Advanced Optoelectronic Technology Inc.
Parent Company Only Financial Statements and Independent Auditors' Report
2025 and 2024
(Stock code: 3437)

Company address: No. 13, Gongye 5th Rd., Hukou Township, Hsinchu County
TEL: (03)597-6988

Notice to readers

For the convenience of readers and for information purpose only, the auditors' report and company financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. This English-version annual report is a summary translation of the Chinese version and is not an official document of the shareholders' meeting. If there is any discrepancy between the English and Chinese versions, the Chinese version shall prevail.

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Independent Auditors' Report

(2026) Cai-Shen-Bao-Zi No. 25004453

To: Advanced Optoelectronic Technology Inc.

Audit opinion

Advanced Optoelectronic Technology Inc.'s parent company balance sheets as of December 31, 2025 and 2024, and the parent company statements of comprehensive income, parent company statements of changes in equity, parent company statements of cash flows, and notes to the parent company financial statements (including a summary of significant accounting policies) for the years ended December 31, 2025 and 2024, have been audited and completed by our firm of certified public accountants.

In our opinion, the accompanying Parent Company Only Financial Statements present fairly, in all material respects, the financial position of the Advanced Optoelectronic Technology Inc. as of December 31, 2025 and 2024, and its parent company only financial performance and its parent company only cash flows for the years then ended in accordance with the Regulation Governing the Preparation of Financial Reports by Securities Issuers.

Basis for audit opinion

We conducted our audit in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards generally accepted in 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 Advanced Optoelectronic Technology Inc. in accordance with The Norm of Professional Ethics for Certified Public Accountants of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that sufficient and appropriate audit evidence has been obtained in order to be served as a basis for presenting our audit opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Parent Company Only Financial Statements of Advanced Optoelectronic Technology Inc. for the year ended December 31, 2025. These matters were addressed in the context of our audit of the Parent Company Only Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matters in the Parent Company Only Financial Statements of the Company for the year ended December 31, 2025 are as follows:

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Inventory valuation

Description of matters

For descriptions of the accounting policies, accounting estimates, and the uncertainties of accounting estimates for inventory valuation and assumptions, and accounting items, please see Notes IV (XII), V (II) and VI (VI) to the Parent Company Only Financial Statements.

The principal business of the Advanced Optoelectronic Technology Inc. is the manufacture and sale of light-emitting diodes. Due to a large number of competitors from China manufacturers, the commodity prices may be vulnerable to fluctuations or the product sale may not be as expected, which may affect the estimation result of the net realizable value of inventory valuation.

The Advanced Optoelectronic Technology Inc. adjusts its inventory requirements in response to the sales market and development strategies. Since LEDs are the main sales commodity, the related inventory amount is significant. The management evaluates the inventory according to the lower cost and net realizable value. Because the above process involves subjective judgments, we believe that the accounting estimate has a significant impact on the assessment of inventory value, so it is listed as one of the most important matters during the audit.

Corresponding audit procedures

This matter covers Advanced Optoelectronic Technology Inc. and its subsidiaries (investment accounted for under the equity method). The main audit procedures that we have implemented are as follows:

We have evaluated the policy adopted for the allowance for inventory write-down based on our understanding of the nature of the Advanced Optoelectronic Technology Inc.'s operations and industry.
We have tested the basis for the net realizable value to see whether it complies with the policy of the Advanced Optoelectronic Technology Inc.. Calculation is performed by taking the sales and net realizable value of the individual inventory number from random sampling.
Obtain obsolete inventory details identified by the management, review related documents, and reconcile the records contained in the accounts.

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 Regulation Governing the Preparation of Financial Reports by Securities Issuers, and for such internal control as management determines is necessary to enable the preparation of Parent Company Only Financial Statements that are free from material misstatement, whether due to fraud or error.

In preparing the Parent Company Only Financial Statements, the management is responsible for assessing Advanced Optoelectronic Technology Inc.'s capability 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 Advanced Optoelectronic Technology Inc., or to cease operations, or has no realistic alternative but to do so.

Those charged with governance, including the audit committee, are responsible for overseeing Advanced Optoelectronic Technology Inc.'s financial reporting process.

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

Our objectives are to obtain reasonable assurance on whether the Parent Company Only Financial Statements as a whole are free from material misstatement arising from fraud or error, and to issue an independent auditor's report. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Auditing Standards of the Republic of China will always detect a material misstatement when it exists. Misstatement may result from fraud or error. Misstatements are considered material, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Parent Company Only Financial Statements.

We exercised professional judgment and skepticism during the audit in accordance with the Auditing Standards of the Republic of China. We also perform the following tasks:

Identify and assess the risks of material misstatement of the Parent Company Only Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Understand the internal control related to the audit in order to design appropriate audit procedures under the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
Assess the appropriateness of the accounting policies adopted by the management, and the reasonableness of the accounting estimates and related disclosures made by the management.
Conclude on the appropriateness of the management's use of the going concern basis of accounting based on the audit evidence obtained, and whether a material uncertainty exists for events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the Parent Company Only Financial Statements or, if such disclosures are inappropriate, to modify our opinion. Our conclusion is based on the audit evidence acquired as of the date of the audit report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure, and content of the Parent Company Only Financial Statements (including relevant notes), and whether the Parent Company Only Financial Statements adequately present the relevant transactions and events.
Obtain sufficient and appropriate audit evidence concerning the financial information of entities within the Advanced Optoelectronic Technology Inc., to express an opinion on the Parent Company Only Financial Statements. We are responsible for the direction, supervision, and performance of the Company's audit. We remain solely responsible for our audit opinion.

The matters communicated between us and the governing body include the planned scope and time of the audit and significant audit findings (including any significant deficiencies in internal control identified during the audit).

We also provided the governing body with a declaration that we have complied with relevant ethical requirements regarding independence, and we communicated with them all relationships that may be thought to undermine our independence and other matters (including related protective measures).

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

PricewaterhouseCoopers Taiwan

Po-Chuan Lin

Accountant

Shu-Chiung Chang

Financial Supervisory Commission

Approval No.: Jin -Guan-Zheng-Shen - Zi No. 1100350706

Former Financial Supervisory Commission, Executive Yuan

Approval No.: Jin-Guan-Zheng-Shen - Zi No. 0990042602

March 12, 2026

Unit: NT$ Thousand

Advanced Optoelectronic Technology Inc.

Parent Company Only Balance Sheet
December 31, 2025 and 2024

	Assets	Notes	December 31, 2025		December 31, 2024
			Amount	%	Amount	%
Current assets
1100	Cash and cash equivalents	VI (I)	$ 867,980	34	$ 972,859	31
1110	Financial assets at fair value through profit or loss (FVTPL) - Current	VI (II)	20	-	770	-
1136	Financial assets at amortized cost - current	VI (III)	-	-	130,000	4
1170	Accounts receivable, net	VI (IV)	251,772	10	356,566	12
1180	Accounts receivable - related parties, net	VI (IV) and VII	121,999	5	113,085	4
1200	Other receivables	VI (V) and VII	20,025	1	111,738	4
1220	Current income tax assets		2,450	-	2,536	-
130X	Inventory	VI (VI)	170,846	6	159,038	5
1410	Prepayments		8,969	-	10,084	-
11XX	Total of current assets		1,444,061	56	1,856,676	60
Non-current assets
1517	Financial assets at FVTOCI - non-current	VI (VII)	307,285	12	382,689	12
1550	Investment under equity method	VI (VIII)	83,237	3	105,442	3
1600	Property, plant, and equipment	VI (IX) and VII	598,493	23	621,265	20
1755	Right-of-use assets	VI (X)	-	-	351	-
1780	Intangible assets	VI (XI)	43,842	2	75,633	3
1840	Deferred tax assets	VI (XXIII)	86,613	4	75,292	2
1990	Other non-current assets - others	VIII	30	-	246	-
15XX	Total non-current assets		1,119,500	44	1,260,918	40
1XXX	Total assets		$ 2,563,561	100	$ 3,117,594	100

(continued on next page)

Advanced Optoelectronic Technology Inc.
Parent Company Only Balance Sheet
December 31, 2025 and 2024
Unit: NT$ Thousand

	Liabilities and equity	Notes	December 31, 2025		December 31, 2024
			Amount	%	Amount	%
Current liabilities
2120	Financial liabilities at fair value through profit or loss - Current	VI (II)	$ 3,049	-	$ 4,709	-
2130	Contract liabilities - current	VI (XVIII)	776	-	5,160	-
2170	Accounts payable		273,629	11	294,647	10
2180	Accounts payable - related parties	VII	8,598	-	6,914	-
2200	Other payables	VI (XII) and VII	208,615	8	265,192	9
2280	Lease liabilities - current		-	-	362	-
2399	Other current liabilities - others		10,749	1	10,804	-
21XX	Total of current liabilities		505,416	20	587,788	19
Non-current liabilities
2570	Deferred income tax liabilities	VI (XXIII)	6,137	-	5,956	-
2610	Long-term notes and payables	VI (XIII)	-	-	13,114	-
25XX	Total of non-current liabilities		6,137	-	19,070	-
2XXX	Total liabilities		511,553	20	606,858	19
Equity
	Share capital	VI (XV)
3110	Common stock share capital		1,445,480	56	1,445,480	47
	Capital Surplus	VI (XVI)
3200	Capital Surplus		890,972	35	956,721	30
	Retained earnings	VI (XVII)
3310	Legal reserves		-	-	69,665	2
3350	Losses to be compensated		( 383,404)	( 15)	( 135,414)	( 4)
	Other equity
3400	Other equity		98,960	4	174,284	6
3XXX	Total equity		2,052,008	80	2,510,736	81
	Significant Contingent Liabilities and IX Unrecognized Commitments
3X2X	Total liabilities and equity		$ 2,563,561	100	$ 3,117,594	100

The attached notes to the parent company only financial reports are part of this parent company only financial report; please refer to them, too.

Chairman: Fang, Jung Hsi
Manager: Fang, Jung-Hsi
Accounting Officer: Chang, Hui-Ling

Advanced Optoelectronic Technology Inc.

Parent Company Only Statement of Comprehensive Income
January 1 to December 31, 2025 and 2024

Unit: NT$ Thousand
(except for loss per share in NT$)

	Items	Notes	2025		2024
			Amount	%	Amount	%
4000	Operating revenue	VI (XVIII) and VII	$ 1,381,680	100	$ 1,842,190	100
5000	Operating cost	VI (VI)(XXII) and VII	( 1,348,283)	( 98)	( 1,511,121)	( 82)
5900	Gross profit		33,397	2	331,069	18
5910	Unrealized loss (gain) on sales		392	-	3)	-
5920	Realized gain on sales		3	-	1,202	-
5950	Gross operating profit, net		33,792	2	332,268	18
	Operating expenses	VI (XXII) and VII
6100	Sales and marketing expenses		( 130,144)	( 9)	( 162,733)	( 9)
6200	Administrative expenses		( 179,466)	( 13)	( 202,162)	( 11)
6300	R&D expenses		( 77,552)	( 6)	( 82,331)	( 4)
6450	Expected credit impairment gain (loss)	XII (II)	( 39,907)	( 3)	3,521	-
6000	Total operating expenses		( 427,069)	( 31)	( 443,705)	( 24)
6900	Operating loss		( 393,277)	( 29)	( 111,437)	( 6)
	Non-operating income and expense
7100	Interest income		14,470	1	17,496	1
7010	Other income	VI (XIX) and VII	6,626	1	15,287	1
7020	Other gains and losses	VI (XX)	1,196	-	4,200	-
7050	Financial cost	VI (XXI)	( 869)	-	( 3,448)	-
7070	Share of the profit or loss of the subsidiaries, affiliated companies and joint ventures under the equity method	VI (VIII)
7000	Total non-operating income and expenses		( 22,680)	( 2)	( 57,307)	( 3)
7900	Net loss before tax		( 1,257)	-	( 23,772)	( 1)
7950	Income tax benefit (expense)	VI (XXIII)	( 394,534)	( 29)	( 135,209)	( 7)
8200	Current net loss		( 11,130)	1	( 205)	-
	Other comprehensive income (net)
	Items not reclassified to profit or loss
8316	Unrealized gains (losses) on investments in equity instruments at FVTOCI	VI (VII)	( $ 75,404)	( 5)	$ 163,684	9
8310	Total of items not reclassified to profit or loss		( 75,404)	( 5)	163,684	9
	Items that may be reclassified subsequently to profit or loss
8361	Exchange difference in the translation of the financial statement of foreign operations		80	-	2,952	-
8360	Total of items that may be reclassified subsequently to profit or loss		80	-	2,952	-
8300	Other comprehensive income (loss) - net amount after tax		( $ 75,324)	( 5)	$ 166,636	9
8500	Total comprehensive income (loss) in the current period		( $ 458,728)	( 33)	$ 31,222	2
	Loss per share	VI (XXIV)
9750	Basic loss per share		( $ 2.65)	( $ 0.94)

The attached notes to the parent company only financial reports are part of this parent company only financial report; please refer to them, too.

