assets mandatorily classified as at FVTPL Redemption and put option of convertible bonds Financial liabilites Financial liabilities mandatorily classified as at FVTPL Foreign exchange contracts Redemption and put option of convertible bonds	2024.12.31 $ 69 $ (98 ) － $ (98 )	2023.12.31 $ － － (1,064) $ (1,064 )

• a. The Group entered into forward exchange contracts to manage exposures due to fluctuations of foreign exchange rates. These forward exchange contracts did not meet the criteria for hedge accounting. Therefore, the Group did not apply hedge accounting treatment for these forward exchange contracts.

• b. Outstanding forward exchange contracts consisted of the following:

	2024.12.31	MaturityDate		Contract	Amount	Amount
	Sell NTD/Buy CNY	2024.10.22-2025.02.20		CNY 3,500 /NTD		15,791
	Financial assets at fair value through other comprehensive			income (FVTOCI)
			2024.12.31		2023.12.31
	Listed shares	$		142,350 $		31,612
	Unlisted shares			131,038		174,916
	Total	$		273,388$		206,528
	Current	$		142,350 $		31,612
	Non-current			131,038		174,916
	Total	$		273,388$		206,528

• (3) Financial assets at fair value through other comprehensive income (FVTOCI)

As of December 31, 2024 and 2023, FVTOCI were not pledged as collateral for bank borrowings.

• (4) Notes receivable and accounts receivable

Notes receivable Less: Allowance for impairment loss Notes receivable, net Accounts receivable Less：Unrealized interest income Allowance for impairment loss Accounts receivable, net Accounts receivable from related parties	2024.12.31 $ 95,882 (485) $ 95,397 $ 3,938,674 (35,800 ) (83,146) $ 3,819,728 $ 12,930	2023.12.31 $ 211,343 (1,102) $ 210,241 $ 4,271,452 (34,805 ) (96,195) $ 4,140,452 $ 31,594

～ 18 ～

The Group applies the simplified approach to allowing for expected credit losses prescribed by IFRS 9, which permits the use of lifetime expected loss allowances for all accounts receivables. The expected credit losses on accounts receivables are estimated with reference to past default experiences 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 forecasted direction of economic conditions at the reporting date.

All notes receivable were not past due.

The following table details the loss allowance of accounts receivables:

2024.12.31

2024.12.31
Not Past Due Past Due 0- 3 Months Past Due 3- 6 Months Past Due 6-9 Months Gross carrying amount $ 2,476,307 $ 900,502 $ 237,206 $ 170,041 Loss allowance (4,955 ) (6,987 ) (4,482 ) (22,551 Amortized cost $ 2,471,352 $ 893,515 $ 232,724 $ 147,490 2023.12.31 Not Past Due Past Due 0- 3 Months Past Due 3- 6 Months Past Due 6-9 Months Gross carrying amount $ 3,049,399$740,922$143,544$ 183,433 Loss allowance (47,721 ) (7,299 ) (1,408 ) (5,752 ) Amortized cost $ 3,001,678$733,623$142,136$ 177,681	Past Due 6-9 Months	Past Due 9- 12 Months	Past Due 1-2years
		$ 87,058 ) (11,523 ) $ 75,535 Past Due 9- 12 Months
			$ 30,501
			Past Due 1-2years
		$122,817 (7,604 ) $115,213
			$ 29,076

The movements of the loss allowance of notes receivable and accounts receivables were as follows:

Balance, beginning of the year Loss allowance recognized (reversal) Amounts written off Effect of foreign currency exchange differences Balance, end of the year	2024.12.31 $ 97,297 (5,923 ) (8,004 ) 261 $ 83,631	2023.12.31 $ 76,496 21,694 (823 ) (70) $ 97,297

• (5) Other receivables, net

Pledged time deposits Loan receivable Restricted deposit Others Other receivables, net	2024.12.31 $ 4,734 20,466 9,863 23,575 $ 58,638	2023.12.31 $ 4,663 20,472 19,850 43,115 $ 88,100

～ 19 ～

Current Non-current Total (6) Inventories Finished goods Work-in-process Raw materials Inventory in transit Inventories, net	2024.12.31 $ 58,231 407 $ 58,638 2024.12.31 $ 427,831 475,426 1,414,346 56,745 $ 2,374,348	2023.12.31 $ 87,695 405 $ 88,100 2023.12.31 $ 633,527 628,264 1,299,950 87,812 $ 2,649,553

For the cost of inventories recognized as cost of goods sold for the years ended December 31, 2024 and 2023, please refer to Note 6(20).

For the years ended December 31, 2024 and 2023, write-down of inventories to net realizable value were included in the cost of goods sold as follows:

			2024		2023
Inventory losses		$		287 $	23,005
As of the above-mentioned balance sheet date,			inventory has not been pledged
as collateral for bank loans.
Investments accounted for using equity	method
	2024.12.31			2023.12.31
	% of			% of
Name of Associates	Ownership		Amount	Ownership	Amount
Nissin-Allis Electric Co., Ltd.	30.00%	$	296,874	30.00%	$ 275,995
Nissin Allis Union Ion Equipment Co., Ltd.	40.00%		92,327	40.00%	91,151
AYM International Corporation	40.00%		－	40.00%	－
Intelici Corporation	29.16%		－	29.16%	－
Total		$	389,201		$ 367,146

• (7) Investments accounted for using equity method

The aforementioned associates were not listed companies and immaterial to the Group.

Aggregate information of associates that are not individually material:

Equity	2024.12.31 $ 1,230,143	2023.12.31 $ 1,153,115

～ 20 ～

The Group’s share of : Net income for the year Other comprehensive income (loss) Total comprehensive income (loss) for the year	2024 $ 71,197 3,205 $ 74,402	2023 $ 76,764 (1,378) $ 75,386

(8) Property, plant and equipment

Land Buildings Machinery and equipment Transportation equipment Other equipment Construction in progress Total carrying amounts Cost Land Balance at January 1, 2024 $ 757,675 Additions 32,039 Disposals － Internal transfer － Transfer from investment properties － Effect of foreign currency exchange differences － Balance at December 31, 2024 $ 789,714 Accumulated depreciation and impairment Balance at January 1, 2024 $ － Depreciation expense － Disposals － Transfer from investment properties Effect of foreign currency exchange differences － Balance at December 31, 2024 $ － Carrying amounts at December 31, 2024 $ 789,714	Land Buildings Machinery and equipment Transportation equipment Other equipment Construction in progress Total carrying amounts Cost Land Balance at January 1, 2024 $ 757,675 Additions 32,039 Disposals － Internal transfer － Transfer from investment properties － Effect of foreign currency exchange differences － Balance at December 31, 2024 $ 789,714 Accumulated depreciation and impairment Balance at January 1, 2024 $ － Depreciation expense － Disposals － Transfer from investment properties Effect of foreign currency exchange differences － Balance at December 31, 2024 $ － Carrying amounts at December 31, 2024 $ 789,714	Buildings	2024.12.31 2023.12.31 $ 789,714 $ 757,675 708,202 443,632 121,915 99,474 12,380 12,922 96,630 60,279 － 285,537 $ 1,728,841 $ 1,659,519 Machinery and Equipment Transportation Equipment Other Equipment Construction in Progress Total $ 511,047 $ 47,680 $ 171,249 $ 285,537 $ 2,643,923 42,800 1,990 47,356 (4,711 ) 125,050 (7,135 ) (982 ) (3,506 ) － (11,623 ) － － 644 (280,826 ) － － － － － 3,309 68 7 172 － 247 $ 546,780$ 48,695$215,915$ － $2,760,906 $ 411,573 $ 34,758 $ 110,970 $ －$ 984,404 20,351 2,514 11,357 57,233 (7,109 ) (964 ) (3,164 ) － (11,237 ) － － － － 1,486 50 7 122 － 179 $ 424,865 $ 36,315 $ 119,285 $ －$ 1,032,065 $ 121,915 $ 12,380 $ 96,630 $ －$ 1,728,841
	$ 757,675 32,039 － － － －	$ 870,735 5,576 － 280,182 3,309 －
	$ 789,714	$1,159,802	$ 546,780
	$ － － － －	$ 427,103 23,011 － 1,486 －
	$ －	$ 451,600	$ 424,865
	$ 789,714	$ 708,202	$ 121,915

～ 21 ～

Cost Balance at January 1, 2023 Additions Disposals Effect of foreign currency exchange differences Balance at December 31, 2023 Accumulated depreciation and impairment Balance at January 1, 2023 Impairment loss Depreciation expense Disposals Effect of foreign currency exchange differences Balance at December 31, 2023 Carrying amounts at December 31, 2023	Land	Buildings $ 870,554 181 － － $ 870,735 $ 408,217 － 18,886 － － $ 427,103 $ 443,632	Machinery and Equipment Transportation Equipment Other Equipment Construction in Progress $ 465,735 $ 44,912 $ 169,191 $ 222,197 67,976 4,187 11,331 63,340 (23,291 ) (1,406 ) (9,271 ) － 627 (13 ) (2 ) － $ 511,047 $ 47,680 $ 171,249 $ 285,537 $ 394,483 $ 34,081 $ 111,226 $ － 25,000 － － － 14,852 2,093 9,006 － (23,291 ) (1,406 ) (9,258 ) － 529 (10 ) (4 ) － $ 411,573 $ 34,758 $ 110,970 $ － $ 99,474 $ 12,922 $ 60,279 $ 285,537	Total $ 2,484,566 192,713 (33,968 ) 612 $ 2,643,923 $ 948,007 25,000 44,837 (33,955 ) 515 $ 984,404 $ 1,659,519
	$ 711,977 45,698 － －
	$ 757,675
	$ － － － －
	$ －
	$ 757,675

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

Buildings	3-55 years
Machinery and equipment	3-13 years
Transportation equipment	5-13 years
Other equipment	3-13 years

• b. For the carrying amount of property, plant and equipment pledged as collateral for bank borrowings, please refer to Note 8.

• c. For the years ended December 31, 2024 and 2023, capitalized interests were NT$1,324 thousand and NT$5,006 thousand, respectively; capitalization rate were 1.836% and 1.74%~1.94%, respectively.

• d. For the year ended 2023, an impairment loss of NT$25,000 thousand was recognized for certain idle machinery and equipment, accounted for as other gains and losses.

