Altek — Audit Report / Information 2024

Nov 14, 2024

ALTEK CORPORATION

PARENT COMPANY ONLY FINANCIAL

STATEMENTS AND INDEPENDENT AUDITORS’

REPORT

DECEMBER 31, 2024 AND 2023 (Stock Code ： 3059)

---

For the convenience of readers and for information purpose only, the auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors’ report and financial statements shall prevail.

~1~

INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

PWCR 24000336

To the Board of Directors and Shareholders of ALTEK CORPORATION

Opinion

We have audited the accompanying parent company only balance sheets of ALTEK CORPORATION as of December 31, 2024 and 2023, and the related parent company only statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and the notes to the parent company only 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 ALTEK CORPORATION as of December 31, 2024 and 2023, 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 and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the Financial Supervisory Commission.

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the audit of the parent company only financial statements section of our report. We are independent of ALTEK CORPORATION in accordance with the Norm of Professional Ethics for Certified Public

~2~

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 for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of ALTEK CORPORATION’s 2024 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, we do not provide a separate opinion on these matters.

Key audit matters for ALTEK CORPORATION’s 2024 parent company only financial statements of the current period are stated as follows:

Allowance for inventory valuation losses

Description

Please refer to Note 4(12) for description of accounting policy on inventory valuation. Please refer to Note 5(2) for accounting estimates and assumption uncertainty in relation to inventory valuation. Please refer to Note 6(5) for the details of inventories.

ALTEK CORPORATION’s subsidiaries (shown as Investments accounted for under the equity method) are primarily engaged in manufacturing and sales of automobile cameras, medical and digital image application products. The subsidiaries measure inventories sold at the lower of cost and net realisable value. For inventory that is over a certain age and individually identified obsolete or damaged inventory, the subsidiaries recognises losses at net realisable value. The value of inventories is significant, involves various types of inventory, and the individual identification of inventory usually involves management judgement which is an area that also needs to be assessed using our judgement during the audit process. Thus, we identified the subsidiaries’ valuation of allowance for inventory losses as one of the key audit matters.

~3~

How our audit addressed the matter

We performed the following audit procedures on the above key audit matter:

• A. Obtained an understanding and assessed the provision policy on inventory valuation losses, and ensured consistent application of accounting policies.

• B. Obtained the statement of individually identified obsolete inventory prepared by management and checked the accuracy of stock age analysis report and relevant information.

• C. Checked the accuracy of net realisable value of inventory, assessed the consistency between valuation of market value decline and its provision policy, and assessed the reasonableness of allowance for valuation losses determined by the Company.

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 the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the Financial Supervisory Commission, and for such internal controls as management determines are necessary to enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the parent company only financial statements, management is responsible for assessing ALTEK CORPORATION’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 ALTEK CORPORATION or to cease operations, or has no realistic alternative but to do so.

~4~

Those charged with governance, including the audit committee, are responsible for overseeing ALTEK CORPORATION’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 it is not a guarantee that an audit conducted in accordance with Standards of Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these parent company only financial statements.

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

• A. 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 controls.

• B. 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 ALTEK CORPORATION’s internal controls.

~5~

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

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

• E. 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.

• F. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within ALTEK CORPORATION to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of ALTEK CORPORATION’s 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

~6~

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.

Chiang, Tsai-Yen[Hsieh, Chih-Cheng ]

For and on behalf of PricewaterhouseCoopers, Taiwan March 14, 2025

---

The accompanying parent company only financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying parent company only financial statements and independent auditors’ report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers, Taiwan cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

~7~

ALTEK CORPORATION

PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars)

Assets	Notes 6(1) 6(4) 6(4) and 7 7 6(5) 6(2) 6(3) 6(6) 6(7) and 8 6(8) 6(9) and 8 6(10) 6(27) 6(13)	December 31, 2024 AMOUNT % $ 1,105,899 7 391,106 3 20,680 - 5,174 - 39,463 - 25,236 - 91,404 1 16,840 - - - 1,695,802 11 80,511 1 - - 11,312,137 76 888,889 6 80,585 1 729,449 5 3,678 - 13,844 - 39,116 - 13,148,209 89 $ 14,844,011 100	December 31, 2023	December 31, 2023
		AMOUNT $ 1,105,899 391,106 20,680 5,174 39,463 25,236 91,404 16,840 - 1,695,802 80,511 - 11,312,137 888,889 80,585 729,449 3,678 13,844 39,116 13,148,209 $ 14,844,011	AMOUNT $ 379,646 877,052 2 6,840 45,676 - 99,178 8,232 156 1,416,782 89,789 - 10,438,563 910,870 87,189 736,259 2,617 100,126 25,710 12,391,123 $ 13,807,905	%
Current assets 1100 Cash and cash equivalents 1170 Accounts receivable, net 1180 Accounts receivable - related parties 1200 Other receivables 1210 Other receivables - related parties 1220 Current income tax assets 130X Inventories, net 1410 Prepayments 1470 Other current assets 11XX Current Assets Non-current assets 1510 Non-current financial assets at fair value through profit or loss 1517 Non-current financial assets at fair value through other comprehensive income 1550 Investments accounted for under the equity method 1600 Property, plant and equipment 1755 Right-of-use assets 1760 Investment property - net 1780 Intangible assets 1840 Deferred income tax assets 1900 Other non-current assets 15XX Non-current assets 1XXX Total assets				3 6 - - - - 1 - -
				10
				1 - 76 6 1 5 - 1 -
				90
				100

(Continued)

~8~

ALTEK CORPORATION

PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity

December 31, 2024 December 31, 2023 Notes AMOUNT % AMOUNT % 6(11) $ 1,870,000 13 $ 1,988,000 15 6(20) 138,102 1 138,364 1 41,143 - 111,959 1 7 697,040 5 725,262 5 364,523 3 356,726 3 7 5,343 - 10,769 - 5,990 - 89,146 1 6(15) 49,482 - 46,727 - 4,537 - 6,234 - 36,960 - 32,339 - 3,213,120 22 3,505,526 26 6(12) and 8 900,000 6 900,000 7 6(15) - - 29,350 - 6(27) 488,513 3 463,086 3 78,803 1 83,341 1 6(13) and 7 65,617 - 69,621 - 1,532,933 10 1,545,398 11 4,746,053 32 5,050,924 37 6(16) 3,058,000 21 2,788,000 20 6(17) 2,542,903 17 2,046,394 15 6(18) 1,512,604 10 1,484,678 10 624,316 4 515,412 4 2,580,010 17 2,584,914 19 6(19) ( 181,774) ( 1) ( 624,316) ( 5 ) 6(16) ( 38,101) - ( 38,101) - 10,097,958 68 8,756,981 63 11 $ 14,844,011 100 $ 13,807,905 100

Current liabilities 2100 Short-term borrowings 2130 Current contract liabilities 2170 Accounts payable 2180 Accounts payable - related parties 2200 Other payables 2220 Other payables - related parties 2230 Current income tax liabilities 2250 Provisions for liabilities - current 2280 Current lease liabilities 2399 Other current liabilities, others 21XX Current Liabilities Non-current liabilities 2540 Long-term borrowings 2550 Provisions for liabilities - non-current 2570 Deferred income tax liabilities 2580 Non-current lease liabilities 2600 Other non-current liabilities 25XX Non-current liabilities 2XXX Total Liabilities Equity Share capital 3110 Common stock Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings Other equity interest 3400 Other equity interest 3500 Treasury stocks 3XXX Total equity Significant events after the balance sheet date 3X2X Total liabilities and equity

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

~9~

ALTEK CORPORATION PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars, except earnings per share amounts)

Items

Year ended December 31 2024 2023 Notes AMOUNT % AMOUNT % 6(20) and 7 $ 2,764,952 100 $ 4,823,772 100 6(5)(25)(26) and 7 ( 2,332,466) ( 84) ( 3,976,106) ( 82) 432,486 16 847,666 18 6(25)(26) and 7 ( 39,988) ( 1) ( 69,142) ( 1) ( 239,604) ( 9) ( 263,551) ( 6) ( 396,956) ( 14) ( 441,632) ( 9) 12(2) 275 - ( 119) - ( 676,273) ( 24) ( 774,444) ( 16) ( 243,787) ( 8) 73,222 2 6(21) 3,008 - 3,752 - 6(22) and 7 29,517 1 29,326 - 6(23) 242 - 19,421 - 6(24) ( 50,233) ( 2) ( 54,577) ( 1) 6(6) 599,332 22 334,937 7 581,866 21 332,859 6 338,079 13 406,081 8 6(27) ( 20,074) ( 1) ( 55,093) ( 1) $ 318,005 12 $ 350,988 7 6(13) $ 9,523 - $ 609 - ( 3,582) - ( 30,903) - 6(27) ( 1,905) - ( 122) - 4,036 - ( 30,416) - 557,655 20 ( 97,503) ( 2) 6(27) ( 111,531) ( 4) 19,501 - 446,124 16 ( 78,002) ( 2) $ 450,160 16 ($ 108,418) ( 2) $ 768,165 28 $ 242,570 5 6(28) $ 1.15 $ 1.27 6(28) $ 1.13 $ 1.26

4000 Operating revenue 5000 Operating costs 5900 Net operating margin Operating expenses 6100 Selling expenses 6200 General and administrative expenses 6300 Research and development expenses 6450 Expected credit gains (losses) 6000 Total operating expenses 6900 Operating (loss) profit Non-operating income and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7070 Share of profit of associates and joint ventures accounted for using equity method, net 7000 Total non-operating income and expenses 7900 Profit before income tax 7950 Income tax expense 8200 Profit for the year Other comprehensive income Components of other comprehensive income (loss) that will not be reclassified to profit or loss 8311 Other comprehensive income, before tax, actuarial gains on defined benefit plans 8316 Unrealised losses from investments in equity instruments measured at fair value through other comprehensive income 8349 Income tax related to components of other comprehensive income that will not be reclassified to profit or loss 8310 Components of other comprehensive income that will not be reclassified to profit or loss Components of other comprehensive (loss) income that may be reclassified to profit or loss 8361 Other comprehensive income (loss), before tax, exchange differences on translation 8399 Income tax relating to components of other comprehensive income 8360 Components of other comprehensive income (loss) that may be reclassified to profit or loss 8300 Other comprehensive income (loss) for the year 8500 Total comprehensive income for the year 9750 Basic earnings per share 9850 Diluted earnings per share

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

~10~

ALTEK CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars)

2023 Balance at January 1, 2023 Profit for the year Other comprehensive income (loss) for the year Total comprehensive income (loss) Appropriation of 2022 earnings Legal reserve Special reserve reverse Cash dividend Share-based payment transactions Retirement of employee restricted shares Changes in ownership interest in subsidiaries Difference between consideration and carrying amount of subsidiaries acquired Balance at December 31, 2023 2024 Balance at January 1, 2024 Profit for the year Other comprehensive income (loss) for the year Total comprehensive income (loss) Appropriation of 2023 earnings Legal reserve Special reserve Cash dividend Cash capital increase Share-based payment transactions Changes in ownership interest in subsidiaries Balance at December 31, 2024	Notes		Common stock		Capital surplus				Retained earnings	Retained earnings		Other equityin	Other equityin	Other equityin	terest		Treasurystocks		Total equity
							Legal reserve		Special reserve		Unappropriated retained earnings	Currency translation differences of foreign operations			Other
	6(19) 6(18) 6(14)(19) 6(14)(16)(17)(19) 6(19) 6(18) 6(16)(17) 6(14)(17) 6(17)		$ 2,788,180 - - - - - - - ( 180 ) - - $ 2,788,000 $ 2,788,000 - - - - - - 270,000 - - $ 3,058,000		$ 2,046,625 - - - - - - - ( 231 ) - - $ 2,046,394 $ 2,046,394 - - - - - - 449,154 38,970 8,385 $ 2,542,903		$ 1,441,002 - - - 43,676 - - - - - - $ 1,484,678 $ 1,484,678 - - - 27,926 - - - - - $ 1,512,604		$ 774,832 - - - - ( 259,420 ) - - - - - $ 515,412 $ 515,412 - - - - 108,904 - - - - $ 624,316		$ 2,366,630 350,988 487 351,475 ( 43,676 ) 259,420 ( 276,728 ) - - ( 4,201 ) ( 68,006 ) $ 2,584,914 $ 2,584,914 318,005 7,618 325,623 ( 27,926 ) ( 108,904 ) ( 193,697 ) - - - $ 2,580,010		($ 367,270 ) - ( 78,002 ) ( 78,002 ) - - - - - - - ($ 445,272 ) ($ 445,272 ) - 446,124 446,124 - - - - - - $ 852		($ 148,837 ) - ( 30,903 ) ( 30,903 ) - - - 285 411 - - ($ 179,044 ) ($ 179,044 ) - ( 3,582 ) ( 3,582 ) - - - - - - ($ 182,626 )		($ 38,101 ) - - - - - - - - - - ($ 38,101 ) ($ 38,101 ) - - - - - - - - - ($ 38,101 )		$ 8,863,061 350,988 ( 108,418 ) 242,570 - - ( 276,728 ) 285 - ( 4,201 ) ( 68,006 ) $ 8,756,981 $ 8,756,981 318,005 450,160 768,165 - - ( 193,697 ) 719,154 38,970 8,385 $ 10,097,958

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

~11~

ALTEK CORPORATION

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

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustments Adjustments to reconcile profit (loss) Depreciation Amortization Expected credit (gains) losses Net loss (gain) on financial assets at fair value through profit Interest expense Interest income Dividend income Share-based payment compensation cost Profit on investments accounted for under the equity method Changes in operating assets and liabilities Changes in operating assets Accounts receivable Accounts receivable-related parties Other receivables Other receivables-related parties Inventories Prepayments Other current assets Changes in operating liabilities Contract liabilities Accounts payable Accounts payable - related parties Other payables Other payables-related parties Provision of liabilities Other current liabilities Other non-current liabilities Cash inflow (outflow) generated from operations Interest received Dividend received Interest paid Income tax paid Net cash flows from (used in) operating activities

