Alpha - Audit Report / Information 2026

Stock Code:3380

ALPHA NETWORKS INC.

Parent-Company-Only 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 parent-company-only 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 parent-company-only financial statements, the Chinese version shall prevail.

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Contents
1. Cover Page
2. Table of Contents
3. Independent Auditors’Report
4. Balance Sheets
5. Statements of Comprehensive Income
6. Statements of Changes in Equity
7. Statements of Cash Flows
8. Notes to the Parent-Company-Only Financial Statements
(1)
Company history
(2)
Approval date and procedures of the 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
9. List of Major Account Titles Page

1
2
3
4
5
6
7
8
8
8～10
10～24
25
25～54
54～60
60
60
61
61
61
62、63～66
62、67～68
62、69～71
62
72～84

Contents 1. Cover Page 2. Table of Contents 3. Independent Auditors’Report 4. Balance Sheets 5. Statements of Comprehensive Income 6. Statements of Changes in Equity 7. Statements of Cash Flows 8. Notes to the Parent-Company-Only Financial Statements (1) Company history (2) Approval date and procedures of the 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 9. List of Major Account Titles	Page
	1 2 3 4 5 6 7 8 8 8`～`10 10`～`24 25 25`～`54 54`～`60 60 60 61 61 61 62`、`63`～`66 62`、`67`～`68 62`、`69`～`71 62 72`～`84

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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 parent-company-only financial statements of Alpha Networks Inc. (“the Company”), which comprise the balance sheets as of December 31, 2025 and 2024, the statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the financial statements, including a summary of material accounting policies.

In our opinion, the accompanying parent-company-only financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountants of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis 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 parent-company-only financial statements of the current period. These matters were addressed in the context of our audit of the parent-company-only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.

1. Revenue recognition from contracts with customers

Please refer to note 4(15) and note 6(21) for accounting policy and detailed disclosure of revenue, respectively.

Description of key audit matter:

The Company’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 Company 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, revenue recognition is one of our key audit matters.

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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.

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 Company’ 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(7) 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 Company 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 of 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 Company; evaluating whether the valuation of inventories was accounted for in accordance with the Company’s accounting policies; and assessing the historical reasonableness of the management’s estimates on inventory provisions.

3. Evaluation of investments accounted for using equity method

Please refer to note 4(9) investment in subsidiaries for accounting policy; and note 6(8) investment in equityaccounted investees, for the evaluation description of the investments accounted for using equity method.

Description of key audit matters:

The Company holds 62.24% shares of Hitron Technologies Inc. ("Hitron Technologies"). Due to the significant amount of investment in Hitron Technologies and the fluctuations in the products selling price of Hitron Technologies are influenced by the competitive market environment for network products products as well as the rapid development of product functions, thus, the assessment of revenue recognition , inventories valuation, and the impairment of goodwill arising from business combinations are crucial. Therefore, it is considered to be one of our key audit matters.

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How the matter was addressed in our audit:

We reviewed the component audit workpapers to evaluate the main audit procedures for revenue recognition, inventories valuation, and the impairment of goodwill arising from business combinations under the investment entities accounted for using equity method. The main audit procedures for revenue recognition included analysis of the policies on revenue recognition, performing period-end cut-off tests used to confirm the attribution period of significant sales revenue. The main audit procedures for inventories valuation included the understanding of the accounting treatment for inventory measurement, sampling test of market information and evaluation of the rationality of the net realizable value of inventory, observing the inventory count and evaluating the condition of obsolete and slow moving inventories. The main audit procedures for the impairment of goodwill arising from business combinations included assessing the management’ s identification of cash-generating units that may be subject to impairment, as well as the internal and external indicators of impairment, understanding whether the goodwill impairment test has been incorporated into management’s assessment process, analyzing the reasonableness of the valuation methodology used by the management in determining the recoverable amount, testing the accuracy of management’ s historical forecasts, reviewing the management’s calculations on the recoverable amount of cash-generating unit and reconciling them to the underlying accounting records, examining the assumptions used in preparing the future cash flow forecasts and determining the recoverable amount, including projected revenues, costs, and expenses, inquiring from the management and reviewing the audit evidence obtained from subsequent events procedures to identify whether any matters arising after the reporting date of the impairment test.

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

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

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

Those charged with governance (including the Audit Committee) are responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Parent-Company-Only Financial Statements

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

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

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

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

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent-company-only financial statements 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 parent-company-only financial statements are intended only to present the 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 parent-company-only financial statements are those generally accepted and applied in the Republic of China.

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(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese) ALPHA NETWORKS INC.

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)) 1170 Accounts receivable, net (note 6(3) and (21)) 1180 Accounts receivable due from related parties, net (notes 6(3), (21) and 7) 1210 Other receivables due from related parties (note 7) 130x Inventories (note 6(4)) 1470 Other current assets (note 6(12)) Non-current assets: 1510 Non-current financial assets at fair value through profit or loss (note 6(2)) 1535 Non-current financial assets at amortized cost (notes 6(3), (5) and 8) 1550 Investment accounted for using equity method (note 6(8)) 1600 Property, plant and equipment (notes 6(9) and 7) 1755 Right-of-use assets (note 6(10)) 1780 Intangible assets (note 6(11) and 7) 1840 Deferred tax assets (note 6(18)) 1990 Other non-current assets (notes 6(12)) Total assets	December 31, 2025 Amount % $ 372,376 3 8,655 - 1,152,035 8 2,179,785 16 323,984 2 1,185,956 8 45,614 - 5,268,405 37 47,868 - 17,520 - 7,691,561 55 645,518 5 160,309 1 186,785 1 78,149 1 168 - 8,827,878 63 $ 14,096,283 100	December 31, 2024 Amount % 837,467 6 290 - 1,135,559 8 1,907,300 14 337,667 3 1,029,355 7 53,159 - 5,300,797 38 - - 17,670 - 7,677,873 55 688,774 5 155,311 1 194,521 1 45,972 - 31,889 - 8,812,010 62 14,112,807 100 Liabilities and Equity Current liabilities: 2100 Short-term borrowings (note 6(13)) 2120 Current financial liabilities at fair value through profit or loss (note 6(2)) 2170 Accounts payable 2130 Current contract liabilities (note 6(21)) 2180 Accounts payable to related parties (note 7) 2209 Accrued expenses 2220 Other payables to related parties (note 7) 2230 Current tax liabilities 2250 Current provisions (note 6(14)) 2280 Current lease liabilities (note 6(16)) 2399 Other current liabilities (note 6(15) and 7) Non-current liabilities: 2570 Deferred tax liabilities (note 6(18)) 2580 Non-current lease liabilities (note 6(16)) 2640 Net defined benefit liability (note 6(17)) 2670 Other non-current liabilities, others Total liabilities Equity(note 6(19)) 3110 Ordinary shares 3200 Capital surplus Retained earnings: 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings 3400 Other equity interest Total equity Total liabilities and equity	December 31, 2025 Amount % $ 200,000 1 998 - 638,192 5 411,745 3 2,526,445 18 211,577 2 97,758 1 45,586 - 169,465 1 12,787 - 335,780 2 4,650,333 33 97,410 1 168,185 1 56,505 - 20 - 322,120 2 4,972,453 35 5,417,185 38 2,354,126 17 1,346,461 9 87,993 1 76,395 1 1,510,849 11 (158,330) (1) 9,123,830 65 $ 14,096,283 100	December 31, 2024 Amount % - - 22,322 - 603,378 4 872,474 6 1,461,640 10 230,188 2 100,234 1 43,938 - 164,537 1 6,729 - 353,049 3 3,858,489 27 116,741 1 168,983 1 53,686 1 - - 339,410 3 4,197,899 30 5,417,185 38 2,614,277 19 1,321,375 9 267,982 2 382,082 3 1,971,439 14 (87,993) (1) 9,914,908 70 14,112,807 100

See accompanying notes to parent-company-only financial statements.

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(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese) ALPHA NETWORKS INC.

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)

2025
Amount
%
4000
Operating revenue(notes 6(21) and 7)
$ 18,180,195
100
5000
Operating costs(notes 6(4), (9), (10), (11), (17) and 7)
16,311,002
90
Gross profit
1,869,193
10
5920
Add: Net changes in unrealized profit (loss) on sales to subsidiaries and
associates (note 7)
(86,502)
-
Realized gross profit
1,782,691
10
Operating expenses(note 6(9), (10), (11), (17), (23) and 7):
6100
Selling expenses
285,939
2
6200
Administrative expenses
361,274
2
6300
Research and development expenses
1,313,938
7
6450
Expected credit reversal gain (note 6(3))
(1,069)
-
Total operating expenses
1,960,082
11
Net operating loss
(177,391)
(1)
Non-operating income and expenses:
7010
Other income (notes 6(24) and 7)
24,540
-
7020
Other gains and losses, net (note 6(6) and (25))
(13,745)
-
7050
Finance costs (note 6(16) and (26))
(4,922)
-
7070
Share of loss of subsidiaries (note 6(8))
(91,970)
-
7100
Interest income (notes 6(23) and 7)
41,358
-
Total non-operating income and expenses
(44,739)
-
Profit (loss) before income tax
(222,130)
(1)
7950
Income tax expense (benefit) (note 6(18))
(28,260)
-
Profit (loss)
(193,870)
(1)
8300
Other comprehensive income (loss):
8310
Components of other comprehensive income (loss) that may not
be reclassified subsequently to profit or loss
8311
Remeasurements of defined benefit plans (note 6(17))
(2,580)
-
8330
Share of other comprehensive income (loss) of subsidiaries,
associates and joint ventures accounted for using equity method
(note 6(19))
9,661
-
Components of other comprehensive income (loss) that may
not be reclassified subsequently profit or loss
7,081
-
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(19))
(91,599)
-
8399
Income tax related to components of other comprehensive income
that will be reclassified to profit or loss (notes 6(18) and (19))
18,320
-
Components of other comprehensive income (loss) that may be
reclassified subsequently to profit or loss
(73,279)
-
8300
Other comprehensive income (loss), net of income tax
(66,198)
-
8500
Total comprehensive income (loss)
$
(260,068)
(1)
Earnings (loss) per share(New Taiwan dollars) (note 6(20))
Basic earnings (loss) per share
$
(0.36)
Diluted earnings (loss) per share
$
(0.36)

2024
Amount
%
13,350,072
100
11,510,599
86
1,839,473
14
144,004
1
1,983,477
15
310,750
2
372,838
3
1,335,378
10
(1,177)
-
2,017,789
15
(34,312)
-
43,936
-
369,176
3
(7,416)
-
(151,208)
(1)
56,214
-
310,702
2
276,390
2
57,763
-
218,627
2
31,689
-
(42,225)
-
(10,536)
-
278,448
2
(55,689)
-
222,759
2
212,223
2
430,850
4
0.40
0.40

See accompanying notes to parent-company-only financial statements.

