AWEA - Audit Report / Information 2024

Stock Code: 1530

AWEA Mechantronic Co., Ltd.

Parent Company Only Financial Statements and Independent Auditors’ Report

For the Years Ended December 31, 2024 and 2023

Address: No. 629, Sec. Shuichetou, Guanpu Rd., Xinpu Township, Hsinchu County Tel: (03)-5885191

Table of Contents

Items Chapter 1. Independent Auditors’ Report ...................................................... Chapter 2. Parent Company Only Balance Sheets ........................................ Chapter 3. Parent Company Only Statements of Comprehensive Income ... Chapter 4. Parent Company Only Statement of Changes in Equity ............. Chapter 5. Parent Company Only Statements of Cash Flows ....................... Chapter 6. Notes to Parent Company Only Financial Statements 1. History and Organization ..................................................... 2. Approval Date and Procedures of the Financial Statements 3. Application of Newly Issued and Amended Standards and Interpretations ....................................................................... 4. Summary of Significant Accounting Polices ........................ 5. Significant Accounting Judgment, Estimates, and Assumptions and the Main Sources of Assumption Uncertainty ........................................................................... 6. Summary of Significant Accounting Titles .......................... 7. Related Party Transactions ................................................... 8. Pledged Assets ...................................................................... 9. Significant Contingent Liabilities and Unrecognized Contract Commitments ......................................................... 10. Significant Disaster Loss ...................................................... 11. Significant Events after the Balance Sheet Date .................. 12. Others ................................................................................... 13. Additional Disclosures ......................................................... (1) Significant Transactions Information ............................ (2) Information on Investees ............................................... (3) Information on Investments in Mainland China ........... (4) Information on Major Shareholders .............................. 14. Segment Information ............................................................ Chapter 7. Statements of Significant Accounting Titles ...............................	Page
	1-7 8-9 10 11 12-13 14 14 14-15 15-31 32-33 34-62 63-67 68 68 68 68 69-74 74-82 76-78 79 80-81 82 75 83-95

Items
Chapter 1. Independent Auditors’ Report ......................................................
Chapter 2. Parent Company Only Balance Sheets ........................................
Chapter 3. Parent Company Only Statements of Comprehensive Income ...
Chapter 4. Parent Company Only Statement of Changes in Equity .............
Chapter 5. Parent Company Only Statements of Cash Flows .......................
Chapter 6. Notes to Parent Company Only Financial Statements
1. History and Organization .....................................................
2. Approval Date and Procedures of the Financial Statements
3. Application of Newly Issued and Amended Standards and
Interpretations .......................................................................
4. Summary of Significant Accounting Polices ........................
5. Significant Accounting Judgment, Estimates, and
Assumptions and the Main Sources of Assumption
Uncertainty ...........................................................................
6. Summary of Significant Accounting Titles ..........................
7. Related Party Transactions ...................................................
8. Pledged Assets ......................................................................
9. Significant Contingent Liabilities and Unrecognized
Contract Commitments .........................................................
10. Significant Disaster Loss ......................................................
11. Significant Events after the Balance Sheet Date ..................
12. Others ...................................................................................
13. Additional Disclosures .........................................................
(1) Significant Transactions Information ............................
(2) Information on Investees ...............................................
(3) Information on Investments in Mainland China ...........
(4) Information on Major Shareholders ..............................
14. Segment Information ............................................................
Chapter 7. Statements of Significant Accounting Titles ...............................

Page

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74-82
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80-81
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83-95

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EnWise CPAs & Co. 9F.-1, No.130, Taiyuan N. Rd., North Dist., Taichung City 404 TEL:(04)2296-6234 Fax:(04)2296-0607/2297-6918

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Independent Auditors’ Report

To AWEA Mechantronic Co., Ltd.:

Audit Opinion

We have audited the accompanying parent company only balance sheets of AWEA Mechantronic Co., Ltd., as at December 31, 2024 and 2023, and the related parent company only statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the parent company only financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the parent company only financial position of AWEA Mechantronic Co., Ltd. as of December 31, 2024 and 2023 and for the years then ended, and its individual financial performance and its individual cash flows for the years then ended in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers based on our audit results and the audit reports of other certified public accountants (CPAs) (refer to the section of “Other matters”).

Basis for Opinion

We conducted our audits, as entrusted, in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards generally accepted in the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountant of Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We are convinced that we have acquired enough and appropriate audit evidence to serve as the basis of audit opinion.

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EnWise CPAs & Co. 9F.-1, No.130, Taiyuan N. Rd., North Dist., Taichung City 404 TEL:(04)2296-6234 Fax:(04)2296-0607/2297-6918

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Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the parent company only financial statements for the year ended December 31, 2024 of AWEA Mechantronic Co., Ltd. These matters were addressed in the context of our audit of the individual financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matters for the Company’s individual financial statements for the year ended December 31, 2024 are stated as follows:

Revenue recognition

The main source of revenue for AWEA Mechantronic Co., Ltd. is the sales of machining centers. In 2024, the recognized revenue was NTD 1,063,945 thousand, which accounted for about 82% of the total operating revenue. Since the sales locations include Taiwan, Mainland China, Italy and the United States, the sales terms vary by customers, the risks of ownership and the time of compensation transfer shall be determined in accordance with the terms of the customer’s orders or contracts, and the time and amount of revenue recognition can have a significant impact on the financial statements. Therefore, we have identified revenue recognition as one of the key audit matters.

For the accounting policies related to revenue recognition, please refer to Note 4 to the parent company only financial statements.

We evaluated the reasonableness of the sales revenue recognition, performed the cut-off point test, and performed internal control tests to understand the design and implementation of the sales revenue recognition process and the related control system of AWEA Mechantronic Co., Ltd. In addition, we conducted related control tests on the sales and collection cycles, sampled and checked the sales contracts to confirm the correctness of the information in the accounting system, performed reconciliations between the general ledger system and the sales system, and assessed whether the time of revenue recognition was in accordance with the relevant reporting regulations.

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EnWise CPAs & Co. 9F.-1, No.130, Taiyuan N. Rd., North Dist., Taichung City 404 TEL:(04)2296-6234 Fax:(04)2296-0607/2297-6918

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Evaluation of inventories

AWEA Mechantronic Co., Ltd. mainly engages in the design, manufacture and sales of special machines, automation equipment and computer-controlled tool machines. As of December 31, 2024, the total inventories, allowance for market value decline and loss on obsolete and slow-moving inventories were NTD 1,398,408 thousand and NTD 341,752 thousand, respectively. Inventories of AWEA Mechantronic Co., Ltd. are measured at cost and net realizable value. Allowance for market value decline and loss on obsolete and slow-moving inventories are allocated for inventories aged over a certain period of time or individually identified as obsolete. Due to the intense competition in the spare parts market and the varying speeds of obsolescence of different products, the risks of loss on decline in the market value or obsolete inventories are relatively high. The net realizable values used for obsolete inventories and their evaluation usually involve subjective judgment and are therefore highly uncertain. Considering the significant impact of inventories and their allowance for market value decline and loss on obsolete and slow-moving inventories on financial statements, we have identified allowance for market value decline and loss on obsolete and slow-moving inventories as one of the key audit matters.

For the accounting policies related to inventories, please refer to Note 4 to the parent company only financial statements; for significant accounting estimates and assumptions used in the evaluation of inventories, please refer to Note 5 to the parent company only financial statements.

We understood, evaluated, and tested the design and implementation of the internal control system related to inventory management, obtained the evaluation data on the lower of cost or net realizable value of inventories compiled by management authority, sampled and estimated the selling price information to the most recent sales records, and assessed the basis of management authority’s estimate of net realizable value and its reasonableness; obtained an inventory aging statement, and assessed the appropriateness of the policy on provision for allowance for market value decline and loss on obsolete and slow-moving inventories.

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EnWise CPAs & Co. 9F.-1, No.130, Taiyuan N. Rd., North Dist., Taichung City 404 TEL:(04)2296-6234 Fax:(04)2296-0607/2297-6918

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Other Matters - References to the Audits of Other CPAs

In the above parent company only financial statements, the financial statements of YAMA SEIKI USA, INC., which are investments accounted for using the equity method, were not audited by us, but were audited by other CPAs entrusted by the Company. For the years ended December 31, 2024 and 2023, the balances of investments accounted for using the equity method were NTD 126,784 thousand and NTD 108,435 thousand, respectively, which both accounted for 2% of the Company’s total assets. For the years ended December 31, 2024 and 2023, the share of profit or loss of subsidiaries, associates, and joint ventures accounted for using the equity method were NTD 7,214 thousand and NT$6,901 thousand, respectively, which accounted for 2% and 3% of the Company’s net profit before tax, respectively.

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

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

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

Those charged with governance (including members of the Audit Committee) are responsible for overseeing the AWEA Mechantronic Co., Ltd.’s financial reporting process.

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EnWise CPAs & Co. 9F.-1, No.130, Taiyuan N. Rd., North Dist., Taichung City 404 TEL:(04)2296-6234 Fax:(04)2296-0607/2297-6918

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Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements

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

As part of an audit in accordance with the auditing standards generally accepted in 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 parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. Fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Therefore, the risk of not detecting a material misstatement resulting from fraud is higher than the one resulting from error.
Obtain an understanding of internal control relevant to the audit to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the AWEA Mechantronic Co., Ltd.’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management level.
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 AWEA Mechantronic Co., Ltd.’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our - 5 -

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EnWise CPAs & Co. 9F.-1, No.130, Taiyuan N. Rd., North Dist., Taichung City 404 TEL:(04)2296-6234 Fax:(04)2296-0607/2297-6918

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auditors’ report. However, future events or conditions may cause AWEA Mechantronic Co., Ltd. to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the parent company only financial statements, including relevant notes, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the investee company accounted for using equity method to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the audit of such investee company. We remain solely responsible for our audit opinion on the parent company only financial statements.

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 parent company only financial statements of AWEA Mechantronic Co., Ltd. for the year ended December 31, 2024 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.

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EnWise CPAs & Co. 9F.-1, No.130, Taiyuan N. Rd., North Dist., Taichung City 404 TEL:(04)2296-6234 Fax:(04)2296-0607/2297-6918

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EnWise CPAs & Co.

CPA Guei-Duan Chen

CPA Chang-Yun Yi

Approval number of the Securities and Approval number of the Securities and Futures Management Committee, Futures Management Committee, Ministry of Finance Ministry of Finance (1990) Tai-Cai-Zheng (I) No. 27495 (2003) Tai-Cai-Zheng (VI) No. 121986

February 26, 2025

Notice to Readers

The accompanying parent company only financial statements are intended only to present the parent company only 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 parent company only financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors' report and the accompanying parent company only 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 parent company only financial statements shall prevail.

AWEA Mechantronic Co., Ltd.

Parent Company Only Balance Sheets

December 31, 2024 and 2023

Amount % 484,221 $ 8 976,539 16 50,008 1 12,882 - 166,340 3 130,654 2 8,557 - 70,061 1 31,460 1 1,056,656 18 11,589 - 228,310 4 3,227,277 54 376 - 10,200 - 1,018,033 17 1,493,380 25 164,531 3 4,542 - 91,211 1 3,268 - 2,408 - 3,224 - - - 2,791,173 46 6,018,450 $ 100 December 31, 2024	Unit: NT$ thousand December 31, 2023	Unit: NT$ thousand December 31, 2023
Amount 484,221 $ 976,539 50,008 12,882 166,340 130,654 8,557 70,061 31,460 1,056,656 11,589 228,310 3,227,277 376 10,200 1,018,033 1,493,380 164,531 4,542 91,211 3,268 2,408 3,224 - 2,791,173 6,018,450 $	Amount 618,201 $ 536,929 51,118 858 304,590 121,722 9,660 61,626 - 1,009,015 7,398 344,421 3,065,538 1,991 10,137 952,269 1,378,679 910 5,813 84,620 3,200 1,838 7,413 - 2,446,870 5,512,408 $	%
		11 10 1 - 6 2 - 1 - 19 - 6
		56
		- - 17 25 - - 2 - - - -
		44
		100

Please refer to the accompanying notes to the financial statements.

Chairman: De-Hua Yang Managerial officer: Shang-Ru Yang Accounting Supervisor: Guo-Xuan Fan

AWEA Mechantronic Co., Ltd.

Parent Company Only Balance Sheets

December 31, 2024 and 2023

Amount % 1,565,000 $ 26 79,992 2 104,905 2 168,455 3 5,630 - 66,977 1 2,644 - 75,319 1 1,008 - 7,970 - 10,418 - 7,536 - 190 - 1,102 - 2,097,146 35 122,685 2 158,305 3 4,549 - 428 - 285,967 5 2,383,113 40 965,942 16 6,124 - 57,468 1 4 - 31,920 - 583,117 10 98,077 2 1,895,429 31 (2,588) - (156) - 3,635,337 60 6,018,450 $ 100 December 31, 2024	December 31, 2023 Unit: NT$ thousand	December 31, 2023 Unit: NT$ thousand
Amount 1,565,000 $ 79,992 104,905 168,455 5,630 66,977 2,644 75,319 1,008 7,970 10,418 7,536 190 1,102 2,097,146 122,685 158,305 4,549 428 285,967 2,383,113 965,942 6,124 57,468 4 31,920 583,117 98,077 1,895,429 (2,588) (156) 3,635,337 6,018,450 $	Amount 1,465,000 $ 79,987 57,348 261,961 2,387 83,494 1,559 86,952 1,209 49,866 11,032 638 190 1,075 2,102,698 108,177 280 6,973 428 115,858 2,218,556 965,942 6,124 57,468 4 31,920 562,966 98,077 1,606,748 (32,016) (3,381) 3,293,852 5,512,408 $	%
		27 1 1 5 - 2 - 2 - 1 - - - -
		39
		2 - - -
		2
		41
		18 - 1 - 1 10 2 28 (1) -
		59
		100

Please refer to the accompanying notes to the financial statements.

Chairman: De-Hua Yang Managerial officer: Shang-Ru Yang Accounting Supervisor: Guo-Xuan Fan

AWEA Mechantronic Co., Ltd.

Parent Company Only Statements of Comprehensive Income

For the Years Ended December 31, 2024 and 2023

Unit: NTD thousand, except earnings per share Amount % Amount % 1,293,022 $ 100 1,572,321 $ 100 (1,108,126) (86) (1,331,564) (85) 184,896 14 240,757 15 10,388 1 3,553 - 195,284 15 244,310 15 (112,392) (9) (125,086) (8) (47,473) (4) (50,884) (3) (92,583) (7) (53,729) (3) (1,738) - 7,865 1 (254,186) (20) (221,834) (13) (58,902) (5) 22,476 2 23,209 2 30,000 2 47,932 4 50,951 3 470,314 36 132,191 8 (29,478) (2) (28,704) (2) 9,095 - 34,073 2 521,072 40 218,511 13 462,170 35 240,987 15 (9,669) (1) (30,176) (2) 452,501 34 210,811 13 1,656 - (351) - 3,122 - (1,486) - (331) - 70 - 36,785 3 (16,647) (1) (7,357) - 3,330 - 33,875 3 (15,084) (1) 486,376 $ 37 195,727 $ 12 4.68 $ 2.18 $ 4.66 $ 2.17 $ 2024 2023	Unit: NTD thousand, except earnings per share Amount % Amount % 1,293,022 $ 100 1,572,321 $ 100 (1,108,126) (86) (1,331,564) (85) 184,896 14 240,757 15 10,388 1 3,553 - 195,284 15 244,310 15 (112,392) (9) (125,086) (8) (47,473) (4) (50,884) (3) (92,583) (7) (53,729) (3) (1,738) - 7,865 1 (254,186) (20) (221,834) (13) (58,902) (5) 22,476 2 23,209 2 30,000 2 47,932 4 50,951 3 470,314 36 132,191 8 (29,478) (2) (28,704) (2) 9,095 - 34,073 2 521,072 40 218,511 13 462,170 35 240,987 15 (9,669) (1) (30,176) (2) 452,501 34 210,811 13 1,656 - (351) - 3,122 - (1,486) - (331) - 70 - 36,785 3 (16,647) (1) (7,357) - 3,330 - 33,875 3 (15,084) (1) 486,376 $ 37 195,727 $ 12 4.68 $ 2.18 $ 4.66 $ 2.17 $ 2024 2023	Unit: NTD thousand, except earnings per share Amount % Amount % 1,293,022 $ 100 1,572,321 $ 100 (1,108,126) (86) (1,331,564) (85) 184,896 14 240,757 15 10,388 1 3,553 - 195,284 15 244,310 15 (112,392) (9) (125,086) (8) (47,473) (4) (50,884) (3) (92,583) (7) (53,729) (3) (1,738) - 7,865 1 (254,186) (20) (221,834) (13) (58,902) (5) 22,476 2 23,209 2 30,000 2 47,932 4 50,951 3 470,314 36 132,191 8 (29,478) (2) (28,704) (2) 9,095 - 34,073 2 521,072 40 218,511 13 462,170 35 240,987 15 (9,669) (1) (30,176) (2) 452,501 34 210,811 13 1,656 - (351) - 3,122 - (1,486) - (331) - 70 - 36,785 3 (16,647) (1) (7,357) - 3,330 - 33,875 3 (15,084) (1) 486,376 $ 37 195,727 $ 12 4.68 $ 2.18 $ 4.66 $ 2.17 $ 2024 2023
Amount 1,293,022 $ (1,108,126) 184,896 10,388 195,284 (112,392) (47,473) (92,583) (1,738) (254,186) (58,902) 23,209 47,932 470,314 (29,478) 9,095 521,072 462,170 (9,669) 452,501 1,656 3,122 (331) 36,785 (7,357) 33,875 486,376 $ 4.68 $ 4.66 $	Amount 1,572,321 $ (1,331,564) 240,757 3,553 244,310 (125,086) (50,884) (53,729) 7,865 (221,834) 22,476 30,000 50,951 132,191 (28,704) 34,073 218,511 240,987 (30,176) 210,811 (351) (1,486) 70 (16,647) 3,330 (15,084) 195,727 $ 2.18 $ 2.17 $	%
		100 (85)
		15 -
		15
		(8) (3) (3) 1
		(13)
		2
		2 3 8 (2) 2
		13
		15 (2)
		13
		- - - (1) -
		(1)
		12

Please refer to the accompanying notes to the financial statements.

Chairman: De-Hua Yang Managerial officer: Shang-Ru Yang Accounting Supervisor: Guo-Xuan Fan

10 -

AWEA Mechantronic Co., Ltd.