Year ended December 31 Notes 2024 2023 $ 338,079 $ 406,081 6(7)(8)(9)(25) 46,086 46,868 6(10)(25) 3,888 2,782 12(2) ( 275 ) 119 6(2)(23) 9,278 ( 6,188 ) 6(24) 50,233 54,577 6(21) ( 3,008 ) ( 3,752 ) 6(22) ( 3,052 ) ( 3,814 ) 6(14) 17,626 275 6(6) ( 599,332 ) ( 334,937 ) 486,221 295,016 ( 20,678 ) 735 1,666 ( 331 ) 27,557 38,163 7,774 138,542 ( 8,608 ) 558 156 2,329 ( 262 ) 69,549 ( 70,816 ) ( 6,302 ) ( 28,222 ) ( 944,670 ) 4,636 54,084 ( 5,426 ) ( 15,717 ) ( 26,595 ) 14,381 4,621 3,965 ( 7,195 ) ( 1,011 ) 224,352 ( 188,698 ) 3,008 3,752 290,558 211,398 ( 48,080 ) ( 50,359 ) ( 130,192 ) ( 2,612 ) 339,646 ( 26,519 )

(Continued)

~12~

ALTEK CORPORATION

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

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of property, plant, and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Decrease in guarantee deposits paid Net cash flows (used in) from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from short-term borrowings Repayment of short-term borrowings Proceeds from issuance of short-term notes and bills payable Repayment of short-term notes and bills payable Proceeds from long-term borrowings Repayment of long-term borrowings Decrease in guanrantee deposits received Decrease in other payables-related parties Repayment of principal portion of lease liabilities Cash capital increase Cash dividends paid Net cash flows from (used in) financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

Year ended December 31 Notes 2024 2023 6(29) ($ 8,823 ) ($ 14,822 ) - 38,400 6(29) ( 4,790 ) ( 2,635 ) 17 4,513 ( 13,596 ) 25,456 6(30) 6,898,000 11,384,000 6(30) ( 7,016,000 ) ( 11,244,000 ) 6(30) 9,996 1,197,843 6(30) ( 10,000 ) ( 1,600,000 ) 6(30) 900,000 900,000 6(30) ( 900,000 ) ( 500,000 ) 6(30) - ( 9 ) - ( 214,970 ) 6(30) ( 7,250 ) ( 9,535 ) 6(16) 719,154 - 6(18) ( 193,697 ) ( 276,728 ) 400,203 ( 363,399 ) 726,253 ( 364,462 ) 6(1) 379,646 744,108 6(1) $ 1,105,899 $ 379,646

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

~13~

ALTEK CORPORATION

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS

DECEMBER 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

1. HISTORY AND ORGANISATION

Altek Corporation (the “Company”) was incorporated as a company limited by shares under the provisions of the Company Law of the Republic of China (R.O.C.). The Company is primarily engaged in the development, manufacturing and sale of automobile cameras, medical and digital image technology application products, and related export and import trade.

The Company was listed in the Taiwan Stock Exchange on December 24, 2002, as approved by the TaiTz (91) Letter No. 024976 of the former Securities and Futures Commission, Ministry of Finance, R.O.C., dated September 27, 2002.

1. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE FINANCIAL STATEMENTS AND

PROCEDURES FOR AUTHORISATION

The parent company only financial statements were authorized for issuance by the Board of Directors on March 14, 2025.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS[®] ”) Accounting Standards that came into effect as endorsed by the Financial Supervisory Commission (“FSC”)

New standards, interpretations and amendments endorsed by the FSC and became effective from 2024 are as follows:

2024 are as follows:
New Standards,Interpretations and Amendments	Effective date by International Accounting Standards Board (IASB)
Amendments to IFRS 16, ‘Lease liability in a sale and leaseback’ Amendments to IAS 1, ‘Classification of liabilities as current or non- current’ Amendments to IAS 1, ‘Non-current liabilities with covenants’ Amendments to IAS 7 and IFRS 7, ‘Supplier finance arrangements’	January 1, 2024 January 1, 2024 January 1, 2024 January 1, 2024

The above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment.

~14~

(2) Effect of new issuances of or amendments to IFRS Accounting Standards as endorsed by the FSC

but not yet adopted by the Company

New standards, interpretations and amendments endorsed by the FSC effective from 2025 are as follows:.

	Effective date by
	International Accounting
New Standards, Interpretations and Amendments	Standards Board
Amendments to IAS 21, ‘Lack of exchangeability’	January 1, 2025

The above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment.

(3) IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the IFRS Accounting Standards as endorsed by the FSC are as follows:

	Effective date by
	International Accounting
New Standards,Interpretations and Amendments	Standards Board
Amendments to IFRS 9 and IFRS 7, ‘Amendments to the classification and	January 1, 2026
measurement of financial instruments’
Amendments to IFRS 9 and IFRS 7, ‘Contracts referencing nature-	January 1, 2026
dependent electricity’
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets	To be determined by
between an investor and its associate or joint venture’	International Accounting
	Standards Board
IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendment to IFRS 17, ‘Initial application of IFRS 17 and IFRS 9 –	January 1, 2023
comparative information’
IFRS 18, ‘Presentation and disclosure in financial statements’	January 1, 2027
IFRS 19,‘Subsidiaries without public accountability: disclosures’	January 1, 2027
Annual Improvements to IFRS Accounting Standards—Volume 11	January 1, 2026

Except for the following, the above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment.

~15~

• A. Amendments to IFRS 9 and IFRS 7, ‘Amendments to the classification and measurement of financial instruments’

The IASB issued the amendments to:

• Update the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI). The entity shall disclose the fair value of each class of investment and is no longer required to disclose the fair value of each investment. In addition, the amendments require the entity to disclose the fair value gain or loss presented in other comprehensive income during the period, showing separately the fair value gain or loss related to investments derecognised during the reporting period and the fair value gain or loss related to investments held at the end of the reporting period; and any transfers of the cumulative gain or loss within equity related to the investments derecognised during that reporting period.

• B. IFRS 18, ‘Presentation and disclosure in financial statements’

• IFRS 18, ‘Presentation and disclosure in financial statements’ replaces IAS 1. The standard introduces a defined structure of the statement of profit or loss, disclosure requirements related to management-defined performance measures, and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these accompanying parent company only financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

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

• (2) Basis of preparation

• A. Except for the following items, the parent company only financial statements have been prepared under the historical cost convention:

  • (a) Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.

  • (b) Financial assets at fair value through other comprehensive income.

  • (c) Defined benefit liabilities recognised based on the net amount of pension fund assets less present value of defined benefit obligation.

~16~

• B. The preparation of financial statements in conformity with International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the FSC (collectively referred herein as the “IFRSs”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the parent company only financial statements are disclosed in Note 5.

• (3) Foreign currency translation

Items included in the financial statements of the Company’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The parent company only financial statements are presented in New Taiwan Dollar, which is the Company’s functional currency.

• A. Foreign currency transactions and balances

• (a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in profit or loss in the period in which they arise.

• (b) Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognised in profit or loss.

• (c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in other comprehensive income. However, nonmonetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.

• (d) All foreign exchange gains and losses are presented in the statement of comprehensive income within “other gains and losses”.

• B. Translation of foreign operations

• (a) The operating results and financial position of all the subsidiaries, associates and joint arrangements that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

  • i. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;

~17~

     - ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and

     - iii. All resulting exchange differences are recognised in other comprehensive income.

  - (b) When the foreign operation partially disposed of or sold is an associate or joint arrangement, exchange differences that were recorded in other comprehensive income are proportionately reclassified to profit or loss as part of the gain or loss on sale. In addition, even when the Company retains partial interest in the former foreign associate or joint arrangement after losing significant influence over the former foreign associate, or losing joint control of the former joint arrangement, such transactions should be accounted for as disposal of all interest in these foreign operations.

  - (c) When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation.  In addition, even when the Company retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operation.

  - (d) Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing exchange rates at the balance sheet date.

• (4) Classification of current and non-current items

• A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:

  • (a) Assets arising from operating activities that are expected to be realised, or are intended to be sold or consumed within the normal operating cycle;

  • (b) Assets held mainly for trading purposes;

  • (c) Assets that are expected to be realised within twelve months from the balance sheet date;

  • (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than twelve months after the balance sheet date.

• B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:

  • (a) Liabilities that are expected to be settled within the normal operating cycle;

  • (b) Liabilities arising mainly from trading activities;

  • (c) Liabilities that are to be settled within twelve months from the balance sheet date;

  • (d) It does not have the right at the end of the reporting period to defer settlement of the liability at least twelve months after the balance sheet date.

~18~

(5) Cash equivalents

• Cash equivalents refer to short-term, 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 that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents.

(6) Financial assets at fair value through profit or loss

• A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortised cost or fair value through other comprehensive income.

• B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognised and derecognised using settlement date accounting.

• C. At initial recognition, the Company measures the financial assets at fair value and recognises the transaction costs in profit or loss. The Company subsequently measures the financial assets at fair value, and recognises the gain or loss in profit or loss.

• D. The Company recognises the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably.

(7) Financial assets at fair value through other comprehensive income

• A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Company has made an irrevocable election at initial recognition to recognise changes in fair value in other comprehensive income.

• B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognised and derecognised using settlement date accounting.

• C. At initial recognition, the Company measures the financial assets at fair value plus transaction costs. The Company subsequently measures the financial assets at fair value: The changes in fair value of equity investments that were recognised in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognised as revenue when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably.

(8) Accounts receivable

• A. Accounts receivable entitle the Company a legal right to receive consideration in exchange for transferred goods or rendered services.

• B. The short-term accounts receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

~19~

(9) Impairment of financial assets

• For financial assets at amortised cost at each reporting date, the Company recognises the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognises the impairment provision fot the lifetime expected credit losses (ECLs) if such credit erisk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable that does not contain a significant financing component, the Company recognises the impairment provision for lifetime ECLs.

(10) Derecognition of financial assets

• The Company derecognises a financial asset when the contractual rights to receive the cash flows from the financial asset expire.

The Company derecognises a financial asset when one of the following conditions is met:

• A. The contractual rights to receive the cash flows from the financial asset expire.

• B. The contractual rights to receive cash flows of the financial asset have been transferred and the Company has transferred substantially all risks and rewards of ownership of the financial asset.

• C. The contractual rights to receive cash flows of the financial asset have been transferred; however, the Company has not retained control of the financial asset.

－ (11) Leasing arrangements (lessor) operating leases

Lease income from an operating lease (net of any incentives given to the lessee) is recognised in profit or loss on a straight-line basis over the lease term.

• (12) Inventories

• Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted-average method. The cost of finished goods and work in progress comprises raw materials, direct labour, other direct costs and related production overheads (allocated based on normal operating capacity). It excludes borrowing costs. The item by item approach is used in applying the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and the estimated costs necessary to make the sale.

(13) Investments accounted for using equity method / associates

• A. Subsidiaries are all entities controlled by the Company. The Company controls an entity when the Company is exposed, or has rights, to variable returns from its involvement with the entity and has ability to affect those returns through its power over the entity.

• B. Unrealised profit (loss) that occurred from the transactions between the Company and subsidiaries have been offset. The accounting policies of the subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Company.

~20~

• C. The Company’s share of its subsidiaries’ post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Company’s share of losses in a subsidiary equals or exceeds its interest in the subsidiary, the Company continues to recognise its share in the subsidiary’s loss proportionately.

• D. Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity.

• E. Pursuant to the “Regulations Governing the Preparation of Financial Reports by Securities Issuers,” profit (loss) of the current period and other comprehensive income in the nonconsolidated financial statements shall be equal to the amount attributable to owners of the parent in the financial statements prepared with basis for consolidation. Owners’ equity in the non-consolidated financial statements shall be equal to equity attributable to owners of the parent in the consolidated financial statements.

• (14) Property, plant and equipment

• A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalised.

• B. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

• C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.

• D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change. The estimated useful lives of property, plant and equipment are as follows:

Buildings and structures 3 ~ 40 years Utility equipment 3 ~ 6 years Other equipment 2 ~ 11 years

~21~

(15) Leasing arrangements (lessee) － right-of-use assets/ lease liabilities

• A. Leases are recognised as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Company. For short-term leases or leases of low-value assets, lease payments are recognised as an expense on a straight-line basis over the lease term.

• B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate.

• The Company subsequently measures the lease liability at amortised cost using the interest method and recognises interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognised as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

• C. At the commencement date, the right-of-use asset is stated at cost comprising the following:

• (a) The amount of the initial measurement of lease liability; and

• (b) Any initial direct costs incurred by the lessee.

The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset’s useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognised as an adjustment to the right-of-use asset.

(16) Investment property

An investment property is stated initially at its cost and measured subsequently using the cost model. Except for land, investment property is depreciated on a straight-line basis over its estimated useful life of 10 ~ 35 years.

(17) Intangible assets

Computer software are stated at cost and amortised on a straight-line basis over its estimated useful lives of 1 ~ 3 years.

(18) Impairment of non-financial assets

The Company assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. Except for goodwill, when the circumstances or reasons for recognising impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortised historical cost would have been if the impairment had not been recognised.

(19) Borrowings

Borrowings comprise long-term and short-term bank borrowings. Borrowings are recognised initially at fair value, net of transaction costs incurred.

~22~

(20) Accounts payable

• A. Accounts payable are liabilities for purchases of raw materials, goods or services.

• B. The Company initially measures accounts payable at fair value and subsequently amortises the interest expense in profit or loss over the period of circulation using the effective interest method.

• (21) Provisions

• Provisions (warranties) are recognised when the Company has a present legal or constructive obligation as a result of past events, and it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation on the balance sheet date.

(22) Employee benefits

• A. Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognised as expense in that period when the employees render service.

• B. Pensions

• (a) Defined contribution plans

For defined contribution plans, the contributions are recognised as pension expense when they are due on an accrual basis. Prepaid contributions are recognised as an asset to the extent of a cash refund or a reduction in the future payments.

• (b) Defined benefit plans

• i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Company in current period or prior periods. The liability recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability; when there is no deep market in high-quality corporate bonds, the Company uses interest rates of government bonds (at the balance sheet date) instead.

• ii. Remeasurements arising on defined benefit plans are recognised in other comprehensive income in the period in which they arise and are recorded as retained earnings.

