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CREATIVE SENSOR INC. AND
SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS AND
INDEPENDENT AUDITORS' REPORT
DECEMBER 31, 2025 AND 2024

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.

Creative Sensor Inc.
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 company that is required to be included in the consolidated financial statements of affiliates, is the same as the company required to be included in the consolidated financial statements of parent and subsidiary companies under International Financial Reporting Standard 10. Also, if 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, it shall not be required to prepare separate consolidated financial statements of affiliates.

Hereby declare,

Representative: Ko Ikujin
March 9, 2026

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INDEPENDENT AUDITORS' REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of CREATIVE SENSOR INC.

Opinion

We have audited the accompanying consolidated balance sheets of Creative Sensor Inc. and its subsidiaries (the "Group") as at 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, based on our audits and the reports of the other auditors (please refer to the Other matter section), the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at 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, IFRIC Interpretations, and SIC 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. Based on our audits and the reports of other auditors, 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 outlined as follows:

Evaluation of the Reasonableness of the Purchase Price Allocation for a Significant Business Combination

Description

For the accounting policies on business combinations, please refer to Note 4(29) to the consolidated financial statements. For the accounting treatment of the business combination and the description of the purchase price allocation, please refer to Note 6(26) to the consolidated financial statements.

In October 2025, the Group acquired L&K Industries Philippines, Inc. The purchase price allocation (PPA) for this acquisition was based on a report from an external expert engaged by management. Due to the significant management judgment involved in the identification and valuation of intangible assets, and the material impact of the transaction consideration and the resulting assets (including goodwill and intangible assets) and liabilities on the financial statements, we determined the reasonableness of the PPA for this business combination to be a key audit matter for the current year.

~5~

How our audit addressed the matter

We performed the following audit procedures on the above key audit matter:

Evaluated the competence, capabilities, and objectivity of the external valuation expert engaged by management.
With the assistance of our internal valuation specialists, we reviewed the reasonableness of the source data and key assumptions used in the measurement of identifiable assets and liabilities within the PPA report prepared by the external expert. Our procedures included the following:

(1) Reviewing the valuation methodologies and calculation formulas used by the external expert.

(2) Reviewing the projected revenue growth rates and gross margins used, and comparing them with historical results and industry forecast reports.

(3) Reviewing the discount rate used and comparing it with the rates of return for similar assets in the market. We also compared the discount rate used in the valuation with the cost of capital assumptions for the cash-generating unit and the rates of return for similar assets.

Reviewed the accounting treatment, presentation, and disclosure of this transaction in the financial statements.

Other matter – Reference to the audits of the other auditors

We did not audit the financial statements of certain investments accounted for using the equity method which were audited by other auditors. Therefore, our opinion expressed herein, insofar as it relates to the amounts included in respect of these associates, is based solely on the reports of the other auditors. The balance of these investments accounted for under the equity method amounted to NT$334,939 thousand and NT$421,955 thousand, constituting 3.24% and 4.65% of the consolidated total assets as at December 31, 2025 and 2024, respectively, and the comprehensive (loss) income recognized from associates and joint ventures accounted for under the equity method amounted to (NT$80,614) thousand and NT$195,976 thousand, constituting (5.62%) and 14.57% of the consolidated total comprehensive income for the years then ended, respectively.

~6~

Other matter – Parent company only financial reports

We have audited and expressed an unmodified opinion on the parent company only financial statements of Creative Sensor Inc. as at 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, IFRIC Interpretations, and SIC 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 the Audit Committee, are responsible for overseeing the Group’s financial reporting process.

Auditors’ responsibilities for the audit of the consolidated financial statements

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

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

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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 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.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the 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.

