Stock Code: 8072

AV TECH CORPORATION, LTD.

Parent Company Only 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

INDEPENDENT AUDITORS' REPORT

The Board of Directors and Shareholders

AV TECH CORPORATION, Ltd.

Opinions

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

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

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing 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 Financial Statements section of our report. We are independent of the Company in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

The Key Audit Matters refer to those matters that, in our professional judgment, were of most significance in our audit of the financial statements of AV TECH Corporation, Ltd. for the year ended 2025. These matters were addressed in the context of our audit of the financial statements as a whole and in forming our audit opinion, and we do not provide a separate opinion on these matters.

The key audit matter identified in the Company's financial statements for the year ended 2025 is described as follows:

Authenticity of specific sales revenue from investment subsidiaries using the equity method

The Company holds subsidiaries invested using the equity method for the year ended December 31, 2025 operating income, the sales income from specific customers of electronic materials is significant to the overall operating income. Therefore, the authenticity of the sales income from these specific customers is listed as a key verification matter.

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

The main verification procedures performed by our accountants 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.

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

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

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

Those charged with governance, including the audit committee, are responsible for overseeing the Company's financial reporting process.

Auditors' Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the 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 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 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's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the 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 Company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

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

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

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

For the convenience of readers, the independent auditors' report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. 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 financial statements shall prevail.

AV TECH CORPORATION, LTD.

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)	$ 193,463	8	$ 495,028	21
Financial assets at fair value through profit or loss (Notes 7 and 25)	1,652	-	1,662	-
Financial assets at amortized cost (Notes 9 and 36)	711,683	31	436,433	19
Notes receivable (Notes 11 and 19)	-	-	304	-
Trade receivables (Notes 11,19 and 26)	5	-	-	-
Other receivables (Note 26)	1,923	-	1,558	-
Current tax assets (Note 21)	2,587	-	2,478	-
Other current assets	10	-	10	-
Total current assets	911,323	39	937,473	40
NON-CURRENT ASSETS
Financial assets at fair value through other comprehensive income - non-current (Notes 8 and 25)	78,784	3	55,861	2
Financial assets at amortized cost - non-current (Notes 9,10 and 25)	61,700	3	64,305	3
Investments accounted for using the equity method (Note 13)	500,927	21	484,577	21
Property, plant and equipment (Note 14)	667,255	29	673,332	29
Investment properties (Note 15)	63,997	3	64,638	3
Deferred tax assets (Note 21)	17,618	1	19,232	1
Net defined benefit assets (Note 17)	23,153	1	21,339	1
Refundable deposits	219	-	219	-
Total non-current assets	1,413,653	61	1,383,503	60
TOTAL	$ 2,324,976	100	$ 2,320,976	100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Other payables (Note 16)	$ 14,661	1	$ 15,803	1
Other payables to related parties (Note 26)	-	-	1,050	-
Other current liabilities	432	-	867	-
Total current liabilities	15,093	1	17,720	1
NON-CURRENT LIABILITIES
Deferred tax liabilities (Note 21)	7,599	-	14,795	1
Deposits received	3,586	-	3,326	-
Total non-current liabilities	11,185	-	18,121	1
Total liabilities	26,278	1	35,841	2
EQUITY (Note 18)
Ordinary shares	800,000	34	800,000	34
Capital surplus	17,561	1	17,561	1
Retained earnings
Legal reserve	1,084,041	47	1,074,230	46
Special reserve	111	-	4,162	-
Undistributed earnings	393,541	17	389,293	17
Total retained earnings	1,477,693	64	1,467,685	63
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	2,298,698	99	2,285,135	98
TOTAL	$ 2,324,976	100	$ 2,320,976	100

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

AV TECH CORPORATION, LTD.

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 19 and 26)	$ 597	100	$ 773	100
Operating costs (Notes 12 and 26)	—	—	—	—
Gross profit	597	100	773	100
OPERATING EXPENSES
(Notes 17,20 and 26)
Management expenses	39,267	6,578	58,444	7,561
Total operating expenses	39,267	6,578	58,444	7,561
OPERATING INCOME	( 38,670 )	( 6,478 )	( 57,671 )	( 7,461 )
NON-OPERATING INCOME
AND EXPENSES
Interest income	31,414	5,262	26,352	3,409
Other income (Notes 20 and 26)	33,614	5,631	50,727	6,562
Other gains and losses
(Note 20)	( 13,132 )	( 2,200 )	20,299	2,626
Subsidiary profits using
the equity method
profit share	71,114	11,912	68,282	8,834
Total non-operating
income and
expenses	123,010	20,605	165,660	21,431
PROFIT BEFORE TAX	84,340	14,127	107,989	13,970
INCOME TAX EXPENSE (Note 21)	( 4,654 )	( 780 )	7,811	1,010
NET PROFIT FOR THE YEAR	88,994	14,907	100,178	12,960

(Continued)

AV TECH CORPORATION, LTD.

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	%
OTHER COMPREHENSIVE INCOME (LOSS)
Items that will not be reclassified subsequently to profit or loss
Remeasurement of defined benefit plans (Note 17)	$ 1,451	243	$ 2,098	271
Unrealized valuation gains and losses on equity instruments measured at fair value through other comprehensive income	3,725	624	( 448 )	( 58 )
Income tax related to items not reclassified (Note 21)	( 290 )	( 49 )	( 419 )	( 54 )
	4,886	818	1,231	159
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of the financial statements of foreign operations (Note 18)	100	17	1,499	194
Other comprehensive (loss) income for the year, net of income tax	4,986	835	2,730	353
TOTAL COMPREHENSIVE (LOSS) INCOME FOR THE YEAR	$ 93,980	15,742	$ 102,908	13,313
EARNINGS PER SHARE (Note 22)
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.
STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024
(In Thousands of New Taiwan Dollars)

	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 Financial Statements of Foreign Operations	Total	Total Equity
BALANCE AT JANUARY 1, 2024	80,000	$ 800,000	$ 17,722	$ 1,068,453	$ 9,015	$ 352,102	$ 1,429,570	($ 883)	($ 3,279)	($ 4,162)	$ 2,243,130
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 )
Net profit for the year ended December 31, 2024	-	-	-	-	-	100,178	100,178	-	-	-	100,178
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
Total comprehensive income (loss) for the year ended December 31, 2024	-	-	-	-	-	101,857	101,857	1,499	( 448 )	1,051	102,908
Equity price and book value of disposal subsidiaries difference	-	-	( 40 )	-	-	( 742 )	( 742 )	-	-	-	( 782 )
Changes in percentage of ownership interests in subsidiaries	-	-	( 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
Appropriation of 2024 earnings
Legal reserve	-	-	-	9,811	-	( 9,811 )	-	-	-	-	-
Special reserve	-	-	-	-	( 4,051 )	4,051	-	-	-	-	-
Cash dividends distributed	-	-	-	-	-	( 80,000 )	( 80,000 )	-	-	-	( 80,000 )
Net profit for the year ended December 31, 2025	-	-	-	-	-	88,994	88,994	-	-	-	88,994
Other comprehensive income (loss) for the year ended December 31, 2024, net of income tax	-	-	-	-	-	1,161	1,161	100	3,725	3,825	4,986
Total comprehensive income (loss) for the year ended December 31, 2024	-	-	-	-	-	90,155	90,155	100	3,725	3,825	93,980
Equity price and book value of disposal subsidiaries difference	-	-	-	-	-	( 417 )	( 417 )	-	-	-	( 417 )
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

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

AV TECH CORPORATION, LTD.