Parent Company Only Statement of Changes in Equity For the Years Ended December 31, 2024 and 2023

Unit: NTD

							Unit: NTD
Items Balance at January 1, 2023 Appropriation and distribution of retained earnings: Legal reserve Cash dividends paid 2023 Net profit Other comprehensive income for 2023 Total comprehensive income of 2023 Disposal of investments in equity instruments at fair value through other comprehensive income Balance at December 31, 2023 Appropriation and distribution of retained earnings: Legal reserve Cash dividends paid 2024 Net profit Other comprehensive income for 2024 Total comprehensive income of 2024 Disposal of investments in equity instruments at fair value through other comprehensive income Balance at December 31, 2024	Share capital Common stock 965,942 $ - - - - - - 965,942 - - - - - - 965,942 $	Capital surplus 95,516 $ - - - - - - 95,516 - - - - - - 95,516 $		Retained earnings	Unappropriated earnings 1,595,597 $ (35,790) (154,551) 210,811 (281) 210,530 (9,038) 1,606,748 (20,151) (144,891) 452,501 1,325 453,826 (103) 1,895,429 $	Exchange difference on translation of financial statements of foreign operations Unrealised gains (losses) on valuation of financial assets measured at fair value through other comprehensive income $ (18,699) $ (10,933) - - - - - - (13,317) (1,486) (13,317) (1,486) - 9,038 (32,016) (3,381) - - - - - - 29,428 3,122 29,428 3,122 - 103 (2,588) $ (156) $ Other equity items	Total equity
			Legal reserve 527,176 $ 35,790 - - - - - 562,966 20,151 - - - - - 583,117 $	Special reserve 98,077 $ - - - - - - 98,077 - - - - - - 98,077 $		Exchange difference on translation of financial statements of foreign operations $ (18,699) - - - (13,317) (13,317) - (32,016) - - - 29,428 29,428 - (2,588) $
							3,252,676 $ - (154,551) 210,811 (15,084)
							195,727
							-
							3,293,852 - (144,891) 452,501 33,875
							486,376
							-
							3,635,337 $

Please refer to the accompanying notes to the financial statements.

Chairman: De-Hua Yang Managerial officer: Shang-Ru Yang Accounting Supervisor: Guo-Xuan Fan

11 -

AWEA Mechantronic Co., Ltd.

Parent Company Only Statements of Cash Flows

For the Years Ended December 31, 2024 and 2023

Unit: NTD thousand

		Unit: NTD thousand
Cash flows from operating activities Net profit before tax Adjustments Depreciation Amortisation Expected credit impairment losses (gains) Net gain on financial assets at FVTPL Interest expense Interest income Dividend revenue Share of profit or loss of subsidiaries, associates and joint ventures accounted for using equity method Gain on disposal of property, plant and equipment Lease modification benefit Gains on disposals of investments Unrealized (Realized) gain from sale with subsidiaries and associates Allowance for provisions Changes in operating assets and liabilities Notes receivable Notes receivable - related parties Account receivables Account receivables - related parties Other receivables Other receivables - related parties Inventories Prepayments Other current assets Overdue receivables Long-term notes receivable Contract liabilities Notes payable Notes payable - related parties Accounts payable Accounts payable - related parties Other payables Other payables - related parties Provisions Advance receipts Other current liabilities Net defined benefit liability Cash generated from operations Interest received Income tax paid Net cash generated by operating activities (Continued)	2024 462,170 $ 67,270 1,921 1,738 (413,198) 29,478 (23,209) (23,155) (9,095) (2,683) (4) (977) (10,388) 1,956 7,268 (12,024) 135,063 (8,932) (530) 1,565 (47,641) (4,191) (1,027) (5,289) 4,769 47,557 (93,506) 3,243 (16,517) 1,085 (10,803) (201) (2,570) - 27 (768) 78,402 24,842 (81,942) 21,302	2023
		240,987 $ 71,296 1,741 (7,865) (123,694) 28,704 (30,000) (23,308) (34,073) (343) - (2,841) (3,553) - 200,603 202 116,040 (52,805) 236 (1,584) 12,264 (664) 182 8,784 5,380 (15,975) (131,544) (9,383) 10,666 70 (2,419) (468) (23) 148 (995) (2,369)
		253,397 30,733 (46,558)
		237,572

12 -

AWEA Mechantronic Co., Ltd.

Parent Company Only Statements of Cash Flows

For the Years Ended December 31, 2024 and 2023

Unit: NTD thousand

		Unit: NTD thousand
(Continued from previous page) Cash flows from investing activities Acquisitions of financial assets at fair value through other comprehensive income Disposal of financial assets at fair value through other comprehensive income Acquisition of financial assets measured at amortized cost Acquisitions of financial assets at fair value through profit or loss Disposal of financial assets at fair value through profit or loss Acquisition of investments accounted for using equity method Acquisition of property, plant and equipment Disposal of property, plant and equipment Decrease (increase) in refundable deposits Decrease (increase) in other receivables - related parties Acquisitions of intangible assets Decrease in other financial assets Increase in prepayments for equipment Dividends received Net cash inflow (outflow) from investing activities Cash flows from financing activities Increase (decrease) in short-term borrowings Decrease in short-term notes and bills payable Decrease in guarantee deposits received Repayment of principal of lease liabilities Cash dividends paid Interest paid Net cash outflow from financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at the beginning of year Cash and cash equivalents at the end of year	2024 (19) 4,756 (63) (28,164) 2,091 (10,350) (181,973) 11,789 (570) (10,000) (650) 117,138 (68) 23,793 (72,290) 100,000 - - (7,858) (144,891) (30,243) (82,992) (133,980) 618,201 484,221 $	2023
		- 6,981 (10,137) (49,014) 15,622 - (44,082) 343 2,076 10,000 (760) 197,356 (2,900) 94,511
		219,996
		(415,000) (209,654) (200) (11,420) (154,551) (27,566)
		(818,391)
		(360,823) 979,024
		618,201 $

Please refer to the accompanying notes to the financial statements.

Chairman: De-Hua Yang Managerial officer: Shang-Ru Yang Accounting Supervisor: Guo-Xuan Fan

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AWEA Mechantronic Co., Ltd.

Notes to Parent Company Only Financial Statements

For the Years Ended December 31, 2024 and 2023

Unit: NTD thousand (unless stated otherwise)

1. History and Organization

AWEA Mechantronic Co., Ltd. (hereinafter referred to as the Company) was established on July 16, 1986. The design, manufacture and sales of special machines, automation equipment and computer-controlled tool machines are its main business.

The shares of the Company was approved of listing by Document Tai-Zheng-(2000)-Shang-Zi No. 025773 on September 6, 2000, and began to be listed for trading on TWSE Stock Exchange Market since September 11, 2000.

2. Approval Date and Procedures of the Financial Statements

The parent company only financial statements were approved by the board of directors and authorized for issue on February 26, 2025.

3. Application of Newly Issued and Amended Standards and Interpretations

(1) Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, “IFRS”) endorsed and issued into effect by the Financial Supervisory Commission (FSC)

Except as stated below, the application of the amendments to the IFRS endorsed and issued into effect by the FSC does not have a significant effect on the Company’s accounting policies:

(2) IFRSs endorsed by the FSC for application in 2025:

Effective Date New, Revised or Amended Standards and Interpretations Announced by IASB (Note 1) Amendments to IAS 21 “Lack of Exchangeability” January 1, 2025 (Note 1)

Note 1: This amendment applies for annual reporting periods beginning after January 1, 2025. When initially applying the amendment, the comparative period shall not be recompiled. Instead, the impact amount shall be recognized in the exchange difference (as appropriate) of the foreign operating institution under retained
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earnings or equity on the initial application date, along with the related affected assets and liabilities.

(3) IFRS issued by the International Accounting Standards Board (IASB) but not yet endorsed and issued into effect by the FSC

endorsed and issued into effect by the FSC
New, Revised or Amended Standards and Interpretations Annual Improvements to IFRS Accounting Standards - Volume 11 Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments” Amendments to IFRS 9 and IFRS 7 “Contracts for Nature-dependent Electricity” Amendments to IFRS 10 and IAS 28, “Sale or contribution of assets between an investor and its associate or joint venture” IFRS 17, “Insurance contracts” Amendments to IFRS 17 Amendment to IFRS 17, “Initial application of IFRS 17 and IFRS 9 comparative information” IFRS 18 “Presentation and Disclosure in Financial Statements” IFRS 19 “Subsidiaries without Public Accountability: Disclosures”	Effective Date Announced by IASB (Note 1)
	January 1, 2026 January 1, 2026 January 1, 2026 To be determined by IASB January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2027 January 1, 2027

endorsed and issued into effect by the FSC

New, Revised or Amended Standards and Interpretations
Annual Improvements to IFRS Accounting Standards - Volume 11
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification
and Measurement of Financial Instruments”
Amendments to IFRS 9 and IFRS 7 “Contracts for Nature-dependent
Electricity”
Amendments to IFRS 10 and IAS 28, “Sale or contribution of assets
between an investor and its associate or joint venture”
IFRS 17, “Insurance contracts”
Amendments to IFRS 17
Amendment to IFRS 17, “Initial application of IFRS 17 and IFRS 9
comparative information”
IFRS 18 “Presentation and Disclosure in Financial Statements”
IFRS 19 “Subsidiaries without Public Accountability: Disclosures”

Effective Date
Announced by IASB
(Note 1)

January 1, 2026
January 1, 2026
January 1, 2026
To be determined by
IASB
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2027
January 1, 2027

Note 1: Unless stated otherwise, the above new/revised/amended standards or interpretations are effective for annual reporting periods beginning on their respective effective dates.

In addition to the above effects, as of the date the financial statements were authorized, the Company is continuously assessing the possible impact that the application of other standards and interpretations will have on the financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. Summary of Significant Accounting Polices

The summary of significant accounting policies applied in the preparation of the parent company only financial statements are set out below. The following accounting policies have been consistently applied to all periods presented in the parent company only financial statements, except as described in Notes 3 and 4 regarding accounting changes.

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(1) 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”, International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the FSC.

(2) Basis of preparation

Except for the following significant items of balance sheet, this parent company only financial statement has been prepared at historical cost:

A. Financial assets measured at fair value through profit or loss;
B. Financial assets measured at fair value through other comprehensive income;
C. The net defined benefit liability is the fair value of pension fund assets less the present value of defined benefit obligations.

In preparing the parent company only financial statements, the equity method is adopted to the investments in subsidiaries and associates. For the purpose of making the current profit and loss, other comprehensive income and equity in this parent company only financial statement identical to those in the Company’s owner in the consolidated financial statements, several accounting treatment differences under individual and consolidated basis are adjusted into “Investments Accounted for Using Equity Method”, “Share of the Profit or Loss of Subsidiaries and Associates Accounted for Using the Equity Method”, and “Share of Other Comprehensive Income of Subsidiaries and Associates Accounted for Using Equity Method”.

(3) Functional currency and presentation currency

The Company uses the currency of the primary economic environment in which the entity operates as the functional currency. The parent company only financial statements are presented in New Taiwan dollars, the Company’s functional currency. All financial information presented in New Taiwan dollars are in thousands of New Taiwan dollars.

(4) Classification of current and non-current assets and liabilities
A. Assets that meet one of the following criteria are classified as current assets. All assets that are not classified as current assets are classified as non-current assets:
- (A) Assets that are expected to be realized, or are intended to be sold or consumed within the normal business cycle;
- (B) Assets held mainly for trading purposes;
- (C) Assets that are expected to be realized within twelve months after the reporting period; or
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- (D) The asset is cash and cash equivalents, excluding restricted assets and those that are to be exchanged or used to settle liabilities more than twelve months after the reporting period.
B. Liabilities that meet one of the following criteria are classified as current liabilities. All liabilities that are not classified as current liabilities are classified as non-current liabilities:
- (A) Liabilities that are expected to be settled within the normal business cycle;
- (B) Liabilities held mainly for trading activities.
- (C) Liabilities that are expected to be due for settlement within twelve months after the reporting period; or
- (D) Liabilities for which the repayment date cannot be extended unconditionally to more than twelve months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.
(5) Foreign currency transactions

When preparing the parent company only financial statements, traders in currencies other than the Company’s functional currency (foreign currency) are recognized by translation to the functional currency based on the exchange rate of the transaction day. At the end of the reporting period, monetary items denominated in foreign currencies are translated into the functional currency based on the exchange rate of the transaction day; non-monetary items denominated in foreign currencies and measured at fair value are translated into the functional currency based on the exchange rate on the day of the fair value measurement; non-monetary items denominated in foreign currencies and measured at historical cost are translated into the functional currency based on the exchange rate of the transaction day. The exchange differences arising from translation are recognized in profit or loss in the period in which they arise.

For purpose of preparing the parent company only financial statements, the assets and liabilities of foreign operations of the Company shall be translated to NTD by the exchange rate on ending date of the reporting period; the income and expense items shall be translated to NTD at the average exchange rate of the current period, and the resulting exchange difference shall be recognized as other comprehensive profit or loss and accumulated as the translation difference in the financial statements of foreign operations under equity.

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(6) Cash and cash equivalents

Cash includes cash on hand and current deposits. Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Time deposits that meet the definition above and are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes are classified as cash equivalents.

(7) Financial instruments

Accounts receivable are initially recognized when they are incurred. All other financial assets and liabilities shall be recognized initially when the Company becomes a party to the contractual provisions of the financial instruments. Financial assets (other than accounts receivable that do not contain significant financial components) or financial liabilities not measured at fair value through profit or loss shall be initially measured at fair value plus transaction costs that are directly attributable to the acquisition or issuance. Accounts receivable that do not contain significant financial components shall be initially measured at transaction price.

A. Financial assets

At initial recognition, financial assets shall be classified as financial assets at amortized cost, financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income. The Company reclassifies all affected financial assets from the first day of the next reporting period only when there is a change in the business model for financial assets management.

(A) Financial assets measured at amortized cost

Financial assets are measured at amortized cost when they meet all of the following criteria and are not designated as at fair value through profit or loss:

a. The financial assets are held under the business model with the purpose of collecting contractual cash flows.
b. The contract terms of the financial assets generate cash flow on a specific date, and such cash flow is solely for the payment of the principle and the interest on outstanding principle amount.

Such assets are subsequently measured at amortized cost based on the initially recognized amount plus or minus accumulated amortization calculated using the effective interest method, adjusted for any loss allowance. Interest income, foreign currency exchange gains and losses, and impairment losses are recognized in profit or loss. Gains or losses are recognized in profit or loss at derecognition.

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(B) Financial assets at FVTPL

Financial assets not classified as financial assets at amortized cost or at fair value through other comprehensive income are measured at fair value through profit or loss, including derivative financial assets. The Company may irrevocably designate financial assets that qualify as financial assets at amortized cost or at fair value through other comprehensive income as financial assets at fair value through profit or loss at the time of initial recognition in order to eliminate or materially reduce accounting mismatch. Such assets shall be measured at fair value subsequently, and their net gains or losses shall be recognized in profit or loss.

At initial recognition, the Company has made an irrevocable election to recognize subsequent changes in the fair value of equity instruments not held for trading in other comprehensive income. The above election is made on an instrument-by-instrument basis.

Investments in debt instruments are subsequently measured at fair value. Interest income, foreign currency exchange gains and losses, and impairment losses calculated using the effective interest method are recognized in profit or loss, and the remaining net gains or losses are recognized in other comprehensive income. Upon derecognition, the cumulative amount in other comprehensive income shall be reclassified to profit or loss.

Investments in equity instruments are subsequently measured at fair value. Dividend income (unless it obviously represents the recovery of a portion of cost of investment) is recognized in profit or loss. The remaining net gains or losses are recognized in other comprehensive income and are not reclassified to profit or loss.

Dividend income from equity investments is recognized on the date when the Company has the right to receive the dividend (usually the ex-dividend date).

(D) Impairment of financial assets

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

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The loss allowance is measured at 12-month expected credit losses for the following financial assets, and at the lifetime expected credit losses of the other financial assets:

a. The credit risk of debt securities is determined to be low at the reporting date; and
b. The credit risks of other debt securities and bank deposits (i.e., the risk of default on financial instruments over the expected life) have not increased significantly since the initial recognition.

The loss allowances for accounts receivable and contract assets are measured at the amount of lifetime expected credit losses.

When determining whether the credit risk has increased significantly since the initial recognition, the Company has considered reasonable and provable information (which can be obtained without undue costs or inputs), including qualitative and quantitative information, and analyses based on the Company’s historical experience, credit assessment and forward-looking information.

Lifetime expected credit losses result from all possible default events over the expected life of the financial instruments.

The 12-month expected credit losses are expected credit losses that result from possible default events within 12 months after the reporting date (or for shorter periods, if the expected life of the financial instrument is less than 12 months).

The maximum period for which expected credit losses are measured is the maximum contract period over which the Company is exposed to credit risk.

Expected credit losses are weighted estimates of the probability of credit losses over the expected life of the financial instruments. Credit losses are measured at the present value of all cash shortfalls, which is the difference between the cash flows that the Company could receive under the contract and the cash flows that the Company expects to receive. Expected credit losses are discounted at the effective interest rate of the financial asset.

On each reporting date, the Company evaluates whether credit impairment occurs to the financial assets measured at amortized cost and debt securities measured at fair value through other comprehensive income. Credit impairment occurs to a financial asset when one or more events that have an adverse effect on the estimated future cash flows of the financial asset. Evidence proving that credit impairment occurs to a financial asset includes observable information about the following events:

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a. Significant financial difficulty of the borrower or issuer;
b. Defaults, such as delay or overdue for more than 90 days;
c. The Company has made concessions to the borrower that the Company would not consider otherwise for economic or contractual reasons related to the borrower’s financial difficulties;
d. The borrower is very likely to apply for bankruptcy or carry out other financial reorganization; or
e. The active market for the financial assets has disappeared due to financial difficulties.

The loss allowance for financial assets at amortized cost is deducted from the carrying amount of the assets. The loss allowance for investments in debt instruments at fair value through other comprehensive income are recognized in other comprehensive income (without reducing the carrying amount of the asset), and the provision or reversal amount of loss allowance is recognized in profit or loss.

When the Company does not have a reasonable expectation of recovering all or part of a financial asset, the total carrying amount of the financial asset is reduced directly. The Company analyzes the timing and amount of offset on a case-by-case basis to determine whether there is a reasonable expectation of recovery. The Company expects that the offset amount will not be reversed significantly. However, the offset financial assets are still enforceable in order to comply with the Company’s procedures for recovering overdue amounts.

