Alltek Technology Corp. and Subsidiaries

Consolidated Financial Statements for the
Years Ended December 31, 2025 and 2024 and
Independent Auditors’ Report

Deloitte.

勤業眾信

勤業眾信聯合會針師事務所

110421 台北市信義區松仁路100號20樓

Deloitte & Touche

20F, Taipei Nan Shan Plaza

No. 100, Songren Rd.,

Xinyi Dist., Taipei 110421, Taiwan

Tel: +886 (2) 2725-9988

Fax: +886 (2) 4051-6888

www.deloitte.com.tw

INDEPENDENT AUDITORS' REPORT

The Board of Directors and Shareholders
Alltek Technology Corp.

Opinion

We have audited the accompanying consolidated financial statements of Alltek Technology Corp. and its subsidiaries (collectively referred to as the “Group”), which comprise the consolidated balance sheets as of December 31, 2025 and 2024, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the consolidated financial statements, including material accounting policy information (collectively referred to as the “consolidated financial statements”).

In our opinion, based on our audits and the report of other auditors (refer to the Other Matter paragraph), the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission (FSC) of the Republic of China.

Basis for Opinion

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

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended December 31, 2025. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

The key audit matter of the Group’s consolidated financial statements for the year ended December 31, 2025 is stated as follows:

Recognition of Sales Revenue

The Group’s major source of revenue comes from the trading of semiconductor components. Due to the large volume of sales transactions from semiconductor components, the amount of revenue is material to the Group’s consolidated revenue and profit. There is a risk that revenue generated from specific sales clients may not occur; therefore, we identified the recognition of sales revenue as a key audit matter. Refer to Note 20 to the consolidated financial statements.

Our audit procedures performed in respect of the assessment of sales revenue included the following:

We obtained an understanding of the design and implementation and tested the operating effectiveness of internal controls over sales revenue.
We selected samples and performed tests of details for documents related to revenue derived from specific customers, including sales orders, shipping documents and customs export declarations, and we checked for any significant differences in collection status. We verified that revenue was recognized upon completion of the performance obligation and confirmed that recorded transactions have actually occurred.
We inspected the subsidiary ledger and confirmed the significant sales returns and discounts, and we verified and confirmed the actual occurrence of the annual sales transactions.

Inventory Valuation and Allowance Risk

The balance of The Group’s inventory is considered to be material to the total assets of the Group, and the specific semiconductor components are exposed to unsalable stock or obsolescence due to new developments in technological product demand, thus, such inventory may not be sold and the net realizable value of inventory may be lower than the carrying amount.

The management’s assessment of the net realised value of inventories in accordance with the requirements of IAS on inventories involves significant judgments, and the amount of inventories is material to the overall financial statements, the valuation of inventories as one of key audit matters.

Refer to Note 10 to financial statements.

Our audit procedures performed in respect of the assessment of inventory included the following:

We obtained an understanding of the provision policy for the evaluation of inventory allowances, and assessed the appropriateness of adopt of the Group’s inventory provisioning policy in the financial statements.
We obtained the statement for net realizable value of the inventory at the end of the period, and selected sample items of the data sources such as the selling price of the goods used in the net realizable value and the supporting evaluation documents for recalculation, thus, to confirm that the inventory was valued at lower of cost or net realizable value.

We compared the provision rate of inventory allowance between the current period and the latest year, and review the inventory turnover days in each period to evaluate the adequacy of the inventory provision for obsoleted and damage loss.

Other Matter

We have also audited the parent company only financial statements of Alltek Technology Corp. as of and for the year ended December 31, 2025 and 2024 on which we have issued an unmodified opinion.

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

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

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

Those charged with governance, including supervisors, are responsible for overseeing the Group’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

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

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

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

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

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the year ended December 31, 2025 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audits resulting in this independent auditors’ report are Liu Ming-Hsien and Chiu Meng-Chieh.

Ming-Hsien Liu Meng-Chieh, Chiu

Deloitte & Touche
Taipei, Taiwan
Republic of China

March 12, 2026

Notice to Readers

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

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

ALLTEK TECHNOLOGY CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	2025		2024
ASSETS	Amount	%	Amount	%
CURRENT ASSETS
Cash and cash equivalents (Notes 4 and 6)	$ 2,831,935	17	$ 749,056	4
Financial assets at fair value through profit or loss - current (Note 7)	18,025	-	48,700	-
Financial assets at amortized cost - current (Notes 8 and 28)	17,000	-	15,429	-
Notes receivable, net (Notes 4 and 9)	44,505	-	10,498	-
Trade receivables, net (Notes 4, 9, 27 and 28)	9,031,109	52	6,942,073	39
Other receivables (Notes 4, 9 and 28)	328,742	2	1,092,420	6
Inventories (Notes 4, 5 and 10)	2,971,309	17	7,036,956	39
Other current assets	88,449	1	70,256	1
Total current assets	15,331,074	89	15,965,388	89
NON-CURRENT ASSETS
Financial assets at fair value through profit or loss - non-current (Note 7)	108,613	1	97,977	-
Investments accounted for using the equity method (Notes 4 and 12)	521,165	3	512,238	3
Property, plant and equipment (Notes 4, 13 and 29)	1,065,903	6	1,048,983	6
Right-of-use assets (Notes 4 and 14)	69,922	-	105,009	1
Intangible assets (Note 4)	2,634	-	857	-
Deferred tax assets (Notes 4 and 22)	124,025	1	118,455	1
Other non-current assets	37,727	-	64,930	-
Total non-current assets	1,929,989	11	1,948,449	11
TOTAL	$ 17,261,063	100	$ 17,913,837	100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term borrowings (Notes 15 and 29)	$ 2,742,005	16	$ 2,685,093	15
Short-term bills payable (Note 15)	2,150,000	13	1,770,000	10
Contract liabilities (Note 20)	519,615	3	301,652	2
Notes payable, net	7,382	-	4,063	-
Trade payables, net (Note 28)	4,237,466	25	3,696,366	21
Other payables (Notes 17 and 28)	528,886	3	458,833	3
Current tax liabilities (Notes 4 and 22)	196,395	1	150,742	1
Lease liabilities - current (Notes 4 and 14)	44,399	-	56,594	-
Current portion of long-term borrowings and bonds payable (Notes 4, 15, 16 and 28)	29,641	-	252,948	1
Other current liabilities (Note 17)	181,767	1	204,508	1
Total current liabilities	10,637,556	62	9,580,799	54
NON-CURRENT LIABILITIES
Long-term borrowings (Notes 15 and 29)	456,720	3	2,297,384	13
Deferred tax liabilities (Notes 4 and 22)	614,783	3	505,817	3
Lease liabilities - non-current (Notes 4 and 14)	28,709	-	51,054	-
Net defined benefit liabilities - non-current (Notes 4 and 18)	16,929	-	16,847	-
Other non-current liabilities	2,897	-	4,832	-
Total non-current liabilities	1,120,038	6	2,875,934	16
Total liabilities	11,757,594	68	12,456,733	70
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY
Share capital
Ordinary shares	2,353,912	14	2,330,449	13
Capital surplus	864,915	5	857,990	5
Retained earnings
Legal reserve	710,552	4	639,978	4
Unappropriated earnings	1,240,068	7	1,141,751	6
Total retained earnings	1,950,620	11	1,781,729	10
Other equity
Exchange differences on translating the financial statements of foreign operations	130,198	1	259,189	1
Unrealized gains or losses on investments at fair value through other comprehensive income	(10,004)	-	(10,004)	-
Total other equity	120,194	1	249,185	1
Total equity attributable to owners of the Company	5,289,641	31	5,219,353	29
NON-CONTROLLING INTERESTS	213,828	1	237,751	1
Total equity (Note 19)	5,503,469	32	5,457,104	30
TOTAL	$ 17,261,063	100	$ 17,913,837	100

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

ALLTEK TECHNOLOGY CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

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

	2025		2024
	Amount	%	Amount	%
OPERATING REVENUE (Notes 4, 20 and 28)	$ 47,383,106	100	$ 45,892,739	100
OPERATING COSTS (Notes 10, 21 and 28)	(44,897,732)	(95)	(43,591,161)	(95)
GROSS PROFIT	2,485,374	5	2,301,578	5
OPERATING EXPENSES (Notes 21 and 28)
Selling and marketing expenses	(557,835)	(1)	(464,080)	(1)
General and administrative expenses	(539,213)	(1)	(493,532)	(1)
Research and development expenses	(157,638)	(1)	(148,531)	(1)
Expected credit loss	(16,701)	-	(194)	-
Total operating expenses	(1,271,387)	(3)	(1,106,337)	(3)
PROFIT FROM OPERATIONS	1,213,987	2	1,195,241	2
NON-OPERATING INCOME AND EXPENSES
Interest income (Note 21)	85,375	-	15,842	-
Other income (Notes 21 and 28)	44,308	-	65,953	-
Other gains and losses (Note 21)	(178,857)	-	(1,123)	-
Finance costs (Notes 21 and 28)	(113,518)	-	(306,501)	-
Share of profit or loss of associates (Note 12)	48,840	-	53,881	-
Total non-operating income and expenses	(113,852)	-	(171,948)	-
PROFIT BEFORE INCOME TAX FROM CONTINUING OPERATIONS	1,100,135	2	1,023,293	2
INCOME TAX EXPENSE (Notes 4 and 22)	(394,199)	(1)	(261,228)	-
NET PROFIT FOR THE YEAR	705,936	1	762,065	2
OTHER COMPREHENSIVE INCOME
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit plans	(1,621)	-	4,046	-
Unrealized gains or losses on investments in equity instruments at fair value through other comprehensive loss	-	-	(5,004)	-
Income tax relating to items that will not be reclassified subsequently to profit or loss	329	-	(794)	-
	(1,292)	-	(1,752)	-
				(Continued)

ALLTEK TECHNOLOGY CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

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

	2025		2024
	Amount	%	Amount	%
Items that may be reclassified subsequently to loss:
Exchange differences on translating the financial statements of foreign operations	$ (159,804)	-	$ 230,728	-
Share of the other comprehensive income of associates accounted for using the equity method	(3,851)	-	3,823	-
Income tax relating to items that may be reclassified subsequently to profit or loss	34,664	-	(49,312)	-
	(128,991)	-	185,239	-
Other comprehensive income for the year, net of income tax	(130,283)	-	183,487	-
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	$ 575,653	1	$ 945,552	2
NET PROFIT ATTRIBUTABLE TO:
Owners of the Company	$ 708,247	1	$ 702,528	2
Non-controlling interests	(2,311)	-	59,537	-
	$ 705,936	1	$ 762,065	2
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Owners of the Company	$ 577,951	1	$ 885,979	2
Non-controlling interests	(2,298)	-	59,573	-
	$ 575,653	1	$ 945,552	2
EARNINGS PER SHARE (Note 23)
Basic	$ 3.02		$ 3.02
Diluted	$ 2.99		$ 2.96

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

(Concluded)

ALLTEK TECHNOLOGY CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	Equity Attributable to Owners of the Company
	Share Capital	Capital Surplus (Note 19)	Retained Earnings		Exchange Differences on Translating the Financial Statements of Foreign Operations	Unrealized Valuation Gain or Loss on Financial Assets at Fair Value Through Other Comprehensive Income	Total	Non-controlling Interests	Total Equity
			Legal Reserve	Unappropriated Earnings
BALANCE ON JANUARY 1, 2024	$ 2,322,643	$ 856,732	$ 580,405	$ 960,208	$ 73,950	$ (5,000)	$ 4,788,938	$ 186,731	$ 4,975,669
Appropriation of 2023 earnings
Legal reserve	-	-	59,573	(59,573)	-	-	-	-	-
Cash dividends distributed by the Company	-	-	-	(464,628)	-	-	(464,628)	-	(464,628)
Changes in equity of associates accounted for using equity method	-	8,663	-	-	-	-	8,663	-	8,663
Cash dividends from capital surplus	-	(23,231)	-	-	-	-	(23,231)	-	(23,231)
Convertible bonds converted to ordinary shares	7,806	14,279	-	-	-	-	22,085	-	22,085
Cash dividends to shareholders of subsidiaries	-	-	-	-	-	-	-	(12,687)	(12,687)
Net profit (loss) for the year ended December 31, 2024	-	-	-	702,528	-	-	702,528	59,537	762,065
Other comprehensive income for the year ended December 31, 2024, net of income tax	-	-	-	3,216	185,239	(5,004)	183,451	36	183,487
Total comprehensive income (loss) for the year ended December 31, 2024	-	-	-	705,744	185,239	(5,004)	885,979	59,573	945,552
Changes in percentage of ownership interests in subsidiaries	-	1,547	-	-	-	-	1,547	(1,547)	-
Subsidiaries issuance of common stock from compensation to employees (Note 20)	-	-	-	-	-	-	-	5,681	5,681
BALANCE ON DECEMBER 31, 2024	2,330,449	857,990	639,978	1,141,751	259,189	(10,004)	5,219,353	237,751	5,457,104
Appropriation of 2024 earnings
Legal reserve	-	-	70,574	(70,574)	-	-	-	-	-
Cash dividends distributed by the Company	-	-	-	(538,051)	-	-	(538,051)	-	(538,051)
Cash dividends from capital surplus	-	(46,787)	-	-	-	-	(46,787)	-	(46,787)
Convertible bonds converted to ordinary shares	23,463	49,090	-	-	-	-	72,553	-	72,553
Cash dividends to shareholders of subsidiaries	-	-	-	-	-	-	-	(29,413)	(29,413)
Share-based compensation of subsidiaries	-	-	-	-	-	-	-	12,410	12,410
Net profit for the year ended December 31, 2025	-	-	-	708,247	-	-	708,247	(2,311)	705,936
Other comprehensive income (loss) for the year ended December 31, 2025, net of income tax	-	-	-	(1,305)	(128,991)	-	(130,296)	13	(130,283)
Total comprehensive income (loss) for the year ended December 31, 2025	-	-	-	706,942	(128,991)	-	577,951	(2,298)	575,653
Changes in percentage of ownership interests in subsidiaries	-	4,622	-	-	-	-	4,622	(4,622)	-
BALANCE ON DECEMBER 31, 2025	$ 2,353,912	$ 864,915	$ 710,552	$ 1,240,068	$ 130,198	$ (10,004)	$ 5,289,641	$ 213,828	$ 5,503,469

