Stock Code: 3032

Compucase Enterprise Co., Ltd.

Standalone 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.

CPA's Audit Report

To Compucase Enterprise Co., Ltd.:

Audit opinions

We have audited the accompanying standalone financial statements of Compucase Enterprise Co., Ltd. (the “Corporation”), which comprise the standalone balance sheets as of December 31, 2025 and 2024, the standalone statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the standalone financial statements, including a summary of significant accounting policies (collectively referred to as the “standalone financial statements”).

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

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described i

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

Key Audit Matters

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

Key audit matters of the Corporation’s standalone financial statements for the year ended December 31, 2025 are stated as follows:

Truthfulness of the recognition of revenues from certain customers

Compucase Enterprise Co., Ltd. in fiscal year 114 of the Republic of China calendar, sales revenue from certain customers increased significantly compared with the previous year, and the average collection period was not consistent with the credit terms granted. Accordingly, in accordance with auditing standards regarding the presumption that revenue recognition constitutes a significant risk, we identified the authenticity of sales revenue recognition from such specific customers as 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 Investment in a Subsidiary

In fiscal year 114, Wistron Technology Corporation acquired 100% equity ownership of Amber Investment Partners Limited. Due to the special nature of the transaction and its significance during the year, we identified this acquisition transaction as a key audit matter in our audit.

The principal audit procedures performed by us included the following:

I. We obtained an understanding of the Company’s procedures and internal controls related to the acquisition or disposal of assets and assessed whether the design and implementation of such internal controls were effective.
II. We inspected the acquisition agreement and payment supporting documents and verified whether the related accounting treatment was appropriate.
III. We obtained the purchase price allocation report, evaluated the independence, professional competence, and qualifications of the external expert engaged by management, and engaged valuation specialists to review the reasonableness of the valuation methods and key assumptions adopted in the purchase price allocation report.

Other Matter

In the standalone financial statements of Compucase Enterprise Co., Ltd. for fiscal year 114, the financial statements of certain investee companies accounted for using the equity method were audited by other auditors. Accordingly, the opinion expressed by us on the standalone financial statements, insofar as it relates to the amounts of investments accounted for using the equity method and the related share of profit or loss, is based on the audit reports issued by those other auditors.

As of December 31, 114, the carrying amount of the aforementioned investments accounted for using the equity method was NT$1,457,516 thousand, representing 18% of total assets. In addition, the share of comprehensive income recognized under the equity method for the period

from January 1 to December 31, 114 amounted to a gain of NT$191,503 thousand, representing (29)% of total comprehensive income. Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements

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

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

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

Auditors’ Responsibilities for the Audit of the Standalone Financial Statements

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

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

Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Corporation’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
4 -

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

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

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

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

Deloitte Taiwan
CPA Wang Teng-Wei
No. of Approval Document from the Financial Supervisory Commission

CPA Li Chi-Chen
No. of Approval Document from the Securities and Futures Commission

Jin-Guan-Zheng-Shen-Zi No. 1100356048
Tai-Cai-Zheng-Liu-Zi No. 0920123784
March 12, 2026

Compucase Enterprise Co., Ltd. and Subsidiaries

Standalone 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)	$ 673,360	7	$ 1,484,324	19
1136	Financial assets measured at amortized cost - current (Notes 4 · 8 and 31)	520,000	6	180,318	2
1170	Accounts receivable (Notes 4, 9 and 23)	1,199,168	13	1,395,485	18
1180	Accounts receivable - related parties (Notes 4,9, 23and 30)	72,127	1	44,373	1
1200	Other receivables (Notes 4)	71,763	1	24,830	-
1210	Other receivables - related parties (Notes 4 and 30)	51,044	1	3,264	-
130X	Inventory (Notes 4 and 10)	226,866	2	283,314	4
1410	Prepayments	2,447	-	4,342	-
1479	Other current assets	4,815	-	2,214	-
11XX	Total current assets	2,821,590	31	3,422,464	44
Non-current assets
1550	Investment under the equity method (Notes 4 and 11)	6,036,023	66	4,072,869	52
1600	Property, plant and equipment (Notes 4 and 12)	212,391	2	205,584	3
1755	Right-of-use assets (Notes 4 and 13)	4,453	-	5,565	-
1760	Net investment property (Notes 4 and 14)	53,018	1	53,018	1
1780	Intangible assets (Notes 4 and 15)	3,516	-	3,907	-
1840	Deferred income tax assets (Notes 4 and 25)	20,499	-	10,808	-
1915	Prepayments for equipment	4,481	-	5,154	-
1920	Deposits paid (Note 4)	5,284	-	1,303	-
15XX	Total non-current assets	6,339,665	69	4,358,208	56
1XXX	Total assets	$ 9,161,255	100	$ 7,780,672	100
Code	Liabilities and equity
Current liabilities
2100	Short-term loans (Notes 16)	$ 1,040,760	11	$ 1,816,000	23
2130	Contract liabilities - current (Note 23 and 30)	25,774	-	82,741	1
2170	Accounts payable (Note 16)	232,861	3	301,639	4
2180	Accounts payable - related parties (Notes 23 and 30)	1,996,686	22	1,807,967	23
2219	Other payables (Note 18)	161,051	2	219,412	3
2220	Other payables - related parties (Note 18 and 30)	6,800	-	211,203	3
2230	Current income tax liabilities (Notes 4 and 25)	132,100	1	17,855	-
2250	Liability provision - current (Notes 4 and 20)	45,363	-	26,430	-
2280	Lease liabilities - current (Notes 4 and 13)	1,032	-	969	-
2399	Other current liabilities	46,541	1	38,910	1
21XX	Total current liabilities	3,688,968	40	4,523,126	58
Non-current liabilities
2500	Non-current financial liabilities at fair value through profit or loss (Notes 4, 7 and 17)	26,800	-	-	-
2530	Corporate bonds payable (Notes 4 and 17)	1,868,512	21	-	-
2570	Deferred income tax liabilities (Notes 4, 5 and 25)	324	-	-	-
2580	Lease liabilities - non-current (Notes 4 and 13)	3,564	-	4,596	-
2640	Net defined benefit liabilities - non-current (Notes 4 and 21)	3,628	-	5,974	-
2645	Deposits received	491	-	491	-
2650	Credit balance arising from investments accounted for under the equity method (Note 11)	1,077,872	12	-	-
25XX	Total non-current liabilities	2,981,191	33	11,061	-
2XXX	Total liabilities	6,670,159	73	4,534,187	58
Equity (Notes 4 and 22)
3100	Share capital	1,132,856	12	1,132,856	14
3200	Capital reserves	637,189	7	441,767	6
Retained earnings
3310	Legal reserves	610,471	7	558,587	7
3320	Special reserves	184,008	2	316,024	4
3350	Undistributed earnings	( 111,646 )	( 1 )	1,010,791	13
3300	Total retained earnings	682,833	8	1,885,402	24
3400	Other equity	38,218	-	( 184,008 )	( 2 )
3500	Treasury stocks	-	-	( 29,532 )	-
3XXX	Total equity	2,491,096	27	3,246,485	42
Total liabilities and equity		$ 9,161,255	100	$ 7,780,672	100

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

Chairman: Ko Chi-Yuan

President: Lee Chia-Ching

Accounting Manager: Chen Fang-Ting

Compucase Enterprise Co., Ltd. and Subsidiaries

Standalone Statement of Comprehensive Income
(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

Code		2025		2024
		Amount	%	Amount	%
4100	Operating revenue (Notes 4, 23 and 30)	$ 6,921,523	100	$ 5,699,364	100
5110	Operating cost (Notes 10, 24 and 30)
5900	Gross operating profit	6,093,420	88	5,025,947	88
5910	Unrealized profits with subsidiaries
5920	Realized profits with subsidiaries	828,103	12	673,417	12
5950	Realized gross operating profit
	Operating expense (Notes 9, 24 and 30)	1,618	-	( 1,616 )	-
6100	Marketing expense
6200	Management expense	1,616	-	459	-
6300	R&D expense
6450	Expected credit Impairment loss	831,337	12	672,260	12
6000	Total operating expenses
6900	Net operating profit
	Non-operating revenues, expenses and losses (Notes 4, 24, 30 and 33)	329,069	5	316,872	6
7100	Interest income	102,886	1	108,018	2
7010	Other incomes	64,492	1	67,022	1
7020	Other profits and losses	( 6,375 )	-	4,979	-
7050	Financial cost	490,072	7	496,891	9
7070	Share of interests of subsidiaries accounted for using the equity method
7000	Total non-operating revenues and expenses	341,265	5	175,369	3
7900	Pre-tax net profit
		39,710	-	31,478	-
7950	Income tax expenses (Notes 4 and 25)	51,229	1	36,749	1
8200	Net profit in the current year	( $ 894,320 )	( 13 )	$ 517,876	9

Code		2025		2024
		Amount	%	Amount	%
	Other comprehensive income
(Notes 4,21, 22 and 25)
	Items not reclassified as profit or loss
8311	Remeasurement of defined benefits plans	( 234)	-	159	-
8330	Share of other comprehensive income of subsidiaries accounted for using the equity method	724	-	832	-
8349	Income tax related to items not reclassified	46	-	( 32)	-
8310		536	-	959	-
	Items likely to be subsequently reclassified as profit or loss
8361	Exchange differences on translation of financial statements of foreign operations	214,715	3	88,050	1
8380	Share of other comprehensive income of subsidiaries accounted for using the equity method	7,511	-	43,967	1
8360		222,226	3	132,017	2
8300	Other comprehensive income (net after-tax) in the current year	222,762	3	132,976	2
8500	Total comprehensive income in the current year	( $ 671,558 )	( 10 )	$ 650,852	11
	EPS (Note 26)
9750	Basic	( $ 7.93 )		$ 4.61
9850	Diluted	( 7.93 )		4.58

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

Chairman: Wang Chun-Tung
President: Lee Chia-Ching
Accounting Manager: Chen Fang-Ting

Compucase Enterprise Co., Ltd. and Subsidiaries

Standalone Statement of Changes in Equity

Unit: NTD thousand

	Retained earnings					Other equity
		Share capital	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	Treasury stocks	Total 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
	Appropriations of earnings (Note 19)
B1	Legal reserve	-	-	60,583	-	(60,583)	-	-	-	-	-
B3	Special reserve	-	-	-	61,784	(61,784)	-	-	-	-	-
B5	Cash dividends to stockholders	-	-	-	-	(393,000)	-	-	-	-	(393,000)
	-NT$3.5 per share	-	-	-	-	517,876	-	-	-	-	517,876
D1	Net Income	-	-	-	-	959	132,017	-	132,017	-	132,976
D3	Other comprehensive income, net of income tax	-	-	-	-	518,835	132,017	-	132,017	-	650,852
D5	Total comprehensive income	-	-	-	-
Z1	Balance on December 31, 2024	-	-	-	-
	Appropriations of earnings (Note 19)
B1	Legal reserve	-	-	51,884	-	(51,884)	-	-	-	-	-
B3	Special reserve	-	-	-	(132,016)	132,016	-	-	-	-	-
B5	Cash dividends to stockholders	-	-	-	-	(308,785)	-	-	-	-	(308,785)
	-NT$2.73 per share	-	-	-	-
C5	Equity component of convertible bonds issued by the Company (Notes 17 and 22)	-	156,623	-	-	-	-	-	-	-	156,623
D1	Net Income	-	-	-	-	(894,320)	-	-	-	-	(894,320)
D3	Other comprehensive income, net of income tax	-	-	-	-	536	222,226	-	222,226	-	222,762
D5	Total comprehensive income	-	-	-	-	(893,784)	222,226	-	222,226	-	(671,558)
N1	hare-based payment transactions (Notes 22 and 27)	-	38,799	-	-	-	-	-	-	29,532	68,331
Z1	December 31, 2025	$1,132,856	$637,189	$610,471	$184,008	($111,646)	$103,622	($65,404)	$38,218	$-	$2,491,096

