CHT Security Co., Ltd.

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

Deloitte.

勤業眾信

勤業眾信聯合會計師事務所

110421 台北市信義區松仁路100號20樓

Deloitte & Touche

20F, Taipei Nan Shan Plaza

No. 100, Songren Rd.,

Xinyi Dist., Taipei 110421, Taiwan

Tel: +886 (2) 2725-9988

Fax: +886 (2) 4051-6888

www.deloitte.com.tw

INDEPENDENT AUDITORS' REPORT

The Board of Directors and Shareholders
CHT Security Co., Ltd.

Opinion

We have audited the accompanying financial statements of CHT Security Co., Ltd. (the “Company”), which comprise the balance sheets as of December 31, 2025 and 2024, and the statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the financial statements, including material accounting policy information (collectively referred to as the “financial statements”).

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

Basis for Opinion

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

Key Audit Matters

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

The key audit matter related to the Company’s financial statements for the year ended December 31, 2025 is described as follows:

Revenue Recognition of Non-standard Customer Contracts for Cybersecurity Professional Services

The Company’s revenue from cybersecurity professional services includes various testing, monitoring, and customized project services. To address customers’ varying needs, the Company enters into non-standard contracts with customers, which may include one or more service items. As the testing, monitoring and customized project services have different revenue recognition methods, whether the Company appropriately identifies performance obligations from the customer contract and determines the timing to recognize revenue for each performance obligation could have a significant impact on revenue recognition. Therefore, we identified the revenue recognition of non-standard customer contracts for cybersecurity professional services as a key audit matter.

In addition to obtaining an understanding of the design of internal control related to revenue recognition of non-standard customer contracts for cybersecurity professional services, as well as testing the operating effectiveness of such controls, we also performed the following audit procedures:

We selected samples of revenue recognition journal entries. For each selection, we obtained and examined the corresponding customer contracts to verify whether revenue was recognized in accordance with the provisions of IFRS 15, and obtained supporting documents to confirm that the criteria for revenue recognition had been met.
We reviewed subsequent general ledger entries to determine whether there were any significant reversals of revenue.

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

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

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

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

Auditors’ Responsibilities for the Audit of the Financial Statements

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

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

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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.

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

The engagement partners on the audits resulting in this independent auditors’ report are Yih-Shin Kao and Mei Yen Chiang.

Yih-Shin Kao

Deloitte & Touche
Taipei, Taiwan
Republic of China

February 11, 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.

CHT SECURITY CO., LTD.

BALANCE SHEETS

DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	2025		2024
ASSETS	Amount	%	Amount	%
CURRENT ASSETS
Cash and cash equivalents (Notes 4 and 6)	$ 1,198,460	43	$ 639,772	38
Contract assets - current (Notes 4, 21 and 29)	195,204	7	136,017	8
Notes receivable (Notes 7 and 21)	-	-	817	-
Trade receivables (Notes 7 and 21)	256,226	9	218,425	13
Trade receivables from related parties (Note 29)	35,004	1	165,915	10
Other receivables from related parties (Note 29)	47,761	2	26,944	2
Inventories (Notes 4 and 8)	83,608	3	43,131	2
Prepayments	62,372	2	18,874	1
Other financial assets (Note 9)	600,000	21	149,960	9
Other current assets	2,508	-	2,806	-
Total current assets	2,481,143	88	1,402,661	83
NON-CURRENT ASSETS
Financial assets at fair value through profit or loss - non-current (Notes 4 and 10)	14,572	-	16,840	1
Financial assets at fair value through other comprehensive income - non-current (Notes 4 and 11)	68,400	2	-	-
Financial assets at amortized cost - non-current (Notes 4 and 12)	20,300	1	-	-
Investments accounted for using the equity method (Notes 4 and 13)	18,269	1	11,967	1
Property, plant and equipment (Notes 4, 14 and 29)	63,409	2	88,210	5
Right-of-use assets (Notes 4, 15 and 29)	22,069	1	13,579	1
Intangible assets (Notes 4 and 16)	112	-	894	-
Deferred tax assets (Notes 4 and 23)	304	-	-	-
Costs to fulfil a contract (Notes 4 and 21)	62,601	2	64,372	4
Other non-current assets (Notes 17 and 29)	81,493	3	93,257	5
Total non-current assets	351,529	12	289,119	17
TOTAL	$ 2,832,672	100	$ 1,691,780	100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Contract liabilities - current (Notes 4, 21 and 29)	$ 175,000	6	$ 174,315	10
Trade payables	242,953	9	248,736	15
Trade payables to related parties (Notes 4 and 29)	31,271	1	28,752	2
Other payables (Notes 4 and 18)	216,716	8	203,658	12
Current tax liabilities (Notes 4 and 23)	60,136	2	58,927	3
Lease liabilities - current (Notes 4, 15 and 29)	5,716	-	13,364	1
Other current liabilities	14,752	1	17,716	1
Total current liabilities	746,544	27	745,468	44
NON-CURRENT LIABILITIES
Contract liabilities - non-current (Notes 4, 21 and 29)	15,904	-	31,443	2
Deferred tax liabilities (Notes 4 and 23)	294	-	149	-
Lease liabilities - non-current (Notes 4, 15 and 29)	16,924	1	462	-
Guarantee deposits (Note 29)	1,160	-	1,160	-
Total non-current liabilities	34,282	1	33,214	2
Total liabilities	780,826	28	778,682	46
EQUITY (Note 20)
Ordinary shares	406,770	14	363,400	21
Share capital received in advance	38	-	95	-
Capital surplus	1,082,526	38	83,920	5
Retained earnings
Legal reserve	124,415	4	86,497	5
Unappropriated earnings	436,927	16	379,186	23
Total retained earnings	561,342	20	465,683	28
Other equity	1,170	-	-	-
Total equity	2,051,846	72	913,098	54
TOTAL	$ 2,832,672	100	$ 1,691,780	100

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

(With Deloitte & Touche auditors' report dated February 11, 2026)

CHT SECURITY CO., LTD.

STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

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

	2025		2024
	Amount	%	Amount	%
OPERATING REVENUE (Notes 4, 21 and 29)	$ 2,045,570	100	$ 1,973,659	100
OPERATING COSTS (Notes 8, 16, 21, 22 and 29)	1,085,220	53	1,108,104	56
GROSS PROFIT	960,350	47	865,555	44
OPERATING EXPENSES (Notes 16, 22 and 29)
Selling and marketing expenses	192,469	9	172,333	9
General and administrative expenses	105,158	5	119,674	6
Research and development expenses	132,754	7	108,695	5
Total operating expenses	430,381	21	400,702	20
PROFIT FROM OPERATIONS	529,969	26	464,853	24
NON-OPERATING INCOME AND EXPENSES
Interest income	10,274	-	6,185	-
Other income	793	-	341	-
Other gains and losses (Note 22)	(2,231)	-	1,008	-
Finance costs (Notes 22 and 29)	(534)	-	(471)	-
Share of profit or loss of associates accounted for using the equity method (Note 13)	6,302	-	1,650	-
Total non-operating income and expenses	14,604	-	8,713	-
PROFIT BEFORE INCOME TAX	544,573	26	473,566	24
INCOME TAX EXPENSE (Notes 4 and 23)	107,646	5	94,380	5
NET INCOME	436,927	21	379,186	19

(Continued)

CHT SECURITY CO., LTD.

STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

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

	2025		2024
	Amount	%	Amount	%
OTHER COMPREHENSIVE INCOME
Items that will not be reclassified subsequently to profit or loss:
Unrealized gain on investments in equity instruments at fair value through other comprehensive income (Note 4)	$ 1,463	-	$ -	-
Income tax related to items that will not be reclassified subsequently to profit or loss (Notes 4 and 23)	(293)	-	-	-
Other comprehensive income for the year	1,170	-	-	-
TOTAL COMPREHENSIVE INCOME FOR THE YEAR	$ 438,097	21	$ 379,186	19
EARNINGS PER SHARE (Note 24)
Basic	$ 11.47		$ 10.47
Diluted	$ 11.44		$ 10.24

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

(With Deloitte & Touche auditors’ report dated February 11, 2026) (Concluded)

CHT SECURITY CO., LTD.

STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	Ordinary Shares (Note 20)		Share Capital Received in Advance (Note 20)	Capital Surplus (Note 20)	Retained Earnings (Note 20)		Other Equity Unrealized Valuation Gain on Equity Instruments Measured at Fair Value Through Other Comprehensive Income	Total Equity
	Shares (In Thousands)	Amount			Legal Reserve	Unappropriated Earnings
BALANCE ON JANUARY 1, 2024	34,641	$ 346,410	$ 18,799	$ 68,330	$ 59,546	$ 269,509	$ -	$ 762,594
Appropriation of 2023 earnings
Legal reserve	-	-	-	-	26,951	(26,951)	-	-
Cash dividends - $6.68 per share	-	-	-	-	-	(242,558)	-	(242,558)
Issuance of ordinary shares under employee share options	1,699	16,990	(18,799)	15,435	-	-	-	13,626
Employee share options issued by the Company	-	-	-	155	-	-	-	155
Advance receipts for employee share option exercises	-	-	95	-	-	-	-	95
Net profit for the year ended December 31, 2024	-	-	-	-	-	379,186	-	379,186
Other comprehensive income for the year ended December 31, 2024, net of income tax	-	-	-	-	-	-	-	-
Total comprehensive income for the year ended December 31, 2024	-	-	-	-	-	379,186	-	379,186
BALANCE ON DECEMBER 31, 2024	36,340	363,400	95	83,920	86,497	379,186	-	913,098
Appropriation of 2024 earnings
Legal reserve	-	-	-	-	37,918	(37,918)	-	-
Cash dividends - $9.23 per share	-	-	-	-	-	(341,268)	-	(341,268)
Issuance of ordinary shares for cash	3,683	36,830	-	994,967	-	-	-	1,031,797
Transaction costs attributable to the issue of new ordinary shares	-	-	-	(3,000)	-	-	-	(3,000)
Issuance of ordinary shares under employee share options	654	6,540	(95)	5,996	-	-	-	12,441
Employee share options issued by the Company	-	-	-	643	-	-	-	643
Advance receipts for employee share option exercises	-	-	38	-	-	-	-	38
Net profit for the year ended December 31, 2025	-	-	-	-	-	436,927	-	436,927
Other comprehensive income for the year ended December 31, 2025, net of income tax	-	-	-	-	-	-	1,170	1,170
Total comprehensive income for the year ended December 31, 2025	-	-	-	-	-	436,927	1,170	438,097
BALANCE ON DECEMBER 31, 2025	40,677	$ 406,770	$ 38	$ 1,082,526	$ 124,415	$ 436,927	$ 1,170	$ 2,051,846

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

(With Deloitte & Touche auditors' report dated February 11, 2026)

CHT SECURITY CO., LTD.

STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax	$ 544,573	$ 473,566
Adjustments for:
Depreciation expense	67,803	65,658
Amortization expense	782	856
Net loss (gain) on fair value changes of financial assets at fair value through profit or loss	2,268	(1,292)
Finance costs	534	471
Interest income	(10,274)	(6,185)
Compensation cost of employee share options	643	155
Share of profit of associates accounted for using equity method	(6,302)	(1,650)
Lease modification gains	(8)	-
Changes in operating assets and liabilities
Contract assets	(59,187)	(45,957)
Notes receivable	817	(817)
Trade receivables	(37,801)	(44,500)
Trade receivables from related parties	130,911	(93,924)
Other receivables from related parties	(20,817)	(22,175)
Inventories	(40,477)	(19,547)
Prepayments	(43,498)	3,503
Other current assets	407	600
Costs to fulfil a contract	1,771	(27,522)
Contract liabilities	(14,854)	59,740
Trade payables	(5,783)	49,335
Trade payables to related parties	2,519	2,351
Other payables	13,058	49,980
Other current liabilities	(2,964)	3,725
Cash generated from operations	524,121	446,371
Interest paid	(534)	(471)
Income tax paid	(106,889)	(78,512)
Net cash generated from operating activities	416,698	367,388
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of financial assets at fair value through other comprehensive income	(66,937)	-
Purchase of financial assets at amortized cost	(20,300)	-
Payments for property, plant and equipment	(17,112)	(23,658)
Increase in refundable deposits	-	(10,368)
Decrease in refundable deposits	5,224	-
Increase in other financial assets	(450,040)	(10,960)
Increase in other non-current assets	-	(12,684)
		(Continued)

CHT SECURITY CO., LTD.

STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	2025	2024
Decrease in other non-current assets	$ 6,540	$ -
Interest received	10,165	6,053
Net cash used in investing activities	(532,460)	(51,617)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in guarantee deposits	-	575
Repayment of the principal portion of lease liabilities	(25,558)	(23,292)
Cash dividends paid	(341,268)	(242,558)
Issuance of ordinary shares for cash	1,031,797	-
Payments for transaction costs attributable to the issue of ordinary shares	(3,000)	-
Issuance of ordinary shares under employee share options	12,441	13,626
Advance receipts for employee share option exercises	38	95
Net cash generated from (used in) financing activities	674,450	(251,554)
NET INCREASE IN CASH AND CASH EQUIVALENTS	558,688	64,217
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR	639,772	575,555
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	$ 1,198,460	$ 639,772

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

(With Deloitte & Touche auditors’ report dated February 11, 2026) (Concluded)

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CHT SECURITY CO., LTD.

NOTES TO FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

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

1. GENERAL INFORMATION

CHT Security Co., Ltd. (the "Company") was incorporated on December 14, 2017. The Company mainly provides information security services.

The Company's shares have been listed on the Taiwan Stock Exchange (TWSE) since September 2025.

Chunghwa Telecom Co., Ltd. is the parent company of the Company, and its ownership percentage of the Company's ordinary shares was 56.69% and 63.45% as of December 31, 2025 and 2024, respectively.

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

2. APPROVAL OF FINANCIAL STATEMENTS

The financial statements were approved by the Company's board of directors on February 11, 2026.

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

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

The initial application of the amendments to the IFRS Accounting Standards endorsed and issued into effect by the FSC did not have material impact on the Company's accounting policies.

b. The IFRS Accounting Standards endorsed by the FSC for application starting from 2026

New, Amended and Revised Standards and Interpretations	Effective Date Announced by IASB
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments”	January 1, 2026
Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”	January 1, 2026
Annual Improvements to IFRS Accounting Standards - Volume 11	January 1, 2026

As of the date the financial statements were authorized for issue, the Company has assessed that the application of the above standards and interpretations will not have a material impact on the Company's financial position and financial performance.

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

New, Amended and Revised Standards and Interpretations	Effective Date Announced by IASB (Note 1)
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”	To be determined by IASB
IFRS 18 “Presentation and Disclosure in Financial Statements”	January 1, 2027 (Note 2)
IFRS 19 “Subsidiaries without Public Accountability: Disclosures” (including the 2025 amendments to IFRS 19)	January 1, 2027
Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency”	January 1, 2027

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

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

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

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

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

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

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

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

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

a. Statement of compliance

The financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IFRS Accounting Standards as endorsed and issued into effect by the FSC.

b. Basis of preparation

The financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair value.

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

1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;
2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
3) Level 3 inputs are unobservable inputs for an asset or liability.

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

Current assets include:

1) Assets held primarily for the purpose of trading;
2) Assets expected to be realized within 12 months after the reporting period; and
3) Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

Current liabilities include:

1) Liabilities held primarily for the purpose of trading;
2) Liabilities due to be settled within 12 months after the reporting period; and

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3) Liabilities for which the Company does not have the substantial right at the end of the reporting period to defer settlement for at least 12 months after the reporting period.

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

d. Foreign currencies

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

At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the period in which they arise.

Non-monetary items denominated in foreign currencies that are measured at fair value are retranslated at the rates prevailing at the date when the fair value is determined. Exchange differences arising from the retranslation of non-monetary items are included in profit or loss for the period.

e. Cash equivalents

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

f. Inventories

Inventories consist of merchandise and work in progress and are stated at the lower of cost or net realizable value. Inventory write-downs are made by item, except where it may be appropriate to group similar or related items. The net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded at the specific identification of cost on the balance sheet date.

g. Investments in associates

An associate is an entity over which the Company has significant influence and which is neither a subsidiary nor an interest in a joint venture. The Company uses the equity method to account for its investments in associates.

Under the equity method, investments in an associate are initially recognized at cost and adjusted thereafter to recognize the Company’s share of the profit or loss and other comprehensive income of the associate. The Company also recognizes the changes in the Company’s share of the equity of associates attributable to the Company.

When the Company subscribes for additional new shares of an associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Company’s proportionate interest in the associate. The Company records such a difference as an adjustment to investments with the corresponding amount charged or credited to capital surplus - changes in capital surplus from investments in associates accounted for using the equity method. If the Company’s ownership interest is reduced due to its additional subscription of the new shares of the associate, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate is reclassified to profit or loss on the same basis as would be required had the investee directly disposed of the related assets or liabilities. When the adjustment should be debited to capital surplus, but the capital surplus recognized from investments accounted for using the equity method is insufficient, the shortage is debited to retained earnings.

14 -

The entire carrying amount of an investment (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is not allocated to any asset, including goodwill, that forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

When the Company transacts with its associate, profits and losses resulting from the transactions with the associate are recognized in the Company's financial statements only to the extent of interests in the associate that are not related to the Company.

h. Property, plant and equipment

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

The depreciation of property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each reporting period, with the effects of any changes in the estimates accounted for on a prospective basis.

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

i. Intangible assets

1) Intangible assets acquired separately

Intangible assets with finite useful lives that are acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization. Amortization is recognized on a straight-line basis. The estimated useful lives, residual values, and amortization methods are reviewed at the end of each reporting period, with the effect of any changes in the estimates accounted for on a prospective basis.

2) Derecognition of intangible assets

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

j. Costs to fulfil a contract

The software usage fees incurred for the provision of cybersecurity professional services are directly related to customer contracts. As these costs generate or enhance resources that will be used to fulfil future performance obligations, they are recognized as costs to fulfil a contract to the extent that they are recoverable. These costs are amortized on a straight-line basis over the contract period in accordance with the terms of the individual contract.

k. Impairment of property, plant and equipment, right-of-use assets, intangible assets and costs to fulfil a contract

At the end of each reporting period, the Company reviews the carrying amounts of its property, plant and equipment, right-of-use assets and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

15 -

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

The impairment loss from costs to fulfil a contract is recognized to the extent that the carrying amount of the assets exceeds the remaining amount of consideration that the Company expects to receive in exchange for related goods or services less the costs which relate directly to providing those goods or services and which have not been recognized as expenses. The costs to fulfil a contract are then included in the carrying amount of the cash-generating unit to which they belong for the purpose of evaluating impairment of that cash-generating unit.

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

Financial instruments

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

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issuance of financial assets and financial liabilities (other than financial assets and financial liabilities at FVTPL) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognized immediately in profit or loss.

1) Financial assets

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

a) Measurement categories

Financial assets are classified into the following categories: Financial assets at fair value through profit or loss (FVTPL), financial assets at amortized cost and investments in equity instruments at fair value through other comprehensive income (FVTOCI).

i. Financial assets at FVTPL

Financial assets at FVTPL includes debt instruments that do not meet the amortized cost criteria or FVTOCI criteria, which are mandatorily classified as at FVTPL.

Financial assets at FVTPL are subsequently measured at fair value, and any dividends, interest earned and remeasurement gains or losses on such financial assets are recognized in other gains or losses. Fair value is determined in the manner described in Note 28: Financial Instruments.

16 -

ii. Financial assets at amortized cost

Financial assets that meet the following conditions are subsequently measured at amortized cost:

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

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

Subsequent to initial recognition, financial assets at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

Interest income is calculated by applying the effective interest rate to the gross carrying amount of such a financial asset.

iii. Investments in equity instruments at FVTOCI

On initial recognition, the Company may make an irrevocable election to designate investments in equity instruments as at FVTOCI. Designation as at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.

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

Dividends on these investments in equity instruments are recognized in profit or loss when the Company's right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment.

b) Impairment of financial assets and contract assets

The Company recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including notes receivable, trade receivables, receivables from related parties), as well as contract assets.