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	$ 84,340	$ 107,989
Adjustments for
Depreciation expense (including investment real estate)	6,718	7,308
Net loss (gain) on fair value changes of financial assets at fair value through profit or loss	10	( 322)
Interest income	( 31,414)	( 26,352)
Dividend income	( 244)	( 58)
Interest shares of subsidiaries using the equity method	( 71,114)	( 68,282)
Net unrealized foreign currency exchange losses (gains)	17,304	( 16,451)
Changes in operating assets and liabilities
Notes receivable	304	-
Trade receivables	( 5)	394
Other receivables	( 365)	( 911)
Net defined benefit assets	( 363)	( 247)
Contract liabilities	( 615)	-
Other payables	( 2,192)	3,993
Other current liabilities	180	( 131)
Cash generated from operations	2,544	6,930
Income tax paid	( 1,327)	( 1,528)
Net cash generated from operating activities	1,217	5,402
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of financial assets at fair value through other comprehensive income	( 19,745)	( 6,309)
Purchase of financial assets at amortized cost	( 861,091)	( 766,679)
Proceeds from disposal of financial assets at amortized cost	570,398	1,041,790
Proceeds from disposal of financial asset at fair value through profit or loss	-	2,378
Disposal of subsidiaries	3,153	12,258
Acquisition of property, plant and equipment	-	( 1,100)
Interest received	31,414	26,352

(Continued)

	2025	2024
Receive cash dividends from subsidiaries	$ 51,841	$ 39,972
Receive other cash dividends	244	58
Net cash (used in) generated from investing activities	( 223,786 )	348,720
CASH FLOWS FROM INVESTING ACTIVITIES
Increase (decrease) in guarantee deposits received	260	( 409 )
Cash dividends paid	( 80,000 )	( 60,000 )
Net cash used in from financing activities	( 79,740 )	( 60,409 )
The impact of exchange rate changes on cash and cash equivalents	744	458
Net (decrease) increase in cash and cash equivalents	( 301,565 )	294,171
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR	495,028	200,857
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	$ 193,463	$ 495,028

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

AV TECH CORPORATION, LTD.

NOTES TO 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.

This individual financial report is expressed in the Company's functional currency, the New Taiwan Dollar.

2. Date and Procedures of Authorization of Financial Statements

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

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

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, the “IFRSs”) endorsed and issued into effect by the Financial Supervisory Commission (FSC)

Applicable to the Financial Regulatory Commission and promulgated into effective IFRSs Accounting standards will not cause significant changes in the company's accounting policies.

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 of issuance of this individual financial report, the Company assesses that any 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 Company 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 Company 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 Companys 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 Company shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Company 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 Company as a whole, the Company 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 Company 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 Company shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. However, if, after assessment, the Company 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 financial statements were authorized for issue, the is continuously assessing the other impacts of the above amended standards and interpretations on the Company'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

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

b. Basis of preparation

The parent company only financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair value, and net defined benefit assets 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.

When preparing individual financial reports, the Company adopts the equity method for investment in subsidiaries. In order to make the profit and loss, other comprehensive profit and loss and equity for the current period in this individual financial report the

same as the current year's profit and loss, other comprehensive profit and loss and equity attributable to the owners of the company in the company's individual financial report, certain accounting treatment differences between the individual basis and the consolidated basis are due to Adjust "investments using the equity method", "share of profits and losses of subsidiaries using the equity method", "share of other comprehensive profits and losses of subsidiaries using the equity method" and related equity items.

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. Foreign currencies

In preparing the parent company only financial statements, transactions in currencies other than the Company'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 financial statements, the financial statements of the Company's foreign operations (including subsidiaries in other countries) 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.

e. 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.

f. Investments in subsidiaries

The Company uses the equity method to account for its investments in subsidiaries.

A subsidiary is an entity that is controlled by the Company.

Under the equity method, an investment in a subsidiary is initially recognized at cost and adjusted thereafter to recognize the Company's share of the profit or loss and other comprehensive income of the subsidiary. The Company also recognizes the changes in the Company's share of equity of subsidiaries.

Changes in the Company's ownership interest in a subsidiary that do not result in the Company losing control of the subsidiary are equity transactions. The Company recognizes directly in equity any difference between the carrying amount of the investment and the fair value of the consideration paid or received.

When the Company's share of losses of a subsidiary exceeds its interest in that subsidiary (which includes any carrying amount of the investment accounted for using the equity method and long-term interests that, in substance, form part of the Company's net investment in the subsidiary), the Company continues recognizing its share of further losses.

Profits or losses resulting from downstream transactions are eliminated in full only in the parent company's financial statements. Profits and losses resulting from upstream transactions and transactions between subsidiaries are recognized only in the parent

company's financial statements only to the extent of interests in the subsidiaries that are not related to the Company.

g. 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.

h. 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.

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

At the end of each reporting period, the Company reviews the carrying amounts of its property, plant and equipment and investment properties to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to the individual cash-generating units on a reasonable and consistent basis of allocation.

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.

j. Financial instruments

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instruments.

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 Company are financial assets measured at fair value through profit and loss and financial assets measured at amortized cost.

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 25.

ii. Financial assets at amortized cost

Financial assets that meet the following conditions are subsequently 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, Accounts receivable, notes 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 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 Company’s 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 Company recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including accounts receivable).

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 Company determines that the following situations indicate that a financial asset is in default (without taking into account any collateral held by the Company):

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 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

The equity instruments issued by the Company are classified as equity based on the substance of the contract agreement and the definition of financial liabilities and equity instruments.

Equity instruments issued by the 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.

k. Revenue recognition

After the 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

Income from product sales comes from the sale of security monitoring systems. Since the aforementioned products are shipped, the customer has the right to set a price and use the goods and has the main responsibility for resale. assumes responsibility and bears the risk of obsolescence of goods. The company recognizes revenue and accounts receivable at that point in time. Advance payments 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.

Leasing

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

1) The 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) The 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.

m. 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.

n. Income Tax

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

1) Current income tax

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 and related enterprises 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 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 company develops significant accounting estimates, it will include possible impacts into the consideration of cash flow estimates, growth rates, discount rates, profitability and other related major estimates. The management will continue to review estimates and basic assumptions.

