AV TECH CORPORATION, LTD. and subsidiaries

Consolidated Financial Statements for the Years Ended December 31, 2025 and 2024 and Independent Auditors' Report

Address: No. 193-2, Zhongxing N. St., Sanchong Dist., New Taipei City
Tel: (02)26553866

DECLARATION ON CONSOLIDATED FINANCIAL STATEMENTS OF AFFILIATES

The companies required to be included in the consolidated financial statements of affiliates in accordance with the "Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises" for the year ended December 31, 2025 are all the same as the companies required to be included in the consolidated financial statements of parent and subsidiary companies as provided in International Financial Reporting Standard 10 "Consolidated Financial Statements." Relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies. Hence, we do not prepare a separate set of consolidated financial statements of affiliates.

Very truly yours,

Company name: AV TECH CORPORATION, Ltd.
Chairman: Chen Shizhong
Date: March 23, 2026

INDEPENDENT AUDITORS' REPORT

The Board of Directors and Shareholders
AV TECH CORPORATION, Ltd.

Opinion

We have audited the accompanying consolidated financial statements of AV TECH CORPORATION, Ltd. (the "Company") and its subsidiaries, which comprise the consolidated balance sheets as of December 31, 2025 and 2024, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies (collectively referred to as the "consolidated financial statements").

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company and its subsidiaries as of December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Company and its subsidiaries 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 for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended December 31, 2025. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

The key audit matter identified in the consolidated financial statements of the Company and its subsidiaries for the year ended December 31, 2025 is described as follows:

Authenticity of specific sales revenue

The Company and its subsidiaries for the year ended December 31, 2025, the operating revenue from specific customers of electronic materials is significant to the overall operating income. Therefore, the authenticity of the operating revenue from such specific customers is listed as a key verification item.

For explanations of accounting policies related to sales revenue, please refer to Note 4 to the consolidated financial statements.

The main verification procedures that this accountant has performed on the authenticity of the specific sales revenue mentioned above are as follows:

The design and implementation effectiveness of key internal control systems to understand and test the authenticity of specific sales revenue.
Check the transaction documents of specific sales revenue, including shipping documents and payment documents, etc., to confirm that the significant risks and rewards of product ownership have been transferred to the buyer.
Check the specific sales revenue and payment collection after the sales period to confirm the rationality of the sales revenue recognition.

Other Matter

We have also audited the parent company only financial statements of AV TECH CORPORATION, Ltd. as of and for the years ended December 31, 2025 and 2024, on which we have issued an unmodified opinion.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and IFRS, IAS, IFRIC, and SIC endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Company and its subsidiaries 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 and its subsidiaries 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 and its subsidiaries financial reporting process.

Auditors' Responsibilities for the Audit of the Consolidated Financial Statement

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

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

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company and its subsidiaries internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company and its subsidiaries ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Company and its subsidiaries to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient and appropriate audit evidence regarding the financial information of entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision, and performance of the group audit. We remain solely responsible for our audit opinion.

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

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

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

The engagement partners on the audits resulting in this independent auditors' report are Youling Cai and Jianliang Liu.

Deloitte & Touche
Taipei, Taiwan
Republic of China

March 23, 2026

Notice to Readers

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

For the convenience of readers, the independent auditors' report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors' report and consolidated financial statements shall prevail.

AV TECH CORPORATION, LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS.

DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	2025		2024
ASSETS	Amount	%	Amount	%
CURRENT ASSETS
Cash and cash equivalents (Note 6)	$ 272,851	10	$ 626,162	24
Financial assets at fair value through profit or loss (Notes 7 and 30)	1,652	-	1,662	-
Financial assets at amortized cost (Notes 9 and 32)	822,084	31	621,003	24
Notes receivable (Notes 11 and 23)	19,636	1	11,225	-
Trade receivables (Notes 11,23 and 31)	378,498	14	240,825	9
Other receivables (Note 31)	2,002	-	1,601	-
Current tax assets (Note 25)	2,786	-	2,736	-
Inventories (Note 12)	127,890	5	106,919	4
Other current assets	20,809	1	16,072	1
Total current assets	1,648,208	62	1,628,205	62
NON-CURRENT ASSETS
Financial assets at fair value through other comprehensive income - non-current (Notes 8 and 30)	78,784	3	55,861	2
Financial assets at amortized cost (Notes 9,10 and 32)	63,200	3	81,905	3
Investments accounted for using the equity method(Note 14)	74,294	3	72,450	3
Property, plant and equipment (Note 15)	695,827	26	702,389	27
Investment properties (Note 17)	35,653	1	35,927	1
Deferred tax assets (Note 25)	23,953	1	26,061	1
Net defined benefit assets (Note 21)	23,153	1	21,339	1
Other non-current assets	257	-	257	-
Total non-current assets	995,121	38	996,189	38
TOTAL	$ 2,643,329	100	$ 2,624,394	100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Contract liabilities (Note 23)	$ 21,505	1	$ 18,130	1
Trade payables (Note 18 and 31)	141,345	6	134,130	5
Other payables (Notes 19 and 31)	48,833	2	54,763	2
Current tax liabilities (Note 25)	8,601	-	4,974	-
Other current liabilities	678	-	498	-
Total current liabilities	220,962	9	212,495	8
NON-CURRENT LIABILITIES
Provision for liabilities (Note 20)	21,625	1	21,626	1
Deferred tax liabilities (Note 25)	8,900	-	16,426	1
Deposits received	3,585	-	3,325	-
Total non-current liabilities	34,110	1	41,377	2
Total liabilities	255,072	10	253,872	10
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Notes 22 and 28)
Ordinary shares	800,000	30	800,000	30
Capital surplus	17,561	1	17,561	1
Retained earnings
Legal reserve	1,084,041	41	1,074,230	41
Special reserve	111	-	4,162	-
Undistributed earnings	393,541	15	389,293	15
Total retained earnings	1,477,693	56	1,467,685	56
Other equity
Exchange differences in the translation of financial statements of foreign operating institutions	716	-	616	-
Unrealized financial assets measured at fair value through other comprehensive profit or loss	2,728	-	( 727 )	-
Total other equity	3,444	-	( 111 )	-
Total equity attributable to owners of the Company	2,298,698	87	2,285,135	87
NON-CONTROLLING INTERESTSt (Notes 22 and 28)	89,559	3	85,387	3
Total equity	2,388,257	90	2,370,522	90
TOTAL	$ 2,643,329	100	$ 2,624,394	100

The accompanying notes are an integral part of the consolidated financial statements.

AV TECH CORPORATION, LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

	2025		2024
	Amount	%	Amount	%
OPERATING REVENUE (Notes 23 and 31)	$ 1,284,133	100	$ 938,840	100
OPERATING COSTS (Notes 12, 24 and 31)	1,072,652	83	777,253	83
GROSS PROFIT	211,481	17	161,587	17
OPERATING EXPENSES (Notes 11, 24 and 31)
Selling and marketing expenses	61,004	5	50,039	5
General and administrative expenses	60,178	5	74,684	8
Research and development expenses	29,525	2	27,719	3
Other expenses	55	-	-	-
Total operating expenses	150,762	12	152,442	16
OPERATING INCOME	60,719	5	9,145	1
NON-OPERATING INCOME AND EXPENSES
Interest income	35,606	3	33,215	4
Other income (Notes 24 and 31)	31,227	3	44,727	5
Other gains and losses (Note 24)	(21,238)	(2)	39,034	4
Share of profit of from associates account for using the equity method (Note 14)	3,782	-	9,843	1
Total non-operating income and expenses	49,377	4	126,819	14
PROFIT BEFORE TAX	110,096	9	135,964	15
INCOME TAX EXPENSE (Note 25)	8,404	1	25,435	3
NET PROFIT FOR THE YEAR	101,692	8	110,529	12
OTHER COMPREHENSIVE INCOME
Items that will not be reclassified subsequently to profit or loss
Remeasurement of defined benefit plans (Note 21)	1,451	-	2,098	-
Unrealized gains (losses) on investments measured at fair value through other comprehensive income (Note 22)	3,926	-	(448)	-
Income tax related to items not be reclassified (Note 25)	(290)	-	(419)	-
	5,087	-	1,231	-

(Continued)

AV TECH CORPORATION, LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

	2025		2024
	Amount	%	Amount	%
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of the financial statements of foreign operations (Note 22)	$ 121	-	$ 1,788	-
Other comprehensive income for the year, net of income tax	5,208	-	3,019	-
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	$ 106,900	8	$ 113,548	12
NET PROFIT ATTRIBUTABLE TO:
Owners of the company	$ 88,994	7	$ 100,178	11
Non-controlling interests	12,698	1	10,351	1
	$ 101,692	8	$ 110,529	12
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Owners of the company	$ 93,980	7	$ 102,908	11
Non-controlling interests	12,920	1	10,640	1
	$ 106,900	8	$ 113,548	12
EARNINGS PER SHARE (Note 26)
Basic	$ 1.11		$ 1.25
Diluted	$ 1.11		$ 1.25

The accompanying notes are an integral part of the financial statements.
(Concluded)

AV TECH CORPORATION, LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	Equity Attributable to Owners of the Company
	Share Capital			Retained Earnings					Exchange Differences On Translation of the Financial Statements of Foreign Operations			Other Equity Unrealised Loss on Financial Assets at Fair Value
	Number of Shares (In Thousands)	Amount	Capital Surplus	Legal Reserve	Special Reserve	Unappropriated Earnings	Total	( $ 883 )	($ 3,279 )	( $ 4,162 )	$ 2,243,130	Non-controlling Interests	Total Equity
BALANCE AT JANUARY 1, 2024	80,000	$ 800,000	$ 17,722	$ 1,068,453	$ 9,015	$ 352,102	$ 1,429,570
Appropriation of 2023 earnings
Legal reserve	-	-	-	5,777	-	( 5,777 )	-	-	-	-	-	-	-	-
Special reserve	-	-	-	-	( 4,853 )	4,853	-	-	-	-	-	-	-	-
Cash dividends distributed	-	-	-	-	-	( 60,000 )	( 60,000 )	-	-	-	-	( 60,000 )	-	( 60,000 )
Cash capital increase from non-controlling interests	-	-	-	-	-	-	-	-	-	-	-	-	150	150
Cash dividends distributed by subsidiaries	-	-	-	-	-	-	-	-	-	-	-	-	( 7,612 )	( 7,612 )
Net profit for the year ended December 31, 2024	-	-	-	-	-	100,178	100,178	-	-	-	100,178	10,351	110,529
Other comprehensive income (loss) for the year ended December 31, 2024, net of income tax	-	-	-	-	-	1,679	1,679	1,499	( 448 )	1,051	2,730	289	3,019
Total comprehensive income (loss) for the year ended December 31, 2024	-	-	-	-	-	101,857	101,857	1,499	( 448 )	1,051	102,908	10,640	113,548
Disposal of the difference between the equity price and book value of subsidiaries	-	-	( 40 )	-	-	( 742 )	( 742 )	-	-	-	( 782 )	13,040	12,258
Changes in ownership interests in subsidiaries	-	-	( 121 )	-	-	-	-	-	-	-	( 121 )	121	-
Disposal of equity instruments measured at fair value through other comprehensive income by subsidiaries	-	-	-	-	-	( 3,000 )	( 3,000 )	-	3,000	3,000	-	-	-
BALANCE AT DECEMBER 31, 2024	80,000	800,000	17,561	1,074,230	4,162	389,293	1,467,685	616	( 727 )	( 111 )	2,285,135	85,387	2,370,522
Appropriation of 2024 earnings
Legal reserve	-	-	-	9,811	-	( 9,811 )	-	-	-	-	-	-	-
Special reserve	-	-	-	-	( 4,051 )	4,051	-	-	-	-	-	-	-
Cash dividends distributed by the Company	-	-	-	-	-	( 80,000 )	( 80,000 )	-	-	-	( 80,000 )	-	( 80,000 )
Cash dividends distributed by subsidiaries	-	-	-	-	-	-	-	-	-	-	-	( 10,683 )	( 10,683 )
Net profit for the year ended December 31, 2025	-	-	-	-	-	88,994	88,994	-	-	-	88,994	12,698	101,692
Other comprehensive income (loss) for the year ended December 31, 2025, net of income tax	-	-	-	-	-	1,161	1,161	100	3,725	3,825	4,986	222	5,208
Total comprehensive income (loss) for the year ended December 31, 2025	-	-	-	-	-	90,155	90,155	100	3,725	3,825	93,980	12,920	106,900

(Continued)

AV TECH CORPORATION, LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	Equity Attributable to Owners of the Company
	Share Capital			Retained Earnings					Other Equity
	Number of Shares (In Thousands)	Amount		Capital Surplus	Legal Reserve	Special Reserve	Unappropriated Earnings	Total	Exchange Differences On Translation of the Financial Statements of Foreign Operations	Unrealized Loss on Financial Assets at Fair Value Through Other Comprehensive Income	Total	Total	Non-controlling Interests	Total Equity
Disposal of the difference between the equity price and book value of subsidiaries	-	$ -	$ -	$ -	$ -	($ 417)	($ 417)	$ -	$ -	$ -	($ 417)	$ 3,570	$ 3,153
Changes in ownership interests in subsidiaries	-	-	-	-	-	-	-	-	-	-	-	( 863 )	( 863 )
Cash returned from subsidiary's capital reduction	-	-		-	-	-	-	-	-	-	-	( 772 )	( 772 )
Disposal of equity instruments measured at fair value through other comprehensive income by subsidiaries	-	-	-	-	-	270	270	-	( 270 )	( 270 )	-	-	-
BALANCE AT DECEMBER 31, 2025	80,000	$ 800,000	$ 17,561	$ 1,084,041	$ 111	$ 393,541	$ 1,477,693	$ 716	$ 2,728	$ 3,444	$ 2,298,698	$ 89,559	$ 2,388,257

The accompanying notes are an integral part of the financial statements.

