Alpha — Audit Report / Information 2025

May 4, 2026

Stock Code:3380

ALPHA NETWORKS INC. AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors’ Report For the Years Ended December 31, 2025 and 2024

Address: No. 8, Li-shing 7th Road, Science-based Park, Hsinchu, Taiwan (R.O.C.) Telephone: (03)563 6666

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

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Table of contents

Contents 1. Cover Page 2. Table of Contents 3. Representation Letter 4. Independent Auditors’ Report 5. Consolidated Balance Sheets 6. Consolidated Statements of Comprehensive Income 7. Consolidated Statements of Changes in Equity 8. Consolidated Statements of Cash Flows 9. Notes to the Consolidated Financial Statements (1) Company history (2) Approval date and procedures of the consolidated financial statements (3) New standards, amendments and interpretations adopted (4) Summary of material accounting policies (5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty (6) Explanation of significant accounts (7) Related-party transactions (8) Pledged assets (9) Significant commitments and contingencies (10) Losses due to major disasters (11) Subsequent events (12) Other (13) Other disclosures (a) Information on significant transactions (b) Information on investees (excluding information on investees in Mainland China) (c) Information on investment in Mainland China (14) Segment information

Page

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Representation Letter

The entities that are required to be included in the consolidated financial statements of Alpha Networks Inc. as of and for the year ended December 31, 2025 under the Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports, and Consolidated Financial Statements of Affiliated Enterprises are the same as those included in the consolidated financial statements prepared in conformity with International Financial Reporting Standards No. 10, "Consolidated Financial Statements" endorsed by the Financial Supervisory Commission of the Republic of China. In addition, the information required to be disclosed in the consolidated financial statements is included in the consolidated financial statements. Consequently, Alpha Networks Inc. and Subsidiaries do not prepare a separate set of consolidated financial statements.

Hereby declare

Company name: Alpha Networks Inc. Chairman: Wen-Feng Huang Date: February 25, 2026

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KPMG

新竹市科學園區 300091展業一路 11 號 電 話 Tel + 886 3 579 9955 No. 11, Prosperity Road I, Hsinchu Science Park, 傳 真 Fax + 886 3 563 2277 Hsinchu, 300091, Taiwan (R.O.C.) 網 址 Web kpmg.com/tw

Independent Auditors’ Report

To the Board of Directors of Alpha Networks Inc.:

Opinion

We have audited the consolidated financial statements of Alpha Networks Inc. and its subsidiaries (“ 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 notes to the consolidated financial statements, including a summary of material accounting policies.

In our opinion, 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 with the International Financial Reporting Standards (“IFRSs”), International Accounting Standards (“IASs”), Interpretations developed by the International Financial Reporting Interpretations Committee (“IFRIC”) or the former Standing Interpretations Committee (“SIC”) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

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

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. 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. We have determined the matters described below to be the key audit matters to be communicated in our report.

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

1. Revenue recognition from contracts with customers

Please refer to note 4(16) and note 6(25) for accounting policy and detailed disclosure of revenue, respectively.

Description of key audit matter:

The Group’s major revenue is derived from the sales of goods to its customers. Revenue is recognized when the control over a product has been transferred to the customer as specified in each individual contract with customers. The Group recognizes revenue depending on the various sales terms in each individual contract with customers to ensure its performance obligation has been satisfied by transferring its control over a product to its customer. Therefore, we considered the appropriateness of the timing of revenue recognition to be one of the key audit matters.

How the matter was addressed in our audit:

In relation to the key audit matter above, our principal audit procedures included understanding and testing the Group’s internal controls surrounding the sales process and cash collection transaction process; analyzing the terms and types of the major sales transactions and assessing whether they were recorded in the proper period; selecting samples of sales transactions within the period before and after the balance sheet date, to recognize when the performance obligation has been satisfied by transferring control over the goods to a customer in order to determine whether they have been recorded in a proper period.

2. Valuation of inventories

Please refer to the note 4(8) for the accounting policy, note 5 for significant accounting assumptions and judgments, and major sources of estimation uncertainty, and note 6(4) for summary of inventory.

Description of key audit matter:

Inventories are measured at the lower of cost or net realizable value at the reporting date. The net realizable value of the inventory is determined by the Group based on the assumptions of the estimated selling price of the products. The rapid development of technology and introduction of new products may significantly change market demand and cause market price fluctuation, which may lead to product obsolescence and the cost of inventory to be higher than the net realizable value. Therefore, the valuation of inventory is one of our key audit matters.

How the matter was addressed in our audit:

In relation to the key audit matter above, our principal audit procedures included reviewing the inventory aging report and analyzing the fluctuation of inventory aging; selecting samples to verify the accuracy of the net realizable value of inventories and inventory aging report prepared by the Group; evaluating whether the valuation of inventories was accounted for in accordance with the Group’s accounting policies; and assessing the historical reasonableness of the management’s estimates on inventory provisions.

3. Impairment of Goodwill

Please refer to note 4(14) for the accounting policy, note 5 for accounting assumptions, major sources of estimation uncertainty related to goodwill impairment assessment, and note 6(13) for summary of goodwill impairment assessment.

Description of Key Audit Matter:

Goodwill arising from the acquisition of subsidiaries is subject to impairment test annually or at the time there are indications that goodwill may have been impaired. The assessment of the recoverable amount of goodwill involves management’s judgment and estimation. Hence, the assessment of impairment of goodwill has been identified as one of our key audit matters.

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How the matter was addressed in our audit:

In relation to the key audit matter above, our principal audit procedures included obtaining the expert report provided by management for the assessment of goodwill impairment; evaluating the appropriateness of the valuation model and key assumptions, including discount rates, expected growth rates, as well as future cash flow projections, used by the management in measuring the recoverable amount; testing the accuracy of estimates made by the management by comparing the past projections with actual cash flows; conducting a sensitivity analysis to assess the impact of variations in key assumptions; performing relevant procedures to evaluate the competence and objectivity of the expert; and reviewing whether the Group has appropriately disclosed the relevant information on goodwill impairment assessment.

Other Matter

Alpha Networks Inc. has prepared its parent-company-only financial statements as of and for the years 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 Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the IFRSs, IASs, IFRIC, 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 (inclusive of the Audit Committee) are responsible for overseeing the Group’s financial reporting process.

Auditor’s 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 auditor’s 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 professional skepticism throughout the audit. We also:

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

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1. 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.

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

3. 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.

4. 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.

5. Obtain sufficient and appropriate audit evidence regarding the financial information of the 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 of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audit resulting in this independent auditors’ report are Chun-Yuan Wu and AnChih Cheng.

KPMG

Taipei, Taiwan (Republic of China) February 25, 2026

Notes to Readers

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

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

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) ALPHA NETWORKS INC. AND SUBSIDIARIES

Consolidated Balance Sheets

December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

Assets Current assets: 1100 Cash and cash equivalents (note 6(1)) 1110 Current financial assets at fair value through profit or loss (note 6(2)) 1136 Current financial assets at amortized cost (notes 6(1) and (5)) 1170 Notes and accounts receivable, net (notes 6(3) and (25)) 1180 Accounts receivable due from related parties, net (notes 6(3) and 7) 130x Inventories (note 6(4)) 1470 Other current assets (notes 6(14), and 7) Non-current assets: 1510 Non-current financial assets at fair value through profit or loss (note 6(2)) 1517 Non-current financial assets at fair value through other comprehensive income (note 6(8)) 1535 Non-current financial assets at amortized cost (notes 6(5) and 8) 1600 Property, plant and equipment (notes 6(10) and 7) 1755 Right-of-use asset (note 6(11)) 1760 Investment property, net (note 6(12) and (20)) 1780 Intangible assets (notes 6(13) and 7) 1840 Deferred tax assets (notes 6(22)) 1990 Other non-current assets (notes 6(14) and (21)) Total assets	December 31, 2025 Amount % $ 4,917,583 20 13,055 - 3,362 - 4,542,091 19 26,201 - 6,758,228 28 853,846 4 17,114,366 71 134,985 1 90,897 - 187,093 1 3,732,440 16 512,342 2 559,955 2 1,510,398 6 295,565 1 21,904 - 7,045,579 29 $ 24,159,945 100	December 31, 2024 Amount % 3,957,279 17 5,192 - 73,355 - 3,969,144 17 1,568 - 6,929,471 30 767,495 4 15,703,504 68 52,620 - 110,711 - 214,057 1 4,565,191 20 650,114 3 - - 1,672,821 7 234,268 1 41,230 - 7,541,012 32 23,244,516 100 Liabilities and Equity Current liabilities: 2100 Short-term borrowings (note 6(15)) 2120 Current financial liabilities at fair value through profit or loss (note 6(2)) 2130 Current contract liabilities (notes 6(25)) 2170 Accounts payable (including related parties) (note 7) 2209 Accrued expenses 2230 Current tax liabilities 2250 Current provisions (note 6(17)) 2322 Long-term borrowings, current portion (note 6(16)) 2399 Other current liabilities (notes 6(18), (19) and 7) Non-Current liabilities: 2540 Long-term borrowings (note 6(16)) 2580 Non-current lease liabilities (note 6(19)) 2640 Net defined benefit liability (note 6(21)) 2670 Other non-current liabilities (notes 6(17) and (22)) Total liabilities Equity(note 6(23)): Equity attributable to owners of parent: 3110 Ordinary share capital 3200 Capital surplus Retained earnings: 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings 3400 Other equity interest Total equity attributable to owners of parent 36XX Non-controlling interests (notes 6(9) and (23)) Total equity Total liabilities and equity	December 31, 2025 Amount % $ 2,546,960 10 998 - 690,523 3 4,919,034 20 499,449 2 122,279 1 225,449 1 380,000 2 992,735 4 10,377,427 43 240,000 1 273,641 1 56,505 - 172,998 1 743,144 3 11,120,571 46 5,417,185 23 2,354,126 10 1,346,461 6 87,993 - 76,395 - 1,510,849 6 (158,330) (1) 9,123,830 38 3,915,544 16 13,039,374 54 $ 24,159,945 100	December 31, 2024
				Amount % 1,615,357 7 23,758 - 1,339,841 5 3,460,727 15 549,804 2 187,745 1 231,771 1 80,000 - 850,904 5 8,339,907 36 375,000 2 287,479 1 55,398 - 204,031 1 921,908 4 9,261,815 40 5,417,185 23 2,614,277 11 1,321,375 6 267,982 1 382,082 1 1,971,439 8 (87,993) - 9,914,908 42 4,067,793 18 13,982,701 60 23,244,516 100

See accompanying notes to consolidated financial statements.

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) ALPHA NETWORKS INC. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income For the years ended December 31, 2025 and 2024 (Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Share)

4000 Operating revenue(notes 6(25) and 7) 5000 Operating costs(notes 6(4),(10),(11),(13),(21),(26), 7 and 12) Gross profit Operating expenses(notes 6(3),(10),(11),(13),(21),(26), 7 and 12): 6100 Selling expenses 6200 Administrative expenses 6300 Research and development expenses 6450 Expected credit loss Total operating expenses Net operating income (loss) Non-operating income and expenses: 7010 Other income (notes 6(28) and 7) 7020 Other gains and losses, net (notes 6(6),(12),(20) and (29)) 7050 Finance costs (notes 6(19) and (30)) 7100 Interest income (note 6(27)) Total non-operating income and expenses Profit (loss) before tax 7950 Less: Income tax expense (benefit) (note 6(22)) Profit (loss) 8300 Other comprehensive income (loss): 8310 Components of other comprehensive income (loss) that may not be reclassified subsequently to profit or loss 8311 Gains (losses) on remeasurements of defined benefit plans (note 6(21)) 8316 Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income (loss) (notes 6(23) and (31)) 8349 Income tax related to components of other comprehensive income (loss) that will not be reclassified to profit or loss (note 6(22)) Components of other comprehensive income (loss) that may not be reclassified subsequently to profit or loss 8360 Components of other comprehensive income (loss) that may be reclassified subsequently to profit or loss 8361 Exchange differences on translation of foreign financial statements (note 6(23)) 8399 Income tax related to components of other comprehensive income (loss) that will be reclassified to profit or loss (notes 6(22) and (23)) Components of other comprehensive income (loss) that may be reclassified subsequently to profit or loss 8300 Other comprehensive income (loss), net of income tax 8500 Total comprehensive income (loss) Profit (loss) attributable to: 8610 Owners of parent 8620 Non-controlling interests 8700 Total comprehensive income (loss) attributable to: 8710 Owners of parent 8720 Non-controlling interests Earnings (loss) per share(New Taiwan dollars) (note 6(24)) Basic earnings (loss) per share Diluted earnings (loss) per share	For the years ended December 31,	For the years ended December 31,	For the years ended December 31,	% 100 82 18 5 4 8 - 17 1 - 2 (1) 1 2 3 1 2 - - - - 2 (1) 1 1 3 1 1 2 2 1 3 0.40 0.40
	2025	% 100 83 17 5 4 8 - 17 - - - (1) - (1) (1) - (1) - - - - - - - - (1) (1) - (1) (1) - (1) (0.36) (0.36)	2024 Amount 21,443,625 17,514,226 3,929,399 1,083,482 1,021,350 1,716,699 281 3,821,812 107,587 86,963 357,043 (143,824) 107,187 407,369 514,956 172,957 341,999 32,094 (48,647) 162 (16,715) 346,391 (55,689) 290,702 273,987 615,986 218,627 123,372 341,999 430,850 185,136 615,986
	Amount $ 22,461,720 18,564,534 3,897,186 1,142,709 980,553 1,845,197 65,604 4,034,063 (136,877) 104,634 (84,111) (137,591) 79,460 (37,608) (174,485) (27,431) (147,054) (569) 6,829 (236) 6,024 (127,467) 18,320 (109,147) (103,123) $ (250,177) $ (193,870) 46,816 $ (147,054) $ (260,068) 9,891 $ (250,177) $ $

See accompanying notes to consolidated financial statements.

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) ALPHA NETWORKS INC. AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

Balance at January 1, 2024 Profit Other comprehensive income (loss) Total comprehensive income (loss) Appropriation and distribution of retained earnings: Legal reserve Special reserve Cash dividends on ordinary share Donation from shareholders Disposal of investments in equity instruments designated at fair value through other comprehensive income Disposal of Subsidiaries Changes in ownership interests in subsidiaries Distribution of cash dividend by subsidiaries to non- controlling interests Changes in non-controlling interests Balance at December 31, 2024 Profit (loss) Other comprehensive income (loss) Total comprehensive income (loss) Appropriation and distribution of retained earnings: Legal reserve Reversal of special reserve Cash dividends on ordinary share Donation from shareholders Cash dividends from capital surplus Disposal of investments in equity instruments designated at fair value through other comprehensive income Difference between consideration and carrying amount of subsidiaries disposed Changes in ownership interests in subsidiaries Distribution of cash dividend by subsidiaries to non- controlling interests Changes in non-controlling interests Balance at December 31, 2025	Ordinary shares $ 5,417,185 - - - - - - - - - - - - 5,417,185 - - - - - - - - - - - - - $ 5,417,185	Capital surplus 2,595,804 - - - - - - 10 - - 18,463 - - 2,614,277 - - - - - - 11 (270,859) - 3,089 7,608 - - 2,354,126		Retained earnings	Total retained earnings 2,267,715 218,627 31,689 250,316 - - (547,136) - 544 - - - - 1,971,439 (193,870) (2,580) (196,450) - - (270,859) - - 6,719 - - - - 1,510,849		Total other equity interest	Total other equity interest	Total other equity interest	Total other equity interest (267,983) - 180,534 180,534 - - - - (544) - - - - (87,993) - (63,618) (63,618) - - - - - (6,719) - - - - (158,330)	Total equity attributable to owners of parent 10,012,721 218,627 212,223 430,850 - - (547,136) 10 - - 18,463 - - 9,914,908 (193,870) (66,198) (260,068) - - (270,859) 11 (270,859) - 3,089 7,608 - - 9,123,830	Non- controlling interests 3,317,358 123,372 61,764 185,136 - - - - - - (18,463) (230,106) 813,868 4,067,793 46,816 (36,925) 9,891 - - - - - - 23,025 (7,608) (199,619) 22,062 3,915,544	Total equity
						Exchange differences on translation of foreign financial statements (243,018) - 222,759 222,759 - - - - - (43,579) - - - (63,838) - (73,279) (73,279) - - - - - - - - - - (137,117)	Unrealized gains (losses) on financial assets measured at fair value through other comprehensive income		Equity related to non-current assets held for sale (43,579) - - - - - - - - 43,579 - - - - - - - - - - - - - - - - - -
			Legal reserve 1,266,681 - - - 54,694 - - - - - - - - 1,321,375 - - - 25,086 - - - - - - - - - 1,346,461	Special reserve
				226,548			18,614						13,330,079 341,999 273,987 615,986 - - (547,136) 10 - - - (230,106) 813,868 13,982,701 (147,054) (103,123) (250,177) - - (270,859) 11 (270,859) - 26,114 - (199,619) 22,062 13,039,374
				- -
				-
				- 41,434 - - - - - - -
				267,982
				- -
				-

See accompanying notes to consolidated financial statements.

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) ALPHA NETWORKS INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from operating activities: Profit (loss) before tax Adjustments: Adjustments to reconcile profit: Depreciation expense Amortization expense Expected credit loss Net (gain) loss on financial assets or liabilities at fair value through profit or loss Interest expense Interest income Dividend income (Gain) loss on disposal of property, plant and equipment Provisions for inventory obsolescence and devaluation loss Gain on disposal of non-current assets held for sale Lease modification (benefit) expense Adjustment for other non-cash-related losses, net Total adjustments to reconcile profit Changes in operating assets and liabilities: Notes and accounts receivable (including related parties) Financial assets mandatorily at fair value through profit or loss Inventories Other current assets Financial liabilities held for trading Notes and accounts payable (including related parties) Other payables to related parties Other current liabilities Net defined benefit liability Other non-current liabilities Total changes in operating assets and liabilities Total adjustments

For the years ended December 31, 2025 2024 $ (174,485) 514,956 504,172 504,383 244,513 219,771 65,604 281 (40,389) 21,990 137,591 143,824 (79,460) (107,187) (251) (1,306) (4,049) 3,578 11,441 62,202 - (453,891) (3) 155 28,516 - 867,685 393,800 (608,293) 976,374 290 30,309 46,931 901,036 (97,072) 21,482 (23,758) (778) 1,437,710 (878,491) (2,828) 3,273 (633,774) (415,414) 302 (17,911) (11,706) 8,512 107,802 628,392 975,487 1,022,192 (Continued)

2025 $ (174,485) 504,172 244,513 65,604 (40,389) 137,591 (79,460) (251) (4,049) 11,441 - (3) 28,516 867,685 (608,293) 290 46,931 (97,072) (23,758) 1,437,710 (2,828) (633,774) 302 (11,706) 107,802 975,487

See accompanying notes to consolidated financial statements.