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

ALLTEK TECHNOLOGY CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax	$ 1,100,135	$ 1,023,293
Adjustments for:
Depreciation expense	89,856	87,500
Amortization	396	889
Impairment profit or loss recognized on trade receivables	16,701	194
Net gain on fair value changes of financial assets and liabilities as at fair value through profit or loss	10,096	(22,921)
Finance costs	113,518	306,501
Interest income	(85,375)	(15,842)
Share-based compensation	12,410	1,034
Dividend income	(725)	(875)
Share of profit of associates	(48,840)	(53,881)
Gain on disposal of property, plant and equipment	(65)	(70)
Loss on disposal and write-down of inventories	53,014	2,522
Net (gain) loss on foreign currency exchange	(81,746)	18,870
Other gains and losses	(80)	3,232
Changes in operating assets and liabilities
Notes receivable	(34,007)	(7,565)
Trade receivables	(2,042,501)	(3,286,204)
Other receivables	762,622	1,989,981
Inventories	4,059,008	2,716,276
Other current assets	(18,059)	40,285
Financial assets at amortized cost - current	(1,697)	(3,433)
Contract liabilities	217,963	12,245
Notes payable	3,319	(9,464)
Trade payables	554,236	(1,522,524)
Other payables	71,701	12,635
Other current liabilities	(18,203)	(182,025)
Net defined benefit liabilities - non-current	(1,539)	(761)
Other non-current liabilities	(951)	1,902
Cash generated from operations	4,731,187	1,111,794
Interest received	85,375	15,842
Interest paid	(110,971)	(333,651)
Income tax paid	(216,067)	(229,846)
Net cash generated from operating activities	4,489,524	564,139
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of financial assets at fair value through profit or loss	(14,547)	(34,284)
Proceeds from sale of financial assets at fair value through profit or loss	24,490	8,140
Net cash outflow on acquisition of subsidiary	-	(911)
Payments for property, plant and equipment	(8,046)	(10,925)
Proceeds from disposal of property, plant and equipment	84	76
		(Continued)

ALLTEK TECHNOLOGY CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	2025	2024
Increase in refundable deposits	$ (6,013)	$ (2,434)
Payments for intangible assets	(2,173)	(137)
Increase in prepayments for equipment	-	(33,217)
Dividends received	36,787	28,826
Net cash generated from (used in) investing activities	30,582	(44,866)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term borrowings	17,181,491	29,117,131
Repayments of short-term borrowings	(17,091,780)	(29,881,477)
Proceeds from short-term bills payable	380,000	155,000
Proceeds from long-term borrowings	11,007	11,144,420
Repayments of long-term borrowings	(2,002,839)	(10,393,301)
Repayments of the principal portion of lease liabilities	(68,474)	(72,649)
Repayments of guarantee deposits received	(984)	(90,382)
Repayments of cash dividend	(584,838)	(487,859)
Change in non-controlling interests	-	5,681
Dividends paid to non-controlling interests	(29,413)	(13,721)
Net cash used in financing activities	(2,205,830)	(517,157)
EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH HELD IN FOREIGN CURRENCIES	(231,397)	301,561
NET INCREASE IN CASH	2,082,879	303,677
CASH AT THE BEGINNING OF THE YEAR	749,056	445,379
CASH AT THE END OF THE YEAR	$ 2,831,935	$ 749,056

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

11 -

ALLTEK TECHNOLOGY CORP. AND SUBSIDIARIES

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

1. GENERAL INFORMATION

Alltek Technology Corp. (the "Company") was incorporated in April 1991 as a company limited by shares under the Company Law of the Republic of China (ROC). The Company mainly business operations:

a. Telecommunications equipment, computer peripherals, and trading in electronic components and test equipment (other than licensing business).
b. Technology transfer of related products above.
c. Trading and import and export of radio equipment.
d. Import and export trade of related products.
e. Acting as the agent for the relevant products and tendering business of domestic and foreign manufacturers.

The Company's shares have been traded on Taipei Exchange, formerly known as the GreTai Securities Market since March 2004. In November 2008, the Company's shares have been listed on the Taiwan Stock Exchange (TWSE).

The functional currency of the Company is the New Taiwan dollar. The consolidated financial statements are presented in the New Taiwan dollar.

2. APPROVAL OF CONSOLIDATED FINANCIAL STATEMENTS

The accompanying consolidated financial statements were approved by the Company's board of directors on March 12, 2026.

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

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

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

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

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

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

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

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

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

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

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

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

To classify items of income and expenses presented in the statement of profit or loss into the operating, investing, financing, income taxes and discontinued operations categories, the Group shall assess whether it has specified main business activities of investing in particular types of assets and providing financing to customers.
The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.

Provides guidance to enhance the requirements of aggregation and disaggregation: The Group shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Group shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Group labels items as "other" only if it cannot find a more informative label.
Disclosures on Management-defined Performance Measures (MPMs): When in public communications outside financial statements and communicating to users of financial statements management's view of an aspect of the financial performance of the Group as a whole, the Group shall disclose related information about its MPMs in a single note to the financial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards and the income tax and non-controlling interests effects of related reconciliation items.

In addition, the following consequential amendments have been made to IAS 7 "Statement of Cash Flows":

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

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

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

a. Statement of compliance

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

b. Basis of preparation

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

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

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

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

3) Level 3 inputs are unobservable inputs for an asset or liability.

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

Current assets include:

1) Assets held primarily for the purpose of trading;

2) Assets expected to be realized within 12 months after the reporting period; and

3) Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

Current liabilities include:

1) Liabilities held primarily for the purpose of trading;

2) Liabilities due to be settled within 12 months after the reporting period, even if an agreement to refinance, or to reschedule payments, on a long-term basis is completed after the reporting period and before the consolidated financial statements are authorized for issue; and

3) Liabilities for which the Group does not have the substantial right at the end of the reporting period to defer settlement for at least 12 months after the reporting period.

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

d. Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company (i.e., its subsidiaries, including structured entities).

Income and expenses of subsidiaries acquired or disposed of during the period are included in the consolidated statement of comprehensive income from the effective dates of acquisitions up to the effective dates of disposals, as appropriate.

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those of the Group.

All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

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

The Group did not use the acquisition method to deal with the business combination under the reorganization but used the book-value method.

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See Note 11, Table 7 and Table 8 for detailed information on subsidiaries (including percentages of ownership and main businesses).

e. Foreign currencies

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

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

For the purpose of presenting consolidated financial statements, the financial statements of the Company and its foreign operations (including subsidiaries, associates, joint ventures and branches in other countries) that are prepared using functional currencies which are different from the currency of the Company are translated into the presentation currency, the New Taiwan dollar, as follows: Assets and liabilities are translated at the exchange rates prevailing at the end of the reporting period; and income and expense items are translated at the average exchange rates for the period. The resulting currency translation differences are recognized in other comprehensive income (attributed to the owners of the Company and non-controlling interests as appropriate).

f. Inventories

Inventories consist of raw materials, work in progress, finished goods and merchandise 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. The net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded at the weighted-average cost on the balance sheet date.

g. Investments in associates

An associate is an entity over which the Group has significant influence and that is not a subsidiary.

The Group uses the equity method to account for its investments in associates.

Under the equity method, investments in an associate are initially recognized at cost and adjusted thereafter to recognize the Group's share of the profit or loss and other comprehensive income of the associate. The Group also recognizes the changes in the Group's share of the equity of associates.

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

The entire carrying amount of an investment (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is not allocated to any asset, including goodwill, that forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

h. Property, plant and equipment

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

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Depreciation of property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each reporting period, with the effects of any changes in the estimates accounted for on a prospective basis.

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

i. Intangible assets

1) Intangible assets acquired separately

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 lives, residual values, and amortization methods are reviewed at the end of each reporting period, with the effect of any changes in the estimates accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are measured at cost less accumulated impairment loss.

2) Derecognition of intangible assets

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

j. Impairment of property, plant and equipment, right-of-use asset, intangible assets other than goodwill

At the end of each reporting period, the Group reviews the carrying amounts of its property, plant and equipment, right-of-use asset 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 Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to the smallest group of 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 in profit or loss.

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

k. Financial instruments

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

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

1) Financial assets

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

a) Measurement categories

Financial assets are classified into the following categories: Financial assets at FVTPL, financial assets at amortized cost.

i. Financial assets at FVTPL

Financial assets are classified as at FVTPL when such financial assets are mandatorily classified or designated 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 dividends, interest earned and remeasurement gains or losses on such financial assets are recognized in other gains or losses. Fair value is determined in the manner described in Note 27: Financial Instruments.

ii. Financial assets at amortized cost

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

i) The financial assets are 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 assets 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, including cash and cash equivalents, trade receivables at amortized cost, are measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

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

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

Debt instruments that meet the following conditions are subsequently measured at FVTOCI:

i) The debt instrument is held within a business model whose objective is achieved by both the collecting of contractual cash flows and the selling of such financial assets; and
ii) The contractual terms of the debt instrument give rise to specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Investments in debt instruments at FVTOCI are subsequently measured at fair value. Changes in the carrying amounts of these debt instruments relating to changes in foreign currency exchange rates, interest income calculated using the effective interest method and impairment losses or reversals are recognized in profit or loss. Other changes in the carrying amount of these debt instruments are recognized in other comprehensive income and will be reclassified to profit or loss when the investment is disposed of.

iv. Investments in equity instruments at FVTOCI

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

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

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

b) Impairment of financial assets and contract assets

The Group recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including trade receivables), as well as contract assets.

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

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

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

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. On derecognition of an investment in a debt instrument at FVTOCI, the difference between the asset’s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss which had been recognized in other comprehensive income is recognized in profit or loss. However, on derecognition of an investment in an equity instrument at FVTOCI, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss, and 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.

2) Equity instruments

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

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

3) Financial liabilities

a) Subsequent measurement

All financial liabilities are measured at amortized cost using the effective interest method.

b) Derecognition of financial liabilities

The difference between the carrying amount of a financial liability derecognized and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

4) Convertible bonds

The component parts of compound instruments (i.e., convertible bonds) issued by the Group 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.

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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 notes 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.

5) Derivative financial instruments

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 unless the derivative is designated and effective as a hedging instrument; in which event, the timing of the recognition in profit or loss depends on the nature of the hedging relationship. 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.

Derivatives embedded in hybrid contracts that contain financial asset hosts that is within the scope of IFRS 9 are not separated; instead, the classification is determined in accordance with the entire hybrid contract. Derivatives embedded in non-derivative host contracts that are not financial assets within the scope of IFRS 9 (e.g., financial liabilities) are treated as separate derivatives when they meet the definition of a derivative, their risks and characteristics are not closely related to those of the host contracts, and the host contracts are not measured at FVTPL.

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.

m. Revenue recognition

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

Revenue from the sale of goods

Revenue from the sale of goods. Sales of semiconductor components, ship automatic identification systems, and lighting equipment are recognized as revenue when the goods are delivered to the customer's specific location or the goods are shipped because it is the time when the customer has full discretion over the manner of distribution and price to sell the goods, has the primary responsibility for sales to future customers and bears the risks of obsolescence. Trade receivables or contract assets are recognized concurrently. Any amounts previously recognized as contract assets are reclassified to trade receivables when the remaining obligations are performed.

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Revenue from the rendering of services

Revenue from the rendering of services is derived from government contract projects for software and hardware support services or customized equipment construction. The consolidated company recognizes revenue progressively over time as services are rendered, in accordance with contractual agreements, or at the point when control of the goods is transferred to the customer. For certain projects, where incurred costs are directly related to the fulfillment of performance obligations, the company measures progress based on the ratio of actual costs incurred to the total estimated costs.

n. Leases

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

For a contract that contains a lease component and non-lease components, the Group allocates the consideration in the contract to each component on the basis of the relative stand-alone price and accounts for each component separately.

1) The Group as lessor

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

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

2) The Group as lessee

The Group recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for short-term leases and low-value asset leases accounted for by 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. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the consolidated balance sheets.

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

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

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term, a change in the amounts expected to be payable under a residual value guarantee, a change in the assessment of an option to purchase an underlying asset, or a change in future lease payments resulting from a change in an index or a rate used to determine those payments, the Group remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate line in the consolidated balance sheets.

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o. Government grants

Government grants are not recognized until there is reasonable assurance that the Group will comply with the conditions attached to them and that the grants will be received.

Government grants related to income are recognized in other income on a systematic basis over the periods in which the Group recognizes as expenses the related costs that the grants intend to compensate.

Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Group with no future related costs are recognized in profit or loss in the period in which they are received.

p. Employee benefits

1) Short-term employee benefits

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

2) Retirement benefits

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

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

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

q. Taxation

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

1) Current tax

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

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

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

2) Deferred tax

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

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

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are recognized only 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 such temporary differences 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 assets to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period and recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

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

The Group has applied the exception from the recognition and disclosure of deferred tax assets and liabilities relating to Pillar Two income taxes. Accordingly, the Group neither recognizes nor discloses information about deferred tax assets and liabilities related to Pillar Two income taxes.

3) Current and deferred taxes

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.

r. Share-based payment arrangements

Employee share options granted to employees

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

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

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5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

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

When the Group developing material accounting estimates, 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 revisions affect both current and future periods. The estimates and underlying assumptions are reviewed by the management on an ongoing basis.

Key Sources of Estimation Uncertainty

Write-down of inventories

The net realizable value of inventory is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. The estimation of net realizable value is based on current market conditions and the historical experience of selling products of a similar nature. Changes in market conditions may have a material impact on the estimation of net realizable value.

6. CASH AND CASH EQUIVALENTS

	December 31
	2025	2024
Cash on hand	$ 581	$ 608
Checking accounts and demand deposits	2,707,544	582,648
Cash equivalent (investments with original maturities of 3 months or less)
Time deposits	123,810	165,800
	$ 2,831,935	$ 749,056

The market rate intervals of cash in bank and bank overdrafts at the end of the reporting period were as follows:

	December 31
	2025	2024
Bank balance	0.001%-3.97%	0.001%-4.5%
Cash equivalent	0.65%-3.85%	0.08%-4.80%

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7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

	December 31
	2025	2024
Financial assets at FVTPL - current
Financial assets mandatorily classified as at FVTPL
Non-derivative financial assets
Domestic listed shares	$ 18,025	$ 48,700
Financial assets at FVTPL - non-current
Financial assets mandatorily classified as at FVTPL
Non-derivative financial assets
Foreign unlisted shares	$ 108,613	$ 97,977

8. FINANCIAL ASSETS AT AMORTIZED COST - CURRENT

	December 31
	2025	2024
Pledged bank deposits	$ 17,000	$ 15,429

Refer to Note 29 for information relating to other financial assets pledged as security.

