Chieftek Precision Co., Ltd. — Audit Report / Information 2025

Apr 23, 2026

CHIEFTEK PRECISION CO., LTD. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REPORT DECEMBER 31, 2025 AND 2024

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For the convenience of readers and for information purpose only, the auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors’ report and financial statements shall prevail.

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CHIEFTEK PRECISION CO., LTD. AND SUBSIDIARIES

DECEMBER 31, 2025 AND 2024 CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS’ REPORT

TABLE OF CONTENTS

Contents Page

1.	Cover Page	1
2.	Table of Contents	2 ~ 3
3.	Declaration of Consolidated Financial Statements of Affiliated Enterprises	4
4.	Independent Auditors’ Report	5 ~ 11
5.	Consolidated Balance Sheets	12 ~ 13
6.	Consolidated Statements of Comprehensive Income	14
7.	Consolidated Statements of Changes in Equity	15
8.	Consolidated Statements of Cash Flows	16 ~ 17
9.	Notes to the Consolidated Financial Statements	18 ~ 64
	(1) HISTORY AND ORGANIZATION	18
	(2) THE DATE OF AUTHORIZATION FOR ISSUANCE OF THE	18
	CONSOLIDATED FINANCIAL STATEMENTS AND
	PROCEDURES FOR AUTHORIZATION
	(3) APPLICATION OF NEW STANDARDS, AMENDMENTS AND	18 ~ 19
	INTERPRETATIONS
	(4) SUMMARY OF MATERIAL ACCOUNTING POLICIES	19 ~ 30

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Contents Page

(5)	CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND	30 ~ 31
	KEY SOURCES OF ASSUMPTION UNCERTAINTY
(6)	DETAILS OF SIGNIFICANT ACCOUNTS	31 ~ 52
(7)	RELATED PARTY TRANSACTIONS	53
(8)	PLEDGED ASSETS	53
(9)	SIGNIFICANT CONTINGENT LIABILITIES AND	53 ~ 54
	UNRECOGNIZED CONTRACT COMMITMENTS
(10)	SIGNIFICANT DISASTER LOSS	54
(11)	SIGNIFICANT SUBSEQUENT EVENTS	54
(12)	OTHERS	54 ~ 61
(13)	SUPPLEMENTARY DISCLOSURES	61 ~ 62
(14)	SEGMENT INFORMATION	62 ~ 64

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CHIEFTEK PRECISION CO., LTD. AND SUBSIDIARIES

Declaration of Consolidated Financial Statements of Affiliated Enterprises

For the year ended December 31, 2025, pursuant to Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises, the companies that are required to be included in the consolidated financial statements of affiliates, are the same as those required to be included in the consolidated financial statements under International Financial Reporting Standards 10 “Consolidated Financial Statements”. Relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies. As a result, CHIEFTEK PRECISION CO., LTD. and subsidiaries are not required to prepare consolidated financial statements of affiliates.

Hereby declare,

CHIEFTEK PRECISION CO., LTD.

February 26, 2026

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INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of CHIEFTEK PRECISION CO., LTD.

Opinion

We have audited the accompanying consolidated balance sheets of CHIEFTEK PRECISION CO., LTD. and its subsidiaries (collectively referred herein as the “Group”) as of December 31, 2025 and 2024, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of material accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, International Financial Reporting Interpretations Committee Interpretations, and Standing Interpretations Committee Interpretations that came into effect as endorsed by the Financial Supervisory Commission.

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the Group 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.

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Key audit matters

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

Key audit matters for the Group’s 2025 consolidated financial statements are stated as follows:

Adequacy of allowance for inventory valuation loss

Description

Refer to Note 4(12) for the accounting policy on inventory, Note 5 for the information on accounting estimates and assumption uncertainty in relation to inventory valuation, and Note 6(5) for the details of inventory.

The Group is primarily engaged in the manufacture and sales of linear guides and linear blocks. As the end-users require high-quality performances, there is a risk of inventory devaluation or obsolescence. The Group measures its inventories at the lower of cost and net realizable value. The net realizable value of the Group’s inventories aged over a certain period is calculated based on the historical extent of inventory clearance and degree of price markdown. The allowance for valuation loss mainly arises from individually identified obsolete inventories, and the procedures for such identification involves subjective judgment, which might result in high degree of estimation uncertainty. Considering that the Group’s inventory and the allowance for inventory valuation losses are material to the financial statements, we considered the adequacy of allowance for inventory valuation loss as one of the key audit matters.

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How our audit addressed the matter

We performed the following audit procedures in response to the abovementioned key audit matter:

• A. We obtained an understanding of the Group’s operations and its industry characteristics to assess the reasonableness of the Group’s policies on and procedures for allowance for inventory valuation loss.

• B. We sampled and tested the accuracy and completeness of information in the inventory aging reports, and recalculated to confirm whether the information in the reports were consistent with the Group’s inventory policies.

• C. We sampled and tested the computation of net realizable value of individual inventory items and compared with account records.

Cut-off of operating revenue from export sales

Description

Refer to Note 4(26) for the accounting policy on revenue recognition and Note 6(16) for the details of operating revenue.

The Group sells a variety of linear guides, ball screws and linear modules with a global target market, including Taiwan, Asia, Europe, America and so forth. The customers are numerous and located in different countries and the number of transactions is voluminous. The recognition of operating revenue from export sales requires that the products are delivered to the customer and the customer has full discretion over the products. The determination as to when products are transferred to customers involves manual process and judgement and the transaction amounts are usually material. Thus, we considered the cut-off of operating revenue from export sales as one of the key audit matters.

How our audit addressed the matter

We performed the following audit procedures in response to the abovementioned key audit matter:

• A. We obtained an understanding and assessed the accounting policy on revenue recognition.

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• B. We obtained an understanding and assessed internal control over revenue recognition, tested the effectiveness of internal controls over the shipment of goods and verified the timing of revenue recognition.

• C. We performed cut-off tests on export sales transactions that were completed just before and after the balance sheet date to confirm whether control of goods was indeed transferred to customers for all recognized sales revenues, and that revenues were recorded for the appropriate period.

Other matter - Parent company only financial statements

We have audited and expressed an unmodified opinion on the parent company only financial statements of CHIEFTEK PRECISION CO., LTD. as of and for the years ended December 31, 2025 and 2024.

Responsibilities of management and those charged with governance for the consolidated financial statements

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

In preparing the consolidated financial statements, management is responsible for assessing the Group’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 Group or to cease operations, or has no realistic alternative but to do so.

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

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Auditors’ responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the 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 consolidated financial statements. As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgment and professional skepticism throughout the audit. We also:

• A. Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• B. 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 Group’s internal control.

• C. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• D. 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 Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify

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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 Group to cease to continue as a going concern.

• E. Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• F. Obtain sufficient appropriate audit evidence regarding the consolidated financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

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

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

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From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period 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.

Tien, Chung-Yu

Independent Accountants

Yeh, Fang-Ting

PricewaterhouseCoopers, Taiwan Republic of China February 26, 2026

------------------------------------------------------------------------------------------------------------------------------The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and independent auditors’ report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

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CHIEFTEK PRECISION CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

Assets	Notes 6(1) 6(2) and 8 6(4) 6(4) and 12 6(23) 5 and 6(5) 6(3) 6(6) and 8 6(7) 6(8) 6(23) 6(6)	December 31, 2025 AMOUNT % $ 706,758 17 184,632 5 23,434 1 281,795 7 9,270 - 12,187 - 624,752 15 17,938 - - - 1,860,766 45 66,760 2 1,982,832 49 76,552 2 47,129 1 34,998 1 8,144 - 12,701 - 3,392 - 2,232,508 55 $ 4,093,274 100	December 31, 2024	December 31, 2024
		AMOUNT $ 706,758 184,632 23,434 281,795 9,270 12,187 624,752 17,938 - 1,860,766 66,760 1,982,832 76,552 47,129 34,998 8,144 12,701 3,392 2,232,508 $ 4,093,274	AMOUNT $ 864,632 119,762 18,304 229,826 6,077 11,302 641,086 25,904 26 1,916,919 48,792 1,954,502 81,348 55,161 36,694 51,024 11,786 3,701 2,243,008 $ 4,159,927	%
Current assets 1100 Cash and cash equivalents 1136 Financial assets at amortized cost - current 1150 Notes receivable, net 1170 Accounts receivable, net 1200 Other receivables 1220 Current income tax assets 130X Inventories 1410 Prepayments 1470 Other current assets 11XX Total current assets Non-current assets 1510 Financial assets at fair value through profit or loss - non-current 1600 Property, plant and equipment 1755 Right-of-use assets 1780 Intangible assets 1840 Deferred income tax assets 1915 Prepayments for equipment 1920 Guarantee deposits paid 1990 Other non-current assets 15XX Total non-current assets 1XXX Total assets				21 3 - 6 - - 15 1 -
				46
				1 47 2 2 1 1 - -
				54
				100

(Continued)

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CHIEFTEK PRECISION CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity

December 31, 2025 December 31, 2024 Notes AMOUNT % AMOUNT % 6(9) $ 230,000 5 $ 160,000 4 6(16) 1,557 - 3,259 - 78,837 2 62,338 1 26,917 1 33,036 1 6(10) 120,711 3 118,386 3 6(23) 1,238 - 1,144 - 6(7) 4,209 - 4,134 - 6(11), 8 and 9 285,587 7 295,886 7 749,056 18 678,183 16 6(11), 8 and 9 815,942 20 969,996 23 6(23) 34,224 1 30,423 1 6(7) 78,722 2 82,931 2 6(12) 7,025 - 6,578 - 935,913 23 1,089,928 26 1,684,969 41 1,768,111 42 6(13) 892,619 22 892,619 22 6(14) 446,121 11 446,121 11 6(15) 266,970 7 257,422 6 2,481 - 25,061 1 951,383 23 920,644 22 ( 3,699) - ( 2,481) - 6(13) ( 147,570) ( 4) ( 147,570) ( 4 ) 2,408,305 59 2,391,816 58 9 $ 4,093,274 100 $ 4,159,927 100

Liabilities Current liabilities 2100 Short-term borrowings 2130 Current contract liabilities 2150 Notes payable 2170 Accounts payable 2200 Other payables 2230 Current income tax liabilities 2280 Current lease liabilities 2320 Long-term liabilities, current portion 21XX Total current liabilities Non-current liabilities 2540 Long-term borrowings 2570 Deferred income tax liabilities 2580 Non-current lease liabilities 2640 Non-current net defined benefit liabilities 25XX Total non-current liabilities 2XXX Total liabilities Equity Share capital 3110 Common stock Capital reserves 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings 3400 Other equity interest 3500 Treasury stocks 3XXX Total equity Significant Contingent Liabilities and Unrecognized Contract Commitments 3X2X Total liabilities and equity

The accompanying notes are an integral part of these consolidated financial statements.

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CHIEFTEK PRECISION CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars, except for earnings per share amounts)

Items

Year ended December 31 2025 2024 Notes AMOUNT % AMOUNT % 6(16) $ 1,138,316 100 $ 1,036,581 100 6(5)(7)(12)(21)(2 2) ( 671,765) ( 59) ( 612,422) ( 59) 466,551 41 424,159 41 6(7)(8)(12)(21)(2 2), 7 and 12 ( 117,738) ( 10) ( 105,060) ( 10) ( 156,681) ( 14) ( 147,944) ( 14) ( 84,845) ( 8) ( 75,829) ( 8) ( 1,781) - ( 349) - ( 361,045) ( 32) ( 329,182) ( 32) 105,506 9 94,977 9 6(2)(17) 10,629 1 10,212 1 6(18) 11,819 1 12,115 1 6(3)(19) and 12 17,095 2 25,519 2 6(6)(7)(20) ( 33,849) ( 3) ( 24,868) ( 2) 5,694 1 22,978 2 111,200 10 117,955 11 6(23) ( 31,779) ( 3) ( 24,142) ( 2) $ 79,421 7 $ 93,813 9 6(12) ($ 789) - $ 2,080 - 6(23) 158 - ( 416) - ( 1,218) - 22,580 2 ($ 1,849) - $ 24,244 2 $ 77,572 7 $ 118,057 11 6(24) $ 0.91 $ 1.08 $ 0.91 $ 1.07

4000 Sales revenue 5000 Operating costs 5900 Net operating margin Operating expenses 6100 Selling expenses 6200 General and administrative expenses 6300 Research and development expenses 6450 Expected credit impairment loss 6000 Total operating expenses 6900 Operating profit Non-operating income and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7000 Total non-operating income and expenses 7900 Profit before income tax 7950 Income tax expense 8200 Profit for the year Other comprehensive income (loss) (net) Components of other comprehensive (loss) income that will not be reclassified to profit or loss 8311 Actuarial (loss) gain on defined benefit plans 8349 Income tax related to components of other comprehensive income that will not be reclassified to profit or loss Components of other comprehensive (loss) income that will be reclassified to profit or loss 8361 Financial statements translation differences of foreign operations 8300 Total other comprehensive (loss) income for the year 8500 Total comprehensive income for the year Earnings per share (in dollars) 9750 Basic 9850 Diluted

The accompanying notes are an integral part of these consolidated financial statements.