CASH AND CASH EQUIVALENTS

	December 31
	2025	2024
Cash on hand	$ 21	$ 4
Bank checks and demand deposits	40,036	37,524
Cash equivalents
Time deposits (investments with original maturities of 3 months or less)	153,406	457,500
	$ 193,463	$ 495,028

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%~3.04%	1.29%~1.71%

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-current
Domestic investment
Unlisted shares	$ 52,852	$ 49,761
Listed shares	8,725	-
Fund beneficiary certificates	17,207	6,100
	$ 78,784	$ 55,861

The Company invests based on medium- and long-term strategic objectives and expects to make profits through long-term investment. The Company's management 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, and therefore chooses to designate these investments as measured at fair value through other comprehensive gains 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)	$ 711,683	$ 436,433
Non-current
Foreign investment
TSMC Arizona corporate bonds (b)	$ 24,860	$ 25,898
APPLE corporate bonds (c)	36,840	38,407
	$ 61,700	$ 64,305

a. As of December 31, 2025 and 2024, the interest rates on time deposits with original maturities of more than three months ranged from 1.46% to 4.38% and from 1.46% to 5.20% per annum, respectively.

b. During February to March 2023, the Company 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 Company 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.

10. Debt Credit risk management of financial instrument investment

The credit rating of the overseas corporate bonds invested by the 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 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 debt instrument investments has increased significantly since the original recognition.

The 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 Company has assessed that the expected credit loss rate of the overseas corporate bonds held is 0%.

11. NOTES RECEIVABLE AND ACCOUNTS RECEIVABLE

	For the Year Ended December 31
	2025	2024
Notes receivable
Measured at amortized cost
Total carrying amount	$ -	$ 304

(Continued)

	For the Year Ended December 31
	2025	2024
Accounts receivable
Measured at amortized cost
Total carrying amount	$ 5	$ 7,813
Less: allowance for loss	-	( 7,813 )
	$ 5	$ -
Arising from operating activities	$ 5	$ 8,117
Less: allowance for loss	-	( 7,813 )
	$ 5	$ 304
		(Concluded)

Accounts receivable

For the company's product sales, except for the advance payment transaction, the average credit period is 30 to 90 days, no interest will be accrued on accounts receivable.

Before accepting a new customer, the Company evaluates the potential customer's credit quality 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 as having the best credit rating based on the internal credit rating review table used by the company.

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

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

The Company measures the provision losses on notes receivable and accounts receivable based on 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	$ 5	$ -	$ -	$ -	$ 5
Allowance for losses (expected during lifetime credit loss)	-	-	-	-	-
amortized cost	$ 5	$ -	$ -	$ -	$ 5

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	$ 304	$ -	$ -	$ 7,813	$ 8,117
Allowance for losses (expected during lifetime credit loss)	-	-	-	( 7,813 )	( 7,813 )
amortized cost	$ 304	$ -	$ -	$ -	$ 304

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	$ 7,813	$ 7,813
Less: Reversal of impairment losses for the year	( 7,813 )	-
Balance at December 31	$ -	$ 7,813

12. INVENTORIES

	December 31
	2025	2024
Finished goods	$ -	$ -
Work in process	-	-
Raw materials	-	-
	$ -	$ -

As of the end of 2025 and 2024, inventories amounting to $88,029 thousand and $88,436 thousand, respectively, had been fully provided for with a 100% loss allowance.

13. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

	For the Year Ended December 31
	2025	2024
Investments in subsidiaries
Unlisted (counter) company
CHIEFTRON INTERNATIONAL CORPORATION (CHIEFTRON INTERNATIONAL)	$ 357,204	$ 352,434
AV TECH Investment Co., Ltd. (AV TECH Investment)	70,062	62,548
AVTECH Security Corporation (AVTECH Security Corporation)	54,608	52,190
Q.S.C. Industry Co., Ltd. (Q.S.C. Industry)	19,053	17,405
	$ 500,927	$ 484,577

The Company disposed of part of its equity interests in CHIEFTRON INTERNATIONAL in August 2024, resulting in a decrease in its shareholding percentage from 84.11% to 82.31%. In addition, the Company disposed of part of its equity interests in AVTECH Security Corporation in June 2024, July 2024, and October 2025, resulting in a decrease in its shareholding percentage to 84.09%. Furthermore, the Company disposed of part of its equity interests in Q.S.C. Industry in December 2024, resulting in a decrease in its shareholding percentage to 88.53%. Please refer to Note 23.

The Company's ownership interests and voting rights percentages in subsidiaries on the balance sheet date are as follows:

	December 31
	2025	2024
CHIEFTRON INTERNATIONAL	82.31%	82.31%
AV TECH Investment	100.00%	100.00%
AVTECH Security	84.09%	90.04%
Q.S.C. Industry	88.53%	88.53%

14. PROPERTY, PLANT AND EQUIPMENT

	December 31
	2025	2024
Assets used by the Company	$ 665,653	$ 671,682
Operating lease	1,602	1,650
	$ 667,255	$ 673,332

Assets used by the Company

	Self-owned land	Buildings	Machinery and equipment	Office equipment	Other equipment	Total
Cost
Balance on January 1, 2025	$ 476,559	$ 289,374	$ 20,133	$ 5,711	$ 54,503	$ 846,280
Disposal	-	-	( 20,133 )	( 5,711 )	( 54,503 )	( 80,347 )
Balance on December 31, 2025	$ 476,559	$ 289,374	$ -	$ -	$ -	$ 765,933
Accumulated Depreciation
Balance on January 1, 2025	$ -	$ 94,251	$ 20,133	$ 5,711	$ 54,503	$ 174,598
Disposal	-	-	( 20,133 )	( 5,711 )	( 54,503 )	( 80,347 )
Depreciation Expenses	-	6,029	-	-	-	6,029
Balance on December 31, 2025	$ -	$ 100,280	$ -	$ -	$ -	$ 100,280
Net amount on December 31, 2025	$ 476,559	$ 189,094	$ -	$ -	$ -	$ 655,653
Cost
Balance on January 1, 2024	$ 476,559	$ 288,274	$ 20,133	$ 5,711	$ 54,503	$ 845,180
Additions	-	1,100	-	-	-	1,100
Balance on December 31, 2024	$ 476,559	$ 289,374	$ 20,133	$ 5,711	$ 54,503	$ 846,280
Accumulated Depreciation
Balance on January 1, 2024	$ -	$ 87,630	$ 20,133	$ 5,711	$ 54,503	$ 167,977
Depreciation Expenses	-	6,621	-	-	-	6,621
Balance on December 31, 2024	$ -	$ 94,251	$ 20,133	$ 5,711	$ 54,503	$ 174,598
Net amount on December 31, 2024	$ 476,559	$ 195,123	$ -	$ -	$ -	$ 671,682

b) Business leasing

	Buildings
Cost
Balance as of January 1 and December 31, 2025	$ 2,435
Accumulated Depreciation
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 Depreciation
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 useful years:

