Stock Code:8271

APACER TECHNOLOGY INC.

FINANCIAL STATEMENTS

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

Address: 1F, No.32, Zhongcheng Rd., Tucheng Dist., New Taipei City 236, Taiwan (R. O. C)
Telephone: +886-2-2267-8000

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

Contents	Page
1. Cover Page	1
2. Table of Contents	2
3. Independent Auditors’ Report	3
4. Parent-Company-Only Balance Sheets	4
5. Parent-Company-Only Statements of Comprehensive Income	5
6. Parent-Company-Only Statements of Changes in Equity	6
7. Parent-Company-Only Statements of Cash Flows	7
8. Notes to the Parent-Company-Only Financial Statements
(1) Organization and business	8
(2) Authorization of parent-company-only financial statements	8
(3) Application of new, revised or amended accounting standards and interpretations	8~10
(4) Summary of material accounting policies	10~23
(5) Critical accounting judgments and key sources of estimation uncertainty	23~24
(6) Significant account disclosures	24~52
(7) Related-party transactions	52~55
(8) Pledged assets	55
(9) Significant commitments and contingencies	55
(10) Significant loss from disaster	55
(11) Significant subsequent events	55
(12) Others	56
(13) Additional disclosures
(a) Information on significant transactions	57~58
(b) Information on investees	58
(c) Information on investment in Mainland China	59
(14) Segment information	59
9. Statements of major accounting items	60~70

KPMG

多快速索群合作計算學答題

KPMG

台北市110615信義路5段7號68樓(台北101大樓)

68F., TAIPEI 101 TOWER, No. 7, Sec. 5,

Xinyi Road, Taipei City 110615, Taiwan (R.O.C.)

電話 Tel +886 2 8101 6666

傳真 Fax +886 2 8101 6667

網址 Web kpmg.com/tw

Independent Auditors’ Report

To the Board of Directors of Apacer Technology Inc.:

Opinion

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

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

Basis for Opinion

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

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the parent-company-only financial statements of the current period. These matters were addressed in the context of our audit of 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 matter for the Company’s parent-company-only financial statements for the year ended December 31, 2025 is stated as follows:

Assessment of impairment of goodwill from investments in subsidiaries

Please refer to notes 4(m), 5(b) and 6(f) for the accounting policy on impairment of non-financial assets, “Critical accounting judgments and key sources of estimation uncertainty” for estimation uncertainty of impairment of goodwill, and “Impairment test on Goodwill” for the related disclosures, respectively, of the notes to parent-company-only financial statements.

Description of key audit matter:

Goodwill arising from acquisition of subsidiaries, which are included in the carrying amount of investments accounted for using equity method, is subject to impairment test annually or at the time there are indications that goodwill may have been impaired. The assessment of the recoverable amount of the cash-generating unit of goodwill involves management’s judgment and estimation. Accordingly, the assessment of impairment of goodwill has been identified as one of the key audit matters.

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

KPMG
3-1

How the matter was addressed in our audit:

In relation to the key audit matter above, our principal audit procedures included obtaining the assessment of goodwill impairment provided by the management; assessing the appropriateness of the estimation base and key assumptions, including the discount rate, expected sales growth rate and future cash flow projections, used by the management in measuring the recoverable amount; performing a sensitivity analysis of key assumptions and results; and assessing the adequacy of the Company’s disclosures with respect to the related information.

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

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

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

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

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

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

Identified and assessed the risks of material misstatement of the parent-company-only financial statements, whether due to fraud or error, designed and performed 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.
Obtained an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
Evaluated the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Concluded on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the parent-company-only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

KPMG

Evaluated the overall presentation, structure and content of the parent-company-only financial statements, including the disclosures, and whether the parent-company-only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtained sufficient and appropriate audit evidence regarding the financial information of the investees accounted for using equity method to express an opinion on the parent-company-only financial statements. We are responsible for the direction, supervision and performance of the audit. We remained solely responsible for our audit opinion.

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

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

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

The engagement partners on the audit resulting in this independent auditors’ report are Yin, Yuan-Sheng and Shih, Wei-Ming.

KPMG

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

Notes to Readers

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

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

(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)

APACER TECHNOLOGY INC.

Parent-Company-Only Balance Sheets

December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollar)

Assets	December 31, 2025		December 31, 2024		Liabilities and Equity	December 31, 2025		December 31, 2024
		Amount	%	Amount		%	Amount	%	Amount	%
Current assets:						Current liabilities:
1100	Cash and cash equivalents (note 6(a))	$ 218,925	2	496,889	8	2100 Short-term borrowings (note 6(j))	$ 1,618,675	19	288,508	5
1110	Financial assets at fair value through profit or loss - current (note 6(b))	-	-	80,596	1	2120 Financial liabilities at fair value through profit or loss - current (note 6(b))	1,205	-	727	-
1170	Notes and accounts receivable, net (notes 6(d) and (q))	956,418	11	497,957	8	2130 Contract liabilities - current (note 6(q))	43,370	-	32,469	1
1180	Accounts receivable from related parties (notes 6(d), (q) and 7)	349,657	4	277,537	5	2170 Notes and accounts payable	1,234,671	14	756,762	13
1310	Inventories (note 6(e))	4,608,341	53	1,231,444	21	2180 Accounts payable to related parties (note 7)	213	-	8,924	-
1470	Other current assets	176,545	2	58,659	1	2200 Other payables (note 6(r))	596,758	7	273,177	5
1476	Other financial assets - current (note 6(a))	350,000	4	1,280,000	22	2220 Other payables to related parties (note 7)	2,153	-	2,103	-
	Total current assets	6,659,886	76	3,923,082	66	2230 Current income tax liabilities	143,177	2	11,679	-
	Non-current assets:					2250 Provisions - current (note 6(l))	7,920	-	6,906	-
1510	Financial assets at fair value through profit or loss - non-current (note 6(b))	17,668	-	-	-	2280 Lease liabilities - current (note 6(k))	10,467	-	9,361	-
1517	Financial assets at fair value through other comprehensive income - non-current (note 6(c))	37,040	1	37,611	1	2300 Other current liabilities	29,132	-	27,977	-
1550	Investments accounted for using equity method (note 6(f))	967,023	11	923,280	16	Total current liabilities	3,687,741	42	1,418,593	24
1600	Property, plant and equipment (note 6(g))	846,296	10	843,551	14	Non-current liabilities:
1755	Right-of-use assets (note 6(h))	29,124	-	21,623	-	2550 Provisions - non-current (note 6(l))	500	-	500	-
1780	Intangible assets (note 6(i))	20,937	-	28,384	-	2570 Deferred income tax liabilities (note 6(n))	42	-	-	-
1840	Deferred income tax assets (note 6(n))	152,640	2	143,074	2	2580 Lease liabilities - non-current (note 6(k))	19,010	-	12,147	-
1980	Other financial assets - non-current	35,226	-	38,221	1	2640 Net defined benefit liabilities (note 6(m))	26,197	1	19,619	-
	Total non-current assets	2,105,954	24	2,035,744	34	Total non-current liabilities	45,749	1	32,266	-
						Total liabilities	3,733,490	43	1,450,859	24
						Equity (note 6(o)):
						3100 Common stock	1,281,292	14	1,287,292	22
						3200 Capital surplus	1,115,655	13	1,155,419	19
						3300 Retained earnings	2,711,837	31	2,122,299	36
						3400 Other equity	(76,434)	(1)	(57,043)	(1)
						Total equity	5,032,350	57	4,507,967	76
Total assets		$ 8,765,840	100	5,958,826	100	Total liabilities and equity	$ 8,765,840	100	5,958,826	100

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

(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)

APACER TECHNOLOGY INC.

Parent-Company-Only Statements of Comprehensive Income

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollar, Except for Earnings Per Share)

	2025		2024
		Amount	%	Amount	%
4000	Revenue (notes 6(q) and 7)	$ 10,239,974	100	7,069,010	100
5000	Cost of revenue (notes 6(e), (g), (i), (k), (l), (m), 7 and 12)	(8,388,447)	(82)	(6,155,535)	(87)
	Gross profit before unrealized gross profit	1,851,527	18	913,475	13
5920	Realized (unrealized) gross profit	(927)	-	2,016	-
	Gross profit	1,850,600	18	915,491	13
	Operating expenses (notes 6(d), (g), (h), (i), (k), (m), (r), 7 and 12):
6100	Selling expenses	(483,071)	(4)	(341,829)	(5)
6200	Administrative expenses	(277,610)	(3)	(192,994)	(3)
6300	Research and development expenses	(201,582)	(2)	(155,916)	(2)
6450	Reversal of (recognized) expected credit losses	5,857	-	(2,048)	-
6000	Total operating expenses	(956,406)	(9)	(692,787)	(10)
	Operating income	894,194	9	222,704	3
	Non-operating income and loss (notes 6(f), (k) and (s)):
7100	Interest income	23,653	-	27,532	-
7020	Other gains and losses, net	40,426	-	11,137	-
7050	Finance costs	(28,445)	-	(14,394)	-
7070	Share of profits of subsidiaries and associates	95,474	1	67,527	1
	Total non-operating income and loss	131,108	1	91,802	1
	Income before income tax	1,025,302	10	314,506	4
7950	Less: Income tax expenses (note 6(n))	(165,427)	(2)	(35,550)	-
	Net income	859,875	8	278,956	4
	Other comprehensive income (loss) (notes 6(m), (n), (o) and (t)):
8310	Items that will not be reclassified subsequently to profit or loss:
8311	Remeasurements of defined benefit plans	(6,577)	-	4,626	-
8316	Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income	(571)	-	2,362	-
8330	Share of other comprehensive income of subsidiaries	68	-	69	-
8349	Less: income tax related to items that will not be reclassified subsequently to profit or loss	1,314	-	(924)	-
		(5,766)	-	6,133	-
8360	Items that may be reclassified subsequently to profit or loss:
8361	Exchange differences on translation of foreign operations	(18,888)	-	30,010	-
8399	Less: income tax related to items that may be reclassified subsequently to profit or loss	-	-	-	-
		(18,888)	-	30,010	-
	Other comprehensive income (loss) for the year, net of income tax	(24,654)	-	36,143	-
	Total comprehensive income for the year	$ 835,221	8	315,099	4
	Earnings per share (in New Taiwan Dollar) (note 6(p)):
9750	Basic earnings per share	$	6.70		2.18
9850	Diluted earnings per share	$	6.64		2.17

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

(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)

APACER TECHNOLOGY INC.

Parent-Company-Only Statements of Changes in Equity

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollar)

		Retained earnings					Total other equity
	Common stock	Capital Surplus	Legal reserve	Special reserve	Unappropriated earnings	Total	Exchange differences on translation of foreign operations	Unrealized gains (losses) on financial assets measured at fair value through other comprehensive income	Total
Balance at January 1, 2024	$ 1,226,882	925,825	515,948	87,391	1,641,799	2,245,138	(43,434)	(46,050)	(89,484)
Capital increase in cash (note 6(o))	60,410	229,558	-	-	-	-	-	-	289,968
Appropriation of earnings:
Legal reserve	-	-	54,964	-	(54,964)	-	-	-	-
Special reserve	-	-	-	2,093	(2,093)	-	-	-	-
Cash dividends distributed to shareholders	-	-	-	-	(405,497)	(405,497)	-	-	(405,497)
Claim for the disgorgement right	-	36	-	-	-	-	-	-	36
Net income in 2024	-	-	-	-	278,956	278,956	-	-	278,956
Other comprehensive income in 2024	-	-	-	-	3,702	3,702	30,010	2,431	32,441
Total comprehensive income in 2024	-	-	-	-	282,658	282,658	30,010	2,431	32,441
Balance at December 31, 2024	1,287,292	1,155,419	570,912	89,484	1,461,903	2,122,299	(13,424)	(43,619)	(57,043)
Appropriation of earnings:
Legal reserve	-	-	28,265	-	(28,265)	-	-	-	-
Reversal of special reserve	-	-	-	(32,441)	32,441	-	-	-	-
Cash dividends distributed to shareholders	-	-	-	-	(251,022)	(251,022)	-	-	(251,022)
Cash dividends from capital surplus	-	(32,182)	-	-	-	-	-	-	(32,182)
Purchase and retirement of treasury stock	(6,000)	(8,741)	-	-	(14,052)	(14,052)	-	-	(28,793)
Changes in equity of associates accounted for using equity method	-	1,159	-	-	-	-	-	-	1,159
Net income in 2025	-	-	-	-	859,875	859,875	-	-	859,875
Other comprehensive income (loss) in 2025	-	-	-	-	(5,263)	(5,263)	(18,888)	(503)	(19,391)
Total comprehensive income (loss) in 2025	-	-	-	-	854,612	854,612	(18,888)	(503)	(19,391)
Balance at December 31, 2025	$ 1,281,292	1,115,655	599,177	57,043	2,055,617	2,711,837	(32,312)	(44,122)	(76,434)

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

(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)

APACER TECHNOLOGY INC.