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CHIEFTEK PRECISION CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

2024 Balance at January 1, 2024 Profit for the year Other comprehensive income for the year Total comprehensive income for the year Appropriations of 2023 earnings: Legal reserve Special reserve Cash dividends Balance at December 31, 2024 2025 Balance at January 1, 2025 Profit for the year Other comprehensive loss for the year Total comprehensive income (loss) for the period Appropriations of 2024 earnings: Legal reserve Reversal of special reserve Cash dividends Balance at December 31, 2025	Notes		Share capital - common stock		Capital reserve			Retained Earnings	Retained Earnings			Other Equity Interest	Treasury stocks		Total equity
							Legal reserve		Special reserve		Unappropriated retained earnings	Financial statements translation differences of foreign operations
	6(15) 6(15)		$ 892,619 - - - - - - $ 892,619 $ 892,619 - - - - - - $ 892,619		$ 446,121 - - - - - - $ 446,121 $ 446,121 - - - - - - $ 446,121		$ 247,879 - - - 9,543 - - $ 257,422 $ 257,422 - - - 9,548 - - $ 266,970	$ 24,491 - - - - 570 - $ 25,061 $ 25,061 - - - - ( 22,580) - $ 2,481		$ 905,089 93,813 1,664 95,477 ( 9,543) ( 570) ( 69,809) $ 920,644 $ 920,644 79,421 ( 631) 78,790 ( 9,548) 22,580 ( 61,083) $ 951,383		($ 25,061 ) - 22,580 22,580 - - - ($ 2,481 ) ($ 2,481 ) - ( 1,218 ) ( 1,218 ) - - - ($ 3,699 )	($ 147,570) - - - - - - ($ 147,570) ($ 147,570) - - - - - - ($ 147,570)	$ 2,343,568 93,813 24,244 118,057 - - ( 69,809 ) $ 2,391,816 $ 2,391,816 79,421 ( 1,849 ) 77,572 - - ( 61,083 ) $ 2,408,305

The accompanying notes are an integral part of these consolidated financial statements.

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CHIEFTEK PRECISION CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustments Adjustments to reconcile profit (loss) (Gain) loss on valuation of financial assets at fair value through profit or loss Expected credit impairment loss Loss on inventory market price decline Depreciation Loss on disposal of property, plant and equipment Amortization Interest income Dividend income Interest expense Changes in operating assets and liabilities Changes in operating assets Notes receivable Accounts receivable Other receivables Inventories Prepayments Other current assets Changes in operating liabilities Current contract liabilities Notes payable Accounts payable Other payables Non-current net defined benefit liabilities Cash inflow generated from operations Interest received Interest paid Dividends received Income tax received Income tax paid Net cash flows from operating activities

Year ended December 31 Notes 2025 2024 $ 111,200 $ 117,955 6(3)(19) ( 17,968 ) 1,208 12 1,781 349 6(5) 7,561 12,545 6(6)(7)(21) 76,878 66,154 6(19) 83 42 6(8)(21) 10,506 10,304 6(17) ( 10,629 ) ( 10,212 ) 6(18) ( 572 ) - 6(20) 33,849 24,868 ( 5,130 ) ( 2,648 ) ( 54,107 ) ( 6,054 ) ( 3,193 ) ( 3,117 ) 8,003 ( 7,452 ) 7,966 31,835 26 ( 26 ) ( 1,702 ) 2,819 12,849 21,788 ( 6,119 ) 15,061 2,389 5,541 ( 342 ) ( 278 ) 173,329 280,682 10,629 10,212 ( 33,869 ) ( 24,685 ) 572 - 7,029 - ( 33,944 ) ( 60,405 ) 123,746 205,804

(Continued)

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CHIEFTEK PRECISION CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM INVESTING ACTIVITIES Increase in financial assets at amortized cost - current Acquisition of financial assets at fair value through profit or loss - non-current Cash paid for acquisition of property, plant and equipment Interest paid for acquisition of property, plant and equipment Acquisition of intangible assets Increase in prepayments for equipment (Increase) decrease in guarantee deposits paid Decrease (increase) in other non-current assets Net cash flows used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase in short-term borrowings Decrease in short-term borrowings Payments of lease liability Increase in long-term borrowings Decrease in long-term borrowings Payments of cash dividends Net cash flows (used in) from financing activities Effect of foreign exchange rate changes on cash and cash equivalents Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

Year ended December 31 Notes 2025 2024 ($ 64,870 ) ($ 87,123 ) - ( 50,000 ) 6(25) ( 46,305 ) ( 50,345 ) 6(6)(20)(25) ( 544 ) ( 7,298 ) 6(8) ( 2,394 ) ( 2,140 ) ( 11,005 ) ( 49,356 ) ( 915 ) 313 309 ( 1,203 ) ( 125,724 ) ( 247,152 ) 6(26) 1,550,000 810,000 6(26) ( 1,480,000 ) ( 1,015,000 ) 6(26) ( 4,134 ) ( 4,061 ) 6(26) 136,950 982,588 6(26) ( 305,324 ) ( 651,008 ) 6(15) ( 61,083 ) ( 69,809 ) ( 163,591 ) 52,710 7,695 19,177 ( 157,874 ) 30,539 6(1) 864,632 834,093 6(1) $ 706,758 $ 864,632

The accompanying notes are an integral part of these consolidated financial statements.

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CHIEFTEK PRECISION CO., LTD. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

1. HISTORY AND ORGANIZATION

• (1) CHIEFTEK PRECISION CO., LTD. (the “Company”) was incorporated on October 19, 1998 as a company limited by shares under the provisions of the Company Act of the Republic of China (R.O.C.) and other related regulations. The Company and its subsidiaries (collectively referred herein as the “Group”) are primarily engaged in the research, development, manufacture and sales of miniature linear guides, miniature ball screws, miniature linear modules, electro-optics equipment and semiconductor process equipment.

• (2) The common stocks of the Company were originally listed on the Taipei Exchange from December 28, 2012, and have been authorized to trade in the Taiwan Stock Exchange since December 23, 2020.

2. THE DATE OF AUTHORIZATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORIZATION

These consolidated financial statements were authorized for issuance by the Board of Directors on February 26, 2026.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS[®] ”) Accounting Standards that came into effect as endorsed by the Financial Supervisory Commission (“FSC”)

New standards, interpretations and amendments endorsed by the FSC and became effective from 2025 are as follows:

Effective date by International Accounting New Standards, Interpretations and Amendments Standards Board (“IASB”) Amendments to IAS 21, ‘Lack of exchangeability’ January 1, 2025

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

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(2) Effect of new issuances of or amendments to IFRS Accounting Standards as endorsed by the FSC but

not yet adopted by the Group

New standards, interpretations and amendments endorsed by the FSC effective from 2026 are as follows:

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New Standards, Interpretations and Amendments Effective date by IASB
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New Standards,InterpretationsandAmendments	Effective date byIASB
Amendments to IFRS 9 and IFRS 7,‘Amendments to the	January 1, 2026
classification and measurement of financial instruments’
Amendments to IFRS 9 and IFRS 7, ‘Contracts referencing nature-	January 1, 2026
dependent electricity’
IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendment to IFRS 17, ‘Initial application of IFRS 17 and IFRS 9 –	January 1, 2023
comparative information’
Annual Improvements to IFRS Accounting Standards – Volume 11	January 1, 2026

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

(3) IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not included in the IFRS Accounting Standards as endorsed by the FSC are as follows:

New Standards, Interpretations and Amendments Effective date by IASB Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets To be determined by IASB between an investor and its associate or joint venture’ IFRS 18, ‘Presentation and disclosure in financial statements’ January 1, 2027 (Note) IFRS 19, ‘Subsidiaries without public accountability: disclosures’ January 1, 2027 Amendments to IAS 21, ‘Translation to a Hyperinflationary January 1, 2027 Presentation Currency’

Note: The FSC has announced in a press release on September 25, 2025 that public companies will apply IFRS 18 starting from the fiscal year 2028. Additionally, entities can choose to adopt IFRS 18 earlier based on their requirements after the FSC endorses IFRS 18.

Except for the following, the above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

IFRS 18, ‘Presentation and disclosure in financial statements’:

IFRS 18 replaces IAS 1. The standard introduces a defined structure of the statement of profit or loss, disclosure requirements related to management-defined performance measures, and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes.

4. SUMMARY OF MATERIAL ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these consolidated financial statements

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are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Statement of compliance

• The consolidated financial statements of the Group have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, International Financial Reporting Standards, International Accounting Standards, IFRIC[®] Interpretations, and SIC[®] Interpretations that came into effect as endorsed by the FSC (collectively referred herein as the “IFRSs”).

(2) Basis of preparation

• A. Except for the following items, the consolidated financial statements have been prepared under the historical cost convention:

• (a) Financial assets at fair value through profit or loss.

• (b) Defined benefit liabilities recognized based on the net amount of pension fund assets less present value of defined benefit obligation.

• B. The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5, ‘Critical accounting judgments, estimates and key sources of assumption uncertainty’.

(3) Basis of consolidation

• A. Basis for preparation of consolidated financial statements:

• (a) All subsidiaries are included in the Group’s consolidated financial statements. Subsidiaries are all entities (including structured entities) controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.

• (b) Inter-company transactions, balances and unrealized gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

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• (c) Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results in the noncontrolling interests having a deficit balance.

• (d) Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity.

• (e) When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognized in profit or loss. All amounts previously recognized in other comprehensive income in relation to the subsidiary are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or losses previously recognized in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

• B. Subsidiaries included in the consolidated financial statements:

Name of investor	Name ofsubsidiary	Business activities	December 31, December 31, 2025 2024 100 100 100 100 100 100 100 100 Ownership (%)	December 31, December 31, 2025 2024 100 100 100 100 100 100 100 100 Ownership (%)	Note
CHIEFTEK PRECISION CO., LTD. (“CHIEFTEK PRECISION”) CHIEFTEK PRECISION CO., LTD. CHIEFTEK PRECISION CO., LTD. CHIEFTEK PRECISION CO., LTD.	CHIEFTEK PRECISION HOLDING CO., LTD. CHIEFTEK PRECISION INTERNATIONAL LLC CHIEFTEK PRECISION USA CO., LTD. (“cpc USA”) cpc Europa GmbH (“cpc Europa”)	Professional investment Lease of real estate property Sales of high precision linear motion components and rendering after-sales service Sales of high precision linear motion components and rendering after-sales service	100 100 100 100	100 100 100 100	- - - -

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Business Name of investor Name ofsubsidiary activities CHIEFTEK PRECISION HOLDING CO., LTD. Chieftek Machinery (Kunshan) Co., Ltd. (“Chieftek (Kunshan)”) Production, processing and sales of high precision linear motion components and after-sales service	December 31, December 31, 2025 2024 Ownership (%) 100 100	Note
		-

• C. Subsidiaries not included in the consolidated financial statements: None.