	Assets used by the company	Business leasing
Buildings	5 to 50 years	50 to 53 years
Other equipment	1 to 4 years	-

15. INVESTMENT PROPERTIES

	Investment
Cost
Balance as of January 1 and December 31, 2025	$ 80,651
Accumulated Depreciation
Balance at January 1, 2025	$ 16,013
Depreciation expense	641
Balance at December 31, 2025	$ 16,654
Net amount on December 31, 2025	$ 63,997
Cost
Balance as of January 1 and December 31, 2024	$ 80,651
Accumulated Depreciation
Balance at January 1, 2024	$ 15,374
Depreciation expense	639
Balance at December 31, 2024	$ 16,013
Net amount on December 31, 2024	$ 64,638

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 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 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	$ 114,216	$ 123,287

16. OTHER PAYABLES

	December 31
	2025	2024
Salaries and bonuses payable	$ 758	$ 757
Employee compensation and directors’ compensation payable	7,370	9,200
Payable to pensions, labor health insurance, labor fees and
Other expenses, etc	6,533	5,846
	$ 14,661	$ 15,803

17. BENEFITS AFTER RETIREMENT PLAN

a) Confirm allocation plan

The Company 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.

b) Defined benefit plans

The pension system conducted by the Company of the Company under the "Labor Standards Act" of our country is a defined benefit retirement plan administered by the government. The payment of the employee's pension is based on the length of service and the average salary of six months before the approved retirement date. Those companies contribute monthly an amount equal to 2% of the employees' monthly salaries and wages to a retirement fund that is deposited with Bank of Taiwan under the name of The Supervisory Committee of Workers' Retirement Fund. Before the end of year, if the balance at the retirement fund is not sufficient to pay employees who will meet the retirement criteria next year, a lump-sum deposit for the shortfall should be made before the end of March of the following year. The exclusive account is administered by the Bureau of Labor Funds of the Ministry of Labor, and the Company retains no rights that may influence its investment and administration strategies. However, because the company has made sufficient provision, the competent authority has agreed to suspend the provision of labor retirement reserves in 2025 and 2024.

The amount of the welfare plan included in the individual balance sheet is listed as follows:

	December 31
	2025	2024
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 gain – Changes in financial assumptions	( 190)	-	( 190)
Actuarial loss – Experience adjustments	210	-	210
Recognized in other comprehensive income	20	( 2,118)	2,098
Contributions from the employer	-	-	-
Benefits paid	-	-	-
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 gain – Changes in financial assumptions	134	-	134
Actuarial loss – Experience adjustments	142	-	142
Recognized in other comprehensive income	276	( 1,727)	( 1,451)
Contributions from the employer	-	-	-
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 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
iscount 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

18. 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
Used to offset deficit, distribute cash, or replenish 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
May only be used to offset a deficit	$ 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 20 (6) 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 shareholders' meetings on June 18, 2025 and June 19, 2024 approved the following resolutions for the distribution of the 2024 and 2023 earnings:

	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 above cash dividends were distributed by the board of directors on March 7, 2025 and March 13, 2024, respectively, and the remaining profit distribution items were also resolved at the regular shareholders' meetings on June 18, 2025 and June 19, 2024, respectively.

On March 6, 2026, the board of directors of the Company proposed the following proposal regarding the distribution of earnings for 2025:

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

The aforementioned cash dividends have been resolved for distribution by the Board of Directors, with the remaining matters pending approval at the annual general meeting of shareholders scheduled for June 17, 2026.

19. OPERATING REVENUE

	For the Year Ended December 31
	2025	2024
Revenue from customer contracts
Sales revenue	$ 597	$ 773

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 e (Note 11)	$ 5	$ 304	$ 842

20. Net Profit for the Year

The net profit for the year includes the following items:

a. Other income

	For the Year Ended December 31
	2025	2024
Rental income	$ 31,845	$ 36,101
Dividend income	244	58
Other	1,525	14,568
	$ 33,614	$ 50,727

b. Other profits and losses

	For the Year Ended December 31
	2025	2024
Net foreign exchange (loss) gain	($ 12,482)	$ 20,616
Net gain (loss) on financial assets at fair value through profit or loss	( 10)	322
Miscellaneous expenses	( 640)	( 639)
	($ 13,132)	$ 20,299

c. Depreciation

	For the Year Ended December 31
	2025	2024
Property, Plant and Equipment	$ 6,077	$ 6,669
Investment property	641	639
	$ 6,718	$ 7,308
Depreciation expenses summarized by function category
Operating expenses	$ 6,077	$ 6,669
Miscellaneous expenses	641	639
	$ 6,718	$ 7,308

d. Direct operating expenses of investment real estate

	For the Year Ended December 31
	2025	2024
Generate rental income	$ 641	$ 639

e. Employee benefits expenses

	For the Year Ended December 31
	2025	2024
Short term employee benefits
Payroll expense	$ 13,406	$ 17,798
Labor health insurance expenses	1,104	1,084
	15,610	18,882
Post-employment benefits
Defined contribution plans	366	342
Defined benefit plans (Note 17)	( 363 )	( 247 )
	3	95
Other employee benefits	436	434
Total employee benefit expenses	$ 17,289	$ 19,411
Summary by function category
Operating expenses	$ 17,289	$ 19,411

f. Employee remuneration and director remuneration

According to the Company's original Articles of Incorporation, after offsetting any accumulated deficits from previous years, the Company shall appropriate no less than 6% and no more than 3% of the current year's profit before tax and prior to the appropriation of employees' and directors' remuneration as employees' remuneration and directors' remuneration, respectively, if any balance remains.

In accordance with the amendment to the Securities and Exchange Act in August 2024, the Company amended its Articles of Incorporation upon approval at the shareholders' meeting held in June 2025, stipulating that one-third of the employees' remuneration appropriated for the current year shall be allocated to junior-level employees.

The estimated employees' remuneration (including remuneration for junior-level employees) and directors' 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 are any changes in the amounts after the date the annual individual financial statements are authorized for issue, the changes will be treated as changes in accounting estimates and recognized in the subsequent year.

There is no difference between the actual amounts of employees' compensation and directors' remuneration distributed for 2024 and 2023 and the respective amounts recognized in the parent-company-only financial statements for 2024 and 2023.

Information regarding the employees' compensation and directors' remuneration approved by the Board of Directors is available on the "Market Observation Post System" (MOPS) website of the Taiwan Stock Exchange.