Lin, Po-Chuan
LIN, PO-CHUAN

Lin, Yung-Chih
Lin, Yung-Chih

For and on Behalf of PricewaterhouseCoopers, Taiwan
March 9, 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 Taiwan 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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(Expressed in thousands of New Taiwan dollars)

CREATIVE SENSOR INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2025 AND 2024

	Assets	Notes	December 31, 2025		December 31, 2024
			AMOUNT	%	AMOUNT	%
Current assets
1100	Cash and cash equivalents	6(1)	$ 3,056,458	30	$ 3,103,866	34
1110	Financial assets at fair value through profit or loss - current	6(2)	260,122	2	91,322	1
1136	Financial assets at amortized cost - current, net	6(3)	12	-	32,737	1
1170	Accounts receivable, net	6(4)	500,091	5	663,994	7
1180	Accounts receivable - related parties, net	6(4) and 7	20,379	-	1,273	-
1200	Other receivables		719	-	8,757	-
1210	Other receivables - related parties, net	7	11	-	8	-
130X	Inventories, net	6(5)	386,880	4	378,608	4
1479	Other current assets		46,196	-	31,658	1
11XX	Total current assets		4,270,868	41	4,312,223	48
Non-current assets
1510	Non-current financial assets at fair value through profit or loss	6(2)	97,442	1	-	-
1517	Non-current financial assets at fair value through other comprehensive income	6(6) and 8	4,401,447	43	3,278,749	36
1550	Investments accounted for using the equity method	6(7)	1,074,167	10	1,205,004	13
1600	Property, plant and equipment, net	6(8) and 7	216,830	2	144,408	2
1755	Right-of-use assets	6(9)	85,149	1	79,764	1
1780	Intangible assets	6(26)	160,458	2	4,649	-
1840	Deferred income tax assets	6(24)	15,432	-	12,424	-
1990	Other non-current assets	6(13)	30,643	-	30,689	-
15XX	Total non-current assets		6,081,568	59	4,755,687	52
1XXX	Total assets		$ 10,352,436	100	$ 9,067,910	100

(Continued)

CREATIVE SENSOR INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity	Notes	December 31, 2025		December 31, 2024
		AMOUNT	%	AMOUNT	%
Current liabilities
2100	Short-term borrowings	6(10) and 8	$ 1,300,000	13	$ 1,300,000	14
2120	Financial liabilities at fair value	6(11)
	through profit or loss - current		10,268	-	24,673	-
2170	Accounts payable		615,394	6	737,768	8
2180	Accounts payable - related parties	7	225,777	2	220,455	3
2200	Other payables	6(12)	313,377	3	285,907	3
2220	Other payables - related parties	7	3,428	-	403	-
2230	Income tax payable		82,160	1	96,771	1
2280	Current lease liabilities		12,301	-	10,154	-
2300	Other current liabilities		11,955	-	8,382	-
21XX	Total current liabilities		2,574,660	25	2,684,513	29
	Non-current liabilities
2570	Deferred income tax liabilities	6(24)	112,805	1	111,276	1
2580	Non-current lease liabilities		39,548	-	34,059	1
2600	Other non-current liabilities	6(13)	8,701	-	-	-
25XX	Total non-current liabilities		161,054	1	145,335	2
2XXX	Total liabilities		2,735,714	26	2,829,848	31
	Equity attributable to owners of parent
	Share capital	6(15)
3110	Common stock		1,378,245	13	1,341,495	15
	Capital surplus	6(16)
3200	Capital surplus		1,114,940	11	986,117	11
	Retained earnings	6(17)
3310	Legal reserve		666,396	7	628,128	7
3350	Unappropriated retained earnings		1,677,092	16	1,499,454	17
	Other equity interest	6(18)
3400	Other equity interest		2,875,180	28	1,928,736	21
3500	Treasury shares	6(15)	( 95,155)	( 1)	( 145,868)	( 2)
31XX	Equity attributable to owners of the parent		7,616,698	74	6,238,062	69
36XX	Non-controlling interests		24	-	-	-
3XXX	Total equity		7,616,722	74	6,238,062	69
	Significant subsequent events	11
3X2X	Total liabilities and equity		$ 10,352,436	100	$ 9,067,910	100

