TSE ： 3031

Bright LED Electronics Corp.

Consolidated financial report and accountant's audit report

Year of 2025 and 2024

Company address ： 3F, No.19, Heping Rd., Banqiao Dist., New Taipei City, Taiwan 22061 Tel ： (02)2959-1090 Official website ： http://www.brtled.com

Notice to readers:

In case of any discrepancy between the English version and the Chinese version or any difference in the interpretation of the two versions, the Chinese version shall prevail.

Table of content

Items
1、Cover
2、Table of content
3、Representation letter
4、Independent auditors’ report
5、Consolidated Balance sheet
6、Consolidated Income statement
7、Consolidated Statement of change in equity
8、Consolidated Cash flow statement
9、Notes from the consolidated financial statements
(1) Company history
(2) The date and procedure for the approval of the financial statements
(3) Application of newly issued and revised standards and explanations
(4) Summary of material accounting policies
(5) Major sources of uncertainty in significant accounting judgments, estimates
and assumptions
(6) Explanation of important accounting items
(7) Related party transactions
(8) Pledged assets
(9) Significant contingent liabilities and unrecognized contractual commitments
(10) Loss from major disaster
(11) Significant post-period matters
(12) Other
(13) Disclosure of Matters in Notes
Information with regard to major transactions
Re-investment business related information
Information with regard to investment in China
Major shareholders information
(14) Department information Page

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Items 1`、`Cover 2`、`Table of content 3`、`Representation letter 4`、`Independent auditors’ report 5`、`Consolidated Balance sheet 6`、`Consolidated Income statement 7`、`Consolidated Statement of change in equity 8`、`Consolidated Cash flow statement 9`、`Notes from the consolidated financial statements (1) Company history (2) The date and procedure for the approval of the financial statements (3) Application of newly issued and revised standards and explanations (4) Summary of material accounting policies (5) Major sources of uncertainty in significant accounting judgments, estimates and assumptions (6) Explanation of important accounting items (7) Related party transactions (8) Pledged assets (9) Significant contingent liabilities and unrecognized contractual commitments (10) Loss from major disaster (11) Significant post-period matters (12) Other (13) Disclosure of Matters in Notes Information with regard to major transactions Re-investment business related information Information with regard to investment in China Major shareholders information (14) Department information	Page
	1 2 8 9 10 11 12 12 12 14 31 32 60 61 61 61 61 62 62 67

Representation Letter

The entities that are required to be included in the consolidated financial statements of Bright LED Electronics Corp. as of and for the year ended December 31, 2025 (from January 1, 2025 to December 31, 2025), under the Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises are the same as those included in the consolidated financial statements prepared in conformity with the International Financial Reporting Standard 10, “Consolidated Financial Statements.”, which is recognized by Financial Supervisory Commission. In addition, the information required to be disclosed in the consolidated financial statements is included in the consolidated financial statements. Consequently, Bright LED Electronics Corp. and Subsidiaries do not prepare a separate set of consolidated financial statements.

Yours Sincerely,

Bright LED Electronics Corp.

Tsung-Jen Liaw Chairman

March 12, 2026

INDEPENDENT AUDITORS’ REPORT

(Consolidated Financial Statements)

The Board of Directors and Shareholders

Bright LED Electronics Corp.

Opinion

We have audited the accompanying consolidated financial statements of Bright LED Electronics Corp and subsidiaries. (the “BRTLED group”), which comprise the consolidated balance sheets as of December 31, 2025 and 2024, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the consolidated financial statements, including a summary of significant accounting policies.

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

Basis for Opinion

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

Key Audit Matters

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

Inventory valuation

For details of accounting policies, accounting estimations and assumptions, and related disclosures of inventory valuation, please refer to Notes 4 (8), 5 (2) and 6 (4) of the Company’s consolidated financial statements.

The description of key audit matter:

The BRTLED group’s amount of inventories is shown as the lower of cost and net realizable value. Because determining the slow moving inventory loss involves subjective judgment on individual assessment of each category of inventory and its idle days, inventory valuation is one of the key audit matters that we conducted.

The main audit procedures of the accountant for the above key audit items include obtaining the inventory depreciation and inventory aging data at the end of the year, comparing the difference between the actual net realizable value and the book value, and evaluating the reasonableness of the management level for the ratio of the inventory aging report which includes the implementation of the audit sampling, procedure tests for correctness of the inventory aging report, and comparison of the difference between the amount of allowance made in the previous year and the actual write-off for evaluating whether the policy of setting aside the allowance for inventory depreciation and losses of idle inventory is appropriate.

Revenue Recognition

For details of accounting policies and related disclosures of revenue recognition, please refer to Notes 4 (13) and 6 (17) of the Company’s consolidated financial statements.

The description of key audit matter:

The sources of the major operating revenue of the BRTLED group are research and development, productions, and sales of light-emitting diodes indicators and display…etc and contracts of LED display, LED lighting and related operating applications/systems’ constructions. Where the BRTLED group’s revenues generated from is the concerned factor for this report users or recipients. Hence, revenue recognition is considered as one of the key audit matters.

The main audit procedures for the above-mentioned key audit matters include complying with the requirements of the standards, understanding of operations and industry characteristics, evaluating the appropriateness of BRTLED Group's accounting policy selection; testing the design and implementation for the effectiveness of internal control systems related to revenue; understanding The form and transaction conditions of BRTLED Group's operating income, etc. The accountants evaluated whether the accounting policies for revenue recognition (including sales returns and discounts) are handled in accordance with the relevant official announcements and analyzed the income by examining major customers and new customers in order to assess whether there is any major abnormality. Also, we reviewed the new major contracts in the current period and tested the sales samples for a period

before and after the end of the year according to their delivery conditions to assess the correctness of the revenue recognition period. The accounting project revenue is recognized according to the degree of completion of the performance obligations whether the ratio is reasonable. Through examining the list of the top ten customers and new customers, to find out the similarities and differences between their trading conditions compared to general customers. Selecting an appropriate sample size of sales invoices to confirm that all payments have been received and correct and pay attention to whether the remitter is consistent with the sales target in order to evaluate the authenticity of the income.

Account Receivables Valuation

For details of accounting policies of account receivables valuation, please refer to Notes 4 (7) financial instruments of the BRTLED group’s consolidated financial statements; for details of accounting estimates and accounting assumption of uncertainty of account receivables valuation, please refer to Notes 5 (1) of the BRTLED group’s consolidated financial statements; for details of explanation on account receivables valuation, please refer to 6 (3) of the BRTLED group’s consolidated financial statements.

The description of key audit matter:

Account receivables of BRTLED group are distributed among customers. The account receivables valuation allowance is calculated according to the expected percentage of credit losses which takes each time interval of overdue of account receivables and adjustments on prospective factors into consideration when estimating expected credit losses of account receivables. The management will, according to the report date, re-update new expected losses within each time interval of overdue and perform individual assessments on major overdue and payment disputes; hence, it involves subjective judgment from the managers and it is considered as one of the key audit matters.

The main audit procedures for the above-mentioned key audit matters include evaluating reasonableness of the percentage of expected credit losses and determining whether there is a major irregularity by comparing the turnover rate and turnover days of accounts receivables with the company’s credit policy and other related information; obtaining the aging schedule, verifying total amount from the aging schedule with general ledger and confirming integrity and accuracy of the aging schedule. Finally, ascertaining whether the bills and accounts receivables in dispute or involved in litigation have been properly handled and checking whether the customers’ receivables dues more than three months have been properly evaluated and checking whether there is a risk of transferring to other receivables.

Other Matter

We have also audited the consolidated financial statements of Bright LED Electronics Corp. as of and for the years ended December 31, 2025 and 2024 on which we have issued an unmodified opinion.

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

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

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

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

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

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

As part of an audit in accordance with the 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 consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures

that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

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

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the year ended December 31, 2025 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the

adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audit resulting in this independent auditors’ report are Mr. Hui-Ji Kou and Ms. Hsin-Yi Kuo.

KPMG TAIWAN Republic of China

March 12, 2026

Notice to Readers

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

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

Bright LED Electronics Corp. and Subsidiaries

Consolidated Balance Sheets

December 31, 2025 and 2024

(In Thousands of New Taiwan Dollars)

Dec 31, 2025 Amount % $ 891,965 25 203,752 6 224,222 6 283,539 8 109,230 3 167,336 5 21,170 1 76,602 2	Dec 31, 2025	% 2 - 4 1 4 1 -	Dec 31, 2024 Amount % $ 60,000 2 21,561 1 170,678 5 17,710 - 116,304 3 21,741 1 13,741 -	Dec 31, 2024 Amount % $ 60,000 2 21,561 1 170,678 5 17,710 - 116,304 3 21,741 1 13,741 -
	Amount $ 60,000 1,452 146,017 46,869 135,397 34,738 14,639		Amount $ 60,000 21,561 170,678 17,710 116,304 21,741 13,741
	439,112	12	421,735	12
1,977,816 56
	39,567 12,710 47,589	1 - 2	50,497 13,997 50,741	1 - 2
667,671 19 317,460 9 335,145 9 97,447 3 18,419 1 6,862 - 121,901 3
	99,866	3	115,235	3
	538,978	15	536,970	15
	1,732,032 439,039 804,344 (52,201)	49 12 23 (1)	1,732,032 395,201 789,447 46,534	48 11 22 1
1,564,905 44 $ 3,542,721 100
	2,923,214	83	2,963,214	82
	80,529 3,003,743	2 85	96,916 3,060,130	3 85
	$ 3,542,721	100	$ 3,597,100	100

Chairman：Tsung-Jen Liaw

CEO：Tsung-Jen Liaw

Accounting Manager：Mei-Lien Lin

Bright LED Electronics Corp. and Subsidiaries

Consolidated Statements of Comprehensive Income

From January 1 to December 31, 2025 and 2024

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

2025		2024
Amount	%	Amount
(7,814) (1) - -
(7,814) (1)
(97,556) (9)
$ 88,298 7
$ 188,618 16 (2,764) -
$ 185,854 16
$ 90,913 8 (2,615) (1)
$ 88,298 7
$ 1.09
$ 1.08

Chairman：Tsung-Jen Liaw

CEO：Tsung-Jen Liaw

Accounting Manager：Mei-Lien Lin

Bright LED Electronics Corp. and Subsidiaries

Consolidated Statements of Changes in Equity

From January 1 to December 31, 2025 and 2024

(In Thousands of New Taiwan Dollars, Except Dividends per Shares)

Equity Attributable to Shareholders of the Parent

Capital Stock Capital Surplus	Retained earnings Others Legal reserve Unappropriated earnings Total Exchange Differences on translations Unrealized gain/loss on assets at fair value through other comprehensive income Total Total attributable to shareholders of the parent Non-controlling interests Total Equity	Retained earnings Others Legal reserve Unappropriated earnings Total Exchange Differences on translations Unrealized gain/loss on assets at fair value through other comprehensive income Total Total attributable to shareholders of the parent Non-controlling interests Total Equity
$1,732,032 395,335	340,138 396,776 736,914 (220,578) 302,587 82,009 2,946,290	96,829 3,043,119
- - - -	- 188,712 188,712 - - - 188,712 - 2,384 2,384 33,139 (68,640) (35,501) (33,117)	(3,321) 185,391 3,408 (29,709)
- -	- 191,096 191,096 33,139 (68,640) (35,501) 155,595	87 155,682
- - - - - (327) - 193 - -	18,194 (18,194) - - - - - - (138,563) (138,563) - - - (138,563) - - - - - - (327) - - - - - - 193 - - - 26 - 26 26	- - - (138,563) - (327) - 193 - 26
$1,732,032 395,201	358,332 431,115 789,447 (187,413) 233,947 46,534 2,963,214	96,916 3,060,130
- - - -	- 188,618 188,618 - - - 188,618 - 1,030 1,030 (7,963) (90,772) (98,735) (97,705)	(2,764) 185,854 149 (97,556)
- -	- 189,648 189,648 (7,963) (90,772) (98,735) 90,913	(2,615) 88,298
- - - - - 43,798 - 40 - - - -	19,110 (19,110) - - - - - - (173,203) (173,203) - - - (173,203) - - - - - - 43,798 - - - - - - 40 - (1,548) (1,548) - - - (1,548) - - - - - - -	- - - (173,203) - 43,798 - 40 - (1,548) (13,772) (13,772)
$ 1,732,03 439,039	377,442 426,902 804,344 (195,376) 143,175 (52,201) 2,923,214	80,529 3,003,743

Chairman：Tsung-Jen Liaw

CEO：Tsung-Jen Liaw

Accounting Manager：Mei-Lien Lin

Bright LED Electronics Corp. and Subsidiaries

Consolidated Statements of Cash Flows

From January 1 to December 31, 2025 and 2024

(In Thousands of New Taiwan Dollars)

2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES： Income before tax $ 250,601 $ 229,474 Adjustments： Depreciation and amortization expenses 56,192 59,032 `E`xpected credit impairment losses 1,325 (253) Interest expenses 3,489 3,365 Interest income (34,469) (7,327) Dividend income (49,194) (59,388) Net interests in financial assets measured at fair value through profit or loss (3,024) (2,407) Share of profit/loss of associates accounted for using equity method (52,185) (45,922) Investments Accounted for Using Equity Method - (2,525) Loss on modification of lease (25) (1,812) Total adjustments (77,891) (57,237) Changes in operating assets and liabilities: Decrease (increase) in contract assets 43,941 45,846 Decrease in notes and accounts receivable (including related parties) (increase) 44,564 49,578 Decrease (increase) in inventories (2,644) 4,306 Decrease in other current assets 6,362 853 Decrease in other financial assets-current (increase) (14,227) 17,958 Increase in contract liabilities (20,109) 21,561 Increase in notes and accounts payable (including related parties) (decrease) 4,498 (15,435) Increase in other payables and other current liabilities (decrease) 19,133 2,793 Increase in defined benefit liabilities (decrease) - (2,397) Total 3,627 67,826 Cash generated from operations 254,228 297,300 Interest received 34,333 6,908 Interest paid (3,489) (3,365) Income tax paid (48,398) (52,063) Net cash generated by operating activities 236,674 248,780 CASH FLOWS FROM INVESTING ACTIVITIES`：` Acquisition of financial assets at fair value through profit or loss (90,000) (100,000) Financial Assets Measured at Fair Value through Profit or Loss 91,846 101,776 Refund of capital reduction of financial assets measured at fair value through other comprehensive income 45,775 34,228 Acquisition of subsidiaries (15,320) - Investments Accounted for Using Equity Method - 3,423 Acquisition of property, plant and equipment (11,197) (16,342) Increase in refundable deposits 568 4,042 Decrease in other financial assets`－`current (increase) (14,584) (51,143) Decrease in other assets`－`noncurrent (increase) 93 (1,555) Dividends received 69,333 82,540 Net cash used in investing activities 76,514 56,969 CASH FLOWS FROM FINANCING ACTIVITIES: Principal repayment of lease (13,825) (16,223) Increase (decrease) in other noncurrent liabilities (3,152) (6,357) Cash dividends paid (173,203) (138,563) Net cash used in financing activities (190,180) (161,143) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND EQUIVALENTS (7,872) 19,970 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 115,136 164,576 CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 776,829 612,253 CASH AND CASH EQUIVALENTS AT END OF YEAR $ 891,965 $ 776,829	2025	2024 $ 229,474
	$ 250,601
	56,192 59,032 1,325 (253) 3,489 3,365 (34,469) (7,327) (49,194) (59,388) (3,024) (2,407) (52,185) (45,922) - (2,525) (25) (1,812)
	(77,891) (57,237)
	43,941 45,846 44,564 49,578 (2,644) 4,306 6,362 853 (14,227) 17,958 (20,109) 21,561 4,498 (15,435) 19,133 2,793 - (2,397)
	3,627 67,826
	254,228 297,300 34,333 6,908 (3,489) (3,365) (48,398) (52,063)
	236,674 248,780
	76,514 56,969
	(13,825) (16,223) (3,152) (6,357) (173,203) (138,563)
	(190,180) (161,143)
	(7,872) 19,970
	115,136 164,576
	776,829 612,253
	$ 891,965 $ 776,829

Chairman：Tsung-Jen Liaw

CEO：Tsung-Jen Liaw

Accounting Manager：Mei-Lien Lin

Bright LED Electronics Corp. and Subsidiaries Notes from consolidated financial statements

Year 2025 and 2024

(Unless otherwise specified, all amounts are in units of NT $thousand)

1. Company history

Bright LED Electronics Corp. (hereinafter referred to as the "Company") was established in June 1981. The company and its subsidiaries (hereinafter also referred to as "consolidated company") are principally engaged in the manufacturing and sales of light-emitting diode, indicator lights, displays and other extended products and undertaking engineering projects that provide indicator lights, displays and related supporting engineering projects.