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) ALPHA NETWORKS INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows (Continued)

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

Cash flows generated from operations Interest received Dividends received Interest paid Income taxes paid Net cash flows from operating activities Cash flows from investing activities: Proceeds from disposal of financial assets at fair value through other comprehensive income Acquisition of financial assets at amortized cost Proceeds from repayments of financial assets at amortized cost Acquisition of financial assets at fair value through profit or loss Net cash outflow arising from acquisition of subsidiaries Proceeds from disposal of subsidiaries Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Decrease (increase) in refundable deposits Acquisition of intangible assets Decrease in other non-current assets Net cash flows used in investing activities Cash flows from financing activities: Increase in short-term borrowings Repayments of short-term borrowings Proceeds from long-term borrowings Repayments of long-term borrowings Increase in guarantee deposits received Payment of lease liabilities Cash dividends paid to shareholders Donation from shareholders Cash dividends paid to non-controlling interest Net cash flows from (used in) financing activities Effect of exchange rate changes on cash and cash equivalents Net increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period

For the years ended December 31, 2025 2024 $ 801,002 1,537,148 79,423 105,124 251 1,306 (127,109) (150,198) (77,014) (206,248) 676,553 1,287,132 26,643 31,974 (3,362) (73,355) 73,355 41,000 (49,131) (50,000) - (349,760) 26,101 536,388 (190,109) (606,530) 14,313 36,066 24,369 (34,188) (82,681) (79,615) 21,502 327,999 (139,000) (220,021) 10,836,004 10,257,379 (9,765,658) (9,590,130) 270,000 55,000 (105,000) (300,000) 13,774 580 (37,918) (38,007) (541,718) (547,136) 11 10 (199,619) (230,106) 469,876 (392,410) (47,125) 81,903 960,304 756,604 3,957,279 3,200,675 $ 4,917,583 3,957,279

2025 $ 801,002 79,423 251 (127,109) (77,014) 676,553 26,643 (3,362) 73,355 (49,131) - 26,101 (190,109) 14,313 24,369 (82,681) 21,502 (139,000) 10,836,004 (9,765,658) 270,000 (105,000) 13,774 (37,918) (541,718) 11 (199,619) 469,876 (47,125) 960,304 3,957,279 $ 4,917,583

See accompanying notes to consolidated financial statements.

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(English Translation of Consolidated Financial Statements Originally Issued in Chinese) ALPHA NETWORKS INC. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

1. Company history

ALPHA NETWORKS INC. (“ Alpha” ) was incorporated on September 4, 2003, and obtained the registration approval from the Hsinchu Science Park Bureau (“HSPB”). The registered address of Alpha is No. 8, Li-shing 7th Road, Science-based Industrial Park, Hsinchu, Taiwan (R.O.C.). The consolidated financial statements comprise Alpha and its subsidiaries (together referred to as the “Group”).

The Group’s main activities include the research, development, design, production and sale of broadband products, computer network systems, wireless local area networks (“LANs”), and related accessories.

On July 23, 2020, Qisda Corporation (“Qisda”) acquired 19.02% of Alpha’s ordinary shares, before the acquisition, Qisda and its subsidiaries held 23.84%, totaling 42.86% of the ordinary shares, Qisda became the parent company after the acquisition.

2. Approval date and procedures of the consolidated financial statements:

These consolidated financial statements were authorized for issuance by the Board of Directors on February 25, 2026.

3. New standards, amendments and interpretations adopted:

• (1) The impact of the International Financial Reporting Standards (“ IFRS Accounting Standards” ) endorsed by the Financial Supervisory Commission, R.O.C. (FSC) which have already been adopted

The Group has initially adopted the following new amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2025:

• ●Amendments to IAS 21 “Lack of Exchangeability”

• ●Amendments to IFRS 9 and IFRS 7 “ Amendments to the Classification and Measurement of Financial Instruments” regarding the application guidance requirements for Section 4.1 of IFRS 9 and the related disclosure requirements of IFRS 7

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

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

• ●IFRS 17 “Insurance Contracts” and amendments to IFRS 17 “Insurance Contracts”

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ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• ●Amendments to IFRS 9 and IFRS 7 “ Amendments to the Classification and Measurement of Financial Instruments” regarding the application guidance requirements for Sections 3.1 and 3.3 of IFRS 9 and the related disclosure requirements of IFRS 7

• ●Annual Improvements to IFRS Accounting Standards-Volume 11

• ●Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”

• (3) The impact of IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC

The following new and amended standards, which may be relevant to the Group, have been issued by the International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC:

Standards or Interpretations Content of amendment IFRS 18 “Presentation and The new standard introduces three Disclosure in Financial categories of income and expenses, two Statements” income statement subtotals and one single note on management performance measures. The three amendments, combined with enhanced guidance on how to disaggregate information, set the stage for better and more consistent information for users, and will affect all the entities.

• ●A more structured income statement: under current standards, companies use different formats to present their results, making it difficult for investors to compare financial performance across companies. The new standard promotes a more structured income statement, introducing a newly defined ‘operating profit’ subtotal and a requirement for all income and expenses to be allocated between three new distinct categories based on a company’ s main business activities.

Effective date per IASB

January 1, 2027 Note:On September 25, 2025, the FSC issued a press release announcing that Taiwan will adopt IFRS 18 beginning in 2028. Entities that need to adopt the new standard earlier may do with the endorsement of the FSC.

• ●Management performance measures (MPMs): the new standard introduces a definition for management performance measures, and requires companies to explain in a single note to the financial statements why the measure provides useful information, how it is calculated and reconcile it to an amount determined under IFRS Accounting Standards.

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ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Standards or Interpretations	Content of amendment Effective date per IASB ●Greater disaggregation of information: the new standard includes enhanced guidance on how companies group information in the financial statements. This includes guidance on whether information is included in the primary financial statements or is further disaggregated in the notes.

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

The Group does not expect the following other new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its consolidated financial statements:

• ●Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”

• ●IFRS 19 “Subsidiaries without Public Accountability: Disclosures” and amendments to IFRS 19 “Subsidiaries without Public Accountability: Disclosures”

• ●Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency”

4. Summary of material accounting policies:

The material accounting policies presented in the consolidated financial statements are summarized as follows. Except for those specifically indicated, the following accounting policies were applied consistently to all periods presented in the consolidated financial statements.

• (1) Statement of compliance

These consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (hereinafter referred to as “the Regulations” ) and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations endorsed and issued into effect by the Financial Supervisory Commission, R.O.C. (altogether referred to “ IFRS Accounting Standards” endorsed by the “FSC”).

• (2) Basis of preparation

• A. Basis of measurement

Except for the following significant accounts, the consolidated financial statements have been prepared on a historical cost basis:

• (a) Financial assets and liabilities at fair value through profit or loss are measured at fair value;

• (b) Financial assets at fair value through other comprehensive income are measured at fair value;

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ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (c) The net defined benefit liability is measured at the fair value of the plan assets less the present value of the defined benefit obligation.

• B. Functional and presentation currency

The functional currency of the Group is determined based on the primary economic environment in which the entity operates. The consolidated financial statements are presented in New Taiwan Dollars (NTD), which is the Group’s functional currency. All financial information presented in NTD has been rounded to the nearest thousand.

(3) Basis of consolidation

• A. Principles of preparation of the consolidated financial statements

The consolidated financial statements comprise Alpha and its subsidiaries. Alpha controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its control over the entity.

The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Intragroup balances and transactions, and any unrealized income and expenses arising from intragroup transactions are eliminated in preparing the consolidated financial statements. Total comprehensive income (loss) in a subsidiary is allocated to the shareholders of Alpha and the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

Subsidiaries’ financial statements are adjusted to align the accounting policies with those of the Group.

Changes in the Group’s ownership interests in a subsidiary that do not result in a loss of control are accounted for as equity transactions.

• B. List of subsidiaries in the consolidated financial statements

Name of Investor Alpha Alpha Alpha Alpha Alpha	Name of Investee Alpha Solutions Co., Ltd. (Alpha Solutions) Alpha Networks, Inc. (Alpha USA) Alpha Networks (Hong Kong) Limited (Alpha HK) Alpha Technical Services Inc. (ATS) Enrich Investment Corporation (Enrich Investment)	Main Business Activities Sale of network equipment, components and technical services Sale, marketing and procurement services in USA Investment holding Post-sale service Investment holding	Shareholding
			December 31, 2025 December 31, 2024 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00

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ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of Investor Alpha Alpha Alpha Alpha Alpha Alpha D-Link Asia Alpha HK Alpha Changshu Alpha Changshu Enrich Investment Enrich Investment Enrich Investment Hitron Technologies Hitron Technologies Hitron Technologies	Name of Investee D-Link Asia Investment Pte, Ltd. (D-Link Asia) (note 2) Hitron Technologies Inc. (Hitron Technologies) Alpha Networks Vietnam Company Limited (Alpha VN) Alpha Networks (Chengdu) Co., Ltd. (Alpha Chengdu) INDIALPHA TECHNET PRIVATE LIMITED (INDIALPHA) (note 4) Fiber Logic Communication, Inc. (Fiber Logic) (note 5) Alpha Networks (Dongguan) Co., Ltd. (Alpha Dongguan) (note 2) Alpha Networks (Changshu) Ltd. (Alpha Changshu) Mirac Networks (Dongguan) Co., Ltd. (Mirac) (note 7) Alpha Electronics Trading (Changshu), Ltd. (Alpha Changshu Trading) Interactive Digital Technologies Inc. (Interactive Digital) (note 1) Aespula Technology INC. (Aespula) (note 3) INDIALPHA (note 4) Hitron Technologies (Samoa) Inc (Hitron Samoa) Interactive Digital (note 1) Hitron Technologies Europe Holding B.V. (Hitron Europe)	Main Business Activities Investment in manufacturing business Marketing on system integration of communication product and telecommunication products Production and sale of network products Research and development of network products Sale of network products Broad band communication products and service Production and sale of network products Production and sale of network products Production and sale of network products Production and sale of network products Telecommunication and broadband network system services Sale of network equipment, components and technical services Sale of network products International trade Telecommunication and broadband network system services International trade	Shareholding
			December 31, 2025 December 31, 2024 - - % 62.24 % 62.24 % 100.00 % 100.00 % 100.00 % 100.00 % 99.99 % 99.99 % 30.39 % 31.66 - - % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 5.06 % 5.06 % 98.92 % 98.92 % 0.01 % 0.01 % 100.00 % 100.00 % 32.82 % 32.82 % 100.00 % 100.00

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ALPHA NETWORKS INC. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Name of Investor Hitron Technologies Hitron Technologies Hitron Technologies Hitron Samoa Hitron Samoa Interactive Digital Interactive Digital Interactive Digital	Name of Investee Hitron Technologies (Americas) Inc. (Hitron America) Innoauto Technologies Inc. (Innoauto Technologies) (note 6) Hitron Technologies (Vietnam) Inc. (Hitron Vietnam) Hitron Technologies (SIP) Inc (Hitron Suzhou) Jietech Trading (Suzhou) Inc. (Jietech Suzhou) Hwa Chi Technologies (Shanghai) Inc. (Hwa Chi Technologies) Transnet Corporation (Transnet) Fiber Logic (note 5)	Main Business Activities International trade Investment and automotive electronics products Production and sale of broadband telecommunications products Broadband Telecommunications products, research and development Sale of broadband network products and related services Technical consultation on electronic communication, technology research and development, maintenance and after- sale service Operating in network communication products, provide system support services, integrated supply and import and export of network equipment Broad band communication products and service	Shareholding
			December 31, 2025 December 31, 2024 % 100.00 % 100.00 - % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 80.00 % 80.00 % 5.76 % 6.00

Note 1: The Group did not own more than half of the ownership of Interactive Digital. As the Group has the power to control the management and operating policies of the entities, the entities have been included in the Group’s consolidated entities.

Note 2: On December 28, 2023, Alpha made the agreement to dispose the entire shares of D- Link Asia and Alpha Dongguan. The abovementioned assets were reclassified as noncurrent assets held for sale. The abovementioned transaction had been completed in the second quarter of 2024.

Note 3: On November 20, 2025, Aespula’s Board of Directors had approved the dissolution. The liquidation process is currently in progress.

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ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Note 4: In July, 2024 Alpha established a new subsidiary, INDIALPHA.

  - Note 5: In November 2024, the Group acquired an equity interest in Fiber Logic. Although the Group did not own more than half of the ownership of Fiber Logic. As the Group has the power to control the management and operating policies of the entities, the entities have been included in the Group’s consolidated entities.

  - Note 6: Innoauto Technologies has completed the liquidation process as of the reporting date.

  - Note 7: On October 31, 2025, Mirac’s Board of Directors had approved the dissolution. The liquidation process is currently in progress.

• C. Subsidiaries excluded from the consolidated financial statements: None.

• (4) Foreign currencies

• A. Foreign currency transactions

Transactions in foreign currencies are translated into the functional currencies at the exchange rate at the dates of the transactions. At the end of each subsequent reporting period, monetary items denominated in foreign currencies are translated into the functional currencies using the exchange rate at that date.

Non-monetary items denominated in foreign currencies that are measured at fair value are translated into the functional currencies using the exchange rate at the date when fair value was determined. Non-monetary items denominated in foreign currencies that are measured based on historical cost are translated using the exchange rate at the date of the transaction.

Exchange differences are generally recognized in profit or loss, except for those differences relating to the following, which are recognized in other comprehensive income:

• (a) an investment in equity securities designated as at fair value through other comprehensive income; or

• (b) a financial liability designated as a hedge of the net investment in a foreign operation to the extent that the hedge is effective.

• B. Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into the presentation currency at the exchange rates at the reporting date. The income and expenses of foreign operations, are translated into the presentation currency at the average exchange rate. Exchange differences are recognized in other comprehensive income.

When a foreign operation is disposed of such that control, joint control, or significant influence is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. For a partial disposal of the Group’ s ownership interest in an associate or joint venture, the proportionate share of the accumulated exchange differences in equity is reclassified to profit or loss.

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ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

When the settlement of a monetary receivable from or payable to a foreign operation is neither planned nor likely to occur in the foreseeable future, exchange differences arising from such a monetary item that are considered to form part of the net investment in the foreign operation are recognized in other comprehensive income.

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

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

• A. It is expected to be realized, or intended to be sold or consumed, in the normal operating cycle;

• B. It is held primarily for the purpose of trading;

• C. It is expected to be realized within twelve months after the reporting period; or

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

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

• A. It is expected to be settled in the normal operating cycle;

• B. It is held primarily for the purpose of trading;

• C. It is due to be settled within twelve months after the reporting period; or

• D. The Group does not have the right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period.

• (6) Cash and cash equivalents

Cash comprises cash on hand and demand deposits. Cash equivalents are short-term and highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Time deposits which met the above definition and held for the purpose of meeting short-term cash commitments rather than for investment or other purposes are classified as cash equivalents.

(7) Financial instruments

Trade receivables and debt securities issued are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the Group becomes a party to the contractual provisions of the instrument. A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.

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ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• A. Financial assets

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

On initial recognition, a financial asset is classified as measured at: amortized cost; Fair value through other comprehensive income (FVOCI) - equity investment or FVTPL. Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

(a) Financial assets measured at amortized cost

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

• it is held within a business model whose objective is to hold assets to collect contractual cash flows; and

• its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

These assets are subsequently measured at amortized cost, which is the amount at which the financial asset is measured at initial recognition, plus/minus, the cumulative amortization using the effective interest method, adjusted for any loss allowance. Interest income, foreign exchange gains and losses, as well as impairment, are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

• (b) Fair value through other comprehensive income (FVOCI)

On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subsequent changes in the investment’ s fair value in other comprehensive income. This election is made on an instrument-by-instrument basis.

Equity investments at FVOCI are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in other comprehensive income and are never reclassified to profit or loss.

Dividend income derived from equity investment is recognized in profit or loss on the date on which the Group’s right to receive payment is established (usually the ex-dividend date).

• (c) Fair value through profit or loss (FVTPL)

All financial assets not classified as amortized cost or FVOCI described as above are measured at FVTPL, including derivative financial assets. On initial recognition, the Group may irrevocably designate a financial asset, which meets the requirements to be measured at amortized cost or at FVOCI, as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

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

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ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(d) Impairment of financial assets

The Group recognizes loss allowances for expected credit losses (“ ECL” ) on financial assets measured at amortized cost (including cash and cash equivalents, financial assets measured at amortized cost, notes and accounts receivable, other receivables, guarantee deposits paid and other financial assets) and contract assets.

The Group measures loss allowances at an amount equal to lifetime ECL, except for the following which are measured as 12-month ECL:

• bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.

Loss allowance for notes and accounts receivable, and contract assets are always measured at an amount equal to lifetime ECL.

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

Lifetime ECL are the ECL that result from all possible default events over the expected life of a financial instrument.

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

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

ECL are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the Group in accordance with the contract and the cash flows that the Group expects to receive). ECL are discounted at the effective interest rate of the financial asset.

(e) Derecognition of financial assets

The Group derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

The Group enters into transactions whereby it transfers assets recognized in its statement of balance sheets, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognized.

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ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• B. Financial liabilities and equity instruments

• (a) Classification of debt or equity

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

• (b) Equity instrument

An equity instrument is any contract that evidences residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued are recognized as the amount of consideration received, less the direct cost of issuing.

• (c) Financial liabilities

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

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

• (d) Derecognition of financial liabilities

The Group derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The Group also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value.

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

• (e) Offsetting of financial assets and liabilities

Financial assets and financial liabilities are offset and the net amount presented in the statement of balance sheet when, and only when, the Group currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

• C. Derivative financial instruments and hedge accounting

The Group holds derivative financial instruments to hedge its foreign currency and interest rate exposures. Embedded derivatives are separated from the host contract and accounted for separately if the host contract is not a financial asset and certain criteria are met.

Derivatives are initially measured at fair value. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are generally recognized in profit or loss.

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ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(8) Inventories

Inventories are measured at the lower of cost or net realizable value. The cost of inventories is calculated using the weighted average method, and includes expenditure incurred in acquiring the inventories, production or conversion costs, and other costs incurred in bringing them to their present location and condition. In the case of manufactured inventories and work in progress, cost includes an appropriate share of production overheads based on normal operating capacity.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.

(9) Non-current assets held for sale

Non-current assets or disposal groups comprising assets and liabilities that are highly probable to be recovered primarily through sale rather than through continuing use, are reclassified as held for sale. Immediately before classification as held for sale, the assets, or components of a disposal group, are remeasured in accordance with the Group’s accounting policies. Thereafter, generally, the assets or disposal groups are measured at the lower of their carrying amount and fair value less costs to sell.

Any impairment loss on a disposal group is first allocated to goodwill, and then to the remaining assets and liabilities on a pro rata basis, except that no loss is allocated to assets not within the scope of IAS 36 – Impairment of Assets. Such assets will continue to be measured in accordance with the Group’s accounting policies.

Impairment losses on assets initially classified as held for sale and any subsequent gains or losses on remeasurement are recognized in profit or loss. Gains are not recognized in excess of the cumulative impairment loss that has been recognized.

