AEC — Audit Report / Information 2024

Nov 12, 2024

Stock code: 1514

Allis Electric Co., Ltd.

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

Allis Electric Co., Ltd. Table of Contents

Contents I. Cover page II. Table of Contents III. Independent Auditors’ Report IV. Parent Company Only Balance Sheets V. Parent Company Only Statements of Comprehensive Income VI. Parent Company Only Statements of Changes in Equity VII. Parent Company Only Statements of Cash Flows VIII. Notes to the Parent Company Only 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 IX. The Contents of Statements of Major Accounting Items

Page

I～IV 1 2 3 4～5 6 6 6～7 7～17 17～18 18～45 45～48 48 49 － 49 － 49、51～58 49、59 50、60 － 61~79

Earnest & Co., CPAs.

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

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

INDEPENDENT AUDITORS’ REPORT

Allis Electric Co., Ltd.

Opinion

We have audited the accompanying parent company only financial statements of Allis Electric Co., Ltd., which comprise the parent company only balance sheets as of December 31, 2024 and 2023, and the parent company only statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the parent company only 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 parent company only financial statements referred to above present fairly, in all material respects, the parent company only financial position of Allis Electric Ltd. as of December 31, 2024 and 2023, and its parent company only financial performance and its parent company only cash flows for the years then ended, in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

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

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the parent company only financial statements for the year ended December 31, 2024. These matters were addressed in the context of our audit of the parent company only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. The descriptions of the key audit matters of the parent company only financial statements for the year ended December 31, 2024 are as follows:

Revenue Recognition

Please refer to Note 4(16) of the parent company only 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 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

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ensuring Allis Electric Ltd.’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 parent company only financial statements for the accounting policies on impairment of accounts receivables and Note 5 of the parent company only 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 investee companies as of and for the years ended December 31, 2024 and 2023, which reflected in the parent company only 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 Ltd.’s parent company only financial statements for such investee companies, is based solely on the reports of other auditors. As of December 31, 2024 and 2023, the aforementioned investment accounted for using equity method were NT$557,501 thousand and NT$501,839 thousand, respectively, which represented 5.09% and 4.77%, respectively, of the total assets. Allis Electric Ltd.’s share of comprehensive income or loss of such investee companies were NT$87,639 thousand and NT$119,811 thousand for the years ended December 31, 2024 and 2023, respectively, which represented 9.80% and 19.38%, respectively, of total comprehensive income.

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

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

In preparing the parent company only financial statements, management is responsible for assessing Allis Electric Ltd.’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 Ltd. 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 Ltd.’s financial reporting process.

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

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

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

1. Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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 Ltd.’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 Ltd.’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause Allis Electric Ltd. to cease to continue as a going concern.

5. Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements for the year ended December 31, 2024 and are therefore the key audit matters. We describe these

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

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

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Allis Electric Co., Ltd. PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2024 AND 2023

						(In Thousands of New	(In Thousands of New	Taiwan	Dollars)
				2024.12.31		2023.12.31					2024.12.31		2023.12.31
	ASSETS	Notes		Amount	%	Amount	%		LIABILITIESAND EQUITY	Notes	Amount	％	Amount	％
	CURRENT ASSETS								CURRENT LIABILITIES
1100	Cash and cash equivalents	Note 4 and 6	$	540,688	4.94 $	271,011	2.58	2100	Short-term loans	Note 6	$ 1,800,000	16.43	$ 1,640,000	15.60
1110	Financial assets at fair value through profit or loss	Note 4 and 6		69	0.00	－	－	2120	Financial liabilities at fair value through profit or loss	Note 4 and 6	98	0.00	1,064	0.01
1120	Financial assets at fair value through other comprehensive income	Note 4 and 6		101,750	0.93	198	0.00	2130	Contract liabilities	Note 4	367,165	3.35	468,338	4.45
1140	Contract assets	Note 4		800,291	7.31	450,784	4.29	2170	Accounts payable		1,795,061	16.39	1,938,591	18.44
1150	Notes receivable, net	Note 4 and 6		94,951	0.87	209,967	2.00	2180	Accounts payable to related parties	Note 7	504,777	4.61	428,887	4.08
1160	Notes receivable from related parties	Note 7		－	－	7,837	0.07	2200	Other payables	Note 7	323,202	2.95	372,885	3.55
1170	Accounts receivable, net	Note 4 and 6		3,588,033	32.76	3,629,113	34.52	2230	Current tax liabilities	Note 4	69,929	0.64	106,152	1.01
1180	Accounts receivable from related parties	Note 6 and 7		165,801	1.51	231,602	2.20	2250	Provisions	Note 4 and 6	12,100	0.11	12,100	0.12
1200	Other receivables	Note 4, 6, 7 and 8		48,448	0.44	49,392	0.47	2280	Lease liabilities	Note 4	596	0.01	1,133	0.01
1310	Inventories	Note 4 and 6		2,190,037	20.00	2,484,969	23.63	2320	Current portion of long-term loans	Note 6	23,830	0.22	23,371	0.22
1410	Prepayments			78,571	0.71	74,322	0.71	2399	Other current liabilities		600	0.01	1,520	0.01
1479	Other current assets	Note 6		649	0.01	175	0.00	21xx	Total current liabilities		4,897,358	44.72	4,994,041	47.50
11xx	Total current assets			7,609,288	69.48	7,409,370	70.47
									NON-CURRENT LIABILITIES
								2530	Bonds payable	Note4 and 6	9,690	0.09	572,064	5.44
								2540	Long-term loans	Note 6	100,931	0.92	124,704	1.18
								2571	Deferred tax liabilities-land value increment tax		174,220	1.59	174,220	1.66
								2580	Lease liabilities	Note 4	2,365	0.02	－	－
								2640	Net defined benefit liabilities	Note 4 and 6	－	－	11,101	0.11
								2645	Guarantee deposits		3,459	0.03	3,456	0.03
								25xx	Total non-current liabilities		290,665	2.65	885,545	8.42
								2xxx	Total liabilities		5,188,023	47.37	5,879,586	55.92
	NON-CURRENT ASSETS
1517	Financial assets at fair value through other comprehensive income	Note 4 and 6		100,781	0.92	137,530	1.31		EQUITY Share capital	Note 6
1550	Investments accounted for using equity method	Note 4 and 6		1,111,953	10.15	946,107	9.00	3110	Ordinary shares		2,675,437	24.43	2,469,353	23.48
1600	Property, plant and equipment	Note 4, 6, 7 and 8		1,557,852	14.23	1,486,682	14.14	3130	Bond conversion entitlement certificates		435	0.00	58,439	0.56
1755	Right-of-use assets	Note 4 and 6		2,987	0.03	866	0.01	3100	Total share capital		2,675,872	24.43	2,527,792	24.04
1760	Investment properties	Note 4, 6 and 8		347,523	3.17	351,403	3.34	3200	Capital surplus		985,582	9.00	440,925	4.20
1780	Intangible assets	Note 4 and 6		25,517	0.23	4,919	0.04		Retained earnings
1840	Deferred tax assets	Note 4 and 6		26,493	0.24	40,964	0.39	3310	Legal reserve		333,094	3.04	258,944	2.46
1915	Prepayments for equipment			18,376	0.17	23,011	0.22	3320	Special reserve		448,977	4.10	449,780	4.28
1920	Refundable deposits			109,648	1.00	104,213	0.99	3350	Unappropriated earnings		1,362,388	12.44	1,068,907	10.16
1975	Net defined benefit asset	Note 4 and 6		31,526	0.29	－	－	3300	Total retained earnings		2,144,459	19.58	1,777,631	16.90
1990	Other non-current assets	Note 6		9,748	0.09	9,748	0.09	3400	Other equity		(11,378)	(0.10)	(69,505 )	(0.66 )
15xx	Total non-current assets			3,342,404	30.52	3,105,443	29.53	3500	Treasury Stock		(30,866)	(0.28)	(41,616 )	(0.40 )
								3xxx	Total equity		5,763,669	52.63	4,635,227	44.08
1xxx	TOTAL ASSETS		$	10,951,692	100.00 $	10,514,813	100.00		TOTAL LIABILITIES AND EQUITY		$10,951,692	100.00	$10,514,813	100.00

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

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Allis Electric Co., Ltd.

