Stock Code: 3032

Compucase Enterprise Co., Ltd.

And Subsidiaries

Consolidated Financial Report and

CPA’s Audit Report

2025 and 2024

Address: No. 225, Ln. 54, Sec. 2, Anhe Rd., Annan Dist., Tainan City
Telephone: +886-6-356-0606

This version is prepared in the original Chinese
language and has not been reviewed by the CPA.

March 12, 2026

REPRESENTATION LETTER

For the year of 2025 (from January 1 to December 31, 2025), the companies which shall be included in the consolidated financial report of affiliates prepared in accordance with the "Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises" are the same as those which shall be included in the consolidated financial report of the parent company and subsidiaries pursuant to IFRS 10, and the relevant information which shall be disclosed in the consolidated financial report of affiliates has been disclosed in the foregoing consolidated financial report of the parent company and subsidiaries. Therefore, no separate consolidated financial report of affiliates has been prepared.

Declared by:

Company name: Compucase Enterprise Co., Ltd.

Chairman: Wang Chun-Tung

CPA's Audit Report

To Compucase Enterprise Co., Ltd.:

Opinion

We audited the consolidated balance sheets of Compucase Enterprise Co., Ltd. and its subsidiaries ("HEC Group") as of December 31, 2025 and 2024, their consolidated statements of comprehensive income, consolidated statements of changes in equity and consolidated statements of cash flows for the periods from January 1 to December 31, 2025 and 2024, and the notes to their consolidated financial statements (including the summary of material accounting policies).

According to the result of our audit, with respect to all material aspects, the foregoing consolidated financial statements were prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, interpretations and pronouncements of interpretation approved and published by the Financial Supervisory Commission, and thus provided a fair presentation of the consolidated financial positions of HEC Group as of December 31, 2025 and 2024 and the consolidated financial performance and cash flows for the periods from January 1 to December 31, 2025 and 2024.

Basis of Audit Opinions

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

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in the audit of the consolidated financial statements of HEC Group and subsidiaries for 2025. Such matters were addressed in the context of our audit of the consolidated financial statements as a whole and, in forming our opinions thereon, we have not provided any separate

opinion on these matters.

The following are the key audit matters in the consolidated financial statements of HEC Group for 2025:

Truthfulness of the recognition of revenues from certain customers

The main sources of revenues for HEC Group are revenues from the sales of computer and server casings, power supplies, computer peripherals, and medical equipment. Due to significant growth in sales revenue from specific customers in the fiscal year 2024 compared to 2023, there was also a discrepancy between the average collection days and the credit days provided. Therefore, in accordance with the requirement of the Statement of Auditing Standards that revenues be presumed as a significant risk, we have deemed the truthfulness of the recognition of the sales revenues from those certain customers to be a key audit matter.

The main audit procedures conducted by us include:

I. Understanding and sample testing of the effectiveness of the design and implementation of internal controls related to the recognition of revenues.

II. Sampling in the statements of sales revenues from certain customers and reviewing shipment certificates to confirm if such revenues have actually occurred.

III. Reviewing samples of payment receipts to check if the payers match the purchasers.

Acquisition of Investee Subsidiary

Wei Chuan Technology Corporation and its subsidiary Global Hongfu Corporation acquired 100% equity ownership of Amber Investment Partners Limited and the convertible bonds issued by the company during fiscal year 2025 (ROC Year 114). Due to the special nature of these transactions and their significance during the year, we identified this merger and acquisition transaction as a key audit matter in our audit.

The principal audit procedures we performed included:

I. Obtaining an understanding of the Company's procedures and internal controls related to the acquisition or disposal of assets, and evaluating whether the design and implementation of such internal controls were effective.

II. Reviewing the acquisition agreements and payment supporting documents, and confirming whether the related accounting treatments were appropriate.

III. Obtaining the purchase price allocation report, evaluating the

independence, professional competence, and qualifications of the external expert engaged by management, and engaging valuation specialists to review the reasonableness of the valuation methods and significant assumptions adopted in the purchase price allocation report.

Other Matters

Among the subsidiaries included in the consolidated financial statements of the Wei Chuan Group, the financial statements of Amber Investment Partners Limited and its subsidiaries for fiscal year 2025 (ROC Year 114) were audited by other independent auditors.

As of December 31, 2025, the total assets of the aforementioned subsidiaries amounted to NT$6,517,061 thousand, representing 32% of the consolidated total assets. In addition, their net operating revenue for the period from July 1 to December 31, 2025 amounted to NT$2,287,789 thousand, accounting for 20% of the consolidated net operating revenue.

HEC has prepared the parent-only financial statements for 2025 and 2024, the aforementioned financial statements were audited by us, and unqualified audit reports with an Emphasis of Matter paragraph and standard unqualified audit reports were issued for reference.

Responsibilities of the Management and Governing Bodies for Consolidated Financial Statements

The management is responsible for preparing the financial statements with fair presentation in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, interpretations and pronouncements of interpretation approved and published by the Financial Supervisory Commission, and maintaining the necessary internal control related to preparation of the consolidated financial statements to ensure that the consolidated financial statements are free of material misstatement due to fraud or error.

During preparation of the consolidated financial statements, the management is also responsible for evaluating HEC Group's going concern ability, disclosure of relevant matters and application of the going concern basis of accounting, unless the management intends to liquidate or cease the operation of HEC Group, or there are no actually feasible solutions other than liquidation or cessation of operation.

The governing bodies (including the Audit Committee) of HEC Group are responsible for supervising the process of financial reporting.

Responsibilities of CPAs for the Audit of Consolidated Financial Statements

The purpose of our audit of the consolidated financial statements is to obtain reasonable

assurance about whether the consolidated financial statements are free of material misstatements due to fraud or error, with an audit report issued thereafter. Reasonable assurance means a high degree of assurance. However, there is no guarantee that any material misstatement contained in the consolidated financial statements will be discovered during an audit conducted in accordance with relevant auditing standards. A misstatement may be due to fraud or error. A misstatement is deemed material if the individual or aggregate amount misstated is reasonably expected to affect economic decisions made by users of the consolidated financial statements.

We rely on our professional judgment and professional skepticism during an audit conducted in accordance with relevant auditing standards. We also perform the following tasks:

I. We identify and assess the risk of misstatement in the consolidated financial statements due to fraud or error, design and implement appropriate measures in response to the assessed risk, and acquire sufficient and appropriate audit evidence as the basis of our audit opinions. Since fraud may involve collusion, forgery, intentional omission, fraudulent statement or violation of internal control, the risk of misstatement due to fraud is higher than that due to error.

II. We acquire necessary understanding of the internal control related to an audit to design audit procedures appropriate for the current circumstances, provided that the purpose of the foregoing is not to express opinions regarding the effectiveness of the internal control of HEC Group.

III. We assess the appropriateness of the accounting policies adopted by the management and the reasonableness of the accounting estimates and relevant disclosures made by the management.

IV. We have drawn a conclusion about the appropriateness of the application of the going concern basis of accounting by the management and whether there is material uncertainty in an event or circumstances which may cast significant doubt about the ability of HEC Group to remain a going concern. If any material uncertainty is deemed to exist in such event or circumstance, we must provide a reminder in the audit report for the users of the consolidated financial statements to pay attention to the relevant disclosures therein, or revise our audit opinions when any such disclosure is inappropriate. Our conclusion is based on the audit evidence obtained as of the date of this audit report. However, future events or circumstances could result in a situation where HEC Group is no longer able to remain a going concern.

V. We assess the overall presentation, structure and contents of the consolidated financial

statements (including relevant notes) and whether the consolidated financial statements provide a fair presentation of the relevant transactions and events.

VI. We acquire sufficient and appropriate audit evidence of the financial information of the entities forming HEC Group to provide opinions regarding the consolidated financial statements. We are responsible for guidance, supervision and implementation in relation to audit cases and for formation of audit opinions for HEC Group.

The matters for which we communicate with the governing bodies include the planned scope and time of audit, and our material audit findings (including the significant deficiencies of internal control identified during the audit).

We also provide a declaration to the governing bodies stating that our CPAs who are subject to independence requirements have complied with the independence requirements in the Standards of Professional Ethics for Certified Public Accountants, and we communicate with the governing bodies regarding all relationships and other matters (including relevant safeguard measures) which are deemed likely to affect the independence of CPAs.

The key audit matters in the audit of the consolidated financial statements of HEC Group and subsidiaries for 2025 have been determined by us from the matters regarding which we have communicated with the governing bodies. We have specified such matters in the audit report, except where public disclosure of certain matters is prohibited by applicable laws or regulations, or where, under very exceptional circumstances, we have decided not to cover communicate certain matters in the audit report due to the reasonable expectation that any negative effect arising from such communication would be greater than the public interest enhanced.

Deloitte Taiwan
CPA Wang Teng-Wei
CPA Li Chi-Chen

No. of Approval Document from the
Financial Supervisory Commission
Jin-Guan-Zheng-Shen-Zi No. 1100356048

No. of Approval Document from the
Securities and Futures Commission
Tai-Cai-Zheng-Liu-Zi No. 0920123784

March 12, 2026
- 7 -

Compucase Enterprise Co., Ltd. And Subsidiaries

Consolidated Balance Sheet

Unit: NTD thousand

Code	Asset	December 31, 2025		December 31, 2024
		Amount	%	Amount	%
Current assets
1100	Cash and cash equivalents (Notes 4 and 6)	$ 2,638,405	13	$ 2,032,809	22
1110	Financial assets measured at fair value through profit/loss - current (Notes 4 and 7)	8,055	-	982,052	10
1136	Financial assets measured at amortized cost - current (Notes 4, 8 and 34)	2,886,596	14	420,926	5
1150	Notes receivable (Notes 4, 9 and 25)	227,606	1	3,579	-
1170	Accounts receivable (Notes 4, 9 and 25)	3,365,048	17	2,026,471	21
1200	Other receivables (Note 4)	140,651	1	75,114	1
1220	Current income tax assets (Notes 4 and 27)	46,057	-	366	-
130X	Inventory (Notes 4 and 10)	2,116,577	10	1,546,390	16
1410	Prepayments (Note 11)	430,616	2	368,817	4
1479	Other current assets	14,010	-	6,770	-
11XX	Total current assets	11,873,621	58	7,463,294	79
Non-current assets
1535	Financial assets measured at amortized cost - non-current (Notes 4 and 8)	44,960	5	494,042	5
1550	Investment under the equity method (Notes 4 and 13)	28,819	-	27,608	-
1600	Property, plant and equipment (Notes 4 and 14)	1,821,705	12	1,139,550	12
1755	Right-of-use assets (Notes 4 and 15)	770,345	2	177,472	2
1760	Net investment property (Notes 4 and 16)	53,018	1	53,018	1
1805	Goodwill (Note 4 and 17)	3,801,718	-	638	-
1821	Intangible assets (Notes 4 and 18)	1,775,595	-	11,400	-
1840	Deferred income tax assets (Notes 4 and 27)	111,371	1	47,651	1
1915	Prepayments for equipment	31,741	-	9,345	-
1920	Deposits paid	41,335	-	5,365	-
1975	Net defined benefit assets - non-current (Notes 4 and 23)	29,605	-	27,447	-
1990	Other non-current assets	12,094	-	9,381	-
15XX	Total non-current assets	8,522,306	21	2,002,917	21
1XXX	Total assets	$ 20,395,927	100	$ 9,466,211	100
Code	Liabilities and equity
Current liabilities
2100	Short-term loans (Notes 19 and 34)	$ 5,631,264	28	$ 1,971,000	21
2120	Financial liabilities measured at fair value through profit/loss - current (Notes 4 and 7)	-	-	10,668	-
2130	Contract liabilities - current (Notes 4 and 25)	133,490	1	186,402	2
2150	Notes payable (Note 21)	1,753	-	-	-
2170	Accounts payable (Note 21)	2,075,819	10	1,836,949	20
2180	Accounts payable - related parties (Notes 21 and 33)	18,069	-	10,483	-
2219	Other payables (Note 22)	1,088,917	5	652,206	7
2230	Current income tax liabilities (Notes 4 and 27)	297,877	2	95,162	1
2250	Liability provision - current (Notes 4 and 27)	1,520,392	7	26,652	-
2280	Lease liabilities - current (Notes 4 and 15)	79,194	-	28,445	-
2320	Current portion of long-term borrowings(Notes 19 and 34)	3,414,870	17	-	-
2399	Other current liabilities(Notes 4 and 23)	191,946	1	102,315	1
21XX	Total current liabilities	14,453,591	71	4,900,282	52
Non-current liabilities
2500	Non-current financial liabilities at fair value through profit or loss (Notes 4, 7 and 20)	26,800	-	-	-
2530	Corporate bonds payable (Notes 4 and 20)	1,868,512	9	-	-
2570	Deferred income tax liabilities (Notes 4, 5 and 27)	192,987	1	11,177	-
2580	Lease liabilities - non-current (Notes 4 and 15)	429,088	2	34,365	-
2640	Net defined benefit liabilities - non-current (Notes 4 and 23)	3,628	-	5,974	-
2645	Deposits received	1,053	-	818	-
25XX	Total non-current liabilities	2,522,068	12	52,334	-
2XXX	Total liabilities	16,975,659	83	4,952,616	52
Equity attributable to shareholders of the parent (Notes 4, 24 and 29)
3100	Share capital	1,132,856	6	1,132,856	12
3200	Capital reserves	637,189	3	441,767	4
Retained earnings
3310	Legal reserves	610,471	3	558,587	6
3320	Special reserves	184,008	1	316,024	3
3350	Undistributed earnings	( 111,646 )	( 1 )	1,010,791	11
3300	Total retained earnings	682,833	3	1,885,402	20
3400	Other equity	38,218	-	184,008 )	( 2 )
3500	Treasury stocks	-	-	( 29,532 )	-
31XX	Equity attributable to shareholders of the parent	2,491,096	12	3,246,485	34
36XX	Non-controlling interest (Note 22)	929,172	5	1,267,110	14
3XXX	Total equity	3,420,268	17	4,513,595	48
Total liabilities and equity		$ 20,395,927	100	$ 9,466,211	100

Chairman: Wang Chun-Tung

President: Lee Chia-Ching

Accounting Manager: Chun Fang-Ting

Compucase Enterprise Co., Ltd. And Subsidiaries

Consolidated Statement of Comprehensive Income

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

Code		2025		2024
		Amount	%	Amount	%
4100	Operating revenue (Notes 4 and 25)	$ 11,188,738	100	$ 7,402,013	100
5110	Operating cost (Notes 10, 26 and 33)	8,744,082	78	5,780,533	78
5900	Gross operating profit	2,444,656	22	1,621,480	22
	Operating expense (Notes 9, 26 and 33)
6100	Marketing expense	560,282	5	497,064	7
6200	Management expense	637,739	6	450,047	6
6300	R&D expense	225,260	2	165,733	2
6450	Expected credit loss	5,654	-	25,329	-
6000	Total operating expenses	1,428,935	13	1,138,173	15
6900	Net operating profit	1,015,721	9	483,307	7
	Non-operating revenues and expenses (Notes 4, 13 and 26)
7100	Interest income	95,864	1	115,977	2
7010	Other incomes	132,967	1	36,596	1
7020	Other profits and losses	( 1,749,541 )	( 16 )	102,919	1
7050	Financial cost	( 249,606 )	( 2 )	( 51,557 )	( 1 )
7060	Share of profits/losses of associates accounted for using the equity method	965	-	3,262	-
7000	Total non-operating revenues and expenses	( 1,769,351 )	( 16 )	207,197	3
7900	Pre-tax net profit	( 753,630 )	( 7 )	690,504	10
7950	Income tax expenses (Notes 4, 5 and 27)	376,042	3	51,329	1
8200	Net profit in the current year	( 1,129,672 )	( 10 )	639,175	9
	Other comprehensive income (Notes 13, 23, 24 and 27)
8310	Items not reclassified as profit or loss:
8311	Remeasurement of defined benefits plans	1,553	-	2,214	-

(Continued to next page)

(Continued from previous page)

Code		2025		2024
		Amount	%	Amount	%
8349	Income tax related to items not reclassified	($ 311)	-	($ 443)	-
		1,242	-	1,771	-
8360	Items likely to be subsequently reclassified as profit or loss:
8361	Exchange differences on translation of financial statements of foreign operations	250,512	2	170,187	2
8370	Share of other comprehensive income of associates accounted for using the equity method	246	-	1,404	-
8399	Income tax related to items likely to be reclassified	(23)	-	(2,485)	-
		250,735	2	169,106	2
8300	Other comprehensive income (net after-tax) in the current year	251,977	2	170,877	2
8500	Total comprehensive income in the current year	($ 877,695)	(8)	$ 810,052	11
Net profit attributable to:
8610	Owners of HEC	($ 894,320)	(8)	$ 517,876	7
8620	Non-controlling interest	(235,352)	(2)	121,299	2
8600		($ 1,129,672)	(10)	$ 639,175	9
Total comprehensive income attributable to:
8710	Owners of HEC	($ 671,558)	(6)	$ 650,852	9
8720	Non-controlling interest	(206,137)	(2)	159,200	2
8700		($ 877,695)	(8)	$ 810,052	11
EPS (Note 28)
9750	Basic	($ 7.93)		$ 4.61
9850	Diluted	( 7.93)		4.58

The notes attached hereto constitute part of this consolidated financial report.

Chairman: Wang Chun-Tung

President: Lee Chia-Ching

Accounting Manager: Chen Fang-Ting

Compucase Enterprise Co., Ltd. And Subsidiaries

Consolidated Statement of Changes in Equity

(Reviewed, Not Audited)

Unit: NTD thousand

Code	Share capital	Equity attributable to shareholders of the parent
		Retained earnings				Other equity			Total other equity	Treasury stocks	Total	Non-controlling interest
		Capital reserves	Legal reserves	Special reserves	Undistributed earnings	Exchange differences on translation of financial statements of foreign operations	Unrealized profit/loss on financial assets measured at fair value through other comprehensive income	Total other equity
A1	January 1, 2024	$1,132,856	$441,767	$498,004	$254,240	$1,007,323	($250,621)	($65,404)	($316,025)	($29,532)	$2,988,633	$1,218,458
	Allocation and distribution of earnings in 2023 (Note 24)
B1	Legal reserves	-	-	60,583	-	(60,583)	-	-	-	-	-	-
B3	Special reserves	-	-	-	61,784	(61,784)	-	-	-	-	-	-
B5	Cash dividends - NTD2.03 per share	-	-	-	-	(393,000)	-	-	-	-	(393,000)	-
		-	-	-	-	517,876	-	-	-	-	517,876	121,299
D1	Net profit in 2024	-	-	-	-	959	132,017	-	132,017	-	132,976	37,901
D3	Other after-tax comprehensive income in 2024	-	-	-	-	518,835	132,017	-	132,017	-	650,852	159,200
D5	Total comprehensive income in 2024	-	-	-	-	-	-	-	-	-	-	(111,063)
O1	Decrease in non-controlling interest (Note 24)	-	-	-	-	-	-	-	-	-	-	515
C17	Remuneration cost for share-based payment (Notes 4 and 29)	1,132,856	441,767	558,587	316,024	1,010,791	(118,604)	(65,404)	(184,008)	(29,532)	3,246,485	1,267,110
Z1	Balance on December 31, 2024	-	-	51,884	-	(51,884)	-	-	-	-	-	-
	Allocation and distribution of earnings in 2023 (Note 24)	-	-	-	(132,016)	132,016	-	-	-	-	-	-
B1	Legal reserves	-	-	-	-	(308,785)	-	-	-	-	(308,785)	-
B3	Special reserves	-	156,623	-	-	-	-	-	-	-	156,623	-
B5	Cash dividends - NTD2.73 per share	-	-	-	-	(894,320)	-	-	-	-	(894,320)	(235,352)
C5	Equity component of convertible corporate bonds issued by the Company (Notes 20 and 24)	-	-	-	-	536	222,226	-	222,226	-	222,762	29,215
D1	Net profit in 2025	-	-	-	-	(893,784)	222,226	-	222,226	-	(671,558)	(206,137)
D3	Other after-tax comprehensive income in 2025	-	38,799	-	-	-	-	-	-	29,532	68,331	-
D5	Total comprehensive income in 2025	-	-	-	-	-	-	-	-	-	-	(131,801)
O1	Decrease in non-controlling interest (Note 22)	$1,132,856	$637,189	$610,471	$184,008	($111,646)	$103,622	($65,404)	$38,218	$ -	$2,491,096	$929,172
Z1	Balance on December 31, 2025

The notes attached hereto constitute part of this consolidated financial report.

Chairman: Wang Chun-Tung

President: Lee Chia-Ching

Accounting Manager: Chen Fang-Ting

Compucase Enterprise Co., Ltd. And Subsidiaries

Consolidated Statements of Cash Flows
(In Thousands of New Taiwan Dollars)

Code		2025	2024
	Cash flow from operating activities
A10000	Pre-tax net profit in the current year	($ 753,630)	$ 690,504
A20010	Profits, expenses and losses:
A20100	Depreciation expense	268,179	211,121
A20200	Amortization expense	87,612	3,038
A20300	Expected credit loss	5,654	25,329
A20400	Net loss (profit) on financial assets and liabilities measured at fair value through profit or loss	16,562	21,625
A20900	Financial cost	249,606	51,557
A21200	Interest income	( 95,864)	( 115,977)
A21900	Remuneration cost for share-based payment	38,850	515
A22300	Share of losses of associates accounted for using the equity method	( 965)	( 3,262)
A22500	Profit on disposal of property, plant and equipment	( 718)	( 128)
A22900	Goodwill impairment loss	638	-
A24200	Refund liabilities	91,702	31,625
A24600	Provision of liabilities	1,493,740	13,861
A29900	Other items	18,292	6,571
A30000	Net changes in operating assets and liabilities
A31130	Notes receivable	( 153,485)	( 2,307)
A31150	Accounts receivable	( 112,054)	305,719
A31180	Other receivables	( 79,255)	( 5,821)
A31200	Inventory	397,862	( 5,217)
A31230	Prepayments	( 46,239)	8,356
A31240	Other current assets	( 5,829)	( 2,047)
A32125	Contract liabilities	( 57,773)	103,209
A32130	Notes payable	1,753	-
A32150	Accounts payable (including related parties)	( 300,930)	245,241
A32180	Other payables	55,432	82,211
A32230	Other current liabilities	( 54,658)	5,492
A32240	Net defined benefit liabilities	( 3,087)	( 957)
A33000	Cash generated from operations	1,061,395	1,670,258
A33100	Interest received	120,945	101,649
A33300	Interest paid	( 188,712)	( 51,163)
A33500	Income tax paid	( 260,132)	( 361,827)
AAAA	Net cash inflow from operating activities	733,496	1,358,917
	Cash flow from investing activities
B00040	Acquisition of financial assets measured at amortized cost	( 3,326,023)	( 857,783)
B00050	Disposal of financial assets measured at amortized cost	$1,416,799	$ 585,692

12 -

B00100	Acquisition of financial assets measured at fair value through profit/loss	-	( 3,719,926 )
Code		2025	2024
B00200	Disposal of financial assets measured at fair value through profit/loss	951,290	2,740,306
B00200	Gain/Loss on disposal of financial assets at fair value through profit or loss	( 4,065,707 )	-
B02700	Acquisition of property, plant and equipment	( 174,812 )	( 129,630 )
B02800	Proceeds from disposal of property, plant and equipment	6,764	1,032
B03700	Increase in deposits paid	( 11,963 )	( 5 )
B03800	Decrease in deposits paid	-	1,332
B04500	Acquisition of intangible assets	( 3,489 )	( 3,601 )
B06800	Decrease in other non-current assets	( 2,176 )	3,254
B07100	Increase in prepayments for equipment	( 39,695 )	( 5,448 )
BBBB	Net cash outflow from investing activities	( 5,249,012 )	( 1,384,777 )
Cash flow from fundraising activities
C00100	Increase in short-term loans	8,427,756	4,486,100
C00200	Decrease in short-term loans	( 4,863,000 )	( 3,783,600 )
C00500	Increase in short-term notes payable	193,000	41,000
C00600	Decrease in short-term notes payable	( 193,000 )	( 41,000 )
C01200	Convertible bonds issued	2,041,809	-
C01700	Repayment of long-term borrowings	( 42,431 )	-
C03000	Increase in deposits received	136	-
C03100	Decrease in deposits received	( 15 )	( 124 )
C04020	Repayment of principal of lease	( 57,223 )	( 34,205 )
C04500	Distribution of cash dividends	( 308,785 )	( 393,000 )
C05100	Transfer of treasury stocks to employees	29,481	-
C05800	Decrease in non-controlling interest	( 131,801 )	( 111,063 )
CCCC	Net cash outflow from fundraising activities	5,095,927	164,108
DDDD	Effect of changes in exchange rate on cash and cash equivalents	25,185	32,766
EEEE	Increase in cash and cash equivalents	605,596	171,014
E00100	Starting balance of cash and cash equivalents	2,032,809	1,861,795
E00200	Ending balance of cash and cash equivalents	$ 2,638,405	$ 2,032,809

The notes attached hereto constitute part of this consolidated financial report.