Parent-Company-Only Statements of Cash Flows

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollar)

	2025	2024
Cash flows from operating activities:
Income before income tax	$ 1,025,302	314,506
Adjustments:
Depreciation	47,410	46,221
Amortization	9,546	10,753
Recognized (reversal of) expected credit loss	(5,857)	2,048
Interest expense	28,445	14,394
Interest income	(23,653)	(27,532)
Share of profit of subsidiaries and associates	(95,474)	(67,527)
Loss (gain) on disposal of property, plant and equipment	(265)	853
Gain on lease modifications	-	(40)
Unrealized (realized) gross profit on sales to subsidiaries and associates	927	(2,016)
Subtotal	(38,921)	(22,846)
Changes in operating assets and liabilities:
Changes in operating assets:
Financial assets at fair value through profit or loss	79,183	(80,003)
Notes and accounts receivable	(452,604)	57,872
Accounts receivable from related parties	(72,120)	(123,951)
Inventories	(3,376,897)	131,381
Other current assets	(121,863)	30,281
Net changes in operating assets	(3,944,301)	15,580
Changes in operating liabilities:
Financial liabilities at fair value through profit or loss	478	657
Contract liabilities	10,901	5,611
Notes and accounts payable	477,909	13,480
Notes payable to related parties	(8,711)	(343,423)
Other payables	320,208	(112,902)
Other payables to related parties	50	(55)
Provisions – current	1,014	(1,402)
Other current liabilities	1,155	2,527
Net defined benefit liabilities	1	(4)
Net changes in operating liabilities	803,005	(435,511)
Total changes in operating assets and liabilities	(3,141,296)	(419,931)
Total adjustments	(3,180,217)	(442,777)
Cash used in operations	(2,154,915)	(128,271)
Interest received	27,572	25,508
Dividends received	33,143	108,947
Interest paid	(25,072)	(13,714)
Income taxes paid	(42,081)	(91,745)
Net cash used in operating activities	(2,161,353)	(99,275)

(Continued)

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

7-1

(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)

APACER TECHNOLOGY INC.

Parent-Company-Only Statements of Cash Flows (Continued)

For the years ended December 31, 2025 and 2024

(Expressed in Thousands of New Taiwan Dollar)

	2025	2024
Cash flows from investing activities:
Acquisition of financial assets at fair value through profit or loss	(16,255)	-
Acquisition of financial assets at fair value through other comprehensive income	-	(3,965)
Proceeds from disposal of financial assets at fair value through other comprehensive income	-	3,750
Acquisition of property, plant and equipment	(37,112)	(25,631)
Proceeds from disposal of property, plant and equipment	265	-
Acquisition of intangible assets	(2,099)	(3,850)
Decrease in other financial assets – current	930,000	19,670
Decrease (increase) in other financial assets – non-current	2,995	(36,016)
Decrease in other non-current assets	-	613
Net cash provided by (used in) investing activities	877,794	(45,429)
Cash flows from financing activities:
Increase in short-term borrowings	1,330,167	227,098
Payment of lease liabilities	(12,575)	(11,926)
Cash dividends distributed to shareholders	(251,022)	(405,497)
Capital increase in cash	-	289,968
Claim for the disgorgement right	-	36
Purchase of treasury stock	(28,793)	-
Cash dividends from capital surplus	(32,182)	-
Net cash provided by financing activities	1,005,595	99,679
Net decrease in cash and cash equivalents	(277,964)	(45,025)
Cash and cash equivalents at beginning of year	496,889	541,914
Cash and cash equivalents at end of year	$ 218,925	496,889

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

(English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

For the years ended December 31, 2025 and 2024

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

Organization and business

Apacer Technology Inc. (the “Company”) was incorporated on April 16, 1997, as a company limited by shares under the laws of the Republic of China (“R.O.C.”) and registered under the Ministry of Economic Affairs, R.O.C. The address of the Company’s registered office is 1F, No.32, Zhongcheng Rd., Tucheng Dist., New Taipei City, Taiwan. The Company is engaged in the research and development, design, manufacturing, processing, maintenance and sales of memory modules and storage memory devices.

Authorization of parent-company-only financial statements

These parent-company-only financial statements were authorized for issuance by the Board of Directors on February 25, 2026.

Application of new, revised or amended accounting standards and interpretations

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

The Company has initially adopted the following new amendments, which do not have a significant impact on its parent-company-only financial statements, from January 1, 2025:

Amendments to IAS 21 “Lack of Exchangeability”

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

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

IFRS 17 “Insurance Contracts” and amendments to IFRS 17 “Insurance Contracts”
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments”
Annual Improvements to IFRS Accounting Standards—Volume 11
Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

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

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

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

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

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

• Greater disaggregation of information: the new standard includes enhanced guidance on how companies group information in the financial statements. This includes guidance on whether information is included in the primary financial statements or is further disaggregated in the notes. | January 1, 2027

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

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

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

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

Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”
IFRS 19 “Subsidiaries without Public Accountability: Disclosures” and amendments to IFRS 19 “Subsidiaries without Public Accountability: Disclosures”
Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency”

4. Summary of material accounting policies:

The material accounting policies presented in the parent-company-only financial statements are summarized as follows. The following accounting policies were applied consistently throughout the periods presented in the Company’s parent-company-only financial statements.

(a) Statement of compliance

The Company’s accompanying parent-company-only financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (the “Regulations”).

(b) Basis of preparation

(i) Basis of measurement

The accompanying parent-company-only financial statements have been prepared on a historical cost basis except for the following items in the balance sheets:

1) Financial instruments measured at fair value through profit or loss (including derivative financial instruments);
2) Financial assets at fair value through other comprehensive income; and
3) Defined benefit liabilities are recognized as the present value of the defined benefit obligation less fair value of the plan assets and the effect of the asset ceiling mentioned in note 4(p).

(ii) Functional and presentation currency

The functional currency of the Company is determined based on the primary economic environment in which the Company operates. The Company’s parent-company-only financial statements are presented in New Taiwan Dollar (NTD), which is the Company’s functional currency. Except when otherwise indicated, all financial information presented in NTD has been rounded to the nearest thousand.

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

(i) Foreign currency transactions

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. At the end of each subsequent reporting period, monetary items denominated in foreign currencies are translated into the functional currencies using the exchange rate at that date. Non-monetary items denominated in foreign currencies that are measured at fair value are translated into the functional currencies using the exchange rate at the date that the fair value was determined. Non-monetary items denominated in foreign currencies that are measured based on historical cost are translated using the exchange rate at the date of the transaction.

Exchange differences are generally recognized in profit or loss, except for those differences relating to equity investments designated as at fair value through other comprehensive income, which are recognized in other comprehensive income.

(ii) Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising from acquisition, are translated into the presentation currency of the Company’s parent-company-only financial statements at the exchange rates at the reporting date. The income and expenses of foreign operations are translated into the presentation currency of the Company’s parent-company-only financial statements at the average exchange rates for the period. All resulting exchange differences are recognized in other comprehensive income.

On the disposal of a foreign operation which involves a loss of control over a subsidiary or a loss of significant influence over an associate that includes a foreign operation, all of the exchange differences accumulated in equity in respect of that operation attributable to the shareholders of the Company are entirely reclassified to profit or loss. In the case of a partial disposal that does not result in the Company losing control over a subsidiary, the proportionate share of accumulated exchange differences is reclassified to non-controlling interests. For a partial disposal of the Company’s ownership interest in an associate, the proportionate share of the accumulated exchange differences in equity is reclassified to profit or loss.

When the settlement of a monetary receivable from or payable to a foreign operation is neither planned nor likely to occur in the foreseeable future, the monetary item is, in substance, a part of net investment in that foreign operation, and the related foreign exchange gains and losses thereon are recognized as other comprehensive income.

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

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

(i) It is expected to be realized, or intended to be sold or consumed, in the normal operating cycle;

(ii) It is held primarily for the purpose of trading;

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

(iii) It is expected to be realized within twelve months after the reporting period; or
(iv) The asset is cash or a cash equivalent (as defined in IAS 7) unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

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

(i) It is expected to be settled in the normal operating cycle;
(ii) It is held primarily for the purpose of trading;
(iii) It is due to be settled within twelve months after the reporting period; or
(iv) The Company does not have the right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period.

(e) Cash and cash equivalents

Cash consists of cash on hand, checking deposits, and demand deposits. Cash equivalents consist of short-term and highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Time deposits that meet the aforesaid criteria and are held for meeting short-term cash commitments instead of investing and other purposes are also classified as cash equivalents.

(f) Financial instruments

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

(i) Financial assets

On initial recognition, financial assets are classified into the following categories: measured at amortized cost, fair value through other comprehensive income (FVOCI) and fair value through profit or loss (FVTPL). Regular way purchases or sales of financial assets are recognized or derecognized on a trade-date basis.

The Company shall reclassify all affected financial assets only when it changes its business model for managing its financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

1) Financial assets measured at amortized cost

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

it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

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

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

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:

it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and
its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

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

Debt investments at FVOCI are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are recognized in other comprehensive income. On derecognition, gains and losses accumulated in other comprehensive income are reclassified to profit or loss.

Equity investments at FVOCI are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in other comprehensive income. On derecognition, gains and losses accumulated in other comprehensive income are reclassified to retained earnings instead of profit or loss.

Dividend income derived from equity investments is recognized in profit or loss on the date on which the Company's right to receive payment is established, which in the case of quoted securities is normally the ex-dividend date.

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

3) Financial assets at fair value through profit or loss (Financial assets at “FVTPL”)

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

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

4) Assessment of whether contractual cash flows are solely payments of principal and interest

For the purposes of this assessment, “principal” is defined as the fair value of the financial assets on initial recognition. “Interest” is defined as consideration for the time value of money, for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs, as well as for a profit margin.

In assessing whether the contractual cash flows are solely payments of principal and interest, the Company considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making this assessment, the Company considers:

contingent events that would change the amount or timing of cash flows;
terms that may adjust the contractual coupon rate, including variable rate features;
prepayment and extension features; and
terms that limit the Company’s claim to cash flows from specified assets (e.g. non-recourse features)

5) Impairment of financial assets

The Company recognizes loss allowances for expected credit losses on financial assets measured at amortized cost (including cash and cash equivalents, notes and accounts receivable and other financial assets).

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

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

Loss allowance for accounts receivable are always measured at an amount equal to lifetime ECL.

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

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

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

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

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

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

The gross carrying amount of a financial asset is written off, either partially or in full, to the extent that there is no realistic prospect of recovery. The Company individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Company expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Company’s procedures for recovery of amounts due. Based on the Company’s experience, there have been no corporate customer recoveries after 181 days.

6) Derecognition of financial assets

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

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

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

(ii) Financial liabilities

1) Financial liabilities

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

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

2) Derecognition of financial liabilities

The Company derecognizes a financial liability when its contractual obligation has been fulfilled or cancelled, or has expired. The Company also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value.

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

3) Offsetting of financial assets and liabilities

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

(iii) Derivative financial instruments

Derivative financial instruments such as foreign currency forward contracts are held to hedge the Company's foreign currency exposures. Derivatives are recognized initially at fair value, and attributable transaction costs are recognized in profit or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are recognized in profit or loss. If the valuation of a derivative instrument results in a positive fair value, it is classified as a financial asset; otherwise, it is classified as a financial liability.

(g) Inventories

Inventories are measured at the lower of cost and net realizable value. The cost of inventories is calculated based on the weighted-average method and includes expenditure incurred in acquiring the inventories, production or conversion costs, and other costs incurred in bringing them to the location and condition ready for sale. Fixed manufacturing overhead is allocated to finished products and work in process based on the higher of normal capacity or actual capacity; variable manufacturing overhead is allocated based on the actual capacity of machinery and equipment. Net realizable value represents the estimated selling price in the ordinary course of business, less all estimated costs of completion and necessary selling expenses.

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

(h) Investment in associates

Associates are those entities in which the Company has significant influence, but not control or joint venture, over the financial and operating policies.

Investments in associates are accounted for using the equity method and are recognized initially at cost, plus, any transaction costs. The carrying amount of the investment in associates includes goodwill identified on acquisition, net of any accumulated impairment losses. When necessary, the entire carrying amount of the investment (including goodwill) will be tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

The Company’s financial statements include the Company’s share of the profit or loss and other comprehensive income of those associates, after adjustments to align their accounting policies with those of the Company, from the date on which significant influence commences until the date on which significant influence ceases. When changes in an associate’s equity are not recognized in profit or loss or other comprehensive income of the associate, and such changes do not affect the Company’s ownership percentage of the associate, the Company recognizes the change in ownership interests of its associate as “capital surplus” in proportion to its ownership.

Gains and losses resulting from transactions between the Company and an associate are recognized only to the extent of unrelated Company’s interests in the associate.

When the Company’s share of losses in an associate equals or exceeds its interest in the associate, the recognition of further losses is discontinued. Additional losses are provided for, and a liability is recognized, only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the associate.

When an associate issues new shares and the Company does not subscribe to the new shares in proportion to its original ownership percentage, the Company’s interest in the associate’s net assets will be changed. The change in the equity interest is adjusted through the capital surplus and investment accounts. If the Company’s capital surplus is insufficient to offset the adjustment to investment accounts, the difference is charged as a reduction of retained earnings. If the Company’s interest in an associate is reduced due to the additional subscription to the shares of associate by other investors, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate shall be reclassified to profit or loss on the same basis as would be required if the associate had directly disposed of the related assets or liabilities.

(i) Investment in subsidiaries

When preparing the parent-company-only financial statements, investment in subsidiaries which are controlled by the Company is accounted for using equity method. Carrying amount of investments in subsidiaries includes goodwill arising from initial recognition less any accumulated impairment losses, which is recognized as a reduction of carry amount. Under the equity method, the net income, other comprehensive income and equity in the parent-company-only financial statement are the same as those attributable to shareholders of the Company in the consolidated financial statements.

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

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

(j) Property, plant and equipment

(i) Recognition and measurement

Items of property, plant and equipment are measured at cost, which includes capitalized borrowing costs, less accumulated depreciation and accumulated impairment losses.