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(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese) ALPHA NETWORKS INC.

Statements of Changes in Equity For the years ended December 31, 2025 and 2024 (Expressed in Thousands of New Taiwan Dollars)

	Retained	earnings		Total other equity interest	Total other equity interest	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 18,614 - (42,225) (42,225) - - - - (544) - - (24,155) - 9,661 9,661 - - - - - (6,719) - - (21,213)	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 - - - - 41,434 - - - - - 267,982 - - - - (179,989) - - - - - - 87,993	Unappropriated retained earnings
		774,486 218,627 31,689 250,316 (54,694) (41,434) (547,136) - 544 - - 382,082 (193,870) (2,580) (196,450) (25,086) 179,989 (270,859) - - 6,719 - - 76,395				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

See accompanying notes to parent-company-only financial statements.

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(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese) ALPHA NETWORKS INC.

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 reversal gain Net loss (gain) on financial assets or liabilities at fair value through profit or loss Interest expense Interest income Lease modification loss Share of loss of subsidiaries Gain on disposal of property, plant and equipment Provisions for inventory obsolescence and devaluation loss Gain on disposal of non-current assets classified as held for sale Unrealized loss (gain) from sales Total adjustments to reconcile profit Changes in operating assets and liabilities: Financial assets mandatorily at fair value through profit or loss Notes and accounts receivable Accounts receivable due from related parties Inventories Other current assets Financial liabilities mandatorily at fair value through profit or loss Notes and accounts payable Accounts payable to related parties Other payable to related parties Other current liabilities Net defined benefit liability Total changes in operating assets and liabilities Total adjustments	2025 $ (222,130) 134,318 73,817 (1,069) (6,394) 4,922 (41,358) - 91,970 (4,754) 60,591 - 86,502 398,545 290 (15,407) (272,485) (217,192) 6,899 (22,322) 34,814 1,064,805 (2,476) (491,810) (709) 84,407 482,952	2024 276,390 125,518 78,655 (1,177) 22,032 7,416 (56,214) 170 151,208 - 169,418 (453,891) (144,004) (100,869) 30,168 1,174,834 (432,463) (340,951) 43,504 (778) (774,887) 573,655 (17,799) (209,457) (19,868) 25,958 (74,911)

(Continued)

See accompanying notes to parent-company-only financial statements.

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(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese) ALPHA NETWORKS INC.

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
Interest paid
Income taxes paid
Net cash flows from operating activities
Cash flows from investing activities:
Acquisition of financial assets at fair value through profit or loss
Acquisition of investments accounted for using equity method
Proceeds from disposal of financial asset at fair value through other
comprehensive income
Cash dividends from investments accounted for using equity method
Net cash inflow from disposal of subsidiaries
Proceeds from capital reduction of investments accounted for using
equity method
Proceeds from disposal of non-current assets held for sale
Acquisition of property, plant and equipment
Proceeds from disposal of property, plant and equipment
Decrease in refundable deposits
Decrease (increase) in other receivables due from related parties
Acquisition of intangible assets
Decrease (increase) in other non-current assets
Net cash flows from (used in) investing activities
Cash flows from financing activities:
Increase in short-term borrowings
Repayments of short-term borrowings
Payment of lease liabilities
Cash dividends distributed to shareholders
Donation from shareholders
Net cash flows used in financing activities
Net increase (decrease) in cash in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

See accompanying notes to parent-company-only financial statements.

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(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese) ALPHA NETWORKS INC.

Notes to the Parent-Company-Only 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. (the “Company”) was then incorporated on September 4, 2003, and obtained the registration approval from the Hsinchu Science Park Bureau (“HSPB”). The registered address of the Company is No. 8, Li-shing 7th Road, Science-based Park, Hsinchu, Taiwan (R.O.C.).

The Company'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 the Company’ s ordinary shares, before the acquisition, Qsida 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 financial statements:

These parent-company-only 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 Company has initially adopted the following new amendments, which do not have a significant impact on its parent-company-only 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 Company 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 parent-companyonly financial statements:

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

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ALPHA NETWORKS INC. Notes to the Parent-Company-Only Financial Statements

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

The following new and amended standards, which may be relevant to the Company, have been issued by IASB, but have yet to be endorsed by the FSC:

Standards or
Interpretations
IFRS 18 “Presentation and
Disclosure in Financial
Statements”

Content of amendment
Effective date per
IASB
The
new
standard
introduces
three
categories of income and expenses, two
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,

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.

●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.
●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.
●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.

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ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

The Company is evaluating the impact on its parent-company-only financial position and parentcompany-only financial performance upon the initial adoption of the abovementioned standards or interpretations. The results thereof will be disclosed when the Company completes its evaluation.

The Company 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 parent-company-only 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 parent-company-only financial statements are summarized as follows. Except for those specifically indicated, the following accounting policies were applied consistently to all periods presented in these parent-company-only financial statements.

(1) Statement of compliance

The Company's accompanying parent-company-only 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”).

(2) Basis of preparation
A. Basis of measurement

Except for the following significant account, the parent-company-only 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;
(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 Company is determined based on the primary economic environment in which the entity operates. The parent-company-only financial statements are presented in New Taiwan Dollars (NTD), which is the Company’ s functional currency. All financial information presented in NTD has been rounded to the nearest thousand, unless otherwise noted.

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ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

(3) 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 Company'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.

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.

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

The Company 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

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ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

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 Company 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 Company 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.
(5) 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 meet 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.

(6) 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 Company 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.

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 Company 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.

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ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

(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 Company 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 Company’s right to receive payment is established (usually the ex-dividend date).

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 Company 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.

Notes to the Parent-Company-Only Financial Statements

(d) Impairment of financial assets

The Company 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, accounts receivable, other receivables, guarantee deposits paid and other financial assets) and contract assets.

The Company 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 trade receivables are always measured at an amount equal to lifetime ECL.

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

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).

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECL, the Company 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 Company’s historical experience and informed credit assessment, as well as forward-looking information.

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

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 Company in accordance with the contract and the cash flows that the Company expects to receive). ECL are discounted at the effective interest rate of the financial asset.

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets.

The gross carrying amount of a financial asset is written off when the Company has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. For corporate customers, the Company individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Company expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Company’s procedures for recovery of amounts due.

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ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

(e) Derecognition of financial assets

The Company 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 Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

The Company 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.

B. Financial liabilities and equity instruments
(a) Classification of debt or equity

Debt and equity instruments issued by the Company 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 Company derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The Company 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.

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ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

(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 Company 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 Company 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.

(7) 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.

(8) 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 Company’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 Company’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.

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ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

(9) Investment in subsidiaries

When preparing the parent-company-only financial statements, investment in subsidiaries which are controlled by the Company is accounted for using the equity method. Under the equity method, net income, other comprehensive income and equity in the parent-company-only financial statements are equivalent to those of the profit, other comprehensive income and equity which are attributable to parent company shareholders in the consolidated financial statements.

The changes in the parent’ s ownership interest in its subsidiaries that do not result in a loss of control are accounted as equity transactions.

(10) Property, plant and equipment
A. Recognition and measurement

Property, plant and equipments 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 Company.

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: 6 to 49 years

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

(b) Machinery and equipment: 3 to 6 years
(c) Transportation facilities: 5 to 6 years
(d) Office and other facilities: 3 to 6 years

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

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ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

(11) Lessee

At inception of a contract, the Company 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 Company 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 Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.

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 Company’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 an extension or termination option; or

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ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

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

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

B. As a lessor

When the Company 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 Company 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 Company considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

(12) 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 Company 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 assets that are acquired by the Company and have finite useful lives are measured at cost less accumulated amortization and any accumulated impairment losses.

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ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

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.

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 intangible assets of 1 to 5 years, 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.

(13) Impairment of non-financial assets

At each reporting date, the Company 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.

(14) Provisions

A provision is recognized if, as a result of a past event, the Company 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.

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ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

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.

(15) Revenue for contracts with customers

Revenue is measured based on the consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. The Company 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 Company’s main types of revenue are explained below.

A. Sale of goods

The Company involves in research, develop, design, manufacture and sale of broadband products, wireless networking products, and computer network system equipment and components. The Company 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 Company has objective evidence that all criteria for acceptance have been satisfied. The Company'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(14).

B. Product development services

The Company 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 Company has a right to invoice. Customers are invoiced on a monthly basis and consideration is payable when invoiced.

C. Financing component

The Company 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 Company does not adjust any of the transaction prices for the time value of money.

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ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

(16) Government grants

The Company recognizes an unconditional government grant related to research and development in profit or loss as other income when the grant becomes receivable. Grants that compensate the Company 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.

(17) Employee benefits
A. Defined contribution plans

Obligations for contributions to defined contribution plans are expensed as the related service is provided.

B. Defined benefit plans

The Company’s net obligation in respect of defined benefit plans is calculated separately for each 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 Company, 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 Company 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 Company 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 Company 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.

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ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

(18) 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 Company 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 Company 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.

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 below:

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 Company 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 Company has a legal 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 entity 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.

~23~

ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

Deferred tax assets are recognized for the carry forward of unused tax losses, 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.

(19) Business combination

The Company 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 Company 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.

For each business combination, the Company 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 Company’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.

(20) Earnings per share

The Company discloses basic and diluted earnings per share attributable to ordinary shareholders of the Company. Basic earnings per share is calculated as the profit attributable to the ordinary shareholders of the Company divided by the weighted-average number of ordinary shares outstanding. Diluted earnings per share is calculated as the profit attributable to ordinary shareholders of the Company, 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.