2. The date and procedure for the approval of the financial statements

This consolidated financial statement was approved by the board of directors on March 12, 2026.

3. Application of newly issued and revised standards and explanations

(1) The impact of the newly issued and revised standards and interpretations approved by the Financial Regulatory Commission has been adopted
The company has applied the following newly revised International Financial Reporting
Standards since January 1, 2025 and has no significant impact on parent company only financial report.
Amendment to International Accounting Standards (IAS) No. 21 “I Lack of convertibility”
Amendments to International Financial Reporting Standards (IFRS) 9 and IFRS 7: "Amendments to the Classification and Measurement of Financial Instruments"—Application guidance regarding Section 4.1 of IFRS 9 and related disclosure requirements of IFRS 7.
(2) The company has applied the following newly revised International Financial Reporting Standards since Jan 01, 2026 and has no significant impact on parent company only financial report.
International Financial Reporting Standard 17 "Insurance Contracts" and Amendments to International Financial Reporting Standard 17.
Amendments to International Financial Reporting Standard 9 and 7, "Amendments to the Classification and Measurement of Financial Instruments," and application guidance concerning Sections 3.1 and 3.3 of IFRS 9 and related disclosure requirements of IFRS 7.
Annual improvements to International Financial Reporting Standards and Accounting Standards.

Amendments to International Financial Reporting Standard 9 and International Financial Reporting Standard 7: "Contracts involving dependence on natural electricity"

[(3) The company expects that the following other newly issued or revised standards that have not ] yet been approved by the Financial Supervisory Commission may have a significant impact on the parent company only financial reports

Newly issued or revised

standards Main revision Effective date Amendments to The new standard introduces three International Financial categories of income and expenses, two 2027/01/01 Reporting Standards subtotal items in the statement of profit (IFRS) 18 Presentation and or loss, and a single note on Disclosure in Financial management's performance Statements measurement. These three modifications and enhancements provide guidance on how to segment information in the financial statements, establishing a foundation for providing users with better and more consistent information. These changes will impact all companies.

• More Structured Income Statement: Under the current standards, companies use different formats to present their operating results, making it difficult for investors to compare financial performance across companies. The new standard adopts a more structured income statement, introducing a newly defined "Operating Profit" subtotal, and requires that all income and expenses be categorized into three new distinct types according to the company’s core operating activities.

• Management Performance Measures (MPM): The new standard introduces the definition of Management Performance Measures (MPM) and requires companies to disclose, in a single note to the financial statements, an explanation for each performance measure. This includes why the measure provides useful information, how it is calculated, and how it is reconciled with the amounts recognized under International Financial Reporting Standards (IFRS).

• More Detailed Information: The new standard includes enhanced guidance on how companies should group

information in the financial statements. This includes guidance on whether certain information should be presented in the primary financial statements or disclosed in greater detail in the notes.

The Company is continuing to assess the impact of the above standards and interpretations on the Company's financial position and operating results. The relevant impact will be disclosed when the assessment is completed.

The company expects that the following other newly issued or revised standards that have not yet been approved by the Financial Supervisory Commission will not have a significant impact on the parent company only financial reports

Amendments to International Financial Reporting Standard 10 and International Accounting Standard 28: "Sale or investment of assets between an investor and its affiliates or joint ventures".
International Financial Reporting Standard 19 "Subsidiaries without Public Liability: Disclosure" and Amendments to International Financial Reporting Standard 19.
Amendment to International Accounting Standard 21: "Conversion to a currency with high inflation".

4. Summary of material accounting policies

A summary of the material accounting policies adopted in this consolidated financial report is as follows. The following accounting policies have been consistently applied to all presentation periods in this consolidated financial report.

(1) Compliance statement: This consolidated financial report is prepared in accordance with the "Regulations Governing the Preparation of Financial Reports by Securities Issuers" and the Financial Regulatory Commission approved and issued effective International Financial Reporting Standards, International Accounting Standards, Interpretations and Interpretation Notice (hereinafter referred to as "International Financial Reporting Standards Recognized by the Financial Regulatory Commission").
(2) Preparation basis:
Basis of measurement: Except for the following important items in the balance sheet, the rest items in consolidated financial report are prepared on the basis of historical cost:
Financial assets measured at fair value through profit and loss measured at fair value;
Financial assets at fair value measured by fair value through other comprehensive gains and losses
The net defined benefit liability is measured by subtracting the present value of defined benefit obligations from the fair value of pension plan assets.
Functional currency and presentation currency: Each entity of the consolidated company uses the currency of their main economic environment in which its operations are located as

its functional currency. This consolidated financial report is expressed in the company’s functional currency, New Taiwan Dollar. All financial information expressed in New Taiwan Dollars is in thousands of New Taiwan Dollars.

(3) Consolidation basis:
Principles for preparing consolidated financial reports

The preparation of the consolidated financial report includes the company and entities controlled by the company (i.e. subsidiaries).

Starting from the day when control of the subsidiary is obtained, its financial report shall be included in the consolidated financial report until the day when control is lost. The transactions, balances, and any unrealized gains and expenses between the merged companies have been completely eliminated when preparing the consolidated financial report. The total consolidated profit and loss of the subsidiary is attributable to the owners and non-controlling interests of the company, even if the non-controlling interests become the loss balance.

The financial report of the subsidiary company has been adjusted appropriately to make its accounting policy consistent with the accounting policy used by the consolidated company.

Changes in the ownership and equity of the subsidiary by the consolidated company that did not result in the loss of control of the subsidiary are treated as an equity transaction with the owner. The difference between the adjustment amount of the non-controlling equity and the fair value of the consideration paid or received is directly recognized in the equity and attributed to the owner of the company.

Subsidiaries included in this consolidated financial statement

uity and attributed to the owner of the company. bsidiaries included in this consolidated financial statement
Investment company name Subsidiaries’ company name Nature of businesses	% of equity held
	2025/12/31 2024/12/31
The company Wanhui Enterprise Co., Ltd. (HK) Investment holding and trading and selling of LED components, displays and electronic parts The company KoBrite Corp. (KoBrite) Investment holding The company Lisheng International Industrial Co., Ltd. (Lisheng International) Investment holding The company KoBrite Taiwan corporation (Taiwan) LED chip and LED-related product manufacturing and	100% 100% 100% 93% 60% 60% 100% - %

		assembly, lighting
		equipment construction
		projects, etc.
The company	Bright Crystal Company Limited	Investment holding		80%	-	%
	(HK)
Wanhui	DongGuan Bright LED Electronics	Manufacturing and	100%		100%
Enterprise Co.,		assembling LED
Ltd. (HK)		components and
		extended products
KoBrite	KoBrite DongGuan corporation	producing and	100%		100%
	(DongGuan)	processing LED die
KoBrite	KoBrite Taiwan corporation	LED chip and	-	%	100%
	(Taiwan)	LED-related product
		manufacturing and
		assembly, lighting
		equipment construction
		projects, etc.
KoBrite	Bright Crystal Company Limited	Investment holding	-	%		80%
	(HK)
HK Bright	HeNan Bright Crystal Company	Production and sales of	100%		100%
Crystal	(HeNan Bright Crystal)	high-quality artificial
		crystals and finished
		LED lighting and import
		and export business
Lisheng	DongGuan Bright Rise Electronic	PCB processing	100%		100%
International	Co. Ltd.

Note: In order to restructure the group's organizational structure, on January 1, 2026:

(1) Increased its shareholding in "KoBrite" to 100%.
(2) "KoBrite" sold all of its 100% owned " KoBrite Taiwan corporation " and 80% owned
" Bright Crystal Company Limited (HK)" to the Company.
Subsidiaries not included in the consolidated financial statement: N/A
(4) Foreign currency
Foreign currency transaction

Foreign currency transactions are converted into functional currencies at the exchange rate on the transaction date. At the end of each subsequent reporting period (hereinafter referred to as the reporting day), foreign currency monetary items are converted into functional currencies at the exchange rate on that day. Foreign currency non-monetary items measured at fair value are converted to functional currency at the exchange rate on the day when the fair value is measured, and foreign currency non-monetary items measured at historical cost are converted at the exchange rate on the transaction date. Foreign currency exchange differences are usually recognized in income, but the following situations are recognized in other comprehensive gain and loss:

Designated as equity instruments measured at fair value through other comprehensive gains and losses;
Financial liabilities designated as net investment hedging by foreign operating institutions are within the effective scope of hedging; or
Qualified cash flow hedging is within the effective range of hedging.
Foreign operating institution

The assets and liabilities of foreign operating institutions, including the goodwill and fair value adjustments generated during the acquisition, are converted into New Taiwan dollars based on the exchange rate on the reporting date; income and expense items are converted into New Taiwan dollars based on the current average exchange rate. The resulting exchange differences are recognized as other comprehensive gains and losses. When disposing a foreign operating institution which results in loss of control, joint control or significant influence, the accumulated exchange differences related to the foreign operating institution are fully reclassified as gains or loss. When partly disposing investments in affiliated companies or joint ventures involving foreign operating institution, the relevant accumulated exchange differences will be reclassified to other comprehensive gains and loss on a pro rata basis.

For monetary receivables or payables from foreign operating institutions, if there is no settlement plan and it is impossible to repay them in the foreseeable future, the foreign currency exchange gains and losses shall be regarded as the net investment of the foreign operating institution and is classified in other comprehensive gains and losses.
(5) Classification criteria for distinguishing between current and non-current assets and liabilities

Assets that meet one of the following conditions are classified as current assets, and all others are classified as non-current assets:

Expect to realize the asset in its normal business cycle, or intend to sell or consume;
Hold the asset primarily for trading purposes;
Expected to be realized within twelve months after the reporting period; or
Asset is cash or cash equivalents unless there are other restrictions on the asset being

exchanged or used to settle a liability at least twelve months after the reporting period. Liabilities that meet one of the following conditions are classified as current liabilities, and all others are classified as non-current liabilities:

Expect to settle the liability during the normal operating cycle;
Hold the liability primarily for trading purposes;
Expect to repay the liability that is due within twelve months after the reporting period;

or

Liability that does not have the right to unconditionally defer the settlement period to at least twelve months after the reporting period. The terms of the liability, which may be settled by the issuance of equity instruments based on the choice of the counterparty, does not affect its classification.
Other

The company also engages in project planning, design and construction contracting with an operating cycle of approximately five to seven years. Such assets and liabilities related to the contracting business will be classified as current or non-current based on the operating cycle.

(6) Cash and cash equivalent

Cash includes cash on hand and demand deposits. Cash equivalent refers to a short-term and highly liquid investment that can be converted into fixed cash at any time with little risk of value changes. Term deposits that meet the aforementioned definition and whose holding purpose is to meet short-term cash commitments rather than investment or other purposes are listed in cash equivalents.

(7) Financial instrument
Financial assets:

Financial assets at initial recognition are classified as: financial assets measured at amortized cost, financial assets measured at fair value through other comprehensive gain or loss, and financial assets measured at fair value through profit or loss. The company only reclassifies all affected financial assets from the first day of the next reporting period when changing the business model for managing financial assets.

Financial assets measured at amortized cost

When financial assets meet the following conditions at the same time and are not designated to be measured at fair value through profit and loss, they are measured at amortized cost:

The financial asset is held under the business model for the purpose of collecting contractual cash flow.
The contract terms of the financial asset generate cash flow on a specific date, which is entirely the interest on the payment of the principal and the amount of principal in circulation.

These assets are subsequently measured by adding or subtracting the accumulative amortization amount calculated using the effective interest method to the originally recognized amount, and adjusting the amortized cost of any allowance loss. Interest income, foreign currency exchange gains and losses, and impairment losses are recognized in profit and loss. When delisting, the profit or loss is included into income.

Financial assets measured at fair value through other comprehensive gains and losses When debt instrument for investment meets the following conditions at the same time and is not designated as measured at fair value through income, it is measured at fair value through other comprehensive gains and losses:
The financial asset is held under the business model for the purpose of collecting contractual cash flow and selling.
The contract terms of the financial asset generate cash flow on a specific date, which is entirely the interest on the payment of the principal and the amount of principal in circulation.

At the time of initial recognition, the company can make an irrevocable choice which is to report subsequent changes in the fair value of equity instrument investments that are not held for trading in other comprehensive income. The aforementioned choices are made on a tool-by-tool basis.

Investments, which are equity instruments, are subsequently measured at fair value. Dividend income (unless it clearly represents the recovery of part of the investment cost) is recognized in income. The remaining net gains or losses are recognized as other comprehensive gains and losses and are not reclassified to income.

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

Financial assets measured at fair value through income.

Financial assets other than those measured at amortized cost or at fair value through other comprehensive gains and losses are measured at fair value through income, including derivative financial assets. The company intends to sell accounts receivable immediately or in the near future, which is measured at fair value through profit and loss, but is included under accounts receivable. At the time of initial recognition, in order to eliminate or significantly reduce the improper accounting ratio, the company has to irrevocably designate financial assets that could meet the criteria for measuring at amortized cost or at fair value through other comprehensive gains and losses as at fair value through income.

These assets are subsequently measured at fair value, and their net profit or loss (including any dividends and interest income) is recognized as profit or loss.

Impairment of financial assets

The company focuses on financial assets measured at amortized cost (including cash

and cash equivalents, financial assets measured at amortized cost, notes receivable and accounts receivable, other receivables, deposit deposits and other financial assets). Assets, etc.), debt instrument investments measured at fair value through other comprehensive gains and losses, and expected credit losses of contract assets to recognize allowance losses.