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

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

(ii) Subsequent expenditure

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

(iii) Depreciation

Depreciation is calculated on the cost of an asset less its residual value and is recognized in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment. Land is not depreciated.

The estimated useful lives for property, plant and equipment are as follows: buildings and improvements: 1 to 47 years; machinery and equipment: 2 to 11 years; and other equipment: 3 to 15 years.

Depreciation methods, useful lives, and residual values are reviewed at each reporting date, with the effect of any changes in estimate accounted for on a prospective basis.

(k) Leases

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

(i) As a leasee

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

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

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

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

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

fixed payments, including in-substance fixed payments;
variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date.

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

there is a change in future lease payments arising from the change in an index or rate; or
there is a change of its assessment on whether it will exercise an extension or termination option; or
there is any lease modification in lease subject, scope of the lease or other terms.

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

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

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

The Company has elected not to recognize right-of-use assets and lease liabilities for short-term leases of office equipment. The Company recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

(1) Intangible assets

The Company’s intangible assets are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is recognized in profit or loss using the straight-line method over the following estimated useful lives: acquired computer software: 2 to 10 years; royalties for the use of patents: 20 to 30 years.

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

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

(m) Impairment of non-financial assets

The Company assesses at the end of each reporting date whether there is any indication that the carrying amounts of non-financial assets (other than inventories and deferred tax assets) may be impaired. If any such indication exists, then the asset’s recoverable amount is estimated. Goodwill is tested annually or when there are indications of impairment.

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

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

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount. Impairment losses are recognized in profit or loss. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis.

An impairment loss in respect of goodwill is not reversed. For other non-financial assets, an impairment loss is reversed only to the extent that the asset’s carrying amount that would have been determined (net of depreciation or amortization) had no impairment loss been recognized for the assets in prior years.

(n) Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

(i) Warranties

A provision for warranties is recognized when the underlying products or services are sold. This provision reflects the historical warranty claim rate and the weighting of all possible outcomes against their associated probabilities.

(ii) Sales return and allowances provision

A provision for sales returns and allowances is recognized when the underlying products are sold. This provision is estimated based on historical sales return and allowances data.

(iii) Decommissioning liabilities

Decommissioning liabilities arose from necessary demolition, disposal of right-of-use assets and expenses related to termination of leases according to lease contracts and are measured at the discounted value of the cash flows based on expected costs to settle the obligations.

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

(o) Revenue recognition

Revenue is measured based on the consideration to which the Company expects to be entitled in exchange for transferring goods to a customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control of a good to a customer.

(i) Sale of goods

The Company recognizes revenue when control of the goods has been transferred to the customer, being when the goods have been delivered to the customer, and there is no unfulfilled obligation that could affect the customer's acceptance of the goods. Delivery occurs when the customer has accepted the goods in accordance with the terms of sales, the risks of obsolescence and loss have been transferred to the customer, and the Company has objective evidence that all criteria for acceptance have been satisfied.

A receivable is recognized when the goods are delivered as this is the point in time that the Company has a right to an amount of consideration that is unconditional.

(ii) Financing components

The Company does not expect that the period between the transfer of the promised goods to the customer and payment by the customer exceeds one year. As a consequence, the Company does not adjust any of the transaction prices for the time value of money.

(p) Employee benefits

(i) Defined contribution plans

Obligations for contributions to defined contribution pension plans are expensed during the year in which employees render services.

(ii) Defined benefit plans

The Company's net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets. The discount rate for calculating the present value of the defined benefit obligation refers to the interest rate of high-quality government bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating the term of the related pension obligation. The defined benefit obligation is calculated annually by qualified actuaries using the projected unit credit method.

When the benefits of a plan are improved, the expense related to the increased obligations resulting from the services rendered by employees in the past years are recognized in profit or loss immediately.

The remeasurements of the net defined benefit liability (asset) comprise 1) actuarial gains and losses; 2) return on plan assets, excluding amounts included in net interest on the net defined benefit liability (asset); and 3) any change in the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability (asset). The remeasurements of the net defined benefit liabilities (asset) are recognized in other comprehensive income and then transferred to retained earnings.

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

The Company recognizes gains or losses on the curtailment or settlement of a defined benefit plan when the curtailment or settlement occurs. The gain or loss on curtailment or settlement comprises any resulting change in the fair value of plan assets and any change in the present value of the defined benefit obligation.

(iii) Short-term employee benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed during the period in which employees render services. A liability is recognized for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Company has a present legal or constructive obligation to make such payments as a result of past service provided by the employees, and the obligation can be estimated reliably.

(q) Income taxes

Income taxes comprise current taxes and deferred taxes. Current and deferred taxes are recognized in profit or loss unless they relate to items recognized directly in equity or other comprehensive income.

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

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

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

(i) Temporary differences on the initial recognition of assets and liabilities in a transaction that is not a business combination and at the time of the transaction 1) affects neither accounting nor taxable profits (losses) and 2) does not give rise to equal taxable and deductible temporary differences;

(ii) Temporary differences related to investments in subsidiaries and associates to the extent that the Company is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and

(iii) Taxable temporary differences arising on the initial recognition of goodwill.

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

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred tax assets and liabilities relate to income taxes levied by the same tax authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.

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

(r) Earnings per share ("EPS")

The basic and diluted EPS attributable to shareholders of the Company are disclosed in the parent-company-only financial statements. Basic EPS is calculated by dividing net income attributable to shareholders of the Company by the weighted-average number of common shares outstanding during the year. Diluted EPS is calculated as the net income attributable to shareholders of the Company divided by the weighted-average number of common shares outstanding during the year after adjustment for the effects of all potentially dilutive common shares such as employee compensation.

(s) Operating segments

The Company discloses the operating segment information in the consolidated financial statements. Therefore, the Company does not disclose the operating segment information in the parent-company-only financial statements.

(t) Treasury stock

When shares recognized as equity are repurchased, the amount of the consideration paid, including directly attributable costs, is recognized as a deduction from equity. Repurchased shares are classified as treasury stock. When treasury stock is sold or reissued subsequently, the amount received is recognized as an increase in equity, and the resulting surplus or deficit on the transaction is recognized in capital surplus or retained earnings (if the capital surplus is not sufficient to be written down).

5. Critical accounting judgments and key sources of estimation uncertainty

The preparation of the parent-company-only financial statements in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers requires management to make judgments and estimates about the future, including climate-related risks and opportunities, which affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates.

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

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

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

(a) Valuation of inventories

Inventories are measured at the lower of cost or net realizable value. The Company estimates the net realizable value of inventory, taking into account obsolescence and unmarketable items at the reporting date, and then writes down the cost of inventories to net realizable value. The net realizable value of the inventory is mainly determined based on assumptions of future demand within a specific time horizon, which could result in significant adjustments. Please refer to note 6(e) for more details of the valuation of inventories.

(b) Assessment of impairment of goodwill from investments in subsidiaries

Carrying amount of investments in subsidiaries includes goodwill arising from initial recognition. The assessment of impairment of goodwill requires the Company to make subjective judgments to identify cash-generating units, allocate the goodwill to relevant cash-generating units, and estimate the recoverable amount of relevant cash-generating units. Any changes in these estimates based on changed economic conditions or business strategies could result in significant adjustments in future years. Please refer to note 6(f) for more details of the assessment of impairment of goodwill.

6. Significant account disclosures

(a) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash on hand	$ 17	2
Demand deposits	218,908	396,887
Time deposits with original maturities less than three months	-	100,000
	$ 218,925	496,889

As of December 31, 2025 and 2024, the time deposits with original maturities of more than three months amounted to $350,000 and $1,280,000, respectively, which were classified as other financial assets—current.

(b) Financial assets and liabilities at fair value through profit or loss—current

	December 31, 2025	December 31, 2024
Financial assets mandatorily measured at fair value through profit or loss — current:
Foreign currency forward contracts	$ -	39
Corporate bonds	-	80,557
	$ -	80,596
Financial assets mandatorily measured at fair value through profit or loss — non-current:
Foreign unlisted preferred stocks	$ 17,668	-
		(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

	December 31, 2025	December 31, 2024
Financial liabilities held for trading—current:
Foreign currency forward contracts	$ (1,205)	(727)

Please refer to note 6(s) for the detail of the changes in fair value recognized in profit or loss.

The Company entered into derivative contracts to manage foreign currency exchange risk resulting from its operating activities. As of December 31, 2025 and 2024, the derivative financial instruments that did not conform to the criteria for hedge accounting consisted of the following:

	December 31, 2025
	Contract amount (in thousands)		Fair value	Currency (Sell / Buy)	Maturity period
Financial liabilities – foreign currency forward contracts	CNY	10,100	$ (1,205)	CNY / NTD	2026/01/26
	December 31, 2024
---	---	---	---	---	---
	Contract amount (in thousands)		Fair value	Currency (Sell / Buy)	Maturity period
Financial assets – foreign currency forward contracts	JPY	9,100	$ 39	JPY / NTD	2025/01/22
	December 31, 2024
---	---	---	---	---	---
	Contract amount (in thousands)		Fair value	Currency (Sell / Buy)	Maturity period
Financial liabilities – foreign	CNY	13,500	$ (481)	CNY / NTD	2025/02/04~2025/02/26
currency forward contracts	USD	750	(246)	USD / NTD	2025/01/03
			$ (727)

	December 31, 2025	December 31, 2024
Equity investments at fair value through other comprehensive income:
Domestic unlisted stocks	$ 37,040	37,611

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

The Company designated the abovementioned investments as at fair value through other comprehensive income because these equity investments represent those investments that the Company intends to hold for long-term strategic purposes.

No strategic investments were disposed for the years ended December 31, 2025 and 2024, and there were no transfers of any cumulative gain or loss within equity relating to these investments.

(d) Notes and accounts receivable

	December 31, 2025	December 31, 2024
Notes and accounts receivable	$ 956,576	520,367
Accounts receivable from related parties	349,657	277,537
	1,306,233	797,904
Less: loss allowance	(158)	(22,410)
	$ 1,306,075	775,494

As of December 31, 2025 and 2024, the Company applies the simplified approach to measure its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables (including related parties), as well as the incorporated forward-looking information. The loss allowance provision was determined as follows:

	December 31, 2025
	Gross carrying amount	Weighted-average loss rate	Loss allowance provision
Current	$ 1,201,707	0.0001%	1
Past due 1-90 days	104,484	0.1120%	116
Past due 91-180 days	11	90.9091%	10
Past due 181-365 days	31	100%	31
	$ 1,306,233		158
	December 31, 2024
---	---	---	---
	Gross carrying amount	Weighted-average loss rate	Loss allowance provision
Current	$ 730,355	0.0001%	1
Past due 1-90 days	45,080	0.0577%	25
Past due 91-180 days	666	87.2372%	581
Past due over 181 days	21,803	100%	21,803
	$ 797,904		22,410

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

Movements of the loss allowance for notes and accounts receivable (including related parties) were as follows:

	2025	2024
Balance at January 1	$ 22,410	21,417
Impairment loss recognized (reversed)	(5,857)	2,048
Write-off	(16,395)	(1,055)
Balance at December 31	$ 158	22,410

(e) Inventories

	December 31, 2025	December 31, 2024
Raw materials	$ 1,907,172	402,617
Work in process	532,411	113,926
Finished goods	2,024,890	664,952
Inventories in transit	143,868	49,949
	$ 4,608,341	1,231,444

For the years ended December 31, 2025 and 2024, the amounts of inventories recognized as cost of revenue were as follows:

	2025	2024
Cost of inventories sold	$ 8,394,394	6,107,544
(Reversal of) inventories write-downs	(6,000)	48,000
Loss (gain) on physical inventory	53	(9)
	$ 8,388,447	6,155,535

The above write-downs of inventories to net realizable value, and reversal of inventories write-downs due to price recovery, or sale or consumption of beginning inventories which has been written down, were included in cost of revenue.

(f) Investments accounted for using equity method

A summary of the Company’s investments accounted for using equity method at the reporting date was as follows:

	December 31, 2025	December 31, 2024
Subsidiaries	$ 965,252	922,290
Associates	1,771	990
	$ 967,023	923,280

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

(i) Investments in subsidiaries

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

(ii) Impairment test on goodwill

The excess of the cost of acquiring an investment in a subsidiary over the Company's equity interest of the net fair value of the investee's identifiable assets acquired and liabilities assumed at the date of acquisition should be recorded as goodwill, and any impairment of goodwill should be recognized as a deduction from the carrying amount of the investments accounted for using equity method. The movements of goodwill arising from business combination were allocated to the respective CGUs identified as the following subsidiaries:

| Balance at December 31, 2025 (the same as balance at January 1, 2025) | UD
$ 115,683 |
| --- | --- |
| Balance at December 31, 2024 (the same as balance at January 1, 2024) | UD
$ 115,683 |

Each CGU to which the goodwill is allocated represents the lowest level within the Company, at which the goodwill is monitored for internal management purpose. As of December 31, 2025 and 2024, based on the results of impairment tests conducted by the Company, the recoverable amount of CGU exceeded its carrying amount; as a result, no impairment loss was recognized. The recoverable amount of a CGU was determined based on the value in use.

With regard to the key assumptions used in the estimation of the recoverable amount, the annual discount rate for the years ended December 31, 2025 and 2024 were 14.23% and 13.77%, respectively, based on weighted average cost of capital. The cash flow projections were determined based on future financial budgets, covering a period of 5 years, and extrapolated with steady annual terminal growth rates for subsequent years, which were 1% for 2025 and 2024. The key assumptions abovementioned represent the management's forecast of the future for the related industry by considering the history information from internal and external sources.