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

Chairman: Wang Chun-Tung

President: Lee Chia-Ching

Accounting Manager: Chen Fang-Ting

Compucase Enterprise Co., Ltd. and Subsidiaries

Standalone 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	($ 682,875)	$ 569,691
A20000	Profits, expenses and losses:
A20100	Depreciation expense	29,529	26,898
A20200	Amortization expense	830	1,007
A20300	Profit on reversal of expected credit impairment loss	( 6,375)	4,979
A20400	Net loss on financial assets and liabilities at fair value through profit or loss (FVTPL)	4,200	-
A20900	Financial cost	46,292	19,805
A21200	Interest income	( 39,710)	( 31,478)
A21900	Share-based payments	38,850	48
A22400	Share of losses(profit) of associates accounted for using the equity method	1,054,407	( 318,572)
A23900	Unrealized profits with subsidiaries	18,933	13,861
A24000	Realized profits with subsidiaries	8,715	17,439
A24600	Provision of liabilities	( 3,609)	2,995
A24500	Provision of refund liabilities	46,292	19,805
A29900	Others	( 39,710)	( 31,478)
A30000	Net changes in operating assets and liabilities
A31150	Accounts receivable	202,692	417,075
A31160	Accounts receivable - related parties	( 27,754)	( 10,609)
A31180	Other receivables	( 47,788)	1,342
A31190	Other receivables - related parties	( 47,780)	345
A31200	Inventory	60,057	( 23,418)
A31230	Prepayments	1,895	( 1,190)
A31240	Other current assets	( 2,601)	2,527
A32125	Contract liabilities	( 56,967)	46,852
A32150	Accounts payable	( 68,778)	177,966
A32160	Accounts payable - related parties	188,719	8,647
A32180	Other payables	( 45,069)	25,284
A32190	Other payables - related parties	( 204,403)	8,798
A32230	Other current liabilities	( 1,084)	( 3,921)
A32240	Net defined benefit liabilities	( 2,580)	( 437)
A33000	Cash generated from operations	414,512	957,091
A33100	Interest received	40,565	29,890
A33300	Interest paid	( 51,173)	( 19,552)
A33500	Income tax paid	( 106,521)	( 113,435)
AAAA	Net cash inflow from operating activities	297,383	853,994

11 -

Code		2025	2024
	Cash flow from investing activities
B00040	Acquisition of financial assets measured at amortized cost	($ 520,000)	($ 223,666)
B00050	Disposal of financial assets measured at amortized cost	180,318	83,265
B01800	Acquisition of investments accounted for using the equity method	( 2,445,808)	-
B02700	Acquisition of property, plant and equipment	( 8,456)	( 15,931)
B03700	Increase in guarantee deposits paid	( 3,981)	-
B07100	Increase in prepayments for equipment	732,303	126,937
B07600	Dividends received	( 2,094,643)	( 30,522)
BBBB	Net cash inflows from investing activities	($ 520,000)	($ 223,666)
	Cash flows from (used in) financing activities
C00100	Increase in short-term loans	3,830,760	4,306,000
C00200	Decrease in short-term loans	( 4,606,000)	( 3,688,500)
C01200	Issuance of convertible bonds	2,041,809	-
C03700	Increase in other payables - related parties	( 969)	( 905)
C03800	Decrease in other payables - related parties	( 308,785)	( 393,000)
C04020	Repayment of principal of lease	29,481	-
C04500	Distribution of cash dividends	986,296	115,946
C05100	Treasury shares sold to employees	3,830,760	4,306,000
CCCC	Net cash flows from (used in) financing activities	( 4,606,000)	( 3,688,500)
EEEE	Increase (Decrease) in cash and cash equivalents in the current year	( 810,964)	939,418
E00100	Starting balance of cash and cash equivalents	1,484,324	544,906
E00200	Ending balance of cash and cash equivalents	$ 673,360	$ 1,484,324

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

Chairman: Wang Chun-Tung
President: Lee Chia-Ching
Accounting Manager: Chen Fang-Ting

Compucase Enterprise Co., Ltd.

Notes to Standalone 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 standalone financial report is presented in NTD, our functional currency.

II. Date and procedures of approval of the financial report

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

III. Application of new and amended standards and interpretations

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

The initial application of the IFRS Accounting Standards endorsed and issued into effect by the FSC did not have material impact on the Corporation and its subsidiaries’ accounting policies.

(II) FSC-approved IFRSs applicable in 2026

New, Amended and Revised Standards and Interpretations	Effective Date Announced by IASB(Note1)
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments	January 1, 2026 (Note 1)
Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”	January 1, 2026 (Note 2)
Annual Improvements to IFRS Accounting Standards –	January 1, 2026 (Note 3)

New, Amended and Revised Standards and Interpretations

Effective Date Announced by IASB(Note1)

Volume 11

IFRS 17 "Insurance Contracts" (including the 2020 and 2021 Amendments)

January 1, 2026 (Note 4)

As of the date of approval and publication of this standalone financial report, the 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 (TBD)
IFRS 18 “Presentation and Disclosure in Financial Statements”	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”	January 1, 2027

Note1: Unless otherwise stated, the above newly issued/amended/revised standards or interpretations are effective for annual reporting periods beginning on or after the respective dates.

Note2: On September 25, 2025, the Financial Supervisory Commission (FSC) announced that enterprises in Taiwan shall apply IFRS 18 from January 1, 2028, and may also elect to early adopt IFRS 18 after it 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,

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.

Except for the above impact, as of the date the standalone financial statements were authorized for issue, the Corporation is continuously assessing the other impacts of the above amended standards and interpretations will have on the Corporation's 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 standalone financial report has been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

(II) Basis of preparation

Except for financial instruments measured at fair value and net defined benefit assets recognized at the present value of defined benefit obligations less the fair value of plan assets, this standalone 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.

In preparing this standalone financial report, we have adopted the equity

15 -

method for investments in subsidiaries and associates. To ensure the profit/loss, other comprehensive income and equity for the current year in this standalone financial report are identical to the profit/loss, other comprehensive income and equity for the current year attributable to our owners in our consolidated financial report, the differences in accounting treatments on standalone and consolidated bases are presented as adjustments to “investments accounted for using the equity method,” “share of profit/loss of subsidiaries and associates accounted for using the equity method,” “share of other comprehensive income of subsidiaries and associates accounted for using the equity method” and other related items of equity.

(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) Foreign currency

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

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

In preparing the standalone financial report, the assets and liabilities of foreign

16 -

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.

(V) Inventory

Inventories include goods, raw materials, work in process and finished 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.

(VI) Investments in subsidiaries

We use the equity method to account for investments in subsidiaries.

A subsidiary means an entity controlled by us.

Under the equity method, the investment in a subsidiary is initially recognized at cost, and the carrying amount is increased or decreased with our share of the profit or loss and other comprehensive income of and the profit distributed from the subsidiary after the date of acquisition. Additionally, changes in our share of other equity of a subsidiary are recognized in proportion to our shareholding.

Changes in our ownership interest in a subsidiary that do not result in a loss of control are treated as equity transactions. The difference between the carrying amount of an investment and the fair value of consideration paid or received is directly recognized in equity.

If our share of losses of a subsidiary equals to or exceeds our equity in the subsidiary (including the carrying amount of the subsidiary under the equity method and other long-term equity de facto constituting part of our net investment in the subsidiary), we will continue to recognize losses in proportion to our shareholding.

In evaluating impairment, we consider the cash generating units in the financial report on an overall basis and compare their recoverable amounts with their

17 -

carrying amounts. If the recoverable amount of an asset is increased subsequently, reversal of impairment losses is recognized in profit, provided that the carrying amount of the asset after reversal of impairment losses do not exceed the carrying amount of the asset less the amount accounted for in amortization, without recognition of impairment losses. Impairment losses attributable to goodwill should not be reversed in the subsequent period.

Unrealized profits or losses from downstream transactions between us and a subsidiary are eliminated in the standalone financial report. Profits or losses arising from upstream and side-stream transactions between us and a subsidiary are recognized in the standalone financial report only to the extent where such profits or losses do not involve our equity in the subsidiary.

(VII) Property, plant and equipment

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

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 current profit/loss.

(VIII) 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.

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

(IV) Intangible assets

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Individual acquisition

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. We review 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.

Derecognition

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.

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

We assess whether there is any sign of possible impairment of property, plant and equipment, right-of-use assets, investment property and intangible assets 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, we estimate 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.

(VI) Financial instruments

Financial assets and liabilities are recognized in the standalone balance sheet when we become 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

19 -

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

We hold the following types of financial assets: Financial assets measured at amortized cost.

Financial assets measured at amortized cost

If our investments 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, accounts receivable measured at amortized cost (including related parties), other receivables (including related parties) and guarantee deposits paid) are measured at the 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/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

20 -

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

We assess 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 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, we determine that a default has occurred on financial assets under any of the following circumstances without considering the collateral we

21 -

hold:

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

We derecognize 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 its carrying amount and the consideration received is recognized in profit/loss.

Equity instruments

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

The reacquisition of our 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

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

(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 compound financial instruments issued by the Company (convertible

22 -

bonds) are classified into financial liabilities and equity components upon initial recognition, based on 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. It is subsequently measured at amortised cost using the effective interest method until conversion or maturity. Any liability component that contains an embedded non-equity derivative is measured at fair value.

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

Transaction costs related to the issuance of convertible bonds are allocated to the liability and equity components in proportion to the allocation of the total proceeds, with costs attributable to the liability component included in its carrying amount and those attributable to the equity component recognised in equity.

(VII) 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

23 -

settlement of HEC.

(VIII) Recognition of revenue

Once we have identified the performance obligations in the contract with a customer, we allocate the transaction price to each performance obligation and recognize revenue after satisfying each performance obligation.

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.

(IX) Leases

We assess whether a contract is (or contains) a lease on the date of conclusion of the contract.

We are 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 less the lease incentives are recognized in profit on a straight-line basis over the relevant lease term.

We are 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

24 -

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.

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 (fixed 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. Lease liabilities are separately presented in the balance sheet.

(X) Loan cost

A loan cost is recognized as profit/loss in the period of occurrence.

(XI) 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 are recognized as employee benefit expenses at the time of their occurrence. Remeasurement (including

25 -

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 are a deficit in the contribution to a defined benefit plan.

(XII) 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.

(XIII) Income tax

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

Current income tax

We determine the current income (loss) in accordance with the Income Tax Act of the Republic of China (Taiwan) 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.

26 -

Taxable temporary differences associated with investments in subsidiaries are recognized as deferred income tax liabilities, unless we are 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 our tax consequences 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

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In adopting accounting policies, the management 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.

The 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 NTD366,019 thousand and NTD469,162 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	$ 151	$ 151
Bank checks and demand deposits	393,209	298,335
Cash equivalents
Time deposits at banks with an original date of maturity within 3 months	100,000	960,838
Bonds with conditions for repurchase	180,000	225,000
	$ 673,360	$ 1,484,324

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	1.60%	1.28% ~ 5.60%

3 months

Bonds with conditions for repurchase
1.45%
1.47%

VII. Financial Instruments at Fair Value Through Profit or Loss

December 31, 2025

Non-current financial liabilities

Financial liabilities held for trading – derivative instruments

Put and call options embedded in convertible bonds (Note 17)
$ 26,800

VIII. Financial Assets Measured at Amortized Cost

	December 31, 2025	December 31, 2024
Time deposits with original maturities of more than three months	NT$520,000	NT$180,318
Bonds with conditions for repurchase	1.45%	1.47%

The interest rate ranges for time deposits with original maturities of more than three months as of December 31, 2025 and 2024 were 1.28%–1.75% and 4.95%–4.98%, respectively.

For information regarding financial assets measured at amortized cost pledged as collateral, please refer to Note 31.

IX. Accounts receivable (including related parties)

	December 31, 2025	December 31, 2024
Measured at amortized cost
Total carrying amount	$1,274,766	$1,449,998
Less: Loss allowance	3,471	10,140
	$1,271,295	$1,439,858

Our average loan period for sales of goods is 1 to 4 months, with zero accrued on accounts receivable. In order to mitigate credit risk, our management 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

29 -

receivable. Furthermore, we review 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, our management considers that its credit risks have reduced significantly.

We recognize 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 our historical experience in credit losses has shown no significant difference in the types of loss between distinct customer bases, we have made no further distinction between the customer bases and have only set the expected credit loss rate based on the number of days of accounting of accounts receivable.

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

Our loss allowances for accounts receivable (including related parties) 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%~0.29%	0%~4.11%	-	-
Total carrying amount	$ 1,274,254	$ 512	$ -	$ -	$ 1,274,766
Loss allowance (full lifetime expected credit losses)	( 3,450)	( 21)	-	-	( 3,471)
Amortized cost	$ 1,270,804	$ 491	$ -	$ -	$ 1,271,295

December 31, 2024

	0 to 90 days	91 to 180 days	181 to 365 days	366 or more days	Total
Credit loss rate	0%~0.13%	0%~0.63%	14%	100%
Total carrying amount	$ 1,089,838	$ 308,345	$ 51,396	$ 419	$ 1,449,998
Loss allowance (full lifetime expected credit losses)	( 1,316)	( 1,936)	( 6,469)	( 419)	( 10,140)
Amortized cost	$ 1,088,522	$ 306,409	$ 44,927	$ -	$ 1,439,858

The information of changes in loss allowance for accounts receivable (including related parties) is as follows:

2025 2024

Starting balance
$ 10,140
$ 5,161
Accounted for in the current year
( 6,375 )
4,979
Written off in the current year
( 294 )
-
Ending balance
$ 3,471
$ 10,140

X. Inventory

	December 31, 2025	December 31, 2024
Goods	$ 67,418	$ 158,577
Finished goods	44,907	36,875
Work in process	22	205
Raw materials	114,519	87,657
	$ 226,866	$ 283,314

Our inventory-related sales costs in 2025 and 2024 were, respectively, NTD6,093,420 thousand and NTD5,025,947 thousand, and our sales costs in 2025 and 2024 included losses of inventory depreciation amounted to NTD3,609 thousand and NTD2,995 thousand respectively.