• D. Adjustments for subsidiaries with different balance sheet dates: None.

• E. Significant restrictions: None.

• F. Subsidiaries that have non-controlling interest that are material to the Group: None.

(4) Foreign currency translation

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The consolidated financial statements are presented in New Taiwan dollars, which is the Company’s functional and the Group’s presentation currency.

• A. Foreign currency transactions and balances

• (a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognized in profit or loss in the period in which they arise.

• (b) Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognized in profit or loss.

• (c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognized in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognized in other comprehensive income. However, nonmonetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.

• (d) All other foreign exchange gains and losses based on the nature of those transactions are presented in the statement of comprehensive income within ‘other gains and losses’.

• B. Translation of foreign operations

• (a) The operating results and financial position of all the group entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

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• i. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;

• ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and

• iii. All resulting exchange differences are recognized in other comprehensive income.

• (b) When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, even when the Group retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operation.

(5) Classification of current and non-current items

• A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:

• (a) Assets that are expected to be realized, or are intended to be sold or consumed in the normal operating cycle;

• (b) Assets held primarily for the purpose of trading ;

• (c) Assets that are expected to be realised within 12 months after the reporting period;

• (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities for at least 12 months after the reporting period.

• B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:

• (a) Liabilities that are expected to be settled in the normal operating cycle;

• (b) Liabilities arising primarily from trading activities;

• (c) Liabilities that are due to be settled within 12 months after the reporting period;

• (d) It does not have the right at the end of the reporting period to defer settlement of the liability at least 12 months after the reporting period.

(6) Cash equivalents

• A. Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amount of cash and subject to an insignificant risk of changes in value.

• B. Time deposits that meet the definition above and are held for the purpose of meeting short-term cash commitment in operations are classified as cash equivalents.

(7) Financial assets at fair value through profit or loss

• A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortized cost or fair value through other comprehensive income.

• B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognized and derecognized using trade date accounting.

• C. At initial recognition, the Group measures the financial assets at fair value and recognizes the

~23~

transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognizes the gain or loss in profit or loss.

• D. The Group recognizes the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

• (8) Financial assets at amortized cost

• A. Financial assets at amortized cost are those that meet all of the following criteria:

• (a) The objective of the Group’s business model is achieved by collecting contractual cash flows.

• (b) The assets’ contractual cash flows represent solely payments of principal and interest.

• B. The Group’s time deposits which do not fall under cash equivalents are those with a short maturity period and are measured at initial investment amount as the effect of discounting is immaterial.

• (9) Accounts and notes receivable

• A. Accounts and notes receivable entitle the Group a legal right to receive consideration in exchange for transferred goods or rendered services.

• B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

• (10) Impairment of financial assets

• For debt instruments measured as financial assets at amortized cost, at each reporting date, the Group recognizes the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognizes the impairment provision for the lifetime expected credit losses (“ECLs”) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable or contract assets that do not contain a significant financing component, the Group recognizes the impairment provision for lifetime ECLs.

• (11) Derecognition of financial assets

• The Group derecognizes a financial asset when the contractual rights to receive the cash flows from the financial asset expires.

• (12) Inventories

• Inventories are stated at the lower of cost and net realizable value. Cost is determined using the weighted-average method. The cost of finished goods and work in process comprises raw materials, direct labor, other direct costs and related production overheads (allocated based on normal operating capacity). It excludes borrowing costs. The item by item approach is used in applying the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and the estimated costs necessary to make the sale. When the cost of inventory is lower than net realizable value, a write-down is provided and recognized in operating costs. If the circumstances that caused the write-down cease to exist, such that all or part of the write-down is no longer needed, it should be reversed to that extent and recognized as deduction of operating costs.

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(13) Property, plant and equipment

• A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalized.

• B. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

• C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.

• D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year end. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change. The estimated useful lives of property, plant and equipment are as follows:

are as follows:
Assets Buildings Machinery and equipment Transportation equipment Office equipment Leasehold improvements Other equipment	Useful lives
	2 ～ 50 years 2 ～ 15 years 2 ～ 8 years 2 ～ 8 years 3 ～ 15 years 2 ～ 10 years

(14) Leasing arrangements (lessee) － right-of-use assets/lease liabilities

• A. Leases are recognized as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Group. For short-term leases or leases of lowvalue assets, lease payments are recognized as an expense on a straight-line basis over the lease term.

• B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of the following:

• (a) Fixed payments, less any lease incentives receivable; and

• (b) Amounts expected to be payable by the lessee under residual value guarantees.

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The Group subsequently measures the lease liability at amortized cost using the interest method and recognizes interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognized as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

• C. At the commencement date, the right-of-use asset is stated at cost comprising the following: (a) The amount of the initial measurement of lease liability; and

• (b) Any lease payments made at or before the commencement date.

• The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset’s useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognized as an adjustment to the right-of-use asset.

• D. For lease modifications that decrease the scope of the lease, the lessee decrease the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognize the difference in profit or loss. For all other lease modifications, the lessee shall remeasure the lease liability and adjust the right-of-use asset, correspondingly.

(15) Intangible assets

• A. Trademarks and patents

Separately acquired trademarks of corporate identity system and patents are stated initially at cost. Trademarks and patents have a finite useful life and are amortized on a straight-line basis over their estimated useful lives of 10 to 20 years.

• B. Computer software

• Computer software is stated initially at cost and amortized on a straight-line basis over its estimated useful life of 3 years.

• C. Turn-key professional technique

• The subsidiary, CSM Maschinen GmbH, which has been merged into cpc Europa GmbH with the approval of the local authority since 2020, was commissioned by the Company to develop and design linear guide, robotic arm and equipment for exhibition which are stated initially at cost and amortized over the economic life of Turn-key professional technique of 10 years.

• D. Other intangible assets

• Technology contribution is stated initially at cost, and regarded as having an indefinite useful life as it is assessed to generate continuous net cash inflow in the foreseeable future. Technology contribution is not amortized, but is tested annually for impairment.

(16) Impairment of non-financial assets

The Group assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. When the circumstances or reasons for

~26~

recognizing impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortized historical cost would have been if the impairment had not been recognized.

(17) Borrowings

• A. Borrowings comprise long-term and short-term banks loans. Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in profit or loss over the period of the borrowings using the effective interest method.

• B. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the drawdown occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalized as other non-current assets for liquidity services and amortized over the period of the facility to which it relates.

• (18) Notes and accounts payable

• A. Accounts payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities.

• B. The short-term notes and accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(19) Derecognition of financial liabilities

A financial liability is derecognized when the obligation specified in the contract is either discharged or cancelled or expires.

(20) Offsetting financial instruments

Financial assets and liabilities are offset and reported in the net amount in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously.

(21) Employee benefits

• A. Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognized as expenses in that period when the employees render service.

• B. Pensions

(a) Defined contribution plans

For defined contribution plans, the contributions are recognized as pension expenses when they are due on an accrual basis. Prepaid contributions are recognized as an asset to the extent of a cash refund or a reduction in the future payments.

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  - (b) Defined benefit plans

     - i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Group in current period or prior periods. The liability recognized in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of government bonds (at the balance sheet date) of a currency and term consistent with the currency and term of the employment benefit obligations.

     - ii. Remeasurement arising on defined benefit plans are recognized in other comprehensive income in the period in which they arise and are recorded as retained earnings.

• C. Employees’ compensation and directors’ remuneration

  • Employees’ compensation and directors’ remuneration are recognized as expenses and liabilities, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates. If employee compensation is distributed by shares, the Group calculates the number of shares based on the closing price at the previous day of the board meeting resolution.

• (22) Employee share based payment

• A. For the equity-settled share-based payment arrangements, the employee services received are measured at the fair value of the equity instruments granted at the grant date, and are recognized as compensation cost over the vesting period, with a corresponding adjustment to equity. The fair value of the equity instruments granted shall reflect the impact of market vesting conditions and non-vesting conditions. Compensation cost is subject to adjustment based on the service conditions that are expected to be satisfied and the estimates of the number of equity instruments that are expected to vest under the non-market vesting conditions at each balance sheet date. Ultimately, the amount of compensation cost recognized is based on the number of equity instruments that eventually vest.

• B. When treasury stocks are transferred to employees, the granted date is the date that subscription price and number of treasury stocks transferred to employees are resolved by the Board of Directors.

(23) Income tax

• A. The tax expense for the period comprises current and deferred tax. Tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or items recognized directly in equity, in which cases the tax is recognized in other comprehensive income or equity.

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• B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.

• C. Deferred tax is recognized, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. However, the deferred tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss and does not give rise to equal taxable and deductible temporary differences. Deferred tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates and laws that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realized or the deferred tax liability is settled.

• D. Deferred tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. At each balance sheet date, unrecognized and recognized deferred tax assets are reassessed.

• E. Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. Deferred tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realize the asset and settle the liability simultaneously.

• (24) Share capital

• A. Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or stock options are shown in equity as a deduction, net of tax, from the proceeds.

• B. Where the Company repurchases the Company’s equity share capital that has been issued, the consideration paid, including any directly attributable incremental costs (net of income taxes) is resolved from equity attributable to the Company’s equity holders. Where such shares are subsequently reissued, the difference between their carrying amount and any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the Company’s equity holders.

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(25) Dividends

Cash dividends are recorded as liabilities in the Company’s financial statements in the period in which they are resolved by the Board of Directors. Stock dividends are recorded as stock dividends to be distributed in which they are resolved by the Company’s shareholders, and are reclassified to ordinary shares on the effective date of new shares issuance.

(26) Revenue recognition

Sales of goods

• A. The Group manufactures and sells linear guide, ball screw and linear modules. Sales are recognized when control of the products has been transferred, being when the products are delivered to the external customer, and there is no unfulfilled obligation that could affect the buyer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, or the Group has objective evidence that all criteria for acceptance have been satisfied.

• B. Sales revenue is recognized based on the contract price, net of output tax and sales returns and discounts. The sales are made with a credit term of 30 ~ 180 days after monthly closing. As the time interval between the transfer of committed goods and the payment of customer does not exceed one year, the Group does not adjust the transaction price to reflect the time value of money.

• C. A receivable is recognized when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

(27) Government grants

Government grants are recognized at their fair value only when there is reasonable assurance that the Group will comply with any conditions attached to the grants and the grants will be received. Government grants are recognized in profit or loss on a systematic basis over the periods in which the Group recognizes expenses for the related costs for which the grants are intended to compensate.

• (28) Operating segments

• Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker is responsible for allocating resources and assessing performance of the operating segments.

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

The preparation of these consolidated financial statements requires management to make critical judgements in applying the Group’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets

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and liabilities within the next financial year; and the related information is addressed below:

(1) Critical judgements in applying the Group’s accounting policies

• None.

(2) Critical accounting estimates and assumptions

Evaluation of inventories

• A. As inventories are stated at the lower of cost and net realizable value, the Group must determine the net realizable value of inventories on balance sheet date using judgements and estimates. Due to the rapid technology innovation, the Group evaluates the amounts of normal inventory consumption, obsolete inventories or inventories without market selling value on balance sheet date, and writes down the cost of inventories to the net realizable value. Such an evaluation of inventories is calculated based on the inventory clearance and historical data of discounts. Therefore, there might be material changes to the evaluation.

• B. As of December 31, 2025, the carrying amount of inventories was $624,752.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

Cash and cash equivalents
Cash: Cash on hand Checking accounts and demand deposits Cash Equivalents: Time deposits	December 31, 2025 1,357 $ 705,401 706,758 - 706,758 $	December 31, 2024
		1,781 $ 762,851
		764,632
		100,000
		864,632 $

• A. The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.

• B. The Group has no cash and cash equivalents pledged to others as of December 31, 2025 and 2024.

(2) Financial assets at amortized cost - current

Financial assets at amortized cost-current
Restricted time deposits Time deposits with maturity of over 3 months	December31,2025 8,700 $ 175,932 184,632 $	December31,2024
		8,700 $ 111,062
		119,762 $

• A. The Group recognized interest income of $3,665 and $2,873 (listed as “Interest income”) from financial assets at amortized cost for the years ended December 31, 2025 and 2024, respectively.