PARENT COMPANY ONLY 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 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 (gains) 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 subsidiaries and 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 8330 Share of other comprehensive income (loss) of subsidiaries and associates accounted for using equity method Items that may be reclassified subsequently to profit or loss 8361 Exchange differences on translating foreign operation 8380 Share of other comprehensive income (loss) of subsidiaries and associates accounted for using equity method 8300 Other comprehensive income, net 8500 TOTAL COMPREHENSIVE INCOME FOR THE YEAR 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 7 Note 6 and 7 Note 6 Note 6 Note 4 and 6 Note 4 and 6 Note 4 and 6 Note 4 Note 6 Note 6	2024

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

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

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Allis Electric Co., Ltd. PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

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

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 Reversal of special reserve Return of donation from owners Cash dividends distributed to subsidiaries Changes in equity of subsidiaries accounted for using equity method Disposal of investments in equity instruments at fair value through other comprehensive income 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 subsidiaries Disposal of investments in equity instruments at fair value through other comprehensive income Changes in equity of subsidiaries accounted for using 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 $ 2,397,430 $ － － － － － 71,923 － － － － － － － － － － － － － － － － － － － － 58,439 2,469,353 58,439 － － － － 51,834 － － － － － － － － － － － － － － － － － － － － － － 96,246 154,250 (154,250) $ 2,675,437 $ 435	Capital Surplus $ 73,039 － － － － － － － (8) 2,818 － － 83,247 281,829 440,925 － － － － － － － (7) 76,398 － － 3,402 329 464,535 － $ 985,582		Retained Earnings Special Reserve Unappropriated Earnings $ 450,584 $ 693,356 － (54,288) － (239,744) － (71,923) － 751,699 － (10,530) － 741,169 (804) 804 － － － － － (839) － 372 － － － － 449,780 1,068,907 － (74,150) － (414,672) － (51,834) － 801,224 － 31,405 － 832,629 (803) 803 － － － － － 3,075 － (198) － － － (2,172) － － － － $ 448,977 $ 1,362,388	Other Equity Exchange Differences on Translating Foreign Operation Unrealized Gains (Losses) on Financial Assets Measured at Fair Value Through Other Comprehensive Income $ (6,978) $ 60,890 － － － － － － － － (1,231) (121,814) (1,231) (121,814) － － － － － － － － － (372) － － － － (8,209) (61,296) － － － － － － － － 8,474 52,728 8,474 52,728 － － － － － － － (3,075) － － － － － － － － － － $ 265 $ (11,643)	Treasury Stock $ (41,616) － － － － － － － － － － － － － (41,616) － － － － － － － － 10,750 － － － － － － $ (30,866)	Total Equity $ 3,831,361 － (239,744) － 751,699 (133,575) 618,124 － (8) 2,818 (839) － 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
	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	Exchange Differences on Translating Foreign Operation $ (6,978) － － － － (1,231) (1,231) － － － － － － － (8,209) － － － － 8,474 8,474 － － － － － － － － － $ 265

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

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Allis Electric Co., Ltd.

PARENT COMPANY ONLY 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 subsidiaries and associates accounted for using equity method Net loss (gain) on disposal of property, plant and equipment Unrealized gross profit on sales Impairment loss Changes in operating assets and liabilities Increase in contract assets Decrease (increase) in notes receivable Decrease (increase) in notes receivable from related parties Decrease (increase) in accounts receivable Decrease (increase) in accounts receivable from related parties Decrease in other receivables Decrease (increase) in inventories Increase in prepayments Increase in other current assets Changes in financial instruments at fair value through profit or loss Decrease in contract liabilities Increase (decrease) in accounts payable Increase in accounts payable to related parties Increase (decrease) in other payables Increase (decrease) in other current liabilities Decrease in net defined benefit liabilities Cash inflow (outflow) generated from (used in) operations Income tax paid Net cash generated from (used in) operating activities	2024 $ 964,682 57,812 4,274 (9,240) (5,052) 37,132 (4,068) (3,750) (131,387) 42 5,612 － (349,507) 115,633 7,837 17,643 65,801 9,910 294,932 (4,249) (474) 154 (101,173) (143,530) 75,890 (45,016) (920) (14,711) 844,277 (185,210) 659,067	2023 $ 897,841 46,584 2,110 14,805 (10,712) 47,541 (4,325) (3,045) (161,875) (38) 1,290 25,000 (147,970) (90,957) (4,333) (466,396) (51,586) 3,291 (311,369) (16,304) (158) 3,246 (252,654) 113,642 84,631 25,630 34 (14,593) (270,670) (97,756) (368,426)

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Allis Electric Co., Ltd.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

(In Thousands of New Taiwan Dollars)

CASH FLOWS FROM INVESTING ACTIVITIES: Acquisition of financial assets at fair value through other comprehensive income Disposal of investments accounted for using equity method Acquisition of property, plant and equipment 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 Decrease in long-term loans Increase in guarantee deposits Repayment of the principal portion of lease liabilities Interest paid Cash dividends paid Others Net cash flows generated from (used in) financing activities NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, BEGINNING OF THE YEAR CASH AND CASH EQUIVALENTS, END OF THE YEAR

2024 2023 (13,001) (15,560) 930 － (129,150) (229,937) － 38 (24,872) (1,238) 4,635 (22,291) (5,435) 22,399 6 58,713 4,054 4,466 87,249 72,301 (75,584) (111,109) 9,697,184 9,042,447 (9,537,184) (9,429,447) － 999,610 (23,314) (1,925) 3 87 (1,571) (2,462) (34,245) (41,548) (414,672) (239,744) (7) (8) (313,806) 327,010 269,677 (152,525) 271,011 423,536 $ 540,688 $ 271,011

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

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Allis Electric Co., Ltd.

NOTES TO PARENT COMPANY ONLY 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. The Company is engaged in manufacturing and selling of switchgear, transformer, electrical products, and construction and installation of electrical equipment.

2. APPROVAL DATE AND PROCEDURES OF THE FINANCIAL STATEMENTS

The parent company only 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 Company’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 parent company only financial statements were authorized for issue, the Company has assessed that the application of aforementioned standards and interpretations will not have a material impact on the Company’s financial position and financial performance.

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

New,Amended and RevisedStandards and Interpretations Annual Improvements to IFRS Accounting Standards-Volume 11 Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature- Dependent Electricity” Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture” IFRS 17 “Insurance Contracts”

Effective Date Announced byIASB

January 1, 2026 January 1, 2026 January 1, 2026 To be determined by IASB January 1, 2023

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New,Amended and RevisedStandards and Interpretations Amendments to IFRS 17 Amendments to IFRS 17 “Initial Application of IFRS 17 and IFRS 9- Comparative Information” IFRS 18 ” Presentation and Disclosure in Financial Statements” IFRS 19 ” Subsidiaries without Public Accountability: Disclosure”	Effective Date Announced byIASB
	January 1, 2023 January 1, 2023 January 1, 2027 January 1, 2027

As of the date the parent company only financial statements were authorized for issue, the Company is continuously assessing the possible impact that the application of the aforementiond standards and interpretations will have on the Company’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

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

(2) Basis of preparation

When preparing the parent company only financial statements, the Company account for subsidiaries and associates by using the equity method. In order to agree with the amount of net income, other comprehensive income and equity attributable to shareholders of the parent in the consolidated financial statements, the differences of the accounting treatment between the parent company only basis and the consolidated basis are adjusted under the heading of investments accounted for using equity method, share of profits of subsidiaries and associates and share of other comprehensive income of subsidiaries and associates in the parent company only financial statements.

(3) Foreign currencies

In preparing the parent company only financial statements, 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 parent company only financial statements, the assets and liabilities of the Company’s foreign operations 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.

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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 parent company only financial statements are authorized for issue; and

• c. Liabilities for which the Company 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 Company 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 Company’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.

(6) Financial instruments

Financial assets and financial liabilities are recognized when the Company 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.

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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 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 Company 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 Company’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

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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 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 Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

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 Company 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 Company are recognized at the proceeds received, net of direct issue costs.

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

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The Company derecognizes financial liabilities when, and only when, the Company’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 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 Company 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 standard cost and adjusted to approximate weighted-average cost on the reporting date.

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(8) Investments accounted for using equity method

Investments accounted for using equity method include investments in subsidiaries and associates.

a. Investment in subsidiaries

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

Under the equity method, investments in a subsidiary are initially recognized at cost and adjusted thereafter to recognize the Company’s share of the profit or loss and other comprehensive income of the subsidiary as well as the distribution received. The Company also recognizes the changes in the Company’s share of equity of subsidiaries. When the Company’s share of losses of an subsidiary equals or exceeds its interest in that subsidiary (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 Company’s net investment in the subsidiary), the Company continues recognizing its share of further losses.

Changes in the Company’s ownership interests in subsidiaries that do not result in the Company losing control over the subsidiaries are accounted for as equity transactions. Any difference between the carrying amount of the subsidiary and the fair value of the consideration paid or received is recognized directly in equity.

When the Company 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 fair value at the date when control is lost and (ii) the previous carrying amount of the investments in such subsidiary. In addition, the Company accounts for all amounts recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required if the Company had directly disposed of the related assets or liabilities.

Unrealized profits and losses from downstream transactions with a subsidiary are eliminated in full in the parent company only financial statements. Profits and losses from upstream transactions with a subsidiary and sidestream transactions between subsidiaries are recognized in the parent company only financial statements only to the extent of interests in the subsidiary that are not related to the Company.

b.Investment in associates

An associate is an entity over which the Company 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 Company 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 Company’s share of the profit or loss and other comprehensive income of the associate as well as the distribution received. The Company also recognizes the changes in the Company’s share of equity of associates. When the Company’s share of losses of an associate equals or exceeds its interest in that associate (which includes any carrying amount of the investment accounted for by the equity method and long-term interests that, in substance, form part of the Company’s net investment in the associate), the Company discontinues recognizing its share of further losses, if any. Additional losses and liabilities are recognized only to the extent that the Company has incurred legal obligations, or constructive obligations, or made payments on behalf of that associate.

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Any excess of the cost of acquisition over the Company’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 Company’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 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 Company 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 Company’s proportionate interest in the net assets of the associate. The Company 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 Company’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 Company discontinues the use of the equity method from the date on which its investment ceases to be an associate. Any retained investment is measured at fair value at that date and the fair value is regarded as 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 Company 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 the Company transacts with its associate, profits and losses resulting from the transactions with the associate are recognized in the Company’s parent company only financial statements only to the extent of interests in the associate that are not related to the Company.

(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

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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 Company as lessee

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

Right-of-use assets 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 parent company only 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 Company 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 Company remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate line in the parent company only balance sheets.

b.The Company as lessor

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

Lease 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.

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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 be assumed to be zero unless the Company 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 Company reviews the carrying amounts of its property, plant and equipment, right-of-use assets, investment properties and 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 Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to the individual cash-generating 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 immediately 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.

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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 Company’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 Company 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

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 Company recognizes revenue over time. The Company 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 Company 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 Company adequately completes all of its contractual obligations. Such retention receivables are recognized as contract assets until the Company 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, 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.