The Company always recognizes lifetime expected credit losses (ECLs) for notes and trade receivables and contract assets. Expected credit losses reflect the weighted average of credit losses with the respective risks of default occurring as the weights. Lifetime ECLs represent the expected credit losses that will result from all possible default events over the expected life of a financial instrument.

The impairment loss of all financial assets is recognized in profit or loss by a reduction in their carrying amounts through a loss allowance account.

c) Derecognition of financial assets

The Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

17 -

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss.

On derecognition of an investment in an equity instrument at FVTOCI, the cumulative gain or loss which had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss.

2) Equity instruments

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

Equity instruments issued by the Company are recognized at the proceeds received, net of direct issue costs.

3) Financial liabilities

a) Subsequent measurement

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

b) Derecognition of financial liabilities

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

m. Revenue recognition

The Company identifies contracts with customers, allocates the transaction price to the performance obligations and recognizes revenue when performance obligations are satisfied.

1) Revenue from the sale of goods

Revenue from the sale of goods comes from sales of cybersecurity products and solutions. Revenue is recognized when the goods are delivered to the customer’s specific location and accepted by the customer, as this is the point at which the customer obtains control of the goods, has full discretion over their use and pricing, assumes the primary responsibility for sales to future customers and bears the risks of obsolescence.

2) Revenue from the rendering of services

Revenue from the rendering of services comes from the network security services and cybersecurity professional services.

For network security services, revenue is recognized over time as the customer simultaneously receives and consumes the benefits provided by the Company’s performance.

For cybersecurity professional services, revenue is recognized either at a point in time upon the delivery of results and customer acceptance, or over time as services are rendered, depending on the nature of the specific service. Revenue for services that have been provided but not yet invoiced is recognized as contract assets and reclassified to trade receivables when the invoice is issued. If payments received from customers exceed the amount of revenue recognized, the excess is recorded as contract liabilities.

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n. Leases

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

The Company as lessee

The Company recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for low-value asset leases accounted for by applying a recognition exemption where lease payments are recognized as expenses on a straight-line basis over the lease terms.

Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities adjusted for lease payments made at or before the commencement date. Right-of-use assets are subsequently measured at cost less accumulated depreciation and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the balance sheets.

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.

Lease liabilities are initially measured at the present value of the lease payments, which comprise fixed payments. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the lessee’s incremental borrowing rate will be used.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term used to determine those payments, the Company remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate line in the balance sheets.

o. Employee benefits

1) Short-term employee benefits

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

2) Retirement benefits

Payments to defined contribution retirement benefit plans are recognized as expenses when employees have rendered services entitling them to the contributions.

p. Employee share options

The fair value at the grant date of the employee share options is expensed on a straight-line basis over the vesting period, based on the Company’s best estimates of the number of shares or options that are expected to ultimately vest, with a corresponding increase in capital surplus - employee share options. The expense is recognized in full at the grant date if the grants are vested immediately.

At the end of each reporting period, the Company revises its estimate of the number of employee share options that are expected to vest. The impact of the revision of the original estimates is recognized in profit or loss such that the cumulative expenses reflect the revised estimate, with a corresponding adjustment to capital surplus - employee share options.

19 -

q. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

1) Current tax

Income tax payable (recoverable) is based on taxable profit (loss) for the year determined according to the Income Tax Act in the ROC.

According to the Income Tax Act in the ROC, an additional tax on unappropriated earnings is provided for in the year the shareholders approve to retain earnings.

Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax provision.

2) Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the assets to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period and recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liabilities are settled or the assets are realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

3) Current and deferred taxes

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

MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Company’s accounting policies, management is required to make judgments, estimations, and assumptions on the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

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When developing material accounting estimates, the Company considers the possible impact of climate change and related government policies and regulation on the cash flow projection, growth rates, discount rates, profitabilities and other relevant material estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.

Based on the assessment of the Company's management, the accounting policies, estimates, and assumptions adopted by the Company have not been subject to material accounting judgements, estimates and assumptions uncertainty.

6. CASH AND CASH EQUIVALENTS

	December 31
	2025	2024
Cash on hand	$ 380	$ 380
Demand deposits	848,657	639,392
Cash equivalents (investments with original maturities of 3 months or less)
Commercial paper	349,423	-
	$ 1,198,460	$ 639,772

The market rate intervals of demand deposits and commercial paper at the end of the year were as follows:

	December 31
	2025	2024
Demand deposits	0.635%-1.155%	0.635%-0.705%
Commercial paper	1.49%-1.50%	-

7. NOTES AND TRADE RECEIVABLES

	December 31
	2025	2024
Notes receivable
Gross carrying amount	$ -	$ 817
Less: Loss allowance	-	-
	$ -	$ 817
Trade receivables
Gross carrying amount	$ 256,226	$ 218,425
Less: Loss allowance	-	-
	$ 256,226	$ 218,425

The main credit period for the Company ranges from 30 to 180 days. In order to minimize credit risk, the management of the Company has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Company reviews the recoverable amount of each individual trade receivables at the end of the year to ensure that adequate allowance is made for possible irrecoverable amounts. In this regard, the management believes the Company's credit risk was significantly reduced.

The Company measures the loss allowance for trade receivables at an amount equal to lifetime ECLs. The expected credit losses on trade receivables are estimated using a provision matrix prepared by reference to the past default experience of the customer, the customer's current financial position, economic condition of the industry in which the customer operates, as well as the GDP forecasts and industry outlook. As the Company's historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Company's different customer base.

The following table details the loss allowance of trade receivables based on the Company's provision matrix.

December 31, 2025

	Not Past Due	1 to 60 Days Past Due	61 to 120 Days Past Due	121 to 180 Days Past Due	Over 180 Days Past Due	Total
Expected credit loss rate	0.00%	0.00%	0.00%	0.00%	100%
Gross carrying amount	$ 251,780	$ 4,446	$ -	$ -	$ -	$ 256,226
Loss allowance (Lifetime ECLs)	-	-	-	-	-	-
Amortized cost	$ 251,780	$ 4,446	$ -	$ -	$ -	$ 256,226

December 31, 2024

	Not Past Due	1 to 60 Days Past Due	61 to 120 Days Past Due	121 to 180 Days Past Due	Over 180 Days Past Due	Total
Expected credit loss rate	0.00%	0.00%	0.00%	0.00%	100%
Gross carrying amount	$ 217,207	$ 2,035	$ -	$ -	$ -	$ 219,242
Loss allowance (Lifetime ECLs)	-	-	-	-	-	-
Amortized cost	$ 217,207	$ 2,035	$ -	$ -	$ -	$ 219,242

8. INVENTORIES

	December 31
	2025	2024
Merchandise	$ 82,951	$ 41,082
Project in progress	657	2,049
	$ 83,608	$ 43,131

The operating costs related to inventories were $296,101 thousand and $440,402 thousand for the years ended December 31, 2025 and 2024, respectively.

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9. OTHER FINANCIAL ASSETS

	December 31
	2025	2024
Time deposits with original maturities of more than 3 months	$ 600,000	$ 149,960

The market rate intervals of time deposits with original maturities of more than 3 months at the end of the year were as follows:

	December 31
	2025	2024
Time deposits with original maturities of more than 3 months	1.680%-1.725%	0.610%-1.710%

10. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

	December 31
	2025	2024
Non-current
Foreign unlisted shares	$ 14,572	$ 16,840

11. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

	December 31
	2025	2024
Non-current
Domestic listed shares	$ 1,922	$ -
Foreign unlisted shares	66,478	-
	$ 68,400	$ -

In March 2025, the Company acquired ordinary shares of CyCraft Technology Corporation for $65,000 thousand, and in November 2025, it acquired Class C preferred shares of Fubon Financial Holding Co., Ltd. for $1,937 thousand. The aforementioned domestic and foreign equity investments are held for medium- to long-term strategic purposes, and are expected to generate returns through long-term capital appreciation.

The management of the Company elected to designate these investments in equity instruments as at FVTOCI as they believe that recognizing short-term fluctuations in these investments' fair value in profit or loss would not be consistent with the Company's strategy of holding these investments for long-term purposes.

12. FINANCIAL ASSETS AT AMORTIZED COST

	December 31
	2025	2024
Non-current
Domestic corporate bonds	$ 20,300	$ -

In December 2025, the Company acquired a 10-year secured cumulative subordinated corporate bond issued by Mercuries Life Insurance Co., Ltd. for $20,300 thousand.

13. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

	December 31
	2025	2024
Investments in associate
Baohwa Trust Co., Ltd.	$ 18,269	$ 11,967

The nature of activities, principal place of business, and the Company's proportion of ownership and voting rights in the aforementioned associate as of the balance sheet date are as follows:

Name of Associate	Nature of Activities	Principal Place of Business	Proportion of Ownership and Voting Rights
			December 31
			2025	2024
Baohwa Trust Co., Ltd.	Information security services	Taiwan	25%	25%

Aggregate information of associate that is not individually material is as follows:

	For the Year Ended December 31
	2025	2024
The Company's share of:
Profit from operations	$ 6,302	$ 1,650
Other comprehensive income	-	-
Total comprehensive income for the year	$ 6,302	$ 1,650

14. PROPERTY, PLANT AND EQUIPMENT

	Computer Equipment	Office Equipment	Leasehold Improvements	Other Equipment	Total
Cost
Balance on January 1, 2024	$ 226,560	$ 4,159	$ 6,701	$ 424	$ 237,844
Additions	20,656	2,966	-	36	23,658
Disposals	(2,230)	(38)	-	-	(2,268)
Balance on December 31, 2024	$ 244,986	$ 7,087	$ 6,701	$ 460	$ 259,234
					(Continued)

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Occupation	Computer Equipment	Office Equipment	Leasehold Improvements	Other Equipment	Total
Accumulated depreciation
Balance on January 1, 2024	$ 125,101	$ 2,969	$ 2,420	$ 424	$ 130,914
Depreciation expenses	39,483	655	2,233	7	42,378
Disposals	(2,230)	(38)	-	-	(2,268)
Balance on December 31, 2024	$ 162,354	$ 3,586	$ 4,653	$ 431	$ 171,024
Carrying amount on December 31, 2024	$ 82,632	$ 3,501	$ 2,048	$ 29	$ 88,210
Cost
Balance on January 1, 2025	$ 244,986	$ 7,087	$ 6,701	$ 460	$ 259,234
Additions	16,829	283	-	-	17,112
Disposals	(1,462)	(1,540)	-	-	(3,002)
Balance on December 31, 2025	$ 260,353	$ 5,830	$ 6,701	$ 460	$ 273,344
Accumulated depreciation
Balance on January 1, 2025	$ 162,354	$ 3,586	$ 4,653	$ 431	$ 171,024
Depreciation expenses	38,344	1,509	2,048	12	41,913
Disposals	(1,462)	(1,540)	-	-	(3,002)
Balance on December 31, 2025	$ 199,236	$ 3,555	$ 6,701	$ 443	$ 209,935
Carrying amount on December 31, 2025	$ 61,117	$ 2,275	$ -	$ 17	$ 63,409
					(Concluded)

No impairment loss was recognized or reversed for the years ended December 31, 2025 and 2024.