XI. Investments accounted for using the equity method

Investments in subsidiaries

	December 31, 2025	December 31, 2024
Wei Shun Int'l Investments Co., Ltd. (WII)	$ 330,560	$ 1,560,837
Great Success Group Ltd. (GSG)	803,438	1,006,813
Global Treasure Holdings Co., Limited (GTH)	2,099,926	-
Amber Investment Partners Limited (AIP)	1,457,516	-
Power Master Co., Ltd. (FCC)	8,067	5,561
Compucase Corporation (UCC)	21,318	26,139
Compucase Japan Co., Ltd. (JCC)	68,739	66,111
Cougar Korea Co., Ltd. (KCC) (Note)	147	149
Loyalty Founder Enterprise Co., Ltd. (LFE)	1,246,312	1,277,966
OPT	( 1,077,872 )	129,293
Add: Credit balance of long-term equity investments accounted for using the equity method reclassified to other liabilities.	1,077,872	-
	$ 6,036,023	$ 4,072,869

	Percentage of ownership equity and voting rights (%)
	December 31, 2025	December 31, 2024
WII	100	100
GSG (Note 1)	100	100
GTH	80.99	-
AIP	100	-
FCC	60	60
UCC (Note 2)	100	100
JCC	100	100
KCC	100	100
LFE	50.62	50.62
OPT	59.49	59.49

Note1: During 2024, the Company's Board of Directors resolved to convert claims against its subsidiary, UCC, into additional capital in the amount of US$1,300 thousand.

Note2: For the disclosure regarding the Company's acquisition of 100% equity interest in AIP on July 8, 2025, please refer to Note 30 to the Company's 2025 consolidated financial statements. Subsequently, in September of the same year, the Company's Board of Directors resolved to increase the capital of AIP by NT$540,000 thousand. The capital increase was completed in January 2026.

Note3: In August 2025, the Company's Board of Directors resolved to conduct a cash capital increase in its subsidiary, GTH, in the amount of US$39,600 thousand, to be subscribed by the Company and through its subsidiary, WII. Of this amount, US$36,000 thousand was offset against the Company's receivables from GTH as payment for the shares, while the remaining US$3,600 thousand was contributed through a cash capital increase by the Company to WII, which then reinvested the proceeds into GTH. After the capital increase, the Company and WII held 80.99% and 19.01% equity interests in GTH, respectively.

In addition, in December 2025, the Company's Board of

Directors resolved that the Company, through WII, would further increase the capital of GTH by US$26,000 thousand. The capital increase was completed in January 2026..

Note4: In August 2025, GSG of Directors resolved to reduce its capital by US$6,500 thousand. However, as of the end of 2025, the capital reduction procedures had not yet been completed.

For details of the investee subsidiaries directly and indirectly owned by HEC, see Tables 6 and 7.

XII. 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: 25 to 55 years
Mechanical, electrical and power equipment: 10 to 20 years
Engineering system: 15 to 20 years
Others: 5 years
Machine/Equipment: 3 to 19 years
Transport equipment: 5 years
Office equipment: 5 to 18 years
Other equipment: 2 to 15 years

During 2025 and 2024, the Company conducted the following investing activities that did not fully affect cash flows:

	2025	2024
Increase in property, plant and equipment	$ 35,224	$ 18,226
Reclassification of prepayments for equipment	( 29,253 )	-
Increase (decrease) in payable for equipment	2,485	( 2,295 )
Cash paid for acquisition of property, plant and equipment	$ 8,456	$ 15,931

XIII. Lease agreement

(I) Right-of-use assets

	Land
Cost
Balance on January 1, 2024	$ 4,908

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	Land
Increase	5,565
Decrease	( 4,908 )
Balance on December 31, 2024	$ 5,565
Accumulated depreciation
Balance on January 1, 2024	$ 3,926
Depreciation expense	982
Decrease	( 4,908 )
Balance on December 31, 2024	$ -
Net amount on December 31, 2025	$ 5,565
Cost
Balances on January 1 and December 31, 2025	$ 5,565
Accumulated depreciation
Balance on January 1, 2025	$ -
Depreciation expense	1,112
Balance on December 31, 2025	$ 1,112
Net amount on December 31, 2023	$ 4,453

(II) Lease liabilities

	December 31, 2025	December 31, 2024
Carrying amount of lease liabilities
Current	$ 1,032	$ 969
Non-current	$ 3,564	$ 4,596

The discount rate ranges for lease liabilities are as follows:

	December 31, 2025	December 31, 2024
Land	1.855%	1.855%

(III) Material lease activities and terms

We have rented land for warehousing and parking purposes with a lease term of 5 years expiring in December 2029.

(IV) Other lease information

	2025	2024
Expenses of short-term and low-value leases	$ 1,525	$ 1,274
Total cash outflow from	$ 2,580	$ 2,186

2025

2024

lease

Our company has chosen to apply the recognition exemption for leases that qualify as short-term leases and leases of low-value assets, and do not recognize right-of-use assets and lease liabilities relevant to such leases.

XIV. Investment property

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

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

The fair value of investment properties was determined based on valuations performed by independent appraisers as of November 28, 2025 and December 31, 2023, respectively. The assessed fair values were NT$137,489 thousand and NT$87,434 thousand. The Company's management assessed that there was no significant change in fair value as of December 31, 2025.

As of December 31, 2025 and 2024, accumulated impairment losses amounted to NT$23,180 thousand in both years.

XV. Intangible assets

	Trademark rights	Patent rights	Computer software	Total
Cost
January 1, 2025	$ 1,992	$ 1,387	$ 31,281	$ 34,660
separately acquired	-	-	439	439
Balances on January 1 and December 31, 2025	$ 1,992	$ 1,387	$ 31,720	$ 35,099
Accumulated amortization
Balance on January 1, 2025	$ 1,224	$ 1,361	$ 28,168	$ 30,753
Amortization expense	154	9	667	830
Balance on December 31, 2025	$ 1,378	$ 1,370	$ 28,835	$ 31,583
Net amount on December 31, 2025	$ 614	$ 17	$ 2,885	$ 3,516
Cost
Balance on December 31, 2024	$ 1,992	$ 1,387	$ 31,281	$ 34,660
Accumulated amortization
Balance on January 1, 2024	$ 1,070	$ 1,352	$ 27,324	$ 29,746
Amortization expense	154	9	844	1,007
Balance on December 31, 2024	$ 1,224	$ 1,361	$ 28,168	$ 30,753
Net amount on December 31, 2024	$ 768	$ 26	$ 3,113	$ 3,907

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

XVI. Short-term loans

	December 31, 2025	December 31, 2024
Bank loans
Unsecured loans	$ 1,040,760	$ 1,716,000
Secured loans	-	100,000
Total	$ 1,040,760	$ 1,816,000

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

	December 31, 2025	December 31, 2024
Unsecured loans	2.70%	1.78% ~ 2.005%
Secured loans	-	1.85%

XVII. Bonds payable

	December31, 2025
Domestic first unsecured convertible bonds, issuance amount	$ 1,000,000
Domestic second unsecured convertible bonds, issuance amount	1,000,000
Less: Discount on bonds payable	( 131,488 )
	$ 1,868,512

(1) Domestic First Unsecured Convertible Bonds

The Company issued its domestic first 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 face value of NT$100 thousand, with a total issuance of 10,000 units and a total face value of NT$1,000 million. The bonds were issued at 100% of par value.

The bonds carry a coupon rate of 0%.

Conversion rights of bondholders

Bondholders may, from February 14, 2026 (the day following the expiration of three months from the bond issuance date) to November 13, 2028 (the maturity date), convert their bonds into the Company's common shares through their brokerage firms and the Taiwan Depository & Clearing Corporation, by submitting a request to the Company's share transfer agent in accordance with the terms of the conversion regulations.

Such conversion rights may be exercised at any time, except during the following restricted periods:

(1) the book closure period for statutory suspension of share transfers;
(2) the period from 15 business days prior to the ex-dividend date for stock dividends, cash dividends, or cash capital increase subscription rights, up to the record date for such distributions;
(3) the period from the record date of a capital reduction until the day immediately preceding the commencement of trading of the reissued shares; and
(4) the suspension period for conversion (subscription) due to changes in par value of shares, from the effective date until the day immediately preceding the commencement of trading of the new shares.

The initial conversion price is NT$105.9 per share, which will be subject to adjustment in accordance with the conversion price adjustment formula thereafter.

38 -

Issuer's redemption rights 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 closing price of the Company's common shares on the TWSE exceeds 130% of the prevailing conversion price for 30 consecutive trading days, the Company may, within the following 30 trading days, redeem all or part of the outstanding bonds in cash at par value in accordance with the terms of issuance.
From February 14, 2026 to October 4, 2028, if the outstanding balance of the bonds falls below 10% of the total original issuance amount, the Company may redeem all remaining outstanding bonds in cash at par value in accordance with the terms of issuance.

Put option of bondholders (early redemption right)

The convertible bonds are subject to a put option exercisable by bondholders on November 13, 2027 (the second anniversary of the issuance date), which is the put option redemption reference date. The Company shall announce the redemption terms by October 14, 2027 (30 days prior to the put option date), and upon request by bondholders, redeem the bonds in cash at 101.0025% of par value (an implied yield of 0.5%).

The convertible bonds contain 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%.

	A m o u n t s
Issue proceeds (net of transaction costs of NT$3,255 thousand	$ 995,151
Equity component (net of transaction costs allocated to equity of NT$94 thousand)	( 28,931 )
Liability component at issuance date	966,220
Interest calculated using the effective interest method	2,651
Liability component as of December 31, 2025	$ 968,871

Changes in non-current financial liabilities at fair value through profit or loss:

39 -

Issuance during the year	$ 1,600
Fair value adjustmen	2,300
Ending balance	$ 3,900

(2) Domestic Second Unsecured Convertible Bonds

The Company issued its domestic second 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 face value of NT$100 thousand, with a total issuance of 10,000 units and a total face value of NT$1,000 million. The bonds were issued at 104.73% of par value.

The bonds carry 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 bond issuance date) to November 25, 2030 (the maturity date), convert their bonds into the Company's common shares through their brokerage firms and the Taiwan Depository & Clearing Corporation by submitting a request to the Company's share transfer agent in accordance with the terms of the conversion regulations.

Such conversion rights may be exercised at any time, except during the following restricted periods:

the book closure period for statutory suspension of share transfers;
the period from 15 business days prior to the ex-dividend date for stock dividends, cash dividends, or cash capital increase subscription rights, up to the record date for such distributions;
the period from the record date of a capital reduction until the day immediately preceding the commencement of trading of the reissued shares; and
the suspension period for conversion (subscription) due to changes in par value of shares, from the effective date until the day immediately preceding the commencement of trading of the new shares.

The initial conversion price is NT$101.9 per share, which will be subject to adjustment in accordance with the conversion price adjustment formula thereafter.

Issuer's redemption rights 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 closing price of the Company's common shares on the TWSE exceeds 130% of the prevailing conversion price

for 30 consecutive trading days, the Company may, within the following 30 trading days, redeem all or part of the outstanding bonds in cash at par value in accordance with the terms of issuance.

From February 26, 2026 to October 16, 2030, if the outstanding balance of the bonds falls below 10% of the total original issuance amount, the Company may redeem all remaining outstanding bonds in cash at par value in accordance with the terms of issuance.

Put option of bondholders (early redemption right)

The convertible bonds are subject to put options exercisable by bondholders on November 25, 2027, November 25, 2028, and November 25, 2029 (the second, third, and fourth anniversaries of the issuance date), which are the respective put option redemption reference dates. The Company shall announce the redemption terms by October 26, 2027, October 26, 2028, and October 26, 2029 (30 days prior to each put option date), and upon request by bondholders, redeem the bonds in cash at the following prices, including a yield-to-put premium of 0.5%:

101.0025% of par value for redemption at the end of year 2
101.5075% of par value for redemption at the end of year 3
102.0151% of par value for redemption at the end of year 4

The convertible bonds contain 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 2.1901%.

	Amounts
Issue proceeds (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 the effective interest method	3,275
Liability component as of December 31, 2025	$ 899,641

Changes in non-current financial liabilities at fair value through profit or loss:

	2025
Issuance during the	$ 21,000

year

Fair value adjustmen

Ending balance

1,900

$ 22,900

(3) Equity component (included in capital surplus, refer to Note 22)

As of December 31, 2025, the capital surplus arising from the initial recognition of the equity component of the first and second unsecured convertible bonds amounted to NT$156,623 thousand.