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b. Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the 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 Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable 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 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 Company 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 Company’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 Company uses judgment in making these assumptions and in selecting the inputs to the impairment calculation, based on the Company’s historical

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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$3,753,834 thousand and NT$3,860,715 thousand, respectively.

6. SIGNIFICANT ACCOUNTS DISCLOSURES

• (1) Cash and cash equivalents

Petty cash and cash on hand Checking accounts and demand deposits Total	2024.12.31 $ 910 539,778 $ 540,688	2023.12.31 $ 910 270,101 $ 271,011

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

	2024.12.31		2023.12.31
ancial assets
ancial assets mandatorily classified as at FVTPL
Redemption and put option of convertible bonds$		69 $	－

Financial assets Financial assets mandatorily classified as at FVTPL

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

• a. The Company 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 Company did not apply hedge accounting treatment for these forward exchange contracts.

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

2024.12.31 Sell NTD / Buy CNY	MaturityDate 2024.10.22-2025.02.20	Contract Amount
		CNY 3,500 /NTD 15,791

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

Listed shares Unlisted shares Total	2024.12.31 $ 101,750 100,781 $ 202,531	2023.12.31
		$ 198 137,530
		$ 137,728

～ 18 ～

Current Non-current Total	2024.12.31 $ 101,750 100,781 $ 202,531	2023.12.31 $ 198 137,530 $ 137,728

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

(4) Notes receivable and accounts receivable

borrowings. 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	2023.12.31 $ 211,069 ) (1,102) $ 209,967 $ 3,749,411 ) (34,805 ) ) (85,493) $ 3,629,113 $ 231,602
	$ 95,436 (485
	$ 94,951
	$ 3,700,703 (35,800 (76,870
	$ 3,588,033
	$ 165,801

The Company 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

Gross carrying amount Loss allowance Amortized cost	Not Past Due	Past Due 0- 3 Months $ 878,524 ) (6,785) $871,739	Past Due 3- 6 Months $ 224,362 (1,621 ) $ 222,741	Past Due 6- 9 Months $ 170,041 (22,551 ) $ 147,490	Past Due 9- 12 Months $ 52,294 (8,657) $ 43,637	Past Due 1-2 Years $ 41,795 (11,294 ) $ 30,501	Past Due Over 2 Years	Total $ 3,866,504 ) (76,870) $3,789,634
	$ 2,460,793 (4,608						$ 38,695 (21,354
	$ 2,456,185						$ 17,341

2023.12.31

Gross carrying amount Loss allowance Amortized cost	Not Past Due	Past Due 0- 3 Months $ 718,885 ) (7,189) $711,696	Past Due 3- 6 Months $ 140,792 (1,408) $ 139,384	Past Due 6- 9 Months $ 183,433 (5,752 ) $ 177,681	Past Due 9- 12 Months $ 79,618 (4,839) $ 74,779	Past Due 1-2 Years $ 44,854 (15,778) $ 29,076	Past Due Over 2 Years	Total $ 3,981,013 (85,493) $3,895,520
	$ 2,795,354 (39,894						$ 18,077 (10,633)
	$ 2,755,460						$ 7,444

～ 19 ～

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

Balance, beginning of the year Loss allowance recognized (reversal) Balance, end of the year (5) Other receivables, net Pledged time deposits Loan receivable Restricted deposit Others Other receivables, net (6) Inventories Finished goods Work-in-process Raw materials Inventory in transit Inventories, net		2024 $ 86,595 (9,240 ) $ 77,355 2024.12.31 $ 4,734 20,466 9,863 13,385 $ 48,448 2024.12.31 $ 329,101 468,162 1,364,776 27,998 $ 2,190,037		2023 $ 71,790 14,805 $ 86,595 2023.12.31 $ 4,663 20,472 17,845 6,412 $ 49,392 2023.12.31 $ 546,703 623,387 1,261,182 53,697 $ 2,484,969

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 and reversal of write-down of inventories resulting from disposal of slowing-moving inventories were included in the cost of goods sold as follows:

		2024		2023
Inventory losses (reversal of write-down of
inventories)	$		(31) $	23,005

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

• (7) Investments accounted for using equity method

Investments accounted for using equity method consisted of the following

～ 20 ～

		2024.12.31	2024.12.31	2023.12.31	2023.12.31
Subsidiaries		$	722,752 $		578,961
Associates			389,201		367,146
		$ 1,111,953$			946,107
a. Investments in subsidiaries
Subsidiaries consisted of the	following:
	2024.12.31		2023.12.31
	% of		% of
Name of Subsidiaries	Ownership	Amount	Ownership		Amount
Air King Industrial Co., Ltd.	83.12%	$ 141,805	83.12%	$	124,478
Ares Technology Co., Ltd.	100.00%	71,400	100.00%		68,715
Allis Communications Co., Ltd.	82.64%	67,170	82.64%		65,420
Yishun Investment Co., Ltd.	99.94%	198,214	99.94%		104,646
Hengyuan Allis Electric Co., Ltd.	65.38%	75,863	65.38%		81,009
AEC International S.r.l.	70.00%	31,831	70.00%		29,071
PHD Powerhouse Distributions
(PTY) Ltd.	93.75%	25,888	90.00%		13,561
Allis Electric (S) Pte. Ltd.	100.00%	110,581	100.00%		92,061
Total		$ 722,752		$	578,961

The aforementioned subsidiaries were not listed companies.

Please refer to Table 6 and 7 for the details of the subsidiaries.

b. Investments in associates

Associates consisted of the following:

	2024.12.31	2024.12.31	2024.12.31	2023.12.31	2023.12.31	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%		－
Intelicis Corporation	29.16%		－	29.16%		－
Total		$	389,201		$	367,146

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

Aggregate information of associates that are not individually material:

Equity

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

～ 21 ～

										2024			2023
The Company’s		share of	:
Net income for the year									$	71,197		$	76,764
Other comprehensive income					(loss)					3,205			(1,378		)
Total comprehensive			income		for the year				$	74,402		$	75,386
(8) Property, plant	and equipment
									2024.12.31			2023.12.31
Land									$	657,220		$	625,181
Buildings										676,009			407,656
Machinery	and equipment									119,504			96,684
Transportation equipment										11,937			12,431
Other equipment										93,182			56,706
Construction in progress											－		288,024
Total carrying amounts									$	1,557,852		$	1,486,682
					Machinery and		Transportation			Other	Construction in
Cost		Land	Buildings			Equipment		Equipment		Equipment		Progress		Total
Balance at January 1,
2024	$	625,181 $		806,599	$	489,261	$	46,830	$	132,988	$		288,024 $	2,388,883
Additions		32,039		5,576		42,593		1,990		46,379			(4,711 )	123,866
Disposals		－		－		(7,120 )		(982	)	(1,406	)		－		(9,508)
Internal transfer		－		282,669		－		－		644			(283,313 )		－
Transfer from investment
properties		－		3,309		－		－		－			－		3,309
Balance at December 31,
2024	$	657,220 $	1,098,153		$	524,734	$	47,838	$	178,605	$		－$	2,506,550
Accumulated
depreciation and
impairment
Balance at January 1,
2024	$	－$		398,943	$	392,577	$	34,399	$	76,282	$		－$	902,201
Depreciation expense		—		21,715		19,751		2,466		10,545			－		54,477
Disposals		－		－		(7,098 )		(964	)	(1,404	)		－		(9,466 )
Transfer from investment
properties		－		1,486		－		－		－			－		1,486
Balance at December 31,
2024	$	－$		422,144	$	405,230	$	35,901	$	85,423	$		－$	948,698
Carrying amounts at
December 31, 2024	$	657,220 $		676,009	$	119,504	$	11,937	$	93,182	$		－$	1,557,852

～ 22 ～

					Machinery and	Machinery and	Transportation	Transportation		Other	Construction in	Construction in
Cost		Land	Buildings			Equipment		Equipment		Equipment		Progress	Total
Balance at January
1, 2023	$	579,483	$	806,418	$	444,543	$	44,049	$	130,585	$	222,197 $	2,227,275
Additions		45,698		181		67,943		4,187		10,848		65,827	194,684
Disposals		－		－		(23,225 )		(1,406)		(8,445)		－	(33,076)
Balance at
December 31, 2023	$	625,181	$	806,599	$	489,261	$	46,830	$	132,988	$	288,024$	2,388,883
Accumulated
depreciation and
impairment
Balance at January
1, 2023	$	－	$	381,411	$	376,523	$	33,790	$	76,717	$	－$	868,441
Impairment loss		－		－		25,000		－		－		－	25,000
Depreciation
expense		—		17,532		14,279		2,015		8,010		－	41,836
Disposals		－		－		(23,225 )		(1,406 )		(8,445 )		－	(33,076 )
Balance at
December 31, 2023	$	－	$	398,943	$	392,577	$	34,399	$	76,282	$	－$	902,201
Carrying amounts at
December 31, 2023	$	625,181	$	407,656	$	96,684	$	12,431	$	56,706	$	288,024 $	1,486,682

• 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 year ended December 31, 2024 and 2023, capitalized interest were NT$1,324 thousand and NT$5,006 thousand, respectively; capitalization rate were 1.836% and1.74%~1.94%, respectively.

• d. For the year ended December 31, 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.