Chairman: Wang Chun-Tung

President: Lee Chia-Ching

Accounting Manager: Chen Fang-Ting

Compucase Enterprise Co., Ltd. And Subsidiaries

Notes to Consolidated Financial Statements

For the Years Ended December 31, 2025 and 2024

(All amounts are in NTD thousand unless otherwise specified)

I. History of HEC

Compucase Enterprise Co., Ltd. (hereinafter “HEC”) was founded in February 1979. Originally named Compucase Enterprise Company, it changed to the current name in August 2000. The scope of its primary business includes the manufacturing, processing, sales, import and export of power supplies and the finished goods and components of computer products.

In April 2001, the stocks of HEC were approved for listing and trading at the Taipei Exchange. In August 2002, they were approved for transferring to the Taiwan Stock Exchange for listing and trading.

This consolidated financial report is presented in NTD, our functional currency.

II. Date and procedures of approval of the financial report

This consolidated financial report was approved by the Board of Directors on March 12, 2026.

III. Application of new and amended standards and interpretations

(I) The International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), interpretations (of IFRIC) and pronouncements of interpretation (of SIC) (hereinafter “IFRSs”), which have been approved and published by the Financial Supervisory Commission (hereinafter “FSC”), have been applied for the first time.

Application of the amended IFRSs which have been approved and published by the FSC is unlikely to cause any material change to the accounting policies of the consolidated company.

(II) 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 – 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

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New, Amended and Revised Standards and Interpretations
Effective Date Announced by IASB

IFRS 17, Insurance Contracts (including the 2020 and 2021 Amendments) January 1, 2026

As of the date of approval and publication of this consolidated financial report, the consolidated company has assessed that the amendments to the standards and interpretations above are unlikely to cause any significant effect on the financial condition and performance.

(III) IFRSs published by the IASB which have not been approved and published by the FSC

New, Amended and Revised Standards and Interpretations	Effective Date Announced by IASB(Note1)
Amendments to IFRS 10 and IAS 28 – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture	To be determined
IFRS 18, Presentation and Disclosure in Financial Statementsfinancial liabilities	January 1, 2027 (Note 2)
IFRS 19, Subsidiaries without Public Accountability: Disclosures (including the 2025 Amendments)	January 1, 2027
Amendments to IAS 21 – Lack of Exchangeability for a Hyperinflationary Presentation Currency	January 1, 2027

Note1: Unless stated otherwise, the above IFRSs are effective for annual reporting periods beginning on or after their respective effective dates.

Note2: The FSC announced on September 25, 2025 that IFRS 18 will become effective for entities in Taiwan on January 1, 2028. Early application is permitted once IFRS 18 has been endorsed by the FSC.

IFRS 18 “Presentation and Disclosure in Financial Statements”

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

Items of income and expenses included in the statement of profit or loss shall be classified into the operating, investing, financing, income taxes and discontinued operations categories.
The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.
Provides guidance to enhance the requirements of aggregation and disaggregation: The Group shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics,
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so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Group shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Group labels items as "other" only if it cannot find a more informative label.

Disclosures on Management-defined Performance Measures (MPMs): When in public communications outside financial statements and communicating to users of financial statements management's view of an aspect of the financial performance of the Group as a whole, the Group shall disclose related information about its MPMs in a single note to the financial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards and the income tax and non-controlling interests effects of related reconciliation items.

In addition, IAS 7, Statement of Cash Flows, has been amended as follows:

Entities applying the indirect method to present cash flows from operating activities are required to use operating profit or loss as the starting point for the reconciliation.
Dividends and interest received shall be classified as cash flows from investing activities, while dividends and interest paid shall be classified as cash flows from financing activities. For entities with specified main business activities, the classification of dividends received, interest received and interest paid shall be determined by reference to the classification of dividend income, interest income and interest expense presented in the statement of profit or loss. However, each type of cash flow shall be classified in only one category of cash flow activities.

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

IV. Summary of material accounting policies

(I) Statement of compliance

This consolidated financial report has been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRSs which have been approved and published by the FSC.

(II) Basis of preparation

Except for financial instruments measured at fair value and net defined benefit assets (liabilities) recognized at the present value of defined benefit obligations

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less the fair value of plan assets, this consolidated financial report has been prepared on the basis of historical cost.

For fair value measurements, the inputs are categorized into Level 1, 2, and 3 based on their observability and priority:

Level 1 inputs: Quoted prices in active markets for identical assets or liabilities accessible on the measurement date (unadjusted).
Level 2 inputs: Inputs other than quoted prices within Level 1 that are observable for the asset or liability, either directly (i.e. the price) or indirectly (i.e. deriving from the price).
Level 3 inputs: Unobservable inputs for the asset or liability.

(III) Criteria for classification of assets and liabilities as current and non-current

Current assets include:

assets held primarily for the purpose of trading;
assets expected to be realized within 12 months after the balance sheet date; and
cash and cash equivalents (excluding those restricted to be used for exchange or settlement of liabilities within 12 months after the balance sheet date).

Current liabilities include:

liabilities held primarily for the purpose of trading;
liabilities maturing for settlement within 12 months after the balance sheet date; and
liabilities whose settlement cannot be unconditionally deferred for at least 12 months after the balance sheet date.

Assets or liabilities other than those classified above as current are classified as non-current.

(IV) Basis of consolidation

This consolidated financial report includes the financial reports of HEC and the entities controlled by HEC (subsidiaries). The financial reports of subsidiaries have been adjusted to ensure their accounting policies are consistent with those of the consolidated company. All transactions, account balances, profits, expenses and losses between entities have been eliminated during preparation of the consolidated financial report. The total comprehensive income of a subsidiary is attributable to the owners of HEC and non-controlling interests, even when non-controlling interests become a loss balance as a result.

Changes in the ownership interest of the consolidated company in a subsidiary that do not result in a loss of control are treated as equity transactions. The carrying amount of the consolidated company and non-controlling interests

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have been adjusted to reflect changes in their relative equity in the subsidiary. The difference between the adjusted amount of non-controlling interests and the fair value of considerations paid or received is directly recognized in equity and attributable to the owners of HEC.

For the details, shareholdings and scope of business of subsidiaries, see Note 12 and Tables 6 and 7.

(V) Business Combinations

Business combinations are accounted for using the acquisition method. Acquisition-related costs are recognized as expenses in the periods in which the costs are incurred and the services are received.

Goodwill is measured as the excess of the aggregate of the fair value of the consideration transferred and the amount of any non-controlling interest in the acquiree over the net amount of the identifiable assets acquired and liabilities assumed at the acquisition date. If, after reassessment, the net amount of the identifiable assets acquired and liabilities assumed at the acquisition date exceeds the consideration transferred and the amount of any non-controlling interest in the acquiree, the difference is recognized immediately in profit or loss as a bargain purchase gain.

For non-controlling interests that are present ownership interests and entitle their holders to a proportionate share of the entity's net assets in the event of liquidation, the Group elects to measure such interests at the proportionate share of the acquiree's identifiable net assets recognized.

If the initial accounting for a business combination is incomplete by the end of the reporting period, provisional amounts are recognized in the financial statements. Those provisional amounts are retrospectively adjusted during the measurement period, or additional assets or liabilities are recognized, to reflect new information obtained about facts and circumstances that existed as of the acquisition date.

(VI) Foreign currency

For each entity preparing a financial report, a transaction in a currency other than the functional currency (a foreign currency) of the entity has been recorded by translating that currency into its functional currency at the exchange rate on the date of the transaction.

Foreign currency monetary items are translated at the closing rate on each

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balance sheet date. Exchange differences arising from the settlement or translation of monetary items are recognized in profit or loss of the year in which they arise.

Foreign currency non-monetary items measured at fair value are translated at the exchange rate on the date when the fair values were determined, with the resulting exchange differences recognized in profit/loss of the current year. Exchange differences arising from fair value changes recognized in other comprehensive income are recognized in other comprehensive income.

Foreign currency non-monetary items measured at historical cost are translated at the exchange rate on the date of the transaction without being retranslated.

In preparing the consolidated financial report, the assets and liabilities of foreign operations (including subsidiaries and associates whose countries of operation are different from those of HEC or which use currencies different from those used by HEC) are translated into NTD at the exchange rate on each balance sheet date. Profit, expense and loss items are translated at the average exchange rate in the current period, and the resulting exchange differences are recognized in other comprehensive income (and attributable to the owners of HEC and non-controlling interests).

(VII) Inventory

Inventories include raw materials, work in process, finished goods and goods. Inventories are measured at the lower of cost and net realizable value. Costs and net realizable values, except for inventories of the same category, are compared on an item-by-item basis. Net realizable value means the estimated selling price in the ordinary course of business, less the estimated cost necessary to complete the sale. The cost of inventories is calculated using the weighted average method.

(VIII) Investments in associates

An associate means a company other than a subsidiary, over which the consolidated company has significant influence.

The consolidated company uses the equity method to account for investments in associates.

Under the equity method, the investment in an associate is initially recognized at cost, and the carrying amount is increased or decreased with the consolidated

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company's share of the profit/loss and other comprehensive income of and the profit distributed from the associate after the date of acquisition. Moreover, changes in the consolidated company's share of the equity of an associate are recognized in proportion to its shareholding.

If the consolidated company's share of losses of an associate equals to or exceeds its equity in the associate (including the carrying amount of investment in the associate under the equity method and other long-term equity de facto constituting part of the net investment of the consolidated company in the associate), it will discontinue recognizing further losses. The consolidated company recognizes additional losses and liabilities only to the extent where it has incurred legal or constructive obligations or made payments on behalf of the associate.

In evaluating impairment, we treat the entire carrying amount of investment (including goodwill) as a single asset and compare it with the recoverable and carrying amounts for an impairment test. Any impairment loss recognized is not allocated to any asset constituting part of the carrying amount of investment (including goodwill). Any reversal of impairment loss is recognized to the extent of a subsequent increase in the recoverable amount of the investment.

Profits or losses arising from upstream, downstream and side-stream transactions between the consolidated company and an associate are recognized in the consolidated financial report only to the extent where such profits or losses do not involve the equity of the consolidated company in the associate.

(IX) Property, plant and equipment

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

Property, plant and equipment under construction is recognized at cost less accumulated impairment losses. The cost includes professional service fees and the loan costs eligible for capitalization. Such assets will be classified to an appropriate category under property, plant and equipment and start to be accounted for in depreciation when they are completed and ready for their intended use.

Private land is not accounted for in depreciation.

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Each significant part of property, plant and equipment is separately accounted for in depreciation on a straight line basis over its useful life. We review the estimated useful life, the residual value and the depreciation method at least at the end of each year and prospectively account for the effect of the application of changes in accounting estimates.

For derecognition of property, plant and equipment, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss.

(X) Investment property

Investment property means property held for earning rents or capital appreciation or for both purposes. It also includes land held for currently undetermined future use.

Private investment property is initially measured at cost (including transaction cost) and subsequently measured at cost less accumulated depreciation and impairment losses.

Investment property is accounted for in depreciation on a straight-line basis.

(XI) Goodwill

Goodwill acquired through business merger is measured with the amount of goodwill recognized on the date of acquisition as cost and subsequently at cost less accumulated impairment loss.

For the purpose of impairment testing, goodwill is allocated to each cash generating unit or group of cash generating units (hereinafter "cash generating unit") expected by the consolidated company to benefit from the consolidated synergy.

An impairment test is conducted on a cash generating unit of allocated goodwill each year (and whenever there is any sign of possible impairment to the unit) by comparing the carrying amount of the unit including goodwill with its recoverable amount. Where the recoverable amount of a cash generating unit of allocated goodwill is lower than its carrying amount, the impairment loss will first decrease the carrying amount of the unit and then decrease the carrying amount of each of other assets in the unit based on the percentage of such amount. Any impairment loss will be directly recognized as loss of the current period. Impairment losses on goodwill may not be reversed in the subsequent period.

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(XII) Intangible assets

Any individually acquired intangible asset with a limited useful life is initially measured at cost and subsequently measured at cost less accumulated amortization. An intangible asset is amortized on a straight-line basis over its useful life. The consolidated company reviews the estimated useful life, the residual value and the amortization method at least at the end of each year and prospectively account for the effect of the application of changes in accounting estimates.

For derecognition of any intangible asset, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in the profit/loss of the current year.

(XIII) Impairment of property, plant and equipment, right-of-use assets, investment property and intangible assets

The consolidated company assesses whether there is any sign of possible impairment of property, plant and equipment, right-of-use assets, investment property and intangible assets (excluding goodwill) on each balance sheet date. If any such sign of impairment exists, the recoverable amount of the asset is estimated. If the recoverable amount of an asset is not estimable, the consolidated company estimates the recoverable amount of the cash generating unit of the asset.

The recoverable amount is the higher of the fair value less costs of sale and the value in use. If the recoverable amount of an asset or cash generating unit is less than its carrying amount, the carrying amount of the asset or cash generating unit is decreased to its recoverable amount, with impairment losses recognized in profit/loss.

Where impairment losses are reversed subsequently, the carrying amount of the asset and cash generating unit is increased to the revised recoverable amount, provided that the increased carrying amount does not exceed the carrying amount (less amortization or depreciation) of the asset and cash generating unit determined under the assumption that impairment losses were not recognized in prior years. Reversal of impairment losses is recognized in profit or loss.

(XIV) Financial instruments

Financial assets and liabilities are recognized in the consolidated balance sheet

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when the consolidated company becomes a party to the contractual provisions of the instrument.

For initial recognition of financial assets and liabilities, if financial assets or liabilities are not measured at fair value through profit or loss, they are measured at fair value plus transaction costs directly attributable to acquisition or issuance of financial assets or liabilities. Transaction costs directly attributable to acquisition or issuance of financial assets or liabilities measured at fair value through profit or loss are immediately recognized in profit or loss.

Financial assets

Regular transactions of financial assets are recognized and derecognized using the transaction date accounting method.

(1) Types of measurement

The consolidated company holds the following types of financial assets: Financial assets measured at fair value through profit/loss and financial assets measured at amortized cost.

A. Financial assets measured at fair value through profit/loss

Financial assets measured at fair value through profit or loss are measured at fair value, and their remeasurement profits or losses are recognized in other profits and losses. For the method used to determine fair value, see Note 32.

B. Financial assets measured at amortized cost

If the investments of the consolidated company in financial assets meet the following two criteria, they are classified as financial assets measured at amortized cost:

a. Such investments are held under an operating model with the purpose of holding financial assets to receive contractual cash flows; and
b. the cash flows generated by contractual provisions on specified dates are solely for the purpose of paying principal and interest on outstanding principal.

On initial recognition, financial assets measured at amortized cost (including cash and cash equivalents, notes receivable measured at amortized cost, accounts receivable, other receivables and guarantee deposits paid) are measured at the

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total carrying amount determined using the effective interest method less the amortized cost of any impairment loss, and any profit or loss on foreign currency exchange is recognized in profit or loss.

Interest income is calculated as the effective interest rate multiplied by the total carrying amount of financial assets, except under the following two circumstances:

a. For any credit-impaired financial assets purchased or originated, the interest income is calculated as the credit-adjusted effective interest rate multiplied by the amortized cost of the financial assets.

b. For any financial assets which are not credit-impaired on purchase or origination but subsequently become credit-impaired, the interest income is calculated as the effective interest rate multiplied by the amortized cost of the financial assets in the reporting period after such credit impairment.

A credit-impaired financial asset means that the issuer or debtor has incurred significant financial difficulties or defaulted, that the debtor is likely to file for bankruptcy or other financial reorganization, or that the active market of the financial asset has disappeared due to financial difficulties.

Cash equivalents include highly liquid term deposits and bonds with conditions for repurchase that are readily convertible to known amounts of cash with an insignificant risk of changes in value within 3 months from the date of acquisition and are used to meet short-term cash commitments.

(2) Impairment of financial assets

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

A loss allowance on accounts receivable is recognized at full lifetime expected credit losses. For other financial assets, we first assess whether the credit risk has significantly increased after initial recognition. In the absence of such significant increase, the

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loss allowance is recognized at the 12-month expected credit losses. Where there is such significant increase, the loss allowance is recognized at full lifetime expected credit losses.

Expected credit losses are weighted average credit losses with the risks of a default occurring as the weightings. The 12-month expected credit losses represent the expected credit losses on a financial instrument resulting from possible default events within 12 months after the reporting date. Full lifetime expected credit losses represent the expected credit losses on a financial instrument from all possible default events over the life of the financial instrument.

For the purpose of internal credit risk management, the consolidated company determines that a default has occurred on financial assets under any of the following circumstances without considering the collateral it holds:

A. Any internal or external information has indicated the debtor is unable to pay off debts.

B. The age of accounts has exceeded 365 days, unless any reasonable and provable information indicates that a deferred criteria for default is more appropriate.

Impairment losses on all financial assets are accounted for by decreasing their carrying amounts through allowance accounts.

(3) Derecognition of financial assets

The consolidated company derecognizes a financial asset only when the contractual rights on cash flows from the asset become invalid, or when the asset has been transferred and substantially all of the risks and returns of ownership of the asset have been transferred to other companies.

For derecognition of a financial asset measured at amortized cost in its entirety, the difference between it's carrying amount and the consideration received is recognized in profit/loss.

Equity instruments

Equity instruments issued by the consolidated company are recognized at the amount of the proceeds acquired less the cost of direct issuance.

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The reacquisition of the consolidated company's own equity instruments is recognized in and deducted from equity, with its carrying amount calculated at weighted average by share type. The purchase, sale, issuance or cancellation of our own equity instruments is not recognized in profit/loss.

Financial liabilities

(1) Subsequent measurement

Except the following situations, all financial liabilities are measured at amortized cost using the effective interest method:

Financial liabilities at FVTPL

Financial liabilities are classified as at FVTPL when such financial liabilities are either held for trading or are designated as at FVTPL.

Financial liabilities held for trading are stated at fair value, and any remeasurement gains or losses on such financial liabilities are recognized in other gains or losses.

Fair value is determined in the manner described in Note 29.

(2) Derecognition of financial liabilities

For derecognition of a financial liability, the difference between its carrying amount and the consideration paid (including any non-cash asset transferred or any liability assumed) is recognized in profit/loss.

Convertible Bonds

The Group's compound financial instruments (convertible bonds) issued are classified on initial recognition into financial liabilities and equity components in accordance with the substance of the contractual arrangement and the definitions of financial liabilities and equity instruments.

At initial recognition, the fair value of the liability component is estimated using the prevailing market interest rate for similar non-convertible instruments. The liability component is subsequently measured at amortized cost using the effective interest method until conversion or maturity. The liability component that contains an embedded non-equity derivative is measured at fair value.

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The equity component of the conversion option is determined as the residual amount after deducting the fair value of the liability component from the fair value of the compound instrument as a whole, net of income tax effects, and is recognized in equity. It is not subsequently remeasured. Upon exercise of the conversion option, the related liability component and the amount recognized in equity are transferred to share capital and capital surplus—additional paid-in capital. If the conversion option is not exercised at maturity, the amount recognized in equity is transferred to capital surplus—additional paid-in capital.

Transaction costs related to the issuance of convertible bonds are allocated to the liability component (included in the carrying amount of the liability) and the equity component (included in equity) on a proportionate basis to the total proceeds of the instrument.

Derivative instruments

The derivative instruments concluded by the consolidated company are forward foreign exchange contracts used to manage its exchange rate risks.

At the time of conclusion of a derivative instrument contract, the derivative instrument is initially recognized at fair value and subsequently remeasured at fair value on the balance sheet date. A derivative instrument whose fair value is positive is recognized in financial assets, while that whose fair value is negative is recognized in financial liabilities.

(XV) Liability provision

An amount recognized as liability provision is an optimal estimate of expenses required for the settlement obligations on the balance sheet date, taking into account the risk and uncertainty of the obligations. A liability provision is measured at the estimated discounted value of cash flows of settlement obligations.

The obligation to warrant that products conform with the agreed specifications is recognized upon recognition of the revenue from relevant goods based on an optimal estimate by the management of expenses required for the obligation of settlement of the consolidated company.

(XVI) Recognition of revenue

Once the consolidated company has identified the performance obligations in the contract with a customer, it allocates the transaction price to each performance obligation and recognize revenue after satisfying each performance obligation.

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The revenue from sales of goods is generated through the sales of computer and server chassis, power supplies, associated computer peripherals and medical devices. At the time of fulfillment of the trading terms of products, the customer already possesses the right to price and use the goods, assumes the primary responsibility to resell them, and bears the risk of the goods being out of date. Therefore, the consolidated company recognizes revenue and accounts receivable at that point in time. The sales revenue is measured at the fair value of the transaction consideration agreed by HEC and the customer (after taking into account commercial and quantity discounts), and any payment received for goods is recognized in refund liabilities if such payment is expected to be refunded to the customer due to any discount or other allowance, while payments received in advance for sales of goods are recognized as contract liabilities.

In the case of exporting materials for processing, control over the ownership of processed goods is not transferred, and revenue is not recognized at the time of export.

(XVII) Leases

The consolidated company assesses whether a contract is (or contains) a lease on the date of conclusion of the contract.

The consolidated company is the lessor

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incident to ownership of the asset to the lessee. All other leases are classified as operating leases. Under an operating lease, lease payments are recognized in profit on a straight-line basis over the relevant lease term.

The consolidated company is the lessee

Except that the lease payments for leases of low-value underlying assets and short-term leases to which the recognition exemption applies are recognized in expense on a straight-line basis over the lease term, other leases are recognized in right-of-use assets and lease liabilities on the lease commencement date.

Right-of-use assets are initially measured at cost (at the initially measured amount of lease liabilities) and subsequently measured at cost less accumulated depreciation, with adjusted remeasurement of lease liabilities. Right-of-use assets are separately presented in the balance sheet.

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Right-of-use assets are accounted for in depreciation on a straight-line basis over the period from the lease commencement date to the earlier of the date of expiration of the useful life or the lease term.

Lease liabilities are initially measured at the present value of lease payments. If the interest rate implicit in a lease can be readily determined, the lease payments are discounted at the interest rate. Where such interest rate cannot be readily determined, the lessee’s incremental borrowing rate is used.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, and interest expenses are amortized over the lease term. The consolidated company remeasures lease liabilities and adjusts right-of-use assets accordingly. If the carrying amount of right-of-use assets is reduced to zero, the remaining remeasured amount is recognized in profit/loss. Lease liabilities are separately presented in the consolidated balance sheet.