Chairman: Fang, Jung Hsi
Manager: Fang, Jung-Hsi
Accounting Officer: Chang, Hui-Ling

Advanced Optoelectronic Technology Inc.
Parent Company Only Statement of Changes In Equity
January 1 to December 31, 2025 and 2024
Unit: NT$ Thousand

	Notes	Common stock share capital	Capital Surplus					Retained earnings		Other equity		Total equity
			Shares premium from issuance	Recognition of changes in equity of subsidiaries	Donated assets	Changes in the net equity value of affiliates and joint ventures recognized under the equity method	Expired stock options	Legal reserves	Losses to be compensated	Exchange difference in the translation of the financial statement of foreign operations	Financial assets at FVTOCI - Unrealized gains or losses
2024
Balance on January 1, 2024		$ 1,445,480	$ 936,594	$ 3,386	$ 5,900	$ 10,681	$ 48	$ 168,696	($ 99,031)	($ 6,651)	$ 14,390	$ 2,479,493
Current net loss		-	-	-	-	-	-	-	(135,414)	-	-	(135,414)
Other comprehensive income (loss)	VI (VII)	-	-	-	-	-	-	-	-	2,952	163,684	166,636
Total comprehensive income (loss)		-	-	-	-	-	-	-	(135,414)	2,952	163,684	31,222
Appropriation and distribution of 2023 earnings:	VI (XVII)
Legal reserve used to make up losses		-	-	-	-	-	-	(99,031)	99,031	-	-	-
Dividends unclaimed by shareholders beyond the statute of limitations		-	-	-	112	-	-	-	-	-	-	112
Disposal of investment under equity method		-	-	-	-	-	-	-	-	(91)	-	(91)
Balance on December 31, 2024		$ 1,445,480	$ 936,594	$ 3,386	$ 6,012	$ 10,681	$ 48	$ 69,665	($ 135,414)	($ 3,790)	$ 178,074	$ 2,510,736
2025
Balance on January 1, 2025		$ 1,445,480	$ 936,594	$ 3,386	$ 6,012	$ 10,681	$ 48	$ 69,665	($ 135,414)	($ 3,790)	$ 178,074	$ 2,510,736
Current net loss		-	-	-	-	-	-	-	(383,404)	-	-	(383,404)
Other comprehensive income (loss)	VI (VII)	-	-	-	-	-	-	-	-	80	(75,404)	(75,324)
Total comprehensive income (loss)		-	-	-	-	-	-	-	(383,404)	80	(75,404)	(458,728)
Appropriation and distribution of 2024 earnings:	VI (XVII)
Legal reserve used to make up losses		-	-	-	-	-	-	(69,665)	69,665	-	-	-
Capital reserve to cover losses	VI (XVII)	-	(45,622)	(3,386)	(6,012)	(10,681)	(48)	-	65,749	-	-	-
Balance on December 31, 2025		$ 1,445,480	$ 890,972	$ -	$ -	$ -	$ -	$ -	($ 383,404)	($ 3,710)	$ 102,670	$ 2,052,008

The attached notes to the parent company only financial reports are part of this parent company only financial report; please refer to them, too.

Chairman: Fang, Jung Hsi

Manager: Fang, Jung-Hsi

Accounting Supervisor: Chang, Hui-Ling

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Advanced Optoelectronic Technology Inc.

Parent Company Only Statement of Cash Flows
January 1 to December 31, 2025 and 2024

Unit: NT$ Thousand

	Notes	January 1 to December 31, 2025	January 1 to December 31, 2024
Cash flow from operating activities
Net loss before tax for current period		($ 394,534)	($ 135,209)
Adjustment items
Income/expenses that do not affect cash flow
Depreciation expenses	VI (XXII)	127,385	130,193
Amortized expenses	VI (XI) (XXII)	38,451	39,160
Expected credit impairment loss (gain)	XII (II)	39,907	( 3,521 )
Losses on financial assets and liabilities at FVTPL	VI (II) (XX)	4,211	18,146
Interest expense	VI (XXI)	869	3,448
Interest income		( 14,470 )	( 17,496 )
Dividend income	VI (XIX)	( 2,440 )	( 1,219 )
The share of loss on the subsidiaries and affiliated companies under the equity method	VI (VIII)	22,680	57,307
Gains from the disposal of property, plant, and equipment	VI (XX)	( 43 )	( 645 )
Gains on disposal of investment accounted for using equity method	VI (XX)	-	( 91 )
Unrealized gain (loss) on sales		( 392 )	3
Realized gain on sales		( 3 )	( 1,202 )
Changes in operating activities related assets/liabilities
Net changes in assets related to operating activities
Financial assets at fair value through profit or loss (FVTPL) - Current		750	4,900
Accounts receivable		64,527	( 8,269 )
Accounts receivable - related parties		( 8,914 )	129,798
Other receivables		91,457	( 83,772 )
Inventory		( 11,808 )	( 10,538 )
Prepayments		1,115	4,107
Other current assets		-	283
Net changes in liabilities related to operating activities
Financial liabilities at fair value through profit or loss - Current		( 5,871 )	( 14,598 )
Contract liabilities - current		( 4,384 )	5,160
Accounts payable		( 21,018 )	( 11,875 )
Accounts payable - related parties		1,684	( 36,761 )
Other payables		( 20,661 )	10,807
Other current liabilities - others		( 55 )	( 3,476 )
Cash inflow (outflow) from operations		( 91,557 )	74,640
Interest received		14,726	17,244
Dividends received		2,440	1,219
Interest paid		( 829 )	( 3,803 )
Refund (payment) of income tax		76	( 891 )
Net cash inflow (outflow) from operating activities		( 75,144 )	88,409

(continued on next page)

Advanced Optoelectronic Technology Inc.
Parent Company Only Statement of Cash Flows
January 1 to December 31, 2025 and 2024

Unit: NT$ Thousand

	Notes	January 1 to December 31, 2025	January 1 to December 31, 2024
Cash flows from investing activities
Acquisition of financial assets at fair value through other comprehensive income - non-current		$ -	($ 13,051)
Financial assets at amortized cost		-	( 130,000 )
Disposal of financial assets at amortized cost		130,000	-
Acquisition of property, plant, and equipment	VI (XXV)	( 116,726 )	( 53,481 )
Disposal of property, plant, and equipment		43	3,079
Acquisition of intangible assets	VI (XXV)	( 43,266 )	( 30,655 )
Decrease in refundable deposits		216	1,265
Decrease of other non-current assets - others		360	549
Net cash outflow from investing activities		( 29,373 )	( 222,294 )
Cash flow from financing activities
Repayment of lease principal	VI (XXVI)	( 362 )	( 1,070 )
Dividends unclaimed by shareholders beyond the statute of limitations		-	112
Net cash outflow from financing activities		( 362 )	( 958 )
Decrease in cash and cash equivalents for current period		( 104,879 )	( 134,843 )
Opening balance of cash and cash equivalents		972,859	1,107,702
Closing balance of cash and cash equivalents		$ 867,980	$ 972,859

The attached notes to the parent company only financial reports are part of this parent company only financial report; please refer to them, too.

Chairman:Fang, Jung Hsi
Manager: Fang, Jung-Hsi
Accounting Officer: Chang, Hui-Ling

Advanced Optoelectronic Technology Inc.
Notes to Parent Company Only Financial Statements
2025 and 2024
Unit: NT$ Thousand
(unless otherwise stated)

I. Company history

Advanced Optoelectronic Technology Inc. (hereinafter referred to as the "Company") was incorporated in the Republic of China on October 2, 1999. The original name in Mandarin was changed (from "先進開發光電股份有限公司" to "榮創能源科技股份有限公司"), while the English name of the Company remains the same. The renaming was approved by the competent authority on July 14, 2010. The Company primarily engages in the R&D, testing, manufacturing and sale of LEDs, as well as the import/export and trading of raw materials and semi-finished products. The Company's shares have been listed for trading on the Taiwan Stock Exchange since July 9, 2014.

II. Adoption of the date and procedures of the Financial Statements

The parent company only financial report was approved by the Board of Directors on March 12, 2026.

III. Applicable new and amended standards and interpretations

(I) Effect upon adoption of the new and amended IFRSs and accounting standards that came into effect and approved by the Financial Supervisory Commission ("FSC").

The following table sets forth the standards and interpretations newly released, amended, and revised of the IFRSs and accounting standards applicable in 2025 that came into effect and endorsed by the FSC:

New/revised/amended standards and interpretations	IASB
Amendments to IAS 21 "Lack of Convertibility"	January 1, 2025

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

(II) Effect of new issuances of or amendments to IFRSs and accounting standards as endorsed by the FSC but not yet adopted by the Group

The following table sets forth the standards and interpretations newly released, amended, and revised of the IFRSs and accounting standards applicable in 2026 endorsed by the FSC:

New/revised/amended standards and interpretations	IASB
Amendments to IFRS 9 and IFRS 7: "Amendments to Classification and Measurement of Financial Instruments"	January 1, 2026
Amendments to IFRS 9 and IFRS 7 "Contracts Referencing Nature-dependent Electricity"	January 1, 2026
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 – comparative information'	January 1, 2023
Annual Improvements to IFRS Accounting Standards - Volume 11	January 1, 2026

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

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(III) IFRSs and 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 IFRSs and accounting standards as endorsed by the FSC are as follows:

New/revised/amended standards and interpretations	Effective date announced by IASB
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’	To be determined by International Accounting Standards
IFRS 18 "Presentation and Disclosure of Financial Statements"	January 1, 2027 (Note)
IFRS 19 "Subsidiaries without Public Accountability: Disclosures"	January 1, 2027
Amendments to IAS 21 "Translation to a Hyperinflationary Presentation Currency"	January 1, 2027

Note: In a press release dated September 25, 2025, the FSC announced that International Financial Reporting Standard No. 18 (hereinafter referred to as "IFRS 18") will be applicable to publicly listed companies starting in 2028. Additionally, companies may elect to apply IFRS 18 early, provided they must obtain approval by the FSC.

Except as described below, the Company has assessed that the above standards and interpretations do not have a significant impact on the Company's financial position and financial performance:

IFRS 18 "Presentation and Disclosure of Financial Statements"

IFRS 18 "Presentation and Disclosure of Financial Statements" replaces IAS 1 and updates the structure of the statement of comprehensive income, adds disclosure of management performance measures, and strengthens the principles of aggregation and disaggregation applied to the primary financial statements and notes.

IV. Summary of significant accounting policies

The major accounting policies adopted in the preparation of this parent company only financial report are described below. Unless otherwise stated, these policies apply consistently throughout the reporting period.

(I) Compliance statement

This parent company only financial statement was prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

(II) Basis of preparation

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

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

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

The preparation of financial statements in conformity with the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the FSC (collectively referred to 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 V.

(III) Conversion of foreign currencies

Items included in the parent company only financial report of the Company are measured by the currency of the primary economic environment in which the entity operates (i.e. the functional currency). The financial statements are presented in the Company's functional currency, which is "New Taiwan Dollar".

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Transactions and balances in foreign currencies

(1) Transactions in foreign currencies are converted into the functional currency at the spot exchange rate on the transaction or measurement date, and the difference from such conversion is recognized as the profits or losses for the current term.

(2) The balance of foreign currency assets and liabilities is adjusted according to the evaluation of the spot exchange rate on the balance sheet date, and the difference from such adjustment is recognized as the profits or losses for the current term.

(3) The balance of foreign currency non-monetary assets and liabilities measured at fair value through profit and loss is adjusted according to the spot exchange rate on the balance sheet date, and the exchange difference generated as a result of the adjustment is recognized as the current profit and loss; the value measured through other for the comprehensive profit or loss that is measured at fair value, it shall be adjusted according to the evaluation of the spot exchange rate on the balance sheet date, and the exchange difference arising from the adjustment shall be stated as the other comprehensive income. Those not measured using fair value shall be measured using historical rates on the initial trading day.

(4) All exchange gains and losses are reported in the "other gains and losses" of the comprehensive income statement.

Conversion of foreign operations

(1) For all entities whose functional currency is different from the presentation currency, the operating results and financial status are converted into the presentation currency in the following ways:

A. Assets and liabilities expressed in each balance sheet are converted at the closing exchange rate on the balance sheet date;

B. The income, expense, and loss expressed in each comprehensive income statement shall be converted at the average exchange rate in the current period; and

C. All exchange differences arising from conversion are recognized in other comprehensive income.

(2) When the foreign operations disposed or sold are affiliated companies, the exchange differences will be re-categorized under other comprehensive income proportionally to the current profits or losses as part of the sales profits or losses. However, if the Company still retains part of its equity in the former affiliate, but has lost its significant influence on the affiliated enterprise of foreign operations, it shall be treated as a disposal of all interests in the foreign operations.

(3) When the foreign operation that is partially disposed of or sold is a subsidiary, the accumulated exchange difference recognized in other comprehensive income is re-attributed to the non-controlling interests of the foreign operation on a pro-rata basis. However, if the Company still retains part of its equity in the former subsidiary but has lost control of the subsidiary of the foreign operation, it shall be treated as a disposal of all the equity of the foreign operation.

(IV) Classification criteria for current and non-current assets and liabilities

Assets that meet one of the following conditions are classified as current assets:

(1) The asset is expected to be realized, sold or consumed in the normal business cycle.

(2) Mainly for trading purpose.

(3) Expected to be realized within 12 months after the balance sheet date.

(4) Cash or cash equivalents, except for those to be exchanged or used to settle liabilities in at least 12 months after the reporting period.

The Company classifies all assets not meeting the above conditions as non-current.

Liabilities that meet one of the following conditions are classified as current liabilities:

(1) Expected to be settled in the normal business cycle.

(2) Mainly for trading purpose.

(3) Expected to be settled within 12 months after the reporting period.

(4) Those that do not have the right to defer settlement of the liability for at least twelve months after the reporting period.

The Company classifies all liabilities not meeting the above conditions as non-current.

(V) Cash equivalents

Cash equivalents refer to short-term and highly liquid investments that can be converted into a fixed amount of cash at any time with little risk of changes in value. Time deposits that meet the definition above and mature within three months from the date of acquisition and are held to meet short-term cash commitments in operations are classified as cash equivalents.