• B. As of December 31, 2025 and 2024, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at amortized cost held by the Group was its book value.

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• C. For more information about the Group’s time deposits pledged to others as collateral as of December 31, 2025 and 2024, refer to Note 8, ‘Pledged assets’.

• D. Information relating to credit risk is provided in Note 12(2), ‘Financial instruments’. The counterparties of the Group’s investments in certificates of deposits are financial institutions with high credit quality, so the Group expects that the probability of counterparty default is remote.

(3) Financial assets at fair value through profit or loss - non-current

	December	31,2025		December	31,2024
Financial assets mandatorily measured at fair value
through profit or loss
Unlisted stocks	$	50,000		$	50,000
Valuation adjustment		16,760	(		1,208)
	$	66,760		$	48,792

• A. The Group recognized net gain (loss) of $17,968 and ($1,208) on financial assets at fair value through profit or loss (listed as “Other gains and losses”) for the years ended December 31, 2025 and 2024, respectively.

• B. The Group has no financial assets at fair value through profit or loss pledged to others as of December 31, 2025 and 2024.

(4) Notes and accounts receivable, net

Notes receivable Accounts receivable Less: Allowance for doubtful accounts (	December31,2025 December 31, 2024 23,434 $ 18,304 $ 305,001 $ 250,894 $ 23,206) 21,068) ( 281,795 $ 229,826 $

• A. The ageing analysis of the Group’s notes and accounts receivable is as follows:

Not past due Up to 30 days 31 to 90 days 91 to 180 days 181 to 365 days Over 365 days	December	Accounts receivable 215,497 $ 16,834 35,608 21,186 2,253 13,623 305,001 $ 31,2025	December	31,2024
	Notes receivable 23,254 $ - - - - 180 23,434 $		Notes receivable 17,349 $ - 776 - - 179 18,304 $	Accounts receivable
				178,085 $ 19,461 30,019 5,536 3,022 14,771
				250,894 $

The above ageing analysis was based on past due date.

• B. The Group’s notes receivable and accounts receivable were all from contracts with customers. As of January 1, 2024, the balances of notes receivable and accounts receivable from contracts with customers amounted to $260,496.

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• C. Without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Group’s notes and accounts receivable was its book value.

• D. As of December 31, 2025 and 2024, the Group does not hold any collateral as security for accounts receivable.

• E. Information relating to credit risk is provided in Note 12(2), ‘Financial instruments’.

(5) Inventories

Inventories
Raw materials Supplies Work in process Finished goods Raw materials Supplies Work in process Finished goods	Allowance for Cost marketprice decline 64,994 $ 5,190) ($ 78,588 25,626) ( 319,600 25,078) ( 263,871 46,407) ( 727,053 $ 102,301) ($ December 31, 2025 December 31, 2024	Bookvalue 59,804 $ 52,962 294,522 217,464 624,752 $
	Allowance for Cost marketprice decline 68,378 $ 7,278) ($ 74,255 24,063) ( 306,632 22,342) ( 285,791 40,287) ( 735,056 $ 93,970) ($	Book value
		61,100 $ 50,192 284,290 245,504
		641,086 $

The cost of inventories recognized as expense for the year:

Cost of goods sold Loss on inventory market price decline Loss on physical inventory Revenue from sale of scraps (	For the years endedDecember31,	For the years endedDecember31,
	2025 663,640 $ 7,561 760 196) ( 671,765 $	2024
		599,403 $ 12,545 747 273)
		612,422 $

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(6) Property, plant and equipment

AtJanuary1,2025 Cost Accumulated depreciation 2025 At January 1, 2025 Additions Transferred from prepayments for equipment Transferred after acceptance inspection Depreciation Disposals－Cost －Accumulated depreciation Net currency exchange differences At December 31, 2025 At December31,2025 Cost Accumulated depreciation

Construction Leasehold in progress improvements and equipment Machinery and Transportation Office and other before acceptance Land Buildings equipment equipment equipment equipment inspection Total 408,069 $ 1,596,339 $ 988,122 $ 7,088 $ 26,495 $ 198,253 $ 123,527 $ 3,347,893 $ - 268,818) ( 923,209) ( 4,602) ( 23,799) ( 172,963) ( - 1,393,391) ( 408,069 $ 1,327,521 $ 64,913 $ 2,486 $ 2,696 $ 25,290 $ 123,527 $ 1,954,502 $ 408,069 $ 1,327,521 $ 64,913 $ 2,486 $ 2,696 $ 25,290 $ 123,527 $ 1,954,502 $ - 9,599 18,677 - 392 9,779 12,008 50,455 - - - - - - 53,885 53,885 - 9,096 736 - 2,728 39,116 51,676) ( - - 39,423) ( 19,633) ( 630) ( 1,345) ( 11,051) ( - 72,082) ( - 358) ( 46,800) ( - 587) ( 311) ( - 48,056) ( - 358 46,800 - 587 228 - 47,973 305 4,660) ( 420 11 4 75 - 3,845) ( 408,374 $ 1,302,133 $ 65,113 $ 1,867 $ 4,475 $ 63,126 $ 137,744 $ 1,982,832 $ 408,374 $ 1,608,242 $ 962,328 $ 6,973 $ 29,385 $ 247,235 $ 137,744 $ 3,400,281 $ - 306,109) ( 897,215) ( 5,106) ( 24,910) ( 184,109) ( - 1,417,449) ( 408,374 $ 1,302,133 $ 65,113 $ 1,867 $ 4,475 $ 63,126 $ 137,744 $ 1,982,832 $

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AtJanuary1,2024 Cost Accumulated depreciation 2024 At January 1, 2024 Additions Transferred from prepayments for equipment Transferred after acceptance inspection Depreciation Disposals－Cost －Accumulated depreciation Net currency exchange differences At December 31, 2024 At December 31, 2024 Cost Accumulated depreciation

Construction Leasehold in progress improvements and equipment Machinery and Transportation Office and other before acceptance Land Buildings equipment equipment equipment equipment inspection Total 401,691 $ 773,878 $ 965,344 $ 4,535 $ 24,710 $ 179,440 $ 922,224 $ 3,271,822 $ - 234,967) ( 900,786) ( 3,836) ( 23,144) ( 166,826) ( - 1,329,559) ( 401,691 $ 538,911 $ 64,558 $ 699 $ 1,566 $ 12,614 $ 922,224 $ 1,942,263 $ 401,691 $ 538,911 $ 64,558 $ 699 $ 1,566 $ 12,614 $ 922,224 $ 1,942,263 $ 2,609 27,088 14,192 159 1,915 3,440 7,398 56,801 - - - - - - 5,709 5,709 - 785,504 8,062 2,492 133 15,613 811,804) ( - - 31,244) ( 21,964) ( 870) ( 902) ( 6,378) ( - 61,358) ( - - 172) ( 135) ( 461) ( 294) ( - 1,062) ( - - 169 135 431 285 - 1,020 3,769 7,262 68 6 14 10 - 11,129 408,069 $ 1,327,521 $ 64,913 $ 2,486 $ 2,696 $ 25,290 $ 123,527 $ 1,954,502 $ 408,069 $ 1,596,339 $ 988,122 $ 7,088 $ 26,495 $ 198,253 $ 123,527 $ 3,347,893 $ - 268,818) ( 923,209) ( 4,602) ( 23,799) ( 172,963) ( - 1,393,391) ( 408,069 $ 1,327,521 $ 64,913 $ 2,486 $ 2,696 $ 25,290 $ 123,527 $ 1,954,502 $

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• A. Property, plant and equipment of the Group were all for operating purposes as of December 31, 2025 and 2024.

• B. Amount of borrowing costs capitalized as part of property, plant and equipment and the interest rates for such capitalization are as follows:

	For the years ended	For the years ended	December31,
	2025		2024
Amount capitalized	544 $	$	7,298
Interest rate for capitalization	2.04%		1.85%

• C. Information about the property, plant and equipment that were pledged to others as collateral as of December 31, 2025 and 2024 is provided in Note 8, ‘Pledged assets’.

• －

• (7) Leasing arrangements lessee

• A. The Group leases land in Southern Taiwan Science Park Bureau of the Ministry of Science and Technology. Rental contracts are typically made for a period of 20 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.

• B. The carrying amount of right-of-use assets and the depreciation charge are as follows:

Land Land	Carrying	amount
	December31,2025 December31,2024 76,552 $ 81,348 $ Depreciation charge	December31,2024
		81,348 $
	For the years ended December 31,
	2025 4,796 $	2024
		4,796 $

• C. For the years ended December 31, 2025 and 2024, there were no additions to right-of-use assets; －

• revaluations to right-of-use assets were $ and $8,674, respectively.

• D. The information on income and expense accounts relating to lease contracts is as follows:

Items affecting profit or loss Interest expense on lease liabilities Expense on short-term lease contracts	For the years endedDecember31,	For the years endedDecember31,
	2025 1,531 $ 13,530 $	2024
		1,604 $
		13,569 $

• E. For the years ended December 31, 2025 and 2024, the Group’s total cash outflow for leases were $19,195 and $19,234, respectively.

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(8) Intangible assets

												Turn-key
												professional
			Trademarks			Patents			Software			technique			Others			Total
AtJanuary1,2025
Cost		$	752		$	14,840		$	13,977		$	90,718		$	60,000		$	180,287
Accumulated amortization	(		610)	(		6,671)	(		12,486)	(		45,359)	(		13,500)	(		78,626)
Accumulated impairment			-			-			-			-	(		46,500)	(		46,500)
Net value		$	142		$	8,169		$	1,491		$	45,359		$	-		$	55,161
2025
Net value at January 1, 2025		$	142		$	8,169		$	1,491		$	45,359		$	-		$	55,161
Additions－Acquired separately			-			2,394			-			-			-			2,394
Amortization	(		17)	(		903)	(		514)	(		9,072)			-	(		10,506)
Disposals－Cost			-	(		24)			-			-			-	(		24)
Disposals－Accumulated amortization			-			24			-			-			-			24
Net currency exchange differences			-			-			80			-			-			80
Net value at December 31, 2025		$	125		$	9,660		$	1,057		$	36,287		$	-		$	47,129
At December31,2025
Cost		$	752		$	17,210		$	14,183		$	90,718		$	60,000		$	182,863
Accumulated amortization	(		627)	(		7,550)	(		13,126)	(		54,431)	(		13,500)	(		89,234)
Accumulated impairment			-			-			-			-	(		46,500)	(		46,500)
Net value		$	125		$	9,660		$	1,057		$	36,287		$	-		$	47,129

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==> picture [705 x 305] intentionally omitted <==

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

Turn-key
professional
Trademarks Patents Software technique Others Total
At January 1, 2024
Cost $ 685 $ 12,981 $ 14,885 $ 90,718 $ 60,000 $ 179,269
Accumulated amortization ( 595) ( 5,899) ( 13,166) ( 36,287) ( 13,500) ( 69,447)
Accumulated impairment - - - - ( 46,500) ( 46,500)
Net value $ 90 $ 7,082 $ 1,719 $ 54,431 $ - $ 63,322
2024
Net value at January 1, 2024 $ 90 $ 7,082 $ 1,719 $ 54,431 $ - $ 63,322
Additions － Acquired separately 67 1,859 214 - - 2,140
Amortization ( 15) ( 772) ( 445) ( 9,072) - ( 10,304)
Net currency exchange differences - - 3 - - 3
Net value at December 31, 2024 $ 142 $ 8,169 $ 1,491 $ 45,359 $ - $ 55,161
At December 31, 2024
Cost $ 752 $ 14,840 $ 13,977 $ 90,718 $ 60,000 $ 180,287
Accumulated amortization ( 610) ( 6,671) ( 12,486) ( 45,359) ( 13,500) ( 78,626)
Accumulated impairment - - - - ( 46,500) ( 46,500)
Net value $ 142 $ 8,169 $ 1,491 $ 45,359 $ - $ 55,161
----- End of picture text -----

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• A. For the years ended December 31, 2025 and 2024, no borrowing costs were capitalized as part of intangible assets.