(XVIII) Loan cost

All loan costs will be recognized as profit/loss in the period of occurrence.

(XIX) Employee benefits

Short-term employee benefits

Liabilities related to short-term employee benefits are measured at the undiscounted amount expected to be paid for services rendered by employees.

Post-employment benefits

Under a defined contribution plan, pensions are recognized in expense as the amount of pension contribution payable during the period when services are rendered by employees.

Under a defined benefit plan, defined benefit costs (including servicing costs, net interest and remeasurement) are calculated actuarially using the projected unit credit method. The current service cost and net interest on net defined benefit liabilities (assets) are recognized as employee benefit expenses at the time of their occurrence. Remeasurement (including actuarial profit/loss and return on plan assets less interest) is recognized as other comprehensive income and in retained earnings at occurrence, and is not subsequently reclassified as profit/loss.

Net defined benefit liabilities (assets) are a deficit (surplus) in the contribution to a defined benefit plan. Net defined benefit assets must not

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exceed the present value of contributions refunded from the plan or the reducible amount of future contributions.

(XX) Share-based Payment Agreement

Employees' stock options are recognized in expenses on a straight-line basis over the vesting period based on the fair value of equity instruments on the grant date and the optimal estimated amount expected to vest, with an adjustment to capital reserves/non-controlling interests at the same time. For the transfer of treasury stocks to any employee by HEC, the grant date is the date when the number of shares purchased by the employee is confirmed.

On each balance sheet date, the consolidated company revises the estimated amount of employees' stock options expected to vest. In the event of any revision to the original estimated amount, its effect is recognized in profit/loss for the revised estimated amount to be reflected in the cumulative expense, with a relative adjustment to non-controlling interests.

(XXI) Income tax

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

Current income tax

The consolidated company determines the current income (loss) in accordance with the laws enacted by the jurisdiction in which it files its income tax return to calculate the income tax payable (recoverable).

The additional income tax levied on undistributed earnings calculated in accordance with the Income Tax Act of the Republic of China (Taiwan) is recognized in the year when the related resolution is adopted by a shareholders' meeting.

Adjustments to income taxes payable in prior years are recognized in current income tax.

Deferred income tax

Deferred income tax is calculated as the temporary difference between the carrying amounts of assets and liabilities recorded in the account and the tax base for calculation of taxable income.

Deferred income tax liabilities are generally recognized in respect of all taxable temporary differences. Deferred income tax assets are recognized when it is probable that taxable income will be available for offsetting income tax arising from deductible temporary differences and offsetting of losses.

Taxable temporary differences associated with investments in subsidiaries and associates are recognized as deferred income tax

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liabilities, unless the consolidated company is able to control the timing of the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred income tax assets for deductible temporary differences associated with such investments are recognized only to the extent where it is probable that sufficient taxable income will be available to realize the temporary differences and that they are expected to reverse in the foreseeable future. The carrying amount of deferred income tax assets is reviewed on each balance sheet date and reduced to the extent where it is no longer probable that sufficient taxable income will be available to allow the recovery all or part of the assets. Those that are not initially recognized as deferred income tax assets are also reviewed on each balance sheet date and increased to the extent where it is probable that sufficient taxable income will be available in the future to allow the recovery all or part of the assets.

Deferred income tax assets and liabilities are measured at the tax rate of the period when the liabilities or assets are expected to be settled or realized. The tax rate is based on the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred income tax liabilities and assets are measured to reflect the tax consequences of the consolidated company on the balance sheet date arising from the methods that are expected to be used to recover or settle the carrying amount of the assets and liabilities.

Current and deferred income taxes

Current and deferred income taxes are recognized in profit or loss, except for those related to items recognized in other comprehensive income or directly in equity, which are recognized separately in other comprehensive income separately or directly in equity

V. Main sources of uncertainty of material accounting judgments, estimates and assumptions

In adopting accounting policies, the management of the consolidated company must make judgments, estimates and assumptions in respect of information that is not readily available from other sources based on historical experience and other relevant factors. The actual results could differ from the estimates.

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The consolidated company has taken the possible effects of the economic environment into the consideration of material accounting estimates. Its management will continue to review the estimates and basic assumptions. If a correction of the estimates affects only the current period, it is recognized in the period when it is made. If a correction of the estimates affects both the current and future periods, it is recognized in the period when it is made and in the future period.

Main source of uncertainty of estimates and assumptions – income tax

As of December 31, 2025 and 2024, the effects of income tax of taxable temporary differences relating to investments in subsidiaries without recognition of deferred income tax liabilities amounted to NTD587,934 thousand and NTD665,745 thousand respectively. With expected remittance of earnings in the future, reversal of taxable temporary differences and recognition of material deferred income tax liabilities are likely to occur with their recognition as income tax expenses over the period of occurrence.

VI. Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash on hand and working capital	$ 5,053	$ 1,304
Bank checks and demand deposits	1,615,960	607,949
Cash equivalents
Time deposits at banks with an original date of maturity within 3 months	732,392	1,158,556
Bonds with conditions for repurchase	285,000	265,000
	$ 2,638,405	$ 2,032,809

The following are the interest rate ranges of cash equivalents on the balance sheet date:

	December 31, 2025	December 31, 2024
Time deposits at banks with an original date of maturity within 3 months	1.40% ~ 3.75%	1.28% ~ 5.60%
Bonds with conditions for repurchase	1.45%	1.47%

VII. Financial instruments measured at fair value through profit/loss

	December 31, 2025	December 31, 2024
Financial assets – current
Mandatorily measured at fair value through profit or loss
Derivative instrument – forward foreign exchange contract (I)	$ 8,055	$ -

Hybrid financial instruments
-Structured deposit (II)
- $ 8,055
982,052
$ 982,052

Financial liabilities – current
Mandatorily measured at fair value through profit or loss
Derivative instrument – forward foreign exchange contract (I)
$ - $ 10,668

Non-current financial liabilities
Financial liabilities at fair value through profit or loss – derivatives held for trading
Put and redemption options of convertible bonds (Note 20)
$ 26,800
$ -

(I) The following are forward foreign exchange contracts which do not apply hedge accounting and are yet to mature on the balance sheet date:

December 31, 2025

	Currency	Maturity period	Contractual amount (NTD thousand)
Forward foreign exchange sold	USD to RMB	115.01~115.05	USD 60,450/CNY 423,021

December 31, 2024

	Currency	Maturity period	Contractual amount (NTD thousand)
Forward foreign exchange sold	USD to RMB	114.01~114.03	USD 18,720/CNY 133,988

(II) A structured deposit includes an embedded derivative that is not closely related to the main contract. Since the underlying contract in the hybrid agreement falls within the scope of IFRS 9, it is classified as a financial asset measured at fair value through profit or loss based on the overall assessment of the hybrid contract.

VIII. Financial assets measured at amortized cost

	December 31, 2025	December 31, 2024
Current
Time deposits with an original date	$ 874,577	$ 207,889

of maturity beyond 3 months

Restricted bank deposits

2,012,019	213,037
$ 2,886,596	$ 420,926

Non-current

Time deposits with an original date of maturity beyond 3 months

$ 44,960 $ 494,042

(I) On December 31, 2025 and December 31, 2024, the interest rate ranges of time deposits with an original date of maturity beyond 3 months were 1.28%~3.82% and 1.50%~5.17%

(II) For the information of pledges, see Note 34.

IX. Notes and accounts receivable

	December 31, 2025	December 31, 2024
Notes receivable
Measured at amortized cost	$ 227,606	$ 3,579
Accounts receivable
Measured at amortized cost
Total carrying amount	$ 3,480,186	$ 2,118,462
Less: Loss allowance	115,138	91,991
	$ 3,365,048	$ 2,026,471

The average loan period of the consolidated company for sales of goods is 1 to 4 months, with zero accrued on accounts receivable. In order to mitigate credit risk, the management of the consolidated company has designated special teams for determination of credit lines, approval of loans and other monitoring procedures to ensure that appropriate actions are taken to recover overdue payments receivable. Furthermore, the consolidated company reviews the recoverable amounts of payments receivable separately on the balance sheet date to ensure that irrecoverable payments receivable have been accounted for in appropriate impairment losses. Accordingly, the management of the consolidated company considers that its credit risks have reduced significantly.

The consolidated company recognizes the loss allowance for accounts receivable based on the full lifetime expected credit losses. The full lifetime expected credit losses are calculated using a provision matrix with consideration of the default history and current financial condition of a customer and the economic trend of the industry.

Since the historical experience of the consolidated company in credit losses has shown no significant difference in the types of loss between distinct customer bases, the provision matrix has made no further distinction between the customer bases and has only set the expected credit loss rate based on the age of accounting of accounts receivable.

If there is any evidence indicating that the counterparty is faced with severe financial difficulties and that the consolidated company is not able to reasonably expect any recoverable amount, e.g. the counterparty is undergoing liquidation, the consolidated company directly writes off the relevant accounts receivable, and it will continue to pursue recourse actions. All amounts recovered through recourse are recognized in profit/loss.

Notes receivable

As of December 31, 2025 and 2024, none of the notes receivable of the consolidated company were overdue, and no expected credit losses were set aside for notes receivable.

Accounts receivable

The consolidated company's loss allowances for accounts receivable measured using the provision matrix are as follows:

December 31, 2025

	0 to 90 days	91 to 180 days	181 to 365 days	366 or more days	Total
Credit loss rate	0.05%~9.74%	3.53%~54.97%	3.64%~100%	98.90%~100%
Total carrying amount	$ 3,327,150	$ 31,090	$ 11,185	$ 110,761	$ 3,480,186
Loss allowance (full lifetime expected credit losses)	( 4,690)	( 499)	( 407)	( 109,542)	( 115,138)
Amortized cost	$ 3,322,460	$ 30,591	$ 10,778	$ 1,219	$ 3,365,048

December 31, 2024

	0 to 90 days	91 to 180 days	181 to 365 days	366 or more days	Total
Credit loss rate	0%~2%	0%~36%	0%~86%	76%~100%
Total carrying amount	$ 1,540,088	$ 422,741	$ 55,848	$ 99,785	$ 2,118,462
Loss allowance (full lifetime expected credit losses)	( 2,848)	( 6,402)	( 6,471)	( 76,270)	( 91,991)
Amortized cost	$ 1,537,240	$ 416,339	$ 49,377	$ 23,515	$ 2,026,471

The information of changes in loss allowance for accounts receivable is as follows:

	December 31, 2025	December 31, 2024
Starting balance	$ 91,991	$ 72,588
Effects of Acquisition of Subsidiaries	16,274	-
Accounted for in the current year	5,654	25,329
Written off in the current year	( 294 )	( 6,197 )
Differences on foreign currency translation	1,513	271
Ending balance	$ 115,138	$ 91,991

X. Inventory

	December 31, 2025	December 31, 2024
Goods	$ 178,757	$ 187,856
Finished goods	878,648	548,243
Work in process	162,071	180,708
Semi-finished product	226,603	223,479
Raw materials	670,498	406,104
	$ 2,116,577	$ 1,546,390

The inventory-related sales costs in 2025 and 2024 were, respectively, NTD8,744,082 thousand and NTD5,780,533 thousand. Of which, cost of sales for the years 2025 and 2024 included inventory write-down losses of $19,029 thousand and $6,571 thousand, respectively.

XI. Prepayments

	December 31, 2025	December 31, 2024
Purchase tax	$ 210,175	$ 234,691
Retained for tax	99,115	4,525
Prepaid expenses	73,121	26,770
Prepayments for goods	48,205	102,831
	$ 430,616	$ 368,817

XII. Subsidiary

(I) Subsidiaries included in the consolidated financial report Entities in the consolidated financial report prepared are as follows:

Name of investor company	Name of subsidiary	Shareholding (%)			Description
		Nature of business	December 31, 2025	December 31, 2024
HEC	Wei Shun Int'l Investments Co., Ltd. (WII)	General investment and international trade	100	100

	Great Success Group Ltd. (GSG)	General investment and international trade	100	100	Note 1
	Power Master Co., Ltd. (FCC)	Sales of computer components	60	60
	Compucase Corporation (UCC)	Sales of computer components	100	100	Note 2
	Compucase Japan Co., Ltd. (JCC)	Sales of computer components	100	100
	Cougar Korea Co., Ltd. (KCC)	Sales of computer components	100	100
	OPT	Manufacturing and sales of medical devices and equipment	59.49	59.49
	Loyalty Founder Enterprise Co., Ltd. (LFE)	Manufacturing, processing and trade of computer and server chassis	50.62	50.62
	Amber Investment Partners Limited (AIP)	General Investment Business	100	-	Note 6
WII	Global Treasure Holdings Co., Limited (GTH)	General investments	100	100	Note 3
GSG	Global Plenum Holdings Co., Limited (GPH)	General investments	100	100
GTH	Wei Chang Xing Electronics (Shen Zhen) Co., Ltd. (WCX)	Computer parts and accessories and cutting and processing of iron materials	100	100
	Wei Yu International Trading (Shenzhen) Co., Ltd. (WYT)	International and re-export trade	100	100
	Anyuan Weichangfeng Electronic Co., Ltd. (WCF)	Manufacturing of power supplies and computer parts and accessories	12.55	12.55	Note 3
GPH	Wei Shuo Electronics (Shen Zhen) Co., Ltd. (WSE)	Manufacturing of power supplies and computer parts and accessories	100	100
	Wei Sheng Feng Technology (Ji An) Co., Ltd. (WSF)	Manufacturing of power supplies and computer parts and accessories	100	100
	Dongguan Weichiao Electronics Co., Ltd. (DWC)	Manufacturing of power supplies and computer parts and accessories	100	100
	Anyuan Weijia Electronic Co., Ltd. (WJA)	Manufacturing of power supplies and computer parts and accessories	100	100
WCX	Loyalty Founder Enterprise Company (D.G) Ltd. (LFDG)	Manufacturing, import and export of electronics, optoelectronic products, precision dies and precision plastic injectors	20.13	20.13
	Anyuan Weichangfeng Electronic Co., Ltd. (WCF)	Manufacturing of power supplies and computer parts and accessories	87.45	87.45	Note 3
LFE	Axxion Group Corp. (Axxion)	Import and sales of computers, server chassis and their associated components	100	100
	Loyalty Founder Enterprise Corp. Ltd. (LFKY)	General investments	100	100	Note 4
	OPT	Manufacturing and sales of medical devices and equipment	35.07	35.07
	Axxion Mexico - LFE S.A. de C.V. (Axxion Mexico)	Manufacturing of computers, server chassis and their associated components	99	99
LFKY	Loyalty Founder Enterprise Co. (H.K.) Ltd. (LFHK)	Import and export of computers, server chassis, keyboards, scanners, dies and other components	100	100	Note 4
LFHK	LFDG	Manufacturing, import and export of	79.87	79.87

		electronics, optoelectronic products, precision dies and precision plastic injectors
OPT	Global Star (H.K.) Holding Limited (Global Star)	General investments	100	100
Global Star	Harmonic Star Investment Limited (Harmonic Star)	General investments	100	100
Harmonic Star	Optima Healthcare Inc. (Gd) (FD)	Manufacturing and sales of medical devices and equipment	100	100
AIP	True Voice Limited (TVL)	General Investment Business	100	-	Note 6
TVL	Poyun Co. Ltd. (KPY)	General Investment Business	100	-	Note 6
KPY	True Voice Int'l Inc. Limited (TVHK)	General Investment and International Trade Business	100	-	Note 6
TVHK	U-Sonics Power Cone Sdn. Bhd. (U-Sonics)	Speaker Diaphragm Paper and Spider Manufacturing	100	-	Note 6
	Kochi Tech Limited	Silk Yarn Manufacturing Industry	100	-	Note 6
	DGPY	Voice Coil and Diaphragm Manufacturing Industry	100	-	Note 6
	AHPY	Voice Coil and Diaphragm Manufacturing Industry	100	-	Note 6
	Vietnam Poyun Electronics Co., Ltd. (VNPY)	Voice Coil and Diaphragm Manufacturing Industry	100	-	Note 6
	Poyun US Inc. (USPY)	Voice Coil and Diaphragm Manufacturing Industry	85	-	Note 6
DGPY	KSPY	Voice Coil and Diaphragm Manufacturing Industry	100	-	Note 6
	GXPY	Voice Coil and Diaphragm Manufacturing Industry	100	-	Note 6
	GZPY	Wholesale Trading Business	100	-	Note 6

Note1: The boards of directors of the subsidiaries WCX, WYT, WCF, DWC, WSF, WJA, and GTH resolved in August 2025 to distribute earnings in the amounts of RMB 70,114 thousand, RMB 9,000 thousand, RMB 16,000 thousand, RMB 11,000 thousand, RMB 23,000 thousand, RMB 27,296 thousand, and USD 11,498 thousand, respectively. In addition, the boards of directors of WJA, GPH, and GSG resolved in August 2025 to carry out capital reductions in the amounts of USD 9,000 thousand, USD 6,500 thousand, and USD 6,500 thousand, respectively.

As of the end of December 2025, WJA had completed the registration procedures for the capital reduction, while GPH and GSG had not yet completed the capital reduction procedures.

Note2: In 2024, the Company's Board of Directors resolved to convert a

receivable from its subsidiary, UCC, into a capital increase amounting to USD 1.3 million.

Note3: In March 2024, the subsidiary WII made cash capital increases of USD1,000 thousand in the subsidiary GTH, respectively.

Note4: In August 2025, the Company's Board of Directors resolved to make a cash capital increase in its subsidiary GTH in the total amount of USD 39,600 thousand, funded directly by the Company and indirectly through its subsidiary WII.

Of this amount, USD 36,000 thousand was contributed through the offset of the Company's receivables from GTH against the subscription price of the new shares. The remaining USD 3,600 thousand was contributed through a cash capital increase by the Company in WII, which subsequently reinvested the funds in GTH. Following the capital increase, the Company and WII held 80.99% and 19.01% of the equity interests in GTH, respectively.

In addition, in December 2025, the Company's Board of Directors resolved to make a further cash capital increase in GTH in the amount of USD 26,000 thousand through WII. This capital increase was completed in January 2026.

Note5: In May 2025, the subsidiary LFE increased the capital of L.F.KY by USD 760 thousand. In the same month, L.F.KY increased the capital of L.F HK by USD 1,000 thousand.

Note6: On July 8, 2025, the Company acquired 100% of the equity interest in AIP and, accordingly, included AIP in the Company's consolidated entities. Please refer to Note 30 for further details.

Subsequently, in September 2025, the Company's Board of Directors resolved to increase the capital of AIP by NT$540,000 thousand. This capital increase was completed in January 2026.

(II) Information of subsidiaries with material non-controlling interests

Name of subsidiary	Shareholding and voting rights of non-controlling interests (%)
	December 31, 2025	December 31, 2024
LFE	49.38%	49.38%

For information regarding the principal place of business and the country of registration of the subsidiary, see Table 6.

40 -

	Profit/Loss distributed to non-controlling interests
Name of subsidiary	2025	2024
LFE	$ 39,012	$ 130,992
	Non-controlling interest
Name of subsidiary	December 31, 2025	December 31, 2024
LFE	$ 1,221,770	$ 1,250,973

The consolidated financial information of LFE is prepared based on the amounts of inter-company transactions prior to write-off:

LFE

	December 31, 2025	December 31, 2024
Current assets	$ 4,823,483	$ 4,083,609
Non-current assets	858,310	1,031,401
Current liabilities	( 2,587,407 )	( 2,000,099 )
Non-current liabilities	( 29,827 )	( 32,608 )
Equity	$ 3,064,559	$ 3,082,303
Equity attributable to:
Shareholders of the parent	$ 1,842,789	$ 1,830,162
Non-controlling interests	1,221,770	1,252,141
	$ 3,064,559	$ 3,082,303
	2025	2024
Operating revenue	$ 5,454,930	$ 4,487,498
Net profit in the current year	$ 228,059	$ 328,788
Other comprehensive income	20,026	94,784
Total comprehensive income	$ 248,085	$ 423,572
Net profit attributable to:
Owners of HEC	$ 189,047	$ 197,797
Non-controlling interests of LFE	39,012	130,991
	$ 228,059	$ 328,788
Total comprehensive income attributable to:
Owners of HEC	$ 205,285	$ 253,164
Non-controlling interests of LFE	42,800	170,408
	$ 248,085	$ 423,572
Cash flow
Operating activities	( $ 515,407 )	$ 497,380
Investing activities	( 96,542 )	( 718,810 )
Fundraising activities	531,020	( 277,673 )
Effect of changes in exchange rate on cash and cash equivalents	1,426	21,481
Net cash inflows (outflows)	( $ 79,503 )	( $ 477,622 )
Dividends paid to non-controlling interests	$ 131,268	$ 109,390

41 -

XIII. Investments accounted for using the equity method

	December 31, 2025	December 31, 2024
Individual immaterial associates
Super Laser Precision Machinery Ltd. (Super Laser)	$ 28,819	$ 27,608

The following is a summary of individual immaterial associates:

	2025	2024
Share of the consolidated company
Net loss in the current year	$ 965	$ 3,262
Other comprehensive income	246	1,404
Total comprehensive income	$ 1,211	$ 4,666

The shares of profit/loss on investments and the share of the consolidated company and of other comprehensive income accounted for using the equity method in 2025 and 2024 are calculated based on a financial report not audited by any CPA, as our management considers that there is unlikely to be any significant adjustment if the financial reports of the aforementioned associates for 2025 and 2024 have been audited by a CPA.

XIV. Property, plant and equipment

For the statement of changes in property, plant and equipment, see Table 10.

The depreciation expense is accounted for on a straight-line basis over the following useful lives:

Premises and buildings

Main factory buildings 20 to 50 years

Mechanical, electrical and power equipment 20 years

Engineering system 15 to 20 years

Others 2 to 21 years

Machine/Equipment 2 to 26 years

Transport equipment 5 to 18 years

Office equipment 2 to 18 years

Other equipment 2 to 20 years

In 2025 and 2024, the consolidated company engaged in the following investment activities with transactions in cash:

	2025		2024
Increase in property, plant and equipment	$	193,756	$	142,804
Reclassification of prepayments for equipment	(	30,414 )	(	3,276 )
Decrease (Increase) in equipment payments payable		11,470	(	9,898 )
Cash paid for property, plant and equipment	$	174,812	$	129,630

42 -

XV. Lease agreement

(I) Right-of-use assets

	Land	Buildings	Transport equipment	Office equipment	Other equipment	Total
Cost
Balance on January 1, 2025	$ 145,301	$ 126,923	$ 255	$ 136	$ 271	$ 272,886
Effect of Acquisition of Subsidiary	126,802	633,210	-	-	-	760,012
Increase	3,291	19,124	247	-	270	22,932
Decrease	(3,133)	(79,679)	(254)	-	(271)	(83,337)
Reclassification	-	(11,287)	-	-	-	(11,287)
Net exchange differences	9,626	47,428	(10)	(6)	-	57,038
Balance on December 31, 2025	$ 281,887	$ 735,719	$ 238	$ 130	$ 270	$1,018,244
Accumulated depreciation
Balance on January 1, 2025	$ 23,337	$ 71,636	$ 171	$ 11	$ 259	$ 95,414
Effect of Acquisition of Subsidiary	8,013	144,808	-	-	-	152,821
Depreciation expense	7,328	63,014	50	67	136	70,595
Decrease	(3,133)	(79,594)	(182)	-	(271)	(83,180)
Net exchange differences	819	11,435	(3)	(2)	-	12,249
Balance on December 31, 2025	$ 36,364	$ 211,299	$ 36	$ 76	$ 124	$ 247,899
Net amount on December 31, 2025	$ 245,523	$ 524,420	$ 202	$ 54	$ 146	$ 770,345
Cost
Balance on January 1, 2024	$ 139,652	$ 138,567	$ 159	$ 349	$ 271	$ 278,998
Increase	5,565	39,592	137	-	-	45,294
Decrease	(4,908)	(56,676)	(155)	(83)	-	(61,822)
Net exchange differences	4,992	5,440	(5)	(11)	-	10,416
Balance on December 31, 2024	$ 145,301	$ 126,923	$ 136	$ 255	$ 271	$ 272,886
Accumulated depreciation
Balance on January 1, 2024	$ 21,677	$ 92,584	$ 93	$ 180	$ 124	$ 114,658
Depreciation expense	5,710	31,835	76	69	135	37,825
Decrease	(4,908)	(56,676)	(155)	(72)	-	(61,811)
Net exchange differences	858	3,893	(3)	(6)	-	4,742
Balance on December 31, 2024	$ 23,337	$ 71,636	$ 11	$ 171	$ 259	$ 95,414
Net amount on December 31, 2024	$ 121,964	$ 55,287	$ 125	$ 84	$ 12	$ 177,472

(II) Lease liabilities

	December 31, 2025	December 31, 2024
Carrying amount of lease liabilities
Current	$ 79,194	$ 28,445
Non-current	$ 429,088	$ 34,365
The discount rate ranges for lease liabilities are as follows:
	December 31, 2025	December 31, 2024
Land	1.86%~2.12%	1.30%~1.86%
Buildings	1.51%~4.90%	0.98%~1.83%
Transport equipment	1.83%	0.82%
Office equipment	1.80%	1.80%
Other equipment	1.86%	1.51%

(III) Material lease activities and terms

The consolidated company has rented land and buildings for warehousing and

office purposes with a lease term of 2 to 50 years. The rights of the subsidiaries LFDG and WCF to use their land in Mainland China will expire during 2055 to 2060.