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(VI) Financial assets at fair value through profit or loss (FVTPL)

Financial assets that are not measured at amortized cost or at fair value through other comprehensive income.
The Company adopts transaction day accounting for financial assets measured at fair value through profit and loss in conformity with trading practices.
The Company measures their fair values at the time of initial recognition, and the relevant transaction costs are recognized in profit or loss; subsequently, they are measured at fair value, and the profits or losses are recognized in profit or loss.

(VII) Financial assets at FVTOCI

Refers to an irrevocable choice made at the time of original recognition to recognize the changes in the fair value of the equity instrument investment held not for trading in other comprehensive profit or loss.
The Company adopts the transaction day accounting for financial assets measured at fair value through other comprehensive income in conformity with trading practices.
The Company measures its fair value plus transaction costs at the time of original recognition, and is subsequently measured at fair value:

Changes in the fair value of equity instruments are recognized in other comprehensive income. At the time of derecognition, the cumulative gain or loss previously recognized in other comprehensive income shall not be reclassified to profit or loss but transferred to retained earnings. When the right to receive dividends is established, the economic benefits related to the dividends are very likely to inflow, and the dividend amount can be measured reliably, the Company recognizes dividend income in profit or loss.

(VIII) Financial assets at amortized cost

These refer to assets that simultaneously meet the following conditions:

(1) The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows.
(2) The contractual terms of the financial assets generate the cash flow on a specific date, which are solely for the payment of the principal and interest on the outstanding principal amount.

The Company adopts trade date accounting for financial assets measured at amortized cost that meet customary transaction practices.
The Company initially recognizes these assets at fair value plus transaction costs, and subsequently measures them using the effective interest method to amortize and recognize interest income over the circulation period, recognize impairment losses, and recognize gains or losses in profit or loss upon derecognition.
Due to the short holding period, the fixed deposits held by the Company that do not conform to cash equivalents have a little discount effect and are therefore measured by the investment amount.

(IX) Accounts receivable

Refer to the accounts for which the contract provides for the unconditional right to receive the amount of consideration obtained from the transfer of goods or services.
For short-term accounts receivable with unpaid interest, the impact of discounting is small, and the Company measures them at the original invoice amount.
The business model of the accounts receivable that the Company expects to sell is for the purpose.

(X) Impairment of financial assets

On each balance sheet date, the Company, with respect to financial assets measured at amortized cost and accounts receivable containing major financial components, considers all reasonable and supporting information (including forward-looking ones). Where the credit risk has not increased significantly since the original recognition, the loss allowance shall be measured at the 12-month expected credit loss amount; where the credit risk has increased significantly since the original recognition, the loss allowance shall be measured at the expected credit loss amount throughout the duration. For the accounts receivable that do not contain significant financial components, the allowance for loss is measured at the expected credit losses throughout the duration.

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(XI) Derecognition of financial assets

The Company will de-recognize financial assets when one of the following conditions is met:

Invalidation of the contractual right to receive cash flows from financial assets.
The contractual rights over the cash flows of financial assets are transferred, and almost all risks and rewards of ownership of the financial assets have been transferred.
The Company has transferred the contractual rights over the cash flows of financial assets, but has not retained control over the financial assets.

(XII) Inventory

Inventories are measured at the lower of cost or net realizable value, and the cost is determined in accordance with the weighted average method. The cost of finished goods and work-in-progress includes raw materials, direct labor, other direct costs, and production-related manufacturing expenses (allocated according to normal production capacity), but does not include borrowing costs. Where the lower cost and net realizable value, the itemized comparison method is adopted. Net realizable value is the balance from the estimated selling price in the ordinary course of business less the estimated cost of completion and the estimated costs required to complete the sale.

(XIII) Investment under equity method - Subsidiaries and affiliated enterprise

Subsidiaries are all entities (including structured 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 the ability to affect those returns through its power over the entity.
The unrealized profit or loss from the transactions between the Company and its subsidiaries has been eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Company.
The Company recognizes the share of profit or loss of the subsidiary after the acquisition as the current profit or loss, and recognizes the share of other comprehensive income after the acquisition of the subsidiary as other comprehensive income. If the share of losses recognized by the Company in a subsidiary equals or exceeds the equity in the said subsidiary, the Company continues to recognize losses in proportion to its shareholding ratio.
Affiliated companies are entities over which the Company has significant influence but no control. Generally, the Company holds more than 20% of their shares with voting rights directly or indirectly. The Company's investment in an affiliated company is accounted for under the equity method and is recognized at time of acquisition at cost.
The Company recognizes the share of profit or loss of the affiliated companies after the acquisition as the current profit or loss, and recognizes the share of other comprehensive income after the acquisition of the subsidiary as other comprehensive income. If the Company's share of losses on any affiliated company equals or exceeds its equity in the said affiliated company (including any other unsecured receivables), the Company will not recognize further losses, unless the Company incurs statutory obligations, constructive obligations, or payments made on behalf of them.
When there is an equity change in the non-profit and loss and other comprehensive income in the affiliated company with no impact on the shareholding ratio of the affiliated company, the Company will recognize all the equity changes as "capital reserve" according to the shareholding ratio.
The unrealized profits or losses arising from transactions between the Company and an affiliate have been written off proportionally to the equity the Company holds in the said affiliate. Unless evidence shows that assets transferred through the said transaction are impaired, unrealized losses are written off, too. Accounting policies of affiliated companies have been adjusted where necessary to ensure consistency with the policies adopted by the Company.
If the Company fails to subscribe or acquire new shares in proportion to the issuance of new shares, resulting in a change in the investment proportion but still significant influence on the affiliate, the increase or decrease in the change in the net value of equity shall be the adjustment of the "Capital Surplus" and "Equity-Method Investment." If the proportion of investment decreased as a result, except for the above adjustment, related to the decrease in ownership interest and has been recognized in the profit or loss of other

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comprehensive income before, and the profit or loss must be reclassified to profit and loss during the disposal of related assets or liabilities, if any, is reclassified to profit or loss proportionally.

When the Company disposes of an associate, if it loses its material influence on the associate, for all amounts recognized in other comprehensive income related to the associate, its accounting treatment will be the same as if the Company directly disposes of the relevant assets or liabilities. On the same basis, i.e. if the gain or loss previously recognized as other comprehensive income will be reclassified as profit or loss when the related assets or liabilities are disposed, losing material influence on the affiliates, the profit or loss is reclassified from equity to profit or loss. If it still has significant influence on the affiliated company, only the amount recognized previously in other comprehensive income shall be transferred out proportionally.
According to the Regulations Governing the Preparation of Financial Reports by Securities Issuers, the profits and losses and other comprehensive income of the current term in the Parent Company-only Financial Statement shall be identical to the amounts attributed to the owner of the parent company in the financial statements prepared on the basis of consolidation. The shareholders' equity as reported shall be identical to the equity attributable to the parent company in the financial statements prepared on the basis of consolidation.

(XIV) Property, plant, and equipment

Property, plant, and equipment are recorded at the acquisition cost.
Subsequent costs are included in the book value of assets or recognized as a separate asset only when the future economic benefits related to the project are likely to flow into the Company and the cost of the project can be measured reliably. The book value of replacements shall be de-recognized. All other maintenance expenses are recognized as income at the time of occurrence.
Property, plant, and equipment are subsequently measured at cost. Except for land, no depreciation is made, whereas depreciation is calculated using the straight-line method over the estimated useful years. If the components of property, plant and equipment are significant, they are separately depreciated.
The Company examines the residual value, useful lives and depreciation methods of each asset at the end of each fiscal year. If the residual value and useful lives are different from the estimates, or if there is a material change in the expected consumption pattern of future economic benefits of the asset, the effect shall be treated in accordance with the provisions of IAS 8 "Accounting Policies, Changes and Errors in Accounting Estimates" from the date of the occurrence of the changes.

The durability of each asset is as follows:

Houses and buildings	3 to 26 years
Machinery and equipment	1 to 6 years
Office equipment	6 years
Other equipment	1 to 6 years

(XV) Lease transactions with lessees - right-of-use assets/lease liabilities

Lease assets are recognized as right-of-use assets and lease liabilities on the date they are available for use by the Company. When the lease contract is a short-term lease or lease of a low-value target asset, the lease payment shall be recognized as expenses during the lease period using the straight-line method.
Lease liabilities are recognized at the present value of the lease payments that have not been paid at the beginning of the lease at the discounted current value of the Company's incremental borrowing rate. Lease payments include fixed payments, less any lease incentives receivable.

Subsequently, the interest method is adopted and measured by the after-amortization cost, and interest expenses are provided during the lease period. When the lease period or lease payment changes other than contract modification, the lease liabilities will be reassessed and the right-of-use assets will be re-measured.

The right-of-use assets are recognized at cost on the lease start date, and the cost includes the initially measured amount of the lease liabilities.

The subsequent measurement is based on the cost model, and the depreciation expense is recognized when the service life of the right-of-use assets expires or the lease term expires, whichever is earlier. When the lease liabilities are reassessed, the right-of-use assets will adjust any re-measurement of the lease liabilities.

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For the lease modification that reduces the scope of the lease, the lessee will reduce the book value of the right-of-use assets to reflect the partial or full termination of the lease, and recognize the difference between the re-measured amount of the leasehold and the lease liabilities in profit or loss. For all other lease modifications, the book value of the right-of-use asset shall be adjusted to correspond with the remeasured lease liability.

(XVI) Intangible assets

The royalty is recognized at the acquisition cost and amortized over the effective years of the contract.
Computer software is recognized at the cost of acquisition and amortized using the straight-line method over 1 to 10 years of estimated durability.

(XVII) Impairment of non-financial assets

On the Balance Sheet date, the Group estimates the recoverable value of assets with signs of impairment. When the recoverable value is less than the book value, the impairment loss is recognized. Recoverable amount is the higher of the fair value of an asset less the disposal cost or the use value, whichever is higher. When the impairment of assets recognized in the previous year does not exist or decrease, the impairment loss will be reversed. However, the increase in the book value of the assets due to the reversal of the impairment loss shall not exceed the book value of the asset without the impairment loss recognized less the amount of the depreciation or amortization of the asset.

(XVIII) Borrowings

Refers to short-term borrowings from banks. The Company measures its fair value less transaction costs at the time of initial recognition, and subsequently, for any difference between the price after deducting transaction costs and the redemption value, the effective interest method is used to recognize interest expenses during the outstanding period according to the amortization procedure in profit or loss.

(XIX) Accounts payable

Refers to liabilities arising from the purchase of raw materials, commodities, or labor services on credit and accounts payable arising from business and non-business reasons.
For short-term accounts payable with unpaid interest, the impact of discounting is small, and the Company measures them at the original invoice amount.

(XX) Financial liabilities measured at fair value through profit or loss

Financial liabilities held for trading with the main purpose of repurchasing in the near future and derivatives other than those designated as hedging instruments according to hedge accounting.
The Company measures their fair values at the time of initial recognition, and the relevant transaction costs are recognized in profit or loss; subsequently, they are measured at fair value, and the profits or losses are recognized in profit or loss.

(XXI) Derecognition of financial liabilities

The Company will derecognize financial liabilities when the contractual obligation is fulfilled, canceled or expired.

(XXII) Non-hedging derivative instruments

Non-hedging derivatives are measured at the fair value on the contract signing date at the time of original recognition, and recognized as financial assets or liabilities measured at fair value through income; subsequently, they are measured at fair value, and the profit or loss is recognized in profit or loss.

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(XXIII) Employee benefit

Short-term employee benefits

Short-term employee benefits are measured by the non-discounted amount expected to be paid, and stated as expenses when the related services are provided.

Pension fund

(1) Determined contribution plan

For the defined contribution plan, the amount to be allocated to the pension fund is recognized as the pension cost in the current period on an accrual basis. Prepaid contribution is recognized as assets to the extent of refundable in cash or reduced in future payments.

(2) Defined benefit plan

A. The net obligation under the defined benefit plan is calculated by discounting the future benefit amount earned by the employee in the current period or in the past, and the fair value of the plan asset is deducted from the present value of the defined benefit obligation on the balance sheet date. An actuary using the Projected Unit Credit Method estimates defined benefit obligations each year. The discount rate is the market yield rate of the government bonds (at the balance sheet date) with the same currency and duration as the defined benefit plan on the balance sheet date.

B. The re-measurement generated from the defined benefit plan shall be stated as other comprehensive income in the current period and presented in the retained earnings.

Termination benefits

Termination benefits are the benefits provided upon termination of employment before a normal retirement date or provided by employees upon acceptance of an offer of benefits in exchange for the termination of employment. The Company will not state the benefits as expenses until the offer of benefits cannot be withdrawn or the related reorganization cost is stated, whichever earlier. It is not expected that benefits in full 12 months after balance sheet date will be discounted.

Remuneration to employees and directors

The remuneration of employees and directors is recognized as expenses and liabilities when they have legal or constructive obligations and the value can be reasonably estimated. Subsequently, if the actual distributed amount resolved is different from the estimate, the difference shall be treated as a change in accounting estimate.