(21) Operating segments

The Company has disclosed operating segment information in consolidated financial statements. Hence, this information is not required to be disclosed in these parent-company-only financial statements.

~24~

ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

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

In preparing these parent-company-only 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 Company’s risk management and climate-related commitments where appropriate. Revisions to estimates are recognised prospectively in the period of the change and future periods.

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year is as follow:

Valuation of inventories

Inventories are measured at the lower of cost or net realizable value, the Company 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).

6. Explanation of significant accounts:

(1) Cash and cash equivalents

Cash on hand Checking and savings accounts Time deposits Cash and cash equivalents in the statement of cash flows	December 31, 2025 $ 163 372,213 - $ 372,376	December 31, 2024
		125 832,342 5,000
		837,467

Please refer to note 6(27) for the interest rate risk and sensitivity analysis of the financial assets and liabilities of the Company.

(2) Financial assets and liabilities

A. Financial assets and liabilities at fair value through profit or loss

Financial assets mandatorily measured at fair value through profit or loss – current Forward exchange contracts Foreignd exchange swaps	December 31, 2025 $ 6,247 2,408 $ 8,655	December 31, 2024
		65 225
		290

~25~

ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

Financial assets at fair value through profit or loss – non-current Unlisted stocks Financial liabilities held for trading – current Forward exchange contracts Foreign exchange swaps	December 31, 2025 $ 47,868 $ 68 930 $ 998	December 31, 2024
		-
		3,995 18,327
		22,322

The Company 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, were recognized as financial assets mandatorily measured at fair value through profit or loss and held-for-trading financial liabilities:

	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	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 20,000 USD 5,000 USD 3,000 CNY 10,000 USD 74,000	Currency Maturity date USD to CNY January 2025 USD to NTD January 2025 USD to VND January 2025 NTD to CNY January 2025 USD to NTD January 2025 ~ February 2025 December 31, 2025 December 31, 2024 $ 1,152,035 1,135,559
	USD to USD to USD to NTD to USD to
		1,135,559

(3) Accounts receivable, net

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

The Company 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, trade receivables 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.

~26~

ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

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

December 31, 2025	December 31, 2025
Gross carrying amount Weighted- average loss rate $ 3,271,611 0% 60,209 0% 66,888 100% $ 3,398,708 December 31, 2024		Loss allowance provision
		- - 66,888
		66,888

	Weighted- average loss rate 0% 0% 0% 100%	Loss allowance provision
		- - - 67,957
		67,957

The movement in the allowance for accounts receivable (including the overdue receivables and accounts receivable due from related parties) were as follows:

Balance at January 1 Impairment losses reversed Balance at December 31	2025 $ 67,957 (1,069) $ 66,888	2024 69,134 (1,177) 67,957

As of December 31, 2025 and 2024, no loss allowance was provided for accounts receivable due from related parties.

As of December 31, 2025 and 2024, accounts receivable and accounts receivable due 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	December 31, 2025 $ 1,040,493 51,736 93,727 $ 1,185,956	December 31, 2024
		834,256 77,959 117,140
		1,029,355

~27~

ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

Component of operating cost were as below:

Component of operating cost were as below:
Cost of goods sold Provision for inventory obsolescence and devaluation loss	For the years ended December 31,
	2025 $ 16,250,411 60,591 $ 16,311,002	2024
		11,341,181 169,418
		11,510,599

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

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

Non-current: Restricted deposits Refundable deposits Overdue receivables Less: loss allowances	December 31, 2025 $ 15,550 1,970 66,888 (66,888) $ 17,520	December 31, 2024 15,550 2,120 67,957 (67,957) 17,670

As of December 31, 2025 and 2024, the Company held domestic bank time deposits with variable interest rates, and the interest rates ranged were between 0.685% and 1.7%.

For the restricted 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”.

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

~28~

ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

(7) Business combination

On November 14, 2024 (the acquisition date), the Board of Directors resolved to purchase 7,127 thousand shares of Fiber Logic Communications, Inc. (hereinafter referred to as " Fiber Logic ") at a price of $71.80 per share, accounting for 31.66% of its outstanding shares, with a total consideration of $511,688 thousand. In the following month, the Company obtained control of Fiber Logic by securing more than half of the board seats and included it in the consolidated financial statements. Fiber Logic is primarily engaged in telecommunications and broadband network system services. The acquisition of Fiber Logic is in line with the Company's long-term development and business expansion strategy, aiming to enhance competitiveness by offering customers a diversified range of products and services. For details on the main categories of assets acquired, liabilities assumed, and goodwill recognized as of the acquisition date, please refer to the consolidated financial report for the year 2025.

(8) Investments in equity-accounted investees

Subsidiaries Unrealized profit or loss from sales	December 31, 2025 $ 7,862,327 (170,766) $ 7,691,561	December 31, 2024 7,762,137 (84,264) 7,677,873

A. Subsidiaries

Please refer to the consolidated financial statements for the year ended December 31, 2025.

B. The Company's shares of profit (loss) of subsidiaries were as follows:

Subsidiaries	For the years ended December 31,	For the years ended December 31,
	2025 $ (91,970)	2024 (151,208)

The Company's investment in equity-accounted investee was not pledged.

(9) Property, plant and equipment

Cost: Balance at January 1, 2025 Additions Disposals Reclassification Balance at December 31, 2025	Buildings $ 791,571 1,623 (6,523) - $ 786,671	Machinery and equipment 407,546 27,931 (65,407) 24,150 394,220	Office, transportation and other facilities 62,213 19,348 (4,449) 7,174 84,286	Total 1,261,330 48,902 (76,379) 31,324 1,265,177

~29~

ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

Balance at January 1, 2024 Additions Disposals Reclassification Balance at December 31, 2024 Depreciation and impairment loss: Balance at January 1, 2025 Depreciation Disposals Balance at December 31, 2025 Balance at January 1, 2024 Depreciation Disposals Balance at December 31, 2024 Carrying amounts: Balance at December 31, 2025 Balance at December 31, 2024 Balance at January 1, 2024	Buildings $ 787,094 5,261 (890) 106 $ 791,571 $ 362,441 26,063 (6,523) $ 381,981 $ 336,997 26,334 (890) $ 362,441 $ 404,690 $ 429,130 $ 450,097	Machinery and equipment 379,861 65,152 (37,467) - 407,546 187,188 78,370 (63,880) 201,678 149,457 73,961 (36,230) 187,188 192,542 220,358 230,404	Office, transportation and other facilities 58,244 22,619 (20,250) 1,600 62,213 22,927 16,955 (3,882) 36,000 31,301 11,876 (20,250) 22,927 48,286 39,286 26,943	Total 1,225,199 93,032 (58,607) 1,706 1,261,330 572,556 121,388 (74,285) 619,659 517,755 112,171 (57,370) 572,556 645,518 688,774 707,444

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

(10) Right-of-use assets

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

Cost: Balance at January 1, 2025 Additions Balance at December 31, 2025 Balance at January 1, 2024 Additions Disposals Balance at December 31, 2024	Land $ 186,191 - $ 186,191 $ 186,191 - - $ 186,191	Buildings - 17,928 17,928 17,966 - (17,966) -	Transportat ion and other facilities 5,465 - 5,465 7,981 2,139 (4,655) 5,465	Total 191,656 17,928 209,584 212,138 2,139 (22,621) 191,656

~30~

ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

							Transportat
							ion and
							other
			Land		Buildings		facilities	Total
	Accumulated depreciation:
	Balance at January 1, 2025	$	35,371		-		974	36,345
	Depreciation		5,895			5,976	1,059	12,930
	Balance at December 31, 2025	$	41,266			5,976	2,033	49,275
	Balance at January 1, 2024	$	29,475		11,978		3,901	45,354
	Depreciation		5,896			5,988	1,463	13,347
	Disposals		-		(17,966)		(4,390)	(22,356)
	Balance at December 31, 2024	$	35,371		-		974	36,345
	Carrying amounts:
	Balance at December 31, 2025	$	144,925		11,952		3,432	160,309
	Balance at December 31, 2024	$	150,820		-		4,491	155,311
	Balance at January 1, 2024	$	156,716			5,988	4,080	166,784
(11)	Intangible assets
							Software
							application
					Goodwill		and others	Total
	Cost:
	Balance at January 1, 2025			$	134,883		220,494	355,377
	Additions				-		66,081	66,081
	Derecognition				-		(100,494)	(100,494)
	Balance at December 31, 2025			$	134,883		186,081	320,964
	Balance at January 1, 2024			$	134,883		216,067	350,950
	Additions				-		86,451	86,451
	Derecognition				-		(82,024)	(82,024)
	Balance at December 31, 2024			$	134,883		220,494	355,377
	Amortization and impairment:
	Balance at January 1, 2025			$	-		160,856	160,856
	Amortization				-		73,817	73,817
	Derecognition				-		(100,494)	(100,494)
	Balance at December 31, 2025			$	-		134,179	134,179
	Balance at January 1, 2024			$	-		164,225	164,225
	Amortization				-		78,655	78,655
	Derecognition				-		(82,024)	(82,024)
	Balance at December 31, 2024			$	-		160,856	160,856
	Carrying amounts:
	Balance at December 31, 2025			$	134,883		51,902	186,785
	Balance at December 31, 2024			$	134,883		59,638	194,521
	Balance at January 1, 2024			$	134,883		51,842	186,725

~31~

ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

A. Amortization

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

comprehensive income:
Operating cost Operating expense Total	For the years ended December 31,
	2025 $ 1,225 72,592 $ 73,817	2024 1,638 77,017 78,655

B. Impairment test for goodwill

For purpose of impairment testing, the goodwill was allocated to the IP Camera cash generating unit.

As of December 31, 2025 and 2024, the recoverable amount of IP Camera cash generating unit has been determined based on a value in use calculation. The recoverable amount of this cash generating unit was greater than its carrying amount and no impairment loss was recognized.

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

Discount rate Terminal value growth rate	December 31, 2025 December 31, 2024 % 11.16 % 8.13 % 2.00 % 2.45

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 Company’s intangible assets were not pledged.