21. 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	$ 660	$ -
Income tax on unappropriated earnings	618	-
Adjustments for prior years	( 60)	-
	1,218	-
Deferred tax
In respect of the current year	( 2,680)	7,811
Adjustments for prior years	( 3,192)	-
	( 5,872)	7,811
Income tax expense recognized in profit or loss	($ 4,654)	$ 7,811

The reconciliation between accounting income and income tax expenses is as follows:

	For the Year Ended December 31
	2025	2024
Net profit before tax	$ 84,340	$ 107,989
Income tax expense calculated at the statutory rate	$ 16,868	$ 21,597
Adjustments should be made when determining taxable income Items to reduce	( 12,658 )	( 13,814 )
Non-deductible expenses and losses from tax	-	460
Non-taxable income	( 1,036 )	-
Tax-free income	( 49 )	( 12 )
Income tax on unappropriated earnings	618	-
Utilization of tax losses carried forward	( 5,145 )	-
Deduction of unrecognized losses	( 3,252 )	( 420 )
Income tax expense recognized in profit or loss	($ 4,654 )	$ 7,811

b. Income tax recognized in other comprehensive profits and losses

	For the Year Ended December 31
	2025	2024
Deferred income tax
Generated in the year.
—Determination of remeasurement numbers for benefit plans	$ 290	$ 419

c. Income tax assets and liabilities for the current period

	December 31
	2025	2024
Current income tax assets
Tax refund receivable	$ 2,587	$ 2,478

d. Deferred income tax assets and liabilities

Changes in deferred income tax assets and liabilities are as follows:

2025

	Beginning balance	Recognized in profit or loss	Recognized in Other Compre-hensive profit and loss	Ending balance
Deferred income tax assets
Temporary difference
Allowance for doubtful debt losses	$ 1,546	($ 1,534)	$ -	$ 12
Allowance for inventory depreciation losses	17,686	(80)	-	17,606
	$ 19,232	($ 1,614)	$ -	$ 17,618
Deferred income tax liabilities
Temporary difference
Defined benefit plan	$ 4,267	$ 74	$ 290	$ 4,631
Unrealized exchange gains	10,528	(7,560)	-	2,968
	$ 14,795	($ 7,486)	$ 290	$ 7,599
2024
	Beginning balance	Recognized in profit or loss	Recognized in Other Compre-hensive profit and loss	Ending balance
Deferred income tax assets
Temporary difference
Allowance for doubtful debt losses	$ 1,546	$ -	$ -	$ 1,546
Allowance for inventory depreciation losses	17,872	(186)	-	17,686
	$ 19,418	($ 186)	$ -	$ 19,232
Deferred income tax liabilities
Temporary difference
Defined benefit plan	$ 3,799	$ 49	$ 419	$ 4,267
Unrealized exchange gains	2,952	7,576	-	10,528
	$ 6,751	$ 7,625	$ 419	$ 14,795

e. The unused loss deduction amount of deferred income tax assets is not recognized in the individual balance sheet

	December 31
	2025	2024
Loss deduction
Expiry in 2029	$ -	$ 23,625

f. Income tax assessment situation

The company's profit-making enterprise income tax declaration shall be approved by the tax collection authority 2023.

22. 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
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
Impacts of potential ordinary shares with dilution effect
Employee compensation	225	319
Weighted average of ordinary shares used for calculating dilutive earnings per share	80,225	80,319

If the company has 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.

23. PARTIAL ACQUISITION OR DISPOSAL OF INVESTMENT SUBSIDIARIES - DOES NOT AFFECT CONTROL

The Company disposed of part of its equity interests in AVTECH Security Corporation in June 2024, July 2024, and October 2025, resulting in a decrease in its shareholding percentage from 96.00% to 84.09%.

The Company disposed of part of its equity interests in CHIEFTRON INTERNATIONAL in August 2024, resulting in a decrease in its shareholding percentage from 84.11% to 82.31%.

The Company disposed of part of its equity interests in Q.S.C. Industry in December 2024, resulting in a decrease in its shareholding percentage from 100.00% to 88.53%.

As the above transactions did not result in a loss of control over these subsidiaries, the Company accounted for such transactions as equity transactions. For related information regarding partial disposals of subsidiaries, please refer to Note 13 and Note 28 to the Company's financial statements for the year 2025.

24. CAPITAL MANAGEMENT

The company's capital structure management strategy is based on the industry scale, future growth and product development blueprint of the company's business, and defines the corresponding capital expenditures for required plant and equipment; and then calculates the required working capital and cash to support the company in the long term make a comprehensive asset scale plan based on the various scales required for development; finally, determine the company's appropriate capital structure based on the relationship between the operating cycle of the company's products and cash flow.

25. FINANCIAL INSTRUMENTS

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

Except as listed in the table below, the carrying amounts of financial assets and financial liabilities not measured at fair value, except for the following table, are considered to be close to the fair value by the management of the Company.

December 31, 2025

	Carrying Amount	Fair Value
		Level 1	Level 2	Level 3	Total
Financial Assets
Financial assets measured at amortized cost
—Corporate bonds issued by foreign entities	$ 61,700	$ -	$ 59,079	$ -	$ 59,079

December 31, 2024

	Carrying Amount	Fair Value
		Level 1	Level 2	Level 3	Total
Financial Assets
Financial assets measured at amortized cost
—Corporate bonds issued by foreign entities	$ 64,305	$ -	$ 61,389	$ -	$ 61,389

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

b. Fair value information - 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 listed 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 financial instruments at Level 3 fair value measurement

2025

	Measured at fair value through other comprehensive profit or loss
Financial assets	Equity instruments
Beginning balance	$ 49,761
Recognized in other comprehensive income
-Not implemented	3,091
Ending balance	$ 52,852
2024
	Measured at fair value through other comprehensive profit or loss
Financial assets	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

Investments in domestic and foreign unlisted equity securities are measured at fair value using the asset approach. The asset approach estimates fair value based on the net asset value provided by the investee company.

c. Classification of financial instruments

	December 31
	2025	2024
Financial assets
Measured at fair value through profit or loss
Mandatorily at fair value through profit or loss	$ 1,652	$ 1,662
Financial assets at amortized cost (Note 1)	968,993	997,847
Financial assets at fair value through other comprehensive income
Investments in equity instruments	78,784	55,861
Financial liabilities
Measured at amortized cost (Note 2)	4,197	10,221

Note 1: The balance includes cash and equivalent cash, debt instrument investments, notes receivable, accounts receivable, other receivables and deposits and deposits, etc. Financial assets measured at amortized cost.

Note 2: The balance includes 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 Company's main financial instruments include equity and debt instrument investments, accounts receivable and accounts payable. The Company's financial management department provides services to all business units, coordinates operations in domestic and international financial markets, and supervises and manages financial risks related to the Company's operations. These risks include market risk (including exchange rate risk and interest rate risk), credit risk and liquidity risk.

1) Market risk

The Company's activities exposed it primarily to the financial risks of changes in foreign currency exchange rates (see "a. foreign currency risk" below) and interest rates (see "b. interest rate risk" below).

There is no change in the Company's exposure to market risks of financial instruments and how such exposure is managed and measured.

a. Foreign currency risk

The Company engages in sales and purchase transactions denominated in foreign currencies, which exposes the Company to risks arising from exchange rate fluctuations.

The Company's non-functional monetary assets on the balance sheet date are denominated in currency for the carrying amount of assets and monetary liabilities, please refer to Note 28.