Once classified as held for sale, intangible assets and property, plant and equipment are no longer amortized or depreciated, and any equity-accounted investee is no longer equity accounted.

• (10) Property, plant and equipment

• A. Recognition and measurement

Property, plant and equipment are measured at cost, which includes capitalized borrowing costs, less accumulated depreciation and any accumulated impairment losses.

If significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment is recognized in profit or loss.

• B. Subsequent expenditure

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

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ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

C. Depreciation

Depreciation is calculated on the cost of an asset less its residual value and is recognized in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment.

Land is not depreciated.

The estimated useful lives of property, plant and equipment for current and comparative periods are as follows:

• (a) Buildings and improvements: 2 to 56 years

Buildings and building improvements constitute mainly buildings, mechatronic engineering and hydropower engineering, etc.

• (b) Machinery and equipment: 3 to 10 years

• (c) Transportation facilities: 2.5 to 6 years

• (d) Office and other facilities: 2 to 10 years

Depreciation methods, useful lives, and residual values are reviewed at each annual reporting date and adjusted if appropriate.

(11) Lessee

At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

A. As a lessee

The Group recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. In addition, the right-of-use asset is periodically evaluated and reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be reliably determined, the Group’ s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.

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ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

• (a) fixed payments, including in-substance fixed payments;

• (b) variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;

• (c) amounts expected to be payable under a residual value guarantee; and

• (d) payments for purchase or termination options that are reasonably certain to be exercised.

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

• (a) there is a change in future lease payments arising from the change in an index or rate; or

• (b) there is a change in the Group’s estimate of the amount expected to be payable under a residual value guarantee; or

• (c) there is a change in the lease term resulting from a change of its assessment on whether it will exercise an option to purchase the underlying asset; or

• (d) there is a change of its assessment on whether it will exercise a extension or termination option; or

• (e) there is any lease modifications

When the lease liability is remeasured, other than lease modifications, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or in profit and loss if the carrying amount of the right-of-use asset has been reduced to zero.

When the lease liability is remeasured to reflect the partial or full termination of the lease for lease modifications that decrease the scope of the lease, the Group accounts for the remeasurement of the lease liability by decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognize in profit or loss any gain or loss relating to the partial or full termination of the lease.

The Group presents right-of-use assets that do not meet the definition of investment and lease liabilities as a separate line item respectively in the statement of balance sheet.

The Group has elected not to recognize right-of-use assets and lease liabilities for short-term leases of office, warehouse, parking space, staff dormitory and printer that have a lease term of 12 months or less and leases of low-value assets. The Group recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

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ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

B. As a lessor

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

(12) Investment Property

Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of business, use in the production or supply of goods or services, or for administrative purposes. Investment property is measured at cost on initial recognition, and subsequently at cost, less accumulated depreciation and accumulated impairment losses. Depreciation expense is calculated based on the depreciation method, useful life, and residual value which are the same as those adopted for property, plant and equipment.

Any gain or loss on disposal of an investment property (calculated as the difference between the net proceeds from disposal and the carrying amount) is recognized in profit or loss.

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

• (13) Intangible assets

• A. Recognition and measurement

Goodwill arising on the acquisition of subsidiaries is measured at cost, less accumulated impairment losses.

Expenditure on research activities is recognized in profit or loss as incurred.

Development expenditure is capitalized only if the expenditure can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable and the Group intends to, and has sufficient resources to, complete development and to use or sell the asset. Otherwise, it is recognized in profit or loss as incurred. Subsequent to initial recognition, development expenditure is measured at cost, less accumulated amortization and any accumulated impairment losses.

Other intangible that are acquired by the Group and have finite useful lives are measured at cost less accumulated amortization and any accumulated impairment losses.

• B. Subsequent expenditure

Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognized in profit or loss as incurred.

~23~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

C. Amortization

Amortization is calculated over the cost of the asset, less its residual value, and is recognized in profit or loss on a straight-line basis over the estimated useful lives of 1 to 20 years of intangible assets , other than goodwill, from the date that they are available for use.

Amortization methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

(14) Impairment of non-financial assets

At each reporting date, the Group reviews the carrying amounts of its non-financial assets (other than inventories, contract assets, and deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset’ s recoverable amount is estimated. Goodwill is tested annually for impairment.

For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or cash generating units ("CGUs"). Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination.

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount.

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

An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

• (15) Provisions

A provision is recognized if, as a result of a past event, the Group has a present obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects the current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognized as finance cost.

A. Warranties

A provision for warranties is recognized when the underlying products or services are sold, based on historical warranty data and a weighting of all possible outcomes against their associated probabilities.

~24~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

B. Onerous contracts

A provision for onerous contracts is recognized when the expected benefits to be derived by the Group from a contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established, the Group recognizes any impairment loss on the assets associated with that contract.

• (16) Revenue for contracts with customers

Revenue is measured based on the consideration to which the Group expects to be entitled in exchange for transferring goods or services to a customer. The Group recognizes revenue when it satisfies a performance obligation by transferring control of a good or a service to a customer. The accounting policies for the Group’s main types of revenue are explained below.

A. Sale of goods

The Group involves in research, develop, design, manufacture and sale of broadband products, wireless networking products, and computer network system equipment and components. The Group recognizes the revenue when the control of the product is transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed, or the Group has objective evidence that all criteria for acceptance have been satisfied.

The Group’ s broadband products, wireless network products and computer network system equipment and its components are subject to standard warranty and are therefore subject to refund obligations.

The warranty liabilities have been recognized for this obligation, please refer to Note 6 (17).

• B. Product development services

The Group provides enterprise product development and recognizes the relevant revenue during the financial reporting period in which the services provided. Fixed price contracts are based on the proportion of services actually provided as a percentage of total services as of the reporting date.

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

Under the fixed price contract, the customer pays a fixed amount in accordance with the agreed time schedule. When the services provided exceed the payment, the contract assets are recognized; if the payment exceeds the services provided, the contract liabilities are recognized.

If the contract includes an hourly fee, revenue is recognized in the amount to which the Group has a right to invoice. Customers are invoiced on a monthly basis and consideration is payable when invoiced.

~25~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• C. Service revenue

The Group renders maintenance services during the contract periods and recognizes revenue during the reporting period in which the services are rendered.

• D. Project contracts for system development and integration

Revenue is recognized when the control over a product or a project system has been transferred to the customer. The transfer of control refers to the situation where the products or the project systems have been delivered to the customers, and there is no unfulfilled performance obligation which will affect customers’ acceptance of the products. Delivery occurs when the customer has accepted the goods in accordance with the terms of sales, the risks of obsolescence and loss have been transferred to the customer, and the Group has objective evidence that all criteria for acceptance have been met.

A receivable is recognized when the goods are accepted as this is the point in time that the Group has a right to an amount of consideration that is unconditional. Prepayments was classified as contract liabilities and the Group recognizes revenue when it satisfies a performance obligation. A provision for onerous contracts is recognized when the Group expects the unavoidable costs of performing the obligations under a contract exceed the economic benefits expected to be received under the contract.

• E. Financing component

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

• (17) Government grants

The Group recognizes an unconditional government grant related to the research and development in profit or loss as other income when the grant becomes receivable. Grants that compensate the Group for expenses or losses incurred are recognized in profit or loss on a systematic basis in the periods in which the expenses or losses are recognized.

• (18) Employee benefits

• A. Defined contribution plans

Obligations for contributions to defined contribution plans are expensed as the related service is provided. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in future payments is available.

~26~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

B. Defined benefit plans

The Group’s net obligation in respect of defined benefit plans is calculated separately for each the plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.

The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Group, the recognized asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements.

Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in other comprehensive income, and accumulated in retained earnings within equity. The Group determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset). Net interest expense and other expenses related to defined benefit plans are recognized in profit or loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognized immediately in profit or loss. The Group recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.

C. Short-term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

(19) Income tax

Income taxes comprise current taxes and deferred taxes. Except for expenses related to business combinations or recognized directly in equity or other comprehensive income, all current and deferred taxes are recognized in profit or loss.

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

Current taxes comprise the expected tax payables or receivables on the taxable profits (losses) for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payables or receivables are the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date.

~27~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

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

• B. temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and

C. taxable temporary differences arising on the initial recognition of goodwill.

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

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

• A. The Group has a legally enforceable right to set off current tax assets against current tax liabilities; and

• B. The deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either:

• (a) the same taxable entity; or

• (b) different taxable entities which intends to settle current tax assets and liabilities on a net basis, or to realize the assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

Deferred tax assets are recognized for the carry forward of unused tax loses, unused tax credits, and deductible temporary differences to the extent that it is probable that future taxable profit will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefits will be realized; or such reductions are reversed when the probability of future taxable profits improves.

(20) Business combination

The Group accounts for business combinations using the acquisition method. The goodwill arising from an acquisition is measured as the excess of (i) the consideration transferred (which is generally measured at fair value) and (ii) the amount of non-controlling interest in the acquiree, both over the identifiable net assets acquired at the acquisition date. If the amount calculated above is a deficit balance, the Group recognized that amount as a gain on a bargain purchase in profit or loss immediately after reassessing whether it has correctly identified all of the assets acquired and all of the liabilities assumed.

All acquisition-related transaction costs are expensed as incurred, except for the issuance of debt or equity instruments.

~28~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

For each business combination, the Group measures any non-controlling interests in the acquiree either at fair value or at the non-controlling interest’ s proportionate share of the acquiree’ s identifiable net assets, if the non-controlling interests are present ownership interests and entitle their holders to a proportionate share of the acquire’ s net assets in the event of liquidation. Other components of non-controlling interests are measured at their acquisition-date fair values, unless another measurement basis is required by the IFRS Accounting Standards endorsed by the FSC.

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

• (21) Earnings per share

The Group discloses the Alpha's basic and diluted earnings per share attributable to ordinary shareholders of Alpha. Basic earnings per share is calculated as the profit attributable to the ordinary shareholders of Alpha divided by the weighted-average number of ordinary shares outstanding. Diluted earnings per share is calculated as the profit attributable to ordinary shareholders of Alpha, divided by the weighted-average number of ordinary shares outstanding after adjustment for the effects of all potentially dilutive ordinary shares, such as employee remuneration through the issuance of shares.

• (22) Operating segment

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the Group). Operating results of the operating segment are regularly reviewed by the Group’s chief operating decision maker to make decisions about resources to be allocated to the segment and to assess its performance. Each operating segment consists of standalone financial information.

5. Significant accounting assumptions and judgments, and major sources of estimation uncertainty:

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

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

~29~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The information involving significant judgments in accounting policies that has a material impact on the amounts recognized in these consolidated financial statements is as follows:

(1) Revenue recognition

The Group recognizes revenue when it satisfies a performance obligation by transferring control of a good or a service to a customer. Please refer to note 4(16).

(2) Valuation of inventories

Inventories are measured at the lower of cost or net realizable value, the Group uses judgments and estimates to determine the net realizable value of inventories for obsolescence and unmarketable items at the end of the reporting period. It also writes down the cost of inventories to net realizable value. The net realizable value of the inventory is mainly determined based on assumptions as to future demand within a specific time horizon. However, due to the rapid industrial transformation, there may be significant changes in the net realizable value of inventories. For the estimation of the valuation of inventory, please refer to note 6(4).

(3) Impairment assessment of goodwill

The assessment of impairment of goodwill requires the Group to make subjective judgments to identify cash-generating units, allocate the goodwill to relevant cash-generating units, and estimate the recoverable amount of relevant cash-generating units. For the estimation of the impairment assessment of goodwill, please refer to note 6(13).

The Group’s accounting policies include measuring financial and non-financial assets and liabilities at fair value through profit or loss.The Group’s financial division conducts independent verification on fair value by using data sources that are independent, reliable, and representative of exercise prices. This financial division also periodically adjusts valuation models, conducts retrospective testing, renews input data for valuation models, and makes all other necessary fair value adjustments to assure the rationality of fair value. The Group strives to use market observable inputs when measuring assets and liabilities. Different levels of the fair value hierarchy to be used in determining the fair value of financial instruments are as follows:

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

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

• Level 3: inputs for the assets or liabilities that are not based on observable market data. Please refer to note 6(31) of the financial instruments.

~30~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

6. Explanation of significant accounts:

• (1) Cash and cash equivalents

Petty cash and cash on hand Checking and savings accounts Time deposits Cash equivalents－repurchase agreements Cash and cash equivalents in the consolidated statement of cash flows	December 31, 2025 $ 1,325 3,442,184 1,094,074 380,000 $ 4,917,583	December 31, 2024
		1,368 2,302,295 1,423,616 230,000
		3,957,279

Please refer to note 6(31) for the interest rate risk and sensitivity analysis of the financial assets and liabilities of the Group.

As of December 31, 2025 and 2024, deposits with original maturities for more than three months were $3,362 thousand, and $73,355 thousand respectively, and were recorded in financial assets measured at amortized cost. Please refer to note 6(5).

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

Financial assets mandatorily measured at fair value through profit or loss – current: Derivative instruments not used for hedging Forward exchange contracts Foreign exchange swaps Non-derivative financial assets Stocks listed on domestic markets Total Financial assets mandatorily measured at fair value through profit or loss – non current: Non-derivative financial assets Unlisted stocks Funds Total Financial liabilities held for trading－current: Forward exchange contracts Foreign exchange swaps Total	December 31, 2025 $ 6,247 2,408 4,400 $ 13,055 $ 47,868 87,117 $ 134,985 $ 68 930 $ 998	December 31, 2024
		65 225 4,902
		5,192
		- 52,620
		52,620
		5,431 18,327
		23,758

~31~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Group uses derivative financial instruments to hedge the certain currency risk arising from its operating activities. The following derivative instruments, which were not qualified for hedge accounting, held by the Group, were recognized as mandatorily measured financial assets at fair value through profit or loss and held-for-trading financial liabilities:

Forward exchange contracts Forward exchange contracts Foreign exchange swaps Foreign exchange swaps Forward exchange contracts Forward exchange contracts Forward exchange contracts Foreign exchange swaps Foreign exchange swaps		December 31, 2025 Currency Maturity date USD to CNY January 2026 USD to VND January 2026 NTD to CNY January 2026 USD to NTD January 2026~February 2026 December 31, 2024
	Nominal principal (in thousands) USD 26,500 USD 1,400 CNY 10,000 USD 35,000
	Nominal principal (in thousands) USD 22,000 USD 5,000 USD 3,000 CNY 10,000 USD 74,000	Currency Maturity date USD to CNY January 2025~March 2025 NTD to USD January 2025 USD to VND January 2025 NTD to CNY January 2025 USD to NTD January 2025~February 2025

(3) Notes and accounts receivable, net (including related parties)

Notes and accounts receivable Less: loss allowances	December 31, 2025 $ 4,639,815 (71,523) $ 4,568,292	December 31, 2024 3,982,749 (12,037) 3,970,712

The overdue accounts receivable was reclassified to overdue receivables under financial assets － measured at amortized cost non-current and loss allowances were fully provided, please refer to note 6(5).

The Group applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables. To measure the expected credit losses, notes and accounts receivable have been grouped based on shared credit risk characteristics and the days past due, as well as the incorporated forward-looking information, including macroeconomic and relevant industry information.

~32~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The analysis of expected credit loss on notes and accounts receivable (including overdue receivables and accounts receivable from related parties) was as follows:

Current Less than 90 days past due 91 to 180 days past due More than 181 days past due Current Less than 90 days past due More than 181 days past due	December 31, 2025	December 31, 2025
	Gross carrying amount Weighted- average loss rate $ 3,808,952 0.00% 236,605 0.22% 361,109 5.95% 300,037 38.80% $ 4,706,703 December 31, 2024		Loss allowance provision
			- 511 21,493 116,407
			138,411
		Weighted- average loss rate 0.00% 0.42% 77.99%	Loss allowance provision
			- 1,398 78,596
			79,994

The movements in the allowance for notes and accounts receivables (including the overdue receivables) were as follows:

Balance at January 1 Impairment losses recognized Amounts written off Effect of changes in exchange rates Balance at December 31	2025 $ 79,994 65,604 (7,229) 42 $ 138,411	2024
		79,561 281 - 152
		79,994

The Group’s accounts receivable and accounts receivable from related parties were not discounted and pledged as collateral.

(4) Inventories

Raw materials Work in progress and semi-finished products Finished goods and merchandises Consignment and project inventory	December 31, 2025 $ 3,719,396 526,602 1,987,605 524,625 $ 6,758,228	December 31, 2024
		4,028,053 441,064 1,819,096 641,258
		6,929,471

~33~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Consigned goods and project inventory refers to the labor cost and related inventory that have been invested in projects by the subsidiary of the Group, namely Interactive Digital, but have not yet been recognized as revenue.

The components of operating cost were as below:

recognized as revenue. The components of operating cost were as below:
Cost of goods sold Provision for inventory obsolescence and devaluation loss	For the years ended December 31,
	2025 $ 18,553,093 11,441 $ 18,564,534	2024
		17,452,024 62,202
		17,514,226

As of December 31, 2025 and 2024, the Group’s inventories were not pledged.

• －

• (5) Financial assets measured at amortized cost current and non-current

Current: Time deposits Non-current: Restricted deposits Refundable deposits Overdue receivables Less: loss allowances	December 31, 2025 $ 3,362 $ 25,645 161,448 66,888 (66,888) $ 187,093	December 31, 2024 73,355 28,140 185,917 67,957 (67,957) 214,057

The Group had assessed that these financial assets were held-to-maturity to collect contractual cash flows, which consisted solely of payments of principal and interest on principal amount outstanding. Therefore, these investments were classified as financial assets measured at amortized cost.

As of December 31, 2025 and 2024, the Group held bank time deposits with variable interest rates, and the average interest rates ranged were between 0.2%~4.33% and 0.1%~4.61%, respectively.

For the restricted deposits and refundable deposits, please refer to note 8.

• (6) Non-current assets held for sale

On December 28, 2023, the Board of Directors had approved the resolution and made the agreement to dispose the entire shares of D-Link Asia and Alpha Dongguan to non-related party. This transaction has been completed in the second quarter of 2024. Based on the contract between the two parties, the final settlement of the transaction price will be completed within six months following the delivery date. For the year ended December 31, 2024, the disposal gain of $453,891 thousand was generated and recognized under the "Other gains and losses".

~34~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

As of May 30, 2024, the date on which control was lost, the asset and liability amounts of D-Link Asia and Alpha Dongguan were as follows:

Cash and cash equivalents Other current assets Property, plant and equipment Right-of-use asset Intangible assets Other non-current assets Total assets Accrued expenses and other payables Total liabilities Net asset	May 30, 2024
	$ 32,218 62,833 15,445 7,270 1,995 42 $ 119,803 $ 6,748 $ 6,748 $ 113,055

(7) Business combination

On November 14, 2024 (the acquisition date), Alpha resolved at its board meeting to purchase 7,127 thousand shares of Fiber Logic at $71.80 per share, representing 31.66% of its outstanding shares. Additionally, its subsidiary, Interactive Digital acquired 1,350 thousand shares, accounting for 6.00% of the outstanding shares, for a total consideration of $608,618 thousand. Thereafter, the Group owns more than half of the board seats of the entity in the following month; consequently, Fiber Logic is considered a subsidiary in the consolidated financial statements. Fiber Logic is engaged in broadband communication products and services. The acquisition of Fiber Logic enables the Group to accelerate its business deployment in the field and to enhance competitiveness by offering customers a diversified range of products and services.