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

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

Business tax receivable Prepayments for equipment Others	December 31, 2025 $ 30,876 168 14,738 $ 45,782	December 31, 2024
		37,287 31,325 16,436
		85,048

~32~

ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

Other current assets Other non-current assets (13) Short-term borrowings Unsecured bank loans Unused creditlines (including long-term borrowings) Range of interest rates	December 31, 2025 $ 45,614 168 $ 45,782 December 31, 2025 $ 200,000 $ 8,632,196 1.81%	December 31, 2024
		53,159 31,889
		85,048
		December 31, 2024
		-
		6,000,097
		-

(14) Provisions

Balance at January 1, 2025 Provisions made during the year Provisions used during the year Balance at December 31, 2025 Balance at January 1, 2024 Provisions made during the year Provisions used during the year Balance at December 31, 2024	Warranties $ 164,537 148,625 (143,697) $ 169,465 $ 245,233 72,209 (152,905) $ 164,537

The provision for warranties relates mainly to network product sold 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 Company expects to settle the majority of the liability over the next year.

(15) Other current liabilities

Payroll and bonus payable Temporary receipts Others Lease liabilities Current Non-current	December 31, 2025 $ 279,928 49,749 6,103 $ 335,780 December 31, 2025 $ 12,787 $ 168,185	December 31, 2024
		313,479 28,606 10,964
		353,049
		December 31, 2024
		6,729
		168,983

(16) Lease liabilities

~33~

ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

For the maturity analysis, please refer to note 6(27).

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,	For the years ended December 31,
	2025 $ 2,303 $ 508	2024
		2,304
		1,713

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 $ 15,479	2024
		17,027

A. Real estate leases

As of December 31, 2025 and 2024, the Company leases land for factory and office buildings use. The leases of land typically run for a period of 19 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.

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

As of December 31, 2025 and 2024, the Company leased office facilities, transportation equipment, and other assets, with lease terms ranging from three to seven years. In some cases, the Company 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.

As of December 31, 2025 and 2024, the Company has elected not to recognize right-of-use assets and lease liabilities for short-term leases of warehouse, parking space, staff dormitories and printers or low-value assets.

(17) 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 $ 221,810 (165,305) $ 56,505	December 31, 2024 214,965 (161,279) 53,686

~34~

ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

The Company 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 monthly salary for the six months prior to retirement.

(a) Composition of plan assets

The Company 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 Company’ s Bank of Taiwan labor pension reserve account balance amounted to $165,305 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.

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

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

Defined benefit obligations at January 1 Benefits paid from the plan assets Current service costs and interest cost Remeasurements loss (gain): `－`Actuarial loss (gain) arising from experience adjustment `－`Actuarial loss (gain) arising from financial assumptions Defined benefit obligations at December 31	For the years ended December 31, 2025 2024 $ 214,965 251,121 (11,513) (20,695) 3,820 3,616 7,463 (8,997) 7,075 (10,080) $ 221,810 214,965
	2025 $ 214,965 (11,513) 3,820 7,463 7,075 $ 221,810

~35~

ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

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

Fair value of plan assets at January 1 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 $ 161,279 145,878 (11,513) (20,695) 11,010 12,208 1,772 21,850 2,757 2,038 $ 165,305 161,279
	2025 $ 161,279 (11,513) 11,010 1,772 2,757 $ 165,305

(d) Expenses recognized in profit or loss

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

Current service costs Net interest of net liabilities for defined benefit obligation Expected return on plan assets Operating costs Selling expenses Administration expenses Research and development expenses Actual return on plan assets	For the years ended December 31, 2025 2024 $ 166 352 3,654 3,264 (2,757) (2,038) $ 1,063 1,578 $ 532 576 128 131 (299) 137 702 734 $ 1,063 1,578 $ 13,767 14,246
	2025 $ 166 3,654 (2,757) $ 1,063 $ 532 128 (299) 702 $ 1,063 $ 13,767

(e) Actuarial assumptions

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

Discount rate Future salary increasing rate	December 31, 2025 December 31, 2024 % 1.40 % 1.70 % 3.00 % 3.00

The expected allocation payment to be made by the Company to the defined benefit plans for the one-year period after the reporting date is $9,776 thousand.

The weighted-average lifetime of the defined benefit plans is 10.8 years.

~36~

ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

(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% $ (5,915) 6,116 $ 5,453 (5,313) $ (6,018) 6,233 $ 5,603 (5,449)
	Increase 0.25% $ (5,915) $ 5,453 $ (6,018) $ 5,603

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.

B. Defined contribution plans

The Company contributes 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 Company allocates a fixed amount to the Bureau of Labor Insurance without additional legal or constructive obligation.

The pension costs under defined contribution plans amounted to $58,304 thousand and $58,860 thousand for the years ended December 31, 2025 and 2024, respectively.

(18) Income taxes

A. Income tax expenses

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

Current tax expense (benefit) Current period Adjustment for prior periods Deferred tax expense (benefit) Origination and reversal of temporary differences Income tax expense (benefit)	For the years ended December 31, 2025 2024 $ 4,928 41,405 - (44,277) 4,928 (2,872) (33,188) 60,635 $ (28,260) 57,763
	2025 $ 4,928 - 4,928 (33,188) $ (28,260)

~37~

ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

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

Exchange differences on translation of foreign financial statements	For the years ended December 31,	For the years ended December 31,
	2025 $ (18,320)	2024
		55,689

Reconciliation of income tax expense (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 the Company’s domestic tax rate Permanent differences Tax incentives Change in unrecognized temporary differences and others Income tax expense (benefit)	For the years ended December 31,	For the years ended December 31,
	2025 $ (222,130) (44,426) 39,447 (2,050) (21,231) $ (28,260)	2024
		276,390
		55,278 48,503 (17,096 (28,922
		57,763

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	December 31, 2025 $ 274,660	December 31, 2024
		297,701

(b) 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 warranties Exchange different on transaction of foreign financial statement Unrealized profit from sales Others	January 1, 2024 $ 44,573 25,574 44,726 14,729 $ 129,602	Recogn- ized in profit and loss	Recognized in other comprehen- sive income	Recognized in other comprehen- sive income	December 31, 2024 18,099 - 12,777 15,096 45,972	Recogn- ized in profit and loss	Recognized in other comprehen- sive income	Recognized in other comprehen- sive income	December 31, 2025
		(26,474) - (31,949) 367 (58,056)		- (25,574) - - (25,574)		9,015 - 17,301 5,861 32,177		- - - - -	27,114 - 30,078 20,957 78,149

~38~

ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

Deferred tax liabilities:

Investment accounted for using equity method Goodwill Exchange difference on translation of foreign financial statement Others	January 1, 2024 $ (50,709) (26,976) - (6,362) $ (84,047)	Recogn- ized in profit and loss	Recognized in other comprehen- sive income	Recognized in other comprehen- sive income	December 31, 2024 (53,794) (26,976) (30,115) (5,856) (116,741)	Recogn- ized in profit and loss	Recognized in other comprehen- sive income	Recognized in other comprehen- sive income	December 31, 2025
		(3,085) - - 506 (2,579)		- - (30,115) - (30,115)		(3,653) - - 4,664 1,011		- - 18,320 - 18,320	(57,447) (26,976) (11,795) (1,192)
									(97,410)

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

(19) 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 the Company 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 in both years.

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 interests 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.

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ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

On February 27, 2025, the Company resolved in a board meeting 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, the Company resolved in a board meeting 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.

C. Retained earnings

The Company’s articles of incorporation stipulated that Company’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, a shareholders meeting will be held to decide on this matter.

According to the R.O.C. Company Act, the Company 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 in Board of Directors’ meeting and is submitted to the shareholders’ meeting.

According to the Company’s dividend policy, the Company 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 a 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 priorperiod 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.

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ALPHA NETWORKS INC.

Notes to the Parent-Company-Only 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 dividends	Earning distribution Dividends per share $ 25,086 (179,989) 270,859 0.50 $ 115,956

The above-mentioned earnings distribution was consistent with the resolutions approved by 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	Earning distribution Dividends per share $ 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 the 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.

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ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

E. Other equity

Differences on translation of foreign operation financial statements Balance at January 1, 2025 $ (63,838) Differences on translation of foreign operation financial statements (91,599) Income tax related to components of other comprehensive income that will be reclassified to profit or loss 18,320 Share of other comprehensive income of subsidiaries accounted for using equity method - Disposal of investments in equity instruments designated at fair value through other comprehensive income - Balance at December 31, 2025 $ (137,117) 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) Disposal of subsidiaries equity in subsidiaries (43,579) Share of other comprehensive income of subsidiaries accounted for using equity method - Disposal of investment in equity instruments designated at fair value through other comprehensive income - Balance at December 31, 2024 $ (63,838)	Differences on translation of foreign operation financial statements	Unrealized gains (losses) on financial assets at fair value through other comprehensive income (24,155) - - 9,661 (6,719) (21,213) 18,614 - - - (42,225) (544) (24,155)	Equity related to non-current assets held for sale - - - - - - (43,579) - - 43,579 - - -	Total
				(87,993) (91,599) 18,320 9,661 (6,719) (158,330) (267,983) 278,448 (55,689) - (42,225) (544) (87,993)

(20) Earnings per share

A. Basic earnings per share

Profit (loss) attributable to the Company’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

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ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

B. Diluted earnings per share

Profit (loss) attributable to the Company'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

(21) Revenues

A. The details of revenues were as follows:

Primary geographical markets: United States Taiwan 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 $ 8,491,176 6,598,103 3,090,916 $ 18,180,195 $ 6,958,695 7,761,692 1,714,386 1,745,422 $ 18,180,195	2024
		7,573,184 3,347,492 2,429,396
		13,350,072
		6,323,659 4,481,818 1,345,627 1,198,968
		13,350,072

B. Contract balances

Accounts receivable (including related parties) Contract liabilities	December 31, 2025 $ 3,331,820 $ 411,745	December 31, 2024 3,042,859 872,474	January 1, 2024
			3,784,053
			679,237

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

The amounts of revenue recognized for the years ended December 31, 2025 and 2024 that were included in the contract liabilities balance at the beginning of the period were $585,991 thousand and $179,813 thousand, respectively.