• e. As of December 31, 2024 and 2023, the titles to farmland with carrying amounts of NT46,006 thousand were temporarily registered under the names of Herr-Yeh Sung and Mei-Qiu Sung, who had signed agreements and pledged the land to the Company.

～ 22 ～

(9) Right-of-use assets

Buildings Transportation equipment Other equipment Total carrying amounts Cost	Buildings $ － 3,399 － － $ 3,399 $ － 412 － － $ 412 $ 2,987 Buildings $ 761 － (761 ) － $ － $ 761 (761 ) － $ － $ －	2024.12.31 2023.12.31 $ 2,987 $ － 1,041 1,264 5,086 2,759 $ 9,114 $ 4,023 Transportation Equipment Other Equipment Total $ 2,138 $ 16,249 $ 18,387 640 5,264 9,303 (531 ) (13,858 ) (14,389) 78 57 135 $ 2,325 $ 7,712 $ 13,436 $ 874 $ 13,490 $ 14,364 729 2,980 4,121 (370 ) (13,858 ) (14,228) 51 14 65 $ 1,284$ 2,626$ 4,322 $ 1,041$ 5,086$ 9,114 Transportation Equipment Other Equipment Total $ 2,568 $ 13,858 $ 17,187 584 2,409 2,993 (871 ) － (1,632) (143) (18) (161 ) $ 2,138 $ 16,249 $ 18,387 $ 1,193 $ 10,393 $ 12,347 608 3,102 3,710 (871 ) － (1,632 ) (56) (5) (61 ) $ 874$ 13,490$ 14,364 $ 1,264$ 2,759$ 4,023
Balance at January 1, 2024 Additions Decrease Effect of foreign currency exchange differences Balance at December 31, 2024 Accumulated depreciation
Balance at January 1, 2024 Depreciation expense Decrease Effect of foreign currency exchange differences Balance at December 31, 2024 Carrying amounts at December 31, 2024 Cost
Balance at January 1, 2023 Additions Decrease Effect of foreign currency exchange differences Balance at December 31, 2023 Accumulated depreciation
Balance at January 1, 2023 Depreciation expense Decrease Effect of foreign currency exchange differences Balance at December 31, 2023 Carrying amounts at December 31, 2023

～ 23 ～

(10) Investment properties

Land Buildings Total carrying amounts Cost Balance at January 1, 2024 Additions Transfer to property, plant and equipment Balance at December 31, 2024 Accumulated depreciation Balance at January 1, 2024 Depreciation expense Transfer to property, plant and equipment Balance at December 31, 2024 Carrying amounts at December 31, 2024 Cost Balance at January 1, 2023 Additions Balance at December 31, 2023 Accumulated depreciation Balance at January 1, 2023 Depreciation expense Balance at December 31, 2023 Carrying amounts at December 31, 2023		2024.12.31 2023.12.31 $ 308,269 $ 308,269 39,254 43,134 $ 347,523$ 351,403 Land Buildings Total 308,269 $ 74,077 $ 382,346 － － － － (3,309) (3,309) 308,269$ 70,768$ 379,037 －$ 30,943 $ 30,943 － 2,057 2,057 (1,486) (1,486) － $ 31,514$ 31,514 308,269$ 39,254$ 347,523 Land Buildings Total 308,269 $ 74,077 $ 382,346 － － － 308,269$ 74,077$ 382,346 －$ 28,794 $ 28,794 － 2,149 2,149 － $ 30,943 $ 30,943 308,269$ 43,134$ 351,403		2023.12.31
		$	$	308,269 43,134
		$	$	351,403
		Land 308,269 － － 308,269 － － － 308,269 Land 308,269 － 308,269 － － － 308,269
	$
	$
	$
	$
	$
	$
	$
	$
	$
	$

• a. The investment properties held by the Group are depreciated on a straight-line basis over the estimated useful lives of 45 to 60 years.

• b. For the carrying amount of investment properties pledged as collateral for bank borrowings, please refer to Note 8.

• c. The fair values of the investment properties owned by the Group were NT$734,142 thousand and NT$594,089 thousand as of December 31, 2024 and 2023, respectively. The fair value of investment properties was measured using the comparison approach with unobservable inputs (Level 3).

～ 24 ～

(11) Intangible assets

Computer software Other intangible assets Total carrying amounts Cost Balance at January 1, 2024 Additions Decrease Effect of foreign currency exchange differences Balance at December 31, 2024 Accumulated amortization Balance at January 1, 2024 Amortization expense Decrease Effect of foreign currency exchange differences Balance at December 31, 2024 Carrying amounts at December 31, 2024 Cost Balance at January 1, 2023 Additions Decrease Effect of foreign currency exchange differences Balance at December 31, 2023 Accumulated amortization Balance at January 1, 2023 Amortization expense Decrease Effect of foreign currency exchange differences Balance at December 31, 2023 Carrying amounts at December 31, 2023	Computer Software $ 45,102 9,046 (4,072 ) 136 $ 50,212 $ 43,403 2,230 (4,072) 2 $ 41,563 $ 8,649 Computer Software $ 44,702 398 － 2 $ 45,102 $ 42,348 1,056 － (1 ) $ 43,403 $ 1,699	2024.12.31 $ 8,649 18,249 $ 26,898 Other Intangible Assets $ 73,642 $ 15,826 (11,896 ) (1 ) $ 77,571 $ $ 67,986 $ 3,122 (11,896 ) 110 $ 59,322 $ $ 18,249 $ Other Intangible Assets $ 72,901 $ 971 (1,601 ) 1,371 $ 73,642 $ $ 64,678 $ 3,668 (1,601 ) 1,241 $ 67,986 $ $ 5,656 $	2024.12.31 $ 8,649 18,249 $ 26,898 Other Intangible Assets $ 73,642 $ 15,826 (11,896 ) (1 ) $ 77,571 $ $ 67,986 $ 3,122 (11,896 ) 110 $ 59,322 $ $ 18,249 $ Other Intangible Assets $ 72,901 $ 971 (1,601 ) 1,371 $ 73,642 $ $ 64,678 $ 3,668 (1,601 ) 1,241 $ 67,986 $ $ 5,656 $	2023.12.31 $ 1,699 5,656 $ 7,355 Total 118,744 24,872 (15,968) 135 127,783 111,389 5,352 (15,968) 112 100,885 26,898 Total 117,603 1,369 (1,601 ) 1,373 118,744 107,026 4,724 (1,601) 1,240 111,389 7,355
			$
			$
			$
			$
			$
			$
			$
			$
			$
			$

～ 25 ～

The above items of intangible assets are amortized on a straight-line basis over the estimated useful lives as follows:

(12) (13) (14)	Computer software 2-7 years Other intangible assets 3-10 years Other assets 2024.12.31 Golf club card $ 12,847 Others 4,250 Less: Accumulated impairment (3,099) Total $ 13,998 Current $ 4,250 Non-current 9,748 Total $ 13,998 Short-term loans 2024.12.31 Unsecured loans $ 1,040,000 Secured loans 930,000 Total $ 1,970,000 Annual interest rate 1.875%~2.32% Provisions Warranty provision 2024 Balance, beginning of the year $ 12,100 Provisions recognized 5,922 Utilized (5,922 ) Balance, end of the year $ 12,100	2023.12.31 $ 12,847 2,322 (3,099) $ 12,070 $ 2,322 9,748 $ 12,070 2023.12.31 $ 1,180,000 744,000 $ 1,924,000 0.50%~2.39% 2023 $ 12,100 4,260 (4,260) $ 12,100

Provisions were estimated based on historical experience, management judgment, and any known factors that would significantly affect the warranty.

(15) Bonds payable

Domestic unsecured convertible bonds Less: Discounts on bonds payable Bonds payable	2024.12.31 2023.12.31 $ 10,400 $ 626,100 (710) (54,036) $ 9,690$ 572,064

～ 26 ～

On August 17, 2023, the Company issued its first domestic 5-year unsecured zerocoupon convertible bonds, comprising 10,000 units with a face value of NT$100 thousand each and a total principal amount of NT$1,000,000 thousand. The bonds were issued at 100.5% of their face value.

Bondholders are entitled to convert bonds into the Company’s ordinary shares at price per share from November 18, 2023 (three months after the issuance date) to August 17, 2028 (the maturity date), except for the period of suspension of transfer stipulated by legal order or conversion measures. The conversion price was set at NT$ 67 per share, and the subsequent conversion price will be adjusted in accordance with the provisions of the issuance measures in case of ex-rights or ex-dividends in the issuance measures.

If the closing price of the Company’s ordinary shares exceeds the conversion price by 30% or more for 30 consecutive trading days or the aggregate outstanding balance of bonds payable is less than 10% of the original issuance amount, the Company has the right to redeem the outstanding bonds payable at face value in cash during the period from November 18, 2023 (three months after the issuance date) to July 8, 2028 (40 days prior to the maturity date).

The bondholders have the right to require the Company to redeem any bonds in cash at 100.7519% of the face value on August 17, 2026 (the third anniversary of the issuance date).

The amount of the face value of the convertible bonds has to be fully paid off in cash at maturity by the Company.

As of December 31, 2024 and 2023, the convertible bonds with a face value of NT$989,600 thousand and NT$373,900 thousand, respectively, were converted to 15,469 thousand and 5,844 thousand ordinary shares.

The effective interest rate of the liability component was 1.972% per annum on initial recognition.