The following table summarizes the acquisition date fair value of major class of consideration transferred, recognized amounts of assets acquired and liabilities assumed and goodwill arising from the acquisition.

• A. The following table summarizes the acquisition date fair value of major class of consideration transferred.

Cash Dividend receivables Total	Amount $ 608,618 (16,953) $ 591,665

~35~

ALPHA NETWORKS INC. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

• B. The following table summarizes the recognized amounts of assets acquired and liabilities assumed at the acquisition date.

Cash and cash equivalents Notes and accounts receivable, net Inventories Other current assets Property, plant and equipment Right-of-use assets Intangible assets Deferred tax assets Other non-current assets Notes and accounts payable Lease liabilities - current and non-current Other current and non-current liabilities Total identifiable net assets acquired Goodwill arising from the acquisition has been recognized as follows: Consideration transferred Add: Non-controlling interest in the acquiree, if any (proportionate share of the fair value of the identifiable net assets) Less: Fair value of identifiable net assets Goodwill

Amount $ 241,905 10,285 251,802 31,543 46,068 22,434 330,866 12,813 22,401 (11,281) (22,867) (120,272) $ 815,697 Amount $ 591,665 508,551 (815,697) $ 284,519

• C. Goodwill arising from the acquisition has been recognized as follows:

Goodwill primarily arises from the market share and profitability of Fiber Logic’ s products, which are expected to benefit from the synergies of the integration between the Group and Fiber Logic. No tax impact is expected on the recognition of goodwill.

D. Pro forma information:

From the acquisition date to December 31, 2024, Fiber Logic has been included in the Group’s consolidated entities and has contributed the revenue of $99,872 thousand and the net income of $31,880 thousand to the Group. If this acquisition had occurred on January 1, 2024, the management estimates that consolidated revenue would have been $21,813,052 thousand and consolidated net income would have been $389,965 thousand. In determining these amounts, the management has assumed that the fair value adjustments, determined provisionally, that arose on the acquisition date would have been the same if the acquisition had occurred on January 1, 2024.

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ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (8) Non-current financial assets at fair value through other comprehensive income

Domestic unlisted stocks	December 31, 2025 $ 90,897	December 31, 2024
		110,711

The Group has held these equity instruments as long-term strategic investments rather than for trading purposes and, therefore, has designated them as measured at fair value through other comprehensive income.

The Group has sold equity instruments measured at fair value through other comprehensive income in 2025 and 2024, with the fair values of $26,643 thousand and $31,974 thousand, respectively. The accumulated gains were $6,719 thousand and $544 thousand and have been transferred from other equity to retained earnings.

As of December 31, 2025 and 2024, the Group’s financial assets above were not pledged.

• (9) Material non-controlling interests of subsidiaries

The material non-controlling interests of subsidiaries were as follows:

Subsidiaries Hitron Technologies	Main operation place Taiwan	Percentage of non-controlling interests December 31, 2025 December 31, 2024 % 37.76 % 37.76

The following information of the aforementioned subsidiaries have been prepared in accordance with the IFRSs endorsed by the FSC. The fair value adjustment made during the acquisition and relevant difference in accounting principles between the Group as at the acquisition date are included in these information. Intragroup transactions were not eliminated in this information.

Hitron Technologies and its subsidiaries’ collective financial information:

Current assets Non-current assets Current liabilities Non-current liabilities Net assets Net assets of non-controlling interests Net assets of investees Book value of non-controlling interests	December 31, 2025 $ 8,866,618 3,260,000 (4,492,153) (398,941) $ 7,235,524 $ 1,535,160 $ 5,700,364 $ 3,404,370	December 31, 2024
		7,704,458 3,578,770 (3,162,776) (559,476)
		7,560,976
		1,558,727
		6,002,249
		4,066,920

~37~

ALPHA NETWORKS INC. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Operating revenue Profit (loss) Other comprehensive income (loss) Total comprehensive income (loss) Loss attributable to non-controlling interests Total comprehensive income (loss), attributable to non- controlling interests Net cash flows from operating activities Net cash flows from investing activities Net cash flows from (used in) financing activities Effect of exchange rate changes on cash and cash equivalents Net increase in cash and cash equivalents Dividends paid to non-controlling interests

For the years ended December 31, 2025 2024 $ 8,880,244 9,088,215 $ (24,151) 29,378 (102,023) 163,087 $ (126,174) 192,465 $ (101,310) (58,117) $ (139,904) 18,156 $ 17,538 995,593 32,104 86,476 1,106,227 (579,109) (1,874) (130,855) $ 1,153,995 372,105 $ (185,584) (202,037)

2025 $ 8,880,244 $ (24,151) (102,023) $ (126,174) $ (101,310) $ (139,904) $ 17,538 32,104 1,106,227 (1,874) $ 1,153,995 $ (185,584)

• (10) Property, plant and equipment

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

Cost: Balance at January 1, 2025 Additions Disposals Reclassification to investment property Effect of changes in exchange rates and others Balance at December 31, 2025 Balance at January 1, 2024 Acquired from business combination Additions Disposals Effect of changes in exchange rates and others Balance at December 31, 2024 Depreciation and impairment loss: Balance at January 1, 2025 Depreciation Disposals Reclassification to investment property Effect of changes in exchange rates and others Balance at December 31, 2025 Balance at January 1, 2024 Acquired from business combination Depreciation Disposals Effect of changes in exchange rates and others Balance at December 31, 2024	Land $ 883,522 - - - (2,833) $ 880,689 $ 879,267 - - - 4,255 $ 883,522 $ - - - - - $ - $ - - - - - $ -	Building 4,719,247 29,233 (8,496) (654,521) (100,603) 3,984,860 4,148,033 - 442,059 (3,669) 132,824 4,719,247 2,025,216 168,738 (8,496) (197,882) (19,775) 1,967,801 1,801,148 - 176,291 (3,442) 51,219 2,025,216	Machinery and equipment 2,567,765 86,801 (170,166) - (19,195) 2,465,205 2,466,053 68,890 93,903 (147,941) 86,860 2,567,765 1,746,322 219,244 (160,880) - 2,722 1,807,408 1,553,313 31,734 223,602 (109,146) 46,819 1,746,322	Office, transportation and other facilities 491,459 74,075 (11,871) - (4,367) 549,296 438,508 12,819 70,568 (41,084) 10,648 491,459 325,264 59,448 (10,893) - (1,418) 372,401 304,186 3,907 50,930 (40,461) 6,702 325,264	Total 8,661,993 190,109 (190,533) (654,521) (126,998) 7,880,050 7,931,861 81,709 606,530 (192,694) 234,587 8,661,993 4,096,802 447,430 (180,269) (197,882) (18,471) 4,147,610 3,658,647 35,641 450,823 (153,049) 104,740 4,096,802

~38~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Carrying amounts: Balance at December 31, 2025 Balance at December 31, 2024 Balance at January 1, 2024	Land $ 880,689 $ 883,522 $ 879,267	Building 2,017,059 2,694,031 2,346,885	Machinery and equipment 657,797 821,443 912,740	Office, transportation and other facilities 176,895 166,195 134,322	Total 3,732,440
					4,565,191
					4,273,214

In June 2025, Hitron Technologies, the Company’s subsidiary, resolved to lease certain property and right-of-use assets in Vietnam to a third party, and the property was reclassified as investment property based on its book value at the time of change of use.

As of December 31, 2025 and 2024, the Group’s property, plant and equipment were not pledged.

• (11) Right-of-use assets

The Group leases many assets including land, buildings, transportation and other equipment. Information about leases for which the Group as a lessee was presented below:

Cost: Balance at January 1, 2025 Additions Disposals Reclassification to investment property Effect of changes in exchange rates and others Balance at December 31, 2025 Balance at January 1, 2024 Acquired from business combination Additions Disposals Effect of changes in exchange rates and others Balance at December 31, 2024	Land $ 612,153 - - (122,810) (18,888) $ 470,455 $ 593,101 - - (3,262) 22,314 $ 612,153	Buildings 174,344 41,379 (6,410) - (7,978) 201,335 148,062 35,958 5,448 (20,105) 4,981 174,344	Transport- ation and other equipment 16,141 3,610 (6,478) - - 13,273 17,933 - 4,954 (6,096) (650) 16,141	Total 802,638 44,989 (12,888) (122,810) (26,866)
				685,063
				759,096 35,958 10,402 (29,463) 26,645
				802,638

~39~

ALPHA NETWORKS INC. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Depreciation: Balance at January 1, 2025 Depreciation Disposals Reclassification to investment property Effect of changes in exchange rates and others Balance at December 31, 2025 Balance at January 1, 2024 Acquired from business combination Depreciation Disposals Effect of changes in exchange rates and others Balance at December 31, 2024 Carrying amount: Balance at December 31, 2025 Balance at December 31, 2024 Balance at January 1, 2024	Land $ 82,947 14,369 - (18,396) (1,833) $ 77,087 $ 64,872 - 16,698 (406) 1,783 $ 82,947 $ 393,368 $ 529,206 $ 528,229	Buildings 60,780 38,803 (6,413) - (3,425) 89,745 34,963 13,524 32,351 (20,105) 47 60,780 111,590 113,564 113,099	Transport- ation and other equipment 8,797 3,570 (6,478) - - 5,889 10,127 - 4,511 (5,841) - 8,797 7,384 7,344 7,806	Total 152,524 56,742 (12,891) (18,396) (5,258) 172,721 109,962 13,524 53,560 (26,352) 1,830 152,524 512,342 650,114 649,134

(12) Investment Property

Cost: Balance at January 1, 2025 Reclassification from property, plant and equipment Reclassification from right-of-use assets Effect of changes in exchange rates Balance at December 31, 2025	Owned property Building $ - 654,521 - 20,481 $ 675,002	Right-of-use assets Land - - 122,810 6,263 129,073	Total
			- 654,521 122,810 26,744
			804,075

~40~

ALPHA NETWORKS INC. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Depreciation: Balance at January 1, 2025 Reclassification from property, plant and equipment Reclassification from right-of-use assets Depreciation Effect of changes in exchange rates Balance at December 31, 2025 Carrying amount: Balance at December 31, 2025 Fair value: Balance at December 31, 2025	Owned property Building $ - 197,882 - 26,685 (1,687) $ 222,880 $ 452,122	Right-of-use assets Land Total - - - 197,882 18,396 18,396 1,831 28,516 1,013 (674) 21,240 244,120 107,833 559,955 $ 805,551

Investment properties include owned assets held by the Group as well as right-of-use assets representing leased rights, which are leased to third parties under operating leases. These assets are reclassified as investment properties at their carrying amount when there is a change in use. The lease agreements stipulate that the lessee has the option to extend the lease upon expiration. For related information, please refer to note 6(20).

The fair value of investment properties is based on valuations conducted by independent appraisers who possess recognized professional qualifications and have recent experience in the location and type of the investment properties being valued. The valuation is conducted based on market value.

As of December 31, 2025, the Group’s investment properties were not pledged.

• (13) Intangible assets

The carrying amount of intangible assets of the Group were as follow:

Cost: Balance at January 1, 2025 Additions Derecognition Effect of changes in exchange rates and others Balance at December 31, 2025 Balance at January 1, 2024 Acquired from business combination Additions Derecognition Effect of changes in exchange rates and others Balance at December 31, 2024	Core Technology $ 385,957 - - - $ 385,957 $ 220,281 165,676 - - - $ 385,957	Brand Name 387,359 - (269) - 387,090 229,877 157,482 - - - 387,359	Customer relationship 396,949 - - - 396,949 396,949 - - - - 396,949	Goodwill 863,419 - - - 863,419 578,900 284,519 - - - 863,419	Software application and others 557,237 82,681 (144,576) (3,877) 491,465 498,632 53,860 90,615 (91,564) 5,694 557,237	Total 2,590,921 82,681 (144,845) (3,877)
						2,524,880
						1,924,639 661,537 90,615 (91,564) 5,694
						2,590,921

~41~

ALPHA NETWORKS INC. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Amortization and impairment: Balance at January 1, 2025 Amortization Derecognition Effect of changes in exchange rates and others Balance at December 31, 2025 Balance at January 1, 2024 Acquired from business combination Amortization Derecognition Effect of changes in exchange rates and others Balance at December 31, 2024 Carrying amount Balance at December 31, 2025 Balance at December 31, 2024 Balance at January 1, 2024	Core Technology $ 159,079 17,051 - - $ 176,130 $ 125,874 315 32,890 - - $ 159,079 $ 209,827 $ 226,878 $ 94,407	Brand Name 116,872 38,725 (269) - 155,328 91,950 622 24,300 - - 116,872 231,762 270,487 137,927	Customer relationship 220,527 44,105 - - 264,632 176,422 - 44,105 - - 220,527 132,317 176,422 220,527	Goodwill - - - - - - - - - - - 863,419 863,419 578,900	Software application and others 421,622 144,632 (144,576) (3,286) 418,392 345,264 45,215 118,476 (91,530) 4,197 421,622 73,073 135,615 153,368	Total 918,100 244,513 (144,845) (3,286) 1,014,482 739,510 46,152 219,771 (91,530) 4,197 918,100 1,510,398 1,672,821 1,185,129

A. Amortizaton

The amortization of intangible assets is included in the following line items of statement of comprehensive income:

Operating cost Operating Expense Total	For the years ended December 31,	For the years ended December 31,
	2025 $ 1,854 242,659 $ 244,513	2024
		4,747 215,024
		219,771

B. Impairment test for Goodwill

As of December 31, 2025 and 2024, the goodwill arising from business combination was allocated to the following CGUs (or groups of CGUs) because these CGUs are expected to benefit from the synergies of the combination.

Interactive Digital Hitron Technologies IP Camera Fiber Logic	December 31, 2025 $ 354,656 89,361 134,883 284,519 $ 863,419	December 31, 2024
		354,656 89,361 134,883 284,519
		863,419

~42~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

As of December 31, 2025 and 2024, the recoverable amount of these CGUs have been determined based on a value in use calculation, and the recoverable amount of these were greater than their carrying amount, which no impairment loss was recognized.

The key assumptions used in the estimation of value in use were as follows:

IP Camera Discount rate Terminal value growth rate Interactive Digital Discount rate Terminal value growth rate Hitron Technologies Discount rate Terminal value growth rate Fiber Logic Discount rate Terminal value growth rate	December 31, 2025 December 31, 2024 % 11.16 % 8.13 % 2.00 % 2.45 % 10.19 note % 2.00 note % 11.41 % 9.76 % 2.00 % 2.45 % 11.89 note % 2.00 note

Note: The recoverable amount was based on fair value less costs of disposal.

As of December 31, 2025 and 2024, the following is the key assumption of the estimation of value in use:

The discount rate was a pre-tax measure based on the rate of 10-year government bonds issued by the government in the relevant market and in the same currency as the cash flows, adjusted for a risk premium to reflect both the increased risk of investing in equities generally and the systemic risk of the specific CGU.

Cash flow projection was based on a five-year financial projection approved by the management.

C. Collateral

As of December 31, 2025 and 2024, the Group’s intangible assets were not pledged.

~43~

ALPHA NETWORKS INC. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(14) Other current assets and other non-current assets

The other current assets and other non-current assets of the Group were as follows:

Prepayments for construction and equipment Business tax receivable Income tax receivable Advance payment Other receivables (including related parties) Prepaid expenses Others Other current assets Other non-current assets Short-term borrowings Unsecured bank loans Unused short-term credit lines (including long-term borrowings) Range of interest rates	December 31, 2025 $ 12,403 120,939 56,433 45,688 503,959 114,628 21,700 $ 875,750 $ 853,846 21,904 $ 875,750 December 31, 2025 $ 2,546,960 $ 16,457,933 1.81%~ 7.00%	December 31, 2024
		33,816 100,927 59,432 8,630 459,259 132,831 13,830
		808,725
		767,495 41,230
		808,725
		December 31, 2024
		1,615,357
		14,639,838
		3.90%~ 5.91%

• (15) Short-term borrowings

(16) Long-term borrowings and current portion of long-term borrowings

Unsecured bank loans Subtotal Less: current portion Total Unused long-term credit lines		December 31, 2025
	Currency Rate NTD 1.88%~2.09% NTD 1.88%

~44~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Unsecured bank loans Subtotal Less: current portion Total Unused long-term credit lines		December 31, 2024 Rate Maturity year Amount 2.06% 2026 (note) $ 400,000 1.88% 2027 (note) 30,000 0.5% 2029 (note) 25,000 455,000 (80,000) $ 375,000 $ 10,000
	Currency NTD NTD NTD	Rate 2.06% 1.88% 0.5%

• Note : The principal is repayable in three installments. The first installment becomes due 24 months after the date the loan is first utilized, and the subsequent 6 months is considered as the next period of repayment. The repayment of the loans for the first and second installments is each 20% of the loan amount, while the third installment requires repayment of the remaining principal balance in full. The interest expense is calculated in the monthly basis.

A subsidiary of the Group, Hitron Technologies had signed a long-term borrowing contact with the Export-Import Bank of the Republic of China and KGI Bank in 2023. The financial commitments were as follows for the long-term bank loans with KGI Bank.

• A. Current ratio (current assets/current liabilities) was no less than 100%.

• B. Debt ratio (total liabilities/net value) was no more than 150%.

• C. (Cash and cash equivalents + yearly EBITDA)/(short-term borrowings + medium or long-term borrowings within one year) was no less than one.

The benchmark used to evaluate the aforementioned ratio is based on the Hitron Technologies yearly and half-yearly consolidated financial statements that have been audited or reviewed by the auditor of the Group. When the Group breaches the above financial commitments, it is required to repay all the loans owning to the above banks immediately.

As of December 31, 2025, there have been no breaches of the aforementioned financial commitments by the Group.

• (17) Provisions

Warranties Balance at January 1, 2025 $ 277,312 Provisions made during the year 143,715 Provisions used during the year (160,424) Effect of changes in foreign exchange rates (585) Balance at December 31, 2025 $ 260,018	Onerous Contracts - - - - -	Total 277,312 143,715 (160,424) (585) 260,018

~45~

ALPHA NETWORKS INC. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Warranties Balance at January 1, 2024 $ 390,196 Provisions made during the year 89,591 Provisions used during the year (192,333) Effect of changes in foreign exchange rates (10,142) Balance at December 31, 2024 $ 277,312	Onerous Contracts 11,232 - (11,232) - -	Total 401,428 89,591 (203,565) (10,142) 277,312

The amount of Group’s provisions were as follows:

The amount of Group’s provisions were as follows:
Current Non-current (included in other non-current liabilities)	December 31, 2025 $ 225,449 34,569 $ 260,018	December 31, 2024
		231,771 45,541
		277,312

The provision for warranties relates mainly to network product sold and professional services provide during the years ended December 31, 2025 and 2024. The provision is based on estimates made from historical warranty data associated with similar products and services. The Group expects to settle the majority of the liability over the next year.