(E) Derecognition of financial assets

A financial asset will be derecognized only when the Company’s contractual rights to the cash flows from that asset are terminated, or when the financial asset is transferred and substantially all the risks and returns of ownership to that asset have been transferred to another entity, or when substantially all the risks and returns of ownership are neither transferred nor retained, and the Company does not retain control over that financial asset.

If the Company enters into a transaction to transfer a financial asset and retains all or substantially all of the risks and returns of ownership to the transferred asset, the financial asset will continue to be recognized on the balance sheet.

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(8) Financial liabilities and equity instruments
A. Classification of liabilities and equity

Debt and equity instruments issued by the Company are classified as either financial liabilities or equity in accordance with the substance of the contractual arrangements and the definitions of financial liabilities and equity instruments.

B. Equity instruments

Equity instrument refers to any contract that recognizes the remaining interest of the Company after reducing all its liabilities from its assets. Equity instruments issued by the Company are recognized at the proceeds received, net of the cost of direct issue.

C. Financial liabilities

Financial liabilities that are not held for trading and are not designated as at fair value through profit or loss (including notes payable, accounts payable and other payables) are measured at fair value plus directly attributable transaction costs at initial recognition; subsequently, they are measured at amortized cost using the effective interest rate method, and interest expenses not capitalized in the asset cost are included in non-operating income and expenses.

D. Derecognition of financial liabilities

A financial liability is derecognized by the Consolidated Company when the contractual obligation is either discharged or canceled or expires.

The difference between the carrying amount of the financial liability derecognized and the total consideration paid and payable (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss, and included in non-operating income and expenses.

E. Mutual offset of financial assets and liabilities

Financial assets and financial liabilities are offset and recognized in the balance sheet on a net basis only when the Consolidated Company has the legal right to do so and has the intention to settle on a net basis or to realize the assets and settle the liabilities simultaneously.

(9) Inventories

Inventories are stated at the lower of cost or net realizable value. Inventories are stated at standard cost at ordinary times, and are adjusted to approximate weighted average cost at the end of the reporting period. Net realizable value is calculated as the estimated selling price less the costs to be incurred until completion and the selling expenses.

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(10) Investments accounted for using equity method

Investments accounted for using equity method include subsidiaries, associates and joint ventures.

Associates are companies over which the Company exercises significant influence, but not subsidiaries or joint ventures. Significant influence refers to the power to participate in the investee’s financial and operating policy decisions, but not the power to control or jointly control such policy decisions.

In joint ventures, the Company and another entity engage in economic activities under joint control through a contractual agreement, meaning that strategic financial and operating decisions related to the joint venture must be made with the consensus of those sharing control. If another entity is created under a joint venture agreement in which each of the joint venture controllers has an interest, that entity is a jointly controlled entity.

The business results and assets and liabilities of associates and joint ventures are included in the financial statements under the equity method, except for the assets classified as held for sale. Under the equity method, investments in associates and joint ventures are initially recognized at cost on the balance sheet and subsequently adjusted for changes in the Company’s share of the investee’s net assets. When the Company’s share of losses in an associate or joint venture exceeds its interest in that associate, an additional loss is recognized only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the associate.

The excess of the acquisition cost over the Company’s share of the net fair value of the identifiable assets and liabilities of the associate and the joint venture at the date of acquisition is recognized as goodwill and is included in the carrying amount of the investment. The excess of the Company’s share of the net fair value of the identifiable assets and liabilities of its associates and joint ventures over the acquisition cost at the date of acquisition is recognized as a gain immediately upon reassessment.

In assessing impairment, the Company considers the entire carrying amount of the investment (including goodwill) as a single asset and compares the recoverable amount (higher of value in use or fair value less selling cost) with the carrying amount to test for impairment, and the impairment loss recognized is included in the carrying amount of the investment. Any reversal of the impairment loss is recognized to the extent of the subsequent increase in the recoverable amount of the investment.

If the Company fails to subscribe for new shares issued by an associate or a joint venture in proportion to its shareholding ratio, resulting in a change in shareholding ratio and a consequent increase or decrease in the net equity value of an investment, the increase or decrease is adjusted to capital surplus and investments accounted for using the equity method. However, if the ownership interest in an associate decreases because the

23 -

Company does not subscribe for or acquire new shares in proportion to its shareholding ratio, the amount recognized in other comprehensive income related to the associate is reclassified on a pro rata basis to reflect the decrease in ownership interest, which is accounted for on the same basis as that used for the disposal of assets or liabilities by the associate directly.

(11) Property, plant and equipment

Property, plant and equipment are recognized at acquisition cost and presented at cost less accumulated depreciation and accumulated impairment. The cost of property, plant and equipment consists of expenditures that are directly attributable to the acquisition or construction of the assets, any other directly attributable costs that are necessary to bring the asset to a useable condition for its intended purpose, and dismantling, relocation and site restoration costs. The foregoing costs include the cost for replacing part of the plant and equipment and the necessary interest expense incurred on construction contracts.

Real estate under construction is presented at cost less all recognized impairment losses. (Cost includes professional service expenses). Such real estate is classified to the appropriate category of property, plant and equipment when completed and reaching the expected use state. Such assets are depreciated on the same basis as other real estate assets, which commences when the assets reach the expected use state.

Self-owned land is not depreciated.

When a major item of property, plant and equipment is required to be replaced on a regular basis, the Company considers that item as an individual asset and recognizes depreciation according to specified useful life and depreciation method. Major maintenance costs are considered as replacement costs and recognized as part of the carrying amount of property, plant and equipment if the conditions for recognition are met. Other maintenance expenses are recognized in profit or loss. The present value of the expected decommissioning cost of an asset after use is included in the cost of the related asset if it meets the recognition criteria for liability reserve.

Each part of property, plant and equipment is depreciated separately and considered as a separate item (significant component) of property, plant and equipment if its cost is material in relation to the total cost of that item.

After initial recognition, an item or a significant component of property, plant and equipment is derecognized and recognized in profit or loss if it is disposed of or if no future economic benefits are expected to flow from its use or disposal. Depreciation is calculated recognized in profit or loss over the estimated useful lives of individual components of property, plant and equipment on a straight-line basis because it best reflects the expected consumption pattern of future economic effects of the assets.

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Depreciation is calculated according to the following estimated useful lives:

Property and building	5 - 51 years
Machinery equipment	2 - 16 years
Molding equipment	2 - 3 years
Transportation equipment	2 - 6 years
Computer and telecommunication equipment	4 - 6 years
Business equipment	2 - 7 years
Leasehold improvements	5 years
Tooling equipment	4 - 5 years
Other equipment	2 - 11 years

Depreciation is calculated using the straight-line method to write off the cost of assets less their residual values over their useful lives. Estimated useful lives, residual values and depreciation methods are reviewed at the end of each reporting period, and the impact of any changes in estimates is recognized on a deferred basis.

Items of property, plant and equipment are derecognized when they are disposed of or when no future economic benefits are expected from the continued use of the asset. Gains or losses arising from the disposal or scrapping of property, plant and equipment are recognized in profit or loss as the difference between the disposal price and the carrying amount of the asset.

(12) Leases

A. Lease judgment

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

B. The Company as lessee

The Company recognizes right-of-use assets and lease liabilities at the inception date of the lease. Right-of-use assets are measured initially at cost, which consists of the initially measured amount of the lease liability, adjusted for any lease payments made on or before the inception date of the lease, plus original direct costs incurred and the estimated costs to dismantle or remove the underlying asset and reinstate the underlying asset or its original location, less any lease incentives received.

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The right-of-use assets are subsequently depreciated on a straight-line basis from the lease commencement date to the earlier of the end of the asset’s useful life or the end of the lease term. In addition, the Company periodically evaluates right-of-use assets for impairment and handles any incurred impairment losses, and adjusts right-of-use assets in case of remeasurement of lease liabilities.

Lease liabilities are measured initially at the present value of outstanding lease payments at the inception date of the lease. The implicit interest rate of the lease is easy to determine, the discount rate is that interest rate, otherwise the Company’s incremental borrowing rate is used. Generally, the Company uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of lease liabilities consist of:

(A) Fixed payments, including substantial fixed payments;
(B) Variable lease payments that depend on an index or a rate are initially measured using the index or rate at the inception date of the lease.

Subsequently, the interests on lease liabilities are calculated using the effective interest method, and the lease liabilities are remeasured when the following circumstances occur:

(A) A change in the index or rate used to determine lease payments results in a change in future lease payments;
(B) A change in the estimate of whether to exercise the option to extend or terminate the lease, which changes the assessment of the lease term;
(C) Changes in the amount of residual value guarantee expected to be paid;
(D) Changes in the evaluation of purchase options for the underlying assets;
(E) Changes in the subject matter, scope or other terms of the lease.

When a lease liability is remeasured as a result of changes in the index or rate used to determine the lease payments, changes in the amount of residual value guarantee, and changes in the evaluation of purchase, extension or termination options, the carrying amount of the right-of-use asset is adjusted accordingly, and the remaining amount of the remeasurement is recognized in profit or loss when the carrying amount of the right-of-use asset is reduced to zero.

For lease modifications that reduce the scope of the lease, the carrying amount of the right-of-use asset is reduced to reflect the partial or full termination of the lease, and its difference from the remeasurement amount of the lease liability is recognized in profit or loss.

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The Company presents right-of-use assets and lease liabilities that do not meet the definition of investment property as separate line items on the balance sheet.

For short-term leases of business equipment and other equipment and leases of low-value assets, the Company chooses not to recognize right-of-use assets and lease liabilities, and but recognizes the related lease payments as expenses on a straight-line basis over the lease term.

For sale and leaseback transactions, whether the transfer of an asset to a buyer-lessor satisfies the requirements for sale is evaluated in accordance with IFRS 15. If it is determined that the asset is sold, such asset is derecognized and the portion of the right transferred to the buyer-lessor is recognized in profit or loss. Leaseback transactions are accounted for as lessee transactions, and the right-of-use asset is measured at the original amount of the portion of the asset leased back. If the requirements for sale are not met, the transferred asset is further recognized and the consideration received is recognized as a financial liability.

C. The Company as lessor

Lease agreements in which the Company is the lessor are classified as a finance lease if substantially all the risks and returns of ownership to the underlying asset have been transferred or an operating lease otherwise at the inception date of the lease. In the evaluation, the Company considers relevant specific indicators, including whether the lease term covers a significant portion of the economic life of the underlying asset.

If the Company is a sub-lessor, the Company shall handle the transactions of primary lease and sublease separately and evaluate the classification of the sublease transaction based on the right of use derived from the primary lease. If the primary lease is a short-term lease and a recognition exemption is applied, the sublease transaction shall be classified as an operating lease.

(13) Intangible assets

The Company acquired intangible assets with finite useful lives are shown at cost less accumulated amortization and accumulated impairment losses.

Amortization amount is calculated on a straight-line basis over the following useful lives:

Computer software Economic benefits or contract term Estimated useful life and amortization method are reviewed at the end of the reporting period, and the impact of any changes in estimates is deferred.

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(14) Impairment of non-financial assets

The Company evaluates at each reporting date whether there is any indication showing that the carrying amount of non-financial assets (other than inventories, contract assets, and deferred tax assets) may be impaired. If any indication exists, the recoverable amount of the asset shall be estimated.

For the purpose of impairment test, a group of assets of which a significant portion of the cash inflows are independent of other individual assets or the cash inflow of an asset group is identified as the smallest identifiable asset group. Goodwill acquired from business merger is allocated to each cash generating unit or group of cash generating units that is expected to benefit from the merger synergies.

The recoverable amount is the higher of the fair value of an asset or cash generating unit less the disposal cost and its value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or cash generating unit.

An impairment loss is recognized if the recoverable amount of an asset or cash generating unit is less than its carrying amount.

An impairment loss is recognized immediately in profit or loss. The carrying amount of amortized goodwill of a cash generating unit is reduced first, and then the carrying amount of that asset is reduced in proportion to the carrying amount of other assets in the unit.

Impairment losses on goodwill are not reversed. Non-financial asset other than goodwill is reversed only to the extent that the carrying amount (net of depreciation or amortization) of the asset does not exceed the carrying amount that would have been determined if no impairment loss had been recognized for the asset in previous years.

(15) Provisions

The provision for liabilities is recognized when there is a present obligation arising from past events, it is likely that an outflow of economic resources will be required to settle the obligation, and the amount of the obligation can be reliably estimated.

The amount recognized as a provision for liabilities is the best estimate of the expenses that will be required to settle the obligation at the end of the reporting period, taking into account the risks and uncertainties of the obligation. If the provision for liabilities is measured at the estimated cash flows to settle the present obligation, the carrying amount is the present value of such cash flows.

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(16) Revenue recognition

Revenue is measured at the consideration expected to be received for the goods or services transferred. The Company recognizes the revenue when control over goods or services is transferred to the customer to satisfy performance obligations.

A. Sales of goods

The Company recognizes the revenue when control of the product is transferred to the customer. The control over a product is transferred when the product is delivered to the customer, the customer has complete control over the product’s distribution channels and price, and there are no outstanding obligations that would affect the customer’s acceptance of the product. Delivery occurs when the product is shipped to a specific location and the risks of obsolescence and loss are transferred to the customer. The customer has accepted the product under a sales contract, the terms of acceptance have expired, or the Company has objective evidence showing that all conditions of acceptance have been met.

The Company recognizes accounts receivable upon delivery of goods because the Company has an unconditional right to receive consideration at that time.

B. Financial components

The Company does not adjust the time value of money of the transaction price because it expects the time interval between the transfer of goods or services to the customer and the time the customer pays for those goods or services to be less than one year for all customer contracts.

(17) Government grants

Government grants are recognized only when the conditions attached to the grant are met and the grant is expected to be received.

(18) Employee benefits

A. Defined contribution plans

Contribution obligations to defined contribution pension plans are recognized as expenses over the employees’ service provision period. Prepaid contributions are recognized as an asset to the extent that they result in a cash refund or a reduction in the future payments.

B. Defined benefit plan

The Company’s net obligation for defined benefit plans is calculated by discounting the present value of future benefit amounts earned by employees for current or prior periods of service, less the fair value of plan assets.

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The defined benefit obligation is actuarially calculated annually by a qualified actuary using the projected unit benefit method. When the calculation results are probable to be favorable to the Company, the assets are recognized to the extent of the present value of any economic benefits that may be obtained in the form of refunds of contributions from the plan or reductions in future contributions to the plan. The present value of economic benefits is calculated taking into account any minimum contribution requirements.

The remeasurement of the net defined benefit liabilities, including actuarial gains and losses, the return on plan assets (excluding interest), and any changes in the impact of the asset ceiling (excluding interest) are recognized immediately in other comprehensive income and accumulated in retained earnings. The Company determines that net interest expense (income) on the net defined benefit liability (asset) uses the net defined benefit liability (asset) and discount rate determined at the beginning of the annual reporting period. Net interest expense and other expenses of the defined benefit plan are recognized in profit or loss.

Changes in benefits related to prior service costs or reduced benefits or losses resulting from plan revisions or reductions are recognized immediately in profit or loss. The Company recognizes gains or losses on settlement of a defined benefit plan when the settlement occurs.

C. Short-term employee benefits

Short-term employee benefit obligations are recognized as expenses when services are rendered. If the Company has a present legal or constructive obligation to pay as a result of past service rendered by employees, and the obligation can be estimated reliably, the amount is recognized as a liability.

(19) Borrowing costs

Borrowing costs directly attributable to the acquisition of an asset are included as part of the cost of that asset until substantially all activities necessary to bring the asset to its intended use or sale state have been completed.

Except for the above, all other borrowing costs are recognized as profit or loss in the year in which they are incurred.

(20) Income tax

The income tax for the period comprises current and deferred tax.

Current income taxes include income taxes payable or tax refunds receivable based on the taxable income (loss) in current year, and any adjustments to income taxes payable or tax refunds receivable in previous years. The amount is the best estimate of the amount

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expected to be paid or received, as measured by the statutory tax rate or the tax rate under substantive legislation at the reporting date.

Deferred income taxes are measured and recognized for temporary differences between the carrying amounts of assets and liabilities at the date of financial reporting and their tax bases. Unused tax losses and unused tax credits in later periods of transfer, and deductible temporary differences are recognized as deferred tax assets to the extent that it is very likely that future taxable income will be available. They shall also be reassessed at each reporting date and reduced to the extent that the relevant income tax benefit is not within the scope very likely to be realized; or the originally reduced amount shall be reversed to the extent that it is very likely to generate sufficient taxable income.

Deferred tax assets and deferred tax liabilities are offset only if the following conditions are met simultaneously:

A. There is a legally enforceable right to offset current tax assets against current tax liabilities; and
B. The deferred tax assets and liabilities are related to one of the following taxpayers that are subject to the income tax levied by the same taxation authority:
(A) The same taxpayer; or
(B) Different taxpayers, provided that each taxpayer intends to settle current income tax liabilities and assets on a net basis, or to realize assets and settle liabilities simultaneously in each future period in which significant amounts of deferred income tax assets are expected to be recovered and deferred income tax liabilities are expected to be settled.

(21) Earnings per share

The Company presents basic and diluted earnings per share attributable to equity holders of the Company’s common shares. Basic earnings per share is calculated by dividing the profit or loss attributable to the equity holders of the Company’s common shares by the weighted average number of outstanding common shares in current period. Diluted earnings per share is calculated by dividing the profit or loss attributable to the equity holders of the Company’s common shares by the weighted average number of outstanding common shares, adjusted for the impact of all potential diluted common shares.

(22) Segment Information

Information on segments has been disclosed by the Company in the consolidated financial statements, thus will not be disclosed in the parent company only financial statements

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5. Significant Accounting Judgment, Estimates, and Assumptions and the Main Sources of Assumption Uncertainty

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

The Company includes the economic impacts of COVID-19, Ukraine-Russia conflict and inflation into considerations for significant accounting estimates. The Management will continuously review estimates and underlying assumptions, and recognize changes in accounting estimates in the period when the changes occur and in the future periods affected.

Management is required to make judgments, estimates and assumptions when preparing the parent company only financial statements. They will affect the adoption of accounting policies and the reported amounts of assets, liabilities, revenues and expenses. Actual results may differ from estimates.