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

CREATIVE SENSOR INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

	Items	Notes	Year ended December 31
			2025		2024
			AMOUNT	%	AMOUNT	%
4000	Net revenue	6(19) and 7	$ 3,720,643	100	$ 4,200,192	100
5000	Cost of revenue	6(5)(23) and 7	( 2,956,826)	( 80)	( 3,341,806)	( 80)
5900	Gross profit		763,817	20	858,386	20
	Operating expenses	6(23) and 7
6100	Selling expenses		( 64,027)	( 2)	( 61,063)	( 1)
6200	General and administrative expenses		( 268,324)	( 7)	( 236,013)	( 6)
6300	Research and development expenses		( 77,779)	( 2)	( 79,265)	( 2)
6450	Impairment gain (impairment loss)and reversal of impairment loss determined in accordance with IFRS 9	12(2)
			36	-	( 99)	-
6000	Total operating expenses		( 410,094)	( 11)	( 376,440)	( 9)
6900	Income from operations		353,723	9	481,946	11
	Non-operating income and expenses
7100	Interest income	6(20)	62,150	2	41,108	1
7010	Other income	6(21) and 7	137,069	4	134,493	3
7020	Other gains and losses	6(22)	76,113	2	( 89,736)	( 2)
7050	Finance costs	6(9)(10)	( 26,083)	( 1)	( 24,859)	-
7060	Share of profit or loss of associates and joint ventures accounted for using equity method,net	6(7)	( 2,444)	-	10,709	-
7000	Total non-operating income and expenses		246,805	7	71,715	2
7900	Profit before income tax		600,528	16	553,661	13
7950	Income tax expense	6(24)	( 171,156)	( 4)	( 192,390)	( 4)
8200	Net income		$ 429,372	12	$ 361,271	9
	Other comprehensive income
	Components of other comprehensive income that will not be reclassified to profit or loss
8311	Actuarial gains on defined benefit plans	6(13)	$ 1,823	-	$ 2,286	-
8316	Unrealized gains from investments in equity instruments measured at fair value through other comprehensive income	6(6)(18)	1,255,139	34	580,149	14
8320	Share of other comprehensive (loss) income of associates and joint ventures accounted for using equity method	6(7)(18)	( 99,814)	( 3)	333,752	8
8349	Income tax related to components of other comprehensive income that will not be reclassified to profit or loss		( 316)	-	( 457)	-
8310	Other comprehensive income that will not be reclassified to profit or loss		1,156,832	31	915,730	22
	Components of other comprehensive income that will be reclassified to profit or loss
8361	Exchange differences on translation	6(18)	( 148,690)	( 4)	65,419	1
8367	Unrealized (losses) gains from investments in debt instruments measured at fair value through other comprehensive income	6(6)(18)	( 2,749)	-	2,476	-
8370	Share of other comprehensive (loss) income of associates and joint ventures accounted for using equity method	6(7)(18)	( 461)	-	457	-
8360	Other comprehensive (loss) income that will be reclassified to profit or loss		( 151,900)	( 4)	68,352	1
8300	Other comprehensive income for the period		$ 1,004,932	27	$ 984,082	23
8500	Total comprehensive income for the period		$ 1,434,304	39	$ 1,345,353	32
	Profit attributable to:
8610	Owners of parent		$ 429,621	12	$ 361,271	9
8620	Non-controlling interests		( 249)	-	-	-
			$ 429,372	12	$ 361,271	9
	Comprehensive income attributable to:
8710	Owners of parent		$ 1,434,553	39	$ 1,345,353	32
8720	Non-controlling interests		( 249)	-	-	-
			$ 1,434,304	39	$ 1,345,353	32
	Earnings per share (in dollars)	6(25)
9750	Basic earnings per share		$	4.03	$	3.27
9850	Diluted earnings per share		$	3.98	$	3.25

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

CREATIVE SENSOR INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
YEARS ENDED DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