(IV) Other lease information

	2025	2024
Expenses of short-term and low-value leases	$ 7,403	$ 6,106
Total cash outflow from lease	$ 68,408	$ 40,832

The consolidated company opts to apply the recognition exemption to leases of certain equipment constituting short-term leases and leases of low-value assets, and do not recognize right-of-use assets and lease liabilities relevant to such leases.

XVI. Investment property

	Land	Premises and buildings	Total
Cost
Balances on January 1 and December 31, 2025	$ 53,018	$ 50,774	$ 103,792
Accumulated depreciation and impairment
Balance on January 1, 2024 and December 31, 2025	$ -	$ 50,774	$ 50,774
Net amount on December 31, 2025	$ 53,018	$ -	$ 53,018
Cost
Balances on January 1 and December 31, 2024	$ 53,018	$ 50,774	$ 103,792
Accumulated depreciation and impairment
Balance on December 31, 2024	$ -	$ 50,774	$ 50,774
Net amount on December 31, 2024	$ 53,018	$ -	$ 53,018

The premises and buildings of investment property were depreciated on the straight-line basis over a 55-year useful life.

Based on the valuations conducted by an independent valuator on December 28, 2025, and 2023, the fair value of the investment property amounted to NTD 137,489 thousand and NTD 87,434 thousand, respectively. The management of the consolidated company has assessed that there was no material change in the fair value as of December 31, 2025.

As of December 31, 2025 and 2024, the accumulated amounts of impairment were both NTD23,180 thousand.

Goodwill

XVII. Goodwill

	2025	2024
COST
Balance at January 1	$ 638	$ 638
Acquired through business combinations during the year (Note 30)	3,508,983	-
Impairment loss recognized during the year	( 638 )	-
Net exchange differences	292,735	-
Balance at December 31	$ 3,801,718	$ 638

This goodwill arose from the Group’s acquisition of AIP in July 2025. The recoverable amount of goodwill is assessed for impairment at each reporting date. The recoverable amount is determined based on value in use, which is estimated using cash flows derived from the Group’s financial budgets for the next five years, discounted at an annual rate of 11.04%.

Key assumptions include projected operating revenue and gross profit, which are based on the historical performance of the cash-generating unit and management’s expectations of market conditions.

Based on the assessment, the recoverable amount exceeds the carrying amount; therefore, no impairment loss on goodwill has been recognized by the Group.

XVIII. Intangible assets

	Trademark rights	Patent rights	Computer software	Total
Cost
Balance on January 1, 2025	$ 1,992	$ 40,229	$ 46,063	$ -
Effect of the acquisition of subsidiaries	-	524,441	7,676	1,599,133
Individual acquisition	-	-	3,912	16
Derecognition	-	-	( 350 )	-
Net exchange differences	-	38,126	789	118,416
Balance on December 31, 2025	$ 1,992	$ 602,796	$ 58,090	$ 1,717,565
Accumulated amortization
Balance on January 1, 2025	$ 1,224	$ 40,109	$ 35,551	$ -
Effect of the acquisition of subsidiaries	-	-	1,347	414,461
Amortization expense	154	34,911	3,179	48,304
Derecognition	-	-	( 350 )	-
Net exchange differences	-	280	152	31,230

45 -

Balance on December 31, 2025
$ 1,378 $ 75,300 $ 39,879 $ 493,995

Net amount on December 31, 2025
$ 614 $ 527,496 $ 18,211 $ 1,223,570

Cost

Balance on January 1, 2023
$ 1,992 $ 40,221 $ 42,641 $ -

Individual acquisition
- - 3,601 -

Derecognition
- - ( 364 ) -

Net exchange differences
$ 1,992 $ 40,229 $ 46,063 $ -

Balance on December 31, 2023
$ 1,992 $ 40,221 $ 42,641 $ -

Accumulated amortization

Balance on January 1, 2023
$ 1,070 $ 40,074 $ 32,930 $ -

Amortization expense
154 31 2,853 -

Derecognition
- - ( 364 ) -

Net exchange differences
- 4 132 -

Balance on December 31, 2023
$ 1,224 $ 40,109 $ 35,551 $ -

Net amount on December 31, 2023
$ 768 $ 120 $ 10,512 $ -

The amortization expense is accounted for on a straight-line basis over a useful life of 2 to 20 years.

XIX. Loans

Short-term loans

	December 31, 2025	December 31, 2024
Bank loans
Unsecured loans	$ 3,278,999	$ 1,871,000
Secured loans(Note34)	2,352,265	100,000
Total	$ 5,631,264	$ 1,971,000

The annual interest rate for short-term loans is as follows :

	December 31, 2025	December 31, 2024
Unsecured loans	2.23% ~ 5.04%	1.78% ~ 2.23%
Secured loans	0.61% ~ 1.42%	1.85%

Long-term borrowings

46 -

47 -

	December 31, 2025	December 31, 2024
Secured borrowings (Note 34)	$ 3,414,870	$ -
Less: Current portion of long-term borrowings due within one year	( 3,414,870 )	-
	$ -	$ -

The above bank borrowings were originally due in June 2027 and bore interest at an annual rate of 6.18%.

For financial planning purposes, the Group submitted an application for early repayment to the bank in December 2025, and the borrowings were fully repaid in January 2026.

XX. Accounts payable (including related parties)

The notes and accounts payable (including related parties) of the consolidated company have all arisen from its operations. For purchases, the average credit period is 1 to 3 months on a basis of monthly settlement. The consolidated company has established financial risk management policies to ensure that all accounts payable are paid off within the pre-agreed credit period.

XXI. Bonds payable

	December 31, 2025
First Domestic Unsecured Convertible Bonds and Total Issue Amount	$ 1,000,000
Second Domestic Unsecured Convertible Bonds and Total Issue Amount	1,000,000
Less: Discount on Bonds Payable	( 131,488 )
	$ 1,868,512

(1) First Domestic Unsecured Convertible Bonds

The Company issued its First Domestic Unsecured Convertible Bonds on November 13, 2025. The bonds have a term of three years, from November 13, 2025 to November 13, 2028. Each bond has a par value of NT$100 thousand, with a total of 10,000 bonds issued and an aggregate principal amount of NT$1,000,000 thousand. The bonds were issued at 100% of their face value and bear a coupon rate of 0%.

Conversion Rights of Bondholders

Unless otherwise prohibited by applicable laws and regulations, bondholders may, from February 14, 2026 (the day following the expiration of three months from the issuance date), through November 13, 2028 (the maturity date), request the conversion of the bonds into the Company's ordinary shares in accordance with the terms and conditions of the issuance. Such requests shall be made through the bondholders' securities brokers and processed by the Company's stock affairs agent via the Taiwan Depository & Clearing Corporation.

However, conversion rights may not be exercised during the following periods:

Any period during which the transfer of the Company's ordinary shares is suspended in accordance with applicable laws and regulations;
From fifteen business days prior to the book closure date for stock dividends, cash dividends, or cash capital increases through the relevant record date for the distribution of rights;
From the record date of a capital reduction to the day preceding the commencement of trading of the replacement shares issued in connection with such capital reduction; and
From the commencement date of the suspension of conversion (or subscription) in connection with a change in the par value of shares to the day preceding the commencement of trading of the replacement shares.

The initial conversion price of the bonds is NT$105.9 per share. Thereafter, the conversion price shall be adjusted in accordance with the conversion price adjustment formula set forth in the terms and conditions of the bonds.

Redemption Rights of the Company

From February 14, 2026 (the day following the expiration of three months from the issuance date) to October 4, 2028 (40 days prior to the maturity date), if the closing price of the Company's ordinary shares exceeds 130% (inclusive) of the then-current conversion price for 30 consecutive business days, the Company may, within the subsequent 30 business days, redeem all outstanding bonds in cash at their face value in accordance with the terms and conditions of the bonds.
From February 14, 2026 (the day following the expiration of three months from the issuance date) to October 4, 2028 (40 days prior to the maturity date), if the aggregate outstanding principal amount of the bonds falls below 10% of the original total issue amount, the Company may redeem all outstanding bonds in cash at their face value in accordance with the terms and conditions of the bonds.

Put Option of the Company's Convertible Bonds

The redemption base date for the bondholders' put option is November 13, 2027 (the date falling two years after the issuance date). The Company shall announce by October 14, 2027 (30 days prior to the redemption base date) that bondholders may require the Company to redeem the convertible bonds in cash at 101.0025% of the bonds' face value (equivalent to a yield to put of 0.5%).

The convertible bonds comprise both liability and equity components. The equity component is presented under equity as "capital surplus – share options." The effective interest rate of the liability component at initial recognition is 1.6453%.

	Amounts
Proceeds from issuance (net of transaction costs of NT$3,255 thousand)	$ 995,151
Equity component (net of	( 28,931 )

transaction costs
allocated to equity of
NT$94 thousand)
Liability component at
issuance date
Interest calculated using
effective interest method
Liability component as of
December 31, 2025

966,220
2,651
$ 968,871

Financial liabilities at fair value through profit or loss – non-current, movements as follows:

	2025
Issued during the year	$ 1,600
Fair value adjustment	2,300
Ending balance	$ 3,900

(2) Second Domestic Unsecured Convertible Bonds

The Company issued its Second Domestic Unsecured Convertible Bonds on November 25, 2025. The bonds have a term of five years, from November 25, 2025 to November 25, 2030. Each bond has a par value of NT$100 thousand, with a total of 10,000 bonds issued and an aggregate principal amount of NT$1,000,000 thousand. The bonds were issued at 104.73% of their face value. The bonds bear a coupon rate of 0%.

Conversion Rights of Bondholders

Bondholders may, from February 26, 2026 (the day following the expiration of three months from the issuance date) to November 25, 2030 (the maturity date), request conversion of the bonds into the Company's ordinary shares in accordance with the terms and conditions of the issuance. Such requests shall be made through the bondholders' securities brokers and submitted to the Company's stock affairs agent via the Taiwan Depository & Clearing Corporation.

Conversion may be exercised at any time, except during the following restricted periods:

Any period during which the transfer of the Company's ordinary shares is suspended in accordance with applicable laws and regulations;
From fifteen business days prior to the book closure date for stock dividends, cash dividends, or cash capital increases through the relevant record date for rights distribution;
From the record date of capital reduction to the day preceding the commencement of trading of replacement shares issued in connection with such capital reduction; and
From the commencement date of suspension of conversion (or subscription) due to a change in the par value of shares to the day preceding the commencement of trading of the new shares issued.

The initial conversion price of the bonds is NT$101.9 per share. Thereafter, the conversion price shall be adjusted in accordance with the adjustment formula set forth

49 -

in the terms and conditions of the bonds.

Redemption Rights of the Company

From February 26, 2026 (the day following the expiration of three months from the issuance date) to October 16, 2030 (40 days prior to the maturity date), if the closing price of the Company's ordinary shares exceeds 130% (inclusive) of the then-current conversion price for 30 consecutive business days, the Company may, within the subsequent 30 business days, redeem all outstanding bonds in cash at their face value in accordance with the terms and conditions of the bonds.
From February 26, 2026 (the day following the expiration of three months from the issuance date) to October 16, 2030 (40 days prior to the maturity date), if the aggregate outstanding principal amount of the bonds falls below 10% of the original total issue amount, the Company may redeem all outstanding bonds in cash at their face value in accordance with the terms and conditions of the bonds.

Put Option of Bondholders

The redemption dates for the bondholders' put option are November 25, 2027, November 25, 2028, and November 25, 2029 (i.e., the dates falling two, three, and four years after the issuance date, respectively). The Company shall announce by October 26, 2027, October 26, 2028, and October 26, 2029 (30 days prior to each redemption date), that bondholders may require the Company to redeem the convertible bonds in cash at face value plus interest compensation.

The redemption prices are as follows:

At the end of year 2: 101.0025% of the bonds' face value (yield to put: 0.5%)

At the end of year 3: 101.5075% of the bonds' face value (yield to put: 0.5%)

At the end of year 4: 102.0151% of the bonds' face value (yield to put: 0.5%)

These convertible bonds comprise both liability and equity components. The equity component is presented within equity as "capital surplus – share options." The effective interest rate of the liability component at initial recognition is 2.1901%.

	Amounts
Proceeds from issuance (net of transaction costs of NT$2,255 thousand)	$ 1,024,058
Equity component (net of transaction costs allocated to equity of NT$275 thousand)	( 127,692 )
Liability component at issuance date	896,366
Interest calculated using effective interest method	3,275
Liability component as of December 31, 2025	$ 899,641

Financial liabilities at fair value through profit or loss – non-current, movements as follows:

51 -

	2025
Issued during the year	$ 21,000
Fair value adjustment	1,900
年底餘額	$ 22,900

(3) Equity Component (included in capital surplus, refer to Note 24)

As of December 31, 2025, the capital surplus arising from the initial recognition of the First and Second Domestic Unsecured Convertible Bonds amounted to NT$156,623 thousand.

XXII. Notes and accounts payable (including related parties)

The Group’s notes and accounts payable (including related parties) arise from operating activities.

The average credit period for purchases ranges from one to six months from month-end. The Group has established financial risk management policies to ensure that all payables are settled within the agreed credit terms.

XXIII. Other payables

	December 31, 2025	December 31, 2024
Salaries and bonuses payable
Salaries and bonuses payable	$ 281,646	$ 160,124
Commission payable	54,552	48,506
Social insurance and housing fund payable	257,235	49,457
Interest payable	69,114	1,180
Service fee payable	45,413	43,362
Advertising expense payable	40,697	25,628
Taxes payable	24,207	5,150
Equipment and construction payments payable	14,958	25,538
Remuneration payable to employees and directors	15,908	96,346
Others	285,187	176,915
	$ 1,088,917	$ 632,206
Provisions
Litigation	$ 1,474,807	$ -
Warranty	45,585	26,652
	$ 1,520,392	$ 26,652
Other current liabilities
Refund liabilities	$ 180,501	$ 88,799
Others	11,445	13,516
	$ 191,946	$ 102,315

XXIV. Post-employment benefit plans

(I) Defined contribution plan

The pension system under the “Labor Pension Act,” as applied by HEC and domestic subsidiaries under the consolidated company, is a defined contribution plan managed by the government. A pension equal to 6% of an employee’s monthly salary is allocated and deposited into a special personal account at the Bureau of Labor Insurance.

The employees of a subsidiary of the consolidated company in Mainland China are participants in a retirement benefit plan operated by the relevant local government of Mainland China. The subsidiary is required to contribute a certain percentage of its salary cost as funding to the retirement benefit plan, while the obligations of the consolidated company toward such government-operated retirement benefit plan only consist of the contribution of a certain amount.

For any other foreign subsidiary, a defined contribution plan is applied, where a pension is allocated monthly based on a certain amount of percentage in accordance with local regulations and placed under the management of a professional local agency.

(II) Defined benefit plan

The pension system applied to HEC and domestic subsidiaries under the consolidated company in accordance with the “Labor Pension Act” is a defined benefit plan managed by the government. The pension paid to an employee is calculated based on the length of his/her service and the average salary over the 6 months prior to the approved date of his/her retirement. We allocate a fixed amount each month as an employee’s pension and deposit it into a special account at the Bank of Taiwan in the name of the Labor Pension Fund Supervisory Committee. If, by the end of each year, the estimated balance in the special account is insufficient for payments to employees who are expected to meet the criteria for retirement in the next year, we will allocate the difference in a lump sum by the end of March next year. The special account is managed by the Bureau of Labor Funds, Ministry of Labor, and the consolidated company does not have any right to influence the investment management strategies. Since the subsidiary LFE under the consolidated company has allocated sufficient pensions, the competent authority has given approval for suspending the contribution of pensions during April 2016 to February 2025.

The amounts of defined benefit plan included in the consolidated balance sheet

52 -

are as follows:

	December 31, 2025	December 31, 2024
Present value of defined benefit obligations	$ 10,930	$ 11,016
Fair value of plan assets	( 36,907 )	( 32,489 )
Net defined benefit assets	($ 25,977 )	($ 21,473 )
Net defined benefit assets	$ 29,605	$ 27,447
Net defined benefit liabilities	$ 3,628	$ 5,974

The changes in net defined benefit liabilities are as follows:

	Present value of defined benefit obligations	Fair value of plan assets	Net defined benefit liabilities (assets)
Balance on January 1, 2024	$ 10,724	($ 29,266)	($ 18,542)
Interest expense (income)	139	( 334)	( 195)
Recognized in profit/loss	139	( 334)	( 195)
Remeasurement
Return on plan assets (excluding any amount included in net interest)	-	( 2,367)	( 2,367)
Actuarial profit - changes in financial assumptions	( 281)	-	( 281)
Actuarial profit - experience adjustments	434	-	434
Recognized in other comprehensive income	153	( 2,367)	( 2,214)
Employer contribution	-	( 522)	( 522)
Balance on December 31, 2024	11,016	( 32,489)	( 21,473)
Interest expense (income)	$ 176	($ 452)	($ 276)
Recognized in profit/loss	176	( 452)	( 276)
Remeasurement
Return on plan assets (excluding any amount included in net interest)	-	( 2,073)	( 2,073)
Actuarial profit - changes in financial assumptions	340	-	340
Actuarial profit - experience adjustments	180	-	180
Recognized in other comprehensive income	520	( 2,073)	( 1,553)
Employer contribution	-	( 2,675)	( 2,675)
Payments from plan assets	( 782)	782	-
Balance on December 31, 2025	$ 10,930	($ 36,907)	($ 25,977)

Due to the pension system under the "Labor Standards Act," the consolidated company is exposed to the following risks:

Investment risk: The Bureau of Labor Funds, Ministry of Labor has, for own discretionary use or through contracted management, invested the labor pension funds into domestic (foreign) equity and debt securities and bank deposits, even though the distributable amount of the consolidated company's plan assets is a profit calculated at an interest rate no less than that for a 2-year time deposit with a local bank.
Interest rate risk: A decrease in the interest rates of government bonds will increase the present value of defined benefit obligations, but will also increase the return on debt investments in plan assets. Both increases have a partial offsetting effect against the impact of net defined benefit liabilities.
Salary risk: The present value of defined benefit obligations is calculated based on the future salary of the plan participants. As a result, an increase in the salary of the plan participants will raise the present value of defined benefit obligations.

The present value of the defined benefit obligations of the consolidated company is calculated actuarially by a qualified actuary. The material assumptions on the date of measurement are as follows:

	December 31, 2025	December 31, 2024
Discount rate	1.20% ~ 1.40%	1.50% ~ 1.60%
Expected salary increase rate	2.25% ~ 2.50%	2.25% ~ 2.50%

In the event of reasonably possible changes in the material actuarial assumptions, the resulting increase (decrease) in the present value of defined benefit obligations where all other assumptions remain the same is as follows:

	December 31, 2025	December 31, 2024
Discount rate
Increase by 0.25%	( $ 221 )	( $ 240 )
Decrease by 0.25%	$ 227	$ 247
Expected salary increase rate
Increase by 0.25%~1%	$ 233	$ 254
Decrease by 0.25%~1%	( $ 225 )	( $ 246 )

Since the actuarial assumptions may be correlated and changes in only a single assumption are unlikely, the sensitivity analysis above may not reflect actual changes in the present value of defined benefit obligations.

	December 31, 2025	December 31, 2024
Expected contribution within 1 year	$ 43	$ 95
Average maturity period of defined benefit obligations	9~13.4 years	10~14.4 years

XXV. Equity

(I) Common share capital

	December 31, 2025	December 31, 2024
Number of authorized shares (thousand shares)	200,000	200,000
Authorized share capital	$ 2,000,000	$ 2,000,000
Number of issued shares with full payment received (thousand shares)	113,286	113,286
Issued share capital	$ 1,132,856	$ 1,132,856
Publicly issued common shares	$ 1,032,856	$ 1,032,856
Privately placed common shares	100,000	100,000
	$ 1,132,856	$ 1,132,856

Common shares are issued at a par value of NTD10, with each share entitled to one voting right and the right to receive dividends.

On September 28, 2016, our annual shareholders' meeting adopted a resolution for capital increase by cash via private placement. On September 30, 2016, the Board of Directors adopted a resolution for private placement of 10,000 thousand common shares at NTD32.8 per share totaling NTD328,000 thousand.

The foregoing privately placed common shares are, in accordance with the Securities and Exchange Act, subject to restrictions on circulation and transfer, and an application for their public listing and trading may be filed only after a lapse of 3 years from the date of their delivery and following their public listing. The rights and obligations of privately placed common shares are same as those of our outstanding common shares.

The share capital retained from the authorized share capital for the issuance of employees' stock warrants is 6,000 thousand shares.

56 -

(II) Capital reserves

	December 31, 2025	December 31, 2024
Usable for offsetting of losses, distribution of cash or contribution to share capital (Note 1)
Shares issued in excess of par value	$ 357,543	$ 357,543
Trading of treasury stocks	116,076	77,277
Consolidated surplus	254	254
Usable only for offsetting of losses
Recognized changes in ownership equity in subsidiaries (Note 2)	6,693	6,693
Convertible Bond Subscription Rights Not to Be Used for Any Purpose (Note 3)
	156,623	-
	$ 637,189	$ 441,767

Note 1: This category of capital reserves may be used to offset losses, or to distribute cash dividends or be contributed to the share capital if HEC has no losses, provided that such contribution to the share capital does not exceed a certain percentage of the paid-in share capital each year.

Note 2: This category of capital reserves are the effects of equity transactions recognized due to changes in the equity of subsidiaries where HEC has not actually acquired or disposed of the equity of subsidiaries.

Note 3: This category of capital surplus arises from convertible bonds and will be adjusted subsequently upon conversion or expiration of the related conversion rights.