Sensitivity analysis

The Company is mainly affected by fluctuations in the exchange rate of the US dollar.

The table below details the exchange rate of the New Taiwan Dollar (functional currency) to the United States Dollar.

Increase and decrease 1% At this time, the Company's sensitivity analysis was conducted. 1% It is the sensitivity ratio used internally by the Company when reporting exchange rate risks to key management. It also represents management's assessment of the reasonably possible range of changes in foreign currency exchange rates. The sensitivity analysis includes only foreign currency monetary items in circulation and converts them at the end of the year to changes in exchange rates. 1% be adjusted. The positive number system in the following table represents When the Taiwan dollar depreciates relative to the U.S. dollar 1% When, the amount by which the net profit before tax will be increased; when the New Taiwan dollar appreciates relative to the relevant foreign currencies 1% At this time, its impact on net profit before tax will be a negative number of the same amount.

	USD Impact (Note)
	For the Year Ended December 31
	2025	2024
Profit or loss	$ 1,812	$ 2,790

Note: Mainly derived from the company's US dollar-denominated cash and cash equivalents that are still outstanding on the balance sheet date and have not carried out cash flow hedging, financial assets and receivables measured at amortized cost.

Management believes that sensitivity analysis cannot represent the inherent risk of exchange rates because foreign currency risk exposure on the balance sheet date cannot reflect the mid-year risk situation.

b. Interest rate risk

The Company holds both fixed and floating interest rate bank deposits, thus generating interest rate exposure risk. The Company always pays attention to changes in market risk interest rates and adjusts interest rate policies to manage interest rate risks.

The carrying amounts of the Company's financial assets and financial liabilities subject to interest rate exposure on the balance sheet date are as follows:

	December 31
	2025	2024
With interest rate risk of fair value
—Financial assets	$ 767,589	$ 658,238
Interest rate risk with cash flows
—Financial assets	199,218	337,505

Sensitivity analysis

The sensitivity analysis below is based on the interest rate exposure of non-derivative instruments at the balance sheet date. For floating interest rate assets, the analysis method assumes that the amount of assets outstanding on the balance sheet date is all outstanding during the reporting period. The rate of change used by the Company when reporting interest rates internally to key management is Interest rate increases or decreases 100 Basis point, which also represents management's assessment of the reasonably possible range of changes in interest rates.

If the interest rate increases/decreases by 100 basis points, with all other variables remaining unchanged, the Company's net profit before tax in 2025 and 2024 will increase/decrease by NT$3,375 thousand and NT$4,826 thousand respectively, mainly due to the Company's variable-rate bank deposits and variable-rate financial assets measured at amortized cost.

2) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Company. At the end of the year, the Company's maximum exposure to credit risk, which may cause a financial loss to the Company due to the failure of counterparties to discharge an

obligation, could arise from the carrying amount of the respective recognized financial assets as stated in the balance sheets.

In order to maintain the quality of accounts receivable, the Company has established operations-related credit risk management procedures. The risk assessment of individual customers takes into account a number of factors that may affect the customer's ability to pay, including the customer's financial status, the company's internal credit rating, historical transaction records and current economic conditions. The company continues to monitor credit risk and the credit rating of the counterparty, and distributes the total transaction amount to customers with qualified credit ratings, and controls credit risk through the credit limit of the counterparty that is reviewed and approved by relevant departments every year.

In order to mitigate credit risks, the company's management has assigned a dedicated department to be responsible for the determination of credit limits, credit approval and other monitoring procedures to ensure that appropriate actions have been taken to recover overdue accounts receivable. The Company also uses certain credit enhancement tools such as Receive payment in advance to reduce credit risk. In addition, the Company will review the recoverable amount of receivables one by one on the balance sheet date to ensure that appropriate impairment losses have been set aside for irrecoverable receivables. Based on this, the company's management believes that the company's credit risk has been significantly reduced.

The Company does not have significant credit risk exposure to any single counterparty or any group of counterparties with similar characteristics. Concentration of credit risk to any other counterparty did not exceed 1% of the gross monetary assets at any time during 2025 and 2024.

3) Liquidity risk

The Company manages and maintains sufficient cash and cash equivalents to support its operations and mitigate the impact of cash flow fluctuations.

Liquidity and interest risk rate tables for non-derivative financial liabilities

The following liquidity and interest rate risk table details the remaining contract maturity analysis of the company's non-derivative financial liabilities with agreed repayment periods. It is based on the earliest date when the company may be required to repay, and is based on the undiscounted cash flow of financial liabilities. Prepared, which includes cash flows from interest and principal.

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	$ 6,533	$ -	$ 8,128	$ -

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	$ 6,896	$ -	$ 9,957	$ -

26. TRANSACTIONS WITH RELATED PARTIES

Besides information disclosed elsewhere in the other notes, details of transactions between the Company and other related parties are disclosed below.

a. Related parties and their relationship with the Company:

Related Party	Relationship with the Company
Junyi Investment Co., Ltd. (Junyi)	Investors with significant influence
CPCAM FRANCE SARL (CPCAM)	Subsidiary of a significant investor
CHIEFTRON INTERNATIONAL CORPORATION (CHIEFTRON INTERNATIONAL CORPORATION)	Subsidiary
AV TECH Investment Co., Ltd. (AV TECH Investment)	Subsidiary
AVTECH Security Corporation (AVTECH Security Corporation)	Subsidiary
Q.S.C. Industry Co., Ltd. (Q.S.C. Industry)	Subsidiary
YesGo Tech Corporation (YesGo Tech Corporation)	Subsidiary
ITsESG Data Corporation (ITsESG Data)	Associate
Anhong Electronic Technology (Shenzhen) Co., Ltd. (Anhong Electronic)	Associate

(Continued)

Related Party	Relationship with the Company
Info-Tech Corp.	Associate
AVCLOUD TECHNOLOGY	Associate
CORPORATION (AVCLOUD TECHNOLOGY)
Rong Jin Technology Co., Ltd (Rong Jin)	Substantial related party
Shenghua Technology Co., Ltd. (Shenghua)	Substantial related party
Qiaotai Investment Co., Ltd.	Substantial related party
Qiao Sheng Investment Co., Ltd.	Substantial related party
Atlancube LTD.	Substantial related party
Huaying Charity Foundation	Substantial related party
Zhifang Vision Technology Co., Ltd.	Substantial related party
Ju Rong Investment Co., Ltd.	Substantial related party
Ju-Lin Investment Co., Ltd.	Substantial related party

(Concluded)

b. Operating Revenue

Item	Related Party Category/Name	For the Year Ended December 31
		2025	2024
Sales revenue	Sales revenue
	AVTECH Security	$ 597	$ 771
	Q.S.C. Industry	-	2
		$ 597	$ 773