The following financial assets are measured by the amount of expected credit losses for twelve months, and the rest are measured by the amount of expected credit losses during the duration:

•The credit risk of the judgment debt securities at the reporting date is low; and
•The credit risk of other debt securities and bank deposits (that is, the risk of default in the expected lifetime of financial instruments) has not increased significantly since initial recognition.

The allowance for losses on accounts receivable and contract assets is measured by the amount of expected credit losses during the duration.

When determining whether the credit risk has increased significantly since the initial recognition or not, the company considers reasonable and verifiable information (which can be obtained without excessive cost or investment), including qualitative and quantitative information, and based on the company’s historical experience, credit assessment and forward-looking information for analysis.

If the contract payment is overdue, the company assumes that the credit risk of financial assets has increased significantly.

If the borrower is unlikely to perform its credit obligations and pay the full amount to the company, the company considers that the financial asset has breached the contract. Expected credit loss during the lifetime refers to the expected credit loss arising from all possible defaults during the expected lifetime of a financial instrument.

Twelve-month expected credit losses refer to expected credit losses arising from possible defaults of financial instruments within twelve months after the reporting date (or a shorter period, if the expected duration of the financial instrument is shorter than twelve months).

The company’s longest period for expected credit losses is the company’s longest contract period during which the company is exposed to credit risk.

Expected credit loss is the probability-weighted estimate of the credit loss during the expected life of the financial instrument. Credit loss is measured by the present value of all short-term cash receipts, that is, the difference between the cash flow that the company can receive in accordance with the contract and the cash flow that the company expects to receive. Expected credit losses are discounted at the effective interest rate of financial assets.

On each reporting date, the company evaluate whether there is credit impairment

for financial assets measured at amortized cost and debt securities measured at fair value through other comprehensive gains and losses. When one or more events that have an adverse effect on the estimated future cash flow of a financial asset have occurred, the financial asset has been credit-impaired. Evidence that financial assets have been credit-impaired includes observable information about the following matters:

Major financial difficulties of the borrower or issuer
Breach of contract, such as delay or overdue
Due to economic or contractual reasons related to the borrower’s financial difficulties, the company gives the borrower a concession which the company woudn’t considered;
The borrower is likely to file for bankruptcy or other financial reorganization; or
Due to financial difficulties, the active market for this financial asset disappears.

The allowance loss for financial assets measured at amortized cost is deducted from the asset’s book value. Through other comprehensive gains and losses, the fair value of the debt instrument for investment is measured by adjusting the income and recognized in other comprehensive gains and losses (without reducing the asset's book value).

When the company cannot reasonably expect the recovery of financial assets as a whole or part of it, the company directly reduces the total book value of its financial assets. For corporate accounts, the company individually analyzes the timing and amount of write-off based on whether it is reasonably expected to be recoverable. The company expects that the amount of written-off will not be materially reversed. However, financial assets that have been written off can still be enforced to comply with the company's procedures for recovering overdue amounts.

Delisting of financial assets

The company only terminates the contractual rights from the cash flow of the asset, or the financial asset has been transferred and almost all the risks and rewards of the asset ownership have been transferred to other companies, or almost no ownership has been transferred or retained and not kept under the control of the financial asset, the financial asset is delisted.

If the company signs a transaction to transfer financial assets that still retains all or almost all risks and rewards of ownership of the transferred assets, it will continue to be recognized on the balance sheet.

Financial liabilities and equity instruments:
Classification of liabilities or equity

The debt and equity instruments issued by the company are classified as financial liabilities or equity based on the substance of the contractual agreement and the definition of financial liabilities and equity instruments.

Equity transaction

An equity instrument refers to any contract that recognizes the remaining equity of the

consolidated company after deducting all its liabilities from its assets. The equity instruments issued by the company are recognized at the amount obtained after deducting the cost of direct issuance.

Treasury stock

When repurchasing the equity instruments recognized by the company, the consideration paid (including directly attributable costs) is recognized as a reduction in equity. The repurchased shares are classified as treasury stock. The received amount of subsequent sales or re-issuance of treasury stocks is recognized as an increase in equity and the surplus or loss incurred by the transaction will be recognized as capital reserve or retained surplus (if the capital reserve is insufficient to offset).

Financial liabilities

Financial liabilities are classified as amortized cost or measured at fair value through profit and loss. If financial liabilities are held for trading, derivatives, or designated at the time of initial recognition, they are classified as measured at fair value through income. Financial liabilities measured at fair value through income are measured at fair value, and its related net profits and losses, including any interest expenses, are recognized in income.

Other financial liabilities are subsequently measured at the cost after amortization using the effective interest method. Interest expenses and gains and losses from exchange are recognized in income. Any profit or loss at the time of exclusion is also recognized in income.

Delisting of financial liabilities

The company delists financial liabilities when contractual obligations have been fulfilled, cancelled or expired. When the financial liability terms are modified and there is a significant difference in the cash flow of the liabilities after the modification, the original financial liabilities will be delisted and the new financial liabilities will be recognized at fair value based on the modified terms.

When delisting financial liabilities, the difference between its book value and the total consideration paid or payable (including any transferred non-cash assets or liabilities assumed) is recognized as income.

Offset between financial assets and liabilities

Financial assets and financial liabilities are only offset when the company currently has legally enforceable rights to offset and intends to settle on a net amount or realize assets and liquidate liabilities at the same time. Such offset will be expressed on the balance sheet as a net amount.

(8) Inventory

Inventory is measured by the lower of cost and net realizable value. Cost includes the acquisition, production or processing costs and other costs incurred to bring inventory to the

available location and status. Such inventory is calculated by the weighted average method. The cost of finished goods and work-in-progress inventory includes manufacturing expenses that are amortized in proportion to normal production capacity.

Net realizable value refers to the estimated selling price under normal operations minuses the estimated costs required to complete the project and the estimated costs required to complete the sale.

(9) Investment-related enterprises

Affiliated companies are those companies that have significant influence over their financial and operating policies but are not controlled or jointly controlled.

The consolidated company shall adopt the equity method to deal with the equity of the related companies. Under the equity method, the original acquisition is recognized based on cost, and the investment cost includes the cost of the transaction. The carrying amount of an investment-related enterprise includes the goodwill identified at the time of the original investment, less any accumulated impairment losses.

The consolidated financial statement includes from the date of significant influence to the date of loss of significant influence. After adjustments to the consistency of the consolidated company's accounting policies, the consolidated company recognizes the profit and loss of the investment-related enterprise and other amount of comprehensive profit and loss. When the related company's equity changes in non-profit and loss and other comprehensive profit and loss do not affect the shareholding ratio of the consolidated company, the consolidated company will be recognized as a capital reserve according to the shareholding ratio.

The unrealized benefits and losses arising from the exchange between the consolidated company and the affiliated company shall be recognized in the enterprise's financial statements only within the scope of the non-related investor's interest in the affiliated enterprise.

When the consolidated company should recognize the proportion of the affiliated company’s loss equal to or exceeds its equity in the affiliated company, it will stop recognizing its loss, but only when statutory obligations, deductions or payments have been made on behalf of the invested company within the scope, recognize additional losses and related liabilities.

(10) Property, plant, and equipment

Recognition and measurement

Property, plant and equipment items are measured by cost (including capitalized borrowing costs) less accumulated depreciation and any accumulated impairment.

When the major components of property, plant and equipment have different durability, they are treated as separate items (main components) of property, plant and equipment. The property, plant and equipment gains or loss by disposal is recognized in income.

Follow-up costs

Subsequent expenditures are only capitalized when their future economic benefits are likely to flow into the consolidated company.

Amortization

Depreciation is calculated based on the cost of assets minus the residual value, and the straight-line method is recognized in profit or loss within the estimated useful life of each component.

The land is not subject to depreciation.

The estimated service life of the current period and the comparative period is as follows:

(1) Housing and construction: 2 ~ 55 years
(2) Machine equipment: 2 ~ 8 years
(3) Others: Except that lease improvements are listed according to the lease term, the rest are 2 to 8 years.

The consolidated company reviews the depreciation method, durability, and residual

value on each reporting day and makes appropriate adjustments when necessary.

(11) Lease
Lease judgment

The consolidated company evaluates whether the contract is a lease or contains a lease on the establishment date. If the contract transfers control over the use of the identified asset for a period of time in exchange for consideration, the contract is a lease or contains a lease. In order to evaluate whether the contract is a lease, the company evaluates the following items:

(1) The contract involves the use of an identified asset. The identified asset is specified in the contract or implied by the time when it is available for use. Its entity can distinguish or represent substantially all of its production capacity. If the supplier has substantive rights to replace the asset, the asset is not an identified asset; and
(2) The customer has the right to obtain almost all economic benefits from the use of the identified assets throughout the period of use; and
(3) The client obtains the right to lead the use of identified assets when one of the following conditions is met:
- ‧ The customer has the right to lead the use and purpose of the identified assets
- throughout the use period; or
- ‧ The relevant decisions about the use method and purpose of the asset are determined in
- advance, and:
- The customer has the right to operate the asset during the entire use period, and the
- supplier does not have the right to change the operation instructions; or
- The way the customer designs the asset has pre-determined the way and purpose of
- use for the entire period of use.
Lessee

The company recognizes the right-of-use asset and lease liability on the lease start date. The right-of-use asset is originally measured at cost, which includes the original measured amount of the lease liability, adjusts any lease payments paid on or before the lease start date, and adds the original direct cost incurred and the estimated cost of dismantling, removing the underlying asset and restoring its location or underlying asset, and deducting any leasing incentives received.

The right-of-use asset is subsequently depreciated on a straight-line basis between the start of the lease and the end of the end-of-life of the right-of-use asset or the end of the lease period. In addition, the consolidated company periodically assesses whether the right-of-use asset is impaired and processes any impairment loss that has occurred, and cooperates to adjust the right-of-use asset when the lease liability is re-measured.

Lease liabilities are originally measured by the present value of the lease payments that have not been paid on the lease start date. If the implied interest rate of the lease is easy to determine, the discount rate is that rate. If it is not easy to determine, the incremental borrowing rate of the consolidated company is used. Generally speaking, the consolidated company uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of lease liabilities include:

(1) Fixed payment, including substantial fixed payment;
(2) The lease payment depends on the change of an index or fee rate, the original measurement is based on the index or rate of the lease start date;
(3) The guaranteed amount of residual value expected to be paid; and
(4) When reasonably determined that the purchase option or lease termination option will be exercised, the exercise price or the penalty payable.

The lease liability is subsequently accrued by the effective interest method, and its amount is measured when the following occurs:

(1) Changes in the index or rate used to determine lease payments result in changes in the future lease payments;
(2) The guaranteed amount of residual value expected to be paid has changed;
(3) The evaluation of the underlying asset purchase option has changed;
(4) The estimate of whether to exercise the extension or termination option has changed, and the assessment of the lease period has been changed;
(5) Modification of lease subject, scope or other terms.

When the lease liability is re-measured due to changes in the aforementioned index or rate used to determine lease payments, changes in the residual value guarantee amount, and changes in the evaluation of purchase, extension or termination options, the book value of the right-of-use asset should be adjusted accordingly, and When the carrying amount of the right-of-use asset is reduced to zero, the remaining re-measured amount is recognized in profit or loss.

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 the difference between the lease and the re-measured amount of the lease liability is recognized in profit or loss.

The consolidated company expresses the right-of-use assets and lease liabilities that do not meet the definition of investment real estate as separate line items in the balance sheet.

Lessor

The transaction of the company as the lessor is to classify the lease contract according to whether it transfers almost all the risks and rewards attached to the ownership of the underlying asset on the date of the lease establishment. If it is classified as a financial lease, otherwise it is classified as an operating lease. At the time of evaluation, the consolidated company considers whether it covers the relevant specific indicators such as whether it covers the main part of the economic life of the underlying asset during the lease period.

If the agreement includes lease and non-lease components, the consolidated company uses IFRS 15 to distribute the consideration in the contract.

(12) Impairment of non-financial assets

The company assesses on each reporting day whether there is any indication that the carrying amount of non-financial assets (other than inventory, contract assets, deferred income tax assets) may be impaired. .

For the purpose of impairment testing, a group of assets whose cash inflows are largely independent of the cash inflows of other individual assets or asset groups is used as the smallest identifiable asset group.

The recoverable amount is the higher of the fair value of individual assets or cash-generating units minus the cost of sales and its use value. When assessing value in use, the estimated future cash flow is converted to the present value at a pre-tax discount rate, which should reflect the current market assessment of the time value of money and the specific risks of the asset or cash-generating unit. If the recoverable amount of an individual asset or

cash-generating unit is lower than the carrying amount, an impairment loss is recognized. Impairment losses are recognized immediately in the current profit and loss.

(13) Revenue recognition
Revenue from customer contracts
Revenue is measured by the consideration expected to be obtained for the transfer of goods or services. The consolidated company recognizes revenue when the control of goods or services is transferred to the customer and the performance obligations are met. The company is explained as follows according to the main income items:
(1) Selling goods

The company recognizes revenue when the control of the product is transferred. The transfer of control of the product means that the product has been delivered to the customer, the customer can fully determine the sales channel and price and there is no unfulfilled obligation that will affect the customer's acceptance of the product. Delivery occurs when the product is shipped to a specific location, its obsolescence and risk of loss have been transferred to the customer, and the customer has accepted the product in accordance with the sales contract, the acceptance terms have lapsed, or the company has objective evidence that all acceptance conditions have been met.

The company’s average credit period is 90 days, which is consistent with the industry’s practice, so it does not include financing elements.

The company recognizes the accounts receivable when delivering the goods, because the company has the right to receive the consideration unconditionally at that time. (2) Construction contract

The company is engaged in public construction business. Since the assets are controlled by customers at the time of construction, the revenue is gradually recognized over time based on the proportion of the engineering costs incurred so far to the estimated total contract costs. The contract includes fixed and variable consideration. The customer pays a fixed amount according to the agreed time. Some changes in the consideration are estimated using the accumulated experience in the past as the expected value; other changes in the consideration are estimated based on the most likely amount. Considering that the construction progress of public works is influenced by factors that are not under the control of the consolidated company, the rewards for early completion are usually limited. The consolidated company only recognizes revenue within the scope of the cumulative income height that is unlikely to undergo a major turnaround. If the amount of the recognized income has not been requested, it is recognized as a contract asset. When there is an unconditional right to the consideration, the contract asset is transferred to the accounts receivable.

If it is not possible to reasonably measure the degree of completion of the performance obligations of the engineering contract, contract revenue is recognized only within the range of expected recoverable costs.

When the company anticipates that the inevitable cost of fulfilling the obligations of a construction contract exceeds the expected gains from the contract, the liability provision for the lousy contract is recognized.

If the situation changes, the estimates of income, cost, and degree of completion will be revised, and during the period when the management is informed of the change in the situation, the resulting changes will be reflected in income.

The company provides standard warranty for public construction that conforms to the agreed specifications and has recognized warranty liability for this obligation.

(3) Financial components

The company expects that the time between the transfer of all customer contracts for goods or services to the customer and the time for the customer to pay for the goods or services will not exceed one year. Therefore, the company does not adjust the monetary time value of the transaction price.