(III) Retained earnings and dividend policy

According to the earnings distribution policy under the Articles of Incorporation, where HEC has earnings in the final accounts of a fiscal year, it shall set aside 10% thereof as legal reserves after paying taxes and offsetting losses as legally required, unless the amount of such legal reserves equals or exceeds HEC’s paid-in capital. The remaining amount of the foregoing earnings shall be set aside or reversed as special reserves in accordance with the law. If there are still any remaining earnings, the Board of Directors shall,

depending on the operating performance, retain such earnings plus the accumulated undistributed earnings, and shall prepare a proposal for distribution of earnings and submit the proposal to a shareholders' meeting for a resolution on distribution of bonuses to shareholders. For the policy of distribution of the remuneration for employees and directors in the Articles of Incorporation, see Note 26(7) "Remuneration for employees and directors."

In consideration of its future investment funding needs and its financial structure, HEC has adopted a balanced and stable dividend policy for the purposes of sustainable management and long-term development, with shareholders' interests and other factors taken into account. Each year, no less than 10% of the distributable earnings shall be appropriated for distribution of bonuses to shareholders. No such distribution is required if the cumulative distributable earnings amount to less than 2% of the paid-in share capital. For distribution of dividends in any future year, it is expected that the amount of cash dividends distributed will be no less than 10% of the total dividends distributed in that year, and that such dividends will, based on the investment funding needs and the level of dilution of earnings per share, be distributed in stock or cash, as appropriate.

Legal reserves may be used to offset losses. Where HEC has no losses and if legal reserves exceed the total paid-in capital by 25%, the excess amount may be contributed to the share capital or distributed in cash.

At the annual shareholders' meetings held in June 2025 and 2024, the proposals for distribution of earnings in 2024 and 2023 were approved as follows:

	2024	2023
Legal reserves	$ 51,884	$ 60,583
Special reserves set aside (reversed)	( $ 132,016 )	$ 61,784
Cash dividends	$ 308,785	$ 393,000
Dividends per share (NTD)	$ 2.73	$ 3.5

On March 12, 2026, the Company's Board of Directors proposed the appropriation of the 2025 deficit and the reversal of special reserve amounting to NT$80,914 thousand. The proposed appropriation of the 2025 deficit remains subject to approval by

the shareholders at the annual general meeting expected to be held in June 2026.

(IV) Special reserves

At the time of our first adoption of IFRSs, we had set aside special reserves from the increase of NTD103,094 thousand in retained earnings generated due to conversion.

(V) Other equity

Exchange differences on translation of financial statements of foreign operations

	2025		2024
Starting balance	($	118,604)	($	250,621)
Incurred in the current year
Net exchange on translation of financial statements of foreign operations		222,106		133,150
Share of associates accounted for using the equity method		125		711
Related income tax	(	5)	(	1,844)
Ending balance	$	103,622	($	118,604)

(VI) Non-controlling interest

	2025		2024
Starting balance	$	1,267,110	$	1,218,458
Net profit in the current year	(	235,352)		121,299
Other comprehensive income in the current year
Exchange differences on translation of financial statements of foreign operations		28,406		37,037
Share of other comprehensive income of associates accounted for using the equity method		121		693
Non-controlling interests related to outstanding vested stock options held by the employees of the subsidiary OPT (Note 29)		-		515
Remeasurement of defined benefits plans		706		812
Related income tax	(	18)	(	641)
Cash dividends to the shareholders of	(	131,801)	(	111,063)

subsidiaries

Ending balance

$ 929,172 $ 1,267,110

(VII) Treasury stocks

Reason for repurchase	Shares transferred to employees (thousand shares)
	2025	2024
Number of shares at start of year	1,000	1,000
Decrease in the current year	( 1,000 )	-
Number of shares at end of year	-	1,000

In accordance with the Securities and Exchange Act, treasury stocks held by HEC may not be pledged and are not entitled to any dividends distributed or voting rights.

XXVI. Revenue

	2025	2024
Revenue from contracts with customers
Sales revenue	$ 11,188,738	$ 7,402,013

(I) Contract balance

	December 31, 2025	December 31, 2024	January 1, 2024
Notes receivable	$ 227,606	$ 3,579	$ 1,272
Accounts receivable	$3,365,048	$2,026,471	$2,357,790
Contract liabilities
Sales of goods	$ 133,490	$ 186,402	$ 83,193

Any change in contract liabilities mainly arises from the difference between the time of fulfillment of contractual obligations and the time of payment by a customer.

The following are the amounts accounted for as revenue in the current period with respect to the starting contract liabilities:

	2025	2024
Starting contract liabilities
Sales of goods	$ 91,809	$ 50,212

(II) Sub-items of revenue from contracts with customers

	2025	2024
Power supplies	$ 4,023,698	$ 2,894,781
Computers, server chassis and their components	2,246,268	2,110,247
Private brands of computer	1,809,154	1,627,999

and gaming peripherals

Voice Coils and Related Components	2,237,357	-
Medical and home beds	132,360	183,333
Others	739,901	585,653
	$ 11,188,738	$ 7,402,013

XXVII. Pre-tax net profit

(I) Interest income
	2025	2024
Interest on bank deposits	$ 90,245	$ 111,281
Others	5,619	4,696
	$ 95,864	$ 115,977
(II) Other incomes
	2025	2024
Litigation Compensation Income	$ 63,457	$ -
Rent revenue	2,807	2,678
Revenue from government subsidies	29,046	16,823
Revenue from shipping fees	3,287	3,961
Others	34,370	13,134
	$ 132,967	$ 36,596

The subsidiary, Fulltech, filed a lawsuit against its former director, Mr. Lien-Sheng Chang, for losses incurred as a result of his use of the subsidiary's funds to purchase real estate in 2013. The subsidiary also sought to hold the former chairman, Mr. Yung-Da Chang, jointly and severally liable. In September 2025, the Taiwan High Court rendered its final and binding judgment, ordering the defendants to pay Fulltech NT$47,434 thousand, together with interest calculated in accordance with the judgment. In December 2025, Fulltech received litigation compensation and related interest totaling NT$63,457 thousand.

(III) Other profits and losses

	2025	2024
Litigation Losses (Note 35)	($ 1,417,298 )	$ -
Net profit on foreign currency exchange	( 205,989 )	105,298
Profit on disposal of property, plant and equipment	718	128
Fire Losses (Note 36)	( 121,321 )	-

61 -

Net loss on financial assets and liabilities measured at fair value through profit/loss
19,974 ( 154 )
Impairment Loss
( 638 ) -
Others
( 24,987 ) ( 2,353 )
( $ 1,749,541 ) $ 102,919

(IV) Financial cost

	2025	2024
Interest of bank loans	$ 239,898	$ 51,036
Interest on Convertible Bonds	5,926	-
Interest of lease liabilities	3,782	521
	$ 249,606	$ 51,557

(V) Depreciation and amortization

	2025	2024
Property, plant and equipment	$ 197,584	$ 173,296
Right-of-use assets	70,595	37,825
Other intangible assets	$ 197,584	$ 173,296
	$ 355,791	$ 214,159

Summary of depreciation expenses by purpose
Operating costs $ 187,521 $ 132,107
Operating expense 80,658 79,014
$ 268,179 $ 211,121

Summary of amortization expenses by purpose
Operating costs $ 23,277 $ 75
Operating expense 64,335 2,963
$ 87,612 $ 3,038

(VI) Employee benefit expenses

	2025	2024
Short-term employee benefits	$ 1,487,949	$ 1,076,624
Post-employment benefits
Defined contribution plan	90,033	47,794

62 -

Defined benefit plan (Note 23)	( 276 )	( 195 )
	89,757	47,599
Share-based payment – equity settlement (Note 29)	38,850	515
	$ 1,616,556	$ 1,124,738
Summarized by purpose
Operating costs	$ 1,003,692	$ 590,551
Operating expense	612,864	534,187
	$ 1,616,556	$ 1,124,738

(VII) Remuneration for employees and directors

The Company allocates employee compensation and directors’ remuneration based on pre-tax profit of the current year before deducting such distributions. Employee compensation is appropriated at a rate of 2% to 10%, while directors’ remuneration is appropriated at a rate not exceeding 4%. In accordance with the amendment to the Securities and Exchange Act in August 2024, the Company amended its Articles of Incorporation, as approved by the shareholders’ meeting in 2025, stipulating that at least 30% of the employee compensation appropriated for the year shall be allocated as remuneration to entry-level employees. The employee compensation and directors’ remuneration for 2024 were resolved by the Board of Directors in March 2025 as follows:

Estimated percentage

	2024
Remuneration for employees	8%
Remuneration for directors	4%

Amount

	2024
	Cash
Remuneration for employees	$ 51,790
Remuneration for directors	$ 25,895

The Company incurred a pre-tax net loss in 2025; therefore, no employee compensation or directors’ remuneration was estimated or accrued.

Any change in the amount after the date of approval and publication of the annual consolidated financial report is treated as a change in accounting estimates and will be adjusted to be accounted for in the next year.

There is no difference between the actually distributed amounts of the remuneration for employees, directors and supervisors in 2024 and 2023 and the amounts recognized in the consolidated financial report of each year.

For information of the remuneration for employees and directors as approved by the Board of Directors, visit the "Market Observation Post System" of the Taiwan Stock Exchange.

(VIII) Profit/Loss on foreign currency exchange

	2025	2024
Total profit on foreign currency exchange	$ 558,075	$ 248,502
Total loss on foreign currency exchange	( 764,064 )	( 143,204 )
Net profit	( $ 205,989 )	$ 105,298

XXVIII. Income tax

(I) Main items under income tax expense recognized as profit/loss

	2025	2024
Current income tax
Incurred in the current year	$ 372,629	$ 150,086
Adjusted from prior years	( 5,880 )	( 93,624 )
Additional tax on undistributed earnings	17,093	4,661
	383,842	61,123
Deferred income tax
Incurred in the current year	( 7,800 )	( 9,794 )
	$ 376,042	$ 51,329

Adjustments to accounting income and income tax expenses are as follows:

	2025	2024
Pre-tax net profit	( $ 753,630 )	$ 690,504
Income tax expense on pre-tax net profit calculated at the statutory tax rate (20%)	( $ 150,726 )	$ 138,101
Non-deductible revenue on tax	38,930	( 3,160 )
Unrecognized deductible temporary	429,760	38,801

difference

Tax-exempt income	(	22,761 )	-
Effect of different tax rates on subsidiaries operating in other jurisdictions		69,626	( 33,450 )
Adjustment to income tax in prior year	(	5,880 )	( 93,624 )
Additional tax on undistributed earnings		17,093	4,661
	$	376,042	$ 51,329

For HEC and domestic subsidiaries under the consolidated company, the applicable tax rate is 20%. For the subsidiaries in Mainland China, the applicable tax rate is 25%. However, LFDG qualified as high-tech enterprises can be levied corporate income tax at a 15% rate from 2022 to 2027; taxes generated in other jurisdictions Calculated based on tax rates applicable in each relevant jurisdiction.

(II) Income tax expense (profit) recognized in other comprehensive income

	2025	2024
Deferred income tax
Incurred in the current year
Translation of foreign operations	$ 23	$ 2,485
Remeasurement of defined benefits plans	311	443
	$ 334	$ 2,928

(III) Income tax assets and liabilities in the current period

	December 31, 2025	December 31, 2024
Tax refund receivable	$ 46,057	$ 366
Income tax payable	$ 297,877	$ 95,162

(IV) Deferred income tax assets and liabilities

Changes in deferred income tax assets and liabilities are as follows: 2025

Deferred income tax assets	Starting balance	Recognized in profit/loss	Recognized in other comprehensive income	Exchange difference	Ending balance
Temporary difference
Foreign long-term equity investments	$ 2,190	$ -	($ 193)	($ 50)	$ -
Loss offset	9,405	-	1,318	-	( 79)
Allowance for loss on inventory devaluation	5,060	2,843	4,274	-	425
Refund liabilities	11,895	-	4,539	-	-
Allowance for bad debt	2,857	2,519	( 263)	-	250
Unrealized gross sales margin	516	-	( 516)	-	-
Accumulated impairment on property	1,200	-	-	-	-
Defined benefit retirement plan	1,194	-	( 516)	47	-
Unrealized employee benefit expense	-	32,311	3,069	-	2,376
Others	13,334	873	10,363	-	130
	$ 47,651	$ 38,546	$ 22,075	($ 3)	$ 3,102

Deferred income tax liabilities

Temporary difference
Unrealized exchange profits	$ 4,675	$ -	($ 4,280)	$ -	($ 71)
Defined benefit retirement plan	5,489	-	75	358	-
Exchange differences on translation of financial statements of foreign operations	1,013	-	-	( 27)	-
Fair value gain	-	127,964	( 10,939)	-	9,499
Income from foreign investments	-	26,851	28,062	-	2,177
Unrealized sales loss	-	57	( 30)	-	6
Others	-	628	1,387	-	93
	$ 11,177	$ 155,500	$ 14,275	$ 331	$ 11,704

2024

Deferred income tax assets	Starting balance	Recognized in profit/loss	Recognized in other comprehensive income	Exchange difference	Ending balance
Temporary difference
Foreign long-term equity investments	$ 4,314	($ 652)	($ 1,472)	$ -	$ 2,190
Loss offset	8,614	619	-	172	9,405
Allowance for loss on inventory devaluation	3,925	1,071	-	64	5,060
Refund liabilities	7,327	4,568	-	-	11,895
Allowance for bad debt	2,751	-	-	106	2,857
Unrealized gross sales margin	553	( 37)	-	-	516
Accumulated impairment on property	1,200	-	-	-	1,200
Defined benefit retirement plan	1,313	( 87)	( 32)	-	1,194
Others	5,895	7,443	-	( 4)	13,334
	$ 35,892	$ 12,925	($ 1,504)	$ 338	$ 47,651
Deferred income tax liabilities
Temporary difference
Unrealized exchange profits	$ 1,607	$ 3,075	$ -	($ 7)	$ 4,675
Defined benefit retirement plan	5,022	56	411	-	5,489
Exchange differences on translation of foreign operations	-	-	1,013	-	1,013
	$ 6,629	$ 3,131	$ 1,424	($ 7)	$ 11,177

(V) Unused amount of loss offset of deferred income tax assets not recognized in the consolidated balance sheet

	December 31, 2025	December 31, 2024
Loss offset
Maturing in 2025	$ -	$ 3,745
Maturing in 2026	1,865	1,865
Maturing in 2027	3,735	3,735
Maturing in 2028	5,909	5,909
Maturing in 2029	4,873	4,873
Maturing in 2030	31,648	31,648
Maturing in 2031	65,390	65,390
Maturing in 2032	731	731
Maturing in 2033	13,554	11,253
Maturing in 2034	146,234	143,136

Maturing in 2035

98,974

$ 372,913

$ 272,285

(VI) Consolidated amount of temporary differences relating to investments in subsidiaries without recognition of deferred income tax liabilities

To meet the need of foreign investee companies for working capital, the management of the consolidated company has decided that the undistributed earnings of foreign subsidiaries will be first used for permanent reinvestments without any distribution of profit. Such temporary differences are unlikely to be reversed in the foreseeable future.

As of December 31, 2025 and 2024, the taxable temporary differences relating to the foregoing investments in subsidiaries without recognition of deferred income tax liabilities amounted to NTD2,939,668 thousand and NTD3,328,727 thousand respectively.

(VII) Approval of income tax

The returns of profit-seeking enterprise income tax of HEC and the domestic subsidiaries LFE, FCC and OPT up until 2023 were approved by the tax authority.

XXIX. Earnings per share

The earning and the weighted average number of common shares used for calculation of EPS are as follows:

Net profit in the current year

	2025	2024
Net profit attributable to the owners of HEC	($ 894,320)	$ 517,876

Number of shares

	Unit: thousand shares
	2025	2024
Basic EPS
Starting number of outstanding common shares	113,286	113,286
Less: Weighted average number of treasury shares	( 468 )	( 1,000 )
Weighted average number of common shares used for calculation of basic EPS	112,818	112,286
Effect of dilutive potential common shares:
Remuneration for employees	-	734
Weighted average number of common shares used for calculation of diluted EPS	112,818	113,020

Where the consolidated company chooses to distribute the remuneration for employees in shares or cash, the diluted EPS is calculated by adding the number of dilutive potential common shares to the weighted average number of outstanding shares under the assumption that the remuneration for employees will be distributed in shares. The dilutive effect of the potential common shares will continue to be taken into account when calculating the diluted EPS before a resolution is adopted in the next year on the number of shares distributable as the remuneration for employees.

The Company incurred a net loss after tax for 2025; therefore, the effects of potentially dilutive ordinary shares arising from convertible bonds and employee compensation, which are anti-dilutive, were not included in the calculation of diluted loss per share.

XXX. Agreement on share-based payment

(I) Transfer treasury shares to employees.

In May 2025, the Company granted 1,000 thousand treasury stock subscription rights to employees of the Company. The awards were granted to the Company’s employees and were immediately vested. All rights were fully exercised in June 2025.

The following is the information of employees’ stock options for treasury shares:

	2025
Employees’ stock options for treasury shares	Unit (thousand shares)	Weighted average price of issue (NTD)
Outstanding at start of the year	-	$ -
Granted in the current year	1,000	29.57
Issued in the current year	( 1,000 )	29.57
Outstanding at end of the year	-
Weighted average fair value of employees’ stock options for treasury shares granted in the current year (NTD)	$ 38.85

The employee treasury stock subscription rights granted by the Company in May 2025 were valued using the Black-Scholes valuation model. The key parameters used in the model are as follows:

Exercise price 29.57 元
Expected term 14 天
Grant date share price 68.40 元
Expected volatility 60.721%
Expected dividend yield 0%
Risk-free interest rate 1.225%

The expected volatility was based on the annualized standard deviation of daily returns from April 17 to May 7, 2025. Employee compensation cost recognized in 2025 amounted to NT$38,850 thousand, and the capital surplus arising from the transfer of treasury shares to employees amounted to NT$38,799 thousand.

(II) Subsidiaries issue employee stock options

In June 2022, the subsidiary OPT issued employees' stock options for 2,870 thousand shares, the recipients of which included the employees of HEC and OPT. The stock options are valid for three years, and a holder of their warrants may, on each anniversary of the date of their issuance, exercise a certain percentage of such options granted.

	2025		2024
Employees' stock options	Unit (thousand shares)	Weighted average price of issue (NTD)	Unit (thousand shares)	Weighted average price of issue (NTD)
Outstanding at start of the year	2,870	$ 11.7	2,870	$ 11.7
Expired during the current year	( 2,870 )	11.7	-	-
Outstanding at end of the year	-		2,870

Regarding the employees' stock options granted by OPT to the employees of HEC and OPT in June 2022, OPT used the Black-Scholes pricing model adopting the following parameters:

Price on the grant date NTD 11.7

Expected lifetime 2 to 2.5 years

Expected dividend yield 0%

Risk-free interest rate 1.212% ~ 1.216%

The consolidated company recognized employee compensation cost of NT$515 thousand for 2024.

XXXI. Business Combination

(1) Acquisition of a Subsidiary

Acquiree	Principal activities	Acquisition date	Voting equity interest / acquisition percentage (%)	Consideration transferred

69 -

Amber Investment Partners Limited
General investment business
July 8, 2025
100.00
$4,420,690

In July 2025, the consolidated company acquired ordinary shares of Amber Investment Partners Limited and its issued convertible bonds in order to expand into the acoustic and automotive markets and to increase its international production bases

(2) Consideration transferred

	AIP ☆ 5]
cash	$ 4,420,690

(3) Assets acquired and liabilities assumed at the acquisition date

	AIP ☆ 5]
Current assets
Cash and cash equivalents	$ 354,983
Financial assets at amortized cost - current	3,478
Accounts receivable and other receivables	1,456,023
Inventories	703,237
Others	22,769
Non-current assets
Financial assets at amortized cost - non-current	45,491
Property, plant and equipment	619,540
Right-of-use assets	607,191
Intangible assets	1,721,815
Others	77,471
Current liabilities
Bank borrowings	( 104,015 )
Accounts payable and other payables	( 773,026 )
Lease liabilities	( 66,316 )
Others	( 100,063 )
Non-current liabilities
Long-term borrowings	( 3,118,985 )
Lease liabilities	( 376,255 )
Deferred tax liabilities	( 155,500 )
Others	( 86 )
	( $ 917,752 )

(4) Goodwill arising from acquisition

	AIP ☐
Consideration transferred	$ 4,420,690
Non-controlling interest	6,045
Less: Fair value of identifiable net assets acquired	( 917,752 )
Goodwill arising on acquisition	$ 3,508,983

(5) Net cash outflow on acquisition of a subsidiary

	AIP ☐
Cash consideration paid	$ 4,420,690
Less: Cash and cash equivalents acquired	( 354,983 )
	$ 4,065,707

(6) Effect of business combination on operating results

The operating results of AIP Company from the acquisition date are as follows:

	From the acquisition date to December 31, 2025
Operating revenue	$ 2,287,789
Net profit for the year	$ 208,953

If the business combination had occurred at the beginning of the reporting period in which the acquisition date falls, the pro forma operating revenue and net profit of AIP Company are as follows:

	For the year ended December 31, 2025
Operating revenue	$ 4,342,252
Net profit for the year	$ 76,859

These amounts do not represent the revenue and operating results that would have been achieved by the consolidated company had the business combination occurred at the beginning of the reporting period, and should not be used as a basis for predicting future operating performance

XXXII. Capital risk management

The chief management of the consolidated company periodically reviews its capital structure, including consideration of the costs and relevant risks of all categories of

capital. Therefore, the consolidated company engages in capital management for the purpose of ensuring the availability of required financial resources and operational plans to meet the needs for working capital, capital expenditure, R&D expense, debt repayment and dividend expense in the next 12 months.

XXXIII. Financial instruments

(I) Fair value information – financial instruments not measured at fair value

The management of the consolidated company considers the carrying value of financial assets and liabilities not measured at fair value to be near its fair value.

2025

	Carrying amount	Fair value
		Level 1	Level 2	Level 3	Total
Financial liabilities
Convertible bonds	$1,868,512	$-	$-	$1,850,000	$1,850,000

(II) Fair value information – financial instruments measured at fair value on a recurring basis

Fair value hierarchy

December 31, 2025

	Level 1	Level 2	Level 3	Total
Financial assets measured at fair value through profit/loss
Derivative instruments	$ -	$ 8,055	$ -	$ 8,055
Financial liabilities measured at fair value through profit/loss
Derivative instruments	$ -	$ -	$ 26,800	$ 26,800
December 31, 2024
	Level 1	Level 2	Level 3	Total
Financial assets measured at fair value through profit/loss
Structured deposits	$ -	$ -	$ 982,052	$ 982,052
	Level 1	Level 2	Level 3	Total
Financial liabilities at fair value through profit or loss

Derivative instruments

$ - $ 10,668 $ - $ 10,668

There was no transfer of fair value measurement between Level 1 and Level 2 in 2025 and 2024.

Adjustment of financial instruments measured at Level 3 fair value

Financial Assets	2025	2024
Starting balance	$ 982,052	$ -
Purchase	-	3,719,926
Recognized in profit or loss (included in interest income)	5,619	4,696
Sales/settlements	( 951,290 )	( 2,740,306 )
Recognized in Other comprehensive income ( Exchange differences on translation of financial statements of foreign operations )	( 36,381 )	( 2,264 )
Ending balance	$ -	$ 982,052
Financial liabilities
Beginning balance	$ -	$ -
Issued during the year	22,600	-
Recognized in profit or loss (included in other gains and losses)	4,200	-
Ending balance	$ 26,800	$ -

Valuation techniques and inputs for Level 2 fair value measurement

Type of financial instruments	Valuation techniques and inputs
Derivative instrument – forward foreign exchange contract	Method of discounted cash flow: Future cash flows are estimated using observable forward exchange rates at the end of period and the exchange rates determined in contracts, and are discounted at a discount rate able to reflect the credit risk of each counterparty.