• B. Details of amortization on intangible assets are as follows:

		For the years ended	For the years ended	December 31,
		2025		2024
General and administrative expenses	$	297	$	163
Research and development expenses		10,209		10,141
	$	10,506	$	10,304

(9) Short-term borrowings

==> picture [485 x 70] intentionally omitted <==

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

Nature December 31, 2025 Interest rate range Collateral
Bank unsecured borrowings $ 230,000 0.79% ～ 1.73% None
Nature December 31, 2024 Interest rate range Collateral
Bank unsecured borrowings $ 160,000 1.52% ～ 2.05% None
----- End of picture text -----

For more information about interest expense recognized by the Group for the years ended December 31, 2025 and 2024, refer to Note 6(20), ‘Finance costs’.

(10) Other payables

Accrued salaries and bonuses Employees’ compensation and directors’ remuneration payable Equipment payable Miscellaneous payable Others	December 31, 2025 December 31, 2024 59,128 $ 56,468 $ 10,300 12,200 4,594 4,638 4,640 3,698 42,049 41,382 120,711 $ 118,386 $

- (11) Long term borrowings

==> picture [479 x 28] intentionally omitted <==

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

Interest rate
Nature Expiry date December 31, 2025 range Collateral
----- End of picture text -----

Long-term bank borrowings Secured borrowings November 29, 2027～ February 15, 2031 Unsecured borrowings February 21, 2026～ February 19, 2029 Less: Current portion	588,009 $ 1.86%～ 2.81% Land, buildings 513,520 1.82%～ 2.70% None 1,101,529 285,587) ( 815,942 $

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Nature Long-term bank borrowings Secured borrowings Unsecured borrowings Less: Current portion	Expiry date December31,2024 November 29, 2027～ February 15, 2031 582,996 $ August 21, 2025～ February 19, 2029 682,886 1,265,882 295,886) ( 969,996 $	Interest rate range 1.86%～ 2.81% 1.82%～ 4.00%	Collateral Land, buildings None

For more information about interest expense recognized by the Group for the years ended December 31, 2025 and 2024, refer to Note 6(20), ‘Finance costs’.

(12) Pensions

• A. (a) The Company has a defined benefit pension plan in accordance with the Labor Standards Law, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company contributes monthly an amount equal to 2% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is not enough to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contribution for the deficit by next March.

• (b) The amounts recognized in the balance sheet are as follows:

	December	31,2025	December	31,2024
Present value of defined benefit obligations	($	16,501)	($	14,921)
Fair value of plan assets		9,476		8,343
Net defined benefit liability	($	7,025)	($	6,578)

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(c) Movements in net defined benefit liabilities are as follows:

Present value of defined benefit obligations Year ended December 31, 2025 Balance at January 1 14,921) ($ Interest (expense) income 223) ( 15,144) ( Remeasurements: Return on plan assets - Change in financial assumptions 165) ( Experience adjustments 1,192) ( 1,357) ( Pension fund contribution - Balance at December 31 16,501) ($ Present value of defined benefit obligations Year ended December 31, 2024 Balance at January 1 16,184) ($ Interest (expense) income 194) ( 16,378) ( Remeasurements: Return on plan assets - Change in financial assumptions 185 Experience adjustments 1,272 1,457 Pension fund contribution - Balance at December 31 14,921) ($

Fair value of Net defined planassets benefit liability 8,343 $ 6,578) ($ 125 98) ( 8,468 6,676) ( 568 568 - 165) ( - 1,192) ( 568 789) ( 440 440 9,476 $ 7,025) ($ Fair value of Net defined plan assets benefit liability 7,248 $ 8,936) ($ 87 107) ( 7,335 9,043) ( 623 623 - 185 - 1,272 623 2,080 385 385 8,343 $ 6,578) ($

(d) The Bank of Taiwan was commissioned to manage the Fund of the Company’s defined benefit pension plan in accordance with the Fund’s annual investment and utilisation plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilisation of the Labor Retirement Fund” (Article 6: The scope of utilisation for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regard to the utilisation of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorized by the Regulator. The Company has no right to participate in

~41~

managing and operating that fund and hence the Company is unable to disclose the classification of plan assets fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2025 and 2024 is given in the Annual Labor Retirement Fund Utilisation Report announced by the government.

(e) The principal actuarial assumptions used were as follows:

	For theyears ended December 31,
	2025 2024
Discount rate	1.30% 1.50%
Future salary increases	3.25% 3.25%

Assumptions regarding future mortality experience are both set based on actuarial advice in accordance with Taiwan Life Insurance 6th Mortality Table for the years ended December 31, 2025 and 2024.

Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

==> picture [446 x 157] intentionally omitted <==

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

Discount rate Future salary increases
Increase 0.25% Decrease 0.25% Increase 0.25% Decrease 0.25%
December 31, 2025
Effect on present value of
defined benefit
obligation ($ 206) $ 214 $ 189 ($ 182)
December 31, 2024
Effect on present value of
defined benefit
obligation ($ 148) $ 154 $ 134 ($ 130)
----- End of picture text -----

The sensitivity analysis above is based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analysing sensitivity and the method of calculating net pension liability in the balance sheet are the same.

• (f) Expected contributions to the defined benefit pension plan of the Company for the year ending December 31, 2026 amount to $450.

• (g) As of December 31, 2025, the weighted average duration of the retirement plan is 6 years. The analysis of timing of the future pension payment was as follows:

The analysis of timing of the future pension payment was as follows:
Next within 1 year Next 2-5 years Next over 6 years	9,448 $ 1,704 6,568
	17,720 $

~42~

• B. Effective July 1, 2005, the Company has established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment. The other subsidiaries are subject to local government sponsored defined contribution plan. In accordance with related laws of the respective local government, the independent pension fund of employees is administered by the government. Other than the monthly contributions, these subsidiaries do not have further obligations. The pension costs under the defined contribution pension plans of the Group for the years ended December 31, 2025 and 2024 were $14,261 and $13,840, respectively.

• (13) Share capital

• A. Movements in the number of the Company’s ordinary shares outstanding are as follows (in thousands of shares):

thousands of shares):
Balance at beginning and end of year	For the years endedDecember31,
	2025 87,262	2024
		87,262

• B. Treasury stocks

• (a) Reason for share reacquisition and movements in the number of the Company’s treasury stocks are as follows (in thousands of shares):

• For the years ended December 31,

• Reason for reacquisition 2025 2024

• To be reissued to employees 2,000 2,000

• (b) Pursuant to the R.O.C. Securities and Exchange Act, the number of shares bought back as treasury stock should not exceed 10% of the number of the Company’s issued and outstanding shares and the amount bought back should not exceed the sum of retained earnings, paid-in capital in excess of par value and realized capital surplus. As of December 31, 2025 and 2024, the treasury shares amounted to $147,570.

• (c) Pursuant to the R.O.C. Securities and Exchange Act, treasury stocks should not be pledged as collateral and is not entitled to dividends before it is reissued.

• (d) Pursuant to the R.O.C. Securities and Exchange Act, treasury stocks should be reissued to the employees within 5 years from the reacquisition date and shares not reissued within the 5 year period are to be retired.

• C. As of December 31, 2025, the Company’s authorized capital was $1,500,000 (including $30,000 reserved for employee stock options), and the paid-in capital was $892,619 (89,262 thousand shares) with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected.

~43~

(14) Capital reserve

Capital reserve
For the years ended Share December 31, 2025 and 2024 premium Balances at beginning and end of year 440,553 $	Treasury share transactions Others 5,454 $ 114 $	Total
		446,121 $

Pursuant to the R.O.C. Company Act, capital reserve arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Law requires that the amount of capital reserve to be capitalized mentioned above should not exceed 10% of the paid-in capital each year. Capital reserve should not be used to cover accumulated deficit unless the legal reserve is insufficient.

(15) Retained earnings

• A. The legal reserve shall be exclusively used to cover accumulated deficit, to issue new stocks, or to distribute cash to shareholders in proportion to their share ownership. The use of legal reserve for the issuance of stocks or cash dividends to shareholders in proportion to their share ownership is permitted provided that the balance of such reserve exceeds 25% of the Company’s paid-in capital.

• B. According to the Company’s Articles of Incorporation, the Company’s dividend policy is to distribute the current year’s earnings, if any, in the following order:

• (1) pay all taxes and dues;

• (2) offset any loss of prior years;

• (3) set aside 10% as legal reserve;

• (4) set aside or reverse special reserve as required by regulations or the Competent Authority;

• (5) The appropriation of the remaining amount after deducting items (1) to (4), along with the unappropriated retained earnings of prior years can be distributed in accordance with a resolution passed during a meeting of the Board of Directors and approved at the shareholders’ meeting. However, the distribution of dividends shall not be lower than 20% of the current year’s profit after deducting items (1) to (4). In order to continually expand the scale of operations, increase competitiveness and support the Company’s long-term development plans, future capital requirements and long-term financial plan, the Company’s dividend policy is to distribute stock dividends and partially as cash dividends. Cash dividends shall not be less than 10% of the total dividends distributed to shareholders. The Board of Directors of the Company shall adopt a resolution by a majority of more than two-thirds of the directors present to distribute whole or a part of the distributable dividends, bonuses, capital reserves or legal reserve in the form of cash, and report to the shareholders during their meetings. The above is not subject to provisions that require shareholders’ approval.

~44~

• C. In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings. As of December 31, 2025 and 2024, the above special reserve amounted to $2,481 and $25,061, respectively.

• D. The Company recognized cash dividends distributed to owners amounting to $61,083 ($0.7 (in dollars) per share) and $69,809 ($0.8 (in dollars) per share) from 2024 and 2023 earnings, respectively. On February 26, 2026, the Board of Directors proposed the distribution of cash dividends from 2025 earnings in the amount of $61,083 ($0.7 (in dollars) per share).

(16) Operating revenue

• A. The Group derives revenue from the transfer of goods at a point in time. Revenue is broken down by product category as follows:

Miniature linear guides Large linear guides Linear motor Others	2025 2024 676,031 $ 590,757 $ 377,625 360,545 84,016 84,728 644 551 1,138,316 $ 1,036,581 $ For theyears ended December 31,

• B. The Group has recognized revenue-related contract liabilities amounting to $1,557, $3,259 and $440 as of December 31, 2025, December 31, 2024 and January 1, 2024, respectively. Revenue recognized that were included in the contract liability balance at the beginning of 2025 and 2024 for the years ended December 31, 2025 and 2024 were $3,230 and $419, respectively.