Cost of customer contract
(1) The incremental cost of obtaining a contract

If the company expects to recover the incremental cost of obtaining a customer contract, the cost is recognized as an asset. The incremental cost of obtaining a contract is the cost incurred in obtaining a customer contract and not incurred if the contract is not obtained. The cost of obtaining a contract that will occur regardless of whether the contract is obtained is recognized as an expense when incurred, unless such cost is clearly chargeable to the customer regardless of whether the contract has been obtained.

The company adopts the standard practical expedient method. If the incremental cost of obtaining a contract is recognized as an asset and the amortization period of the asset is within one year, it is recognized as an expense when the incremental cost occurs.

(2) The cost of fulfilling the contract

If the costs incurred in fulfilling the customer's contract are not within the scope of other standards (International Accounting Standard No. 2 "Inventory", International Accounting Standard No. 16 "Real Estate, Plant and Equipment" or International Accounting Standard No. 38 "Intangible Assets" "), The consolidated company will only begin when these costs are directly related to the contract or clearly identifiable expected contract, will generate or strengthen resources that will be used to meet (or continue to meet) performance obligations in the future, and are expected to be recovered. Such costs are recognized as assets.

General and administrative costs, wasted raw materials used to fulfill the contract but are not reflected in the contract price, labor or other resource costs, costs related to fulfilled (or partially fulfilled) performance obligations, and inability to distinguish between unsatisfied and unsatisfied performance. Costs related to obligations or fulfilled (or partially fulfilled) performance obligations are recognized as expenses when incurred.

(14) Employee benefits

1. Determine the withdrawal plan

The obligation to determine the pension plan is recognized as an expense during the service period of the employee.

Determine the welfare plan

The company's net obligation to determine the benefit plan is calculated for each benefit plan based on the present value of the employee's future benefits earned during the current or previous period of service, and the fair value of any plan assets is deducted.

The determination of welfare obligations is carried out annually by a qualified actuary based on the expected unit welfare method. When the calculation result may be beneficial to the company, the recognized asset is limited to the present value of any economic benefits that may be obtained in the form of refunding the withdrawal from the plan or reducing the future withdrawal from the plan. When calculating the present value of economic benefits, any minimum funding requirements are considered.

The re-measured amount of net-determined welfare liabilities, including actuarial gains and losses, planned asset compensation (excluding interest), and any changes in the asset ceiling effect (excluding interest) are immediately recognized in other comprehensive profit and loss and accumulated in retained earnings . The company determines the net interest expense (income) of the net determined benefit liability (asset), using the net determined benefit liability (asset) and discount rate determined at the beginning of the annual reporting period. The net interest expense and other expenses that determine the benefit plan are recognized in profit or loss.

When the plan is revised or reduced, the number of changes in welfare related to previous service costs or reduced benefits or losses is immediately recognized as profit or loss. When liquidation occurs, the company recognizes and determines the liquidation profit and loss of the welfare plan.

Short-term employee benefits

Short-term employee benefit obligations are recognized as expenses when services are provided. If the company has current statutory or presumptive payment obligations due to employees providing services in the past, and the obligation can be reliably estimated, the amount is recognized as a liability.

(15) Share-based payment transaction

The share-based payment agreement for equity settlement is based on the fair value of the payment date. During the vesting period of the reward, the expense is recognized and the relative equity is increased. The recognized expense is adjusted according to the expected amount of rewards that meet the service conditions and non-market-priced vested conditions; and the final recognized amount is measured on the basis of the amount of rewards that meet the service requirements and non-market-priced vested conditions on the vesting day.

The non-vested conditions for the share-based payment of rewards have been reflected in the measurement of the daily fair value of the share-based payment and the difference between the expected and actual results does not need to be verified and adjusted.

The fair value of amount payable to employees for cash-delivered share appreciation rights is to recognize expenses and increase relative liabilities during the period when employees can obtain unconditional remuneration. The liability is remeasured on the basis of the fair value of the share appreciation rights on each reporting date and settlement date, and any changes in it are recognized as income.

(16) Income tax

Income tax includes current and deferred income tax. Except for those related to business consolidations or related items recognized directly in equity or other comprehensive gains or loss, current income tax and deferred income tax should be recognized in income.

Current income tax includes the estimated income tax payable or tax receivable payable based on the taxable income (loss) of the current year and any adjustments to income tax payable or tax receivable in the previous year. The amount is based on the statutory tax rate on the reporting date or the tax rate of substantive legislation to measure the best estimate of the amount expected to be paid or received.

Deferred income tax measures and recognizes the temporary difference between the book value of assets and liabilities for financial statement purposes and their tax base. Temporary differences arising from the following circumstances are not recognized as deferred income tax:

Assets or liabilities originally recognized in a transaction that is not a business consolidation and does not affect accounting profits and taxable income (loss) at the time of the transaction;
Due to temporary differences arising from investment in subsidiaries, affiliated companies and joint venture interests, the company can control the timing of the temporary difference reversal and is likely to not revert in the foreseeable future.
Taxable temporary differences arising from the original recognition of goodwill. Deferred income tax is measured at the tax rate at which the temporary difference is
expected to reverse, and is based on the legal tax rate or substantive legislative tax rate on the reporting date.

The company will only offset the deferred income tax assets and deferred income tax liabilities when it meets the following conditions at the same time:

Have statutory enforcement power to offset current income tax assets and current income tax liabilities; and
Deferred income tax assets and deferred income tax liabilities are related to one of the following taxpayers subject to income tax levied by the same tax authority; 1. The same taxpayer; or
Different taxpayers, but each entity intends to pay off the current income tax liabilities and assets on a net basis for 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, or at the same time Assets and liquidation of liabilities.

For the unused taxable losses and unused income tax credits at the later stage of transfer and deduction, the temporary difference can be recognized as deferred income tax assets in the range where there is a possibility that future taxable income will be available. It will be reassessed on each reporting day to reduce the relevant income tax benefits to the extent that

it is not likely to be realized; or be reverted the amount that has been reduced to the extent that it is likely to have sufficient taxable income.

(17) Earnings per share

The consolidated company lists the basic and diluted earnings per share attributable to the holders of the company's common equity. The basic earnings per share of the consolidated company is calculated by dividing the profit and loss attributable to the holders of the common stock equity of the company by the current weighted average number of common shares outstanding. Diluted earnings per share is calculated by adjusting the impact of all potential diluted common shares by dividing the profit and loss attributable to the common equity holders of the company and the weighted average number of common shares outstanding. The potential dilutive common stock of the consolidated company includes the employee's stock options and estimated employee compensation.

(18) Department Information

The operating department is an integral part of the consolidated company and is engaged in business activities that may earn income and incur expenses (including income and expenses related to transactions between other components in the consolidated company). The operating results of all operating departments are regularly reviewed by the chief operating decision maker of the consolidated company to make decisions on the allocation of resources to that department and evaluate its performance. Each operating department has separate financial information.

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

When the management team prepares this consolidated financial statement in accordance with the International Financial Reporting Standards recognized by the Financial Supervisory Commission, it must make judgments, estimates and assumptions that will affect the adoption of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from estimates.

Management team continues to review estimates and basic assumptions, and changes in accounting estimates are recognized during the period of change and future periods affected.

The accounting policy involves significant judgments and has a significant impact on the amounts recognized in this consolidated financial report is as follows:

(1) Judgment on whether the consolidated company has substantial control on AB Corp.

The consolidated company holds 46% of the common equity of AB Corp., which has three directors. The consolidated company only holds one director seat and is not AB Corp.'s single largest shareholder. There is no absolute right or control over AB Corp.’s operations and variable remuneration, so it is assessed as having no control.

Among uncertainties in assumptions and estimates, the existence of significant risks that will

not cause major adjustments for the following year will be as follows:

(1) Allowance loss for accounts receivable
The allowance loss for the accounts receivable of the consolidated company is estimated based on the assumption of default risk and expected loss rate. The company considers historical experience, current market conditions and forward-looking estimates on each reporting day to determine the assumptions and input values that must be used when calculating impairments. Please refer to Note 6 (3) for detailed explanations of relevant assumptions and input values.
(2) Evaluation of inventory
Since inventory must be measured at the lower of cost and net realizable value, the consolidated company assesses the amount of inventory due to normal wear and tear, obsolescence or no market sales value on the reporting date, and writes down the cost of inventory to net realizable value. This inventory evaluation is mainly based on the product demand in a specific period in the future as the basis for estimation, so it may cause significant changes due to rapid industrial changes. Please refer to Note 6 (4) for details of inventory evaluation and estimation.

6. Explanation of important accounting items

(1) Cash and Cash equivalent:

Petty cash, cheques and demand deposits Fixed deposits	2025.12.31 2024.12.31 $ 673,965 $ 730,601 218,000 46,228 $ 891,965 $ 776,829	2024.12.31

Please refer to Note 6 (20) for the disclosure of interest rate risk and sensitivity analysis of the consolidated company's financial assets and liabilities.

The consolidated company’s fixed deposits, which is for more than three months, as of December 31, 2025 and 2024, were $0 thousands NT dollars..

(2) Financial assets measured at fair value through other comprehensive gains and losses:

Equity instruments measured at fair value through profit or loss: Money market funds Equity instruments measured at fair value through other comprehensive gains and losses`：` Domestic listed (counter) company stocks- Powertip Domestic unlisted (counter) company stocks-WK 9 ASSOCIATES LTD	2025.12.31		2024.12.31 202,574 272,939 216,702
	$ 203,752 196,062 176,889

Domestic unlisted (counter) company stocks`－`Other U.S. listed company stocks TOTAL	293,910 810 $ 667,671	313,674 903
		$ 804,218

Investment in equity instruments measured at fair value through profit or loss:
The consolidated company recognized the amount in profit or loss for re-measurement at fair value. Please refer to Note 6(19).
Investment in equity instruments measured at fair value through other comprehensive gains and losses

The consolidated company holds these equity instrument investments as long-term strategic investments and not for trading purposes, therefore, they have been designated as measured at fair value through other comprehensive income.

For credit risk and market risk information, please refer to Note 6 (20).
None of the consolidated company's financial assets measured at fair value through other comprehensive gains and losses have been provided as pledge and guarantees as of December 31, 2025 and 2024.
(3) Notes receivable, accounts receivable and collections

Notes receivable`－`Occurs due to business Accounts receivable Accounts receivable`－`Related parties Collection Deduct`：`Allowance for bad debts	2025.12.31	2024.12.31 $ 15,590 373,308 54,216 260,186 (264,642) $ 438,658
	$ 15,261 271,510 109,230 260,186 (263,418) $ 392,769

The consolidated company adopts a simplified method to estimate expected credit losses for all notes receivable and accounts receivable, that is, using lifetime expected credit losses to measure. For the purpose of measurement, these notes and accounts receivable are based on the basis of representing customers’ common credit risk characteristics of the contractual terms and ability to pay all due amounts are grouped and forward-looking information has been incorporated, including general economic and related industry information. The

expected credit loss of the consolidated company's notes and accounts receivable analysis is as follow:

Not overdue Less than 90 days overdue More than 366 days overdue		2025.12.31		Expected credit loss during the allowance period 36 766 262,616
	Accounts receivable Book value $ 379,191 14,380 262,616	Weighted avg. expected credit loss ratio
		0.01% 5.33% 100%

$ 656,187

263,418

2024.12.31

		2024.12.31
Not overdue Less than 90 days overdue Overdue 91 to 365 days More than 366 days overdue	Accounts receivable Book value $ 416,261 23,445 1,119 262,475	Weighted avg. expected credit loss ratio	Expected credit loss during the allowance period 29 1,432 706 262,475
		0.01% 6.11% 63.09% 100%
	$ 703,300		264,642

The consolidated company's notes receivables, accounts receivable and collections of the allowance loss’s statement of changes are as follows:

Beginning balance Recognized impairment loss Reversal of impairment loss Foreign exchange gains or losses Ending balance		2025	2024 $ 290,953 (253) (26,184) 126
		$ 264,642 1,325 - (2,549)
		$ 263,418	$ 264,642

None of the consolidated company's notes and accounts receivables have been provided as pledge and guarantees as of December 31, 2025 and 2024.

(4) Inventory

The inventory details are as follows:

Raw materials and consumables Semi-finished goods WIP Finished goods Raw materials in transit	2025.12.31 $ 55,874 2,622 40,295 60,958 7,587 $ 167,336	2024.12.31 $ 58,738 4,390 33,700 62,582 5,282 $ 164,692

The consolidated company recognizes the loss of inventory depreciation due to inventory write-down to the net realizable value, or the increase in the net realizable value due to the improvement of economic conditions and the reduction of the recognized cost of goods sold are as follows:

2025 2024

Loss for market price decline and obsolescence. (Gain from recovery) $ 2,890 2,761

None of the consolidated company's inventories have been provided as pledge and guarantees as of December 31, 2025 and 2024.

(5) Investment using the equity method

stment using the equity method	stment using the equity method	stment using the equity method	stment using the equity method
The consolidated company’s investments using the equity method on the reporting date are
listed below:
		2025.12.31	2024.12.31
Associated companies	$	317,460	241,651

The associated companies from the consolidated company that adopt the equity method are individually insignificant, and their summary financial information is as follows. Such financial information is the amount included in the company's individual financial report:

Period-end summary of the equity of individual insignificant associated companies. Share attributable to the consolidated company`：` Continuing business unit's current net profit Other comprehensive gain and loss Total comprehensive gain and loss	2025.12.31		2024.12.31
	$ 317,460 2025		241,651 2024

	$ 52,185 (35) $ 52,150		45,922 6,362 52,284

2. Guarantee

None of the consolidated company's investment using the equity method has been provided as pledge and guarantees as of December 31, 2025 and 2024.
The consolidated company sold 44,000 shares of Powertip Image Corp. for a net disposal amount of NT$3,423 thousand. After deducting the book value of NT$872 thousand and the cumulative foreign exchange difference from the translation of financial statements of foreign operations (NT$26 thousand), a gain of NT$2,525 thousand was recognized from the disposal of the investment. The ownership percentage decreased from 18.73% to 18.62%.
In May 2025, Powertip Image Corp., conducted a cash capital increase. The merged company did not participate in the cash capital increase in accordance with its shareholding ratio, therefore, its shareholding ratio decreased from 18.62% to 16.32%. Due to the change in shareholding ratio, the net equity value of the company

increased by NT$42,243,000, which led to an adjustment to the capital reserve.