XVIII. Accounts payable (including related parties)

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

XIX. Other payables

	December 31, 2025	December 31, 2024
Salaries and bonuses payable	$ 42,129	$ 49,776
Remuneration payable to employees and directors	-	77,685
Commission payable	40,145	29,980
Advertising fee payable	40,697	21,206
Payment for unused leave	2,827	2,502
Others	35,253	38,263
	$ 219,412	$ 191,383

XX. Liability provision – current

	December 31, 2024	December 31, 2023
Provision for warranty liability	$ 45,363	$ 26,430

The provision for warranty liability is the present value of an optimal estimate by our management of future outflow of economic benefits incurred due to the obligation of warranty according to the agreement for sales of goods. The estimate is based on the historical experience in warranty and is adjusted after taking into account new raw materials, change in the manufacturing process or other factors affecting product quality.

XXI. Post-employment benefit plans

(I) Defined contribution plan

The pension system under the "Labor Pension Act," as applied by us, 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.

(II) Defined benefit plan

The pension system adopted by HEC 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 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 HEC does not have any right to influence the investment management strategies.

The amounts of defined benefit plan included in the parent-only balance sheet are as follows:

	December 31, 2025	December 31, 2024
Present value of defined benefit obligations	$ 10,705	$ 10,759
Fair value of plan assets	( 7,077 )	( 4,785 )
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
Balance on January 1, 2024	$ 10,467	($ 3,897)	$ 6,570
Interest expense (income)	136	( 51)	85
Recognized in profit/loss	136	( 51)	85
Remeasurement
Return on plan assets (excluding any amount included in net interest)	-	( 315)	( 315)
Actuarial profit – changes in	( 276)	-	( 276)

financial assumptions
Actuarial loss - experience adjustment	432	-	432
Recognized in other comprehensive income	156	(315)	(159)
Employer contribution	-	(522)	(522)
Balance on December 31, 2024	10,759	(4,785)	5,974
	Present value of defined benefit obligations	Fair value of plan assets	Net defined benefit liabilities
Interest expense (income)	172	(77)	95
Recognized in profit/loss	172	(77)	95
Remeasurement
Return on plan assets (excluding any amount included in net interest)	-	(322)	(322)
Actuarial profit - changes in financial assumptions	339	-	339
Actuarial loss - experience adjustment	217	-	217
Recognized in other comprehensive income	556	(322)	234
Employer contribution	-	(2,675)	(2,675)
Balance on December 31, 2025	(782)	782	-

Due to the pension system under the "Labor Standards Act," we are 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 HEC'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 our defined benefit obligations 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%	1.60%
Expected salary increase rate	2.25%	2.25%

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%	( $ 217 )	( $ 235 )
Decrease by 0.25%	$ 223	$ 242
Expected salary increase rate
Increase by 0.25%	$ 215	$ 234
Decrease by 0.25%	( $ 210 )	( $ 228 )

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 years	10 years

XXII. 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.

(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 (Note 2)
Recognized changes in ownership equity in subsidiaries	$ 6,693	$ 6,693

Shall not be used for any purpose (Note 3)

Share options of convertible bonds

156,623

$ 637,189

$ 441,767

Note 1: This type of capital surplus may be used to offset accumulated losses, and may also be distributed in cash or capitalized as share capital when the Company has no accumulated losses. However, the amount capitalized each year shall be subject to a certain percentage of the Company’s paid-in capital.

Note 2: This type of capital surplus represents the effect of equity transactions arising from changes in the equity of subsidiaries, in cases where the Company has not actually acquired or disposed of its ownership interests in the subsidiaries.

Note 3: This type of capital surplus arises from convertible bonds. It is subsequently adjusted upon conversion or expiration of the convertible bonds.

(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, directors and supervisors in the Articles of Incorporation, see Note 24(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

46 -

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 2025 loss appropriation plan and the reversal of special reserve in the amount of NT$80,914 thousand. The 2025 loss appropriation proposal is subject to approval by the shareholders' meeting, which is 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
($ 118,604 ) | 2024
($ 250,621 ) |
| --- | --- | --- |
| Starting balance | | |
| Incurred in the current year | | |
| Net exchange on translation of financial statements of foreign operations | 214,715 | 88,050 |

Share of associates accounted for using the equity method
Ending balance
7,511
$ 103,622
43,967
( $ 118,604 )

(VI) Treasury stocks

Shares transferred to employees (thousand shares)
Reason for repurchase	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.

XXIII. Revenue

	2025	2024
Revenue from contracts with customers
Sales revenue	$ 6,921,523	$ 5,699,364

(I) Contract balance

	December 31, 2025	December 31, 2024	January 1, 2024
Accounts receivable	$ 1,271,295	$ 1,439,858	$ 1,877,117
Contract liabilities
Sales of goods	$ 25,774	$ 82,741	$ 35,889

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	$ 40,573	$ 24,240

49 -

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

The sales revenue of HEC is generated through the sales of products including power supplies, computer chassis and private brands of computer and gaming peripherals, detailed as follows:

	2025	2024
Power supplies	$ 4,018,994	$ 2,937,364
Computer chassis	1,100,398	1,065,809
Private brands of computer and gaming peripherals	1,674,756	1,510,861
Others	127,375	185,330
	$ 6,921,523	$ 5,699,364

XXIV. Pre-tax net profit

(I) Interest income

	2025	2024
Bank deposits	$ 34,254	$ 30,837
Loaning of funds to related parties (Note 30)	4,721	641
Others	735	-
	$ 39,710	$ 31,478

(II) Other incomes

	2025	2024
Revenue from support services (Note 30)	$ 19,391	$ 17,500
Revenue from shipping fees	2,753	2,845
Sample fee income	2,846	929
Rent revenue (Note 30)	2,987	3,095
Others	23,252	12,380
	$ 51,229	$ 36,749

(III) Other profits and losses

	2025	2024
Net profit on foreign currency exchange	$ 14,145	$ 27,935

50 -

Loss from fire damage (Note 33)
$ 14,145
$ 27,935

Net loss on financial instruments at fair value through profit or loss:
( 4,200 )
( 2,955 )
( 607 )

Others
( 14,380 )
$ 27,328

(IV) Financial cost

	2025	2024
Interest of bank loans	$ 40,220	$ 18,546
Loans from related parties (Note 30)	-	1,252
Interest on convertible bonds	5,926	-
Interest of lease liabilities	86	7
Others	60	-
	$ 46,292	$ 19,805

(V) Depreciation and amortization

	2025	2024
Property, plant and equipment	$ 28,417	$ 25,916
Right-of-use assets	1,112	982
Intangible assets	830	1,007
	$ 30,359	$ 27,905

Summary of depreciation expenses by purpose

Operating costs	$ 899	$ 1,575
Operating expense	28,630	25,323
	$ 29,529	$ 26,898

Summary of amortization expenses by purpose

Operating costs	$ 6	$ 8
Operating expense	824	999
	$ 830	$ 1,007

(VI) Employee benefit expenses

	2025	2024
Short-term employee benefits	$ 171,218	$ 248,961
Post-employment benefits
Defined contribution plan	6,036	5,583
Defined benefit plan (Note 21)	95	85
	6,131	5,668
Share-based payment – equity settlement (Note 27)	38,850	48
	$ 216,199	$ 254,677
Summarized by purpose
Operating costs	$ 7,753	$ 8,426
Operating expense	208,446	246,251
	$ 216,199	$ 254,677

(VII) Remuneration for employees, directors and supervisors

In accordance with the Company's Articles of Incorporation, employee compensation and directors' remuneration are appropriated based on the pre-tax profit before deduction of employee compensation and directors' remuneration for the year, at rates of 2%–10% and not more than 4%, respectively.

Pursuant to 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, to stipulate that no less than 30% of the employee compensation appropriated for the year shall be allocated to grassroots employees.

The employee compensation and directors' remuneration for 2024, as resolved by the Board of Directors in March 2025, were as follows:

Estimated percentage

	113 年度
Employee compensation	8%
Directors' remuneration	4%

Amount

	113 年度
	Cash
Employee compensation	$ 51,790

Directors' remuneration

$ 25,895

As the Company incurred a net loss before tax in 2025, no employee compensation or directors' remuneration was accrued.

If there is any subsequent adjustment to the amounts after the issuance date of the parent company only financial statements, such adjustment shall be accounted for as a change in accounting estimate and recognized in the following year.

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

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	$ 472,745	$ 146,877
Total loss on foreign currency exchange	( 458,600 )	( 118,942 )
Net profit (loss)	$ 14,145	$ 27,935

XXV. Income tax

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

	2025	2024
Current income tax
Tax incurred in the year	$ 204,900	$ 51,208
Additional tax on undistributed earnings	14,509	4,523
Adjusted from prior years	1,357	( 110 )
	220,766	55,621
Deferred income tax
Tax incurred in the year	( 9,321 )	( 3,806 )
	$ 211,445	$ 51,815

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

	2025	2024
Pre-tax net profit	( $ 682,875 )	$ 569,691

Income tax expense on pre-tax net profit calculated at the statutory tax rate	( $ 136,575 )	$ 113,938
Expenses and losses not deductible from tax	5,486	992
Effect of adjustments on income tax
Effect of profit/loss of investment in domestic subsidiaries on income tax	221,963	( 9,223 )
Unrecognized taxable temporary difference of investment in subsidiaries	106,077	( 54,491 )
Other temporary differences unrecognized	( 1,372 )	( 3,814 )
Additional tax on undistributed earnings	14,509	4,523
Adjustment to income tax in prior year	1,357	( 110 )
	$ 211,445	$ 51,815

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

	2025	2024
Deferred income tax
Incurred in the current year
Remeasurement of defined benefits plans	$ 46	( $ 32 )

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

	December 31, 2025	December 31, 2024
Income tax payable	$ 132,100	$ 17,855

(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	Ending balance
Temporary difference
Defined benefit retirement plan	$ 1,195	($ 515)	$ 46	$ 726
Unrealized exchange losses	92	5,457	-	5,549
Accumulated impairment on property	1,200	-	-	1,200
Liability provision	5,286	3,787	-	9,073
Others	3,035	916	-	3,951

	$ 10,808	$ 9,645	$ 46	$ 20,499
Deferred tax liabilities
Temporary difference
Others	$ -	$ 324	$ -	$ 324
2024
Deferred income tax assets	Starting balance	Recognized in profit/loss	Recognized in other comprehensive income	Ending balance
Temporary difference
Defined benefit retirement plan	$ 1,314	($ 87)	($ 32)	$ 1,195
Unrealized exchange losses	1,044	( 952)	-	92
Accumulated impairment on property	1,200	-	-	1,200
Liability provision	2,514	2,772	-	5,286
Others	962	2,073	-	3,035
	$ 7,034	$ 3,806	($ 32)	$ 10,808

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

To meet the need of foreign investee companies for working capital, our management 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, taxable temporary differences associated with the aforementioned investments in subsidiaries for which deferred tax liabilities have not been recognized amounted to NT$1,830,094 thousand and NT$2,345,808 thousand, respectively.

(VI) Approval of income tax

The return of our profit-seeking enterprise income tax up until 2023 was approved by the tax authority.

XXVI. 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

55 -

	2025	2024
Net profit in the current year	($ 894,320 )	$ 517,876
Number of shares
	2025	Unit: thousand shares
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 we choose 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 is taken into account when calculating the diluted EPS before a resolution is adopted on the number of shares distributable as the remuneration for employees.

As the Company incurred a net loss after tax for the year ended 2025, the potential ordinary shares arising from convertible bonds and employee compensation, which would have an anti-dilutive effect, were not included in the calculation of diluted loss per share.

XXVII. Agreement on share-based payment

(I) Transfer treasury shares to employees.

In May 2025, the Company granted 1,000 thousand shares of treasury stock options to its employees. The grantees were employees of the Company, and the vesting condition was immediate vesting. All of the options 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 options granted by the Company in May 2025 were valued using the Black-Scholes valuation model. The parameters used are as follows:

Transfer price	NTD 29.57
Expected lifetime	14days
Share price on the date of granting	NTD 68.40
Expected rate of share price fluctuation	60.721%
Expected dividend yield	0%
Risk-free interest rate	1.225%

The expected volatility was determined based on the annualized standard deviation of daily returns from April 17, 2025 to May 7, 2025.

For the year ended 2025, compensation cost recognized 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	200	$ 11.7	200	$ 11.7
Outstanding at end of the year	200		200

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 2.5years

Expected dividend yield $0\%$

Risk-free interest rate $1.212\% \sim 1.216\%$

For the year ended 2024, compensation cost recognized amounted to NT$48 thousand.

XXVIII. Capital risk management

Our chief management periodically reviews our capital structure, including consideration of the costs and relevant risks of all categories of capital. Therefore, we engage 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.

XXIX. Financial instruments

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

Our management considers that the carrying value of financial assets and liabilities not measured at fair value is near its fair value.

December 31, 2025

Carrying	Financial liabilities
	Level 1	Level 2	Level 3	Total fair

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

I. Fair value hierarchy

December 31, 2025

	Financial liabilities
	Level 1	Level 2	Level 3	Total fair value
Convertible bonds	$ -	$ -	$ 26,800	$ 26,800

II. During the year ended 2025, there were no transfers between Level 1 and Level 2 fair value measurements.

III. Reconciliation of Level 3 fair value measurements of financial instruments.

Financial liabilities at fair value through profit or loss.