• (9) Right-of-use assets

ght-of-use assets
Buildings Other equipment Total carrying amounts	2024.12.31 $ 2,987 － $ 2,987	2023.12.31
		$ － 866
		$ 866

～ 23 ～

				Other
Cost		Buildings		Equipment		Total
Balance at January 1, 2024	$	－	$	13,858	$	13,858
Additions		3,399		－		3,399
Decrease		－		(13,858)		(13,858)
Balance at December 31, 2024	$	3,399	$	－	$	3,399
Accumulated depreciation
Balance at January 1, 2024	$	－	$	12,992	$	12,992
Depreciation expense		412		866		1,278
Decrease		－		(13,858)		(13,858)
Balance at December 31, 2024	$	412	$	－	$	412
	$	2,987	$	－	$	2,987
				Other
Cost		Buildings		Equipment		Total
Balance at January 1, 2023	$	761	$	13,858	$	14,619
Additions		－		－		－
Decrease		(761 )		－		(761 )
Balance at December 31, 2023	$	－	$	13,858	$	13,858
				Other
Accumulated depreciation		Buildings		Equipment		Total
Balance at January 1, 2023	$	761	$	10,393	$	11,154
Depreciation expense		－		2,599		2,599
Decrease		(761 )		－		(761 )
Balance at December 31, 2023	$	－	$	12,992	$	12,992
Carrying amounts at December 31,
2023	$	－	$	866	$	866
0) Investment properties
			2024.12.31		2023.12.31
Land			$	308,269	$	308,269
Buildings				39,254		43,134
Total carrying amounts			$	347,523	$	351,403
Cost		Land		Buildings		Total
Balance at January 1, 2024	$	308,269	$	74,077	$	382,346
Additions		－		－		－
Transfer to property, plant, and
equipment		－		(3,309)		(3,309)
Balance at December 31, 2024	$	308,269	$	70,768	$	379,037

(10) Investment properties

～ 24 ～

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	Land $ － — － $ － $ 308,269 Land $ 308,269 － $ 308,269 $ － — $ － $ 308,269	Buildings Total $ 30,943 $ 30,943 2,057 2,057 (1,486 ) (1,486 ) $ 31,514$ 31,514 $ 39,254$ 347,523 Buildings Total $ 74,077 $ 382,346 － － $ 74,077$ 382,346 $ 28,794 $ 28,794 2,149 2,149 $ 30,943$ 30,943 $ 43,134$ 351,403

• a. The investment properties held by the Company 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 Company 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).

• (11) Intangible assets

Computer software Other intangible assets Total carrying amounts Cost Balance at January 1, 2024 Additions Decrease Balance at December 31, 2024 Accumulated amortization Balance at January 1, 2024 Amortization expense Decrease Balance at December 31, 2024 Carrying amounts at December 31, 2024	2024.12.31 2023.12.31 $ 8,500 $ 1,296 17,017 3,623 $ 25,517$ 4,919 Computer Software Other Intangible Assets Total $ 36,346 $ 36,515 $ 72,861 9,046 15,826 24,872 (3,690 ) (11,896 ) (15,586) $ 41,702$ 40,445$ 82,147 $ 35,050 $ 32,892 $ 67,942 1,842 2,432 4,274 (3,690 ) (11,896 ) (15,586) $ 33,202$ 23,428$ 56,630 $ 8,500$ 17,017$ 25,517

～ 25 ～

Cost Balance at January 1, 2023 Additions Balance at December 31, 2023 Accumulated amortization Balance at January 1, 2023 Amortization expense Balance at December 31, 2023 Carrying amounts at December 31, 2023	Computer Software $ 35,948 398 $ 36,346 $ 34,428 622 $ 35,050 $ 1,296	Other Intangible Assets $ 35,675 840 $ 36,515 $ 31,404 1,488 $ 32,892 $ 3,623	Total
			$ 71,623 1,238
			$ 72,861
			$ 65,832 2,110
			$ 67,942
			$ 4,919

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

The above items of intangible estimated useful lives as follows:	assets are amorti
Computer software	3-7 years
Other intangible assets	3-10 years
(12) Other assets

Golf club card Others Less: Accumulated impairment Total Current Non-current Total (13) Short-term loans Unsecured loans Secured loans Annual interest rate (14) Provisions Warranty provision Balance, beginning of the year Provisions recognized Utilized Balance, end of the year		2024.12.31	2023.12.31 $ 12,847 175 ) (3,099 ) $ 9,923 $ 175 9,748 $ 9,923 2023.12.31 $ 930,000 710,000 $ 1,640,000 1.85%～1.88% 2023 $ 12,100 4,260 (4,260) $ 12,100
		$ 12,847 649 (3,099
		$ 10,397
		$ 649 9,748
		$ 10,397
	$
	$

～ 26 ～

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 $ 10,400 (710) $ 9,690	2023.12.31 $ 626,100 (54,036) $ 572,064

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.

～ 27 ～

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 of 1.972% 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

(16) Long-term loans

6) Long-term loans
Bank Loan period and repayment term Taiwan Cooperative Bank 2022.12.30～2029.12.30 Less: Current portion of long-term loans Total	Loan period and repayment term	2024.12.31 2023.12.31 Interest (%) Amount Interest (%) Amount 2.278 $ 124,761 2.153 $ 148,075 (23,830 ) (23,371 ) $ 100,931 $ 124,704
		Interest (%) 2.278

• (17) Retirement benefit plans

a. Defined contribution plans

The Company 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 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. The Company contributes amounts equal to 8.9% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee’s name. Before the end of each year, the Company assesses the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Company is required to fund the difference in one appropriation that should be made before the end of March of the following year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (“the Bureau”); the Company has no right to influence the investment policy and strategy.

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

～ 28 ～

	2024.12.31	2024.12.31	2023.12.31	2023.12.31
Present value of defined benefit obligation	$	(383,377)	$	(397,528)
Fair value of plan assets		414,903		386,427
Net defined benefit assets (liabilities)	$	31,526	$	(11,101)
Movements in the present value of the defined benefit obligation were as follows:
		2024		2023
Balance, beginning of year	$	397,528	$	411,820
Current service cost		245		382
Interest expense		4,339		4,895
Remeasurement
Actuarial loss (gain) - changes in financial
assumptions		(6,460)		1,819
Actuarial loss - experience adjustments		14,423		11,892
Benefits paid		(26,698)		(33,280)
Balance, end of year	$	383,377	$	397,528|
Movements in the fair value of the plan assets were		as follows:
		2024		2023
Balance, beginning of year	$	386,427	$	396,305
Interest revenue		4,300		4,800
Remeasurement
Return on plan assets (excluding amounts
included in net interest expense)		35,879		3,532
Contributions from employer		14,995		15,070
Benefits paid		(26,698)		(33,280)
Balance, end of year	$	414,903	$	386,427

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:

		2024			2023
Current service cost	$		245	$		382
Net interest expense			39			95
Total	$		284	$		477

Through the defined benefit plans under the Labor Standards Law, the Company 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.

～ 29 ～

• Interest risk: A decrease in the government bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the 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:

purposes of the actuarial valuations were as	follows:	follows:
Discount rate Expected rate of salary increase	Measurement Date
	2024.12.31 1.5% 1.8%	2023.12.31
		1.1% 1.8%

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 Equity a. Ordinary shares Authorized share capital Issued share capital	2024.12.31 $ (1,575) 1,591 1,284 (1,273) 2024.12.31	2024.12.31 $ (1,575) 1,591 1,284 (1,273) 2024.12.31		2023.12.31 $ (1,819) 1,838 1,494 (1,481) 2023.12.31
	$14,988 4.1years 2024.12.31 $ 3,500,000 $ 2,675,437			$15,060 4.5 years 2023.12.31 3,500,000 2,469,353
		$
		$

• (18) Equity

• a. Ordinary shares

The par value is NT$10 dollars.

As of December 31, 2024, the convertible bonds with a face value of NT$989,600 thousand were converted into 15,459 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 Equity component of convertible bonds payable From donations	2024.12.31 $ 887,138 95,045 939 866 1,594 $ 985,582	2023.12.31 $ 371,348 15,245 610 52,121 1,601 $ 440,925

Under Company Act, the capital surplus arising from shares issued in excess of par (including share premium from the issuance of ordinary shares 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.

～ 31 ～

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 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 dividend, 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.

～ 32 ～

e. Special reserves

Balance, beginning of year Reversal: Depreciation expense on investment properties Balance, end of year f. Treasury stock Shares held by the subsidiaries		2024 2023 449,780 $ 450,584 (803) (804) 448,977 $ 449,780 (In thousands of shares) 2024.12.31 2023.12.31 2,195 2,902	2024 2023 449,780 $ 450,584 (803) (804) 448,977 $ 449,780 (In thousands of shares) 2024.12.31 2023.12.31 2,195 2,902
	$
	$
			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 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

Revenue from sale of goods Construction contract revenue Other operating revenue (20) Operating cost Cost of goods sold Construction contract cost Technical service cost	2024 $ 7,023,946 1,356,215 14,183 $ 8,394,344 2024 $ 5,753,666 1,200,335 4,661 $ 6,958,662	2023 $ 6,939,548 2,131,798 15,657 $ 9,087,003 2023 $ 5,773,523 1,913,284 4,825 $ 7,691,632

～ 33 ～

(21) Other income

) Other income
Interest income Bank deposits Others Rental income Dividend income Others	2024 $ 3,394 674 13,440 3,750 8,576 $ 29,834	2023
		$ 3,019 1,306 13,306 3,045 5,700
		$ 26,376

(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 Depreciation on investment properties Impairment loss Other losses	2024 $ 29,059 5,052 (42) (2,057) － (3,103) $ 28,909	2023 $ (32,873) 10,712 38 (2,149) (25,000) (3,717) $ (52,989)

(23) Finance costs

Interest on bank loans Interest on lease liabilities Interest on convertible bonds Others ) 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 $ 34,740 60 2,287 45 $ 37,132 2024 $ 54,477 1,278 2,057 4,274 $ 62,086	2023
		$ 41,080 38 6,382 41
		$ 47,541
		2023
		$ 41,836 2,599 2,149 2,110
		$ 48,694