(Concluded)

AV TECH CORPORATION, LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars)

	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax	$ 110,096	$ 135,964
Adjustments for
Depreciation expense (including investment real estate)	6,836	7,521
Expected credit impairment losses	55	-
Net loss (gain) on fair value changes of financial assets at fair value	10	( 322 )
Interest income	( 35,606 )	( 33,215 )
Dividend income	( 244 )	( 58 )
Share of loss from associates accounted for using the equity method	( 3,782 )	( 9,843 )
Disposal and liquidation of subsidiary interests	( 9 )	-
Inventory valuation loss (gain on reversal)	( 2,114 )	2,041
Net unrealized foreign currency exchange gains	( 14,168 )	( 13,135 )
Write-off of accounts payable two years overdue	( 19 )	( 667 )
Changes in operating assets and liabilities
Notes receivable	( 8,411 )	( 5,634 )
Trade receivables	( 131,207 )	( 25,495 )
Other receivables	( 652 )	( 954 )
Inventories	( 18,857 )	( 13,179 )
Net defined benefit assets	( 364 )	( 247 )
Other current assets	( 4,834 )	1,923
Contract liabilities	3,394	2,369
Accounts payable	7,228	59,801
Other payables	( 5,042 )	9,954
Other current liabilities	191	( 172 )
Cash generated from (used in) operations	( 97,499 )	116,626
Income tax paid	( 10,535 )	( 19,178 )
Net cash generated from (used in) operating activities	( 108,034 )	97,448
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of financial assets at fair value through other comprehensive income	( 19,746 )	( 6,309 )
Proceeds from disposal of financial assets at fair value through other comprehensive income	749	50
Purchase of financial assets at amortized cost	( 1,244,532 )	( 1,191,502 )
Proceeds from disposal of financial assets at amortized cost	1,055,347	1,371,289

(Continued)

AV TECH CORPORATION, LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars)

	2025	2024
Proceeds from disposal of financial assets at fair value through profit or loss	$ -	$ 2,378
Long-term investments at equity	( 637 )	-
Net cash outflow from disposal of subsidiaries	43	1,150
Disposal of subsidiaries	1,415	12,258
Payments for property, plant and equipment	-	( 1,100 )
Interest received	35,606	33,215
Receive dividends	3,636	2,180
Net cash generated from (used in) investing activities	( 168,119 )	223,609
CASH FLOWS FROM FINANCING ACTIVITIES
ACTIVITIES
Increase (decrease) in guarantee deposits received	259	( 409 )
Cash Dividends paid to owners of the Company	( 80,000 )	( 60,000 )
Cash reduction to NCI	( 772 )	-
Cash capital increase for non-controlling interests	-	150
Cash dividends paid to non-controlling interests	( 10,683 )	( 7,612 )
Net cash used in from financing activities	( 91,196 )	( 67,871 )
The impact of exchange rate changes on cash and cash equivalents	14,038	1,284
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	( 353,311 )	254,470
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR	626,162	371,692
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	$ 272,851	$ 626,162
The accompanying notes are an integral part of the financial statements.		(Concluded)

AV TECH CORPORATION, LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. GENERAL INFORMATION

AV TECH CORPORATION, Ltd. (the "Company") was incorporated in June 1996. The company's shares are from November 2003. It will be traded over the counter at the Securities Counter Trading Center of the Republic of China, a legal person, starting from March. In addition, it has been approved by the Taiwan Stock Exchange since August 2005. The stocks will be listed and traded starting from this month. The main business operations include the following:

a. Manufacturing of surveillance and anti-theft systems (cameras, quarter-division, image transmission equipment and peripheral control equipment and accessories), home anti-theft systems and automatic dialers, access control systems (card swiping systems, TV intercoms, fingerprint recognition systems, lane control systems), Installation, sales and import and export trade business.
b. General import and export trade business.
c. The agency sales and bidding business of products of domestic and foreign manufacturers in the preceding paragraph.
d. Electronic components manufacturing industry.
e. Optical instrument manufacturing industry.
f. Power generation, transmission and distribution manufacturing industry.
g. Electronic materials wholesale industry.
h. Precision instrument wholesale industry.
i. Telecommunications controls radio frequency equipment manufacturing and input industries.
j. General investment industry.

The consolidated financial statements are presented in the Company's functional currency, New Taiwan dollars.

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Company's board of directors on March 6, 2026.

3. APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS

a. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, "IFRS Accounting Standards") endorsed and

issued into effect by the Financial Supervisory Commission (FSC) The initial application of the amendments to the IFRS Accounting Standards endorsed and issued into effect by the FSC did not have a material impact on the accounting policies of TSMC and its subsidiaries (collectively as the "Company").

b. The IFRS Accounting Standards issued by International Accounting Standards Board (IASB) and endorsed by the FSC with effective date starting 2026

New, Amended and Revised Standards and Interpretations	Effective Date Announced by IASB
Amendments to IAS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments”	January 1, 2026
Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”	January 1, 2026
Annual Improvements to IFRS Accounting Standards - Volume 11	January 1, 2026
IFRS 17 “Insurance Contracts” (including the 2020 and 2021 amendments to IFRS 17)	January 1, 2023

As of the date the consolidated financial statements were authorized for issue, the merged company assesses that the amendments to the above standards and interpretations will not have a significant impact on the financial position and financial performance.

c. The IFRSs in issue but not yet endorsed and issued into effect by the FSC

New, Revised or Amended Standards and Interpretations	Effective Date Announced by IASB (Note 1)
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between An Investor and Its Associate or Joint Venture”	To be determined by IASB IFRS 18
IFRS 18, ‘Presentation and disclosure in financial statements’	January 1, 2027 (Note 2)
IFRS 19, ‘Subsidiaries without public accountability: disclosures’ (including the 2025 amendment)	January 1, 2027
Amendments to IAS 21: Translation into a presentation currency of a hyperinflationary economy	January 1, 2027

Note 1: Unless stated otherwise, the above IFRSs are effective for annual reporting periods beginning on or after their respective effective dates.

Note 2: On September 25, 2025, the FSC announced that IFRS 18 will take effect starting from January 1, 2028. Domestic entities could elect to apply IFRS 18 for an earlier period after the endorsement of IFRS 18 by the FSC.

IFRS 18 “Presentation and Disclosure in Financial Statements” and consequential amendments

IFRS 18 will supersede IAS 1” Presentation of Financial Statements”. The main changes comprise:

To classify items of income and expenses presented in the statement of profit or loss into the operating, investing, financing, income taxes and discontinued operations categories, the Group shall assess whether it has specified main business activities of investing in particular types of assets and providing financing to customers.
The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.
Provides guidance to enhance the requirements of aggregation and disaggregation: The Group shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Group shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Group labels items as “other” only if it cannot find a more informative label.
Disclosures on Management-defined Performance Measures (MPMs): When in public communications outside financial statements and communicating to users of financial statements management’s view of an aspect of the financial performance of the Group as a whole, the Group shall disclose related information about its MPMs in a single note to the financial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards and the income tax and non-controlling interests effects of related reconciliation items.

In addition, the following consequential amendments have been made to IAS 7 “Statement of Cash Flows”:

The Group shall use operating profit or loss as the starting point when presenting cash flows from operating activities under the indirect method.
Interest and dividends received by the Group shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. However, if, after assessment, the Group has a specific main operating activity, it shall determine how to classify dividends received, interest received and interest paid in the statement of cash flows by referring

to how it classifies dividend income, interest income and interest expense in the statement of profit or loss. The total of each of these cash flows shall be classified in a single category in the statement of cash flows.

Except for the above impact, as of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the other impacts of the above amended standards and interpretations on the Group's financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Statement of compliance

These consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IFRSs as endorsed and issued into effect by the FSC.

b. Basis of preparation

The consolidated financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair value and net defined benefit liabilities which are measured at the present value of the defined benefit obligation less the fair value of plan assets.

The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and based on the significance of the inputs to the fair value measurement in its entirety, are described as follows:

1) Level 1: Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

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

3) Level 3: Inputs are unobservable inputs for an asset or liability.

c. Classification of current and non-current assets and liabilities

Current assets include:

1) Assets held primarily for the purpose of trading;

2) Assets expected to be realized within 12 months after the reporting period; and

3) Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

Current liabilities include:

1) Liabilities held primarily for the purpose of trading;

2) Liabilities due to be settled within 12 months after the reporting period; and

3) Liabilities for which the Company is not able to defer the repayment deadline to more than 12 months after the balance sheet date unconditionally.

Assets and liabilities that are not classified as current are classified as non-current.

d. Basis of consolidation

This consolidated financial report contains the financial reports of the Company and entities (subsidiaries) controlled by the Company. The consolidated comprehensive income statement has included the operating profits and losses of the acquired or disposed subsidiaries for the current period from the acquisition date or to the disposal date. The subsidiaries' financial reports have been adjusted to bring their accounting policies into line with those of the merged company. In preparing consolidated financial reports, transactions, account balances, income and expenses between entities have been eliminated in full. The total consolidated profit and loss of subsidiaries is attributed to the owners of the Company and the non-controlling interests, even if the non-controlling interests thereby become a loss balance.

When the change in the merging company's ownership interest in the subsidiary does not result in a loss of control, it is treated as an equity transaction. The carrying amounts of the consolidated companies and non-controlling interests have been adjusted to reflect changes in their relative interests in subsidiaries. The difference between the adjustment amount of non-controlling interests and the fair value of the consideration paid or received is directly recognized as equity and attributed to the owners of the Company.

When the merging company loses control of its subsidiary, the profit or loss on disposal is the difference between the following two: (1) The fair value of the consideration received and the fair value of the remaining investment in the former subsidiary based on the date of loss of control, and (2) The assets (including goodwill), liabilities and non-controlling interests of the former subsidiary are aggregated based on the carrying amount on the date when control is lost. The merged company's accounting treatment for all amounts related to the subsidiary recognized in other comprehensive profits and losses is the same as the basis that the merged company must follow if it directly disposes related assets or liabilities.

The remaining investment in the former subsidiary is based on the fair value on the date of loss of control as the amount originally recognized as investment in the associated enterprise.

For details of subsidiaries, shareholding ratios and business items, please refer to Note 13, Table 1.

e. Business combinations

Acquisitions of businesses are accounted for using the acquisition method. Acquisition-related costs are generally recognized in profit or loss as they are incurred.

f. Foreign currencies

In preparing the financial statements of each individual entity, transactions in currencies other than the entity's functional currency (i.e., foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

Foreign currency monetary items are translated at the closing exchange rate on each balance sheet date. Exchange differences arising from the delivery or conversion of monetary items are recognized in profit or loss in the current period.

Non-monetary items denominated in foreign currencies that are measured at fair value are retranslated at the rates prevailing at the date when the fair value is determined. Exchange differences arising from the retranslation of non-monetary items are included in profit or loss for the period except for exchange differences arising from the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income, in which cases, the exchange differences are also recognized directly in other comprehensive income.

Non-monetary item denominated in a foreign currency and measured at historical cost is stated at the reporting currency as originally translated from the foreign currency.

For the purpose of presenting the consolidated financial statements, the functional currencies of foreign operations (including subsidiaries in other countries) and those that are prepared using functional currencies which are different from the currency of the Company are translated into the presentation currency, the New Taiwan dollar, as follows: Assets and liabilities are translated at the exchange rates prevailing at the end of the reporting period; and income and expense items are translated at the average exchange rates for the period. The resulting currency translation differences are recognized in other comprehensive income (attributed to the owners of the Company and non-controlling interests as appropriate).

If the partial disposal of a subsidiary of a foreign operating institution does not result in a loss of control, the accumulated exchange difference will be re-attributed to the non-controlling interests of the subsidiary in proportion and will not be recognized as profit or loss. In the case of any other partial disposal of foreign operating institutions, the accumulated exchange differences will be reclassified to profit or loss in proportion to the disposal.

g. Inventories

The inventory system includes raw materials, finished products and work in progress. Inventories are measured by the lower of cost and net realizable value. When comparing cost and net realizable value, except for inventories of the same category, they are based on individual items. Net realizable value refers to the balance of the estimated selling price under normal circumstances less the estimated costs required to complete the project and the estimated costs required to complete the sale. Inventory costs are calculated using the weighted average method.

h. Investments in associates:

Affiliated enterprises refer to enterprises that have significant influence on the merged company but are not subsidiaries or joint ventures.

The merged company adopts the equity method for investment in related enterprises.

Under the equity method, investment in affiliated enterprises is initially recognized at cost, and the carrying amount after acquisition increases or decreases with the merged company's share of affiliated enterprise profits and losses and other comprehensive profits and losses and profit distribution. In addition, changes in the merged company's interests in related enterprises are recognized based on the shareholding ratio.

When the merged company's share of losses to an associated enterprise is equal to or exceeds its equity in the associated enterprise (including the carrying amount of the investment in the associated enterprise under the equity method and other long-term interests that are essentially part of the merged company's net investment in the associated enterprise), the recognition of further losses will cease. The merged company recognizes additional losses and liabilities only to the extent that it has incurred legal obligations, constructive obligations or has made payments on behalf of related enterprises.