• iii. Past service costs are recognised immediately in profit or loss.

~23~

C. Termination benefits

  - Termination benefits are employee benefits provided in exchange for the termination of employment as a result from either the Company’s decision to terminate an employee’s employment before the normal retirement date, or an employee’s decision to accept an offer of redundancy benefits in exchange for the termination of employment. The Company recognises expense as it can no longer withdraw an offer of termination benefits or it recognises relating restructuring costs, whichever is earlier. Benefits that are expected to be due more than 12 months after balance sheet date shall be discounted to their present value.

• D. Employees’ compensation and directors’ remuneration

  • Employees’ compensation and directors’ remuneration are recognised as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates. If employee compensation is paid by shares, the Company calculates the number of shares based on the closing price at the previous day of the board meeting resolution.

• (23) Employee share based payment

• A. For the equity-settled share-based payment arrangements, the employee services received are measured at the fair value of the equity instruments granted at the grant date, and are recognised as compensation cost over the vesting period, with a corresponding adjustment to equity. The fair value of the equity instruments granted shall reflect the impact of market vesting conditions and non-vesting conditions. Compensation cost is subject to adjustment based on the service conditions that are expected to be satisfied and the estimates of the number of equity instruments that are expected to vest under the non-market vesting conditions at each balance sheet date. Ultimately, the amount of compensation cost recognised is based on the number of equity instruments that eventually vest.

• B. Restricted stocks:

  • (a) Restricted stocks issued to employees are measured at the fair value of the equity instruments granted at the grant date, and are recognised as compensation cost over the vesting period.

  • (b) For restricted stocks where those stocks do not restrict distribution of dividends to employees and employees are not required to return the dividends received if they resign during the vesting period, the Company recognises the fair value of the dividends received by the employees who are expected to resign during the vesting period as compensation cost at the date of dividends declared.

  • (c) Employees do not need to pay a price to obtain new shares with restricted employee rights. If the employee leaves the Company within the vesting period, the Company will take back the stock from the employee free of charge. On the grant date, the Company estimated and recognized compensation costs and liabilities based on the issuance terms and conditions.

~24~

(24) Income tax

• A. The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or items recognised directly in equity, in which cases the tax is recognised in other comprehensive income or equity.

• B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.

• C. Deferred tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. However, the deferred tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Company and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.

• D. Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. At each balance sheet date, unrecognised and recognised deferred tax assets are reassessed.

• E. Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. Deferred tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realise the asset and settle the liability simultaneously.

• F. A deferred tax asset shall be recognised for the carryforward of unused tax credits resulting from acquisitions of equipment or technology, research and development expenditures and equity investments to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilised.

~25~

(25) Share capital

• A. Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or stock options are shown in equity as a deduction, net of tax, from the proceeds.

• B. Where the Company repurchases the Company’s equity share capital that has been issued, the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the Company’s equity holders. Where such shares are subsequently reissued, the difference between their carrying amount and any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the Company’s equity holders.

(26) Dividends

Dividends are recorded in the Company’s financial statements in the period in which they are resolved by the Company’s shareholders. Cash dividends are recorded as liabilities.

• (27) Revenue recognition

• A. Sales of goods

  • (a) The Company manufactures and sells digital image technology application products. Sales are recognised when control of the products has transferred, being when the products are delivered to the buyer, the buyer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the wholesaler’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 wholesaler, and either the wholesaler has accepted the products in accordance with the sales contract, or the Company has objective evidence that all criteria for acceptance have been satisfied.

  • (b) Revenue from these sales is recognised based on the price specified in the contract, net of the value-added tax, sales return, volume discounts, sales discounts and allowances.

  • (c) The Company’s obligation to provide a repair for faulty products under the standard warranty terms is recognised as a provision.

  • (d) A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

• B. Technical service revenue

  • The Company provides technical support services. Revenue from providing services is recognised in the accounting period in which the services are rendered. For fixed-price contracts, revenue is recognised based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided. This is determined based on the number of delivered report relative to the total number of committed report.

~26~

1. Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

The preparation of the parent company only financial statements requires management to make critical judgements in applying the Company’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors.

(a) Critical judgements in applying the Company’s accounting policies

None.

(b) Critical accounting estimates and assumptions

• Evaluation of inventories

As inventories are stated at the lower of cost and net realisable value, the Company must determine the net realisable value of inventories on balance sheet date using judgements and estimates. Due to the rapid technology innovation, the Company evaluates the amounts of normal inventory consumption, obsolete inventories or inventories without market selling value on balance sheet date, and writes down the cost of inventories to the net realisable value. Therefore, there might be material changes to the evaluation.

As of December 31, 2024, the carrying amount of inventories was $91,404.

1. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

TAILS OF SIGNIFICANT ACCOUNTS Cash and cash equivalents
Cash on hand revolving funds Checking accounts and demand deposits Total	December31,2024 754 $ 1,105,145 1,105,899 $	December31,2023
		746 $ 378,900 379,646 $

• A. The Company transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.

• B. The Company has no cash and cash equivalents pledged to others.

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

Financial assets at fair value through profit or loss
Items Non-current items: Financial assets mandatorily measured at fair value through profit or loss Unlisted stocks Valuation adjustment Total	December31,2024 10,312 $ 70,199 80,511 $	December31,2023
		10,312 $ 79,477
		89,789 $

• A. Amounts recognised in profit or loss in relation to financial assets at fair value through profit or loss are listed below:

For the year ended December31,2024 Equity instruments 9,278) ($	For the year ended December31,2023 6,188 $

~27~

• B. The Company has no financial assets at fair value through profit or loss as at December 31, 2024 and 2023 pledged to others.

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

Items		December	31, 2024		December	31, 2023
Non-current items:
Equity instruments
Unlisted stocks		$	100,000		$	100,000
Valuation adjustment	(		100,000)	(		100,000)
Total		$	-		$	-

• A. The Company has elected to classify equity instruments that are considered to be strategic investments as financial assets at fair value through other comprehensive income. The fair value of such investments both amounted to $0 as at December 31, 2024 and 2023.

• B. There were no amounts recognised in profit or loss and other comprehensive income in relation to the financial assets at fair value through other comprehensive income for the years ended December 31, 2024 and 2023.

• C. The Company has no financial assets at fair value through profit or loss pledged to others as at December 31, 2024 and 2023.

(4) Accounts receivable

December 31, 2024 and 2023. Accounts receivable
		December	31,2024		December	31,2023
Accounts receivable (including related parties)		$	411,864		$	877,407
Less: Allowance for uncollectible accounts	(		78)	(		353)
		$	411,786		$	877,054

• A. The ageing analysis of accounts receivable and notes receivable that were past due but not impaired is as follows:

is as follows:
Not past due 351,142 $ Up to 30 days 52,492 31 to 90 days 8,230 411,864 $ December 31, 2024	December31,2023
	775,399 $ 96,894 5,114
	877,407 $

The above ageing analysis was based on past due date.

• B. As at December 31, 2024 and 2023, accounts receivable were all from contracts with customers. And as of January 1, 2023, the balance of accounts receivable from contracts with customers amounted to $1,173,158.

• C. None of the Company’s accounts receivable were pledged to others as collateral.

• D. As at December 31, 2024 and 2023, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Company’s accounts receivable was $411,786 and $877,054 , respectively.

• E. Information relating to credit risk of accounts receivable is provided in Note 12(2).

~28~

(5) Inventories

(6)	The cost of inventories recognised as expense for the period: Investments accounted for using equity method Cost Allowance for valuation loss Raw materials 13,558 $ 4,854) ($ Work in progress 63,665 5,298) ( Finished goods 26,644 2,311) ( Total 103,867 $ 12,463) ($ December31,2024 Cost Allowance for valuation loss Raw materials 15,473 $ 4,819) ($ Work in progress 81,628 4,529) ( Finished goods 13,656 2,231) ( Total 110,757 $ 11,579) ($ December 31, 2023 For the year ended December31,2024 Cost of goods sold and others 2,331,582 $ Loss in market value 884 Total 2,332,466 $ December 31, 2024 Altek International Investment Co., Ltd. 8,812,142 $ Altek Japan Corporation 9,790 Altek International Holding (BVI) Co., Ltd. 1,427,003 Altek Investment Corporation 100,583 Altek Medical Pte. Ltd.(Note) 962,619 11,312,137 $	Bookvalue 8,704 $ 58,367 24,333 91,404 $ Bookvalue 10,654 $ 77,099 11,425 99,178 $ For the year ended December31,2023
		3,974,869 $ 1,237
		3,976,106 $
		December31,2023 8,079,862 $ 10,063 1,281,674 100,235 966,729 10,438,563 $

• Note ： Altek Medical Holding (Cayman) Co., Ltd. relocated to Singapore on April 13, 2023, and changed its name to Altek Medical Pte. Ltd.

• A. For information on the Company’s subsidiary, please refer to Note 4(3) in the consolidated financial statements for the year ended December 31, 2024.

• B. The Company recognised gain on investment in associates amounting to $599,332 and $334,937 for the years ended December 31, 2024 and 2023, respectively.

~29~

(7) Property, plant and equipment

At January 1 Cost Accumulated depreciation Opening net book amount Additions Depreciation charge Closing net book amount At December 31 Cost Accumulated depreciation			2024
	Buildings and Land structures Test equipment 248,826 $ 1,052,510 $ 60,452 $ - 405,881) ( 50,785) ( 248,826 $ 646,629 $ 9,667 $ 248,826 $ 646,629 $ 9,667 $ - 666 1,100 - 26,913) ( 3,545) ( 248,826 $ 620,382 $ 7,222 $ 248,826 $ 1,053,176 $ 60,737 $ - 432,794) ( 53,515) ( 248,826 $ 620,382 $ 7,222 $

~30~

									2023	2023
										Construction in
										progress and
					Buildings and					to	be inspected
			Land			structures		Test	equipment		equipment			Others			Total
At January 1
Cost		$	468,684		$	1,193,053		$	50,836	$	1,047		$	53,982		$	1,767,602
Accumulated depreciation			-	(		423,785)	(		49,763)		-	(		50,995)	(		524,543)
		$	468,684		$	769,268		$	1,073	$	1,047		$	2,987		$	1,243,059
Opening net book amount		$	468,684		$	769,268		$	1,073	$	1,047		$	2,987		$	1,243,059
Additions			-			620			9,616		792			4,040			15,068
Disposals	(		219,858)	(		96,014)			-		-	(		218)	(		316,090)
Reclassifications			-			1,047			-	(	1,047)			-			-
Depreciation charge			-	(		28,292)	(		1,022)		-	(		1,853)	(		31,167)
Closing net book amount		$	248,826		$	646,629		$	9,667	$	792		$	4,956		$	910,870
At December 31
Cost		$	248,826		$	1,052,510		$	60,452	$	792		$	57,129		$	1,419,709
Accumulated depreciation			-	(		405,881)	(		50,785)		-	(		52,173)	(		508,839)
		$	248,826		$	646,629		$	9,667	$	792		$	4,956		$	910,870

• A. For the years ended December 31, 2024 and 2023, there was no capitalisation of borrowing interests attributable to the property, plant and equipment.

B. Information about the property, plant and equipment that were pledged to others as collaterals is provided in Note 8.

~31~

－ (8) Leasing arrangements lessee

• A. The Company leases various assets including land, buildings and business vehicles. The term of the land lease contract is 20 years, the rest usually ranges from 1 to 3 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.

• B. Short-term leases with a lease term of 12 months or less comprise buildings and equipment. Lowvalue assets comprise printers, etc.

• C. The carrying amount of the depreciation charge are as follows:

Land Buildings Transportation equipment (Business vehicles) Land Buildings Transportation equipment (Business vehicles)	Carrying	amount
	December31,2024 December 31, 2023 78,854 $ 81,998 $ 1,731 5,191 - - 80,585 $ 87,189 $ Depreciation charge	December 31, 2023
		81,998 $ 5,191 - 87,189 $
	For the year ended December31,2024 3,144 $ 3,460 - 6,604 $	For the year ended December31,2023
		3,144 $ 3,452 2,294
		8,890 $

• D. For the years ended December 31, 2024 and 2023, the additions to right-of-use assets were $0 and $1,643, respectively.

• E. The information on profit and loss accounts relating to lease contracts is as follows:

Items affecting profit or loss Interest expense on lease liabilities Expense on short-term lease contracts Expense on leases of low-value assets	For the year ended December31,2024 1,015 $ 2,018 342	For the year ended December31,2023
		1,048 $ 3,426 275

• F. For the years ended December 31, 2024 and 2023, the Company’s total cash outflow for leases were $9,610 and $13,236, respectively.

• G. Extension and termination options

In determining the lease term, the Company takes into consideration all facts and circumstances that create an economic incentive to exercise an extension option. The assessment of lease period is reviewed if a significant event occurs which affects the assessment.

~32~

(9) Investment property

At January 1 Cost Accumulated depreciation At January 1 Depreciation charge At December 31 At December 31 Cost Accumulated depreciation At January 1 Cost Accumulated depreciation At January 1 Depreciation charge At December 31 At December 31 Cost Accumulated depreciation

Land Buildings and structures Total 573,532 $ 245,411 $ 818,943 $ - 82,684) ( 82,684) ( 573,532 $ 162,727 $ 736,259 $ 573,532 $ 162,727 $ 736,259 $ - 6,810) ( 6,810) ( 573,532 $ 155,917 $ 729,449 $ 573,532 $ 245,411 $ 818,943 $ - 89,494) ( 89,494) ( 573,532 $ 155,917 $ 729,449 $ 2024 Land Buildings and structures Total 573,532 $ 245,411 $ 818,943 $ - 75,873) ( 75,873) ( 573,532 $ 169,538 $ 743,070 $ 573,532 $ 169,538 $ 743,070 $ - 6,811) ( 6,811) ( 573,532 $ 162,727 $ 736,259 $ 573,532 $ 245,411 $ 818,943 $ - 82,684) ( 82,684) ( 573,532 $ 162,727 $ 736,259 $ 2023

A. Rental income from investment property and direct operating expenses arising from investment property are shown below:

Rental income from investment property Direct operating expenses arising from the investment property that generated rental income during the year	For the year ended For the year ended December31,2024 December 31, 2023 27,647 $ 27,639 $ 8,723 $ 8,205 $

~33~

• B. The fair value of the investment property held by the Company as at December 31, 2024 and 2023 were both $1,051,328, which was valued by independent appraisers. Valuations were made using the comparative method and direct capitalization approach under income approach, which is categorised within Level 3 in fair value hierarchy.