(iii) Investments in associates

Name of Associates	December 31, 2025		December 31, 2024
	Percentage of voting rights	Carrying amount	Percentage of voting rights	Carrying amount
JoiiUp Technology Inc.	9.68 %	$ 1,771	10.35 %	990

Aggregate financial information of associates that were not individually material was summarized as follows. The financial information was included in the Company's parent-company-only financial statements.

	December 31, 2025	December 31, 2024
The aggregate carrying amount of associates that were not individually material	$ 1,771	990

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

	2025	2024
Attributable to the Company:
Net loss	$ (378)	(361)
Other comprehensive income	-	-
Total comprehensive loss	$ (378)	(361)

(g) Property, plant and equipment

The movements of cost, accumulated depreciation and impairment loss of the property, plant and equipment for the years ended December 31, 2025 and 2024 were as follows:

	Land	Buildings	Machinery and equipment	Other equipment	Construction in progress and equipment to be inspected	Total
Cost:
Balance at January 1, 2025	$ 556,498	327,552	205,486	59,055	2,495	1,151,086
Additions	-	2,861	8,140	5,508	20,603	37,112
Disposals	-	(19,346)	(5,831)	(4,091)	-	(29,268)
Reclassification	-	-	2,495	-	(2,495)	-
Balance at December 31, 2025	$ 556,498	311,067	210,290	60,472	20,603	1,158,930
Balance at January 1, 2024	$ 556,498	319,878	198,087	56,716	484	1,131,663
Additions	-	9,468	11,049	2,620	2,494	25,631
Disposals	-	(1,794)	(4,133)	(281)	-	(6,208)
Reclassification	-	-	483	-	(483)	-
Balance at December 31, 2024	$ 556,498	327,552	205,486	59,055	2,495	1,151,086
Accumulated depreciation and impairment loss:
Balance at January 1, 2025	$ -	100,814	156,024	50,697	-	307,535
Depreciation	-	15,709	14,309	4,349	-	34,367
Disposals	-	(19,346)	(5,831)	(4,091)	-	(29,268)
Balance at December 31, 2025	$ -	97,177	164,502	50,955	-	312,634
Balance at January 1, 2024	$ -	88,562	144,132	45,949	-	278,643
Depreciation	-	14,046	15,174	5,027	-	34,247
Disposals	-	(1,794)	(3,282)	(279)	-	(5,355)
Balance at December 31, 2024	$ -	100,814	156,024	50,697	-	307,535
Carrying amounts:
Balance at December 31, 2025	$ 556,498	213,890	45,788	9,517	20,603	846,296
Balance at December 31, 2024	$ 556,498	226,738	49,462	8,358	2,495	843,551

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

(h) Right-of-use assets

	Buildings	Other equipment	Total
Cost:
Balance at January 1, 2025	$ 23,459	19,164	42,623
Additions	16,628	3,916	20,544
Derecognition	(16,714)	(3,876)	(20,590)
Balance at December 31, 2025	$ 23,373	19,204	42,577
Balance at January 1, 2024	$ 20,483	17,097	37,580
Additions	6,244	15,903	22,147
Decommissioning liabilities	500	-	500
Derecognition	(3,768)	(13,836)	(17,604)
Balance at December 31, 2024	$ 23,459	19,164	42,623
Accumulated depreciation:
Balance at January 1, 2025	$ 17,289	3,711	21,000
Depreciation	7,536	5,507	13,043
Derecognition	(16,714)	(3,876)	(20,590)
Balance at December 31, 2025	$ 8,111	5,342	13,453
Balance at January 1, 2024	$ 12,295	12,242	24,537
Depreciation	6,669	5,305	11,974
Derecognition	(1,675)	(13,836)	(15,511)
Balance at December 31, 2024	$ 17,289	3,711	21,000
Carrying amounts:
Balance at December 31, 2025	$ 15,262	13,862	29,124
Balance at December 31, 2024	$ 6,170	15,453	21,623

Assessed costs for building restorations were recognized in right-of-use assets, wherein related decommissioning liabilities were included in provisions. Please refer to note 6(l) for further details.

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

(i) Intangible assets

(i) The details of costs, accumulated amortization and impairment loss of intangible assets for the years ended December 31, 2025 and 2024 were as follows:

	Computer software	Royalties for the use of patents	Total
Cost:
Balance at January 1, 2025	$ 92,692	3,841	96,533
Additions	1,870	229	2,099
Derecognition	(5,714)	-	(5,714)
Balance at December 31, 2025	$ 88,848	4,070	92,918
Balance at January 1, 2024	$ 114,301	3,341	117,642
Additions	3,350	500	3,850
Reclassification (note)	1,582	-	1,582
Derecognition	(26,541)	-	(26,541)
Balance at December 31, 2024	$ 92,692	3,841	96,533
Accumulated amortization and impairment loss:
Balance at January 1, 2025	$ 66,917	1,232	68,149
Amortization	8,658	888	9,546
Derecognition	(5,714)	-	(5,714)
Balance at December 31, 2025	$ 69,861	2,120	71,981
Balance at January 1, 2024	$ 82,879	1,058	83,937
Amortization	10,579	174	10,753
Derecognition	(26,541)	-	(26,541)
Balance at December 31, 2024	$ 66,917	1,232	68,149
Carrying amounts:
Balance at December 31, 2025	$ 18,987	1,950	20,937
Balance at December 31, 2024	$ 25,775	2,609	28,384

Note: Reclassification from other non-current assets to intangible assets.

(ii) Amortization

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

	2025	2024
Cost of revenue	$ 1,300	2,782
Operating expenses	$ 8,246	7,971

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

(j) Short-term borrowings

The details of short-term borrowings were as follows:

	December 31, 2025	December 31, 2024
Unsecured bank loans	$ 1,618,675	288,508
Interest rate interval	1.95%~4.73%	5.27%~5.45%

(k) Lease liabilities

The carrying amounts of lease liabilities were as follows:

	December 31, 2025	December 31, 2024
Current	$ 10,467	9,361
Non-current	$ 19,010	12,147

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

The amounts recognized in profit or loss were as follows:

	2025	2024
Interest on lease liabilities	$ 943	505
Variable lease payments not included in the measurement of lease liabilities	$ 6,216	1,470
Expenses relating to short-term leases	$ 585	398

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

	2025	2024
Total cash outflow for leases	$ 20,319	14,299

(i) Real estate leases

The Company leases buildings for its office and warehouses. The leases typically run for a period of two to five years. Among these leases, the rent payment on some leases of warehouses is calculated monthly based on the area being used.

(ii) Other leases

The Company leases office and transportation equipment, with lease terms of one to six years. Among these leases, the Company leases some office equipment with contract terms within one year. These leases are short-term and the Company has elected not to recognize right-of-use assets and lease liabilities for these leases.

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

(l) Provisions

	Warranties	Sales returns and allowances	Decommissioning liabilities	Total
Balance at January 1, 2025	$ 3,927	2,979	500	7,406
Provisions made	2,571	22,011	-	24,582
Amount utilized	(1,505)	(22,063)	-	(23,568)
Balance at December 31, 2025	$ 4,993	2,927	500	8,420
Balance at January 1, 2024	$ 6,192	2,116	-	8,308
Provisions made	712	22,474	500	23,686
Amount utilized	(2,977)	(21,611)	-	(24,588)
Balance at December 31, 2024	$ 3,927	2,979	500	7,406

(i) Warranties

The provision for warranties is made based on the number of units sold currently under warranty, historical rates of warranty claim on those units, and cost per claim to satisfy the warranty obligation. The Company reviews the estimation basis on an ongoing basis and revises it when appropriate.

(ii) Sales returns and allowances

Expected sales returns and allowances are estimated based on historical experience.

(iii) Decommissioning liabilities

Decommissioning liabilities are measured at the discounted value of the cash flows based on expected costs to settle the obligations.

(m) Employee benefits

(i) Defined benefit plans

The reconciliations between the present value of defined benefit obligations and the net defined benefit liabilities for defined benefit plans were as follows:

	December 31, 2025	December 31, 2024
Present value of defined benefit obligations	$ 60,422	53,170
Fair value of plan assets	(34,225)	(33,551)
	26,197	19,619
Effects of the asset ceiling	-	-
Net defined benefit liabilities	$ 26,197	19,619

The Company makes defined benefit plan contributions to the pension fund account at Bank of Taiwan that provides pension benefits for its employees upon retirement. The Company also established pension funds in accordance with the Regulations Governing the Management, Investment, and Distribution of the Employees' Retirement Fund Established by a Profit-seeking Enterprise, which are deposited monthly in the designated financial institutions. The plans entitle a retired employee to receive a payment based on years of service and average salary for the six months prior to the employee's retirement.

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

1) Composition of plan assets

In accordance with the requirements of the Labor Standards Law, the Company’s pension fund account at Bank of Taiwan is managed and administered by the Bureau of Labor Funds of the Ministry of Labor (the Bureau of Labor Funds). According to the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund, with regard to the utilization of the Fund, minimum earnings shall be no less than the earnings attainable from two-year time deposits, with interest rates offered by local banks.

As of December 31, 2025 and 2024, the Company’s labor pension fund account balance at Bank of Taiwan amounted to $34,225 and $33,551, respectively. Please refer to the website of the Bureau of Labor Funds for information on the labor pension fund assets including the asset portfolio and yield of the fund.

2) Movements in present value of defined benefit obligations

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

	2025	2024
Defined benefit obligations at January 1	$ 53,170	55,129
Current service costs and interest expense	1,132	896
Remeasurement on the net defined benefit liabilities (assets)
—Actuarial loss (gain) arising from changes in financial assumptions	1,446	(2,146)
—Actuarial loss arising from experience adjustments	7,307	472
Benefits paid by the plan	(2,633)	(1,181)
Defined benefit obligations at December 31	$ 60,422	53,170

3) Movements of fair value of plan assets

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

	2025	2024
Fair value of plan assets at January 1	$ 33,551	30,880
Interest income	670	505
Remeasurement on the net defined benefit liabilities (assets)
—Return on plan assets (excluding current interest expense)	2,181	2,952
Contributions by the employer	456	395
Benefits paid by the plan	(2,633)	(1,181)
Fair value of plan assets at December 31	$ 34,225	33,551

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

4) Changes in the effect of the asset ceiling

There was no effect of the asset ceiling.

5) Expenses recognized in profit or loss

The expenses recognized in profit or loss were as follows:

	2025	2024
Net interest expense on the net defined benefit liability	$ 462	391
Cost of revenue	$ 127	125
Selling expenses	159	121
Administrative expenses	83	70
Research and development expenses	93	75
	$ 462	391

6) Remeasurement of the net defined benefit liabilities recognized in other comprehensive income

The remeasurement of the net defined benefit liabilities recognized in other comprehensive income were as follows:

	2025	2024
Cumulative amount at January 1	$ 21,399	26,025
Recognized during the period	6,577	(4,626)
Cumulative amount at December 31	$ 27,976	21,399

7) Actuarial assumptions

The principal assumptions of the actuarial valuation were as follows:

	December 31, 2025	December 31, 2024
Discount rate	1.750 %	2.000 %
Future salary increases rate	3.000 %	3.000 %

The Company expects to make contribution of $462 to the defined benefit plans in the year following December 31, 2025.

The weighted average duration of the defined benefit plans is 12.65 years.

8) Sensitivity analysis

When calculating the present value of the defined benefit obligations, the Company uses judgments and estimations to determine the actuarial assumptions for each measurement date, including discount rates, employee turnover rates and future salary changes. Any changes in the actuarial assumptions may significantly impact the amount of the defined benefit obligations.

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

The following table summarizes the impact of a change in the assumptions on the present value of the defined benefit obligation on December 31, 2025 and 2024.

	Increase (decrease) in present value of defined benefit obligations
	0.25% Increase	0.25% Decrease
December 31, 2025
Discount rate	(1,446)	1,479
Future salary change rate	1,422	(1,400)
December 31, 2024
Discount rate	(1,369)	1,416
Future salary change rate	1,371	(1,339)

Each sensitivity analysis considers the change in one assumption at a time, leaving the other assumptions unchanged. This approach shows the isolated effect of changing one individual assumption but does not take into account that some assumptions are related. The method used to carry out the sensitivity analysis is the same as the calculation of the net defined benefit liabilities recognized in the balance sheets.

In 2025, the method and assumptions used to carry out the sensitivity analysis was the same as in the prior year.

(ii) Defined contribution plans

The Company contributes monthly an amount equal to 6% of each employee’s monthly wages to the employee’s individual pension fund account at the Bureau of Labor Insurance in accordance with the provisions of the Labor Pension Act. Under this defined contribution plan, the Company has no legal or constructive obligation to pay additional amounts after contributing a fixed amount to the Bureau of Labor Insurance.

For the years ended December 31, 2025 and 2024, the Company recognized pension expenses of $21,413 and $20,596, respectively, in relation to the defined contribution plans.