(24) Additional information of expenses by nature

～ 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 $ 112,312 $ 24,088 284 24,372 692,762 60,252 34,991 $ 812,377	2023
		$ 952 5
		$ 957
		$ 114,494
		$ 22,575 477
		23,052 702,344 53,284 29,482
		$ 808,162

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:

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

～ 35 ～

• (25) Income taxes

• a. Income tax expense recognized in profit or loss

 Major components of income tax expense ：

		2024		2023
Current tax
In respect of the current year	$	147,932	$	151,404
Adjustments for prior years		1,055		12,178
Subtotal		148,987		163,582
Deferred tax
Origination and reversal of temporary
differences		14,471		(17,440 )
Income tax expense	$	163,458	$	146,142
A reconciliation of accounting profit and	income	tax expense was as		follows:
		2024		2023
Income before tax	$	964,682$		897,841
Income tax expense calculated at the
statutory rate (20%)	$	192,936 $		179,568
Tax effect of adjusting items:
Nondeductible items in determining
taxable income		694		224
Tax-exempt income		(750 )		(609 )
Investment gain		3,618		－
Origination and reversal of temporary
differences		(46,052 )		(21,583 )
Investment tax credit		(6,446 )		(8,903 )
Adjustments for prior years		1,055		12,178
Additional tax on undistributed earnings		3,932		2,707
Current tax		148,987		163,582
Deferred tax
Origination and reversal of temporary
differences		14,471		(17,440 )
Income tax expense	$	163,458	$	146,142

～ 36 ～

b. Deferred tax assets

The movements of deferred tax assets were as follows:

			Recognized in
		2024.1.1	Profit or Loss	2024.12.31
Temporary differences
Allowance for inventory loss	$	18,875 $	(6,630 ) $	12,245
Unrealized exchange losses
(gains)		6,669	(9,172 )	(2,503 )
Payable for annual leave		4,932	284	5,216
Impairment loss		5,000	(583 )	4,417
Others		5,488	1,630	7,118
	$	40,964 $	(14,471 ) $	26,493
			Recognized in
		2023.1.1	Profit or Loss	2023.12.31
Temporary differences
Allowance for inventory loss	$	14,274 $	4,601 $	18,875
Unrealized exchange losses
(gains)		(388 )	7,057	6,669
Payable for annual leave		4,867	65	4,932
Impairment loss		－	5,000	5,000
Others		4,771	717	5,488
	$	23,524 $	17,440 $	40,964

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

Deductible temporary differences	2024.12.31 $ 39,244	2023.12.31 $ 48,552

• d.The income tax returns of the Company through 2022 have been assessed by the tax authority.

• (26) Earnings per share

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:

computation of earnings per share were as follows:
Net income for the year attributable to common shareholders	2024 $ 801,224	2023
		$ 751,699

～ 37 ～

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 the computation of basic earnings per share ( in thousands of shares) Effects of potentially dilutive ordinary shares Convertible bonds Employee’s compensation Weighted average number of ordinary shares in the computation of diluted earnings per share (in thousands of shares)	2024 $ 801,224 2,264 (4,996 ) $ 798,492 263,360 2,004 481 265,845	2023 $ 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 transactions Partial cach investing activities: Acquisition of property, plant and equipment Decrease in other payables Cash paid (28) Significant lease agreements a. The Company as lessee Expenses relating to short-term leases Total cash outflow for leases b. The Company as lessor	2024 2023 $ 123,866 $ 194,684 5,284 35,253 $ 129,150 $ 229,937 2024 2023 $ 24,354 $ 20,825 $ 25,985 $ 23,325	2024 2023 $ 123,866 $ 194,684 5,284 35,253 $ 129,150 $ 229,937 2024 2023 $ 24,354 $ 20,825 $ 25,985 $ 23,325	2023
			$ 194,684 35,253
			$ 229,937
	2024 $ 24,354 $ 25,985		2023
		$ 20,825
		$ 23,325

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

～ 38 ～

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 $ 13,554 12,390 9,483 6,891 1,856 — $ 44,174	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 Company 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		FairValue	FairValue	Total $ 9,590
Financial liabilities at amortized cost -Convertible bonds		Level 1 $ －	Level 2 $ －	Level3 $ 9,590

～ 39 ～

2023.12.31	Carrying Amount $572,064		FairValue	FairValue	Total $ 573,758
Financial liabilities at amortized cost -Convertible bonds		Level 1 $ －	Level 2 $ －	Level3 $ 573,758

③Financial instruments that are measured at fair value

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

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		Total $ 69 $ 101,750 100,781 $202,531 $ 98 Total $ 198 137,530 $137,728 $ 1,064
	Level 1 $ － $ 101,750 － $101,750 $ －	Level 2 Level 3 $ － $ 69 $ －$ － － 100,781 $ － $100,781 $ 98$ － 2023.12.31
	Level 1 $ 198 － $ 198 $ －	Level 2 $ － 88,633 $ 88,633 $ －	Level 3 $ － 48,897 $ 48,897 $ 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:

Balance, beginning of the year Redemption and put option of convertible bonds Convertible bonds converted into ordinary shares Recognized in profit or loss Balance, end of the year	Financial assets (liabilities) at FVTPL 2024 2023 $ (1,064 ) $ － － (9,400 ) (3,863 ) (1,013 ) 4,996 9,349 $ 69$ (1,064 )

～ 40 ～

Balance, beginning of the year Acquistion of financial assets at FVTOCI Accounted for unrealized gains (losses) from investments in equity instruments measured at FVTOCI Balance, end of the year	Financialassets atFVTOCI 2024 2023 $ 48,897 $ 194,190 13,001 15,560 38,883 (160,853) $ 100,781$ 48,897
	2024 $ 48,897 13,001 38,883 $ 100,781

• 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.

• ⑤Valuation 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.

• b. Categories of financial instruments

Financialassets FVTPL FVTOCI Amortized cost (Note1) Total Financial liabilities FVTPL Amortized cost (Note2) Total	2024.12.31 $ 69 202,531 4,547,569 $ 4,750,169 2024.12.31 $ 98 4,633,840 $ 4,633,938	2023.12.31 $ － 137,728 4,503,135 $4,640,863 2023.12.31 $ 1,064 5,211,243 $ 5,212,307

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

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

～ 41 ～

c. Financial risk management objectives and policies

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

 Foreign currency risk

The Company undertook transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arose. The Company 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 Company’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):

2024.12.31

Financial assets Monetary items USD EUR JPY SGD RMB ZAR AUD Non-monetary items RMB ZAR EUR SGD	Foreign Currencies $11,815 6 381 546 99 2,030 4 16,919 19,101 1,218 4,581	～ Exchange Rate 32.785 34.14 0.2096 24.14 4.484 1.744 20.42 4.484 1.744 34.14 24.14	Carrying Amounts	SensitivityAnalysis Variations Impact on Profit(loss) Impact on Equity ±10% ±38,736 ±38,736 ±10% ±21 ±21 ±10% ±8 ±8 ±10% ±1,318 ±1,318 ±10% ±44 ±44 ±10% ±354 ±354 ±10% ±8 ±8 ±10% － ±7,587 ±10% － ±3,331 ±10% － ±4,158 ±10% － ±11,059	SensitivityAnalysis Variations Impact on Profit(loss) Impact on Equity ±10% ±38,736 ±38,736 ±10% ±21 ±21 ±10% ±8 ±8 ±10% ±1,318 ±1,318 ±10% ±44 ±44 ±10% ±354 ±354 ±10% ±8 ±8 ±10% － ±7,587 ±10% － ±3,331 ±10% － ±4,158 ±10% － ±11,059
			(NTD)	Variations ±10% ±10% ±10% ±10% ±10% ±10% ±10% ±10% ±10% ±10% ±10%	Impact on Profit(loss) ±38,736 ±21 ±8 ±1,318 ±44 ±354 ±8 － － － －
			42～ 387,355 205 80 13,180 444 3,540 82 75,865 33,312 41,583 110,585

2024.12.31

Financial liabilities Monetary items USD EUR RMB	Foreign Currencies 1,237 198 4,436	Exchange Rate 32.785 34.14 4.484	Carrying Amounts	SensitivityAnalysis	SensitivityAnalysis	SensitivityAnalysis
			(NTD)	Variations ±10% ±10% ±10%	Impact on Profit(loss) ∓4,056 ∓676 ∓1,989	Impact on Equity
			40,555 6,760 19,891			∓4,056 ∓676 ∓1,989

2023.12.31

Financial assets Monetary items USD EUR JPY SGD RMB AUD Non-monetary items RMB ZAR EUR SGD Financial liabilities Monetary items USD EUR RMB	Foreign Currencies $34,677 1 4,351 4,994 82 3 18,718 10,705 1,111 3,949 3,968 1 209	Exchange Rate 30.705 34.02 0.2171 23.31 4.328 21 4.328 1.657 34.02 23.31 30.705 34.02 4.328	Carrying Amounts	SensitivityAnalysis	SensitivityAnalysis	SensitivityAnalysis
			(NTD)	Variations ±10% ±10% ±10% ±10% ±10% ±10% ±10% ±10% ±10% ±10% ±10% ±10% ±10%	Impact on Profit(loss) ±106,476 ±3 ±95 ±11,641 ±36 ±6 － － － － ∓12,184 ∓3 ∓91	Impact on Equity
			1,064,757 34 945 116,410 355 63 81,012 17,738 37,796 92,051 121,837 34 905			±106,476 ±3 ±95 ±11,641 ±36 ±6 ±8,101 ±1,774 ±3,780 ±9,205 ∓12,184 ∓3 ∓91

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 Company is exposed to interest rate risks related to floating rate short-term and long-term loans. The risk is managed by the Company 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 Company’s pre-tax profit for the years ended December 31, 2024 and 2023 would decrease/increase by NT$4,812 thousand and NT$4,470 thousand, respectively.