Valuation techniques and inputs for Level 3 fair value measurement

Fair value through profit or loss – Structured deposits are measured at fair value using the net asset value method.

(III) Types of financial instruments

	December 31, 2025	December 31, 2024
Financial assets
Measured at fair value through profit/loss – held for transactions	$ 8,055	$ 982,052
Financial assets measured at amortized cost (Note 1)	9,344,601	5,058,306
Financial liabilities
Measured at fair value through profit/loss – held for transactions	26,800	10,668
Measured at amortized cost (Note 2)	14,100,257	4,451,456

Note 1: The balance included the financial assets measured at amortized cost, such as cash and cash equivalents, notes and accounts receivable, other receivables (excluding refundable taxes receivable), financial assets measured at amortized cost and guarantee deposits paid.

Note 2: The balance includes financial liabilities measured at amortized cost, such as short-term loans, accounts payable (including related parties), other payables and deposits received.

(IV) Purposes and policies of financial risk management

The primary financial instruments of the consolidated company include cash and cash equivalents, payments receivable, payments and loans payable. The financial management department of the consolidated company is responsible for providing services to business units, planning and coordinating operations for entry into domestic and international financial markets, and monitoring and managing financial risks in relation to the operations of the consolidated company using internal risk reports that analyze risk exposure based on the level and scope of risks. Such risks include market risks (including exchange rate risk, interest rate risk and other price risks), credit risk and liquidity risk.

1. Market risks

The risks of change in foreign exchange rates (see (1) "Exchange rate risk" below) and in interest rates (see (2) below) are the major financial

risks borne by the consolidated company as a result of its operating activities.

There has been no change in exposure of the consolidated company to the market risks of financial instruments or our methods for management and measurement of such exposure.

(1) Exchange rate risk

The consolidated company engages in transactions of the sale and purchase of goods denominated in foreign currencies, exposing it to the risk of change in foreign exchange rates. For the management of exposure of the consolidated company to exchange rate risk, forward foreign exchange contracts are used to manage risks to the extent permitted by policies.

For the carrying amounts of monetary assets and liabilities of the consolidated company denominated in non-functional currencies on the balance sheet date (including the monetary items denominated in non-functional currencies and written off in the consolidated financial statements), see Note 37.

Sensitivity analysis

Sensitivity analysis mainly focuses on calculation of the monetary items of foreign currencies on the end date of the financial reporting period. The consolidated company is affected primarily by fluctuations in the exchange rates of USD and RMB.

The following table describes in detail the sensitivity analysis of the consolidated company in the event where the exchange rate of the functional currency to each foreign currency increases or decreases by 1%. 1% is the sensitivity rate used in an internal report to the primary management of the group regarding exchange rate risk, and also represents the range of reasonable possible change in foreign exchange rates as assessed by its management. Sensitivity analysis only focuses on the outstanding monetary items of foreign currencies and makes adjustment to their translation at end of year with an exchange rate change of 1%. The positive number in the following table means the amount of increase in the pre-tax net profit when the functional currency depreciates by 1% against each foreign currency. When the functional currency

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appreciates by 1% against each foreign currency, the effect on the pre-tax net profit is a negative number of the same amount.

	2025	2024
USD	$ 23,958	$ 19,951

(2) Interest rate risk

The interest rate risk exposure occurs due to the borrowing of funds by the consolidated company at both fixed and floating interest rates. The consolidated company manages interest rate risks by maintaining a proper combination of fixed and floating interest rates.

The carrying amounts of the financial assets and liabilities of the consolidated company exposed to the interest rate risk on the balance sheet date are as follows:

	December 31, 2025	December 31, 2024
With cash flow interest rate risk
Financial assets	$ 1,615,952	$ 607,941
Financial liabilities	6,693,869	1,080,000

Assessment by the consolidated company has indicated no significant fair value risk with regard to bonds with conditions for repurchase, time bank deposits with fixed interest rate, short-term loans and lease liabilities held by it.

Sensitivity analysis

The following sensitivity analysis is based on the interest rate risk exposure of non-derivative instruments on the balance sheet date. The analysis focuses on assets and liabilities with floating interest rates under the assumption that the amounts of outstanding assets and liabilities on the balance sheet date are outstanding over the reporting period. A 1% increase or decrease in interest rate is the rate of change used in an internal report to the group's primary management regarding interest rate, and also represents the range of reasonable possible change in interest rate as assessed by its

75 -

management.

If interest rates had increased by 1%, with all other variables held constant, the consolidated company's loss before income tax for 2025 would have increased by NT$50,779 thousand, and its profit before income tax for 2024 would have decreased by NT$4,721 thousand. This is mainly attributable to the consolidated company's exposure to cash flow interest rate risk arising from variable-rate deposits and borrowings.

2. Credit risk

Credit risk means the risk of financial loss incurred by the consolidated company as a result of a delay by the counterparty in fulfilling contractual obligations. The greatest credit risk exposure of financial losses the consolidated company is likely to incur as of the balance sheet date due to failure of the counterparty to fulfill its obligations and provision of financial guarantees by the consolidated company primarily arises from the carrying amount of financial assets recognized in the consolidated balance sheet.

The counterparties of the consolidated company are all companies with good credit, so there is unlikely to be any significant credit risk. The consolidated company will continue to assess the financial conditions of the customers from which accounts are receivable.

In the balance of accounts receivable, the total accounts receivable from customers with a significant concentration are as follows:

	December 31, 2025		December 31, 2024
	Amount	%	Amount	%
Group A	$ 717,238	21	$ 672,807	32
Group B	77,700	2	243,882	12

3. Liquidity risk

The consolidated company manages and maintains sufficient cash and cash equivalents to support its operations and mitigate the impact of fluctuations in cash flows. The management of the consolidated company monitors the utilization of bank credit facilities and ensures compliance with the terms and

conditions of borrowing agreements.

As of December 31, 2025, the consolidated company's current liabilities exceeded its current assets by NT$2,579,970 thousand. The shortfall in working capital can be covered by unused credit facilities from financial institutions; therefore, there is no liquidity risk arising from the inability to obtain funding to meet contractual obligations

Bank loans are an important source of liquidity for the consolidated company. For undisbursed financing amounts of the consolidated company, see the description in “(3) Financing limit” below.

(1) Table of liquidity and interest rate risks of non-derivative financial liabilities

The analysis of maturity of the remaining contracts of non-derivative financial liabilities is prepared based on the earliest date when the consolidated company is likely to be required to make repayment and the undiscounted cash flow of financial liabilities (including principal and estimated interest). Thus, any bank loan for which the consolidated company is likely to be required to make immediate repayment is listed within the earliest period in the following table, regardless of the probability of the bank enforcing its rights immediately, and the analysis of maturity of other non-derivative financial liabilities is prepared based on the agreed repayment date.

For the cash flow of interest paid at a floating interest rate, the undiscounted amount of interest is derived according to the yield curve on the balance sheet date.

December 31, 2025

	Within 3 months	3 to 6 months	Over 6 months
Non-derivative financial liabilities
Non-interest-bearing liabilities	$ 3,150,820	$ 28,684	$ 6,107
Instruments with	6,697,809	-	-

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floating interest rate
Instruments with fixed interest rate
Lease liabilities
| 1,007,894 | 1,346,437 | 2,064,059 |
| --- | --- | --- |
Lease liabilities
| 23,581 | 25,303 | 523,299 |
| --- | --- | --- |
| $10,880,104 | $ 1,400,424 | $ 2,593,465 |

Further information for analysis of the maturity of lease liabilities is as follows:

	Less than 1 year		1 to 5 years
Lease liabilities	$ 89,487		$ 482,696
December 31, 2024
	Within 3 months		3 to 6 months
Non-derivative financial liabilities
Non-interest-bearing liabilities	$ 2,468,915	$ 10,723	$ 818
Instruments with floating interest rate	483,784	541,438	60,258
Instruments with fixed interest rate	892,486	-	-
Lease liabilities	8,878	8,867	46,940
	$ 3,854,063	$ 561,028	$ 108,016

Further information for analysis of the maturity of lease liabilities is as follows:

	Less than 1 year	1 to 5 years
Lease liabilities	$ 28,987	$ 35,698

(2) Table of liquidity and interest rate risks of derivative financial assets and liabilities

In terms of derivative instruments settled on a gross basis, the analysis of the liquidity of derivative financial instruments is prepared based on the total undiscounted cash inflows and outflows. Where the amount receivable or payable is not fixed, the disclosed amount is determined at an interest rate estimated according to the yield curve on the balance sheet date.

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December 31, 2025
	Within 3 months	4 to 6 months
Gross settlement
Forward foreign exchange contract
—inflow	$ 965,762	$ 938,909
—outflow	950,906	945,710
	$ 14,856	( $ 6,801 )
December 31, 2024
	Within 3 months	4 to 6 months
Gross settlement
Forward foreign exchange contract
—inflow	$ 601,733	$ -
—outflow	612,401	-
	( $ 10,668 )	$ -
(3) Financing limit
	December 31, 2025	December 31, 2024
Limit of credit loan
Disbursed amount	$ 3,282,649	$ 1,874,700
Undisbursed amount	5,871,071	3,275,300
	$ 9,153,720	$ 5,150,000
Limit of mortgaged and secured loans
Disbursed amount	$ 7,378,451	$ 1,461,312
Undisbursed amount	7,111,979	2,813,668
	$ 14,490,430	$ 4,274,980

(V) Offsetting of Financial Assets and Financial Liabilities

Some financial assets and financial liabilities of the group between China Construction Bank and PingAn Bank are eligible for mutual offsetting, so the net financial assets after the total financial liabilities are offset from the total financial assets are presented in the balance sheet.

The following table lists the above-mentioned quantitative information on financial assets and financial liabilities that are regulated by the above-mentioned mutual offset, enforceable net delivery agreement or similar

agreement:

December 31, 2025

Financial assets	Gross amounts of recognized financial assets	Gross amounts of recognized financial liabilities set off in the balance sheet	Net amounts of financial assets presented in the balance sheet
Financial assets measured at amortized cost	$ 1,611,316	$ 1,611,316	$ -
Financial liabilities	Gross amounts of recognized financial liabilities	Gross amounts of recognized financial assets set off in the balance sheet	Net amounts of financial liabilities presented in the balance sheet
Financial liabilities measured at amortized cost	$ 1,611,316	$ 1,611,316	$ -
December 31, 2024
Financial assets	Gross amounts of recognized financial assets	Gross amounts of recognized financial liabilities set off in the balance sheet	Net amounts of financial assets presented in the balance sheet
Financial assets measured at amortized cost	$ 1,361,312	$ 1,361,312	$ -
Financial liabilities	Gross amounts of recognized financial liabilities	Gross amounts of recognized financial assets set off in the balance sheet	Net amounts of financial liabilities presented in the balance sheet
Financial liabilities measured at amortized cost	$ 1,361,312	$ 1,361,312	$ -

XXXIV. Related party transactions

The following are material transactions between the consolidated company and related parties:

(I) Names of related parties and their relationship with the consolidated company

Name of related party

Relationship with the

consolidated company

Dongguan Chaofeng Laser Precision Machinery Associate Co., Ltd. (Dongguan Chaofeng)

(II) Purchase

Type of related party	2025	2024
Associate	$ 20,610	$ 15,633

In terms of the transaction price and payment period of the consolidated company's purchase from a related party, there is no comparable case of transaction with a non-related party. The payment and loan period for a related party is approximately 3 months, while the payment period for a regular customer is approximately 2–3 months.

(III) Payments payable to related parties

Account item	Type/Name of related party	December 31, 2025	December 31, 2024
Accounts payable - related parties	Associate	$ 18,069	$ 10,483

(IV) Remuneration for key management

	2025	2024
Short-term employee benefits	$ 62,881	$ 103,456
Post-employment benefits	616	578
Share-based payment	14,141	279
	$ 77,638	$ 104,313

The remuneration for directors and other key management is determined by the Remuneration Committee based on personal performance and market trends.

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XXXV. Pledged and mortgaged assets

The following assets have been provided to financial institutions as collateral for the forward foreign exchange guarantees and consolidated credit line of the consolidated company:

	December 31, 2024	December 31, 2023
Financial assets measured at amortized cost category	$ 213,037	$ 72,614

XXXVI. Material contingent liabilities and unrecognized contractual commitments

The following are the material commitments and contingencies of the consolidated company on the balance sheet date, other than those already described in other notes:

(I) ASCION, LLC dba REVERIE (hereinafter referred to as “ASCION”) initiated commercial arbitration proceedings against the subsidiary OPT in 2021 before the American Arbitration Association, claiming damages for alleged product defects and shipment delays. In the same year, OPT also filed arbitration claims against ASCION for breach of the transaction agreement. In addition, in 2023, OPT filed claims for damages against Xienci Leads Inc., Dah Sheng International Co., Ltd., and FSP Technology Inc.

On February 17, 2026, the arbitral tribunal issued its final award, ordering OPT to additionally pay ASCION, Xienci Leads Inc., and Dah Sheng International Co., Ltd. attorneys’ fees and other legal costs totaling USD 17,446 thousand, together with interest up to the date of actual payment. OPT has recognized a provision for litigation losses (including related interest accrued as of 2025) amounting to USD 46,574 thousand.

Furthermore, OPT has filed a petition with the United States District Court for the Eastern District of Michigan seeking to set aside the arbitral award on the grounds that the arbitrators exceeded their authority and violated due process, and that the Company did not participate in the arbitration proceedings, resulting in the relevant award being subject to annulment. As of the date of issuance of these consolidated financial statements, the petition is still under judicial review. Based on the assessment of legal counsel engaged by the Group, there is a reasonably high likelihood that the portion of the arbitral award referring to the Company may be set aside or amended. Management believes that this matter will not have a material adverse impact on the Group.

(II) As of December 31, 2025 and 2024, the consolidated company had import guarantees issued by banks on its behalf amounting to NT$3,650 thousand and NT$3,700 thousand, respectively

XXXVII. Significant events after the reporting period

In October 2025, the subsidiary DGFD Company experienced a fire incident, resulting

82 -

in damage to certain buildings, equipment, and inventories. The estimated loss amounted to NT$121,321 thousand, which was recognized under other gains and losses. The related insurance claims are still in process. Insurance compensation will be recognized only when it becomes virtually certain to be received.

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XXXVIII. Information of foreign currency assets and liabilities with significant effect

The following information is summarized and presented based on foreign currencies other than the functional currencies of the entities in the consolidated company. The disclosed exchange rate represents the rate at which each such foreign currency is translated to the functional currency. The following are foreign currency assets and liabilities with significant effect:

Unit: Each foreign currency/NTD thousand
December 31, 2025	Foreign currency	Exchange rate	Carrying amount
Foreign currency assets
Monetary item
USD	$ 69,377	31.43 (USD : NTD)	$ 2,486,027
USD	91,540	6.9762 (USD : RMB)	2,875,278
USD	72,780	26227 (USD : VND)	2,242,840
Non-monetary item
Associates accounted for using the equity method
USD	917	31.43 (USD : NTD)	28,819
Foreign currency liabilities
Monetary item
USD	134,763	31.43 (USD : NTD)	4,235,596
USD	25,142	6.9762 (USD : RMB)	790,021
USD	5,931	26227 (USD : VND)	182,759
December 31, 2024
---	---	---	---
Foreign currency assets	Foreign currency	Exchange rate	Carrying amount
Monetary item
USD	$ 87,330	32.785 (USD : NTD)	$ 2,863,139
USD	69,722	7.2916 (USD : RMB)	2,282,635
RMB	$ 87,330	4.478 (RMB : NTD)	$ 2,863,139
Non-monetary item
Associates accounted for using the equity method
USD	842	32.785 (USD : NTD)	27,608
Foreign currency liabilities
Monetary item
USD	$ 80,327	30.705 (USD : NTD)	$ 2,466,972
USD	7,564	7.0921 (USD : RMB)	232,131

For the net foreign exchange gains (losses), including both realized and unrealized amounts, recognized by the consolidated company in 2025 and 2024, please refer to Note 26. Due to the diversity of foreign currency transactions and the various functional

84 -

currencies of the Group entities, it is impracticable to disclose exchange gains and losses by each foreign currency that has a significant impact

XXXIX. Note disclosures

(I) Information of material transactions:
1. Funds loaned to others. (Table 1)
2. Endorsements and guarantees provided for others. (Table 2)
3. Information on marketable securities held at the end of the period (excluding investments in subsidiaries and associates). (Table 3)
4. Purchases from or sales to related parties amounting to NT$100 million or more, or reaching 20% or more of paid-in capital. (Table 4)
5. Receivables from related parties amounting to NT$100 million or more, or reaching 20% or more of paid-in capital. (Table 5)
6. Others: Intercompany relationships and significant intercompany transactions between the parent company and subsidiaries, and among subsidiaries, including related amounts. (Table 6)

(II) Information of investee companies (Table 6)
(III) Information of investments in Mainland China:
1. The names, scope of primary business and amounts of paid-in capital of the investee companies in Mainland China, the methods of investment, funds remitted inwardly and outwardly, shareholdings, profits/losses of current period and investment profits/losses recognized, the carrying amounts of investment at end of period, remitted investment profits/losses, and limits on the amount of investments in Mainland China. (Table 7)
2. The following material transactions with the investee companies in Mainland China directly or indirectly through a third area, and the prices, payment terms and unrealized profits/losses of such transactions:
(1) The amount and percentage of purchases, and the ending balance and percentage of the relevant payments payable. (Table 9)
(2) The amount and percentage of sales, and the ending balance and percentage of the relevant payments receivable. (Table 9)
(3) The amount of property transactions and the resulting amount of profits or losses. (None)
(4) The ending balance and purposes of note endorsements/guarantees

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or collateral provided. (Table 2)

(5) The maximum balance, ending balance, interest rate range and total current interest for financing of funds. (None)

(6) Other transactions with material effect on current profits or losses or on the financial conditions, such as the rendering or receiving of services. (None)

XL. Segment information

(I) Description of the operating segment

Information provided to the chief operating decision-maker for allocating resources and evaluating segment performance focuses on the operating management model of the managing body, with the primary functions of the operational headquarters, the departments for production and sales of medical devices and the department for server chassis as its basis of identification. The following are the reportable segments of the consolidated company:

Operational headquarters – Mainly HEC, where the primary functions are performed by the business, administrative, manufacturing and R&D departments.

Manufacturing – Mainly the subsidiaries of the consolidated company in Mainland China, including WCX, WSE, WSF, DWC, WJA and WCF, where the primary functions include production, manufacturing and R&D.

Channels – Mainly the subsidiaries of the domestic and foreign sales channels of the consolidated company, including FCC, WYT, JCC, UCC and KCC, where the primary functions include marketing and sales.

Department for medical devices – Mainly OPT and the subsidiaries of the consolidated company, where the primary functions include the manufacturing, sales and purchase of medical devices and equipment.

Department for server chassis – Mainly LFE and the subsidiaries of the consolidated company, where the primary functions include the manufacturing, sales and purchase of server chassis.

Voice Coil Segment – Primarily consists of AIP and its subsidiaries within the Group. Its principal activities are the manufacture and sale of voice coil products.

Other – Mainly other holding or trading companies of the consolidated company, including GVG, WII, GSG, HIT, GPH and GTH, where the primary functions include shareholdings in investee companies, order management and

86 -

finding management.

(II) Segment revenues and operating results

The following is an analysis of the revenues and operating results of the consolidated company by reportable segment:

	Operational headquarters	Manufacturing	Channels	Department for medical devices	Department for server chassis	Others	Adjustment and write-off	Amount after adjustment
2025
Segment revenue from customers other than the company	$ 6,673,905	$ 135,213	$ 525,581	$ 2,287,789	$ 362,628	$ 1,205,622	$ -	$ -
Segment revenue from other segments in the company	247,618	4,580,574	33,256	-	83,555	4,249,309	-	(9,194,292)
Total revenue	$ 6,921,525	$ 4,715,787	$ 558,817	$ 2,287,789	$ 446,183	$ 5,454,931	$ -	(9,194,292)
Segment profit/loss	$ 341,264	$ 154,579	$ 9,845	$ 402,596	(129,908)	$ 369,142	(12,823)	(118,894)
Interest income								95,864
Other incomes								112,967
Other profits and losses								(1,749,541)
Financial cost								(249,606)
Share of profits/losses of associates accounted for using the equity method								965
Pre-tax net profit								(753,630)
2024
Segment revenue from customers other than the company	$ 5,551,560	$ 108,861	$ 431,315	$ 273,934	$ 1,036,343	$ -	$ -	$ 7,402,013
Segment revenue from other segments in the company	147,804	3,820,549	9,530	203,241	3,451,155	-	(7,632,279)	-
Total revenue	$ 5,699,364	$ 3,929,410	$ 440,845	$ 477,175	$ 4,487,498	$ -	(7,632,279)	$ 7,402,013
Segment profit/loss	$ 175,369	$ 132,929	($ 16,002)	($ 165,976)	$ 342,904	($ 13,311)	$ 27,394	$ 483,307
Interest income								115,977
Other incomes								36,396
Other profits and losses								102,919
Financial cost								(51,557)
Share of profits/losses of associates accounted for using the equity method								3,262
Pre-tax net profit								$ 690,304

Segment profit means the profit earned by each segment. The consolidated company has not allocated non-operating revenues and expenses (including interest income and expense, profit on disposal of investments and exchange profit/loss) and income tax expense to the reportable segments. The measured amount is provided to the chief operating decision-maker for allocating resources to a segment and evaluating its performance.

The chief operating decision-maker of the consolidated company makes a decision based on the operating result of each segment and does not evaluate the information of classified assets and liabilities for the performance of different business activities. Therefore, only the operating results of the reportable segments are presented.

(III) Information by region

The consolidated company mainly operates in three regions – Asia, Europe and Americas.

The following is the information of the consolidated company's revenue from the operations of external customers, listed by the region of external customers,

and non-current assets, listed by the region where the consolidated company operates:

	Revenues from external customers		Non-current assets
	2025	2024	December 31, 2025	December 31, 2024
Asia	$ 4,836,864	$ 2,667,458	$ 2,127,799	$ 1,396,402
Americas	1,394,054	3,219,866	6,201	3,764
Europe	4,932,635	1,467,147	-	-
Others	25,185	47,542	2,330,498	-
	$11,188,738	$ 7,402,013	$ 4,464,498	$ 1,400,166

Non-current assets do not include investments accounted for using the equity method, goodwill and those classified as financial assets, deferred income tax assets and net defined benefit assets.