(n) Income taxes

(i) The components of income tax expense were as follows:

	2025	2024
Current income tax expense
Current period	$ 174,849	50,188
Adjustments for prior years	(1,212)	(2,633)
	173,637	47,555
Deferred income tax benefit
Origination and reversal of temporary differences	(8,210)	(12,005)
Income tax expense	$ 165,427	35,550

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

The components of income tax expense (benefit) recognized in other comprehensive income were as follows:

	2025	2024
Items that will not be reclassified subsequently to profit or loss:
Remeasurement of defined benefit plans	$ (1,314)	924

Reconciliations of income tax expense and income before income tax were as follows:

	2025	2024
Income before income tax	$ 1,025,302	314,506
Income tax using the Company’s statutory tax rate	$ 205,060	62,901
Investment income recorded under equity method	(8,052)	(5,594)
Investment tax credits	(20,527)	(14,524)
Changes in unrecognized temporary differences	(7,168)	(14,295)
Prior-year adjustments	(1,212)	(2,633)
Surtax on undistributed earnings	1,140	3,304
Others	(3,814)	6,391
	$ 165,427	35,550

(ii) Deferred income tax assets and liabilities

1) Unrecognized deferred income tax assets and liabilities

	December 31, 2025	December 31, 2024
Unrecognized deferred income tax assets:
Aggregate deductible temporary differences associated with investments in subsidiaries	$ 6,343	8,618
Deductible temporary differences	788	788
	$ 7,131	9,406
	December 31, 2025	December 31, 2024
Unrecognized deferred income tax liabilities:
Aggregate deductible temporary differences associated with investments in subsidiaries	$ 89,602	84,709

As the Company is able to control the timing of the reversal of the temporary differences associated with investments in its subsidiaries as of December 31, 2025 and 2024, and Management believes that it is probable that the temporary differences will not reverse in the foreseeable future, such temporary differences are not recognized as deferred income tax assets and liabilities.

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

2) Recognized deferred income tax assets and liabilities

Changes in the amount of deferred income tax assets and liabilities were as follows:

Deferred income tax assets:

	Defined benefit plans	Provision for inventory obsolescence	Warranty provision	Unrealized impairment loss on financial assets	Others	Total
Balance at January 1, 2025	$ 3,924	108,645	785	10,000	19,720	143,074
Recognized in profit or loss	2	(1,200)	213	-	9,237	8,252
Recognized in other comprehensive income	1,314	-	-	-	-	1,314
Balance at December 31, 2025	$ 5,240	107,445	998	10,000	28,957	152,640
Balance at January 1, 2024	$ 4,850	99,045	1,238	10,000	17,167	132,300
Recognized in profit or loss	(2)	9,600	(453)	-	2,553	11,698
Recognized in other comprehensive loss	(924)	-	-	-	-	(924)
Balance at December 31, 2024	$ 3,924	108,645	785	10,000	19,720	143,074

Deferred income tax liabilities:

	Others
Balance at January 1, 2025	$ -
Recognized in profit or loss	42
Balance at December 31, 2025	$ 42
Balance at January 1, 2024	$ 307
Recognized in profit or loss	(307)
Balance at December 31, 2024	$ -

(iii) The Company’s income tax returns for the years through 2023 have been examined and approved by the R.O.C. income tax authorities.

(o) Capital and other equity

(i) Common stock

As of December 31, 2025 and 2024, the Company’s authorized shares of common stock consisted of 2,000,000 thousand shares, of which 128,129 and 128,729 thousand shares, respectively, were issued. The par value of the Company’s common stock is NTD 10 per share. The Company has reserved 15,000 thousand shares for the exercise of employee stock options.

The movements in outstanding shares of common stock were as follows (in thousands of shares):

	Shares of common stock
	2025	2024
Balance at January 1	128,729	122,688
Capital increase in cash	-	6,041
Purchase of treasury stock	(600)	-
Balance at December 31	128,129	128,729

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

1) In order to seek opportunities for technical cooperation and strategic alliances with domestic and international partners and enrich the necessary working capital in response to develop long-term operations, the Company’s Board of Directors meeting held on February 23, 2024 resolved to raise capital through private placement. The effective date of capital increase was on March 1, 2024 and the relevant statutory registration procedures have been completed on April 1, 2024. Details were summarized were as follows:

a) Shares issued: 6,041 thousand shares of common stock
b) Issue price: NTD 48 per share
c) Total proceeds received by the Company: $289,968
d) Investor of the private placement: Advantech Corporate Investment
e) Rights and obligations: All the rights and obligations of shares of common stock through the private placement (the “Private Placement Shares”) shall be the same as those of shares of common stock issued and outstanding. However, except for selling to specific investors defined in Article 43-8 of the Securities and Exchange Act, the Private Placement Shares cannot be resold during a three-year period from delivery date. After three years from delivery date, according to the Securities and Exchange Act and related regulations, the Company shall obtain a letter issued by Taiwan Stock Exchange Corporation (“TWSE”) acknowledging that the Private Placement Shares have met the standards for TWSE listing before it may file with FSC for retroactive handling of public issuance procedures. Thereafter, the Company can apply for listing in TWSE of Private Placement Shares.
f) Others: The Company recognized capital surplus of $229,558, resulting from the issuance price of Private Placement Shares in excess of common stock’s par value.

(ii) Treasury stock

On April 17, 2025, in order to maintain the Company’s credit and shareholders’ rights and interests, the Company’s Board of Directors resolved to repurchase its own common stock of 1,000 thousand shares as treasury stock, constituting 0.78% of the Company’s issued common stock, from April 22, 2025 to June 21, 2025 at the repurchase price from NTD 32 to NTD 55. On June 19, 2025, considering the stability in the international financial market and the stock price during the execution period, and the stock price exceeds the maximum repurchase price of NTD 55, the abovementioned repurchase was not fully completed, wherein 600 thousand shares of treasury stock, amounting to $28,793, were repurchased.

On July 24, 2025, the Company’s Board of Directors resolved to retire 600 thousand shares of treasury stock, with the effective date of capital reduction set on July 28, 2025, and the related registration process has been completed.

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

(iii) Capital surplus

	December 31, 2025	December 31, 2024
Paid-in capital in excess of par value	$ 1,059,299	1,096,441
Employee stock options	12,901	12,901
Treasury stock transactions	-	3,781
Restricted stock to employees	26,499	26,499
Changes in equity of associates accounted for using equity method	16,920	15,761
Claim for the disgorgement right	36	36
	$ 1,115,655	1,155,419

Pursuant to the Company Act, any realized capital surplus is initially used to cover an accumulated deficit, and the balance, if any, could be transferred to common stock as stock dividends based on the original shareholding ratio or distributed as cash dividends based on a resolution approved by the shareholders. Realized capital surplus includes the premium derived from the issuance of shares of stock in excess of par value and donations from shareholders received by the Company. In accordance with the Regulations Governing the Offering and Issuance of Securities by Securities Issuers, distribution of stock dividends from capital surplus in any one year shall not exceed 10% of paid-in capital.

(iv) Retained earnings

1) Legal reserve

If a company has no accumulated deficit, it may, pursuant to a resolution approved by the shareholders, distribute its legal reserve to its shareholders by issuing new shares or by distributing cash for the portion in excess of 25% of the paid in capital.

2) Special reserve

In accordance with the requirements issued by the FSC, a portion of earnings shall be allocated as special reserve during earnings distribution. The Company shall make allocation of special reserve for the amount of the current-period total net reduction of other shareholders' equity. An equivalent amount of special reserve shall be allocated from the after-tax net profit in the period, plus items other than the after-tax net profit in the period that are included in the undistributed current-period earnings and the undistributed prior-period earnings. A portion of the undistributed prior-period earnings shall be reclassified to special earnings reserve (which does not qualify for earnings distribution) to account for cumulative changes to the net reduction of other shareholders' equity pertaining to prior periods. The amounts of subsequent reversals pertaining to the net reduction of other shareholders' equity shall qualify for additional distributions.

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

3) Earnings distribution

The Company’s Articles of Incorporation stipulate that at least 10% of annual net income, after deducting accumulated deficit, if any, must be retained as legal reserve until such retention equals the amount of paid in capital. In addition, a special reserve shall be set aside in accordance with applicable laws and regulations. The remaining balance, together with the unappropriated earnings from the previous years, after retaining a certain portion of it for business considerations, can be distributed as dividends to shareholders. If dividends are distributed by issuing new shares, the distribution shall be approved by the shareholders’ meeting. If dividends are distributed in the form of cash, a resolution shall be adopted by a majority vote at a meeting of the board of directors attended by more than two-thirds of the total number of director; and in addition thereto a report of such distribution shall be submitted to the shareholders’ meeting. Except for the distribution of capital surplus and legal reserve in accordance with applicable laws and regulations, the Company cannot distribute any earnings when there are no retained earnings.

Since the Company operates in an industry experiencing rapid change and development, earnings are distributed in consideration of the current year’s earnings, the overall economic environment, related laws and decrees, as well as the Company’s long term development and stability in its financial position. The Company has adopted a balance dividend policy, in which a cash dividend comprises at least 10% of the total dividend distribution.

The cash dividends appropriations of 2024 and 2023 earnings were approved by the Company’s Board of Directors on February 20, 2025 and April 17, 2024, respectively, wherein the Company’s Board of Directors resolved to distribute cash dividends of $32,182 ($0.25 per share) from capital surplus. The resolved appropriations were as follows:

	2024		2023
	Dividends per share (in NTD)	Amount	Dividends per share (in NTD)	Amount
Dividends per share:
Cash dividends	$ 1.95	251,022	3.15	405,497

The cash dividends appropriation of 2025 earnings were approved by the Company’s Board of Directors on February 25, 2026. The resolved appropriation was as follows:

	2025
	Dividends per share (in NTD)	Amount
Dividends per share:
Cash dividends	$ 4.50	576,582

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

(v) Other equity items (net after tax)

1) Foreign currency translation differences

	2025	2024
Balance at January 1	$ (13,424)	(43,434)
Foreign exchange differences arising from translation of foreign operations	(18,888)	30,010
Balance at December 31	$ (32,312)	(13,424)

2) Unrealized gains (losses) on financial assets measured at fair value through other comprehensive income

	2025	2024
Balance at January 1	$ (43,619)	(46,050)
Share of other comprehensive income of subsidiaries	68	69
Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income	(571)	2,362
Balance at December 31	$ (44,122)	(43,619)

(p) Earnings per share ("EPS")

(i) Basic earnings per share

	2025	2024
Net income attributable to shareholders of the Company	$ 859,875	278,956
Weighted-average number of ordinary shares outstanding (in thousands)	128,343	127,739
Basic earnings per share (in New Taiwan Dollar)	$ 6.70	2.18

(ii) Diluted earnings per share

	2025	2024
Net income attributable to shareholders of the Company	$ 859,875	278,956
Weighted-average number of ordinary shares outstanding (in thousands)	128,343	127,739
Effect of dilutive potential common stock (in thousand):
Remuneration to employees	1,166	895
Weighted-average number of ordinary shares outstanding (including effect of dilutive potential common stock)	$ 129,509	128,634
Diluted earnings per share (in New Taiwan Dollar)	$ 6.64	2.17

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

(q) Revenue from contracts with customers

(i) Disaggregation of revenue

	2025	2024
Major products:
Flash memory cards	$ 4,700,492	4,108,158
Memory modules	5,385,847	2,849,633
Others	153,635	111,219
	$ 10,239,974	7,069,010

(ii) Contract balances

	December 31, 2025	December 31, 2024	January 1, 2024
Notes and accounts receivable (including related parties)	$ 1,306,233	797,904	732,880
Less: loss allowance	(158)	(22,410)	(21,417)
	$ 1,306,075	775,494	711,463
	December 31, 2025	December 31, 2024	January 1, 2024
Contract liabilities	$ 43,370	32,469	26,858

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

The amounts of revenue recognized for the years ended December 31, 2025 and 2024 that were included in the contract liability balances at January 1, 2025 and 2024, were $32,207 and $26,855, respectively.

(r) Remuneration to employees and directors

The Company's amended Article of Incorporation approved by the shareholders' meeting held on May 22, 2025 requires that earnings shall first to be offset against any deficit, then, a minimum of 4% will be distributed as remuneration to its employees, of which no less than 5% should be distributed to non-executive employees, and no more than 1.4% to its directors. Employees who are entitled to receive the abovementioned employee remuneration, in shares or cash, include the employees of the subsidiaries of the Company who meet certain specific requirement. The Company's Article of Incorporation before amendment requires that earnings shall first to be offset against any deficit, then, a minimum of 4% will be distributed as remuneration to its employees and no more than 1.4% to its directors. Employees who are entitled to receive the abovementioned employee remuneration, in shares or cash, include the employees of the subsidiaries of the Company who meet certain specific requirement.

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

For the years ended December 31, 2025 and 2024, the Company estimated its remuneration to employees amounting to $122,066 (of which $42,720 was distributed to non-executive employee), and $32,5599, respectively, and the remuneration to directors amounting to $16,291 and $4,927, respectively. The abovementioned estimated amounts are calculated based on the net profits before tax of each period (excluding the remuneration to employees and directors), multiplied by a certain percentage of the remuneration to employees and directors. The estimations are recognized as operating expenses. If the actual amounts differ from the estimated amounts, the differences shall be accounted as changes in accounting estimates and recognized as profit or loss in following year.

The abovementioned estimated remuneration to employees and directors for 2025 and 2024 is the same as the amount approved by the Board of Directors and will be paid in cash. Related information is available on the Market Observation Post System website of the Taiwan Stock Exchange.