• C. There was no capitalisation of borrowing interests attributable to investment property.

• D. Information about the investment property that was pledged to others as collaterals is provided in Note 8.

(10) Intangible assets

in Note 8. Intangible assets
			2024			2023
At January 1
Cost		$	9,246		$	7,977
Accumulated amortisation	(		6,629)	(		5,213)
		$	2,617		$	2,764
At January 1		$	2,617		$	2,764
Additions			4,949			2,635
Amortisation charge	(		3,888)	(		2,782)
At December 31		$	3,678		$	2,617
At December 31
Cost		$	8,726		$	9,246
Accumulated amortisation	(		5,048)	(		6,629)
		$	3,678		$	2,617
A. Details of amortisation on intangible assets are as follows:
			For the year ended			For the year ended
		December31,2024			December31,2023
Operating expense	$		3,888	$		2,782

B. The Company has no intangible assets pledged to others.

(11) Short-term borrowings

Short-term borrowings
Type ofborrowings Bank borrowings Unsecured borrowings Type ofborrowings Bank borrowings Unsecured borrowings	December31,2024 1,870,000 $ December31,2023 1,988,000 $	Interestraterange 1.85%~1.99% Interestraterange 1.74%~1.85%	Collateral
			None Collateral
			None

~34~

- (12) Long term borrowings

Type ofborrowings Borrowing period Bank secured borrowings July 11, 2024 to July 11, 2026. Less: Current portion Type of borrowings Borrowing period Bank secured borrowings June 9, 2023 to June 9, 2025. Less: Current portion	Interest rate range 2.0%~2.1% Interest rate range 1.9%~2.0%	Collateral December31,2024 Note 900,000 $ - 900,000 $ Collateral December31,2023 Note 900,000 $ - 900,000 $

Note: The collateral of long-term borrowings, please refer to Note 8.

The Company's medium- and long-term loan contract expired on June 9, 2025. Due to financial planning considerations, the Company has renewed the loan in advance on July 11, 2024.

The Company 's medium- and long-term loan contract expired on July 11, 2026. Due to financial planning considerations, the Company has repaid part of the borrowings in advance on January 3, 2025.

(13) Pensions

A. (a) The Company and its domestic subsidiaries have a defined benefit pension plan in accordance with the Labor Standards Act, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Act. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company contributes monthly an amount equal to 2% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee.

• (b) The amounts recognised in the balance sheet are as follows:

	December	31,2024	December	31,2023
Present value of defined benefit obligations	($	40,143)	($	53,151)
Fair value of plan assets		53,566		49,856
Net defined benefit asset (liability)	$	13,423	($	3,295)

~35~

(c) Movements in net defined benefit liability are as follows:

At January 1 Interest (expense) income Remeasurements: Return on plan assets (excluding amounts included in interest income or expense) Change in financial assumptions Experience adjustments Pension fund contribution Paid pension At December 31 At January 1 Interest (expense) income Remeasurements: Return on plan assets (excluding amounts included in interest income or expense) Change in financial assumptions Experience adjustments Pension fund contribution Paid pension At December 31	Present value of defined benefit obligations	Fair value ofplan assets 49,856 $ 598 50,454 4,387 - - 4,387 1,005 2,280) ( 53,566 $ 2024 2023	Fair value ofplan assets 49,856 $ 598 50,454 4,387 - - 4,387 1,005 2,280) ( 53,566 $ 2024 2023	Net defined benefit asset(liability) 3,295) ($ 40) ( 3,335) ( 4,387 1,243 3,893 9,523 1,005 6,230 13,423 $	Net defined benefit asset(liability) 3,295) ($ 40) ( 3,335) ( 4,387 1,243 3,893 9,523 1,005 6,230 13,423 $
	53,151) ($ 638) ( 53,789) ( - 1,243 3,893 5,136 - 8,510 40,143) ($
	Present value of defined benefit obligations		Fair value ofplan assets		Net defined benefit liability
	53,603) ($ 697) ( 54,300) ( - 415) ( 833 418 - 731 53,151) ($	48,688 $ 633 49,321 191 - - 191 1,075 731) ( 49,856 $		4,915) ($ 64) ( 4,979) ( 191 415) ( 833 609 1,075 - 3,295) ($

~36~

• (d) The Bank of Taiwan was commissioned to manage the Fund of the Company’s and domestic subsidiaries’ defined benefit pension plan in accordance with the Fund’s annual investment and utilisation plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilisation of the Labor Retirement Fund” (Article 6: The scope of utilisation for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regard to the utilisation of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorized by the Regulator. The Company and domestic subsidiaries have no right to participate in managing and operating that fund and hence the Company and domestic subsidiaries are unable to disclose the classification of plan assets fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2024 and 2023 is given in the Annual Labor Retirement Fund Utilisation Report announced by the government.

• (e) The principal actuarial assumptions used were as follows:

Discount rate Future salary increases	For the year ended December31,2024 1.60% 4.00%	For the year ended December31,2023
		1.20%
		4.00%

Assumptions regarding future mortality are set based on actuarial advice in accordance with published statistics and experience in Taiwan life insurance industry after 2024 and 2023. Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

December 31, 2024 Effect on present value of defined benefit obligations December 31, 2023 Effect on present value of defined benefit obligations	Increase 0.25% Decrease 0.25% 749) ($ 770 $ 1,030) ($ 1,060 $ Discount rate	Increase 0.25% Decrease 0.25% 749) ($ 770 $ 1,030) ($ 1,060 $ Discount rate	Increase 0.25% Decrease 0.25% 749) ($ 770 $ 1,030) ($ 1,060 $ Discount rate	Future salaryincreases	Future salaryincreases	Future salaryincreases
				Increase 0.25%		Decrease 0.25%
	749) ($ 1,030) ($		770 $ 1,060 $		662 $ 908 $	648) ($ 889) ($

~37~

The sensitivity analysis above is based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analysing sensitivity and the method of calculating net pension liability in the balance sheet are the same.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous period.

• (f) Expected contributions to the defined benefit pension plans of the Company for the year ending December 31, 2025 amount to $930.

• (g) As of December 31, 2024, the weighted average duration of the retirement plan is 8 years. The analysis of timing of the future pension payment was as follows:

Within 1 year 2-5 years Over 5 years	4,637 $ 9,690 17,009
	31,336 $

• B. Effective July 1, 2005, the Company has established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment. The pension costs under defined contribution pension plans of the Company for the years ended December 31, 2024 and 2023, were $16,120 and $17,809, respectively, under the above pension scheme.

(14) Share-based payment

• A. For the years ended December 31, 2024 and 2023, the Company’s share-based payment arrangements were as follows:

arrangements were as follows:
Type ofarrangement	Grant date	Quantity granted (shares in thousand)	Contract period	Vesting conditions
Plan for restricted shares to employees (2018-1) Plan for restricted shares to employees (2019-1) " Treasury shares transferred to employees Cash capital increase reserved for employee subscription	January 20, 2020 January 20, 2020 April 24, 2020 November 8, 2024 December 16, 2024	2,196 2,030 86 2,090 2,700	3 years 3 years 3 years - -	Note Note Note Immediately vested Immediately vested

~38~

• Note ： The restricted shares were issued at no consideration to the Company’s existing employees whose service years have reached 1 year, 2 years and 3 years and who achieved the performance condition. The vested ratio is 40%, 30% and 30%, respectively. If employees who are entitled to receive restricted shares do not meet the vesting conditions, the Company will retrieve at no consideration and retire those shares.

  • The shares and dividends distributed to employees during the vesting period shall be given by the Company at no consideration. Employees are not required to return the shares and dividends if they resign during the vesting period.

• B. Restricted shares to employees:

• The information on restricted shares to employees is as follows (share in thousands): For the year ended December 31, 2024: None.

		2023
Shares not vested beginning balance		912
Shares vested	(	894)
Shares forfeited - retired	(	18)
Shares not vested ending balance		-

• C. For the year ended December 31, 2024, the weighted-average exercise price of treasury shares transferred to employees was $18.24 (in NT dollars).

• D. For information of fair value of the share-based payment transaction given by the Company is as follows:

follows:
Type of arrangement	Grant date	Stock price (in NT dollars)	Exercise price (Note) (in NT dollars)	Expected price volatility	Expected option life	Expected dividends	Risk-free interest rate	Weighted average fair value per unit (in NT dollars)
Plan for restricted shares to employees (2018-1) Plan for restricted shares to employees (2019-1) " Treasury shares transferred to employees Cash capital increase reserved for employee subscription	January 20, 2020 January 20, 2020 April 24, 2020 November 8, 2024 December 16, 2024	$22.80 22.80 18.20 33.85 29.15	$ - - - 18.24 26.80	NA NA NA NA NA	3 years 3 years 3 years - -	NA NA NA NA NA	NA NA NA NA NA	$ 22.80 22.80 18.20 33.85 29.15

~39~

E. Expenses incurred on share-based payment transactions are shown below:

(15)	Provisions Equity-settled At January 1, 2024 Additional provisions Reversed during the period At December 31, 2024 Current Non-current	For the year ended For the year ended December31,2024 December31,2023 17,626 $ 275 $ Warranty 76,077 $ 2,756 29,351) ( 49,482 $ December31,2024 December31,2023 49,482 $ 46,727 $ - $ 29,350 $

The Company provides warranties on digital image technology application products sold. Provision for warranty is estimated based on historical warranty data of digital image technology application products.

(16) Share capital

As of December 31, 2024, the Company’s authorized capital was $5,000,000, consisting of 500,000 thousand shares of ordinary stock, and the paid-in capital was $3,058,000 with a par value of $10 (in NT dollars) per share.

• A. Movements in the number of the Company’s ordinary shares outstanding are as follows (share in thousands):

At January 1 Cash capital increase Retired restricted shares to employees that did not meet the vesting conditions At December 31	2024 2023 276,710 276,728 27,000 - - 18) ( 303,710 276,710

B. The Board of Directors during its meeting on October 21, 2024 adopted a resolution to increase the Company’s capital by issuing 27,000 thousand ordinary shares with a par value of $10 (in dollars) per share with the effective date set on December 26, 2024. As at March 14, 2025, the shares had been registered and approved by the competent authority.

~40~

• C. Treasury shares

• (a) Reason for share reacquisition and the number of the Company’s treasury shares are as follows :

==> picture [447 x 166] intentionally omitted <==

----- Start of picture text -----

December 31, 2024
Name of company Number of shares
holding the shares Reason for reacquisition (share in thousands) Carrying amount
The Company To be reissued to employees 2,090 $ 38,101
December 31, 2023
Name of company Number of shares
holding the shares Reason for reacquisition (share in thousands) Carrying amount
The Company To be reissued to employees 2,090 $ 38,101
----- End of picture text -----

• (b) Pursuant to the R.O.C. Securities and Exchange Act, the number of shares bought back as treasury share should not exceed 10% of the number of the Company’s issued and outstanding shares and the amount bought back should not exceed the sum of retained earnings, paid-in capital in excess of par value and realised capital surplus.

• (c) Pursuant to the R.O.C. Securities and Exchange Act, treasury shares should not be pledged as collateral and is not entitled to dividends before it is reissued.

• (d) Pursuant to the R.O.C. Securities and Exchange Act, treasury shares should be reissued to the employees within five years from the reacquisition date and shares not reissued within the five-year period are to be retired.

(17) Capital surplus

Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act requires that the amount of capital surplus to be capitalised mentioned above should not exceed 10% of the paidin capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

~41~

						2024	2024
						Changes		in
						ownership
				Employee		interests		in	Treasury shares
	Sharepremium		stock options			subsidiaries				transcations		Total
At January 1	$	1,925,458	$	-	$			-	$	120,936		2,046,394 $
Cash capital increase		455,499		-				-			-	455,499
Changes in ownership interests in subsidiaries		-		-			8,385				-	8,385
Treasury shares transfer
to employees		-		32,625				-			-	32,625
At December 31	$	2,380,957	$	32,625	$		8,385		$	120,936		2,542,903 $
						2023
				Treasury	shares		Restricted shares
		Sharepremium		transcations				to employees				Total
At January 1	$	1,914,073		$	120,936		$			11,616	$	2,046,625
Employee restricted
share granted		11,385				-	(			11,385)			-
Reired restricted shares to
employees that did not meet
the vesting conditions			-			-	(			231)	(		231)
At December 31	$	1,925,458		$	120,936		$			-	$	2,046,394

(18) Retained earnings

• A. According to the Company’s Articles of Incorporation, the annual earnings, if any, shall first be used to pay all taxes and offset prior years’ operating losses and then 10% of the remaining amount shall be set aside as legal reserve. Special reserve shall be set aside in accordance with the rules. The remaining amount plus the unappropriated earnings of prior years were distributed in new shares, which were proposed by the Board of Directors and resolved at the shareholders’ meeting.

All or some of the dividends and bonus could, by a resolution adopted by a majority vote at a meeting of Board of Directors attended by two-thirds of the total number of directors, be distributed in the form of cash and reported at the shareholders’ meeting.

• B. The amount of dividends appropriated is based on the Company’s current year’s net income and prior years’ retained earnings, taking into account the Company’s financial structure and future operating plans. The distribution ratio of cash dividends to stock dividends is based on the Company’s funding status, diluted earnings per share and other factors. According to the dividend policy adopted by the Board of Directors, cash dividends shall account for at least 20% of the total dividends distributed.

~42~

• C. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the balance of the reserve exceeds 25% of the Company’s paid-in capital.

• D. (a) In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.

• (b) The amounts previously set aside by the Company as special reserve on initial application of IFRSs in accordance with Order No. Financial-Supervisory-Securities-Corporate1090150022, dated March 31, 2021, shall be reversed proportionately when the relevant assets are used, disposed of or reclassified subsequently. Such amounts are reversed upon disposal or reclassified if the assets are investment property of land, and reversed over the use period if the assets are investment property other than land.