The above items of property, plant and equipment used by the Company are depreciated on a straight-line basis over their estimated useful lives as follows:

Computer equipment 3-5 years
Office equipment 3-5 years
Leasehold improvements 3-5 years
Other equipment 3-5 years

15. LEASE ARRANGEMENTS

a. Right-of-use assets

	December 31
	2025	2024
Carrying amount
Buildings	$ 21,203	$ 12,535
Transportation equipment	866	1,044
	$ 22,069	$ 13,579

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	For the Year Ended December 31
	2025	2024
Additions to right-of-use assets	$ 34,884	$ 14,227
Depreciation charge for right-of-use assets
Buildings	$ 25,274	$ 22,660
Transportation equipment	616	620
	$ 25,890	$ 23,280
b. Lease liabilities
	December 31
	2025	2024
Carrying amounts
Current	$ 5,716	$ 13,364
Non-current	$ 16,924	$ 462
Range of discount rate for lease liabilities was as follows:
	December 31
	2025	2024
Buildings	2.18%	1.81%-2.20%
Transportation equipment	2.05%-2.18%	1.81%-2.05%

c. Material leasing activities and terms

The Company leases certain buildings and transportation equipment for the use of operation with lease terms of 1 to 6 years. The Company does not have bargain purchase options to acquire the leasehold buildings and transportation equipment at the end of the lease terms.

d. Other lease information

	For the Year Ended December 31
	2025	2024
Total cash outflow for leases	$ 26,070	$ 23,763

All lease commitments (the Company as a lessee) with lease terms commencing after the balance sheet dates are as follows:

	December 31
	2025	2024
Lease commitments	$ 45,941	$ 10,286

16. INTANGIBLE ASSETS

	Computer Software	Trademark	Total
Cost
Balance on January 1 and December 31, 2024	$ 14,820	$ 203	$ 15,023
Accumulated amortization
Balance on January 1, 2024	$ 13,263	$ 10	$ 13,273
Amortization expenses	815	41	856
Balance on December 31, 2024	$ 14,078	$ 51	$ 14,129
Carrying amount on December 31, 2024	$ 742	$ 152	$ 894
Cost
Balance on January 1 and December 31, 2025	$ 14,820	$ 203	$ 15,023
Accumulated amortization
Balance on January 1, 2025	$ 14,078	$ 51	$ 14,129
Amortization expenses	742	40	782
Balance on December 31, 2025	$ 14,820	$ 91	$ 14,911
Carrying amount on December 31, 2025	$ -	$ 112	$ 112

Intangible assets are amortized on a straight-line basis over their estimated useful lives as follows:

Computer software
Trademark

3-5 years
5 years

	For the Year Ended December 31
	2025	2024
An analysis of amortization by function
Operating costs	$ 44	$ 53
Selling and marketing expenses	697	762
General and administrative expenses	41	41
Research and development expenses	-	-
	$ 782	$ 856

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17. OTHER ASSETS

	December 31
	2025	2024
Non-current
Refundable deposits	$ 41,220	$ 46,444
Time deposits pledged as collateral (Note 30)	40,273	46,813
	$ 81,493	$ 93,257

18. OTHER PAYABLES

	December 31
	2025	2024
Accrued salary and compensation	$ 163,623	$ 144,823
Accrued compensation to employees and remuneration to directors	31,694	27,562
Others	21,399	31,273
	$ 216,716	$ 203,658

19. RETIREMENT BENEFIT PLANS

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

20. EQUITY

a. Ordinary shares

	December 31
	2025	2024
Shares authorized (in thousands of shares)	100,000	100,000
Shares authorized	$ 1,000,000	$ 1,000,000
Shares issued and fully paid (in thousands of shares)	40,677	36,340
Shares issued and fully paid	$ 406,770	$ 363,400

Each issued ordinary share with par value of $10 is entitled the right to vote and receive dividends.

On January 25, 2024, the Company's board of directors resolved to issue 985 thousand shares with a par value of $10 as new shares designated for employee share options exercised in 2023, with the capital increase effective on the same day. On February 5, 2024, the above transaction was approved by Department of Commerce, MOEA, and the related advance receipts of $18,799 thousand were reclassified to ordinary shares and capital surplus - additional paid-in capital.

On March 28, 2024, the Company’s board of directors resolved to issue 694 thousand shares with a par value of $10 as new shares designated for employee share options exercised in 2024, with the capital increase effective on the same day. On April 9, 2024, the above transaction was approved by Department of Commerce, MOEA.

On December 19, 2024, the Company’s board of directors resolved to issue 20 thousand shares with a par value of $10 as new shares designated for employee share options exercised in 2024, with the capital increase effective on the same day. On January 20, 2025, the above transaction was approved by Department of Commerce, MOEA.

On February 21, 2025, the Company’s board of directors resolved to issue 5 thousand shares with a par value of $10 as new shares designated for employee share options exercised in 2024, with the capital increase effective on the same day. On March 11, 2025, the above transaction was approved by Department of Commerce, MOEA, and the related advance receipts of $95 thousand were reclassified to ordinary shares and capital surplus - additional paid-in capital.

On May 5, 2025, the Company’s board of directors resolved to issue 640 thousand shares with a par value of $10 as new shares designated for employee share options exercised in 2025, with the capital increase effective on the same day. On May 20, 2025, the above transaction was approved by Department of Commerce, MOEA.

On August 6, 2025, the Company’s board of directors resolved to issue 9 thousand shares with a par value of $10 as new shares designated for employee share options exercised in 2025, with the capital increase effective on the same day. On August 26, 2025, the above transaction was approved by Department of Commerce, MOEA.

In connection with the public underwriting conducted prior to the Company’s initial listing, the Board of Directors resolved on June 25, 2025 to increase capital through a cash capital increase by issuing 3,683 thousand new shares with a par value of NT$10 per share. After the capital increase, the Company’s paid-in capital amounted to NT$406,770 thousand. The aforementioned cash capital increase was approved and became effective upon filing with the Taiwan Stock Exchange Corporation on July 8, 2025. The Board authorized the Chairman to set September 4, 2025 as the record date for the capital increase, and the registration of the change was completed on September 23, 2025.

Of the newly issued shares under the cash capital increase, 15% of the total issuance, amounting to 552 thousand shares, were reserved for employee subscription. The remaining 85%, totaling 3,131 thousand shares, were offered through book-building auction and public subscription as part of the pre-listing public offering. The book-building auction shares were issued at a premium price based on the weighted average winning bid price of NT$299.97 per share. The subscription price for both employee subscriptions and public subscriptions was NT$238 per share, issued at a premium. The total proceeds of NT$1,031,797 thousand were fully received on September 4, 2025. Underwriting fees and other related issuance costs incurred in connection with this cash capital increase amounted to NT$3,000 thousand. As such costs represent necessary issuance expenses, they were deducted from capital surplus arising from share premium.

On February 11, 2026, the Company’s board of directors resolved to issue 2 thousand shares with a par value of $10 as new shares designated for employee share options exercised in 2025, with the capital increase effective on the same day. On December 31, 2025, the Company has received $38 thousand in advance for the exercise of employee share options.

29 -

b. Capital surplus

	December 31
	2025	2024
Issuance of ordinary shares	$ 1,076,969	$ 78,491
Share of changes in capital surplus of associates	5,280	5,280
Employee share options	277	149
	$ 1,082,526	$ 83,920

Capital surplus - additional paid-in capital may be utilized to offset deficit. In addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Company's capital surplus and to once a year).

Capital surplus arising from share of changes in capital surplus of associates may be only used to offset deficit.

Capital surplus arising from employee share options cannot be utilized; however, the capital surplus transferred upon expiration may be used to offset deficit.

c. Retained earnings and dividends policy

Under the dividends policy as set forth in the Articles, where the Company made a profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit, except when the legal reserve equals the Company's paid-in capital. Any remaining profit together with any undistributed retained earnings shall be used by the Company's board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders' meeting for the distribution of dividends and bonuses to shareholders. For the policies on the distribution of compensation of employees and remuneration of directors, refer to compensation of employees and remuneration of directors in Note 22-e.

In addition, the Company's Articles states that no less than 50% of the distributable earnings shall be appropriated for the distribution of dividends to shareholders, which may be distributed in the form of cash and/or stock dividends. Among these, the cash dividends shall not be less than 50% of the total dividends distributed. The actual distribution ratio may be adjusted based on the Company's profitability, capital expenditure plans, and financial position for the year. The board of directors shall propose the distribution plan in accordance with relevant laws and submit it to the shareholders' meeting for approval.

An appropriation of earnings to a legal reserve shall be made until the legal reserve equals the Company's paid-in capital. The legal reserve may be used to offset deficits. If the Company has no deficit and the legal reserve has exceeded 25% of the Company's paid-in capital, the excess may be transferred to capital or distributed in cash.

The appropriations of earnings for 2024 and 2023, which were approved in the shareholders' meetings on May 26, 2025 and June 12, 2024, respectively, were as follows:

	Appropriation of Earnings
	For the Year Ended December 31
	2024	2023
Legal reserve	$ 37,918	$ 26,951
Cash dividends	341,268	242,558
Cash dividends per share (NT$)	9.23	6.68

On February 21, 2025, the board of directors proposed the appropriations of earnings for 2024. Subsequently, the Company increased its capital by issuing 5 thousand new shares in February 2025 and 640 thousand new shares in May 2025. As a result, the cash dividend per share resolved at the shareholders' meeting on May 26, 2025, decreased from NT$9.39 to NT$9.23.