	2025
	Derivatives – convertible bonds
Opening balance	$ -
Issued during the year	22,600
Recognized in profit or loss (included in other gains and losses)	4,200
Ending balance	$ 26,800

IV. Valuation techniques and inputs used in Level 3 fair value measurements.

Derivatives – embedded redemption and put/call options of convertible bonds are measured using a binomial tree model to estimate fair value. The significant unobservable input used in the valuation is the stock price volatility.

An increase in stock price volatility would result in an increase in the fair value of these derivatives

(III) Types of financial instruments

	December 31, 2025	December 31, 2024
Financial assets
Financial assets measured at amortized cost (Note	$ 2,592,746	$ 3,133,897

59 -

1)
Financial liabilities

Financial liabilities at fair value through profit or loss	26,800	-
Measured at amortized cost (Note 2)	5,307,161	4,356,712

Note 1: The balance included financial assets measured at amortized cost, such as cash and cash equivalents, Financial assets measured at amortized cost - current, accounts receivable (including related parties), other receivables (including related parties) 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 (including related parties) and deposits received.

(IV) Purposes and policies of financial risk management

Our primary financial instruments include cash and cash equivalents, accounts receivable and accounts and loans payable. Our financial management department 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 our operations 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.

Market risks

The risks of change in foreign exchange rates (see (1) below) and in interest rates (see (2) below) are the major financial risks we bear as a result of our operating activities.

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

(1) Exchange rate risk

We engage in transactions of the sale and purchase of goods denominated in foreign currencies, exposing us to the risk of

change in foreign exchange rates.

For the carrying amounts of our monetary assets and liabilities denominated in non-functional currencies on the balance sheet date, see Note 31.

Sensitivity analysis

We are affected primarily by fluctuations in the exchange rates of USD and RMB.

The following table describes in detail our sensitivity analysis in the event where the exchange rate of NTD (our functional currency) to each foreign currency increases or decreases by 1%. 1% is the sensitivity rate used in an internal report to our primary management regarding exchange rate risk, and also represents the range of reasonable possible change in foreign exchange rates as assessed by our management. The positive number in the following table means the amount of increase in the pre-tax net profit when NTD depreciates by 1% against each foreign currency. When NTD 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	( $ 6,460 )		( $ 2,199 )
RMB	( 48 )		1,419

(2) Interest rate risk

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

The carrying amounts of the financial assets and liabilities of HEC 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	$ 393,209	$ 298,335

Financial liabilities

1,040,760

925,000

Our assessment has indicated no significant fair value risk with regard to the time deposits at banks with fixed interest rate, bonds with conditions for repurchase, short-term loans, payable and lease liabilities held by us.

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 our primary management regarding interest rate, and also represents the range of reasonable possible change in interest rate as assessed by its management.

If interest rates increase by 1%, with all other variables held constant, the Company's loss before tax for the year ended 2025 would increase by NT$6,476 thousand, and profit before tax for the year ended 2024 would decrease by NT$6,267 thousand. This is mainly due to the 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 us as a result of a delay by the counterparty in fulfilling contractual obligations. The greatest credit risk exposure of financial losses we are likely to incur as of the balance sheet date due to failure of the counterparty to fulfill its obligations and our provision of financial guarantees include:

(1) The carrying amount of financial assets recognized in the parent-only balance sheet.

(2) The highest amount we may need to pay in providing financial guarantees, regardless of the likelihood of its occurrence.

The balances of accounts receivable from customers with a significant concentration of credit risk.

	December 31, 2025		December 31, 2024
	Amount	%	Amount	%
Company A	$ 668,598	52	$ 664,771	46
Company B	77,700	6	243,882	17

3. Liquidity risk

The Company manages and maintains sufficient cash and cash equivalents to meet its operating needs and mitigate the impact of cash flow fluctuations. Management monitors the utilization of bank credit facilities and ensures compliance with loan covenants.

As of December 31, 2025, the Company’s current liabilities exceeded its current assets by NT$867,378 thousand. The shortage in working capital can be covered by unused credit facilities from financial institutions. Accordingly, the Company is not exposed to liquidity risk arising from an inability to obtain funds to fulfill its contractual obligations.

Bank loans are an important source of liquidity for us. For our undisbursed financing amounts, see the description in “(2) 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 we are 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 we are 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.

62 -

December 31, 2025

	Within 3 months	3 to 6 months	Over 6 months
Non-derivative financial liabilities
Non-interest-bearing liabilities	$ 2,397,398	$ -	$ 491
Lease liabilities	277	277	4,224
Instruments with floating interest rate	1,041,145	-	-
Instruments with fixed interest rate	-	-	2,015,075
	$ 3,438,820	$ 277	$ 2,019,790

December 31, 2024

	Within 3 months	3 to 6 months	Over 6 months
Non-derivative financial liabilities
Non-interest-bearing liabilities	$ 2,540,221	$ -	$ 491
Lease liabilities	264	264	5,306
Instruments with floating interest rate	328,463	541,438	60,258
Instruments with fixed interest rate	892,486	-	-
	$ 3,761,434	$ 541,702	$ 66,055

(2) Financing limit

	December 31, 2025	December 31, 2024
Limit of credit loan
Disbursed amount	$ 1,044,260	$ 1,719,500
Undisbursed amount	4,766,500	2,250,500
	$ 5,810,760	$ 3,970,000
Limit of mortgage loan
Disbursed amount	$ -	$ 100,000
Undisbursed amount	200,000	100,000
	$ 200,000	$ 200,000

XXX. Related party transactions

The following are transactions between HEC and related parties:

(I) Names of related parties and their relationship with HEC

Name of related party	Relationship with HEC
WII	Subsidiary
GSG	Subsidiary
Global Treasure Holdings Co., Limited(GTH)	Subsidiary
True Voice Int’l Inc. Limited (TVHK)	Subsidiary
Wei Shuo Electronics (Shen Zhen) Co., Ltd. (WSE)	Subsidiary
Wei Chang Xing Electronics (Shen Zhen) Co., Ltd. (WCX)	Subsidiary
Wei Yu International Trading (Shenzhen) Co., Ltd. (WYT)	Subsidiary
Anyuan Weijia Electronic Co., Ltd. (WJA)	Subsidiary
Anyuan Weichangfeng Electronic Co., Ltd. (WCF)	Subsidiary
UCC	Subsidiary
JCC	Subsidiary
KCC	Subsidiary
FCC	Subsidiary
LFE	Subsidiary
Loyalty Founder Enterprise Company (D.G) Ltd. (LFDG)	Subsidiary
OPT	Subsidiary
廣東峰德機械有限公司 (FD)	Subsidiary

(II) Operating revenue

Account item	Type of related party	2025	2024
Sales revenue	Subsidiary	$ 247,618	$ 147,804

In terms of our sales to a related party and regular sales, there is no comparable sales price of any product of the same category. The loan period for a related party is approximately 3-4 months with payment received based on the overall funding condition, while the loan period for a regular customer is approximately 1-3 months.

(III) Purchase

Type/Name of related party	2025	2024
Subsidiary
WSE	$ 4,166,938	$ 3,164,155
LFDG	1,070,405	1,016,502
Others	51,822	138,008
	$ 5,289,165	$ 4,318,665

In terms of our purchase from a related party and regular purchases, there is no comparable price for any product of the same category. The payment period for

a related party is 3 months on a basis of monthly settlement, with payment paid based on the overall funding condition, while the payment period for a regular supplier is approximately 2-3 months.

(IV) Payments receivable from related parties (excluding loans to related parties)

Account item	Type/Name of related party	December 31, 2025	December 31, 2024
Accounts receivable – related parties	Subsidiary	$ 72,127	$ 44,373
Other receivables – related parties	Subsidiary	$ 3,899	$ 3,264

Payments receivable from related parties are unsecured and non-interest-bearing, with no loss allowance set aside.

(V) Payments payable to related parties (excluding loans from related parties)

Account item	Type/Name of related party	December 31, 2025	December 31, 2024
Accounts payable – related parties	Subsidiary
	WSE	$1,511,635	$1,225,089
	LFDG	461,512	540,222
	Others	23,539	42,656
		$1,996,686	$1,807,967
Other payables – related parties	Subsidiary	$ 6,800	$ 12,198

The outstanding balance of payments payable to related parties is not secured.

(VI) Rental agreement

Lease revenue

Type/Name of related party	2025	2024
Subsidiary
LFE	$ 229	$ 229
FCC	48	286
	$ 277	$ 515
Type/Name of related party	December 31, 2025	December 31, 2024
Contract liabilities
Subsidiary	$ -	$ 48

For the lease of our office to a related party, the rent is agreed with reference to the market price and will be prepaid semiannually and paid on a monthly basis.

(VII) Loans to related parties – other receivables – related parties

66 -

Type/Name of related party	December 31, 2025	December 31, 2024
Subsidiary
TVHK	$ 47,145	$ -
Type/Name of related party	2025	2024
Interest income
Subsidiary
GHT	$ 4,604	$ -
TVHK	117	-
UCC	-	641
	$ 4,721	$ 641

The Company provided unsecured loans to its subsidiaries, which bore interest at rates ranging from 2.9% to 3.9% and 2.9% to 3.12% for the years ended 2025 and 2024, respectively.

(VIII) Loans from related parties – other payables – related parties

Type/Name of related party	December 31, 2025	December 31, 2024
Subsidiary
WII	$ -	$ 199,005
Type/Name of related party	2025	2024
Interest expense
Subsidiary	$ -	$ 1,252

The Company’s borrowings from subsidiaries are unsecured. Except for borrowings from Fuhwa Company, which bore interest at annual rates ranging from 1.525% to 1.86% in 2024, the remaining borrowings were non-interest-bearing.

(IX) Endorsements/Guarantees

The following are the limits of guarantees provided by us to related parties:

Type/Name of related party	December 31, 2025	December 31, 2024
Subsidiary
TVHK	$ 3,143,000	$ -
LFDG	-	163,925
FD	-	89,560
	$ 3,143,000	$ 253,485

The actual amounts disbursed on December 31, 2025 and 2024 were not

utilized.

(X) Other related party transactions

Type/Name of related party	2025	2024
Revenue from service support
Subsidiary
LFE	$ 14,390	$ 13,701
OPT	3,366	3,123
TVHK	974	-
Others	661	676
	$ 19,391	$ 17,500

(XI) Remuneration for key management

	2025	2024
Short-term employee benefits	$ 45,655	$ 70,596
Post-employment benefits	396	348
Share-based payment	39	48
	$ 46,090	$ 70,992

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

XXXI. Pledged and mortgaged assets

The following assets have been provided to financial institutions as collateral for our consolidated credit line:

Financial assets measured at amortized cost – current	December 31, 2025	December 31, 2024
	$ -	$ 180,318

XXXII. Material contingent liabilities and unrecognized contractual commitments

The following are the material commitments and contingencies of the company on the balance sheet date :

(I) ASCION, LLC dba REVERIE ("ASCION") filed a commercial arbitration claim with the American Arbitration Association in 2021 against the Company's subsidiary, OPT, seeking damages for alleged product defects and shipment delays. In the same year, OPT also filed an arbitration claim 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 Funai Electric Co., Ltd.

On July 30, 2025, the arbitral tribunal rendered an award ordering OPT to pay ASCION US$27,000 thousand in damages. On October 30, 2025, the tribunal rejected ASCION’s request for interim relief and reserved the determination of interest and each party’s entitlement to attorneys’ fees and related costs to the final award.

On February 17, 2026, the arbitral tribunal issued the final award, ordering OPT to further pay ASCION, Xienci Leads Inc., and Dah Sheng International Co., Ltd. attorneys’ fees and related legal costs incurred in connection with the arbitration, amounting to US$17,446 thousand, together with interest until the date of payment. OPT has recognized the related litigation provision (including interest accrued as of 2025 year-end) in the amount of US$46,574 thousand.

OPT has also filed a motion with the U.S. Federal District Court for the District of Michigan to set aside the arbitration award, arguing that the arbitrator exceeded authority and violated due process, and that the Company did not participate in the arbitration proceedings, among other grounds. As of the date of issuance of these parent company only financial statements, the outcome of the motion is still pending judicial review.

Based on the assessment of external legal counsel engaged by the Company, there is a relatively high likelihood that the arbitration award will be vacated or modified with respect to references involving the Company. Management believes that the case is not expected to have a material adverse impact on the Company.

(II) As of December 31, 2025 and 2024, the import guarantee issued by banks on behalf of the Company amounted to NT$3,500 thousand for both years.

XXXIII. Significant events after the reporting period

In October 2025, the Company’s subsidiary LFDG Co., Ltd. experienced a fire incident, which resulted in damage to certain inventories stored in its factory premises. The loss amounted to NT$21,370 thousand and was recognized under other gains and losses.