When assessing impairment, the consolidated company treats the entire carrying amount of the investment (including goodwill) as a single asset, compares the recoverable amount with the carrying amount, and conducts impairment testing. The recognized impairment loss is not allocated to the book amount of the investment. Any asset that is an integral part of the amount, including goodwill. Any reversal of impairment losses is recognized to the extent that the recoverable amount of the investment subsequently increases.

i. Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment loss.

Except for freehold land which is not depreciated, the depreciation of property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. The estimated useful lives, residual values and depreciation

method are reviewed at the end of each reporting period, with the effects of any changes in estimates accounted for on a prospective basis.

On derecognition of an item of property, plant and equipment, the difference between the sales proceeds and the carrying amount of the asset is recognized in profit or loss.

j. Investment properties

Investment properties are properties held to earn rentals and/or for capital appreciation. Investment properties include land held for a currently undetermined future use.

Investment properties are initially measured at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at cost less accumulated depreciation and accumulated impairment loss.

Depreciation for investment properties is recognized using the straight-line method.

On derecognition of an investment property, the difference between the net disposal proceeds and the carrying amount of the asset is included in profit or loss.

k. Impairment of property, plant and equipment, investment properties

The merged company assesses at each balance sheet date whether there is any indication that property, plant and equipment and investment property may have been impaired. If any indication of impairment exists, estimate the asset's recoverable amount. If the recoverable amount of an individual asset cannot be estimated, the Merger Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Shared assets are allocated to the smallest cash-generating unit group on a reasonable and consistent basis.

The recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.

When an impairment loss is subsequently reversed, the carrying amount of the corresponding asset, cash-generating unit or assets related to contract costs is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized for the asset, cash-generating unit or assets related to contract costs in prior years. A reversal of an impairment loss is recognized in profit or loss.

l. Financial instruments

Financial assets and financial liabilities are recognized in the consolidated balance sheet when the merged company becomes a party to the contractual terms of the instrument.

When financial assets and financial liabilities are initially recognized, if the financial assets or financial liabilities are not measured at fair value through profit or loss, they are measured at fair value plus transaction costs directly attributable to the acquisition or issuance of the financial assets or financial liabilities. Transaction costs that are directly attributable to the acquisition or issue of a financial asset or financial liability measured at fair value through profit or loss are recognized immediately in profit or loss.

1) Financial assets

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

a) Measurement categories

The types of financial assets held by the merged company are financial assets measured at fair value through profit or loss, financial assets measured at amortized cost and equity instrument investments measured at fair value through other comprehensive profit or loss.

i. Financial assets measured at fair value through profit or loss

Financial assets measured at fair value through profit or loss include mandatory financial assets measured at fair value through profit or loss. Mandatory financial assets measured at fair value through profit or loss include unspecified equity instrument investments measured at fair value through other comprehensive profit or loss.

Financial assets at fair value through profit or loss are subsequently measured at fair value, and any dividends in other income; any remeasurement gains or losses on such financial assets are recognized in other gains or losses. Fair value is determined in the manner described in Note 31.

ii. Financial assets at amortized cost

If the investment financial assets of the merged company meet both of the following conditions, they will be classified as financial assets measured at amortized cost:

i) The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

ii) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, Time deposits with original maturity exceeding 3 months, notes receivable, Accounts receivable, other receivables and refundable deposits, are measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

Interest income is calculated by applying the effective interest rate to the gross carrying amount of such a financial asset, except for:

i) Purchased or originated credit-impaired financial assets, for which interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of such financial assets.

ii) Financial assets that are not credit impaired on purchase or origination but have subsequently become credit impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost of such financial assets in subsequent reporting periods.

Cash equivalents include time deposits with original maturities within 3 months from the date of acquisition, which are highly liquid, readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These cash equivalents are held for the purpose of meeting short-term cash commitments.

iii. Investments in equity instruments at fair value through other comprehensive income

On initial recognition, the merged company may make an irrevocable election to designate investments in equity instruments as at fair value through other comprehensive income. Designation as at fair value through other comprehensive income is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.

Investments in equity instruments at fair value through other comprehensive income are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments; instead, it will be transferred to retained earnings.

Dividends on these investments in equity instruments are recognized in profit or loss when the merged company right to receive the dividends is

established, unless the dividends clearly represent a recovery of part of the cost of the investment.

b) Impairment of financial assets

The merged company assesses impairment losses on financial assets (including accounts receivable) measured at amortized cost based on expected credit losses at each balance sheet date.

Accounts receivable are recognized for a loss allowance based on lifetime expected credit losses. Other financial assets are evaluated to see whether the credit risk has increased significantly since they were initially recognized. If not, they are recognized as the loss allowance for 12-month expected credit loss. If they have increased considerably, they are recognized as the loss allowance based on lifetime expected credit loss.

Expected credit losses reflect the weighted average of credit losses with the respective risks of default occurring as the weights. The 12-month expected credit loss represents possible credit loss from breach of contract within 12 months of reporting date. Lifetime expected credit loss represents expected credit loss from breach of contract of financial instruments during period of existence.

For internal credit risk management purposes, the merged company determines that the following situations represent a default on financial assets without considering the collateral held:

i. Internal or external information show that the debtor is unlikely to pay its creditors

ii. When a financial asset is more than 180 days past due, unless the Company has reasonable and corroborative information to support a more lagged default criterion.

Impairment losses on all financial assets are reduced through the allowance account to reduce their carrying amounts.

c) Derecognition of financial assets

The merged company will only delist financial assets when the contractual rights to cash flows from financial assets expire, or when the financial assets have been transferred and almost all risks and rewards of ownership of the assets have been transferred to other enterprises.

When a financial asset measured at amortized cost is deducted as a whole, the difference between its carrying amount and the consideration received is

recognized in profit or loss. When an equity instrument investment measured at fair value is eliminated as a whole through other comprehensive gains and losses, the accumulated gains and losses are directly transferred to retained earnings and are not reclassified as profit or loss.

2) Equity instruments

Equity instruments issued by the merged company are classified as financial liabilities or equity based on the substance of the contractual agreement and the definitions of financial liabilities and equity instruments.

Equity instruments issued by the merged company are recognized at the amount obtained after deducting direct issuance costs.

3) Financial liabilities

a) Subsequent measurement

All financial liabilities are measured at amortized cost using the effective interest method.

b) Derecognition of financial liabilities

When a financial liability is excluded, the difference between its carrying amount and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized as profit or loss.

m. Provisions

The amount recognized as liability provision takes into account the risks and uncertainties of the obligation and is the best estimate of the expenditure required to settle the obligation on the balance sheet date.

n. Revenue recognition

After the merged company identifies performance obligations in the customer contract, it allocates the transaction price to each performance obligation and recognizes revenue when each performance obligation is met.

Revenue from the sale of goods

Merchandise sales revenue comes from the sales of security monitoring systems and electronic materials. Since when the aforementioned products are shipped, the customer already has the right to set the price and use the goods and bears the main responsibility for resale, and bears the risk of obsolescence of the goods, the merged company

recognizes revenue and accounts receivable at that point in time. Advances from customers are recognized as contract liabilities before the products are shipped.

When removing materials for processing, the control of ownership of the processed products has not been transferred, so no income is recognized when removing materials.

o. Leasing

At the inception of a contract, the merged company assesses whether the contract is, or contains, a lease.

1) Merger company as lessor

When the terms of the lease transfer substantially all the risks and rewards attached to the ownership of the asset to the lessee, it is classified as a financing lease. All other leases are classified as operating leases.

Under an operating lease, the lease payment system, minus the lease incentives, is recognized as income on a straight-line basis during the relevant lease period. The original direct costs incurred in obtaining the operating lease are added to the carrying amount of the underlying assets and recognized as expenses during the lease period on a straight-line basis.

2) Merger company as lessee

Except for low-value underlying asset leases and short-term leases where the recognition exemption is applicable, the lease payments are recognized as expenses on a straight-line basis during the lease period. For other leases, the right-of-use assets and lease liabilities are recognized on the inception date of the lease.

p. Employee benefits

1) Short-term employee benefits

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related services.

2) Retirement benefits

Determining the provision of pensions in the retirement plan is based on the period during which employees provide services, and the amount of pensions that should be provided is recognized as an expense.

The defined benefit costs of defined benefit retirement plans (including service costs, net interest and remeasurement amounts) are actuarially calculated using the

estimated unit benefit method. Service costs (including current service costs) and net interest on net certain welfare assets are recognized as employee welfare expenses when incurred. The remeasured amount (including actuarial gains and losses and return on planned assets after deducting interest) is at When incurred, they are recognized in other comprehensive profits and losses and included in retained earnings, and are not reclassified to profit or loss in subsequent periods.

Net defined benefit assets represent the remainder of provisions from defined benefit retirement plans. The net defined benefit assets shall not exceed the present value of the refund of withdrawals from the plan or the reduction in future withdrawals.

q. Income Tax

Income tax expense is the sum of current income tax and deferred income tax.

1) Current income tax

The merged company determines the income (loss) for the current period in accordance with the laws and regulations of each income tax reporting jurisdiction, and calculates the income tax payable (recoverable) accordingly.

The undistributed surplus calculated in accordance with the provisions of the Income Tax Law of the Republic of China plus income tax shall be recognized in the year of resolution of the shareholders' meeting.

Adjustments to the income tax payable in previous years shall be included in the current income tax.

2) Deferred income tax

Deferred income tax is calculated based on the temporary differences arising from the carrying amount of assets and liabilities recorded in the accounts and the taxable basis for calculating taxable income.

Deferred income tax liabilities are generally recognized for all taxable temporary differences, whereas deferred income tax assets are recognized to the extent that it is probable that taxable income will be available against which the temporary differences and loss deductions can be utilized.

Taxable temporary differences related to investment subsidiaries, related enterprises and joint agreements are recognized as deferred income tax liabilities. However, if the company can control the timing of the reversal of the temporary differences, and the temporary differences are likely to be recognized in the foreseeable future, Exceptions are made where there is no foreseeable future change. Deductible temporary differences related to such investments will be recognized as deferred income tax only to the extent that it is probable that

sufficient taxable income will be available to realize the temporary differences and that they are expected to reverse in the foreseeable future. assets.

The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable income will be available to recover all or part of the assets. Those that were not originally recognized as deferred income tax assets will also be re-examined at each balance sheet date and will likely be re-examined in the future.

If taxable income is generated for the purpose of recovering all or part of the assets, the book amount shall be adjusted and increased. Deferred income tax assets and liabilities are measured by the tax rate for the current period when the liability is expected to be settled or the asset is realized. The tax rate is based on the tax rate that has been enacted or substantively enacted on the balance sheet date. It is based on tax rates and tax laws. The measurement of deferred income tax liabilities and assets reflects the tax consequences arising from the manner in which the Company expects to recover or settle the carrying amount of its assets and liabilities at the balance sheet date.

3) Current and deferred income tax

Current and deferred taxes are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity; in which case, the current and deferred taxes are recognized in other comprehensive income or directly in equity, respectively

THE MAIN SOURCE OF UNCERTAINTY IN MAJOR ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS

When the consolidated company adopts accounting policies, management must make relevant judgments, estimates and assumptions based on historical experience and other relevant factors for which relevant information is not easily obtained from other sources. Actual results may differ from estimates.

When the merged company develops significant accounting estimates, the possible impact will be included in the consideration of relevant major estimates such as cash flow estimates, growth rates, discount rates, profitability, etc. The management will continue to review estimates and basic assumptions.

6. CASH AND CASH EQUIVALENTS

	December 31
	2025	2024
Cash on hand	$ 186	$ 149
Bank checks and demand deposits	106,687	141,121
Cash equivalents
Time deposits (investments with original maturities of 3 months or less)	165,978	484,892
	$ 272,851	$ 626,162

The market interest rate range for bank time deposits on the balance sheet date is as follows:

	December 31
	2025	2024
Bank time deposit	1.29%~3.70%	1.29%~4.10%

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

	December 31
	2025	2024
Financial assets mandatorily classified as at Fair value through profit or loss Non-derivative financial assets
—Domestic publicly traded shares	$ 1,652	$ 1,662

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME INVESTMENTS IN EQUITY INSTRUMENTS

	December 31
	2025	2024
Non-curren
Domestic investment
Unlisted shares	$ 52,852	$ 49,761
Listed shares	8,725	-
Fund beneficiary certificates	17,207	6,100
	$ 78,784	$ 55,861

The merged company invests based on medium- and long-term strategic objectives and expects to make profits through long-term investment. The management of the merged company believes that including the short-term fair value fluctuations of these investments in profit and loss is inconsistent with the aforementioned long-term

investment plan, so it chooses to designate these investments as measured at fair value through other comprehensive profits and losses.