On February 22, 2024, the board of directors proposed the appropriations of earnings for 2023. Subsequently, the Company increased its capital by issuing 985 thousand new shares in February 2024 and 694 thousand new shares in April 2024. As a result, the cash dividend per share resolved at the shareholders' meeting on June 12, 2024, decreased from NT$6.81 to NT$6.68.

The appropriation of earnings for 2025, which was proposed by the Company's board of directors on February 11, 2026, was as follows:

	For the Year Ended December 31, 2024
Legal reserve	$ 43,693
Cash dividends	393,234
Cash dividends per share (NT$)	9.67

The appropriation of earnings for 2025 will be resolved by the shareholders in their meeting to be held in 2026.

21. REVENUE

	For the Year Ended December 31
	2025	2024
Revenue from contracts with customers
Revenue from the rendering of services	$ 1,704,162	$ 1,519,152
Revenue from the sale of goods	341,408	454,507
	$ 2,045,570	$ 1,973,659

a. Contract balances

	December 31, 2025	December 31, 2024	January 1, 2024
Notes and trade receivables (Note 7)	$ 256,226	$ 219,242	$ 173,925
Contract assets
Revenue from the rendering of services	$ 195,204	$ 136,017	$ 90,060
Contract liabilities - current
Revenue from the rendering of services	$ 175,000	$ 174,315	$ 116,824
Contract liabilities - non-current
Revenue from the rendering of services	$ 15,904	$ 31,443	$ 29,194

The changes in the balance of contract assets and contract liabilities primarily result from the timing difference between the Company's satisfaction of performance obligations and the respective customer's payment.

The Company measures the loss allowance for contract assets at an amount equal to lifetime ECLs. The contract assets will be transferred to trade receivables when the corresponding invoice is billed to the customer, and the contract assets have substantially the same risk characteristics as the trade receivables for the same types of contracts. Therefore, the Company concluded that the expected loss rates for trade receivables can be applied to the contract assets.

	December 31
	2025	2024
Expected credit loss rate	0.00%	0.00%
Gross carrying amount	$ 195,204	$ 136,017
Loss allowance (Lifetime ECLs)	-	-
	$ 195,204	$ 136,017

Revenue in the current year that was recognized from the contract liability balance on the beginning of the year was summarized as follows:

	For the Year Ended December 31
	2025	2024
Revenue from the rendering of services	$ 170,057	$ 118,615

b. Costs to fulfil a contract

	December 31
	2025	2024
Software usage fees	$ 62,601	$ 64,372

For information regarding the costs to fulfil a contract, refer to Note 4, Summary of Material Accounting Policy Information. The amounts recognized in operating costs were $51,212 thousand and $24,852 thousand for the years ended December 31, 2025 and 2024, respectively.

22. NET INCOME

a. Other gains and losses

	For the Year Ended December 31
	2025	2024
(Loss) gain on fair value changes of financial assets mandatorily classified as at FVTPL	$ (2,268)	$ 1,292
Net foreign exchange gains	31	14
Lease modification gains	8	-
Others	(2)	(298)
	$ (2,231)	$ 1,008

b. Finance costs

	For the Year Ended December 31
	2025	2024
Interest on lease liabilities	$ 512	$ 471
Others	22	-
	$ 534	$ 471

c. Depreciation and amortization

	For the Year Ended December 31
	2025	2024
Property, plant and equipment	$ 41,913	$ 42,378
Right-of-use assets	25,890	23,280
Intangible assets	782	856
	$ 68,585	$ 66,514
An analysis of depreciation by function
Operating costs	$ 39,685	$ 44,469
Operating expenses	28,118	21,189
	$ 67,803	$ 65,658
An analysis of amortization by function
Operating costs	$ 44	$ 53
Operating expenses	738	803
	$ 782	$ 856

d. Employee benefits expense

	For the Year Ended December 31
	2025	2024
Post-employment benefits
Defined contribution plan	$ 18,004	$ 16,409
Share-based payments
Equity-settled	643	155
Other employee benefits
Salaries	487,513	437,357
Insurance expenses	34,593	30,162
Others	34,331	31,452
	556,437	498,971
Total employee benefits expense	$ 575,084	$ 515,535
An analysis of employee benefits expense by function
Operating costs	$ 237,967	$ 210,372
Operating expenses	337,117	305,163
	$ 575,084	$ 515,535

e. Compensation of employees and remuneration of directors

According to the Company's Articles, the Company accrues compensation of employees and remuneration of directors and at rates of no less than 5% and no more than 0.5%, respectively, of net profit before income tax, compensation of employees and remuneration of directors. Pursuant to the amendments to the Securities and Exchange Act promulgated in August 2024, the Company has resolved at the shareholders' meeting in 2025 to amend its Articles of Incorporation to stipulate that the portion of employee compensation allocated to grassroots employees shall not be less than 5% of the total employee compensation appropriated for the year.

The compensation of employees and the remuneration of directors (including grassroots employees) for the years ended December 31, 2025 and 2024, which were approved by the Company's board of directors on February 11, 2026 and February 21, 2025, respectively, are as follows:

Accrual rate

	For the Year Ended December 31
	2025	2024
Compensation of employees	5.0%	5.0%
Remuneration of directors	0.5%	0.5%
Amount
	For the Year Ended December 31
	2025	2024
Compensation of employees	$ 28,813	$ 25,056
Remuneration of directors	2,881	2,506

If there is a change in the amounts after the annual financial statements are authorized for issue, the differences are recorded as a change in the accounting estimate.

There is no difference between the actual amounts of compensation by the board of directors resolved to distribute of employees and remuneration of directors and supervisors paid and the amounts recognized in the financial statements for the years ended December 31, 2024 and 2023. Related information is available on the Market Observation Post System website.

23. INCOME TAXES

a. Income tax recognized in profit or loss

Major components of income tax expense are as follows:

	For the Year Ended December 31
	2025	2024
Current tax
In respect of the current year	$ 108,108	$ 94,137
Adjustments for prior year	(10)	(15)
	108,098	94,122
Deferred tax
In respect of the current year	(452)	258
Income tax expense recognized in profit or loss	$ 107,646	$ 94,380

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

	For the Year Ended December 31
	2025	2024
Profit before tax	$ 544,573	$ 473,566
Income tax expense calculated at the statutory rate (20%)	108,915	94,713
Nondeductible expenses in determining taxable income	1	12
Tax-exempt income	(1,260)	(330)
Adjustments for prior years’ tax	(10)	(15)
Income tax expense recognized in profit or loss	$ 107,646	$ 94,380

b. Income tax recognized in other comprehensive income

	For the Year Ended December 31
	2025	2024
Deferred tax
Fair value changes of financial assets at FVTOCI	$ 293	$ -

c. Current tax liabilities

	December 31
	2025	2024
Income tax payable	$ 60,136	$ 58,927

d. Deferred tax assets and liabilities

The movements of deferred tax assets and deferred tax liabilities were as follows:

For the year ended December 31, 2025

Deferred Tax Assets	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Closing Balance
Temporary differences
Unrealized loss on financial assets at FVTPL	$ -	$ 304	$ -	$ 304
Deferred Tax Liabilities	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Closing Balance
Temporary differences
Unrealized gain on financial assets at FVTPL	$ 149	$ (149)	$ 293	$ 293
Unrealized exchange gain	-	1	-	1
	$ 149	$ (148)	$ 293	$ 294

For the year ended December 31, 2024

Deferred Tax Assets	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Closing Balance
Temporary differences
Unrealized loss on financial assets at FVTPL	$ 109	$ (109)	$ -	$ -
Deferred Tax Liabilities	Opening Balance	Recognized in Profit or Loss	Recognized in Other Comprehensive Income	Closing Balance
Temporary differences
Unrealized gain on financial assets at FVTPL	$ -	$ 149	$ -	$ 149

e. Income tax assessments

The income tax returns through 2023 have been assessed by the tax authorities.

24. EARNINGS PER SHARE

The earnings and weighted average number of ordinary shares outstanding used in the computation of earnings per share were as follows:

Net Profit for the Year

	For the Year Ended December 31
	2025	2024
Earnings used in the computation of basic and diluted earnings per share	$ 436,927	$ 379,186

The weighted average number of ordinary shares outstanding (in thousands of shares) was as follows:

	For the Year Ended December 31
	2025	2024
Weighted average number of ordinary shares used in the computation of basic earnings per share	38,093	36,225
Effect of potentially dilutive ordinary shares
Employee share options	2	615
Compensation of employees	110	201
Weighted average number of ordinary shares used in the computation of diluted earnings per share	38,205	37,041

The Company may settle the compensation of employees in cash or shares; therefore, the Company assumes that the entire amount of the compensation will be settled in shares, and the resulting potential shares are included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

25. SHARE-BASED PAYMENT ARRANGEMENTS

Initial Public Offering (IPO) through Public Underwriting.

On June 25, 2025, the Company’s Board of Directors resolved to increase capital through the issuance of 3,683 thousand new shares, of which 15%, amounting to 552 thousand shares, were reserved for employee subscription. If any employee fails to subscribe for shares or abandons their subscription, the chairman is authorized to contact a specific person to subscribe for them.

The cash capital increase shares reserved for employee subscription granted by the Company on August 20, 2025 are priced using the Black-Scholes pricing model, and the inputs to the model are as follows:

| | Granted on
August 20, 2025 |
| --- | --- |
| Grant-date share price ($) | $216.96 |
| Exercise price ($) | $238 |
| Risk-free interest rate | 0.9675% |
| Expected life (in years) | 0.038 |
| Expected volatility | 39.95% |

The expected volatility is based on the average annualized historical stock price volatility of peer sample companies as of the given date.

The aforementioned shares reserved for employee subscription under the cash capital increase are measured at their fair value on the grant date in accordance with International Financial Reporting Standard 2, “Share-based Payment.” The fair value of each employee stock subscription right under the Company’s cash capital increase was $1.03, resulting in the recognition of employee stock-based compensation expense totaling $569 thousand.