Information about uncertainties in assumptions and estimates that have a significant risk of causing a material adjustment in the next year is summarized below. The uncertainties in the following assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities in the next financial year and have reflected the impact of the COVID-19 pandemic. The relevant information is summarized below:

(1) Loss allowance for accounts receivable

The loss allowance for accounts receivable is estimated based on the assumptions of default risk and expected loss rate. The Company considers historical experience, current market conditions and forward-looking estimates at each reporting date to determine the assumptions and inputs to be used in the impairment calculation. For details of the relevant assumptions and inputs, please refer to Note 6(4).

(2) Evaluation of inventories

Since inventories are measured at the lower of cost or net realizable value, the Company evaluates the amounts of normal inventory consumption, obsolete inventories or inventories without market selling value on reporting date, and writes down the cost of inventories to the net realizable value. Such an evaluation of inventories is principally based on the demand for the products within the specified period in the future. Therefore, there might be material changes due to rapid changes in the industry.

(3) Impairment evaluation of investments accounted for using equity method

When there is an indication that an investment by equity method has impaired and the carrying amount may not be recovered, the Company will evaluate such impairment

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immediately. The Company evaluates the impairment loss based on the investee’s future cash flow projections, including the sales growth rate and capacity utilization rate estimated by the investee’s internal management, and analyzes the reasonableness of the related assumptions.

(4) Impairment evaluation of tangible assets and intangible assets (excluding goodwill)

During the asset impairment evaluation process, the Company relies on its subjective judgment, use mode of assets and characteristics of the industry, to determine the independent cash flows of a particular asset group, useful life of the assets and the likely future income and loss, and any change in estimates due to changes in economic conditions or the Company’s strategy may cause significant impairment or reversal of a recognized impairment loss in the future.

(5) Recognition and measurement of provision for liabilities

Provisions for product warranty liabilities are estimated at the time of revenue recognition and are based on the number of products under warranty, the history of the products, the expected maintenance rate and the expected unit maintenance cost. The Company continuously reviews the basis of these estimates and revises them when appropriate. Any change in the above estimate basis could materially affect the estimation of the provision for product warranty liabilities.

(6) Realizability of deferred tax assets

Deferred tax assets are recognized only when it is probable that there will be sufficient taxable income for deductible temporary differences to be used in the future. Assessing the realizability of deferred tax assets must involve significant accounting judgments and estimates by the management, including assumptions about expected future sales revenue growth and profit margins, tax holiday periods, available income tax credits, and tax planning, etc. Any changes in the global economic environment, industrial environment and laws may cause significant adjustments to deferred tax assets.

(7) Measurement of defined benefit obligation

The defined benefit cost and net defined benefit liabilities (assets) to be recognized for the defined benefit pension plan are actuarially valued using the projected unit benefit method. The actuarial assumptions adopted include discount rate, employee turnover rate, and increment rate of future salary. Such assumptions could materially affect the amounts of expenses and liabilities recognized if they change as a result of changes in market and economic conditions. For the significant actuarial assumptions used in the actuarial calculations and the sensitivity analysis, please refer to Note 6(17).

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6. Summary of Significant Accounting Titles

(1) Cash and cash equivalents

Cash and cash equivalents
Cash Bank deposits Financial assets at FVTPL Current items: Mandatorilymeasured at FVTPL Domestic listed (OTC) stocks Adjustments Non-current items: Mandatorilymeasured at FVTPL Overseas non-listed (non-OTC) stocks Adjustments	December 31,2024 $ 2,218 482,003 $ 484,221 December 31,2024 $ 443,510 533,029 $ 976,539 December 31,2024 $ 27 (27) $ -	December 31,2023
		$ 2,537 615,664
		$ 618,201
		December 31,2023
		$ 417,099 119,830
		$ 536,929
		December 31,2023
		$ 27 (27)
		-

(2) Financial assets at FVTPL
A. Profits (losses) recognized in relation to the financial assets at fair value through profit or loss are listed below:

profit or loss are listed below:
Financial assets mandatorily		2024		2023
measured at FVTPL
Profits (losses) on valuation	$	413,198	$	123,694
Gain on disposal	$	977	$	2,841
Dividend revenue	$	23,155	$	23,144

B. The Company has no financial assets at fair value through profit or loss pledged to others.
C. The above equity instruments of the Company are held for trading and are therefore measured at fair value through profit or loss.
D. Please refer to Note 12 for relevant credit risk management and assessment methods.
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E. The Company invested in AUTECH EUROPE, a French agency, at an amount of FRF 5,000 (equaling to NTD 27 thousand) in 1990, and the total capital amount of AUTECH EUROPE was FRF 100,000. In 1996, due to value impairment and little hope of recovery of the investee companies, all were recognized as losses.
(3) Financial assets at FVOCI - non-current

Financial assets at FVOCI - non-current
Financial assets at FVTOCI Domestic listed (OTC) stocks Adjustments	December 31,2024 $ 532 (156) $ 376	December 31,2023
		$ 5,372 (3,381)
		$ 1,991

A. Amounts recognized in profit or loss in relation to the financial assets at fair value through other comprehensive income are listed below:

Equity instruments at fair value

Equity instruments at fair value
through other comprehensive income Changes in fair value recognized in other comprehensive income Accumulated gains (losses) transferred to retained earnings due to derecognition Dividend revenue	December 31,2024 $ 3,122	December 31,2023
		$ (1,486)
	$ (103) $ -	$ (9,038)
		$ 164

B. The Company holds the above equity instruments as long-term strategic investments and therefore designates these investments as at fair value through other comprehensive income.
C. The Company disposed of equity investments at fair values of NTD 4,777 thousand and NTD 7,012 thousand in 2024 and 2023, respectively, and the accumulated losses and gains on disposal were NTD (103) thousand and NTD (9,038) thousand, respectively. The above accumulated disposal losses and gains have been transferred to the retained earnings from other equities.
D. The Company has no financial assets at fair value through other comprehensive income pledged to others.
E. Please refer to Note 12 for relevant credit risk management and assessment methods.
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(4) Financial assets measured at amortized cost

	December	31,2024	December	31,2023
Pledged time deposits	$	10,200	$	10,137
Non-current	$	10,200	$	10,137

A. The financial assets measured at amortized cost are performance guarantees in the pledge provided by the Company to rent the land of Central Taiwan Science Park in Xitun District.

B. Please refer to Note 8 for the guarantees provided.
(5) Notes and accounts receivable

Notes and accounts receivable
Notes receivable Less: Loss allowance Net Account receivables Less: Loss allowance Net	December 31,2024 $ 50,908 (900) $ 50,008 December 31,2024 $ 170,492 (4,152) $ 166,340	December 31,2023
		$ 58,176 (7,058)
		$ 51,118
		December 31,2023
		$ 305,555 (965)
		$ 304,590

The average credit period for merchandise sales ranges from 30 to 90 days for monthly statement, and accounts receivable are non-interest-bearing.

The loss allowance for accounts receivable of the Company is recognized by simplified method under IFRS 9 according to lifetime expected credit losses. The lifetime expected credit loss is calculated using provision matrix and takes past breach records of the customer, the current financial condition and industrial economic trend. Since the Company’s historical experience of credit losses shows that there is no significant difference in the pattern of losses among different customer groups, therefore, the reserve matrix does not further distinguish between the customer groups, but only determines the expected credit loss rate based on the number of days overdue on accounts receivable.

If any evidence shows the counterparty faces significant financial difficulty and the collectible amount cannot be reasonably expected, the Company will directly offset the relevant accounts receivable but keep track of the receivables. The recovered amount is recognized in profit or loss.

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The Company measures the loss allowance of note and accounts receivable according to the provision matrix as follows:

	December 31,2024
Total carrying amount $ 194,676 13,454 834 6,076 6,360 $ 221,400	Loss allowance (lifetime expected credit losses) $ (1,223) (160) (18) (1,677) (1,974) $ (5,052) December 31,2023	Amortized cost
		$ 193,453 13,294 816 4,399 4,386 $ 216,348

Total carrying amount $ 345,791 5,677 4,033 8,145 85 $ 363,731	Loss allowance (lifetime expected credit losses) $ (7,537) (61) (121) (249) (55) $ (8,023)	Amortized cost
		$ 338,254 5,616 3,912 7,896 30
		$ 355,708

The expected credit loss ratios of the Company for each of the above sections (excluding unusual items for which 100% of the total amount has been presented) were 1% or less for not past due and 90 days or less past due; 5% or less for 365 days or less past due; and 5% for more than 365 days past due.

The changes in the Company’s loss allowance of notes and accounts receivable are as follows:

ollows:
Opening balance Presentation (reversal) in the current period Write-offs in the current period Ending balance	2024 $ 8,023 (2,971) - $ 5,052	2023
		$ 6,426 1,686 (89)
		$ 8,023

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(6) Inventories

Inventories
	December 31, 2024		December 31, 2023
Products	$	7,597	$	4,655
Raw materials		145,233		197,963
Work in process		800,209		747,642
Finished goods		103,617		58,755
	$	1,056,656	$	1,009,015

A. Inventory-related expenses recognized in the current period

Cost of goods sold Loss on market value decline and obsolete and slow-moving inventories Inventory obsolescence Inventory loss Income from sale of scraps Idle capacity related costs	2024 $ 1,073,537 (15,228) 3,826 1,456 (617) 45,152 $ 1,108,126	2023
		$ 1,248,114 41,018 3,382 3,346 (396) 36,100
		$ 1,331,564

B. As of December 31, 2024 and 2023, there were no guarantees or pledges on inventories.
(7) Investments accounted for using equity method

	December 31, 2024	December 31, 2024	December	31, 2023
Subsidiaries	$	873,002	$	835,556
Associates		145,031		116,713
	$	1,018,033	$	952,269

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A. Invested subsidiaries

The Company’s subsidiaries are listed below:

Main business	Place of establishment and operation	Carrying amount	Carrying amount	Percentage of ownership interest and voting rights held by the Company	Percentage of ownership interest and voting rights held by the Company
		December 31, 2024	December 31, 2023 $ 694,302 141,254 $ 835,556	December 31, 2024	December 31, 2023
Foreign investment and international trade Manufacture and sale of machinery, equipment and tools	Cayman Islands Taiwan	$ 737,335 135,667		100.00% 60.00%	100.00% 60.00%
		$ 873,002

(A) On August 8, 2002, the Board of Directors resolved to invest US$1,700 thousand in B-Way (Cayman) Co., Ltd. and indirectly invested in Dawei Mechantronic (Suzhou) Co., Ltd. and Shanghai Zhuwai Mechanical and Electrical Co., Ltd. through B-Way (Cayman) Co., Ltd. to engage in the sales and installation of parts and accessories of tool machines, mechanical instruments and international trade business.
(B) On May 4, 2007, the Board of Directors resolved to invest US$8,000 thousand in B-Way (Cayman) Co., Ltd. and indirectly invested in Awea Mechantronic (Suzhou) Ltd. through B-Way (Cayman) Co., Ltd. to engage in the sales and installation of parts and accessories of tool machines, mechanical instruments and international trade business.
(C) On September 23, 2013, the Board of Directors resolved to invest NTD 192,570 thousand in Yih Chuan Machinery Industry Co., Ltd., and further invested NTD 72,022 thousand on September 8, 2015. As of December 31, 2021, the Company held 60% of its stock options. It is engaged in the manufacture, processing and trading of various kinds of machine tools, the manufacture, processing and trading of various kinds of machine parts, and the casting of various kinds of machine parts.
(D) On August 2, 2018, the Board of Directors resolved to merge Dawei Mechantronic (Suzhou) Co., Ltd. into Awea Mechantronic (Suzhou) Ltd., and the merger was completed on September 8, 2020.
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(E) The Company’s share of profit or loss and other comprehensive income in its subsidiaries using equity method in 2024 and 2023 are recognized in accordance with the subsidiaries’ financial statements audited by CPAs over the same period.
B. Invested associates

The Company’s associates are listed below:

Investee company	Place of establishment and operation	Carrying amount	Carrying amount	Percentage of ownership interest and voting rights held by the Company	Percentage of ownership interest and voting rights held by the Company
		December 31, 2024	December 31, 2023 $ 108,435 8,278 $ 116,713	December 31, 2024	December 31, 2023
YAMA SEIKI USA,INC. Huahan Leasing Co., Ltd.	USA Taiwan	$ 126,784 18,247		28.58% 30.00%	28.58% 13.33%
		$ 145,031

(A) On December 23, 2010, the Company’s Board of Directors resolved to invest US$1,700 thousand in YAMA SEIKI USA, INC. to engage in the sales and installation of parts and accessories of tool machines, mechanical instruments and international trade business.
(B) In August 2021 and June 2024, the Company respectively resolved to invest NTD 7,333 thousand and NTD 10,350 thousand in Huahan Leasing Co., Ltd. to engage in the machinery and equipment leasing business.
(C) The Company’s share of profit or loss and other comprehensive income in its associates and joint ventures using the equity method in 2024 and 2023, including YAMA SEIKI USA,INC., was recognized in accordance with the associates’ financial statements audited by CPAs over the same period.
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(8) Property, plant and equipment

Property, plant and equipment
Self-owned land Property and building Machinery equipment Molding equipment Transportation equipment Computer and telecommunication equipment Business equipment Machining equipment Other equipment Unfinished construction and equipments pending acceptance	December 31, 2024 $ 536,761 676,852 56,368 4,221 5,260 4,023 1,297 1,815 1,699 205,084 $ 1,493,380	December 31, 2023
		$ 536,761 708,016 68,815 6,130 8,395 4,776 4,050 - 1,871 39,865
		$ 1,378,679

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Cost Self-owned land Property and building Machinery equipment Molding equipment Transportation equipment Computer and telecommunication equipment Business equipment Leasehold improvements Tooling equipment Other equipment Unfinished construction and equipments pending acceptance Accumulated depreciation Property and building Machinery equipment Molding equipment Transportation equipment Computer and telecommunication equipment Business equipment Leasehold improvements Tooling equipment Other equipment Net	January 1, 2024 $ 536,761 1,162,521 227,781 53,976 54,927 11,298 20,223 749 - 24,057 39,865 $ 2,132,158 January 1, 2024 $ 454,505 158,966 47,846 46,532 6,522 16,173 749 - 22,186 $ 753,479 $ 1,378,679	Additions $ - 2,314 8,268 1,639 82 1,030 - - 2,185 1,176 165,219 $ 181,913 Depreciation $ 33,478 11,610 3,548 3,217 1,783 2,753 - 370 1,348 $ 58,107	Disposals $ - - (17,091) - - - - (749) - (65) - $ (17,905) Disposals $ - (7,986) - - - - (749) - (65) $ (8,800)	Reclassification $ - - - - - - - - - - - $ - Reclassification $ - - - - - - - - - $ -	December 31, 2024
					$ 536,761 1,164,835 218,958 55,615 55,009 12,328 20,223 - 2,185 25,168 205,084
					$ 2,296,166
					December 31, 2024
					$ 487,983 162,590 51,394 49,749 8,305 18,926 - 370 23,469
					$ 802,786
					$ 1,493,380

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Cost Self-owned land Property and building Machinery equipment Molding equipment Transportation equipment Computer and telecommunication equipment Business equipment Leasehold improvements Other equipment Unfinished construction and equipments pending acceptance Accumulated depreciation Property and building Machinery equipment Molding equipment Transportation equipment Computer and telecommunication equipment Business equipment Leasehold improvements Other equipment Net	January 1, 2023 $ 536,761 1,162,434 221,368 50,371 56,637 11,322 18,812 749 24,057 8,406 $ 2,090,917 January 1, 2023 $ 420,991 146,768 44,973 44,368 4,795 12,824 749 20,048 $ 695,516 $ 1,395,401	Additions $ - 87 6,413 3,605 233 - 1,411 - - 31,459 $ 43,208 Depreciation $ 33,514 12,198 2,873 4,107 1,751 3,349 - 2,138 $ 59,930	Disposals $ - - - - (1,943) (24) - - - - $ (1,967) Disposals $ - - - (1,943) (24) - - - $ (1,967)	Reclassification $ - - - - - - - - - - $ - Reclassification $ - - - - - - - - $ -	December 31, 2023 $ 536,761 1,162,521 227,781 53,976 54,927 11,298 20,223 749 24,057 39,865 $ 2,132,158 December 31, 2023
					$ 454,505 158,966 47,846 46,532 6,522 16,173 749 22,186
					$ 753,479
					$ 1,378,679

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A. For properties, plants and equipment provided by the Company as the guarantee for borrowings, please refer to Note 8 for details.
B. The land accounted for by the Company as at December 31, 2024 and 2023 was partly agricultural land with title temporarily registered in the name of another person for an amount of NTD 88,529 thousand, in respect of which the Company has obtained a certificate of creation of other rights.
C. The relevant information on interest capitalization is as follows:

							2024	2024			2023
			Capitalized amount				$	2,043		$		-
			Capitalized interest rate				1.158%~2.165%					-
	(9)	Lease arrangements
		A.	Right-of-use assets
							December	31,	2024	December 31,2023
			Land-use right				$	164,392		$		-
			Property and building						139			910
							$	164,531		$		910
			January 1, 2024		Additions		Disposals		Others		December	31, 2024
Cost
Land-use		right	$ 49,451	$	173,044	$	(49,451)	$		-	$	173,044
Property and building 4,244					-		(3,711)			-		533
			$ 53,695	$	173,044	$	(53,162)	$		-	$	173,577
			January 1, 2024		Depreciation		Disposals		Others		December	31, 2024
Accumulated
depreciation
Land-use		right	$ 49,451	$	8,652	$	(49,451)	$		-	$	8,652
Property and building 3,334					511		(3,451)			-		394
			$ 52,785	$	9,163	$	(52,902)	$		-	$	9,046
Net			$ 910								$	164,531

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Cost Land-use right Property and building Accumulated depreciation Land-use right Property and building Net	January 1, 2023 $ 49,451 4,393 $ 53,844 January 1, 2023 $ 39,407 2,161 $ 41,568 $ 12,276	Additions $ - - $ - Depreciation $ 10,044 1,322 $ 11,366	Disposals $ - (149) $ (149) Disposals $ - (149) $ (149)	Others $ - - $ - Others $ - - $ -	December 31, 2023
					$ 49,451 4,244
					$ 53,695
					December 31, 2023
					$ 49,451 3,334
					$ 52,785
					$ 910

B. Lease liabilities

Lease liabilities
Current Non-current	December 31,2024 $ 7,536 158,305 $ 165,841	December 31,2023
		$ 638 280
		$ 918

C. Important renting activities and terms

The Company leases some lands, plants and offices for periods ranging from 3 to 20 years. Upon termination of the leases, the Company does not have a preemptive right to acquire the leased assets.