Proceeds from issuance (less transaction costs) Equity component (less transaction costs allocated to the equity component) Redemption and put option Liability component at the date of issue (less transaction costs allocated to the liability component) Interest charged at an effective interest rate Conversion of bonds payable to ordinary shares Liability component on December 31, 2023 Interest charged at an effective interest rate Conversion of bonds payable to ordinary shares Liability component on December 31, 2024

Amount $ 999,615 (83,247 ) (9,400) 906,968 6,382 (341,286) 572,064 2,287 (564,661 ) $ 9,690

～ 27 ～

(16) Long-term loans

g-term loans
Item		2024.12.31	2023.12.31
Unsecured loans	$	5,338 $	9,460
Secured loans		210,290	201,203
Subtotal		215,628	210,663
Less: Current portion of
long-term loans		(29,762 )	(30,586)
Total	$	185,866$	180,077
Annual Interest Rate		1.25%~8.85%	1.275%~4.75%

• (17) Retirement benefit plans

• a. Defined contribution plans

The Company and domestic subsidiaries adopted a pension plan under the R.O.C. Labor Pension Act (the “LPA”), which is a state-managed defined contribution plan. Under the LPA, an entity makes monthly contributions to employees’ individual pension accounts at 6% of monthly salaries and wages. For employee benefit expenses under the defined contribution plan for the years ended December 31, 2024 and 2023, please refer to Note 6(24).

b. Defined benefit plans

The defined benefit plan adopted by the Company and certain domestic subsidiaries in accordance with the R.O.C. Labor Standards Law is operated by the government. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the 6 months before retirement. Except Air King Industrial Co., Ltd. has terminated the pension contribution from 2011, the Company and Ares Technology Co., Ltd. contribute amounts equal to 8.9% and 2%, respectively, 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 Group 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 Group is required to fund the difference in one appropriation that should be made before the end of March of the following year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (“the Bureau”); the Group has no right to influence the investment policy and strategy.

The amounts included in the consolidated balance sheets in respect of the Group’s defined benefit plans were as follows:

Present value of defined benefit obligation Fair value of plan assets Net defined benefit assets (liabilities) Accounted for as net defined benefit liabilities Accounted for as net defined benefit assets	2024.12.31 $ (403,481) 440,827 $ 37,346 $ － $ 37,346	2023.12.31 $ (418,112) 406,975 $ (11,137) $ (14,065) $ 2,928

Movements in the present value of the defined benefit obligation were as follows:

～ 28 ～

Balance, beginning of year Current service cost Interest expense Remeasurement Actuarial loss (gain) - changes in financial assumptions Actuarial loss - experience adjustments Benefits paid Balance, end of year	2024 $ 418,112 245 4,586 (6,616) 14,795 (27,641) $ 403,481	2023 $ 432,756 382 5,152 1,859 11,242 (33,279) $ 418,112

Movements in the fair value of the plan assets were as follows:

Balance, beginning of year Interest revenue Remeasurement Return on plan assets (excluding amounts included in net interest expense) Contributions from employer Benefits paid Balance, end of year	2024 $ 406,975 4,548 37,736 19,209 (27,641) $ 440,827	2023 $ 416,087 5,047 3,723 15,397 (33,279) $ 406,975

For information on the utilization of the labor pension fund assets, including the yield of the fund and assets allocation, please refer to the website of the Bureau.

The pension costs of the defined benefit plans were recognized as follows:

Current service cost Net interest expense Total	2024 $ 245 38 $ 283	2023
		$ 382 105
		$ 487

Through the defined benefit plans under the Labor Standards Law, the Group is exposed to the following risks:

 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 should not be below the interest rate for a 2 year time deposit with local banks.

 Interest risk: A decrease in the government bond interest rate will increase the

～ 29 ～

present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plan’s debt investments.

• Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such an increase in the salary 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 were as follows:

Discount rate Expected rate of salary increase	Measurement Date 2024.12.31 2023.12.31 1.5%~1.6% 1.1%~1.2% 0.5%~3.0% 0.5%~3.0%
	2024.12.31 1.5%~1.6% 0.5%~3.0%

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

Discount rates 0.1 % increase 0.1 % decrease Expected rate of salary increase 0.1 % increase 0.1 % decrease The expected contributions to the plan for the next year The average duration of the defined benefit obligation		2024.12.31 $ (1,692) 1,710 $ 1,385 (1,373) 2024.12.31 $15,300 4.1~7.2 years	2023.12.31 $ (1,952) 1,972 $ 1,609 (1,594) 2023.12.31 $15,372 4.5~8.2 years

(18) Equity

a. Ordinary shares

Authorized share capital Issued share capital The par value is NT$10 dollars.	2024.12.31 $ 3,500,000 $ 2,675,437	2023.12.31 $3,500,000 $2,469,353

As of December 31, 2024, the convertible bonds with a face value of NT$989,600 thousand were converted into 15,469 thousand ordinary shares, of which 15,425 thousand shares have been registered and recorded as part of ordinary shares.

～ 30 ～

The capitalization of retained earnings of NT$51,834 thousand and issuance of 5,183 thousand shares have been approved in the stockholders’ meeting on June 26, 2024. The ex-right date was September 15, 2024 and the stock issuance date was October 14, 2024.

The capitalization of retained earnings of NT$71,923 thousand and issuance of 7,192 thousand shares have been approved in the stockholders’ meeting on June 21, 2023. The ex-right date was September 3, 2023 and the stock issuance date was October 2, 2023.

b. Bond conversion entitlement certificates

Bond conversion entitlement certificates	2024.12.31 $ 435	2023.12.31 $ 58,439

As of December 31, 2024 and 2023, the convertible bonds with a face value of NT$2,700 thousand and NT$373,900 thousand, respeceively, were converted to 44 thousand and 5,844 thousand ordinary shares. As the registration of the changes was not completed, bond conversion entitlement certificates were recognized.

c. Capital surplus

From the issuance of ordinary shares From treasury stock transactions From difference between consideration and carrying amount arising from actual acquisition or disposal of subsidiaries From donations Equity component of convertible bonds payable	2024.12.31 $ 887,138 95,045 939 1,594 866 $ 985,582	2023.12.31 $ 371,348 15,245 610 1,601 52,121 $ 440,925

Under Company Act, the capital surplus arising from shares issued in excess of par (including share premium from the issuance of ordinary stock and treasury stock transactions) and donations 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 once a year within a certain percentage of the Company’s paid-in capital.

• d. Retained Earnings and Dividend Policy

• Under the dividend policy as set forth in the Company’s Articles of Incorporation, where the Company made profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit, setting aside or reversing a special reserve in accordance with the laws and regulations or in the necessary situation, and then any remaining profit together with any undistributed retained earnings shall be used for distribution of dividends and bonuses to shareholders.

The Company considers its long-term financial planning, future funding requirements, interest of shareholders as well as the amount of capital surplus, retained earnings and profit forecast when determining the stock dividends or cash

～ 31 ～

dividends to be paid. However, distribution of earnings shall be made preferably by way of cash dividends. Distribution of earnings may also be made by way of stock dividends, provided that the ratio for stock dividends shall not exceed 50% of the total distribution.

• Appropriation of earnings to the legal reserve shall be made until the legal reserve equals the Company’s paid-in capital. The legal reserve may be used to offset deficits. 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. 1010012865 and Rule No. 1010047490 issued by the FSC and the directive titled “Questions and Answers for Special Reserves Appropriated Following Adoption of IFRSs” should be appropriated to or reversed from a special reserve by the Company. For any subsequent reversal of the deduction in other shareholders’ equity, the appropriate amount of earnings distribution should be reversed from the net debit balance.

• The appropriations of earnings for 2023 and 2022 approved in the shareholders’ general meetings on June 26, 2024 and June 21, 2023, respectively.

The appropriations of 2023 and 2022 earnings were as follows:

Legal reserve Cash dividends Stock dividends	2023 $ 74,150 414,672 51,834 $ 540,656	2022 $ 54,288 239,744 71,923 $ 365,955

The appropriations of earnings for 2024 were proposed by the Company’s board of directors on March 13, 2025 as follows:

Legal reserve Cash dividends Stock dividends	2024 $ 83,414 455,046 53,535 $ 591,995

The appropriations of 2024 earnings are subject to the resolution of the shareholders’ meeting to be held on June 11, 2025.

• e. Special reserves

Balance, beginning of year Reversal: Depreciation expense on investment properties Balance, end of year	2024 ＄ 449,780 (803) ＄ 448,977	2023 ＄ 450,584 (804) ＄ 449,780

～ 32 ～

f. Non-controlling interests

Balance, beginning of year Attributable to non-controlling interests Net income Exchange differences on translating foreign operation Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income Remeasurement of defined benefit plans Sale of the Company’s shares held by subsidaries Cash dividends distributed by subsidiaries Cash dividends distributed to subsidiaries Changes in ownership interests in subsidiaries Change in equity of subsidiaries accounted for using equity method Balance, end of year	2024 $ 100,149 9,582 1,298 (247) 55 53 (9,589) 2 1,933 － $ 103,236	2023 $ 88,443 15,662 (461 ) 391 98 － (3,626 ) 1 － (359 ) $ 100,149

g. Treasury stock

(In thousands of shares)

Shares held by the subsidiaries	2024.12.31 2,195	2023.12.31 2,902

The Company’s shares held by the subsidiary, Yishun Investment Co., Ltd., are accounted for as treasury stock. As of December 31, 2024 and 2023, the book value of treasury stock was NT$30,866 thousand and 41,616 thousand, respectively; the market value of treasury stock was NT$220,565 thousand and NT$217,918 thousand, respectively.

The Company’s shares held by subsidiaries are regarded for as treasury stock with all shareholders’ rights, except the rights to participate in the Company’s capital increase in cash and right to vote.