The related insurance claim is currently in process. Insurance compensation will be recognized only when its collectability becomes virtually certain.

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

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

Unit: (Foreign currency)/NTD thousand

December 31, 2025

Foreign currency assets	Foreign currency	Exchange rate	Carrying amount
Monetary item
USD	$ 51,103	31.43	$ 1,606,155
		( USD : NTD )
RMB	101	4.496	454
		( RMB : NTD )
Non-monetary item
Subsidiaries accounted for using the equity method
USD	149,945	31.43	4,712,758
		( USD : NTD )
Foreign currency liabilities
Monetary item
USD	71,656	31.43	2,252,135
		( USD : NTD )
RMB	1,157	4.496	5,204
		( RMB : NTD )

December 31, 2024

Foreign currency assets	Foreign currency	Exchange rate	Carrying amount
Monetary item
USD	$ 67,007	32.785	$ 2,196,824
		( USD : NTD )
RMB	33,571	4.478	150,333
		( RMB : NTD )
Non-monetary item
Subsidiaries accounted for using the equity method
USD	$ 79,115	32.785	$ 2,593,789
		( USD : NTD )

Foreign currency liabilities

Monetary item
USD	73,720	32.785	2,416,759
		( USD : NTD )
RMB	1,873	4.478	8,387
		( RMB : NTD )

For the years ended 2025 and 2024, the Company’s foreign exchange gains (both realized and unrealized) amounted to NT$14,145 thousand and NT$27,935 thousand, respectively. Due to the large variety of foreign currency transactions, it is not practicable to disclose foreign exchange gains and losses by each significant foreign currency.

XXXV. Note disclosures

(I) Information of material transactions:
1. Loans to others: Table 1.
2. Endorsements and guarantees provided: Table 2.
3. Significant securities held at period end (excluding investments in subsidiaries and associates): Table 3.
4. Purchases and sales with related parties exceeding NT$100 million or 20% of paid-in capital: Table 4.
5. Receivables from related parties exceeding NT$100 million or 20% of paid-in capital: Table 5.

(II) Information of investee companies: See 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

70 -

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 8.

(2) The amount and percentage of sales, and the ending balance and percentage of the relevant payments receivable: Table 8.

(3) The amount of property transactions and the resulting amount of profits/losses: None.

(4) The ending balance and purposes of note endorsements/guarantees 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 significant effect on current profits/losses or the financial conditions, such as the rendering or receiving of services: None.

71 -

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 to be paid	C o l l a t e r o			Limit of loan to individual borrower	Total limit of loans
													S	m	II
0	HEC	UCC	ther neutraltio related parties	YES	$ 16,605	$ -	$ -	5.12	(1)	$ -	Operational financing	$ -	-	$ -	$ -	$ (Note2)	$ 1,494,658
		UCC	"	"	16,605	-	-	3.12	(2)	-	Operational financing	-	-	-	-	996,438	996,438
		UCC	"	"	31,430	31,430	-	3.5	(2)	-	Operational financing	-	-	-	-	996,438	996,438
		OPT	"	"	99,615	-	-	5.27~4.238	(2)	-	Operational financing	-	-	-	-	996,438	996,438
		OPT	"	"	30,730	-	-	4.63~3.33	(2)	-	Operational financing	-	-	-	-	996,438	996,438
		OTH	"	"	1,075,320	-	-	2.9	(2)	-	Operational financing	-	-	-	-	996,438	996,438
		AIP	"	"	942,900	942,900	-	3.9	(2)	-	Operational financing	-	-	-	-	996,438	996,438
		TYHK	"	"	47,145	47,145	47,145	3.9	(2)	-	Operational financing	-	-	-	-	996,438	996,438
		WSE	"	"	228,650	-	-	-	(2)	-	Operational financing	-	-	-	-	1,010,010	1,010,010
		WSE	"	"	224,800	224,800	107,904	-	(2)	-	Operational financing	-	-	-	-	1,010,010	1,010,010
		HEC	"	"	109,577	105,719	-	-	(2)	-	Operational financing	-	-	-	-	330,360	330,360
		HEC	"	"	99,615	-	-	-	(2)	-	Operational financing	-	-	-	-	330,360	330,360
OTH	"	"	88,004	88,004	4,557	-	(2)	-	Operational financing	-	-	-	-	330,360	330,360
OPT	"	"	157,150	157,150	146,935	4.17	(2)	-	Operational financing	-	-	-	-	330,360	330,360
3	WJA	WCF	"	"	137,190	-	-	-	(2)	-	Operational financing	-	-	-	40,302	40,302
		WSE	"	"	274,380	-	-	-	(2)	-	Operational financing	-	-	-	40,302	40,302
		APE	HEC	"	90,000	-	-	1.8~2.117	(2)	-	Operational financing	-	-	-	-	961,038	961,038
5	GPH	TYHK	"	"	267,155	267,155	-	3.9	(2)	-	Operational financing	-	-	-	812,151	812,151
		TYHK	"	"	64,432	64,432	11,312	-	(1)	68,366	Operational financing	-	-	-	68,366	1,877,142
6	DGPY	TYHK	"	"	77,151	77,151	-	-	(2)	-	Operational financing	-	-	-	77,151	77,151
		TYHK	"	"	64,432	64,432	11,312	-	(1)	68,366	Operational financing	-	-	-	68,366	1,877,142
7	AHPY	DGPY	"	"	77,151	77,151	-	-	(2)	-	Operational financing	-	-	-	77,151	77,151
		TYHK	"	"	64,432	64,432	11,312	-	(1)	68,366	Operational financing	-	-	-	68,366	1,877,142
8	YNJH	KSPY	"	"	47,1450	47,1450	229,874	-	(1)	720,498	Operational financing	-	-	-	720,498	5,188,238
		TYL	"	"	974,267	974,267	974,240	-	(2)	-	Operational financing	-	-	-	720,4119	2,594,119
9	KPY	KPY	"	"	2,366,995	2,366,995	2,366,933	-	(2)	-	Operational financing	-	-	-	2,394,119	2,594,119
		KPY	"	"	2,366,995	2,366,995	2,4,558	-	(2)	-	Operational financing	-	-	-	2,394,119	2,594,119
10	KPY	TYHK	"	"	36,402	36,402	24,558	-	(2)	-	Operational financing	-	-	-	40,700	416,350
		TYL	"	"	36,402	36,402	2,46,700	-	(2)	-	Operational financing	-	-	-	40,700	416,350

Note 1: Number "0" in the numbering column refers to the issuer. Investor companies are numbered consecutively starting from Arabic numeral "1" by company.
Note 2: For companies having business transactions with the Company, the amount of individual loans shall not exceed the amount of business transactions between the parties in the most recent fiscal year; the total amount of loans shall not exceed $68\%$ of the lender's net worth.
Note 3: For companies or firms requiring short-term financing, the amount of individual loans shall not exceed $48\%$ of the lender's net worth; the total amount of loans shall not exceed $48\%$ of the lender's net worth.
Note 4: For the Company's parent company and foreign companies directly or indirectly wholly owned (188% voting shares held) by the parent company that have business transactions or short-term financing needs, the amount of individual loans shall not exceed $100\%$ of the company's net worth; the total amount of loans shall not exceed $100\%$ of the company's net worth.
Note 5: For companies having business transactions with the Company, the amount of individual loans shall not exceed the amount of business transactions between the parties in the most recent fiscal year; the total amount of loans shall not exceed $280\%$ of the lender's net worth.
Note 6:(1) Business transactions exist. (2) There is a need for short-term financing.
Note 7: Eliminated upon preparation of the consolidated financial statements.
Note 8: The portion of the Company's total loan amount exceeding the prescribed limit was submitted to the Audit Committee together with an improvement plan in October 2025.

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
		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	-
		TVHK	(1)	$ 3,736,644
(Note 1)	3,143,000	3,143,000	-	-	126.17	4,982,192
(Note 2)	Y	N	N	-
1	GTH	HEC	(2)	3,354,126
(Note 3)	1,054,800	-	-	-	-	4,472,168
(Note 4)	N	Y	N	-
2	LFE	LFDG	(1)	1,561,686
(Note 5)	461,214	461,214	943	-	19.20	1,922,075
(Note 6)	Y	N	Y	-
3	AHPY	TVHK	(2)	5,019,800
(Note 7)	3,771,600	3,771,600	3,457,300	39,604	1,502.69	9,385,710
(Note 8)	N	Y	N	-
4	DGPY	TVHK	(2)	9,385,710
(Note 8)	3,771,600	3,771,600	3,457,300	-	401.84	7,938,300
(Note 9)	N	Y	N	-
5	KSPY	TVHK	(2)	7,938,300
(Note 9)	$ 166,025	3,771,600	3,457,300	-	7,126.71	$ 4,982,192
(Note 2)	Y	N	Y	-

Note 1: The limit for endorsements/guarantees provided to a single enterprise is 150% of the Company's net equity.

Note 2: The maximum aggregate limit for endorsements/guarantees is 200% of the Company's net equity.

Note 3: The limit for endorsements/guarantees provided to a single enterprise is 150% of Universal Hongfu's net equity.

Note 4: The maximum aggregate limit for endorsements/guarantees is 200% of Universal Hongfu's net equity.

Note 5: The limit for endorsements/guarantees provided to a single enterprise is 65% of Fuhwa Company's most recent financial statements' net worth.

Note 6: The total limit for endorsements/guarantees is set at 80% of Fuhwa Company's net worth as stated in its most recent financial statements.

Note 7: The limit for endorsements/guarantees provided to a single enterprise and the maximum aggregate limit are both set at 2,000% of AHPY's net worth as stated in its most recent financial statements.

Note 8: The limit for endorsements/guarantees provided to a single enterprise and the maximum aggregate limit are both set at 1,000% of DGPY's net worth as stated in its most recent financial statements.

Note 9: The limit for endorsements/guarantees provided to a single enterprise and the maximum aggregate limit are both set at 15,000% of KSPY's net worth as stated in its most recent financial statements.

Note 10: The relationships between the guarantor and the guaranteed entities are as follows:

(1) Companies in which the Company directly and indirectly holds more than 50% of the voting shares.

(2) Companies that directly and indirectly hold more than 50% of the Company's voting shares.

73 -

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 subsidiaries	Financial assets measured at fair value through other comprehensive income – non-current	-	$3,411,254	-	$3,411,254	Note

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

74 -

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	-

75 -

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. Other receivables are excluded from the calculation of turnover rate.
Note 2: Includes accounts receivable of NTS365,584 thousand and other receivables of NT$842 thousand. Other receivables are excluded from the calculation of turnover rate.
Note 3: Includes accounts receivable of NT$1,511,635 thousand and other receivables of NT$425 thousand. Other receivables are excluded from the calculation of turnover rate.
Note 4: Includes accounts receivable of NT$140,415 thousand and other receivables of NT$188 thousand. Other receivables are excluded from the calculation of turnover rate
Note 5: Includes loans to others of NT$58,007 thousand and accounts receivable of NT$119,354 thousand. Loans to others are excluded from the calculation of turnover rate.
Note 6: Includes loans to others of NT$1,376,161 thousand and accounts receivable of NT$746,192 thousand. Loans to others are excluded from the calculation of turnover rate.
Note 7: Includes loans to others of NT$229,874 thousand and accounts receivable of NT$407,599 thousand. Loans to others are excluded from the calculation of turnover rate.
Note 8: Represents the amount of loans to others; therefore, turnover rate calculation is not applicable.
Note 9: Eliminated upon preparation of the consolidated financial statements.