D. Other lease information

to acquire the leased assets. Other lease information
Short-term lease and lease expenses of low-value assets Total cash outflow from leases	2024 $ 2,888 $ 13,585	2023
		$ 3,210
		$ 11,420

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(10) Intangible assets

					December	December	31,2024	December	December	31,2023
	Computer software				$		4,542	$		5,813
Cost	January 1, 2024		Additions		Disposals		Reclassification		December 31, 2024
Computer software $ 16,952		$	650	$		-	$	-	$	17,602
Accumulated depreciation January 1, 2024		Amortization in currentperiod			Disposals		Reclassification		December 31, 2024
Computer software $ 11,139		$	1,921	$		-	$	-	$	13,060
Net	$ 5,813								$	4,542
Cost	January 1, 2023		Additions		Disposals		Reclassification		December 31, 2023
Computer software $ 16,556		$	760	$		(364)	$	-	$	16,952
Accumulated depreciation January 1, 2023		Amortization in currentperiod			Disposals		Reclassification		December 31, 2023
Computer software $ 9,762		$	1,741	$		(364)	$	-	$	11,139
Net	$ 6,794								$	5,813
(11) Net overdue receivables
					December		31,2024	December		31,2023
	Overdue receivables				$		6,149	$		860
	Less: allowance for uncollectible
	accounts						(6,149)			(860)
					$		-	$		-
(12) Other financial assets - current
					December		31,2024	December		31,2023
	Special funds for repatriation of
	overseas funds				$		207,199	$		343,987
	Restricted assets - bank	deposits					19,650			-
	Temporary debits						1,461			434
					$		228,310	$		344,421

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Regarding the special funds to be repatriated upon approval of the National Taxation Bureau, Ministry of Finance in accordance with the “Regulations of Repatriated Offshore Funds”, the Group intends to submit an investment plan to the Ministry of Economic Affairs within one year from the date on which the funds are deposited in a special account for foreign exchange deposits in accordance with Article 8 of the Regulations. Pursuant to the Regulations, the said plan was approved by the Ministry of Economic Affairs through the approval document No. 11020433960 on September 23, 2021.

(13) Short-term borrowings

hort-term borrowings
Secured loans Credit loans Interest rate	December 31,2024 $ 265,000 1,300,000 $ 1,565,000 1.8050% - 2.0050%	December 31,2023
		$ 265,000 1,200,000
		$ 1,465,000
		1.6800% - 1.7500%

Please refer to Note 8 for the guarantees provided.

(14) Short-term notes and bills payable

hort-term notes and bills payable
Short-term notes and bills payable Less: Discount on short-term notes and bills payable Interest rate Other payables Other expenses payable Employee compensation payable Remuneration payable to directors and supervisors Dividends payable Construction and equipment payable	December 31,2024 $ 80,000 (8) $ 79,992 1.8300% December 31, 2024 $ 55,931 16,000 2,750 486 152 $ 75,319	December 31,2023
		$ 80,000 (13)
		$ 79,987
		1.4500%
		December 31, 2023
		$ 67,499 16,000 2,750 491 212
		$ 86,952

(15) Other payables

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(16) Current provisions

6) Current provisions
Warranty Employee benefits Litigation liabilities January 1, 2024 Warranty $ 3,836 Employee benefits 7,196 Lawsuit compensation - $ 11,032 January 1, 2023 Warranty $ 5,272 Employee benefits 5,783 $ 11,055	December 31,2024 December 31,2023 $ 2,161 $ 3,836 6,301 7,196 1,956 - $ 10,418 $ 11,032 New in current period Reversal in currentperiod December 31, 2024 $ - $ (1,675) $ 2,161 - (895) 6,301 1,956 - 1,956 $ 1,956 $ (2,570) $ 10,418 New in current period Reversal in current period December 31, 2023 $ - $ (1,436) $ 3,836 1,413 - 7,196 $ 1,413 $ (1,436) $ 11,032	December 31,2023
		$	3,836 7,196 -
		$	11,032
			December 31, 2024
			$ 2,161 6,301 1,956
			$ 10,418
			December 31, 2023
			$ 3,836 7,196
			$ 11,032

A. Warranty

Warranty provision for liabilities refers to that as agreed in the sales contract of products, the management of the Company makes optimal estimate based on historical experience of the products.

B. Employee benefits

Provisions for employee benefit liabilities are recognized as a liability if the Company has a present legal or constructive obligation to pay as a result of past service rendered by employees, and the obligation can be estimated reliably.

C. Litigation liabilities

The litigation liabilities pertain to case No. 41205 of the 2024 Annual Investigation of the Taiwan Taichung District Prosecutors Office. The Company does not involve relevant criminal liability. However, it has obtained illegal gains of approximately NTD 1,955,916, which may be confiscated by the court and require repayment.

48 -

(17) Employee benefits

A. Defined benefit plan

The Company’s employee retirement plan under the “Labor Standards Act” is a defined benefit plan. Under the plan, the employee’s pension is calculated based on the number of years of service and the average salary of the six months before retirement. The Company contributes monthly an amount equal to 2% of the employees’ gross salaries to the Labor Pension Fund Supervisory Committee and deposits the funds in the name of the Committee in a special account at the Bank of Taiwan. The Funds are operated and managed by the government’s designated authorities. Accordingly, the Company does not have any right to intervene in the investments of the Funds.

The actuarial valuations of the present value of the defined benefit obligation of the Company are carried out by qualified actuaries. The major assumptions used in the actuarial valuation on the measurement date are listed below:

(A) Actuarial assumptions on the reporting date:

Discount rate Expected salary adjustment rate	December 31,2024 1.600% 2.500%	December 31,2023
		1.300% 2.500%

(B) The amounts of pension expenses recognized in the parent company only statements of comprehensive income in respect of defined benefit plan are shown below:

shown below:
Current service cost Interest cost on defined benefit obligation Interest income on plan assets Recognized in profit or loss Remeasurement Actuarial gains (losses) - Experience adjustments Actuarial gains (losses) - Adjustments to demographic assumptions Actuarial gains (losses) - Adjustments to financial assumptions Return on plan assets Recognized in other comprehensive income Total	2024 $ 161 359 (273) 247 605 - (514) (1,747) (1,656) $ (1,409)	2023
		$ 161 403 (283)
		281
		269 - 259 (177)
		351
		$ 632

49 -

Pension expenses recognized in profit or loss for the above defined benefit plan are included in the following items:

Operating costs Selling and marketing expenses General and administrative expenses Research and development expenses Others	2024 $ 787 72 69 83 (764) $ 247	2023
		$ 2,274 61 230 78 (2,362)
		$ 281

(C) The Company’s obligation amount from defined benefit plans recognized in the parent company only balance sheets is as follows:

Present value of defined benefit obligation Fair value of plan assets Net defined benefit liability	December 31,2024 $ 17,448 (12,899) $ 4,549	December 31,2023
		$ 27,587 (20,614)
		$ 6,973

(D) Changes in the present value of the Company’s defined benefit obligations are presented below:

presented below:
Opening balance Current service cost Net interest expense Remeasurement Actuarial gains (losses) - Experience adjustments Actuarial gains (losses) - Adjustments to demographic assumptions Actuarial gains (losses) - Adjustments to financial assumptions Benefits paid for plan assets Ending balance	2024 $ 27,587 161 359 605 - (514) (10,750) $ 17,448	2023
		$ 28,824 161 403 269 - 259 (2,329)
		$ 27,587

50 -

(E) Changes in the fair value of the Company’s plan assets are presented below:

Opening balance Interest income Remeasurement Return on plan assets Contributions from employer Benefits paid for plan assets Ending balance	2024 $ 20,614 273 1,747 1,015 (10,750) $ 12,899	2023
		$ 19,833 283 177 2,650 (2,329)
		$ 20,614

The Company expects to contribute NTD 730 thousand to the defined benefit plan within one year after December 31, 2024.

B. Defined contribution benefit plan

The Company’s employee retirement plan under the “Labor Pension Act” is a defined contribution plan. The Company contributes an amount equal to 6% of the employees’ monthly wages to the special accounts at the Bureau of Labor Insurance. In accordance with the above regulations, the pension costs recognized by the Company for the years ended December 31, 2024 and 2023 were NTD 11,564 thousand and NTD 12,692 thousand, respectively.

(18) Share capital

As of December 31, 2024, the Company’s authorized common stock amounted to NTD 1,000,000 thousand, with paid-in capital of NTD 965,942 thousand, par value of NTD 10 per share, divided into 96,594,171 shares.

(19) Capital surplus

A. Pursuant to the Company Act, capital surplus may not be used except to cover a deficit or to increase capital. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.
B. Pursuant to the Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. However, the capital increase is limited to a certain percentage of the paid-in capital each year. In addition, changes in ownership interest in subsidiaries recognized can be used to cover a deficit.
51 -

(20) Retained earnings

Legal reserve should be appropriated until it reaches the total amount of paid-in capital. Legal reserve can be used to cover a deficit of the Company, and if there is no deficit, the excess of legal reserve over 25% of paid-in capital may be used to distributed new shares or cash to shareholders in proportion to their original shares.

The Company allocates and reverse the special reserve in accordance with Jin-Guan-Zheng-Fa-Zi No. 1090150022 and the “FAQ on the Allocation of Special Reserve after Adoption of International Financial Reporting Standards (IFRSs)”. If the remaining balance of other shareholders’ equity is reversed, the reversed portion may be used to distribute earnings to the shareholders.

In accordance with the Company’s Articles of Incorporation, the Company’s annual net income after final settlement shall be used to pay taxes and cover the deficits of prior years, 10% of the remaining income shall be set aside as legal reserve and special reserve in accordance with the law, and the remaining balance shall be added to the undistributed earnings of prior years and a part of which retained as the capital required for the business growth, and then the Board of Directors shall prepare the earnings distribution proposal and submit it to the shareholders’ meeting for resolution.

At the shareholders’ meetings of the Company held on June 18, 2024 and June 7, 2023, respectively, the Company resolved to approve the earning distribution plan and the dividends per share for the years 2023 and 2022, respectively, as follows:

Earningdistributionplan 2023 2022 Legal reserve $ 20,151 $ 35,790 The distribution items are as follows: Capital surplus - - Cash dividends 144,891 154,551	Dividendsper share(NTD)	Dividendsper share(NTD)
	2023 $ - 1.5	2022
		$ - 1.6

The above distribution of earnings did not differ from the resolutions made by the Board of Directors on March 5, 2024 and March 13, 2023, respectively.

Information on the earning distribution condition proposed by the Board of Directors and resolved by the Shareholders’ Meeting, is available on the “Market Observation Post System” website of the Taiwan Stock Exchange.

52 -

The distribution of earnings for 2024 had been approved by the Board of Directors on February 26, 2025 as follows:

ebruary 26, 2025 as follows:
Legal reserve The distribution items are as follows: Cash dividends	Earning distribution plan 2024 $ 45,372 144,891	Dividends per share (NTD)
		2024
		$ 1.5

The distribution of earnings for 2024 is to be resolved by the shareholders’ meeting to be held on May 27, 2025.

(21) Other equity items

Exchange differences arising from the translation adjustments of the financial statements of foreign operations are the relevant exchange differences generated from the translation of the functional currency of the net assets of foreign operations into the Company’s presentation currency (i.e., New Taiwan dollars), and are recognized directly in other comprehensive income. The losses and gains recognized in other comprehensive income for the years ended December 31, 2024 and 2023 were NTD 29,428 thousand and NTD (13,317) thousand, respectively.

(22) Operating revenue

13,317) thousand, respectively. perating revenue
Total operating revenue Less: Sales returns and discounts Revenue from sales of goods Maintenance and other income	2024 $ 1,300,298 (7,276) $ 1,293,022 2024 $ 1,063,945 229,077 $ 1,293,022	2023
		$ 1,580,643 (8,322)
		$ 1,572,321
		2023
		$ 1,301,851 270,470
		$ 1,572,321

A. Revenue segmentation
(A) The Company’s contract revenues are derived from the provision of goods and services transferred at a specific time.
53 -

(B) Major sales market by geography:

Domestic sales Export Asia America Europe Other countries	2024 $ 299,712 435,003 380,114 177,837 356 $ 1,293,022	2023
		$ 279,810 654,406 327,990 275,380 34,735
		$ 1,572,321

B. Contract balance
(A) Changes in contract liabilities result from the difference between the fulfillment of contractual obligations and the payment from customers.

Contract liabilities	December 31, 2024 $ 104,905	December 31, 2023
		$ 57,348

(B) Amount of opening contract liabilities recognized as revenue in current period is:

is:
		2024		2023
Sales revenue	$	39,213	$	38,510

(23) Other income

Other income
Rental income Dividend revenue Other income	2024 $ 3,569 23,155 21,208 $ 47,932	2023
		$ 3,240 23,308 24,403
		$ 50,951

54 -

(24) Other gains and losses

Other gains and losses
Foreign currency exchange gain Net gain (loss) on disposals of property, plant and equipment Gains from disposal of financial assets Gain (loss) on financial valuation at fair value through profit or loss Others	2024 $ 55,407 2,683 977 413,198 (1,951) $ 470,314	2023
		$ 5,782 343 2,841 123,694 (469)
		$ 132,191

(25) Finance costs

Finance costs	Finance costs	Finance costs
2024 Interest on bank loans $ 28,682 Interest on lease liabilities 2,839 Interest capitalization (2,043) $ 29,478 Employee benefits, depreciation and amortisation expense 2024 Classified as operating costs Classified as operating expenses Employee benefits expense Salary expense $ 148,205 $ 92,814 Labor and health insurance expense 15,409 9,985 Pension expense 7,635 4,176 Director’s remuneration - 6,949 Other employee benefit expenses 4,199 2,278 Depreciation 55,309 11,961 Amortisation 380 1,541				2023
			$	28,647 57 -
			$	28,704

	Classified as operating costs $ 148,205 15,409 7,635 - 4,199 55,309 380	Classified as operating expenses		Total
		$ 92,814 9,985 4,176 6,949 2,278 11,961 1,541		$ 241,019 25,394 11,811 6,949 6,477 67,270 1,921

(26) Employee benefits, depreciation and amortisation expense

55 -

Employee benefits expense Salary expense Labor and health insurance expense Pension expense Director’s remuneration Other employee benefit expenses Depreciation Amortisation		2023
	Classified as operating costs $ 162,715 17,392 7,613 - 4,940 58,969 301	Classified as operating expenses $ 98,912 10,724 5,360 3,360 2,707 12,327 1,440	Total
			$ 261,627 28,116 12,973 3,360 7,647 71,296 1,741

As of December 31, 2024 and 2023, the Company had 333 and 368 employees, respectively, including 8 and 7 directors who were not employees concurrently.

In accordance with the Company’s Articles of Incorporation, if the Company makes a profit during the year, the Company shall set aside not less than 3% to 8% as compensation to employees and not more than 2% as remuneration to directors and supervisors. The Company may distribute the above compensation to employees of its subsidiaries who meet certain criteria, and the terms and methods of distribution shall be determined by the Board of Directors. However, if the Company has accumulated deficit, an amount to cover such deficit shall be reserved in advance.

In 2024, the Company estimated employees’ compensation of NTD 16,000 thousand and directors’ and supervisors’ remuneration of NTD 2,750 thousand, respectively. The estimation is based on the past experience of actual distribution, the net income of the current period, and the percentage specified in the Articles of Incorporation, and the estimates are recognized as operating costs or expenses in the current year. If the actual distributed amounts in the following year are different from the estimates, they shall be handled as changes in accounting estimates, and the difference will be recognized as the profit or loss of the following year, with the related information disclosed on the Market Observation Post System (MOPS).

56 -

In 2023, the Company’s compensation to employees and remuneration to directors and supervisors amounted to NTD 16,000 thousand and NTD 2,750 thousand, respectively, and the related information is available on the MOPS. There was no difference between the actual distributed amounts and the estimated amounts.

The average employee benefit expenses of the Company were NTDS 876 thousand and NTD 860 thousand in 2024 and 2023, respectively.

The average employee salary expenses of the Company were NTD 742 thousand and NTD 725 thousand in 2024 and 2023, respectively.

In 2024, the change in the Company’s average employee salary expenses was 2.3%.

The information on the Company’s salary and remuneration policy (including directors, supervisors, managerial officers and employees) is as follows:

A. Remuneration to directors

The Company’s general directors and independent directors’ remuneration policy is determined according to their responsibilities, risks, invested time and other factors. In accordance with the Articles of Association of the Company, the remunerations to the Chairman, Vice-Chairman and directors of the Company shall be authorized to be determined by the Board of Directors according to the degree of their participation in the operation of the Company and the value of their contributions, taking into account both the domestic and foreign industry standards. The Articles of Association also separately provide for a remuneration of the directors to be not more than 2% of the annual profit of the Company.

B. Remuneration to supervisor

Since June, 2020, the Company established an Audit Committee to replace the supervisor system.

C. Remuneration to the managerial officers

The remuneration of the managerial officers of the Company shall be considered by the Remuneration Committee and submitted to the Board of Directors for resolution based on their positions, contributions, the Company’s operating performance for the year and taking into account the Company’s future risks.

D. Compensation to the employees

Compensation to the employees includes monthly payment and unscheduled performance bonus, year-end bonus, and employee compensation based on the Company’s profitability. As stipulated in the Articles of Association, not less than 3% - 8% of the annual profit of the Company shall be used as the compensation to the employees.

57 -

In addition to setting competitive salary levels based on local labor market conditions, the Company’s (overseas) subsidiaries also provide annual bonuses to employees with reference to local laws and regulations, industry practices, and the overall operating performance of each subsidiary, in order to encourage employees to make long-term contributions and grow with the Company.