9. NOTES RECEIVABLE, TRADE RECEIVABLES AND OTHER RECEIVABLES

	December 31
	2025	2024
Notes receivable
At amortized cost
Gross carrying amount	$ 44,505	$ 10,498
Less: Allowance for impairment loss	-	-
	$ 44,505	$ 10,498
Notes receivable - operating	$ 37,196	$ 10,498
Notes receivable - non-operating	7,309	-
	$ 44,505	$ 10,498
Trade receivables
At amortized cost
Gross carrying amount	$ 4,378,304	$ 3,987,920
Less: Allowance for impairment loss	(29,795)	(22,210)
	4,348,509	3,965,710
At FVTOCI	4,682,600	2,976,358
	$ 9,031,109	$ 6,942,068
		(Continued)

	December 31
	2025	2024
Trade receivables from related parties
At amortized cost
Gross carrying amount	$ -	$ 5
Less: Allowance for impairment loss	-	-
	$ -	$ 5
Other receivables
Factored trade receivables reclassified to other receivables (Note 27)	$ 312,453	$ 875,161
Purchases returns or allowances receivable	461	194,727
Business tax refund receivables	15,579	10,510
Others	249	12,022
	$ 328,742	$ 1,092,420
		(Concluded)

Trade Receivables

a. At amortized cost

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

The Group measures the loss allowance for trade receivables at an amount equal to lifetime ECLs. The expected credit losses on trade receivables are estimated using a provision matrix prepared by reference to the past default experience of the customer, the customer's current financial position, economic condition of the industry in which the customer operates, as well as the GDP forecasts and industry outlook. As the Group's historical credit loss experience does show significantly different loss patterns for different customer segments, the Group uses different provision matrixes based on customer segments by geographical region and determines the expected credit loss rate by reference to past due days of accounts receivable and regional economic conditions.

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

The following table details the loss allowance of trade receivables at amortized cost based on the Group's provision matrix.

December 31, 2025

	Not Past Due	1 to 120 Days	Over 121 Days	Total
Expected credit loss rate	0%-0.91%	0%-25.04%	0%-100%
Gross carrying amount	$ 3,895,281	$ 523,442	$ 4,086	$ 4,422,809
Loss allowance (Lifetime ECLs)	(20,212)	(7,830)	(1,753)	(29,795)
Amortized cost	$ 3,875,069	$ 515,612	$ 2,333	$ 4,393,014
December 31, 2024
	Not Past Due	1 to 120 Days	Over 121 Days	Total
Expected credit loss rate	0%-0.40%	0.06%-18.72%	0%-100%
Gross carrying amount	$ 3,614,702	$ 372,901	$ 10,820	$ 3,998,423
Loss allowance (Lifetime ECLs)	(10,003)	(1,688)	(10,519)	(22,210)
Amortized cost	$ 3,604,699	$ 371,213	$ 301	$ 3,976,213

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

	2025	2024
Balance on January 1	$ 22,210	$ 21,290
Add: Net remeasurement of loss allowance	16,701	194
Less: Amounts written off	(8,653)	-
Foreign exchange gains and losses	(463)	726
Balance on December 31	$ 29,795	$ 22,210

b. At FVTOCI

The Group will decide whether to sell these trade receivables to banks without recourse based on its level of working capital. These trade receivables are classified as at FVTOCI because they are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets.

The following table details the loss allowance of trade receivables at FVTOCI based on the Group's provision matrix.

December 31, 2025

	Not Past Due	1 to 120 Days	Over 121 Days	Total
Expected credit loss rate	0%	0%	100%
Gross carrying amount	$ 4,682,600	$ -	$ -	$ 4,682,600
Loss allowance (Lifetime ECLs)
Cost at FVTOCI	$ 4,682,600	$ -	$ -	$ 4,682,600

December 31, 2024

	Not Past Due	1 to 120 Days	Over 121 Days	Total
Expected credit loss rate	0%	0%	100%
Gross carrying amount	$ 2,976,358	$ -	$ -	$ 2,976,358
Loss allowance (Lifetime ECLs)	-	-	-	-
Cost at FVTOCI	$ 2,976,358	$ -	$ -	$ 2,976,358

10. INVENTORIES

	December 31
	2025	2024
Merchandise	$ 2,914,131	$ 6,972,131
Finished goods	10,137	10,794
Work in progress	22,540	19,199
Raw materials	24,501	34,832
	$ 2,971,309	$ 7,036,956

The nature of the cost of goods sold is as follows:

	For the Year Ended December 31
	2025	2024
Cost of inventories sold	$ 44,823,926	$ 43,584,270
Inventory write-downs and disposal	53,014	2,522
Others	20,792	4,369
	$ 44,897,732	$ 43,591,161

11. SUBSIDIARIES

a. Subsidiaries included in the consolidated financial statements

Investor	Investee	Nature of Activities	Proportion of Ownership		Remark
			December 31	2025
Alltek Technology Corp.	Pantek Technology Corp.	Selling and marketing of communication components	100%	100%
Alltek Technology Corp.	Alltek Marine Electronics Corp.	Designing and manufacturing of high quality AIS products	53%	53%
Alltek Technology Corp.	Alltek Group Corp.	Investments	100%	100%	Material subsidiary
Alltek Technology Corp.	Alltek Technology (H.K.) Limited	Selling and marketing of communication components	100%	100%	Material subsidiary
Alltek Technology Corp.	Alltek Technology (Singapore) Pte. Ltd.	Selling and marketing of communication components	100%	100%	(Note)
Alltek Technology Corp.	Alder Optomechanical Corp.	Manufacturing and selling lighting equipment	51%	51%
Alltek Group Corp.	All Plus Co., Ltd.	Selling and marketing of communication components	100%	100%	Material subsidiary
Alltek Group Corp.	All Pan Co., Ltd.	Investments	100%	100%
All Pan Co., Ltd.	YMY Co., Ltd.	Selling and marketing of communication components	100%	100%
Alltek Technology (H.K.) Limited	Alltek Technology (Shenzhen) Ltd.	Selling and marketing of communication components	100%	100%
Pantek Technology Corp.	Pantek Global Corp.	Selling and marketing of communication components	100%	100%
Pantek Global Corp.	Pantek Trade (Shenzhen) Co., Ltd.	Selling and marketing of communication components	100%	100%

Note: In September 2024, the Company acquired 60% ownership stock in Alltek Technology (Singapore) Pte. Ltd. for SGD300,000, increasing its shareholding from 40% to 100%. Alltek Technology (Singapore) Pte. Ltd. has transitioned from an associate to a subsidiary. For details regarding the acquisition of Alltek Technology (Singapore) Pte. Ltd., please refer to Note 24.

b. Subsidiaries excluded from the consolidated financial statements: None.

c. Details of subsidiaries that have material non-controlling interests: None.

12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

	December 31
	2025	2024
Investments in associates
Associates that are not individually material:
Yuban Technology Co., Ltd.	$ 376,846	$ 375,881
General Life Biotechnology Co., Ltd.	144,319	136,357
	$ 521,165	$ 512,238

Aggregate information of associates that are not individually material

For the Year Ended December 31

	2025	2024
The Group’s share of:
Net gain for the year	$ 48,840	$ 53,881
Gain fair value through other comprehensive income	(3,080)	3,059
Total comprehensive income for the year	$ 45,760	$ 56,940

In September 2021, the Group acquired and held 15% of the outstanding shares of Yuban Technology Co., Ltd. The Group and its subsidiary, Pentek Technology Corp., hold more than 20% of the total voting shares of the investee; therefore, the equity method is used for the evaluation of investment transactions. Under the agreement between the Group and Yuban Technology Co., Ltd., the Company shall not transfer, pledge, create any security rights or dispose of the aforementioned ordinary shares within 3 years from the acquisition date.

In September 2024, Alltek Technology (Singapore) Pte. Ltd. transitioned from an associate to a subsidiary included in the consolidated financial statements. Please refer to Note 24 for further details.

Associates are accounted for using the equity method.

PROPERTY, PLANT AND EQUIPMENT

	Freehold Land	Buildings	Machinery and Equipment	Office Equipment	Other Equipment	Unfinished Work and Equipment to Be Inspected	Total
Cent
Balance on January 1, 2024	$ 777,179	$ 320,902	$ 325,140	$ 48,124	$ 21,194	$ 8,623	$ 1,501,162
Acquisitions through business combinations	-	-	-	297	1,610	-	1,907
Additions	-	-	5,299	4,161	1,131	334	10,925
Disposals	-	-	(28,417)	(1,288)	(3,120)	-	(32,825)
Reclassifications	-	-	435	-	-	(435)	-
Effect of foreign currency exchange differences	-	-	-	761	296	-	1,057
Balance on December 31, 2024	$ 777,179	$ 320,902	$ 302,457	$ 52,055	$ 21,111	$ 8,522	$ 1,482,226
Accumulated depreciation
Balance on January 1, 2024	$ -	$ 85,793	$ 275,022	$ 38,985	$ 12,015	$ -	$ 411,815
Acquisitions through business combinations	-	-	-	251	1,610	-	1,861
Depreciation expense	-	6,183	5,246	3,839	2,797	-	18,065
Disposals	-	-	(28,394)	(1,282)	(3,046)	-	(32,722)
Reclassifications	-	-	-	-	-	-	-
Effect of foreign currency exchange differences	-	-	-	566	251	-	817
Balance on December 31, 2024	$ -	$ 91,976	$ 251,874	$ 42,359	$ 13,627	$ -	$ 399,836
Accumulated impairment
Balance on January 1, 2024	$ -	$ -	$ 32,974	$ 413	$ 117	$ -	$ 33,504
Disposals	-	-	(23)	-	(74)	-	(97)
Balance on December 31, 2024	$ -	$ -	$ 32,951	$ 413	$ 43	$ -	$ 33,407
Carrying amount on December 31, 2024	$ 777,179	$ 228,926	$ 17,632	$ 9,283	$ 7,441	$ 8,522	$ 1,048,983
Cent
Balance on January 1, 2025	$ 777,179	$ 320,902	$ 302,457	$ 52,055	$ 21,111	$ 8,522	$ 1,482,226
Additions	-	37,792	3,166	8,532	155	(8,383)	41,262
Disposals	-	-	(64,179)	(5,382)	(1,937)	-	(71,498)
Reclassifications	-	-	-	-	-	(139)	(139)
Effect of foreign currency exchange differences	-	-	5	(373)	(83)	-	(451)
Balance on December 31, 2025	$ 777,179	$ 358,694	$ 241,449	$ 54,832	$ 19,246	$ -	$ 1,451,400

(Continued)

32 -

	Freehold Land	Buildings	Machinery and Equipment	Office Equipment	Other Equipment	Unfinished Work and Equipment to Be Inspected	Total
Accumulated depreciation
Balance on January 1, 2025	$ -	$ 91,976	$ 251,874	$ 42,359	$ 13,627	$ -	$ 399,836
Additions	-	9,985	5,793	5,609	2,691	-	24,078
Disposals	-	-	(64,179)	(5,363)	(1,937)	-	(71,479)
Reclassifications	-	-	-	-	-	-	-
Effect of foreign currency exchange differences	-	-	-	(259)	(86)	-	(345)
Balance on December 31, 2025	$ -	$ 101,961	$ 193,488	$ 42,346	$ 14,295	$ -	$ 352,090
Accumulated impairment
Balance on January 1, 2025	$ -	$ -	$ 32,951	$ 413	$ 43	$ -	$ 33,407
Disposals	-	-	-	-	-	-	-
Balance on December 31, 2025	$ -	$ -	$ 32,951	$ 413	$ 43	$ -	$ 33,407
Carrying amount on December 31, 2025	$ 777,179	$ 256,733	$ 15,010	$ 12,073	$ 4,908	$ -	$ 1,065,903

(Concluded)

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

Building
Main buildings	50 years
Others	5-10 years
Machinery and equipment	2-10 years
Office equipment	1-10 years
Other equipment	2-5 years

Property, plant and equipment used by the Group and pledged as collateral for bank borrowings are set out in Note 29.

14. LEASE ARRANGEMENTS

a. Right-of-use assets

	December 31
	2025	2024
Carrying amount
Buildings	$ 53,855	$ 95,627
Transportation equipment	16,067	9,382
	$ 69,922	$ 105,009
	For the Year Ended December 31
	2025	2024
Additions to right-of-use assets	$ 36,301	$ 84,476
Depreciation charge for right-of-use assets
Buildings	$ 59,181	$ 64,158
Transportation equipment	6,597	5,277
	$ 65,778	$ 69,435

Except for recognized depreciation, the Group did not have significant sublease or impairment of right-of-use assets for the years ended December 31, 2025 and 2024.

b. Lease liabilities

	December 31
	2025	2024
Carrying amount
Current	$ 44,399	$ 56,594
Non-current	$ 28,709	$ 51,054
Range of discount rates for lease liabilities was as follows:
	December 31
	2025	2024
Buildings	1.20%-4.75%	1.20%-4.75%
Transportation equipment	1.20%-4.75%	1.20%-4.75%

15. BORROWINGS

a. Short-term borrowings

	December 31
	2025	2024
Secured borrowings (Note 29)
Bank loans*	$ 112,000	$ 88,000
Unsecured borrowings
Line of credit borrowings	2,630,005	2,597,093
	$ 2,742,005	$ 2,685,093
Interest rate interval	0.96%-5.05%	1.90%-6.18%

Part of the short-term borrowings of the Group for the years ended December 31, 2025 and 2024 have been jointly guaranteed by chairman of the board of the Company.

Part of the secured borrowings of the Group for the years end December 31, 2025 and 2024 have been jointly guaranteed by time deposits, property and plant.

b. Short-term bills payable

	December 31
	2025	2024
Commercial paper	$ 2,150,000	$ 1,770,000
Less: Unamortized discount on bills payable	-	-
	$ 2,150,000	$ 1,770,000
Interest rate interval	1.47%-1.75%	1.50%-2.08%

The commercial papers payable were not discounted because the effect was not material.

c. Long-term borrowings

	December 31
	2025	2024
Secured borrowings (Note 29)
Bank loans	$ 486,361	$ 1,993,112
Unsecured borrowings
Bank loans	-	484,851
	486,361	2,477,963
Less: Current portion	(29,641)	(180,579)
Long-term borrowings	$ 456,720	$ 2,297,384
Interest rate interval	2.00%-2.18%	2.00%-4.75%

Portion of the long-term borrowings of the Group for the years ended December 31, 2025 and 2024 have been jointly guaranteed by chairman of the Company.