(17) Interest income

Interest income
Interest income from bank deposits Interest income from financial assets measured at amortized cost Other interest income	For the years endedDecember31,
	2025 6,956 $ 3,665 8 10,629 $	2024
		7,331 $ 2,873 8
		10,212 $

~45~

(18) Other income

Other income
		For the years ended		December31,
		2025		2024
Income from sales of solar energy power	$	7,300	$	10,037
Government grants revenue		18		40
Dividend income		572		-
Other income		3,929		2,038
	$	11,819	$	12,115

(19) Other gains and losses

Other gains and losses
		For the	years ended			December 31,
		2025				2024
Currency exchange (loss) gain	($		74)		$	26,790
Net gain (loss) on financial assets at fair value
through profit or loss			17,968	(		1,208)
Loss on disposal of property, plant and
equipment	(		83)	(		42)
Other losses	(		716)	(		21)
		$	17,095		$	25,519

(20) Finance costs

Finance costs
Interest expense: Interest expense on bank borrowings Interest expense on lease liabilities Less: Capitalization of qualifying assets (	For the years ended December 31,
	2025 2024 32,862 $ 30,562 $ 1,531 1,604 544) 7,298) ( 33,849 $ 24,868 $	2024

(21) Expenses by nature

Expenses by nature
Employee benefit expense Depreciation Amortization Employee benefit expense Depreciation Amortization	For the yearendedDecember31,2025
	Operating cost Operating expense Total 206,071 $ 166,463 $ 372,534 $ 38,772 38,106 76,878 - 10,506 10,506 244,843 $ 215,075 $ 459,918 $ For the yearendedDecember31,2024		Total
			372,534 $ 76,878 10,506
			459,918 $
	Operating cost 197,985 $ 36,080 - 234,065 $	Operating expense 157,862 $ 30,074 10,304 198,240 $	Total
			355,847 $ 66,154 10,304
			432,305 $

~46~

(22) Employee benefit expense

Employee benefit expense
Wages and salaries Labor and health insurance expense Pension costs Other personnel expenses Wages and salaries Labor and health insurance expense Pension costs Other personnel expenses	Operating cost Operating expense Total 170,222 $ 143,939 $ 314,161 $ 19,500 11,877 31,377 8,583 5,776 14,359 7,766 4,871 12,637 206,071 $ 166,463 $ 372,534 $ Operating cost Operating expense Total 162,420 $ 136,695 $ 299,115 $ 18,809 11,101 29,910 8,498 5,449 13,947 8,258 4,617 12,875 197,985 $ 157,862 $ 355,847 $ For the yearendedDecember31,2025 For the yearendedDecember31,2024
		299,115 $ 29,910 13,947 12,875
		355,847 $

• A. According to the Articles of Incorporation of the Company, a ratio of distributable profit of the current year, after covering accumulated losses, shall be distributed as employees’ compensation and directors’ remuneration. The ratio shall be 3% to 15% for employees’ compensation, of which no less than 25% shall be allocated and distributed to rank-and-file employees, and shall not be higher than 3% for directors’ remuneration.

• B. For the years ended December 31, 2025 and 2024, the Company’s employees’ compensation were $8,500 and $10,000, respectively; while directors’ remuneration were $1,800 and $2,200, respectively. The aforementioned amounts were recognized in salary expenses and were estimated and accrued based on the earnings of current year and the percentage specified in the Articles of Incorporation of the Company.

• The employees’ compensation and directors’ remuneration for 2024 as resolved by the Board of Directors were $10,000 and $2,200, respectively. The employees’ compensation and directors’ remuneration for 2024 as resolved by the Board of Directors were equal to the amounts recognized in the 2024 financial statements. The employees’ compensation and directors’ remuneration as resolved by the Board of Directors on February 26, 2026 were $8,500 and $1,800, respectively. The employees’ compensation will be distributed in the form of cash. Information about the appropriation of employees’ compensation and directors’ remuneration of the Company as proposed by the Board of Directors is posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

~47~

(23) Income tax

A. Income tax expense:

(a) Components of income tax expense:

Current income tax: Income tax incurred in current year Tax on unappropriated earnings Prior year income tax over estimation ( Total current income tax Deferred income tax: Origination and reversal of temporary differences Income tax expense	2025 2024 25,185 $ 20,934 $ 1,186 - 247) 567) ( 26,124 20,367 5,655 3,775 31,779 $ 24,142 $ For the years endedDecember31,

• (b) The income tax relating to components of other comprehensive income is as follows:

Remeasurement of defined benefit obligations (	For the years ended December 31,	For the years ended December 31,
	2025 158) $	2024
		416 $

B. Reconciliation between income tax expense and accounting profit:

		For the	years ended	years ended	years ended	December 31,
		2025				2024
Tax calculated based on profit before
tax and statutory tax rate		$	37,124		$	30,768
Effect of items exempt by tax regulation	(		2,951)	(		831)
Effect from investment tax credits	(		3,333)	(		5,228)
Tax on unappropriated earnings			1,186			-
Prior year income tax over estimation	(		247)	(		567)
Income tax expense		$	31,779		$	24,142

~48~

C. Amounts of deferred tax assets or liabilities as a result of temporary differences are as follows: 2025

Temporary differences: Deferred tax assets: Loss on inventory market value decline Unused compensated absences Unrealized gain on interafflilates Pensions Deferred tax liabilities: Investment (income) loss Depreciation Unrealized gain on foreign currency exchange		January1	Recognized in profit or loss	Recognized in other comprehensive income	Recognized in other comprehensive income		December 31
	11,918 $ 4,706 17,914 2,156 36,694 $ 28,414) ($ 1,644) ( 365) ( 30,423) ($ 6,271 $		842 $ 355) ( 2,341) ( - 1,854) ($ 3,187) ($ 51 665) ( 3,801) ($ 5,655) ($		- $ - - 158 158 $ - $ - - - $ 158 $	12,760 $ 4,351 15,573 2,314 34,998 $ 31,601) ($ 1,593) ( 1,030) ( 34,224) ($ 774 $

~49~

2024

								Recognized	Recognized
					Recognized				in other
					in	profit or	comprehensive
		January1				loss			income	December31
Temporary differences:
Deferred tax assets:
Loss on inventory market value
decline		$	10,221		$	1,697		$	-		$	11,918
Unused compensated absences			3,819			887			-			4,706
Unrealized gain on interafflilates			17,069			845			-			17,914
Pensions			2,572			-	(		416)			2,156
Unrealized loss on foreign
currency exchange			1,286	(		1,286)			-			-
		$	34,967		$	2,143	($		416)		$	36,694
Deferred tax liabilities:
Investment (income) loss	($		22,810)	($		5,604)		$	-	($		28,414)
Depreciation	(		1,695)			51			-	(		1,644)
Unrealized gain on foreign
currency exchange			-	(		365)			-	(		365)
	($		24,505)	($		5,918)		$	-	($		30,423)
		$	10,462	($		3,775)	($		416)		$	6,271

D. The Company’s income tax returns through 2023 have been assessed and approved by the Tax Authority. There were no disputes existing between the Company and the Tax Authority as of February 26, 2026.

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(24) Earnings per share (“EPS”)

Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Employees’ compensation Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Employees’ compensation Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	Weighted average number of shares outstanding EPS Amount after tax (sharesin thousands) (indollars) 79,421 $ 87,262 0.91 $ 79,421 $ 87,262 - 124 79,421 $ 87,386 0.91 $ For the yearendedDecember31,2025 For the yearendedDecember 31,2024	Weighted average number of shares outstanding EPS Amount after tax (sharesin thousands) (indollars) 79,421 $ 87,262 0.91 $ 79,421 $ 87,262 - 124 79,421 $ 87,386 0.91 $ For the yearendedDecember31,2025 For the yearendedDecember 31,2024	Weighted average number of shares outstanding EPS Amount after tax (sharesin thousands) (indollars) 79,421 $ 87,262 0.91 $ 79,421 $ 87,262 - 124 79,421 $ 87,386 0.91 $ For the yearendedDecember31,2025 For the yearendedDecember 31,2024
	Amount after tax 93,813 $ 93,813 $ - 93,813 $	Weighted average number of shares outstanding (sharesin thousands) 87,262 87,262 99 87,361	EPS (indollars)
			1.08 $
			1.07 $

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(25) Supplemental cash flow information

A. Investing activities with partial cash payments:

				For the years ended	For the years ended	For the years ended	For the years ended	For the years ended	December31,	December31,
					2025					2024
Acquisition of property, plant and equipment				$		50,455		$		56,801
Add: Beginning balance of notes		payable				124				1,487
Beginning balance of payable for
equipment						4,638				4,117
Less: Ending balance of notes payable			(			3,774)	(			124)
Ending balance of payable		for
equipment			(			4,594)	(			4,638)
Capitalization of interest			(			544)	(			7,298)
Cash paid for acquisition of property, plant
and equipment				$		46,305		$		50,345
B. Investing activities with no cash		flow effects:
				For the years ended					December 31,
					2025					2024
Prepayments for equipment reclassified
to property, plant and equipment				$		53,885		$		5,709
Changes in liabilities from financing activities
										Liabilities from
	Short-term					Long-term				financing
	borrowings		Leaseliability			borrowings				activities-gross
At January 1, 2025	$	160,000	$	87,065	$	1,265,882			$	1,512,947
Changes in cash flow from
financing activities		70,000	(	4,134)	(	168,374)			(	102,508)
Effect of changes in foreign
exchange rate		-		-		4,021				4,021
At December 31, 2025	$	230,000	$	82,931	$	1,101,529			$	1,414,460
										Liabilities from
	Short-term					Long-term				financing
	borrowings		Leaseliability			borrowings				activities-gross
At January 1, 2024	$	365,000	$	82,452	$	928,174			$	1,375,626
Changes in cash flow from
financing activities	(	205,000)	(	4,061)		331,580				122,519
Revaluations		-		8,674			-			8,674
Effect of changes in foreign
exchange rate		-		-		6,128				6,128
At December 31, 2024	$	160,000	$	87,065	$	1,265,882			$	1,512,947

(26) Changes in liabilities from financing activities

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7. RELATED PARTY TRANSACTIONS

(1) Significant transactions and balances with related parties

None.

(2) Key management compensation

Key management compensation
	For the years endedDecember31,
	2025	2024
Salaries and other short-term employee benefits	28,578 $	28,323 $

8. PLEDGED ASSETS

The Group’s assets pledged as collateral are as follows:

Asset pledged Restricted time deposits (Note 1) Land (Note 2) Buildings - net (Note 2)	December 31, 2025 December31,2024 8,700 $ 8,700 $ 372,326 374,718 495,584 513,582 876,610 $ 897,000 $ Bookvalue	Purpose ofcollateral
	December 31, 2025 8,700 $ 372,326 495,584 876,610 $
		Performance guarantee Guarantee for long-term borrowings Guarantee for long-term borrowings

(Note 1) Listed as ‘Financial assets at amortized cost - current’.

(Note 2) Listed as ‘Property, plant and equipment’.

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

• (1) As of December 31, 2025 and 2024, the endorsements and guarantees provided by the Company to the subsidiary, cpc Europa GmbH, amounted to $332,100 and $307,260, respectively, and the actual amounts drawn down were $79,950 and $128,025, respectively.

• (2) As of December 31, 2025 and 2024, the Group’s remaining balance due for construction in progress and prepayments for equipment were $64,066 and $92,048, respectively.

• (3) On January 3, 2024, the Company entered into a mid-term secured syndicated loan contract for a credit line facility of $2,000,000 with 10 financial institutions including Mega International Commercial Bank Co., Ltd. The credit term is 7 years. Under the terms of the syndicated loan, the Company agrees that:

• A. The financial ratios stated in the Company’s semi-annual reviewed financial statements and annual audited financial statements shall meet the following financial ratios which will be assessed semiannually:

  • (a) Current ratio (current assets/current liabilities): At least 100%.

  • (b) Liability ratio (total liabilities/net equity): Less than 220% from 2023 to 2025; less than 200% in 2026 and 2027; less than 180% from 2028.

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• (c) Tangible net value (shareholders’ equity less intangible assets): At least $1,300,000.

• B. If the Company violates the above financial covenants, the Company should improve within 9 months after the fiscal year or half fiscal year. It will not be considered as default, if the audited or reviewed financial ratios comply with the covenants after the improvement period. During the improvement period, the credit line which has not been withdrawn will be frozen, until the financial covenants are met. In addition, for withdrawn credit, its financing rate shall be increased by an additional 0.125% per annum from the date after the notification by the management bank to the date after the completion of improvement.

As of December 31, 2025, the Company has not violated any of the above covenants.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT SUBSEQUENT EVENTS

None.

12. OTHERS

(1) Capital management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce the level of debt.

(2) Financial instruments

• A. Details of the Group’s financial instruments by category are provided in Note 6.

• B. Financial risk management policies

• (a) The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk.

• (b) Risk management is carried out by a central treasury department (Group treasury) under policies approved by the Board of Directors. Group treasury identifies, evaluates and hedges financial risks in close cooperation with the Group’s operating units. The Board provides written principles for overall risk management, as well as written policies covering specific areas and matters, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.

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• C. Significant financial risks and degrees of financial risks

• (a) Market risk

  • I. Foreign exchange risk

  • (i) The Group operates internationally and is exposed to foreign exchange risk arising from the transactions of the Company and its subsidiaries denominated in various functional currency, primarily with respect to USD, EUR and JPY. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities.