• E. The appropriation of 2023 and 2022 earnings had been resolved at the stockholders’ meeting on June 13, 2024 and June 21, 2023, respectively. Details are summarized below:

Legal reserve Special reserve (reversed) Cash dividends	Dividends per share Dividends per share Amount (inNTdollars) Amount (inNTdollars) 27,926 $ 43,676 $ 108,904 259,420) ( 193,697 0.7 $ 276,728 1.0 $ 330,527 $ 60,984 $ 2023 2022	Dividends per share Dividends per share Amount (inNTdollars) Amount (inNTdollars) 27,926 $ 43,676 $ 108,904 259,420) ( 193,697 0.7 $ 276,728 1.0 $ 330,527 $ 60,984 $ 2023 2022
	Amount 27,926 $ 108,904 193,697 330,527 $
		1.0 $

The appropriation of 2023 and 2022 earnings were the same as that approved by the Board of Directors on March 11, 2024 and March 10, 2023, respectively.

(19) Other equity items

				2024
				Unrealised
	Foreign currency			losses on
		translation		valuation		Total
At January 1	($	445,272)	($	179,044)	($	624,316)
Valuation adjustment		-	(	3,582)	(	3,582)
Currency translation differences:
-Subsidiaries		446,124		-		446,124
At December 31	$	852	($	182,626)	($	181,774)

~43~

					2023	2023
				Unrealised
	Foreign currency				losses on	Unearned
		translation			valuation	compensation			Total
At January 1	($	367,270)	($		148,141)	($	696)	($	516,107)
Valuation adjustment		-	(		30,903)		-	(	30,903)
Currency translation differences:
-Subsidiaries	(	78,002)			-		-	(	78,002)
Retirement of restricted shares
to employees		-			-		411		411
Share-based payment transactions		-			-		285		285
At December 31	($	445,272)	($		179,044)	$	-	($	624,316)
Operating revenue
				For the year		ended	For the year ended
				December31,2024			December 31, 2023
Revenue from contracts with customers			$		2,764,952		$		4,823,772

(20) Operating revenue

A. Disaggregation of revenue from contracts with customers The Company derives revenue from the transfer of goods and services over time and at a point in time in the following major geographical regions:

For the year ended December31,2024 Revenue from external customer contracts Timing of revenue recognition At a point in time Over time Total For the year ended December31,2023 Revenue from external customer contracts Timing of revenue recognition At a point in time Over time Total	Asia 1,914,867 $ 1,871,793 $ 43,074 1,914,867 $ Asia 2,816,321 $ 2,807,942 $ 8,379 2,816,321 $	Europe 36,903 $ 34,785 $ 2,118 36,903 $ Europe 125,116 $ 125,116 $ - 125,116 $	America 753,765 $ 703,167 $ 50,598 753,765 $ America 1,816,064 $ 1,772,120 $ 43,944 1,816,064 $	Taiwan 59,417 $ 962 $ 58,455 59,417 $ Taiwan 66,271 $ 148 $ 66,123 66,271 $	Total
					2,764,952 $
					2,610,707 $ 154,245
					2,764,952 $
					Total
					4,823,772 $
					4,705,326 $ 118,446
					4,823,772 $

~44~

B. Contract liabilities

The Group has recognised the following revenue-related contract liabilities:

December 31, 2024 December 31, 2023 January 1, 2023 Contract liabilities $ 138,102 $ 138,364 $ 68,815

C. Revenue recognised from performance obligations satisfied in previous periods

Interest income Other income Revenue recognised that was included in the contract liability balance at the beginning of the period Interest income from bank deposits Other interest income Rent income Dividend income Other income - others	Year ended December 31,2024 56,421 $ For the year ended December 31, 2024 3,007 $ 1 3,008 $ For the year ended December31,2024 23,181 $ 3,052 3,284 29,517 $	Year ended December 31,2023 1,095 $ For the year ended December31,2023 3,369 $ 383 3,752 $ For the year ended December 31, 2023 24,409 $ 3,814 1,103 29,326 $

(21) Interest income

(22) Other income

(23) Other income and expenses

Other income and expenses
			For the year ended			For the year ended
		December31,2024			December31,2023
Net (losses) gains on financial assets at fair value
through profit or loss	($		9,278)		$	6,188
Net currency exchange gains			11,325			14,383
Other expenses	(		1,805)	(		1,150)
		$	242		$	19,421
Finance costs
			For the year ended			For the year ended
		December31,2024			December31,2023
Interest expense :
Bank loan		$	49,214		$	51,041
Lease liabilities			1,015			1,048
Other			4			2,488
		$	50,233		$	54,577

(24) Finance costs

~45~

(25) Expenses by nature

Expenses by nature
		For the year ended		For the year ended
	December 31, 2024		December 31, 2023
Employee benefit expenses	$	493,180	$	549,313
Depreciation charges on property, plant and
equipment		32,672		31,167
Depreciation charges on right-of-use assets		6,604		8,890
Depreciation charges on investment property		6,810		6,811
Amortisation charges on intangible assets		3,888		2,782

(26) Employee benefit expense

Employee benefit expense
Wages and salaries Share-based payment compensation costs Labour and health insurance fees Pension costs Other personnel expenses	For the year ended December31,2024 423,643 $ 17,626 27,345 16,160 8,406 493,180 $	For the year ended December31,2023
		488,856 $ 275 31,328 17,873 10,981
		549,313 $

• A. According to the Articles of Incorporation of the Company, employees’ compensation and directors’ remuneration shall be calculated based on current year’s earnings, which should first be used to cover accumulated deficit, if any, 10% to 20% for employees’ compensation and no more than 5% for directors’ remuneration. Employees’ compensation can be distributed in the form of shares or in cash. Employees of subsidiaries that the Company holds more than 50% shareholding are entitled to receive aforementioned shares or cash.

• Abovementioned distributable profit of the current period refers to the pre-tax profit before deduction of employees’ compensation and directors’ remuneration. A company may, by a resolution adopted by a majority vote at a meeting of Board of Directors attended by two-thirds of the total number of directors, distribute employees’ compensation and directors’ remuneration and report such distribution to the shareholders’ meeting.

• B. For the years ended December 31, 2024 and 2023, employees’ compensation were accrued at $63,390 and $76,140, respectively; directors’ remuneration were accrued at $21,130 and $25,380, respectively. The aforementioned amounts were calculated based on the Articles of Incorporation of the Company and recognised in salary expenses.

• Employees’ compensation and directors’ remuneration for 2023 amounting to $76,140 and $25,380, respectively, as resolved at the meeting of Board of Directors were in agreement with those amounts recognized in the 2023 financial statements.

• Information about employees’ compensation and directors’ remuneration of the Company as resolved at the meeting of Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

~46~

(27) Income tax

A. Income tax expense

(a) Components of income tax expense:

ome tax Income tax expense (a) Components of income tax expense:
			For the year ended			For the year ended
		December 31, 2024			December31,2023
Current tax:
Income tax arising from current year income		$	20,753		$	70,705
Charge on unappropriated retained earnings			1,048			18,789
Total current tax			21,801			89,494
Deferred tax:
Origination and reversal of temporary
differences	(		1,727)	(		34,401)
Income tax expense		$	20,074		$	55,093
(b) The income tax charged to other comprehensive income is as follows:
			For the year ended			For the year ended
		December31,2024			December31,2023
Translation differences of foreign operations		$	111,531	($		19,501)
Remeasurements of defined benefit plans			1,905			122
		$	113,436	($		19,379)
Reconciliation between income tax expense and	accounting profit:
		For the year ended			For the year ended
		December31,2024			December 31, 2023
Tax calculated based on profit before
tax and statutory tax rate	$		67,615	$		81,216
Tax exempt income or expenses disallowed by
tax regulation			1,443			43,241
Tax on unappropriated retained earnings			1,048			18,789
Effect from investment tax credits	(		9,343)	(		9,649)
Change in assessment of realisation of
deferred tax assets	(		40,689)	(		78,504)
Income tax expense	$		20,074	$		55,093

(b) The income tax charged to other comprehensive income is as follows:

B. Reconciliation between income tax expense and accounting profit:

~47~

• C. Amounts of deferred tax assets or liabilities as a result of temporary differences, tax losses and investment tax credits are as follows:

Deferred tax assets: Temporary differences: Cost of after-sales service and other estimated expenses Currency translation differences of foreign operations Subtotal Deferred tax liabilities: Temporary differences: Gain on foreign investment under equity method Pension expense Currency translation differences of foreign operations Subtotal Total Deferred tax assets: Temporary differences: Cost of after-sales service and other estimated expenses Currency translation differences of foreign operations Investment tax credits Subtotal Deferred tax liabilities: Temporary differences: Gain on foreign investment under equity method Pension expense Others Subtotal Total			2024	2024	2024
		January1	Recognised in profit or loss
	18,298 $ 81,828 100,126 $ 460,802) ($ 2,284) ( - 463,086) ($ 362,960) ($
		January1		Recognised in profit or loss
	14,590 $ 62,327 679 77,596 $ 488,077) ($ 1,960) ( 4,299) ( 494,336) ($ 416,740) ($		3,708 $ - 679) ( 3,029 $ 27,275 $ 202) ( 4,299 31,372 $ 34,401 $

• D. Details of the amount the Company is entitled as investment tax credit and unrecognised deferred tax assets are as follows: None.

~48~

• E. Expiration dates of unused tax losses and amounts of unrecognised deferred tax assets are as follows: None.

• F. The amounts of deductible temporary difference that are not recognised as deferred tax assets are as follows: None.

• G. The Company’s income tax returns through 2022 have been assessed and approved by the Tax Authority.

(28) Earnings per share

Authority. Earnings per share
Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Restricted shares to employees Employees’ compensation Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Restricted shares to employees Employees’ compensation Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	Weighted average number of ordinary shares outstanding Earnings per share Amount after tax (share in thousands) (in NT dollars) 318,005 $ 277,153 1.15 $ 318,005 $ - 1,039 - 2,111 318,005 $ 280,303 1.13 $ For theyear ended December31,2024 For the year ended December 31, 2023
	Amount after tax 350,988 $ 350,988 $ - - 350,988 $	Weighted average number of ordinary shares outstanding (share in thousands) 276,563 150 2,521 279,234	Earnings per share (in NT dollars)
			1.27 $
			1.26 $

~49~

(29) Supplemental cash flow information

Investing activities with partial cash payments

Supplemental cash flow information Investing activities with partial cash payments
			For the year ended			For the year ended
		December31,2024			December31,2023
Acquisition of property, plant, and
equipment		$	10,691		$	15,068
Add: Property and equipment and
construction billings payable at
beginning of year			313			67
Less: Property and equipment and
construction billings payable at end
of year	(		2,181)	(		313)
Cash paid		$	8,823		$	14,822
			For the year ended			For the year ended
		December31,2024			December 31, 2023
Acquisition of intangible assets		$	4,949		$	2,635
Add: Payables at beginning of year	(		159)			-
Cash paid		$	4,790		$	2,635

(30) Changes in liabilities from financing activities

January 1, 2024 Changes in cash flow from financing activities Interest expenses December 31, 2024	Short-term borrowings	Short-term notes and billspayable		Long-term borrowings (including current portion) 900,000 $ - - 900,000 $	Guarantee deposits received	Lease liabilities	Total
	1,988,000 $ 118,000) ( - 1,870,000 $	- $ 4) ( 4 - $			6,436 $ - - 6,436 $	89,575 $ 7,250) ( 1,015 83,340 $	2,984,011 $ 125,254) ( 1,019 2,859,776 $

~50~

January 1, 2023 Changes in cash flow from financing activities Interest expenses Changes in other non-cash items December 31, 2023	Short-term borrowings 1,848,000 $ 140,000 - - 1,988,000 $	Short-term notes and billspayable		Long-term borrowings (including current portion)	Guarantee deposits received Lease liabilities 6,445 $ 96,419 $ 9) ( 9,535) ( - 1,048 - 1,643 6,436 $ 89,575 $	Total 2,850,533 $ 128,299 3,536 1,643 2,984,011 $
		399,669 $ 402,157) ( 2,488 - - $		500,000 $ 400,000 - - 900,000 $

7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship:

==> picture [482 x 15] intentionally omitted <==

----- Start of picture text -----

Names of related parties Relationship with the Company
----- End of picture text -----

Names of related parties	Relationship with the Company
	A subsidiary included in the Group's
Altek International Trading Co., Ltd. (AIT)	Consolidated Financial Statements
	(Note)
Altek Lab Inc.(ALI)	"
Altek Semiconductor Corporation (SEMI)	"
Altek Biotechnology Corporation (BIO)	"
Altek Medical Pte. Co., Ltd. Taiwan Branch (AMP-TW)	"
Altek Investment Corporation (AIC)	"
Altek Medical Pte. Ltd. (AMP)	"
Altek Medical Sdn. Bhd. (AMS)	"

Note: For information on the Company’s subsidiary, please refer to Note 4(3) in the consolidated financial statements for the year ended December 31, 2024.

(2) Significant transactions and balances with related parties:

A. Operating revenue:

Operating revenue:
Sales of Goods: AMP SEMI Subtotal Sales of services: SEMI BIO Subtotal Total		Year ended December 31, 2024		Year ended December 31, 2023
		20,428 $ 8 20,436 2,616 $ 55,815 58,431 78,867 $		- $ 5 5 14,864 $ 50,767 65,631 65,636 $

~51~

Goods are sold based on the prices lists in force and terms that would be available to third parties, and the general collection term was 45~90 days after monthly billings.

B. Purchases:

Purchases:
	Year	ended December 31,	Year	ended December 31,
		2024		2023
Purchases of Goods:
AIT	$	2,191,381	$	3,083,815
Other		-		49
Total	$	2,191,381	$	3,083,864

Goods are purchased on normal commercial terms and conditions, and the payment terms was 60~120 days after monthly billings.