1) The Company's subsidiaries provided freehold land and building as collateral for bank borrowings to fund its operating capital and fully repaid in July 2024. Additionally, in July 2024, it signed a long-term syndicated loan contract with the bank secured by its freehold land and building with a maturity date of July 2031.

2) The Group signed a long-term syndicated loan contract with the bank secured by the Company's freehold land and building to fund its operating capital. The terms of the syndicated credit agreement are as follows:

a) Credit period: Calculated from the date of first utilization (December 25, 2023) to the expiration date of 5 years.

b) Total credit line: US$155,000 thousand.

c) Loan item:

i. Syndicated loan A: Alltek Technology Corp. and Subsidiaries is borrower, the credit line is US$155,000 thousand or facility amount, and revolving credit.

ii. Syndicated loan B: Alltek Technology (H.K.) Limited is borrower, the credit line is US$62,000 thousand, and revolving credit.
iii. The credit balance of syndicated loan A and B, the total amount cannot exceed the syndicated loan agreement’s total credit line.

d) Commitments: During the period of the credit facility agreements, the consolidated financial statements compliance with the following financial ratios and covenants is required.

i. Current ratio: Not lower than 100%.
ii. Liability ratio: Not higher than 300%.
iii. Interest coverage ratio: Not lower than 2 times.
iv. Net tangible assets: Not lower than $1,500,000 thousand.

16. BONDS PAYABLE

	December 31
	2025	2024
Unsecured domestic bonds	$ -	$ 72,369
Less: Current portion	-	(72,369)
	$ -	$ -

In July 21, 2022, to repay the loan, the Group issued the 4th domestic unsecured convertible bonds with an aggregate principal amount of $600,000 thousand and a face value of $100 thousand per bond certificate. The issuance price is not lower than face value multiplied by 101%. Actual issuance amount was $606,289 thousand. At the end of third year from the bond issuance date, bondholders have the right to redeem the convertible bonds at face value plus interest compensation (the interest compensation is face value multiplied by 102.2669%, rate of return is 0.75%, at expiration date) in cash. The convertible bonds are managed by Fubon Securities Co., Ltd. as the trustee of the bondholders. The convertible bonds contain both liability and equity components. The equity component was presented in equity under the heading of capital surplus - option. The terms and conditions of the bonds are as follows:

a. Issuance date: July 21, 2022
b. Coupon rate: 0%
c. Issuance period: 3 years, and a circulation period from July 21, 2022 to July 21, 2025.
d. Redemption of the convertible bonds

At the end of second years from the bond issuance date (July 21, 2024), bondholders have the right to request the Group to redeem the convertible bonds at face value plus interest compensation (the interest compensation is face value multiplied by 101.5056%, rate of return is 0.75% at expiration date) in cash.

e. Redemption method

1) Conversion subject: Subject is ordinary shares of the Company. The rights and obligations of the new shares converted from the bonds are the same as the issued and outstanding ordinary shares.

2) Conversion period

From October 22, 2022 (3 months after the date of issuance) to July 21, 2025 (expiration date), each bond entitles the holder to convert it into ordinary shares through broker-dealer informing Taiwan Depository & Clearing Corporation to request the Company’s agent for stock affairs in accordance with the conditions of the issuance of the bonds except for (1) Period of suspension of transfer of ordinary shares according to the law; (2) Fifteen business days before the stop transfer date of issuance of bonus shares, the stop transfer date of the cash dividend or the stop transfer date of issuance of ordinary shares for cash subscription, and the rights distribution base date; (3) The capital reduction base date to the capital reduction of stocks one day before the trading day.

3) Conversion prices and the adjustments

The conversion price of the bonds is set based on the arithmetic mean of the business day’s closing share price multiplied by 102.03% premium rate before the effective date on July 1, 2022. As the Company distributed share dividends in the years ended 2024 and 2023, the conversion price was adjusted from NT$38.2 per share to NT$30 per share. As the Company’s stock was ex-dividend on August 9, 2024, the conversion price was adjusted from NT$30 per share to NT$28.3 per share.

The 4th domestic unsecured convertible bonds matured on July 21, 2025. All of which were fully converted before maturity in July 2025.

4) Partial split of convertible bond components

The convertible bonds contain both liability and equity components. The equity component was presented in equity under the heading of capital surplus - option. The effective interest rate of the liability component was 0.8947% per annum on initial recognition.

Liability component at January 1, 2024	$ 93,970
Interest charged at an effective interest rate	484
Convertible bonds converted into ordinary shares	(22,085)
Liability component at December 31, 2024	$ 72,369
Liability component at January 1, 2025	$ 72,369
Interest charged at an effective interest rate	184
Convertible bonds converted into ordinary shares	(72,553)
Liability component at December 31, 2025	$ -

OTHER LIABILITIES

	December 31
	2025	2024
Other payables
Salaries and bonus	$ 308,648	$ 266,034
Payable for annual leave	21,987	21,879
Payables for freight	15,219	14,173
Payable for interest	2,621	3,667
Others	180,411	153,080
	$ 528,886	$ 458,833
		(Continued)

37 -

	December 31
	2025	2024
Other liabilities
Refund liabilities	$ 121,559	$ 132,233
Receipts under custody	46,006	51,245
Others	14,202	21,030
	$ 181,767	$ 204,508
		(Concluded)

18. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

The Company and some domestic subsidiaries of the Group adopted a pension plan under the Labor Pension Act (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.

The employees of the Group's subsidiary in China are members of a state-managed retirement benefit plan operated by the government of China. The subsidiary is required to contribute a specified percentage of payroll costs to the retirement benefit scheme to fund the benefits. The only obligation of the Group with respect to the retirement benefit plan is to make the specified contributions.

b. Defined benefit plans

The defined benefit plan adopted by the Company and some domestic subsidiaries of the Group in accordance with the 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 six months before retirement. The Company and Pantek Technology Corp. of the Group contribute amounts equal to 2% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee's name. Before the end of each year, the Group assesses the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Group is required to fund the difference in one appropriation that should be made before the end of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (the "Bureau"); the Group has no right to influence the investment policy and strategy.

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

	December 31
	2025	2024
Present value of defined benefit obligation	$ 43,233	$ 39,236
Fair value of plan assets	(26,304)	(22,389)
Net defined benefit liability	$ 16,929	$ 16,847

Movements in net defined benefit liability were as follows:

	Present Value of the Defined Benefit Obligation	Fair Value of the Plan Assets	Net Defined Benefit Liability
Balance on January 1, 2024	$ 40,840	$ (19,186)	$ 21,654
Service cost
Current service cost	251	-	251
Net interest expense (income)	511	(246)	265
Recognized in profit or loss	762	(246)	516
Remeasurement
Return on plan assets	-	(1,600)	(1,600)
Actuarial loss - changes in financial assumptions	(746)	-	(746)
Actuarial loss - experience adjustments	(1,620)	(80)	(1,700)
Recognized in other comprehensive income	(2,366)	(1,680)	(4,046)
Contributions from the employer	-	(1,277)	(1,277)
Balance on December 31, 2024	$ 39,236	$ (22,389)	$ 16,847
Balance on January 1, 2025	$ 39,236	$ (22,389)	$ 16,847
Service cost
Current service cost	248	-	248
Net interest expense (income)	589	(355)	234
Recognized in profit or loss	837	(355)	482
Remeasurement
Return on plan assets	-	(1,469)	(1,469)
Actuarial loss - changes in financial assumptions	687	-	687
Actuarial loss - experience adjustments	2,473	(70)	2,473
Recognized in other comprehensive income	3,160	(1,539)	1,621
Contributions from the employer	-	(2,021)	(2,021)
Balance on December 31, 2025	$ 43,233	$ (26,304)	$ 16,929

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

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

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

3) 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:

	December 31
	2025	2024
Discount rate(s)	1.25%-1.50%	1.50%-1.80%
Expected rate(s) of salary increase	2.75%-3.00%	2.75%-3.00%

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

	December 31
	2025	2024
Discount rate(s)
0.25% increase	$ (685)	$ (721)
0.25% decrease	$ 708	$ 744
Expected rate(s) of salary increase
0.25% increase	$ 686	$ 723
0.25% decrease	$ (667)	$ (704)

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

	December 31
	2025	2024
The expected contributions to the plan for the next year	$ 1,812	$ 2,012
The average duration of the defined benefit obligation	6.4-21 years	7.4-22 years

19. EQUITY

a. Ordinary shares

	December 31
	2025	2024
Number of shares authorized (in thousands)	350,000	350,000
Shares authorized	$ 3,500,000	$ 3,500,000
Number of shares issued and fully paid (in thousands)	235,391	233,045
Shares issued	$ 2,353,912	$ 2,330,449

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

The 4th domestic unsecured convertible bonds had been converted into 2,346 thousand and 781 thousand ordinary shares in 2025 and 2024, respectively. The Company has completed the registration of changes on September 19, 2025.

b. Capital surplus

	December 31
	2025	2024
May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (1)
Issuance of ordinary shares	$ 843,553	$ 840,090
The difference between consideration received or paid and the carrying amount of the subsidiaries’ net assets during actual disposal or acquisition	3,884	3,884
May be used to offset a deficit only
Changes in percentage of ownership interests in subsidiaries (2)	6,962	2,340
Changes in equity of associates and joint ventures accounted for using the equity method	8,663	8,663
Others	1,853	1,853
May not be used for any purpose
Components of equity of convertible corporate bonds issued by the Company	-	1,160
	$ 864,915	$ 857,990

1) Such capital surplus may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Company’s capital surplus and once a year).

2) Such capital surplus arises from the effect of changes in ownership interest in a subsidiary resulted from equity transactions other than actual disposal or acquisition, or from changes in capital surplus of subsidiaries accounted for using the equity method.

c. Retained earnings and dividends policy

The shareholders of the Company held their regular meeting on June 17, 2025 and in that meeting, resolved the amendments to the Company’s Articles of Incorporation (the “Articles”). Under the dividend policy to the Company after the amendments, 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, and then any remaining profit together with any undistributed retained earnings shall be used by the Company’s board of directors as the basis for proposing a distribution plan, which should be resolved by the shareholders in their meeting for distribution of dividends and bonuses to shareholders. The aforementioned special reserve refers to the amount appropriated when there is a net deduction under other equity items during the current period. An equivalent amount shall be appropriated from the current period’s net profit plus any items recognized in retained earnings that are not part of the net profit. If this is insufficient, the shortfall shall be appropriated from prior period retained earnings. If the deduction pertains to accumulated other equity items from prior periods, an equivalent amount shall be appropriated from prior period retained earnings. If still insufficient, the shortfall shall be appropriated from the current period’s net profit plus any items recognized in retained earnings that are not part of the net profit. If all or part of the dividends, bonuses, legal reserve and capital surplus are to be paid in cash, the board of directors shall be authorized to make a special resolution and report to the shareholders in their meeting. For the policies on the distribution of compensation of employees and remuneration of directors after the amendment, refer to compensation of employees and remuneration of directors in Note 21(g).

The Company’s dividend policy takes into account factors such as operational needs and the interests of shareholders. Each year, the remaining balance of the current year’s net profit after offsetting accumulated losses, appropriating the legal reserve, and making or reversing special earnings reserves in accordance with legal requirements is used accordingly. When there is no cumulative loss, the Company shall set aside share dividends at no less than 50% of the net profit of the current year. The way to distribute dividends could be either through cash or shares, and cash dividends shall not be less than 30% of the total dividends.

The shareholders of the Company held their regular meeting on June 18, 2024 and in that meeting, resolved the amendments to the Company’s Articles of Incorporation (the “Articles”). Under the dividend policy to the Company after the amendments, 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, and the remainder shall constitute the distributable earnings for the current year. And then distributable earnings together with undistributed retained earnings at the beginning of the period, shall be used by the Company’s board of directors as the basis for proposing a distribution plan, which should be resolved by the shareholders in their meeting for distribution of dividends and bonuses to shareholders. If all or part of the dividends, bonuses, legal reserve and capital surplus are to be paid in cash, the board of directors shall be authorized to make a special resolution and report to the shareholders in their meeting. For the policies on the distribution of compensation of employees and remuneration of directors after the amendment, refer to compensation of employees and remuneration of directors in Note 21(g).

The Company’s dividend policy is designed to meet present and future development projects and takes into consideration the investment environment, funding requirements, international or domestic competitive conditions while simultaneously meeting shareholders’ interests. Each year, the Company shall set aside share dividends at no less than 50% of the distributable earnings for the current year. The way to distribute dividends could be either through cash or shares, and cash dividends shall not be less than 30% of the total dividends.

Under the dividend policy to the Company before the amendments, as resolved by the shareholders of the Company held their regular meeting on June 18, 2024, 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, and then any remaining profit together with any undistributed retained earnings shall be used by the Company’s board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for distribution of dividends and bonuses shareholders. If all or part of the dividends, bonuses, legal reserve and capital surplus are to be paid in cash, the board of directors shall be authorized to make a special resolution and report to the shareholders in their meeting.

An 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.

41 -

The appropriations of earnings for 2024 and 2023 approved in the shareholders' meetings on June 17, 2025 and June 18, 2024, respectively, were as follows:

	Appropriation of Earnings
	For the Year Ended December 31
	2024	2023
Legal reserve	$ 70,574	$ 59,573
Cash dividends	$ 538,051	$ 464,628
Cash dividends per share (NT$)	$ 2.3	$ 2.00

The shareholders' meeting resolved to distribute cash with capital surplus of $46,787 and $23,231 thousand on June 17, 2025 and June 18, 2024.