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

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

Item	Related Party Category/Name	December 31
		2025	2024
Accounts receivable	Subsidiary
	AVTECH Security	$ 5	$ -
	Investors with significant influence
	Other	-	139
Allowance for losses	Other	-	( 139 )
		$ 5	$ -

Outstanding receivables from related parties are unsecured. No allowance for loss has been recognized for receivables from related parties for the years ended December 31, 2025 and 2024.

d. Other receivables from related parties

Item	Related Party Category/Name	December 31
		2025	2024
Other accounts receivable	Substantial related
	Shenghua	$ 542	$ 471
	Subsidiary
	AVTECH Security	32	-
		$ 574	$ 471

e. Payables to related parties (excluding borrowings from related parties)

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

No guarantee has been provided for the balance of outstanding amounts payable to related parties.

f. Operating rental income

Item	Related Party Category/Name	For the Year Ended December 31
		2025	2024
Other income	Subsidiary
	Q.S.C. Industry	$ 5,349	$ 5,349
	AVTECH Security	3,054	3,009
	INTERNATIONAL	1,385	1,385
	Other	36	1,212
	Substantial related party
	Shenghua	4,265	3,937
	Other	1,715	589
		$ 15,804	$ 15,481

The company rents out the premises to related parties for office use, and charges are paid on a monthly or annual basis at a price agreed upon by both parties.

g. service income

Item	Related Party Category/Name	For the Year Ended December 31
		2025	2024
Other income	Subsidiary
	AVTECH Security	$ 996	$ 2,418
	Q.S.C. Industry	300	1,648
	Substantial related party
	Shenghua	-	4,692
	Other	-	433
		$ 1,296	$ 9,191

h. Other expense

Item	Related Party Category/Name	For the Year Ended December 31
		2025	2024
Management expenses	Subsidiary
	Q.S.C. Industry	$ 1,647	$ 1,660
	Other	120	3,402
		$ 1,767	$ 5,062

i. Rewards for key management levels

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

	For the Year Ended December 31
	2025	2024
Short term employee benefits	$ 7,980	$ 8,100

The remuneration of directors and other key management members is determined by the remuneration committee based on individual performance and market trends.

SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The following information is summarized and expressed in foreign currencies other than the Company's functional currency. The exchange rates disclosed refer to the exchange rates at which such foreign currencies are converted into functional currencies. Foreign currency assets and liabilities with significant impact are as follows:

Foreign currency assets	Foreign Currency	Exchange Rate	Carrying amount
Monetary items
USD	$ 5,766	31.430	$ 181,237
Foreign currency assets	Foreign Currency	Exchange Rate	Carrying amount
---	---	---	---
Monetary items
USD	$ 8,509	32.785	$ 278,968

Unrealized foreign currency exchange gains and losses with significant impact are as follows:

	2025		2024
Foreign Currency	Exchange Rate	Net gain (loss) on exchange	Exchange Rate	Net gain (loss) on exchange
USD	31.430 (USD:NTD)	($ 23,751)	32.785 (USD:NTD)	$19,736

28. SEPARATELY DISCLOSED ITEMS

a. Information on significant transactions and b. Information on reinvestment business

1) Loans of funds to others: None.
2) Endorsement guarantee for others: None.
3) Significant marketable securities held at the end of the period (excluding investment subsidiaries, affiliated enterprises and joint venture control parts): No significant securities are required to be separately disclosed.
4) The amount of imports and sales with related persons amounted to NT$100 million or paid-in capita 20% Above: None.
5) Amounts receivable from related parties amount to NT$100 million or paid-in capital 20% Above: None.

b. Information on investees: Table 1.

c. Information on investments in mainland China

1) The name of the investee company in mainland China, main business items, paid-in capital, investment method, inward and outward remittance of funds, shareholding ratio, investment income (loss), ending balance of investment book value, repatriated investment earnings, and investment limit in Mainland China: Table 2.
2) The following major transaction matters that occurred directly or indirectly through the third region with mainland invested companies, as well as their prices, payment terms, and unrealized profits and losses:

a) Purchase amount and percentage and closing balance and percentage of related payables: None.
b) Amount and percentage of sales and closing balance and percentage of related accounts receivable: None.

c) The amount of property transactions and the amount of profits and losses generated therefrom: None.

d) Ending balance of bills endorsed for guarantee or collateral provided and its purpose: None.

e) The maximum balance, ending balance, interest rate range and total interest for the year of financial facilities: None.

f) Other transactions that have a significant impact on the current year's profits and losses or financial status, such as the provision or receipt of services, etc.: None.

TABLE 1

AV TECH CORPORATION, LTD.

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	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
AV TECH Investment	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
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 the consolidated financial statements.
Note 2: Associate.
Note 3: YesGo performed a capital reduction to return share capital in May 2025. Subsequently, AV TECH Investment and Q.S.C. Industry sold their remaining equity interests in June 2025, resulting in a decrease in the consolidated company's comprehensive shareholding in YesGo 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 $84.09\%$ . The Company sold a portion of its equity interests in October 2025, which reduced its comprehensive shareholding from $90.04\%$ to $84.09\%$ .
Note 6: I Information on investment in mainland China: Please refer to Table 3.

TABLE 2

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 Technology	Semiconductor Components Agent	$ 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
(USD 699)	$ 21,970
(USD 699)	$ 1,379,219 (Note 3)

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.

AV TECH CORPORATION, LTD.
STATEMENT OF CASH AND CASH EQUIVALENTS
DECEMBER 31, 2025
(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)
Statement 1

Item	Summary	Amount
Cash on hand		$ 21
Bank checks and demand deposits
Checks and demand deposits		22,662
Foreign currency demand deposits	Mainly 410 thousand euros and 119 thousand US dollars, with exchange rates of 36.90 and 31.43 respectively	17,374
Equivalent to cash
The original expiration date is in 3 within months bank time deposit		153,406
		$ 193,463

AV TECH CORPORATION, LTD.
STATEMENT OF INVENTORIES
DECEMBER 31, 2025
(In Thousands of New Taiwan Dollars)

Statement 2

Item	Cost	Market value
Finished good	$ 28,778	$ -
Raw Materials	59,251	-
	88,029	$ -
Less: Allowance for inventory valuation and obsolescence losses	88,029
	$ -

Note: The market price is calculated based on the net realizable value.