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ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

(22) Remuneration to employees and directors

On May 27, 2025, the Company resolved at the shareholders’ meeting to amend its Articles of Incorporation. According to the amended Articles, if the Company 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 no more than 1% as remunerations for directors. The recipients of the aforementioned employee remuneration, whether in the form of shares or cash, may include employees of the Company’s affiliated companies who meet certain specific requirements. Prior to the amendment, the Articles of Incorporation stipulated that, if the Company 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 remunerations for directors. The recipients of the aforementioned employee remuneration, whether in the form of shares or cash, could include employees of the Company’s affiliated companies who met certain specific requirements.

For the year ended December 31, 2025 and 2024, the Company accrued and recognized its remuneration to employees amounting to $0 thousand and $30,968 thousand, respectively, and the remuneration for 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 Company’ s articles. These remunerations 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’ meeting is consistent with the estimated amount as stated in the parent-company-only financial statements for the years 2025 and 2024.

(23) Interest income

The details of the Company'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 $ 41,358	2024
		56,214

(24) Other income

The details of the Company's other income of 2025 and 2024 were as follows:

Government grants income Others	For the years ended December 31,	For the years ended December 31,
	2025 $ 5,434 19,106 $ 24,540	2024
		32,985 10,951
		43,936

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ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

(25) Other gains and losses

The details of the Company's other gains and losses of 2025 and 2024 were as follows:

Gain on disposal of subsidiaries, net (note 6(6)) Gain (loss) on 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 63,726 (211,713) (82,225) 127,168 4,754 (170) $ (13,745) 369,176
	2025 $ - 63,726 (82,225) 4,754 $ (13,745)

(26) Finance costs

The details of the Company's finance costs of 2025 and 2024 were as follows:

Interest expense of borrowings, etc. Interest expense of lease liabilities Others	For the years ended December 31,	For the years ended December 31,
	2025 $ 2,480 2,303 139 $ 4,922	2024
		5,047 2,304 65
		7,416

(27) Financial instruments
A. Credit risk
- (a) Credit risk exposure

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

(b) Concentration of credit risk

The major customers of the Company are centralized in the networking related industries. The Company generally sets credit limits to its customers according to their credit evaluations. Therefore, the credit risk of the Company is mainly influenced by the networking industry. As of December 31, 2025 and 2024, 73% and 69%, respectively, of the Company’ s accounts receivable (including related parties) were from the top 3 customers. Although there is a potential in concentration of credit risk, the Company routinely assesses the collectability of its accounts receivable and makes a corresponding allowance for doubtful accounts.

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

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ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

Other financial assets measured at amortized cost include restricted deposits and refundable 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 loss. Regarding how the financial instruments are considered to have low credit risk, please refer to note 4(6).

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 Accounts payable to related parties Other payables to related parties Accrued expenses Lease liabilities Derivative financial liabilities Forward exchange contracts: Outflows Inflows Foreign exchange swaps: Outflows Inflows December 31, 2024 Non-derivative financial liabilities Accounts payable Accounts payable to related parties Other payables to related parties Accrued expenses Lease liabilities Derivative financial liabilities Forward exchange contracts: Outflows Inflows Foreign exchange swaps: Outflows Inflows	Carrying amount $ 200,000 638,192 2,526,445 97,758 211,577 180,972 68 (6,247) 930 (2,408) $ 3,847,287 $ 603,378 1,461,640 100,234 230,188 175,712 3,995 (65) 18,327 (225) $ 2,593,184	Contractual cash flows (200,297) (638,192) (2,526,445) (97,758) (211,577) (208,831) (875,849) 882,028 (1,141,179) 1,142,657 (3,875,443) (603,378) (1,461,640) (100,234) (230,188) (205,705) (920,517) 916,587 (2,466,722) 2,448,620 (2,623,177)	Within 1 year (200,297) (638,192) (2,526,445) (97,758) (211,577) (14,972) (875,849) 882,028 (1,141,179) 1,142,657 (3,681,584) (603,378) (1,461,640) (100,234) (230,188) (8,939) (920,517) 916,587 (2,466,722) 2,448,620 (2,426,411)	1 to 5 years - - - - - (39,903) - - - - (39,903) - - - - (34,949) - - - - (34,949)	More than 5 years - - - - - (153,956) - - - - (153,956) - - - - (161,817) - - - - (161,817)

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ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

C. Currency risk
(a) Exposure to currency risk

The Company’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 CNY Non-Monetary items USD	December 31, 2025 Foreign currency Exchange rate NTD $ 115,763 31.43 3,638,445 7,524 4.4952 33,820 1,523 31.43 47,868 57,000 31.43 Note 10,000 4.4952 Note 100,466 31.43 3,157,639 17,580 4.4952 79,026 5,900 31.43 Note	December 31, 2025 Foreign currency Exchange rate NTD $ 115,763 31.43 3,638,445 7,524 4.4952 33,820 1,523 31.43 47,868 57,000 31.43 Note 10,000 4.4952 Note 100,466 31.43 3,157,639 17,580 4.4952 79,026 5,900 31.43 Note	December 31, 2024	December 31, 2024
	Foreign currency $ 115,763 7,524 1,523 57,000 10,000 100,466 17,580 5,900	Exchange rate 31.43 4.4952 31.43 31.43 4.4952 31.43 4.4952 31.43	Foreign currency 118,455 1,045 - 8,000 10,000 68,537 11,143 94,000	Exchange rate NTD 32.79 3,883,547 4.4915 4,694 - - 32.79 Note 4.4915 Note 32.79 2,246,986 4.4915 50,049 32.79 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 Company's exposure to foreign currency risk arises from the foreign currency exchange gains and losses resulted from the translation of cash and cash equivalents, trade receivables, other receivables, short-term borrowings, trade payables and other payables which are denominated in foreign currencies. A strengthening (weakening) of 1% of the NTD against the USD and the CNY at December 31, 2025 and 2024, would have increased or decreased the profit (loss) before income tax by $4,356 thousand and $15,912 thousand, respectively. The analysis assumed that all other variables remain constant, and performed on the same basis for both periods.

Information on the foreign exchange gains or losses (including realized and unrealized portions) by the Company's monetary items, was as follows:

For the years ended December 31,	For the years ended December 31,	For the years ended December 31,
2025		2024 Foreign exchange gains (losses) Average rate 128,772 32.0352 (1,579) 4.4570 (25) 127,168
Foreign exchange gains (losses) $ (81,148) (174) (903) $ (82,225)	Average rate
	31.1017 4.3145

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ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

D. Interest rate analysis

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

The Company had no financial assets or financial liabilities with floating interest rates for the years ended December 31, 2025 and 2024.

E. Fair value of financial instruments
(a) Fair value hierarchy

The Company 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 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.

December 31, 2025	December 31, 2025	December 31, 2025
	Fair Value
Level 1 Level 2 Level 3 - 8,655 - - - 47,868 - 8,655 47,868 - 998 - December 31, 2024			Total
			8,655 47,868
			56,523
			998

	Fair Value
Level 1 -	Level 2 290	Level 3 -	Total
			290

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ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

December 31, 2024	December 31, 2024	December 31, 2024
	Fair Value
Level 1 -	Level 2 22,322	Level 3 -	Total
			22,322

(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.

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

For publicly traded stock 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 a 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 Company’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.

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ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

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 Recognized in profit or loss Ending balance, December 31, 2025 Opening balance, January 1, 2024 Disposal Ending balance, December 31, 2024	Fair value through profit of loss $ - 49,131 (1,263) $ 47,868 Fair value through other comprehensive income $ 31,429 (31,429) $ -

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

The Company’s financial instruments that use Level 3 inputs to measure fair value include “financial assets measured at fair value through profit or loss – equity investment” and “ financial assets measured at fair value through other comprehensive income – limited partnership”.

The Company’s Level 3 equity investments in inactive markets contain multiple significant unobservable inputs. As the significant unobservable inputs of equity investments in inactive markets are independent of one another, no interrelationships exist among them.

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ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

Quantified information of significant unobservable inputs was as follows:

Item Financial assets at fair value through profit or loss`－`equity investments	Valuation technique Market approach (Total enterprise value to EBITDA of comparable companies)	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.

(28) Financial risk management
A. Overview

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

(a) credit risk
(b) liquidity risk
(c) market risk

The following likewise discusses the Company'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 parent-companyonly 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. The Audit Committee is responsible for monitoring the compliance of the Company’s risk management policies and procedures, and review the appropriateness of the Company’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 Company'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 Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers and investments in securities.

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ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

(a) Accounts receivable and other receivables

The Company has established a credit policy, under which, each new customer is analyzed individually for creditworthiness before the Company’ 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 Company’s benchmark creditworthiness may transact with the Company only on a prepayment basis.

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

(b) Investments

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

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

D. Liquidity risk

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

Bank borrowings is an essential liquidity source for the Company.

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

(a) Foreign currency risk

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

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ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

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

(b) Other market price risk

The Company 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 Company does not actively trade in these investments. Therefore, the Company will be exposed to the risk of market price changes in this equity securities.

(29) Capital management

The Company’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 Company 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 Company 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 equity.

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 Company’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 $ 4,972,453 (372,376) $ 4,600,077 $ 9,123,830 % 50.42	December 31, 2024 4,197,899 (837,467) 3,360,432 9,914,908 % 33.89

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

(30) Non-cash investing and financing activities

The Company’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(10).

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ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

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

Lease liabilities Short-term borrowings Total liabilities from financing activities Lease liabilities Total liabilities from financing activities	January 1, 2025 $ 175,712 - $ 175,712 January 1, 2024 $ 186,677 $ 186,677	Cash flows (12,668) 200,000 187,332 Cash flows (13,010) (13,010)	Other 17,928 - 17,928 Other 2,045 2,045	December 31, 2025
				180,972 200,000
				380,972
				December 31, 2024
				175,712
				175,712

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 Company, holds 54.60% of the Company’s outstanding shares and had issued the consolidated financial statements available for public use.