9. FINANCIAL ASSETS AT AMORTIZED COST

	December 31
	2025	2024
Current
Domestic investments
Time deposits with original maturities of more than three months (a)	$803,584	$621,003
Pledged time deposits (e)	18,500	-
	$822,084	$621,003
Non-current
Domestic investments
edged deposit certificate (e)	$ 1,500	$ 17,600
Foreign investment
TSMC Arizona corporate bonds (b)	24,860	25,898
APPLE corporate bonds (c)	36,840	38,407
	$ 63,200	$ 81,905

a. As of December 31, 2025 and 2024, the interest rate range for time deposits with an original maturity of more than 3 months is $1.46\%$ to $4.38\%$ and $1.29\%$ to $5.20\%$ per annum.
b. During February to March 2023, the Group purchased overseas corporate bonds issued by TSMC Arizona with maturities ranging from 2029 to 2032, totaling US$789 thousand (equivalent to NT$23,800 thousand). The bonds carried coupon rates ranging from 4.13% to 4.25%, with effective interest rates ranging from 4.30% to 4.67%.
c. During February to May 2023, the Group purchased overseas corporate bonds issued by Apple with maturities ranging from 2045 to 2047, totaling US$1,171 thousand (equivalent to NT$35,656 thousand). The bonds carried coupon rates ranging from 4.25% to 4.65%, with effective interest rates ranging from 4.49% to 4.93%.
d. For information related to credit risk management and impairment assessment of financial assets measured at amortized cost, please refer to Note 10.
e. For information on financial assets measured at amortized cost pledged as collateral, please refer to Note 32.

10. DEBT CREDIT RISK MANAGEMENT OF FINANCIAL INSTRUMENT INVESTMENT

The credit rating of the overseas corporate bonds invested by the consolidated company is investment grade or above (inclusive) and is a debt instrument with low credit risk in terms of impairment assessment. The credit rating information is provided by an independent rating agency.

The merging company continues to track external rating information to monitor changes in the credit risk of the debt instruments it invests, and also reviews other information such as bond yield curves and material information from the debtor to assess whether the credit risk of the debt instrument investment has increased significantly since the original recognition.

The merging company considers the historical default probability and default loss rate of each grade provided by external rating agencies, the current financial situation of the debtor and the prospects of the industry in which it operates, to measure the investment in debt instruments. 12 monthly expected credit losses or lifetime expected credit losses.

As of December 31, 2025 and 2024, The merging company has assessed that the expected credit loss rate of the overseas corporate bonds held is 0 %.

11. NOTES RECEIVABLE AND ACCOUNTS RECEIVABLE

	December 31
	2025	2024
Notes receivable
Measured at amortized cost
Total carrying amount	$ 19,636	$ 11,225
Accounts receivable
Measured at amortized cost
Total carrying amount	$ 378,553	$ 251,410
Less: allowance for loss	( 55 )	( 10,585 )
	$ 378,498	$ 240,825
Arising from operations	$ 372,631	$ 251,410
Not arising from operating	5,922	-
Less: allowance for loss	( 55 )	( 10,585 )
	$ 378,498	$ 240,825

Accounts receivable

For the merchandise sales of the merged company, except for the advance payment transactions, the average credit period is 30 to 90 days, no interest will be accrued on accounts receivable.

Before accepting a new customer, the merged company evaluates the credit quality of the potential customer through an internal credit rating review form and sets the customer's credit limit. The credit limit and rating of customers are reviewed once a year. Accounts

receivable that are neither overdue nor impaired are rated with the best credit rating based on the internal credit rating review form used by the consolidated company.

The merged company recognizes provision losses on accounts receivable based on expected credit losses during the duration. Expected credit losses during the duration are calculated using a provision matrix, which considers the customer's past default record and current financial conditions, industry economic conditions, and industry prospects at the same time. Because the historical experience of credit losses of the merged company shows that there is no significant difference in the loss patterns of different customer groups, the preparation matrix does not further differentiate the customer groups and only sets the expected credit loss rate based on the number of days that accounts receivable is overdue.

If there is evidence that the counterparty is facing serious financial difficulties and the merging company cannot reasonably expect the recoverable amount, the merging company will directly write off the relevant accounts receivable, but will continue to pursue recovery activities, and the amount recovered due to recourse will be recognized in profit and loss.

The merged company measures the provision losses on notes receivable and accounts receivable according to the provision matrix as follows:

December 31, 2025

	Not Past Due	1 to 180 Days Past Due	181 to 365 Days Past Due	Over 365 Days Past Due	Total
Total carrying amount	$ 397,970	$ 164	$ 55	$ -	$ 398,189
Allowance for losses (expected during lifetime credit loss)	-	-	(55)	-	(55)
amortized cost	$ 397,970	$ 164	$ -	$ -	$ 398,134

December 31, 2024

	Not Past Due	1 to 180 Days Past Due	181 to 365 Days Past Due	Over 365 Days Past Due	Total
Total carrying amount	$ 249,261	$ 2,786	$ 3	$ 10,585	$ 262,635
Allowance for losses (expected during lifetime credit loss)	-	-	-	(10,585)	(10,585)
amortized cost	$ 249,261	$ 2,786	$ 3	$ -	$ 252,050

Information on changes in allowance for losses on accounts receivable is as follows:

	For the Year Ended December 31
	2025	2024
Balance at January 1	$ 10,585	$ 10,585
Add: Provision for impairment losses in the current year	55	-
Less: Loss of control of subsidiary	( 10,585 )	-
Balance at December 31	$ 55	$ 10,585

12. INVENTORIES

	December 31
	2025	2024
Finished goods	$ 16,075	$ 23,273
Work in process	478	443
Raw materials	16,999	21,227
Goods	94,338	61,976
	$ 127,890	$ 106,919

The cost of inventories recognized as cost of goods sold for the years ended December 31, 2025 and 2024 included inventory write-downs (reversal) of $(2,114) thousand and $2,041 thousand. Inventory write-downs were reversed as a result of the sale of inventory with a longer aging period.

13. SUBSIDIARIES

a. Subsidiaries included in consolidated financial reports

The entities preparing this consolidated financial report are as follows:

Investor	Investee	Main Business	% of Ownership		Description
			December 31	2025
AV TECH Corporation	Chieftron International Corp. (CHIEFTRON INTERNATIONAL)	Semiconductor Components Agent	82.31	82.31	Note 1
	AV TECH Investment Corp. (AV TECH Investment)	General investment industry	100.00	100.00	-
	AVTECH Security Corporation (AVTECH Security)	Production and sales of surveillance and anti-theft systems	84.09	90.04	Note 2
	Q.S.C. Industry Co., Ltd. (Q.S.C. Industry)	Electrical and audio-visual product manufacturing	88.53	88.53	Note 3

(Continued)

Investor	Investee	Main Business	% of Ownership		Description
			December 31
			2025	2024
AV TECH	YesGo Tech	Automation	-	22.68	Note 4
Investment	Corporation (YesGo)	product research and development
	Info-Tech Corp	Software development and sales	40.67	51.67	Note 5
Q.S.C. Industry Co., Ltd	YesGo Tech Corporation (YesGo)	Automation product research and development	-	57.00	Note 4

(Concluded)

Note 1: As a subsidiary with significant non-controlling interests, the Merged Company sold its equity interest in CHIEFTRON INTERNATIONAL in August 2024, causing the Merged Company's consolidated shareholding ratio in CHIEFTRON INTERNATIONAL to drop from $84.11\%$ to $82.31\%$ .

Note 2: The merged company sold its controlling stake in AVTECH Security in June 2024, July 2024 and October 2025, respectively, resulting in the merged company's consolidated shareholding ratio in it decreasing from $95.25\%$ to $84.09\%$ .

Note 3: The merged company sold its equity interest in Q.S.C. Industry in December 2024, causing the merged company's combined shareholding ratio in it to drop from $100.00\%$ to $88.53\%$ .

Note 4: YesGo processed a cash capital increase on March 22, 2024. Shengtike Investment did not subscribe according to its shareholding ratio. Instead, Q.S.C. Industr increased its capital in the company, which increased the merged company's comprehensive shareholding ratio in it from $56.70\%$ to $79.68\%$ . The Group disposed of its entire equity interest in YesGo in June 2025, which resulted in the Group's aggregate shareholding percentage decreasing from $79.68\%$ to $0\%$ .

Note 5: The Consolidated Company disposed of its equity interest in AVCLOUD TECHNOLOGY in September 2025. Following the decrease in the Consolidated Company's comprehensive shareholding from $51.67\%$ to $40.67\%$ , the Group lost control over AVCLOUD TECHNOLOGY while retaining significant influence. Accordingly, the investment is

subsequently measured using the equity method as an investment in associate.

b. Subsidiaries not included in consolidated financial reports: None.
c. Information on subsidiaries with significant non-controlling interests

	Proportion of equity and voting rights held by non-controlling interests
	December 31
Name of Subsidiary	2025	2024
CHIEFTRON INTERNATIONAL	17.69%	17.69%

For information on the principal place of business and country of company registration, please refer to Table 1.

	Profit and loss allocated to non-controlling interests		Non-controlling interests
Name of Subsidiary	2025	2024	December 31,2025	December 31,2024
CHIEFTRON INTERNATIONAL	$ 10,717	$ 10,019	$ 76,757	$ 75,732

The summarized financial information of the following subsidiaries is prepared based on the amounts before elimination of inter-company transactions:

CHIEFTRON INTERNATIONAL

	December 31
	2025	2024
Current assets	$ 531,921	$ 481,074
Non-current assets	55,260	74,655
Current liabilities	( 152,062 )	( 126,178 )
Non-current liabilities	( 1,158 )	( 1,385 )
Equity	$ 433,961	$ 428,166
Equity attributable to:
Owner of our company	$ 357,204	$ 352,434
Non-controlling interest	76,757	75,732
	$ 433,961	$ 428,166

(Continued)

	December 31
	2025	2024
Operating revenue	$ 1,041,125	$ 726,153
Net profit for the year	$ 60,586	$ 61,012
Other comprehensive income (loss)	121	1,788
Total comprehensive income	$ 60,707	$ 62,800
Net profit attributable to:
Owner of our company	$ 49,869	$ 50,993
Non-controlling interest	10,717	10,019
	$ 60,586	$ 61,012
Total comprehensive profit and loss is attributable to:
Owner of our company	$ 49,969	$ 52,493
Non-controlling interest	10,738	10,307
	$ 60,707	$ 62,800
Cash flow
Business activities	($ 90,696)	$ 75,555
Investment activities	101,756	( 34,574 )
Financing activities	( 54,911 )	( 47,526 )
Impact of exchange rate changes	( 545 )	883
Net cash outflow	($ 44,396)	($ 5,662 )
Dividends paid to non-controlling interests
Non-controlling interest	$ 9,712	$ 7,554

(Concluded)

14. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

Investments in associates

	December 31
	2025	2024
Associates that are not individually material	$ 74,294	$ 72,450

Summary information of associates that are not individually material:

	For the Year Ended December 31
	2025	2024
The Group's share of:
Net profit for the year	$ 3,782	$ 9,843

Please refer to Table 1 and 3 for information on the business nature, main business location and country of company registration of the above-mentioned affiliated enterprises.

Investments accounted for using the equity method and the Company's share of profit or loss of its investees for the years 2025 and 2024 were calculated based on financial statements that have not been audited by independent auditors. However, the management of the Company believes that the lack of audited financial statements of the investees does not have a material impact.

15. PROPERTY, PLANT AND EQUIPMENT

	December 31
	2025	2024
Assets used by the Company	$ 694,225	$ 700,739
Operating lease	1,602	1,650
	$ 695,827	$ 702,389

a) Assets used by the Company

	Self-owned land	Buildings	Machinery and equipment	Transportation on equipment	Office equipment	Other equipment	Total
Cost
Balance on January 1, 2025	$ 494,616	$ 309,019	$ 20,133	$ 713	$ 5,711	$ 58,324	$ 888,516
Additions	-	-	( 20,133 )	-	( 5,711 )	( 58,324 )	( 84,168 )
Balance on December 31, 2025	$ 494,616	$ 309,019	$ -	$ 713	$ -	$ -	$ 804,348
Accumulated Depreciation
Balance on January 1, 2025	$ -	$ 103,243	$ 20,133	$ 366	$ 5,711	$ 58,324	$ 187,777
Depreciation Expenses	-	-	( 20,133 )	-	( 5,711 )	( 58,324 )	( 84,168 )
Depreciation Expenses	-	6,396	-	118	-	-	6,514
Balance on December 31, 2025	$ -	$ 109,639	$ -	$ 484	$ -	$ -	$ 110,123
Net amount on December 31, 2025	$ 494,616	$ 199,380	$ -	$ 229	$ -	$ -	$ 694,225
Cost
Balance on January 1, 2024	$ 494,616	$ 307,919	$ 20,133	$ 713	$ 5,711	$ 58,324	$ 887,416
Additions	-	1,100	-	-	-	-	1,100
Balance on December 31, 2024	$ 494,616	$ 309,019	$ 20,133	$ 713	$ 5,711	$ 58,324	$ 888,516
Accumulated Depreciation
Balance on January 1, 2024	$ -	$ 96,254	$ 20,133	$ 248	$ 5,711	$ 58,232	$ 180,578
Depreciation Expenses	-	6,989	-	118	-	92	7,199
Balance on December 31, 2024	$ -	$ 103,243	$ 20,133	$ 366	$ 5,711	$ 58,324	$ 187,777
Net amount on December 31, 2024	$ 494,616	$ 205,776	$ -	$ 347	$ -	$ -	$ 700,739

b) Operating lease

	Buildings
Cost
Balance as of January 1 and December 31, 2025	$ 2,435
Accumulated Depreciatio
Balance on January 1, 2025	$ 785
Depreciation Expenses	48
Balance on December 31, 2025	$ 833
Net amount on December 31, 2025	$ 1,602
Cost
Balance as of January 1 and December 31, 2024	$ 2,435
Accumulated Depreciatio
Balance on January 1, 2024	$ 737
Depreciation Expenses	48
Balance on December 31, 2024	$ 785
Net amount on December 31, 2024	$ 1,650

Depreciation expenses are calculated on a straight-line basis based on the following service life:

	Assets used by the company	Business leasing
Buildings	50 to 53 years	50 to 53 years
Transportation equipment	6 years	-

LEASE ARRANGEMENTS

Please refer to Notes 15 and 17 respectively for the agreements on leasing owned real estate, plant and equipment and investment real estate of the merged company under operating leases.