～ 43 ～

 Other price risk

The Company is exposed to equity price risk through its investments in equity securities. Equity investments are held for strategic rather than trading purposes. The Company does not actively trade these investments. All material investments should be approved by the board of directors in order to manage the equity price risk through its investments in equity securities.

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$10,127 thousand and NT$6,886 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 Company. The Company 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 Company’s maximum credit risk exposure is equal to the carrying amount of the recognized financial assets as stated in the parent company only balance sheets.

 Business related credit risk

In order to maintain the credit quality of accounts receivable, the Company 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 Company 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 Company’s ten largest customers accounted for 82.40% and 80.45% of its total accounts receivables, respectively.

 Financial credit risk

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

f. Liquidity risk management

The Company manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Company’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 Company 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$3,973,856 thousand and NT$3,519,499 thousand, respectively.

～ 44 ～

 Liquidity risk table for non-derivative financial liabilities

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

Non-derivative financial liabilities Short-term loans Accounts payable Current tax liabilities Other payables Bonds payable Long-term loans Lease liabilities Guarantee deposits		2024.12.31	Total $ 1,800,000 2,299,838 69,929 323,202 10,400 124,761 2,961 3,459 $4,634,550		2023.12.31	Total $ 1,640,000 2,367,478 106,152 372,885 626,100 148,075 1,133 3,456 $5,265,279
	Less than 1 Year $ 1,800,000 2,181,060 69,929 297,909 － 23,830 596 2 $ 4,373,326	More than 1 Year		Less than 1 Year $1,640,000 2,317,367 106,152 312,593 － 23,371 1,133 86 $ 4,400,702	More than 1 Year $ － 50,111 － 60,292 626,100 124,704 － 3,370 $864,577
		$ － 118,778 － 25,293 10,400 100,931 2,365 3,457
		$ 261,224

 Liquidity risk table for derivative financial liabilities

The following table detailed the Company’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.

Derivative financial instruments Gross settled foreign exchange contract Inflows Outflows	Less than	1 Year 2023.12.31 $ － － $ －
	2024.12.31 $ 15,693 (15,791) $ (98 )

7. TRANSACTIONS WITH RELATED PARTIES

Details of transactions between the Company and other related parties were disclosed below:

(1) Names and relationships of related parties

～ 45 ～

Related Party Air King Industrial Co., Ltd. Ares Technology Co., Ltd. Allis Communications Co., Ltd. Yishun Investment Co., Ltd. Hengyuan Allis Electric Co., Ltd. PHD Powerhouse Distributions (PTY) Ltd. (PHD) AEC International S.r.l (AEC) Allis Electric (S) Pte. Ltd. Nissin-Allis Electric Co., Ltd. Nissin Allis Union Ion Equipment Co., Ltd. Le-Min Industrial Co., Ltd. Taiwan Marine Electric Co., Ltd. Impact Power Inc. Hui-De Industrial Co., Ltd. CANTAL INTEGRANTION Pte Ltd. (formerly Yolka Engineering Pte Ltd.) Herr-Yeh Sung

Relationship with the Company

Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Associate Associate Related party in substance Related party in substance Related party in substance Related party in substance Related party in substance Key management personnel

(2) Operating revenue

Line Items Related Parties Categories Operating Revenue Subsidiaries Associates Others urchase and factory overhead LineItems Related Parties Categories Purchase and factory overhead Subsidiaries Associates Others eceivables from related parties Line Items Related Parties Categories Notes receivable from related parties Others Accounts receivable from related parties Subsidiaries Associates Others	2024 $ 236,949 70,464 19,528 $ 326,941 2024 $ 440,776 227,910 100,923 $ 769,609 2024.12.31 $ － $ 156,354 9,447 － $ 165,801	2023 $ 339,491 46,316 9,378 $ 395,185 2023 $ 742,567 407,949 113,635 $ 1,264,151 2023.12.31 $ 7,837 $ 204,905 25,980 717 $ 231,602

(3) Purchase and factory overhead

(4) Receivables from related parties

～ 46 ～

Line Items Other receivables	Related Parties Categories Subsidiaries Associates	2024.12.31 $ 1,590 202 $ 1,792	2023.12.31
			$ 105 134
			$ 239

The outstanding receivables from related parties are unsecured.

(5) Payable to related parties

Line Items Accounts payable to related parties Other payables thers Line Items Selling and marketing expenses General and administrative expenses Research and development expenses Other income Construction in Progress	Related Parties Categories Subsidiaries Associates Others Subsidiaries Associates Others Related Parties Categories Subsidiaries Others Subsidiaries Subsidiaries Others Subsidiaries Associates Others Subsidiaries	2024.12.31 $ 365,134 102,988 36,655 $ 504,777 $ 2,604 48 400 $ 3,052 2024 $ 5,119 762 $ 5,881 $ 56 $ 68 40 $ 108 $ 1,763 2,509 24 $ 4,296 $ －	2023.12.31 $ 219,400 191,488 17,999 $ 428,887 $ 3,339 97 2,106 $ 5,542 2023 $ 1,000 551 $ 1,551 $ 156 $ 26 68 $ 94 $ 190 2,182 24 $ 2,396 $ 61,840

(6) Others

～ 47 ～

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) Financing provided

					2023
		Highest		Ending	Allowance for		Interest	Interest
		Balance	Balance		Impairment Loss		Rate	income
AEC	$	19,971	$	－	$	－	3%	$	50
PHD		7,804		－		－	3%		4
			$	－	$	－		$	54

The aforementioned financing are unsecured.

• (8) Compensation of key management personnel

Short-term benefits Post-employment benefits	2024 $ 73,096 817 $ 73,913	2023
		$ 74,396 813
		$ 75,209

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

(9) 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 $ 4,734 893,259 342,835 $ 1,240,828	2023.12.31 $ 4,663 903,932 344,783 $ 1,253,378

～ 48 ～

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

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

• (1) The guaranteed notes issued were NT4,696,113 thousand, including:

• a. The guaranteed notes issued for bank loans were NT$4,150,000 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:

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).

• (2) Information on investees (excluding investee company in mainland China): Please refer to Table 6 attached.

～ 49 ～

• (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 7 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 to Note 7.

• (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 ～

Allis Electric Co., Ltd. FINANCING PROVIDED TO OTHERS FOR THE YEAR ENDED DECEMBER 31, 2024 Table 1 (In Thousands of New Taiwan Dollars)

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
	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.

～ 51 ～

Allis Electric Co., Ltd. and Subsidiaries ENDORSEMENTS/GUARANTEES PROVIDED FOR THE YEAR ENDED DECEMBER 31, 2024

Table 2 (In Thousands of New Taiwan Dollars)

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	Relation -ship (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.

～ 52 ～

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
				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 VehiclesCo.,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

～ 53 ～

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
				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
	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 Industrial 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

～ 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
				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

～ 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
				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 Company, Ltd.	Stocks of Watron Technology Corp.	－	Financial assets at fair value through other comprehensive income- noncurrent	206,400	6,070	3.82%	6,070

～ 56 ～

Allis Electric Co., Ltd.

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			FOR THE YEAR ENDED DECEMBER 31, 2024 (In Thousands of New Taiwan Dollars)	FOR THE YEAR ENDED DECEMBER 31, 2024 (In Thousands of New Taiwan Dollars)	FOR THE YEAR ENDED DECEMBER 31, 2024 (In Thousands of New Taiwan Dollars)	FOR THE YEAR ENDED DECEMBER 31, 2024 (In Thousands of New Taiwan Dollars)
Seller/Buyer	Related Party	Relationship	Transaction Details				Abnormal Transaction		Notes/Accounts Receivable (Payable)
			Purchase/ Sale	Amount	% of Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
Allis Electric Co., Ltd.	AEC International S.r.l.	Subsidiary	Sales	$ (188,279)	(2.24%)	210 days	－	－	$ 124,962	3.25%
	Air King Industrial Co., Ltd.	Subsidiary	Purchase	$ 364,618	5.96%	115 days	－	－	$ (333,176)	(14.49%)
	Nissin-Allis Electric Co., Ltd.	Associate	Purchase	$ 227,864	3.72%	115 days	－	－	$ (102,988)	(4.48%)

～ 57 ～

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	1 2 4 , 9 6 2	2.03	$ －	－	$ 51,589	$ 1,270

～ 58 ～

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 6

Table 6
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	－
	Nissin-Allis Electric Co.,Ltd.	Taoyuan, Taiwan	Manufacturing of SF6 capacitor and GIS	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	－
	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	－
	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
	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 )	－
	AEC International S.r.l.	Italy	Selling of electrical equipment	66,444	66,444	420,000	70.00%	31,831	5,367	3,757	－
	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: 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).

～ 59 ～

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 7

Table 7
Investee Company	Principle Businesses Activities	Paid-in Capital		Method of Investment	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 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	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)
							Upper Limit on the Amount of Investment Stipulated by Investment Commission, MOEA Net equity＊60% 3,458,201
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 share of profit (loss) was recognized based on the financial statements certificated by the CPA of the parent company in Taiwan.

～ 60 ～

Allis Electric Co., Ltd.