(2) Names and relationship with subsidiaries and other related parties which have transactions with the Company during the periods covered in the parent-company-only financial statements were as follows:

Name of related party	Relationship with the Company
Qisda	Parent company
AEWIN Technologies Co., Ltd.(AEWIN Technologies)	Qisda's subsidiary
BenQ Asia Pacific Corp (BQP)	Qisda's subsidiary
BenQ Healthcare Corporation (BHC)	Qisda's subsidiary
Global Intelligence Network Co., Ltd. (Ginnet)	Qisda's subsidiary
Concord Medical Co., Ltd. (Concord)	Qisda's subsidiary
BenQ Material Corp. (BMC)	Qisda's subsidiary
Simula Technologies Inc. (Simula)	Qisda's subsidiary
Metaage Corporation (Metaage)	Qisda's subsidiary
Golden Spirit Co., Ltd. (GSC)	Qisda's subsidiary
DFI Inc. (DFI)	Qisda's subsidiary
ACE Energy Co., Ltd. (ACE Energy)	Qisda's subsidiary
Yun yun AI Baby camera Co., Ltd. (Yun yun)	Qisda's subsidiary
Rapidtek Technologies Inc. (Rapidtek Technologies)	Qisda's associate
Unictron Technologies Corporation (Unictron Technologies)	Qisda's associate
Darfon Electronirs Corp. (DFN)	Qisda's associate

~54~

ALPHA NETWORKS INC. Notes to the Parent-Company-Only Financial Statements

Name of related party

Alpha Solutions Co., Ltd. (Alpha Solutions) Alpha Networks Inc. (Alpha USA) Alpha Networks (Hong Kong) Limited (Alpha HK) Alpha Networks Vietnam Company Limited (Alpha VN) Alpha Technical Services Inc. (ATS)

D-Link Asia Investment Pte. Ltd. (D-Link Asia) (Note 1) Alpha Networks (Chengdu) Co., Ltd. (Alpha Chengdu) Mirac Networks (Dongguan) Co., Ltd (Mirac) (Note 6) Alpha Networks (Dongguan) Co., Ltd. (Alpha Dongguan) (Note 1)

Alpha Networks (Changshu) Co., Ltd (Alpha Changshu) Enrich Investment Corporation (Enrich Investment) Transnet Corporation (Transnet) Hitron Technologies Inc. (Hitron)

Interactive Digital Technologies Inc. (Interactive Digital) Hitron Technologies (SIP) Inc (Hitron Suzhou) Hitron Technologies (Samoa) Inc (Hitron Samoa) Jietech Trading (Suzhou) Inc. (Jietech Suzhou) Hitron Technologies Europe Holding B.V. (Hitron Europe) Hitron Technologies (America) Inc. (Hitron America) Innoauto Technologies Inc. (Innoauto Technologies) (Note 3) Hitron Technologies (Vietnam) Inc. (Hitron Vietnam) Hwa Chi Technologies (Shanghai) Inc. (Hwa Chi Technologies)

Aespula Technology INC. (Aespula) (Note 4)

Alpha Electronics Trading (Changshu), Ltd. (Alpha Changshu Trading) Fiber Logic Communication, Inc. (Fiber Logic) (Note 2) Indialpha Technect Private Limited ( INDIALPHA) (Note5) BenQ Foundation

Relationship with the Company The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary

The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary

The Company’s subsidiary The Company’s subsidiary

The Company’s subsidiary The Company’s subsidiary Substantive related party

Note 1: 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 non-current assets held for sale. The abovementioned transaction had been completed in the second quarter of 2024.
Note 2: In November 2024, the Company and Interactive Digital acquired the equity interests of Fiber Logic. Although the shareholding percentage does not exceed 50%, the Company is able to exercise effective control over its operating and financial policies; therefore, Fiber Logic is included in the consolidated financial statements.
Note 3: Innoauto Technologies has completed the liquidation process as of the reporting date.

~55~

ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

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

Note 5: In July 2024, the Company established a new subsidiary named INDIALPHA TECHNET PRIVATE LIMITED.
Note 6: On October 31,2025, Mirac’ s Board of Directors had approved the dissolution. The liquidation process is currently in progress.
(3) Significant related-party transactions
A. Sales

The amounts of sales to related parties were as follows:

Subsidiary`－`Hitron Subsidiary`－`Alpha USA Subsidiary`－`others Other related parties	For the years ended December 31,	For the years ended December 31,
	2025 $ 5,256,045 4,665,959 699 59,169 $ 9,981,872	2024
		1,902,110 4,165,372 25,138 717
		6,093,337

The Company’ s service revenue from Hitron amounted to $79,734 thousand and $67,035 thousand for the years 2025 and 2024, respectively.

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 were 30 to 90 days, while those for related parties were 60 to 90 days for the years 2025 and 2024.

For the years ended December 31, 2025 and 2024, due to sales transactions between the Company and investments in equity-accounted investees, net changes in unrealized profit on sales amounting to $(86,502) thousand and $144,004 thousand, respectively.

B. Purchases

The amounts of purchases by the Company from related parties were as follows:

Parent company Subsidiary`－`Alpha Changshu Subsidiary`－`Alpha HK Subsidiary`－`Others Other related parties	For the years ended December 31,	For the years ended December 31,
	2025 $ 212 1,735,954 11,623,952 - 12,236 $ 13,372,354	2024
		404 4,487,390 5,092,433 14,721 8,529
		9,603,477

~56~

ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

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 120 days after purchase.

The Company purchases raw materials through Alpha HK on behalf of Alpha Changshu and Alpha VN. After the production by Alpha Changshu and Alpha VN, the Company will buy back the finished products and sell the products to customers of the Company. For the years ended December 31, 2025 and 2024, the Company purchased raw materials through Alpha HK on behalf of Alpha Changshu and Alpha VN amounting to $728,541 thousand and $944,537 thousand, respectively, at cost. The revenue and cost of goods sold are not recognized in the parent-company-only financial statements.

The accounts receivable and accounts payable arising from the abovementioned transactions are settled on a net basis.

C. Receivables from related Parties

The receivables from related parties were as follows:

Account Accounts receivable from related parties Accounts receivable from related parties Accounts receivable from related parties Accounts receivable from related parties	Relationship	December 31, 2025 $ 1,293,910 859,824 45 26,006 $ 2,179,785	December 31, 2024
	Subsidiary`－`Alpha USA Subsidiary`－`Hitron Subsidiary`－`Others Other related parties		896,523 1,006,398 4,379 -
			1,907,300

D. Payables to related Parties

The payables to related parties were as follows:

Account Accounts payable to related parties Accounts payable to related parties Accounts payable to related parties Accounts payable to related parties Accounts payable to related parties	Relationship	December 31, 2025 $ 6 1,244,503 1,275,249 2,685 4,002 $ 2,526,445	December 31, 2024
	Parent company Subsidiary`－`Alpha Changshu Subsidiary`－`Alpha HK Subsidiary`－`Others Other related parties		- 776,482 677,961 314 6,883
			1,461,640

~57~

ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

E. Commission costs

The commission costs to related parties for developing market business were as follows:

Subsidiary`－`Alpha Solutions Account Relationship Other payables to related parties Subsidiary`－`Alpha Solutions	For the years ended December 31,	For the years ended December 31,
	2025 $ 7,863 December 31, 2025 $ 2,094	2024
		13,239
		December 31, 2024
Subsidiary`－`Alpha Solutions		3,247

F. Rendering of services and other expenses

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

Parent company Subsidiary`－`Alpha Chengdu Subsidiary`－`ATS Subsidiary`－`Others Other related parties	For the years ended December 31,	For the years ended December 31,
	2025 $ 368 273,888 57,279 1,113 1,793 $ 334,441	2024
		689 239,980 56,466 16,948 1,370
		315,453

The payables to related parties were as follows:

Account	Relationship	December 31, 2025 $ 287 79,025 15,666 500 $ 95,478	December 31, 2024
Other payables to related parties Other payables to related parties Other payables to related parties Other payables to related parties	Parent company Subsidiary`－`Alpha Chengdu Subsidiaries`－`Others Other related parties		596 50,044 17,802 398
			68,840

~58~

ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

G. Property transactions

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

Subsidiary`－`Transnet Subsidiary`－`Hitron Subsidiary`－`Interactive Digital Subsidiary`－`Alpha VN Other related parties	For the years ended December 31,	For the years ended December 31,
	2025 $ 7,350 - 218 840 4,645 $ 13,053	2024
		14,600 18,809 7,375 - 3,043
		43,827

The amounts of payable to related parties were as follows:

Account Other payables to related parties Other payables to related parties	Relationship	December 31, 2025 $ 76 110 $ 186	December 31, 2024
	Subsidiaries Other related parties		25,804 2,343
			28,147

H. Endorsement guarantees

The endorsement guarantees to related parties were as follow:

Subsidiaries	December 31, 2025 December 31, 2024 USD 7,000 USD 7,000

I. Loans to related parties

The loans to related parties and interest income were as follows:

Relationship	December 31, 2025 December 31, 2024 $ 323,984 337,667 For the years ended December 31,	December 31, 2024
Subsidiary`－`Alpha VN Relationship		337,667
	2025 $ 9,309	2024
Subsidiary`－`Alpha VN		9,664

J. Other income

The Company is a corporate director of a subsidiary, Hitron Technologies, wherein the remuneration to directors amounting to $5,409 thousand and $6,000 thousand recognized as other income for the years ended December 31, 2025 and 2024, respectively. The above balances had been fully paid as of the period.

~59~

ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

The Company leased out an office to Transnet. The rental income for the years ended December 31, 2025 and 2024 amounted to $86 thousand and $57 thousand, respectively. The rental income received in advance from Transnet as of December 31, 2025 and 2024 amounted to $24 thousand and $14 thousand, respectively, and was recognized as other current liabilities.

K. Dividends

The Company’s subsidiary, Hitron, declared cash dividends of $60,000 thousand for the year 2024 on February 26, 2024, based on a resolution approved by the Board of Directors. The dividends had been fully paid as of December 31, 2024.

The Company’ s subsidiary, Fiber Logic, declared the cash dividends amounting to $6,840 thousand and $14,253 thousand on March 26, 2025 and May 28, 2024, respectively, based on resolutions approved by the Board of Directors. The above abovementioned dividends had been fully paid as of December 31, 2025 and 2024.