  • (ii)Management has set up a policy to require group companies to manage their foreign exchange risk against their functional currency. The companies are required to hedge their entire foreign exchange risk exposure with the Group treasury.

  • (iii)The Group has certain investments in foreign operations, whose net assets are exposed to foreign currency translation risk. However, as the objective of the net investments in foreign operations is for strategic purposes, the Group does not hedge the investments.

  • (iv)The Group’s businesses involve some non-functional currency operations (the Company’s functional currency: NTD, the subsidiaries’ functional currency: USD, EUR and CNY). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

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

December 31, 2025
Foreign currency Exchange Book value
amount (in thousands) rate (NTD)
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD $ 6,135 31.43 $ 189,655
JPY:NTD 85,519 0.2008 17,172
EUR:NTD 2,143 36.90 79,087
Financial liabilities
Monetary items
EUR:NTD 287 36.90 10,480
----- End of picture text -----

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(Foreign currency: functional currency) Financial assets Monetary items USD:NTD JPY:NTD EUR:NTD Financial liabilities Monetary items EUR:NTD	Foreign currency Exchange Book value amount(in thousands) rate (NTD) 4,680 $ 32.785 153,433 $ 52,621 0.2099 11,045 2,003 34.14 68,377 611 34.14 20,979 December31,2024

Sensitivity analysis of foreign exchange risk is primarily for foreign currency monetary items at financial reporting date. If the exchange rate of NTD to other currencies had appreciated/depreciated by 1% with all other factors remaining constant, the Group’s net profit after tax for the years ended December 31, 2025 and 2024 would decrease/increase by $2,203 and $1,695, respectively.

• (v)The total exchange (loss) gain, including realized and unrealized arising from significant foreign exchange variation on the monetary items held by the Group for the years ended December 31, 2025 and 2024 amounted to ($74) and $26,790, respectively.

• II. Price risk

• (i) The Group’s equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio and set stop-loss amounts for these instruments. The Group expects no significant market risk.

• (ii) The Group’s investments in equity securities comprise shares issued by the domestic companies. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 10% with all other variables held constant, post-tax profit for the years ended December 31, 2025 and 2024 would have increased/decreased by $5,341 and $3,903, respectively, as a result of gains/loss on equity securities classified as at fair value through profit or loss.

III. Cash flow and fair value interest rate risk

• (i) The Group’s main interest rate risk arises from short-term and long-term borrowings with variable rates, which expose the Group to cash flow interest rate risk. However, partial interest rate risk is offset by cash and cash equivalents held at variable rates. For the years ended December 31, 2025 and 2024, the Group’s borrowings at variable rate were mainly denominated in NTD, EUR, and USD.

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• (ii) The Group’s borrowings are measured at amortized cost. The borrowings are periodically contractually repriced and to that extent are also exposed to the risk of future changes in market interest rates.

• (iii) If the borrowing interest rate had increased/decreased by 10% with all other variables held constant, profit, net of tax for the years ended December 31, 2025 and 2024 would have decreased/increased by $2,629 and $2,445, respectively. The main factor is that changes in interest expense result from floating rate borrowings.

• (b) Credit risk

• I. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms.

• II. The Group manages its credit risk taking into consideration the entire group’s concern. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analyzing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. The utilization of credit limits is regularly monitored.

• III. The Group manages its credit risk, whereby if the contract payments are past due over based on the terms, there has been a significant increase in credit risk on that instrument. If the contract payment are past due over 365 days based on the terms, the default has occurred.

• IV.The Group classifies customers’ accounts receivable in accordance with the credit rating of customers and credit risk on trade. The Group applies the simplified approach using the provision matrix and the forecast ability to adjust historical and timely information to estimate expected credit loss. The Group’s provision matrix as of December 31, 2025 and 2024 is as follows:

2024 is as follows:
December31,2025 Expected loss rate Total book value Loss allowance December31,2024 Expected loss rate Total book value Loss allowance	Current 0.03%~2% 215,497 $ 1,596 Current 0.03%~2% 178,085 $ 893	Upto180 days 0.03%~22.65% 73,628 $ 6,272 Upto180 days 0.03%~37.63% 55,016 $ 4,374	More than 181 days pastdue 22%~100% 15,876 $ 15,338 More than 181 days pastdue 0.03%~100% 17,793 $ 15,801	Total
				305,001 $ 23,206 Total
				250,894 $ 21,068

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• V. Movements in relation to the Group applying the simplified approach to provide loss allowance for accounts receivable are as follows:

At January 1 Provision for impairment Effect of foreign exchange At December 31	2025 2024 Accountsreceivable Accountsreceivable 21,068 $ 20,131 $ 1,781 349 357 588 23,206 $ 21,068 $ For the years endedDecember31,

(c) Liquidity risk

• I. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group treasury. Group treasury monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Group does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities.

• II. Surplus cash held by the operating entities over and above balance required for working capital management are transferred to the Group treasury. Group treasury invests surplus cash in interest bearing current accounts, time deposits and marketable securities, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient headroom as determined by the abovementioned forecasts. The Group is expected to readily generate cash inflows for managing liquidity risk.

• III. The Group has the following undrawn borrowing facilities:

Floating rate: Expiring within one year Expiring beyond one year	December31,2025 1,175,035 $ 1,240,000 2,415,035 $	December31,2024
		1,024,050 $ 1,368,025
		2,392,075 $

• IV. The table below analyzes the Group’s non-derivative financial liabilities and relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

~58~

December31,2025 Non-derivative financial liabilities: Short-term borrowings Notes payable Accounts payable Other payables Lease liability Long-term borrowings (including current portion) December 31, 2024 Non-derivative financial liabilities: Short-term borrowings Notes payable Accounts payable Other payables Lease liability Long-term borrowings (including current portion)	Lessthan 1year 230,461 $ 78,837 26,917 120,711 5,665 306,299 Lessthan 1year 160,404 $ 62,338 33,036 118,386 5,665 321,462	Between 1 and2years - $ - - - 5,665 401,211 Between 1 and2years - $ - - - 5,665 360,835	Between 2 and 5 years - $ - - - 16,995 56,167 Between 2 and 5 years - $ - - - 16,995 259,043	More than 5 years
				- $ - - - 67,979 401,127 More than 5 years
				- $ - - - 73,644 410,093

• V. The Group does not expect the timing of occurrence of the cash flows estimated through the maturity date analysis will be significantly earlier, nor expect the actual cash flow amount will be significantly different.

(3) Fair value information

• A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:

• Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.

• Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

• Level 3: Unobservable inputs for the asset or liability. The fair value of the Group’s investment in equity investment without active market is included in Level 3.

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• B. The carrying amounts of the Group’s financial instruments not measured at fair value (including cash and cash equivalents, financial assets at amortized cost - current, notes receivable, accounts receivable, other receivables, guarantee deposits paid, short-term borrowings, notes payable, accounts payable, other payables and long-term borrowings (including current portion)) are approximate to their fair values.

• C. The related information on financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets is as follows:

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

December 31, 2025 Level 1 Level 2 Level 3 Total
Assets
Recurring fair value measurements
Financial assets at fair value through
profit or loss
- -
Equity securities $ $ $ 66,760 $ 66,760
December 31, 2024 Level 1 Level 2 Level 3 Total
Assets
Recurring fair value measurements
Financial assets at fair value through
profit or loss
Equity securities $ - $ - $ 48,792 $ 48,792
----- End of picture text -----

• D. The fair value of financial instruments is measured by using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the consolidated balance sheet date.

• E. For the years ended December 31, 2025 and 2024, there was no transfer between Level 1 and Level 2.

• F. The following chart is the movement of Level 3:

Level 2. The following chart is the movement of Level 3:
At January 1 Acquired during the year Gains (losses) recognized in profit or loss At December 31	2025 2024 Equityinstrument Equityinstrument 48,792 $ - $ - 50,000 17,968 1,208) ( 66,760 $ 48,792 $ For the years endedDecember31,
	2025 Equityinstrument 48,792 $ - 17,968 ( 66,760 $

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• G. Group treasury is in charge of valuation procedures for fair value measurements being categorized within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, and frequently calibrating valuation model, performing back-testing, updating inputs used to the valuation model and making any other necessary adjustments to the fair value.

• H. The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

Non-derivative equity instrument: Equity securities Non-derivative equity instrument: Equity securities	Fair value at December 31, 2025	Valuation technique	Significant unobservable input	Range (weighted average) － Range (weighted average)	Relationship of inputs to fairvalue
	66,760 $ Fair value at December 31, 2024	Net asset value Valuation technique	Not applicable Significant unobservable input		Not applicable Relationship of inputs to fair value
	48,792 $	Net asset value	Not applicable	－	Not applicable

13. SUPPLEMENTARY DISCLOSURES

(According to the regulatory requirement, only information for the year ended December 31, 2025 is disclosed.)

(1) Significant transactions information

• A. Loans to others: None.

• B. Provision of endorsements and guarantees to others: Refer to table 1.

• C. Holding of significant marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Refer to table 2.

• D. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: Refer to table 3.

• E. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: None.

• F. Significant inter-company transactions during the reporting period: Refer to table 4.

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(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Refer to table 5.

(3) Information on investments in Mainland China

• A. Basic information: Refer to table 6.

• B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Refer to table 7.

14. SEGMENT INFORMATION

(1) General information

The management of the Group has identified the operating segments based on how the Group’s chief operating decision maker regularly reviews information in order to make decisions. The Group’s chief operating decision maker manages the business from an entity’s perspective. The Group’s corporate composition, the basis for division and the basis for measuring departmental information have not changed significantly during the current period.

(2) Measurement segment information

The chief operating decision-maker evaluates the performance of operating segments based on pretax income excluding non-recurring income. For details of operating segments, accounting policies, refer to Note 4.

(3) Information about segment profit or loss, assets and liabilities

The segment information provided to the chief operating decision-maker for the reportable segments is as follows:

is as follows:
Segment revenue Inter-segment revenue ( External revenue Interest income Depreciation and amortization Capital expenditures Finance costs Segment pre-tax income Segment assets Segment liabilities		For the yearendedDecember31,2025				Total 1,546,950 $ 408,634) 1,138,316 10,629 87,384 63,854 33,849 157,428 4,093,274 1,684,969
	CHIEFTEK PRECISION 791,842 $ 397,148) 394,694 6,388 80,946 63,273 28,028 92,654 3,292,757 1,494,007	Chieftek (Kunshan) 119,153 $ - ( 119,153 367 109 - - 9,675 187,882 3,558	cpcEuropa 382,506 $ 364) 382,142 33 2,730 542 3,491 380 250,269 101,045	cpc USA 242,327 $ - ( 242,327 2,425 256 39 - 52,108 161,058 5,873	Others 11,122 $ 11,122) ( - 1,416 3,343 - 2,330 2,611 201,308 80,486

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

For the year ended December 31, 2024
CHIEFTEK Chieftek
PRECISION (Kunshan) cpc Europa cpc USA Others Total
Segment revenue $ 811,259 $ 136,703 $ 335,904 $ 198,025 $ 11,469 $ 1,493,360
Inter-segment
revenue ( 445,182) - ( 128) - ( 11,469) ( 456,779)
----- End of picture text -----

External revenue	366,077	136,703		335,776	198,025	-	1,036,581	1,036,581
Interest income	5,630	1,051		50	2,235	1,246		10,212
Depreciation and
amortization	69,816	91		2,675	427	3,449		76,458
Capital expenditures	103,118	307		4,669	203	-		108,297
Finance costs	17,422	-		4,969	-	2,477		24,868
Segment pre-tax
income	110,167	13,240	(	1,855)	21,856	2,567		145,975
Segment assets	3,361,598	219,575		235,819	129,971	212,964	4,159,927
Segment liabilities	1,526,859	884		148,399	4,023	87,946	1,768,111
Reconciliation for segment income
Sales between segments are carried		out at arm’s length. The			revenue	from external customers
reported to the chief operating decision-maker is				measured in a	manner consistent with that in the
statement of comprehensive income. A reconciliation of reportable segments pre-tax income								to profit
before income tax from	continuing operations is provided as follows:
				For the	years endedDecember31,
				2025			2024
Reportable segments pre-tax income				$	154,817	$		143,408
Other segments pre-tax gain					2,611			2,567
Inter segments gain			(		46,228)	(		28,020)
Profit before income tax				$	111,200	$		117,955

(4) Reconciliation for segment income

(5) Information on products and services

The Group is engaged solely in the research and development, manufacture and sales of miniature linear guide, miniature ball screw, and miniature linear modules. Information relating to product sales revenue is provided in Note 6(16), ‘Operating revenue’.