(19) Operating revenue

increase in cash and right to vote. Operating revenue
Revenue from sale of goods Construction contract revenue Other operating revenue Operating cost Cost of goods sold Construction contract cost Other operating cost	2024 $ 7,501,387 1,355,033 21,458 $ 8,877,878 2024 $ 6,060,918 1,106,090 7,149 $7,174,157	2023
		$ 7,501,275 1,957,849 24,268
		$ 9,483,392
		2023
		$ 6,125,533 1,663,893 8,090
		$ 7,797,516

(20) Operating cost

～ 33 ～

(21) Other income

Interest income Bank deposits Others Rental income Dividend Income Others (22) Other gains and losses Net foreign exchange gain (loss) Net gain on financial instruments at fair value through profit or loss Net gain (loss) on disposal of property, plant and equipment Impairment loss Depreciation on investment properties Other losses (23) Finance costs Interest on bank loans Interest on lease liabilities Interest on convertible bonds Others (24) Additional information of expenses by nature Net income included the following items: Depreciation and amortization expense Depreciation on property, plant and equipment Depreciation on right-of-use assets Depreciation on investment properties Amortization on intangible assets Total	2024 $ 6,513 674 13,273 5,545 7,572 $ 33,577 2024 $ 33,114 5,052 (386) － (2,057) (3,147) $ 32,576 2024 $ 41,100 421 2,287 45 $ 43,853 2024 $ 57,233 4,121 2,057 5,352 $ 68,763	2023 $ 4,686 1,252 13,134 5,745 6,623 $ 31,440 2023 $ (32,795) 10,829 25 (25,000) (2,149) (3,727) $ (52,817) 2023 $ 48,851 86 6,382 41 $ 55,360 2023 $ 44,837 3,710 2,149 4,724 $ 55,420

～ 34 ～

Operating expenses directly related to investment properties:

Direct operating expenses of investment properties that generated rental income Direct operating expenses of investment properties that did not generate rental income Total Research and development costs expensed as incurred Employee benefits expense Post-employment benefits (Note 6(17)) Defined contribution plans Defined benefit plans Subtotal Salaries and bonus expense Insurance expense Others Total	2024 $ 1,196 5 $ 1,201 $121,500 2024 $ 26,749 283 27,032 806,692 68,097 37,228 $ 939,049	2023 $ 952 5 $ 957 $123,520 2023 $ 25,389 487 25,876 800,543 60,802 31,454 $918,675

According to Articles of Incorporation, the Company accrued employees’ compensation and remuneration of directors at the rates of 4% and no higher than 2%, respectively, of net profit before income tax, employees’ compensation, and remuneration of directors. The employees’ compensation and remuneration of directors for the years ended December 31, 2024 and 2023 were as follows:

Employees’ compensation Remuneration of directors	2024 $ 41,050 20,525 $ 61,575	2023 $ 38,206 19,103 $ 57,309

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

There is no difference between the actual amounts of employees’ compensation and remuneration of directors paid and the amounts recognized in the consolidated financial statements for the year ended December 31, 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.

(25) Income taxes

• a. Income tax expense recognized in profit or loss

• Major components of income tax expense ：

～ 35 ～

		2024		2023
Current tax
In respect of the current year	$	163,899	$	170,307
Adjustments for prior years		1,088		12,569
Subtotal		164,987		182,876
Deferred tax
Origination and reversal of temporary
differences		16,264		(12,899 )
Income tax expense	$	181,251	$	169,977
A reconciliation of accounting profit and income tax expense was as			follows:
		2024		2023
Income before tax	$	992,057	$	937,338
Income tax expense calculated at the statutory
rate	$	208,488	$	207,077
Tax effect of adjusting items:
Tax-exempt income		(2,181 )		(5,357 )
Investment gain		3,618		－
Nondeductible items in determining taxable
income		1,384		382
Origination and reversal of temporary
differences		(44,671 )		(21,664 )
Income tax on unappropriated earnings		3,956		2,790
Loss carryforwards		(249 )		(4,018 )
Investment tax credit		(6,446 )		(8,903 )
Adjustments for prior years		1,088		12,569
Current tax		164,987		182,876
Deferred tax
Origination and reversal of temporary
differences		16,264		(12,899 )
Income tax expense	$	181,251	$	169,977
Income tax recognized in other comprehensive income
		2024		2023
Deferred income tax expense
Related to remeasurement of defined benefit
plans	$	(81 )	$	(146)

～ 36 ～

 Income tax recognized directly in equity

Current income tax Disposal of equity instruments measured at fair value through other comprehensive income	2024 $ (4,975)	2023
		$ －

The Group applied a tax rate of 20% for entities subject to the R.O.C. Income Tax Law; for other jurisdictions, the Group measures taxes by using the applicable tax rate for each individual jurisdiction.

• b. Deferred tax assets

The movements of deferred tax assets (liabilities) were as follows:

2024

2024
					Recognized in		Effect of Foreign
			Recognized			Other		Currency
		Opening	in	Profit or	Comprehensive			Exchange		Closing
Deferred tax assets		Balance		Loss	Income(Loss)			Differences		Balance
Temporary differences
Allowance for inventory
loss	$	18,875	$	(6,630 )	$	－	$	－	$	12,245
Payable for annual leave		4,932		284		－		－		5,216
Unrealized exchange
losses (gains)		6,669		(9,172 )		－		－		(2,503 )
Impairment loss		5,000		(583 )		－		－		4,417
Others		8,241		(644 )		－		38		7,635
Total	$	43,717	$	(16,745 )	$	－	$	38	$	27,010
					Recognized in		Effect of Foreign
			Recognized			Other		Currency
		Opening	in	Profit or	Comprehensive			Exchange		Closing
Deferred tax liabilities		Balance		Loss	Income(Loss)			Differences		Balance
Land value increment
tax	$	(174,220 )	$	－	$	－	$	－	$	(174,220 )
Others		(656 )		481		(81 )		－		(256 )
Total	$	(174,876 )	$	481	$	(81 )	$	－	$	(174,476 )
2023
					Recognized in		Effect of Foreign
			Recognized			Other		Currency
		Opening	in	Profit or	Comprehensive			Exchange		Closing
Deferred tax assets		Balance		Loss	Income(Loss)			Differences		Balance
Temporary differences
Allowance for inventory
loss	$	14,274	$	4,601	$	－	$	－	$	18,875
Payable for annual leave		4,867		65		－		－		4,932
Unrealized exchange
losses (gains)		(388 )		7,057		－		－		6,669
Impairment loss		－		5,000				－		5,000
Others		11,706		(3,746 )		－		281		8,241
Total	$	30,459	$	12,977	$	－	$	281	$	43,717

～ 37 ～

				Recognized in	Effect of Foreign	Effect of Foreign
		Recognized		Other		Currency
	Opening	in	Profit or	Comprehensive		Exchange	Closing
Deferred tax liabilities	Balance		Loss	Income(Loss)		Differences	Balance
Land value increment
tax	$ (174,220 )	$	－	$ －	$	－$	(174,220 )
Others	(432 )		(78)	(146)		－	(656)
Total	$(174,652)	$	(78 )	$ (146)	$	－$	(174,876 )

• c. Information about loss carryforwards

As of December 31, 2024, unused loss carryforwards and expiry year were as follows:

	UnusedAmount	Expiry Year
$	12,513	2026
	12,546	2028
	15,649	2029
	6,061	2030
	4,165	2031
	2,416	2034
$	53,350

• d. Deductible temporary differences and unused loss carryforwards for which no deferred tax assets have been recognized

eferred tax assets have been recognized
Loss carryforwards Deductible temporary differences Total	2024.12.31 $ 50,551 45,638 $ 96,189	2023.12.31
		$ 54,611 58,120
		$ 112,731

e. Income tax assessments

The income tax returns of the Company, Ares Technology Co., Ltd., Allis Communications Co., Ltd. and Yishun Investment Co., Ltd. through 2022 have been assessed by the tax authority. The income tax return of Air King Industrial Co., Ltd. through 2021 has been assessed by the tax authority.

(26) Earnings per share

Basic earnings per share (NT$) Diluted earnings per share (NT$)	2024 $ 3.04 $ 3.00	2023
		$ 3.02
		$ 2.93

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

～ 38 ～

Net income for the year attributable to owners of the Company Net income in the computation of basic earnings per share Effects of potentially dilutive ordinary shares After-tax interest on convertible bonds Valuation gain on redemption and put option of convertible bonds Net income in the computation of diluted earnings per share Shares Weighted average number of ordinary shares in computation of basic earnings per share ( in thousands of shares) Effects of potentially dilutive ordinary shares Convertible bonds Employees’ compensation Weighted average number of ordinary shares in the computation of diluted earnings per share (in thousands of shares)	2024 $ 801,224 $ 801,224 2,264 (4,996) $ 798,492 263,360 2,004 481 265,845	2023 $ 751,699 $ 751,699 6,319 (9,349) $ 748,669 249,182 5,656 640 255,478

Retroactive adjustments were applied to the Company’s basic earnings per share for the years ended December 31, 2024 and 2023.

(27) Non-cash transaction Partial cash investing activities: Acquisition of property, plant and equipment Decrease in other payables Cash paid (28) Significant lease agreements a. The Group as lessee Expenses relating to short-term leases Total cash outflow for leases b. The Group as lessor	2024 $ 125,050 5,284 $130,334 2024 $ 26,809 $ 31,660	2023
		$ 192,713 35,253
		$ 227,966
		2023
		$ 24,008
		$ 27,685

As of December 31, 2024 and 2023, the future lease payments receivable under operating leases of investment properties were as follows:

～ 39 ～

Not later than 1 year 1-2 years 2-3 years 3-4 years 4-5 years Later than 5 years Total	2024.12.31 $ 13,986 12,390 9,483 6,891 1,856 － $ 44,606	2023.12.31 $ 12,194 9,334 9,375 9,483 6,891 1,856 $ 49,133

(29) Capital management

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

• (30) Financial instruments

• a. Fair value of financial instruments

• ①The fair value measurements are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable, as described below:

  • ⚫ Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;

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

  • ⚫ Level 3 inputs are unobservable inputs for the asset or liability.

• ②Except as detailed below, the management of the Group considers that the carrying amounts of those financial instruments that are not measured at fair value approximate their fair values or their fair values cannot be reliably measured.

2024.12.31	Carrying Amount $ 9,690		Fair Value	Fair Value	Total $ 9,590
Financial liabilities at amortized cost -Convertible bonds		Level 1 $ －	Level 2 $ －	Level 3 $ 9,590

～ 40 ～

2023.12.31	Carrying Amount $572,064		Fair Value	Fair Value	Total $ 573,758
Financial liabilities at amortized cost -Convertible bonds		Level 1 $ －	Level 2 $ －	Level 3 $ 573,758

③Financial instruments that are measured at fair value

The following table presents the Group’s financial instruments measured at fair value on a recurring basis:

Financial assets at FVTPL Redemption and put option of convertible bonds Financial assets at FVTOCI Listed shares Unlisted shares Total Financial liabilities at FVTPL Foreign exchange contracts Financial assets at FVTOCI Listed shares Unlisted shares Total Financial liabilities at FVTPL Redemption and put option of convertible bonds		2024.12.31	2024.12.31	Total $ 69 $ 142,350 131,038 $ 273,388 $ 98 Total $ 31,612 174,916 $ 206,528 $ 1,064
	Level 1 $ － $ 142,350 － $ 142,350 $ －	Level 2 Level 3 $ － $ 69 $ － $ － － 131,038 $ － $ 131,038 $ 98 $ － 2023.12.31
	Level 1 $ 31,612 － $ 31,612 $ －	Level 2 $ － 88,633 $ 88,633 $ －	Level3 $ － 86,283 $ 86,283 $ 1,064

For the year ended December 31, 2024, due to the listing of emerging stocks, quoted prices in active markets became available. Accordingly, the fair value of NT$88,633 thousand was transferred from Level 2 to Level 1. There were no transfers between Level 1 and Level 2 for the year ended December 31, 2023.