	Equity attributable to owners of the parent
		Capital Reserves					Retained Earnings		Other equity interest		Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income	Treasury shares	Total	Non-controlling interests	Total equity
		Capital stock - common stock	Additional paid-in capital	Treasury stock transactions	Capital surplus, changes in equity of associates and joint ventures accounted for using equity method	Capital surplus, employee share options	Options expired	Legal reserve	Unappropriated retained earnings	Financial statements translation differences of foreign operations
Year ended December 31, 2024
Balance at January 1, 2024		$ 1,490,550	$ 970,251	$ 13,293	$ 607	$ -	$ 50	$ 571,311	$ 1,330,863	$ 46,332	$ 919,729	($ 179,746)	$ 5,163,240	$ -	$ 5,163,240
Net income for the period year		-	-	-	-	-	-	-	361,271	-	-	-	361,271	-	361,271
Other comprehensive income for the period year	6(18)	-	-	-	-	-	-	-	2,535	65,876	915,671	-	984,082	-	984,082
Total comprehensive income		-	-	-	-	-	-	-	363,806	65,876	915,671	-	1,345,353	-	1,345,353
Appropriations of 2023 earnings:	6(17)
Legal reserve		-	-	-	-	-	-	56,817	( 56,817)	-	-	-	-	-	-
Cash dividends		-	-	-	-	-	-	-	( 157,270)	-	-	-	( 157,270)	-	( 157,270)
Capital reduction	6(15)	( 149,055 )	-	-	-	-	-	-	-	-	-	5,032	( 144,023 )	-	( 144,023 )
Share-based payment transactions	6(14)	-	-	-	-	1,775	-	-	-	-	-	-	1,775	-	1,775
Treasury shares transferred to employees		-	-	1,601	-	( 1,775 )	88	-	-	-	-	28,846	28,760	-	28,760
Changes in equity of associates and joint ventures accounted for using equity method	6(18)				227	-	-	-	7,879	-	( 7,879 )	-	227	-	227
Disposal of financial assets at fair value through other comprehensive income	6(6)(18)								10,993	-	( 10,993 )	-	-	-	-
Balance at December 31, 2024		$ 1,341,495	$ 970,251	$ 14,894	$ 834	$ -	$ 138	$ 628,128	$ 1,499,454	$ 112,208	$ 1,816,528	($ 145,868 )	$ 6,238,062	$ -	$ 6,238,062
Year ended December 31, 2025
Balance at January 1, 2025		$ 1,341,495	$ 970,251	$ 14,894	$ 834	$ -	$ 138	$ 628,128	$ 1,499,454	$ 112,208	$ 1,816,528	($ 145,868 )	$ 6,238,062	$ -	$ 6,238,062
Net income for the period		-	-	-	-	-	-	-	429,621	-	-	-	429,621	( 249 )	429,372
Other comprehensive income (loss) for the period	6(18)								1,648	( 149,151 )	1,152,435	-	1,004,932	-	1,004,932
Total comprehensive income (loss)		-	-	-	-	-	-	-	431,269	( 149,151 )	1,152,435	-	1,434,553	( 249 )	1,434,304
Appropriations of 2024 earnings:	6(17)
Legal reserve		-	-	-	-	-	-	38,268	( 38,268 )	-	-	-	-	-	-
Cash dividends		-	-	-	-	-	-	-	( 272,203 )	-	-	-	( 272,203 )	-	( 272,203 )
Issuance of shares	6(15)	36,750	110,250	-	-	-	-	-	-	-	-	-	147,000	-	147,000
Share-based payment transactions	6(14)	-	-	-	18,725	-	-	-	-	-	-	-	18,725	-	18,725
Treasury shares transferred to employees		-	-	12,878	( 18,725 )	-	5,695	-	-	-	-	50,713	50,561	-	50,561
Changes in equity of associates and joint ventures accounted for using equity method	6(18)
Disposal of financial assets at fair value through other comprehensive income	6(6)(18)								57,217	-	( 57,217 )	-	-	-	-
Changes in non-controlling interests		-	-	-	-	-	-	-	( 377 )	-	377	-	-	-	-
Balance at December 31, 2025		$ 1,378,245	$ 1,080,501	$ 27,772	$ 834	$ -	$ 5,833	$ 666,396	$ 1,677,092	($ 36,943 )	$ 2,912,123	($ 95,155 )	$ 7,616,698	$ 24	$ 7,616,722

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

(Expressed in thousands of New Taiwan dollars)

CREATIVE SENSOR INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2025 AND 2024