The provision for onerous contracts is recognized when the expected benefits to be derived from a non-cancellable contract entered into by Hitron Technologies, a subsidiary of the merged company, with a supplier are lower than the unavoidable costs of meeting the contract obligations.

• (18) Other current liabilities

Payroll and bonus payable Lease liabilities-current (note 6(19)) Other payables to related parties (note 7) Temporary receipts Business tax payable Others	December 31, 2025 $ 706,654 42,144 1,155 67,550 50,168 125,064 $ 992,735	December 31, 2024
		713,232 35,073 3,983 32,450 32,712 33,454
		850,904

• (19) Lease liabilities

Current (included in other current liabilities) Non-current	December 31, 2025 $ 42,144 273,641 $ 315,785	December 31, 2024
		35,073 287,479
		322,552

For the maturity analysis, please refer to note 6(31).

~46~

ALPHA NETWORKS INC. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

The amounts recognized in profit or loss were as follows:

The amounts recognized in profit or loss were as follows:
Interest expense on lease liabilities Expenses relating to short-term leases and leases of low- value assets	For the years ended December 31,
	2025 $ 9,799 $ 36,899	2024
		10,940
		36,434

The amounts recognized in the statement of cash flows were as follows:

Total cash outflow for leases	For the years ended December 31,	For the years ended December 31,
	2025 $ 84,616	2024
		85,381

A. Real estate leases

The Group leases land for factory and office buildings use. The leases of land typically run for a period of 19 and 39 years. For office building, the terms range between 1 to 5 years, some leases include an option to renew the lease for an additional period of the same duration after the end of the contract term.

Some of the lease payment of the land contract depends on the land price announced by the Science Park, plus adjustments for public facilities construction costs, which are adjusted after amortization. These costs usually occur once a year.

B. Other leases

The Group leases office facilities, transportation equipment, and other assets, with lease terms ranging from three to seven years. In some cases, the Group has options to purchase the assets at the end of the contract term; in other cases, it guarantees the residual value of the leased assets at the end of the contract term.

The Group has elected not to recognize right-of-use assets and lease liabilities for short-term leases or low-value assets of office, warehouse, parking space, staff dormitories and printers.

(20) Operating lease

Hitron Technologies, the Group’s subsidiary, leases out its investment property. Since substantially all the risks and rewards incidental to ownership of the underlying asset have not been transferred, the lease agreements are classified as operating leases. Please refer to note 6(12).

The maturity analysis of lease payments is presented in the following table based on the total undiscounted lease payments to be received after the reporting date:

Less than one year One to two years Above two years Total undiscounted lease payments	December 31, 2025
	$ 87,831 91,784 46,902 $ 226,517

~47~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

For the year ended December 31, 2025, the rental income generated from investment properties was amounted to $42,459 thousand.

• (21) Employee benefits

• A. Defined benefit plans

The recognized liabilities of the defined benefit obligations were consisted of as follows:

Present value of the defined benefit obligations Fair value of plan assets Net defined benefit liabilities	December 31, 2025 $ 241,090 (189,621) $ 51,469	December 31, 2024 233,975 (181,326) 52,649

The Group’s employee benefit assets and liabilities were as follows:

Recognized as other non-current assets Recognized as net defined benefit liability	December 31, 2025 $ 5,036 $ 56,505	December 31, 2024
		2,749
		55,398

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

(a) Composition of plan assets

The Group allocates pension funds in accordance with the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund, and such funds are managed by the Bureau of Labor Funds, Ministry of Labor. With regard to the utilization of the funds, minimum earnings shall be no less than the earnings attainable from two-year time deposits with interest rates offered by the local banks.

The Group’s Bank of Taiwan labor pension reserve account balance amounted to $189,621 thousand as of December 31, 2025. For information on the utilization of the labor pension fund assets, including the asset allocation and yield of the fund, please refer to the website of the Bureau of Labor Funds, Ministry of Labor.

~48~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(b) Movements in present value of the defined benefit obligations

The movements in the present value of the defined benefit obligation of the Group were as follows:

Defined benefit obligations at January 1 Liabilities from business combinations Benefits paid from the plan assets Current service costs and interest costs Remeasurements loss (gain): - Actuarial loss (gain) arising from experience adjustment - Actuarial loss (gain) arising from financial assumptions Defined benefit obligation at December 31	For the years ended December 31, 2025 2024 $ 233,975 252,626 - 17,561 (11,512) (20,695) 4,123 3,636 7,483 (9,084) 7,021 (10,069) $ 241,090 233,975
	2025 $ 233,975 - (11,512) 4,123 7,483 7,021 $ 241,090

• (c) Movements in the fair value of the defined benefit plan assets

The movements in the fair value of the defined benefit plan assets of the Group were as follows:

Fair value of plan assets at January 1 Assets from business combinations Interest income Benefits paid from the plan assets Remeasurements gain: - Return on plan assets (excluding current interest income) Contribution made to plan assets Expected return on plan assets Fair value of plan assets at December 31	For the years ended December 31, 2025 2024 $ 181,326 149,690 - 15,849 361 50 (11,512) (20,695) 13,909 12,544 2,780 21,850 2,757 2,038 $ 189,621 181,326
	2025 $ 181,326 - 361 (11,512) 13,909 2,780 2,757 $ 189,621

(d) Expenses recognized in profit or loss

The expenses recognized in profit or loss for the Group were as follows:

Current service costs Net interest of net liabilities for defined benefit obligation Expected return on plan assets	For the years ended December 31, 2025 2024 $ 444 351 3,318 3,235 (2,757) (2,038) $ 1,005 1,548
	2025 $ 444 3,318 (2,757) $ 1,005

~49~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Operating costs Selling expenses Administration expenses Research and development expenses Actual return on plan assets	For the years ended December 31,	For the years ended December 31,
	2025 $ 532 128 (301) 646 $ 1,005 $ 16,638	2024
		576 131 137 704
		1,548
		14,633

(e) Actuarial assumptions

The principal actuarial assumptions at the reporting date were as follows:

Discount rate Future salary increasing rate	December 31, 2025 1.30%~1.50% 3.00%~4.00%	December 31, 2024
		1.60%~1.70% 3.00%~4.00%

The expected contribution to be made by the Group to the defined benefit plans for the oneyear period after the reporting date is $10,216 thousand.

The weighted-average duration of the defined benefit plans is from 8.1 years to 13.6 years.

• (f) Sensitivity analysis

If the actuarial assumptions had changed, the impact on the present value of the defined benefit obligation shall be as follows:

December 31, 2025 Discount rate Future salary increasing rate December 31, 2024 Discount rate Future salary increasing rate	Influences of defined benefit obligations Increase 0.25% Decrease 0.25% $ (6,250) 6,462 $ 5,789 (5,641) $ (6,366) 6,593 $ 5,950 (5,787)
	Increase 0.25% $ (6,250) $ 5,789 $ (6,366) $ 5,950

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown above. The method used in the sensitivity analysis is consistent with the calculation of pension liabilities in the balance sheets.

There is no change in the method and assumptions used in the preparation of sensitivity analysis for 2025 and 2024.

~50~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• B. Defined contribution plans

The domestic entities of the Group contribute 6% of each employee’s monthly wages to the labor pension personal account at the Bureau of Labor Insurance in accordance with the provisions of the Labor Pension Act. Under these defined contribution plans, the Group allocates a fixed amount to the Bureau of Labor Insurance without additional legal or constructive obligation.

The Group’s overseas subsidiaries establish their respective defined contribution plan and their contributions are made in accordance with their local regulations.

The pension costs under defined contribution plans amounted to $166,614 thousand and $163,219 thousand for the years ended December 31, 2025 and 2024, respectively.

• (22) Income taxes

• A. Income tax expenses

The components of income tax expenses (benefit) for the years ended December 31, 2025 and 2024, were as follows:

Current tax expense Current period Adjustment for prior periods Additional 5% surtax on unappropriated retained earnings Deferred tax expense (benefit) Origination and reversal of temporary differences and operating loss carry forward Income tax expense	For the years ended December 31, 2025 2024 $ 74,189 161,157 (26,487) (56,091) 1,176 1,506 48,878 106,572 (76,309) 66,385 $ (27,431) 172,957
	2025 $ 74,189 (26,487) 1,176 48,878 (76,309) $ (27,431)

The amount of income tax expense (benefit) recognized in other comprehensive income for the years ended December 31, 2025 and 2024, were as follows:

Remeasurements of defined benefit plans Exchange differences on translation of foreign financial statements	For the years ended December 31,	For the years ended December 31,
	2025 $ 236 (18,320) $ (18,084)	2024
		162 55,689
		55,851

~51~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Reconciliation of income tax expenses (benefit) and profit (loss) before income tax for the years ended December 31, 2025 and 2024 were as follows:

Profit (loss) before income tax Income tax at Alpha’s domestic tax rate Effect of tax rates variances in foreign jurisdictions Tax effect of withholding tax from foreign income and permanent differences Tax incentives Change in unrecognized temporary differences and others Additional 5% surtax on unappropriated retained earnings Income tax expense (benefit)	For the years ended December 31, 2025 2024 $ (174,485) 514,956 $ (34,897) 102,991 9,374 3,779 26,885 49,940 (2,050) (17,097) (27,919) 31,838 1,176 1,506 $ (27,431) 172,957
	2025 $ (174,485) $ (34,897) 9,374 26,885 (2,050) (27,919) 1,176 $ (27,431)

B. Deferred tax assets and liabilities

• (a) Unrecognized deferred tax assets

Deferred tax assets have not been recognized in respect of the following items:

Tax effect of deductible temporary differences The carryforward of unused tax losses	December 31, 2025 $ 274,660 72,585 $ 347,245	December 31, 2024
		297,701 23,839
		321,540

The R.O.C. Income Tax Act allows net losses, as assessed by the tax authorities, to offset taxable income over a period of ten years for local tax reporting purposes.

Deferred tax assets have not been recognized in respect of these items because it is not probable that future taxable income will be available against which the Group can utilize the benefits therefrom.

As of December 31, 2025, the information of Taiwan subsidiary of the Group’s unused tax losses for which no deferred tax assets were recognized are as follows:

Year of loss 2022	Year of expiry Unrecognized tax loss 2032 $ 3,654

~52~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

As of 31 December 2025, the information of overseas subsidiary of the Group’s unused tax losses for which no deferred tax assets were recognized are as follows:

Year of loss 2022 (filling) 2023 (filling) 2024 (filing)	Year of expiry Unrecognized tax loss 2027 $ 116,041 2028 167,698 2029 75,533 $ 359,272

(b) Unrecognized deferred tax liability

The consolidated entity is able to control the timing of the reversal of the temporary differences associated with investments in subsidiaries as of December 31, 2025 and 2024. Also, management considers it probable that the temporary differences will not reverse in the foreseeable future. Hence, such temporary differences are not recognized under deferred tax liabilities. Details are as follows:

Temporary differences related to investments in subsidiaries	December 31, 2025 $ 147,024	December 31, 2024
		168,495

(c) Recognized deferred tax assets and liabilities

Changes in the amount of deferred tax assets and liabilities for 2025 and 2024 were as follows:

Deferred tax assets:

Provision for inventory devaluation Provision for warranties Exchange different on transaction of foreign financial statement Loss carryforwards Others		January 1, 2024 $ 12,231 72,460 25,574 178,550 207,572 $ 496,387	Acquisition of subsidiary 12,735 78 - - - 12,813	Recognized in profit and loss		Recognized in other comprehensive income	December 31, 2024 49,466 36,504 - 45,089 103,209 234,268	Recognized in profit and loss	Recognized in other comprehensive income	December 31, 2025
				24,500 (36,034) - (133,461) (104,363)		- - (25,574) - - (25,574)		(10,134) 6,793 - 87,025 (22,387) 61,297	- - - - - -	39,332 43,297 - 132,114 80,822 295,565
				(249,358)

Deferred tax liabilities:

Investment accounted for using equity method Goodwill Others		January 1, 2024 $ (224,765) (26,976) (51,002) $ (302,743)	Acquisition of subsidiaries - - - -	Recognized in profit and loss	Recognized in other comprehensive income	Recognized in other comprehensive income	December 31, 2024 (53,794) (26,976) (69,277) (150,047)	Recognized in profit and loss	Recognized in other comprehensive income	December 31, 2025
				170,971 - 12,002 182,973		- - (30,277) (30,277)		(3,653) - 18,665 15,012	- - 18,084 18,084	(57,447) (26,976) (32,528)
										(116,951)

~53~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

As of December 31, 2025, Alpha’s tax returns for the years through 2022 have been assessed by the National Tax Administration.

• (23) Capital and other equity

Reconciliation of shares outstanding for 2025 and 2024 was as follows (in thousands of shares):

Balance at January 1 (As of balance at December 31)	Ordinary share capital	Ordinary share capital
	2025 541,719	2024
		541,719

• A. Ordinary share capital

As of December 31, 2025 and 2024, the authorized capital of Alpha amounted to $8,000,000 thousand, of which included the amount of $500,000 thousand reserved for employee share options; the issued capital amounted to $5,417,185 thousand.

• B. Capital surplus

The balances of capital surplus were as follows:

Capital surplus – premium Difference between consideration and carrying amount arising from acquisition or disposal of shares of subsidiaries Ownership interest in subsidiaries Others	December 31, 2025 $ 2,220,802 3,089 115,220 15,015 $ 2,354,126	December 31, 2024
		2,491,661 - 107,612 15,004
		2,614,277

According to the R.O.C. Company Act, capital surplus can only be used to offset a deficit, and only the realized capital surplus can be used to increase the common stock or be distributed cash dividends. The aforementioned realized capital surplus includes capital surplus resulting from premium on issuance of capital stock and earnings from donated assets received. According to the Regulations Governing the Offering and Issuance of Securities by Securities Issuers, capital increases by transferring paid-in capital in excess of par value should not exceed 10% of the total common stock outstanding.

On February 27, 2025, Alpha resolved on the Board of Directors to distribute a cash dividends of $270,859 thousand, represents $0.5 per share, from the capital surplus for the fiscal year 2024. Related information would be available at the Market Observation Post System website.

On February 25, 2026, Alpha resolved on the Board of Directors to distribute a cash dividends of $270,859 thousand, represents $0.5 per share, from the capital reserve for the fiscal year 2025. The above profit distribution is still subject to approval by the shareholders’ meeting. Related information will be available at the Market Observation Post System website after resolution of the relevant meetings.

~54~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

C. Retained earnings

The Alpha’s articles of incorporation stipulated that Alpha’s earnings before tax, if any, shall be distributed in the following order:

• (a) payment of all taxes;

• (b) offset prior years’ operating losses;

• (c) of the remaining balance, 10% to be appropriated as legal reserve;

• (d) set aside special reserve in accordance with the Securities and Exchange Act or reverse special reserve previously provided; and

• (e) after the above appropriations, current and prior-period earnings that remain undistributed will be proposed for distribution by the Board of Directors, and if the distribution is in form of new shares, the shareholders’ meeting will be held to decide on this matter.

According to the R.O.C. Company Act, Alpha shall distribute the legal reserve and capital surplus as cash dividends fully or partially, if the resolution is passed in majority with two third of attendance on the Board of Directors and is submitted to the shareholders’ meeting.

According to the Alpha’ s dividend policy, the Alpha shall first take into consideration its investing environment, capital management and industry developments, as well as its programs to maintain operating efficiency and meet its capital expenditure budget and financial goals in determining the stock or cash dividends to be paid. The cash dividends shall not be less than 10% of total dividends.

• (a) Legal reserve

When a company incurs no loss, it may, pursuant to a resolution by the shareholders’ meeting, distribute its legal reserve by issuing new shares or by distributing cash, and only the portion of legal reserve which exceeds 25% of capital may be distributed.

(b) Special reserve

In accordance with Ruling issued by the FSC, a portion of current-period earnings and undistributed prior-period earnings shall be reclassified as special earnings reserve during earnings distribution. The amount to be reclassified should equal the current-period total net reduction of other shareholders’equity. Similarly, a portion of undistributed prior-period earnings shall be reclassified as special earnings reserve (and does not qualify for earnings distribution) to account for cumulative changes to other shareholders’ equity pertaining to prior period. Amounts of subsequent reversals pertaining to the net reduction of other shareholders’ equity shall qualify for additional distributions.

~55~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

D. Earnings distribution

Earnings distribution of 2024 was approved by the Board of Directors and shareholders meeting on February 27 and May 27, 2025, respectively. The appropriations and cash dividends per share were as follow:

Legal reserve Reversal of special reserve Cash dividneds	Earnings Distribution Dividends per Share (New Taiwan dollars) $ 25,086 (179,989) 270,859 0.50 $ 115,956

The above-mentioned earnings distribution was consistent with the resolutions approved by the Board of Directors on February 27, 2025.

Earnings distribution of 2023 was approved by the Board of Directors and shareholders meeting on February 27 and May 31, 2024, respectively. The appropriations and cash dividends per share were as follow:

Legal reserve Special reserve Cash dividends	Earnings Distribution Dividends per Share (New Taiwan dollars) $ 54,694 41,434 547,136 1.01 $ 643,264

The above-mentioned earnings distribution of 2023 was consistent with the resolutions approved by the Board of Directors on February 27, 2024.

Related information would be available at the Market Observation Post System website.

The earning and deficit compensation for 2025 was approved by Alpha’s Board of Directors. on February 25, 2026.The above-mentioned compensation is to be presented for approval in the shareholders’ meeting, and the related information will be available at the Market Observation Post System website.