(4) Key management personnel compensation

Short-term employee benefits ledged 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)	Object Import guarantee for customs Guarantee for land lease	For the years ended December 31, 2025 2024 $ 25,883 29,507 December 31, 2025 December 31, 2024 $ 7,550 7,550 8,000 8,000 $ 15,550 15,550	For the years ended December 31, 2025 2024 $ 25,883 29,507 December 31, 2025 December 31, 2024 $ 7,550 7,550 8,000 8,000 $ 15,550 15,550
		2025 $ 25,883 December 31, 2025 $ 7,550 8,000 $ 15,550
			7,550 8,000
			15,550

8. Pledged assets:

9. Significant commitments and contingencies:

(1) As of December 31, 2025 and 2024, the Company deposited notes and guarantees in the bank amounting to $8,864,629 thousand and $6,733,789 thousand, respectively in order to obtain the credits limit of bank financing, foreign exchange facilities and contracts of government grants.
(2) The Company had entered into technology license agreement with suppliers. According to the agreement, the Company is obligated to make payments for technology license fee and royalty based on the total sales of products by using such technology.
(3) Please refer to note 7(3) for further details related to endorsement guarantees.

~60~

ALPHA NETWORKS INC. Notes to the Parent-Company-Only Financial Statements

10. Losses due to major disasters: None.

11. Subsequent events: None.

12. Other:

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

By function By item	2025	2025	2025	2024	2024	2024
	Cost of sales	Operation expenses	Total	Cost of sales	Operation expenses	Total
Employee benefits Salary Labor and health insurance Pension Remuneration of directors Others Depreciation Amortization	286,605 29,013 12,881 - 20,179 44,998 1,225	984,478 77,603 46,486 12,820 54,458 89,320 72,592	1,271,083 106,616 59,367 12,820 74,637 134,318 73,817	302,086 30,210 12,830 - 19,988 49,357 1,638	1,041,380 79,014 47,608 15,223 47,035 76,161 77,017	1,343,466 109,224 60,438 15,223 67,023 125,518 78,655

Additional information on the number of employees and employee benefits was as follows:

The number of employees The number of directors who are not holding as a position of employee The average of employee benefits The average of salaries The average of salary adjustment rate Remuneration of supervisors	For the years ended December 31,	For the years ended December 31,
		2024
		1,170
		7
		1,359
		1,155
		-

The Company's salary and remuneration policy (including directors, managers and employees) are as follows:

(1) The remuneration of the Company’ s directors and supervisors is determined by reference to the Company's overall operating performance, value and development trends of the industry. The payment of directors and supervisors remuneration are reviewed by the Remuneration Committee and approved by the Board of Directors.
(2) The remuneration of the managers and employees includes salary, bonus and employee remuneration. The wages of the employees are paid based on their position, the complexity of their work value, the trends of the industry and the Company’s operating performance. In addition to the fixed remuneration, the variable remuneration is distributed based on employee performance and contribution in order to motivate employees. Remuneration for employees is in accordance with the Company’ s articles of association and implemented by the approval of the Board of Directors’ meeting and reported to the shareholders’ meeting.

~61~

ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

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 Company:

A. Financing provided to other parties: Please refer to Table 1.
B. Guarantees and endorsements provided to other parties: Please refer to Table 2.
C. Information regarding securities held at the reporting date (excluding investment insubsidiaries, 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.
(2) Information on investees (excluding information on investees in Mainland China): Please refer to Table 5.
(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 6.
B. Limitation on investment in Mainland China: Please refer to Table 6.
C. Significant transactions:

The significant inter-company transactions with the subsidiaries in Mainland China are disclosed in “Information on significant transactions”.

14. Segment information:

Please refer to consolidated financial statements for the year ended December 31, 2025.

~62~

Table 1

(In Thousands of New Taiwan Dollars)

Alpha Networks Inc.

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	The Company 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.

~63~

Alpha Networks Inc.

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 (Amount)	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	The Company	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.

~64~

Alpha Networks Inc.

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)
The Company The Company The Company The Company Alpha HK Alpha HK Alpha VN Hitron Hitron	Alpha USA Alpha Changshu Hitron Alpha HK Alpha Changshu Alpha VN Alpha HK Hitron America Hitron Europe	Subsidiary of the Company Subsidiary of the Company Subsidiary of the Company Subsidiary of the Company 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% -%

~65~

Alpha Networks Inc.

Receivables from related parties with amounts exceeding the lower of $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
The Company The Company The Company Alpha Changshu Alpha HK Alpha HK Alpha HK Alpha VN Hitron Alpha Chengdu Hitron	Alpha USA Hitron Alpha VN The Company Alpha Changshu Alpha VN The Company Alpha HK Hitron America Alpha Changshu Hitron VN	Subsidiary of the Company Subsidiary of the Company Subsidiary of the Company 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 2

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

Note 2: It is not applicable for the calculation of turnover days for other receivables not generated from sales.

~66~

Alpha Networks Inc.

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

For the year ended December 31, 2025

Table 5

(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	Net income (losses) of investee	Share of profits/ losses of investee	Note
				December 31, 2025	December 31, 2024	Shares (thousands)	Percentage of ownership	Carrying value
The Company The Company The Company The Company The Company The Company The Company The Company The Company Enrich Investment Enrich Investment Enrich Investment	Alpha Solutions Alpha USA Alpha HK ATS Enrich Investment Hitron Alpha VN INDIALPHA Fiber Logic Interactive Digital Aespula INDIALPHA	Japan USA Hong Kong USA Taiwan Taiwan Vietnam India Taiwan Taiwan Taiwan India	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 commumication products and service Telecommunication and broadband network system services Sale of network equipment components and technical services Sale of network products	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	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 -	1 1,500 485,791 8,100 40,000 200,000 note 3 10,500 6,841 2,575 8,000 -	% 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 62.24 % 100.00 % 99.99 % 30.39 % 5.06 % 98.92 % 0.01	16,295 199,048 1,227,405 206,016 325,425 3,713,643 1,169,435 23,598 467,571 117,565 - 1	246 12,013 (46,809) 5,443 32,732 (116,632) 45,139 (8,291) (32,132) 294,086 (14,951) -	246 12,013 (50,131) 5,443 32,732 (125,008) 45,139 (8,291) (21,024) notes 1 note 1, 2. 4 note 1

~67~

Name of investor	Name of investee	Location	Main businesses and products	Original investment amount	Original investment amount	Balance a	s of December 31, 2025	s of December 31, 2025	Net income (losses) of investee	Share of profits/ losses of investee	Note
				December 31, 2025	December 31, 2024	Shares (thousands)	Percentage of ownership	Carrying value
Hitron Hitron Hitron Hitron Hitron Hitron Interactive Digital Interactive Digital	Hitron Samoa Interactive Digital Hitron Vietnam Hitron America Hitron Europe Innoauto Technologies Transnet Fiber Logic	Samoa Taiwan Vietnam USA Netherlands Taiwan Taiwan Taiwan	International trade Telecommunication and broadband network system services Production and sale of broadband telecommunication products International trade International trade Investment Operating integrated supply of networkcommunication products, system services,and import and export of networkequipment Broadband communication products and service	172,179 126,091 492,373 90,082 59,604 - 36,236 93,053	172,179 126,091 1,511,735 90,082 59,604 20,000 36,236 96,930	5,850 16,703 note 3 300 15 - 4,000 1,296	% 100.00 % 32.82 % 100.00 % 100.00 % 100.00 - % 80.00 % 5.76	242,510 668,031 957,073 431,166 63,623 - 55,341 88,639	28,586 294,086 (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

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.

~68~

Alpha Networks Inc.

Information on investment in Mainland China

For the year ended December 31, 2025

Table 6

(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	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	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	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)	note 2(b) note 1(a) note 1(b) note 1(b) note 1(b) note 1(c) note 1(c)	420,426 114,197 307,326 1,925,920 - 171,245 31,139	- - - - - - -	- - - - - - -	420,426 114,197 (note 7) 307,326 1,925,920 - 171,245 31,139	16,911 - 479 (47,537) 3,720 28,597 (12)	100.00% - 100.00% 100.00% 100.00% 100.00% (note 9) 100.00% (note 9)	16,911 - 479 (47,537) 3,720 28,597 (12)	513,891 - (note 11) 31,225 1,205,505 14,558 239,385 3,787	147,231 692,935 - - - - -

~69~

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	Investment income (losses) (note 3)	Book value	Accumulated remittance of earnings in current period
					Outflow	Inflow
Hwa Chi Technologies	Technical consultation on electronic communication, technology research and development, maintenance and after-sale service	2,907 (USD100 thousand)	note 2(a)	8,854	-	-	8,854	589	32.82% (note 9)	193	2,897	31,155

(2) Limitation on investment in Mainland China

Company Name	Accumulated Investment in Mainland China as of December 31, 2025	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
The Company	2,634,897 notes 4,5,8	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 nethods:
(a) Hwa Chi is a China 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 $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.

~70~

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 the Company indirectly invested in, has completed its liquidation procedures on various rights and obligations; thus, cancelled its registration on July 23, 2018. However, the Company'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.
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 Octorber 31, 2025 , Mirac's Board of Directors had approved the dissolution. The liquidation process is currently in progress.

~71~

Alpha Networks Inc.

Summary of cash and cash equivalents

December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

Item	Description		Amount
Cash	Patty cash and cash on hand (note)	$	163
	EUR: 485`、`USD: 1,776`、`JPY: 403,000`、`CNY:	2,000
Bank deposits	Checking and saving accounts (note)		372,213
	TWD: 312,694,084`、`EUR: 31.67`、`
	USD: 817,650.54`、`CNY: 7,523,538.99
	Total	$	372,376
Note: Exchange rates at the balance sheet date are as follows:
USD`：`31.43	CNY`：`4.4952 JPY`：`0.2007	EUR`：`36.896

Summary of financial assets and liabilities

－ at fair value through profit or loss current

Please refer to note 6(2) for further information on financial assets and liabilities

at fair value through profit or loss－current.

~ 72 ~

Alpha Networks Inc.

Summary of accounts receivable

December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

		Amount
V Company	$	76,829
AA Company		279,728
AC Company		111,413
W Company		71,815
AD Company		59,114
AE Company		74,308
K Company		125,144
Others (individual amount does not exceed 5% of the account balance)		353,684
Total	$	1,152,035

Note 1: All accounts receivable are generated by operating activities.