(IV) Information of major customers

The following are details of the consolidated company whose respective sales revenue accounts for no less than 10% of the net sales revenue in the statement of consolidated income:

	2025		2024
	Amount	%	Amount	%
Group A	$ 3,455,752	31	$ 2,605,670	35

Compucase Enterprise Co., Ltd. And Subsidiaries

Financing provided

For the Year Ended December 31, 2025

(All amounts are in NTD thousand unless otherwise specified)

Table 1

N o	Lending company	B o r r o w e r	T r a n s a c t i o n	A related party	Max. amount for the current period	Ending balance	Actual amount disbursed Note 4	Interest rate range (%)	Nature of funds loaned Note 5	Amount of business transactions	Reason for need of short-term financing	Amount of allowance	C o l l a t e r o		Limit of loan to individual borrower	Total limit of loans
													S	m
0	B. U. R	UCC	R o c d e n t - U S S A.	R	$ 16,605	$ -	$ -	5.12	(1)	$ -	Operational financing	$ -	-	$ -	$(Note 2)	$ 1,494,658
		UCC	"	"	16,605	-	-	5.12	(2)	-	Operational financing	-	-	-	996,438	996,438
		UCC	"	"	31,430	31,430	-	3.9	(2)	-	Operational financing	-	-	-	996,438	996,438
		OPT	"	"	99,615	-	-	5.27=6.238	(2)	-	planning for the group	-	-	-	996,438	996,438
		OPT	"	"	30,750	-	-	4.63=5.33	(2)	-	planning for the group	-	-	-	996,438	996,438
		GTI	"	"	1,075,320	-	-	2.9	(2)	-	planning for the group	-	-	-	996,438	996,438
		AIP	"	"	942,900	942,900	-	3.9	(2)	-	planning for the group	-	-	-	996,438	996,438
		TYHK	"	"	47,145	47,145	47,145	3.9	(2)	-	planning for the group	-	-	-	996,438	996,438
		WSE	"	"	228,650	-	-	-	(2)	-	planning for the group	-	-	-	1,010,010	1,010,010
		WSE	"	"	224,800	224,800	107,904	-	(2)	-	planning for the group	-	-	-	1,010,010	1,010,010
2	WSE	HEC	"	109,577	105,719	-	-	(2)	-	planning for the group	-	-	-	330,360	330,360
		HEC	"	99,615	-	-	-	(2)	-	planning for the group	-	-	-	1,010,010	1,010,010
		GTH	"	88,004	88,004	4,557	-	(2)	-	planning for the group	-	-	-	330,360	330,360
		OPT	"	157,150	157,150	146,935	4.17	(2)	-	planning for the group	-	Global Star (H.K.) Holdings Limited 尾喉	291,674	132,224	132,224
														(Note 3)	(Note 4)
3	WJA	WCF	"	137,190	-	-	-	(2)	-	planning for the group	-	-	-	40,302	40,302
		WSE	"	274,380	-	-	-	(2)	-	planning for the group	-	-	-	40,302	40,302
		LFE	HEC	"	90,000	-	-	1.8=2.117	(2)	-	planning for the group	-	-	-	961,038	961,038
														(Note 4)	(Note 4)
5	GPH	TYHK	"	267,155	267,155	-	3.9	(2)	-	-	-	-	812,151	812,151
6	DGPY	YNPY	"	188,580	188,580	58,007	-	(1)	362,919	Operational financing	-	-	-	342,919	1,877,142
		TYHK	"	64,432	64,432	11,512	-	(1)	68,366	Operational financing	-	-	-	68,366	1,877,142
														(Note 5)	(Note 5)
														230,990	230,990
7	AHPY	DGPY	"	77,151	77,151	-	-	(2)	-	planning for the group	-	-	-	1,307,408	4,025,196
														(Note 6)	(Note 6)
8	YNPY	TYHK	"	1,302,920	1,302,920	1,374,161	-	(1)	1,397,408	Operational financing	-	-	-	1,307,408	1,377,142
														(Note 5)	(Note 5)
9	TYHK	RSPY	"	471,450	471,450	229,874	-	(1)	720,498	Operational financing	-	-	-	720,498	5,188,238
		TYL	"	974,267	974,267	974,240	-	(2)	-	planning for the group	-	-	-	2,594,119	2,594,119
		RPY	"	2,366,993	2,366,993	2,366,933	-	(2)	-	planning for the group	-	-	-	2,594,119	2,594,119
														(Note 4)	(Note 4)
10	RPY	TYHK	"	24,358	24,358	24,358	-	(2)	-	planning for the group	-	-	-	416,550	416,550
		TYL	"	365,059	365,059	365,089	-	(2)	-	planning for the group	-	-	-	416,550	416,550
														(Note 4)	(Note 4)
														416,550	416,550

Note 1: In the numbering column, "0" represents the Company. The investors are numbered sequentially starting from "1" in the order of the respective companies.
Note 2: For companies having business transactions with the lender, the amount of each loan shall not exceed the amount of business transactions between the parties during the most recent fiscal year. The aggregate amount of loans shall not exceed $60\%$ of the lender's net worth. The amount of any individual loan to a company or business in need of short-term financing may not exceed $5\%$ of the net value of the lending company, and the total amount of loans may not exceed $10\%$ of the net value of the lending company.
Note 3: For companies or firms requiring short-term financing, the amount of each loan shall not exceed $40\%$ of the lender's net worth. The aggregate amount of loans shall not exceed $40\%$ of the lender's net worth.
Note 4: For the Company's parent company and foreign companies directly or indirectly holding $100\%$ of the voting shares through the parent company, where business transactions exist or short-term financing is required, the amount of each loan shall not exceed $100\%$ of the borrower's net worth, and the aggregate amount of loans shall not exceed $100\%$ of the borrower's net worth.

Note 5: For companies having business transactions with the lender, the amount of each loan shall not exceed the amount of business transactions between the parties during the most recent fiscal year. The aggregate amount of loans shall not exceed 200% of the lender's net worth.

Note 6: (1) Business transactions exist between the parties.
(2) The borrower has a need for short-term financing

Note 7: Eliminated upon consolidation in the preparation of the consolidated financial statements.

Note 8: The portion of the Company's aggregate loan balance exceeding the prescribed limit was addressed through a remediation plan submitted to the Audit Committee in October 2025.

90 -

Compucase Enterprise Co., Ltd. And Subsidiaries

Endorsements/guarantees provided

For the Year Ended December 31, 2025

(All amounts are in NTD thousand unless otherwise specified)

Table 2

No.	Name of company providing endorsement/guarantee	Endorsement/Guarantee recipient		Limit of endorsement/guarantee to a single company	Max. balance of endorsement/guarantee for the current period	Balance of endorsement/guarantee at end of the period	Actual amount disbursed	Amount of endorsement/guarantee secured by property	Cumulative amount of endorsements/guarantees as a share of the net value of the financial statements for the most recent period (%)	Max. amount of endorsement/guarantee	Endorsement/guarantee from the parent company to a subsidiary	Endorsement/guarantee from a subsidiary to the parent company	Endorsement/guarantee to Mainland China	Remarks
		Company name	Relationship (Note 3)
0	HEC	LFDG	(1)	$ 3,736,644 (Note 1)	$ 166,025	$ -	$ -	$ -	-	$ 4,982,192 (Note 2)	Y	N	Y	-
		FD	(1)	3,736,644 (Note 1)	91,460	-	-	-	-	4,982,192 (Note 2)	Y	N	Y	-
	GTH	(1)	3,736,644 (Note 1)	2,212,560	-	-	-	-	4,982,192 (Note 2)	Y	N	N	-	GTH
	TVHK	(1)	3,736,644 (Note 1)	3,143,000	3,143,000	-	-	126.17	4,982,192 (Note 2)	Y	N	N	-	TVHK
1	GTH	HEC	(2)	3,354,126 (Note 3)	1,054,800	-	-	-	-	4,472,168 (Note 4)	N	Y	N	-
2	LFE	LFDG	(2)	1,600,399 (Note 1)	458,382	454,079	4,451	-	18.44	1,969,722 (Note 2)	Y	N	Y	-
3	AHPY	TVHK	(2)	5,019,800 (Note 7)	3,771,600	3,771,600	3,457,300	-	1,502.69	5,019,800 (Note 7)	N	Y	N	-
4	DGPY	TVHK	(2)	9,385,710 (Note 8)	3,771,600	3,771,600	3,457,300	39,604	401.84	9,385,710 (Note 8)	N	Y	N	-
5	KSPY	TVHK	(2)	7,938,300 (Note 9)	3,771,600	3,771,600	3,457,300	-	7,126.71	7,938,300 (Note 9)	N	Y	N	-

Note 1: The limit of endorsements and guarantees provided to any single entity shall not exceed 150% of the Company's shareholders' equity.
Note 2: The aggregate limit for endorsements and guarantees shall not exceed 200% of the Company's shareholders' equity.
Note 3: The limit of endorsements and guarantees provided to any single entity shall not exceed 150% of the shareholders' equity of Global Hong Fu Co., Ltd.
Note 4: The aggregate limit for endorsements and guarantees shall not exceed 200% of the shareholders' equity of Global Hong Fu Co., Ltd.
Note 5: The limit of endorsements and guarantees provided to any single entity shall not exceed 65% of the net worth of Fulltech Co., Ltd. as reported in its most recent financial statements.
Note 6: The aggregate amount of endorsements and guarantees shall not exceed 80% of the net worth of Fulltech Co., Ltd. as reported in its most recent financial statements..
Note 7: Both the limit of endorsements and guarantees provided to any single entity and the aggregate limit for endorsements and guarantees shall not exceed 2,000% of the net worth of AHPY as reported in its most recent financial statements.
Note 8: Both the limit of endorsements and guarantees provided to any single entity and the aggregate limit for endorsements and guarantees shall not exceed 1,000% of the net worth of DGPY as reported in its most recent financial statements.
Note 9: Both the limit of endorsements and guarantees provided to any single entity and the aggregate limit for endorsements and guarantees shall not exceed 15,000% of the net worth of KSPY as reported in its most recent financial statements.
Note 10: The relationships between the guarantor and the guaranteed party are as follows:
(1) A company in which more than 50% of the voting shares are held, directly or indirectly, by the Company.
(2) A company that directly or indirectly holds more than 50% of the voting shares of the Company.

Compucase Enterprise Co., Ltd. And Subsidiaries

Securities held at end of the period

For the Year Ended December 31, 2025

(All amounts are in NTD thousand unless otherwise specified)

Table 3

Holding company	Type and name of securities	Relationship with the securities issuer	Account title	End of the period
				Number of shares	Carrying amount	Shareholding (%)	plan assets
GSG	Shares
Unity Industrial Co., Ltd.	None	Financial assets measured at fair value through other comprehensive income – non-current	9,000,000	$ -	13.79	$ -
GTH	Convertible Bonds
AIP	Fellow subsidiary	Financial assets at fair value through profit or loss – current	-	$3,411,254	-	$3,411,254	Note

92 -

Compucase Enterprise Co., Ltd. And Subsidiaries

Amounts of purchase/sales transactions from/to related parties equaling or exceeding NTD100 million or 20% of the paid-up capital

For the Year Ended December 31, 2025

(All amounts are in NTD thousand unless otherwise specified)

Table 4

Purchasing (Selling/company	Name of counterparty	Relationship	Transaction details				Difference of the transaction terms with those of ordinary transactions and reason for such difference		Notes or accounts receivable (payable)		Remarks
			Purchase (Sale)	Amount	Share of total purchase (sale) (%)	Loan period	Unit price	Loan period	Balance	Share of total notes or accounts receivable (payable) (%)
HEC	JCC	Subsidiary	(Sales)	($ 175,201)	(3)	Payment is received 3 months after settlement for each month and depending on the overall funding condition.	No comparable transaction with any non-related party	Mutually agreed	$ 46,497	4	-
LFDG	HEC	Parent company	(Sales)	(1,070,405)	(22)	Payment is received 3 months after settlement for each month and depending on the overall funding condition.	No comparable transaction with any non-related party	Mutually agreed	461,512	18	-
	WSE	Brother corporation	(Sales)	(2,932,714)	(58)	Payment is received 3 months after settlement for each month and depending on the overall funding condition.	No comparable transaction with any non-related party	Mutually agreed	1,481,090	57	-
	WYT	Brother corporation	(Sales)	(177,616)	(4)	Payment is received 3 months after settlement for each month and depending on the overall funding condition.	No comparable transaction with any non-related party	Mutually agreed	63,937	2	-
	LFE	Parent company	(Sales)	(702,582)	(14)	Payment is received 3 months after settlement for each month and depending on the overall funding condition.	No comparable transaction with any non-related party	Mutually agreed	365,584	15	-
WSE	HEC	Parent company	(Sales)	(4,166,938)	(98)	Payment is received 3 months after settlement for each month and depending on the overall funding condition.	No comparable transaction with any non-related party	Mutually agreed	1,511,635	96	-
WCF	LFDG	Brother corporation	(Sales)	(308,461)	(46)	Payment is received 3 months after settlement for each month and depending on the overall funding condition.	No comparable transaction with any non-related party	Mutually agreed	174,786	100	-
FD	OPT	Parent company	(Sales)	(279,537)	(77)	Payment is received 3 months after settlement for each month and depending on the overall funding condition.	No comparable transaction with any non-related party	Mutually agreed	140,415	87	-
TVHK	KSPY	Brother corporation	(Sales)	(404,357)	(72)	Payment is received 6 months after settlement for each month and depending on the overall funding condition.	No comparable transaction with any non-related party	Mutually agreed	637,473	52	-
TVHK	DGPY	Brother corporation	(Sales)	(155,253)	(28)	Payment is received 6 months after settlement for each month and depending on the overall funding condition.	No comparable transaction with any non-related party	Mutually agreed	27,469	2	-
VNPY	TVHK	Brother corporation	(Sales)	(743,272)	(100)	Payment is received 6 months after settlement for each month and depending on the overall funding condition.	No comparable transaction with any non-related party	Mutually agreed	2,122,353	74	-
DGPY	VNPY	Brother corporation	(Sales)	(217,450)	(64)	Payment is received 7 months after settlement for each month and depending on the overall funding condition.	No comparable transaction with any non-related party	Mutually agreed	177,361	27	-
AHPY	KSPY	Brother corporation	(Sales)	(195,004)	(100)	Payment is received 8 months after settlement for each month and depending on the overall funding condition.	No comparable transaction with any non-related party	Mutually agreed	227,465	52	-

Note: Eliminated upon consolidation in the preparation of the consolidated financial statements.

Compucase Enterprise Co., Ltd. And Subsidiaries

Payments receivable from related parties equaling or exceeding NTD100 million or
20%
of the paid-up capital

For the Year Ended December 31, 2025

(All amounts are in NTD thousand unless otherwise specified)

Table 5

Company accounted for from which payments are receivable	Counterparty	Relationship	Balance of payment receivable from the related party (NOTE9)	Turnover	Overdue payment receivable from the related party		Subsequently recovered amount of payments receivable from the related party	Amount of allowance set aside for bad debts
					Amount	Treatment
LFDG	HEC	Parent company	$ 466,876
(Note 1)	2.14	$ -	—	$ 208,619	$ -
	LFE	Parent company	366,426
(Note 2)	2.32	-	—	116,950	-
	WSE	Brother corporation	1,481,090	2.43	-	—	776,013	-
WSE	HEC	Parent company	1,512,060
(Note 3)	3.05	-	—	693,272	-
WCF	LFDG	Brother corporation	174,786	1.59	-	—	90,165	-
WCX	WSE	Brother corporation	107,904
(Note 8)	Loans to others	-	—	-	-
FD	OPT	Parent company	140,603
(Note 4)	1.83	-	—	23,067	-
WII	OPT	Parent company	146,935
(Note 8)	Loans to others	-	—	-	-
KPY	TVL	Parent company	365,009
(Note 8)	Loans to others	-	—	350,059	-
TVHK	TVL	Parent company	974,240
(Note 8)	Loans to others	-	—	-	-
TVHK	KPY	Parent company	2,366,933
(Note 8)	Loans to others	-	—	-	-
DGPY	VNPY	Brother corporation	177,361
(Note 5)	6.81	-	—	165,065	-
AHPY	KSPY	Subsidiary	227,465	3.43	-	—	104,148	-
VNPY	TVHK	Parent company	2,122,353
(Note 6)	3.66	-	—	301,728	-
TVHK	KSPY	Subsidiary	637,473
(Note 7)	3.76	-	—	168,238	-

Note 1: Includes accounts receivable of NT$461,512 thousand and other receivables of NT$5,364 thousand. The calculation of turnover ratio excludes other receivables..
Note 2: Includes accounts receivable of NT$365,584 thousand and other receivables of NT$842 thousand. The calculation of turnover ratio excludes other receivables..
Note 3: Includes accounts receivable of NT$1,511,635 thousand and other receivables of NT$425 thousand. The calculation of turnover ratio excludes other receivables.
Note 4: Includes accounts receivable of NT$140,415 thousand and other receivables of NT$188 thousand. The calculation of turnover ratio excludes other receivables.
Note 5: Includes loans to others of NT$58,007 thousand and accounts receivable of NT$119,354 thousand. The calculation of turnover ratio excludes loans to others
Note 6: Includes loans to others of NT$1,376,161 thousand and accounts receivable of NT$746,192 thousand. The calculation of turnover ratio excludes loans to others
Note 7: Includes loans to others of NT$229,874 thousand and accounts receivable of NT$407,599 thousand. The calculation of turnover ratio excludes loans to others
Note 8: Represents loans to others; therefore, turnover ratio is not applicable.
Note 9: Eliminated in consolidation.

Compucase Enterprise Co., Ltd. And Subsidiaries

Information of investee companies, their locations, etc., and other relevant information

For the Year Ended December 31, 2025

(All amounts are in NTD thousand unless otherwise specified)

(A foreign currency is in dollar)

Table 6

Name of investor company	Name of investee company	Location	Scope of primary business	Initial amount of investment	Held at end of the period	Profit (Loss) of investee company in the current period	Profit (Loss) on investments recognized in the current period	Remarks
End of the current period	End of the previous period	Number of shares	Percentage (%)	Carrying amount
HEC	WII	BVI	Reinvestment and international trade	$ 132,094	$ 24,840	22,500	100	$ 330,560
GSG	BVI	Reinvestment and international trade	(USD 4,500,000)	(USD 900,000)	20,000	100	803,438	15,767
AIP	Cayman Islands	Investment Business	(USD 6,800,000)	(USD 6,800,000)	1,865,380	100	1,457,516	225,863
GTH	Hong Kong	Investee Enterprise	(USD 1,072,541)	-	36,000,000	80.99	2,099,926	(33,598)
FCC	Taiwan	Sales of Computer Components	(USD 36,000,000)	1,800	1,800	180,000	60	8,067
UCC	California, U.S.	Sales of Computer Components	(USD 50,416)	(USD 50,416)	50,416	14,150	100	21,318
KCC	South Korea	Sales of Computer Components	(USD 1,567,075)	(USD 1,567,075)	13,444	748,800	100	147
JCC	Japan	Sales of Computer Components	(USD 408,000)	(USD 408,000)	13,949	200	100	68,739
OPT	Taiwan	Manufacturing and sales of medical devices and equipment	(JPY 39,609,400)	(JPY 39,609,400)	19,229,750	59.49	(1,077,872)	(1,612,497)
LFE	Taiwan	Sales of Computer Components	933,893	933,893	74,755,773	50.62	1,246,312	190,141
WII	GTH	Hong Kong	Investee Enterprise	(USD 264,410)	(USD 157,156)	8,450,000	19.01	136,158
GSG	GTF	Hong Kong	Investee Enterprise	(USD 4,850,000)	(USD 382,493)	12,100,000	100	812,151
LFE	Axxion	Texas, U.S.	Sales of Computer Components	(USD 12,100,000)	(USD 12,100,000)	354	100	34,264
Axxion Mexico.	Mexico	Sales of Computer Components	(USD 43,542)	(USD 1,078,206)	43,342	99,000	99	2,043
L.F.KY	Cayman Islands	Investment Business	(USD 99,000)	(USD 99,000)	1,172,785	37,030,000	100	2,367,817
Super Laser Precision Machinery Ltd.	Samoa	Investment Business	(USD 37,030,000)	(USD 36,270,000)	43,513	1,260,000	47.64	28,819
OPT	Taiwan	Manufacturing and sales of medical devices and equipment	(USD 1,260,000)	(USD 1,260,000)	187,804	11,336,500	35.07	-
L.F.KY	L.F.HK	Hong Kong	Sales of Computer Components	(USD 1,146,185)	(USD 1,116,405)	296,049,087	100	2,370,093
OPT	Global Star	Hong Kong	Investee Enterprise	(USD 37,946,466)	(USD 36,946,466)	6,700,000	100	291,674
Global Star	Harmonic Star	Samoa	Investment Business	(USD 200,349)	(USD 200,349)	6,700,000	100	291,674
AIP	TVL	Cayman Islands	Investment Business	(USD 6,700,000)	(USD 6,700,000)	650,001	100	1,551,438
TVL	KPY	Cayman Islands	Investment Business	(USD 198)	(USD 198)	-	-	-
KPY	TVHK	Hong Kong	General Investment and International Trading Business	(USD 304,450)	(USD 304,450)	-	50,000	100
KPY	U-SONICS.	Malaysia	Speaker Cone and Speaker Suspension Manufacturing	(HK 10,000+ USD 9,998,711)	(HK 10,000+ USD 9,998,711)	-	1,010,000	100
TVHK	VNPY	Vietnam	Speaker Cone and Speaker Suspension Manufacturing	(USD 8,04,450)	(USD 8,04,450)	-	6,000,000	100

Note 1: For information related to the investee companies in Mainland China, see Table 7.

Note 2: Only list the profit or loss amounts recognized by this company from direct investments in its subsidiaries; other items may be exempted from being filled out.

Note 3: The difference arises from an investment loss of NT$247,476 thousand recognized by the Company for OPT, which is accounted for as a subsidiary due to the Company's interest held through LFE..