	For the Year Ended December 31
	2025	2024
Expenses relating to short-term leases	$ 230	$ 273
Total cash outflow for leases	($ 230)	($ 273)

The merged company chooses to apply the recognition exemption to office equipment leases that qualify as short-term leases and does not recognize related right-of-use assets and lease liabilities for these leases.

INVESTMENT PROPERTIES

	Investment Properties
Cost
Balance as of January 1 and December 31, 2025	$ 42,948
Accumulated Depreciation
Balance at January 1, 2025	$ 7,021
Depreciation expense	274
Balance at December 31, 2025	$ 7,295
Net amount on December 31, 2025	$ 35,653

(Continued)

	Investment Properties
Cost
Balance as of January 1 and December 31, 2024	$ 42,948
Accumulated Depreciation
Balance at January 1, 2024	$ 6,747
Depreciation expense	274
Balance at December 31, 2024	$ 7,021
Net amount on December 31, 2024	$ 35,927
	(Concluded)

The investment properties were leased out for 1 year, when the lessee exercised its right to renew the lease, it agreed to adjust the rent based on the market rent. The lessee does not have the preferential right to purchase investment real estate at the end of the lease period.

The merged company's investment real estate assets are calculated on a straight-line basis 52.5 to 55 years Depreciation is calculated over the useful life of the year.

The fair value of investment real estate has not been evaluated by independent evaluators. It is only evaluated by the merged company's management with reference to market evidence of similar real estate transaction prices. The fair value is as follows:

	December 31
	2025	2024
Investment properties	$ 73,734	$ 79,322

18. ACCOUNTS PAYABLE

	December 31
	2025	2024
Accounts payable
Occurs due to business	$ 141,345	$ 134,130

The average credit period for accounts payable is 60-90 days. The merged company has a financial risk management policy to ensure that all payables are repaid within the pre-agreed credit period.

19. OTHER PAYABLES

	December 31
	2025	2024
Salaries and bonuses payable	$ 15,494	$ 17,828
Employee compensation and directors’ compensation payable	18,428	23,273
Payable to pensions, labor health insurance, labor fees and Other expenses, etc	14,911	13,662
	$ 48,833	$ 54,763

20. PROVISION

	December 31
	2025	2024
Non-current
Employee Benefits	$ 21,625	$ 21,626

The provision for employee benefit liabilities is the estimation of employee long-term service rewards.

21. BENEFITS AFTER RETIREMENT PLAN

a) Confirm allocation plan

Among the merged companies, companies operating in Taiwan adopted a pension plan under the Labor Pension Act (LPA), which is a state-managed defined contribution plan. Under the LPA, the Company makes monthly contributions to employees' individual pension accounts at 6% of monthly salaries and wages.

Employees of the merged company's subsidiaries in China are members of the retirement benefit plan operated by the Chinese regional government. The subsidiary is required to allocate a specified percentage of payroll costs to the retirement benefit plan to fund the plan. The combined company's obligation with respect to this government-operated retirement benefit plan is only to contribute a specified amount.

b) Defined benefit plans

The pension system managed by the merged company in accordance with my country's "Labor Standards Act" is a defined benefit retirement plan managed by the government. The payment of employee pensions is calculated based on the length of service and the average salary in the six months before the approved retirement date. The merged company will allocate 2% of the employees' total monthly salary as pension, and deposit it in a special account of the Bank of Taiwan in the name of the Labor Retirement Reserve Supervisory Committee. Before the end of the year, if the balance of the special account is estimated to be insufficient, the benefit will be paid within the next year. For workers who are estimated to be eligible for retirement, the difference will be allocated in one lump sum before the end of March of the following year. The special account is managed by the Labor Fund Utilization Bureau of the Ministry of Labor, and the merged company has no right to influence the investment management strategy. However, due to the sufficient provision by the merged company, the competent authority has agreed to suspend the provision of labor retirement reserves in 2025 and 2024.

The amounts of defined benefit plans included in the consolidated balance sheet are as follows:

	December 31
	2025	2025
Present value of defined benefit obligation	$ 7,862	$ 7,856
Fair value of plan assets	( 31,015 )	( 28,925 )
Net defined benefit assets	($ 23,153 )	($ 21,339 )

The changes in net defined benefit assets are as follows:

	Present value of defined benefit obligations	Fair value of plan assets	Net defined benefit assets
Balance at January 1, 2024	$ 7,515	($ 26,509)	($ 18,994)
Interest expenses (income)	51	( 298)	( 247)
Recognized in profit or loss	51	( 298)	( 247)
Remeasurement
Return on plan assets (excluding amounts included in net interest)	-	( 2,118 )	( 2,118 )
Actuarial loss — Changes in financial assumptions	( 190 )	-	( 190 )
Actuarial loss — Experience adjustments	210	-	210
Recognized in other comprehensive income	20	( 2,118 )	( 2,098 )
Balance at December 31, 2024	7,586	( 28,925 )	( 21,339 )
Interest expenses (income)	67	( 430 )	( 363 )
Recognized in profit or loss	67	( 430 )	( 363 )
Remeasurement
Return on plan assets (excluding amounts included in net interest)	-	( 1,727 )	( 1,727 )
Actuarial loss — Changes in financial assumptions	134	-	134
Actuarial loss — Experience adjustments	142	-	142
Recognized in other comprehensive income	276	( 1,727 )	1,451
Benefits paid	( 67 )	67	-
Balance at December 31, 2025	$ 7,862	($ 31,015)	($ 23,153)

The amounts recognized in profit or loss for the defined benefit plans are summarized by function as follows:

	For the Year Ended December 31
	2025	2024
Management expenses	($ 363)	($ 247)

Due to the pension plans under the Labor Standards Act, the merged company is exposed to the following risks:

1) Investment risk: The plan assets are invested in domestic and foreign equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the Bureau or under the mandated management. However, in accordance with relevant regulations, the return generated by plan assets should not be below the interest rate for a 2-year time deposit with local banks.

2) Interest risk: A decrease in the government bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plans' debt investments.

3) Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation.

The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The significant assumptions used for the purposes of the actuarial valuations were as follows:

	December 31
	2025	2024
Discount rates	1.4%	1.7%
Expected rates of salary increase	2.0%	2.0%

If there are reasonable and possible changes in material actuarial assumptions while all other assumptions remain unchanged, the amount of increase (decrease) in the present value of the defined benefit obligation is as follows:

	December 31
	2025	2024
Discount rate
0.1% increase	($ 45)	($ 46)
0.1% decrease	$ 46	$ 46
Expected rates of salary increase
0.1% increase	$ 41	$ 42
0.1% decrease	($ 41)	($ 42)

Since actuarial assumptions may be related to each other and it is unlikely that a

single assumption will change, the above sensitivity analysis may not reflect the actual changes in the present value of the defined benefit obligation.

	December 31
	2025	2024
The expected amount of contribution within 1 year	$ -	$ -
The average maturity period of defined benefit obligations	10.3 years	11.7 years

22. EQUITY

a. Ordinary share capital

	December 31
	2025	2024
Nominal shares (in thousand shares)	120,000	120,000
Nominal share capital	$1,200,000	$1,200,000
Number of shares issued and payments received in full (in thousand shares)	80,000	80,000
Share capital issued	$800,000	$800,000

The share issued had a par value of NT$10. Each share entitles the rights to dividends and to vote.

b. Capital surplus

	December 31
	2025	2024
May be used to offset a deficit, distributed as cash dividends, or transferred to share capital
Employee share options	$ 15,325	$ 15,325
May only be used to offset a deficit
Changes in ownership interests in subsidiaries	2,236	2,236
	$ 17,561	$ 17,561

c. Retained earnings and dividends policy

According to the surplus distribution policy stipulated in the company's articles of association, if the company has a surplus in its annual final accounts, it shall first withdraw taxes and make up for the accumulated losses over the years, and then withdraw the profits later. 10% It is the statutory surplus reserve, and the special surplus reserve shall be appropriated or transferred in accordance with laws or regulations of the competent authority. If there is still a surplus, the remaining balance shall be added to the accumulated undistributed surplus in previous years. The board of directors shall prepare a specific surplus distribution proposal:

1) When the issuance of new shares is adopted, the shares shall be distributed after

a resolution of the shareholders' meeting;

2) In accordance with the provisions of Article 240, Item 5 of the Company Law, the Board of Directors is authorized to 3 divided 2 The attendance of the above directors, and the resolution of more than half of the directors present, will allocate all or part of the dividends and bonuses or the statutory surplus and capital reserve prescribed in Paragraph 1 of Article 241 of the Company Law to the payment of cash. method and report to the shareholders' meeting.

For the employee and director remuneration distribution policy stipulated in the company's articles of association, please refer to Note 24 f. Employee remuneration and director remuneration.

The company will consider the company's environment and growth stage, respond to future capital needs and long-term financial planning, and meet shareholders' needs for cash inflows, and make provisions from the net profit after tax for the current year. 50% The above dividends are distributed to shareholders, of which cash dividends shall not be less than the total amount 10%.

The statutory surplus reserve shall be appropriated until the balance reaches the total paid-in share capital of the company. The statutory surplus reserve may be used to make up for losses. When the company has no losses, the statutory surplus reserve exceeds the actual Total amount of capital received 25% In addition to being allocated to recharge share capital, the remaining part can also be distributed in cash.

The Company held its annual general meetings of shareholders on June 18, 2025 and June 19, 2024, at which the appropriations of earnings for the years 2024 and 2023, respectively, were approved as follows:

	Appropriation of Earnings		Dividends Per Share (NT$)
	For the Year Ended December 31		For the Year Ended December 31
	2024	2023	2024	2023
Cash dividends	$ 80,000	$ 60,000	$ 1.00	$ 0.75
Legal reserve	9,811	5,777
Special reserve	( 4,051 )	( 4,853 )

The appropriations of cash dividends had been approved by the Company's Board of Directors on March 7, 2025 and March 13, 2024, respectively; the other appropriations of earnings had been approved by the shareholders in their annual general meetings on June 18, 2025 and June 19, 2024, respectively.

The appropriation of earnings for 2025, as proposed by the Company's Board of Directors on March 6, 2026, is as follows:

	2025
Legal reserve	$ 9,001
Special reserve	($ 111)
Cash dividends	$ 80,000
Cash dividends per share(NT$)	$ 1.00

The above-mentioned cash dividends were approved by the Corporation's board of directors for distribution, and the other appropriation of earnings is subject to the resolution of the shareholders in their meeting to be held on June 17, 2026.

d. Non-controlling interests

	For the Year Ended December 31
	2025	2024
Balance at January 1	$ 85,387	$ 69,048
Disposal of partial interests of subsidiaries	3,570	13,040
Disposal of a subsidiary	( 863 )	-
Adjustment of changes in capital reserves of subsidiaries	-	121
Capital reduction and return of share capital from subsidiaries	( 772 )	-
Capital increase in non-controlling interests	-	150
Appropriation of earnings
Cash dividends	( 10,683 )	( 7,612 )
Profit for the year	12,698	10,351
Other comprehensive gains and losses for the year
Exchange differences ontranslating the financialstatements of foreign operations	21	289
Unrealized valuation gains and losses on financial assets measured at fair value through other comprehensive income and losses	201	-
Balance at December 31	$ 89,559	$ 85,387

23. OPERATING REVENUE

	For the Year Ended December 31
	2025	2024
Revenue from customer contracts
Sales revenue	$ 1,284,133	$ 938,840

a. Explanation of customer contracts

Revenue from merchandise sales comes from the sale of security monitoring systems. When the performance obligations are met, the customer has the right to set a price and use the aforementioned products and bears the main responsibility for resale, and bears the risk of obsolescence of the goods. This is because the company recognizes

revenue when the performance obligations are met. Advances from customers are recognized as contract liabilities before the products are shipped.

b. Balance of contracts

	December 31, 2025	December 31, 2024	January 1, 2024
Notes receivable and net accounts receivable (Note 11)	$ 398,134	$ 252,050	$ 217,284
Contract liabilities	$ 21,505	$ 18,130	$ 16,428

Contract liabilities arise from sales of goods.

c. Breakdown of customer contract revenue

Please refer to Note 35 for revenue breakdown information.