Employee Share Option Plan

Pursuant to resolutions of the board of directors, the Company granted 3,500 units and 4,500 units of employee share options on February 20, 2021 and December 20, 2019, respectively. Each unit entitles the holder to subscribe for one thousand ordinary shares of the Company at a subscription price of $19.085 per share; the options are granted to qualified employees of the Company. For any subsequent changes in the Company’s ordinary shares, the exercise price is adjusted in accordance with the formula set forth in the employee share options issuance and subscription policy. The options granted are valid for 5 years and exercisable at certain percentages after the first anniversary of the grant date.

37 -

Information on employee share options was as follows:

	For the Year Ended December 31, 2025
	Granted on February 20, 2021		Granted on December 20, 2019
	Number of Options (In Thousands of Units)	Weighted-average Exercise Price ($)	Number of Options (In Thousands of Units)	Weighted-average Exercise Price ($)
Balance on the beginning of the year	655	$ 19.085	-	$ -
Options exercised	(651)	19.085	-	-
Options forfeited	(2)	-	-	-
Balance on the end of the year	2	19.085	-	-
Options exercisable, end of the year	2	19.085	-	-
Weighted-average remaining contractual life at the end of the period (in years)	0.14		-
	For the Year Ended December 31, 2024
	Granted on February 20, 2021		Granted on December 20, 2019
	Number of Options (In Thousands of Units)	Weighted-average Exercise Price ($)	Number of Options (In Thousands of Units)	Weighted-average Exercise Price ($)
Balance on the beginning of the year	1,519	$ 19.085	40	$ 19.085
Options exercised	(699)	19.085	(20)	19.085
Options forfeited	(165)	-	(20)	-
Balance on the end of the year	655	19.085	-	-
Options exercisable, end of the year	5	19.085	-	-
Weighted-average remaining contractual life at the end of the period (in years)	1.14		-

Options granted on February 20, 2021 and December 20, 2019 are priced using the Black-Scholes pricing model, and the inputs to the model are as follows:

	Granted on February 20, 2021	Granted on December 20, 2019
Grant-date share price ($)	$23.76	$20.17
Exercise price ($)	$19.085	$19.085
Expected dividend yield	15.18%	12.49%
Risk-free interest rate	0.25%	0.54%
Expected life (in years)	5	5
Expected volatility	47.35%	42.41%
Weighted-average fair value of options granted ($)	$3,350	$2,470

Expected volatility is based on the average of annualized historical share price volatility of the Company's comparable companies before the grant date.

Compensation costs recognized were $74 thousand and $155 thousand for the years ended December 31, 2025 and 2024, respectively.

26. CASH FLOW INFORMATION

Changes in Liabilities Arising from Financing Activities

For the year ended December 31, 2025

	Opening Balance	Cash Flows from Financing Activities	Non-cash Changes		Cash Flows from Operating Activities - Interest Paid	Closing Balance
			New Leases	Lease Termination
Lease liabilities	$ 13,826	$(25,558)	$ 34,884	$ -	$(512)	$ 22,640

For the year ended December 31, 2024

	Opening Balance	Cash Flows from Financing Activities	Non-cash Changes		Cash Flows from Operating Activities - Interest Paid	Closing Balance
			New Leases	Lease Termination
Lease liabilities	$ 22,891	$(23,292)	$ 14,227	$ 471	$(471)	$ 13,826

27. CAPITAL MANAGEMENT

The Company manages its capital to ensure that it will be able to continue as going concerns while maximizing the return to stakeholders through the optimization of the debt and equity balance.

The Company is not subject to any externally imposed capital requirements.

28. FINANCIAL INSTRUMENTS

a. Fair value of financial instruments not measured at fair value

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

	December 31
	2025		2024
	Carrying Amount	Fair Value	Carrying Amount	Fair Value
Financial assets
Financial assets at amortized cost
Domestic corporate bonds	$ 20,300	$ 20,002	$ -	$ -

The fair value of the corporate bonds is measured using Level 2 inputs, determined based on publicly available market quotations provided by third-party institutions.

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

1) Fair value hierarchy

December 31, 2025

	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Foreign unlisted shares	$ -	$ -	$ 14,572	$ 14,572
Financial assets at FVTOCI
Domestic listed shares	$ 1,922	$ -	$ -	$ 1,922
Foreign unlisted shares	-	-	66,478	66,478
	$ 1,922	$ -	$ 66,478	$ 68,400

December 31, 2024

	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Foreign unlisted shares	$ -	$ -	$ 16,840	$ 16,840

There were no transfers between Levels 1 and 2 in the current and prior years.

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

For the year ended December 31, 2025

Financial Assets	FVTPL	FVTOCI	Total
Beginning balance	$ 16,840	$ -	$ 16,840
Purchases	-	65,000	65,000
Recognized in profit or loss (included in other gains and losses)	(2,268)	-	(2,268)
Recognized in other comprehensive income (included in unrealized valuation gain/(loss) on financial assets at FVTOCI)	-	1,478	1,478
Ending balance	$ 14,572	$ 66,478	$ 81,050

For the year ended December 31, 2024

Financial Assets	FVTPL
Beginning balance	$ 15,548
Recognized in profit or loss (included in other gains and losses)	1,292
Ending balance	$ 16,840

3) Valuation techniques and inputs applied for Level 3 fair value measurement

The fair value of the unlisted (over-the-counter) foreign stocks was determined with reference to the investee's recent financing activities. If no such recent financing activities were available, the Black-Scholes valuation model was applied to measure the fair value, considering the market transaction price of the investee's comparable companies. One significant unobservable input used in the valuation was the liquidity discount rate. A decrease in the liquidity discount rate would result in an increase in the fair value of the investment.

c. Categories of financial instruments

	December 31
	2025	2024
Financial assets
Financial assets at amortized cost (1)	$ 2,239,531	$ 1,295,268
FVTPL
Mandatorily classified as at FVTPL	14,572	16,840
Financial assets at FVTOCI	68,400	-
Financial liabilities
Amortized cost (2)	296,783	309,921

1) The balances include financial assets at amortized cost, which comprise cash and cash equivalents, notes receivable, trade receivables, trade receivables from related parties, other receivables from related parties, other financial assets, other receivables (classified as other current assets), financial assets at amortized cost, refundable deposits (classified as other non-current assets), and pledged time deposits (classified as other non-current assets).

2) The balances include financial liabilities at amortized cost, which comprise trade payables, trade payables to related parties, partial other payables and guarantee deposits.

d. Financial risk management objectives and policies

The Company's major financial instruments include equity and debt investments, trade receivables, trade payables, and lease liabilities. The Company's corporate treasury function provides services to the business, and monitors and manages the financial risks relating to the operations of the Company through internal risk reports that analyze exposures by degree and magnitude of risks. These risks include market risk (including interest rate risk and other price risk), credit risk and liquidity risk.

1) Market risk

The Company's activities exposed it primarily to the financial risks of changes in interest rates (see (a) below) and other price risk (see (b) below).

There has been no change to the Company's exposure to market risks or the manner in which these risks are managed and measured.

42 -

a) Interest rate risk

The carrying amounts of the Company’s financial assets and financial liabilities with exposure to interest rates at the end of the year were as follows:

	December 31
	2025	2024
Fair value interest rate risk
Financial assets	$ 969,723	$ 69,000
Financial liabilities	22,640	13,826
Cash flow interest rate risk
Financial assets	888,930	767,165

Sensitivity analysis

The sensitivity analysis below was determined based on the Company’s exposure to interest rates for non-derivative instruments at the end of the year. A 25 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

If interest rates had been 25 basis points higher/lower and all other variables were held constant, the Company’s pre-tax profit for the years ended December 31, 2025 and 2024 would have decreased/increased by $2,222 thousand and $1,918 thousand, respectively, which was mainly a result of financial assets with variable interest rate.

b) Other price risk

The Company was exposed to price risk through its investments in equity and debt instrument. Equity and debt instruments are held for strategic rather than for trading purposes, the Company does not actively trade these investments.

Sensitivity analysis

The sensitivity analysis below was determined based on the exposure to price risks at the end of the year.

If equity prices had been 5% higher/lower, pre-tax profit for the years ended December 31, 2025 and 2024 would have increased/decreased by $729 thousand and $842 thousand, respectively, as a result of the changes in fair value of financial assets at FVTPL. For the year ended December 31, 2025, other comprehensive income before tax will increase/decrease by $3,420 thousand as a result of the increase/decrease in the fair value of financial assets measured at fair value through other comprehensive income.

2) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Company. At the end of the year, the Company’s maximum exposure to credit risk, which would cause a financial loss to the Company due to the failure of the counterparty to discharge its obligation could be equal to the carrying amount of the respective recognized financial assets as stated in the balance sheets.

The Company’s concentration of credit risk of 13% and 36% of total amounts of contract assets and trade receivables (including related parties) as of December 31, 2025 and 2024, respectively, was attributable to the Company’s largest customer. The remaining customers are unrelated; thus, credit risk is not highly concentrated.

3) Liquidity risk

The Company manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Company's operations and mitigate the effects of fluctuations in cash flows.

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

The following table details the Company's remaining contractual maturities for its non-derivative financial liabilities with agreed upon repayment periods. The table has been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Company can be required to pay. The table includes both interest and principal cash flows.