Reconciliation of Level 3 fair value measurements of financial instruments was as follows:

～ 41 ～

Balance, beginning of year Redemption and put option of convertible bonds Convertible bonds converted into ordinary shares Recognized in profit or loss Balance, end of year Balance, beginning of year Acquistion of financial assets at FVTOCI Accounted for unrealized gains (losses) from investments in equity instruments measured at FVTOCI Balance, end of year	Financial assets (liabilities) at FVTPL 2024 2023 $ (1,064 ) $ － － (9,400 ) (3,863 ) (1,013 ) 4,996 9,349 $ 69$ (1,064 ) Financial assets at FVTOCI 2024 2023 $ 86,283 $ 220,270 13,001 35,560 31,754 (169,547) $ 131,038$ 86,283
	2024 $ (1,064 ) － (3,863 ) 4,996 $ 69 Financial assets
	2024 $ 86,283 13,001 31,754 $ 131,038

• ④ Valuation techniques and inputs applied for the purpose of Level 2 fair value measurement

The fair values of derivatives - foreign exchange forward contracts were determined using discounted cash flow approach. Future cash flows 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. The fair values of emerging stocks in non-active markets were determined using the average monthly prices.

• ⑤ Valuation techniques and inputs applied for the purpose of Level 3 fair value measurement

The fair values of unlisted equity securities were determined using the market approach. The market approach refers to the comparable market transaction price and related information to estimate the fair value of the investment target. The significant unobservable inputs are discounted prices for the lack of marketability.

The fair value of derivatives - redemption option and put option of convertible bonds were evaluated using a binary tree convertible bond valuation model based on the share price and its volatility, conversion price, risk-free interest rate, risk discount rate and duration.

～ 42 ～

b.	Categories of financial instruments Financial assets FVTPL FVTOCI Amortized cost (Note1) Total Financial liabilities FVTPL Amortized cost (Note2) Total	2024.12.31 $ 69 273,388 5,120,218 $5,393,675 2024.12.31 $ 98 4,853,391 $4,853,489	2023.12.31 $ － 206,528 5,333,616 $ 5,540,144 2023.12.31 $ 1,064 5,818,766 $ 5,819,830

Note1: The balances include cash and cash equivalents, notes and accounts receivable, other receivables, current tax assets and refundable deposits.

Note2: The balances include short-term loans, notes and accounts payable, other payables, current tax liabilities, bonds payable, long-term loans (including current portion of long-term loans), lease liabilities and guarantee deposits.

c. Financial risk management objectives and policies

The Group’s major financial risk management goal is to manage risks that relate to operating activities. These risks include currency risk, interest rate risk, credit risk and liquidity risk. In order to lower relevant financial risks, the Group identifies and assesses the risks and takes actions to manage uncertainty of the market with the objective to reduce the potentially adverse effects the market fluctuations may have on its financial performance.

The Group’s important financial activities are reviewed by the board of directors in accordance with related regulations and internal controls. Compliance with policies and exposure limits is reviewed by the internal auditors on a continuous basis.

d. Market risk

The Group’s activities exposed it primarily to the market risks of changes in foreign currency exchange rates and interest rates. The Group entered into forward exchange contracts to hedge portion of foreign exchange risk.

 Foreign currency risk

The Group undertook transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arose. The Group used foreign exchange forward contracts to partially offset the risk of foreign currency exposure. These foreign exchange forward contracts are intended to reduce the influence of the exchange rate fluctuations on the Group’s income.

The information on assets and liabilities denominated in non-functional currency whose values would be materially affected by the exchange rate fluctuations at the end of the reporting period and sensitivity analysis were as follows (in thousands of respective foreign currencies or New Taiwan dollars):

～ 43 ～

2024.12.31

Financial assets Foreign Currencies Monetary items USD $ 9,796 EUR 4,436 JPY 169,084 SGD 1,321 ZAR 21,343 AUD 4 Financial liabilities Monetary items USD 1,200 EUR 994 JPY 168,700 RMB 9,926 SGD 2,660 ZAR 10,862	Exchange Rate 32.785 34.14 0.2096 24.14 1.744 20.42 32.785 34.14 0.2096 4.484 24.14 1.744	Carrying Amounts (NTD)	SensitivityAnalysis	SensitivityAnalysis	SensitivityAnalysis
			Variations	Impact on Profit (loss) ±32,116 ±15,145 ±3,544 ±3,189 ±3,722 ±8 ∓3,934 ∓3,394 ∓3,536 ∓4,451 ∓6,421 ∓1,894	Impact on Equity
					±32,116 ±15,145 ±3,544 ±3,189 ±3,722 ±8 ∓3,934 ∓3,394 ∓3,536 ∓4,451 ∓6,421 ∓1,894

Financial assets Foreign Currencies Monetary items USD $37,494 EUR 2,095 JPY 245,352 RMB 241,001 SGD 11,861 ZAR 24,304 AUD 3 Financial liabilities Monetary items USD 3,440 EUR 720 JPY 72,300 RMB 2,911 SGD 11,581 ZAR 8,499	Exchange Rate 30.705 34.02 0.2171 4.328 23.31 1.657 21 30.705 34.02 0.2171 4.328 23.31 1.657	Carrying Amounts (NTD)	SensitivityAnalysis	SensitivityAnalysis	SensitivityAnalysis
			Variations	Impact on Profit (loss) ±115,125 ±7,127 ±5,327 ±104,305 ±27,648 ±4,027 ±6 ∓10,563 ∓2,449 ∓1,570 ∓1,260 ∓26,995 ∓1,408	Impact on Equity
		1,151,253 71,272 53,266 1,043,052 276,480 40,272 63 105,625 24,494 15,696 12,599 269,953 14,083	±10% ±10% ±10% ±10% ±10% ±10% ±10% ±10% ±10% ±10% ±10% ±10% ±10%		±115,125 ±7,127 ±5,327 ±104,305 ±27,648 ±4,027 ±6 ∓10,563 ∓2,449 ∓1,570 ∓1,260 ∓26,995 ∓1,408

～ 44 ～

The sensitivity analysis included only outstanding foreign currency denominated items at the end of the reporting period under the assumption of a 10% change in foreign currency rates.

 Interest rate risk

The Group is exposed to interest rate risks related to floating rate short-term and long-term loans. The risk is managed by the Group by maintaining an appropriate mix of fixed and floating rate borrowings.

For sensitivity analysis of interest rate risk, the analysis was prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. If interest rates had been a quarter of a percent higher/lower and all other variables were held constant, the Group’s pre-tax profit for the years ended December 31, 2024 and 2023 would decrease/increase by NT$5,464 thousand and NT$5,313 thousand, respectively.

 Other price risk

The Group is exposed to price risk through its investments in equity securities. The management of the Group manages risk by holding different risk portfolios.

If equity prices had been 5% higher/lower, the other comprehensive income for the years ended December 31, 2024 and 2023 would have increased/decreased by NT$13,669 thousand and NT$10,326 thousand, respectively, as a result of the changes in fair value of financial assets at FVTOCI.

e. Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial losses to the Group. The Group is exposed to credit risks from operating activities, primarily accounts receivables, and from investing activities, primarily bank deposits, fixed-income investments and other financial instruments with banks. Credit risk is managed separately for business related and financial related exposures. As of the end of the reporting period, the Group’s maximum credit risk exposure is equal to the carrying amount of the recognized financial assets as stated in the consolidated balance sheets.

 Business related credit risk

In order to maintain the credit quality of accounts receivable, the Group has established procedures to monitor and limit exposure to credit risk on accounts receivables. Credit evaluation is performed in the consideration of the relevant factors, such as customer's financial condition, transaction history and economic conditions. The Group grants credit to customers on the basis of the credit evaluation and collects payments in installments to reduce credit risk.

As of December 31, 2024 and 2023, the Group’s ten largest customers accounted for 80.63% and 74.43% of its total accounts receivables, respectively.

 Financial credit risk

The Group’s exposure to financial credit risk which pertained to bank deposits, fixed-income investments and other financial instruments were evaluated and monitored by Group’s financial department. Since the counterparties are creditworthy banks and financial institutions with good credit rating, thus, there’s no significant credit risk.

～ 45 ～

f. Liquidity risk management

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

The Group relies on bank borrowings as a significant source of liquidity. As of December 31, 2024 and 2023, the amount of unused financing facilities were NT$4,230,120 thousand and NT$3,703,123 thousand, respectively.

 Liquidity risk table for non-derivative financial liabilities

The table below summarized the maturity profile of the Group’s financial liabilities based on contractual undiscounted payments.

Non-derivative financial liabilities Short-term loans Notes and accounts payable Current tax liabilities Other payables Bonds payable Long-term loans Lease liabilities Guarantee deposits		2024.12.31	Total $ 1,970,000 2,145,392 415,307 84,676 10,400 215,628 9,239 3,459 $4,854,101		2023.12.31
	Less than 1 Year $ 1,970,000 2,026,143 388,899 84,676 － 29,762 3,567 2 $4,503,049	More than 1 Year		Less than 1 Year $ 1,924,000 2,443,580 111,982 435,916 － 30,586 2,966 86 $4,949,116	More than 1 Year $ － 50,582 － 62,069 626,100 180,077 1,488 3,370 $923,686	Total
		$ － 119,249 26,408 － 10,400 185,866 5,672 3,457				$ 1,924,000 2,494,162 111,982 497,985 626,100 210,663 4,454 3,456
		$351,052				$5,872,802

 Liquidity risk table for derivative financial liabilities

The following table detailed the Group’s liquidity analysis for its derivative financial instruments. The table was based on the undiscounted contractual net cash inflows and outflows on derivative instruments that settle on a net basis, and the undiscounted gross inflows and outflows on those derivatives that require gross settlement. When the amount payable or receivable was not fixed, the amount disclosed was determined by reference to the projected interest rates as illustrated by the yield curves at the end of the year.

by the yield curves at the end of the year.
Derivative financial instruments Gross settled foreign exchange contract Inflows Outflows	Less than 1 Year
	2024.12.31 2023.12.31 $ 15,693 $ － (15,791) － $ (98 )$ －	2023.12.31

～ 46 ～

7. TRANSACTIONS WITH RELATED PARTIES

Transactions, balances, revenue and expenses between the Company and its subsidiaries have been eliminated on consolidation and are not disclosed in this note. Details of transactions between the Group and other related parties were disclosed below.