24. NET PROFIT FOR THE YEAR

a. Other income

	For the Year Ended December 31
	2025	2024
Rental income	$ 22,119	$ 26,298
Service revenue	7,575	4,793
Dividend income	244	58
Write-off of prepayments from customers two years overdue	19	667
Other	1,270	12,911
	$ 31,227	$ 44,727

b. Other profits and losses

	For the Year Ended December 31
	2025	2024
Net (loss) gain on financial assets at FVTPL	($ 10)	$ 322
Gain on disposal of equity method investments	9	26
Net (loss) gain on foreign exchange	(20,617)	38,960
Miscellaneous expenses	(620)	(274)
	($ 21,238)	$ 39,034

c.Depreciation

	For the Year Ended December 31
	2025	2024
Property, Plant and Equipment	$ 6,562	$ 7,247
Investment property	274	274
	$ 6,836	$ 7,521
Depreciation expense by function
Cost of goods sold	$ 2,306	$ 2,521
Operating expenses	4,256	4,726
Miscellaneous expenses	274	274
	$ 6,836	$ 7,521

d. Direct operating expenses of investment properties

	For the Year Ended December 31
	2025	2024
Generate rental income	$ 332	$ 332

f. Employee benefits expenses

	For the Year Ended December 31
	2025	2024
Short term employee benefits	$ 128,574	$ 122,455
Post-employment benefits
Defined contribution plans	3,301	3,375
Defined benefit plans (Note 21)	( 363 )	( 247 )
Other employee benefits	5,825	5,530
Total employee benefit expenses	$ 137,337	$ 131,113
Summary by function category
Cost of goods sold	$ 38,165	$ 37,616
Operating expenses	99,172	93,497
	$ 137,337	$ 131,113

g. Employee remuneration and director remuneration

In accordance with the Articles of Association, the Company deducts the profit before the distribution of employee and director remuneration from the net profit before tax for the current year. After making up for the losses of previous years, if there is any balance, it shall be allocated to employee remuneration and director remuneration at a rate of not less than 6% and not more than 3% respectively. Pursuant to the August 2024 amendment of the Securities and Exchange Act, the Company amended its Articles of Incorporation in June 2025 to mandate that one-third of the total employee compensation pool be reserved for junior-level employees. The estimated employee and director remuneration for 2025 and 2024 were resolved by the Board of Directors on March 6, 2026 and March 7, 2025, respectively, as follows:

Estimation ratio

	For the Year Ended December 31
	2025	2024
Employee compensation	6.0%	6.1%
Remuneration of directors	2.0%	1.8%
Amount	For the Year Ended December 31
	2025	2024
Employee compensation	$ 5,510	$ 7,100
Remuneration of directors	$ 1,860	$ 2,100

If there is still a change in the amount after the annual consolidated financial report is released, it will be treated as a change in accounting estimates and will be adjusted and accounted for in the next year.

There is no difference between the actual amount of employee compensation and director's compensation for 2024 and 2023 and the amount recognized in the consolidated financial report for 2024 and 2023.

For information on employee remuneration and director remuneration decided by the company's board of directors, please go to the "Public Information Observation Station" of the Taiwan Stock Exchange.

25. INCOME TAX

a. The main components of income tax expense recognized in profit and loss

	For the Year Ended December 31
	2025	2024
Current tax
In respect of the current year	$ 15,703	$ 14,772
Income tax on unappropriated earnings	618	-
Adjustments for prior years	( 2,209 )	198
	14,112	14,970
Deferred tax
In respect of the current year	( 2,516 )	10,465
Adjustments for prior years	( 3,192 )	-
	( 5,708 )	10,465
Income tax expense recognized in profit or loss	$ 8,404	$ 25,435

A reconciliation of accounting profit and income tax expense is as follows:

	For the Year Ended December 31
	2025	2024
Income tax expense calculated at the statutory rate	$ 110,096	$ 135,964
Net loss before tax is calculated based on the statutory tax rate income tax	$ 22,019	$ 27,192
Items that should be adjusted when determining taxable income	330	320
Tax-free income	( 49 )	( 12 )
Income tax on unappropriated earnings	618	-
Loss carryforwards used	( 7,515 )	( 2,390 )
Unrecognized temporary differences	( 1,598 )	127
Adjustments for prior years’ tax	( 5,401 )	198
Income tax expense recognized in profit or loss	$ 8,404	$ 25,435

b. Income tax recognized in other comprehensive income

	For the Year Ended December 31
	2025	2024
Deferred tax
In respect of the current year
— Remeasurement of defined benefit plans	$ 290	$ 419

c. Current income tax assets and liabilities

	December 31
	2025	2024
Current income tax assets
Tax refund receivable	$ 2,786	$ 2,736
Current income tax liabilities
Income tax payable	$ 8,601	$ 4,974

d. Deferred income tax assets and liabilities

The movements of the deferred tax assets and liabilities are as follows:

For the Year Ended December 31, 2025

	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Closing Balance
Deferred tax assets
Temporary difference
Allowance for doubtful debt losses	$ 1,546	$ -	$ -	$ 1,546
Provision	4,327	-	-	4,327
Unrealized exchange loss	-	-	-	-
Allowance for inventory depreciation losses	20,188	( 2,108 )	-	18,080
	$ 26,061	( $ 2,108 )	$ -	$ 23,953
Deferred tax liabilities
Temporary difference
Defined benefit plans	$ 4,267	$ 74	$ 290	$ 4,631
Unrealized exchange benefits	12,159	( 7,890 )	-	4,269
	$ 16,426	( $ 7,816 )	$ 290	$ 8,900

For the Year Ended December 31, 2024

	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Closing Balance
Deferred tax assets
Temporary difference
Allowance for doubtful debt losses	$ 1,546	$ -	$ -	$ 1,546
Provision	4,327	-	-	4,327
Unrealized exchange loss	1,121	( 1,121 )	-	-
Allowance for inventory depreciation losses	20,276	( 88 )	-	20,188
	$ 27,270	( $ 1,209 )	$ -	$ 26,061
Deferred tax liabilities
Temporary difference
Defined benefit plans	$ 3,799	$ 49	$ 419	$ 4,267
Unrealized exchange benefits	2,952	9,207	-	12,159
	$ 6,751	$ 9,256	$ 419	$ 16,426

e. The amount of unused loss deductions that are not recognized as deferred income tax assets in the consolidated balance sheet

	December 31
	2025	2024
Loss deduction
Expiry in 2029	$ 6,815	$ 38,402
Expiry in 2030	4,524	4,595
Expiry in 2031	-	1,854
Expiry in 2032	674	2,968
Expiry in 2033	6,134	6,134
	$ 18,147	$ 53,953

f. Income tax assessments

The profit-making enterprise income tax return of the merged company shall be approved by the tax collection authority for the following years:

	Approval year
AV TECH CORPORATION	2023
CHIEFTRON
INTERNATIONAL	2023
AVTECH Security	2024
AV TECH Investment	2023
Q.S.C. Industry	2023

EARNINGS PER SHARE

	For the Year Ended December 31
	2025	2024
Basic earnings per share	$ 1.11	$ 1.25
Diluted earnings per share	$ 1.11	$ 1.25

The net profit and weighted average number of common shares used to calculate earnings per share are as follows:

Net income for the year

	For the Year Ended December 31
	2025	2024
Net profit attributable to the owners of the company	$ 88,994	$ 100,178
Net profit used to calculate basic and diluted earnings per share	$ 88,994	$ 100,178

Number of Shares

Unit: Thousand shares

	For the Year Ended December 31
	2025	2024
Weighted average of ordinary shares used for calculating basic earnings per share	80,000	80,000
Effect of potentially dilutive ordinary shares Compensation of employees	225	319
Weighted average number of ordinary shares for diluted earnings per share calculation	80,225	80,319

If the merged companies have the option to pay employee compensation in stocks or cash, then when calculating diluted earnings per share, it is assumed that the employee compensation will be in the form of stock issuance, and the weighted average number of outstanding shares will be included when the potential ordinary shares have a dilutive effect, so as to Calculate diluted earnings per share. In the following year when calculating diluted earnings per share before deciding on the number of shares to be issued for employee compensation, the dilutive effect of these potential common shares will also continue to be considered.

27. DISPOSAL OF SUBSIDIARIES

The Group disposed of all its equity interest in YesGo in June 2025 for a consideration of NT$159 thousand, resulting in a decrease in its aggregate shareholding from 79.68% to 0% and loss of control over the subsidiary.

The Group disposed of 11% of its equity interest in Info-Tech Corp. in September 2025, resulting in a decrease in its aggregate shareholding from 51.67% to 40.67% and loss of control over the subsidiary.

28. EQUITY TRANSACTIONS WITH NON-CONTROLLING INTERESTS

YesGo completed a cash capital increase on March 22, 2024. AV TECH Investment did not subscribe in proportion to its shareholding; instead, Q.S.C. Industry subscribed to the capital increase. As a result, the Group's aggregate shareholding increased from 56.70% to 79.68%. Subsequently, the Group disposed of all its equity interest in YesGo in June 2025, resulting in a decrease in its aggregate shareholding from 79.68% to 0%.

The Group disposed of its equity interest in Info-Tech Corp. in September 2025, resulting in a decrease in its aggregate shareholding from 51.67% to 40.67%. Please refer to Note 13.

The Group disposed of its equity interest in AVTECH Security in October 2025, resulting in a decrease in its aggregate shareholding from 90.04% to 84.09%. Please refer to Note 13.

29. CAPITAL MANAGEMENT

The capital structure management strategy of the merged company is based on the industrial scale, future growth and product development blueprint of the merged company's business, defining the corresponding capital expenditures for the required factory equipment; and then calculating the required working capital and Cash is used to make an overall asset scale plan for the various scales required for the long-term development of the merged company; finally, the appropriate capital structure of the merged company is determined based on the relationship between the operating cycle and cash flow of the merged company's products.

30. FINANCIAL INSTRUMENTS

a. Fair value information - financial instruments not measured at fair value

Except for those disclosed in the table below, management of the Group believes that the carrying amounts of financial assets and financial liabilities not measured at fair value approximate their fair values.

December 31, 2025

	Carrying amount	Fair value hierarchy
		Level 1	Level 2	Level 3	Total
Financial assets
Financial Assets Measured at Amortized Cost
-Foreign corporate bonds	$61,700	$ -	$59,079	$ -	$59,079

December 31, 2024

	Carrying amount	Fair value hierarchy
		Level 1	Level 2	Level 3	Total
Financial assets
Financial Assets Measured at Amortized Cost
-Foreign corporate bonds	$64,305	$ -	$61,389	$ -	$61,389

The fair value of foreign corporate bonds is measured based on quoted market prices provided by third-party institutions.

b. Fair value of financial instruments measured at fair value on a recurring basis

1) Fair value hierarchy

December 31, 2025

	Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss
Equity Instrument Investment
— Domestic publicly traded shares	$ 1,652	$ -	$ -	$ 1,652
Financial assets at fair value through other comprehensive income
Domestic unlisted shares	$ -	$ -	$ 52,852	$ 52,852
Domestic publicly traded shares	8,725	-	-	8,725
Fund beneficiary certificates	17,207	-	-	17,207
	$ 25,932	$ -	$ 52,852	$ 78,784

December 31, 2024

	Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss
Equity Instrument Investment
— Domestic publicly traded shares	$ 1,662	$ -	$	$ 1,662
Financial assets at fair value through other comprehensive income
Domestic unlisted shares	$ -	$ -	$ 49,761	$ 49,761
Fund beneficiary certificates	6,100	-	-	6,100
	$ 6,100	$ -	$ 49,761	$ 55,861

There were no transfers between Levels 1 and 2 fair value measurement for the years ended December 31, 2025 and 2024.

2) Reconciliation of Level 3 fair value measurements of financial instruments

For the Year Ended December 31, 2025

Financial assets	Measured at fair value through other comprehensive profit or loss
	Equity instruments
Beginning balance	$ 49,761
Recognized in other comprehensive income
-Not implemented	3,091
Ending balance	$ 52,852

For the Year Ended December 31, 2024

Financial assets	Measured at fair value through other comprehensive profit or loss
	Equity instruments
Beginning balance	$ 50,000
Recognized in other comprehensive income
-Not implemented	( 239)
Ending balance	$ 49,761

3) Valuation techniques and inputs applied to Level 3 fair value measurement Financial Instruments

Domestic and foreign unlisted equity investment uses the asset method to measure its fair value. The asset method estimates fair value based on the net asset value provided by the invested company.

c. Categories of financial instruments

	December 31
	2025	2024
Financial assets
FVTPL
Mandatorily classified as at FVTPL	$ 1,652	$ 1,662
Financial assets at amortized cost (1)	1,558,528	1,582,977
Financial assets at FVTOCI
Equity instruments	78,784	55,861
Financial liabilities
Financial liabilities at amortized cost (2)	156,526	151,117

1) The balance includes cash and cash equivalents, debt instrument investments, notes receivable, accounts receivable, other receivables, and refundable deposits, which are financial assets measured at amortized cost.

2) The balance includes accounts payable, other payables (excluding dividends payable to employees, remuneration payable to directors and supervisors) and deposits, which are financial liabilities measured at amortized cost.

d. Objectives and policy of financial risk management

The Group’s principal financial instruments include investments in equity and debt instruments, accounts receivable, and accounts payable. The Group’s finance management department provides services to each business unit, coordinates access to domestic and international financial markets, and monitors and manages financial risks relating to the Group’s operations. Such risks include market risk (including foreign exchange risk and interest rate risk), credit risk, and liquidity risk.

1) Market risk

The Group’s operating activities expose it primarily to financial risks arising from changes in foreign exchange rates (see “a. foreign currency risk” below) and interest rates (see “b. interest rate risk” below).

There have been no changes in the Group’s exposure to market risk arising from financial instruments, nor in its management and measurement of such exposure.

a. Foreign currency risk

The Group engages in sales and purchase transactions denominated in foreign currencies, which expose the Group to fluctuations in exchange rates.

At the balance sheet date, the carrying amounts of monetary assets and monetary liabilities denominated in currencies other than the functional currency (including monetary items denominated in non-functional currencies eliminated in the consolidated financial statements) are disclosed in Note 33.

Sensitivity analysis

The Group is primarily affected by fluctuations in the exchange rate of the U.S. dollar.