(XXIV) Income tax

Income tax expenses include current and deferred income tax. Income tax is recognized in profit or loss, except for the income tax related to the items recognized in other comprehensive profit or loss or recognized directly in equity and recognized in other comprehensive profit or loss or directly recognized in equity, respectively.
The current income tax is calculated according to the tax rate that has been enacted or substantially enacted in the countries where the Company is operating and generating taxable income on the balance sheet date. The management regularly evaluates the status of income tax filings for applicable income tax laws and regulations, and estimates income tax liabilities based on the taxes expected to be paid to the tax authorities, if applicable. The income tax for undistributed earnings that is levied in accordance with the Income Tax Act is to be recognized in undistributed earnings income tax expenses in accordance with the actual distribution of earnings in the year following the year in which the earnings are generated, after the proposal for distribution of earnings is passed at the shareholders' meeting.
The balance sheet method is adopted for deferred income tax, and the temporary difference generated between the tax bases of assets and liabilities and the book value in the parent company only balance sheet is recognized. If the deferred income tax arises from the initial recognition of assets or liabilities in a transaction (excluding business merger), and the accounting profit or taxable income (taxable loss) is not affected by the transaction, and does not generate equivalent taxable amount and deductible temporary differences, the deferred income tax shall not be recognized. Taxable temporary difference generated from investment in subsidiaries and affiliates, of which the time of reverse is controllable by the Company and which is not likely to be reversed in the foreseeable future, shall not be recognized. Deferred income tax is subject to the tax rate (and tax law) that has been enacted or substantively enacted

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on the balance sheet date and is expected to apply when the relevant deferred income tax assets are realized or the deferred income tax liabilities are settled.

Deferred income tax assets shall be recognized, insofar as temporary difference is very likely to offset against future taxable income, and the unrecognized and recognized deferred income tax assets shall be re-evaluated on each balance sheet date.
Current income tax assets and liabilities are offset against each other when the Company has the legally enforceable right to offset the recognized amounts and the Company intends to settle on a net basis or realize assets and settle liabilities simultaneously. When there is a legally enforceable right to offset current income tax assets against current income tax liabilities, and the deferred income tax assets and liabilities are levied by the same tax authority for the same tax subject, or different tax subjects resulted, but each tax subject intends for the deferred income tax assets and liabilities to offset against each other when they are settled on a net basis or the assets and liabilities are realized at the same time.

(XXV) Share capital

Common shares are classified as equity. The incremental cost directly attributable to the issuance of new shares or stock warrants, net of income tax, is stated as a deduction in equity.

(XXVI) Distribution of dividends

Dividends distributed to the Company's shareholders are recognized in the financial statements when the Company's shareholders' meeting decides to distribute such dividends. Cash dividends are recognized as liabilities, and stock dividends are recognized as stock dividends to be distributed and recognized as common stock on the base date of issuance of new shares.

(XXVII) Recognition of income

Sales of goods

The Company manufactures and sells LED and other related products. The sales revenue is recognized when the control of the product is transferred to the customer, that is, when the product is delivered to the customer and the Company has no outstanding performance obligation that may affect the customer in accepting the product. When the product is delivered to the designated location, the risk of obsolescence and loss has been transferred to the customer, and the customer accepts the product according to the sales contract, or there is objective evidence to prove that all acceptance criteria have been met.
Accounts receivable are recognized when the goods are delivered to the customer. Since then, the Company has unconditional rights to the contract price, and the consideration can be collected from the customer after a certain period of time.

(XXVIII) Government grants

Government grants are recognized at fair value when it is reasonably certain that the enterprise will comply with the conditions attached to the government grant and will receive the grant. If the government subsidies, in nature, are intended to compensate the expenses incurred by the Company, the government subsidies shall be recognized as current profit or loss on a systematic basis during the period when the relevant expenses are incurred.

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V. Major sources of significant accounting judgments, estimates, and assumptions uncertainty

When the Company prepared this parent company only financial report, the management has used its judgment to determine the adopted accounting policies, and made accounting estimates and assumptions based on the reasonable expectation of future events based on the situation on the balance sheet date. The significant accounting estimates and assumptions made may differ from the actual results. Historical experience and other factors will be considered for continuous evaluation and adjustment. These estimates and assumptions contain risks that may result in significant adjustments to the book values of assets and liabilities in the next fiscal year. Please see below for a detailed description of the uncertainty of significant accounting judgments, estimates, and assumptions:

(I) Important judgments adopted for accounting policies

None.

(II) Important accounting estimates and assumptions

Valuation of inventories

Because inventories must be priced at the lower of the cost and net realizable value, the Company must use judgment and estimation to determine the net realizable value of inventories on the balance sheet date. Due to the large number of competitors in mainland China, commodity prices are susceptible to fluctuations or product sales are not as good as expected. The Company assesses the amount of inventory on the balance sheet date due to normal wear and tear, obsolescence, or no market sales value, and writes off the cost of the inventories against it to net realizable value. This inventory evaluation is mainly based on the estimated product demand in a specific period in the future, so significant changes may occur.

On December 31, 2025, the book value of the Company's inventories amounted to NT$170,846.

VI. Description of important accounting items

(I) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Petty cash allowance	$ 20	$ 20
Demand deposits	67,960	247,839
Time deposit	800,000	725,000
	$ 867,980	$ 972,859

The financial institutions that the Company does business with have good credit quality, and the Company does business with multiple financial institutions to diversify the credit risk, and the possibility of expected default is very low.
The Company does not put cash and cash equivalents up for pledge.

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(II) Financial assets and liabilities at FVTPL

Assets	December 31, 2025	December 31, 2024
Current items:
Financial assets mandatorily measured at fair value through profit or loss
Derivatives
-Forward Exchange Contract	$ 20	$ 770
Non-current items:
Financial assets mandatorily measured at fair value through profit or loss
Non-listed, OTC, or emerging stocks	$ 40,619	$ 40,619
Adjustment of evaluation	( 40,619)	( 40,619)
	$ -	$ -
Liabilities items	December 31, 2025	December 31, 2024
Current items:
Financial liabilities held for trading
Derivatives
-Forward Exchange Contract	($ 3,049)	($ 4,709)

The details of financial assets and liabilities measured at fair value through profit and loss recognized in profit and loss are as follows:

	2025	2024
Financial assets mandatorily measured at fair value through profit or loss and available-for-sale financial liabilities
Derivatives	($ 4,211)	($ 18,146)

The transaction and contract information of derivative financial assets and liabilities not subject to hedging accounting are explained as follows:

Derivative financial assets (liabilities)	December 31, 2025
	Contract amount (Nominal principal) ($ in Thousand)		Duration of the contract
Current items:
Forward Exchange Contract
Sell USD and buy NTD	US Dollars	2,000	2025/10/17~2026/02/25
Sell USD and buy JPY	Japanese Yen	139,170	2025/10/07~2026/03/06
Sell CNY to buy NTD	CNY	4,500	2025/09/24~2026/03/25
Sell CNY and buy USD	CNY	6,200	2025/10/16~2026/03/13

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Derivative financial assets (liabilities)	December 31, 2024
	Contract amount (Nominal principal) ($ in Thousand)		Duration of the contract
Current items:
Forward Exchange Contract
Sell USD and buy NTD	US Dollars	6,000	2024/10/07~2025/03/21
Sell USD and buy JPY	Japanese Yen	78,700	2024/10/14~2025/03/07
Sell CNY to buy NTD	CNY	8,200	2024/09/20~2025/04/25
Sell CNY and buy USD	CNY	7,600	2024/09/04~2025/03/14

The foreign exchange forward transactions entered into by the Company are pre-sale forward transactions to avoid the exchange rate risk of export proceeds; the foreign exchange swaps contract is for currency exchange at a fixed exchange rate, and hedge accounting is not applied to meet the need for capital dispatch.

For information on the credit risk of financial assets and liabilities at fair value through profit and loss, please refer to Note XII (II).

(III) Financial assets at amortized cost

Items	December 31, 2025	December 31, 2024
Current items:
Time deposits with original maturity date of more than three months	$ -	$ 130,000

Details of financial assets measured at amortized cost recognized in profit or loss are as follows:

	2025	2024
Interest income	$ -	$ 103

Without considering collateral held or other credit enhancements, the maximum exposure to credit risk for financial assets measured at amortized cost as of December 31, 2025 and 2024 was $0 and $130,000 respectively, representing the carrying amount of the financial assets held by the Company.
The Company has not pledged any financial assets measured at amortized cost as collateral.
For related credit risk information on financial assets measured at amortized cost, please refer to Note XII(II). The Company's counterparties for time deposit investments are financial institutions with good credit quality, and the probability of default is very low.

(IV) Accounts receivable

	December 31, 2025	December 31, 2024
Accounts receivable	$ 295,277	$ 359,804
Less: Allowance for losses	( 43,505)	( 3,238)
	$ 251,772	$ 356,566
Accounts receivable - related parties	$ 121,999	$ 113,085

Aging analysis of accounts receivable (including related parties) are as follows:

	December 31, 2025	December 31, 2024
Not overdue	$ 352,121	$ 449,086
Within 30 days of overdue	19,345	16,013
Past due 31-60 days	667	7,790
Past due 61-90 days	3,368	-
Overdue by more than 91 days	41,775	-
	$ 417,276	$ 472,889

The above is an aging analysis based on the number of overdue days.

The balances of notes and accounts receivable (including related parties) as of December 31, 2025 and 2024 were all generated from contracts with customers. Additionally, as of January 1, 2024, the balance of receivables from contracts with customers (including related parties) and the allowance for losses were NT$594,418 and NT$6,210, respectively.
Without considering the collateral or other credit-enhancing collaterals held, the measure that best represents the exposure to the Company's accounts receivable (including related parties) with the highest credit risk as of December 31, 2025 and 2024, the risk exposure amounted to NT$373,771 and NT$469,651 respectively.
As of December 31, 2025 and 2024, the Company's accounts receivable transferred to collection accounts (presented under other non-current assets) amounted to NT$482,227 and NT$482,587, respectively, for which allowance for losses has been fully provided. For the years 2025 and 2024, the reversal of allowance for losses on collection accounts was NT$360 and NT$549, respectively, and the amount written off due to uncollectibility was NT$0 and (NT$442), respectively.
In order to increase the credit limit of some customers, the Company obtained guarantee letters of credit and guarantee deposits from some customers.
For credit risk information of accounts receivable (including related parties), please see Note XII(II).

(V) Transfer of financial assets

The Company signed an accounts receivable transfer contract with Taipei Fubon Bank on November 3, 2020. According to the contract, the Company does not have to bear the risk of uncollectible accounts receivable, but only needs to bear the losses resulting from commercial disputes. The Company has not had any continuing involvement in the transferred accounts receivable. Therefore, the Company de-recognized the selling accounts receivable and the relevant information not due yet is as follows:

Unit: NTD thousand

December 31, 2025

Target for sale	Amount of selling accounts receivables	Derecognition amount	Amount paid in advance	Permissible advance payment	The interest rate range of the prepaid amount
Taipei Fubon Bank	USD 1,767	USD 1,767	USD 1,453	USD-	4.55%

December 31, 2024

Target for sale	Amount of selling accounts receivables	Derecognition amount	Amount paid in advance	Permissible advance payment	The interest rate range of the prepaid amount
Taipei Fubon Bank	USD 3,071	USD 3,071	USD-	USD-	0.00%

As of December 31, 2025 and 2024, the selling accounts receivable assigned by the Company included retentions of NT$9,859 and NT$100,690, respectively, which had been transferred to other receivables.

(VI) Inventory

	December 31, 2025
	Cost	Allowance for devaluation losses	Book value
Raw materials	$ 86,482	($ 20,150)	$ 66,332
Work-in-progress	62,282	( 20,225)	42,057
Finished goods	81,898	( 19,441)	62,457
	$ 230,662	($ 59,816)	$ 170,846
	December 31, 2024
	Cost	Allowance for devaluation losses	Book value
Raw materials	$ 55,902	($ 19,280)	$ 36,622
Work-in-progress	87,738	( 20,230)	67,508
Finished goods	67,120	( 12,212)	54,908
Merchandise inventory	2	( 2)	-
	$ 210,762	($ 51,724)	$ 159,038

Inventory cost recognized as expenses and losses by the Company in the current period:

	2025	2024
Cost of sold inventory	$ 1,299,949	$ 1,483,557
Loss of idle capacity	45,409	38,121
Inventory devaluation losses	11,868	1,060
Income from sale of scraps	( 8,943)	( 11,617)
	$ 1,348,283	$ 1,511,121

(VII) Financial assets at FVTOCI

	December 31, 2025	December 31, 2024
Non-current items:
Equity instruments
Listed company stock	$ 184,583	$ 184,583
Emerging stocks	20,032	20,032
	204,615	204,615
Adjustment of evaluation	102,670	178,074
	$ 307,285	$ 382,689

The Company chose to classify the equity instrument investment that is a strategic investment into financial assets measured at fair value through other comprehensive income. The fair value of these investments as of December 31, 2025 and 2024 were NT$307,285 and NT$382,689, respectively.
The details of financial assets measured at fair value through other comprehensive income recognized in profit or loss and comprehensive income are as follows:

	2025	2024
Equity instruments at FVTOCI
Changes in fair value recognized in other comprehensive income	($ 75,404)	$ 163,684
Dividend income recognized in profit or loss held at the end of the period	$ 2,440	$ 1,219

For information on the credit risk of financial assets at fair value through other comprehensive income, please refer to Note XII(II).

(VIII) Investment under equity method

Statement of changes and details are as follows:

	2025		2024
January 1	$	105,442	$ 158,598
Share of investment income accounted for using equity method	(	22,680)	( 57,307)
Unrealized gains on sales		395	1,199
Other changes in equity		80	2,952
December 31	$	83,237	$ 105,442
	December 31, 2025		December 31, 2024
Subsidiaries:
Advanced Optoelectronic Technology Holding Ltd. (Advanced)	$	28,591	$ 46,668
Asphetek Solution Inc. (Asphetek)		54,646	58,774
Affiliated companies:
ELUX, Inc. (ELUX)		24,953	24,953
Accumulated impairment	(	24,953)	( 24,953)
	$	83,237	$ 105,442

Due to the poor operation of ELUX, Inc., the value of investment had indeed been impaired, so the Company recognized impairment loss of $24,953 in 2019.