	Notes	Year ended December 31
		2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax		$ 600,528	$ 553,661
Adjustments
Adjustments to reconcile profit (loss)
Depreciation	6(8)(9)(23)	45,869	51,929
Amortization	6(23)	6,921	7,912
Expected credit impairment (gains) losses	12(2)	(36)	99
Net (profit) loss on financial assets or liabilities at fair value through profit or loss	6(2)(11)(22)	(40,514)	109,517
Foreign currency evaluation of financial assets at fair value through other comprehensive income		3,005	(5,694)
Interest expense	6(9)(10)	26,083	24,859
Interest income	6(20)	(62,150)	(41,108)
Dividend income	6(6)(7)(21)	(114,331)	(111,502)
Share-based payments	6(14)	18,725	1,775
Share of loss (profit) of associates and joint ventures accounted for using equity method	6(7)	2,444	(10,709)
Net gain on disposal of investment	6(22)	(124,253)	-
Net loss (gain) on disposal of property, plant and equipment	6(22)	1,558	(1,046)
Impairment loss on financial assets	6(7)(22)	-	31,977
Gain from lease modification	6(9)(22)	(37)	-
Changes in operating assets and liabilities
Changes in operating assets
Financial assets at fair value through profit or loss		(140,134)	(145,448)
Accounts receivable		205,499	(327,260)
Accounts receivable - related parties		(19,106)	(1,273)
Other receivables		7,120	(3,338)
Other receivables - related parties		(25)	39
Inventories		18,150	(14,735)
Other current assets		(13,049)	(3,671)
Changes in operating liabilities
Accounts payable		(200,955)	311,475
Accounts payable - related parties		8,623	219,196
Other payables		25,611	49,924
Other payables - related parties		3,025	6
Other current liabilities		(9,683)	2,300
Cash inflow generated from operations		248,888	698,885
Interest received		63,017	40,168
Dividends received		142,449	136,742
Interest paid		(26,083)	(24,859)
Income tax paid		(171,497)	(97,505)
Income tax refund received		2,642	1,730
Net cash flows from operating activities		259,416	755,161

(Continued)

CREATIVE SENSOR INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

	Notes	Year ended December 31
		2025	2024
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from disposal of financial assets at amortized cost		$ 33,877	$ 166,677
Acquisition of financial assets at fair value through other comprehensive income		( 78,943 )	( 50,000 )
Proceeds from disposal of financial assets at fair value through other comprehensive income	6(6)	7,671	26,568
Redemption at maturity of financial assets at fair value through other comprehensive income		98,115	-
Acquisition of subsidiaries (net of cash acquired)	6(26)	( 130,183 )	-
Acquisition of property, plant and equipment	6(27)	( 97,433 )	( 30,231 )
Proceeds from disposal of property, plant and equipment		2,842	1,046
Acquisition of intangible assets		( 9,719 )	( 3,063 )
Increase in refundable deposits		( 40 )	( 117 )
Increase in other non-current assets		( 913 )	( 7,125 )
Net cash flows (used in) from investing activities		( 174,726 )	103,755
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of lease principal	6(28)	( 10,589 )	( 10,160 )
Issuance of shares	6(15)	147,000	-
Payment of cash dividends	6(17)	( 272,203 )	( 157,270 )
Change in non-controlling interests arising from the establishment of a subsidiary		273	-
Acquisition of treasury shares		-	( 144,023 )
Treasury shares sold to employees		50,561	28,760
Net cash flows used in financing activities		( 84,958 )	( 282,693 )
Effect of exchange rate		( 47,140 )	55,680
Net (decrease) increase in cash and cash equivalents		( 47,408 )	631,903
Cash and cash equivalents at beginning of year		3,103,866	2,471,963
Cash and cash equivalents at end of year		$ 3,056,458	$ 3,103,866

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

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CREATIVE SENSOR INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2025 AND 2024

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

HISTORY AND ORGANIZATION

Creative Sensor Inc. (the "Company") was incorporated as a company limited by shares under the provisions of the Company Act of the Republic of China (R.O.C.). The Company and its subsidiaries (collectively referred herein as the "Group") are primarily engaged in manufacturing and trading of image sensor and its electronic components. Starting from May 17, 2005, the Company's stock was officially listed on the Taiwan Stock Exchange.

THE DATE OF AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION

These consolidated financial statements were reported to the Board of Directors on March 9, 2026.

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:

New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
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.