(s) Non-operating income and loss

(i) Interest income

	2025	2024
Interest income from bank deposits	$ 20,234	26,095
Interest income from corporate bonds	3,419	1,437
	$ 23,653	27,532

(ii) Other gains and losses, net

	2025	2024
Gains (losses) on disposal of property, plant and equipment	$ 265	(853)
Gains on lease modifications	-	40
Foreign currency exchange gains	35,484	4,659
Losses on financial assets and liabilities at fair value through profit or loss	(10,457)	(5,605)
Accrued expenses and advance receipts reclassified to other income	-	6,400
Compensation income	10,913	-
Others	4,221	6,496
	$ 40,426	11,137

(iii) Finance costs

	2025	2024
Interest expense from bank loans	$ 27,502	13,889
Interest expense from lease liabilities	943	505
	$ 28,445	14,394

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

(t) Financial instruments

(i) Categories of financial instruments

1) Financial assets

	December 31, 2025	December 31, 2024
Financial assets at fair value through profit or loss	$ 17,668	80,596
Financial assets at fair value through other comprehensive income	37,040	37,611
Financial assets measured at amortized cost:
Cash and cash equivalents	218,925	496,889
Notes and accounts receivable (including related parties)	1,306,075	775,494
Other financial assets (including current and non-current)	385,226	1,318,221
Subtotal	1,910,226	2,590,604
Total	$ 1,964,934	2,708,811

2) Financial liabilities

	December 31, 2025	December 31, 2024
Financial liabilities at fair value through profit or loss	$ 1,205	727
Financial liabilities measured at amortized cost:
Short-term borrowings	1,618,675	288,508
Notes and accounts payable (including related parties)	1,234,884	765,686
Other payables (including related parties)	598,911	275,280
Lease liabilities (including current and non-current)	29,477	21,508
Subtotal	3,481,947	1,350,982
Total	$ 3,483,152	1,351,709

(ii) Fair value information

Financial instruments not measured at fair value

The Company considers that the carrying amounts of financial assets and financial liabilities measured at amortized cost approximate their fair values.

Financial instruments measured at fair value

The fair value of financial assets and liabilities at fair value through profit and loss and financial assets at fair value through other comprehensive income are measured on a recurring basis.

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

The table below analyzes financial instruments that are measured at fair value subsequent to initial recognition, grouped into Levels 1 to 3 based on the degree to which the fair value is observable. The different levels have been defined as follows:

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

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

c) Level 3: inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

	December 31, 2025
	Carrying amount	Fair Value
		Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss – non-current:
Foreign unlisted preferred stocks	$ 17,668	-	-	17,668	17,668
Financial assets at fair value through other comprehensive income – non-current:
Domestic unlisted stocks	$ 37,040	-	-	37,040	37,040
Financial liabilities at fair value through profit or loss – current:
Derivatives – foreign currency forward contracts	$ 1,205	-	1,205	-	1,205
	December 31, 2024
---	---	---	---	---	---
	Carrying amount	Fair Value
		Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss – current:
Corporate bonds	$ 80,557	80,557	-	-	80,557
Derivatives – foreign currency forward contracts	39	-	39	-	39
	$ 80,596	80,557	39	-	80,596
Financial assets at fair value through other comprehensive income – non-current:
Domestic unlisted stocks	$ 37,611	-	-	37,611	37,611
Financial liabilities at fair value through profit or loss – current:
Derivatives – foreign currency forward contracts	$ 727	-	727	-	727

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

(iii) Valuation techniques used in fair value measurement

1) Non-derivative financial instruments

The fair value of financial instruments (e.g. corporate bonds held by the Company) traded in active liquid markets is determined with reference to quoted market prices.

Except for the abovementioned financial instruments traded in an active market, the fair value of other financial instruments are based on the valuation techniques or the quotation from counterparty. The fair value using valuation techniques refers to the current fair value of other financial instruments with similar conditions and characteristics, or using a discounted cash flow method, or other valuation techniques which include model calculating with observable market data at the reporting date.

The fair value of preferred stock is determined based on the discounted cash flow model. The fair value of the unlisted stock held by the Company is estimated by using the market approach and is determined by reference to valuations of similar companies, third-party quotation, and recent financing and operating activities. The significant unobservable inputs is primarily the liquidity discounts. No quantitative information is disclosed due to that the possible changes in liquidity discounts would not cause significant potential financial impact.

2) Derivative financial instruments

The fair value of derivative financial instruments is determined using a valuation technique, generally accepted by market participants. The fair value of foreign currency forward contracts is usually determined by the forward currency exchange rate.

(iv) Transfers between levels of the fair value hierarchy

There were no transfers among fair value hierarchies for the years ended December 31, 2025 and 2024.

(v) Movement in financial assets included in Level 3 of fair value hierarchy

	2025	2024
Balance, beginning of year	$ 37,611	35,034
Purchased	16,255	3,965
Disposal	-	(3,750)
Gains (losses) recognized in other comprehensive income, and presented in unrealized gains (losses) on financial assets measured at fair value through other comprehensive income	(571)	2,362
Gains recognized in profit or loss, and presented in valuation gains on financial assets measured at fair value through other comprehensive income	1,413	-
Balance, end of year	$ 54,708	37,611

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

(u) Financial risk management

The Company is exposed to credit risk, liquidity risk, and market risk (including currency risk, interest rate risk, and other market price risk). The Company has disclosed the information on exposure to the aforementioned risks and the Company’s policies and procedures to measure and manage those risks as well as the quantitative information below.

The Company’s management monitors and reviews financial activities in accordance with procedures required by relevant regulations and internal controls. Internal auditors undertake both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Company’s Board of Directors.

The Company’s Board of Directors is responsible for developing and monitoring the Company’s risk management policies. The Company’s risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor adherence to the controls. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s operations.

(i) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty of a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s cash and cash equivalents, derivative instruments, receivables from customers and time deposits classified as other financial assets. As of December 31, 2025 and 2024, the Company’s maximum exposure to credit risk amounted to $1,964,934 and $2,708,811, respectively.

The Company maintains bank deposits and enters into derivative transactions with various reputable financial institutions; therefore, the exposure related to potential default by those counter-parties is not considered significant.

In order to reduce credit risk of accounts receivable, the Company has established a credit policy under which each customer is analyzed individually for creditworthiness for the purpose of setting the credit limit. Additionally, the Company continuously evaluates the credit quality of its customers and utilizes its insurance to minimize the credit risk. As of December 31, 2025 and 2024, the Company has insured credit insurance that cover accounts receivable amounting to $553,245 and $288,538, respectively. When the debtors are in default, the Company will receive 90% of the credit insurance.

The Company believes that there is no significant concentration of credit risk due to the Company’s large number of customers and their wide geographical spread.

(ii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in settling its financial liabilities by delivering cash or other financial assets. The Company manages liquidity risk by monitoring regularly the current and mid- to long-term cash demand, maintaining adequate cash and banking facilities, and ensuring compliance with the terms of the loan agreements. As of December 31, 2025 and 2024, the Company had unused credit facilities of $13,305 and $1,389,757, respectively.

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

The table below summarizes the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments.

	Carrying amount	Contractual cash flows	Within 1 year	More than 1 year
December 31, 2025
Non-derivative financial liabilities:
Short-term borrowings	$ 1,618,675	(1,628,876)	(1,628,876)	-
Notes and accounts payable (including related parties)	1,234,884	(1,234,884)	(1,234,884)	-
Other payables (including related parties)	598,911	(598,911)	(598,911)	-
Lease liabilities	29,477	(30,947)	(11,257)	(19,690)
Derivative financial instruments:
Foreign currency forward contracts:
Inflow	-	44,211	44,214	-
Outflow	1,205	(45,416)	(45,419)	-
December 31, 2024
Non-derivative financial liabilities:
Short-term borrowings	$ 288,508	(289,858)	(289,858)	-
Notes and accounts payable (including related parties)	765,686	(767,686)	(767,686)	-
Other payables (including related parties)	275,280	(275,280)	(275,280)	-
Lease liabilities	21,508	(22,522)	(9,891)	(12,631)
Derivative financial instruments:
Foreign currency forward contracts:
Inflow	-	84,502	84,502	-
Outflow	727	(85,229)	(85,229)	-

The Company does not expect that the cash flows included in the maturity analysis would occur significantly earlier or at significantly different amounts.

(iii) Market risk

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

The Company utilizes derivative financial instruments to manage market risk. All such transactions are carried out within the guidelines set by the Company’s Board of Directors.

1) Foreign currency risk

The Company utilizes foreign currency forward contracts to hedge its foreign currency exposure with respect to its sales and purchases. The maturity dates of derivative financial instruments the Company entered into were less than six months and did not conform to the criteria for hedge accounting. These financial instruments help to reduce, but do not eliminate, the impact of foreign currency exchange rate movements.

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

The Company’s exposure to foreign currency risk arises from cash and cash equivalents, notes and accounts receivable (including related parties), notes and accounts payable (including related parties), other financial assets (including current and non-current), other payables (including related parties), and loans and borrowings that are denominated in a currency other than the functional currency of the Company. At the reporting date, the carrying amounts of the Company’s significant monetary assets and liabilities denominated in a currency other than the functional currency of the Company and their respective sensitivity analysis were as follows:

(Amounts in Thousands of New Taiwan Dollar)

	December 31, 2025
	Foreign currency (in thousands)	Exchange rate	NTD (in thousands)	Change in magnitude	Pre-tax effect on profit or loss (in thousands)
Financial assets
Monetary items
USD	$ 41,396	31.420	1,300,662	1 %	13,007
CNY	20,498	4.497	92,180	1 %	922
Financial liabilities
Monetary items
USD	62,435	31.420	1,961,708	1 %	19,617
CNY	208	4.497	935	1 %	9
	December 31, 2024
---	---	---	---	---	---
	Foreign currency (in thousands)	Exchange rate	NTD (in thousands)	Change in magnitude	Pre-tax effect on profit or loss (in thousands)
Financial assets
Monetary items
USD	$ 27,514	32.785	902,046	1 %	9,020
CNY	19,111	4.492	85,847	1 %	858
JPY	12,795	0.210	2,687	1 %	27
Financial liabilities
Monetary items
USD	26,703	32.785	875,458	1 %	8,755
CNY	2,841	4.492	12,762	1 %	128
JPY	120	0.210	25	1 %	-

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

As the Company deals in diverse foreign currencies, gains and losses on foreign exchange were summarized as a single amount. The aggregate of realized and unrealized foreign exchange gains for the years ended December 31, 2025 and 2024 were $35,484 and $4,659, respectively.

2) Interest rate risk

The Company’s bank loans carried floating interest rates. To manage the interest rate risk, the Company periodically assesses the interest rates of bank loans and maintains good relationships with financial institutions to obtain lower financing costs. The Company also strengthens the management of working capital to reduce the dependence on bank loans, as well as the risk arising from fluctuation of interest rates.

If interest rates had been 100 basis points (1%) higher/lower, with all other variables held constant, pre-tax income for the years ended December 31, 2025 and 2024 would have been $16,187 and $2,885, respectively, lower/higher, which mainly resulted from the borrowings with floating interest rates.

3) Other market price risk

The Company has long-term investments in unlisted stocks, which the Company does not actively participate in trading. The Company anticipates that there is no significant market risk related to the investments.

(v) Capital management

In consideration of the industry dynamics and future developments, as well as external environment factors, the Company maintains an optimal capital structure to enhance long-term shareholder value by managing its capital in a manner to ensure that it has sufficient and necessary financial resources to fund its working capital needs, research and development expenses, dividend payments, and other business requirements for continuing operations and to reward shareholders and take into consideration the interests of other shareholders. The Company monitors its capital through reviewing the liability-to-equity ratio periodically.

The Company’s liability-to-equity ratios at the end of each reporting period were as follows:

	December 31, 2025	December 31, 2024
Total liabilities	$ 3,733,490	1,450,859
Total equity	$ 5,032,350	4,507,967
Liability-to-equity ratio	74.19 %	32.18 %

The Company increased its notes and accounts payable due to the increase of stock level to meet customer demand. It also resulted in the increasing of current liability-to-equity ratio.

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

(w) Investing and financing activities not affecting current cash flow

(i) For acquisition of right-of-use assets under operating lease for the years ended December 31, 2025 and 2024, please refer to note 6(h).

(ii) Reconciliation of liabilities arising from financing activities was as follows:

	January 1, 2025	Cash flows	Non-cash changes		December 31, 2025
			Acquisition	Lease modifications
Short-term borrowings	$ 288,508	1,330,167	-	-	1,618,675
Lease liabilities	21,508	(12,575)	20,544	-	29,477
	$ 310,016	1,317,592	20,544	-	1,648,152
	January 1, 2024	Cash flows	Non-cash changes		December 31, 2024
---	---	---	---	---	---
			Acquisition	Lease modifications
Short-term borrowings	$ 61,410	227,098	-	-	288,508
Lease liabilities	13,420	(11,926)	22,147	(2,133)	21,508
	$ 74,830	215,172	22,147	(2,133)	310,016

7. Related-party transactions:

(a) Name and relationship with related parties

The followings are the entities that have had transactions with the Company during the periods covered in the parent-company-only financial statements and the Company's subsidiaries.