• C. Rent income:

60~120 days after monthly billings. Rent income:
SEMI BIO AMP-TW AIC Total		Year ended December 31, 2024 408 $ 8,374 540 24 9,346 $	Year ended December 31, 2023
			1,598 $ 8,374 540 24
			10,536 $

• D. Service fees:

Service fees:
Receivables from related parties: SEMI ALI Others Total Accounts receivable: SEMI AMP Total SEMI BIO Other Total Other receivables:		Year ended December 31, 2024		Year ended December 31, 2023
		1,092 $ 17,236 1,100 19,428 $ December31,2024 - $ 20,680 20,680 $ 2,001 $ 37,185 277 39,463 $		17,388 $ 23,056 - 40,444 $ December31,2023 2 $ - 2 $ 35,188 $ 10,312 176 45,676 $

• E. Receivables from related parties:

~52~

F. Payables to related parties:

Accounts payable: AIT Other Total AIT ALI Other Total Other payables:	December31,2024 December31,2023 696,595 $ 725,262 $ 445 - 697,040 $ 725,262 $ 1,895 $ 4,387 $ 3,011 5,998 437 384 5,343 $ 10,769 $

G. Property transactions-disposal of property, plant and equipment: December 31, 2024: None.

		Forthe yearended	December31,2023	December31,2023
		Disposal proceeds		Gain (loss) on disposal
BIO	$	-	$	60,422

The Company signed a real estate disposal contract with BIO in August 2022. As of December 31, 2022, the transfer procedure of the transaction was in progress, and the amount the related party had paid was $345,600 (shown as other current liabilities) in accordance with the agreement. The transfer procedure of the transaction had been completed in the first quarter of 2023, and the Company recognized the gain on disposal in the period (deferred revenue shown as other noncurrent liabilities).

(3) Key management compensation

Salaries and other short-term employee benefits Post-employment benefits Share-based payment compensation costs Total	For the year ended December31,2024 51,848 $ 552 1,874 54,274 $	For the year ended December 31, 2023
		42,807 $ 856 78
		43,741 $

8. PLEDGED ASSETS

The Company’s assets pledged as collateral are as follows:

Pledged asset	Purpose Medium and long-term loans Medium and long-term loans	Bookvalue	Bookvalue
		December31,2024 208,404 $ 723,794 932,198 $	December31,2023
Land, buildings and structures Investment property			210,574 $ 730,387
			940,961 $

~53~

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

None.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT SUBSEQUENT EVENT

None.

12. OTHERS

(1) Capital management

The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends, return capital or issue new shares to achieve the optimal capital structure.

(2) Financial instruments

A. Financial instruments by category

timal capital structure. nancial instruments Financial instruments by category
Financial assets Financial assets measured at fair value through profit or loss Financial assets mandatorily measured at fair value through profit or loss Financial assets at fair value through other comprehensive income Select designated equity instrument investments Financial assets at amortised cost Cash and cash equivalents Accounts receivable (including related parties) Other receivables (including related parties) Guarantee deposits paid Financial liabilities Financial liabilities at amortised cost Short-term borrowings Accounts payable (including related parties) Other payables (including related parties) Long-term borrowings (including current portion) Guarantee deposits received Lease liabilities	December31,2024 80,511 $ - $ 1,105,899 $ 411,786 44,637 25,693 1,588,015 $ 1,870,000 $ 738,183 369,866 900,000 6,436 3,884,485 $ 83,340 $	December31,2023
		89,789 $
		- $
		379,646 $ 877,054 52,516 25,710
		1,334,926 $
		1,988,000 $ 837,221 367,495 900,000 6,436
		4,099,152 $
		89,575 $

~54~

• B. Financial risk management policies

• (a) The Company’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. To minimize any adverse effects on the financial performance of the Company, derivative financial instruments, such as foreign exchange forward contracts and foreign currency option contracts are used to hedge certain exchange rate risk, and interest rate swaps are used to fix variable future cash flows. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments.

• (b) Risk management is carried out by a central treasury department (Company treasury) under policies approved by the Board of Directors. Company treasury identifies, evaluates and hedges financial risks in close co-operation with the Company’s operating units. The Board provides written principles for overall risk management, as well as written policies covering specific areas and matters, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.

• C. Significant financial risks and degrees of financial risks

• (a) Market risk

Foreign exchange risk

• i. The Company operates internationally and is exposed to exchange rate risk arising from the transactions of the Company and its subsidiaries used in various functional currency, primarily with respect to the USD and RMB. Exchange rate risk arises from future commercial transactions and recognised assets and liabilities.

• ii. Exchange rate risk arises when future commercial transactions, recognized assets or liabilities are denominated in a foreign currency that is not the entity's functional currency. The company's management has established a policy to hedge its overall exchange rate risk.

• iii. The Company has certain investments in foreign operations, whose net assets are exposed to foreign currency translation risk. Currency exposure arising from the net assets of the Company’s foreign operations is managed primarily through borrowings denominated in the relevant foreign currencies.

~55~

iv. The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

December 31, 2024

==> picture [436 x 128] intentionally omitted <==

----- Start of picture text -----

Sensitivity Analysis
Effect on
Foreign Currency Effect on Other
Amount Exchange Book Value Extent of Profit or Comprehensive
(In thousands) Rate (NTD) Variation (Loss) Income (Loss)
(Foreign currency:
functional currency)
Financial assets
Monetary items
----- End of picture text -----

(In thousands) (Foreign currency: functional currency) Financial assets Monetary items	(In thousands)	Rate (NTD) Variation (Loss) Income(Loss)	Rate (NTD) Variation (Loss) Income(Loss)
USD:NTD 21,486 USD Non-monetary items USD:NTD 341,673 USD Financial liabilities Monetary items USD:NTD 22,614 USD Foreign Currency Amount (In thousands) (Foreign currency: functional currency) Financial assets Monetary items USD:NTD 29,473 USD Non-monetary items USD:NTD 336,354 USD Financial liabilities Monetary items USD:NTD 27,518 USD	21,486 USD 341,673 USD 22,614 USD	32.785 704,419 $ 1% 7,044 $ - $ 32.785 11,201,764 $ 1% - $ 112,018 $ 32.785 741,400 $ 1% 7,414) ($ - $ Effect on Effect on Other Exchange Book Value Extent of Profit or Comprehensive Rate (NTD) Variation (Loss) Income(Loss) 30.705 904,968 $ 1% 9,050 $ - $ 30.705 10,328,265 $ 1% - $ 103,283 $ 30.705 844,940 $ 1% 8,449) ($ - $ December31,2023 SensitivityAnalysis
		Exchange Rate 30.705 30.705 30.705	Book Value (NTD) 904,968 $ 10,328,265 $ 844,940 $

• v. Total exchange gain including realised and unrealised arising from significant foreign exchange variation on the monetary items held by the Company for the years ended December 31, 2024 and 2023 amounted to $ 11,325 and $14,383, respectively.

Price risk

• i. The Company’s equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income.

~56~

• ii. The Company’s investments in equity securities comprise shares issued by the domestic companies. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 10% with all other variables held constant, post-tax profit for the years ended December 31, 2024 and 2023 would have increased/decreased by $8,051 and $8,979, respectively, as a result of gains/losses on equity securities classified as at fair value through profit or loss. Other components of equity would have increased/decreased by $0 and $0, respectively, as a result of other comprehensive income classified as equity investment at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

The Company's interest rate risk mainly comes from long-term and short-term loans. When the loan interest rate rises or falls by 0.25%, and all other factors remain unchanged, the net profit before tax in 2024 and 2023 will decrease or increase by $6,925 and $7,220, respectively. Mainly due to changes in interest expenses due to borrowings with floating rates.

• (b) Credit risk

• i. Credit risk refers to the risk of financial loss to the Company arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms.

• ii. The Company manages their credit risk taking into consideration the entire company’s concern. According to the Company’s credit policy, each local entity in the Company is responsible for managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors. The utilisation of credit limits is regularly monitored.

• iii. The Company measured internal operating procedures, past experience of trading customers, and actual transaction status. If the contract payments were past due over 90 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition. If the contract payments were past due over 360 days based on the term, the default has occurred.

• iv. The following indicators are used to determine whether the credit impairment of debt instruments has occurred:

• (i) It becomes probable that the issuer will enter bankruptcy or other financial reorganization due to their financial difficulties;

• (ii) The disappearance of an active market for that financial asset because of financial difficulties;

~57~

• (iii) Default or delinquency in interest or principal repayments;

• (iv) Adverse changes in national or regional economic conditions that are expected to cause a default.

• v. The Company classifies customers’ accounts receivable in accordance with customer types. The Company applies the simplified approach using loss provision matrix to estimate expected credit loss under the provision matrix basis.

• vi. The Company wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Company will continue executing the recourse procedures to secure their rights.

• vii. The Company used the forecastability to adjust historical and timely information to access the default possibility of accounts receivable (included related parties). As of December 31, 2024 and 2023, respectively, the provision matrix is as follows:

December31,2024 Expected loss rate Total book value Loss allowance December31,2023 Expected loss rate Total book value Loss allowance	Up to 90 days past due 91~180 days past due	181 to 360 days past due	Over 361 days	Total
	0.02% 15% 411,864 $ - $ 78 $ - $ Up to 90 days past due 91~180 days past due	30% - $ - $ 181 to 360 days past due	100% - $ - $ Over 361 days	411,864 $ 78 $ Total
	0.04% 15% 877,407 $ - $ 353 $ - $	30% - $ - $	100% - $ - $	877,407 $ 353 $

• viii. Movements in relation to the Company applying the simplified approach to provide loss allowance for accounts receivable (included related parties) are as follows:

allowance for accounts receivable (included related parties) are as	follows:
2024 At January 1 353 $ (Reversal of) impairment loss 275) ( At December 31 78 $	2023
	234 $ 119
	353 $

(c) Liquidity risk

• i. Cash flow forecasting is performed in the operating entities of the Company and aggregated by Company treasury. Company treasury monitors rolling forecasts of the Company’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities. Such forecasting takes into consideration the Company’s debt financing plans, and compliance with internal balance sheet ratio targets.

~58~

• ii. Surplus cash held by the operating entities over and above the balance required for working capital management are transferred to the Company treasury. Company treasury invests surplus cash in interest bearing current accounts, time deposits and marketable securities, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient head-room as determined by the above-mentioned forecasts.

iii.The Company has the following undrawn borrowing facilities:

0 Fixed rate: Expiring within one year Expiring beyond one year	December 31, 2024 December 31, 2023 3,424,000 $ 2,956,000 $ 100,000 100,000 3,524,000 $ 3,056,000 $

iv.The table below analyses the Company’s non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

he table are the contractual undiscounted cash flows.
December 31, 2024 Less than 1year 1yearto 3 years Non-derivative financial liabilities: Short-term borrowings 1,874,656 $ - $ Accounts payable (including related parties) 738,183 - Other payables (including related parties) 369,866 - Lease liabilities 5,519 7,577 Guarantee deposits received - 6,436 Long-term borrowings (including current portion) - 928,155 December 31, 2023 Less than 1year 1yearto 3 years Non-derivative financial liabilities: Short-term borrowings 1,993,841 $ - $ Accounts payable (including related parties) 837,221 - Other payables (including related parties) 367,495 - Lease liabilities 7,249 9,307 Guarantee deposits received - 6,436 Long-term borrowings (including current portion) - 924,967	Over3 years - $ - - 83,659 - - Over3 years
	- $ - - 87,448 - -

~59~

(3) Fair value estimation

• A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:

• Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.

• Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

• Level 3: Unobservable inputs for the asset or liability. The fair value of the Company’s investment in equity investment without active market.

• B. Fair value information of investment property at cost is provided in Note 6(9).

• C. Financial instruments was not measured at fair value, including the carrying amounts of cash and cash equivalents, accounts receivable (included related parties), other receivables (included related parties), deposits paid, long-term borrowings, short-term borrowings, short-term notes and bills payable, accounts payable (included related parties), other payables (included related parties), long-term borrowings (including current portion), deposits received and lease liabilities are approximate to their fair values.

• D. The related information of financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities are as follows:

• (a) The related information of nature of the assets is as follows:

December 31, 2024 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Unlisted stocks Financial assets at fair value through other comprehensive income Unlisted stocks	Level 1 - $ - - $	Level 2 - $ - - $	Level3 80,511 $ - 80,511 $	Total
				80,511 $ -
				80,511 $

~60~

==> picture [442 x 191] intentionally omitted <==

----- Start of picture text -----

December 31, 2023 Level 1 Level 2 Level 3 Total
Assets
Recurring fair value
measurements
Financial assets at fair
value through profit
or loss
Unlisted stocks $ - $ - $ 89,789 $ 89,789
Financial assets at fair
value through other
comprehensive income
- - - -
Unlisted stocks
$ - $ - $ 89,789 $ 89,789
----- End of picture text -----

• (b) The methods and assumptions the Company used to measure fair value are as follows:

  • i. Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the consolidated balance sheet date.

• ii. The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Company’s financial and non-financial instruments. Therefore, the estimated value derived using valuation model is adjusted accordingly with additional inputs.

• E. For the years ended December 31, 2024 and 2023, there was no transfer between Level 1 and Level 2.

• F. The following chart is the movement of Level 3 for the years ended December 31, 2024 and 2023:

At January 1 89,789 $ (Losses) gains recognised in profit or loss 9,278) ( At December 31 80,511 $ 2024	2023
	83,601 $ 6,188
	89,789 $

• G. For the years ended December 31, 2024 and 2023, there was no transfer of Level 3.

• H. Accounting Department segment is in charge of valuation procedures for fair value measurements being categorised within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, and frequently calibrating valuation model, performing back-testing, updating inputs used to the valuation model and making any other necessary adjustments to the fair value.

~61~

• I. The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

Fair value at December 31, 2024 Financial assets at fair value through profit or loss Unlisted shares 80,511 $ Fair value at December 31, 2023 Financial assets at fair value through profit or loss Unlisted shares 89,789 $	Valuation technique	Significant unobservable input Relationship of inputs to fair value Price to earnings ratio multiple, price to book ratio multiple,discount for lack of marketability, control premium The higher the multiple and control premium, the higher the fair value Significant unobservable input Relationship of inputs to fair value Price to earnings ratio multiple, price to book ratio multiple,discount for lack of marketability, control premium The higher the multiple and control premium, the higher the fair value
	Market comparable companies Valuation technique
	Market comparable companies

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

• A. Loans to others: Please refer to table 1.