December 31, 2025

	On Demand or Less than 1 Month	1-3 Months	3 Months to 1 Year	1-5 Years	5+ Years	Total
Non-interest bearing	$ -	$ 295,623	$ -	$ 1,160	$ -	$ 296,783
Lease liabilities	525	1,034	4,581	16,210	1,516	23,866
	$ 525	$ 296,657	$ 4,581	$ 17,370	$ 1,516	$ 320,649

December 31, 2024

	On Demand or Less than 1 Month	1-3 Months	3 Months to 1 Year	1-5 Years	5+ Years	Total
Non-interest bearing	$ -	$ 308,761	$ -	$ 1,160	$ -	$ 309,921
Lease liabilities	1,140	2,263	10,083	466	-	13,952
	$ 1,140	$ 311,024	$ 10,083	$ 1,626	$ -	$ 323,873

TRANSACTIONS WITH RELATED PARTIES

a. Related party name and category

Related Party Name	Related Party Category
Chunghwa Telecom Co., Ltd.	Parent company
Chunghwa System Integration Co., Ltd.	Fellow subsidiary
CHYP Multimedia Marketing & Communications Co., Ltd	Fellow subsidiary
International Integrated Systems, Inc.	Fellow subsidiary
Honghwa International Co., Ltd.	Fellow subsidiary
Senao International Co., Ltd.	Fellow subsidiary
Chunghwa Telecom Singapore Pte., Ltd	Fellow subsidiary
Chunghwa Telecom Global, Inc.	Fellow subsidiary
Spring House Entertainment Tech. Inc.	Fellow subsidiary
Baohwa Trust Co., Ltd.	Associate
Next Commercial Bank Co., Ltd.	Investments accounted for using the equity method by the parent company
WiAdvance Technology Corporation	Investments accounted for using the equity method by the parent company
Senao Networks, Inc.	Equity-method investments in sister companies

b. The terms of transactions between the Company and its related parties are comparable to those with non-related parties. Transactions between the Company and its related parties are as follows:

1) Operating revenue

Related Party Category	For the Year Ended December 31
	2025	2024
Parent company	$ 353,749	$ 502,683
Fellow subsidiary	24,025	30,352
Investments accounted for using the equity method by the parent company	1,619	1,093
Equity-method investments in sister companies	95	-
Associate	274	90
	$ 379,762	$ 534,218

2) Operating costs and expenses

Related Party Category	For the Year Ended December 31
	2025	2024
Parent company	$ 52,518	$ 52,546
Fellow subsidiary	14,674	26,047
Associate	516	644
	$ 67,708	$ 79,237

3) Contract assets

Related Party Category	For the Year Ended December 31
	2025	2024
Parent company	$ 36,205	$ 34,457
Fellow subsidiary	8,300	4,168
Associate	274	-
	$ 44,779	$ 38,625

4) Receivables from related parties

Line Item	Related Party Category	December 31
		2025	2024
Trade receivables from related parties	Parent company	$ 33,328	$ 160,761
	Fellow subsidiary	1,676	4,534
	Investments accounted for using the equity method by the parent company	-	620
		35,004	165,915
Other receivables from related parties	Parent company	47,761	26,944
		$ 82,765	$ 192,859

The outstanding trade receivables from related parties are unsecured. For the years ended December 31, 2025 and 2024, no impairment losses were recognized for trade receivables from related parties.

Other receivables primarily arise from the network security services jointly provided by the Company and its parent, and the parent company collects the fee on behalf of the Company.

5) Contract liabilities

Related Party Category	December 31
	2025	2024
Parent company	$ 27,731	$ 26,213
Fellow subsidiary	2,244	-
Investments accounted for using the equity method by the parent company	1,167	1,133
	$ 31,142	$ 27,346

6) Payables to related parties

Line Item	Related Party Category	December 31
		2025	2024
Trade payables to related parties	Parent company	$ 24,471	$ 22,511
	Fellow subsidiary	6,615	5,908
	Investments accounted for using the equity method by the parent company	185	333
		$ 31,271	$ 28,752

The outstanding trade payables to related parties are unsecured.

7) Refundable deposits

Related Party Category	December 31
	2025	2024
Parent company	$ 212	$ 10,176

8) Guarantee deposits

Related Party Category	December 31
	2025	2024
Parent company	$ 285	$ 285

9) Acquisition of property, plant and equipment

Related Party Category	For the Year Ended December 31
	2025	2024
Parent company	$ -	$ 39

46 -

10) Lease arrangements

The payments primarily represent rental expenses paid to the parent company for office space. The rental rates are determined with reference to prevailing market rates and are paid on a monthly basis.

Related Party Category	For the Year Ended December 31
		2025	2024
Acquisition of right-of-use assets
Parent company		$ 12,879	$ 12,674
		December 31
Line Item	Related Party Category	2025	2024
Lease liabilities - current	Parent company	$ 1,589	$ 12,736
Lease liabilities - non-current	Parent company	$ -	$ -
		For the Year Ended December 31
Line Item	Related Party Category	2025	2024
Finance costs	Parent company	$ 268	$ 443

c. Remuneration of key management personnel

	For the Year Ended December 31
	2025	2024
Short-term employee benefits	$ 52,016	$ 46,214
Share-based payments	73	-
	$ 52,089	$ 46,214

The remuneration of directors and key executives, as determined by the compensation committee, is based on the performance of individuals and market trends.

ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets were provided as guarantees for project performance warranties and as deposits for bank credit card arrangements:

	December 31
	2025	2024
Pledged time deposits (classified as other non-current assets)	$ 40,273	$ 46,813

47 -

31. SEPARATELY DISCLOSED ITEMS

a. Information on significant transactions:

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

b. Information on investees (Table 3)
c. Information on investments in mainland China: None.

32. SEGMENT INFORMATION

According to information reported periodically to the Company's chief operating decision maker for the purpose of resource allocation and performance assessment, the Company has only one operating segment. The basis of measurement of income from operations is the same as that for the preparation of financial statements under IFRS 8 "Operating Segments" for the years ended December 31, 2025 and 2024.

a. Disaggregation of product revenue

	For the Year Ended December 31
	2025	2024
Revenue from the rendering of services	$ 1,704,162	$ 1,519,152
Revenue from the sale of goods	341,408	454,507
	$ 2,045,570	$ 1,973,659

b. Information on major customers

The Company's revenue from its largest customer was $353,749 thousand and $502,683 thousand for the years ended December 31, 2025 and 2024, respectively, which accounted for 17% and 25% of the total revenue for the years ended December 31, 2025 and 2024, respectively. Other than that, there is no single customer attributing more than 10% of the total revenue.

TABLE 1

CHT SECURITY CO., LTD.

SIGNIFICANT MARKETABLE SECURITIES HELD

DECEMBER 31, 2025

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

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account	December 31, 2025				Note
				Number of Shares	Carrying Amount (Note)	Percentage of Ownership (%)	Fair Value
CHT Security Co., Ltd.	Shares
Preferred shares of TXOne Networks Inc.	-	Financial assets at FVTPL	90,909	$ 14,572	-	$ 14,572	Note
	Class C preferred shares of Fubon Financial Holding Co., Ltd.	-	Financial assets at FVTOCI	36,000	1,922	-	1,922	Note
	Ordinary shares of CyCraft Technology Corporation	-	Financial assets at FVTOCI	911,900	66,478	2.88	66,478	Note
	Bond
Mercuries Life Insurance 2025 Secured Subordinated Cumulative Corporate Bonds, Series 4	-	Financial assets measured at amortized cost	-	20,300	-	20,002

Note: The carrying amount was presented in carrying amount adjusted for fair value measurement.

TABLE 2

CHT SECURITY CO., LTD.

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL

FOR THE YEAR ENDED DECEMBER 31, 2025

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

Buyer	Related Party	Relationship	Transaction Details				Abnormal Transaction		Notes/Trade Receivables (Payables)		Note
			Purchase/Sale	Amount	% of Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
CHT Security Co., Ltd.	Chunghwa Telecom Co., Ltd.	Parent company	Sales	$ 353,749	17	30 days	$ -	-	$ 33,328	11

TABLE 3

CHT SECURITY CO., LTD.

INFORMATION ON INVESTEES

FOR THE YEAR ENDED DECEMBER 31, 2025

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

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount		As of December 31, 2025			Net Income (Loss) of the Investee (Note)	Share of Profit (Loss)	Note
				December 31, 2025	December 31, 2024	Number of Shares	%	Carrying Amount
CHT Security Co., Ltd.	Baohwa Trust Co., Ltd.	Taiwan	Information security services	$ 20,000	$ 20,000	2,000	25	$ 18,269	$ 25,208	$ 6,302

Note: The amount was calculated based on investee's unaudited financial statements.

CHT SECURITY CO., LTD.

THE CONTENTS OF STATEMENTS OF MAJOR ACCOUNTING ITEMS

Item	Statement Index
Major Accounting Items in Assets, Liabilities and Equity
Statement of cash and cash equivalents	1
Statement of notes and trade receivables	2
Statement of inventories	Note 8
Statement of prepayments	3
Statement of changes in financial assets at FVTPL - non-current	4
Statement of changes in financial assets at FVTOCI - non-current	5
Financial assets measured at amortized cost	Note 12
Statement of changes in investments accounted for using the equity method	6
Statement of changes in property, plant and equipment and accumulated depreciation	Note 14
Statement of changes in right-of-use assets and accumulated depreciation	7
Statement of changes in intangible assets	Note 16
Statement of deferred tax assets	Note 23
Statement of other non-current assets	Note 17
Statement of trade payables	8
Statement of other payables	Note 18
Statement of lease liabilities	9
Statement of deferred tax liabilities	Note 23
Major Accounting Items in Profit or Loss
Statement of operating revenue, net	10
Statement of operating costs	11
Statement of operating expenses	12
Statement of employee benefit, depreciation and amortization by function	13

51 -

STATEMENT 1

CHT SECURITY CO., LTD.

STATEMENT OF CASH AND CASH EQUIVALENTS

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Item	Interest rate	Amount
Cash and cash equivalents
Cash on hand		$ 380
Demand deposits (Note 1)		848,657
Cash equivalents
Commercial paper	1.49%-1.50% (Note 2)	349,423
		$ 1,198,460

Note 1: The Company does not have demand deposits denominated in foreign currency.
Note 2: Maturing progressively before February 11, 2026.

STATEMENT 2

CHT SECURITY CO., LTD.

STATEMENT OF NOTES AND TRADE RECEIVABLES

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Customer Name	Amount
Customer A	$ 18,802
Customer B	17,823
Others (Note)	219,601
	$ 256,226

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

53 -

STATEMENT 3

CHT SECURITY CO., LTD.

STATEMENT OF PREPAYMENTS

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Item	Amount
Prepaid software usage fees	$ 56,476
Others (Note)	5,896
	$ 62,372

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

54 -

STATEMENT 4

CHT SECURITY CO., LTD.

STATEMENT OF CHANGES IN FINANCIAL ASSETS AT FVTPL - NON-CURRENT

FOR THE YEAR ENDED DECEMBER 31, 2025

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

Investees	Balance on the Beginning of the Year		Additions		Decrease		Balance on the End of the Year		Provision of Guarantees or Pledges	Note
	Shares (In Thousands)	Amount	Shares (In Thousands)	Amount	Shares (In Thousands)	Amount	Shares (In Thousands)	Amount
Unlisted foreign preferred shares
TXOne Networks Inc.	90,909	$ 16,840	-	$ -	-	$ 2,268	90,909	$ 14,572	None	Note

Note: The decrease for the current year are due to fair value measurement.