The CONTENTS OF STATEMENTS OF IMPORTANT ACCOUNTING ITEMS

2024

Statement	of cash and cash equivalents	Statement 1
Statement	of financial assets at FVTOCI-current	Statement 2
Statement	of notes receivable	Statement 3
Statement	of accounts receivable	Statement 4
Statement	of inventories	Statement 5
Statement	of prepayments	Statement 6
Statement	of financial assets at FVTOCI-noncurrent	Statement 7
Statement	of changes in investments accounted for using equity method	Statement 8
Statement	of changes in property, plant and equipment	Note 6(8)
Statement	of changes in right-of-use assets	Note 6(9)
Statement	of changes in investment properties	Note 6(10)
Statement	of changes in intangible assets	Note 6(11)
Statement	of refundable deposits	Statement 9
Statement	of short-term loans	Statement 10
Statement	of accounts payable	Statement 11
Statement	of other payables	Statement 12
Statement	of long-term loans	Statement 13
Statement	of operating revenue	Statement 14
Statement	of operating cost	Statement 15
Statement	of selling and marketing expenses, general and administrative	Statement 16
expenses	and research and development expenses
Statement	of other income	Note 6(21)
Statement	of employee benefits expense, depreciation and amortization by	Statement 17
function

～ 61 ～

Allis Electric Co., Ltd. STATEMENT OF CASH AND CASH EQUIVALENTS DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars)

Statement 1 Item Petty cash and cash on hand Cash in banks Checking accounts Demand deposits Foreign currency deposits (Note) Total	Amount $ 910 2,109 482,922 54,747 $ 540,688

Note：Including US$1,256 thousand, EUR6 thousand, JPY381 thousand, RMB7 thousand, SGD546 thousand and AUD4 thousand at exchange rates USD$1=NT$32.785, EUR$1=NT$34.14 JPY$1=NT$0.2096, CNY$1= NT$4.484, SGD$1= NT$24.14 and AUD$1=NT$20.42, respectively.

～ 62 ～

Allis Electric Co., Ltd. STATEMENT OF FINANCIAL ASSETS AT FVTOCI-CURRENT DECEMBER 31, 2024

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

Statement 2

Financial instrument name Ordinary shares： Stocks of FIC Global, Inc. Stocks of Taiwan High Speed Rail Corporation Stocks of Arch Meter Corporation Total	Shares 1,273 4,000 1,248,000	Par value (NT$) 10 10 10	Total Amount $ 13 40 12,480 $ 12,533	Cost $ 30 40 15,773 $ 15,843	Fair Value Unit Price (NT$) Total Amount 40.15 $ 51 27.80 111 81.40 101,588 $ 101,750	Pledge
					Unit Price (NT$) 40.15 27.80 81.40
						Nil Nil Nil

～ 63 ～

Allis Electric Co., Ltd. STATEMENT OF NOTES RECEIVABLE DECEMBER 31, 2024 (In Thousands of New Taiwan Dollars)

Statement 3

Client Name Taiwan Power Engineering Co., Ltd. Yi Jia Electromechanical Engineering Co., Ltd. Jehng Long Engineering Co., Ltd. Others（The amount of individual client does not exceed NT$4,772 thousand) Total Less: Allowance for impairment loss Notes receivable, net	Amount $ 45,000 25,333 5,669 19,433 95,435 (484) $ 94,951

～ 64 ～

Allis Electric Co., Ltd. STATEMENT OF ACCOUNTS RECEIVABLE DECEMBER 31, 2024 (In Thousands of New Taiwan Dollars)

Statement 4 Client Name Taiwan Semiconductor Manufacturing Company, Ltd. CTCI Corporation TCC Chia-Chien Green Energy Corporation LTD. Taiwan Power Company Transmission and Substation Engineering Department, Central District Construction Office Taiwan Power Company GE Vernova International LLC - Taiwan Branch (USA) Xintec Inc. Other (The amount of individual client does not exceed NT$183,245 thousand) Total Less: Allowance for impairment loss Accounts receivable, net

Amount $ 536,075 375,328 309,731 302,033 286,927 246,623 237,345 1,370,841 3,664,903 (76,870 ) $ 3,588,033

～ 65 ～

Allis Electric Co., Ltd. STATEMENT OF INVENTORIES DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars)

Statement 5

Item Finished goods Work in process Raw materials Inventory in transit Inventories, net	Amount	Amount
	Cost $ 329,101 468,162 1,364,776 27,998 $ 2,190,037	Net Realizable Value
		＄ 450,806 792,497 1,364,776 27,998
		＄ 2,636,077

～ 66 ～

Allis Electric Co., Ltd. STATEMENT OF PREPAYMENTS DECEMBER 31, 2024 (In Thousands of New Taiwan Dollars)

Statement 6

Item	Descriptions		Amount
Prepayment for purchases	Down payment	$	34,640
Prepayment for bank guarantee charge	Performance guarantee fee and loan guarantee fee, etc.		21,364
Prepaid insurance	Prepaid group insurance, property insurance, etc.		7,712
Prepaid technical service fees			4,544
Others	Prepaid software licensing fees, etc.		10,311
Total		$	78,571

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Allis Electric Co., Ltd.

STATEMENT OF FINANCIAL ASSETS AT FVTOCI-NONCURRENT

FOR THE YEAR ENDED DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars)

		(In Thousands of New Taiwan Dollars)
Statement 7 Financial instrument name Ordinary shares Le-Min Industrial Co., Ltd. Arch Meter Corporation Tangeng Advanced Vehicles Co., Ltd. Leadtang Technology Co., Ltd. ProMOS Technologies Inc. Advantage International Green Energy Co., Ltd. ChargeSmith Co., Ltd. Zhihe Low Carbon Co., Ltd.	Balance, January 1, 2024 Shares Fair value 1,948,072 $ 47,007 1,248,000 88,633 11,356,717 － 1,000,000 － 133,366 1,190 － 700 175,759 － － － $ 137,530	Increase in 2024 Shares Amount － $ 25,403 － － － － － － － － － － － － 13,000,000 26,741 $ 52,144	Decrease in 2024 Shares Amount － $ － 1,248,000 88,633 － － － － － 100 － 160 － － － － $ 88,893	Balance, December 31, 2024 Shares Fair value 1,948,072 $ 72,410 － － 11,356,717 － 1,000,000 － 133,366 1,090 － 540 175,759 － 1,300,000 26,741 $ 100,781	Collateral or Pledge
	Shares 1,948,072 1,248,000 11,356,717 1,000,000 133,366 － 175,759 －	Shares － － － － － － － 13,000,000	Shares － 1,248,000 － － － － － －	Shares 1,948,072 － 11,356,717 1,000,000 133,366 － 175,759 1,300,000
					Nil Nil Nil Nil Nil Nil Nil Nil

～ 68 ～

Allis Electric Co., Ltd. STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars)

Statement 8

	Balance, January	Balance, January	1, 2024	Increase(Decrease)in 2024	Increase(Decrease)in 2024	Increase(Decrease)in 2024													Unrealized gains (loss)			Balance, December 31,	Balance, December 31,	2024
																		from investments in equity
											Unrealized					Disposal of		instruments measured at		Exchange differences on
																						Shares
	Shares			Shares			Share of Profit	Remeasurement of		gross profit		on	Capital		Retained		Treasury	fair value through other			translating foreign		Percentage of				Collateral or
Investee Company	(In Thousands)		Amount	(In Thousands)		Amount	(Loss)	defined	benefitplans		sales		Surplus		earnings		Shares		comprehensive income		operation	(In Thousands)	ownership		Amount	Share of equity	Pledge
Air King Industrial	8,316	$	124,478	831	$	(22,453 )$	39,511	$	269	$		－$		－$	－	$	－	$	－	$	－	9,147	83.12%	$	141,805 $	150,992	Nil
Co., Ltd.						(Note)
Nissin-Allis Electric Co., Ltd.	9,000		275,995	－		(35,400 (Note) )	55,642		1,984		(1,347 )			－	－		－		－		－	9,000	30.00%		296,874	299,797	Nil
Ares Technology	6,800		68,715	－		－	1,449		1,236			－		－	－		－		－		－	6,800	100.00%		71,400	71,400	Nil
Co., Ltd.
Allis Communications	5,702		65,420	－		(912 (Note) )	3,844		－			－		－	－		－		(1,182 )		－	5,702	82.64%		67,170	67,170	Nil
Co., Ltd.
Yishun Investment	17,990		104,646	－		－	1,108		－			－	79,800		(198 )		10,750		2,108		－	17,990	99.94%		198,214	418,778	Nil
Co., Ltd.
Nissin Allis Union Ion Equipment	4,000		91,151	－		(15,600 (Note) )	15,555		－			－		－	－		－		－		1,221	4,000	40.00%		92,327	92,327	Nil
Co., Ltd.
Hengyuan Allis Electric Co., Ltd.	－		81,009	－		(9,134 (Note) )	1,041		－			－		－	－		－		－		2,947	－	65.38%		75,863	75,863	Nil
PHD Powerhouse	90		13,561	135		31,568	(13,946 )		－		(3,247 )			－	(2,172 )		－		－		124	225	93.75%		25,888	33,312	Nil
Distributions
(PTY) Ltd.
AEC	420		29,071			－	3,757		－		(1,018 )			－	－		－		－		21	420	70.00%		31,831	41,573	Nil
International
S.r.l.
Allis Electric (S) Pte. Ltd.	3,000		92,061			(8,958 (Note) )	23,426		－			－		－	－		－		－		4,052	3,000	100.00%		110,581	110,581	Nil
AYM	2		－	－		－			－			－		－	－		－		－		－	2	40.00%		－	－	Nil
International							－
Coporation
Intelicis	1,876		－	－		－	－		－			－		－	－		－		－		－	1,876	29.16%		－	－	Nil
Corporation
		$	946,107		$	(60,889) $	131,387	$	3,489	$	(5,612 ) $		79,800 $		(2,370 )	$	10,750	$	926	$	8,365			$	1,111,953 $	1,361,793

Note : Cash dividends received.