• B. Provision of endorsements and guarantees to others: None.

• C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 2.

• D. Acquisition or sale of the same security with the accumulated cost exceeding NT$300 million or 20% of the Company’s paid-in capital: None.

~62~

• E. Acquisition of real estate reaching NT$300 million or 20% of paid-in capital or more: None.

• F. Disposal of real estate reaching NT$300 million or 20% of paid-in capital or more: None.

• G. Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paidin capital or more: Please refer to table 3.

• H. Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more: Please refer to table 4.

• I. Trading in derivative financial instruments undertaken during the reporting periods: None.

• J. Significant inter-company transactions during the reporting periods: Please refer to table 5.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to table 6.

(3) Information on investments in Mainland China

• A. The related information of investments in Mainland China: Please refer to table 7.

• B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Please refer to table 3 ~ table 5.

• (4) Major shareholders information

Please refer to table 8.

14. SEGMENT INFORMATION

Not applicable.

~63~

ALTEK CORPORATION STATEMENT OF CASH AND CASH EQUIVALENTS DECEMBER 31, 2024

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Item Cash Cash on hand-New Taiwan Dollar -Foreign currency USD 5,043.00 at exchange rate of 32.785 EUR 2,000.00 at exchange rate of 34.14 SGD 834.00 at exchange rate of 24.13 Bank deposits Demand deposits Foreign currency demand deposits USD 8,836,930.46 at exchange rate of 32.785 RMB 5,057.83 at exchange rate of 4.5608 JPY 32,142.00 at exchange rate of 0.2099 HKD 1,482.99 at exchange rate of 4.222 EUR 17.69 at exchange rate of 34.14 SGD 60.01 at exchange rate of 24.13 GBP 160.13 at exchange rate of 41.19 Description		Amount
		500 $ 165 68 20 753 815,382 289,719 23 7 6 1 1 7 1,105,146 1,105,899 $

~64~

ALTEK CORPORATION STATEMENT OF TRADE RECEIVABLES DECEMBER 31, 2024

(Expressed in thousands of New Taiwan dollars)

==> picture [506 x 245] intentionally omitted <==

----- Start of picture text -----

Client Name Description Amount Note
Customer:
A $ 235,369
B 37,554
C 31,604
D 24,650
E 21,039
The balance of each
customer has not
exceeded 5% of the
Other 40,968 accounts receivable
Subtotal 391,184
Related parties :
Altek Medical Pte. Ltd. 20,680
Total 411,864
Less : Allowance for uncollectible accounts ( 78)
$ 411,786
----- End of picture text -----

~65~

ALTEK CORPORATION STATEMENT OF INVENTORIES

DECEMBER 31, 2024

(Expressed in thousands of New Taiwan dollars)

Raw material Work in progress Finished goods Less : Allowance for valuation loss Note :Provided in Note 4(12). Item Description	Cost Net Realisable Value 13,558 $ 9,242 $ Note 63,665 92,882 '' 26,644 28,348 '' 103,867 130,472 $ 12,463) ( 91,404 $ Amount Note

~66~

ALTEK CORPORATION

STATEMENT OF CHANGES IN FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS - NON-CURRENT FOR THE YEAR ENDED DECEMBER 31, 2024

(Expressed in thousands of New Taiwan dollars)

Gianta Co., Ltd. Hua-chuang Automobile Information Technical Center Co.,Ltd. Name of Financial Instrument	Shares 762,876 2 Beginning	Book Value Balance	Shares Amount Shares Percentage share holding - 9,278) ($ 762,876 14.55% - - 2 0.00% 9,278) ($ Addition EndingBalance	Book Value 80,511 $ None Note - '' 80,511 $ Note Collateral
		89,789 $ - 89,789 $

Note :Recognise valuation loss.

~67~

ALTEK CORPORATION

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2024

(Expressed in thousands of New Taiwan dollars)

Name	BeginningBalance	BeginningBalance	Shares Amount - 732,280 $ Note 1 - - - 145,329 Note 2 - 348 Note 3 - - 877,957 $ Addition	Shares Amount - - $ - 273) ( Note 2 - - - - - 4,110) ( Note 4 4,383) ($ Decrease	EndingBalance	EndingBalance	Unit Price Total Amount Collateral Market Value or Net Assets Value	Unit Price Total Amount Collateral Market Value or Net Assets Value
	Shares	Amount	Shares		Shares Percentage of Ownership	Amount
Altek International Investment Co., Ltd. Altek Japan Corporation Altek International Holding (BVI) Co., Ltd. Altek Investment Corporation Altek Medical Pte. Ltd.	87,769,559 1,000 12,865,921 10,000,000 45,063,684	8,079,862 $ 10,063 1,281,674 100,235 966,729 10,438,563 $	- - - - -		87,769,559 100% 1,000 100% 12,865,921 100% 10,000,000 100% 45,063,684 69.87%	8,812,142 $ 9,790 1,427,003 100,583 962,619 11,312,137 $	- $ - - - -	8,812,142 $ None 9,790 " 1,427,003 " 100,583 " 962,619 " 11,312,137 $

Note 1 :Including the repatriation of earnings, investment gains and losses recognised under the equity method, changes in cumulative conversion adjustments, and the elimination of unrealised gains and losses adjustments for countercurrent transactions between companies, etc.

Note 2 :Including changes in investment gains and losses recognized under the equity method and cumulative conversion adjustments. Note 3 :Investment funds and investment gains recognized under the equity method. Note 4 :It includes changes in income remitted, investment gains and losses recognised under the equity method and accumulated translation adjustments.

~68~

ALTEK CORPORATION STATEMENT OF TRADE PAYABLES DECEMBER 31, 2024

(Expressed in thousands of New Taiwan dollars)

Client Name Description Amount Note Non related parties : The balance of each payable account has not exceeded 5% of Other $ 41,143 the accounts payable Related parties : Altek International 696,595 Trading Co., Ltd. Altek Medical Sdn. Bhd. 445 697,040 Total $ 738,183

~69~

ALTEK CORPORATION STATEMENT OF SHORT-TERM BORROWINGS DECEMBER 31, 2024

(Expressed in thousands of New Taiwan dollars)

Nature	Description	EndingBalance	Contract Period	Range of Interest Rate Credit Line 1.85%~1.99% 5,300,000 $ 2.0%~2.1% 1,000,000	Collateral Note None - Yes(Note) -
Unsecured borrowings Secured borrowings	Bank-borrowings Bank-borrowings	1,870,000 $ 900,000 2,770,000 $	Expired in 3 months Expired in 2 years

Note : The Company's land and buildings on the 1st to 7th floors of Tiding Building in Taipei and its affiliated parking spaces.

~70~

ALTEK CORPORATION

STATEMENT OF OPERATING REVENUE FOR THE YEAR ENDED DECEMBER 31, 2024

(Expressed in thousands of New Taiwan dollars)

==> picture [492 x 58] intentionally omitted <==

----- Start of picture text -----

Item Volume Amount Note
Net operating revenue :
Digital imaging related
application products, etc. $ 2,764,952
----- End of picture text -----

~71~

ALTEK CORPORATION

STATEMENT OF OPERATING COSTS FOR THE YEAR ENDED DECEMBER 31, 2024

(Expressed in thousands of New Taiwan dollars)

Item

Amount

Direct raw materials used Raw materials at beginning of year Add: Raw materials purchased Raw material surplus Less: Sale of raw materials Expenses transferred in Raw materials at end of year Consumption of raw materials for the year Manufacturing expenses Manufacturing cost Work in progress at beginning of year Add: Work in progress purchased Less: Expenses transferred in Sales of work in process Work in progress at end of year Cost of finished goods Finished goods at beginning at the year Add: Finished good purchased Less: Expenses transferred in Finished goods at end of year Total cost of goods sold Sales of raw materials and work in progress Allowance of loss on decline in market Inventory surplus Repair cost of after-sales service Other operating costs Total operating cost

15,473 $ 193,403 11 152,160) ( 17) ( 13,558) ( 43,152 24,649 67,801 81,628 523,522 5,172) ( 41,481) ( 63,665) ( 562,633 13,656 1,610,905 2,258) ( 26,644) ( 2,158,292 193,641 884 11) ( 26,595) ( 6,255 2,332,466 $

~72~

ALTEK CORPORATION STATEMENT OF MANUFACTURING COSTS FOR THE YEAR ENDED DECEMBER 31, 2024

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

==> picture [506 x 173] intentionally omitted <==

----- Start of picture text -----

Item Description Amount Note
Wages and salaries $ 14,794
Import and export expenses 1,853
Labor and health insurance 1,755
fees
Depreciation expense 1,233
The amount of each
item in others does
not exceed 5% of
Other 5,014 the account balance
$ 24,649
----- End of picture text -----

~73~

ALTEK CORPORATION

STATEMENT OF SELLING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2024

(Expressed in thousands of New Taiwan dollars)

==> picture [503 x 15] intentionally omitted <==

----- Start of picture text -----

Item Description Amount Note
----- End of picture text -----

Wages and salaries Import and export expenses Other	23,312 $ 4,041 12,635 The amount of each item in others does not exceed 5% of the account balance 39,988 $

~74~

ALTEK CORPORATION STATEMENT OF ADMINISTRATIVE EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2024

(Expressed in thousands of New Taiwan dollars)

Item Description Amount Note Wages and salaries $ 95,850 Directors' remuneration 26,220 Depreciation charges 20,190 Entertainment expense 20,533 The amount of each item in others does not exceed 5% of the account Other 76,811 balance $ 239,604

~75~

ALTEK CORPORATION STATEMENT OF RESEARCH AND DESIGN FOR THE YEAR ENDED DECEMBER 31, 2024

(Expressed in thousands of New Taiwan dollars)

Item Description Amount Note Wages and salaries $ 281,093 Service expenses 20,897 The amount of each item in others does not exceed 5% of the Other 94,966 account balance $ 396,956

~76~

ALTEK CORPORATION

SUMMARY STATEMENT OF CURRENT PERIOD EMPLOYEE BENEFITS, DEPRECIATION, DEPLETION AND AMORTIZATION EXPENSES BY FUNCTION

FOR THE YEAR ENDED DECEMBER 31, 2024

(Expressed in thousands of New Taiwan dollars)

Nature Function	Year ended December 31,2024	Year ended December 31,2024	Year ended December 31,2024	Year ended December 31,2023	Year ended December 31,2023	Year ended December 31,2023
	Classified as Operating Costs	Classified as Operating Expenses	Total	Classified as Operating Costs	Classified as Operating Expenses	Total
Employee benefit expense Wages and salaries Labor and health insurance fees Pension costs	18,077 $ 14,794 1,755 766	475,103 $ 400,255 25,590 15,394	493,180 $ 415,049 27,345 16,160	31,254 $ 25,845 2,959 954	518,059 $ 432,839 28,369 16,919	549,313 $ 458,684 31,328 17,873
Directors' remuneration	-	26,220	26,220	-	30,447	30,447
Other personnel expenses	762	7,644	8,406	1,496	9,485	10,981
Depreciation charges Amortisation charges	1,233 -	44,853 3,888	46,086 3,888	3,364 -	43,504 2,782	46,868 2,782

Note:

1. As at December 31, 2024 and 2023, the Company had 248 and 300 employees, including 6 and 5 non-employee directors.

2. Average employee benefit expense in current year and previous year is $1,930 and $1,759, respectively. (Total employee benefits- directors' remuneration / number of employees - number of non-emplyee directors )

3. Average employees salaries in current year and previous year is $1,715 and $1,555, respectively. (Total employee salaries / number of employees - number of non-emplyee directors )

4. Adjustments of average employees salaries 10.3%. (Average employee salaries current year - Average employee salaries previous year / Average employee salaries previous year )

5. The supervisors’ remuneration for the years ended December 31, 2024 and 2023 were both $0, due to the establishment of the audit committee.

6. The Company’s policies of salary and remuneration were as follows:

The Company’s compensation for directors including directors’ return, traveling expenses and directors’ remuneration. In accordance with the Company’s Articles of Incorporation, directors’ return

was based on the degree of participant in the operation, value of contribution to the Company and common standard of the industry. Traveling expenses were based on the common standard of

the industry and the attendance of the Board of Directors. Directors’remuneration shall not be higher than 5% of the profit of current year.

The Company's compensation for managers and employees including salary, award and employees’ return were based on the contribution, experience, management performance and responsibility and referred to the standard of the same industry. Managers’ performance examination and salary and remuneration have been reviewed by the remuneration committee and the Board of Directors, and will be checked based on the actual management result and related laws accordingly. Additionally, in accordance with the Company’s Articles of Incorporation, employees’compensation shall be distributed based on 10% to 20% of the profit of the current year.

~77~

Altek Corporation Loans to other For the year ended December 31, 2024

Table 1

Expressed in thousands of NTD (Except as otherwise indicated)

No.	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the year December 31, 2024	Balance at December 31, 2024	Actual amount drawn down	Interest rate	Nature of loan	Amount of transactions Reason with the term borrower financing - $ Operational need - Operational need - Operational need	Amount of transactions Reason with the term borrower financing - $ Operational need - Operational need - Operational need	Allowance for doubtful accounts	Collateral	Collateral	Limit on loans granted to a single party （Note)	Ceiling on total loans granted (Note)
													Item	Value
0 1 2	Altek Corporation Altek (Kunshan) Co., Ltd. Altek International Holding (BVI) Co., Ltd.	Altek Semiconductor Corporation Altek Optical Technology (Kunshan) Co. , Ltd. Altek Medical Pte. Ltd.	Other receivables- related party Other receivables- related party Other receivables- related party	Yes Yes Yes	250,000 $ 46,022 227,815	- $ 45,608 -	- $ 45,608 -	2.00% 2.8%~3% 0%	Reason for short-term financing Reason for short-term financing Reason for short-term financing	- $ - -	Operational need Operational need Operational need	- $ - -	N/A N/A N/A	- $ - -	1,009,796 $ 804,372 396,060	4,039,183 $ 1,608,744 1,320,198

Note 1: Where the amount of New Taiwan dollars in this attached table involves foreign currencies, it shall be converted into New Taiwan dollars at the exchange rate on the end date of the financial reporting period. Note 2: The ”Procedure for Provision of Loans” policy for loans granted by Altek Corporation is as follows: the ceiling on total loans is 40% of the net assets value of lender. For one company, the ceiling on loans is 10% of the net assets value of lender.