~56~

ALPHA NETWORKS INC. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

E. Other equity and non-controlling interest

Balance at January 1, 2025 Differences on translation of foreign operation financial statements Income tax related to components of other comprehensive income that will be reclassified to profit or loss Remeasurements of defined benefit plans Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income Disposal of investments in equity instruments designated at fair value through other comprehensive income Disposal of shares of subsidiaries Changes in ownership interests in subsidiaries Distribution of cash dividend by subsidiaries Changes in non-controlling interests Balance at December 31, 2025 Differences on translation of foreign operation financial statements Balance at January 1, 2024 $ (243,018) Differences on translation of foreign operation financial statements 278,448 Income tax related to components of other comprehensive income that will be reclassified to profit or loss (55,689) Remeasurements of defined benefit plans - Unrealized losses from financial assets measured at fair value through other comprehensive income - Disposal of investment in equity instruments designated at fair value through other comprehensive income - Changes in ownership interests in subsidiaries - Distribution of cash dividend by subsidiaries - Changes in non-controlling interests - Disposal of subsidiaries (43,579) Balance at December 31, 2024 $ (63,838)	Differences on translation of foreign operation financial statements $ (63,838) (91,599) 18,320 - - - - - - - $ (137,117) Unrealized gains (losses) on financial assets at fair value through other comprehensive income 18,614 - - - (42,225) (544) - - - - (24,155)	Unrealized gains (losses) on financial assets at fair value through other comprehensive income (24,155) - - - 9,661 (6,719) - - - - (21,213) Equity related to non-current assets held for sale (43,579) - - - - - - - - 43,579 -	Non-controlling interests 4,067,793 (35,868) - 1,775 (2,832) - 23,025 (7,608) (199,619) 68,878 3,915,544 Non-controlling interests 3,317,358 67,943 - 243 (6,422) - (18,463) (230,106) 937,240 - 4,067,793	Total 3,979,800 (127,467) 18,320 1,775 6,829 (6,719) 23,025 (7,608) (199,619) 68,878 3,757,214 Total 3,049,375 346,391 (55,689) 243 (48,647) (544) (18,463) (230,106) 937,240 - 3,979,800

~57~

ALPHA NETWORKS INC. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

(24) Earnings per share

• A. Basic earnings per share

Profit (loss) attributable to Alpha’s ordinary shareholders Weighted-average number of shares outstanding (in thousands of shares) Basic earnings (loss) per share (NTD)	For the years ended December 31,	For the years ended December 31,
	2025 $ (193,870) 541,719 $ (0.36)	2024
		218,627
		541,719
		0.40

B. Diluted earnings per share

Profit (loss) attributable to Alpha’s ordinary shareholders Weighted-average number of shares outstanding (in thousands of shares) (basic) Effect of employee remuneration in shares Weighted-average number of shares outstanding (in thousands of shares) (diluted) Diluted earnings (loss) per share (NTD)	For the years ended December 31,	For the years ended December 31,
	2025 $ (193,870) 541,719 - 541,719 $ (0.36)	2024
		218,627
		541,719 1,179
		542,898
		0.40

• (25) Revenues

A. The details of revenues were as follows:

Primary geographical markets: United States Taiwan Japan Others Major products/services lines: LAN/MAN Wireless Broadband Digital Multimedia Others	For the years ended December 31,	For the years ended December 31,
	2025 $ 11,867,824 4,852,840 958,124 4,782,932 $ 22,461,720 $ 8,220,129 9,628,432 1,722,197 2,890,962 $ 22,461,720	2024
		12,144,663 4,635,270 1,084,775 3,578,917
		21,443,625
		7,995,678 9,514,666 1,378,231 2,555,050 21,443,625

~58~

ALPHA NETWORKS INC. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

B. Contract balances

Contract balances
Notes and Accounts receivable (including related parties) Contract liabilities		December 31, 2025 4,568,292 690,523	December 31, 2024 January 1, 2024 3,970,712 4,899,282 1,339,841 1,242,077
	$ $

For details on notes and accounts receivable and loss allowances, please refer to note 6(3).

The amounts of revenue recognized for the year ended December 31, 2025 and 2024 that were included in the contract liabilities balance at the beginning of the period were $933,513 thousand and $604,348 thousand, respectively.

The contract liabilities primarily relate to the advance receipts from the Group’ s product sales contracts, and the Group will recognize the revenue when the product is transferred to the customer.

Contract liabilities related to services primarily arise from advance payments received for product development service contracts of the Group. The Group recognizes these amounts as revenue based on the proportion of the actual services provided to the total services.

(26) Remuneration to employees and directors

On May 27, 2025, Alpha resolved at the shareholders’ meeting to amend its Articles of Incorporation. According to the amended Articles, if Alpha has profit in a given fiscal year, the profit shall be used to offset against any accumulated losses incurred by the Company. The remainder, if any, 10%~22% shall be allocated as employee remuneration (including a minimum of 10% to those base-level employees) and a maximum of 1% as remuneration for directors. However, if the Company still has accumulated losses, an amount sufficient to offset such losses shall be retained in advance. The recipients of the aforementioned employee remuneration, whether in the form of shares or cash, may include employees of the Alpha’s affiliated companies who meet certain specific requirements, with the conditions and allocation methods are authorized to be determined by the Board of Directors. Prior to the amendment, the Articles of Incorporation stipulated that, if Alpha has profit in a given fiscal year, the profit shall be used to offset against any accumulated losses incurred by the Company. The remainder, if any, 10%~22.5% should be allocated as employee remuneration and no more than 1% as remuneration for directors. However, if the Company still had accumulated losses, an amount sufficient to offset such losses should have been retained in advance. The recipients of the aforementioned employee remuneration, whether in the form of shares or cash, could include employees of the Alpha’s affiliated companies who met certain specific requirements.

~59~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

For the year ended December 31, 2025 and 2024, Alpha accrued and recognized its remuneration to employees amounting to $0 thousand and $30,968 thousand, respectively, and the remuneration to directors’ amounting to $0 thousand and $2,323 thousand, respectively. The estimated amounts mentioned above are calculated based on the net profit before tax, excluding the remuneration to employees and directors of the period, multiplied by the percentage of remuneration to employees and directors as specified in the Alpha’s articles. These remuneration are recognized under operating costs or operating expenses. If there is any change on the actual amount incurred and estimated amount, this shall be accounted for change in accounting estimates and recognize as profit or loss in the following year. However, if the Board of Directors resolved that the employee remuneration to be distributed through stock dividends, the closing price of the ordinary share on the day before the Board of Directors’ meeting is used in the calculation for stock remuneration. Related information would be available at the Market Observation Post System website.

The abovementioned remuneration for employees and directors resolved through Board of Directors’ is consistent with the estimated amount as stated in the consolidated financial statements for the years 2025 and 2024.

• (27) Interest income

The details of the Group’s interest income of 2025 and 2024 were as follows:

Interest income from bank deposits and others	For the years ended December 31,	For the years ended December 31,
	2025 $ 79,460	2024
		107,187

• (28) Other income

The details of the Group’s other income of 2025 and 2024 were as follows:

Dividend income Government grants income Others	For the years ended December 31,	For the years ended December 31,
	2025 $ 251 21,779 82,604 $ 104,634	2024
		1,306 50,967 34,690
		86,963

• (29) Other gains and losses

The details of the Group’s other gains and losses of 2025 and 2024 were as follows:

Gain on disposal of subsidiaries, net (note 6(6)) Gain (loss) financial assets at fair value through profit or loss, net Foreign exchange gain (loss), net Others	For the years ended December 31, 2025 2024 $ - 453,891 96,589 (213,900) (132,544) 145,298 (48,156) (28,246) $ (84,111) 357,043
	2025 $ - 96,589 (132,544) (48,156) $ (84,111)

~60~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (30) Finance costs

The details of the Group’s finance costs of 2025 and 2024 were as follows:

Interest expense of borrowings, etc. Interest expense of lease liabilities	For the years ended December 31,	For the years ended December 31,
	2025 $ 127,792 9,799 $ 137,591	2024
		132,884 10,940
		143,824

• (31) Financial instruments

• A. Credit risk

(a) Credit risk exposure

The carrying amounts of financial assets represents the maximum amount exposed to credit risk.

(b) Concentration of credit risk

The major customers of the Group are centralized in the networking related industries. The Group generally sets credit limits to its customers according to their credit evaluations. Therefore, the credit risk of the Group is mainly influenced by the networking industry. As of December 31, 2025 and 2024, 55% and 57%, respectively, of the Group’ s accounts receivable (including related parties) were from the top 7 customers. Although there is a potential in concentration of credit risk, the Group routinely assesses the collectability of its accounts receivable and makes a corresponding allowance for doubtful accounts.

(c) Credit risk of receivable

Risk exposure information for notes receivable and accounts receivable, please refer to note 6(3).

Other financial assets measured at amortized cost include time deposits with maturities for more than three months and restricted deposits, please refer to note 6(5) for details of relevant investments.

All of these financial assets were considered to have low credit risk, and thus, the impairment provision recognized during the period was limited to 12 months expected credit losses. Regarding how the financial instruments are considered to have low credit risk, please refer to note 4(7).

~61~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

B. Liquidity risk

The following are the contractual maturities of financial liabilities, including the estimated interest payments and excluding the impact of netting agreements.

December 31, 2025 Non-derivative financial liabilities Short-term borrowings Accounts payable (including related parties) Other payables to related parties (included in other current liabilities) Accrued expenses Lease liabilities Long-term borrowings (including maturity within 1 year) Derivative financial liabilities Forward exchange contracts: Outflows Inflows Foreign exchange swaps: Outflows Inflows December 31, 2024 Non-derivative financial liabilities Short-term borrowings Accounts payable (including related parties) Other payables to related parties (included in other current liabilities) Accrued expenses Lease liabilities Long-term borrowings (including maturity within 1 year) Derivative financial liabilities Forward exchange contracts: Outflows Inflows Foreign exchange swaps: Outflows Inflows	Carrying amount $ 2,546,960 4,919,034 1,155 499,449 315,785 620,000 68 (6,247) 930 (2,408) $ 8,894,726 $ 1,615,357 3,460,727 3,983 549,804 322,552 455,000 5,431 (65) 18,327 (225) $ 6,430,891	Contractual cash flows (2,583,896) (4,919,034) (1,155) (499,449) (362,675) (634,221) (875,849) 882,028 (1,141,179) 1,142,657 (8,992,773) (1,643,394) (3,460,727) (3,983) (549,804) (379,497) (471,373) (986,087) 980,721 (2,466,722) 2,448,620 (6,532,246)	Within 1 year (2,583,896) (4,919,034) (1,155) (499,449) (46,980) (390,862) (875,849) 882,028 (1,141,179) 1,142,657 (8,433,719) (1,643,394) (3,460,727) (3,983) (549,804) (45,452) (88,807) (986,087) 980,721 (2,466,722) 2,448,620 (5,815,635)	1 to 5 years - - - - (146,630) (243,359) - - - - (389,989) - - - - (142,049) (382,566) - - - - (524,615)	More than 5 years - - - - (169,065) - - - - - (169,065) - - - - (191,996) - - - - - (191,996)

~62~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

C. Currency risk

• (a) Exposure to currency risk

The Group’s significant exposure to foreign currency risk was as follows:

Financial assets Monetary items USD CNY Non-Monetary items USD USD CNY Financial liabilities Monetary items USD Non-Monetary items USD	December 31, 2025 Foreign currency Exchange rate NTD $ 339,050 31.43 10,656,334 7,524 4.4952 33,820 1,523 31.43 47,868 57,000 31.43 Note 10,000 4.4952 Note 335,609 31.43 10,548,180 5,900 31.43 Note	December 31, 2025 Foreign currency Exchange rate NTD $ 339,050 31.43 10,656,334 7,524 4.4952 33,820 1,523 31.43 47,868 57,000 31.43 Note 10,000 4.4952 Note 335,609 31.43 10,548,180 5,900 31.43 Note	December 31, 2024	December 31, 2024
	Foreign currency $ 339,050 7,524 1,523 57,000 10,000 335,609 5,900	Exchange rate 31.43 4.4952 31.43 31.43 4.4952 31.43 31.43	Foreign currency 242,557 1,045 - 8,000 10,000 195,245 96,000	Exchange rate NTD 32.785 7,952,223 4.4915 4,692 - - 32.785 Note 4.4915 Note 32.785 6,401,105 32.785 Note

Note:Please refer to note 6(2) for the information on forward exchange contracts and foreign exchange swaps measured at fair value.

(b) Sensitivity analysis

The Group’s exposure to foreign currency risk arises from the foreign currency exchange gains and losses resulted from the translation of cash and cash equivalents, accounts receivable, other receivables, short-term borrowings, accounts payable and other payables which are denominated in foreign currencies. A strengthening (weakening) of 1% of the NTD against the USD and the CNY as of December 31, 2025 and 2024, would have decreased or increased the profit (loss) before income tax by $1,420 thousand and $15,558 thousand, respectively. The analysis assumed that all other variables remain constant, and performed on the same basis for both periods.

• (c) Foreign exchange gains and losses on monetary items

Since the Group has different functional currencies, the information on foreign exchange gains (losses) on monetary items is disclosed in aggregate amount. For the year ended December 31, 2025 and 2024, foreign exchange gains (losses) (including realized and unrealized portions) amounted to $(132,544) thousand and $145,298 thousand, respectively.

D. Interest rate analysis

Please refer to the notes on liquidity risk management for interest rate exposure of the Group’s financial assets and liabilities. The following sensitivity analysis is based on the exposure to the interest rate risk. Regarding liabilities with variable interest rates, the analysis is based on the assumption that the amount of liabilities outstanding at the reporting date was outstanding throughout the year.

~63~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

If the interest rate had increased or decreased by 0.25%, the Group’s profit before tax would have increased or decreased by $7,744 thousand and $5,176 thousand, respectively for the year ended December 31, 2025 and 2024 with all other variable factors remaining constant. The change is mainly due to the Group’ s short-term borrowings and long-term borrowings with variable rates.

• E. Other market price risk

For the year ended December 31, 2025 and 2024, the sensitivity analyses for the changes in securities price at the reporting date were performed using the same basis for the profit and loss as illustrated below:

Prices of securities at the reporting date Financial assets at fair value through profit or loss Increasing 5% Decreasing 5% Financial assets at fair value through other comprehensive income Increasing 5% Decreasing 5%	For the years ended December 31, 2025 2024 $ 6,969 2,876 $ (6,969) (2,876) $ 4,545 5,536 $ (4,545) (5,536)
	2025 $ 6,969 $ (6,969) $ 4,545 $ (4,545)

• F. Fair value of financial instruments

(a) Fair value hierarchy

The Group considers that the carrying amounts of financial assets and financial liabilities measured at amortized cost approximate their fair values. The fair value of financial assets and liabilities at fair value through profit or loss and financial assets at fair value through other comprehensive income is measured on a recurring basis. Disclosure of fair value information is not required for lease liabilities. The table below analyzes financial instruments that are measured at fair value subsequent to initial recognition.

Financial assets measured at fair value under repetitive basis Financial assets at fair value through profit or loss – current and non-current Financial assets mandatorily at fair value through profit or loss – derivative Non-current financial assets at fair value through other comprehensive income		December 31, 2025	December 31, 2025	December 31, 2025
	Carrying amount $ 139,385 $ 8,655 $ 90,897		Fair Value
		Level 1 4,400 - -	Level 2 - 8,655 -	Level 3 134,985 - 90,897	Total
					139,385
					8,655
					90,897

~64~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Carrying amount Financial liabilities measured at fair value under repetitive basis Financial liabilities at fair value through profit or loss – derivative $ 998 Carrying amount Financial assets measured at fair value under repetitive basis Financial assets at fair value through profit or loss – stocks $ 57,522 Financial assets mandatorily at fair value through profit or loss – derivative $ 290 Non-current financial assets at fair value through other comprehensive income $ 110,711 Financial liabilities measured at fair value under repetitive basis Financial liabilities at fair value through profit or loss－ derivative $ 23,758		December 31, 2025	December 31, 2025	December 31, 2025
			Fair Value
		Level 1 Level 2 Level 3 - 998 - December 31, 2024			Total
					998
			Fair Value
		Level 1 4,902 - - -	Level 2 - 290 - 23,758	Level 3 52,620 - 110,711 -	Total
					57,522
					290
					110,711
					23,758

(b) Valuation techniques for financial instruments measured at fair value

• i. Non-derivative financial instruments

A financial instrument is regarded as being quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency and those prices represent actual and regularly occurring market transactions on an arm’ s-length basis. Whether transactions are taking place ‘ regularly’ is a matter of judgment and depends on the facts and circumstances of the market for the instrument.

Quoted market prices may not be indicative of the fair value of an instrument if the activity in the market is infrequent, the market is not well-established, only small volumes are traded, or bid-ask spreads are very wide. Determining whether a market is active involves judgment.

~65~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The categories and nature of the fair value for the Group’s financial instruments which have active market are as below:

For publicly traded stock, bank draft and bond with standard terms, conditions that traded in active market, the fair value of these financial assets and liabilities is based on quoted market prices.

Except for the above-mentioned financial instruments traded in active markets, the fair value of other financial instruments is based on the valuation techniques or refer to quoted price from counterparties. The fair value using valuation techniques refers to the current fair value of other financial instruments with similar conditions and characteristics, or using a discounted cash flow method, or other valuation techniques which include model calculating with observable market data at the reporting date (such as yield curve from Taipei Exchange, average interest rate from Reuters’ commercial paper).

The categories and nature of the fair value for the Group’s financial instruments which without an active market are as below:

The fair value for equity instruments which do not have public quoted price is measured based on net asset value of comparable companies. The main assumption is based on the market multiples derived from the net value per share of investees and quoted price of EV/EBIT’s comparable listed companies. The estimated amount has adjusted the discounted effect due to the lack of liquidity in market for equity security.

ii. Derivative financial instruments

Measurement on fair value of derivative instruments is based on the valuation techniques generally accepted by market participants such as the discounted cash flow or option pricing models. Foreign currency forward contract is measured based on the current forward exchange rate. Structured interest rate derivative products are measured based on appropriate option pricing model.

• (c) There was no transfer between the different levels of fair value hierarchy for the years ended December 31, 2025 and 2024.

• (d) Reconciliation of Level 3 fair values

Opening Balance, January 1, 2025 Additions Disposals Recognized in profit or loss Unrealized gain on financial assets measured at fair value through other comprehensive income Ending balance, December 31, 2025	Fair value through profit or loss $ 52,620 49,131 - 33,234 - $ 134,985	Fair value through other comprehensive income 110,711 - (26,643) - 6,829 90,897	Total 163,331 49,131 (26,643) 33,234 6,829 225,882

~66~

ALPHA NETWORKS INC. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

Opening Balance, January 1, 2024 Additions Disposals Recognized in profit or loss Unrealized loss on financial assets measured at fair value through other comprehensive income Ending balance, December 31, 2024	Fair value through profit or loss $ - 50,000 - 2,620 - $ 52,620	Fair value through other comprehensive income 191,331 - (31,429) - (49,191) 110,711	Total
			191,331 50,000 (31,429) 2,620 (49,191)
			163,331

• (e) Quantified information on significant unobservable inputs (Level 3) used in fair value measurement

The Group’s financial instruments that use Level 3 inputs to measure fair value include “financial assets measured at fair value through profit or loss–investments” and “financial assets measured at fair value through other comprehensive income– investments” . Quantified information of significant unobservable inputs was as follows:

Item Financial assets at fair value through profit or loss－equity investments Financial assets at fair value through profit or loss – fund Financial assets at fair value through other comprehensive income– equity investments without an active market	Valuation technique Market approach (Total enterprise value to EBITDA of comparable companies) Asset method Price-equity ratios/Price-to- earnings ratios method	Significant unobservable inputs Inter-relationship between significant unobservable inputs and fair value measurement As of December 31, 2025, value multiples were in the range of 15.85 to 22.13. As of December 31, 2025, the discount for lack of marketability was at 28.10%. The higher the value multiples, the higher the fair value. The fair value would decrease if lack of marketability and higher discount rate. Lack of market liquidity The greater the degree of illiquidity, the lower the estimated fair value. As of December 31, 2024, the price-to-equity ratios of comparable companies was at 1.5 times The higher the price- equity ratios, the higher the fair value.