The share of profit or loss on the subsidiaries and affiliated companies under the equity method:

	2025		2024
Subsidiaries:
Advanced	($)	17,386	($)	19,703
Asphetek Solution	(($)	5,294	(($)	37,604
	($)	22,680	($)	57,307

Subsidiaries

For information on the subsidiaries of the Company, refer to Note 4,(3) of the Company's consolidated financial statements 2025.

(IX) Property, plant, and equipment

	Land	Houses and buildings	Machinery and equipment	Office equipment	Other equipment	Unfinished construction and equipment pending inspection	Total
January 1
Cost	$ 160,357	$ 802,217	$ 1,719,887	$ 71,736	$ 220,964	$ 37,206	$ 3,012,367
Accumulated depreciation and impairment	-	( 519,629)	( 1,590,627)	( 67,648)	( 213,198)	-	( 2,391,102)
	$ 160,357	$ 282,588	$ 129,260	$ 4,088	$ 7,766	$ 37,206	$ 621,265
January 1	$ 160,357	$ 282,588	$ 129,260	$ 4,088	$ 7,766	$ 37,206	$ 621,265
Increase	-	-	-	-	-	104,262	104,262
Reclassification	-	6,537	79,224	10,594	18,954	( 115,309)	-
Depreciation expenses	-	( 51,056)	( 59,885)	( 2,655)	( 13,438)	-	( 127,034)
December 31	$ 160,357	$ 238,069	$ 148,599	$ 12,027	$ 13,282	$ 26,159	$ 598,493
December 31
Cost	$ 160,357	$ 808,754	$ 1,740,276	$ 80,170	$ 222,648	$ 26,159	$ 3,038,364
Accumulated depreciation and impairment	-	( 570,685)	( 1,591,677)	( 68,143)	( 209,366)	-	( 2,439,871)
	$ 160,357	$ 238,069	$ 148,599	$ 12,027	$ 13,282	$ 26,159	$ 598,493

	2024
	Land	Houses and buildings	Machinery and equipment	Office equipment	Other equipment	Unfinished construction and equipment pending inspection	Total
January 1
Cost	$160,357	$798,634	$1,915,661	$71,922	$256,404	$8,637	$3,211,615
Accumulated depreciation and impairment	-	(470,106)	(1,740,350)	(63,356)	(249,598)	-	(2,523,410)
	$160,357	$328,528	$175,311	$8,566	$6,806	$8,637	$688,205
January 1	$160,357	$328,528	$175,311	$8,566	$6,806	$8,637	$688,205
Increase	-	-	-	-	-	64,633	64,633
Disposal	-	-	(2,434)	-	-	-	(2,434)
Reclassification	-	5,006	20,934	-	10,124	(36,064)	-
Depreciation expenses	-	(50,946)	(64,551)	(4,478)	(9,164)	-	(129,139)
December 31	$160,357	$282,588	$129,260	$4,088	$7,766	$37,206	$621,265
December 31
Cost	$160,357	$802,217	$1,719,887	$71,736	$220,964	$37,206	$3,012,367
Accumulated depreciation and impairment	-	(519,629)	(1,590,627)	(67,648)	(213,198)	-	(2,391,102)
	$160,357	$282,588	$129,260	$4,088	$7,766	$37,206	$621,265

(X) Lease transaction - Lessee

The lease terms for the land assets leased by the Company typically range from 1 to 5 years. The lease contracts are negotiated individually and contain various terms and conditions. There are no other restrictions except that the leased assets may not be used as a loan guarantee.
The machinery and equipment leased by the Company with the lease period not exceeding 12 months and the target assets leased of low value are machinery and equipment and are not included in the right-of-use assets.
Information on the carrying amount and recognized depreciation expense of right-of-use assets is as follows:

	December 31, 2024
	Cost	Accumulated depreciation	Book value
Land	$ 3,160	($ 2,809)	$ 351
	2025		2024
	Depreciation expenses		Depreciation expenses
Land	$ 351	$ 1,054

The information on profit and loss items related to lease contracts is as follows:

	2025	2024
Items affecting current profit and loss
Interest expense of lease liabilities	$ 2	$ 22
Expenses of short-term lease contracts	349	403
Expenses of low-value asset lease	367	372

The total cash outflow from the leases of the Company in 2025 and 2024 amounted to NT$1,080 and NT$1,867, respectively.

~29~

(XI) Intangible assets

	2025
	Royalties	Computer software	Total
January 1
Cost	$ 147,672	$ 71,157	$ 218,829
Accumulated amortization	( 73,836)	( 69,360)	( 143,196)
	$ 73,836	$ 1,797	$ 75,633
January 1	$ 73,836	$ 1,797	$ 75,633
Increase	-	6,660	6,660
Amortized expenses	( 36,918)	( 1,533)	( 38,451)
December 31	$ 36,918	$ 6,924	$ 43,842
December 31
Cost	$ 147,672	$ 77,817	$ 225,489
Accumulated amortization	( 110,754)	( 70,893)	( 181,647)
	$ 36,918	$ 6,924	$ 43,842
	2024
	Royalties	Computer software	Total
January 1
Cost	$ 147,672	$ 71,157	$ 218,829
Accumulated amortization	( 36,918)	( 67,118)	( 104,036)
	$ 110,754	$ 4,039	$ 114,793
January 1	$ 110,754	$ 4,039	$ 114,793
Amortized expenses	( 36,918)	( 2,242)	( 39,160)
December 31	$ 73,836	$ 1,797	$ 75,633
December 31
Cost	$ 147,672	$ 71,157	$ 218,829
Accumulated amortization	( 73,836)	( 69,360)	( 143,196)
	$ 73,836	$ 1,797	$ 75,633

The details of amortization of intangible assets are as follows:

	2025	2024
Operating cost	$ 398	$ 495
Sales and marketing expenses	36,918	36,918
Administrative expenses	1,135	1,609
R&D expenses	-	138
	$ 38,451	$ 39,160

(XII) Other payables

	December 31, 2025	December 31, 2024
Salary and bonus payable	$ 94,655	$ 100,940
Premiums payable	21,438	49,088
Payables for equipment	16,785	29,249
Labor and health insurance and pension payable	13,541	15,842
Payable commission	6,163	11,872
Payable outsourcing fees	3,390	19,340
Others	52,643	38,861
	$ 208,615	$ 265,192

(XIII) Long-term notes and payables

	December 31, 2025	December 31, 2024
Premiums payable	$ 12,572	$ 49,178
Less: Due within one year	( 12,572)	( 36,064)
	$ -	$ 13,114

(XIV) Pension fund

The Company has established the retirement policy with defined welfare in accordance with the "Labor Standards Act", which is applicable to the years of service of all regular employees before the "Labor Pension Act" went into effect on July 1, 2005; and the years of service of employees who elect to continue applying the Labor Standards Act after the implementation of the "Labor Pension Act." If an employee is eligible for retirement, the pension payment is based on the service years and the average salary of 6 months prior to retirement. Two base figures are given for each full year of service within 15 years, and one base figure will be granted after completing one year, but the cumulative maximum shall be limited to 45 base figures. The Company appropriates 2% of the total salary on a monthly basis to the pension fund, which is deposited with the Bank of Taiwan in the name of the Labor Pension Fund Supervisory Committee. In addition, the Company estimates the balance of the aforementioned special accounts for labor pension before the end of each year. If the balance is not sufficient to pay the amount of pension benefits to employees eligible for retirement in the following year, the Company will make a lump-sum appropriation for the difference by the end of March of the following year.
(1) Since July 1, 2005, the Company has established the regulation for defined contribution plan in accordance with the "Labor Pension Act", which is applicable to employees of Taiwan nationality. For employees choosing the labor pension system under the "Labor Pension Act", the Company contributes 6% of the monthly salary to the personal accounts of the employees with the Labor Insurance Bureau. The pension is paid according to the individual pensions of the employees. The amount of accumulated income and accumulated income is withdrawn as monthly pension or lump sum.

(2) In 2025 and 2024, the Company recognized pension cost amounting to NT$19,741 and NT$22,342, respectively, in accordance with the above regulations governing the recognition of pension fund.

(XV) Share capital

As of December 31, 2025, the Company's rated capital was NT$2,400,000 and the paid-in capital was NT$1,445,480 with a par value of NT$10 per share. All issues paid for the Company's shares have been received.
The outstanding common stock (in thousands) at the beginning and end of the term is adjusted as follows:

January 1 (i.e. December 31)	2025	2024
	144,548	144,548

-32-

(XVI) Capital Surplus

Pursuant to the Company Act, the premium from the issuance of shares above par value and the additional paid-in capital from the receipt of gifts may be used to make up for the losses. When the Company has no accumulated losses, new shares or cash are issued to shareholders in proportion to their existing shares. In addition, the Securities and Exchange Act requires that the amount of capital surplus to be capitalized mentioned above shall not exceed 10% of the paid-in capital each year. The company shall not use the capital reserve to make good its capital loss, unless the surplus reserve is insufficient to make good such loss.

(XVII) Retained earnings

According to the Company's Articles of Incorporation, if the Company has earnings concluded each year, after paying taxes, the losses from previous years shall first be offset and then 10% of the remaining earnings shall be appropriated as legal reserves. The Company also makes provision or reversal of special reserve, if any, along with the accumulated undistributed earnings of the previous year in accordance with Article 41 of the Securities and Exchange Act.
The Company determines its future development and growth stage; establishes a sound financial structure; and protects the rights and interests of shareholders. The dividend distribution policy adopts cash and share method. The share dividend accounts for not more than half of all dividends in principle. The above ratio is adjusted according to the circumstances.
The legal reserve cannot be used for purposes other than to cover the accumulated losses of the company and for issuance of new shares or cash to shareholders in proportion of their original shareholding percentage, provided that the balance of the reserve exceeds 25% of the Company's paid-in capital.
When the Company distributes earnings, it is required by laws and regulations to set aside a special reserve for the debit balance of other equity items on the balance sheet date of the current year before distribution. When the debit balance of other equity items is subsequently reversed, the amount of reversal may be included in the earnings available for distribution.
The Company passed the motion for offsetting deficits in 2023 at the shareholders' meeting on June 27, 2024. NT$99,031 was made up for the losses with legal reserve.
On June 19, 2025, the Company's shareholders' meeting resolved to offset the loss for 2024. NT$69,665 from the statutory retained earnings reserve and $65,749 from the capital reserve were used to offset the loss.

(XVIII) Operating revenue

	2025	2024
Revenue from customer contracts	$ 1,381,680	$ 1,842,190

Breakdown of revenue from contracts with customers

The income of the Company comes from the transfer of goods at a certain point in time. The income can be subdivided into the following geographical regions:

	2025	2024
Revenue from contracts with external customers
China	$ 1,085,880	$ 1,354,490
Taiwan	104,791	73,601
Vietnam	64,292	149,269
Hong Kong	62,354	97,293
South Korea	36,259	9,081
Turkey	19,382	64,040
USA	4,612	63,276
Others	4,110	31,140
	$ 1,381,680	$ 1,842,190

Contract liabilities

(1) The contractual liabilities related to the contractual income recognized by the Company are as follows:

	December 31, 2025	December 31, 2024	January 1, 2024
Contract liabilities:
Sales contract	$ 776	$ 5,160	$ -

(2) Contract liabilities at the beginning of the period recognized as revenue during the period:

	2025	2024
Balance contract liabilities at the beginning of the period recognized as revenue during the period Sales contract	$ 5,140	$ -

(XIX) Other income

	2025	2024
Rent income	$ 688	$ 1,525
Dividend income	2,440	1,219
Other income	3,498	12,543
	$ 6,626	$ 15,287

(XX) Other gains and losses

	2025	2024
Gain on foreign currency exchange	$ 5,364	$ 21,610
Gains from the disposal of property, plant, and equipment	43	645
Gains on disposal of investment accounted for using equity method	-	91
Losses on financial assets and liabilities at FVTPL	( 4,211)	( 18,146)
	$ 1,196	$ 4,200

(XXI) Financial cost

	2025	2024
Interest expense:
Borrowings from banks	$ 129	$ 66
Lease liabilities	2	22
Others	738	3,360
	$ 869	$ 3,448

(XXII)

Employee benefits, depreciation and amortization expenses

	2025
	Attributable to operating cost	Attributable to operating expenses	Total
Employee benefit expenses
Salary expenses	$ 285,450	$ 135,773	$ 421,223
Labor and national health insurance expenses	34,510	12,983	47,493
Pension expense	12,727	7,014	19,741
Remuneration to Directors	-	1,932	1,932
Other employee benefit expenses	30,641	7,835	38,476
Depreciation expenses	91,523	35,862	127,385
Amortized expenses	398	38,053	38,451
	2024
	Attributable to operating cost	Attributable to operating expenses	Total
Employee benefit expenses
Salary expenses	$ 309,407	$ 164,314	$ 473,721
Labor and national health insurance expenses	33,894	15,295	49,189
Pension expense	13,849	8,493	22,342
Remuneration to Directors	-	1,895	1,895
Other employee benefit expenses	30,411	9,137	39,548
Depreciation expenses	91,904	38,289	130,193
Amortized expenses	495	38,665	39,160

The Company had 642 and 701 employees in 2025 and 2024, respectively, including 6 and 6 directors who did not serve as employees concurrently, respectively.
The Company's shares are listed on the Taiwan Stock Exchange. Therefore, the following information is added:

(1) The average employee benefit expenses in 2025 and 2024 were NT$828 and NT$841, respectively.
(2) The average employee salary expenses in 2025 and 2024 were NT$662 and NT$681, respectively.
(3) The average employee salary expense adjustment was 3%.
(4) The Company has already appointed an Audit Committee and therefore it is not applicable on supervisors, and therefore there is no need to disclose the information about remuneration to supervisors.
(5) The salary and remuneration policy of the Company is stated as follows:

A. The remuneration to directors is determined in accordance with the Company's Articles of Incorporation approved by the shareholders' meeting. The Board of Directors is authorized to determine the remuneration in accordance with the director's participation in the Company's operations and the value of contribution, and by taking into consideration the general standards in the industry.
B. Remuneration to managers is determined based on the general level of payment in the industry, individual performance, the Company's operating performance, and the rationality of its future operation and development.
C. Employees' salaries are approved and classified in accordance with the Company's "Personnel Selection and Appointment Regulations and Salary Management Regulations" and are based on employees' educational backgrounds, professional experiences, and job functions. After onboard, adjustments to the salary is made with reference to socioeconomic indicators, industry practice on salary adjustments, company performance and individual performance.