(6) Acquisition of non-controlling interests

In January 2025, the consolidated company increased its stake in KoBrite Corp. by

NT$15,320,000 in cash, raising its equity interest from 93% to 100%. The acquiring company did not engage in any transactions with non-controlling interests during 2024. The impact of the change in the consolidated company's ownership interest in KoBrite Corp. on the equity attributable to the parent company's owners is as follows:

Book value of non-controlling interests acquired	$	13,772
Consideration paid to non-controlling interests		(15,320)
Retained earnings – the difference between the price of acquiring or
disposing of equity in a subsidiary and its carrying amount.	$	(1,548)

(7) Property, plant and equipment

The cost and depreciation changes of the consolidated company's property, plant and equipment are as follows:

Property $ 41,360 - - -	Plant 524,473 2,699 - 1,375	Equipment 2,785,645 10,499 (1,590) 10,797	Other 317,741 1,277 (602) 1,200	uninspected equipment and unfinished project - - - -	Total 3,669,219 14,475 (2,192) 13,372
$ 41,360	528,547	2,805,351	319,616	-	3,694,874
$ 41,360 - - - -	508,107 1,219 - 3,650 11,497	2,682,308 14,681 (188) - 88,844	307,115 2,052 (1,248) - 9,822	3,650 - - (3,650) -	3,542,540 17,952 (1,436) - 110,163
$ 41,360	524,473	2,785,645	317,741	-	3,669,219
$ - - - -	317,267 13,995 - 1,220	2,678,799 23,602 (1,590) 10,934	312,153 2,719 (602) 1,232	- - - -	3,308,219 40,316 (2,192) 13,386
$ -	332,482	2,711,745	315,502	-	3,359,729

Balance as of January 1, 2024 Amortize Dispose Impact of exchange rate Balance as of December 31, 2024 Book value`：` Balance as of December 31, 2025 Balance as of December 31, 2024	$ - 296,182 2,570,889 299,260 - 3,166,331 - 14,366 22,936 4,571 - 41,873 - - (188) (1,248) - (1,436) - 6,719 85,162 9,570 - 101,451
	$ - 317,267 2,678,799 312,153 - 3,308,219
	$ 41,360 196,065 93,606 4,114 - 335,145
	$ 41,360 207,206 106,846 5,588 - 361,000

(8) Right-of-use asset

The cost and depreciation of the consolidated company's leased land, houses and buildings, etc., are detailed as follows:

Cost of right-of use asset`：` Balance as of January 1, 2025 Increase Decrease Impact of exchange rate Balance as of December 31, 2025 Balance as of January 1, 2024 Increase Decrease Impact of exchange rate Balance as of December 31, 2024 Amortization of right-of use asset: Balance as of January 1, 2025 Current amortization Decrease Impact of exchange rate Balance as of December 31, 2025 Balance as of January 1, 2024 Current amortization Decrease Impact of exchange rate Balance as of December 31, 2024 Book value`：` Balance as of December 31, 2025 Balance as of December 31, 2024	Property $ 56,112 3,803 (3,803) 210	Plant 67,770 2,728 (2,728) 236	Total 123,882 6,531 (6,531) 446 124,328 125,903 62,270 (68,204) 3,913 123,882 14,482 15,876 (3,996) 519 26,881 44,461 17,159 (48,434) 1,296 14,482 97,447 109,400
	$ 56,322	68,006
	$ 54,501 3,803 (3,956) 1,764	71,402 58,467 (64,248) 2,149
	$ 56,112	67,770
	$ 6,756 2,350 (1,268) 69	7,726 13,526 (2,728) 450
	$ 7,907	18,974
	$ 5,446 2,432 (1,319) 197	39,015 14,727 (47,115) 1,099
	$ 6,756	7,726
	$ 48,415	49,032
	$ 49,356	60,044

(9) Other financial assets-current

Restricted assets-fixed deposits Other (including other receivables)	2025.12.31	2024.12.31 $ 87,692 28,197 $ 115,889
	$ 34,041 42,561 $ 76,602

None of the consolidated company's other receivable have been impaired as of December 31, 2025 and 2024.

(10) Short-term loans

Bank Guaranteed Loan Unused quota Interest rate range	2025.12.31 $ 60,000	2025.12.31 $ 60,000	2024.12.31 60,000
	$ -		-
		2.51%	2.33%

For the risk information of the interest rate and liquidity risk of the consolidated company, please refer to Note 6 (20).
Please refer to note 8 for details of the circumstances in which the consolidated

company uses assets to set mortgages for short-term borrowings.

(11) Other payables and other current liabilities

Payable expenses Salaries and bonuses payable Payable employee dividends and remuneration to directors and supervisors Pension payable Other	2025.12.31	2024.12.31 $ 38,746 35,632 27,922 10,666 3,338 $ 116,304
	$ 54,425 34,768 29,754 10,716 5,734 $ 135,397

(12) Lease liability

The book values of the consolidated company's lease liabilities are as follows:

Current Non-current	2025.12.31	2024.12.31 $ 13,741 $ 50,497
	$ 14,639 $ 39,567

For maturity analysis, please refer to Note 6 (20) Financial Instruments.

The amounts recognized in income are as follows:

Interest expense on lease liability Changes in lease payments that are not included in the measurement of lease liabilities and Costs for short-term leases and low-value leased assets	2025 2024 $ 1,901 $ 1,358
	$ 1,201 $ 1,221

The amounts recognized in the cash flow statement are as follows:

2025 2024 Total cash outflow from lease $ 16,927 18,802

The consolidated company’s renews period for the lease term of land, houses and buildings as office premises and factory plants is usually three to five years. In addition, the land’s right-of-use in China usually lasts for 50 years. Part of the lease includes the option to extend the same period as the original contract when the lease term expires. The lease payments of some contracts depend on changes in the local price index.

Part of the contract also stipulates that the consolidated company advance the tax and insurance expenses related to the real estate to the lessor. Such expenses are usually incurred once a year.

(13) Employee benefits
Determine the benefit plan

The consolidated company determines the adjustment between the present values of welfare obligations and the fair value of project assets as follows:

Determine the present value of welfare obligations Fair value of project assets Net Definite Benefits Net Liabilities	2025.12.31	2024.12.31 $ 33,809 (19,812) $ 13,997
	$ 32,630 (19,920) $ 12,710

The consolidated company’s definite benefit plan is transferred to the special labor retirement reserve account of the Bank of Taiwan. The retirement payment of each employee which is subject to the Labor Standards Act is calculated based on the base number of years of service and the average salary of the six months before retirement.

(1) Project asset composition

The retirement fund allocated by the consolidated company in accordance with the Labor Standards Act is coordinated and managed by Bureau of labor funds under Ministry of Labor (hereinafter referred to as the Labor Fund Bureau). The minimum income allocated shall not be lower than the income calculated based on the two-year fixed deposit interest rate of the local bank.

As of the end of the reporting period, the balance of the consolidated company's Labor Retirement Reserve Special Account in Bank of Taiwan was NT$19,920,000. The information on the use of labor pension funds includes fund return rate and fund asset allocation. Please refer to the information published on the website of Bureau of labor funds under Ministry of Labor.

(2) Determination of changes in the present value of welfare obligations

The consolidated company’s determination of the changes of the present value of welfare obligations in 2025 and 2024 are as follows:

2025 2024

Confirmation of welfare obligations on January 1 Current service cost and interest Remeasurement of net defined benefit liabilities `－`Profit (loss) of project asset return `－`Actuarial losses due to changes in financial assumptions Project Benefits paid Confirmation of welfare obligations on December 31	$ 33,809 516 578 (510) (1,763) $ 32,630	$ 35,438 449 (999) (522) (557) $ 33,809

(3) Changes in the fair value of project assets

The consolidated company’s changes in the fair value of the assets of the determined benefit plan in 2025 and 2024 are as follows:

Fair value of project assets on January 1 Interest income Remeasurement of net defined benefit liabilities `－`Benefits of project asset remuneration (excluding current interest) Amount allocated to the project Project Benefits paid Fair value of project assets on December 31	2025	2024 $ 16,064 186 1,459 2,660 (557) $ 19,812
	$ 19,812 295 1,355 221 (1,763) $ 19,920

(4) Expenses recognized as profit and loss

List of recognized expenses in 2025 and 2024 is as follow:

		2025			2024
Current service cost	$	-		$		33
Net interest on net confirmed benefit liabilities			221			230
	$		221	$		263
		2025			2024
Management fees	$		221	$		263
(5) Re-measured amount of net confirmed benefit liabilities		recognized as		other
comprehensive gains and losses

The consolidated company's accumulated remeasured amount of net defined benefit liabilities recognized in other comprehensive income is as follows:

Accumulated balance on January 1 Recognized loss (profit) in the current period Accumulated balance on December 31 (6) Actuarial assumption	2025 $ (15,694) (1,287) $ (16,981)	2024 $ (12,714) (2,980) $ (15,694)

The major actuarial assumptions used by the consolidated company to determine the

present value of welfare obligations at the end of the financial report are as follows:

Discount rate Future salary increase	2025.12.31 1.35% 2.00%	2024.12.31 1.60% 2.00%

The consolidated company expects to pay NT$397,000 to the definite benefit plan within one year after the reporting date in 2025.

The weighted average duration of the defined benefit plan is 7 years.

(7) Sensitivity analysis

When calculating and determining the present value of welfare obligations, the consolidated company must use judgments and estimates to determine relevant actuarial assumptions on the balance sheet, including discount rates, employee turnover rates, and future salary changes, etc. Any change in actuarial assumptions may materially affect the amount of the company's determined welfare obligations.

When adopting the main actuarial assumptions, the impact of changes in determining the present value of welfare obligations in 2024 and as of December 31, 2025 is as follows:

December 31, 2025 Discount rate Future salary increase December 31, 2024 Discount rate Future salary increase	Impact on determined welfare obligations Increase 0.25`％` Decrease0.25`％` $ (579) 596 591 (576) $ (600) 619 615 (599)
	Increase 0.25`％` $ (579) 591 $ (600) 615

The sensitivity analysis above is based on the analysis of the impact of a single assumption change while other assumptions remain unchanged. In practice, many changes in assumptions may be linked. The sensitivity analysis is consistent with the method used to calculate the net pension liabilities in the balance sheet.

The methods and assumptions used in preparing the sensitivity analysis in this period are the same as those in the previous period.

2. Determine the allocation plan

The consolidated company's defined allocation plan is based on the labor pension regulations and is allocated to Bureau of labor insurance’s labor pension individual account at a rate of 6% of the labor's monthly salary. Under this plan, after the consolidated company allocates a fixed amount to Bureau of labor insurance, there is no statutory or constructive obligation to pay additional amounts. The pension expenses under the method

for determining the appropriation of pensions in 2025 and 2024 are NT$3,343,000 and NT$3,205,000 respectively, which have been allocated to Bureau of labor insurance.

In 2025 and 2024, the overseas subsidiaries of the consolidated company will recognize retirement pension expenses of NT$13,700,000 and NT$12,968,000 respectively in accordance with local government regulations.

(14) Income tax
Income tax expense
(1) The consolidated company's income tax expenses are as follows:

Current income tax expense Occurred in the current period Adjustment of current income tax for the previous period Deferred income tax expense The occurrence and reversal of temporary differences Income tax expense	2025 $ 62,115 (720) 61,395 3,352 $ 64,747	2024 $ 39,951 - 39,951 4,132 $ 44,083

(2) The details of income tax (benefits) expenses recognized by the	consolidated
company under other comprehensive gains and losses are as follows:
The consolidated company’s details of income tax (benefits) expenses recognized
under other comprehensive gains and losses in 2025 and 2024	are as follows:
2025		2024
Items not reclassified to profit or loss`：`
The actuarial profit (loss) of the defined benefit $	257	596
welfare plan
(3) The reconciliation between the consolidated company's income	tax expenses	and
pre-tax net profit is adjusted as follows:

e-tax net profit is adjusted as follows:
		2025		2024
Net profit before tax	$	250,601	$	229,474
Income tax calculated based on the domestic tax		50,120		45,894
rate of the consolidated company's location
Impact of tax rate differences in foreign		3,551		3,585
jurisdictions
Recognize the net investment interest using the		(11,594)		3,277
equity method
Tax adjustment		23,390		(11,932)
Undistributed earnings levy		-		1,259
Changes in not recognized temporary differences		-		2,000
Differences between income tax assessment		(720)		-

estimation

64,747 $

44,083

Deferred income tax assets and liabilities
(1) Unrecognized deferred income tax liabilities

The items that the consolidated company's overseas investee companies have not recognized as deferred income tax liabilities are as follows:

2025.12.31 2024.12.31 Accumulated unrealized profit share with overseas $ 314,665 345,399 investee companies

(2) Unrecognized deferred income tax assets

The items that the consolidated company's overseas investee companies have not recognized as deferred income tax assets are as follows:

2025.12.31 2024.12.31 Accumulated unrealized loss share with overseas $ 255,380 197,459 investee companies

The temporary differences related to overseas investee companies are not recognized as deferred income tax assets and liabilities because the consolidated company can control the timing of the reversal of the temporary differences, and it is likely that they will not revert in the foreseeable future in 2025 and as of December 31, 2024.

Other items not recognized as deferred income tax assets of KoBrite Taiwan, a

subsidiary of the consolidated company, are as follows:

Temporary differences can be reduced Taxable loss	2025.12.31 2024.12.31 $ 832 $ 635 22,570 32,154 $ 23,402 $ 32,789

Taxable losses are in accordance with the Income Tax Act. The losses in the previous ten years are deducted from the net profit of the current year as approved by Revenue Service Office, and then the income tax is re-assessed. Such item was not recognized as deferred income tax assets because it is unlikely that KoBrite Taiwan, a subsidiary of the company, will have sufficient taxable income for the temporary difference in the future.

As of December 31, 2024, the company's subsidiary KoBrite Taiwan’s undeducted losses and deduction periods are as follows:

Year of deficit	Undeducted loss 22,832 15,574	The lastyear for deduction
2016 (Approved number) 2017 (Approved number)		2026 2027

2018 (Approved number) 2020 (Declared number) 2021 (Declared number) 2022 (Estimated number) 2023 (Estimated number) 2024 (Estimated number)	26,4512028 19,3072030 4,9402031 13,1922032 6,9782033 3,5752034 $ 112,849

(3) Recognized deferred tax assets and liabilities

The changes in the consolidated company's deferred income tax assets and liabilities are as follows:

Deferred income tax asset`：` Balance as of January 1, 2025 (Debit)/Credit Income Statement (Debit)/Other comprehensive gain/loss Balance as of December 31, 2025 Balance as of January 1, 2024 (Debit)/Credit Income Statement (Debit)/Other comprehensive gain/loss Balance as of December 31, 2024	Defined benefit plan $ 2,799 - (257)	Other Total 19,229 22,028 (3,352) (3,352) - (257) 15,877 18,419 22,881 26,756 (3,652) (4,132) - (596) 19,229 22,028
	$ 2,542
	$ 3,875 (480) (596)
	$ 2,799

In accordance with the laws of each country of incorporation, the income tax of profitable businesses of the consolidated company shall be declared separately by each individual company and shall not be declared in a consolidated manner.
The income tax settlement declarations of the company and its subsidiary KoBrite

Taiwan's profitable business have been approved by the auditing agency till year of 2023.

(15) Capital and other equity
Equity

The company’s authorized total capital stock is $3,500,000 thousands. At a par value of $10 per share with total of 350,000 thousand shares. The aforesaid total authorized share capital is all common stock. The issued shares are 173,203 thousand shares and the payment for all issued shares has been received.

Capital reserve

The content of the company's capital reserve balance is as follows:

2025.12.31

2024.12.31

Premium of issued stock Convertible corporate bonds during the redemption period are classified as other items in capital reserve Capital reserve arising from share-based payment transactions Changes in affiliated companies recognized using the equity method Other	$ 266,840 88,350 30,753 52,805 291 $ 439,039	$ 266,841 88,350 30,753 8,454 803 $ 395,201

According to the Company Act, the capital reserve must be given priority to make up for the losses before it can be issued to new shares or cash in proportion to the shareholders’ original shares based on the realized capital reserve. The “realized capital reserve” mentioned in the preceding paragraph includes the excess of the issuance of stocks in excess of the par value and the income received from donations. In accordance with “Regulations Governing the Offering and Issuance of Securities by Securities Issuers”, the total amount of the capital reserve that can be allocated for replenishment each year shall not exceed 10% of the paid-in capital.