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
HBC	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	General investments	(USD 6,800,000)	(USD 6,800,000)	1,865,380	100	1,457,516	225,863
GHT	Hong Kong	Investee company	(USD 1,296,013)	-	36,000,000	80.99	2,099,926	(33,598)
FCC	Taiwan	Sales of computer components	(USD 1,800)	1,800	180,000	60	8,067	4,464
UCC	California, U.S.	Sales of computer components	(USD 36,416)	50,416	14,150	100	21,318	(6,743)
KCC	South Korea	Sales of computer components	(USD 1,567,075)	(USD 1,567,075)	748,800	100	147	-
JCC	Japan	Sales of computer components	(USD 13,644)	13,644	200	100	68,739	6,156
OPT	Taiwan	Manufacturing and sales of medical devices and equipment	(USD 393,063)	(JPY 393,063)	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
GHT	Hong Kong	Investee company	(USD 8,450,000)	(USD 8,450,000)	8,450,000	19.01	136,158	(33,598)
GSG	GHP	Hong Kong	Investee company	(USD 12,100,000)	(USD 12,100,000)	100	812,151	15,765
LFE	Assion	Texas, U.S.	Sales of computer components	(USD 43,342)	43,342	354	100	34,264
Assion Mexico.	Mexico	Sales of computer components	(USD 1,078,206)	(USD 1,078,206)	99,000	99	2,043	(16)
L.F.KY	Cayman Islands	General investments	(USD 99,000)	(USD 99,000)	37,030,000	100	2,367,817	143,482
Super Laser Precision Machinery Ltd.	Samoa	General investments	(USD 37,030,000)	(USD 36,270,000)	1,260,000	47.64	28,819	2,027
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	(1,612,497)
L.F.KY	LFE HK	Hong Kong	Sales of computer components	(USD 1,46,185)	1,116,405	296,049,087	100	2,370,093
OPT	Global Star	Hong Kong	Investee company	(USD 37,946,466)	(USD 36,946,466)	6,700,000	100	291,674
Global Star	Harmonic Star	Samoa	General investments	(USD 6,700,000)	(USD 6,700,000)	6,700,000	100	291,740
AIP	TVL	Cayman Islands	General investments	(USD 1,522)	-	50,000	100	2,852,570
KPY	TVHK	Hong Kong	General investment and international trade	(USD 304,450)	-	1,010,000	100	2,594,119
TVHK	U-SONICS	Malaysia	Diaphragm and spider manufacturing	(USD 8,074,665)	-	6,000,000	100	248,487
VNPY	Vietnam	Voice coil and diaphragm manufacturing	(USD 3,000,000)	-	-	100	2,412,598	459,990
USPY	United States	Voice coil and diaphragm manufacturing	(USD 1,020,000)	-	-	1,020,000	85	38,314

Note 1: For information relating to investee companies in Mainland China, please refer to Schedule 7..
Note 2 : Only the profit or loss amounts of each subsidiary directly invested in and recognized by the Company are disclosed; the remaining information is omitted.
Note 3 : The difference represents the investment loss difference of NTS247,476 thousand recognized by the Company, as its interest in Liwei Company held through Fu Hua Company is deemed a subsidiary.

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 invoice company in Mainland China	Scope of primary business	Paid-in capital (Note 4)	Form of investment (Note 1)	Cumulative amount of investments remitted from Taiwan at beginning of the current period (Note 4)	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 invoices 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	$ (USD 1,800,000)	$ -	$ -	$ 36,574 (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	-	-	-	-	4,705	100	4,705 (Note 2)	37,420	38,713
DWC	Production of power supplies and computer parts and accessories	36,574 (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 (Zhongzhan) 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) Har monic 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	-
RSPY	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	-
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	37,061 (Note 2)	250,990	-
RK	Nylon filament manufacturing	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, MOKA	Limit on the amount of investments in Mainland China required by the Investment Commission, MOKA (Note 5)
HEC	$ 901,334 (Note 3)
(USD 28,677,505)	$ 1,116,567 (Note 3)
(USD 35,525,505)	$ 2,052,161
OPT	210,381 (Note 3)
(USD 6,700,000)	210,381 (Note 3)
(USD 6,700,000)	-

Note 1:

Note1: It is sufficient to indicate only the number of one of the following three forms of investment:

(1) Direct investment in Mainland China.

(2) Reinvestment in Mainland China through a third-country company (please specify the investing company in the third country).

(3) Other methods (direct investment by Weichangxing Electronics)

(4) Other methods (direct investment by Dongguan Boyun).

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

Note 3: Related amounts are translated using the exchange rates of NT$31.43 per US$1 and NT$4.496 per RMB1 as of the balance sheet date.

Note 4: Calculation of the investment ceiling for investment in Mainland China is as follows: The Company: 3,420,268 = 60% = 2,052,161 Li Wei Company: 0 = 60% = 0.

Note 5: Includes reinvestment of prior-year earnings and self-owned funds of Weichangxing Electronics and Weichun Computer (Shenzhen) Co., Ltd. (which was merged into Weichangxing Electronics on September 1, 1999, and approved by the Investment Commission on April 6, 2000) totaling USD 10,200,000. In 2021, Weichangxing Electronics reduced capital and remitted USD 8,000,000, of which USD 3,000,000 has been remitted back to Taiwan and reported to the Investment Commission:

Note 6: I Weishuo Electronics is a downstream reinvestment by the Company's overseas subsidiary Dasheng Group. In 2008, Weishuo Electronics capitalized retained earnings of USD 2,000,000.

Note 7: Weiyu International is reinvested by the Company's overseas subsidiary Fengquan Group using its own funds. Due to organizational restructuring, Fengquan Group sold its shares in Weiyu International to Global Hongfu.

Note 8: Taikang Precision (Zhongshan) Co., Ltd. was reinvested by Weixun International, an overseas subsidiary of the Company, through Super Elite Ltd. using its own funds. In 2010, Weixun International disposed of all its shares. The transaction was approved by the Investment Commission on June 28, 2010. However, since the proceeds had not yet been remitted back to Taiwan, the approved investment amount remained unchanged.

Note 9: Weishengfeng Technology is reinvested by Dasheng Group, an overseas subsidiary of the Company, using its own funds.

Note 10: Weiqiao Electronics is reinvested by Dasheng Group, an overseas subsidiary of the Company, through Global Hengfeng using its own funds.

Note 11: Anyuan Weijia was established through a resolution of dividend distribution of USD 5,000,000 by Weishuo Electronics and reinvested via Global Hengfeng. An additional USD 5,000,000 was reinvested by Dasheng Group using its own funds. In 2025, Anyuan Weijia reduced capital and remitted USD 9,000 thousand, which has not yet been remitted back to Taiwan.

Note 12: Held by Fuhua Company. The cumulative investment remitted from Taiwan amounted to NT$1,159,641 thousand (USD 36,895,978), while the approved investment amount by the Investment Commission was NT$1,600,604 thousand (USD 50,926,000). However, Fuhua Company obtained a certificate for its operational headquarters, under which there is no ceiling on investment in Mainland China. 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: Held by Li Wei Company. Established in June 2017 through Harmonic Star with an investment of USD 4,000,000. Additional capital increases of USD 700,000 in March 2021 and USD 2,000,000 in June 2020 were made through Harmonic Star, all of which have been approved by the Investment Commission..

Note 14: Weichangfeng Electronics was established by Weichangxing Electronics, a Mainland China subsidiary of the Company, using RMB 50,000,000 of its own funds. In November 2023, Global Hongfu further increased capital by RMB 7,172,800 using its own funds

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

Note 16: Dividends repatriated in 2025 by Weichangfeng Electronics, Weichangxing Electronics, Weiyu International, Weishengfeng Technology, Weiqiao Electronics, and Anyuan Weijia amounted to RMB 23,000 thousand, 70,114 thousand, 9,000 thousand, 16,000 thousand, 11,000 thousand, and 27,296 thousand, respectively.

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, 2025

(All amounts are in NTD thousand unless otherwise specified)

Table 8

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) (%)	Loan period			Balance (Note)		Share of total notes or accounts receivable (payable) (%)
							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
	DGPY	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
DGPY	opt	Subsidiary	(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	DGPY	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 3 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 3 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 3 months after settlement for each month and depending on the overall funding condition.	No comparable transaction	Same	4,816	1	-
	DGPY	Brother corporation	(Sales)	(3,399)	-	Payment is made 3 months after settlement for each month and depending on the overall funding condition.	No comparable transaction	Same	1,628	-	-
	DGPY	Brother corporation	Purchase	217,127	28	Payment is made 3 months after settlement for each month and depending on the overall funding condition.	No comparable transaction	Same	(177,361)	23	-

Compucase Enterprise Co., Ltd. And Subsidiaries

Statement of changes in property, plant and equipment

For the Years Ended December 31, 2025 and 2024

(All amounts are in NTD thousand)

Table 9

	Land	Premises and buildings	Machine/ Equipment	Transport equipment	Office equipment	Other equipment	Property under construction	Total
Cost
Balance on January 1, 2024	$ 146,241	$ 86,948	$ 4,528	$ 4,465	$ 5,536	$ 170,785	$ -	$ 418,503
Increase	-	393	-	-	721	17,112	-	18,226
Disposal	-	-	-	-	-	( 4,488 )	-	( 4,488 )
Balance on December 31, 2024	$ 146,241	$ 87,341	$ 4,528	$ 4,465	$ 6,257	$ 183,409	$ -	$ 432,241
Accumulated depreciation
Balance on January 1, 2024	$ -	$ 72,911	$ 2,584	$ 2,485	$ 4,437	$ 122,812	$ -	$ 205,229
Depreciation expense	-	1,980	338	742	308	22,548	-	25,916
Disposal	-	-	-	-	-	( 4,488 )	-	( 4,488 )
Balance on December 31, 2024	$ -	$ 74,891	$ 2,922	$ 3,227	$ 4,745	$ 140,872	$ -	$ 226,657
Net amount on December 31, 2024	$ 146,241	$ 12,450	$ 1,606	$ 1,238	$ 1,512	$ 42,537	$ -	$ 205,584
Cost
Balance on January 1, 2025	$ 146,241	$ 87,341	$ 4,528	$ 4,465	$ 6,257	$ 183,409	$ -	$ 432,241
Increase	-	1,539	504	3,075	550	22,408	7,148	35,224
Disposal	-	-	-	-	-	( 1,232 )	-	( 1,232 )
Balance on December 31, 2025	$ 146,241	$ 88,880	$ 5,032	$ 7,540	$ 6,807	$ 204,585	$ 7,148	$ 466,233
Accumulated depreciation
Balance on January 1, 2025	$ -	$ 70,919	$ 2,166	$ 2,043	$ 4,412	$ 104,410	$ -	$ 183,950
Depreciation expense	-	1,992	418	742	186	20,596	-	23,934
Disposal	-	-	-	( 300 )	( 161 )	( 2,194 )	-	( 2,655 )
Balance on December 31, 2025	$ -	$ 72,911	$ 2,584	$ 2,485	$ 4,437	$ 122,812	$ -	$ 205,229
Net amount on December 31, 2025	$ 146,241	$ 14,037	$ 1,944	$ 1,980	$ 1,099	$ 47,973	$ -	$ 213,274

81 -

82 -

§TABLE OF CONTENTS OF THE STATEMENT OF IMPORTANT ACCOUNTING ITEMS§

Item	No./Index
Statement of assets, liabilities and equity
Statement of cash and cash equivalents	Statement 1
Statement of financial instruments measured at fair value through profit/loss	Statement 2
Statement of accounts receivable	Statement 3
Statement of other receivables	Statement 4
Statement of inventory	Statement 5
Statement of changes in investments accounted for using the equity method	Statement 6
Statement of changes in property, plant and equipment	Statement 9
Statement of changes in accumulated depreciation of property, plant and equipment	Statement 9
Statement of changes in investment property	Note 14
Statement of changes in accumulated depreciation and impairment of investment property	Note 14
Statement of changes in intangible assets	Note 15
Statement of deferred income tax assets	Note 25
Statement of short-term loans	Statement 7
Statement of accounts payable	Statement 8
Statement of other payables	Note 19
Statement of deferred income tax liabilities	Note 25
Statement of profits/losses
Statement of operating revenue	Statement 9
Statement of operating cost	Statement 10
Statement of operating expense	Statement 11
Statement of net other profits, expenses and losses	Note 24
Statement of financial cost	Note 24
Consolidated statement of employee benefit, depreciation, depletion and amortization expenses occurred in the current period by function	Statement 12

Compucase Enterprise Co., Ltd.
Statement of cash and cash equivalents
December 31, 2025
Statement 1
Unit: NTD thousand
(A foreign currency is in dollar)

Item	Amount
Petty cash	$ 151
Bank deposits
Demand deposits	199,501
Demand deposits in foreign currencies (Note 1)	193,708
	393,209
Cash equivalents
Time deposits at banks	100,000
repurchase agreements (Note 2)	180,000
	280,000
	$ 673,360

Note 1: Including USD6,089,386, EUR24,870, HKD340,659, RMB1,570 and JPY94,366. (translated at USD1 = NTD31.43, EUR 1 = NTD36.90, HKD 1 = NTD4.038, RMB 1 = NTD4.4960 and JPY 1 = NTD0.2008).

Note 2: Maturity is in January 2026, with an annual interest rate of 1.45%.

83 -

Compucase Enterprise Co., Ltd.
Statement of financial instruments measured at fair value through profit/loss
December 31, 2025
Statement 2
Unit: NTD thousand

Item	Annual interest rate(%)	Period	Amount
Time deposits	1.75	114.12.01~115.03.25	$ 74,500
Time deposits	1.75	114.12.01~115.03.25	74,500
Time deposits	1.75	114.12.01~115.03.25	89,400
Time deposits	1.28	114.12.01~115.03.25	30,600
Time deposits	1.28	114.12.01~115.03.25	25,500
Time deposits	1.28	114.12.01~115.03.25	25,500
Time deposits	1.63	114.12.01~115.03.25	100,000
Time deposits	1.63	114.12.01~115.03.25	100,000
			$ 520,000

84 -

Compucase Enterprise Co., Ltd.
Statement of accounts receivable
December 31, 2025
Statement 3
Unit: NTD thousand

Name of customer	Amount
Non-related parties
Company A	$ 668,598
Company B	82,438
Company C	77,700
Others (Note)	373,903
Subtotal	1,202,639
Less: Loss allowance	3,471
Total	$ 1,199,168
Related parties
Compucase Japan Co., Ltd.	$ 46,497
FCC	12,517
UCC	7,451
OPT	4,979
Others (Note)	683
Total	$ 72,127

Note: None of the accounts has a balance exceeding 5% of the balance under this title.