96 -

Compucase Enterprise Co., Ltd. And Subsidiaries

Information of investments in Mainland China

For the Year Ended December 31, 2025

(All amounts are in NTD thousand unless otherwise specified)

(A foreign currency is in dollar)

Table 7

Name of investee company in Mainland China	Scope of primary business	Paid-in capital (Note 3)	Form of investment (Note 1)	Cumulative amount of investments remitted from Taiwan at beginning of the current period (Note 3)	Amount of investments remitted outward or recovered in the current period		Cumulative amount of investments remitted from Taiwan at end of the current period (Note 4)	Profit (Loss) of investee company in the current period	HEC's shareholding in direct or indirect investments (%)	Profit (Loss) on investments recognized in the current period	Carrying amount of investments at end of the period	Profit on investments remitted inward as of end of the current period
					Remitted outward	Recovered
WSE	Production of power supplies and computer parts and accessories	$ 119,434 (USD 3,800,000) (Note 6)	(2) GPH	$ 56,574 (USD 1,800,000)	$ -	$ -	$ 56,574 (USD 1,800,000)	$ 29,265	100	$ 29,265 (Note 2)	$ 366,122	$ -
WSF	Production of power supplies and computer parts and accessories	47,145 (USD 1,500,000) (Note 9)	(2) GPH	-	-	-	-	4,362	100	4,362 (Note 2)	69,327	69,079
WCX	Production of computer parts and accessories and plastic products, and cutting and processing of iron materials	69,146 (USD 2,200,000) (Note 5)	(2) GTH	28,287 (USD 900,000)	-	-	28,287 (USD 900,000)	77,288	100	77,288 (Note 2)	1,010,010	301,666
WYT	International trade, re-export trade, and trade and trade agency between businesses in bonded areas	20,430 (USD 650,000) (Note 7)	(2) GTH	-	-	-	-	4,703	100	4,703 (Note 2)	37,420	38,713
DWC	Production of power supplies and computer parts and accessories	56,574 (USD 1,800,000) (Note 10)	(2) GPH	-	-	-	-	6,187	100	6,187 (Note 2)	63,052	47,478
WJA	Production of power supplies and computer parts and accessories	314,300 (USD 10,000,000) (Note 11)	(2) GPH	157,150 (USD 5,000,000)	-	-	157,150 (USD 5,000,000)	(3,001)	100	(3,001) (Note 2)	40,502	116,409
WCF	Production of power supplies and computer parts and accessories	257,049 (RMB 57,172,800) (Note 14)	(3) WCX (2) GTH	-	-	-	-	43,006	100	43,006 (Note 2)	303,976	12,449
Taikang Precision (Zhongshan) Limited Company	Production of chips, memory modules and the precision connectors of expansion cards used exclusively by the information and communication industries, precision structures for special purposes, and the dies of the aforementioned products	157,150 (USD 5,000,000) (Note 8)	(2) WII	-	-	-	-	-	-	-	-	-
LFDG	Manufacturing, import and export of electronics, optoelectronic products, precision dies and precision plastic injectors	1,558,173 (USD 49,575,978) (Note 12)	(2) LFHK	1,120,353 (USD 35,645,978)	-	-	1,120,353 (USD 35,645,978)	195,601	60.56	118,742 (Note 2)	1,779,587	-
Dongguan Chaofeng Laser Precision Machinery Co., Ltd.	Production of computer-aided manufacturing and application systems, tools and dies	88,004 (USD 2,800,000) (Note 12)	(2) Super Laser Precision Machinery Ltd.	39,288 (USD 1,250,000)	-	-	39,288 (USD 1,250,000)	3,338	24.12	805 (Note 2)	17,338	-
FD	Manufacturing and sales of medical devices and equipment	251,440 (USD 8,000,000) (Note 13)	(2) Harmonic Star	210,581 (USD 6,700,000)	-	-	210,581 (USD 6,700,000)	(20,315)	77.24	(15,691) (Note 2)	223,402	-
DGPY	Voice Coil and Diaphragm Manufacturing	54,165 (CNY 12,682,037) (Note 15)	(2) TVHK	-	436,540 (USD 14,338,657)	-	436,540 (USD 14,338,657)	155,867	100	86,795 (Note 2)	938,571	-
GZPY	Wholesale Trading Business	1,798 (CNY 400,000) (Note 15)	(4) DGPY	-	-	-	-	63	100	428 (Note 2)	1,867	-
KSPY	Voice Coil and Diaphragm Manufacturing	16,657 (CNY 3,900,000) (Note 15)	(4) DGPY	-	-	-	-	26,981	100	16,974 (Note 2)	52,922	-
GXPY	Voice Coil and Diaphragm Manufacturing	8,561 (CNY 2,000,000) (Note 15)	(4) DGPY	-	-	-	-	8,721	100	5,340 (Note 2)	12,962	-

97 -

98 -

| AHPY | Voice Coil and Diaphragm Manufacturing | 194,343
(CNY 45,400,799)
(Note 15) | (2) TVHK | - | 188,227
(USD 6,182,541) | - | 188,227
(USD 6,182,541) | 39,031 | 100 | 27,061
(Note 2) | 250,990 | - |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Kochi Limited | Manufacturing of Brocade Yarn | 26,822
(CNY 6,265,865)
(Note 15) | (2) TVHK | - | 13,892
(USD 456,307) | - | 13,892
(USD 456,307) | 2,333 | 100 | (477)
(Note 2) | 24,856 | - |
| Company name | Cumulative amount of investments remitted from Taiwan to Mainland China at end of the current period | Amount of investments approved by the Investment Commission, MOEA | Limit on the amount of investments in Mainland China required by the Investment Commission, MOEA (Note 4) |
| --- | --- | --- | --- |
| HEC | $ 901,334 (Note 3)
(USD 28,677,505) | $ 1,116,567 (Note 3)
(USD 35,525,505) | $ 2,052,161 |
| OPT | 210,581 (Note 3)
(USD 6,700,000) | 210,581 (Note 3)
(USD 6,700,000) | - |

Note 1: It is sufficient to indicate only the number of one of the following three forms of investment:

(1) Direct investment in Mainland China.
(2) Indirect investment in Mainland China through any company in a third area (please indicate the investor company in the third area).
(3) Any other form (direct investment by WCX).
(4) Any other form (direct investment by WCX).

Note 2: Investment income is recognized based on financial statements audited by certified public accountants in Taiwan.

Note 3: Related amounts are translated using exchange rates of NT$31.43 per USD and NT$4.496 per RMB as of the balance sheet date..

Note 4: The limit on the amount of direct investment in Mainland China is calculated as follows:

HEC: 3,420,268×60%=2,052,161

OPT: 0×60%=0

Note 5: The amount includes accumulated earnings capitalized and invested by Wei Chang Xing Electronics and Wei Xun Computer (Shenzhen) Co., Ltd. (merged into Wei Chang Xing Electronics on September 1, 2009, and approved by the Investment Commission on April 6, 2010), as well as self-owned funds of Wei Xun International, totaling USD 10,200,000. In 2021, Wei Chang Xing Electronics reduced capital and remitted USD 8,000,000, of which USD 3,000,000 has been repatriated to Taiwan and reported to the Investment Commission.

Note 6: Wei Shuo Electronics was reinvested by the Group's overseas subsidiary Dasheng Group. In 2008, Wei Shuo Electronics capitalized retained earnings of USD 2,000,000.

Note 7: WYT is an investee company with the own funds of GVG, a foreign subsidiary of HEC. As a result of adjustment to the organizational structure of its group, GVG sold the shares of WYT held by it to GTH.

Note 8: Taikang Precision (Zhongshan) Limited Company is an investee company with the own funds of WII, a foreign subsidiary of HEC, via Super Elite Ltd., a third-area company. On April 10, 2010, WII sold all of the shares it held, and the sale was approved for reference by the Investment Commission on June 28, 2010. Since its proceeds have yet to be remitted to Taiwan, there has been no decrease in the amount of investment approved by the Investment Commission.

Note 9: WSF is an indirect investee company with the own funds of GSG, a foreign subsidiary of HEC.

Note 10: DWC is a re-investment by GSG, an overseas subsidiary of HEC, through GPH using its own funds.

Note 11: WJA is an investee company directly through GPH with the distributed earnings of USD5,000,000 approved by the board of directors of WSE, and is also an investee company with the own funds of GSG amounting to USD5,000,000. In June 2023, WJA canceled a resolution made in 2022 for a capital reduction of USD5,000,000. The cancellation of capital reduction change has been completed.

Note 12: It is held by LFE. The cumulative amount of investments remitted from Taiwan to Mainland China at end of the current period is NTD1,209,635 thousand (USD36,895,978), and the amount of investments approved by the Investment Commission is NTD1,669,609 thousand (USD50,926,000). LFE is not subject to any maximum limit on investments in Mainland China since it has acquired a certificate of the scope of business of its operational headquarters.

Note 13: It is held by OPT. Established in June 2017 with an investment of USD 4,000,000 through Harmonic Star, and further capital injections of USD 700,000 in March 2021 and USD 2,000,000 in June 2020 were made through Harmonic Star. Both amounts have been submitted to the Investment Commission for approval for reference.

Note 14: WCF is an investee company, established with CNY 50,000,000 of its own funds by WCX, a subsidiary of HEC in Mainland China. In November 2023, GTH further injected CNY 7,172,800 of its own funds as additional capital.

Note 15: Represents investments acquired through the acquisition of AIP Company in July 2025. Through TVHK, investments were made in Dongguan Poyin (USD 14,338,657), Anhui Poyin (USD 6,182,541), and Dongguan Kairui (USD 456,307), all of which have been approved by the Investment Commission.

Note 16: Dividends repatriated in 2025 from Wei Chang Feng Electronics, Wei Chang Xing Electronics, Wei Yu International, Wei Sheng Feng Technology, Wei Qiao Electronics, and An Yuan Wei Jia amounted to RMB 23,000 thousand, RMB 70,114 thousand, RMB 9,000 thousand, RMB 16,000 thousand, RMB 11,000 thousand, and RMB 27,296 thousand, respectively

99 -

Compucase Enterprise Co., Ltd. And Subsidiaries

The business relationship and important transactions between the parent company and its subsidiaries, and between subsidiaries

For the Year Ended December 31, 2024

(All amounts are in NTD thousand unless otherwise specified)

Table 8

No (Note 1)	Name of transactor	Counterparty	Relationship with the transactor (Note 2)	Transaction details
				Title	Amount	Transaction terms	Share of consolidated total revenue or total assets (%)
0	HEC	JCC	1	Operating revenue	$ 175,201	Through price negotiation	2
	HEC	JCC	1	Accounts receivable - related parties	46,497	Payment terms: 2 months from month-end	-
	HEC	UCC	1	Operating revenue	23,879	Through price negotiation	-
	HEC	FCC	1	Operating revenue	34,549	Through price negotiation	-
	HEC	FCC	1	Accounts receivable - related parties	12,517	Payment 60 days after shipment	-
	HEC	LFE	1	Dispatch income	14,389	-	-
	HEC	OPT	1	Operating revenue	10,449	Through price negotiation	-
	HEC	TYHK	1	Other receivables - related parties	48,285	-	-
3	GTH	WYI	1	Other receivables - related parties	10,644	-	-
4	WYI	HEC	2	Operating revenue	10,435	Through price negotiation	-
5	WCF	LFDG	3	Operating revenue	61,436	Through price negotiation	1
	WCF	LFDG	3	Accounts receivable - related parties	23,466	Payment is received 3 months after settlement for each month	-
6	DWC	LFDG	3	Operating revenue	71,218	Through price negotiation	1
	DWC	LFDG	3	Accounts receivable - related parties	37,373	Payment is received 3 months after settlement for each month	-
8	WII	OPT	3	Other receivables - related parties	146,935	-	1
9	WSE	HEC	2	Operating revenue	4,166,938	Through price negotiation	37
	WSE	HEC	2	Accounts receivable - related parties	1,511,635	Payment is received 3 months after settlement for each month	7
10	WCX	WSE	3	Other receivables - related parties	107,904	-	1
11	WCF	LFDG	3	Operating revenue	308,461	Through price negotiation	3
	WCF	LFDG	3	Accounts receivable - related parties	174,786	Payment is received 3 months after settlement for each month	1
12	LFDG	HEC	2	Operating revenue	1,070,405	Through price negotiation	10
	LFDG	HEC	2	Accounts receivable - related parties	461,512	Payment is received 3 months after settlement for each month	2
	LFDG	LFE	2	Operating revenue	702,582	Through price negotiation	6
	LFDG	LFE	2	Accounts receivable - related parties	365,584	Payment is received 3 months after settlement for each month	2
	LFDG	WSE	3	Operating revenue	2,932,714	Through price negotiation	26
	LFDG	WSE	3	Accounts receivable - related parties	1,481,090	Payment is received 3 months after settlement for each month	7
	LFDG	WYT	3	Operating revenue	177,616	Through price negotiation	2
	LFDG	WYT	3	Accounts receivable - related parties	63,937	Payment is received 3 months after settlement for each month	-
	LFDG	FD	3	Operating revenue	15,347	Through price negotiation	-
	LFDG	FD	3	Service revenue	11,710	Through price negotiation	-
	LFDG	OPT	3	Operating revenue	29,067	Through price negotiation	-
	LFDG	OPT	3	Accounts receivable - related parties	29,622	Payment is received 3 months after settlement for each month	-

(Continued to next page)

(Continued from previous page)

No (Note 1)	Name of transactor	Counterparty	Relationship with the transactor (Note 2)	Transaction details
				Title	Amount	Transaction terms	Share of consolidated total revenue or total assets (%)
13	LFE	Axxion	1	Commission expense	$ 37,437	Through price negotiation	-
	LFE	Axxion	1	Other payables - related parties	18,858	Payment is received 1 months after settlement for each month	-
14	FD	OPT	2	Operating revenue	279,537	Through price negotiation	2
	FD	OPT	2	Accounts receivable - related parties	140,415	Payment is received 3 months after settlement for each month	1
	FD	LFDG	3	Operating revenue	27,340	Through price negotiation	-
	FD	LFDG	3	Accounts receivable - related parties	13,206	Payment is received 3 months after settlement for each month	-
	FD	LFDG	3	Service revenue	13,896	Through price negotiation	-
15	OPT	HEC	2	Operating revenue	30,834	Through price negotiation	-
16	KPY	TVL	1	Other receivables - related parties	365,009	Payment is received 6 months after settlement for each month	3
16	KPY	TVHK	2	Other receivables - related parties	24,358	Payment is received 6 months after settlement for each month	-
17	TVHK	TVL	2	Other receivables - related parties	974,240	Payment is received 6 months after settlement for each month	9
17	TVHK	KPY	2	Other receivables - related parties	2,366,933	Payment is received 6 months after settlement for each month	21
17	TVHK	U-Sanics	1	Other receivables - related parties	15,227	Payment is received 6 months after settlement for each month	-
17	TVHK	DGPY	1	Operating revenue	155,253	Payment is received 6 months after settlement for each month	1
17	TVHK	DGPY	1	Accounts receivable - related parties	27,469	Payment is received 6 months after settlement for each month	-
17	TVHK	KSPY	1	Operating revenue	404,357	Payment is received 6 months after settlement for each month	4
17	TVHK	KSPY	1	Accounts receivable - related parties	637,473	Payment is received 6 months after settlement for each month	6
18	TVL	TVHK	1	Other receivables - related parties	33,456	Payment is received 6 months after settlement for each month	-
19	DGPY	TVHK	2	Operating revenue	34,234	Payment is received 6 months after settlement for each month	-
19	DGPY	TVHK	2	Accounts receivable - related parties	39,546	Payment is received 6 months after settlement for each month	-
19	DGPY	VNPY	3	Operating revenue	217,450	Payment is received 6 months after settlement for each month	2
19	DGPY	VNPY	3	Accounts receivable - related parties	177,361	Payment is received 6 months after settlement for each month	2
19	DGPY	KSPY	1	Operating revenue	15,540	Payment is received 6 months after settlement for each month	-
19	DGPY	KSPY	1	Accounts receivable - related parties	10,693	Payment is received 6 months after settlement for each month	-
19	DGPY	GXPY	1	Operating revenue	32,179	Payment is received 6 months after settlement for each month	-
19	DGPY	GXPY	1	Accounts receivable - related parties	27,516	Payment is received 6 months after settlement for each month	-
19	DGPY	GZPY	1	Operating revenue	42,872	Payment is received 6 months after settlement for each month	-
19	DGPY	GZPY	1	Accounts receivable - related parties	50,007	Payment is received 6 months after settlement for each month	-
20	VNPY	TVHK	2	Operating revenue	743,272	Payment is received 6 months after settlement for each month	7
20	VNPY	TVHK	2	Accounts receivable - related parties	2,122,353	Payment is received 6 months after settlement for each month	19
21	GXPY	DGPY	2	Operating revenue	50,474	Payment is received 6 months after settlement for each month	-
21	GXPY	DGPY	2	Accounts receivable - related parties	21,198	Payment is received 6 months after settlement for each month	-
22	AHPY	DGPY	3	Accounts receivable - related parties	10,052	Payment is received 6 months after settlement for each month	-
22	AHPY	KSPY	3	Operating revenue	195,004	Payment is received 6 months after settlement for each month	2
22	AHPY	KSPY	3	Accounts receivable - related parties	227,465	Payment is received 6 months after settlement for each month	2
24	Kochi Tech Limited	DGPY	3	Operating revenue	12,358	Payment is received 6 months after settlement for each month	-

Note 1: There are three types of relationship with the transactor, indicated as follows:
1. The parent company to a subsidiary.
2. A subsidiary to the parent company.
3. A subsidiary to another subsidiary.
Note 2: The amount was written off during preparation of the consolidated financial statements.

Compucase Enterprise Co., Ltd. And Subsidiaries

The material transactions with the investee companies in Mainland China directly or indirectly through a third area, and the prices, payment terms and unrealized profits/losses of such transactions

For the Year Ended December 31, 2024

(All amounts are in NTD thousand unless otherwise specified)

Table 9

Purchasing (Selling) company	Counterparty	Relationship	Transaction details				Difference of the transaction amount with that of an ordinary transaction, and reason for such difference	Notes or accounts receivable (payable)		Unrealized profit (loss) (Note)
			Purchase (Sale)	Amount (Note)	Share of total purchase (sale) (%)	Share of total notes or accounts Loan period			Balance (Note)
							Unit price	Loan period
HEC	WSE	Subsidiary	Purchase	$ 4,166,938	70	Payment is made 3 months after settlement for each month and depending on the overall funding condition.	No comparable transaction	Same	($ 1,511,635)	(68)	$ 10,919
	LFDG	Subsidiary	Purchase	1,070,405	18	Payment is made 3 months after settlement for each month and depending on the overall funding condition.	No comparable transaction	Same	(461,512)	(21)	1,492
	WYT	Subsidiary	Purchase	10,435	-	Payment is made 3 months after settlement for each month and depending on the overall funding condition.	No comparable transaction	Same	(14)	-	1
LFDG	OPT	Sister company	(Sales)	(29,067)	(1)	Payment is made 3 months after settlement for each month and depending on the overall funding condition.	No comparable transaction	Same	29,622	1	-
LFE	LFDG	Subsidiary	Purchase	702,582	82	Payment is made 3 months after settlement for each month and depending on the overall funding condition.	No comparable transaction	Same	(365,584)	(92)	3,189
OPT	FD	Subsidiary	Purchase	279,537	97	Payment is made 3 months after settlement for each month and depending on the overall funding condition.	No comparable transaction	Same	(140,415)	(78)	4
TVHK	KSPY	Subsidiary	(Sales)	(404,357)	(72)	Payment is made 6 months after settlement for each month and depending on the overall funding condition.	No comparable transaction	Same	637,643	16	-
	DGPY	Subsidiary	(Sales)	(155,253)	(28)	Payment is made 6 months after settlement for each month and depending on the overall funding condition.	No comparable transaction	Same	27,469	1	-
VNPY	KSPY	Subsidiary	(Sales)	(4,734)	(1)	Payment is made 6 months after settlement for each month and depending on the overall funding condition.	No comparable transaction	Same	4,816	1	-
	DGPY	Sister company	(Sales)	(3,399)	-	Payment is made 6 months after settlement for each month and depending on the overall funding condition.	No comparable transaction	Same	1,628	-	-
	DGPY	Sister company	Purchase	217,127	28	Payment is made 6 months after settlement for each month and depending on the overall funding condition.	No comparable transaction	Same	(177,361)	23	-

Note: Written off during preparation of the consolidated financial report.

Compucase Enterprise Co., Ltd. And Subsidiaries

Statement of changes in property, plant and equipment

For the Years Ended December 31, 2024 and 2023

(All amounts are in NTD thousand)

Table 10

	Land	Premises and buildings	Machine/ Equipment	Transport equipment	Office equipment	Other equipment	Property under construction	Total
Cost
Balance on January 1, 2025	$ 146,241	$ 1,205,967	$ 1,438,040	$ 19,280	$ 67,805	$ 1,569,845	$ 11,814	$ 4,458,992
Effects of acquisition of a subsidiary	-	323,894	692,964	9,669	26,533	82,423	5,925	1,141,408
Increase	-	1,904	53,038	3,929	2,922	94,951	37,012	193,756
Disposal	-	-	( 33,334 )	( 171 )	( 1,343 )	( 51,216 )	-	( 86,064 )
Reclassification	-	21,659	13,542	38	( 1,296 )	1,380	( 31,133 )	4,190
Net exchange differences	-	27,660	58,923	4,990	6,155	6,292	441	104,461
Balance on December 31, 2025	$ 146,241	$ 1,581,084	$ 2,223,173	$ 37,735	$ 100,776	$ 1,703,675	$ 24,059	$ 5,816,743
Accumulated depreciation
Balance on January 1, 2025	$ -	$ 680,331	$ 1,191,326	$ 15,960	$ 54,949	$ 1,376,876	$ -	$ 3,319,442
Effects of acquisition of a subsidiary	-	48,571	390,848	4,564	19,707	58,178	-	521,868
Depreciation expense	-	56,601	60,953	1,747	3,983	74,300	-	197,584
Disposal	-	-	( 27,944 )	( 133 )	( 1,342 )	( 50,599 )	-	( 80,018 )
Reclassification	-	( 842 )	( 14,667 )	37	( 1,183 )	-	-	( 16,655 )
Net exchange differences	-	7,714	34,401	4,519	5,562	621	-	52,817
Balance on December 31, 2025	$ -	$ 792,375	$ 1,634,917	$ 26,694	$ 81,676	$ 1,459,376	$ -	$ 3,995,038
Net amount on December 31, 2025	$ 146,241	$ 788,709	$ 588,256	$ 11,041	$ 19,100	$ 244,299	$ 24,059	$ 1,821,705
Cost
Balance on January 1, 2024	$ 146,241	$ 1,149,448	$ 1,351,358	$ 21,274	$ 67,021	$ 1,504,060	$ 16,229	$ 4,255,631
Increase	-	18,948	69,031	10	1,898	57,873	( 4,956 )	142,804
Disposal	-	-	( 15,630 )	( 2,165 )	( 2,780 )	( 21,411 )	-	( 41,986 )
Reclassification	-	-	( 5,942 )	-	-	( 1,843 )	-	( 7,785 )
Net exchange differences	-	37,571	39,223	161	1,666	31,166	541	110,328
Balance on December 31, 2024	$ 146,241	$ 1,205,967	$ 1,438,040	$ 19,280	$ 67,805	$ 1,569,845	$ 11,814	$ 4,458,992
Accumulated depreciation
Balance on January 1, 2024	$ -	$ 604,328	$ 1,140,562	$ 16,584	$ 52,234	$ 1,303,347	$ -	$ 3,117,055
Depreciation expense	-	57,159	39,080	1,431	4,063	71,563	-	173,296
Disposal	-	-	( 14,954 )	( 2,160 )	( 2,750 )	( 21,218 )	-	( 41,082 )
Reclassification	-	-	( 42 )	-	-	( 2,290 )	-	( 2,332 )
Net exchange differences	-	18,844	26,680	105	1,402	25,474	-	72,505
Balance on December 31, 2024	$ -	$ 680,331	$ 1,191,326	$ 15,960	$ 54,949	$ 1,376,876	$ -	$ 3,319,442
Net amount on December 31, 2024	$ 146,241	$ 525,636	$ 246,714	$ 3,320	$ 12,856	$ 192,969	$ 11,814	$ 1,139,550

AI assistant

COMPUCASE — Audit Report / Information 2025

52265_rns_2026-06-04_3a00ee6f-5c10-48bb-b5d6-e2ea098749a7.pdf

Compucase Enterprise Co., Ltd.

And Subsidiaries

Consolidated Financial Report and

CPA’s Audit Report

REPRESENTATION LETTER

Opinion

Basis of Audit Opinions

Key Audit Matters

Other Matters

Responsibilities of the Management and Governing Bodies for Consolidated Financial Statements

Responsibilities of CPAs for the Audit of Consolidated Financial Statements

Compucase Enterprise Co., Ltd. And Subsidiaries

Consolidated Balance Sheet

Compucase Enterprise Co., Ltd. And Subsidiaries

Consolidated Statement of Comprehensive Income

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

Compucase Enterprise Co., Ltd. And Subsidiaries

Compucase Enterprise Co., Ltd. And Subsidiaries

Non-current

Notes receivable

Accounts receivable

December 31, 2025

December 31, 2024

XX. Accounts payable (including related parties)

XXI. Bonds payable

(1) First Domestic Unsecured Convertible Bonds

Conversion Rights of Bondholders

Redemption Rights of the Company

Put Option of the Company's Convertible Bonds

Redemption Rights of the Company

Put Option of Bondholders

XXII. Notes and accounts payable (including related parties)

XXIII. Other payables

XXIV. Post-employment benefit plans

XXV. Equity

(IV) Special reserves

(V) Other equity

(VI) Non-controlling interest

(VII) Treasury stocks

XXVI. Revenue

(I) Contract balance

(II) Sub-items of revenue from contracts with customers

(VII) Remuneration for employees and directors

XXX. Agreement on share-based payment

(I) Transfer treasury shares to employees.

(II) Subsidiaries issue employee stock options

XXXI. Business Combination

XXXIII. Financial instruments

(IV) Purposes and policies of financial risk management

1. Market risks

2. Credit risk

3. Liquidity risk

Compucase Enterprise Co., Ltd. And Subsidiaries

Compucase Enterprise Co., Ltd. And Subsidiaries

Compucase Enterprise Co., Ltd. And Subsidiaries

Compucase Enterprise Co., Ltd. And Subsidiaries

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COMPUCASE Audit Report / Information 2025