The appropriations of earnings for 2025 were proposed by the Company's board of directors on March 12, 2026. The appropriations and dividends per share were as follows:

	Appropriation of Earnings
	For the Year Ended December 31, 2025
Legal reserve	$ 70,694
Cash dividends	$ 470,782
Stock dividends	$ 117,696
Cash dividends per share (NT$)	$ 2
Stock dividends per share (NT$)	$ 0.5

The appropriations of earnings for 2025 will be resolved by the shareholder in their meeting to be held on June 12, 2026.

d. Non-controlling interests

	For the Year Ended December 31
	2025	2024
Balance on January 1	$ 237,751	$ 186,731
Cash dividends to shareholders of subsidiaries	(29,413)	(12,687)
Attributable to non-controlling interests:
Share of profit for the year	(2,311)	59,537
Other comprehensive income (loss) during the year	13	36
	(2,298)	59,573
Changes in percentage of ownership interests in subsidiaries	(4,622)	(1,547)
Capitalization of employee compensation by subsidiary	-	5,681
Share-based compensation by subsidiaries (Note 25)	12,410	-
Balance on December 31	$ 213,828	$ 233,751

The Group's percentage of ownership in Alltek Marine Electronics Corp. was reduced from 53.27% to 52.76% in June 2024.

Alltek Marine Electronics Corp. resolved to settle compensation paid to employees in shares, which increased the outstanding shares and decreased the Group's percentage of ownership in Alltek Marine Electronics Corp. The above transactions were accounted for as equity transactions since the Group did not cease to have control over these subsidiaries.

20. REVENUE RECOGNITION

	For the Year Ended December 31
	2025	2024
Revenue from contracts with customers
Revenue from sale of goods	$ 47,345,687	$ 45,877,508
Others	37,419	15,231
	$ 47,383,106	$ 45,892,739
	December 31
	2025	2024
Contract liabilities - current	$ 519,615	$ 301,652
Disaggregation of revenue
Refer to Note 32 for information about disaggregation of revenue.

21. NET PROFIT AND OTHER COMPREHENSIVE INCOME

Net profit was attributable to:

a. Interest income

	For the Year Ended December 31
	2025	2024
Bank deposits	$ 85,375	$ 15,842

b. Other income

	For the Year Ended December 31
	2025	2024
Government subsidiaries	$ 16,072	$ 10,656
Dividends - financial assets at FVTPL	725	875
Others	27,511	54,422
	$ 44,308	$ 65,953

c. Other gains and losses

	For the Year Ended December 31
	2025	2024
Net foreign exchange gains (losses)	$ (138,726)	$ 30,763
Bank charges	(22,207)	(42,964)
Fair value change of financial assets and financial liabilities
(Note 7)
Financial assets designated as at FVTPL	(10,096)	22,921
Gain on disposal of property, plant and equipment	65	70
Others	(7,893)	(11,913)
	$ (178,857)	$ (1,123)

d. Finance costs

	For the Year Ended December 31
	2025	2024
Interest on loans/convertible bonds	$ 110,109	$ 302,215
Interest on lease liabilities	3,409	4,286
	$ 113,518	$ 306,501

e. Depreciation and amortization

	For the Year Ended December 31
	2025	2024
An analysis of depreciation by function
Operating costs	$ 3,426	$ 3,511
Operating expenses	86,430	83,989
	$ 89,856	$ 87,500
An analysis of amortization by function
Operating expenses	$ 396	$ 889

f. Employee benefits expense

	For the Year Ended December 31
	2025	2024
Post-employment benefits
Defined contribution plans	$ 19,387	$ 19,092
Defined benefit plans (Note 18)	482	516
	19,869	19,608
Share-based compensation	12,410	1,034
Other employee benefits	840,215	724,795
Total employee benefits expense	$ 872,494	$ 745,437
		(Continued)

45 -

	For the Year Ended December 31
	2025	2024
An analysis of employee benefits expense by function
Operating costs	$ 31,267	$ 35,090
Operating expenses	841,227	710,347
	$ 872,494	$ 745,437
		(Concluded)

g. Compensation of employees and remuneration of directors and supervisors

The Company accrues employees' compensation and remuneration to directors and supervisors at the rates no less than 1% and no higher than 5%, respectively, of net profit before income tax, employees' compensation, and remuneration to directors and supervisors. The employees' compensation and remuneration to directors and supervisors for the years ended December 31, 2025 and 2024 which have been approved by the Company's board of directors on March 12, 2026 and 2025, respectively, were as follows:

Accrual rate	For the Year Ended December 31
	2025	2024
Employees' compensation	5.36%	5.11%
Remuneration to directors and supervisors	1.01%	1.12%
Amount	For the Year Ended December 31
	2025	2024
	Cash	Cash
Compensation of employees	$ 50,000	$ 47,000
Remuneration to directors and supervisors	9,440	10,279

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

There was no difference between the actual amounts of employees' compensation and remuneration to directors and supervisors paid and the amounts recognized in the consolidated financial statements for the years ended December 31, 2024 and 2023.

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

h. Gain or loss on foreign currency exchange

	For the Year Ended December 31
	2025	2024
Foreign exchange gains	$ 1,967,239	$ 1,715,349
Foreign exchange losses	(2,105,965)	(1,684,586)
	$ (138,726)	$ 30,763

46 -

22. INCOME TAXES

a. Major components of tax expense recognized in profit or loss

	For the Year Ended December 31
	2025	2024
Current tax
In respect of the current year	$ 256,484	$ 143,747
Income tax on unappropriated earnings	6,387	3,577
Adjustments for prior years	(7,061)	3,327
	255,810	150,651
Deferred tax
In respect of the current year	138,389	110,577
Income tax expense recognized in profit or loss	$ 394,199	$ 261,228

A reconciliation of accounting profit and income tax expenses is as follows:

	For the Year Ended December 31
	2025	2024
Profit before tax from continuing operations	$ 1,100,135	$ 1,023,293
Income tax expense calculated at the statutory rate	$ 220,027	$ 204,659
Nondeductible expenses in determining taxable income	536	2,930
Tax-exempt income	(9,322)	(26,400)
Effect of deferred tax of subsidiaries	127,811	105,589
Unrecognized loss carryforwards/deductible temporary differences	9,197	5,449
Income tax on unappropriated earnings	6,387	3,577
Adjustments for prior years’ tax	(7,061)	3,327
Effect of different tax rate of entities in the Group operating in other jurisdictions	46,624	(37,903)
Income tax expense recognized in profit or loss	$ 394,199	$ 261,228

The applicable tax rate used by subsidiaries in China is 25%. Tax rates used by other entities in the Group operating in other jurisdictions are based on the tax laws in those jurisdictions.

b. Income tax recognized in other comprehensive income

	For the Year Ended December 31
	2025	2024
Deferred tax
In respect of the current year
Exchange differences on translating the financial statements of foreign operations	$ (34,664)	$ 49,312
Remeasurement of defined benefit plans	(329)	794
Income tax recognized in other comprehensive income	$ (34,993)	$ 50,106

c. Deferred tax assets and liabilities

The movements of deferred tax assets and deferred tax liabilities were as follows:

For the year ended December 31, 2025

	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Closing Balance
Deferred tax assets
Temporary differences
Unrealized inventory loss	$ 89,766	$ (1,002)	$ -	$ 88,764
Defined benefit obligation	3,559	(302)	330	3,587
Others	25,130	6,544	-	31,674
	$ 118,455	$ 5,240	$ 330	$ 124,025
Deferred tax liabilities
Temporary differences
Unappropriated earnings of subsidiaries	$ 406,315	$ 128,701	$ -	$ 535,016
Unrealized foreign exchange gain	12,941	15,723	-	28,664
Others	86,561	(795)	(34,663)	51,103
	$ 505,817	$ 143,629	$ (34,663)	$ 614,783

For the year ended December 31, 2024

	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Closing Balance
Deferred tax assets
Temporary differences
Unrealized inventory loss	$ 59,332	$ 30,434	$ -	$ 89,766
Defined benefit obligation	4,500	(147)	(794)	3,559
Unrealized foreign exchange loss	28,516	(28,516)	-	-
Others	41,399	(16,269)	-	25,130
	$ 133,747	$ (14,498)	$ (794)	$ 118,455
				(Continued)

48 -

	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Closing Balance
Deferred tax liabilities
Temporary differences
Unappropriated earnings of subsidiaries	$ 321,603	$ 84,712	$ -	$ 406,315
Unrealized foreign exchange gain	-	12,941	-	12,941
Others	38,823	(1,574)	49,312	86,561
	$ 360,426	$ 96,079	$ 49,312	$ 505,817
				(Concluded)

d. Deductible temporary differences, unused loss carryforward have been recognized in the consolidated balance sheets

	December 31
Unused Amount	2025	2024
2027	$ 18,272	$ 18,272
2028	5,633	5,633
2029	155,563	155,563
2030	67,640	67,640
2031	67,600	67,600
2032	49,259	49,259
2033	24,395	24,395
2034	23,984	-
	$ 412,346	$ 388,362

e. Income tax assessments

The income tax returns through 2023 have been assessed by the tax authorities; the Company, its subsidiaries Alltek Marine Electronics Corp., Pantek Technology Corp. and Alder Optomechanical Corp. in Taiwan provided their income tax to be assessed by the tax authorities.

23. EARNINGS PER SHARE

	Unit: NT$ Per Share
	December 31
	2025	2024
Basic earnings per share
Basic earnings per share	$ 3.02	$ 3.02
Diluted earnings per share
Diluted earnings per share	$ 2.99	$ 2.96

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

Net Profit for the Year

	For the Year Ended December 31
	2025	2024
Earnings used in the computation of diluted earnings per share	$ 708,247	$ 702,528
Effect of potentially dilutive ordinary shares
Interest on convertible bonds (after tax)	-	387
Earnings used in the computation of diluted earnings per share	$ 708,247	$ 702,915

Weighted average number of ordinary shares outstanding (in thousands of shares):

	December 31
	2025	2024
Weighted average number of ordinary shares in computation of basic earnings per share	234,738	232,579
Effect of potentially dilutive ordinary shares:
Convertible bonds	-	2,920
Bonus to employees	1,821	1,598
Weighted average number of ordinary shares used in the computation of diluted earnings per share	236,559	237,097

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

24. BUSINESS COMBINATIONS

a. Subsidiaries acquired

Subsidiary	Principal Activity	Date of Acquisition	Proportion of Voting Equity Interests Acquired (%)	Consideration Transferred
Alltek Technology (Singapore) Pte. Ltd.	Selling and marketing of communication components	August 30, 2024	60	$ 7,359

The Group acquired Alltek Technology (Singapore) Pte. Ltd. due to industry strategic needs.

b. Assets acquired and liabilities assumed at the date of acquisition

	Alltek Technology (Singapore) Pte. Ltd.
Current assets
Cash	$ 6,448
Trade receivables, net	1,891
Inventories	8,804
Other current assets	5,812
Non-current assets
Property, plant and equipment	46
Refundable deposits	267
Current liabilities
Contract liabilities	(6,637)
Trade payables	(4,637)
Other payables	(1,002)
Non-current liabilities
Long-term borrowings	(6,013)
	$ 4,979
c. Goodwill recognized on acquisitions
	For the Year Ended December 31, 2024
Consideration transferred (60%)	$ 7,359
Fair value of equity investments held by the Company (40%)	1,992
Less: Fair value of identifiable net assets acquired	(4,979)
Goodwill recognized on acquisitions	$ 4,372
d. Net cash outflow on acquisition of subsidiaries
	Alltek Technology (Singapore) Pte. Ltd.
Consideration paid in cash	$ (7,359)
Less: Cash and cash equivalent acquired	6,448
	$ (911)

e. Impact of acquisitions on the results of the Group

The result of operations from the acquired company since the acquisition date were as follows:

	From the Acquisition Date to December 31
Operating revenue	$ 11,605
Net profit	$ (5,983)

If the business combination had completed at the beginning of the fiscal year to which the acquisition date belonged, the Group pro forma operating revenue and net profit were as follows:

	For the Year Ended December 31, 2024
Operating revenue	$ 45,915,688
Net profit	$ 759,466

The amounts cannot reflect the actual revenue and operating results the merged company would generate if the merger were completed at the beginning of the acquisition year, nor should they be used to forecast future operating results.

25. SHARE-BASED PAYMENT ARRANGEMENTS

Employee Share Option Plan of the Company

Qualified employees of the Company and its subsidiaries were granted 2,000 options in December 2024. Each option entitles the holder with the right to subscribe for one thousand ordinary shares of the Company. The total number of new ordinary shares to be issued due to the exercise of share options is 2,000 thousands shares. The recipients include employees of the Company, its domestic and foreign parent and subsidiary companies who meet specific conditions. The options granted are valid for 5 years and exercisable at certain percentages after the second anniversary from the grant date. The exercise price of the options shall not be lower than the net book value per share as reported in the most recent financial statements audited or reviewed by an accountant as of the declaration date. For any subsequent changes in the Company's ordinary shares, the exercise price is adjusted accordingly.

51 -

Information on employee share options was as follows:

	For the Year Ended December 31, 2025		For the Year Ended December 31, 2024
	Number of Options	Weighted-average Exercise Price ($)	Number of Options	Weighted-average Exercise Price ($)
Balance on January 1	1,700	$ 30	-	$ -
Options granted	-	-	1,700	30
Options exercised	-	-	-	-
Balance on December 31	1,700	30	1,700	30
Options exercisable, end of the year	-		-

Information on employee share options was as follows:

	December 31, 2025	December 31, 2024
Range of exercise price ($)	$30	$30
Weighted-average remaining contractual life (in years)	4 years	5 years

Options granted in December 2024 are priced using the Black-Scholes pricing model, and the inputs to the model are as follows:

	December 2024
Grant-date share price	$55.84
Exercise price	$30
Expected volatility	38.25%-39.89%
Expected life	5 years
Expected dividend yield	0%
Risk-free interest rate	1.48%-1.52%

26. CAPITAL MANAGEMENT

The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximizing the return to stakeholders through the optimization of the debt and equity balance.

The capital structure of the Group consists of net debt (borrowings offset by cash and cash equivalents) and equity of the Group (comprising issued capital, reserves, retained earnings, other equity and non-controlling interest).

The Group is subject to the requirements and restrictions on the current ratio, financial liability ratio and interest protection ratio of the loan agreements with the banks.