3. Retained earning

According to the company’s articles of association, if there is a surplus in the annual final accounts, the tax should be paid first and make up for the accumulated losses over the years, then 10% of legal reserve shall be set aside and the special reserve shall be set aside or converted according to the law or the competent authority. If there is still a surplus after, the balance shall be added to the undistributed reserve accumulated in the previous year and the board of directors shall draft a distribution proposal and submit it to the shareholders meeting for a resolution.

In accordance with the Company Act, the company authorizes the board of directors to have more than two-thirds of the directors present and the resolution of more than half of the directors present shall distribute dividends and bonuses or legal reserve stipulated in Article 241, Paragraph 1 of the Company Act and all or part of the paid-in capital. The above all shall be distributed in cash and reported to the board of directors.

Shareholder dividends and employee dividends are issued in two types: stock dividends and cash dividends, of which the ratio of cash dividends shall not be less than 10%.

The company's board of directors resolved to distribute cash dividends for 2023 and 2022 earnings on March 13, 2025 and March 14, 2024 respectively. In the shareholders' meeting resolved cash dividends for 2024 and 2023 earnings. The dividends distributed to owners are as follows:

2024 Dividend rate Dividends distributed to owners of common stock`：` Cash $ 1.00	2024	2024	Amount 173,203	2023 Dividend rate 0.80	2023 Dividend rate 0.80
	Dividend rate					Amount
						138,563

On March 12, 2026, the board of directors proposed a profit distribution proposal for 2025. The amount of dividends distributed to owners is as follows:

Dividends distributed to owners of common stock`：` Cash Other equity (net after tax) Difference arising from the exchange of net assets of foreign operating institutions Balance as of January 1, 2025 $(187,413) difference arising from the exchange of net assets of foreign operating institutions (7,928) Share of translation differences of associates accounted for using the equity method (35) Unrealized gains and losses of financial assets measured at fair value through other comprehensive gains and losses - Balance as of December 31, 2025 $(195,376) Balance as of January 1, 2024 $ (220,578) difference arising from the exchange of net assets of foreign operating institutions 26,777 Share of translation differences of associates accounted for using the equity method 6,362 Unrealized gains and losses of financial assets measured at fair value through other comprehensive gains and losses - Disposal of investments accounted for using the equity method 26	2025 Dividend rate Amount $ 1.00 173,203 Unrealized gains and losses of financial assets measured at fair value through other comprehensive gains and losses Other 233,947 46,534 - (7,928) - (35) (90,772) (90,772)	2025	2025
		Dividend rate		Amount
			173,203 Other
	233,947 - - (90,772)		46,534 (7,928) (35) (90,772)
$(195,376)	143,175		(52,201)
	302,587 - - (68,640)		82,009 26,777 6,362 (68,640)
26	-		26

Other equity (net after tax)

Balance as of December 31, 2024 $ (187,413) 233,947

46,534

(16) Earnings per share
Basic earnings per share

The basic earnings per share of the consolidated company for 2025 and 2024 are

calculated on the basis of the net profit attributable to common equity holders of the company and the weighted average number of outstanding shares of common stocks. The relevant calculations are as follows:

(1) Net profit attributable to holders of the company's common stocks

2025 Net profit attributable to holders of the company's common stock $ 188,618 (2) The weighted average number of common shares outstanding 2025 The weighted average number of common shares outstanding on December 31 173,203 2025 (3) Basic earnings per share (NT $) $ 1.09	2025	2024
		188,712 2024
		173,203 2024
	$ 1.09	1.09

2. Diluted earnings per share

The diluted earnings per share for 2025 and 2024 are calculated on the basis of the net profit attributable to common equity holders of the company and the weighted average number of common stocks outstanding after adjusting the dilution effect of all potential common stocks. The relevant calculations are as follow:

(1) Net profit attributable to the company's common stock holders (diluted)

Net profit attributable to holders of the company’s common stocks (Basically diluted)	2025	2024
	$ 188,618	$ 188,712

(2) Weighted average number of shares outstanding (diluted) of common stocks
(thousand shares)

(thousand shares)
Weighted average number of shares outstanding (basic) The impact of employee stock dividends The weighted average number of common stocks outstanding on December 31 (diluted)	2025 173,203 1,129	2024 173,203 889
			173,203 889
	174,332		174,092

(3) Diluted earnings per share (NT$)

2025

2024

1.08

Diluted earnings per share

(16) Revenue from customer contracts
Revenue breakdown

		2025		`Total` 417 - - - - 417 - - 417 417 `Total` 572,887 141,066 216,372 169,998 77,433
`Dept.A`	`Dept.B`	`Dept.C`	`Other`
$ 276,892 195,274 196,471 162,236 61,653	244,633 - - - -	- - - - -	4,422 - - - -
$ 892,526	244,633	-	4,422
$ 790,200 97,707 4,619	229,727 - 14,906	- - -	- - 4,422
$ 892,526	244,633	-	4,422
		2024
`Dept.A`	`Dept.B`	`Dept.C`	`Other`
$ 897,100	279,520	1,036	100	1,177,756
48 $ 841,774 52,192	259,581 -	- -	- -	1,101,355 52,192

3,134 19,939	3,134 19,939	1,036	100 24,209
$ 897,100 279,520		1,036	100 1,177,756
	2025.12.31	2024.12.31	2023.1.1 22,123 470,294 286,519 (290,953) 487,983 314,009
	$ 15,261 380,740 260,186 (263,418) $ 392,769 $ 224,222 $ 1,452

Note: Note: This project simultaneously provides a time deposit certificate as collateral amounting to NT$29,493 thousand, recorded under “Other Financial Assets – Current.” Please refer to Note 6 (3) for the disclosure of accounts receivable and its impairment. Changes in contract assets are mainly due to the difference between the time when the company transfers goods or services to the customer to meet the performance obligations and the time when the customer pays.

(18) Remuneration of employees, directors and independent directors

According to the company’s articles of association, the current year’s pre-tax benefits shall be used to deduct the benefits before the distribution of employee compensation and directors’ remuneration. After retaining the amount of accumulated losses, if there is a balance, the employee’s remuneration shall not be less than 8% and the director and supervisors’ remuneration shall not be more than 2%. The aforementioned employee remuneration which may be issued by stock or cash includes employees from affiliated companies who meet certain conditions.

The company’s remuneration for employees in 2025 and 2024 is NT$22,188,000 and NT$20,368,000 respectively and the remuneration for directors and independent directors is NT$5,547,000 and NT$5,092,000, which are based on the company’s pre-tax net profit for each period. The amount before deduction of employees, directors and independent directors’ remuneration multiplied by the number of employees’ remuneration and directors’ and supervisors’ remuneration as stipulated in the company’s articles of association is the basis for estimation, and is reported as operating costs or operating expenses for 2025 and 2024. If difference between the actual distribution amount in the next year and the estimated amount occurs, such occurrence will be dealt with accordance to the change in accounting estimates and the difference will be recognized as the profit

and loss of the next year.

(19) Non-operating income and expenses

1. Interest income

The detail of the consolidated company's interest income is as follow:

Interest from bank deposits Judgement interest	2025 $ 8,021 26,448	2024 7,327 - 7,327
	$ 34,469

2. Other income

The detail of the consolidated company’s other income for 2025 and 2024 are as follows:

Rental income Dividend income Other	2025	2024 2,856 59,388 11,899 74,143
	$ 2,595 49,194 10,124
	$ 61,913

3. Other gains and losses

The detail of the consolidated company’s other gains and losses for 2025 and 2024 are as follows:

Net foreign currency exchange gains Net interests in financial assets measured at fair value through profit or loss Disposal of investments accounted for using the equity method Lease modification benefit (loss) Other	2025	2024 5,556 2,407 2,525 1,812 (4,855)
	$ 15,157 3,024 - 25 (6,969) $ 11,237
		7,445

(20) Financial instruments

1. Credit risk

(1) Exposure of credit risk

The book value of financial assets and contract assets represents the maximum

amount of credit risk.

(2) Concentration of credit risk

Since the company has a broad customer base and does not significantly

concentrate on transactions with a single customer and the sales area is scattered, there is no significant concentration of the credit risk of accounts receivable. In order to reduce credit risk, the company also regularly and continuously evaluates

the financial situation of customers, but usually does not require customers to provide collateral.

(3) Credit risk of accounts receivable

Please refer to Note 6 (3) for the credit risk exposure information of notes and accounts receivable.

Other financial assets measured at amortized cost include other receivables and certificates of deposit, etc. Please refer to Note 6 (8) for details of the impairment provision status on December 31, 2024 and 2023.

All the financial assets listed above are with low credit risk. Therefore, the amount of expected credit losses in twelve months is used to measure the allowance for loss during the period (for the explanation of how the company determines that the credit risk is low, please refer to Note 4 (7)).

Liquidity risk

The following table shows the contractual maturity dates of financial liabilities, excluding the effect of estimated interest.

December 31,2025 Non-derivative financial liabilities Bank loan (short term) Notes and Accounts Payable(Including related parties) Other payables Deposit of guarantee funds December 31,2024 Non-derivative financial liabilities Bank loans (short term) Notes and Accounts Payable(Including related parties) Other payable Deposit of guarantee funds	Book value	Contractual cash flow 60,050 192,886 129,663 57,420 8,248 448,267 60,124 188,388 112,966 69,370 7,952 438,800	within 1 yr 60,050 192,886 129,663 16,143 70 398,812 60,124 188,388 112,966 15,677 - 377,155	1-2yr - - - 16,316 - 16,316 - - - 15,209 - 15,209	above 2yrs - - - 24,961 8,178 33,139 - - - 38,484 7,952 46,436
	$ 60,000 192,886 129,663 54,206 8,248 $ 445,003 $ 60,000 188,388 112,966 64,238 7,952 $ 433,544

The consolidated company does not expect the cash flow analysis on the due date to occur significantly earlier, or the actual amount will be significantly different.

3. Market risk

(1) Exposure to exchange rate risk

The company's financial assets and liabilities exposed to significant foreign currency exchange rate risks are as follows:

Financial assets Monetary item RMB USD HKD Financial liabilities		2025.12.31
	Foreign	Exchange rate
	currency		NTD	NTD
	$ 39 14,724 2,433 $ 1,362 3,701	4.496 31.430 4.038 31.430 0.201	175 462,775 9,824 42,808 744	175 364,569 20,384 12,360 344
Monetary item USD JPY

(2) Sensitivity analysis

The consolidated company’s exchange rate risk mainly comes from cash

denominated in foreign currencies, cash equivalents and accounts receivable, etc., resulting in foreign currency exchange gains and losses during conversion. In 2025 and 2024, when the NTD depreciates 5% against the USD, RMB and HKD, under all other factors remain unchanged, the net profit before tax for 2025 and 2024 increased by NT$21,461,000 and NT$18,621,000 respectively.

(3) Exchange gains and losses of monetary items

Due to the wide variety of functional currencies that the consolidated company uses, the exchange gain and loss information of monetary items is disclosed in summary. The foreign currency exchange’s gains and losses (including realized and unrealized) in 2025 and 2024 are gain of NT$15,157,000 and loss of NT$5,556,000 respectively.

4. Interest rate analysis

The details of the consolidated company's financial assets and financial liabilities interest rate risk exposure are as follows:

Fixed interest rate instruments`：` Financial assets Variable interest rate instruments`：` Financial assets	Book	value	value
	2025.12.31	2024.12.31 $ 177,930 723,949	2024.12.31
	$ 364,870 $ 663,604

Financial liabilities

(60,000) (60,000) $ 603,604 663,949

The consolidated company's financial assets and financial liabilities interest rate risk exposure are described in the liquidity risk management of this note.

The following sensitivity analysis is determined based on the interest rate risk of non-derivative instruments on the reporting date. For floating rate liabilities, the analysis method is based on the assumption that the amount of liabilities outstanding on the reporting date will be circulated throughout the year. The rate of change used by the company when reporting interest rates internally to management is an increase or decrease of 1% in interest rates, which also represents management's assessment of the reasonably possible range of changes in interest rates.

If the interest rate increases or decreases by 1% and all other variables remain unchanged, the company’s net profit before tax for 2025 and 2024 increases or decreases NT$6,036 thousands and NT$6,639 thousands respectively. The main reason is this consolidated company's demand deposits and long-term loans with variable interest rates.

5. Other price risk

If the price of equity securities changes on the reporting date (the two-period analysis

adopts the same basis and assumes that other changing factors remain unchanged), the impact on the comprehensive profit and loss items is as follows:

Stock price on reporting day Increase 5% Decrease 5%	2025 2024 Other comprehensive profit and loss after-tax amount After-tax profit and loss Other comprehensive profit and loss after-tax amount After-tax profit and loss $ 9,803 - $ 13,647 -	2025 2024 Other comprehensive profit and loss after-tax amount After-tax profit and loss Other comprehensive profit and loss after-tax amount After-tax profit and loss $ 9,803 - $ 13,647 -	2025 2024 Other comprehensive profit and loss after-tax amount After-tax profit and loss Other comprehensive profit and loss after-tax amount After-tax profit and loss $ 9,803 - $ 13,647 -
	Other comprehensive profit and loss after-tax amount $ 9,803
	$ (9,803)	- $ (13,647)	-

6. Fair value information

(1) Types and fair value of financial instruments

The consolidated company's financial assets and liabilities measured at fair value through profit and loss, financial assets and liabilities for hedging, and financial assets measured at fair value through other comprehensive gains and losses are measured at fair value on the basis of repeatability. For the book value of financial instruments that are not measured by fair value is a reasonable approximation of fair value and lease liabilities, there is no need to disclose fair value information according to regulations ) are listed as follows:

	2025.12.31
Book value	Fair value
	Level 1 Level 2 Level 3 Total

Financial assets measured

at fair value through

profit or loss

Financial assets measured at fair value through profit or loss
Money Market funds Financial assets measured at fair value through other comprehensive gains and losses Domestic and foreign listed (counter) stocks Domestic and foreign unlisted (counter) stocks Total Financial assets measured at amortized cost Cash and case equivalent Notes and accounts receivable (Including related parties) Other financial assets- current Refundable deposits Total Financial liabilities measured at amortized cost Bank loan Notes and accounts payable (Including related parties) Other payables Lease liabilities (including non-current) Deposits received Total	$ 203,752	-	203,752	-	203,752 196,872 470,799 667,671 - - - -
	$ 196,872 470,799	196,872 -	- -	- 470,799
	$ 667,671	196,872	-	470,799
	$ 891,965 392,769 76,602 6862	- - - -	- - - -	- - - -
	, $ 1368198	-	-	-	-
	,, $ 60,000 192,886 129,663 54,206 8,248	- - - -	- - - -	- - - -	- - - -
	$ 445003	-	-	-	-

2024.12.31

Fair value

Book value	Level 1 -	Level 2 202,574	Level 3 -	Total 202,574 273,842 530,376 804,218 - - - -
$ 202,574
$ 273,842 530,376	273,842 -	- -	- 530,376
$ 804,218	273,842	-	530,376
$ 776,829 438,658 115,889 7,430	- - - -	- - - -	- - - -
$ 1,338,806	-	-	-	-
$ 60,000 188,388 112,966 64,238 7,952	- - - -	- - - -	- - - -	- - - -
$ 433,544	-	-	-	-

(2) Fair value evaluation technique for measuring financial instruments by fair value

If a financial instrument has a public quotation in the active market, the public quotation in the active market shall be the fair value. The market prices announced by major exchanges and central government bond over-the-counter trading centers judged

to be popular bonds are the basis for the fair value of listed (counter) equity instruments and debt instruments with publicly quoted prices on the active market.