The table below details the Group’s sensitivity analysis when the exchange rate of the New Taiwan dollar (functional currency) against the U.S. dollar increases or decreases by 1%. The 1% sensitivity rate is used internally when reporting foreign exchange risk to key management personnel and represents management’s assessment of reasonably possible changes in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency monetary items and adjusts their year-end translation for a 1% change in exchange rates. A positive number in the table below indicates the amount by which profit before income tax would increase when the New Taiwan dollar depreciates by 1% against the U.S. dollar; conversely, when the New Taiwan dollar appreciates by 1% against the U.S. dollar, the effect on profit before income tax would be an equal but negative amount.

USD Impact (Note)

	For the Year Ended December 31
	2025	2024
Profit or loss	$ 2,775	$ 5,058

Note: This mainly arises from the Group's outstanding U.S. dollar denominated cash and cash equivalents, financial assets measured at amortized cost, receivables, payables, and other payables at the balance sheet date that are not subject to cash flow hedging.

b. Interest rate risk

The entities within the Group hold both fixed and variable interest rate bank deposits, thereby exposing the Group to interest rate risk. The Group monitors changes in market interest rates on an ongoing basis and adjusts its interest rate policies to manage interest rate risk.

The carrying amounts of financial assets exposed to interest rate risk at the balance sheet date are as follows:

	December 31
	2025	2024
With interest rate risk of fair value
—Financial assets	$ 860,537	$ 870,473
Interest rate risk with cash flows
—Financial assets	297,393	458,431

Sensitivity analysis

The sensitivity analysis below has been determined based on the interest rate exposure of non-derivative instruments at the balance sheet date. For floating-rate assets, the analysis assumes that the outstanding balances at the balance sheet date were outstanding throughout the reporting period. The 100 basis point increase or decrease in interest rates used when reporting interest rate risk to key management personnel represents management's assessment of reasonably possible changes in interest rates.

If interest rates had increased/decreased by 100 basis points, with all other variables held constant, profit before income tax for the years 2025 and 2024 would have increased/decreased by NT$2,974 thousand and NT$4,584 thousand, respectively.

2) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations and cause a financial loss to the Group. As of the balance sheet date, the Group’s maximum exposure to credit risk of financial loss arising from counterparties’ failure to perform their obligations and from financial guarantees provided by the Group mainly arises from the carrying amounts of financial assets recognized in the consolidated balance sheet.

To maintain the quality of accounts receivable, the Group has established operating procedures for credit risk management. The assessment of individual customers’ credit risk takes into account various factors that may affect their ability to pay, including their financial position, the Group’s internal credit rating, historical trading records, and current economic conditions. The Group continuously monitors credit exposures and counterparties’ credit ratings, diversifies total transaction amounts among customers with approved credit ratings, and controls credit exposure through credit limits for counterparties, which are reviewed and approved annually by relevant departments.

To mitigate credit risk, the Group’s management assigns dedicated departments to be responsible for determining credit limits, approving credit, and implementing other monitoring procedures to ensure that appropriate actions are taken for the collection of overdue receivables. The Group also uses certain credit enhancement tools, such as advance receipts, to reduce credit risk. In addition, at each balance sheet date, the Group reviews the recoverable amounts of receivables on an individual basis to ensure that appropriate impairment losses are recognized for uncollectible receivables. Accordingly, management considers that the Group’s credit risk has been significantly reduced.

Accounts receivable are from a wide range of customers across different industries and geographical regions. The Group continuously evaluates the financial position of its accounts receivable customers and, when necessary, purchases accounts receivable insurance contracts.

Except for its three largest customers, the Group does not have significant credit exposure to any single counterparty or any group of counterparties with similar characteristics. As of December 31, 2025 and 2024, the total accounts receivable from the Group’s three largest customers amounted to NT$148,282 thousand and NT$53,202 thousand, respectively. The concentration of credit risk exposure to individual counterparties did not exceed 6% of total monetary assets as of December 31, 2025 and 2024.

3) Liquidity risk

The Group manages and maintains sufficient cash and cash equivalents to support its operations and mitigate the effects of fluctuations in cash flows.

The following liquidity and interest rate risk tables provide details of the remaining contractual maturity analysis of the Group’s non-derivative financial liabilities with agreed repayment terms. The analysis is prepared based on the earliest possible date on which the Group may be required to repay, and is presented based on the undiscounted cash flows of financial liabilities, including both interest and principal cash flows.

December 31, 2025

	On Demand or Less Than 1 Month	1-3 Months	3 Months to 1 Year	1-2 Years
Non-derivative financial liabilities
Non-interest bearing	$ 105,606	$ 74,404	$ 10,168	$ -

December 31, 2024

	On Demand or Less Than 1 Month	1-3 Months	3 Months to 1 Year	1-2 Years
Non-derivative financial liabilities
Non-interest bearing	$ 120,205	$ 57,603	$ 11,085	$ -

TRANSACTIONS WITH RELATED PARTIES

Balances and transactions between the Corporation and its subsidiaries, which are related parties of the Corporation, have been eliminated on consolidation and are not disclosed in this note. Details of significant transactions between the Group and other related parties are disclosed below.

a. Related party name and categories

Related Party Name	Relationship with the group
Junyi Investment Co., Ltd. (Junyi)	Investors with significant influence
CPCAM FRANCE SARL (CPCAM)	Subsidiary of a significant investor
ITsESG Data Corporation (ITsESG Data)	Associate
Anhong Electronic Technology (Shenzhen) Co., Ltd. (Anhong Electronic)	Associate
Info-Tech Corp	Associate (formerly a subsidiary before September 30, 2025)

(Continued)

Related Party Name	Relationship with the group
AVCLOUD TECHNOLOGY	Associate
CORPORATION (AVCLOUD TECHNOLOGY)
Shenghua Technology Co., Ltd. (Shenghua)	Substantial related party
GIGA ELECTRONICS CORP. (GIGA)	Substantial related party
Atlancube LTD	Substantial related party
Rulin Investment Co., Ltd.	Substantial related party
Fuwei Global Co., Ltd. (Fuwei)	Substantial related party
AVT TECHNOLOGY (HK) LIMITED	Substantial related party
Huaying Charity Foundation	Substantial related party
Rong Jin Technology Co., Ltd (Rong Jin)	Substantial related party
Zhifang Vision Technology Co., Ltd.	Substantial related party
Ju Rong Investment Co., Ltd	Substantial related party

b. Operating Revenue

Item	Related Party Category/Name	For the Year Ended December 31
		2025	2024
Sales revenue	Substantial related party
	AVT TECHNOLOGY (HK) LIMITED	$ 9,412	$ -
	Shenghua	9,281	7,839
	Other	2,262	2,099
	Associate
	AVCLOUD TECHNOLOGY	5,781	4,793
	ITsESG Data	2,771	2,313
	Anhong Electronic	383	1,053
		$ 29,890	$ 18,097

Sales to related parties will be handled in accordance with normal transaction conditions.

c. Purchase

Related Party Category/Name	For the Year Ended December 31
	2025	2024
Associate
Anhong Electronic	$ 17,683	$ 12,511
Other	-	70
Substantial related party
Shenghua	848	514
	$ 18,531	$ 13,095

Purchases from related parties will be handled according to normal transaction conditions.

d. Processing costs

	For the Year Ended December 31
Related Party Category/Name	2025	2024
Substantial related party
Shenghua	$ 24,034	$ -

e. Receivables from related parties (excluding loans to related parties)

Item	Related Party Category/Name	December 31
		2025	2024
Accounts receivable	Substantial related party
	Shenghua	$ 4,094	$ 2,348
	Anhong Electronic	707	-
	Fuwei	-	11,110
	Subsidiaries of investors with significant influence	-	726
	Associate
	AVCLOUD	137	586
	TECHNOLOGY
	Other	23	186
Loss allowance	Subsidiary of a significant investor	-	( 723 )
		$ 4,961	$ 14,233

The outstanding amounts due from related parties are unsecured. No loss allowance was recognized for amounts due from related parties for the years ended 2025 and 2024.

f. Other receivables from related parties

Item	Related Party Category/Name	December 31
		2025	2024
Other accounts receivable	Substantial related party
	Shenghua	$ 542	$ 471
	Other	28	-
		$ 570	$ 471

g. Amounts payable to related parties

Item	Related Party Category/Name	December 31
		2025	2024
Accounts payable	Substantial related party
	Shenghua	$ 3,833	$ 9,035
	Associate
	Anhong Electronic	1,843	1,054
		$ 5,676	$ 10,089

Outstanding payables to related parties are unsecured.

h. Other amounts payable to related parties

Item	Related Party Category/Name	December 31
		2025	2024
Other payables	Substantial related party	$ 12	$ 1,050
	Associate	203	-
		$ 215	$ 1,050

i. Operating rental income

Item	Related Party Category/Name	For the Year Ended December 31
		2025	2024
Other income	Substantial related party
	Shenghua	$ 4,265	$ 3,937
	Other	-	60
	Associate	1,101	1,013
	Investors with significant influence	36	36
		$ 5,402	$ 5,046

The Group leases property to related parties for office use, with rental fees charged monthly or annually based on prices agreed by both parties.

j. Other income

Item	Related Party Category/Name	For the Year Ended December 31
		2025	2024
Other income	Associate	$ 32	$ 101
	Substantial related party
	Shenghua	-	4,707
	Fuwei	-	2,063
		$ 32	$ 6,871

k. Other expenses

Item	Related Party Category/Name	For the Year Ended December 31
		2025	2024
Other expenses	Substantial related party	$ -	$ 3,001

Rewards for key management

The aggregate remuneration of directors and other key management personnel is as follows:

	For the Year Ended December 31
	2025	2024
Short term employee benefits	$ 12,340	$ 16,100

The remuneration of directors and key executives was determined by the remuneration committee based on the performance of individuals and market trends.

32. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets have provided guarantees for customs duties on purchased goods and imported goods:

	December 31
	2025	2024
Pledged time deposits (classified as financial assets at amortized cost- current and non-current)	$ 20,000	$ 17,600

33. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The Group's significant financial assets and liabilities denominated in foreign currencies aggregated by the foreign currencies other than functional currencies of the entities in the Group and the related exchange rates between the foreign currencies and the respective functional currencies are as follows:

December 31, 2025

	Foreign Currency	Exchange Rate	Carrying amount
Foreign currency assets
Monetary items
USD	$ 12,904	31.430	$ 405,573
Foreign currency liabilities
Monetary items
USD	4,076	31.430	128,109

December 31, 2024

	Foreign Currency	Exchange Rate	Carrying amount
Foreign currency assets
Monetary items
USD	$ 18,958	32.785	$ 621,538
Foreign currency liabilities
Monetary items
USD	3,531	32.785	115,764

The significant unrealized foreign exchange gain (loss) is as follows:

	For the Year Ended December 31
	2025		2024
Foreign Currency USD	Exchange Rate 31.430 (USD:NTD)	Net (loss) gain on exchange ($ 27,174)	Exchange Rate 32.785 (USD:NTD)	Net (loss) gain on exchange $ 26,959

34. SEPARATELY DISCLOSED ITEMS

a. Information on significant transactions:

1) Financing provided to others: None.
2) Endorsements/guarantees provided: None.
3) Material marketable securities held at the end of the period (excluding investments in subsidiaries, associates and joint ventures): Table 5.
4) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: None.
5) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: None.
6) Other: intercompany relationships and significant intercompany transactions: Table 2.

b. Information on investee companies: Table 1

c. Information on investments in mainland China

1) Information on investee companies in mainland China, including principal business activities, paid-in capital, investment method, capital inflows and outflows, ownership interest, investment gains or losses, carrying amount of investments at period-end, repatriated investment gains or losses, and limit on the amount of investment in the mainland China area: Table 3.

2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses:

a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period: Table 4.

b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period: None.

c) The amount of property transactions and the amount of the resultant gains or losses: None.

d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the year and the purposes: None.

e) The highest balance, the end of year balance, the interest rate range, and total current period interest with respect to financing of funds: None.

f) Other transactions that have a material effect on the profit or loss for the period or on the financial position, such as the rendering or receipt of services: None.

35. SEGMENT INFORMATION

The information provided to the chief operating decision maker for resource allocation and performance assessment of segments focuses on the nature of products or services provided. The Group’s reportable segments are as follows:

Security Monitoring System Department - Manufacturing and Sales of Security Monitoring Systems
Electronic Materials Department - Wholesale Electronic Materials
Investment Department - Investment in New Ventures

a. Segment revenue and results

The Group’s revenue and operating results by reportable segment are analyzed as follows:

	Security monitoring system	Electronic Materials	Investment department	Total
2025
Revenue from external customers	$ 243,008	$ 1,041,125	$ -	$ 1,284,133
Inter-segment revenue	32,237	-	-	32,237
Departmental revenue	$ 275,245	$ 1,041,125	$ -	1,316,370
Internal write-off				( 32,237 )
Consolidated revenue				$ 1,284,133
Segment income (loss)	( $ 14,891 )	$ 75,698	( $ 88 )	$ 60,719
Interest and other income				66,833
Share of profits of associates accounted for using the equity method				3,782
Other gains and losses				( 21,238 )
Net profit before tax				$ 110,096
2024
Revenue from external customers	$ 212,687	$ 726,153	$ -	$ 938,840
Inter-segment revenue	42,840	-	-	42,840
Departmental revenue	$ 255,527	$ 726,153	$ -	981,680
Internal write-off				( 42,840 )
Consolidated revenue				$ 938,840
Segment income (loss)	( $ 40,424 )	$ 49,693	( $ 124 )	$ 9,145
Interest and other income				77,942
Share of profits of associates accounted for using the equity method				9,843
Other gains and losses				39,034
Net profit before tax				$ 135,964

Inter-department sales are determined by taking into account market conditions.