(27) Income tax

A. Income tax expense

Income tax expenses for the years ended December 31, 2024 and 2023 are as follows:

follows:
		2024		2023
Current income tax:
Income tax generated in current year	$	519	$	52,870
Adjustment on income tax of prior years		8,067		(4,073)
Deferred income tax
Deferred tax expense related to the
generation and reversal of
temporary differences		1,083		(18,621)
Income tax expense	$	9,669	$	30,176
(A) The components of income tax	expense recognized in		profit or loss for the
years ended December 31, 2024 and 2023 are as follows:

Net profit before tax Tax amount calculated by applying statutory rate to net profit before tax Influenced tax amount of adjusted items: Impacts of items not included for calculation of taxable income Income tax reduction Tax levied on undistributed earnings Adjustment on income tax of prior years Net change in deferred income tax Temporary differences Income tax expense recognized in profit or loss	2024 $ 462,170 $ 92,434 (92,434) - 519 8,067 1,083 $ 9,669	2023
		$ 240,987
		$ 48,197 11,491 (14,662) 7,844 (4,073) (18,621)
		$ 30,176

58 -

(B) Income tax expenses recognized under other comprehensive income for the years ended December 31, 2024 and 2023 are as follows:

Items that will not be reclassified subsequently to profit or loss Remeasurement of defined benefit plan Items that may be reclassified subsequently to profit or loss Exchange difference on translation of financial statements of foreign operations	2024 $ 331 $ 7,357	2023
		$ (70)
		$ (3,330)

B. Deferred tax assets and liabilities are classified as follows:

Exceeding amount of allowance for uncollectible accounts Unrealized exchange losses Unrealized loss on market value decline and obsolete and slow-moving inventories Unrealized sales profit Unrealized attendance bonus Unrealized warranty expense Exceeding amount of pension and actuarial loss Exchange difference on translation of financial statements of foreign operations Loss deduction Others Unrealized exchange income or loss Share of profit or loss of subsidiaries, associates and joint ventures accounted for using equity method Exchange difference on translation of financial statements of foreign operations	Deferred tax assets	Deferred tax assets
	December 31,2024 December 31,2023 $ 1,525 $ 936 - - 68,351 71,396 2,977 5,055 1,260 1,439 432 767 910 1,382 - 3,586 15,708 - 48 59 $ 91,211 $ 84,620 Deferred income tax liabilities	December 31,2023
		$ 936 - 71,396 5,055 1,439 767 1,382 3,586 - 59
		$ 84,620
	December 31,2024 $ 10,210 109,558 2,917 $ 122,685	December 31,2023
		$ 3,907 104,270 -
		$ 108,177

59 -

2024 Temporary differences Exceeding amount of allowance for uncollectible accounts Unrealized exchange losses Unrealized loss on market value decline and obsolete and slow-moving inventories Unrealized sales profit Unrealized attendance bonus Unrealized warranty expense Exceeding amount of pension and actuarial loss Exchange difference on translation of financial statements of foreign operations Loss deduction Others Total deferred tax assets Unrealized exchange income or loss Share of profit or loss of subsidiaries, associates and joint ventures accounted for using equity method Exchange difference on translation of financial statements of foreign operations Total deferred income tax liabilities 2023 Temporary differences Exceeding amount of allowance for uncollectible accounts Unrealized exchange losses Unrealized loss on market value decline and obsolete and slow-moving inventories Unrealized sales profit Unrealized attendance bonus Unrealized warranty expense Exceeding amount of pension and actuarial loss Exchange difference on translation of financial statements of foreign operations Investment tax credit - Resource-poor areas Others Total deferred tax assets Unrealized exchange income or loss Share of profit or loss of subsidiaries, associates and joint ventures accounted for using equity method Total deferred income tax liabilities	Opening balance $ 936 - 71,396 5,055 1,439 767 1,382 3,586 - 59 $ 84,620 $ 3,907 104,270 - $ 108,177 Opening balance $ 1,952 (21,495) 63,192 5,765 1,157 1,054 1,785 734 - 70 $ 54,214 $ - 99,315 $ 99,315	Recognized in profit or loss $ 589 - (3,045) (2,078) (179) (335) (141) - 15,708 (11) $ 10,508 $ 6,303 5,288 - 11,591 Recognized in profit or loss $ (1,016) 21,495 8,204 (710) 282 (287) (473) - - (11) $ 27,484 $ 3,907 4,955 $ 8,862	Recognized in other comprehensive income $ - - - - - - (331) (3,586) - - $ (3,917) $ - - 2,917 $ 2,917 Recognized in other comprehensive income	Ending balance
				$ 1,525 - 68,351 2,977 1,260 432 910 - 15,708 48
				$ 91,211
				$ 10,210 109,558 2,917
				$ 122,685
				Ending balance
			$ - - - - - - 70 2,852 - -	$ 936 - 71,396 5,055 1,439 767 1,382 3,586 - 59
			$ 2,922	$ 84,620
			$ - -	$ 3,907 104,270
			$ -	$ 108,177

60 -
C. Information on investment tax credit:

The Company chose to apply the investment tax credit to the research and development expenditures under Article 10, paragraph 1, subparagraph 1 of the Statute for Industrial Innovation, and offset the amount of income tax payable within three years from the current year, up to a limit of 10% of the amount of research and development expenditures declared for the current year in accordance with the relevant regulations.

The Company chose to apply the tax credit method to investment in intelligent machinery, fifth-generation mobile communication systems and information security products or services by corporations or limited partnerships, and offset the amount of income tax payable for the current year up to a limit of 5% of the amount of expenditures for information security products declared in accordance with the relevant regulations.

D. As of December 31, 2024, all of the estimated income tax credits under the Rules of the Statute for Upgrading Industries have been offset by the Company in the current year.
E. The Company’s business income tax returns for the year 2022 have been approved by the tax authority.

(28) Earnings per share

by the tax authority. (28) Earnings per share
Basic earnings per share Profit for the year Effect of potential dilutive common shares Employee bonus Net profit attributable to ordinary shareholders plus effect of potential ordinary shares Basic earnings per share Profit for the year Effect of potential dilutive common shares Employee bonus Net profit attributable to ordinary shareholders plus effect of potential ordinary shares			2024
	Amount		Weighted average number of ordinary shares outstanding (shares in thousands) 96,594 506 97,100 2023	Earnings per share (NTD)
	Before tax $ 462,170 $ 462,170	After tax		Before tax	After tax
		$ 452,501		$ 4.78	$ 4.68
				$ 4.76	$ 4.66
		$ 452,501

	Amount		Weighted average number of ordinary shares outstanding (shares in thousands) 96,594 492 97,086	Earnings per share (NTD)
	Before tax $ 240,987 $ 240,987	After tax		Before tax	After tax
		$ 210,811		$ 2.49	$ 2.18
				$ 2.48	$ 2.17
		$ 210,811

61 -

If the Company chooses to issue stock or cash as compensation to employees, for compensation to be paid by issuance of shares, the potential common shares shall be included in the weighted average number of outstanding shares when such shares have a dilutive effect for the purpose of calculating diluted earnings per share. In calculating the diluted earnings per share, the number of shares to be issued is based on the net value of the potential common share on the balance sheet date. The dilutive effect of such potential common shares shall continue to be taken into account in calculating the diluted earnings per share until the number of shares to be issued as employees’ compensation is resolved at the shareholders’ meeting in the following year.

(29) Capital management

Based on the current industry characteristics of the business and the future development of the Company, as well as changes in the external environment and other factors, the Company plans for its working capital and dividend expense requirements in the future, so as to ensure that the Company can continue its operations, reward its shareholders and take into account the interests of other stakeholders, and maintain an optimal capital structure to enhance shareholders’ value in the long term.

The Company’s management reviews its capital structure on a regular basis and considers the costs and risks that may be associated with the above capital structure. In general, the Company adopts a prudent risk management strategy.

(30) Supplemental cash flow information

Investing activities with partial cash payments:

Purchase of property, plant and equipment Add: Opening balance of payable on equipment Add: Interest capitalization Less: Ending balance of payable on equipment Cash paid during the year	2024 $ 179,870 212 2,043 (152) $ 181,973	2023
		$ 43,208 1,086 - (212)
		$ 44,082

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7. Related Party Transactions

(1) Names of related parties and relationship

Names of related parties and relationship
Related party name Goodway Machine Corp. Awea Mechantronic (Suzhou) Ltd. Shanghai Zhuwai Mechanical and Electrical Co., Ltd. Yih Chuan Machinery Industry Co., Ltd. Yih Chuan Machinery (Jiaxing) Industry Co., Ltd. Yama Seiki USA, Inc. Huahan Leasing Co., Ltd. Allrich Cnc, Ltd. Hung Jiu Machine Co., Ltd. Yang Wenxu Charity Foundation Turvo International Co., Ltd. Boldwin Bio Co., Ltd.	Relationship with the Company
	Parent company Subsidiaries Subsidiaries Subsidiaries Subsidiaries Associates Associates Substantive related party Substantive related party Substantive related party Other related parties Other related parties

(2) Significant transactions with the related parties

A. Sales

Sales
Parent company Subsidiaries Awea Mechantronic (Suzhou) Others Associates Yama Seiki Other related parties	2024 $ 14,849 203,444 760 305,977 1,355 $ 526,385	2023
		$ 8,705 255,365 158 299,505 93
		$ 563,826

The Company sells products of different specifications to related parties, and has no other customers to compare with. The collection terms for the Company’s sales to related parties and general customers are based on the contracts.

63 -

B. Purchases

Purchases
Parent company Subsidiaries Associates Substantive related party Other related parties	2024 $ 428 19,783 18,597 8,076 - $ 46,884	2023
		$ 1,167 12,074 6,566 4,204 35
		$ 24,046

The transaction prices of the Company’s purchases from related parties are similar to those of general transactions.

C. Notes receivable, net

those of general transactions. C. Notes receivable, net
Parent company Subsidiaries Other related parties D. Accounts receivable, net Parent company Subsidiaries Awea Mechantronic (Suzhou) Others Associates - Yama Seiki Other related parties E. Other receivables Parent company Subsidiary - Yih Chuan	December 31, 2024 $ 12,630 - 252 $ 12,882 December 31,2024 $ 3,114 70,293 - 56,868 379 $ 130,654 December 31,2024 $ 15 70,046 $ 70,061	December 31, 2023
		$ 852 - 6
		$ 858
		December 31,2023
		$ 10 78,173 30 43,474 35
		$ 121,722
		December 31,2023
		$ 61,626
		$ 61,626

64 -

F. Notes payable

F. Notes payable
Parent company Subsidiaries Substantive related party Other related parties G. Accounts payable Parent company Subsidiaries Substantive related party H. Other payables Parent company Subsidiaries Other related parties I. Prepayments Parent company J. Contract liabilities Parent company K. Advance receipts Parent company	December 31,2024 $ 251 4,304 1,075 - $ 5,630 December 31,2024 $ 249 1,564 831 $ 2,644 December 31,2024 $ 946 51 11 $ 1,008 December 31, 2024 $ 26 December 31, 2024 $ 27,516 December 31, 2024 $ 190	December 31,2023
		$ 267 1,821 263 36
		$ 2,387
		December 31,2023
		$ 129 1,209 221
		$ 1,559
		December 31,2023
		$ 1,042 151 16
		$ 1,209
		December 31, 2023
		$ 26
		December 31, 2023
		$ -
		December 31, 2023
		$ 190

65 -

L. Current lease liabilities

Current lease liabilities
	December 31,2024		December 31,2023
Parent company	$	-	$	499
Leases
Rental income		2024		2023
Parent company	$	1,212	$	1,146
Other related parties		57		43
	$	1,269	$	1,189
Others
Other income		2024		2023
Parent company	$	409	$	369
Subsidiaries		-		1,514
Associates - Yama Seiki		95		16,970
	$	504	$	18,853
Operating costs - warranty expense		2024		2023
Subsidiaries	$	273	$	201
Manufacturing expenses		2024		2023
Parent company	$	515	$	714
Subsidiaries		-		234
Associates		-		461
Substantive related party		2,160		2,610
Other related parties		-		39
	$	2,675	$	4,058
Selling and marketing expenses		2024		2023
Parent company	$	2,196	$	2,430
Subsidiaries		95		85
Associates		902		7
Other related parties		60		70
	$	3,253	$	2,592

M. Leases

N. Others

66 -

General and administrative expenses Parent company Substantive related party Others Interest income Subsidiaries	2024 $ - 350 79 429 2024 $ 1,386	2023
		$ 3 - -
		3
		2023
		$ 1,423

O. Property transaction

Disposal of property, plant and equipment

Parent company	Items	From January to December 2024 Proceeds Gain on disposal $ 8,089$ 481	From January to December 2023	From January to December 2023
		Proceeds $ 8,089	Proceeds $ -	Gain on disposal
	Machinery equipment			$ -

P. Loans to related parties (recorded as other receivables)

The actual expenditures of the Company’s loans to related parties are as follows:

Subsidiary - Yih Chuan	2024 $ 70,000	2023
		$ 60,000

The Company’s loans to related parties bear interest at the rates agreed between the Company and the related parties, and no impairment loss needs to be recognized through valuation.

Q. Information on main management rewards

Short-term employee benefits Post-employment benefits	2024 $ 9,915 360 $ 10,275	2023
		$ 7,237 279
		$ 7,516

Compensation for key management personnel is determined by the Remuneration Committee based on individual performance and the Company’s operating results.

67 -

8. Pledged Assets

The Company’s assets pledged as collaterals are summarized as follows:

Name of asset	December 31,2024 $ 377,341 674,014 10,200 $ 1,061,555	December 31,2023
Property, plant and equipment - land Property, plant and equipment - property and building Financial assets measured at amortized cost - pledged time deposits		$ 377,341 705,019 10,137
		$ 1,092,497

9. Significant Contingent Liabilities and Unrecognized Contract Commitments

The Company’s commitments and contingencies as of December 31, 2024 include:

(1) The amount of guaranteed bills issued by the Company was NTD 2,786 thousand.
(2) The amount of guaranteed bills collected by the Company from the customers was NTD 49,272 thousand.
(3) The amount of guaranteed bills collected by the Company from the manufacturers due to solar photovoltaic lease was NTD 21,180 thousand.
(4) The amount of guaranteed bills received by the Company for the construction of Dapumei Plant Phase II was NTD 21,780 thousand.
(5) The amount of guaranteed bills received by the Company for the light current and other construction was NTD 6,889 thousand.
(6) The amount of the loan guarantee notes collected by Company from the subsidiary - Yih Chuan Company were NTD 70,000 thousand.
(7) In order to guarantee the release of imported goods before paying tax to the Customs Administration, the Company has entrusted the First Commercial Bank to issue a guarantee letter at the amount of NTD 2,000 thousand.
(8) In order to apply for the Ministry of Economic Affairs’ Taiwan Industry Innovation Platform Program, the Company has entrusted the First Commercial Bank to issue a guarantee letter at the amount of NTD 22,500 thousand.
(9) In order to export goods, the Company has entrusted a financial institution to issue a performance guarantee letter at the amount of USD 110 thousand.
Significant Disaster Loss: None.
Significant Events after the Balance Sheet Date: None.
68 -

12. Others

Financial instruments

(1) Information on fair value of financial instruments

The carrying amounts of the Company’s financial instruments not measured at fair value, including cash equivalents, notes receivable, accounts receivable, other receivables, refundable deposits, short-term borrowings, short-term notes and bills payable, notes payable, accounts payable, other payables, bonds payable, long-term borrowings, and guarantee deposits received, are the reasonable approximates of their fair values. The interest rates of bonds payable (including those due within one year or under repurchase rights) and long-term loans (including those due within one year) approximate market interest rates; therefore, the carrying amounts should be a reasonable basis for approximation of fair values. For information on the fair value of financial instruments measured at fair value, please refer to Note 12(6).

(2) Financial risk management objectives

The objectives of the Company’s financial risk management are to manage the exchange rate risk, interest rate risk, credit risk and liquidity risk associated with its operating activities. In order to reduce relevant financial risks, the Company is committed to identifying, evaluating and avoiding market uncertainties, so as to reduce the potential adverse impact of market changes on the Company’s financial performance.

Significant financial activities of the Company are reviewed by the Board of Directors in accordance with relevant norms and internal control systems. During the execution period of the financial plan, the Company must comply with the relevant financial operating procedures regarding the overall financial risk management and the division of rights and responsibilities.

(3) Market risks

The Company is primarily exposed to market risks arising from changes in foreign currency exchange rates and interest rates, and uses certain derivative financial instruments to manage the related risks.

A. Foreign currency exchange rate risk

Some of the Company’s cash inflows and outflows are in foreign currencies, which has a partially natural hedging effect; the Company’s exchange rate risk management is for hedging purpose, other than for profit purpose.

The exchange rate risk management strategy is to periodically review net parts of the assets and liabilities in various currencies, and make risk management of such parts.

69 -

The carrying amounts of the Company’s foreign-currency-denominated monetary assets and monetary liabilities at the end of the reporting period are summarized below:

Unit: Foreign currency/ NTD thousand

below:			Unit: Foreign currency/ NTD thousand	Unit: Foreign currency/ NTD thousand	Unit: Foreign currency/ NTD thousand	Unit: Foreign currency/ NTD thousand
Financial assets Monetary items USD EUR CNY Non-monetary items USD Financial liabilities Monetary items USD CNY Non-monetary items USD EUR Financial assets Monetary items USD EUR CNY Non-monetary items USD Financial liabilities Monetary items USD JPY CNY Non-monetary items USD EUR			December 31,2024
	Foreign currencies 16,001 3,644 24,133 33 19 363 1,650 49	Exchange rate (Note) 32.735 33.94 4.453 32.735 32.735 4.453 32.735 33.94	NTD	Sensitivityanalysis
					Profit and lossimpact	Equity impact
	Foreign currencies 27,002 5,352 29,033 - 46 6,602 35 832 1	Exchange rate (Note) 30.655 33.78 4.302 - 30.655 0.2152 4.302 30.655 33.78	NTD	Sensitivityanalysis
				Rate of change 5% 5% 5% - 5% 5% 5% - -	Profit and lossimpact	Equity impact
			827,746 180,791 124,900 - 1,410 1,421 151 25,505 34		41,387 9,040 6,245 - 71 71 8 - -	- - - - - - - - -

(Note) Based on the exchange rate on the balance sheet date.

70 -
B. Interest rate risk

Interest rate risk is the risk of changes in fair value of financial instruments due to changes in market interest rates. The Company’s interest rate risk arises mainly from borrowings at variable interest rates.

If the borrowings at floating rate at the end of the reporting period are held for the entire reporting period, a 1% increase in interest rates would result in a decrease in net income of NTD 16,450 thousand.

C. Other price risk

The price risk of the Company’s equity instrument investments arises mainly from the financial assets classified as measured at fair value through profit or loss, and the financial assets classified as measured at fair value through other comprehensive income.

If the price of equity instruments at the end of the reporting period decreases by 10%, the Company’s income would decrease by NTD 97,691 thousand and NTD 53,892 thousand in 2024 and 2023, respectively.

(4) Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial losses to the Company. The Company’s credit risk mainly comes from receivables arising from operating activities and bank deposits arising from investment activities. The operation-related credit risks and the financial credit risks are under separate management.