According to the Company's Articles of Incorporation, if the Company makes a profit at the end of the year, no less than 5% of the profit shall be allocated as the remuneration to employees. No less than 25% among this amount shall be allocated as the remuneration to entry-level employees and no more than 0.1% as the remuneration to directors. When the Company has accumulated losses, it shall set aside an amount to cover the losses first.

The Company incurred a net loss after tax for 2025 and 2024, therefore, no provision was made for employee and director compensation.
The Company's saw a net loss after tax for 2024, so the Board of Directors resolved not to distribute employees' and directors' remuneration, which is consistent with the amount recognized in the 2024 financial statements.

Information on the employees' and directors' remuneration approved by the Company's Board of Directors is available on the Market Observation Post System.

(XXIII) Income tax

Income tax expenses

Components of income tax expense:

	2025	2024
Income tax for the current period:
Underestimated (over) estimated amount of income tax in previous years	$ 10	($ 21)
Deferred income tax:
Original occurrence and reversal of temporary difference	( 11,140)	226
Income tax benefit (expense)	($ 11,130)	$ 205

Relationship between income tax expenses and accounting profit:

	2025	2024
Income tax calculated at statutory rate for net loss	($ 78,907)	($ 27,042)
Income tax effect of items adjusted in accordance with the tax law	18,005	15,003
Changes in realizable assessment of deferred income tax assets	49,762	12,265
Underestimated (over) estimated amount of income tax in previous years	10	( 21)
Income tax benefit (expense)	($ 11,130)	$ 205

The amounts of deferred income tax assets or liabilities arising from the temporary difference and taxation loss are as follows:

	2025
	January 1	Recognized in profit or loss	Recognized in other comprehensive income	December 31
- Deferred income tax assets:
Temporary difference:
Unrealized gains on sales	$ 1	($ 1)	$ -	$ -
Inventory devaluation losses	10,345	1,618	-	11,963
Allowance for loss beyond threshold	2,683	7,359	-	10,042
Cost of goods sold to be replaced	45	8	-	53
Valuation loss on unrealized financial assets and liabilities	788	( 182)	-	606
Impairment of investments accounted for using the equity method	4,990	-	-	4,990
Impairment of non-financial assets	10,322	( 269)	-	10,053
Bonus payable for unused leave of absence	4,563	( 262)	-	4,301
Tax losses	41,555	3,050	-	44,605
	75,292	11,321	-	86,613
- Deferred income tax liabilities:
Unrealized loss on sales	-	( 78)	-	( 78)
Unrealized exchange gain	( 418)	( 718)	-	( 1,136)
Premiums payable	( 5,538)	615	-	( 4,923)
	( 5,956)	( 181)	-	( 6,137)
	$ 69,336	$ 11,140	$ -	$ 80,476

~37~

	2024
	January 1	Recognized in profit or loss	Recognized in other comprehensive income	December 31
- Deferred income tax assets:
Temporary difference:
Unrealized gains on sales	$ 240	($ 239)	$ -	$ 1
Inventory devaluation losses	10,410	( 65)	-	10,345
Allowance for loss beyond threshold	2,356	327	-	2,683
Cost of goods sold to be replaced	26	19	-	45
Unrealized exchange losses	1,264	( 1,264)	-	-
Valuation loss on unrealized financial assets and liabilities	-	788	-	788
Income from government subsidies	235	( 235)	-	-
Impairment of investments accounted for using the equity method	4,990	-	-	4,990
Impairment of non-financial assets	12,229	( 1,907)	-	10,322
Bonus payable for unused leave of absence	3,587	976	-	4,563
Tax losses	41,280	275	-	41,555
	76,617	( 1,325)	-	75,292
- Deferred income tax liabilities:
Unrealized exchange gain	-	( 418)	-	( 418)
Unrealized gains on valuation of financial assets and liabilities	( 902)	902	-	-
Premiums payable	( 6,153)	615	-	( 5,538)
	( 7,055)	1,099	-	( 5,956)
	$ 69,562	($ 226)	$ -	$ 69,336

The effective term of the Company's unused taxation losses and the relevant amount of unrecognized deferred income tax assets are as follows:

December 31, 2025
Year of occurrence	Amount declared/ authorized	Amount yet to be offset	Unrecognized amount of deferred income tax assets	Last year of credit
2018	$ 337,523	$ 222,996	$ 222,996	2028
2019	205,350	205,350	205,350	2029
2020	161,644	161,644	161,644	2030
2022	149,205	149,205	149,205	2032
2023	83,617	83,617	83,617	2033
2024	84,455	84,455	84,455	2034
2025	331,746	331,746	108,724	2035
	$ 1,353,540	$ 1,239,013	$ 1,015,991

December 31, 2024

Year of occurrence	Amount declared/ authorized	Amount yet to be offset	Unrecognized amount of deferred income tax assets	Last year of credit
2018	$ 337,523	$ 222,996	$ 222,996	2028
2019	205,350	205,350	205,350	2029
2020	161,644	161,644	161,644	2030
2022	149,205	149,205	105,598	2032
2023	83,617	83,617	-	2033
2024	80,549	80,549	-	2034
	$ 1,017,888	$ 903,361	$ 695,588

Deductible temporary differences of unrecognized deferred income tax assets:

	December 31, 2025	December 31, 2024
Deductible temporary difference	$ 357,369	$ 288,825

The tax collection authority has approved the Company's income tax for profit-seeking businesses up to 2023.

(XXIV) Loss per share

	Amount after tax	2025 Weighted average outstanding shares (thousand shares)	Loss per share (NT$)
Basic loss per share
Current net loss	($ 383,404)	144,548	($ 2.65)
	Amount after tax	2024 Weighted average outstanding shares (thousand shares)	Loss per share (NT$)
Basic loss per share
Current net loss	($ 135,414)	144,548	($ 0.94)

(XXV) Supplementary information on cash flow

Investment activities with partial cash payment:

	2025		2024
Acquisition of property, plant and equipment	$	104,262	$ 64,633
Add: Payables for equipment, beginning		29,249	18,097
Less: Payables for equipment, ending	(	16,785)	( 29,249)
Cash paid in current period	$	116,726	$ 53,481
	2025		2024
Acquisition of intangible assets	$	6,660	$ -
Add: Premium payable, beginning		36,064	33,776
Long-term notes and accounts payable, beginning		13,114	46,057
Less: royalty payable, ending	(	12,572)	( 36,064)
Long-term notes and accounts payable, ending		-	( 13,114)
Cash paid in current period	$	43,266	$ 30,655

(XXVI) Changes in liabilities from financing activities

| | 2025
Lease liabilities | | 2024
Lease liabilities | |
| --- | --- | --- | --- | --- |
| January 1 | $ | 362 | $ | 1,432 |
| Repayment of lease principal | ( | 362) | ( | 1,070) |
| December 31 | $ | - | $ | 362 |

VII. Related party transactions

(I) Related party's name and relationship

Name of Related Party	Relationship with the Company
ZHAN JING Technology (Shen ZHEN) Co., Ltd. (Zhan Jing)	Subsidiary of the Company
Asphetek Solution Inc. (Asphetek)	"
Asphetek Solution (Chengdu) Inc. (Asphetek Chengdu)	"
Epileds Technologies, Inc. (Epileds Technologies)	Other related party
OBE Integrated Tech Co., Ltd. (OBE)	"
ELUX, Inc.	Affiliated companies

(II) Significant transactions with related parties

1. Operating revenue

	2025	2024
Sales of goods:
—Subsidiaries
Zhan Jing	$ 196,018	$ 213,768
Others	3,447	-
—Other related party
Others	-	5
	$ 199,465	$ 213,773

The price of the Company's sale to the above-mentioned related parties is similar to that of general customers, except when there is no similar transaction to follow, and the terms of the transaction are to be determined by both parties; the payment term to the related parties is 90~120 days; for general customers, 30~120 days after settlement of the current month.

2. Purchase stock

	2025	2024
Purchase of goods:
—Subsidiaries	$ 2,224	$ 15,473
—Other related party	11,903	9,405
	$ 14,127	$ 24,878

Except for the fact that there is no similar transaction to follow, the terms of the transaction are determined by both parties through negotiation. For the rest, the Company bills the purchase to the related party at the prevailing price; the terms of payment to the related party, except for some materials, is payment at sight, and the rest are purchase within 90 to 120 days after settlement of the current month, or within 30 to 120 days after settlement of the current month for suppliers.

~40~

Receivables from related parties

	December 31, 2025	December 31, 2024
Accounts receivable:
—Subsidiaries
Zhan Jing	$ 119,347	$ 113,085
Others	2,652	-
	$ 121,999	$ 113,085
Other receivables:
—Subsidiaries	$ 198	$ 1,485

Payables to related parties

	December 31, 2025	December 31, 2024
Accounts payable:
—Subsidiaries	$ 1,078	$ 2,931
—Other related party	7,520	3,983
	$ 8,598	$ 6,914
Other payable:
—Subsidiaries	$ 1,369	$ -
—Other related party	-	31
	$ 1,369	$ 31

Property transactions

Disposal of property, plant, and equipment

	2024
	Disposal of proceeds	Disposal of (losses) profits
Other related party	$ 1,380	$ 113

Other operating expenses

	2025	2024
Subsidiary	$ 9,118	$ -

The main fees are manpower support service fees and testing fees.

Rental income (stated as other income)

	2025	2024
Subsidiary	$ 474	$ 404
Affiliated companies	-	499
Other related party	70	350
	$ 544	$ 1,253

The Company rents some offices, machinery and equipment for use by related parties. The rent is negotiated and collected on a monthly basis as agreed by both parties.

Labor Services

The Company provided labor services to its subsidiary Asphetek in the amounts of NT$1,942 and NT$6,493 for the years 2025 and 2024, respectively, which are recorded as deductions from salary expenses.

(III) Remuneration to the management

	2025		2024
Salary and other short-term employee benefits	$	5,998	$	5,945

VIII. Pledged assets

Assets	Book value		Purpose of guarantee
	December 31, 2025	December 31, 2024
Refundable deposits (listed in other non-current assets - others)	$ 30	$ 246	Performance bond

IX. Significant Contingent Liabilities and Unrecognized Commitments

(I) Contingencies

None.

(II) Commitments

Capital expenditure contracted but not incurred

Property, plant, and equipment

	December 31, 2025	December 31, 2024
	$ 25,313	$ 9,803

To adapt to future business and market changes, the Company signed an LED patent licensing agreement with Cree Inc. in December 2019. The Company pays royalties based on a certain percentage of sales revenue as per the agreement. In December 2024, the Company signed a renewal contract with Cree Inc., with a contract period of 2 years.
The Company signed a phosphor powder licensing contract with a foreign manufacturer in December 2022. According to the agreement, the Company shall pay a certain percentage of the sales amount each year during the contract period as royalty and the royalty when the sales quantity reaches the target.

X. Significant losses from disasters

None.

XI. Materiality after the period

None.

XII. Others

(I) Capital management

The Company's capital management objective is to ensure the Company's sustainable operation, maintain the optimal capital structure, reduce the cost of capital, and provide returns to shareholders.

~42~

(II) Financial instruments

1. Types of financial instruments

	December 31, 2025	December 31, 2024
Financial assets
Financial assets at fair value through profit or loss (FVTPL)
Financial assets mandatorily measured at fair value through profit or loss	$ 20	$ 770
Financial assets at FVTOCI
Investment in selected equity instruments	$ 307,285	$ 382,689
Financial assets at amortized cost
Cash and cash equivalents	$ 867,980	$ 972,859
Financial assets at amortized cost	-	130,000
Accounts receivable	251,772	356,566
Accounts receivable - related parties	121,999	113,085
Other receivables (including related parties)	20,025	111,738
Refundable deposits (listed in other non-current assets - others)	30	246
	$ 1,261,806	$ 1,684,494
	December 31, 2025	December 31, 2024
Financial liabilities
Financial liabilities measured at fair value through profit or loss
Financial liabilities held for trading	$ 3,049	$ 4,709
Financial liabilities measured at amortized cost
Accounts payable	$ 273,629	$ 294,647
Accounts payable - related parties	8,598	6,914
Other payable accounts (including related party)	208,615	265,192
Long-term notes and payables	-	13,114
	$ 490,842	$ 579,867
Lease liabilities	$ -	$ 362

2. Risk management policies

(1) The daily operations of the Company are affected by multiple financial risks, including market risk (including exchange rate risk, interest rate risk, and price risk), credit risk, and liquidity risk. In order to reduce the adverse effect on the Company's financial performance resulting from uncertainty, the Company enters into forward exchange contracts and foreign exchange swaps contract to avoid exchange rate risks.