Departmental profits refer to the profits earned by each department, excluding other profits and losses, other income and income tax expenses. This measure is provided to the chief operating decision-maker for the purpose of allocating resources to departments and measuring their performance.

As the amounts of segment assets and liabilities are not provided to operating decision makers, they are not presented.

b. Information about major customers

Of the revenue from direct sales of electronic materials of NT$1,041,126 thousand and NT$726,153 thousand for the years ended 2025 and 2024, respectively, NT$205,123 thousand and NT$124,279 thousand were derived from the Group’s largest customer. For the years ended 2025 and 2024, there were no other customers contributing more than 10% of the Group’s total revenue.

TABLE 1

AV TECH CORPORATION, LTD. AND SUBSIDIARIES

INFORMATION ON INVESTEES

FOR THE YEAR ENDED DECEMBER 31, 2025

(IN THOUSANDS OF NEW TAIWAN DOLLARS)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount		As of December 31, 2025			Net Income (Loss) of the Investee	Share of Profit (Loss)	Note
				December 31, 2025	December 31, 2024	Number of Shares	%	Carrying Amount
AV TECH CORPORATION, Ltd.	CHIEFTRON INTERNATIONAL	Taiwan	Semiconductor Components Agent	$ 186,026	$ 186,026	14,915,000	82.31	$ 357,204	$ 60,586	$ 49,869	Notes 1
	AV TECH Investment Corp	Taiwan	General investment industry	80,000	80,000	8,000,000	100.00	70,062	7,345	7,345	Note 1
	AVTECH Security Corporation	Taiwan	Production and sales of surveillance and anti-theft systems	42,202	45,355	4,235,520	84.09	54,608	12,017	10,523	Notes 1 and 5
	Q.S.C. Industry	Taiwan	Electrical and audio-visual electronic product manufacturing	15,050	15,050	1,505,000	88.53	19,053	3,813	3,377	Notes 1
		Taiwan
AV TECH Investment Corp.	GIGA	Taiwan	Development and sales of consumer electronics products	8,000	8,000	800,000	25.00	6,835	2,381	891	Note 2
	ITsESG Data	Taiwan	Software development and sales	5,742	5,742	125,000	24.30	8,955	16,324	3,965	Notes 2
	YesGo	Taiwan	Automation product research and development	-	12,700	-	-	-	( 990 )	( 187 )	Notes 3
	AVCLOUD TECHNOLOGY	Taiwan	Sales and installation of surveillance and security products	1,760	1,760	176,000	22.00	3,603	8,031	1,767	Note 2
	Info-Tech Corp	Taiwan	Software development and sales	1,987	2,000	62,000	40.67	725	517	260	Notes 2 and 4
		Taiwan
Q.S.C. Industry	YesGo	Taiwan	Automation product research and development	-	2,850	-	-	-	( 990 )	( 470 )	Notes 3

Note 1: It is a subsidiary and has been eliminated when preparing consolidated financial statements.
Note 2: Associate.
Note 3: In May 2025, YesGo returned capital through a capital reduction. Subsequently, in June 2025, AV TECH Investment Corporation and Q.S.C. Industrial Co., Ltd. disposed of their remaining equity interests, resulting in the Group's aggregate ownership interest decreasing from $79.68\%$ to $0\%$ .
Note 4: In September 2025, AV TECH Investment disposed of a portion of its equity interests, resulting in the Group's aggregate ownership interest decreasing from $51.67\%$ to $40.67\%$ . Due to the loss of control, the investee was reclassified from a subsidiary to an associate and accounted for using the equity method from September 2025.
Note 5: In October 2025, the Company disposed of a portion of its equity interests, resulting in its aggregate ownership interest decreasing from $90.04\%$ to $84.09\%$ .
Note 6: Information on investment in mainland China: Please refer to Table 3.

TABLE 2

AV TECH CORPORATION, LTD. AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS

FOR THE YEAR ENDED DECEMBER 31, 2025

(IN THOUSANDS OF NEW TAIWAN DOLLARS)

No. (Note 1)	Investee Company	Counterparty	Relationship (Note 2)	Transaction Details
				Financial Statement Account	Amount (Note 4)	Transaction terms	% to Total Sales or Assets (Note 3)
0	AV TECH CORPORATION	AVTECH Security	1	Rent revenue	$ 3,054	Same as normal transaction	0.24%
0	AV TECH CORPORATION	Q.S.C. Industry	1	Rent revenue	5,349	〃	0.42%
1	Q.S.C. Industry	AVTECH Security	3	Sales revenue	28,819	〃	2.24%

Note 1: The Company and its subsidiaries are coded as follows:
(1) Parent company is coded "0".
(2) The subsidiaries are coded consecutively beginning from "1" in the order presented in the table above.

Note: 2: Nature of relationship is as follows:
(1) Parent company to subsidiary.
(2) Subsidiary to parent company.
(3) Between subsidiaries

Note 3: The calculation of the ratio of the transaction amount to the consolidated total revenue or total assets. If it is an asset and liability account, it is calculated as the ending balance to the consolidated total assets; if it is a profit and loss account, it is calculated as the cumulative amount of the current period to the consolidated total revenue. calculate.

Note 4: Disclose transactions with individual amounts exceeding NT$3,000 thousand.

Note 5 : Eliminated in the preparation of the consolidated financial statements

TABLE 3

AV TECH CORPORATION, LTD. AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA

FOR THE YEAR ENDED DECEMBER 31, 2025

(IN THOUSANDS OF NEW TAIWAN DOLLARS AND FOREIGN CURRENCIES)

Investee Company	Main Businesses and Products	Paid-in Capital	Method of Investment (Note 1)	Accumulated Outward Remittance for Investments from Taiwan as of January 1, 2025	Remittance of Funds		Accumulated Outward Remittance for Investments from Taiwan as of December 31, 2025	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss)	Carrying Amount as of December 31, 2025	Accumulated Repatriation of Investment Income as of December 31, 2025
					Outward	Inward
Anhong Electronic (Shenzhen)	Production and sales closed-circuit monitoring system and related spare parts	$ 139,709 (RMB 31,074)	(1)	$ 21,970 (USD 699)	$ -	$ -	$ 21,970 (USD 699)	($ 7,877)	29.98%	($ 2,361)	$ 54,176	$ -
Accumulated Outward Remittance for Investments in Mainland China as of December 31, 2025	Investment Amounts Authorized by the Investment Commission, MOEA	Upper Limit on the Amount of Investments Stipulated by the Investment Commission, MOEA
---	---	---
$ 21,970	$ 21,970	$ 1,379,219(Note 3)
(USD 699)	(USD 699)

Note 1: Investment methods are divided into the following three types, just indicate the type:
(1) Go directly to the mainland to engage in investment.
(2) Reinvest in mainland China through third-region companies.
(3) Other methods.

Note 2: Calculated in accordance with the "Regulations on Screening and Approval of Investment and Technical Cooperation in Mainland China" issued by the Investment Commission of the Ministry of Economic Affairs, the Corporation has been certified by the Industrial Development Bureau of the Ministry of Economic Affairs as an enterprise that has conformed to the scope of operations of the headquarters; therefore, there is no investment limit. The upper limit on the amount of investments in Anhong Electronic (Shenzhen) is 60% of the net assets of AV TECH Corporation, Ltd.

Note 3: The relevant amount is based on December 31, 2025 exchange rate RMB$1 = NT$4.496 and USD$1 = NT$31.43 for New Taiwan Dollars.

TABLE 4

AV TECH CORPORATION, LTD. AND SUBSIDIARIES

THE FOLLOWING MAJOR TRANSACTIONS WITH THE MAINLAND INVESTEE COMPANIES DIRECTLY OR INDIRECTLY THROUGH THIRD REGIONS AND THEIR PRICES, PAYMENT TERMS, UNREALIZED GAINS AND LOSSES, AND OTHER RELEVANT

FOR THE YEAR ENDED DECEMBER 31, 2025

(IN THOUSANDS OF NEW TAIWAN DOLLARS , UNLESS OTHERWISE STATED)

Investee Company	Transaction type	Purchase and sales		Price	Trading conditions		Notes receivable (payable), accounts receivable		Unrealized Gains and Losses	Note
		Amount	Percentage		Payment terms	Comparison with general transactions	Amount	Percentage
Anhong Electronic (Shenzhen)	Purchase	$ 17,683	1.38%	-	Same as normal transaction	-	($ 1,843)	2.86%	$ -

TABLE 5

AV TECH CORPORATION, LTD. AND SUBSIDIARIES

MARKETABLE SECURITIES HELD

DECEMBER 31, 2025

(IN THOUSANDS OF NEW TAIWAN DOLLARS)

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account	End of the Period				Highest in the term Number of shares held (in thousands)
				Number of Shares (in thousands)	Carrying amount	Percentage of Ownership	Fair Value
AV TECH CORPORATION, LTD	Domestic publicly traded shares
	Crystalvue Medical Corporation	-	Financial assets at FVPL	11	$ 837	-	$ 837	11
	TTY BIOPHARM COMPANY LIMITED	-	〃	10	815	-	815	10
	Yuanta Taiwan Top 50 ETF	-	Financial assets at FVTOCI	4	262	-	262	4
	Hsing Ta Cement Co., Ltd.	-	〃	43	667	-	667	43
	Yi Jinn Industrial Co., Ltd.	-	〃	50	790	-	790	50
	MAYWUFA COMPANY LTD.	-	〃	20	435	-	435	20
	Kerry TJ Logistics Company Limited	-	〃	5	166	-	166	5
	CHERNG TAY TECHNOLOGY CO., Ltd.	-	〃	18	18	-	18	491
	BAI SHA TECHNOLOGY CO., Ltd.	-	〃	47	1,358	-	1,358	47
	Pou Chen Corporation	-	〃	50	1,508	-	1,508	50
	Nantex Industry Co., Ltd.	-	〃	100	2,347	-	2,347	100
	Formosa Chemicals & Fibre Corporation	-	〃	30	963	-	963	30
	Fund beneficiary certificates
	Yuanta US Bond 20 Years	-	〃	300	8,172	-	8,172	300
	Cathay Pacific US Bond 20 Year	-	〃	310	8,773	-	8,773	310
	Domestic Non-publicly traded shares
	WK Technology Fund IX II Ltd.		〃	5,000	52,852	4.45%	52,852	5,000
	Corporate bond
	APPLE Inc. Overseas corporate bond due in 2045		Financial assets measured at amortized cost	500	15,321	-	14,096	500
	APPLE Inc. Overseas corporate bond due in 2046		〃	400	12,439	-	11,617	400
	APPLE Inc. Overseas corporate bond due in 2047		〃	300	9,080	-	8,129	300
	TSMC Arizona Overseas corporate bond due in 2029		〃	200	6,241	-	6,307	200
	TSMC Arizona Overseas corporate bond due in 2032		〃	600	18,619	-	18,930	600

Note: For information on investments in subsidiaries, associates and joint ventures, please refer to Tables 1 and 3.

AI assistant

AV TECH — Audit Report / Information 2025

52714_rns_2026-05-26_6d31507c-2a9a-4019-a7fa-82775a8198fd.pdf

DECLARATION ON CONSOLIDATED FINANCIAL STATEMENTS OF AFFILIATES

INDEPENDENT AUDITORS' REPORT

Opinion

Basis for Opinion

Key Audit Matters

Authenticity of specific sales revenue

Other Matter

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Auditors' Responsibilities for the Audit of the Consolidated Financial Statement

Notice to Readers

AV TECH CORPORATION, LTD. AND SUBSIDIARIES

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

3. APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2) Equity instruments

3) Financial liabilities

a) Subsequent measurement

b) Derecognition of financial liabilities

m. Provisions

n. Revenue recognition

Revenue from the sale of goods

6. CASH AND CASH EQUIVALENTS

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME INVESTMENTS IN EQUITY INSTRUMENTS

9. FINANCIAL ASSETS AT AMORTIZED COST

10. DEBT CREDIT RISK MANAGEMENT OF FINANCIAL INSTRUMENT INVESTMENT

11. NOTES RECEIVABLE AND ACCOUNTS RECEIVABLE

Accounts receivable

12. INVENTORIES

13. SUBSIDIARIES

14. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

15. PROPERTY, PLANT AND EQUIPMENT

18. ACCOUNTS PAYABLE

19. OTHER PAYABLES

20. PROVISION

21. BENEFITS AFTER RETIREMENT PLAN

22. EQUITY

23. OPERATING REVENUE

24. NET PROFIT FOR THE YEAR

25. INCOME TAX

27. DISPOSAL OF SUBSIDIARIES

28. EQUITY TRANSACTIONS WITH NON-CONTROLLING INTERESTS

29. CAPITAL MANAGEMENT

30. FINANCIAL INSTRUMENTS

b. Interest rate risk

Sensitivity analysis

32. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

33. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

34. SEPARATELY DISCLOSED ITEMS

35. SEGMENT INFORMATION

a. Segment revenue and results

AV TECH CORPORATION, LTD. AND SUBSIDIARIES

AV TECH CORPORATION, LTD. AND SUBSIDIARIES

AV TECH CORPORATION, LTD. AND SUBSIDIARIES

AV TECH CORPORATION, LTD. AND SUBSIDIARIES

AV TECH CORPORATION, LTD. AND SUBSIDIARIES

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