• (1) Names and relationships of related parties

Related Party Relationship with the Group Nissin-Allis Electric Co., Ltd. Associate Nissin Allis Union Ion Equipment Co., Ltd. Associate Le-Min Industrial Co., Ltd. Related party in substance Taiwan Marine Electric Co., Ltd. Related party in substance Impact Power Inc. Related party in substance Huede Industrial Co., Ltd. The director of the Company Yong Ming Investment Consultant Co., Ltd. Related party in substance Qing Wen Investment Co., Ltd. Related party in substance Dudu Investments Co., Ltd. The director of the Company CANTAL INTEGRANTION Pte Ltd. Related party in substance (formerly Yolka Engineering Pte Ltd.) Cantel Electric Pte Ltd. Related party in substance Cantel SwithGear Pte Ltd. Related party in substance Cantel United Pte Ltd. Related party in substance ACDC Dynamic Express Related party in substance PHD Power CC Related party in substance PHD Properties (Pty) Ltd. Related party in substance Herr-Yeh Sung Key management personnel

• (2) Operating revenue

LineItems Operating revenue Purchase and factory overhead Line Items Purchase and factory overhead	Related Parties Categories Associates Others Related Parties Categories Associates Others	2024 $ 70,464 23,506 $ 93,970 2024 $ 240,638 102,587 $ 343,225	2023 $ 46,316 31,469 $ 77,785 2023 $ 407,949 372,566 $ 780,515

• (3) Purchase and factory overhead

～ 47 ～

(4) Receivables from related parties

	Related Parties
Line Items	Categories	2024.12.31			2023.12.31
Notes receivable from
related parties	Others	$	－	$	7,837
Accounts receivable from related parties	Associates	$	9,447	$	25,980
	Others		3,483		5,614
		$	12,930	$	31,594
Other receivables	Associates	$	202	$	134

The outstanding receivables from related parties are unsecured.

(5) Payable to related parties

Line Items Notes payable Accounts payable to related parties Other payables	Related Parties Categories Associates Others Associates Others Associates Others	2024.12.31 $ 4 3,045 $ 3,049 $ 102,988 36,673 $ 139,661 $ 48 400 $ 448	2023.12.31 $ － － $ － $ 191,488 17,999 $ 209,487 $ 97 2,106 $ 2,203

(6) Others

Others
Line Items Selling and marketing expenses Research and development expenses Other income Contract liability	Related Parties Categories Others Others Associates Others Others	2024 $ 2,080 $ 40 $ 2,509 46 $ 2,555 2024.12.31 $ 12	2023
			$ 1,697
			$ 68
			$ 2,182 41
			$ 2,223
			2023.12.31
			$ 12

～ 48 ～

The sales and purchase prices and payment terms to related parties were not significantly different from those to third parties. The rental collected monthly was based on those prevailing in the market.

• (7) Compensation of key management personnel

Short-term benefits Post-employment benefits	2024 $ 118,809 2,960 $ 121,769	2023
		$ 114,811 2,775
		$ 117,586

The compensation of key management personnel was determined by the remuneration committee based on the performance of individuals and market trends.

(8) Other

As of December 31, 2024 and 2023, farmland with carrying amounts of NT$308 thousand was temporarily registered under the name of Herr-Yeh Sung, who had signed an agreement and pledged the land to the Company. Please refer to Note 6(8).

8. PLEDGED ASSETS

The following assets had been pledged or mortgaged as collateral for short-term and long-term loans, tender bonds provided on construction bidding or performance bonds:

Pledged time deposits (accounted for as other receivables) Property, plant and equipment, net Investment properties, net Total	2024.12.31 $ 4,734 1,053,360 342,835 $ 1,400,929	2023.12.31 $ 4,663 1,065,603 344,783 $ 1,415,049

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

As of December 31, 2024, significant contingent liabilities and unrecognized commitments of the Group were as follows:

• (1) The guaranteed notes issued were NT$4,746,113 thousand, including:

• a. The guaranteed notes issued for bank loans were NT$4,200,000 thousand.

• b. The guaranteed notes issued as performance guarantees for sales contracts were NT$546,113 thousand.

• (2) Information related endorsements/guarantees provided, please refer to Table 2 attached.

• (3) Unused letters of credit were USD$784 thousand.

10. SIGNIFICANT LOSS FROM DISASTERS: None.

11. SIGNIFICANT SUBSEQUENT EVENTS:

～ 49 ～

On January 13, 2025, the Company issued its second domestic 5-year unsecured zerocoupon convertible bonds, comprising 12,000 units with a face value of NT$100 thousand each and a total principal amount of NT$1,200,000 thousand. The bonds were issued at 100.5% of their face value.

12. OTHERS: None.

13. ADDITIONAL DISCLOSURES

• (1) Information on significant transactions:

• a. Financing provided to others: Please refer to Table 1 attached.

• b. Endorsements/guarantees provided: Please refer to Table 2 attached.

• c. Marketable securities held (excluding investment in subsidiaries, associates and joint controlled entities): Please refer to Table 3 attached.

• d. Marketable securities acquired and disposed at costs or prices at least NT$300 million or 20% of the paid-in capital: None.

• e. Acquisition of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital: None.

• f. Disposal of individual real estate at prices of at least NT$300 million or 20% of the paid-in capital: None.

• g. Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: Please refer to Table 4 attached.

• h. Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: Please refer to Table 5 attached.

• i. Trading in derivative instruments ： Please refer to Note 6(2).

• j. Others: Intercompany relationships and significant intercompany transactions ： Please refer to Table 6 attached.

• (2) Information on investees (excluding investee company in mainland China): Please refer to Table 7 attached.

• (3) Information on investment in mainland China:

• a. 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: Please refer to Table 8 attached.

• b. Significant direct or indirect transactions with the investee, its prices and terms of payment, unrealized gain or loss, and other related information which is helpful to understand the impact of investment in mainland China on financial reports: Please refer Table 6 attached.

• (4) Information of major shareholder

List of all shareholders with ownership of 5 percent or greater showing the names and the number of shares and percentage of ownership held by each shareholder: None.

～ 50 ～

14. SEGMENT INFORMATION

The Group uses the operating income as the measurement for the basis of performance assessment. The basis for such measurement is the same as that for the preparation of financial statements.

The reporting segments were as follows:

Switchgear segment- manufacture and sale of high and low voltage switchgear.

Transformer segment- manufacture and sale of high and low voltage transformer.

Transmission and distribution apparatus segment - manufacture and sale of transmission & distribution line apparatus. Power and electrical equipment segment - manufacture and sale of industrial power and electrical equipment. Engineering segment- construction and installation of electrical equipment. Other segment –sale of GPS antennas and relay equipment.

• (1) Segment revenues and results:

Switchgear segment 2024 2023	Transformer segment 2024 2023	Transmission and distribution apparatus segment 2024 2023	Power and electrical equipment segment 2024 2023	Engineeringsegment 2024 2023	Other segment 2024 2023	Elimination of intersegment transactions	Total
						2024 2023	2024 2023

Revenue from external

customers $ 2,380,128 $2,568,323 $ 1,069,418 $ 1,038,982 $ 1,001,808 $928,612 $ 2,133,587 $ 2,114,567 $1,337,665 $1,943,338 $ 955,272 $ 889,570 $ － $ － $ 8,877,878 $ 9,483,392

Inter-

segment revenue Total

==> picture [754 x 9] intentionally omitted <==

revenue $ 2,380,128 $2,568,323 $ 1,069,418 $ 1,038,982 $ 1,001,808 $928,612 $ 2,433,024 $ 2,414,404 $1,719,652 $2,557,353 $ 960,952 $ 1,079,200 $ (687,104)$ (1,103,482 ) $ 8,877,878 $ 9,483,392 Interest expense $ 8,169 $ 10,459 $ 4,456 $ 5,705 $ 5,570 $ 7,131 $ 13,653 $ 16,735 $ 10,321 $ 13,433 $ 1,684 $ 1,951 $ － $ (54 ) $ 43,853 $ 55,360 Depreciation and amortization expense $ 18,192 $ 13,798 $ 9,943 $ 7,603 $ 14,352 $ 11,108 $ 18,913 $ 16,156 $ 2,962 $ 2,598 $ 2,790 $ 2,396 $ (446)$ (388 ) $ 66,706 $ 53,271 Segment profit or loss $ 220,542 $ 259,497 $ 104,360 $ 128,057 $ 127,125 $ 92,878 $ 133,771 $ 98,692 $ 137,865 $ 189,707 $ 167,583 $ 173,207 $ 7,314 $ (4,727 ) $ 898,560 $ 937,311

～ 51 ～

(2) Geographical information ：

Revenue from external customers Geographical areas Taiwan Others Total Non-current assets Geographical areas Taiwan Others Total	2024 $ 7,736,560 1,141,318 $ 8,877,878 2024.12.31 $ 2,110,822 11,302 $ 2,122,124	2023 $ 6,857,219 2,626,173 $ 9,483,392 2023.12.31 $ 2,022,745 9,303 $ 2,032,048

Non-current assets include property, plant and equipment, right-of-use assets, investment properties, intangible assets and other non-current assets.