53 -

27. FINANCIAL INSTRUMENTS

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

	December 31
	2025		2024
	Carrying Amount	Fair Value	Carrying Amount	Fair Value
Financial liabilities
Financial liabilities at amortized cost
Convertible bonds	$ -	$ -	$ 72,369	$ 99,600

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

1) Fair value hierarchy

December 31, 2025

	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Non-derivative instruments
Domestic listed shares	$ 18,025	$ -	$ -	$ 18,025
Foreign unlisted shares	-	-	108,613	108,613
	$ 18,025	$ -	$ 108,613	$ 126,638
Financial assets at FVTOCI
Investments in debt instruments
Trade receivables	$ -	$ -	$ 4,682,600	$ 4,682,600
December 31, 2024
	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Non-derivative instruments
Domestic listed shares	$ 48,700	$ -	$ -	$ 48,700
Foreign unlisted shares	-	-	97,977	97,977
	$ 48,700	$ -	$ 97,977	$ 146,677
Financial assets at FVTOCI
Investments in debt instruments
Trade receivables	$ -	$ -	$ 2,976,358	$ 2,976,358

There were no transfers between Levels 1 and 2 in the current and prior periods.

2) Reconciliation of Level 3 fair value measurements of financial instruments

For the year ended December 31, 2025

Financial Assets	Instruments at FVTPL	Instruments at FVTOCI	Total
	Non-derivative Instruments	Equity Instruments
Balance on the beginning of the year	$ 97,977	$ 2,976,358	$ 3,074,335
Purchases	14,547	-	14,547
Recognized in profit or loss	(3,911)	-	(3,911)
Net changes in trade receivables	-	1,706,242	1,706,242
Balance on the end of the year	$ 108,613	$ 4,682,600	$ 4,791,213

For the year ended December 31, 2024

Financial Assets	Instruments at FVTPL	Instruments at FVTOCI	Total
	Non-derivative Instruments	Equity Instruments
Balance on the beginning of the year	$ 90,373	$ 30,035	$ 120,408
Purchases	8,693	-	8,693
Recognized in profit or loss	(1,089)	-	(1,089)
Recognized in other comprehensive income	-	(5,004)	(5,004)
Net changes in trade receivables	-	2,951,327	2,951,327
Balance on the end of the year	$ 97,977	$ 2,976,358	$ 3,074,335

3) Valuation techniques and inputs applied for Level 3 fair value measurement

Foreign unlisted shares were determined using the market approach. The comparable company method of market approach is based on the profitability at the end of the year to select the market multiplier of comparable companies. The redemption right of convertible corporate bonds was evaluated according to the binary tree model. The valuation method is chosen by the Group after careful evaluation. Therefore, the fair value measurement is reasonable. However, the use of different evaluation models or fair value may lead to different evaluation results.

c. Categories of financial instruments

	December 31
	2025	2024
Financial assets
Financial assets at amortized cost (Note 1)	$ 7,555,112	$ 5,822,608
Financial assets at FVTPL
Mandatorily classified as at FVTPL - current	18,025	48,700
Mandatorily classified as at FVTPL - non-current	108,613	97,977
Financial assets at FVTOCI
Debt investments	4,682,600	2,976,358
		(Continued)

December 31

2025

2024

Financial liabilities

Amortized cost (Note 2)

$ 9,821,465 $ 10,876,774

(Concluded)

Note 1: The balances include financial assets at amortized cost, which comprise cash and cash equivalents, financial assets at amortized cost, trade receivables and other receivables.

Note 2: The balances include financial liabilities measured at amortized cost, which comprise short-term loans, short-term bills payable, trade payables, other payables, bonds payable, current portion of long-term borrowings and long-term borrowings.

d. Financial risk management objectives and policies

The Group's major financial instruments include equity investment, trade receivables, trade payables, bonds payable, borrowings and short-term bills payable. The Group's corporate treasury function provides services to the business, coordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Group through internal risk reports which analyze exposures by degree and magnitude of risks. These risks are market risk (including currency risk, interest rate risk), credit risk and liquidity risk.

1) Market risk

The Group's activities exposed it primarily to the financial risks of changes in foreign currency exchange rates (refer to (a) below) and interest rates (refer to (b) below).

a) Foreign currency risk

Several subsidiaries of the Group had foreign currency sales and purchases, which exposed the Group to foreign currency risk.

The carrying amounts of the Group's foreign currency denominated monetary assets and monetary liabilities and of the derivatives exposing to foreign currency risk at the end of the reporting period are set out in Note 30.

Sensitivity analysis

The Group was mainly exposed to the U.S. dollar.

The following table details the Group's sensitivity to a 3% increase and decrease in the New Taiwan dollar (the functional currency) against the U.S. dollar. Sensitivity rate of 3% is used when reporting foreign currency risk internally to key management personnel and represents management's assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis included only outstanding foreign currency denominated monetary items designated as cash flow hedges, and adjusts their translation at the end of the reporting period for a 3% change in foreign currency rates. A positive number below indicates an increase in pre-tax profit and other equity associated with the New Taiwan dollar strengthen 3% against the relevant currency. For a 3% weakening of the New Taiwan dollar against the relevant currency, there would be an equal and opposite impact on pre-tax profit and other equity and the balances below would be negative.

U.S. Dollars Impact
For the Year Ended December 31
2025	2024
Profit or loss	$ 81,270

b) Interest rate risk

The Group was exposed to interest rate risk because entities in the Group borrowed funds at both fixed and floating interest rates. The risk is managed by the Group by maintaining an appropriate mix of fixed and floating rate borrowings, and using interest rate swap contracts and forward interest rate contracts. Hedging activities are evaluated regularly to align with interest rate views and defined risk appetite, ensuring the most cost-effective hedging strategies are applied.

The carrying amount of the Group's financial assets and financial liabilities with exposure to interest rates at the end of the reporting period were as follows:

	December 31
	2025	2024
Fair value interest rate risk
Financial assets	$ 140,811	$ 165,800
Financial liabilities	4,809,683	5,869,405
Cash flow interest rate risk
Financial assets	2,707,421	597,972
Financial liabilities	641,791	1,243,668

Sensitivity analysis

The sensitivity analyses below were determined based on the Group's exposure to interest rates for both derivatives and non-derivative instruments at the end of the reporting period. For floating rate liabilities, the analysis was prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 20 basis point increase or decrease was used when reporting interest rate risk internally to key management personnel and represents management's assessment of the reasonably possible change in interest rates.

If interest rates had been 20 basis points higher/lower and all other variables were held constant, the Group's pre-tax profit for the years ended December 31, 2025 and 2024 would have (decreased) increased by $4,131 thousand and $(1,291) thousand, respectively.

c) Other price risk

The Group was exposed to equity price risk through its investments in equity securities. Equity investments are held for strategic rather than for trading purposes, the Group does not actively trade these investments. The Group manages this exposure by maintaining a portfolio of investments with different risks. In addition, the Group has appointed a special team to monitor the price risk and will consider hedging the risk exposure should the need arise.

Sensitivity analysis

If equity prices had been 3% higher/lower, pre-tax profit for the years ended December 31, 2025 and 2024 would have increased by $3,799 thousand and $4,400 thousand, respectively.

2) Credit risk

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

In addition, the credit risk was limited because the counterparty of working capital and derivative financial instruments were banks with good credit.

The customers of trade receivables were scattered in different geographical areas. The Group continuously evaluated the financial condition of the customers of trade receivables. The concentration of credit risk by geographical location was mainly in Taiwan and China.

3) Liquidity risk

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

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

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

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

To the extent that interest flows are floating rate, the undiscounted amount was derived from the interest rate curve at the end of the reporting period.

57 -

December 31, 2025

	On Demand or Less than 1 Month	1-3 Months	3 Months to 1 Year	1+ Years
Non-derivative financial liabilities
Non-interest bearing	$ 2,993,825	$ 1,585,198	$ 192,518	$ 2,193
Lease liabilities	5,086	10,121	34,058	29,419
Debt instruments	2,934,685	851,843	1,162,616	529,337
	$ 5,933,596	$ 2,447,162	$ 1,389,192	$ 560,949

Additional information on the maturity analysis for lease liabilities:

		Less than 1 Year	1-5 Years
Lease liabilities		$ 49,265	$ 29,419

December 31, 2024

	On Demand or Less than 1 Month	1-3 Months	3 Months to 1 Year	1+ Years
Non-derivative financial liabilities
Non-interest bearing	$ 2,213,679	$ 1,654,761	$ 286,128	$ 4,694
Lease liabilities	5,365	10,682	42,940	53,743
Debt instruments	2,563,869	1,153,547	968,221	2,396,768
	$ 4,782,913	$ 2,818,990	$ 1,279,289	$ 2,455,205

Additional information on the maturity analysis for lease liabilities:

	Less than 1 Year	1-5 Years
Lease liabilities	$ 58,987	$ 53,743

b) Financing facilities

	December 31
	2025	2024
Secured borrowing
Amount used	$ 2,548,361	$ 3,092,361
Amount unused	3,490,242	3,446,224
	$ 6,038,603	$ 6,538,585
Unsecured borrowing
Amount used	$ 2,888,005	$ 3,911,943
Amount unused	4,699,694	4,906,145
	$ 7,587,699	$ 8,818,088

e. Transfers of financial assets

Factored trade receivables for the years ended December 31, 2025 and 2024 were as follows:

Counterparties	Receivables Sold	Amounts Reclassified to Other Receivables (Note 9)	Amounts Not Yet Advanced	Advances Received at Year-end
2025
Alltek Technology Corp.
Financial Institutions	US$ 16,083	US$ 9,941	US$ 8,344	US$ 6,142
2024
Alltek Technology Corp.
Financial Institutions	US$ 59,415	US$ 26,693	US$ 16,989	US$ 32,722

The above credit lines may be used on a revolving basis.

Pursuant to the Group’s factoring agreements, losses from commercial disputes were borne by the Group, while losses from credit risk were borne by the banks.

As of December 31, 2025 and 2024, the interest rates on advances received were 1.97%-2.00% and 2.04%-5.29%, respectively.

As of December 31, 2025 and 2024, the credit line was US$237,295 thousand and US$424,278 thousand, respectively.

TRANSACTIONS WITH RELATED PARTIES

Balances and major transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note. Besides as disclosed elsewhere in the other notes, details of major transactions between the Group and other related parties are disclosed below.

a. Related party name and relationship

Related Party Name	Relationship
Hsu-huang development Co., Ltd.	Related party in substance
General Life Biotechnology Co., Ltd.	Associate
Alltek Technology (Singapore) Pte. Ltd.	Associate (a subsidiary since September 2024)
Yuban Technology Co., Ltd.	Associate
Bestsun International Co., Ltd.	Related party in substance
Netio technologies Co., Ltd.	Related party in substance (since July 2025 it is no longer related party.)

b. Sales

Line Item	Related Party Type	For the Year Ended December 31
		2025	2024
Sales	Associates	$ 20	$ 4,529

The selling price was made at cost plus a fixed profit for related parties. The collection terms were net 60 days from the end of the month for related parties and net 30 to 60 days from the end of the month for third parties.

c. Purchases of goods

Line Item	Related Party Type	For the Year Ended December 31
		2025	2024
Purchase	Associates	$ 19	$ 26
Purchase	Related party in substance	$ 23	$ -

There were no significant differences in purchases price and transaction terms between related parties and third parties.

d. Receivables from related parties

Line Item	Related Party Type	December 31
		2025	2024
Receivables	Associates	$ -	$ 5

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

e. Payables to related parties (not include loans from related parties)

Line Item	Related Party Type	December 31
		2025	2024
Other payable	Associates	$ 9	$ 4,125
Other payable	Related party in substance	$ -	$ 10

f. Lease arrangements

Type/Name of Related Party	For the Year Ended December 31
		2025	2024
Acquisition of right-to-use assets
Related party in substance
Hsu-huang Development Co., Ltd.		$ -	$ 10,082
		December 31
Item in the Accounts	Type/Name of Related Party	2025	2024
Lease liabilities	Related party in substance
Hsu-huang Development Co., Ltd.	$ -	$ 6,788

For the Year Ended December 31

Type/Name of Related Party

2025 2024

Interest expense

Related party in substance
Hsu-huang Development Co., Ltd.
$ 123 $ 184

The Group leased office and car park in May 2024, from related party Hsu-huang Development Co., Ltd. for a two-year term, starting from May 2024, which was based on the rental level of the adjacent office and car park and the contract was terminated early in October 2025.

g. Lease arrangements - Group is lessor

In January 2024, the Group leases out office to related party, Bestsun International Co., Ltd., under an operating lease with a lease term of 1 year, respectively, and the rental is based on adjacent office rental rates. As of December 31, 2024, the balance of operating lease receivables was $0 thousand; the gross lease payments to be received are $0 thousand, respectively. The amounts of lease income recognized for the years ended December 31, 2024 was $57 thousand. There were no such transactions in 2025.

h. Other transactions with related parties

	December 31
Type of Related Party	2025	2024	Nature of Transaction
Associates	$ -	$ 5,307	Prepayments for equipment
	For the Year Ended December 31
Type of Related Party	2025	2024	Nature of Transaction
Associates	$ 1,061	$ 450	Other income
Associates	$ 9	$ (38)	Other expense
Related party in substance	$ 1,689	$ 794	Other expense

i. Compensation of key management personnel

	For the Year Ended December 31
	2025	2024
Short-term employee benefits	$ 64,165	$ 68,136
Post-employment benefits	1,454	1,424
Share-Based payment arrangements	657	54
	$ 66,276	$ 69,614

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

62 -

29. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets were provided as collateral for bank borrowings and guarantee deposit:

	December 31
	2025	2024
Pledged bank deposits (recognized as financial assets at amortized cost - current)	$ 17,000	$ 15,429
Property and plant, net	1,033,912	1,006,105
	$ 1,050,912	$ 1,021,534

30. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The following information was aggregated by the foreign currencies other than functional currencies of the entities in the Group and the exchange rates between foreign currencies and respective functional currencies were disclosed. The significant assets and liabilities denominated in foreign currencies were as follows:

December 31, 2025

	Foreign Currency	Exchange Rate	Carrying Amount
Financial assets
Monetary items
USD	$ 243,273	31.43 (USD:NTD)	$ 7,646,065
EUR	99	36.90 (EUR:NTD)	3,677
Financial liabilities
Monetary items
USD	157,081	31.43 (USD:NTD)	4,937,058
December 31, 2024
	Foreign Currency	Exchange Rate	Carrying Amount
Financial assets
Monetary items
USD	$ 155,054	32.785 (USD:NTD)	$ 5,083,441
EUR	94	34.14 (EUR:NTD)	3,200
Financial liabilities
Monetary items
USD	87,322	32.785 (USD:NTD)	2,862,839

The above following was aggregated by the functional currencies of the entities in the Group, and the exchange rates between the respective functional currencies and the presentation currency were disclosed.