～ 69 ～

Allis Electric Co., Ltd. STATEMENT OF REFUNDABLE DEPOSITS DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars)

Statement 9

Item Chunghwa Telecom Co., Ltd. Taiwan Power Company Others（The amount of each item does not exceed NT$5,482 thousand） Total	Descriptions Performance bonds, warranty bonds, and tender bonds, etc. Performance bonds, warranty bonds, and tender bonds, etc. Deposits	Amount
		$ 30,292 46,253 33,103
		$ 109,648

～ 70 ～

Allis Electric Co., Ltd. STATEMENT OF SHORT-TERM LOANS DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars)

Statement 10

Statement 10		(In Thousands	of New Taiwan Dollars)
Bank Yuanta Commercial Bank Co., Ltd Bank of Taiwan Bank SinoPac Co., Ltd. Taiwan Cooperative Bank Hua Nan Commercial Bank, Ltd. Chang Hwa Commercial Bank, Ltd.	Type Unsecured loans Unsecured loans Unsecured loans Unsecured loans Secured loans Unsecured loans Secured loans Secured loans	Amount $ 250,000 200,000 380,000 50,000 50,000 20,000 200,000 650,000 $ 1,800,000	Period of the Contract 2024/12/23~2025/1/17 2024/12/6~2025/3/6 2024/12/19~2025/1/6 2024/12/10~2025/12/10 2024/12/10~2025/12/10 2024/12/10~2025/3/10 2024/12/10~2025/3/10 2024/9/13~2025/3/13	Range of Interest Rate 1.950% 1.875% 2.030% 1.975% 1.975% 1.929% 1.929% 1.875%	Loan Commitments 500,000 200,000 380,000 310,000 110,000 200,000 250,000 650,000	Collateral or Pledge
						Nil Nil Nil Nil Land and buildings Nil Land and buildings Land

～ 71 ～

Allis Electric Co., Ltd. STATEMENT OF ACCOUNTS PAYABLES DECEMBER 31, 2024 (In Thousands of New Taiwan Dollars)

Statement 11 Client Name Hwachu Construction Co., Ltd. Others（The amount of individual client does not exceed NT$89,753 thousand) Total	Amount
	$ 147,000 1,648,061
	$ 1,795,061

～ 72 ～

Allis Electric Co., Ltd. STATEMENT OF OTHER PAYABLES DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars)

Statement 12

Item Salaries and wages payable Others (The amount of each item does not exceed NT$16,160 thousand) Total	Descriptions Salary, bonus, pension, employee and director remuneration Commissions payable and equipment payable, etc.	Amount
		$ 235,019 88,183
		$ 323,202

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Allis Electric Co., Ltd. STATEMENT OF LONG-TERM LOANS DECEMBER 31, 2024 (In Thousands of New Taiwan Dollars)

Statement 13

Bank	Amount Period of the Contract $ 124,7612022/12/30~2029/12/30 (23,830) $ 100,931	Range of Interest Rate 2.278%	Loan Commitments 790,000	Collateralor Pledge
Taiwan Cooperative Bank				Land and buildings
Less: Current portion of long-term loans

==> picture [119 x 140] intentionally omitted <==

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Allis Electric Co., Ltd. STATEMENT OF OPERATING REVENUES FOR THE YEAR ENDED DECEMBER 31, 2024 (In Thousands of New Taiwan Dollars)

Statement 14

Item Revenue from sale of goods: Power and electrical equipment Transmission and distribution apparatus Switchgear Transformer Installation Others Less: Sales return Sales allowance Net revenue from sale of goods Construction contract revenue Other operating revenue: Technical service revenue Net operating revenue	Quantities 12,330 set 21,190 set 18,350 set 8,563 pcs	Unit price @ 159.87 @ 47.28 @ 129.71 @ 124.90	Amount
			$ 1,971,221 1,001,808 2,380,128 1,069,488 399,545 204,595
			7,026,785 2,177 662
			7,023,946 1,356,215 14,183
			$ 8,394,344

～ 75 ～

Allis Electric Co., Ltd. STATEMENT OF OPERATING COST FOR THE YEAR ENDED DECEMBER 31, 2024 (In Thousands of New Taiwan Dollars)

Statement 15

Statement 15
Item Cost of goods sold： Raw materials used Raw materials, beginning of year Inventory in transit, beginning of year Add: Raw material purchased Freight in Transferred from work-in-process Transferred from finished goods Less: Raw materials, end of year Inventory in transit, end of year Raw materials sold Direct labor Factory overhead Manufacturing cost Add: Work-in-process, beginning of year Adjusted standard cost of work-in-process Less: Work-in-process, end of year Transferred to additional cost Transferred to raw materials Transferred to factory overhead Transferred to research and development expenses Cost of finished goods Add: Finished goods, beginning of year Less: Finished goods, end of year Add: Raw materials sold Finished goods purchased Additional cost Allocation of standard cost variance Less: Transferred to raw materials Transferred to construction contract cost Adjusted standard cost of finished goods Subtotal Add: After-sale service cost Less: Revenue from sale of scraps Cost of goods sold Construction contract cost Technical service cost Total	Amount Subtotal Total $ 6,828,937 $ 1,261,182 53,697 6,089,384 29,086 1,330 802,865 1,364,776 27,998 15,833 168,857 423,680 7,421,474 623,387 72,474 468,162 8,462 1,330 5,719 36,104 7,597,558 546,703 329,101 15,833 490 8,462 31,985 802,865 1,200,335 118,627 5,750,103 5,922 2,359 5,753,666 1,200,335 4,661 $ 6,958,662
	Subtotal $ 1,261,182 53,697 6,089,384 29,086 1,330 802,865 1,364,776 27,998 15,833

～ 76 ～

Allis Electric Co., Ltd.

STATEMENT OF SELLING AND MARKETING EXPENSES, GENERAL AND ADMINISTRATIVE EXPENSES AND RESEARCH AND DEVELOPMENT EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2024

(In Thousands of New Taiwan Dollars)

Statement 16

Item Salary and related expense Travel expense Freight-out Insurance expense Depreciation expense Material expense Experimental manufacturing expense Others (Note) Total	Selling and Marketing Expenses $ 196,746 16,377 18,246 24,347 － － － 61,879 $ 317,595	General and Administrative Expenses $ 107,152 1,943 118 11,552 11,257 － － 65,697 $ 197,719	Research and Development Expenses $ 55,785 898 92 4,216 3,654 26,377 14,837 6,453 $ 112,312	Total
				$ 359,683 19,218 18,456 40,115 14,911 26,377 14,837 134,029
				$ 627,626

(Note) The amount of each item in others does not exceed 5% of the account balance.

～ 77 ～

Allis Electric Co., Ltd. STATEMENT OF EMPLOYEE BENEFITS EXPENSE, DEPRECIATION AND AMORTIZATION BY FUNCTION FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023 (In Thousands of New Taiwan Dollars)

Statement 17 Employee benefits expense Salary Labor and health insurance Pension Board compensation Others Depreciation Amortization		2024	Total $ 665,758 60,252 24,372 27,004 34,991 55,755 4,274		2023
	Classified as Operating Costs $ 347,060 26,920 10,391 － 22,465 40,844 1,171	Classified as Operating Expenses $ 318,698 33,332 13,981 27,004 12,526 14,911 3,103		Classified as Operating Costs $ 338,538 25,086 9,791 － 18,310 30,350 1,148	Classified as Operating Expenses $ 338,364 28,198 13,261 25,442 11,172 14,085 962	Total
						$ 676,902 53,284 23,052 25,442 29,482 44,435 2,110

• Note: 1. For the years ended December 31, 2024 and 2023, the Company had 691 and 668 monthly average number of employees, respectively, which included 6 non-employee directors for both years.

• Average employee benefits expense for the years ended December 31, 2024 and 2023 were $1,147 thousand and $1,182 thousand, respectively. Average salary for the years ended December 31, 2024 and 2023 were $972 thousand and $1,023 thousand, respectively. The average salary decreased by 4.99% year over year.

• The Company did not have supervisors for the years ended December 31, 2024 and 2023. Therefore, there was no compensation to the supervisor.

• The Company’s compensation and remuneration policy:

• A. Remuneration to directors is paid with reference to the typical pay level. According to the Company’s Articles of Incorporation, if there is profit in any given fiscal year, compensation and remuneration to directors is accrued and reviewed by the Compensation Committee and the Board of Directors. The compensation arrangement shall be reported in the shareholders’ meeting. Directors who also serve as executive officers will receive compensation based on the following rules B & C.

• B. The compensation and remuneration of executive officers is guided in accordance with the Company’s “Rules for Distribution of Salaries and Bonus to Employees (including the executive officers)”. Executives’ compensation are based on individual performance, their contribution to the Company's overall performance and industry standards. It is reviewed by the Compensation Committee and consequently reward the executive officers with the approval of the Board of Directors.

～ 78 ～

• C. The compensation and remuneration of employees is based on individual competence, contribution, and performance appraisal results, which shows positive relation to the Company’s overall performance. The compensation program includes base salary, bonus & profit sharing, and benefits. Base salary is determined by roles & responsibilities, current market salary standards and Company’s policy. Bonus & profit sharing are in relation to individuals’ contribution, achievements of departmental targets or the Company’s performance. Benefits are not intended to only meet regulations and requirements but also designed to meet individuals’ needs and for mutual good of all employees.

～ 79 ～