Note 3: The ”Procedure for Provision of Loans” policy for loans granted by Altek (Kunshan) Co., Ltd. is as follows: the ceiling on total loans is 40% of the net assets value of lender. For one company, the ceiling on loans is 20% of the net assets value of lender. Note 4: The ”Procedure for Provision of Loans” policy for loans granted by Altek International Holding (BVI) Co., Ltd. is as follows: the ceiling on total loans is 100% of the net assets value of lender.

Table 1

Altek Corporation

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)

December 31, 2024

Table 2

Expressed in thousands of NTD

(Except as otherwise indicated)

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account		As of December 31,2024	As of December 31,2024
				Number of shares(units)	Bookvalue	Ownership (%)	Fairvalue
Altek International Holding (BVI) Co., Ltd. Altek Corporation Altek Medical Pte.Ltd. Altek Corporation Altek (Kunshan) Co., Ltd. Toptek Electronics (Kunshan) Co., Ltd. Altek International Investment Co., Ltd. " " " "	Allianz Global Investor Fund Gianta Co., Ltd. - Common stock Profusa, Inc.- Convertible bonds Hua-chuang Automobile Information Technical Center Co., Ltd. - Common stock CPEC Huachuang Private Equity (Kunshan) Enterprise (Limited Partnership) Aimore Acoustivs Incorporation Apple Inc.-Corporate bond Microsoft Corp-Corporate bond Procter & Gamble Company-Corporate bond HSBC Holdings Plc-Financial Bonds UBS Group AG-Financial Bonds	None Director None None None None None None None None None	Financial assets at fair value through profit or loss -current Financial assets at fair value through profit or loss - non-current " Financial assets measured at fair value through other comprehensive income - non-current " " Financial assets at amortised cost - non-current " " " "	277,463 762,876 - 2 N/A N/A N/A N/A N/A N/A N/A	97,313 $ 80,511 36,536 - 39,381 - 96,896 96,353 94,967 75,971 80,257	N/A 14.55% N/A 0.00% 1.00% 12.50% N/A N/A N/A N/A N/A	97,313 $ 80,511 36,536 - 39,381 - 96,896 96,353 94,967 75,971 80,257

Table 2

Altek Corporation

Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more

For the year ended December 31, 2024

Table 3

Expressed in thousands of NTD (Except as otherwise indicated)

Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction	Transaction		Differences in transaction terms compared to third party transactions	Differences in transaction terms compared to third party transactions	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable)
Altek Corporation Altek International Trading Co., Ltd. Altek Biotechnology Corporation Altek Medical Pte, Ltd. " " Altek Medical Sdn. Bhd. Altek (Kunshan) Co., Ltd.	Altek International Trading Co., Ltd. Altek (Kunshan) Co., Ltd. Altek Medical (Kunshan) Limited Altek Medical (Kunshan) Limited Altek Biotechnology Corporation Altek Medical Sdn. Bhd. Altek Medical (Kunshan) Limited Altek International Trading Co., Ltd.	Parent-subsidiary The same ultimate parent company The same parent company Parent-subsidiary Parent-subsidiary Parent-subsidiary The same parent company The same ultimate parent company	Purchases Purchases Purchases Purchases Purchases Purchases Purchases Purchases	2,191,381 $ 2,329,715 1,683,777 595,015 1,717,224 223,133 274,392 143,247	94% 100% 100% 23% 67% 9% 90% 4%	Net 120 days Net 75 days " " " " " "	Approximately the same price with third parties " " " " " " "	Note " " " " " " "	696,595) ($ 465,426) ( 290,303) ( 172,143) ( 200,196) ( 74,779) ( 173,182) ( -	94% 100% 98% 37% 43% 16% 98% 0%

Note: The payment term with third parties was net 60~120 days.

Table 3

Altek Corporation

Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more

December 31, 2024

Table 4 Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31,2024	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date Allowance for doubtful accounts Expressed in thousands of NTD (Except as otherwise indicated)	Amount collected subsequent to the balance sheet date Allowance for doubtful accounts Expressed in thousands of NTD (Except as otherwise indicated)	Note
					Amount	Actiontaken
Altek International Trading Co., Ltd. Altek (Kunshan) Co., Ltd. Altek Medical (Kunshan) Limited " Altek Biotechnology Corporation Altek Medical (Kunshan) Limited	Altek Corporation Altek International Trading Co., Ltd. Altek Biotechnology Corporation Altek Medical Pte. Ltd. " Altek Medical Sdn. Bhd.	Parent-subsidiary The same ultimate parent company The same parent company Parent-subsidiary Parent-subsidiary The same parent company	696,595 $ 465,426 290,303 172,143 200,196 173,182	3.65 5.93 4.74 4.84 6.04 4.72	- $ - - - - -	N/A N/A N/A N/A N/A N/A	580,473 $ 434,808 280,726 172,143 200,196 93,755	- $ - - - - -

Table 4

Altek Corporation

Significant inter-company transactions during the reporting periods

For the year ended December 31, 2024

Table 5

Expressed in thousands of NTD

(Except as otherwise indicated)

Companyname	Counterparty	Relationship (Note 1)			Transaction
			General ledgeraccount	Amount	Transactionterms	Percentage of consolidated total operating revenues ortotalassets (Note2)
Altek Corporation " Altek International Trading Co., Ltd. " Altek Biotechnology Corporation " Altek Medical Pte. Ltd. " " " " " " " Altek Medical Sdn. Bhd. " Altek (Kunshan) Co., Ltd. Altek Medical (Kunshan) Limited "	Altek International Trading Co., Ltd. " Altek (Kunshan) Co., Ltd. " Altek Medical (Kunshan) Limited " Altek Corporation " Altek Medical (Kunshan) Limited " Altek Biotechnology Corporation " Altek Medical Sdn. Bhd. " Altek Medical (Kunshan) Limited " Altek International Trading Co., Ltd. Altek (Kunshan) Co., Ltd. "	(1) (1) (3) (3) (3) (3) (2) (2) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3)	Purchases Accounts payable Purchases Accounts payable Purchases Accounts payable Purchases Accounts payable Purchases Accounts payable Purchases Accounts payable Purchases Accounts payable Purchases Accounts payable Purchases Purchases Accounts payable	2,191,381 $ 696,595 2,329,715 465,426 1,683,777 290,303 20,249 20,680 595,015 172,143 1,717,224 200,196 223,133 74,779 274,392 173,182 143,247 98,901 86,933	Net 120 days " Net 75 days " " " " " " " " " " " " " " " "	30% 4% 32% 3% 23% 2% 0% 0% 8% 1% 24% 1% 3% 0% 4% 1% 2% 1% 1%

Note 1: Relationship between transaction and counterparty is classified into the following categories:

• (1) Parent company to subsidiary.

• (2) Subsidiary to parent company.

• (3) Subsidiary to subsidiary.

Note 2: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.

Note 3: The Company may decide to disclose or not to disclose transaction details in this table based on the Materiality Principle.

Table 5

Altek Corporation

Information on investees

Expressed in thousands of NTD

For the year ended December 31, 2024

Table 6

(Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at December 31, 2024	Shares held as at December 31, 2024	Shares held as at December 31, 2024	Net profit (loss) of the investee for the year ended December 31, 2024	Investment income(loss) recognised by the Company for the year ended December 31, 2024	Footnote
				Balance as at December 31, 2024	Balance as at December 31, 2023	Number of shares	Ownership (%)	Book value
Altek Corporation " " " " Altek International Investment Co., Ltd. " " " Altek Semiconductor (Cayman) Co., Ltd. Altek Medical Pte. Ltd. " " " Altek (Kunshan) Co., Ltd.	Altek International Investment Co., Ltd. Altek Japan Corporation Altek International Holding (BVI) Co, Ltd. Altek Investment Corporation Altek Medical Pte. Ltd. Altek Lab Inc. Altek Semiconductor (Cayman) Co., Ltd. Altek Optical Technology (Cayman) Co., Ltd. Altek International Trading Co, Ltd. Altek Semiconducton Corporation Altek Biotechnology Corporation Altek Medical (HongKong) Limited Altek Biotechnology Pte. Ltd. Altek Medical Sdn. Bhd. Altek Technology Co, Ltd.	British Virgin Islands Japan British Virgin Islands Republic of China Singaproe U.S.A. Cayman Islands Cayman Islands Republic of Seychelles Republic of China Republic of China HongKong Singaproe Malaysia Republic of China	Investment Buying and saleing of electronic components Investment Investment Investment and general business operations Collection of American digital imaging technology information and design services Investment Investment Intercompany transactions Research design and sales of ASIC Research and development, manufacture and sales of medical electronic equipments Investment general business operations general business operations Production and sales of electronic related product components	2,886,407 $ 2,869 415,376 100,000 755,272 120,640 437,589 434,270 327,850 500,000 25,376 49,178 - 131,140 28,000	2,886,407 $ 2,869 415,376 100,000 755,272 120,640 437,589 434,270 327,850 500,000 25,376 39,342 16,393 65,570 -	87,769,559 1,000 12,865,921 10,000,000 45,063,684 11,311,875 43,000,000 13,246,000 10,000,000 50,000,000 1,100,000 N/A - 18,234,000 2,800,000	100 100 100 100 69.87 100 100 100 100 100 100 100 100 100 100	8,812,142 $ 9,790 1,427,003 100,583 962,619 71,813 121,235 150,220 234,932 115,468 961,706 106,883 - 103,219 28,018	281,584 $ 66 58,224 348 362,403 1,895 11,826 7,156 19,573) ( 11,716 103,255 5,456) ( 300) ( 22,866) ( 18	279,138 $ 66 58,224 348 261,556 1,895 13,729 7,156 19,573) ( 11,716 76,779 4,322) ( 210) ( 15,054) ( 18	Note 1 Note 1 Note 2 Note 1 Note 2 Note 2 Note 2 Note 2 Note 3 Note 1 Note 2 Note 4

Note 1: The difference between the profit or loss of the investee for the current period and the investment profit or loss recognised in the current period is the unrealized profit and loss adjustments for countercurrent transactions between subsidiaries. Note 2: The difference between the profit and loss of the investee company in the current period and the investment profit and loss recognised in the current period is based on the shareholding ratio. Note 3: Altek Biotechnology Pte. Ltd. completed cancellation of registration on November 4,2024.

Note 4: Invested and held by Altek (Kunshan) Co., Ltd. on November 6,2024.

Table 6

Altek Corporation

Information on investments in Mainland China

For the year ended December 31, 2024

Table 7

Expressed in thousands of NTD (Except as otherwise indicated)

Investee in Mainland China	Main business activities	Paid-in capital	Investment method （Note 1）	Accumulated amount of remittance from Taiwan to Mainland China as of January1,2024	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31,2024	Accumulated amount of remittance from Taiwan toMainland China as of December 31,2024	Net profit (loss) of investee for the year ended December 31,2024	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31, 2024 (Note 4)	Accumulated amount of investment income remitted back to Taiwan as of December 31,2024 Book value of investments in Mainland China as of December 31,2024
					Remitted to MainlandChina Remitted back to Taiwan
Altek (Kunshan) Co., Ltd. (Note 2) Toptek Electronics (Kunshan) Co., Ltd. (Note 3 and 6) Altek Trading (Shanghai) Limited Altek Precision (Kunshan) Co., Ltd. Altek Optical Technology (Kunshan) Co., Ltd. Altek Semiconductor (Shanghai) Co., Ltd. (Note 5) Altek Medical (Shanghai) Limited Altek Medical (Kunshan) Limited Jia Jing Business Management (Kunshan) Co., Ltd. (Note 5) Hong Jing Business Management (Kunshan) Co., Ltd. (Note 5)	Manufacture and sale of digital still cameras and its accessories Production /sales of electronic product components Manufacture and sale of components for electronic related products Design, manufacture and sales of digital camera parts Manufacture and sale of components for electronic related products Research design and sales of imaging technologies, electronic software and hardware Sales of medical electronic equipment Manufacture and sale of medical electronic equipment Business management and non- residential Property leasing Business management and Property leasing	578,000 $ 163,925 278,673 452,433 458,990 49,178 32,785 27,365 620,292 427,844	2 2 2 2 2 2 2 2 2 2	1,475,325 $ 297,786 278,673 452,433 436,041 - - - - -	- $ - $ - - - - - - - - - - - - - - - - - -	1,475,325 $ 297,786 278,673 452,433 436,041 - - - - -	230,721 $ 10,227 17,544) ( 3,478 9,542 6,037) ( 7,481 36,705 41,404 12,532) (	100 100 100 100 75 100 69.87 69.87 100 100	230,721 $ 10,227 17,544) ( 3,478 7,157 6,037) ( 4,970 26,026 41,404 12,532) (	4,021,877 $ - $ 586,354 98,355 268,768 - 170,849 - 150,217 - 103,661 - 103,669 - 69,295 - 703,200 - 443,406 -

Note 1: Investment methods are classified into the following three categories; fill in the number of category each case belongs to:

(1)Directly invest in a company in Mainland China.

(2)Through investing in an existing company in the third area,which then investeed in the investee in Mainland China.

(3)Others.

Note 2: Including retained earnings capitalized of US$4,600 (In thousand of US dollars).

Note 3: Including retained earnings capitalized of US$3,600 (In thousand of US dollars).

Note 4: Investment income or loss was recognised in the financial statements that are audited by the R.O.C parent company's independent auditors. Note 5: It was established by Altek (Kunshan) Co., Ltd.

Note 6: Altek EMS (Kunshan) Co., Ltd. renamed to Toptek Electronics (Kunshan) Co., Ltd. on November 15,2024.

Company name

Altek Corporation

Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2024

$2,940,257

Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)

$3,225,181

Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA $6,058,775

Table 7

Altek Corporation Information of major shareholders December 31, 2024

Table 8

Name of major shareholders	Shares	Shares
	Number of shares held	Holding percentage
Yitsang International Co., Ltd.	20,389,158	6.66%

Table 8