A. Operation-related credit risks

In order to maintain quality of accounts receivable, the Company has established the procedure for management of operation-related credit risks. According to the Company’s credit policy, the Company is responsible for managing and analyzing the credit risk for each new customer. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors.

The risk assessment of individual customers takes into account many factors that may affect the customers’ ability to pay, including the customers’ financial position, ratings of credit rating agency, the Company’s internal credit rating, historical transaction records and current economic conditions, etc. The Company also utilizes certain credit enhancement tools, such as credit insurance, when appropriate, to minimize the credit risk of specific customers.

71 -

As of December 31, 2024 and 2023, the balance of accounts receivable of the top ten customers accounted for 84% of the Company’s balance of accounts receivable in both years, and the credit concentration risk of the remaining accounts receivable was relatively insignificant.

B. Financial credit risk

The credit risk of bank deposits is measured and monitored by the financial departments of the Company. As the Company’s trading partners and performing parties are banks with good credit and financial institutions, corporate organizations and government agencies with investment grade or above, without significant concern about performance of the contract, therefore, there is no significant credit risk.

(5) Liquidity risk

The Company’s objective in managing liquidity risk is to maintain cash and cash equivalents and sufficient bank facilities required for maintaining operations, so as to ensure sufficient financial resilience of the Company.

The following table summarizes the financial liabilities of the Company during the agreed repayment period by maturity date and undiscounted maturity amount:

	December 31,2024	December 31,2024	December 31,2024
1 to 3 months $ 1,215,000 79,992 129,301 69,534 76,327 10,418 1,872 428 $ 1,582,872	4 to 6 months $ 235,000 - 44,784 - - - 1,880 - $ 281,664	7 to 12 months $ 115,000 - - - - - 3,784 - $ 118,784	Over 1year $ - - - 87 - - 158,305 - $ 158,392	Total
				$ 1,565,000 79,992 174,085 69,621 76,327 10,418 165,841 428

				$ 2,141,712

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	December 31,2023	December 31,2023	December 31,2023
1 to 3 months $ 1,165,000 79,987 206,408 84,637 88,161 11,032 334 428 $ 1,635,987	4 to 6 months $ 185,000 - 57,940 40 - - 235 - $ 243,215	7 to 12 months $ 115,000 - - 137 - - 69 - $ 115,206	Over 1year $ - - - 239 - - 280 - $ 519	Total
				$ 1,465,000 79,987 264,348 85,053 88,161 11,032 918 428

				$ 1,994,927

(6) Fair value
A. For information on the fair value of the Company’s financial assets and financial liabilities not measured at fair value, please refer to Note 12(1).
B. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:
- Level 1: The inputs to this level are publicly quoted prices (unadjusted) in active markets for identical assets or liabilities. Active market means a market that meets all of the following conditions: the products traded in the market are homogeneous; willing buyers and sellers are readily available in the market, and the price information is readily available to the public.
- Level 2: The input values of this level are observable prices other than publicly quoted prices in Level 1, including direct (such as prices) or indirect (such as derived from prices) observable input values obtained from the active market.
- Level 3: The input values of this level are not inputs for assets or liabilities that are based on observable market data.

For the years ended December 31, 2024 and 2023, the Company had no transfer between Level 1 and Level 2.

For the years ended December 31, 2024 and 2023, the Company had no transfer into or out from Level 3.

73 -
C. The methods and assumptions the Company used to measure fair value are as follows:
(A) The fair values of financial assets and financial liabilities with standard terms and conditions and traded in active markets are determined by reference to quoted market prices.
(B) The fair values of other financial liabilities are determined using generally accepted valuation models based on discounted cash flow analysis.
D. Fair value hierarchy:

The fair value hierarchy of the Company’s financial assets measured at fair value is as follows:

as follows:
Financial assets at FVTPL Listed and OTC stocks Financial assets at FVTOCI Listed and OTC stocks Financial assets at FVTPL Listed and OTC stocks Financial assets at FVTOCI Listed and OTC stocks		December 31,2024
	Level 1 $ 976,539 376 $ 976,915	Level 2 Level 3 $ - $ - - - $ - $ - December 31,2023		Total
				$ 976,539 376
				$ 976,915

	Level 1 $ 536,929 1,991 $ 538,920	Level 2 $ - - $ -	Level 3 $ - - $ -	Total
				$ 536,929 1,991
				$ 538,920

13. Additional Disclosures

(1) Significant transactions information:
A. Loaning funds to others: Refer to Table 1.
B. Provision of endorsements and guarantees to others: None.
C. Holding of marketable securities at the end of the period (not including investment in subsidiaries, associates and joint ventures)
74 -
D. Acquisition or sale of the same security with the accumulated cost exceeding NTD 300 million or 20% of the Company’s paid-in capital: None.
E. Acquisition of real estate reaching NTD 300 million or 20% of paid-in capital or more: None.
F. Disposal of real estate reaching NTD 300 million or 20% of paid-in capital or more: None.
G. Purchases or sales of goods from or to related parties reaching NTD 100 million or 20% of paid-in capital or more: Refer to Table 3.
H. Receivables from related parties amounting to at least NTD 100 million or 20% of the paid-in capital: None;
I. Derivative transactions: Please refer to Note 12 for details.
(2) Information on investees: Refer to Table 4.
(3) Information on Investment in Mainland China: Refer to Table 5.
(4) Information on major shareholders: names, numbers of shares held, and shareholding percentages of shareholders who hold 5% or more of the equity: Refer to Table 6.

14. Segment Information

The Company has disclosed segment information in the consolidated financial statements in accordance with IFRS 8 “Operating Segments”.

75 -

Table 1: Loaning Funds to Others

December 31, 2024

Unit: NTD thousand (unless stated otherwise)

No. (Note 1)	Companies loaning fund	Companies that fund is loaned to	Transaction items	Related party	Maximum amount of the current period (Note 3)	Ending balance (Note 4)	Amount drawn	Interest rate	Type of loans	Amount of transaction	Cause for necessity of short-term financing	Amount of allowance for uncollectible accounts	Collateral	Collateral	Loaning limit to individual objects (Note 2)	Total loaning limit to others (Note 2)
													Name	Value
0	AWEA Mechantronic Co., Ltd.	Yih Chuan Machinery Industry Co., Ltd.	Other receivables - related parties	Yes	140,000	70,000	70,000	2.175%	With necessity of short-term financing	695	Operating turnover	-	Promissory note	70,000	363,534	1,454,135
1	Shanghai Zhuwai Mechanical and Electrical Co., Ltd.	Awea Mechantronic (Suzhou) Ltd.	Other receivables - related parties	Yes	109,150 (CNY 25,000)	44,620 (CNY 10,000)	44,530	3.35%	With necessity of short-term financing	-	Operating turnover	-	-	-	162,275	162,275
1	Shanghai Zhuwai Mechanical and Electrical Co., Ltd.	Yih Chuan Machinery (Jiaxing) Industry Co., Ltd.	Other receivables - related parties	Yes	21,765 (CNY 5,000)	-	-	3.45%	With necessity of short-term financing	-	Operating turnover	-	-	-	162,275	162,275

Note 1: The explanation for the numbering column is as follows:

(1) Fill in 0 for issuer.
(2) The investees are coded sequentially beginning from “1” by each individual company.

Note 2: The loaning limit to individual objects shall not exceed 10% of their net value of the current period, and the total loaning limit shall not exceed 40% of their net value of the current period.

Note 3: The maximum balance of loaning funds to others of the current year.

Note 4: It is the loaning limit approved by the Board of Directors.

76 -

Table 2: Holding of Marketable Securities at the End of the Period (Not Including Investment in Subsidiaries, Associates and Joint Ventures) December 31, 2024

					Unit: NTD thousand(unless stated otherwise) December 31,2024 Remark Carrying amount Ownership (%) Fair value (Note1) - (Note 2) 5.00% - 104,662 1.39% 104,662 811,623 4.77% 811,623 37,089 0.98% 37,089 9,675 - 9,675 13,490 0.18% 13,490 376 - 376	Unit: NTD thousand(unless stated otherwise) December 31,2024 Remark Carrying amount Ownership (%) Fair value (Note1) - (Note 2) 5.00% - 104,662 1.39% 104,662 811,623 4.77% 811,623 37,089 0.98% 37,089 9,675 - 9,675 13,490 0.18% 13,490 376 - 376	Unit: NTD thousand(unless stated otherwise) December 31,2024 Remark Carrying amount Ownership (%) Fair value (Note1) - (Note 2) 5.00% - 104,662 1.39% 104,662 811,623 4.77% 811,623 37,089 0.98% 37,089 9,675 - 9,675 13,490 0.18% 13,490 376 - 376	Unit: NTD thousand(unless stated otherwise) December 31,2024 Remark Carrying amount Ownership (%) Fair value (Note1) - (Note 2) 5.00% - 104,662 1.39% 104,662 811,623 4.77% 811,623 37,089 0.98% 37,089 9,675 - 9,675 13,490 0.18% 13,490 376 - 376
Held company name	Marketable securities type and name	Relationship with the company	Financial statement account		December 31,2024			Remark
				Number of shares	Carrying amount	Ownership (%)	Fair value (Note1)
AWEA Mechantronic Co.,Ltd.	Stock - AUTECH EUROPE	-	Financial assets at FVTPL - non-current	50	- (Note 2)	5.00%	-
AWEA Mechantronic Co.,Ltd.	Stock - P-Duke Technology Co., Ltd.	-	Financial assets at FVTPL - current	1,143,852	104,662	1.39%	104,662
AWEA Mechantronic Co.,Ltd.	Stock - Turvo International Co., Ltd.	Other related parties	Financial assets at FVTPL - current	2,873,000	811,623	4.77%	811,623
AWEA Mechantronic Co.,Ltd.	Stock - Eagle Cold Storage Enterprise Co., Ltd.	-	Financial assets at FVTPL - current	1,170,000	37,089	0.98%	37,089
AWEA Mechantronic Co.,Ltd.	Stock - Taiwan Semiconductor Manufacturing Company Ltd.	-	Financial assets at FVTPL - current	9,000	9,675	-	9,675
AWEA Mechantronic Co.,Ltd.	Stock -Zeng Hsing Industrial Co., Ltd.	-	Financial assets at FVTPL - current	121,534	13,490	0.18%	13,490
AWEA Mechantronic Co.,Ltd.	Stock -Fittech Co., Ltd.	-	Financial assets at FVOCI - non-current	2,991	376	-	376

Note 1: If the investee company does not have a quoted market price, the net equity value shall be presented.

Note 2: In 1996, due to value impairment and little hope of recovery of the investee companies, all were recognized as losses.

77 -

Table 3: Purchases or Sales of Goods from or to Related Parties Reaching NTD 100 Million or 20% of Paid-in Capital or More December 31, 2024

Unit: NTD thousand (unless stated otherwise)

Company name	Counterparty	Relationship		Transaction details	Transaction details		Abnormal transaction (Note 1)	Abnormal transaction (Note 1)	Notes/ accounts payable or receivable	Notes/ accounts payable or receivable	Remark
			Purchases/ sales	Amount	% to total	Payment terms	Unit price	Payment terms	Ending balance	% to total notes and accounts receivable (payable)
AWEA Mechantronic Co., Ltd.	Awea Mechantronic (Suzhou) Ltd.	Subsidiaries under sub-subsidiaries	Sales	$ 203,444	15.73%	3 months after shipped	-	-	$ 70,294	19.26%	-
AWEA Mechantronic Co., Ltd.	Yama Seiki USA, Inc.	Subsidiaries	Sales	$ 305,977	23.66%	3 months after shipped	-	-	$ 56,868	15.58%	-

Note 1: Since the products sold by the Company to its related parties AWEA Suzhou and Yama Seiki have different features, there are no other customers available

for comparison; in addition, its collection terms and the collection terms for general customers are determined by contract.

78 -

Table 4: Names, Locations and Other Information of Investee Companies (Not Including Investees in Mainland China) December 31, 2024

Unit: NTD/ Foreign currency thousand (unless stated otherwise)

Investor company	Investee company	Location	Main business activities	Initial investment amount	Initial investment amount	Held at the end of period	Held at the end of period	Held at the end of period	Current profit (loss) of the invested company	Recognized investment gains (losses) in the current period (Note 1)	Remark
				December 31, 2024	December 31, 2023	Number of shares	Ownership (%)	Carrying amount
AWEA Mechantronic Co., Ltd. AWEA Mechantronic Co., Ltd. AWEA Mechantronic Co., Ltd. AWEA Mechantronic Co., Ltd. B-Way (Cayman) Co., Ltd. Yih Chuan Machinery Industry Co., Ltd. Axtron Int’l Investment Co., Ltd.	B-Way (Cayman) Co., Ltd. Yama Seiki USA, Inc. Yih Chuan Machinery Industry Co., Ltd. Huahan Leasing Co., Ltd. Billion-Way (Cayman) Co., Ltd. Axtron Int’l Investment Co., Ltd. Axtron Int’l Investment Limited	Cayman Islands USA Taiwan Taiwan Cayman Islands USA - Marshall Islands Hong Kong	International investment and international trade Machinery sales and installation, international trade Manufacturing of machinery and equipment, design of products, wholesale of machinery, and retail of mechanical appliances Rental of machinery and equipment International investment and international trade International investment and international trade International investment and international trade	$ 332,212 53,968 264,592 17,683 USD 12,830 (NTD 419,990) 200,000 HKD 10 (NTD 42)	$ 332,212 53,968 264,592 7,333 USD 12,830 (NTD 419,990) 200,000 HKD 10 (NTD 42)	10,665,029 584,192 5,914,800 1,500,000 12,829,840 50,000 10,000	100.00% 28.58% 60.00% 30.00% 100.00% 100.00% 100.00%	$ 737,335 126,784 135,667 18,247 742,619 197,881 197,880	$ 11,633 26,747 (15,009) (2,049) 11,672 (14,404) (14,404)	$ 11,268 7,214 (9,006) (381) 11,672 (14,404) (14,404)	(Note 1) - (Note 1) - (Note 1) (Note 1) (Note 1)

Note 1: It has been written off.

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Table 5: Information on Investments in Mainland China

December 31, 2024

Unit: NTD thousand (unless stated otherwise)

Name of the investee company in Mainland China, main business items, paid-in capital, method of investment, inward/outward remittance of

funds, percentage of ownership, carrying value of investment, and gain or loss on repatriated investment:

Name of investee	Main business activities	Paid-in capital	Investment method (Note 1)	Accumulated investment amount remitted from Taiwan at the beginning of the period	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for current period	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for current period	Accumulated investment amount remitted from Taiwan at the end of the period	Current profit and loss of the invested company	Ownership percentage of direct or indirect investment	Recognized investment gains and losses in the current period (Note 2)	Carrying amount of investment as of December 31, 2024	Accumulated inward remittance of earnings as of December 31, 2024
					Outflow	Inflow
Shanghai Zhuwai Mechanical and Electrical Co., Ltd.	Machinery sales and installation, business management consultation, and international trade	USD 2,500 (NTD 81,838) (Note 3)	2	USD 2,494 (NTD 81,641) (Note 3)	-	-	USD 2,494 (NTD 81,641) (Note 3)	$ 6,197	100%	$ 6,716	$160,901	USD 15,438 (NTD 494,064) (Note 3)
Awea Mechantronic (Suzhou) Ltd.	Machinery sales, manufacturing and installation, and international trade	USD 11,400 (NTD 373,179) (Note 3)	2	USD 10,400 (NTD 340,444) (Note 3)	-	-	USD 10,400 (NTD 340,444) (Note 3)	4,147	100%	4,147	567,579	USD 4,706 CNY 49,580 (NTD 370,167)
Yih Chuan Machinery (Jiaxing) Industry Co., Ltd.	Machinery sales, manufacturing and installation, and international trade	USD 2,510 (NTD 82,165) (Note 3)	2	USD 2,510 (NTD 82,165) (Note 3)	-	-	USD 2,510 (NTD 82,165) (Note 3)	(14,404)	100%	(14,404)	197,880	-

80 -

2. Limit on investments in Mainland China:

Name of investor	Accumulated investment amount remitted from Taiwan to Mainland China at the end of the period	Investment amounts authorized by Investment Review Committee, MOEA	Limit on investments in Mainland China imposed by the Investment Review Committee, MOEA Net value x 60%
The Company	$ 422,085 (Note 3) (USD 12,894)	$ 455,017 (Note 3) (USD 13,900)	$ 2,181,202 (Note 5)
Yih Chuan Machinery Industry Co., Ltd.	$ 82,165 (Note 3) (USD 2,510)	$ 82,165 (Note 3) (USD 2,510)	$ 135,024 (Note 5)

Note 1: Investment methods are divided into the following three types, just enter the code:

(1) Direct investment in Mainland China.
(2) Indirect investment in Mainland China through third-region companies.
(3) Other methods.

Note 2: The basis for recognition of investment gains and losses is the financial statements audited by CPAs for the same period.

Note 3: The NTD amount is translated by the exchange rate on the balance sheet date.

Note 4: Dawei Mechantronic (Suzhou) Co., Ltd. was merged with AWEA Mechantronic (Suzhou) Ltd. in September, 2020, and AWEA Mechantronic (Suzhou) Ltd. is the surviving company. The merger was approved by the Investment Review Committee, MOEA under the letter No. 11000165350 in July 2021.

Note 5: The cumulative amount of the investor’s investment in Mainland China shall not exceed 60% of the net value.

Significant direct or indirect transactions through a third region business with the investee in the Mainland China: please refer to Table 4 for details.
81 -

Table 6: Information on Major Shareholders

December 31, 2024

Table 6: Information on Major Shareholders December 31, 2024
Name of major shareholders	Number of shares held	Ownership (%)
Goodway Machine Corp.	47,962,311	49.65 %
De-Hua Yang	9,031,403	9.34 %
JiaJin Investment Co., Ltd.	6,256,388	6.47 %

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AWEA Mechantronic Co., Ltd.