Name of related parties	Relationship with the Company
Apacer Memory America Inc. (“AMA”)	The Company’s subsidiary
Apacer Technology B.V. (“AMH”)	The Company’s subsidiary
Kingdom Corp. Limited (“AMK”)	The Company’s subsidiary
Apacer Technology Japan Corp. (“AMJ”)	The Company’s subsidiary
Apacer Technologies Private Limited (“ATPL”)	The Company’s subsidiary
Apacer Technology (BVI) Inc. (“ACYB”)	The Company’s subsidiary
UD INFO Corp. (“UD”)	The Company’s subsidiary (Note)
Apacer Electronic (Shanghai) Co., Ltd. (“AMC”)	ACYB’s subsidiary
Shenzhen Kylinesports Technology Co. (“AMS”)	AMK’s subsidiary
Phison Electronics Corporation (“Phison”)	Prior to May 31, 2024, Phison was the Company’s director.
JoiiUp Technology Inc. (“JoiiUp”)	The Company’s associate
Acer Incorporated (“Acer”)	Entity with significant influence over the Company (note 1)
Other related parties:
Acer Philippines, Inc. (“APHI”)	Acer’s subsidiary (note 1)

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

Name of related parties	Relationship with the Company
Acer Computer Co., Ltd. (“ATH”)	Acer’s subsidiary (note 1)
Servex (Malaysia) Sdn Bhd. (“SMA”)	Acer’s subsidiary (note 1)
Bluechip Infotech Pty Ltd. (“Bluechip”)	Acer’s subsidiary (note 1)
Acer India Private Limited (“AIL”)	Acer’s subsidiary (note 1)
PT. Acer Manufacturing Indonesia (“AMI”)	Acer’s subsidiary (note 1)
Acer Sales And Services Sdn Bhd (“ASSB”)	Acer’s subsidiary (note 1)
Highpoint Services Network Philippines, Inc. (“HSNP”)	Acer’s subsidiary (note 1)
ALTOS COMPUTING (INDIA) PRIVATE LIMITED (“ALIN”)	Acer’s subsidiary (note 1)
Weblink International Inc. (“WLII”)	Acer’s subsidiary (note 1)
Highpoint Service Network Corporation (“HSNC”)	Acer’s subsidiary (note 1)
Altos Computing Inc. (“ALT”)	Acer’s subsidiary (note 1)
Acer ITS Inc. (“ITS”)	Acer’s subsidiary (note 1)
Acer Synergy Tech Corp. (“AST”)	Acer’s subsidiary (note 1)
AOPEN Inc. (“AOI”)	Acer’s subsidiary (note 1)
Posiflex Technology Inc. (“Posiflex”)	Acer’s subsidiary (note 1)
Portwell Inc. (“Portwell”)	Acer’s subsidiary (note 1)
OTO Photonics Inc. (“OTO”)	The Company’s other related party
Directors, general manager and vice general managers	The Company’s key management personnel

Note 1: Starting May 31, 2024, Acer has become the Company’s director that has significant influence over the Company. Thereafter, Acer has become a related party of the Company.

(b) Significant related-party transactions

(i) Revenue

The amounts of significant sales by the Company to related parties were as follows:

	2025	2024
Subsidiaries	$ 2,281,501	1,751,097
Entities with significant influence over the Company	1,546,934	234,612
The Company’s key management personnel (the Company’s director)	-	2,388
Other related parties	588,858	260,431
	$ 4,417,293	2,248,528

The sales prices and payment terms of sales to related parties are not different from those with third-party customers. The payment terms of 30 days calculated from the delivery date to EOM 60 days shows no significant difference between related parties and third-party customers. The Company does not receive any collateral for the receivables from related parties. The Company has not recognized a specific allowance for doubtful receivables after assessment.

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

(ii) Purchases

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

	2025	2024
Subsidiaries	$ 6,592	19,160
The Company’s key management personnel—Phison (the Company’s director)	-	531,567
Other related parties	774	642
	$ 7,366	551,369

There are no significant differences between the purchase prices for related parties and those for third-party vendors. The payment terms of EOM 30~60 days shows no significant difference between related parties and third-party vendors.

(iii) Receivables

The receivables from related parties were as follows:

Account	Related-party categories	December 31, 2025	December 31, 2024
Accounts receivable from related parties	Subsidiaries:
	AMC	$ 78,427	67,062
	AMH	-	13,236
	AMK	549	66
	Other subsidiaries	64	23,261
	Other related parties:
	AIL	42	85,196
	Others	19,706	10,000
	Entity with significant influence over the Company—Acer	250,869	78,716
		$ 349,657	277,537

(iv) Payables

The payables to related parties were as follows:

Account	Related-party categories	December 31, 2025	December 31, 2024
Accounts payable	Subsidiaries	$ -	8,924
to related parties	Other related parties	213	-
Other payables	Subsidiaries	2,116	1,930
to related parties	Other related parties	37	173
		$ 2,366	11,027

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

(v) Operating expenses

The operating expenses related to the after-sale service provided by related parties and sundry purchases were as follows:

Account	Related party categories	2025	2024
Operating expenses	Subsidiaries	$ 4,868	4,954
	The Company’s key management personnel (the Company’s director)	-	136
	Associates	50	50
	Other related parties	398	304
		$ 5,316	5,444

	2025	2024
Short-term employee benefits	$ 111,472	47,554
Post-employment benefits	432	432
	$ 111,904	47,986

Pledged assets: None
Significant commitments and contingencies

(a) Significant unrecognized commitments

	December 31, 2025	December 31, 2024
Unused letters of credit	$ 35,000	35,000

(b) As of December 31, 2025 and 2024, the Company had outstanding letters of guarantee amounting to $12,000 for the purpose of the payment of customs duties.

(c) In consideration of production capacity and business expansion, the Company’s Board of Directors resolved to acquire property, plant and equipment on November 6, 2025, with a total consideration of $204,776, of which outstanding payables amounted to $184,326.

Significant loss from disaster: None
Significant subsequent events: None

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

12. Others

Employee benefits, depreciation and amortization expenses categorized by function were as follows:

	2025			2024
	Cost of revenue	Operating expenses	Total	Cost of revenue	Operating expenses	Total
Employee benefits:
Salaries	178,619	619,971	798,590	139,288	361,066	500,354
Insurance	15,517	30,554	46,071	15,719	29,879	45,598
Pension	5,824	16,051	21,875	6,141	14,846	20,987
Remuneration to directors	-	21,641	21,641	-	10,777	10,777
Others	10,639	24,599	35,238	10,538	24,268	34,806
Depreciation	20,241	27,169	47,410	20,982	25,239	46,221
Amortization	1,300	8,246	9,546	2,782	7,971	10,753

For the years ended December 31, 2025 and 2024, the information on the number of employees and employee benefit expense of the Company is as follows:

	2025	2024
The number of employees	520	505
The number of non-employee directors	6	6
Average employee benefits	$ 1,754	1,206
Average employee salaries	$ 1,554	1,003
Average employee salaries adjustment rate	54.94 %	(20.90)%
Remuneration to supervisors	$ -	-

The Company compensation policies (including compensation to the directors, managers and employees) are as follows:

The Board of Directors is authorized by the Company's Articles of Incorporation to determine the compensation recommended by the Remuneration Committee for the directors with reference to the extent of his/her involvement in and value of his/her contribution to the operation of the Company and industry norms in Taiwan. In addition, when there is profit in any fiscal year, based on the percentage of the profit as remuneration to directors stipulated in the Company's Articles of Incorporation and the criteria for allocation subject to the Company's policy, the amount of remunerations for each director must be recommended by the Remuneration Committee to the Board of Directors for approval.

The appointment, discharge and compensation of the Company's executive officers shall be subject to the Company's policy. The Company set the compensation policy for its executive officers by referencing industry norms in Taiwan, as well as their education, experience, responsibility and performance.

In order to achieve the purpose of attracting talents, retaining and training talents for a long term, the Company set the compensation policy for its employees by referencing to the industry norms in Taiwan, as well as their education, experience, responsibility and performance to provide employees with competitive salaries, as well as various reward systems to motivate employees.

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

13. Additional disclosures

(a) Information on significant transactions:

In accordance with the requirements of the Regulations Governing the Preparation of Financial Reports by Securities Issuers, the Company discloses the following information on significant transactions for the year ended December 31, 2025:

(i) Financing provided to other parties: None
(ii) Guarantee and endorsement provided to other parties: None
(iii) Marketable securities held at the reporting date (excluding investments in subsidiaries and associates):

(In Thousands of Shares / Thousands of Units)

Investing Company	Marketable Securities Type and Name	Relationship with the Securities Issuer	Financial Statement Account	December 31, 2025				Note
				Shares/ Units	Carrying Value	Percentage of Ownership	Fair value
The Company	Stock: Formosa Golf and Country Club Corp.	-	Financial assets at fair value through other comprehensive income—non-current	3.6	13,476	0.01 %	13,476	-
The Company	Stock: OTO Photonics Inc.	-	Financial assets at fair value through other comprehensive income—non-current	4,077	23,564	11.23 %	23,564	-
The Company	Neo Semiconductor, Inc.	-	Financial assets at fair value through profit or loss —non-current	250	17,668	20.00 %	17,668	Note
AMS	Futurepath Technology (Shenzhen) Co., Ltd.	-	Financial assets at fair value through other comprehensive income—non-current	31.5	279	0.03 %	279	-

Note: Marketable securities held are preferred stock, wherein the percentage of ownership refers to the percentage of ownership of the specific type of preferred stock.

(iv) Total purchases from and sales to related parties which exceed $100 million or 20% of the paid-in capital:

Company Name	Related Party	Nature of Relationship	Transaction Details				Transactions with Terms Different from Others		Notes/Accounts Receivable or (Payable)		Note
			Purchases/ (Sales)	Amount	% of Total Purchases/ (Sales)	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total Notes/Accounts Receivable or (Payable)
The Company	Acer	Entity with significant influence over the Company	(Sales)	(1,546,934)	(15)%	M60	-	-	250,869	19%	-
The Company	AIL	Other related party	(Sales)	(381,516)	(4)%	OA60	-	-	42	-	-
The Company	AMA	The Company’s subsidiary	(Sales)	(367,062)	(4)%	OA30	-	-	-	-	-
The Company	AMK	The Company’s subsidiary	(Sales)	(717,595)	(7)%	OA30	-	-	549	-	-
The Company	AMH	The Company’s subsidiary	(Sales)	(490,593)	(5)%	OA30	-	-	-	-	-
The Company	AMC	The Company’s subsidiary	(Sales)	(618,506)	(6)%	M60	-	-	78,427	6%	-
AMA	The Company	AMA’s parent company	Purchases	367,062	100%	OA30	-	-	-	-	-
AMK	The Company	AMK’s parent company	Purchases	717,595	100%	OA30	-	-	(549)	(100)%	-
AMH	The Company	AMH’s parent company	Purchases	490,593	100%	OA30	-	-	-	-	-
AMC	The Company	AMC’s parent company	Purchases	618,506	77%	M60	-	-	(78,427)	(79)%	-

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

(v) Receivables from related parties which exceed $100 million or 20% of the paid-in capital:

(Amounts in Thousands of New Taiwan Dollar)

Company Name	Related Party	Nature of Relationship	Ending Balance	Turnover Rate	Overdue		Amounts Received in Subsequent Period	Allowance for Bad Debts
					Amount	Action Taken
The Company	Acer	Entity with significant influence over the Company	250,869	9.39	-	-	139,708	-

(b) Information on investees:

For the year ended December 31, 2025, the information on investees is as follows (excluding investments in Mainland China):

(In Thousands of Shares)

Investor	Investee	Location	Main Businesses and Products	Original Investment Amount		Balance as of December 31, 2025			Net Income (Loss) of the Investee	Investment Income (Loss)	Note
				December 31, 2025	December 31, 2024	Shares	Percentage of Ownership	Carrying Value
The Company	AMA	USA	Sales of memory modules and storage memory devices	610	610	20	100.00 %	363,241	17,553	17,553	-
The Company	ACYB	British Virgin Islands	Investment and holding activity	18,542	18,542	2,636	100.00 %	83,526	20,760	20,760	-
The Company	AMJ	Japan	Sales of memory modules and storage memory devices	2,918	2,918	0.2	100.00 %	22,536	2,096	2,096	-
The Company	ATPL	India	Auxiliary sales of memory modules and storage memory devices	915	915	29	99.65 %	1,690	206	205	-
The Company	AMK	Hong Kong	Sales of memory modules and storage memory devices	20,917	20,917	5,000	100.00 %	18,122	3,268	3,268	-
The Company	AMH	Netherlands	Sales of memory modules and storage memory devices	130,469	130,469	80	100.00 %	101,550	11,332	11,332	-
The Company	JoiUp	Taiwan	Cloud services and software development	7,500	7,500	750	9.68 %	1,771	(4,530)	(378)	-
The Company	UD	Taiwan	Manufacture and sales of memory modules and storage memory devices	380,815	380,815	4,932	68.54 %	374,587	72,387	40,638	-
ACYB	ATPL	India	Manufacture and sales of memory modules and storage memory devices	1	1	0.1	0.35 %	1	206	1	-

(Continued)

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

(i) Name and main businesses and products of investee companies in Mainland China:

Investee Company Name	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment (Note 1)	Accumulated Outflow of Investment from Taiwan as of January 1, 2025	Investment Flows		Accumulated Outflow of Investment from Taiwan as of December 31, 2025	Net Income (Loss) of Investee	% of Ownership of Direct or Indirect Investment	Investment Income (Loss)	Carrying Value as of December 31, 2025	Accumulated Inward Remittance of Earnings as of December 31, 2025
					Outflow	Inflow
Apacer Electronics (Shanghai) Co., Ltd. (AMC)	Sales of memory modules and storage memory devices	15,710 (USD 500 thousand)	Type 2	15,710 (USD 500 thousand)	-	-	15,710 (USD 500 thousand)	20,593	100.00 %	20,593 (Note 2)	79,342	-
Shenzhen Kylinesports Technology Co. (AMS)	Sales of gaming products	23,502 (USD 748 thousand)	Type 2	18,789 (USD 598 thousand)	-	-	18,789 (USD 598 thousand) (Note 5)	(59)	99.00 %	(58) (Note 3)	10,619	-

Note 1: Method of investments:
- Type 1: Direct investment in Mainland China.
- Type 2: Indirect investment in Mainland China through a holding company established in a third country.
- Type 3: Others.