AV TECH CORPORATION, LTD.
Detailed list of investment changes using the equity method
FOR THE YEAR ENDED DECEMBER 31, 2025
(In thousands of NT$ and foreign currency, unless otherwise specified)

Statement 3

Investor company name	Balance, January 1, 2025		Increase during the year		Decrease during the year		Investment income	Other	Balance, December 31, 2025			Net equity		Provide guarantee or pledge situation	Note
	Number of Shares	Amount	Number of Shares	Amount	Number of Shares	Amount			Number of Shares	Shareholding.	Amount	Unit price (NT$)	Amount
CHIEFTRON INTERNATIONAL CORPORATION	14,915,000	$ 352,434	-	$ -	-	$ 45,199	$ 49,869	$ 100	14,915,000	82.31%	$ 357,204	23.95	$ 357,204	None	Note 1
AV TECH Investment Co., Ltd.	8,000,000	62,548	-	-	-	-	7,345	169	8,000,000	100.00%	70,062	8.76	70,062	None	Note 2
AVTECH Security Corporation	4,535,520	52,190	-	-	300,000	8,105	10,523	-	4,235,520	84.09%	54,608	12.89	54,608	None	Note 3
Q.S.C. Industry Co., Ltd.	1,505,000	17,405	-	-	-	2,107	3,377	378	1,505,000	88.53%	19,053	12.66	19,053	None	Note 4
		$ 484,577		$ -		$ 55,411	$ 71,114	$ 647			$ 500,927		$ 500,927

Note 1: The decrease for the current year was primarily due to the receipt of dividends amounting to NT$45,199 thousand from CHIEFTRON INTERNATIONAL CORPORATION, and the recognition of NT$100 thousand in other representing exchange differences on the translation of financial statements of foreign operations.
Note 2: Other refers to the transfer of cumulative gains/losses from the disposal of financial assets measured at fair value through other comprehensive income (FVTOCI) to retained earnings, amounting to NT$169 thousand.
Note 3: The decrease for the current year was due to the company's disposal of 300,000 shares of AVTECH Security Corporation in October 2025 (Year 114) for a total of NT$3,570 thousand, and the receipt of dividends from AVTECH Security Corporation amounting to NT$4,535 thousand.
Note 4: The decrease for the current year was due to the receipt of dividends amounting to NT$2,107 thousand from Q.S.C. Industry Co., Ltd.; other refers to the transfer of cumulative gains/losses from the disposal of financial assets measured at fair value through other comprehensive income (FVTOCI) to retained earnings, amounting to NT$378 thousand.

AV TECH CORPORATION, LTD.
STATEMENT OF OPERATING COSTS
FOR THE YEAR ENDED DECEMBER 31, 2025
(In Thousands of New Taiwan Dollars)

Statement 4

Item	Amount
Direct raw material consumption :
Direct raw materials at the beginning of the year	$ 59,585
Add: Materials purchased this year	-
Less: Direct raw materials at the end of the year	( 59,251 )
Raw materials for sale	( 344 )
	( 10 )
Manufacturing cost	( 10 )
Finished goods cost	( 10 )
Add: Finished goods at the beginning of the year	28,850
Less: Year-end finished goods	( 28,777 )
Other	( 407 )
Production and sales costs	( 344 )
Raw materials for sale	344
Add: Inventory loss	-
Add: Benefits from falling inventory prices and sluggish recovery	-
	$ -

AV TECH CORPORATION, LTD.
STATEMENT OF OPERATING EXPENSES
FOR THE YEAR ENDED DECEMBER 31, 2025
(In Thousands of New Taiwan Dollars)

Statement 5

Item	Selling expenses	Management costs	Research and development expenses	Total
Payroll expense	$ -	$ 13,406	$ -	$ 13,406
Depreciation expense	-	6,077	-	6,077
Tax	-	3,130	-	3,130
Property expenses	-	3,695	-	3,695
Other expenses (Note)	-	12,959	-	12,959
	$ -	$ 39,267	$ -	$ 39,267

Note: Each amount does not exceed the balance of this account 5%.

AV TECH CORPORATION, LTD.
Summary table of functional categories of employee benefits, depreciation and amortization expenses incurred during the year
For the Years Ended December 31, 2025 and 2024
(In Thousands of New Taiwan Dollars)

Statement 6

Item	2025				2024
	Classified as Operating Costs	Classified as Operating Expenses	Non-operating expenses	Total	Classified as Operating Costs	Classified as Operating Expenses	Non-operating expenses	Total
Employee benefits expense (Note)
Payroll expense	$ -	$ 13,406	$ -	$ 13,406	$ -	$ 15,058	$ -	$ 15,058
Labor health insurance expenses	-	1,104	-	1,104	-	1,084	-	1,084
Pension expenses	-	3	-	3	-	95	-	95
Remuneration of directors	-	2,340	-	2,340	-	2,740	-	2,740
Other employee benefits expenses	-	436	-	436	-	434	-	434
	$ -	$ 17,289	$ -	$ 17,289	$ -	$ 19,411	$ -	$ 19,411
Depreciation expense	$ -	$ 6,077	$ 641	$ 6,718	$ -	$ 6,669	$ 639	$ 7,308

Note 1 : The average number of employees of the Company in 2025 and 2024 is 19, of which the number of directors who are not employees is 13 and 12 respectively, which is calculated on the same basis as the employee benefit expenses.
Note 2 : In 2025 and 2024 The average annual employee benefit expenses are NT$ 1,150 thousand and NT$ 1,389 thousand; the average employee salary and expenses are respectively NT$ 1,031 thousand and NT$ 1,255 thousand; the average salary cost adjustment range is 33%.
Note 3 : The company has established an audit committee to replace the supervisor in accordance with the provisions of the Securities and Exchange Act.
Note 4 : The company's remuneration policy is based on the position's contribution to the company's operating goals. The procedure for setting remuneration, in addition to setting the total amount to be paid based on the profit level of the year, is also based on the company's target management performance appraisal system, and then taking into account the contribution of the position to the company's operating performance to determine the amount of payment for the position.

AI assistant

AV TECH — Audit Report / Information 2025

52714_rns_2026-05-26_d202fcef-1c36-46d7-9370-d38ba731ca94.pdf

AV TECH CORPORATION, LTD.

INDEPENDENT AUDITORS' REPORT

Opinions

Basis for Opinion

Key Audit Matters

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

Auditors' Responsibilities for the Audit of the Financial Statements

Notice to Readers

1. GENERAL INFORMATION

2. Date and Procedures of Authorization of Financial Statements

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Statement of compliance

b. Basis of preparation

j. Financial instruments

1) Financial assets

a) Measurement categories

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

ii. Financial assets at amortized cost

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. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

14. PROPERTY, PLANT AND EQUIPMENT

15. INVESTMENT PROPERTIES

16. OTHER PAYABLES

17. BENEFITS AFTER RETIREMENT PLAN

18. EQUITY

19. OPERATING REVENUE

20. Net Profit for the Year

21. INCOME TAX

22. EARNINGS PER SHARE

23. PARTIAL ACQUISITION OR DISPOSAL OF INVESTMENT SUBSIDIARIES - DOES NOT AFFECT CONTROL

24. CAPITAL MANAGEMENT

25. FINANCIAL INSTRUMENTS

b. Interest rate risk

Sensitivity analysis

2) Credit risk

26. TRANSACTIONS WITH RELATED PARTIES

28. SEPARATELY DISCLOSED ITEMS

AV TECH CORPORATION, LTD.

AV TECH CORPORATION, LTD. AND SUBSIDIARIES

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AV TECH Audit Report / Information 2025