The significant realized and unrealized foreign exchange gains (losses) were as follows:

	For the Year Ended December 31
	2025		2024
Foreign Currency	Exchange Rate	Net Foreign Exchange Gain (Loss)	Exchange Rate	Net Foreign Exchange Gain (Loss)
NTD	1 (NTD:NTD)	$ (148,932)	1 (NTD:NTD)	$ 37,369
RMB	4.333 (RMB:NTD)	9,937	4.454 (RMB:NTD)	(5,977)
SGD	23.847 (SGD:NTD)	74	24.036 (SGD:NTD)	(220)
USD	31.18 (USD:NTD)	195	32.112 (USD:NTD)	(409)
		$ (138,726)		$ 30,763

31. SEPARATELY DISCLOSED ITEMS

a. Information on significant transactions and investees:

1) Financing provided to others. (Table 1)
2) Endorsements/guarantees provided. (Table 2)
3) Significant marketable securities held (excluding investment in subsidiaries, associates and joint controlled entities). (Table 3)
4) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital. (Table 4)
5) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital. (Table 5)
6) Intercompany relationships and significant intercompany transactions. (Table 6)

b. Information on investees: Table 7

c. Information on investments in mainland China

1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area. (Table 8)
2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses: (Table 9)

a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period.
b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period.
c) The amount of property transactions and the amount of the resultant gains or losses.

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

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

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

32. SEGMENT INFORMATION

Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided. Specifically, the Group’s reportable segments under IFRS 8 “Operating Segments” were as follows:

Alltek Technology Corp.
Alltek Group Corp. and Alltek Technology (H.K.) Limited.
Pantek Technology Corp.
Others

a. Segment revenues and results

The following was an analysis of the Group’s revenue and results from continuing operations by reportable segment.

	Segment Revenue		Segment Profit
	2025	2024	2025	2024
Alltek Technology Corp.	$ 25,943,628	$ 23,087,572	$ 393,627	$ 484,082
Alltek Group Corp and Alltek Technology (H.K.) Limited	20,314,287	20,882,968	786,564	581,110
Pantek Technology Corp.	1,274,140	1,676,759	24,493	3,405
Others	297,739	464,921	(3,068)	111,478
Profits from continuing operations	47,829,794	46,112,220	1,201,616	1,180,075
Less: Inter-segment profits	(446,688)	(219,481)	12,371	15,166
Revenue profits from segment and external customers	$ 47,383,106	$ 45,892,739	1,213,987	1,195,241
Interest income			85,375	15,842
Other income			44,308	69,953
Other gains and losses			(178,857)	(1,123)
Finance cost			(113,518)	(306,501)
Shares of profits of associates accounted for using the equity method			48,840	53,881
Profit before income tax from continuing operations			$ 1,100,135	$ 1,023,293

Inter-segment revenues were accounted for according to market prices.

Segment profit represented the profit before tax earned by each segment without other income, other gains and losses, finance costs and share of profits of associates accounted for using the equity method. This was the measure reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance.

b. Revenue from major products and services

The following is an analysis of the Group’s revenue from continuing operations from its major products and services.

	For the Year Ended December 31
	2025	2024
Broadband communication component	$ 10,938,373	$ 12,385,244
Wireless communication component	26,840,272	23,291,481
Others	9,604,461	10,216,014
	$ 47,383,106	$ 45,892,739

c. Geographical information

The Group operates in Taiwan and China.

	Revenue from External Customers		Non-current Assets
	For the Year Ended December 31		December 31
	2025	2024	2025	2024
Taiwan	$ 17,236,393	$ 16,432,661	$ 1,229,784	$ 1,221,884
China	27,361,763	26,795,118	51,984	95,575
Others	2,784,950	2,664,960	3,031	297
	$ 47,383,106	$ 45,892,739	$ 1,284,799	$ 1,317,756

Non-current assets exclude classified as investments accounted for using the equity method and deferred tax assets.

d. Information on major customers

Single customers contributing 10% or more to the Group’s revenue were as follows:

	For the Year Ended December 31
	2025	2024
Customer A	$ 6,410,012	$ 5,071,126
Customer B	5,095,497	5,327,128
Customer C	3,190,041	6,566,320
	$ 14,695,550	$ 16,964,574

TABLE 1

ALLTEK TECHNOLOGY CORP. AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS

FOR THE YEAR ENDED DECEMBER 31, 2025

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

No. (Note 1)	Lender	Borrower	Financial Statement Account	Related Parties	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		Financing Limit for Each Borrower (Note 2)	Aggregate Financing Limits (Note 2)
													Item	Value
0	Alltek Technology Corp.	Pantek Technology Corp.	Trade receivables from related parties	Yes	$ 150,000	$ 150,000	$ -	According to mutual agreement	Short-term accommodation of funds	$ -	Operating turnover	$ -	-	-	$ 528,964	$ 2,644,821
		Alder Optomechanical Corp.	Trade receivables from related parties	Yes	30,000	30,000	-	According to mutual agreement	Short-term accommodation of funds	-	Operating turnover	-	-	-	528,964	2,644,821
		Alltek Technology (H.K.) Limited	Trade receivables from related parties	Yes	500,000	400,000	-	According to mutual agreement	Short-term accommodation of funds	-	Operating turnover	-	-	-	528,964	2,644,821
		All Plus Co., Ltd.	Trade receivables from related parties	Yes	500,000	400,000	-	According to mutual agreement	Short-term accommodation of funds	-	Operating turnover	-	-	-	528,964	2,644,821
1	Pantek Global Corp.	Pantek Trade (Shenzhen) Co., Ltd.	Trade receivables from related parties	Yes	143,981	143,981	143,981	According to mutual agreement	Short-term accommodation of funds	-	Operating turnover	-	-	-	161,518	161,518
2	All Plus Co., Ltd.	Alltek Technology Ltd.	Trade receivables from related parties	Yes	1,885,800	1,885,800	1,772,550	According to mutual agreement	Short-term accommodation of funds	-	Operating turnover	-	-	-	2,508,010	2,508,010
		Alltek Technology (H.K.) Limited	Trade receivables from related parties	Yes	2,200,100	314,300	-	According to mutual agreement	Short-term accommodation of funds	-	Operating turnover	-	-	-	2,508,010	2,508,010
		Alltek Technology (Shenzhen) Ltd.	Trade receivables from related parties	Yes	121,104	95,372	95,372	According to mutual agreement	Short-term accommodation of funds	-	Operating turnover	-	-	-	2,508,010	2,508,010
		Alltek Technology (Singapore) PTE Limited	Trade receivables from related parties	Yes	62,860	62,860	7,858	According to mutual agreement	Short-term accommodation of funds	-	Operating turnover	-	-	-	2,508,010	2,508,010
3	Alltek Technology (H.K.) Limited	Alltek Technology Ltd.	Trade receivables from related parties	Yes	3,143,000	1,571,500	-	According to mutual agreement	Short-term accommodation of funds	-	Operating turnover	-	-	-	4,724,048	4,724,048
		Alltek Technology (Shenzhen) Ltd.	Trade receivables from related parties	Yes	42,063	30,491	30,491	According to mutual agreement	Short-term accommodation of funds	-	Operating turnover	-	-	-	4,724,048	4,724,048
		Alltek Technology (Singapore) PTE Limited	Trade receivables from related parties	Yes	62,860	62,860	-	According to mutual agreement	Short-term accommodation of funds	-	Operating turnover	-	-	-	4,724,048	4,724,048
		All Plus Co., Ltd.	Trade receivables from related parties	Yes	2,200,100	2,200,100	941,605	According to mutual agreement	Short-term accommodation of funds	-	Operating turnover	-	-	-	4,724,048	4,724,048
4	Alltek Group Corp.	Alltek Technology (H.K.) Limited	Trade receivables from related parties	Yes	644,315	644,315	644,315	According to mutual agreement	Short-term accommodation of funds	-	Operating turnover	-	-	-	1,919,877	1,919,877
5	VMY Co., Ltd.	Alltek Technology (Shenzhen) Ltd.	Trade receivables from related parties	Yes	17,984	17,984	-	According to mutual agreement	Short-term accommodation of funds	-	Operating turnover	-	-	-	22,313	22,313

Note 1: a. 0: Investors.
b. The invoices companies are numbered in order by company, starting with the Arabic number 1.

Note 2: a. No. 0: Alltek Technology Corp.

The maximum amount for individual enterprise is $5,289,641 (net worth as per latest financial report) = 10% = $528,964.

The aggregate financing limits is $5,289,641 (net worth as per latest financial report) = 50% = $2,644,821.

(Continued)

h. No. 1: Pantek Global Corp.

The maximum amount for individual subsidiaries is $161,518 (net worth as per latest financial report) = 100% = $161,518. The aggregate financing limits is $161,518 (net worth as per latest financial report) = 100% = $161,518.

c. No. 2: All Plus Co., Ltd.

The maximum amount for individual subsidiaries is $1,254,005 (net worth as per latest financial report) = 200% = $2,508,010. The aggregate financing limits is $1,254,005 (net worth as per latest financial report) = 200% = $2,508,010.

d. No. 3: Alltek Technology (H.K) Limited

The maximum amount for individual subsidiaries is $2,362,024 (net worth as per latest financial report) = 200% = $4,724,048. The aggregate financing limits is $2,362,024 (net worth as per latest financial report) = 200% = $4,724,048.

e. No. 4: Alltek Group Corp.

The maximum amount for individual subsidiaries is $1,919,877 (net worth as per latest financial report) = 100% = $1,919,877. The aggregate financing limits is $1,919,877 (net worth as per latest financial report) = 100% = $1,919,877.

f. No. 5: YMY Co., Ltd.

The maximum amount for individual subsidiaries is $22,313 (net worth as per latest financial report) = 100% = $22,313. The aggregate financing limits is $22,313 (net worth as per latest financial report) = 100% = $22,313.

Note 3: The above transactions have been eliminated on consolidation.

(Concluded)

TABLE 2

ALLTEK TECHNOLOGY CORP. AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

No. (Note 1)	Endorser/Guarantor	Guarantee		Limits on Endorsement/ Guarantee Given on Behalf of Each Party (Note 3)	Maximum Amount Endorsed/ Guaranteed During the Period	Outstanding Endorsement/ Guarantee at the End of the Period	Actual Borrowing Amount	Amount Endorsed/ Guaranteed by Collaterals	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/ Guarantee Limit (Note 3)	Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries	Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent	Endorsement/ Guarantee Given on Behalf of Companies in Mainland China
		Name	Relationship (Note 2)
0	Alltek Technology Corp.	Alltek Technology (H.K.) Limited	b	$ 13,224,103	$ 3,014,137	$ 2,982,707	$ -	$ -	56.39	$ 15,868,923	Y	-	-
		All Plus Co., Ltd.	c	13,224,103	207,438	-	-	-	-	15,868,923	Y	-	-
		Pantek Technology Corp.	b	13,224,103	1,272,465	709,585	49,377	-	13.41	15,868,923	Y	-	-
		Alder Optomechanical Corp.	b	13,224,103	368,000	266,361	260,361	-	5.04	15,868,923	Y	-	-
1	Pantek Technology Corp.	Pantek Global Corp.	c	1,272,622	37,716	37,716	19,927	-	5.93	1,590,778	Y	-	-

Note 1: a. 0: Investors.
b. The investee companies are numbered in order by company, starting with the Arabic number 1.

Note 2: a. Trading partner.
b. Subsidiaries directly held over 50% equity.
c. Company that directly or indirectly holds more 50% of the shares in investees.
d. Company where investees directly or indirectly holds of or exceeding 50% of its voting shares.
e. Guaranteed by the Company according to the construction contract.
f. An investee company. The guarantees were provided based on the Company's proportionate share in the investee company.
g. Joint and several guaranteed by the Company according to the pre-construction contract under Consumer Protection Act.

Note 3: a. No. 0: Alltek Technology Corp.

Endorsement/guarantee given on direct/indirect voting rights over fifty percent (50%). The maximum amount for endorsement guarantee is $5,289,641 (net worth as per latest financial report) × 250% = $13,224,103. The maximum amount for endorsement guarantee is $5,289,641 (net worth as per latest financial report) × 300% = $15,868,923.

b. No. 1: Pantek Technology Corp.

Endorsement/guarantee given on direct/indirect voting rights over fifty percent (50%). The maximum amount for endorsement guarantee is $636,311 (net worth as per latest financial report) × 200% = $1,272,622. The maximum amount for endorsement guarantee is $636,311 (net worth as per latest financial report) × 250% = $1,590,778.

TABLE 3

ALLTEK TECHNOLOGY CORP. AND SUBSIDIARIES

SIGNIFICANT MARKETABLE SECURITIES HELD

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account	December 31, 2025
				Shares	Carrying Amount	Percentage of Ownership	Fair Value
Alltek Technology Corp.	Foreign unlisted shares - preference shares
Kneron Holding Corporation	N	Financial assets at FVTPL - non-current	496,587	$ 88,053	-	$ 88,053	-

Note 1: Marketable securities in the table refer to shares, bonds, beneficiary certificates and other related securities within the scope of IFRS 9 "Financial Instruments".
Note 2: If the marketable securities issuer is not a related party, this column is not required.
Note 3: For those measured by fair value, the amount is the book balance after adjustment by fair value evaluation in the column of amount; for those not measured by fair value, the amount is the original acquisition cost or the cost after amortization deduction of accumulated impairments in the column of carrying amount.
Note 4: Where marketable securities held are pledged as security or pledged for borrowings or with restrictions on their uses under some agreements, the numbers of shares and amount pledged as well as restrictions shall be stated in the Note column.
Note 5: This table discloses the marketable securities that the company has determined should be presented based on the principle of materiality.
Note 6: With respect to the information of subsidiaries, associates and joint ventures, please refer to Tables 7, 8 and 9.