§Table of Contents of Statements of Significant Accounting Titles§

For the Year Ended December 31, 2024

Items
1.
Statement of Cash and Cash Equivalents .......................................................
2.
Statement of Financial Assets at FVTPL - Current ........................................
3.
Statement of Net Notes Receivable ................................................................
4.
Statement of Net Accounts Receivable ...........................................................
5.
Statement of Inventories .................................................................................
6.
Statement of Prepayments ..............................................................................
7.
Statement of Other Current Assets .................................................................
8.
Statement of Financial Assets at FVOCI - Non-current .................................
9.
Statement of Changes of Investments Using Equity Method .........................
10. Statement of Changes in Accumulated Depreciation of Property, Plant and
Equipment .......................................................................................................
11. Statement of Changes in Intangible Asset ......................................................
12. Statement of Short-term Borrowings ..............................................................
13. Statement of Short-term Notes and Bills Payable ..........................................
14. Statement of Notes Payable ............................................................................
15. Statement of Accounts Payable ......................................................................
16. Statement of Other Payables ...........................................................................
17. Statement of Current Provisions .....................................................................
18. Statement of Other Current Liabilities ...........................................................
19. Statement of Net Operating Revenue .............................................................
20. Statement of Operating Costs .........................................................................
21. Statement of Manufacturing Expenses ...........................................................
22. Statement of Selling and Marketing Expenses ...............................................
23. Statement of General and Administrative Expenses .......................................
24. Statement of Research and Development Expenses .......................................

Page

84
85
85
86
86
87
87
87
88
Note 6(8)
Note 6(10)
89
90
90
91
91
Note 6(16)
92
92
93
94
94
95
95

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AWEA Mechantronic Co., Ltd.

Statement of Cash and Cash Equivalents

December 31, 2024

Unit: NTD thousand

Items	Summary	Amount
Cash and petty cash: Bank deposits: Demand deposits Check deposits Foreign currency deposit Total	NTD USD 9,038.00 EUR 11,504.00 CNY 301,319.00 Subtotal NTD NTD USD 4,067,834.81 EUR 3,330,780.54 CNY 8,046,329.37 Subtotal	$ 190 296 390 1,342
		2,218
		198,272 1,693 133,161 113,047 35,830
		482,003
		$ 484,221

Note: The NTD amount is translated by the exchange rate on the balance sheet date. On December 31, 2024, the foreign currency exchange rate was USD 1 to NTD 32.735; EUR 1 to NTD 33.94; CNY 1 to NTD 4.453.

84 -

AWEA Mechantronic Co., Ltd. Statement of Financial Assets at FVTPL - Current

December 31, 2024

Unit: NTD thousand; Number of shares: shares

Financial instruments	Unit or number of shares	Acquisition cost	Fair market value	Fair market value
			Unit price (NTD)	Total
Listed and OTC stocks P-Duke Turvo Eagle TSMC Zeng Hsing Unlisted (non-OTC) stocks AUTECH EUROPE	1,143,852 2,873,000 1,170,000 9,000 121,534 50	$ 83,830 310,751 30,377 5,013 13,539 -	91.50 282.50 31.70 1,075.00 111.00 -	$ 104,662 811,623 37,089 9,675 13,490 -
Total		$ 443,510		$ 967,539

Note: In 1996, due to value impairment and little hope of recovery of the investee company AUTECH EUROPE, all were recognized as investment losses.

AWEA Mechantronic Co., Ltd.

Statement of Net Notes Receivable

December 31, 2024

Unit: NTD thousand

			Unit: NTD thousand
Name of the customer	Summary	Amount	Remark
Company A Company B Company C Company D Company E Company F Company G Others Subtotal Less: allowance for uncollectible accounts Total	Payment for goods Payment for goods Payment for goods Payment for goods Payment for goods Payment for goods Payment for goods Payment for goods	$ 11,382 8,000 6,101 3,450 3,160 3,100 2,729 12,986	1. Those individual amounts not exceeding 5% of this item shall not be separately listed. 2. All are non-related parties
		50,908 (900)
		$ 50,008

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AWEA Mechantronic Co., Ltd.

Statement of Net Accounts Receivable

December 31, 2024

Unit: NTD thousand

			Unit: NTD thousand

Name of the customer	Summary	Amount	Remark
Company H Company I Company J Company K Company L Others Subtotal Less: allowance for uncollectible accounts Total	Payment for goods Payment for goods Payment for goods Payment for goods Payment for goods Payment for goods	$ 67,303 26,744 17,657 10,796 8,806 39,186	1. Those individual amounts not exceeding 5% of this item shall not be separately listed. 2. All are non-related parties
		170,492 (4,152)
		$ 166,340

AWEA Mechantronic Co., Ltd.

Statement of Inventories

December 31, 2024

Unit: NTD thousand

				Unit: NTD thousand

Items	Summary	Amount		Remark
		Cost	Market price
Products Raw materials Work in process Finished goods Subtotal Less: Allowance for market value decline and loss for obsolete and slow-moving inventories		$ 7,621 447,797 822,278 120,712	$ 7,597 145,233 800,209 103,617	Net realizable value Replacement cost Net realizable value Net realizable value
		$ 1,398,408 (341,752)	$ 1,056,656

Total		$ 1,056,656

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AWEA Mechantronic Co., Ltd.

Statement of Prepayments

December 31, 2024

Unit: NTD thousand


Items	Summary	Amount	Remark
Prepaid expenses Office supplies Prepayments to suppliers Excess business tax paid (or net input VAT)	Prepaid rents and insurance expenses Consumables Prepayments for domestic and foreign purchases Business tax credits	$ 5,183 18 6,318 70
Total		$ 11,589

AWEA Mechantronic Co., Ltd.

Statement of Other Current Assets

December 31, 2024

Unit: NTD thousand


Items	Summary	Amount	Remark
Temporary debits	Travel advances, etc.	$ 1,461
Other financial assets - current	Restricted bank deposit	226,849
Total		$ 228,310

AWEA Mechantronic Co., Ltd.

Statement of Financial Assets at FVOCI - Non-current December 31, 2024

Unit: NTD thousand

Financial instruments	Number of shares or units (shares)	Unit cost (NTD)	Acquisition cost	Fair market value	Fair market value
				Unit price (NTD)	Total
Listed and OTC stocks Fittech	2,991	177.66	$ 532	125.5	$ 376
Total			$ 532		$ 376

87 -

AWEA Mechantronic Co., Ltd.

Statement of Changes of Investments Using Equity Method

For the year ended December 31, 2024

Unit: NTD thousand

Name	Opening balance	Opening balance	Increases	Increases	Decreases	Decreases	Ending balance	Ending balance	Ending balance	Market price or net equityvalue	Market price or net equityvalue	Guarantee or pledge status	Remark
	Number of shares (in thousands)	Amount	Number of shares (in thousands)	Amount	Number of shares (in thousands)	Amount	Number of shares (in thousands)	Ownership (%)	Amount	Unit price	Total price
B－Way (Cayman) Co., Ltd	10,665	$ 694,302	-	$ 43,033	-	$	10,665	100.00%	$ 737,335	-	$ 737,335	None	Note 1
Yama Seiki	584	108,435	-	18,349	-		584	28.58%	126,784	-	126,784	None	Note 2
Yih Chuan	5,915	141,254	-	-	-	(5,587)	5,915	60.00%	135,667	-	135,667	None	Note 3
Huahan	667	8,278	833	10,350	-	(381)	1,500	30.00%	18,247	-	18,247	None	Note 4
Total		$ 952,269	833	$ 71,732	-	$(5,968)			$ 1,018,033		$ 1,018,033

Note 1: The share of profit or loss of subsidiaries, associates and joint ventures accounted for using equity method was NTD 11,268 thousand, and the unrealized sales profit among associates was NTD 7,312 thousand. Based on the percentage of ownership, the Company recognized an exchange difference of NTD 24,453 thousand on the translation of the financial statements of the foreign operations.
Note 2: The share of profit or loss of subsidiaries, associates and joint ventures accounted for using equity method was NTD 7,214 thousand, and the unrealized sales profit among associates was NTD 3,076 thousand. Based on the percentage of ownership, the Company recognized an exchange difference of NTD 8,059 thousand on the translation of the financial statements of the foreign operations.
Note 3: The share of profit or loss of subsidiaries, associates and joint ventures accounted for using equity method was NTD (9,006) thousand. Based on the percentage of ownership, the Company recognized an exchange difference of NTD 3,419 thousand on the translation of the financial statements of the foreign operations.
Note 4: The share of profit or loss of subsidiaries, associates and joint ventures accounted for using equity method was NTD (381) thousand.
88 -

AWEA Mechantronic Co., Ltd. Statement of Short-term Borrowings December 31, 2024

Unit: NTD thousand


Type of loan	Name of bank	Ending balance	Contract period	Interest rate	Financing amount	Pledge or guarantee	Remark
Credit loans Credit loans Credit loans Credit loans Credit loans Credit loans Credit loans Credit loans Credit loans Credit loans Credit loans Secured loans Credit loans Credit loans Credit loans Credit loans Credit loans Credit loans Credit loans	Eximbank Eximbank Eximbank Eximbank Eximbank Eximbank Eximbank Eximbank Eximbank Shin Kong Bank First Bank First Bank SCSB Land Bank of Taiwan Land Bank of Taiwan Bank of Taiwan Bank SinoPac Cathay United Bank Cathay United Bank	$ 80,000 70,000 50,000 100,000 85,000 30,000 30,000 50,000 5,000 150,000 150,000 265,000 50,000 70,000 30,000 50,000 200,000 40,000 60,000	2024.03.29 - 2025.03.28 2024.03.29 - 2025.03.28 2024.04.02 - 2025.04.02 2024.06.03 - 2025.06.03 2024.06.20 - 2025.06.20 2024.09.02 - 2025.09.02 2024.09.10 - 2025.09.10 2024.09.23 - 2025.09.23 2024.09.30 - 2025.09.30 2024.12.18 - 2025.01.17 2024.12.06 - 2025.01.03 2024.12.06 - 2025.01.03 2024.12.20 - 2025.01.20 2024.10.29 - 2025.01.24 2024.11.13 - 2025.02.05 2024.10.21 - 2025.01.17 2024.12.31 - 2025.01.07 2024.12.12 - 2025.01.10 2024.12.12 - 2025.01.10	1.8709% 1.8709% 1.8709% 1.8709% 1.8709% 1.8709% 1.8475% 1.8479% 1.8608% 1.9159% 1.9250% 1.8750% 1.8959% 1.8800% 1.8800% 1.8050% 2.0050% 1.8951% 1.8951%	$ 500,000 Same as above Same as above Same as above Same as above Same as above Same as above Same as above Same as above 350,000 450,000 Same as above 50,000 100,000 Same as above 50,000 200,000 200,000 Same as above	None None None None None None None None None None None Hsinchu Plant None None None None None None None
Total		$ 1,565,000

89 -

AWEA Mechantronic Co., Ltd.

Statement of Short-term Notes and Bills Payable December 31, 2024

Unit: NTD thousand


Items	Guarantee or acceptance agencies	Contract period	Interest rate		Amount		Remark
				Amount issued	Discount on short-term notes and bills payable	Book value
Financing commercial paper	Dah Chung Bills Finance Corp.	2024.12.13 - 2025.01.02	1.8300%	$ 80,000	$ 8	$ 79,992
						$ 79.992
Total				$ 80,000	$ 8

AWEA Mechantronic Co., Ltd. Statement of Notes Payable

December 31, 2024

Unit: NTD thousand

			Unit: NTD thousand
Name of the customer	Summary	Amount	Remark
Company M Company N Others	Payment for goods Payment for goods Payment for goods	$ 10,054 8,442 149,959	1. Those individual amounts not exceeding 5% of this item shall not be separately listed. 2. All are non-related parties
Total		$ 168,455

90 -

AWEA Mechantronic Co., Ltd. Statement of Accounts Payable December 31, 2024

Unit: NTD thousand

			Unit: NTD thousand
Name of the customer	Summary	Amount	Remark
Company O Company P Others	Payment for goods Payment for goods Payment for goods	$ 6,091 5,572 55,314	1. Those individual amounts not exceeding 5% of this item shall not be separately listed. 2. All are non-related parties
Total		$ 66,977

AWEA Mechantronic Co., Ltd.

Statement of Other Payables

December 31, 2024

Unit: NTD thousand


Items	Summary	Amount	Remark
Expenses payable Construction and equipment payable Dividends payable Employee bonus payable Remuneration payable to directors and supervisors	Salary expenses and year-end bonus Insurance expenses and pensions Others Subtotal Payments for construction and equipment Cash dividends in 2004 and 2005 Employee bonus withheld Remuneration to directors and supervisors withheld	$ 38,393 5,918 11,620
		55,931 152 486 16,000 2,750
Total		$ 75,319

91 -

AWEA Mechantronic Co., Ltd. Statement of Other Current Liabilities

December 31, 2024

Unit: NTD thousand


Items	Summary			Amount		Remark
Temporary credits Receipts under custody	Overpayments received, etc. Payroll tax received under custody, etc.			$ 95 1,007
Total				$ 1,102
	AWEA Mechantronic Co., Ltd. Statement of Net Operating Revenue For the year ended December 31, 2024 Unit: NTD thousand
Items		Quantity (sets)	Amount		Remark
Gantry vertical integrated machining center Vertical machining center (Type C) Labor income (maintenance and machining) Less: Sales return Sales discounts and allowances		62 sets 218 sets (1) set	$ 511,851 559,280 229,167 (7,035) (241)
Total			$ 1,293,022

92 -

AWEA Mechantronic Co., Ltd.

Statement of Operating Costs

For the year ended December 31, 2024

Unit: NTD thousand

	Unit: NTD thousand	Unit: NTD thousand
Items	Amount
	Subtotal	Total
Products Products at the beginning of the period Add: Incoming products in the current period Others - resale of raw materials Less: Products at the end of the period Others - Materials requisition according to work order Commodity consumption Raw materials Opening stock Add: Incoming materials in the current period Others - Incoming of R&D expenses and outsourcing work orders, etc. Less: Ending stock Others - Reclassification, inventory loss, scrap, etc. Consumption of direct raw materials Direct labour Manufacturing expenses Less: Transfer of idle costs Manufacturing cost Add: Work in process at the beginning of the period Others - Reclassification and purchases Less: Work in process at the end of period Others - Transfer of R&D expenses and outgoing of outsourced work orders, etc. Cost of finished goods Add: Finished goods at the beginning of the period Others - reclassification Less: Finished goods at the end of period Others - Outward transfer and reclassification, etc. Self-made cost of sales Income from sale of scraps Other operating cost Idle costs	$ 6,650 21,692 160,805 (7,621) (6,650)	$ 174,876 1,103,985 77,490 216,326 (45,073)
	491,146 602,044 625,993 (447,797) (167,401)
	789,272 371,007 (822,278) (655,295)
		1,527,604 (317,294)
	78,927 7,977 (120,712) (98,300)	1,210,310 (132,108)
		1,078,202 (617) (14,611) 45,152
Operatingcosts		$ 1,108,126

93 -

AWEA Mechantronic Co., Ltd. Statement of Manufacturing Expenses

For the year ended December 31, 2024

Unit: NTD thousand


Items	Summary	Amount	Remark
Salary expenses Water and electricity bills Insurance expenses Depreciations Consumables Other (Note)		$ 74,046 12,903 16,027 55,308 11,045 46,997
Total		$ 216,326

Note: Those balances not exceeding 5% of the amount of this item shall not be separately listed.

AWEA Mechantronic Co., Ltd.

Statement of Selling and Marketing Expenses

For the year ended December 31, 2024

Unit: NTD thousand


Items	Summary	Amount	Remark
Salary expenses Delivery expenses Advertising expenses Packing expenses Other (Note)		$ 33,282 13,020 6,103 23,943 36,044
Total		$ 112,392

Note: Those balances not exceeding 5% of the amount of this item shall not be separately listed.

94 -

AWEA Mechantronic Co., Ltd.

Statement of General and Administrative Expenses

For the year ended December 31, 2024

Unit: NTD thousand


Items	Summary	Amount	Remark
Salary expenses Insurance expenses Depreciations Other (Note)		$ 27,753 2,643 4,534 12,543
Total		$ 47,473

Note: Those balances not exceeding 5% of the amount of this item shall not be separately listed.

AWEA Mechantronic Co., Ltd.

Statement of Research and Development Expenses For the year ended December 31, 2024

Unit: NTD thousand


Items	Summary	Amount	Remark
Salary expenses Consumables Project fee Other (Note)		$ 37,889 26,517 10,902 17,275
Total		$ 92,583

Note: Those balances not exceeding 5% of the amount of this item shall not be separately listed.

95 -

AI assistant

AWEA — Audit Report / Information 2024

51853_rns_2024-11-13_2cd2cc76-0f00-4b67-952c-8b6afc217f5c.pdf

Independent Auditors’ Report

Audit Opinion

Basis for Opinion

Key Audit Matters

Revenue recognition

Evaluation of inventories

Other Matters - References to the Audits of Other CPAs

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

Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements

February 26, 2025

Notice to Readers

AWEA Mechantronic Co., Ltd.

Parent Company Only Balance Sheets

AWEA Mechantronic Co., Ltd.

Parent Company Only Balance Sheets

December 31, 2024 and 2023

AWEA Mechantronic Co., Ltd.

Parent Company Only Statements of Comprehensive Income

AWEA Mechantronic Co., Ltd.

AWEA Mechantronic Co., Ltd.

Parent Company Only Statements of Cash Flows

1. History and Organization

2. Approval Date and Procedures of the Financial Statements

3. Application of Newly Issued and Amended Standards and Interpretations

4. Summary of Significant Accounting Polices

(1) Statement of compliance

(6) Cash and cash equivalents

(7) Financial instruments

A. Financial assets

(12) Leases

A. Lease judgment

B. The Company as lessee

(13) Intangible assets

(14) Impairment of non-financial assets

(15) Provisions

(16) Revenue recognition

(17) Government grants

(18) Employee benefits

(19) Borrowing costs

(20) Income tax

(21) Earnings per share

(22) Segment Information

5. Significant Accounting Judgment, Estimates, and Assumptions and the Main Sources of Assumption Uncertainty

(2) Evaluation of inventories

6. Summary of Significant Accounting Titles

(6) Inventories

A. Inventory-related expenses recognized in the current period

A. Invested subsidiaries

(8) Property, plant and equipment

B. Lease liabilities

(10) Intangible assets

(16) Current provisions

C. Litigation liabilities

(17) Employee benefits

A. Defined benefit plan

(18) Share capital

(19) Capital surplus

(20) Retained earnings

(21) Other equity items

(22) Operating revenue

(B) Major sales market by geography:

(24) Other gains and losses

(27) Income tax

A. Income tax expense

(28) Earnings per share

(29) Capital management

(30) Supplemental cash flow information

7. Related Party Transactions

(2) Significant transactions with the related parties

B. Purchases

F. Notes payable

L. Current lease liabilities

M. Leases

N. Others

8. Pledged Assets

9. Significant Contingent Liabilities and Unrecognized Contract Commitments

12. Others

AWEA Audit Report / Information 2024