(2) For risk management, the Company's finance unit works closely with various operating units within the Company to be responsible for identifying, evaluating and hedging financial risks.

(3) For information on derivative instruments to avoid financial risks, please see Note VI(II).

3. Nature and extent of significant financial risk

(1) Market risk

Exchange rate risk

A. The Company operates as a multinational company. Therefore, it is subject to the exchange rate risk arising from transactions that are functionally different from the Company, which are mainly USD, Japanese Yen, and RMB. The relevant exchange rate risk comes from future business transactions and recognized assets and liabilities.

B. The Company hedges the overall exchange rate risk through the Company's Finance Department. Foreign exchange risk is measured with the use of forward exchange contracts and exchange rate swap contracts to minimize the effect of fluctuating exchange rates on the anticipated transactions of USD, Japanese Yen, and CNY which are highly probable.

C. The Company uses forward exchange rates to hedge against exchange rate risks, but does not apply the hedge accounting to financial assets or liabilities measured at fair value through profit and loss. Please refer to Note VI(II).

D. The Company's business involves several non-functional currencies (the functional currency of the Company is NTD). Therefore, it is affected by exchange rate fluctuations, and there are significant exchange rate fluctuations. The information about assets and liabilities denominated in foreign currencies affected is as follows:

	December 31, 2025
	Foreign currency ($ in Thousand)	Exchange rate	Book value NT$ Thousands
(Foreign currency: Functional currency)
Financial assets
Monetary items
USD: NTD	$ 10,703	31.4300	$ 336,395
RMB: NTD	27,074	4.4960	121,725
Financial liabilities
Monetary items
USD: NTD	$ 6,163	31.4300	$ 193,703
Japanese Yen: NTD	149,130	0.2008	29,945
RMB: NTD	1,576	4.4960	7,086
	December 31, 2024
	Foreign currency ($ in Thousand)	Exchange rate	Book value NT$ Thousands
(Foreign currency: Functional currency)
Financial assets
Monetary items
USD: NTD	$ 16,327	32.7850	$ 535,281
RMB: NTD	26,447	4.4780	118,430
Financial liabilities
Monetary items
USD: NTD	$ 9,397	32.7850	$ 308,081
Japanese Yen: NTD	84,977	0.2099	17,837
RMB: NTD	1,169	4.4780	5,235

E. All exchange gains and losses (including realized and unrealized) on the Company's monetary items due to exchange rate fluctuations were aggregated for NT$5,364 and NT$21,610 in 2025 and 2024, respectively.

F. The risk analysis of the Company's foreign currency market due to the impact of significant exchange rate fluctuations is as follows:

	2025
	Sensitivity analysis
	Range of change	Impact on profit and loss	Impact on other comprehensive income
(Foreign currency: Functional currency)
Financial assets
Monetary items
USD: NTD	1%	$ 3,364	$ -
RMB: NTD	1%	1,217	-
Financial liabilities
Monetary items
USD: NTD	1%	$ 1,937	$ -
Japanese Yen: NTD	1%	299	-
RMB: NTD	1%	71	-
	2024
	Sensitivity analysis
	Range of change	Impact on profit and loss	Impact on other comprehensive income
(Foreign currency: Functional currency)
Financial assets
Monetary items
USD: NTD	1%	$ 5,353	$ -
RMB: NTD	1%	1,184	-
Financial liabilities
Monetary items
USD: NTD	1%	$ 3,081	$ -
Japanese Yen: NTD	1%	178	-
RMB: NTD	1%	52	-

Price risk

A. The Company's equity instruments exposed to price risk are financial assets measured at fair value through profits or losses and financial assets measured at fair value through other comprehensive income. In order to manage the price risk of equity instrument investment, the Company diversifies its investment portfolio according to the limit set by the Company.
B. The Company mainly invests in equity instruments issued by domestic companies. The prices of these equity instruments will be affected by the uncertainty of the future values of the investment objects. If the prices of these equity instruments rose or fell by $1\%$ , with all other factors remaining unchanged, other comprehensive income in 2025 and 2024 would be classified as gains of equity investment measured at fair value through other comprehensive income. The contingent loss would increase or decrease by NT$3,073 and NT$3,827, respectively.

Cash flow and fair value interest rate risk

The Company does not hold borrowings with floating interest rates, so there is no significant exposure to cash flow and interest rate risk of fair value.

(2) Credit risk

A. The credit risk of the Company is the risk of financial loss due to the failure of customers or counterparties of financial instrument transactions to fulfill contractual obligations, which mainly comes from the inability of counterparties to pay off accounts receivable according to the collection terms.
B. The Company establishes credit risk management. According to the internal credit policy, the Company and each new customer shall determine the payment and delivery terms and conditions before establishing the terms and conditions for payment and delivery and credit risk analysis.

Internal risk control is to evaluate the credit quality of customers by considering their financial position, past experience and other factors. The limit of individual risk is set by the Board of Directors according to the internal or external rating. The usage of the credit limit is monitored regularly.

C. The Company adopts IFRS 9 to provide the hypotheses. When the contract payment is overdue for more than 90 days according to the agreed payment terms, it is deemed that a default has occurred.
D. The Company applies IFRS 9 and makes the following assumptions: When the contract payment is overdue for more than 30 days according to the agreed payment terms, it is deemed that the credit risk of the financial asset has increased significantly since the original recognition.
E. The Company classifies accounts receivable of customers according to the characteristics of trade credit risk, and estimates the expected credit loss based on the provision matrix and loss rate method.
F. After the recourse procedure, the Company will write off the amount of the financial assets for which the recovery cannot be reasonably expected. However, the Company will continue the recourse procedure to preserve the rights of the claims. As of December 31, 2025 and 2024, the Company did not have any creditor's rights that were written off but were still subject to recourse.
G. Credit-worthy customer groups have an expected loss rate of 0.2%. As of December 31, 2025 and 2024, the total carrying amounts of accounts receivable (including related parties) were $143,238 and $136,784, with allowance for losses of $42 and $47, respectively.
H. The Company incorporates economic countermeasures from the National Development Commission into its forward-looking considerations, and adjusts the loss rate based on historical and current information in a specific period to estimate the value of the allowance for loss of the accounts receivable (including related parties) of general credit customers. The preparation matrix as of December 31, 2025 and 2024, is as follows:

December 31, 2025	Expected loss rate	Total book value	Allowance for losses
Not overdue	0.20%	$ 228,480	$ 461
Within 30 days of overdue	25.92%	1,474	382
Past due by 31 to 60 days	50.00%	667	334
Past due by 61 to 90 days	50.00%	124	62
Overdue by more than 91 days	100.00%	1,546	1,546
		$ 232,291	$ 2,785
December 31, 2024	Expected loss rate	Total book value	Allowance for losses
---	---	---	---
Not overdue	0.72%	$ 319,853	$ 3,028
Within 30 days of overdue	28.18%	117	33
Past due by 31 to 60 days	50.00%	27	14
		$ 319,997	$ 3,075

I. Based on historical experience, the Company uses individual assessment to calculate expected credit losses for customers with higher credit risk. As of December 31, 2025 and 2024, the total carrying amounts of accounts receivable (including related parties) were NT$41,747 and NT$16,108, with allowance for losses of NT$40,678 and NT$116, respectively.
J. The changes in allowance for losses on accounts receivable (including related parties) under the simplified approach adopted by the Company are as follows:

	2025		2024
January 1	$	3,238	$ 6,210
Provision (reversal) of impairment loss		40,267	( 2,972)
December 31	$	43,505	$ 3,238

Among the provisions (reversed) of losses in 2025 and 2024, the (reversed) provision for impairment of receivables generated from contracts with customers amounted to NT$40,267 and (NT$2,972), respectively.

(3) Liquidity risk

A. The cash flow forecast is carried out by each operating unit within the Company and summarized by the Company's financial unit. The Company's financial unit monitors the forecast of the Company's liquidity requirements to ensure that it has sufficient funds to meet operating needs.

B. The following table shows the Company's non-derivative financial liabilities and derivative financial liabilities settled on a net or gross basis, which are classified according to the relevant maturity dates. Non-derivative financial liabilities are based on the residual period from the balance sheet date to the contract maturity date. Derivative financial liabilities are analyzed based on the residual period from the balance sheet date to the expected maturity date. The contractual cash flows disclosed in the table below are the undiscounted amounts.

December 31, 2025	Less than 1 year	1 to 2 years	2 to 5 years	Total
Non-derivative financial liabilities:
Accounts payable
(including related parties)	$ 282,227	$ -	$ -	$ 282,227
Other payable accounts
(including related party)	208,615	-	-	208,615
Derivative financial liabilities:
Forward Exchange Contract	$ 3,049	$ -	$ -	$ 3,049
December 31, 2024	Less than 1 year	1 to 2 years	2 to 5 years	Total
Non-derivative financial liabilities:
Accounts payable
(including related parties)	$ 301,561	$ -	$ -	$ 301,561
Other payable accounts
(including related party)	265,192	-	-	265,192
Long-term notes and payables	13,114	-	-	13,114
Lease liabilities	364	-	-	364
Derivative financial liabilities:
Forward Exchange Contract	$ 4,709	$ -	$ -	$ 4,709

(III) Information on fair value

The levels of the evaluation techniques used to measure the fair value of financial and non-financial instruments are defined as follows:

Level 1: The quoted price (unadjusted) is available to the enterprise in an active market for the same assets or liabilities on the measurement date. An active market refers to a market in which assets or liabilities are traded in sufficient frequency and quantity to provide pricing information on an ongoing basis. The fair value of the listed and OTC stocks invested by the Company belongs to this.

Level 2: Direct or indirect observable inputs for assets or liabilities, except for quoted prices included in Level 1. The fair value of the emerging stocks and derivative instruments invested by the Company belongs to this.

Level 3: The unobservable input value of assets or liabilities includes the equity instrument investment that the Company invests in and for which there is no active market.

Financial instruments not measured at fair value

The carrying amounts of cash and cash equivalents, financial assets measured at amortized cost, accounts receivable (including related parties), other receivables (including related parties), short-term loans, accounts payable (including related parties), other payables (including related parties), and lease liabilities are reasonable approximations of fair value.

The financial and non-financial instruments measured at fair value are classified according to the nature, characteristics, risk, and fair value level of the assets and liabilities. Relevant information is as follows:

(1) The information is classified according to the nature of the Company's assets and liabilities. The relevant information is as follows:

December 31, 2025	Level 1	Level 2	Level 3	Total
Assets
Repeated fair value
Financial assets at fair value through profit or loss (FVTPL)
Forward Exchange Contract	$ -	$ 20	$ -	$ 20
Financial assets at FVTOCI
Equity securities	194,467	112,818	-	307,285
	$ 194,467	$ 112,838	$ -	$ 307,305
Liabilities
Repeated fair value
Financial liabilities measured at fair value through profit or loss
Forward Exchange Contract	$ -	$ 3,049	$ -	$ 3,049
December 31, 2024	Level 1	Level 2	Level 3	Total
Assets
Repeated fair value
Financial assets at fair value through profit or loss (FVTPL)
Forward Exchange Contract	$ -	$ 770	$ -	$ 770
Financial assets at FVTOCI
Equity securities	306,797	75,892	-	382,689
	$ 306,797	$ 76,662	$ -	$ 383,459
Liabilities
Repeated fair value
Financial liabilities measured at fair value through profit or loss
Forward Exchange Contract	$ -	$ 4,709	$ -	$ 4,709

(2) The methods and hypotheses used by the Company to measure fair value are as follows:

A. If the Company adopts market quotation as the input value of fair value (i.e. Level 1), the characteristics of the instruments are as follows:

Market quotation

Listed company stock Closing price

B. Except for the financial instruments in the active market, the fair value of other financial instruments is based on the evaluation technology or with reference to the quotation of the counterparty.
C. When evaluating non-standardized and less complicated financial instruments, the Company adopts the evaluation techniques widely used by market participants. The parameters used in the evaluation model of this kind of financial instrument are usually the information that is observable in the market.
D. The derivative financial instruments were evaluated according to the evaluation models widely accepted by the market users, such as the discount method. Foreign exchange forward contracts are usually evaluated based on the current forward exchange rate.
E. The output of the evaluation model is the estimated value, and the evaluation technique may not reflect all the factors related to the financial and non-financial instruments held by the Company. Therefore, the estimated value of the evaluation model will be adjusted according to additional parameters, such as model risk or liquidity risk. According to the Company's fair value evaluation model management policies and related control procedures, the management believes that the evaluation adjustment is appropriate and necessary to properly express the fair value of the

financial and non-financial instruments in the parent company only balance sheet. The price information and parameters used in the evaluation process have been carefully evaluated and adjusted according to the current market conditions.

There were no transfers between Level 1 and 2 in 2025 and 2024.
There was no transfer in or out from Level 3 in 2025 and 2024.
In the evaluation process for the Company's fair value classified to Level 3, the Finance Department is responsible for verifying the independent fair value of the financial instrument. The data from independent sources are used to approximate the evaluation results to the market status, and to confirm that the data sources are independent, reliable, and resources and any necessary fair value adjustment to ensure that the evaluation result is reasonable.

In addition, the finance department determines the fair value evaluation policies, evaluation procedures, and confirmation of financial instruments in accordance with relevant International Financial Reporting Standards.