STATEMENT 5

CHT SECURITY CO., LTD.

STATEMENT OF CHANGES IN FINANCIAL ASSETS AT FVTOCI - NON-CURRENT

FOR THE YEAR ENDED DECEMBER 31, 2025

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

Investees	Balance on the Beginning of the Year		Additions		Decrease		Balance on the End of the Year		Provision of Guarantees or Pledges	Note
	Shares (In Thousands)	Amount	Shares (In Thousands)	Amount	Shares (In Thousands)	Amount	Shares (In Thousands)	Amount
Foreign unlisted ordinary shares
CyCraft Technology Corporation	-	$ -	911,900	$ 66,478	-	$ -	911,900	$ 66,478	None	Note 1
Listed preferred shares
Class C Preferred Shares of Fubon Financial Holding Co., Ltd.	-	-	36,000	1,937	-	15	36,000	1,922	None	Notes 2 and 3
		$ -		$ 68,415		$ 15		$ 68,400

Note 1: The increase for the current year are due to new investments and fair value measurement adjustments.
Note 2: The increase for the current year is due to new investments.
Note 3: The decrease for the current year are due to fair value measurement.

STATEMENT 6

CHT SECURITY CO., LTD.

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Investees	Balance on the Beginning of the Year		Additions		Decrease		Increase (Decrease) In Using the Equity Method	Balance on the End of the Year			Market Value/ Net Assets Value	Note
	Shares (In Thousands)	Amount	Shares (In Thousands)	Amount	Shares (In Thousands)	Amount		Shares (In Thousands)	Percentage of Ownership %	Amount
Investments accounted for using the equity method
Associate
Unlisted shares
Baohwa Trust Co., Ltd.	2,000	$ 11,967	-	$ -	-	$ -	$ 6,302	2,000	25	$ 18,269	$ 18,269	Notes 1 and 2

Note 1: The net asset value is calculated based on the unaudited financial statements of the investee company.
Note 2: The increase (decrease) in using the equity method is the share of profit (loss) in the current year.

STATEMENT 7

CHT SECURITY CO., LTD.

STATEMENT OF CHANGES IN RIGHT-OF-USE ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Item	Buildings	Transportation Equipment	Total
Cost
Balance on January 1, 2025	$ 38,216	$ 1,859	$ 40,075
Additions	34,446	438	34,884
Decreases	(48,594)	(501)	(49,095)
Balance on December 31, 2025	$ 24,068	$ 1,796	$ 25,864
Accumulated depreciation
Balance on January 1, 2025	$ 25,681	$ 815	$ 26,496
Depreciation expenses	25,274	616	25,890
Decreases	(48,090)	(501)	(48,591)
Balance on December 31, 2025	$ 2,865	$ 930	$ 3,795
Carrying amount on January 1, 2025	$ 12,535	$ 1,044	$ 13,579
Carrying amount on December 31, 2025	$ 21,203	$ 866	$ 22,069

STATEMENT 8

CHT SECURITY CO., LTD.

STATEMENT OF TRADE PAYABLES

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Company Name	Amount
Company A	$ 82,726
Company B	27,994
Company C	13,924
Company D	12,666
Others (Note)	105,643
	$ 242,953

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

59 -

STATEMENT 9

CHT SECURITY CO., LTD.

STATEMENT OF LEASE LIABILITIES

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Item	Lease Term	Discount Rate	Amount
Buildings	1-6 years	2.18%	$ 21,764
Transportation equipment	3-5 years	2.05%-2.18%	876
			22,640
Less: Classified as current portion			5,716
			$ 16,924

60 -

STATEMENT 10

CHT SECURITY CO., LTD.

STATEMENT OF OPERATING REVENUE, NET

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Item	Amount
Operating revenue
Revenue from the rendering of services	$ 1,704,162
Revenue from the sale of goods	341,408
	2,045,570
Less: Sales returns and allowances	-
Operating revenue, net	$ 2,045,570

61 -

STATEMENT 11

CHT SECURITY CO., LTD.

STATEMENT OF OPERATING COSTS

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Item	Amount
Cost of goods sold	$ 261,071
Project business costs	237,169
Software usage fees	266,742
Salaries	201,471
Others (Note)	118,767
	$ 1,085,220

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

62 -

STATEMENT 12

CHT SECURITY CO., LTD.

STATEMENT OF OPERATING EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

Item	Selling and Marketing Expenses	General and Administrative Expenses	Research and Development Expenses	Total
Salaries (Note 1)	$ 132,819	$ 60,915	$ 92,951	$ 286,685
Depreciation expense	14,886	4,978	8,254	28,118
Others (Note 2)	44,764	39,265	31,549	115,578
	$ 192,469	$ 105,158	$ 132,754	$ 430,381

Note 1: The amount includes the compensation arising from employee share options.
Note 2: The amount of each individual item in others does not exceed 5% of the amount balance.

63 -

STATEMENT 13

CHT SECURITY CO., LTD.

STATEMENT OF EMPLOYEE BENEFIT, DEPRECIATION AND AMORTIZATION BY FUNCTION FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

(In Thousands of New Taiwan Dollars)

	For the Year Ended December 31
	2025			2024
	Classified as Operating Costs	Classified as Operating Expenses	Total	Classified as Operating Costs	Classified as Operating Expenses	Total
Employee benefits expense
Salaries (Note 4)	$ 201,471	$ 269,942	$ 471,413	$ 179,741	$ 242,097	$ 421,838
Labor and health insurance expenses	13,458	21,135	34,593	12,544	17,618	30,162
Pension expenses	7,131	10,873	18,004	6,860	9,549	16,409
Remuneration of directors	-	16,743	16,743	-	15,674	15,674
Others	15,907	18,424	34,331	11,227	20,225	31,452
	$ 237,967	$ 337,117	$ 575,084	$ 210,372	$ 305,163	$ 515,535
Depreciation	$ 39,685	$ 28,118	$ 67,803	$ 44,469	$ 21,189	$ 65,658
Amortization	$ 44	$ 738	$ 782	$ 53	$ 803	$ 856

Note 1: The Company had an average of 367 and 332 employees, including 6 and 6 directors who did not serve concurrently as employees, for the years ended December 31, 2025 and 2024, respectively.
Note 2: The average employee benefit expense was $1,547 thousand and $1,533 thousand for the years ended December 31, 2025 and 2024, respectively. The average employee benefit expense equals the total employee benefit expense less total remuneration of directors, divided by the number of employee less number of directors who did not serve concurrently as directors.
Note 3: The average salaries were $1,306 thousand and $1,294 thousand for the years ended December 31, 2025 and 2024, respectively. The average salaries equals the total salaries divided by the number of employee less number of directors who did not serve concurrently as directors.

The average salaries adjustment rate was 0.93%. The average salaries of the current year less the average salaries for the prior year, divided by the average salaries for the prior year.

Note 4: The amount includes the compensation cost recognized for employee share options.

AI assistant

CHT Security — Audit Report / Information 2026

52695_rns_2026-05-12_24904e3e-272e-4f48-93e3-e983f1011eb2.pdf

INDEPENDENT AUDITORS' REPORT

Opinion

Basis for Opinion

Key Audit Matters

Revenue Recognition of Non-standard Customer Contracts for Cybersecurity Professional Services

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

Auditors’ Responsibilities for the Audit of the Financial Statements

Notice to Readers

1. GENERAL INFORMATION

2. APPROVAL OF FINANCIAL STATEMENTS

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

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

The Company as lessee

6. CASH AND CASH EQUIVALENTS

7. NOTES AND TRADE RECEIVABLES

8. INVENTORIES

9. OTHER FINANCIAL ASSETS

10. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

11. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

12. FINANCIAL ASSETS AT AMORTIZED COST

13. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

14. PROPERTY, PLANT AND EQUIPMENT

15. LEASE ARRANGEMENTS

16. INTANGIBLE ASSETS

17. OTHER ASSETS

18. OTHER PAYABLES

19. RETIREMENT BENEFIT PLANS

20. EQUITY

21. REVENUE

22. NET INCOME

23. INCOME TAXES

24. EARNINGS PER SHARE

Net Profit for the Year

25. SHARE-BASED PAYMENT ARRANGEMENTS

Initial Public Offering (IPO) through Public Underwriting.

Employee Share Option Plan

26. CASH FLOW INFORMATION

Changes in Liabilities Arising from Financing Activities

27. CAPITAL MANAGEMENT

28. FINANCIAL INSTRUMENTS

31. SEPARATELY DISCLOSED ITEMS

32. SEGMENT INFORMATION

CHT SECURITY CO., LTD.

SIGNIFICANT MARKETABLE SECURITIES HELD

CHT SECURITY CO., LTD.

CHT SECURITY CO., LTD.

CHT SECURITY CO., LTD.

STATEMENT OF CASH AND CASH EQUIVALENTS

DECEMBER 31, 2025

CHT SECURITY CO., LTD.

STATEMENT OF NOTES AND TRADE RECEIVABLES

DECEMBER 31, 2025

CHT SECURITY CO., LTD.

STATEMENT OF PREPAYMENTS

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

CHT SECURITY CO., LTD.

CHT SECURITY CO., LTD.

STATEMENT OF CHANGES IN FINANCIAL ASSETS AT FVTOCI - NON-CURRENT

FOR THE YEAR ENDED DECEMBER 31, 2025

CHT SECURITY CO., LTD.

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

FOR THE YEAR ENDED DECEMBER 31, 2025

CHT SECURITY CO., LTD.

STATEMENT OF CHANGES IN RIGHT-OF-USE ASSETS AND ACCUMULATED DEPRECIATION FOR THE YEAR ENDED DECEMBER 31, 2025

CHT SECURITY CO., LTD.

STATEMENT OF TRADE PAYABLES

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

CHT SECURITY CO., LTD.

STATEMENT OF LEASE LIABILITIES

DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

CHT SECURITY CO., LTD.

STATEMENT OF OPERATING REVENUE, NET

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

CHT Security Audit Report / Information 2026