If public quotations of financial instruments can be obtained from exchanges, brokers, underwriters, industry associations, pricing service agencies or competent authorities in a timely and frequent manner and the prices represent actual and frequent fair market transactions, then the financial instruments have an active market public quotation. If the above conditions are not met, the market is deemed inactive. In general, large bid-ask spreads, significant increase in bid-ask spreads, or very little trading volume are indicators of inactive markets.

If the financial instruments held by the consolidated company have an active market, their fair values are listed as follows according to their categories and attributes: When financial assets and liabilities measured at fair value through profit and loss are quoted in an active market, the market price is the fair value. Except for the above-mentioned financial instruments within active markets, the fair values of other financial instruments are obtained through evaluation techniques or with reference to the quotations from counterparties. The fair value obtained through evaluation technique can refer to the current fair value of other financial instruments with similar substantive conditions and characteristics, discounted cash flow method, or other evaluation techniques, including the use of market information available on the date of the consolidated balance sheet calculated.

If the financial instruments held by the consolidated company have an inactive market, their fair values are listed as follows according to their categories and attributes: Equity instruments without public quotation: If there is no market for reference, the evaluation method is used to estimate. The estimates and assumptions used are consistent with the information used by market participants as estimates and assumptions when pricing financial products. The information is available to the consolidated company.

The interest rate of bank borrowing is mostly close to the market interest rate, so the borrowing amount is taken as the fair value. Please refer to Note 6 (9) for the interest rate.

(3) Transfer between level 1 and level 2

No such transfer in 2025 and 2024.

(4) List of changes in level 3

Measured at fair value through
other comprehensive gains and
losses

Equity instruments without
public quotation

January 1, 2024 Total profit or loss Recognized in other comprehensive income Return from capital reduction December 31, 2024 January 1, 2024 Total profit or loss Recognized in other comprehensive income Return from capital reduction December 31, 2024	$ 530,376 (32,770) (26,807) $ 470,799 $ 604,879 (40,275) (34,228) $ 530,376

The above-mentioned total profit or loss is reported in the series of "unrealized appraised profit (loss) of financial assets measured at fair value through other comprehensive gains and losses".

Among them, those related to assets still held as of December 31, 2025 and 2024 are as follows:

Total profit or loss Recognized in other comprehensive income (Listed in “Unrealized Appraisal Profits and Losses of Financial Assets Measured at Fair Value through Other Comprehensive income'')	2025 $ (32,770)	2024 (40,275)

(5) Quantitative information on the fair value measurement of significant unobservable inputs (level 3)

The consolidated company's fair value measurement is classified as the third level mainly for financial assets measured at fair value through other comprehensive gains and losses-equity instrument investment without an active market.

Most of the company’s fair value is classified as the third level with only a single significant unobservable input and only equity instrument investments without an active market have multiple significant unobservable inputs. The significant unobservable input values of equity instrument investment without an active market are independent to each other, so there is no interrelationship.

The quantitative information list of significant unobservable input values is as follows:

Item

Significant

Evaluation

Financial assets measured at fair value through other comprehensive gains and losses- equity instrument investment without an active market	technique Net asset value method	unobservable input value `•`Net asset value `•`Discount for lack of marketability	unobservable input value and fair value relationship
			~~`•`The higher the net~~ asset value, the higher the fair value `•`The higher the discount due to lack of market liquidity, the lower the fair value.

(21) Financial risk management
Summary

The consolidated company is exposed to the following risks due to the use of financial instruments

(1) Credit risk
(2) Liquidity risk

(3) Market risk

This note expresses the consolidated company's risk information on the above-mentioned risks, the consolidated company's objectives, policies and procedures for measuring and managing risks. For further quantitative disclosure, please refer to the respective notes of the individual financial report.

Risk management structure

The consolidated company's financial division provides services for each business, analyzes the internal risk report of risk insurance according to the degree and breadth of risk, supervises and manages the financial risks related to the company's operations. The consolidated company establishes appropriate internal policies and systems to control credit risk and liquidity risk. As for market risks, we collect information from various parties, hoping to accurately predict the future trends of exchange rates, interest rates, etc., and use financial instruments to avoid risky risks when necessary to reduce the impact of these risks. The use of financial instruments is regulated by the consolidated company’s relevant policies, and internal auditors continue to review compliance with policies and risk limits. The consolidated company does not trade financial instruments for speculative purposes.

Credit risk

Credit risk is the risk of the consolidated company's financial loss due to the inability of its customers or financial instrument counterparties to fulfill contractual obligations. It mainly comes from the company's accounts receivable from customers and securities investments.

(1) Accounts receivable and other receivables

The consolidated company's accounts receivable covers many customers, scattered in different industries and geographic regions, and there is no significant concentration of transactions with a single customer and the sales area is scattered, so the credit risk of accounts receivable is not likely to be significantly concentrated. The company has established a credit policy. According to this policy, before standard payment and shipping conditions are given, it is necessary to analyze the credit rating of each new customer individually before the transaction begins.

(2) Investment

The credit risk of bank deposits, fixed income investments and other financial instruments is measured and monitored by the consolidated company's financial division. Since the transaction partner and the performing party are all creditworthy banks and financial institutions, corporate organizations and government agencies with investment level and above, there is no significant credit risk.

Liquidity risk

Liquidity risk refers to the risk that the consolidated company cannot deliver cash or other financial assets to pay off financial liabilities and fail to perform related obligations. The consolidated company manages and maintains sufficient cash and cash equivalents to support the company's operations and reduce the impact of cash flow fluctuations. The management of the consolidated company supervises the use of bank financing lines and ensures compliance with the terms of the loan contract.

Market risk

Market risk refers to the risk that changes in market prices, such as exchange rates, interest rates, and equity instrument prices, affect the consolidated company's earnings or the value of financial instruments held. The goal of market risk management is to control the risk of market risk within an acceptable range and minimize the risk.

(1) Exchange rate risk
The consolidated company is exposed to sales and purchase transactions that are not denominated in functional currencies, which causes the consolidated company to generate exchange rate fluctuation risks. The consolidated company’s functional currency is mainly NTD. The main denomination currencies for these transactions are USD, RMB and HKD.
(2) Other market price risk

The consolidated company incurs equity price risk insurance due to equity securities and open fund investments in listed counters.

(22) Capital management

The consolidated company plans its capital management based on the characteristics of the current industry and the future development of the company, taking changes in the external environment and other factors into account, to ensure that the company has the necessary

financial resources and operating plans to support the future working capital and capital expenditures, research and development expenses, debt repayment and dividend expenses, etc. The management authority uses an appropriate total debt/equity ratio to determine the company’s optimal capital structure. In order to maintain a sound capital base, the

company optimizes the balance of debt and equity so to increase shareholder compensation. The consolidated company’s debt-to-equity ratio at the reporting date is as follows:

Total liabilities Total equity Debt-to-equity ratio	2025.12.31 $ 538,978 3,003,743 18%	2024.12.31 536,970 3,060,130 18%

As of December 31, 2025 and 2024, the consolidated company's capital management method has not changed significantly.

7. Related party transactions

(1) Name and relationship of related parties

The related parties involved in transactions with the consolidated company during the period

covered in this consolidated financial report are as follows:

`Name of related parties` AB Corp. DongGuan E-run electronics co.,ltd.	`Relationship with the company` Affiliated company of the consolidated compan`y` Subsidiary of the consolidated company

(2) Major transactions with related parties
Operating income

The consolidated company's major sales amounts to related parties are as follows:

Affiliated company`－`AB Corp.	2025	2024 209,735
	$ 193,667

The consolidated company's sales price to the above-mentioned related parties is based on

the company's various product price lists, and the payment to the above-mentioned related parties is collected 126 days after the month end.

2. Purchase

The consolidated company's purchase amount from related parties is as follows:

Subsidiaries: Affiliated company`－`DongGuan E-run Affiliated company`－`AB Corp.	2025	2024 $ 15,827 69,953 $ 85,780
	$ 67,808 17,034 $ 84,842

The consolidated company's purchase terms and conditions from the above-mentioned related parties are 90 days and 126 days of monthly settlement, and the price is no different

from other manufacturers.

3. Amounts due from related parties

The details of the company's accounts receivable from related parties are as follows:

Account item Accounts receivable- related party	Type of related parties Affiliated company`－`AB Corp		2025.12.31 $ 109,230	2024.12.31
				$ 54,216

4. Amounts due to related parties

The details of the company's accounts payable to related parties are as follows:

Account item Accounts payable- related party Accounts payable- related party	Type of related parties Affiliated company`－`AB Corp Affiliated company`－`DonGuan E-run	2025.12.31		2024.12.31
		$ 41,832 5,037 $ 46,869

(3) Key management personnel transactions

Remuneration of key management personnel

Short-term employee benefits Post-employment benefits dged assets `Asset name` `Subject topledge`	Short-term employee benefits Post-employment benefits dged assets `Asset name` `Subject topledge`	2025	2024 $ 10,156 91 $ 10,247 2024.12.31 $ 130,781 6,710 63,147 $ 200,638	2024
		$ 10,257 91 $ 10,348 2025.12.31
Other financial assets- current(pledged fixed deposit) Refundable deposits Real estate	Contract bond and warranty deposit Project deposit, performance bond and lease guarantee Short-term/ long-term loan	$ 146,866 6,637 60,552 $ 214,055

8. Pledged assets

9. Significant contingent liabilities and unrecognized contractual commitments: N/A

10. Loss from major disaster: N/A

11. Significant post-period matters:

On March 12, 2026, the subsidiary, KoBrite Taiwan Corporation, passed a board resolution to reduce capital to cover accumulated deficits and to issue ordinary shares as a cash capital increase. The amount of capital reduction and the number of shares cancelled were NT$470,000 and 47,000,000 respectively, and the amount of cash capital increase was NT$70,000,000 and

7,000,000 shares were issued, all of which were subscribed by the Company.

12. Other

(1) The functions of employee benefits, depreciation and amortization expenses are summarized as follows:

follows:
Function Category	2025			2024
	Attributable to operating costs	Attributable to operating expenses	Total	Attributable to operating costs	Attributable to operating expenses	Total
Employee benefit Salary expense Labor and health insurance expense Pension expense Directors' remuneration Other employee benefits Depreciation expense	139,417 6,460 10,962 - 4,138 28,258	118,351 8,512 6,302 2,964 5,380 27,934	257,768 14,972 17,264 2,964 9,518 56,192	143,027 6,089 10,478 - 4,450 29,650	116,315 8,213 5,958 2,726 4,386 29,382	259,342 14,302 16,436 2,726 8,836 59,032

13. Disclosure of Matters in Notes

(1) Information with regard to major transactions

In 2025, in accordance with the requirements of the securities issuer’s financial report

preparation standards, the relevant information about major transactions that should be disclosed again by the company is as follows:

Loans to others

Unit: NTD thousand

#	Companies that lend loans	Prospective borrowers	Accounting subjects	The highest amount of the current period	Ending balance	Actual lending amount	Interest rate range	Loan by nature (note 1)	Transaction amount with regard to business	Reasons for short-term financing	Allowance for loss amount	Collateral	Collateral	Limited amount of loans for each entity (Note 2)	Limited amout of total loans (Note 3)
												Name	Value
1	Bright LED electronics	KoBrite Taiwan	Other receivables	40,000	-	-	2%	2	-	Operating turnover	-	N	-	292,321	1,169,285

Note 1: 1. means have business contacts. 2. means has the need for short-term financing.

Note 2: The limit for total amount of lending loans does not exceed 10% of the net worth of the enterprise. Foreign companies in which the consolidated company directly or indirectly holds 100% of the voting shares are not subject to the 10% limit on loans to the company's net worth, but the respective limits for capital loans should still not exceed 100% of the company's net worth.

Note 3: The limit for total amount of capital loans shall not exceed 40% of the net worth of the enterprise. Foreign companies in which the consolidated company directly or indirectly holds 100% of the voting shares are not subject to the 40% limit on total amount of loans to the company's net worth, but the respective limits for capital loans should still not exceed 60% of the company's net worth.

Note 4: The above transactions have been reversed in the preparation of the consolidated report.

2. Endorsement for others: N/A

3. The situation of holding marketable securities at the end of the period (excluding

investment in subsidiaries, affiliates and joint ventures): Unit: thousand shares

Holding Company	Types and names of securities	Relationship with the securities issuer	Accounting items	End of term	End of term	End of term	End of term	Note
				Unit/share	Book value	Holding ratio	Fair value
The company `〃` `〃` The company The company `〃` `〃`	Franklin Templeton SinoAm Money Market Fund Taishin 1699 Money Market Fund Fubon Chi-Hsiang Money Market Fund FSITC Taiwan Money Market Fund Taishin Ta-Chong Money Market Powertip WK 9 WK 9 phase II Foxfortune Technology Ventures Ltd. New fund capital	N/A `〃` `〃` `〃` Corporate director Corporate director `〃` `〃` `〃`	Financial assets measured at fair value through profit or loss – Current `〃` `〃` `〃` Financial assets measured at fair value through other comprehensive gains and losses-non-current Financial assets measured at fair value through other comprehensive gains and losses-non-current `〃` `〃` `〃`	4,588 3,622 1,838 1,883 2,689 17,123 7,677 20,000 998 8,900	50,235 52,053 30,478 30,527 40,459 196,062 176,889 196,303 30,399 67,208	-% - - - - - 12% 15% 18% 12% 16%	50,235 52,053 30,478 30,527 40,459 Price per share market =11.45 176,889 196,303 30,399 67,208

The cumulative amount of buying or selling the same securities reaches NTD$300 million or more than 20% of the paid-in capital: N/A
Acquired real estate with an amount of NTD$300 million or more than 20% of the paid-in

capital: N/A

Disposal of real estate with an amount of NTD$300 million or more than 20% of the paid-in capital: N/A
The amount of purchases and sales with related parties reaches NTD$100 million or more than 20% of the paid-in capital:

`Import (sell)` `company`	`Trading` `partner` `Name`	`Relations`	`Transaction`	`Transaction`	`Transaction`	`Transaction`	`Circumstances and reasons` `for trading condition` `which are different from` `regular trading`	`Circumstances and reasons` `for trading condition` `which are different from` `regular trading`	`Notes and accounts` `receivable (paid)`	`Notes and accounts` `receivable (paid)`	`Note`
			`Import` `(sell)`	`Amount`	`% of total` `import` `(sales)`	`Credit` `period`	`Price`	`Credit` `period`	`Balance`	`% of total notes` `and accounts` `receivable` `(paid)`
The company The company WanHui (HK)	AB Corp. WanHui (HK) DongGuan BRTLED	Affiliated company Subsidiary Subsidiary	(Sell) Import Import	(193,667) 514,539 525,805	(22) % 84 % 84 %	Net 126 days Adjust according to its funding needs Net 90 days	- - -	- - -	109,230 (1,578,244) (315,892)	36% (96)% (96)%	Note Note

Note: The transactions listed on the left column have been written off during the preparation of the consolidated statement.