As of December 31, 2024, the price-to-earnings ratios of comparable companies was at 16.31 times.

As of December 31, 2025 and 2024, the discounts for lack of marketability were 18.10% and 17.41%, respectively.

The higher the priceto-earning ratios, the higher the fair value.

The fair value would decrease if lack of marketability and higher discount rate.

~67~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (32) Financial risk management

• A. Overview

The Group has exposures to the following risks from its financial instruments:

• (a) credit risk

• (b) liquidity risk

• (c) market risk

The following likewise discusses the Group’s objectives, policies and processes for measuring and managing the above-mentioned risks. For more disclosures about the quantitative effects of these risk exposures, please refer to the respective notes in the accompanying consolidated financial statements.

• B. Structure of risk management

The Board of Directors has the overall responsibility for the establishment and oversight of the risk management framework and establish risk management policies and procedures. The Audit Committee is responsible for monitoring the compliance of the Group’ s risk management policies and procedures, and review the appropriateness of the Group’s management structure related to the risks. Risk management policies and systems are also reviewed regularly by the Audit Committee to reflect the changes in market conditions and the Group’s activities. Internal auditors are assisting Audit Committee in performing the monitoring role through periodic and ad hoc review procedures to risk management relevant control and process. Subsequently, the internal auditors report will be presented to the Board of Directors.

• C. Credit risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Group’ s receivables from customers and investments in securities.

• (a) Accounts receivable and other receivables

The Group has established a credit policy, under which, each new customer is analyzed individually for creditworthiness before the Group’s standard payment and delivery terms and conditions are offered. Purchase limits are established for each customer and represent the maximum open amount; these limits are reviewed periodically. Customers that fail to meet the Group’ s benchmark creditworthiness may transact with the Group only on a prepayment basis.

The Group did not have any collateral on accounts receivable and other receivables.

• (b) Investment

The credit risk of bank deposits, fixed income investments, and other financial instruments are measured and monitored by the finance department of the Group. There is no significant credit risk because the Group used to transact with or deal with counterparty with good credit ratings financial institutions, corporate organizations and government agencies.

~68~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(c) Guarantee

The Group’ s policy provides only financial security to fully owned subsidiaries. As of December 31, 2025 and 2024, except for the subsidiaries, the Group did not provide any endorsement guarantee.

D. Liquidity risk

The Group manages sufficient cash and cash equivalents so as to cope with its operations and mitigate the effects of fluctuations in cash flows. The Group’ s management supervises the banking facilities and ensures compliance with the terms of loan agreements.

Bank borrowing is an essential liquidity source for the Group. For the years ended December 31, 2025 and 2024, the Group did not utilize any credit line for both long-term and short-term bank borrowings. Please refer to note 6(15) and 6(16) for details.

• E. Market risk

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

The Group trades derivative instruments, and also incurs financial liabilities, in order to manage market risks. All such transactions are executed in accordance with the Group’s procedures for conducting derivative transactions which were approved by the Board of Directors.

(a) Foreign currency risk

The Group’s exposure to the risk of fluctuation in foreign currency exchange rates relates primarily to the Group’ s sales, purchases, and borrowings transactions, and those are denominated in a currency different from the functional currencies of the Group. These transactions are denominated in US dollar (USD) and Chinese Yuan (CNY).

The derivative financial products traded by the Group adopts economic hedging to avoid the exchange rate risk of foreign currency assets or liabilities held by the Group. The gains and losses arising from exchanges rate changes will offset the hedged items, therefore, the market risk is usually low.

(b) Other market price risk

The Group is exposed to equity price risk due to its investments in equity securities. This is a strategic investment and is not held for trading. The Group does not actively trade in these investments. Therefore, the Group will be exposed to the risk of market price changes in its equity securities.

~69~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(33) Capital management

The Group’s objective for managing its capital is to safeguard the capacity to continue as a going concern, to provide a return on shareholders, to maintain the interest of other related parties, and to maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust its capital structure, the Group may adjust the dividend payment to its shareholders, reduce the capital for redistribution to shareholders, issue new shares, or sell its assets to settle any liabilities.

The Group and other entities in the same industry use the debt-to-equity ratio to manage their capital. This ratio is the net debt divided by the total capital.

The net debt from the balance sheet is derived from the total liabilities, less cash and cash equivalents. The total equity includes share capital, capital surplus, retained earnings, and other equity.

The Group’s debt-to-equity ratio at the end of the reporting period was as follows:

Total liabilities Less: Cash and cash equivalents Net debt Total equity Debt-to-equity ratio	December 31, 2025 $ 11,120,571 (4,917,583) $ 6,202,988 $ 13,039,374 % 47.57	December 31, 2024 9,261,815 (3,957,279) 5,304,536 13,982,701 % 37.94

The debit-to-equity ratio was increased on December 31, 2025, due to the increase in net debt.

• (34) Non-cash investing and financing activities

The Group’s investing and financing activities which did not affect the current cash flow were as follows:

A. For right-of-use assets obtained from leases, please refer to note 6(11).

• B. Reconciliations of liabilities arising from financing activities were as follows:

Short-term borrowings Long-term borrowings (including maturity within 1 year) Lease liabilities Total liabilities from financing activities	January 1, 2025 $ 1,615,357 455,000 322,552 $ 2,392,909	Cash flows 1,070,346 165,000 (37,918) 1,197,428	Foreign exchange movement and other (138,743) - 31,151 (107,592)	December 31, 2025
				2,546,960 620,000 315,785
				3,482,745

~70~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Short-term borrowings Long-term borrowings Bonds payable Lease liabilities Total liabilities from financing activities	January 1, 2024 $ 880,246 700,000 264,612 324,103 $ 2,168,961	Cash flows 667,249 (245,000) - (38,007) 384,242	Foreign exchange movement and other 67,862 - (264,612) 36,456 (160,294)	December 31, 2024
				1,615,357 455,000 - 322,552
				2,392,909

7. Related-party transactions:

• (1) Parent company and ultimate controlling company

Qisda, who is both the parent company and the ultimate controlling party of the Group, holds 54.60% of the Group’ s outstanding shares and has issued the consolidated financial statements available for public use.

• (2) Names and relationship with related parties.

The following are entities that have had transactions with related party during the periods covered in the consolidated financial statement:

the consolidated financial statement:
Name of related party	Relationship with the Group
Qisda	Parent company
AEWIN Technologies Co., Ltd. (AEWIN)	Qisda’s subsidiary
BenQ Asia Pacific Corp (BQP)	Qisda’s subsidiary
BenQ Healthcare Corporation (BHC)	Qisda’s subsidiary
Qisda (Suzhou) Co., Ltd. (QCSZ)	Qisda’s subsidiary
Global Intelligence Network Co., Ltd. (Ginnet)	Qisda’s subsidiary
Simula Technologies Inc. (Simula)	Qisda’s subsidiary
BenQ Material Corp. (BMC)	Qisda’s subsidiary
Qisda Optronics (Suzhou) Co., Ltd. (QCOS)	Qisda’s subsidiary
Qisda Vietnam Co., Ltd. (QVN)	Qisda’s subsidiary
DFI Inc. (DFI)	Qisda’s subsidiary
Concord Medical Co., Ltd. (Concord)	Qisda’s subsidiary
Golden Spirit Co., Ltd. (GSC)	Qisda’s subsidiary
Metaage Corporation (Metaage)	Qisda’s subsidiary
ACE Energy Co., Ltd. (AEG)	Qisda’s subsidiary

~71~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of related party	Relationship with the Group
Yun yun AI Baby camera Co., Ltd. (Yun yun)	Qisda’s subsidiary
Darfon Electronics Corp. (DFN)	Qisda’s associate
Rapidtek Technologies Inc. (Rapidtek)	Qisda’s associate
Unictron Technologies Corporation (Unictron)	Qisda’s associate
AUO Education Service Corp. (AUES)	Qisda’s associate
Darwin Precisions Corp. (DARWIN)	Qisda’s associate
Topview Optronics Corporation (Topview)	Qisda’s associate
BenQ Foundation	Substantive related party

(3) Significant related-party transactions

• A. Sales

The amounts of sales to related parties were as follows:

The amounts of sales to related parties were as follows:
Other related parties	For the years ended December 31,
	2025 $ 60,363	2024
		10,011

The prices for sales to the above related parties were determined by general market conditions and adjusted by considering the geographic sales area and sales volumes.

The collection terms for third parties and related parties were 30 to 90 days.

• B. Purchases

The amounts of purchases from related parties were as follows:

Parent company Other related parties	For the years ended December 31,	For the years ended December 31,
	2025 $ 212 122,628 $ 122,840	2024
		404 122,718
		123,122

The prices for purchase from related parties were not materially different from those from third parties. The payment terms for purchase from related parties were 30 to 90 days after purchase.

• C. Receivables from related parties

The receivables from related parties were as follows:

Account Accounts receivable from related parties	Relationship	December 31, 2025 $ 26,201	December 31, 2024
	Other related parties		1,568

~72~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

D. Payables to related parties

The payables to related parties were as follows:

Account Accounts payable to related parties Accounts payable to related parties	Relationship	December 31, 2025 $ 6 34,249 $ 34,255	December 31, 2024
	Parent company Other related parties		- 35,061
			35,061

E. Rendering of services and other expenses

The amounts of product warranty and maintenance services, research, donation, remuneration of directors and other expenses paid by the Group were as follows:

Parent company Other related parties	For the years ended December 31,	For the years ended December 31,
	2025 $ 563 3,031 $ 3,594	2024
		958 1,552
		2,510

The payables to related parties were as follows:

Account	Related Party Category	December 31, 2025 $ 287 500 $ 787	December 31, 2024
Other payables to related parties Other payables to related parties	Parent company Other related parties		867 773
			1,640

F. Property transactions

(a) Acquisition of property, plant and equipment and intangible assets were as follows:

Parent company Other related parties	Amount	Amount
	For the years ended December 31,
	2025 $ - 17,881 $ 17,881	2024
		4,180 6,439
		10,619

(b) Disposals of property, plant and equipment and intangible assets were as follows:

Other related parties	Amount	Amount
	For the years ended December 31,
	2025 $ -	2024
		3,358

~73~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(c) The amounts of receivable and payable to related parties were as follows:

G. H.	Account Other payables Other receivables Prepayments Account Prepayments (included in other current assets) Other Account Other income	Account		Relationship			December 31, 2025 December 31, 2024 110 2,343 - 3,516 December 31, 2025 December 31, 2024 $ 168 241 For the years ended December 31,		December 31, 2024
				Other related parties Other related parties Relationship	$ $				2,343
									3,516
									December 31, 2024
			Other related parties Relationship						241
							2025 $ 1,516		2024
			Other related parties						659

The other receivables from related parties and contract liabilities were as follows:

Account Other receivables (included in other current assets) Other payables (included in other current liability) Other payables (included in other current liability)	Relationship	December 31, 2025 $ 410 $ 187 $ 71	December 31, 2024
	Other related parties Parent company Other related parties		364
			-
			-

(4) Key management personnel compensation

Short-term employee benefits Post-employment benefits	For the years ended December 31,	For the years ended December 31,
	2025 $ 72,494 1,188 $ 73,682	2024
		81,900 1,188
		83,088

~74~

ALPHA NETWORKS INC. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

8. Pledged assets:

Pledged assets:
Pledged assets Time deposit (recorded in financial assets measured at amortized cost–non- current) Time deposit (recorded in financial assets measured at amortized cost–non- current) Restricted bank demand deposits (recorded in financial assets measured at amortized cost–non-current) Restricted bank time deposits (recorded in financial assets measured at amortized cost–non-current) Time deposit (recorded in financial assets measured at amortized cost–non- current) Restricted bank demand deposits (recorded in financial assets measured at amortized cost–non-current) Refundable deposit (recorded in financial assets measured at amortized cost–non- current) Refundable deposit (recorded in financial assets measured at amortized cost–non- current) Restricted bank demand deposits (recorded in financial assets measured at amortized cost–non-current) Restricted bank demand deposits (recorded in financial assets measured at amortized cost–non-current) Restricted bank demand deposits (recorded in financial assets measured at amortized cost–non-current) Refundable deposit (recorded in financial assets measured at amortized cost–non- current)	Object Import guarantee for Customs Guarantee for land lease Contract guarantee Contract guarantee Land lease guarantee and Customs duty- deferment deposit Guarantee to local authority for sales to overseas customers Guarantee to local authority for sales to overseas customers Guarantee for warranty Short-term borrowings Guarantee for contract performance Short-term borrowings Customer contract and lease deposits	December 31, 2025 $ 7,550 8,000 152 2,070 2,382 2,139 11,409 117,788 2,102 750 500 14,224 $ 169,066	December 31, 2024
			7,550 8,000 158 2,160 2,382 2,815 11,347 123,231 - - 5,075 21,908
			184,626

~75~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

9. Significant commitments and contingencies:

• (1) As of December 31, 2025 and 2024, the Group’ s deposited notes and guarantees in the bank amounted to $18,333,076 thousand and $14,958,675 thousand, respectively in order to obtain the credits limit of bank financing, foreign exchange facilities and contracts of government grants.

• (2) The Group had entered into a technology license agreement with suppliers. According to the agreement, the Group is obligated to make payments for technology license fee and royalty based on the total sales of products by using such technology.

• (3) Others

Guaranteed notes payable for tender contract Guarantee for construction projects	December 31, 2025 $ 10,168 $ 230,941

10. Losses due to major disasters: None

11. Subsequent events: None

12. Other:

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

By function By item	For theyear ended December 31,	For theyear ended December 31,	For theyear ended December 31,	For theyear ended December 31,	For theyear ended December 31,	For theyear ended December 31,
	2025			2024
	Cost of Sales	Operating expenses	Total	Cost of Sales	Operating expenses	Total
Employee benefits Salary Labor and health insurance Pension Remuneration of directors Others Depreciation Amortization	726,411 55,809 51,769 - 50,096 237,869 1,854	2,170,917 154,272 115,850 33,605 91,073 266,303 242,659	2,897,328 210,081 167,619 33,605 141,169 504,172 244,513	655,879 56,303 40,582 - 45,598 249,713 4,747	2,127,583 166,584 124,185 16,726 74,153 254,670 215,024	2,783,462 222,887 164,767 16,726 119,751 504,383 219,771

13. Other disclosures:

• (1) Information on significant transactions:

The following is the information on significant transactions required by the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” for the Group:

• A. Financing provided to other parties: Please refer to Table 1.

• B. Guarantees and endorsements provided to other parties: Please refer to Table 2.

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ALPHA NETWORKS INC. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

• C. Information regarding significant securities held at the reporting date (excluding investment in subsidiaries, associates and joint ventures): None.

• D. Related-party transactions for purchases and sales with amounts exceeding $100 million or 20% of the capital stock: Please refer to Table 3.

• E. Receivables from related parties with amounts exceeding $100 million or 20% of the capital stock: Please refer to Table 4.

• F. Business relationships and significant intercompany transactions: Please refer to Table 5.

• (2) Information on investees (excluding information on investees in Mainland China): Please refer to Table 6.

• (3) Information on investment in Mainland China:

• A. The names of investees in Mainland China, the main businesses and products, and other information: Please refer to Table 7.

• B. Limitation on investment in Mainland China: Please refer to Table 7.

• C. Significant transactions:

The significant inter-company transactions with the subsidiaries in Mainland China, which were eliminated in the preparation of consolidated financial statements are disclosed in “Information on significant transactions”.

14. Segment information:

• (1) Operating segment information

The Group has two reportable segments and those reportable segments are the Group’s strategic divisions. Every operating unit provides different types of products and services which require different type of technologies and marketing strategies as well as management. The Group’ s management decision maker will review the internal management report for each operating unit quarterly. The operation descriptions of each operating unit are as below:

• A. Network related products: Involved in design, research, production and sales of LAN/MAN, wireless related products, computer network system and related components.

• B. Others: Involved in research, production and sales of telecommunication system and multimedia related products.

~77~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(2) Information on reportable segments and their measurement and reconciliations were as follows:

The Group’s operating segment information and reconciliation are as follows:

Revenue: Revenue from external customers Intersegment revenue Total revenue Interest expenses Depreciation and amortization Reportable segment profit or loss Reportable segment assets Reportable segment liabilities Revenue: Revenue from external customers Intersegment revenue Total revenue Interest expenses Depreciation and amortization Reportable segment profit or loss Reportable segment assets Reportable segment liabilities

For the years ended December 31, 2025 Network related products Other Reconciliation and elimination Total $ 19,858,914 2,602,806 - 22,461,720 - 83,291 (83,291) - $ 19,858,914 2,686,097 (83,291) 22,461,720 $ 137,004 593 (6) 137,591 $ 678,076 71,220 (611) 748,685 $ (262,836) 252,232 (136,450) (147,054) December 31, 2025 Network related products Other Reconciliation and elimination Total $ 20,601,356 4,229,434 (670,845) 24,159,945 $ 9,625,976 1,537,332 (42,737) 11,120,571 For the years ended December 31, 2024 Network related products Other Reconciliation and elimination Total $ 18,975,116 2,468,509 - 21,443,625 - 62,729 (62,729) - $ 18,975,116 2,531,238 (62,729) 21,443,625 $ 141,048 2,782 (6) 143,824 $ 654,230 70,789 (865) 724,154 $ 214,282 242,011 (114,294) 341,999 December 31, 2024 Network related products Other Reconciliation and elimination Total $ 19,779,083 4,166,237 (700,804) 23,244,516 $ 7,864,036 1,429,017 (31,238) 9,261,815

(3) Products and services information

Details of customers contract revenue for 2025 and 2024, please refer to note 6(25).

~78~

ALPHA NETWORKS INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(4) Geographic information

In presenting information on the basis of geography, revenue is based on the geographical location of customers, and assets are based on the geographical location of the assets.

Detail of customers contract revenue for 2025 and 2024, please refer to note 6(25).

Non-current assets: China Taiwan Vietnam Others	December 31, 2025 $ 460,054 3,753,255 1,374,071 749,659 $ 6,337,039	December 31, 2024
		521,870 3,977,973 1,558,480 871,033
		6,929,356

Non-current assets include property, plant, and equipment, right-of-use assets, investment property, intangible assets and other assets, not including financial instruments and deferred tax assets.