The Company carefully selects the evaluation model and evaluation parameters; however, different evaluation models or parameters may result in different evaluation results.

XIII. Disclosures in notes

(I) Information about significant transactions

Loaning of funds to others: None.
Making endorsements/guarantees for others: None.
Significant marketable securities held at the end of the period (excluding investment in subsidiaries, associates, and joint ventures): Please refer to Table 1.
The total purchase from and sale to related parties amounting to at least NT$100 million or 20% of the paid-in capital: Please refer to Table 2.
Accounts receivable from related parties amounting to at least NT$100 million, or 20% of the paid-in capital: Please refer to Table 3.
Business relationships and significant transactions between the parent company and its subsidiaries: Please refer to Table 4.

(II) Information on reinvested businesses

The name and location of the investee company and other relevant information (excluding mainland China investee companies): Please refer to Table 5.

(III) Investment in Mainland China

Basic information: Please refer to Table 6.
Significant transactions with investee companies in mainland China directly or indirectly through enterprises in a third region: Please refer to Table 4.

XIV. Departmental Information

Not applicable.

~48~

Advanced Optoelectronic Technology Inc.
Significant marketable securities held at the end of the period (excluding investment in subsidiaries, associates, and joint ventures)
December 31, 2025

Attached Table 1

Unit: NTS Thousand
(unless otherwise stated)

| Companies held | Type and name of securities
(Note 1) | Relationship with issuer
of securities | Account titles in book | End of period | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| | | | | Shares
(Thousand Shares) | Book value
(Note 2) | Shareholding
ratio (%) | Fair value | Remarks |
| Advanced Optoelectronic Technology Inc. | Northern Lights Semiconductor Corporation
stock | None | Financial assets mandatorily
measured at fair value
through profit or loss - non-current | 2,033 | $- | 10.27% | $- | None |
| Advanced Optoelectronic Technology Inc. | Shares of Excellence Optoelectronics Holding Co., Ltd. | None | Financial assets at fair value
through other
comprehensive income - non-current | 312 | 5,219 | 0.15% | 5,219 | None |
| Advanced Optoelectronic Technology Inc. | Shares of Epileds Technologies, Inc. | The chairman of the
Company is a director of
the company | Financial assets at fair value
through other
comprehensive income - non-current | 8,130 | 175,608 | 8.10% | 175,608 | None |
| Advanced Optoelectronic Technology Inc. | Shares of Hua Yang Precision Machinery Co., Ltd. | None | Financial assets at fair value
through other
comprehensive income - non-current | 773 | 112,818 | 4.86% | 112,818 | None |
| Advanced Optoelectronic Technology Inc. | Shares of Innolux Corporation | None | Financial assets at fair value
through other
comprehensive income - non-current | 800 | 13,640 | 0.01% | 13,640 | None |

Note 1: Marketable securities in this table refer to stocks, bonds, beneficiary certificates and marketable securities derived from the aforementioned items within the scope of IFRS 9 "Financial Instruments."
Note 2: If the measurement is based on fair value, please fill in the book balance after adjustment for fair value evaluation. For the book value not measured at fair value, please fill in the book value of the original acquisition cost or cost after amortization deducting the accumulated impairment in the book value column.
Note 3: Based on the principle of materiality, this table lists the securities that the Company has determined should be disclosed.

Attached Table 1 page 1

Advanced Optoelectronic Technology Inc.
The total purchase from and sale to related parties amounting to at least NT$100 million or 20% of the paid-in capital
January 1 to December 31, 2025

Attached Table 2

Unit: NT$ Thousand
(unless otherwise stated)

			Status of transactions				Trading terms different from general trade and reasons		Notes and accounts receivable (payable)
Purchase (sales) company	Name of counterparty	Relationship	Purchase (sales)	Amount	% of total purchase (sale)	Period of credit extension	Unit price	Period of credit extension	Balance	Percentage in total accounts/notes receivable (payable) (%)	Remarks
Advanced Optoelectronic Technology Inc.	ZHAN JING Technology (Shen ZHEN) Co., Ltd.	Subsidiary of the Company	Sales volume	$196,018	14	O/A with net 120 days	-	-	$119,347	32	Note 1

Note 1: The price of the Company's sale to the above-mentioned related parties is similar to that of general customers, except when there is no similar transaction to follow, and the terms of the transaction are to be determined by both parties.

Attached Table 2 page 1

Attached Table 3

Advanced Optoelectronic Technology Inc.
Accounts receivable from related parties amounting to more than NT$100 million or 20% of the paid-in capital
December 31, 2025

The company that accounts for the accounts receivable	Name of counterparty	Relationship	Receivables from related parties	Turnover	Overdue accounts receivable - related parties		Subsequent recovery of receivables from related parties	Provision for loss allowance
					Amount	Treatment method
Advanced Optoelectronic Technology Inc.	ZHAN JING Technology (Shen ZHEN) Co., Ltd.	Subsidiary of the Company	$119,347	2.25	$20,860	Enhancement of collection service	$60,181	$-

Attached Table 3 on page 1

Advanced Optoelectronic Technology Inc.
Business relationships and significant transactions between the parent company and its subsidiaries
January 1 to December 31, 2025

Attached Table 4

Serial number (Note 1)	Name of Transaction Party	Counterparty of transactions	Relationship with the counterparty (Note 2)	Accounts	Amount	Status of transactions		Unit: NTS Thousand (unless otherwise stated) Percentage to consolidated total revenue or total assets (%) (Note 3)
						Trading terms and conditions	Note 4
0	Advanced Optoelectronic Technology Inc.	ZHAN JING Technology (Shen ZHEN) Co., Ltd.	1	Sales volume	$196,018			12.23
0	Advanced Optoelectronic Technology Inc.	ZHAN JING Technology (Shen ZHEN) Co., Ltd.	1	Accounts receivable	119,347			4.29

Note 1: Information on business transactions between the parent company and its subsidiaries shall be specified in the numbered column. The number is to be entered as follows:
(1) "0" for the parent company.
(2) Subsidiaries are numbered sequentially from 1 onwards.
Note 2: There are three types of relationship with transaction parties, and it is sufficient to indicate the relationship:
(1) Between the parent company and its subsidiaries.
(2) Subsidiary to parent company.
(3) Subsidiaries to subsidiaries.
Note 3: In employing the ratio of transaction amount to consolidated revenue or assets, if it belongs as an asset and liability item, the ratio is calculated by taking the ending balance to the consolidated total assets. If it belongs as a profit and loss item, the ratio is calculated by taking the interim accumulated amount to the consolidated total revenue.
Note 4: The payment deadline for sales to related parties is 120 days after the shipment. The payment term for purchases with related parties, except for some materials, which is sight payment, is 120 days after purchase.
Note 5: List the ratios of transaction amount to total consolidated revenue or total assets that reach 1%.

Attached Table 4 on page 1

Advanced Optoelectronic Technology Inc.
The name and location of the investee company and other relevant information (excluding mainland China investee companies)
January 1 to December 31, 2025

Attached Table 5

Unit: NTS Thousand
(unless otherwise stated)

			Initial investment amount		Held at end of period
Name of investment company	Name of investee company (Note 1, 2)	Location of the Company	Main Business	End of current period	End of last year	Shares (Thousand Shares)	Percentage (%)	Book value	Profit or loss of the investee
Advanced Optoelectronic Technology Inc.	Advanced Optoelectronic Technology Holding Ltd.	Samoa	Investments in various businesses	$99,811	$99,811	3,250	100	$28,591	($17,386)
Advanced Optoelectronic Technology Inc.	Asphetek Solution Inc.	Taiwan	Manufacture and sale of electronic components	142,000	142,000	14,200	47.33	54,646	(11,184)
Advanced Optoelectronic Technology Inc.	ELUX, Inc.	USA	Development of micro LED displays	91,188	91,188	283	25.94	-	70,587
Advanced Optoelectronic Technology Holding Ltd.	AOT Holding Ltd.	Samoa	Investments in various businesses	67,632	67,632	2,250	100	28,730	(17,383)

Note 1: If the public company that has a foreign holding company and complies with local laws and regulations, mainly rely on the consolidated financial statements in its financial statements, the relevant information about the foreign invested company may be disclosed only to the relevant information of the holding company.
Note 2: Please fill in the information as follows for situations other than those described in Note 1:
(1) The columns of "Name of investee company," "Location," "Main business," "Original investment amount" and "Ownership at end of the period" must be filled out based on the (public) Company's investment status and the re-investment situation of each investee directly or indirectly controlled in order, and the relationship between each investee and the (public) Company (e.g., a subsidiary or a sub-subsidiary) must be indicated in the remarks column.
(2) Fill in the amount of current profit or loss of the investee in the column of "Profit or loss of investee for the current period."
(3) The column, Gains and losses on investment recognized for the current period, must be filled out with the (public) Company's recognized subsidiaries through direct investments and the gain or loss amount for each of the equity-method investee company, and the rest is not required. When filling in the "Recognized amount of current profit or loss on each subsidiary directly invested," it must be confirmed that the amount of the current profit or loss on each subsidiary includes investment gains and losses that must be recognized in accordance with the regulations for its investment.

Attached Table 5 on page 1

Attached Table 6
Unit: NTS Thousand
(unless otherwise stated)

Name of investees in Mainland China	Main Business	Paid-in capital	Method of investment (Note 1)	Accumulated investment amount from Taiwan at beginning of period	Investment amount exported or recovered in the current period		Accumulated investment amount from Taiwan at end of period	Profit or loss of the investee ($17,358)	The Company's direct or indirect shareholding (%)	Investment income recognized in the current period (Note 2) ($17,358) ((2)B)	Book value of investment at ending period	Investment income received in the current period
					Export	Recovered
ZHAN JING Technology (Shen ZHEN) Co., Ltd.	Technology development, wholesale, import/export and related ancillary services of new electronic components and electronic products	$63,698	(2)	$63,698	$-	$-	$63,698	$63,698	100%	100%	$28,061	$-
Asphetek Solution (Chengdu) Inc.	Manufacture and sale of electronic components	79,725	(1)	73,659	6,066	-	79,725	12,885	47.33%	6,098	95,761	-
Company name	Accumulated investment from Taiwan to Mainland China at end of period	Investment Amount Approved by Investment Commission, MOEA	Upper limit of investment to Mainland China approved by the Investment Commission, MOEA
---	---	---	---
Advanced Optoelectronic Technology Inc.	$63,698	$66,946 (USD: 2,130 thousand)	$1,267,274
Asphetek Solution Inc.	79,725	141,435 (USD: 4,500 thousand)	68,486

Note 1: Investment methods are divided into the following three types. It is sufficient to indicate the types of investments:
(1) Direct investment in mainland China.
(2) Reinvestment in Mainland China through a third country company (please specify the investment company in the third country): Reinvest in China through AOT Holding Ltd.
(3) The Company was directly invested by ZHAN JING Technology (Shen ZHEN) Co., Ltd.

Note 2: Recognized in the investment income column for the current period:
(1) It shall be specified if the investment is in preparation without any investment income.
(2) The recognition bases of investment income are classified into the following three categories, which shall be specified.
A. Financial statements audited and verified by the international accounting firm associated with the accounting firm of the Republic of China.
B. The financial statements audited and verified by the CPAs of the parent company in Taiwan.
C. Others: Investment gains/losses recognized based on self-prepared financial statements for the same period that have not been audited by CPAs.

Note 3: Figures in this table shall be stated in NTD.

Attached Table 6 on page 1

Statement XII on page 1

AI assistant

AOT Audit Report / Information 2025

52326_rns_2026-06-05_d889744a-659e-49c1-9f1e-2ebfbfdded56.pdf

Audit opinion

Basis for audit opinion

Key audit matters

Inventory valuation

Description of matters

Corresponding audit procedures

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

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

Advanced Optoelectronic Technology Inc.

Advanced Optoelectronic Technology Inc.

Advanced Optoelectronic Technology Inc.

(II) Financial assets and liabilities at FVTPL

(VII) Financial assets at FVTOCI

VII. Related party transactions

(I) Related party's name and relationship

(II) Significant transactions with related parties

1. Operating revenue

2. Purchase stock

(II) Financial instruments

1. Types of financial instruments

2. Risk management policies

3. Nature and extent of significant financial risk

(1) Market risk

Exchange rate risk

Price risk

Cash flow and fair value interest rate risk

(2) Credit risk

XIII. Disclosures in notes

(I) Information about significant transactions

(II) Information on reinvested businesses

(III) Investment in Mainland China

XIV. Departmental Information

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AOT — Audit Report / Information 2025

52326_rns_2026-06-05_d889744a-659e-49c1-9f1e-2ebfbfdded56.pdf

Audit opinion

Basis for audit opinion

Key audit matters

Inventory valuation

Description of matters

Corresponding audit procedures

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

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

Advanced Optoelectronic Technology Inc.

Advanced Optoelectronic Technology Inc.

Advanced Optoelectronic Technology Inc.

(II) Financial assets and liabilities at FVTPL

(VII) Financial assets at FVTOCI

VII. Related party transactions

(I) Related party's name and relationship

(II) Significant transactions with related parties

1. Operating revenue

2. Purchase stock

(II) Financial instruments

1. Types of financial instruments

2. Risk management policies

3. Nature and extent of significant financial risk

(1) Market risk

Exchange rate risk

Price risk

Cash flow and fair value interest rate risk

(2) Credit risk

XIII. Disclosures in notes

(I) Information about significant transactions

(II) Information on reinvested businesses

(III) Investment in Mainland China

XIV. Departmental Information

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AOT Audit Report / Information 2025