Note 2: Accounts receivable from related parties are not included in the above accounts, please refer to note 7 for relevant information.

~ 73 ~

Alpha Networks Inc.

Summary of inventories

December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

Item Finished goods and merchandises Less: loss allowance Subtotal Work in progress and semi-finished products Less: loss allowance Subtotal Raw materials Less: loss allowance Subtotal	Amount Cost Net Realizable Value Note $ 101,536 Please refer to note 4(7) for (7,809) further information of the net 93,727 111,188 realizable value of inventories 52,992 in the parent-company-only (1,256) financial statements. 51,736 53,604 1,065,559 (25,066) 1,040,493 1,086,547 $ 1,185,956 1,251,339
	Cost $ 101,536 (7,809) 93,727 52,992 (1,256) 51,736 1,065,559 (25,066) 1,040,493 $ 1,185,956

Summary of financial assets measured

at amortized cost

Please refer to note 6(5) for further information on financial assets measured at amortized cost

－non-current.

~ 74 ~

Alpha Networks Inc.

Summary of changes in investments accounted for using the equity method

For the year ended December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

Addition Shares Amount - - - - - - - - 7,900 28,856 - - - - Note 1 262,395 Note 1 - (286) (19,180) 272,071 - 272,071	Other - - - - - 14,427 (3,848) - - 7,949 18,528 - 18,528	Cash dividends - - - - - - - - - (6,840) (6,840) - (6,840)	Investment Gain (Loss) 246 12,013 (50,131) 5,443 (8,291) 32,732 (125,008) 45,139 16,911 (21,024) (91,970) (86,502) (178,472)	Cumulative Translation Adjustment (664) (7,402) 1,288 (8,560) (1,161) (29) (59,037) (16,725) 691 - (91,599) - (91,599)	Ending Balance Shares Percentage of Ownership Amount 1 100.00 16,295 1,500 100.00 199,048 485,791 100.00 1,227,405 8,100 100.00 206,016 10,500 99.99 23,598 40,000 100.00 325,425 200,000 62.24 3,713,643 Note 1 100.00 1,169,435 Note 1 100.00 513,891 6,841 30.39 467,571 7,862,327 (170,766) 7,691,561	Ending Balance Shares Percentage of Ownership Amount 1 100.00 16,295 1,500 100.00 199,048 485,791 100.00 1,227,405 8,100 100.00 206,016 10,500 99.99 23,598 40,000 100.00 325,425 200,000 62.24 3,713,643 Note 1 100.00 1,169,435 Note 1 100.00 513,891 6,841 30.39 467,571 7,862,327 (170,766) 7,691,561	Market Value or Net Assets Value Unit Price Total Amount Collateral - 16,295 None - 199,048 None - 1,242,383 None - 206,016 None - 23,598 None - 325,425 None 24.15 4,830,000 None - 1,169,435 None 513,891 None 91.42 625,404 None 9,151,495
Shares - - - - 7,900 - - Note 1 Note 1 (286)					Shares 1 1,500 485,791 8,100 10,500 40,000 200,000 Note 1 Note 1 6,841	Percentage of Ownership 100.00 100.00 100.00 100.00 99.99 100.00 62.24 100.00 100.00 30.39	Unit Price - - - - - - 24.15 - 91.42

Note1: Limited company.

~75~

Alpha Networks Inc.

Summary of changes in property, plant and equipment

For the year ended December 31, 2025

Please refer to note 6(9) for further information on property, plant and equipment.

Summary of changes in right-of-use assets

Please refer to note 6(10) for further information on right-of use assets.

Summary of changes in intangible assets

Please refer to note 6(11) for further information on intangible assets.

Summary of other current and non-current assets

Please refer to note 6(12) for further information on other current and non-current assets.

~ 76 ~

Alpha Networks Inc.

Statement of short-term borrowings

December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

Type of loan Unsecured loan	Illustrate Ending Balance Mega Bank $ 200,000	Contract period December 2025 ~ January 2026	Interest rate range Mortgage or guarantee 1.81% none

~77~

Alpha Networks Inc.

Summary of accounts payable

December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

		Amount
Vendor N	$	71,539
Vendor Q		47,013
Vendor P		37,599
Vendor R		35,569
Vendor O		32,270
Others (individual amount does not exceed 5% of the account balance)		414,202
	$	638,192

Summary of accrued expenses

		Amount
Service fees	$	28,030
Miscellaneous purchases		11,149
Others (individual amount does not exceed 5% of the account balance)		172,398
	$	211,577

~ 78 ~

Alpha Networks Inc.

`－` Summary of lease liabilities current

and non-current

December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

Item	Summary Science Park Land Office Energy conservative equipment Official car	Lease Period 2019/1/1~2050/7/31 2025/1/1~2027/12/31 2023/12/1~2030/11/30 2024/3/9~2027/6/8	Discount Rate	Ending Balance Note $ 165,527 11,989 2,672 784 $ 180,972
Land Buildings Other facilities Transportation			1.30% 0.61% 0.63% 0.80%

Statement of current provision

Please refer to note 6(14) for further information on current provision.

Summary of other current liabilities

Please refer to note 6(15) for further information on other current liabilities.

~ 79 ~

Alpha Networks Inc.

Summary of operating revenue

For the year ended December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

Item LAN/MAN Wireless Broadband Digital Multimedia Others Total	Quantity Amount 314,820 $ 6,958,695 4,487,690 7,761,692 1,518,694 1,714,386 1,745,422 $ 18,180,195

~ 80 ~

Alpha Networks Inc.

Summary of operating costs

For the year ended December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

	Item		Amount
Raw material inventory, January 1		$	861,428
Add:	Raw material purchased		3,576,706
	Inventory surplus		203
Deduct:	Raw material sold		2,249,607
	Movement of expenses between departments		28,337
	Scrapped		52,793
	Raw material inventory, December 31		1,065,559
Raw material used			1,042,041
Direct labor			94,880
Manufacturing expenses			577,303
Manufacturing costs			1,714,224
Add:	Work in progress and semi-finished products, January 1		79,750
	Work in progress and semi-finished products purchased		22,666
Inventory surplus			(1)
Deduct:	Work in progress and semi-finished products, December 31		52,992
	Semi-finished products sold		2,107
	Movement of expenses between departments		27,369
	Scrapped		7,778
Work in progress and semi-finished products costs			1,726,393
Add:	Finished goods, January 1		126,692
	Finished goods purchased		13,579,402
Deduct:	Finished goods, December 31		101,536
	Movement of expenses between departments		1,327,647
	Scrapped		4,405
Cost of finished goods			13,998,899
Add:	Raw material and semi-finished products sold		2,251,714
	Cost of scrapped inventory		64,976
	Reversal for inventory devaluation loss		(4,385)
	Inventory surplus		(202)
Cost of goods sold		$	16,311,002

~ 81 ~

Alpha Networks Inc.

Summary of selling expenses

For the year ended December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

		Amount
Payroll expenses	$	179,970
Commission costs		19,960
Export expenses		19,768
Labor and health insurance		15,021
Others (individual amount does not exceed 5% of the account balance)		51,220
	$	285,939

Summary of administrative expenses

		Amount
Payroll expenses	$	153,944
Service fees		41,615
Amortization expenses		41,602
Depreciation expenses		18,528
Others (individual amount does not exceed 5% of the account balance)		105,585
	$	361,274

~ 82 ~

Alpha Networks Inc.

Summary of research and development expenses

For the year ended December 31, 2025

(Expressed in thousands of New Taiwan Dollars)

		Amount
Payroll expenses	$	650,564
Research and testing expenses		377,150
Depreciation expenses		67,177
Others (individual amount does not exceed 5% of the account balance)		219,047
	$	1,313,938

Summary of interest income

Please refer to note 6(23) for further information on interest income.

Summary of other income

Please refer to note 6(24) for further information on other income.

~ 83 ~

For the year ended December 31, 2025

Alpha Networks Inc.

Summary of other gains and losses

Please refer to note 6(25) for further information on other gains and losses.

Summary of finance costs

Please refer to note 6(26) for further information on finance costs.

Summary of employee benefits, depreciation and amortization

Please refer to note 12 for further information on employee benefits, depreciation and amortization.

~ 84 ~

AI assistant

Alpha — Audit Report / Information 2026

52320_rns_2026-05-04_ef54095a-86fc-4d45-9cd6-bb8433ddad79.pdf

ALPHA NETWORKS INC.

Parent-Company-Only Financial Statements

Table of contents

Independent Auditors’ Report

Opinion

Basis for Opinion

Key Audit Matters

1. Revenue recognition from contracts with customers

Description of key audit matter:

How the matter was addressed in our audit:

2. Valuation of inventories

Description of key audit matter:

3. Evaluation of investments accounted for using equity method

Description of key audit matters:

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

Auditor’s Responsibilities for the Audit of the Parent-Company-Only Financial Statements

KPMG

Notes to Readers

(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese) ALPHA NETWORKS INC.

Balance Sheets

December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese) ALPHA NETWORKS INC.

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)

(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese) ALPHA NETWORKS INC.

Statements of Changes in Equity For the years ended December 31, 2025 and 2024 (Expressed in Thousands of New Taiwan Dollars)

(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese) ALPHA NETWORKS INC.

Statements of Cash Flows

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese) ALPHA NETWORKS INC.

Statements of Cash Flows (Continued)

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollars)

Notes to the Parent-Company-Only Financial Statements

For the years ended December 31, 2025 and 2024

1. Company history

2. Approval date and procedures of the financial statements:

3. New standards, amendments and interpretations adopted:

ALPHA NETWORKS INC. Notes to the Parent-Company-Only Financial Statements

ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

4. Summary of material accounting policies:

(1) Statement of compliance

ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

(3) Foreign currencies

ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

(6) Financial instruments

ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

(b) Equity instrument

(c) Financial liabilities

ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

(7) Inventories

ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

(9) Investment in subsidiaries

ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

(11) Lessee

A. As a lessee

ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

(e) there is any lease modifications

B. As a lessor

ALPHA NETWORKS INC.

Notes to the Parent-Company-Only Financial Statements

B. Subsequent expenditure

Alpha Audit Report / Information 2026