(5) Major customer information

Sales to individual customers representing greater than 10% of consolidated revenue were as follows:

L Company W Company Z Company	For the years ended December 31,	For the years ended December 31,
	2025 $ 2,576,799 2,776,237 1,880,063 $ 7,233,099	2024
		2,651,637 2,656,620 2,377,460
		7,685,717

~79~

Table 1

(In Thousands of New Taiwan Dollars)

Alpha Networks Inc. and Subsidiaries Financing provided to other parties For the year ended December 31, 2025

No.	Name of lender	Name of borrower	Account	Related party	Highest balance of financing to other parties during the period	Ending balance	Actual usage amount during the period	Range of interest rates during the period	Purposes of fund financing for the borrower	Transaction amount for business between two parties	Reasons for short-term financing	Allowance for bad debt	Collateral	Collateral	Individual funding loan limits	Maximum limit of fund financing
													Item	Value
0 1 2	Alpha Alpha HK Alpha Chengdu	Alpha VN Enrich Investment Alpha Changshu	Other receivable from related parties Same as above Same as above	Yes Yes Yes	332,050 (USD10,000 thousand) 6,641 (USD200 thousand) 274,722 (CNY60,000 thousand)	314,300 (USD10,000 thousand) - 269,712 (CNY60,000 thousand)	314,300 (USD10,000 thousand) - 269,712 (CNY60,000 thousand)	4.7%~5.5% - 0.65%~1.25%	2 2 2	- - -	Operating capital Operating capital Operating capital	- - -		- - -	1,824,766 (note 2) 248,476 (note 5) 513,891 (note 4)	3,649,532 (note 3) 496,953 (note 5) 513,891 (note 4)

Note 1: The method of filling out the capital loan and nature is as follows:

• (1) relate business relationship, please fill in 1.

• (2) relate short-term financing, please fill in 2.

• Note 2: The individual financing amounts for a short term period shall not exceed 20% of the net worth of Alpha.

• Note 3: The aggregate financing amount for a short term period shall not exceed 40% of the net worth of Alpha.

• Note 4: Alpha Chengdu, the subsidiaries whose voting shares are 100% owned, directly or indirectly, by Alpha, which are not located in Taiwan, for the purpose of lending operating capital, the amount of financing offered to a single company owned by Alpha shall not exceed 100% of the lender’s net worth.

• Note 5: The total and individual amount of lending to a company by Alpha HK shall not exceed 40% and 20% of net worth of latest financial statement, respectively.

~80~

Alpha Networks Inc. and Subsidiaries

Guarantees and endorsements provided to other parties

For the year ended December 31, 2025

Table 2

(In Thousands of New Taiwan Dollars)

No.	Name of guarantor	Counter-party of guarantee and endorsement	Counter-party of guarantee and endorsement	Limitation on amount of guarantees and endorsements for a specific enterprise (note 1)	Highest balance for guarantees and endorsements during the period	Balance of guarantees and endorsements as of reporting date	Actual usage amount during the period	Property pledged for guarantees and endorsements	Ratio of accumulated amounts of guarantees and endorsements to net worth of the latest financial statements	Maximum amount for guarantees and endorsements (note 2)	Parent company endorsements/ guarantees to third parties on behalf of subsidiary	Subsidiary endorsements/ guarantees to third parties on behalf of parent company	Endorsements/ guarantees to third parties on behalf of companies in Mainland China
		Name	Relationship with the Company
0	Alpha	Alpha Changshu	note 3	4,561,915	232,435	220,010	11,392	-	% 2.41	9,123,830	Y	N	Y

Note 1: The total amount of guarantee provided by Alpha to any individual entity shall not exceed 50% of Alpha’s equity. Note 2: The total amount of guarantee provided by Alpha shall not exceed 100% of Alpha’s equity. Note 3: The company directly and indirectly holds more than 50% of the shares with voting rights.

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Alpha Networks Inc. and Subsidiaries

Related-party transactions for purchases and sales with amounts exceeding $100 million or 20% of the capital stock For the year ended December 31, 2025

Table 3

(In Thousands of New Taiwan Dollars)

Name of company	Related party	Nature of relationship	Transaction details	Transaction details	Transaction details		Transactions with terms different from others	Transactions with terms different from others	Notes/Accounts receivable (payable)	Notes/Accounts receivable (payable)	Note
			Purchase/ (Sale)	Amount	Percentage of total purchases/ (sales)	Payment terms	Unit price	Payment terms	Ending balance	Percentage of total notes/ accounts receivable (payable)
Alpha Alpha Alpha Alpha Alpha HK Alpha HK Alpha VN Hitron Technologies Hitron Technologies	Alpha USA Alpha Changshu Hitron Technologies Alpha HK Alpha Changshu Alpha VN Alpha HK Hitron America Hitron Europe	Subsidiary of Alpha Subsidiary of Alpha Subsidiary of Alpha Subsidiary of Alpha Subsidiary to subsidiary Subsidiary to subsidiary Subsidiary to subsidiary Subsidiary to subsidiary Subsidiary to subsidiary	(Sales) Purchase (Sales) Purchase (Sales) (Sales) (Sales) (Sales) (Sales)	(4,665,959) 1,735,954 (5,256,045) 11,623,952 (1,430,701) (10,316,884) (11,623,952) (3,787,404) (147,091)	(26)% 10% (29)% 68% (6)% (44)% (100)% (71)% (3)%	90 days 90 days 60 days 90 days 90 days 90 days 90 days 120 days 90 days	- - - - - - - - -		1,293,910 (1,244,503) 859,824 (1,275,249) 303,960 2,480,731 1,497,566 1,363,036 17	39% (39)% 26% (40)% 7% 58% 100% 67% -%	note note note note note note note note note

Note: The relevant transactions and ending balance have been eliminated in the consolidated financial statements.

~82~

Alpha Networks Inc. and Subsidiaries

Receivables from related parties with amounts exceeding $100 million or 20% of the capital stock December 31, 2025

Table 4

(In Thousands of New Taiwan Dollars)

Name of company	Counter-party	Nature of relationship	Ending balance	Turnover rate	Overdue	Overdue	Amounts received in subsequent period(note 1)	Loss Allowance	Note
					Amount	Action taken
Alpha Alpha Alpha Alpha Changshu Alpha HK Alpha HK Alpha HK Alpha VN Hitron Technologies Alpha Chengdu Hitron Technologies	Alpha USA Hitron Technologies Alpha VN Alpha Alpha Changshu Alpha VN Alpha Alpha HK Hitron America Alpha Changshu Hitron Vietnam	Subsidiary of Alpha Subsidiary of Alpha Subsidiary of Alpha Subsidiary to parent Subsidiary to subsidiary Subsidiary to subsidiary Subsidiary to parent Subsidiary to subsidiary Subsidiary to subsidiary Subsidiary to subsidiary Subsidiary to subsidiary	1,293,910 859,824 323,984 1,244,503 303,960 2,480,731 1,275,249 1,497,566 1,363,036 270,340 1,021,475	4.26 5.63 - 1.72 4.76 5.15 11.90 10.87 2.14 - -	- - - 808,405 3,250 437,699 164,858 328,031 - - -	- - - - - - - - - - -	- 421,010 - 47,288 54,104 1,066,594 1,132,073 1,132,073 569,758 - 1,021,475	- - - - - - - - - - -	note 2 note 2 note 3 note 2 note 2 note 2 note 2 note 2 note 2 note 3 note 3

Note 1: The collection situation as of February 13, 2026.

Note 2: The relevant transactions and ending balance have been eliminated in the consolidated financial statements. Note 3: It is not applicable for the calculation of turnover days for other receivables not generated from sales.

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Alpha Networks Inc. and Subsidiaries

Business relationships and significant intercompany transactions

For the year ended December 31, 2025

Table 5

(In Thousands of New Taiwan Dollars)

No.	Name of company	Name of counter-party	Nature of relationship	Intercompany transactions	Intercompany transactions	Intercompany transactions
				Account	Amount	Payment terms	Percentage of the consolidated operating revenue or total assets
0 0 0 0 0 0 0 0 0 0 1 1 1 1 2 2 3 4 4 4	Alpha Alpha Alpha Alpha Alpha Alpha Alpha Alpha Alpha Alpha Alpha HK Alpha HK Alpha HK Alpha HK Alpha VN Alpha VN Alpha Chengdu Hitron Technologies Hitron Technologies Hitron Technologies	Alpha USA Alpha USA Alpha Changshu Alpha Changshu Alpha Chengdu Hitron Technologies Hitron Technologies Alpha HK Alpha HK Alpha VN Alpha Changshu Alpha Changshu Alpha VN Alpha VN Alpha HK Alpha HK Alpha Changshu Hitron America Hitron America Hitron Vietnam	Parent to Subsidiary Parent to Subsidiary Parent to Subsidiary Parent to Subsidiary Parent to Subsidiary Parent to Subsidiary Parent to Subsidiary Parent to Subsidiary Parent to Subsidiary Parent to Subsidiary Subsidiary to Subsidiary Subsidiary to Subsidiary Subsidiary to Subsidiary Subsidiary to Subsidiary Subsidiary to Subsidiary Subsidiary to Subsidiary Subsidiary to Subsidiary Subsidiary to Subsidiary Subsidiary to Subsidiary Subsidiaryto Subsidiary	Sales Accounts receivable from related parties Purchase Accounts payable to related parties Research expense Sales Accounts receivable from related parties Purchase Accounts payable to related parties Other receivables from related parties Sales Accounts receivable from related parties Sales Accounts receivable from related parties Sales Accounts receivable from related parties Other receivables from related parties Sales Accounts receivable from related parties Other receivables from relatedparties	4,665,959 1,293,910 1,735,954 1,244,503 273,888 5,256,045 859,824 11,623,952 1,275,249 323,984 1,430,701 303,960 10,316,884 2,480,731 11,623,952 1,497,566 270,340 3,787,404 1,363,036 1,021,475	- 90 days - 90 days - - 60 days - 90 days - - 90 days - 90 days - 90 days - - 120 days -	20.77% 5.36% 7.73% 5.15% 1.22% 23.40% 3.56% 51.75% 5.28% 1.34% 6.37% 1.26% 45.93% 10.27% 51.75% 6.20% 1.12% 16.86% 5.64% 4.23%

Note: The significant intercompany transactions in this table reach 1% of consolidated operating revenue or total assets.

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Alpha Networks Inc. and Subsidiaries

Information on investees (excluding information on investees in Mainland China)

For the year ended December 31, 2025

Table 6

(In Thousands of Shares/In Thousands of New Taiwan Dollars)

Name of investor	Name of investee	Location	Main businesses and products	Original investment amount	Original investment amount	Balance as of December 31, 2025	Balance as of December 31, 2025	Balance as of December 31, 2025	Highest Percentage of ownership	Net income (losses) of investee	Share of profits/ losses of investee	Note
				December 31, 2025	December 31, 2024	Shares	Percentage of ownership	Carrying value
Alpha Alpha Alpha Alpha Alpha Alpha Alpha Alpha Alpha Enrich Investment Enrich Investment Enrich Investment Hitron Technologies	Alpha Solutions Alpha USA Alpha HK ATS Enrich Investment Hitron Technologies Alpha VN INDIALPHA Fiber Logic Interactive Digital Aespula INDIALPHA Hitron Samoa	Japan USA Hong Kong USA Taiwan Taiwan Vietnam India Taiwan Taiwan Taiwan India Samoa	Sale of network equipment, components and technical services Sale, marketing and procurement service in USA Investment holding Post-sale service Investment holding Marketing on system integration of communication product and telecommunication products Production and sale of network products Sale of network products Broadband communication products and service Telecommunication and broadband network system services Sale of network equipment components and technical services Sale of network products International trade	5,543 51,092 2,033,915 260,497 (USD8,100 thousand) 400,000 4,811,000 1,490,323 39,214 491,153 189,523 80,000 1 172,179	5,543 51,092 2,033,915 260,497 (USD8,100 thousand) 400,000 4,811,000 1,227,928 10,358 511,688 189,523 80,000 - 172,179	1 1,500 485,791 8,100 40,000 200,000 note 3 10,500 6,841 2,575 8,000 - 5,850	% 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 62.24 % 100.00 % 99.99 % 30.39 % 5.06 % 98.92 % 0.01 % 100.00	16,295 199,048 1,227,405 206,016 325,425 3,713,643 1,169,435 23,598 467,571 117,565 - 1 242,510	% 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 62.24 % 100.00 % 99.99 % 31.66 % 5.06 % 98.92 % 0.01 % 100.00	246 12,013 (46,809) 5,443 32,732 (116,632) 45,139 (8,291) (32,132) 294,086 (14,951) - 28,586	246 12,013 (50,131) 5,443 32,732 (125,008) 45,139 (8,291) (21,024) note 1 notes 1, 2, 4 note 1 note 1

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Name of investor	Name of investee	Location	Main businesses and products	Original investment amount	Original investment amount	Balance as	of December 31, 2025	of December 31, 2025	Highest Percentage of ownership	Net income (losses) of investee	Share of profits/ losses of investee	Note
				December 31, 2025	December 31, 2024	Shares	Percentage of ownership	Carrying value
Hitron Technologies Hitron Technologies Hitron Technologies Hitron Technologies Hitron Technologies Interactive Digital Interactive Digital	Interactive Digital Hitron Vietnam Hitron America Hitron Europe Innoauto Technologies Transnet Fiber Logic	Taiwan Vietnam USA Netherlands Taiwan Taiwan Taiwan	Telecommunication and broadband network system services Production and sale of broadband telecommunication products International trade International trade Investment Operating integrated supply of network communication products, system services, and import and export of network equipment Broadband communication products and service	126,091 492,373 90,082 59,604 - 36,236 93,053	126,091 1,511,735 90,082 59,604 20,000 36,236 96,930	16,703 note 3 300 15 - 4,000 1,296	% 32.82 % 100.00 % 100.00 % 100.00 - % 80.00 % 5.76	688,031 957,073 431,166 63,623 - 55,341 88,639	% 32.82 % 100.00 % 100.00 % 100.00 % 100.00 % 80.00 % 6.00	294,086 (24,534) 76,159 (11,363) (21) 10,603 (32,132)	note 1 note 1 note 1 note 1 note 1 note 1 note 1

Note 1: Recognized by subsidiary.

Note 2: The percentage of ownership had included 87 thousand shares of preferred stock held by the original shareholders. Note 3: Limited company.

Note 4: On November 20, 2025, Aespula's Board of Directors had approved the dissolution. The liquidation process is currently in progress.

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Alpha Networks Inc. and Subsidiaries

The names of investees in Mainland China, the main businesses and products, and other information For the year ended December 31, 2025

Table 7

(In Thousands of New Taiwan Dollars)

(1) The names of investees in Mainland China, the main businesses and products, and other information

Name of investee	Main businesses and products	Total amount of paid-in capital	Method of investment	Accumulated outflow of investment from Taiwan as of January 1, 2025	Investment flows	Investment flows	Accumulated outflow of investment from Taiwan as of December 31, 2025	Net income (losses) of the investee	Percentage of ownership	Highest percentage of ownership	Investment income (losses) (note 3)	Book value	Accumulated remittance of earnings in current period
					Outflow	Inflow
Alpha Chengdu Alpha Dongguan Mirac (note 12) Alpha Changshu Alpha Changshu Trading Hitron Suzhou Jietech Suzhou Hwa Chi Technologies	Research and development of network products Production and sale of network products Production and sale of network products Production and sale of network products Production and sale of network products Broadband telecommunications products, research and development Sale of broadband network products and related services Technical consultation on electronic communication, technology research and development, maintenance and after-sale service	420,426 97,023 17,795 (note 10) 1,925,920 17,378 (CNY4,000 thousand) 171,245 (CNY34,800 thousand) 31,139 (CNY5,425 thousand) 2,907 (USD100 thousand)	note 2(b) note 1(a) note 1(b) note 1(b) note 1(b) note 1(c) note 1(c) note 2(a)	420,426 114,197 307,326 1,925,920 - 171,245 31,139 8,854	- - - - - - - -	- - - - - - - -	420,426 114,197 (note 7) 307,326 1,925,920 - 171,245 31,139 8,854	16,911 - 479 (47,537) 3,720 28,597 (12) 589	100.00% - 100.00% 100.00% 100.00% 100.00% (note 9) 100.00% (note 9) 32.82% (note 9)	100.00% - 100.00% 100.00% 100.00% 100.00% 100.00% 32.82%	16,911 - 479 (47,537) 3,720 28,597 (12) 193	513,891 - (note 11) 31,225 1,205,505 14,558 239,385 3,787 2,897	147,231 692,935 - - - - - 31,155

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(2) Limitation on investment in Mainland China

Name of Company	Accumulated Investment in Mainland China as of December 31, 2025	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
Alpha	2,634,897 notes 4, 5 and 8	3,496,798	note 6
Hitron Technologies	211,238	214,528	2,845,070

• Note 1: Investments in companies in Mainland China through the existing companies in the third regions are as follows: (a) D-Link Asia

• (b) Alpha HK

• (c) Hitron Samoa

• Note 2: Other methods:

• (a) Hwa Chi is a Chinese based investment company, which was originally invested by Hitron Samoa, a subsidiary of Alpha. However, due to the Group’s restructuring, the investor was changed to Interactive Digital instead, based on the resolution approved during the board meeting in 2012.

• (b)The entire shares of Alpha Chengdu, which was originally fully owned by D-Link Asia, had been transferred to Alpha on June 15, 2023 based on the agreement entered into by D-Link Asia and Alpha.

• Note 3: The amount was recognized based on the audited financial statements.

• Note 4: The accumulated investments in Alpha Dongguan did not include the previously investment of HKD69,387 thousand (equivalent to approximately NTD$303,055 thousand) by D-Link Corporation.

• Note 5: Alpha, who indirectly invested its subsidiary, Tongying Trading (Shenzhen) Co., Ltd., has liquidated all its rights and obligations and cancelled its registration in March 2008, resulting in the amount of $5,461 thousand (the difference between the accumulated investment in Tongying Trading (Shenzhen) Co., Ltd. amounting to $9,828 thousand and the remittance amount of $4,367 thousand) to be recognized. The amount recognized above still needs to be included in the accumulated investment in Mainland China according to the principle of Investment Commission, MOEA.

• Note 6: According to the Operation Headquarters confirmation document, with letter no.11120417620, issued by the Industrial Development Bureau, MOEA, obtained by Alpha on June 8, 2022, the upper limit on its investment in Mainland China, pursuant to the “Principle of Investment or Technical Cooperation in Mainland China”, is not applicable.

• Note 7: Since the investment amount of $46,412 thousand was derived from D-Link Asia’s own funds, the investment amount didn’t need to be included in the accumulated investment in Mainland China as of December 31, 2025.

• Note 8: Maintrend, a subsidiary which Alpha’s indirectly invested in, has completed its liquidation procedures on various rights and obligations; thus, cancelled its registration on July 23, 2018. However, Alpha’s cumulative investment of $164,622 thousand still needs to be included in the accumulated investment in Mainland China according to the regulations of the Investment Commission, MOEA.

• Note 9: This refers to the direct or indirect shareholding of Hitron Technologies.

• Note 10: The capital reduction registration procedures had been completed on December 19, 2022 ； however, the capital has yet to be remitted back as of December 31, 2025.

• Note 11: On December 28, 2023, Alpha made the agreement to dispose the entire shares of D-Link Asia and Alpha Dongguan. The abovementioned assets were reclassified as noncurrent assets held for sale. The abovementioned transaction had been completed in the second quarter of 2024.

• Note 12: On October 31, 2025 , Mirac's Board of Directors had approved the dissolution. The liquidation process is currently in progress.

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