(3) Information about major customers:

Customer A Customer B Customer C	2024 $ 1,134,225 1,992,596 10,378 $ 3,137,199	2023
		$ 988,966 1,951,110 1,020,795
		$ 3,960,871

～ 52 ～

Allis Electric Co., Ltd. and Subsidiaries

FINANCING PROVIDED TO OTHERS

FOR THE YEAR ENDED DECEMBER 31, 2024 (In Thousands of New Taiwan Dollars)

Table 1

No.	Lender	Borrower	Financial Statement Account	Highest Balance for the Period	Ending Balance	Actual Borrowing Amount	Interest Rate	Nature of Financing	Business Transaction Amounts	Reasons for Short-term Financing	Allowance for Impairment Loss	Collateral	Collateral	Financing Limit for Each Borrower (Note 1)	Aggregate Financing Limits (Note 2)
												Item	Value
0	Allis Electric Co., Ltd.	Zhong Mou Construction Co., Ltd.	Other receivables	$ 20,472	$ 20,466	$ 20,466	2.50%	Short-term Financing	$ －	Operating capital	$ －	None	None	$ 576,367	$ 1,152,734

Note 1: The total amount for lending to a company should not exceed 10% of the Company’s net equity.

Note 2: The aggregate amount available for lending to others should not exceed 20% of the Company’s net equity.

～ 53 ～

Allis Electric Co., Ltd. and Subsidiaries

ENDORSEMENTS/GUARANTEES PROVIDED

FOR THE YEAR ENDED DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars)

Table 2

No .	Endorser/ Guarantor	Endorsee/Guarantee	Endorsee/Guarantee	Limits on Endorsement/ Guarantee Given on Behalf of Each Party	Maximum Amount Endorsed/ Guaranteed During the Year	Outstanding Endorsement/ Guarantee at the End of the Year	Amount Actually Drawn	Amount Endorsed/ Guaranteed by Collaterals	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in the Latest Financial Statements	Aggregate Endorsement/ Guarantee Limit	Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries	Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent	Endorsement/ Guarantee Given on Behalf of Companies in Mainland China
		Name	Relationship (Note 1)
0	Allis Electric Co., Ltd.	Nissin-Allis Electric Co.,Ltd.	f	$ 1,921,223 (Note 2)	$ 123,000	$ 123,000	$ 84,090	－	2.13%	$ 2,881,835 (Note 2)	－	－	－
		Ares Technology Co.,Ltd.	b		$ 125,000	$ 125,000	$ 65,000	－	2.17%		Y	－	－
		Air King Industrial Co., Ltd.	b		$ 370,400	$ 370,400	$ 190,529	－	6.43%		Y	－	－
		Zhong Mou Construction Co., Ltd.	e		$ 271,962	$ －	$ －	－	－		－	－	－
		Allis Electric (S) Pte. Ltd.	b		$ 64,105	$ －	$ －	－	－		Y	－	－
1	Air King Industrial Co., Ltd.	Allis Electric Co., Ltd.	c	$ 450,000 (Note 3)	$ 26,841	$ 26,249	$ 26,249	－	14.45%	$ 500,000 (Note 3)	－	Y	－

• Note 1: Relationships between the endorser/guarantor and the party being endorsed/guaranteed are as follows:

• a. A company that the Corporation has business relationship with.

• b. The Corporation owns directly or indirectly over 50% ownership of the investee company.

• c. The company that owns directly or indirectly hold over 50% ownership of the Corporation.

• d. In between companies that were held over 90% of voting shares directly or indirectly by an entity.

• e. The Corporation is required to provide guarantees or endorsements for the construction project based on the construction contract.

• f. Shareholder of the investee provides endorsements/guarantees to the company in proportion to their shareholding percentages.

• g. According to Consumer Protection Act, companies in the same industry enter into collateral performance guarantees for pre-construction home sales agreements.

• Note2: The total amount of the guarantee provided by the Company to any individual entity should not exceed 1/3 of the Company’s net equity. The total amount of guarantee should not exceed 1/2 of the Company’s net equity.

• Note 3: The total amount of the guarantee provided by Air King Industrial Co., Ltd. to the parent company and to other individual entities should not exceed NT$450,000 thousand and NT$50,000 thousand, respectively. The total amount of guarantee should not exceed NT$500,000 thousand.

～ 54 ～

Allis Electric Co., Ltd. and Subsidiaries MARKETABLE SECURITIES HELD

(Excluding Investment in Subsidiaries, Associates and Joint Controlled Entities) DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars)

Table 3

Table 3
Holding Company Name	Type and Name of Marketable Securities	Relationship with the Company	Financial Statement Account	December 31, 2024				Note
				Shares/Units	Carrying Amount	Percentage of Ownership	Fair Value
Allis Electric Co., Ltd.	Stocks of FIC Global, Inc.	－	Financial assets at fair value through other comprehensive income-current	1,273	51	－	51
	Stocks of Taiwan High Speed Rail Corporation	－	Financial assets at fair value through other comprehensive income-current	4,000	111	－	111
	Stocks of Arch Meter Corporation	－	Financial assets at fair value through other comprehensive income-current	1,248,000	101,588	－	101,588
	Stocks of Pacific Electric Wire and CableCo.,Ltd.	－	Financial assets at fair value through profit or loss- noncurrent	585	－	－	－
	Stocks of Prodisc Technology Inc.	－	Financial assets at fair value through profit or loss- noncurrent	47,632	－	－	－
	Stocks of Yuquan Technology Inc.	－	Financial assets at fair value through profit or loss- noncurrent	35,150	－	－	－
	Stocks of Uni-Circuit Inc.	－	Financial assets at fair value through profit or loss- noncurrent	30,000	－	－	－
	Stocks of Le-Min Industrial Co., Ltd.	Related party in substance	Financial assets at fair value through other comprehensive income-noncurrent	1,948,072	72,410	19.68%	72,410
	Stocks of Tangeng Advanced Vehicles Co.,Ltd.	－	Financial assets at fair value through other comprehensive income-noncurrent	11,356,717	－	16.03%	－
	Stocks of Leadtang Technology Co., Ltd.	－	Financial assets at fair value through other comprehensive income-noncurrent	1,000,000	－	12.50%	－
	Stocks of ProMOS Technologies Inc.	－	Financial assets at fair value through other comprehensive income-noncurrent	133,366	1,090	0.30%	1,090
	Stocks of Advantage International Green Energy Co.,Ltd.	－	Financial assets at fair value through other comprehensive income-noncurrent	－	540	1.00%	540
	Stocks of ChargeSmith Co., Ltd.	－	Financial assets at fair value through other comprehensive income-noncurrent	175,759	－	13.49%	－
	Stocks of Zhihe Low Carbon Co., Ltd.	－	Financial assets at fair value through other comprehensive income-noncurrent	1,300,000	26,741	10.00%	26,741

～ 55 ～

Allis Electric Co., Ltd. and Subsidiaries MARKETABLE SECURITIES HELD

(Excluding Investment in Subsidiaries, Associates and Joint Controlled Entities) DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars)

Table 3

Table 3
Holding Company Name	Type and Name of Marketable Securities	Relationship with the Company	Financial Statement Account	December 31, 2024				Note
				Shares/Units	Carrying Amount	Percentage of Ownership	Fair Value
Yishun Investment Co., Ltd.	Stocks of Allis Electric Co., Ltd.	Parent company	Financial assets at fair value through other comprehensive income-current	2,195,989	220,697	0.82%	220,697	Note1
	Stocks of Taiwan Cement Corporation	－	Financial assets at fair value through other comprehensive income-current	20,999	666	－	666
	Stocks of Great Wall Enterprise Co., Ltd.	－	Financial assets at fair value through other comprehensive income-current	11,138	574	－	574
	Stocks of Hong Tai Electric Insustrial Co.,Ltd.	－	Financial assets at fair value through other comprehensive income-current	10,000	339	－	339
	Stocks of China Steel Chemical Co., Ltd.		Financial assets at fair value through other comprehensive income-current	16,000	1,474	－	1,474
	Stocks of China Steel Corporation	－	Financial assets at fair value through other comprehensive income-current	10,000	196	－	196
	Stocks of Sheng Yu Steel Co., Ltd..	－	Financial assets at fair value through other comprehensive income-current	10,000	239	－	239
	Stocks of TSRC Corporation	－	Financial assets at fair value through other comprehensive income-current	10,000	201	－	201
	Stocks of Lite-On Technology Corporation.	－	Financial assets at fair value through other comprehensive income-current	15,000	1,492	－	1,492
	Stocks of United Microelectronics Corporation	－	Financial assets at fair value through other comprehensive income-current	50,000	2,153	－	2,153
	Stocks of Yageo Corporation	－	Financial assets at fair value through other comprehensive income-current	4,900	2,651	－	2,651
	Stocks of Taiwan Semiconductor ManufacturingCompanyLimited	－	Financial assets at fair value through other comprehensive income-current	12,000	12,900	－	12,900

Note 1: In preparing the consolidated financial statements, the balance has been eliminated.

～ 56 ～

Allis Electric Co., Ltd. and Subsidiaries MARKETABLE SECURITIES HELD

(Excluding Investment in Subsidiaries, Associates and Joint Controlled Entities) DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars)

Table 3

Table 3
Holding Company Name	Type and Name of Marketable Securities	Relationship with the Company	Financial Statement Account	December 31, 2024				Note
				Shares/Units	Carrying Amount	Percentage of Ownership	Fair Value
Yishun Investment Co., Ltd.	Stocks of Macronix International Co., Ltd.	－	Financial assets at fair value through other comprehensive income-current	40,000	792	－	792
	Stocks of Elan Microelectronics Corp.	－	Financial assets at fair value through other comprehensive income-current	15,000	2,265	－	2,265
	Stock of Walsin Technology Corp.	－	Financial assets at fair value through other comprehensive income-current	10,000	925	－	925
	Stocks of Evergreen Marine Corp. (Taiwan)Ltd.	－	Financial assets at fair value through other comprehensive income-current	10,000	2,250	－	2,250
	Stock of Yang Ming Marine Transport Corporation	－	Financial assets at fair value through other comprehensive income-current	20,000	1,514	－	1,514
	Stocks of China Airlines Ltd.	－	Financial assets at fair value through other comprehensive income-current	10,000	256	－	256
	Stocks of Fubon Financial Holding Co.,Ltd.	－	Financial assets at fair value through other comprehensive income-current	12,733	1,150	－	1,150
	Stocks of Cathay Financial Holding Co.,Ltd.	－	Financial assets at fair value through other comprehensive income-current	5,000	341	－	341
	Stocks of ASE Technology Holding Co.,Ltd.	－	Financial assets at fair value through other comprehensive income-current	10,000	1,620	－	1,620
	Stocks of Sonix Technology Co., Ltd.	－	Financial assets at fair value through other comprehensive income-current	12,000	500	－	500
	Stocks of Sino-American Silicon Products Inc.	－	Financial assets at fair value through other comprehensive income-current	5,000	672	－	672
	Stocks of Chailease Holding Co., Ltd.	－	Financial assets at fair value through other comprehensive income-current	20,000	2,260	－	2,260