85 -

Compucase Enterprise Co., Ltd.
Statement of other receivables
December 31, 2025
Statement 4
Unit: NTD thousand

Item	Amount
Non-related parties
Sluggish materials	$ 50,414
Safety regulations fees	3,011
Consumption tax refund receivable	3,214
Sample fee	1,905
Interest receivable	970
Others (Note)	12,249
	$ 71,763
Related parties
Loans to affiliates and interest receivable – TVHK	$ 47,262
Receivable support service fees	3,782
	$ 51,044

Note: None of the balances exceeds 5% of the balance under this title.

86 -

Compucase Enterprise Co., Ltd.
Statement of inventory
December 31, 2025
Statement 5
Unit: NTD thousand

Item	Amount
	Cost	Net realizable value (Note)
Goods	$ 67,418	$ 73,499
Finished goods	44,907	65,914
Work in process	22	30
Raw materials	114,519	141,984
	$ 226,866	$ 281,427

Note: For the basis of net realizable value, see Note 4.

87 -

Compucase Enterprise Co., Ltd.

Statement of changes in investments accounted for using the equity method

December 31, 2025

Statement 6

Unit: NTD thousand, unless otherwise specified

	Starting balance		Increase (Decrease) in the current year		Changes in the current year							Ending balance
	Number of shares	Amount	Number of shares	Amount	Profit (Loss) on investments	Actual at profit on defined benefit assets	Accumulated translation adjustment	Earnings distributed	Deferred credit	Share-based payment	Number of shares	Shareholding (%)	Amount	Net market price or equity	Provided as collateral or pledge	Provided as collateral or pledge None
WII	4,500	$ 1,560,837	18,000	$ 107,254	$ 40,657		$ -	($ 76,828)	($ 355,089)	$ -	($ 946,271)	22,500	100	$ 330,560	$ 328,664
GSG	20,000	1,006,813	-	-	23,814		-	14,667	( 241,856 )	-	-	20,000	100	803,438	795,391	"
AIP	-	-	1,865,380	1,266,013	63,527		-	127,976	-	-	-	1,865,380	100	1,457,516	1,619,852	"
GTH	-	-	36,000,000	1,072,541	( 72,052 )		-	153,166	-	-	946,271	36,000,000	80.99	2,099,926	2,099,926	"
FCC	180,000	5,561	-	-	2,678		-	-	( 798 )	626	-	180,000	60	8,067	8,202	"
KCC	748,800	149	-	-	-		-	( 2 )	-	-	-	748,800	100	147	147	"
UCC	14,150	26,139	-	-	( 6,775 )		-	( 1,177 )	-	3,131	-	14,150	100	21,318	19,218	"
JCC	200	66,111	-	-	6,238		-	( 3,087 )	-	( 523 )	-	200	100	68,739	69,087	"
OPT	19,229,750	129,295	-	-	( 1,207,102 )	(tt )	-	( 63 )	-	-	-	19,229,750	59.49	( 1,077,872 )	( 1,077,872 )	"
LFE	74,755,773	1,277,966	-	-	94,608		724	7,574	( 134,560 )	-	-	74,755,773	50.62	1,246,312	1,247,953	"
		4,072,869		2,445,808	( 1,054,407 )		724	222,226	( 732,305 )	3,234	-			4,958,151	$ 5,110,568
Add: Credit balance of investments accounted for using the equity method														1,077,872
		$ 4,072,869		$ 2,445,808	($ 1,054,407 )		$ 724	$ 222,226	($ 732,305 )	$ 3,234	$ -			$ 6,036,023

Note: In addition to the investment loss recognized by the Company based on its shareholding ratio, this also includes an exemption of recognized investment losses amounting to NT$247,476 thousand, arising from the Company's indirect holding in Liwei Company through Fuhua Company, which is deemed a subsidiary.

Compucase Enterprise Co., Ltd.
Statement of short-term loans
December 31, 2025
Statement 7
Unit: NTD thousand, unless otherwise specified

	Amount	Credit date	Date of maturity	Annual interest rate (%)	Financing limit	Mortgaged or secured
Credit loans
Bank of Taiwan	$ 1,040,760	114/7/4	115/1/5	2.7	$ 1,040,760	Pledged time deposit

89 -

Compucase Enterprise Co., Ltd.
Statement of accounts payable
December 31, 2025
Statement 8
Unit: NTD thousand

Vendor name	Amount
Non-related parties
Company A	$ 128,482
Company B	61,455
Company C	12,095
Others (Note)	$ 232,861
Related parties	$ 1,511,635
Wei Shuo Electronics (Shen Zhen) Co., Ltd.	461,512
Loyalty Founder Enterprise Company(D.G) Ltd.	23,539
Others (Note)	$ 1,996,686
	$ 128,482

Note: None of the accounts has a balance exceeding 5% of the balance under this title.

90 -

Compucase Enterprise Co., Ltd.
Statement of operating revenue
2025
Statement 9
Unit: NTD thousand

Item	Quantity (thousand)	Amount
Sales revenue
Computer chassis	675	$ 1,121,461
Power supplies	2,511	4,083,187
Private brands of computer and gaming peripherals	1,175	1,694,657
Others (Note)	1,405	131,024
		7,030,329
Less: Sales return	25	41,187
Sales allowance		67,619
		$ 6,921,523

Note: None of the amounts exceeds 10% of the amount under this title.

91 -

Compucase Enterprise Co., Ltd.
Statement of operating cost
2025
Statement 10
Unit: NTD thousand

Item	Amount
Inventory of goods at beginning of the year	$ 158,577
Plus: Purchase in the current year	4,981,363
Less: Others	8
Inventory at end of the year	21,819
Merchandise COGS	( 67,418)
Sales cost	5,050,695
Raw materials at beginning of the year
Plus: Materials purchased in the current year	87,657
Inventory Overages	1,010,737
Less: Others	781
Raw materials at end of the year	436
Direct consumption of raw materials	9
Direct employees	1,161
Manufacturing expense	114,519
Manufacturing cost	981,488
Work in process at beginning of the year	38,861
Work in process at end of the year	12,570
Plus: Outsourced processing	1,032,919
Inventory Overages	205
Cost of finished goods	( 22)
Finished goods at beginning of the year	628
Finished goods at end of the year	117
Plus: Others	130
Less: Others	35
	1,033,682
Cost of product warranty	36,875
Inventory Overages	( 44,907)
Inventory Write-off	5,563
Cost of sale of raw materials	370
	1,030,843

92 -

Compucase Enterprise Co., Ltd.

Statement of operating expense

2025

Statement 11

Unit: NTD thousand

Item	Marketing expense	Management expense	R&D expense	Expected credit Impairment loss	Total
Salary	$ 74,521	$ 56,597	$ 47,012	$ -	$178,130
Advertising fee	83,557	-	-	-	83,557
Commission expense	70,626	-	-	-	70,626
Export expense	29,980	-	-	-	29,980
Depreciation	23,882	4,024	724	-	28,630
Miscellaneous expenses	15,202	13,694	404	-	29,300
Insurance expense	8,134	3,188	3,724	-	15,046
Service fee	243	16,096	198	-	16,537
Expected credit Impairment loss	-	-	-	( 6,375)	( 6,375)
Others (Note)	21,648	9,111	12,151	-	42,910
	$329,069	$102,886	$ 64,492	($ 6,375)	$490,072

Note: None of the amounts exceeds 5% of the amount under this title.

93 -

Compucase Enterprise Co., Ltd.

Consolidated statement of employee benefit, depreciation and amortization expenses by function

2025 and 2024

Statement 12

Unit: NTD thousand

	2025				2024
Name	Operating costs	Operating expense	Non-operating expenses and losses	Total	Operating costs	Operating expense	Non-operating expenses and losses	Total
Employee benefits
Salary	$ 6,526	$ 178,130	$ -	$ 184,656	$ 7,182	$ 192,481	$ -	$ 199,663
Labor and health insurance premiums	519	12,888	-	13,407	560	12,680	-	13,240
Pension	217	5,914	-	6,131	229	5,439	-	5,668
Remuneration for directors	-	-	-	-	-	25,895	-	25,895
Others	491	11,514	-	12,005	455	9,756	-	10,211
	$ 7,753	$ 208,446	$ -	$ 216,199	$ 8,426	$ 246,251	$ -	$ 254,677
Depreciation	$ 899	$ 28,630	$ -	$ 29,529	$ 1,575	$ 25,323	$ -	$ 26,898
Amortization	6	824	-	830	8	999	-	1,007

Note: The numbers of employees in the current and previous years are 141 and 145 respectively, and the numbers of non-employee directors are 8 and 9 respectively.

(1) The average employee benefit expense in the current year is NTD1,626 thousand ("Total employee benefit expense in the current year - total remuneration for directors" / "Number of employees in the current year - number of non-employee directors"). The average employee benefit expense in the previous year was NTD1,682 thousand ("Total employee benefit expense in the previous year - total remuneration for directors" / "Number of employees in the previous year - number of non-employee directors").

(2) The average employee salary expense in the current year is NTD1,388 thousand ("Total salary expense in the current year" / "Number of employees in the current year - number of non-employee directors"). The average employee salary expense in the previous year was NTD1,468 thousand ("Total salary expense in the previous year" / "Number of employees in the previous year - number of non-employee directors").

(3) The change in adjustment to the average employee salary expense is 5% ("Average employee salary expense in the current year - average employee salary expense in the previous year" / "Average employee salary expense in the previous year").

(4) Our policy is to determine the remuneration for each employee based on personal competencies, the level of his/her contribution to HEC, his/her performance and his/her competitiveness, taking into account the future operating risks of HEC. Article 25-1 of the Articles of Incorporation stipulates that where HEC has a profit in a year, it shall allocate 2% to 10% thereof as the remuneration for employees, which shall be distributed in shares or cash subject to a resolution of the Board of Directors. The recipients of such remuneration may include the employees of affiliated companies who meet certain conditions. The Board of Directors may adopt a resolution to allocate no more than 4% of the amount of the foregoing profit as the remuneration for directors. We have established regulations governing employee performance evaluation. In addition to communicating the relevant business ethics and the systems for employee performance, rewards and penalties, we have included talents, systems and future planning as evaluation indicators, consistent with the key mission of people-oriented corporate sustainable development as a corporate social responsibility, in order to enhance our competitiveness internationally in the future.

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AI assistant

COMPUCASE — Audit Report / Information 2025

52265_rns_2026-06-04_3bc91042-2953-4913-869b-c85a1fac5205.pdf

Compucase Enterprise Co., Ltd.

Standalone Financial Report and CPA's Audit Report 2025 and 2024

Audit opinions

Basis for Opinion

Key Audit Matters

Truthfulness of the recognition of revenues from certain customers

Acquisition of Investment in a Subsidiary

Other Matter

Auditors’ Responsibilities for the Audit of the Standalone Financial Statements

Compucase Enterprise Co., Ltd. and Subsidiaries

Compucase Enterprise Co., Ltd. and Subsidiaries

Compucase Enterprise Co., Ltd. and Subsidiaries

Compucase Enterprise Co., Ltd. and Subsidiaries

IV. Summary of material accounting policies

(I) Statement of compliance

(II) Basis of preparation

Main source of uncertainty of estimates and assumptions – income tax

VI. Cash and cash equivalents

VII. Financial Instruments at Fair Value Through Profit or Loss

VIII. Financial Assets Measured at Amortized Cost

IX. Accounts receivable (including related parties)

XII. Property, plant and equipment

XIII. Lease agreement

XIV. Investment property

Issuer's redemption rights of the bonds

Put option of bondholders (early redemption right)

(2) Domestic Second Unsecured Convertible Bonds

Conversion rights of bondholders

Issuer's redemption rights of the bonds

Put option of bondholders (early redemption right)

XVIII. Accounts payable (including related parties)

XIX. Other payables

XX. Liability provision – current

XXI. Post-employment benefit plans

XXII. Equity

(IV) Special reserves

(V) Other equity

XXVII. Agreement on share-based payment

(I) Transfer treasury shares to employees.

XXVIII. Capital risk management

XXIX. Financial instruments

Sensitivity analysis

(2) Interest rate risk

Sensitivity analysis

2. Credit risk

3. Liquidity risk

XXXIII. Significant events after the reporting period

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

Compucase Enterprise Co., Ltd. And Subsidiaries

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)

Compucase Enterprise Co., Ltd. And Subsidiaries

Compucase Enterprise Co., Ltd. And Subsidiaries

§TABLE OF CONTENTS OF THE STATEMENT OF IMPORTANT ACCOUNTING ITEMS§

More from COMPUCASE

COMPUCASE Audit Report / Information 2025