TABLE 4

ALLTEK TECHNOLOGY CORP. AND SUBSIDIARIES

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES OF AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL

FOR THE YEAR ENDED DECEMBER 31, 2025

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

Company Name	Related Party	Relationship	Transaction Details				Abnormal Transaction		Notes/Accounts Receivable (Payable)		Note
			Purchase/Sale	Amount	% to Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% to Total
Alltek Technology Corp.	Alltek Technology (H.K.) Limited	Subsidiary company	Sales	$ 326,369	1	180 days	Cost plus a fixed profit	No significant difference	$ -	-	-
All Plus Co., Ltd.	Alltek Technology (Shenzhen) Limited	Second-tier subsidiary of Alltek Technology Corp.	Sales	105,132	8	180 days	Cost plus a fixed profit	No significant difference	79,713	20	-
Alltek Technology (H.K.) Limited	YMY Co., Ltd.	Second-tier subsidiary of Alltek Technology Corp.	Sales	124,398	1	180 days	Cost plus a fixed profit	No significant difference	68,473	4	-
Pantek Technology Corp.	Pantek Global Corp.	Second-tier subsidiary of Alltek Technology Corp.	Sales	562,313	59	180 days	Cost plus a fixed profit	No significant difference	190,030	74	-

Note: The above transactions have been eliminated on consolidation.

TABLE 5

ALLTEK TECHNOLOGY CORP. AND SUBSIDIARIES

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

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Company Name	Related Party	Relationship	Trade Receivables		Turnover Rate	Overdue		Amounts Received in Subsequent Period	Allowance for Impairment Loss
			Financial Statement Accounts	Ending Balance		Amount	Actions Taken
Alltek Technology (H.K.) Limited	All Plus Co, Ltd.	Subsidiary of Alltek Technology Corp.	Other receivables	$ 941,605	-	$ -	-	$ -	$ -
Alltek Group Corp.	Alltek Technology (H.K.) Limited	Subsidiary of Alltek Technology Corp.	Other receivables	644,315	-	-	-	-	-
All Plus Co, Ltd.	Alltek Technology Corp	Ultimate parent company	Other receivables	1,772,550	-	-	-	-	-
Pantek Technology Corp.	Pantek Global Corp.	Subsidiary company	Trade receivable	190,030	4.06	-	-	186,634	-
Pantek Global Corp.	Pantek Trade (Shenzhen) Co., Ltd.	Subsidiary company	Trade receivable	6,864	3.94	-	-	230	-
	Pantek Trade (Shenzhen) Co., Ltd.	Subsidiary company	Other receivables	143,981	-	-	-	-	-
All Plus Co., Ltd.	Alltek Technology (Shenzhen) Co., Ltd.	Second-tier subsidiary of Alltek Technology Corp.	Trade receivables	79,713	3.72	-	-	6,286	-
	Alltek Technology (Shenzhen) Co., Ltd.	Second-tier subsidiary of Alltek Technology Corp.	Other receivables	95,372	-	-	-	-	-

Note: The above transactions have been eliminated on consolidation.

TABLE 6

ALLTEK TECHNOLOGY CORP. AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT TRANSACTIONS

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

No. (Note 1)	Investee Company	Counterparty	Relationship (Note 2)	Transactions Details
				Financial Statement Accounts	Amount	Payment Terms	% to Total Sales or Assets
0	Alltek Technology Corp.	All Plus Co., Ltd.	a	Sales revenue	$ 59,697	No significant difference	-
		Alltek Technology (H.K.) Limited	a	Sales revenue	326,369	No significant difference	1
1	Alltek Group Corp.	Alltek Technology (H.K.) Limited	c	Other receivables	644,315	-	4
2	All Plus Co., Ltd.	Alltek Technology Corp.	b	Sales revenue	55,460	No significant difference	-
		Alltek Technology Corp.	b	Other receivables	1,772,550	-	10
		Alltek Technology (H.K.) Limited	c	Sales revenue	17,672	No significant difference	-
		Alltek Technology (Shenzhen) Ltd.	c	Sales revenue	105,132	No significant difference	-
		Alltek Technology (Shenzhen) Ltd.	c	Accounts receivable	79,713	No significant difference	-
		Alltek Technology (Shenzhen) Ltd.	c	Other receivables	95,372	-	1
		YMY Co., Ltd.	c	Sales revenue	72,880	No significant difference	-
		YMY Co., Ltd.	c	Accounts receivable	41,365	No significant difference	-
3	Alltek Technology (H.K.) Limited	Alltek Technology Corp.	b	Interest income	12,245	-	-
		All Plus Co., Ltd.	c	Other receivables	941,605	-	5
		All Plus Co., Ltd.	c	Sales revenue	87,852	No significant difference	-
		Alltek Technology (Shenzhen) Ltd.	c	Sales revenue	11,754	No significant difference	-
		Alltek Technology (Shenzhen) Ltd.	c	Accounts receivable	10,179	No significant difference	-
		Alltek Technology (Shenzhen) Ltd.	c	Other receivables	30,491	-	-
		YMY Co., Ltd.	c	Sales revenue	124,398	No significant difference	-
		YMY Co., Ltd.	c	Accounts receivable	68,473	No significant difference	-
4	Alltek Technology (Shenzhen) Ltd.	All Plus Co., Ltd.	c	Other income	49,775	-	-
		Alltek Technology (H.K.) Limited	c	Other income	66,071	-	-
5	YMY Co., Ltd.	All Plus Co., Ltd.	c	Other income	39,868	-	-
6	Pantek Technology Corp.	Pantek Global Corp.	c	Sales revenue	562,313	No significant difference	1
		Pantek Global Corp.	c	Accounts receivable	190,030	No significant difference	1
7	Pantek Global Corp.	Pantek Trade (Shenzhen) Co., Ltd.	c	Other receivables	143,981	No significant difference	1
		Pantek Trade (Shenzhen) Co., Ltd.		Other income	14,334	-	-

(Continued)

Note 1: The intercompany transactions between each company are identified and numbered as follow:

a. Parent company: 0.
b. Subsidiaries are started from 1 consecutively.

Note 2: Categories of transactions with related parties:

a. Parent company to subsidiary.
b. Subsidiary to parent company.
c. Subsidiary to subsidiary.

Note 3: The above transactions have been eliminated on consolidation.

(Concluded)

TABLE 7

ALLTEK TECHNOLOGY CORP. AND SUBSIDIARIES

INFORMATION ON INVESTEES

FOR THE YEAR ENDED DECEMBER 31, 2025

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

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount		Balance as of December 31, 2025			Net Income (Loss) of the Investee	Share of Profits (Loss)	Note
				December 31, 2025	December 31, 2024	Shares	%	Carrying Amount
Alltek Technology Corp.	Pantek Technology Corp.	Taiwan	Distributor of electronic parts and components	$ 588,132	$ 588,132	53,200	100	$ 636,319	$ 4,105	$ 4,105	Subsidiary
	Alltek Marine Electronics Corp.	Taiwan	Manufacturing of wireless communication machinery and equipment	171,622	171,622	10,950	53	181,524	16,119	8,769	Subsidiary
	General Life Biotechnology Co., Ltd.	Taiwan	Wholesale and manufacturing of medical devices and equipment	70,072	70,072	6,923	23	144,319	56,772	13,101	Associate
	Alltek Technology (Singapore) Pte. Ltd.	Singapore	Distributor of electronic parts and components	10,929	10,929	500	100	-	(3,705)	(3,705)	Subsidiary
	Alder Optomechanical Corp.	Taiwan	Wholesale and manufacturing of lighting equipment	101,200	101,200	8,872	51	45,355	(20,299)	(10,374)	Subsidiary
	Alltek Group Corp.	Seychelles	Investment and trading	71,477	71,477	1,000	100	1,919,599	7,385	7,385	Subsidiary
	Yuban Technology Co., Ltd.	Taiwan	Wholesale of electrical appliances, telecommunication equipment and information software	191,862	191,862	9,157	15	226,108	142,955	21,443	Associate
	Alltek Technology (H.K.) Limited	Hong Kong	Distributor of electronic parts and components	US$ 28,759	US$ 28,759	222,450	100	2,361,504	639,829	639,829	Subsidiary
Pantek Technology Corp.	Pantek Global Corp.	Seychelles	Distributor of electronic parts and components	US$ 28,759	US$ 4,750	4,750	100	159,725	(8,066)	N/A	Subsidiary
	Yuban Technology Co., Ltd.	Taiwan	Wholesale of electrical appliances, telecommunication equipment and information software	127,908	127,908	6,105	10	150,738	142,955	14,296	Associate
Alltek Group Corp.	All Plus Co., Ltd.	British Virgin Islands	Electronic components distributor	US$ 251	US$ 251	50	100	US$ 39,869	US$ 199	N/A	Subsidiary
	All Pan Co., Ltd.	Seychelles	Investment and trading	US$ 750	US$ 750	750	100	US$ 711	US$ 59	N/A	Subsidiary

Note 1: With respect to the information of investee company in mainland China, please refer to Table 8.
Note 2: The above transactions have been eliminated on consolidation.

TABLE 8

ALLTEK TECHNOLOGY CORP. AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA

FOR THE YEAR ENDED DECEMBER 31, 2025

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

Investor Company	Investee Company	Main Businesses and Products	Paid-in Capital	Method of Investment (Note 1)	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2025	Remittance of Funds		Accumulated Outward Remittance for Investment from Taiwan as of December 31, 2025	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss) (Note 2)	Carrying Amount as of December 31, 2025	Accumulated Repatriation of Investment Income as of December 31, 2025
						Outward	Inward
Alltek Technology Corp.	Alltek Technology (Shenzhen) Ltd.	Selling and marketing of communication components	CNY 13,270	Note 2 A	US$ 250 ($ 8,196)	$ -	$ -	US$ 250 ($ 7,858)	$ 2,627	100	$ 2,627	$ (12,343)	$ -
	YMY Co., Ltd.	Selling and marketing of communication components	US$ 750	Note 2 B	US$ 500 ($ 16,393)	-	-	US$ 500 ($ 15,715)	1,732	100	1,732	22,313	-
Pantek Technology Corp.	Pantek Trade (Shenzhen) Co., Ltd.	Selling and marketing of communication components	US$ 4,500	Note 2 C	US$ 3,000 ($ 98,355)	-	-	US$ 3,000 ($ 94,290)	(10,527)	100	(10,527)	(127,178)	-
Alltek Group Corp.	Pantek Trade (Shenzhen) Co., Ltd.	Selling and marketing of communication components	US$ 4,500	Note 2 D	US$ 1,500 ($ 49,178)	-	-	US$ 1,500 ($ 47,145)	(10,527)	-	-	-	-
Investor Company	Accumulated Outward Remittance for Investment in Mainland China as of December 31, 2025	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on the Amount of Investment Stipulated by Investment Commission, MOEA (Note 3)
---	---	---	---
Alltek Technology Corp.	US$ 750 ($ 23,573)	US$ 750 ($ 23,573)	$ 3,173,785
Pantek Technology Corp.	US$ 3,000 ($ 94,290)	US$ 3,000 ($ 94,290)	381,787
Alltek Group Corp.	US$ 1,500 ($ 47,145)	US$ 1,500 ($ 47,3145)	1,151,926

Note 1: Investment types are classified as follows:
a. The investment was made directly in China.
b. The investment was made through a company registered in a third region:
1) Reinvested by Alltek Technology (H.K.) Limited.
2) Reinvested by All Pan Co., Ltd.
3) Reinvested by Pantek Global Corp.
4) Directly invested by Alltek Group Corp.
c. Other types.

Note 2: Investment income was recognized according to the financial statements audited by the Taiwan parent company's independent auditors.

(Continued)

Note 3: The total amount invested in mainland China shall not exceed 60% of the net worth of Alftek Technology Corp. partners. $5,289,641 × 60% = $3,173,785.

The total amount invested in mainland China shall not exceed 60% of the net worth of Pantek Technology Corp. partners. $636,311 × 60% = $381,787.

The total amount invested in mainland China shall not exceed 60% of the net worth of Alftek Group Corp. partners. $1,919,877 × 60% = $1,151,926.

Note 4: The above transactions have been eliminated on consolidation.

(Concluded)

TABLE 9

ALLTEK TECHNOLOGY CORP. AND SUBSIDIARIES

SIGNIFICANT TRANSACTIONS WITH INVESTEE COMPANIES IN MAINLAND CHINA, EITHER DIRECTLY OR INDIRECTLY THROUGH A THIRD PARTY, AND THEIR PRICES, PAYMENT TERMS, AND UNREALIZED GAINS OR LOSSES

FOR THE YEAR ENDED DECEMBER 31, 2025

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

Investee Company	Transaction Type	Purchase/Sale		Price	Transaction Details		Notes/Trade Receivable (Payable)		Unrealized (Gain) Loss
		Amount	%		Payment Term	Comparison with Normal Transaction	Ending Balance	%
YMY Co., Ltd.	Sales	$ 197,279	1	Cost plus a fixed profit	180 days after monthly closing	No significant differences	$ 109,838	1	$ 998
Alltek Technology (Shenzhen) Ltd.	Sales	116,886	-	Cost plus a fixed profit	180 days after monthly closing	No significant differences	89,892	1	-

Note: The above transactions have been eliminated on consolidation.

AI assistant

ALLTEK — Audit Report / Information 2025

52305_rns_2026-05-18_e457a5f5-b557-465b-9bf3-f1d454ab846e.pdf

INDEPENDENT AUDITORS' REPORT

Opinion

Basis for Opinion

Key Audit Matters

Recognition of Sales Revenue

Inventory Valuation and Allowance Risk

Other Matter

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

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Notice to Readers

ALLTEK TECHNOLOGY CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

1. GENERAL INFORMATION

2. APPROVAL OF CONSOLIDATED FINANCIAL STATEMENTS

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

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

1) Financial assets

a) Measurement categories

i. Financial assets at FVTPL

ii. Financial assets at amortized cost

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Key Sources of Estimation Uncertainty

Write-down of inventories

6. CASH AND CASH EQUIVALENTS

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

8. FINANCIAL ASSETS AT AMORTIZED COST - CURRENT

9. NOTES RECEIVABLE, TRADE RECEIVABLES AND OTHER RECEIVABLES

Trade Receivables

10. INVENTORIES

11. SUBSIDIARIES

12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

14. LEASE ARRANGEMENTS

15. BORROWINGS

16. BONDS PAYABLE

18. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

b. Defined benefit plans

19. EQUITY

20. REVENUE RECOGNITION

21. NET PROFIT AND OTHER COMPREHENSIVE INCOME

22. INCOME TAXES

23. EARNINGS PER SHARE

24. BUSINESS COMBINATIONS

25. SHARE-BASED PAYMENT ARRANGEMENTS

Employee Share Option Plan of the Company

26. CAPITAL MANAGEMENT

27. FINANCIAL INSTRUMENTS

Financial liabilities

29. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

30. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

31. SEPARATELY DISCLOSED ITEMS

32. SEGMENT INFORMATION

a. Segment revenues and results

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