～ 57 ～

Allis Electric Co., Ltd. and Subsidiaries

MARKETABLE SECURITIES HELD

(Excluding Investment in Subsidiaries, Associates and Joint Controlled Entities) DECEMBER 31, 2024

Table 3 (In Thousands of New Taiwan Dollars)

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Company	Financial Statement Account	December 31, 2024	December 31, 2024	December 31, 2024	December 31, 2024	Note
				Shares/Units	Carrying Amount	Percentage of Ownership	Fair Value
Yishun Investment Co., Ltd.	Stocks of Sigurd Microelectronics Corp.	－	Financial assets at fair value through other comprehensive income-current	30,000	2,025	－	2,025
	Stocks of GlobalWafers Co., Ltd	－	Financial assets at fair value through other comprehensive income-current	3,000	1,145	－	1,145
	Stocks of Watron Technology Corp.	－	Financial assets at fair value through other comprehensive income- noncurrent	822,400	24,187	15.23%	24,187
	Stocks of Tangeng Advanced Vehicles Co.,Ltd.	－	Financial assets at fair value through other comprehensive income- noncurrent	2,000,000	－	2.82%	－
Allis Communnications CompanyLtd.	Stocks of Watron Technology Corp.	－	Financial assets at fair value through other comprehensive income- noncurrent	206,400	6,070	3.82%	6,070

～ 58 ～

Allis Electric Co., Ltd. and Subsidiaries

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars)

Table 4

Table 4
Seller/Buyer	Related Party	Relationship	Transaction Details				Abnormal Transaction		Notes/Accounts Receivable (Payable)		Note
			Purchase/ Sale	Amount	% of Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
Allis Electric Co., Ltd.	AEC International S.r.l.	Subsidiary	Sale	$ (188,279 )	(2.12%)	210 day	－	－	$ 124,962	3.18%	Note
	Air King Industrial Co., Ltd.	Subsidiary	Purchase	$ 364,618	5.78%	115 day	－	－	$(333,176)	(15.53%)	Note
	Nissin-Allis Electric Co., Ltd.	Associate	Purchase	$ 227,864	3.61%	115 day	－	－	$(102,988)	(4.80%)	－

Note : In preparing the consolidated financial statements, the transaction and balance have been eliminated.

～ 59 ～

Allis Electric Co., Ltd.

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars)

Table 5

Table 5
Name of company	Related Party	Relationship	Ending balance	Turnover rate	Overdue		Amounts received in subsequent period	Allowance for bad debts
					Amount	Action taken
Allis Electric Co., Ltd.	AEC International S.r.l.	Subsidiary	124,962 (Note)	2.03	$ －	－	$ 51,589	$ 1,270

NOTE:In preparing the consolidated financial statements, the balance has been eliminated.

～ 60 ～

Allis Electric Co., Ltd. and Subsidiaries

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars)

Table 6

Table 6
No.	Company Name	Counterparty	Relationship (Note 1)	Transaction Details
				Financial Statement Accounts	Amount (Note 3)	Payment Terms	% to Consolidated Total Revenues or Assets
0	Allis Electric Co., Ltd.	Air King Industrial Co., Ltd.	a	Revenue from sale of goods Purchase Construction contract cost Other Income Accounts receivable Other receivables Accountspayable	17,369 1,265 363,353 1,125 1,593 1,481 333,176	(Note 2)	0.20% 0.01% 4.09% 0.01% 0.01% 0.01% 2.95%
		Ares Technology Co., Ltd.	a	Revenue from sale of goods Purchase Factory overhead General and administrative expenses Rental income Other Income Other Receivables Accounts payable Other payables	696 75,169 28 56 154 448 109 31,170 315	(Note 2)	0.01% 0.85% 0.00% 0.00% 0.00% 0.01% 0.00% 0.28% 0.00%
		Yishun Investment Co., Ltd.	a	Rental income	36	(Note 2)	0.00%
		Hengyuan Allis Electric Co., Ltd.	a	Revenue from sale of goods Purchase Factory overhead Research and development expenses Accounts receivable Accounts payable Otherpayables	389 152 151 68 413 788 95	(Note 2)	0.00% 0.00% 0.00% 0.00% 0.00% 0.01% 0.00%

～ 61 ～

Allis Electric Co., Ltd. and Subsidiaries

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars)

Table 6

Table 6			(In	Thousands of New Taiwan Dollars)	Thousands of New Taiwan Dollars)
No.	Company Name	Counterparty	Relationship (Note 1)	Transaction Details
				Financial Statement Accounts	Amount (Note 3)	Payment Terms	% to Consolidated Total Revenues or Assets
0	Allis Electric Co., Ltd.	PHD Powerhouse Distributions (PTY) Ltd.	a	Revenue from sale of goods Accounts receivable	29,133 29,386	(Note 2)	0.33% 0.26%
		AEC International S.r.l.	a	Revenue from sale of goods Purchase Selling and marketing expenses Accounts receivable Otherpayables	188,278 658 5,119 124,962 2,194	(Note 2)	2.12% 0.01% 0.06% 1.11% 0.02%
		Allis Electric (S) Pte. Ltd.	a	Revenue from sale of goods	1,084	(Note 2)	0.01%
1	Yishun Investment CO., LTD.	Ares Technology Co., Ltd.	b	Operating revenue	432	(Note 2)	0.00%

Note 1: The relationships with the related parties are:

a. Parent company to its subsidiaries.

b. Subsidiaries to subsidiaries.

Note 2: The prices and payment terms were not significantly different from those to third parties.

Note 3: In preparing the consolidated financial statements, the transaction and balance have been eliminated.

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Allis Electric Co., Ltd. and Subsidiaries

INFORMATION ON INVESTEES (EXCLUDING INVESTEE COMPANY IN MAINLAND CHINA) FOR THE YEAR ENDED DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars)

Table 7

Table 7
Investor Company	Investee Company	Location	Principle Businesses Activities	Original Investment Amount		As of December 31, 2024			Net Income (Loss) of the Investee	Share of Profit (Loss)	Note
				December 31,2024	December 31,2023	Shares	%	Carrying Amount
Allis Electric Co., Ltd.	Air King Industrial Co., Ltd.	Taipei, Taiwan	Design and installation of electrical equipment	$ 28,458	$ 28,458	9,147,351	83.12%	$ 141,805	$ 47,090	$ 39,511	Note 2
	Nissin-Allis Electric Co.,Ltd.	Taoyuan, Taiwan	Manufacturing of SF6 capacitor andGIS	90,000	90,000	9,000,000	30.00%	296,874	185,473	55,642	－
	Ares Technology Co., Ltd.	New Taipei City, Taiwan	Manufacturing of UPS	75,560	75,560	6,800,000	100.00%	71,400	1,449	1,449	Note 2
	Allis Communications Co.,Ltd.	New Taipei City, Taiwan	Manufacturing of GPS antennas	86,909	86,909	5,702,147	82.64%	67,170	4,653	3,844	Note 2
	Yishun Investment CO.,LTD.	Taipei, Taiwan	Investment and holding	179,900	179,900	17,990,000	99.94%	198,214	4,512	1,108	Note 1 and 2
	Nissin Allis Union Ion Equipment Co., Ltd.	Hsinchu, Taiwan	Manufacturing of mechanical equipment and electronicparts	30,000	30,000	4,000,000	40.00%	92,327	38,888	15,555	－
	AYM International Corporation	Guam, U.S.	Construction and sale of power and electrical equipment	5,942	5,942	2,000	40.00%	－	－	－	－
	PHD Powerhouse Distributions (PTY) Ltd.	South Africa	Selling of electrical equipment	72,542	40,974	225	93.75%	25,888	(15,357 )	(13,946 )	Note 2
	AEC International S.r.l.	Italy	Selling of electrical equipment	66,444	66,444	420,000	70.00%	31,831	5,367	3,757	Note 2
	Intelicis Corporation	Santa Clara, U.S.	Developing of radio frequency products	49,301	49,301	1,875,500	29.16%	－	－	－	－
	Allis Electric (S) Pte. Ltd.	Singapore	Selling of electrical equipment	65,353	65,353	3,000,000	100.00%	110,581	14,469	23,426	Note 2

Note 1: The shares of the Company held by the subsidiary are recorded as treasury stock, and the dividends received from the Company are excluded from share of profit (loss). Note 2: In preparing the consolidated financial statements, the amount and balance have been eliminated.

～ 63 ～

Allis Electric Co., Ltd.

INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE YEAR ENDED DECEMBER 31, 2024

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

Table 8

Table 8
Investee Company	Principle Businesses Activities	Paid-in Capital	Method of Investment	Accumulated Outward Remittance for Investment from Taiwan as of January1,2024	Remittance of Funds		Accumulated Outward Remittance for Investment from Taiwan as of December 31,2024	Net Income (Loss) of the Investee	Ownership of Direct or Indirect Investment	Share of Profit (Loss) (Note)	Carrying Amount as of December 31, 2024 (Note)	Accumulated Repatriation of Investment Income as of December 31, 2024
					Outward	Inward
Hengyuan Allis Electric Co., Ltd.	Selling of electrical equipment	USD 3,400	Direct investment	＄50,547 (USD1,582)	$ －	$ －	$ 50,547 (USD1,582)	$ 1,590	65.38%	$ 1,041	$ 75,863	$ 26,368 (USD825)

Accumulated Outward Remittance for Investment in Mainland China as of December 31, 2024	Investment Amounts Authorized by the Investment Commission, MOEA	Upper Limit on the Amount of Investment Stipulated by Investment Commission, MOEA
		Net equity＊60%
＄106,207 (USD3,266)	＄206,102(USD 6,411)	3,458,201

Note: The amount and balance were recognized based on the financial statements certificated by the CPA of the parent company in Taiwan and have been eliminated in preparing the consolidated financial statements.

～ 64 ～