Note 2: Investment income or loss recognized based on the financial statements audited by the auditors of the Company.

Note 3: Investment income or loss recognized based on the unaudited financial statements of investee companies.

Note 4: The above amounts were translated into New Taiwan Dollar at the exchange rate of US$1=NTD 31.420.

Note 5: The amount of AMK reinvestments amounting to US$134 thousand was excluded.

(ii) Limits on investments in Mainland China:

Investor	Accumulated Investment in Mainland China as of December 31, 2025	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment Authorized by Investment Commission, MOEA
The Company	34,499 (USD 1,098 thousand)	38,709 (USD 1,232 thousand)	3,019,410

(iii) Significant transactions with investee companies in Mainland China:

Please refer to section "Information on significant transactions" for detail description.

14. Segment information:

Please refer to the consolidated financial statements for the year ended December 31, 2025 for disclosure of segment information.

Apacer Technology Inc.

Statement of Cash and Cash Equivalents

December 31, 2025

(Expressed in Thousands of New Taiwan Dollar)

Item	Description	Amount
Cash on hand		$ 17
Demand deposits (Note)		218,908
		$ 218,925

Note: Foreign currency deposits were translated at the spot exchange rate on December 31, 2025 as follows:

Currency	Exchange rate
USD	31.420
EUR	36.871
JPY	0.201
CNY	4.497

Statement of Notes and Accounts Receivable

Client Name	Description	Amount
Customer A		$ 211,249
Customer B		93,135
Customer C		65,193
Customer D		53,564
Customer E		50,683
Others (Note)		482,752
		956,576
Less: Loss allowance		(158)
		$ 956,418

Note: The amount of each item in others does not exceed 5% of the account balance.

(Continued)

Apacer Technology Inc.

Statement of Accounts Receivable from Related Parties

December 31, 2025

(Expressed in Thousands of New Taiwan Dollar)

Client Name	Description	Amount
Acer		$ 250,869
AMC		78,427
Others (Note)		20,361
		$ 349,657

Note: The amount of each item in others does not exceed 5% of the account balance.

Statement of Inventories

Item	Amount
	Carrying amount (Note)	Net realizable value
Raw materials	$ 1,907,172	4,434,738
Work in process	532,411	2,119,742
Finished goods	2,024,890	3,348,239
Inventories in transit	143,868	177,451
Total	$ 4,608,341	10,080,170

Note: Provision of inventory obsolescence has been deducted.

(Continued)

Apacer Technology Inc.
Statement of Other Current Assets
December 31, 2025
(Expressed in Thousands of New Taiwan Dollar)

Item	Description	Amount
Overpaid VAT		$ 145,998
Prepayments		16,686
Prepaid expenses		9,128
Others (Note)		4,733
		$ 176,545

Note: The amount of each item in others does not exceed 5% of the account balance.

Statement of Changes in Financial Assets at Fair Value through Other Comprehensive Income
—Non-Current

For the year ended December 31, 2025

(Expressed in Thousands of New Taiwan Dollar / Shares)

Name of financial instruments	Balance at January 1, 2025		Addition		Decrease		Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income	Balance at December 31, 2025		Collateral
	Shares	Fair value	Shares	Amount	Shares	Amount		Shares	Fair value
OTO Photonics Inc.	4,077	$ 27,600	-	-	-	-	(4,036)	4,077	23,564	Nil
Formosa Golf and Country Club Corp.	3.6	10,011	-	-	-	-	3,465	3.6	13,476	Nil
		$ 37,611		-		-	(571)		37,040

(Continued)

Apacer Technology Inc.

Statement of Changes in Investments Accounted for Using Equity Method

For the year ended December 31, 2025

(Expressed in Thousands of New Taiwan Dollar / Shares)

Name of investees	Balance at January 1, 2025		Addition		Decrease (Note 3)		Share of profits (losses) of subsidiaries and associates	Other adjustments (Note 2)	Exchange differences on translation of foreign operations	Adjustments accounted for using equity method (Note 1)	Balance at December 31, 2025				Equity	Method
	Shares	Amount	Shares	Amount	Shares	Amount					Shares	%	Amount
ATPL	29	$ 1,639	-	-	-	-	205	-	(154)	-	29	99.65	1,690	1,690	Equity method	Nil
AMA	20	360,529	-	-	-	-	17,553	(14)	(14,827)	-	20	100.00	363,241	363,329	Equity method	Nil
ACYB	2,636	62,799	-	-	-	-	20,760	(844)	811	-	2,636	100.00	83,526	83,965	Equity method	Nil
AMH	80	93,387	-	-	-	-	11,332	475	(3,644)	-	80	100.00	101,550	102,265	Equity method	Nil
AMJ	0.20	21,565	-	-	-	-	2,096	(167)	(958)	-	0.2	100.00	22,536	22,703	Equity method	Nil
AMK	5,000	14,913	-	-	-	-	3,268	(11)	(116)	68	5,000	100.00	18,122	18,132	Equity method	Nil
JoiUp	750	990	-	-	-	-	(378)	-	-	1,159	750	9.68	1,771	1,771	Equity method	Nil
UD	4,932	367,458	-	-	-	(33,143)	40,638	(366)	-	-	4,932	68.54	374,587	235,100	Equity method	Nil
	$ 923,280		-		(33,143)		95,474	(927)	(18,888)	1,227			967,023	828,955

Note 1: Adjustments for investments accounted for using equity method

Change in capital surplus

$ 1,159

Unrealized loss from investments in equity instruments measured at FVOCI

$ 1,227

Note 2: Other adjustments are unrealized profit or loss resulted from transactions with subsidiaries.

Note 3: Decrease in investments accounted for using equity method arose from the cash dividends distributed by subsidiaries.

(Continued)

Apacer Technology Inc.

Statement of Other Financial Assets – Non-Current

December 31, 2025

(Expressed in Thousands of New Taiwan Dollar)

Item	Description	Amount
Refundable deposits		$ 35,226

Statement of Short-Term Borrowings

Type	Creditor	Ending balance	Interest rate	Credit facilities	Collateral
OA loans	Citibank Taiwan Limited	$ 377,040	4.72%~4.73%	377,040	Nil
OA loans	Far Eastern International Bank	250,000	1.95%~2.50%	250,000	Nil
OA loans	Bank of Taiwan	245,076	4.66%	250,000	Nil
OA loans	Taipei Fubon Commercial Bank	214,396	2.08%~4.62%	219,940	Nil
OA loans	E.SUN Commercial Bank	199,420	1.98%~4.65%	200,000	Nil
OA loans	Mega International Commercial Bank	182,743	1.98%~4.50%	200,000	Nil
OA loans	Chang Hwa Commercial Bank	150,000	2.00%	200,000	Nil
		$ 1,618,675

(Continued)

Apacer Technology Inc.
Statement of Notes and Accounts Payable
December 31, 2025
(Expressed in Thousands of New Taiwan Dollar)

Vendor Name	Description	Amount
Vendor A		$ 532,314
Vendor B		167,213
Vendor C		154,641
Others (Note)		380,503
		$ 1,234,671

Note: The amount of each item in others does not exceed 5% of the account balance.

Statement of Accounts Payable to Related Parties

Vendor Name	Description	Amount
OTO Photonics Inc.		$ 213

(Continued)

Apacer Technology Inc.

Statement of Other Payables

December 31, 2025

(Expressed in Thousands of New Taiwan Dollar)

Item	Description	Amount
Accrued bonus		$ 275,475
Accrued remuneration to employees and directors		138,357
Wages and salaries payable		29,684
Others (Note)		153,242
		$ 596,758

Note: The amount of each item in others does not exceed 5% of the account balance.

Statement of Other Payables to Related Parties

Vendor Name	Description	Amount
ATPL		$ 1,451
AMC		408
AMS		257
Others (Note)		37
		$ 2,153

Note: The amount of each item in others does not exceed 5% of the account balance.

(Continued)

Apacer Technology Inc.
Statement of Other Current Liabilities
December 31, 2025
(Expressed in Thousands of New Taiwan Dollar)

Item	Description	Amount
Provisions for employee annual leave		$ 24,458
Withholding taxes		4,674
		$ 29,132

Statement of Lease Liabilities

Item	Lease Term	Discount Rate (%)	Balance at December 31, 2025
Buildings	2024/09~2029/04	3.26%	$ 15,340
Other equipment	2023/01~2029/08	3.26%	14,137
			$ 29,477
Lease liabilities – current			$ 10,467
Lease liabilities – non-current			$ 19,010

Statement of Revenue
For the year ended December 31, 2025

Item	Amount
Flash memory cards	$ 4,700,492
Memory modules	5,385,847
Others	153,635
	$ 10,239,974

(Continued)

Apacer Technology Inc.

Statement of Cost of Revenue

For the year ended December 31, 2025

(Expressed in Thousands of New Taiwan Dollar)

Item	Amount
Raw materials
Balance, beginning of year (including inventories in transit amounted to $49,949)	$ 851,462
Add: Purchase of raw materials	6,253,753
Gain on physical inventory	53
Less: Balance, end of year (including inventories in transit amounted to $148,861)	2,507,097
Cost of sales on raw materials	246,404
Transferred to operating expenses	499
Raw materials used	4,351,268
Direct labor	111,751
Manufacturing overhead	462,030
Others	(849)
Manufacturing cost	4,924,200
Add: Work in process, beginning of year	115,932
Less: Work in process, end of year	535,339
Cost of goods manufactured	4,504,793
Add: Finished goods, beginning of year	807,272
Purchase of finished goods	4,957,100
Less: Finished goods, end of year	2,103,128
Transferred to operating expenses	17,941
Write-downs of inventories	(6,000)
Cost of sales on raw materials	246,404
Gain on physical inventory	(53)
Cost of revenue	$ 8,388,447

(Continued)

Apacer Technology Inc.

Statement of Selling Expenses

For the year ended December 31, 2025

(Expressed in Thousands of New Taiwan Dollar)

Item	Amount
Wages and salaries	$ 288,926
Advertisement expense	36,930
Shipping expenses	29,364
Others (Note)	127,851
	$ 483,071

Note: The amount of each item in others does not exceed 5% of the account balance.

Statement of Administrative Expenses

Item	Amount
Wages and salaries	$ 186,928
Remuneration to directors	21,641
Professional service fees	14,182
Others (Note)	54,859
	$ 277,610

Note: The amount of each item in others does not exceed 5% of the account balance.

(Continued)

Apacer Technology Inc.

Statement of Research and Development Expenses

For the year ended December 31, 2025

(Expressed in Thousands of New Taiwan Dollar)

Item	Amount
Wages and salaries	$ 144,117
Indirect material	17,012
Others (Note)	40,453
Total	$ 201,582

Note: The amount of each item in others does not exceed 5% of the account balance.

For details on statement of financial assets at fair value through profit or loss—current, please refer to note 6(b).

For details on statement of other financial assets—current, please refer to note 6(a).

For details on statement of changes in property, plant and equipment, please refer to note 6(g).

For details on statement of changes in accumulated depreciation of property, plant and equipment, please refer to note 6(g).

For details on statement of changes in right-of-use assets, please refer to note 6(h).

For details on statement of changes in intangible assets, please refer to note 6(i).

For details on statement of deferred income tax assets, please refer to note 6(n).

For details on statement of financial liabilities at fair value through profit or loss—current, please refer to note 6(b).

For details on statement of provisions—current, please refer to note 6(l).

For details on statement of deferred income tax liabilities, please refer to note 6(n).

For details on statement of net defined benefit liabilities, please refer to note 6(m).

For details on statement of other gains and losses—net, please refer to note 6(s).

For details on statement of financial cost, please refer to note 6(s).

AI assistant

Apacer — Audit Report / Information 2025

52734_rns_2026-04-08_653597de-8d4b-4b0a-aef8-ef812ab2e81f.pdf

APACER TECHNOLOGY INC.

FINANCIAL STATEMENTS

Table of contents

Independent Auditors’ Report

Opinion

Basis for Opinion

Key Audit Matters

Description of key audit matter:

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

Notes to Readers

APACER TECHNOLOGY INC.

Parent-Company-Only Statements of Comprehensive Income

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

APACER TECHNOLOGY INC.

4. Summary of material accounting policies:

APACER TECHNOLOGY INC.

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

APACER TECHNOLOGY INC.

APACER TECHNOLOGY INC.

APACER TECHNOLOGY INC.

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

APACER TECHNOLOGY INC.

APACER TECHNOLOGY INC.

APACER TECHNOLOGY INC.

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

5. Critical accounting judgments and key sources of estimation uncertainty

APACER TECHNOLOGY INC.

6. Significant account disclosures

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

APACER TECHNOLOGY INC.

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

(i) Intangible assets

(ii) Amortization

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

(j) Short-term borrowings

(k) Lease liabilities

(i) Real estate leases

(ii) Other leases

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

(l) Provisions

(i) Warranties

(ii) Sales returns and allowances

(iii) Decommissioning liabilities

(m) Employee benefits

(i) Defined benefit plans

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

APACER TECHNOLOGY INC.

Notes to the Parent-Company-Only Financial Statements

APACER TECHNOLOGY INC.

Apacer Audit Report / Information 2025