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(6) Geographical information

Geographical information for the years ended December 31, 2025 and 2024 is as follows:

Geographical information Geographical information for the years ended December 31,	2025 and 2024 is as follows:	2025 and 2024 is as follows:
Revenue (Note) assets Germany 382,141 $ 43,273 $ USA 242,327 159,913 China 158,367 920 Taiwan 125,417 1,913,943 Singapore 72,303 - Others 157,761 - 1,138,316 $ 2,118,049 $ YearendedDecember31,2025	Revenue (Note) assets 335,776 $ 42,122 $ 198,025 170,095 163,505 1,029 126,778 1,932,490 58,824 - 153,673 - 1,036,581 $ 2,145,736 $ YearendedDecember31,2024
		42,122 $ 170,095 1,029 1,932,490 - - 2,145,736 $

(Note) The revenue is classified based on the location of the customer’s country.

(7) Major customer information

The Group’s revenues from each customer for the years ended December 31, 2025 and 2024 are less than 10% of the amount of operating revenue on the consolidated statement of comprehensive income.

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CHIEFTEK PRECISION CO., LTD. AND SUBSIDIARIES

Table 1

Expressed in thousands of NTD

Provision of endorsements and guarantees to others

For the year ended December 31, 2025

Nunber (Note 1)	Endorser/ guarantor	Party being endorsed/guaranteed	Party being endorsed/guaranteed	Limit on endorsements/ guarantees provided for a single party (Note 3)	Maximum outstanding endorsement/ guarantee amount during theyear	Outstanding endorsement/ guarantee amount at December 31, 2025	Actual amount drawn down	Amount of endorsements/ guarantees secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantor company	Ceiling on total amount of endorsements/ guarantees provided (Note 3)	Provision of endorsements/ guarantees by parent company to subsidiary	Provision of endorsements/ guarantees by subsidiary to parent company	Provision of endorsements/ guarantees to the party in Mainland China	Footnote
		Companyname	Relationship with the endorser/ guarantor （Note2）
0	CHIEFTEK PRECISION CO., LTD.	cpc Europa GmbH	1	1,204,153 $	332,100 $	332,100 $	79,950 $	- $	14%	1,204,153 $	Y	N	N	－

(Note 1) The numbers filled in for the endorsements/gurantees provided by the Company or subsidiaries are as follows:

• (1) Parent company is ‘0’.

• (2) The subsidiaries are numbered in order starting from ‘1’.

• (Note 2) The following code respresents the relationship with the Company:

• (1) The Company owns directly and indirectly more than 50% voting shares of the endorsed/guaranteed subsidiary.

• (Note 3) (1) The limit of total amount of endorsements/guarantees is 50% of the Company’s net worth of the latest financial statements, and the limit of total amount of endorsements/guarantees for a single party is 20% of the Company’s net worth of the latest financial statements. Between companies whose voting shares are held by the Company directly and indirectly more than 90%, an endorsement guarantee may be made and its amount shall not exceed 10% of the Company’s net worth of the latest financial statements. However, this does not apply to inter-company endorsement guarantees where the Company directly or indirectly holds 100% of the voting shares.

• (2) For any endorsements or gurantees provided by the Company due to business dealings, except for the abovementioned limit, the amount of endorsements or gurantees shall be limited to the business dealing amount of the most recent year. The business deeling amount is product purchase or sale amount between the entities, whichever is higher.

• (3) Between companies whose voting shares are 100% held by the Company directly and indirectly, and the limit of total amount of endorsements/guarantees is 50% of the company’s, who provide endorsement guarantee, net worth of the latest financial statements, and the limit of total amount of endorsements/guarantees to a single party is 50% of the company’s, who provide endorsement guarantee, net worth of the latest financial statements.

• (4) The limit of total amount of endorsements/guarantees provided by the Company and subsidiaries is 50% of the Company’s net worth of the latest financial statements, and the limt of total amount of endorsements/guarantees provided by the Company and subsidiaries to a single party is 50% of the Company' s net worth of the latest financial statements.

• (Note 4) Foreign currencies were translated into New Taiwan Dollars using the exchange rate (USD:NTD 1:31.43) as of December 31, 2025.

Table 1, Page 1

CHIEFTEK PRECISION CO., LTD. AND SUBSIDIARIES

Holding of significant marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) December 31, 2025

Table 2

Expressed in thousands of NTD

Securitiesheld by	Marketable securities	Relationship with the securitiesissuer	General ledgeraccount		As of December31,2025	As of December31,2025		Footnote
				Numberofshares	Bookvalue	Ownership (%)	Fairvalue
CHIEFTEK PRECISION CO., LTD.	Stocks: Phoenix VI Innovation Investment Co., Ltd.	－	Financial assets at fair value through profit or loss - non-current	5,000,000	66,760 $	2.54%	66,760 $	－

Table 2, Page 1

CHIEFTEK PRECISION CO., LTD. AND SUBSIDIARIES

Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more For the year ended December 31, 2025

Table 3

Expressed in thousands of NTD

Differences in transaction terms

							Differences in transaction terms	Differences in transaction terms
Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction			transactions compared to third party		Notes/accounts receivable(payable)		Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable)
CHIEFTEK PRECISION CO., LTD. cpc Europa GmbH	cpc Europa GmbH CHIEFTEK PRECISION CO., LTD.	Subsidiary The Company	(Sales) Purchases	($ 248,057) 248,057	(31%) 89%	(Note 1) (Note 1)	$ - -	(Note 2) (Note 3)	$ 76,583 76,583) (	30% (100%)	－ －

(Note 1) 180 days after monthly-closing, T/T.

(Note 2) The Company's collection terms to third parties are 30 to 180 days after monthly statements.

(Note 3) The Company's payment terms to third parties are 30 to 60 days after monthly statements.

Table 3, Page 1

Table 4

Expressed in thousands of NTD

CHIEFTEK PRECISION CO., LTD. AND SUBSIDIARIES

- Significant inter company transactions during the reporting period

For the year ended December 31, 2025

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)		Transaction	Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets(Note 3)
0 1	CHIEFTEK PRECISION CO., LTD. CHIEFTEK PRECISION USA CO., LTD.	cpc Europa GmbH CHIEFTEK PRECISION USA CO., LTD. Chieftek Machinery (Kunshan) Co., Ltd. CHIEFTEK PRECISION INTERNATINAL LLC	1 1 1 3	Endorsements and guarantees Sales revenue Accounts receivable Sales revenue Sales revenue Accounts receivable Rent payment Guarantee deposits paid	332,100 $ 248,057 76,583 90,349 58,742 24,756 11,112 1,572	－ 180 days after monthly-closing, T/T － 180 days after monthly-closing, T/T 180 days after monthly-closing, T/T － － －	8% 22% 2% 8% 5% 1% 1% －

• (Note 1) The numbers filled in for the transaction company in respect of inter-company transactions are as follows:

• (1) Parent company is ‘0’.

• (2) The subsidiaries are numbered in order starting from ‘1’.

• (Note 2) Relationship between transaction company and counterparty is classified into the following three categories:

• (1) Parent company to subsidiary.

• (2) Subsidiary to parent company.

• (3) Subsidiary to subsidiary.

• (Note 3) Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.

• (Note 4) Only transactions over 1 million are disclosed.

• (Note 5) Foreign currencies were translated into New Taiwan Dollars using the exchange rate (USD:NTD 1:31.43) as of December 31, 2025.

Table 4, Page 1

CHIEFTEK PRECISION CO., LTD. AND SUBSIDIARIES Names, locations and other information of investee companies (not including investees in Mainland China) For the year ended December 31, 2025 Table 5

Expressed in thousands of NTD

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Sharesheldas of December 31,2025	Sharesheldas of December 31,2025	Sharesheldas of December 31,2025	Net profit (loss) of the investee for the year ended December 31,2025	Investment income (loss) recognized by the Company for the year ended December 31,2025	Footnote
				Balance as of December 31,2025	Balance as of December 31,2024	Number of shares	Ownership (%)	Book value
CHIEFTEK PRECISION CO., LTD.	CHIEFTEK PRECISION HOLDING CO., LTD. CHIEFTEK PRECISION INTERNATIONAL LLC CHIEFTEK PRECISION USA CO., LTD. cpc Europa GmbH	Samoa United States of America United States of America Germany	Professional investment Lease of real estate property Sales of high precision linear motion components and rendering after -sale services Sales of high precision linear motion components and rendering after -sale services	152,263 $ 110,054 50,027 98,695	152,263 $ 110,054 50,027 98,695	5,100,000 - 1,660,000 -	100% 100% 100% 100%	159,623 $ 119,196 156,556 72,641	6,939 $ 1,874 37,369 46	6,939 $ 1,874 37,369 46	Subsidiary Subsidiary Subsidiary Subsidiary

(Note) Foreign currencies were translated into New Taiwan Dollars using the exchange rate (USD:NTD 1:31.43) as of December 31, 2025.

Table 5, Page 1

CHIEFTEK PRECISION CO., LTD. AND SUBSIDIARIES

Information on investments in Mainland China - Basic information

Expressed in thousands of NTD

For the year ended December 31, 2025

Table 6

Investee in Mainland China	Main business activities	Paid-in capital	Investment method	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2025	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the year ended December 31,2025	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the year ended December 31,2025	Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2025	Net income of investee for the year ended December 31, 2025	Ownership held by the Company (direct or indirect)	Investment income (loss) recognized by the Company for the year ended December 31, 2025 （Note 2）	Book value of investments in Mainland China as of December 31,2025	Accumulated amount of investment income remitted back to Taiwan as of December 31, 2025	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Chieftek Machinery (Kunshan) Co., Ltd.	Production, processing and sales of high precision linear motion components and rendering after-sale services	160,293 $	Note 1	160,293 $	- $	- $	160,293 $	6,937 $	100%	6,937 $	166,935 $	288,666 $	－

Companyname	Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2025	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA(Note 3)
CHIEFTEK PRECISION CO., LTD.	160,293 $	160,293 $	1,444,983 $

(Note 1) Through investing in an existing company in the third area (CHIEFTEK PRECISION HOLDING CO., LTD.) which then invested in the investee in Mainland China.

(Note 2) The investment income (loss) is recognized based on the investees’ financial statements that were audited by the parent company’s auditors for the year ended December 31, 2025. (Note 3) The ceiling amount is 60% of the higher of net worth or consolidated net worth.

(Note 4) Foreign currencies were translated into New Taiwan Dollars using the exchange rate (USD:NTD 1:31.43) as of December 31, 2025.

Table 6, Page 1

CHIEFTEK PRECISION CO., LTD. AND SUBSIDIARIES

Information on investments in Mainland China - Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area For the year ended December 31, 2025 Table 7

Table 7 Investeein Mainland China	Sales (purchase)	Sales (purchase)	Propertytransaction	Propertytransaction	Accountsreceivable	(payable)	Provision of endorsements/guarantees orcollaterals	Provision of endorsements/guarantees orcollaterals		Financing	Financing	Interest during the year ended December 31, 2025 Expressed in thousands of NTD Others	Interest during the year ended December 31, 2025 Expressed in thousands of NTD Others
	Amount	%	Amount	%	Balance at December 31,2025	%	Balance at December 31, 2025	Purpose	Maximum balance during the year ended December 31,2025	Balance at December 31, 2025	Interest rate	Interest during the year ended December 31, 2025
Chieftek Machinery (Kunshan) Co., Ltd.	$ 58,742	7%	$ -	-	$ 24,756	10%	$ -	-	$ -	- $	-	- $	- $

Table 7, Page 1