Receivables from related parties amount to NT$100 million or more than 20% of the paid-in capital:

Company with account receivables	Trading partner Name	Relations	Balance of accounts receivable from related parties	Turnover	Overdue amounts from related parties	Overdue amounts from related parties	Amounts receivable from related parties recovered after the period	allowance for loss amount	Note
					Amount	Processing
WanHui (HK)	The company	Parent and subsidiary company	1,578,243	0.33	Note 1	Note 1	82,780	-	Note 2
DongGuan BRTLED	WanHui (HK)	Parent and subsidiary company	315,892	1.40	Note 1	Note 1	82,243		Note 2

Note 1: The difference between receivables and payables shall be collected based on

fund requirements.

Note 2: The transactions listed on the left column have been written off during the preparation of the consolidated statement.

Engage in derivatives trading: N/A
Business relations and important transactions between parent and subsidiary

companies:

`#` `(Note 1)`	`Name of traders`	`Transaction` `objects`	`Relation with` `traders` `(Note 2)`	`Transaction situation`	`Transaction situation`	`Transaction situation`	`Transaction situation`
				`Subject`	`Amount`	`Condition`	`% of combined total` `revenue or total` `assets`
1 1 2 2 3 3 3 4 4 5 5 6 6 6	WanHui (HK) WanHui (HK) DongGuan BRTLED DongGuan BRTLED KoBrite Taiwan KoBrite Taiwan KoBrite Taiwan KoBrite DongGuan KoBrite DongGuan Henan Bright Crystal Henan Bright Crystal DongGuan LiSheng PCB DongGuan LiSheng PCB DongGuan LiSheng PCB	BRTLED BRTLED WanHui (HK) WanHui (HK) BRTLED BRTLED BRTLED DongGuan BRTLED DongGuan BRTLED DongGuan BRTLED DongGuan BRTLED DongGuan BRTLED DongGuan BRTLED DongGuan BRTLED	2 2 2 2 2 2 2 3 3 3 3 3 3 3	Sales revenue Accounts receivable Sales revenue Accounts receivable processing income Sales revenue Accounts receivable Sales revenue Accounts receivable processing income Accounts receivable processing income Sales revenue Accounts receivable	514,539 1,578,243 525,805 315,892 30,639 5,558 5,725 78,410 27,809 34,961 9,888 17,929 44,423 93,487	Adjusted based on funding needs Adjusted based on funding needs Adjusted based on funding needs Adjusted based on funding needs Net 90 days Net 90 days Net 90 days Net 90 days Net 90 days Net 90 days Net 90 days Net 90 days Net 90 days Net 90 days	45.06% 44.55% 46.04% 8.92% 2.68% 0.49% 0.16% 6.87% 0.78% 3.06% 0.28% 1.57% 3.89% 2.64%

Note 1. The way to fill in the serial number is as follows:

  - 1.0 represents the parent company.

     2. Subsidiaries are numbered sequentially starting from Arabic numeral 1 according to the company type.

Note 2: The type of relationship with the trader is marked as follows:

 1. Parent company to subsidiary.

 2. Subsidiary to parent company.

 3. Subsidiary to subsidiary.

(2) Re-investment business related information

The consolidated company's reinvestment business information for 2025 is as follows

(Exclude investee companies in China):

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Investor Investee Main business Original investment Hold at the end of Investee Recognized in
amount period this period
Original investment
amount
65
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Name	Name	Region	Items	End of period	End of last year	Shares (thousand)	Ratio	Book value	Current income	Investment (Profit) Loss	Note
The company 〃〃〃〃〃〃〃 KoBrite	WanHui (HK) KoBrite Corp. LiSheng Int’l AB Corp. WanShui Powertip image KoBrite Taiwan Bright Crystal (HK) Bright Crystal (HK) KoBrite Taiwan	HK Mauritius HK US HK TW TW HK HK TW	Processing business of LED indicators, displays and related components Investment holding Investment holding Dealer Investment holding Optical lens, lens design and production LED chip and related product manufacturing and assembly, lighting equipment installation engineering Investment holding Investment holding LED chip and related product manufacturing and assembly, lighting equipment installation engineering	524,673 949,885 109,071 16,479 61,910 64,593 500,000 404,342 - -	524,673 1,082,499 109,071 16,479 61,910 64,593 - - 404,342 500,000	11,460 1,250 28,592 151 2,993 7,627 50,000 100,994 - -	100% 100% 60% 46% 23% 16% 100% 80% - % - %	2,069,979 34,303 74,730 44,503 20,552 252,405 29,903 118,720 - -	11,085 1,864 2,780 5,276 1,993 291,940 6,666 (19,370) - -	11,085 1,864 1,656 2,407 459 49,319 6,666 (15,483) - -	Subsidiary (Note 1) Subsidiary (Note 1&2&3) Subsidiary (Note 1) adopting the equity method `〃` `〃` Subsidiary (Note 1&2&3) Subsidiary (Note 1&2&3) Subsidiary (Note 1&2) Subsidiary (Note 1&2)

Note 1: The transactions listed on the left have been reversed in the preparation of

consolidated financial statements.

Note 2: In order to restructure the group's organizational structure, on January 1, 2025, KoBrite sold its 100% owned "KoBrite Taiwan" and 80% owned "Bright Crystal (HK)" to the company.
Note 3: On December 3, 2025, the board of directors of KoBrite resolved to reduce capital by USD 88,837,000 to offset losses and to reduce capital by USD 4,723,000 in cash, eliminating a total of 9,356,007,280 shares, representing a capital reduction ratio of 98.68%. After the capital reduction, the share capital was USD 1,250,000.
(3) Information with regard to investment in China
Relevant information about reinvestment in China:

Name of invested company in China	Main business		Investment method	Cumulative remittances from Taiwan at the beginning of the period	~~Exported or~~ recovered in this period Investment amount	Cumulative remittances from Taiwan at the end of the period	Current profit (loss) of the investee company	Direct or indirect investment	Recognized investment profit (loss) in this period	End of period investment	Investment repatriated as of the current period

	Items	Paid-in capital		Amount (Note 1)	Export (Note 1)	Amount (Note 1)	Amount (Note 1)		Holding ratio	(Note 3)	Book value	Income
DongGuan BRTLED DongGuan KoBrite DongGuan Yi-Run DongGuan LiSheng PCB Henan Bright Crystal	Manufacture and sell of LED component and its related products Production and processing of LED chips production and sale of other steel products PCB processing Production and sales of high-quality crystals and LED lighting products, as well as import and export business	HKD340,222 US$14,590 RMB$41,001 HKD$10,000 US$16,200	Indirect investment through WanHui (HK) (Note 4) Indirect investment though KoBrite Corp. Indirect investment through WanHui (HK) Indirect investment through LiSheng Int’l (Note 4) Indirect investment through Bright Crystal (HK) (Note 4)	- 149,121 (US$4,974) 58,813 (HKD$15,280) 3,279 (HKD$852) 403,981 (US$13,475)	- - - - -	- - - - -	- 149,121 (US$4,974) 58,813 (HKD$15,28 0) 3,279 (HKD$852) 403,981 (US$13,475)	40,740 2,006 1,993 8,101 (19,191)	100% 100% 23% 60% 80%	40,740 2,006 459 4,826 (15,339)	1,462,510 32,373 20,552 73,682 119,313	163,988 - 22,951 - -

2. Limits for reinvestment in China:

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----- Start of picture text -----

Cumulative investment Approved investment amount by According to the
amount remitted from the Overseas Chinese and Foreign regulations of the
Taiwan to China at the end of Investment Commission (Note 1) Overseas Chinese and
the period Foreign Investment
Commission
Investment quota in
China
615,194 2,218,124 Note 2
(USD18,449 and HKD16,132) (USD19,402 及 HKD398,296)
----- End of picture text -----

Note 1: It is converted into NTD at the end of the period using the USD exchange rate of

     - 31.43, HKD exchange rate of 4.038.

  - Note 2: The Company has been approved by Bureau of Industry of the Ministry of Economic Affairs to comply with the operating headquarters certification letter, so there is no limit on the amount of investment in China.

  - Note 3: Existing reinvestment companies in the third region use their own funds and machinery and equipment for investment.

  - Note 4: Except for Dongguan Yi-Run Electronics Co., Ltd., the remaining transactions have been written off during the preparation of the consolidated financial report

Major transaction matters:
N/A

14. Department information

(1) General information:

The consolidated company has four departments required to be reported: Department A, Department B, Department C, Department D, and other departments. Department A is the sales business of light-emitting diode components and related products, Department B is engaged in the manufacturing and sales of light-emitting diode components and related products, Department D is engaged in the manufacturing and sales of dies and other departments are engaged in manufacturing and sales of PCB, etc.

(2) Departmental profit and loss, assets, liabilities and their measurement basis and adjustment information required to be reported:

The consolidated company uses the departmental pre-tax profit and loss in the internal management report which reviewed by the chief operating decision maker (excluding non-recurring gains and losses and exchange gains and losses) as the basis for the management of resource allocation and performance evaluation. Since income tax, non-recurring gains and losses, and conversion gains and losses are managed on a group basis, the consolidated company does not amortize income tax expenses (benefits), non-recurring gains and losses, and conversion gains and losses to the reporting department. In addition, not all profit and loss of reportable departments include significant non-cash items other than depreciation and amortization. The reported amount is consistent with the report used by the operating decision maker.

The accounting policies of the operating department are the same as the "Summary Description of Important Accounting Policies" described in Note 4.

The consolidated company regards sales and transfers between departments as transactions with a third person and measured at the current market price.

Information and adjustments of the operating department of the consolidated company are as follows:

2025

			2025
Revenue Revenue from external customers Revenue from depts. Total revenues Dept. profit (loss) Total asset of dept. Total liability of dept.	Dept. A $ 892,526 80	Dept. B 244,633 557,523	Dept. C - -	Dept. D 4,422 34,961	Other dept. 417 182,905 183,322 14,037 360,904 171,250	Adjust/ eliminate - (775,469) (775,469) (5,787) (4,090,422) (1,762,788)	Total 1,141,998 -
	$ 892,606	802,156	-	39,383			1,141,998
	$ 249,617	12,105	-	(19,371)			250,601
	$ 4,715,554	2,377,766	-	178,919			3,542,721
	$ 1,792,340	307,787	-	30,389			538,978

		2024
Dept. A	Dept. B	Dept. C	Dept. D	Other	Adjust/	Total

$ 897,100 -	279,520 500,381	994 42 130,866 31,733	1,177,756 -
$ 897,100	779,901	131,860 31,775	1,177,756
$ 229,145	(48,411)	1,379 (21,373)	229,474
$ 4,875,786	2,525,818	251,465 198,453	3,597,100
$ 1,912,572	301,557	199,265 29,825	536,970

Note: In January 2025, the consolidated company restructured its organizational structure, resulting in Department C failing to meet any of the quantitative thresholds required for reporting in 2025. Therefore, Department C was consolidated and reported to other departments. Department D met the quantitative thresholds required for reporting in 2025.

(3) Information on types of products and services:

The reportable departments of the consolidated company information have been based on different products and services, and there is no need to disclose product and labor service information.

(4) Information on region:

The information about the location of the consolidated company is as follows: Revenue is

classified based on the geographic location of the customer and non-current assets are classified based on the geographic location of the asset.

Revenues from external customers:

ified based on the geographic location of the asset. venues from external customers:
Region China Taiwan United states Korea Other	2025 2024 $ 526,364 $ 572,887 195,274 141,066 196,471 216,372 162,236 169,998 61,653 77,433
	$ 1,141,998 $ 1,177,756

2. Non-current assets

	Region Taiwan China (including HK) Total	2025 $ 490,284 381,669	2024 349,894 419,193
		$ 871,953	769,087

Non-current assets include investments using the equity method, property, plant and equipment, right-of-use assets, refundable deposits and other non-current assets. However, it does not include non-current assets that include financial instruments and deferred income tax assets.

(5) Information of important customers:

income tax assets. (5) Information of important customers:
In both 2025 and 2024, the consolidated company has a non-affiliated customer	who
accounts for more than 10% of its consolidated operating income as follows:
2025	2024
Customer K from Department A $ 137,745	148,904

AI assistant

BRIGHT — Annual Report 2025

52264_rns_2025-11-13_bc24663d-6dad-427f-8daf-36704011d81d.pdf

Bright LED Electronics Corp.

Consolidated financial report and accountant's audit report

Notice to readers:

Table of content

Representation Letter

INDEPENDENT AUDITORS’ REPORT

Opinion

Basis for Opinion

Key Audit Matters

Inventory valuation

Revenue Recognition

Account Receivables Valuation

Other Matter

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

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Notice to Readers

Bright LED Electronics Corp. and Subsidiaries

Consolidated Balance Sheets

December 31, 2025 and 2024

Bright LED Electronics Corp. and Subsidiaries

Consolidated Statements of Comprehensive Income

From January 1 to December 31, 2025 and 2024

Consolidated Statements of Changes in Equity

From January 1 to December 31, 2025 and 2024

(In Thousands of New Taiwan Dollars, Except Dividends per Shares)

Equity Attributable to Shareholders of the Parent

Consolidated Statements of Cash Flows

From January 1 to December 31, 2025 and 2024

(In Thousands of New Taiwan Dollars)

Bright LED Electronics Corp. and Subsidiaries Notes from consolidated financial statements

Year 2025 and 2024

(Unless otherwise specified, all amounts are in units of NT $thousand)

1. Company history

2. The date and procedure for the approval of the financial statements

3. Application of newly issued and revised standards and explanations

Newly issued or revised

4. Summary of material accounting policies

or

(9) Investment-related enterprises

1. Determine the withdrawal plan

(16) Income tax

(17) Earnings per share

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

6. Explanation of important accounting items

2024.12.31

(4) Inventory

(5) Investment using the equity method

2. Guarantee

(6) Acquisition of non-controlling interests

(7) Property, plant and equipment

(8) Right-of-use asset

(12) Lease liability

(7) Sensitivity analysis

2. Determine the allocation plan

3. Retained earning

2. Diluted earnings per share

1. Interest income

2. Other income

3. Other gains and losses

(20) Financial instruments

1. Credit risk

3. Market risk

(2) Sensitivity analysis

4. Interest rate analysis

5. Other price risk

6. Fair value information

Financial assets measured

at fair value through

profit or loss

(3) Market risk

7. Related party transactions

2. Purchase

3. Amounts due from related parties

4. Amounts due to related parties

(3) Key management personnel transactions

8. Pledged assets

9. Significant contingent liabilities and unrecognized contractual commitments: N/A

BRIGHT Annual Report 2025