(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:

New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
Specific provisions of Amendments to IFRS 9 and IFRS 7, ‘Amendments to the classification and measurement of financial instruments’	January 1, 2026
Amendments to IFRS 9 and IFRS 7, ‘Contracts referencing nature-dependent electricity’	January 1, 2026
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 – comparative information’	January 1, 2023
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 yet included in the IFRS Accounting Standards as endorsed by the FSC are as follows:

New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’	To be determined by International Accounting Standards Board
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 Presentation Currency’	January 1, 2027

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, 'Presentation and disclosure in financial statements' 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 are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

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 and financial liabilities (including derivative instruments) at fair value through profit or loss.
(b) Financial assets at fair value through other comprehensive income.
(c) Defined benefit assets 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 International Financial Reporting Standards, International Accounting Standards, IFRIC® Interpretations, and SIC® Interpretations the came into effect as endorsed by the FSC (collectively referred herein as the "IFRSs") requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(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.

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(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.
(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.

B. Subsidiaries included in the consolidated financial statements:

Name of investor	Name of subsidiary	Main business activities	Ownership (%)		Footnote
			December 31, 2025	December 31, 2024
Creative Sensor Inc.	Creative Sensor Inc.	Holding company	100	100
Creative Sensor Inc.	Creative Sensor (USA) Co.	Research and development of new product Collection of marketing information and maintaining relationship with customers	100	100
Creative Sensor Inc.	Sensorem Photonics India Private Limited	Collection of marketing information	91	-	Note 1
Creative Sensor Inc.	Creative Sensor Co. Ltd.	Holding company	100	100
Creative Sensor Co., Ltd.	Wuxi Creative Sensor Technology Co., Ltd.	Research and development of image sensor	-	100	Note 2
Creative Sensor Co., Ltd.	Nanchang Creative Sensor Technology Co., Ltd.	Manufacturing of image sensor	100	100
Creative Sensor Inc.	L&K Industries Philippines, Inc.	Manufacturing of image sensor	100	-	Note 3

Note 1: It was incorporated in January 2025.
Note 2: The liquidation was completed in June 2025.
Note 3: On October 7, 2025, the Group acquired $100\%$ of the share capital of L&K Industries Philippines, Inc.

C. Subsidiaries not included in the consolidated financial statements: None.
D. Adjustments for subsidiaries with different balance sheet dates: None.
E. Significant restrictions on fund remittance from subsidiaries to the parent company: None.
F. Subsidiaries that have non-controlling interests 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 re-translated 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, non-monetary 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 foreign exchange gains and losses are presented in the statement of comprehensive income within ‘other gains and losses’.

B. Translation of foreign operations

The operating results and financial position of all the group entities, associates and joint arrangements that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

(a) Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;

(b) Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period;

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(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 realised, or are intended to be sold or consumed in the normal operating cycle;

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

(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 twelve 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 that are held primarily for the purpose of trading;

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

(6) Cash equivalents

Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Time deposits that meet the definition above and are held for the purpose of meeting short-term cash commitments 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 settlement date accounting.

C. At initial recognition, the Group measures the financial assets at fair value and recognizes the 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 fair value through other comprehensive income

A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Group has made an irrevocable election at initial recognition to recognize changes in fair value in other comprehensive income and debt instruments which meet all of the following criteria:

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(a) The objective of the Group’s business model is achieved both by collecting contractual cash flows and selling financial assets; and
(b) The assets’ contractual cash flows represent solely payments of principal and interest.

B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognized and derecognized using settlement date accounting.

C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. The Group subsequently measures the financial assets at fair value:

(a) The changes in fair value of equity investments that were recognized in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognized as revenue 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.
(b) Except for the recognition of impairment loss, interest income and gain or loss on foreign exchange which are recognized in profit or loss, the changes in fair value of debt instruments are taken through other comprehensive income. When the financial asset is derecognized, the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss.

(9) 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. On a regular way purchase or sale basis, financial assets at amortized cost are recognized and derecognized using trade date accounting.

C. 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.

(10) Accounts receivable

A. Accounts receivable entitle the Group a legal right to receive consideration in exchange for transferred goods or rendered services.
B. The short-term accounts receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

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(11) Impairment of financial assets

For debt instruments measured at fair value through other comprehensive income and financial assets at amortized cost, including financial assets at amortized cost, debt instruments at fair value through other comprehensive income and accounts receivable that have a significant financing component, 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.

(12) Derecognition of financial assets

The contractual rights to receive cash flows of the financial asset have been transferred; however, the Group has not retained control of the financial asset.

(13) Inventories

Inventories are stated at the lower of cost and net realizable value. The perpetual inventory system is adopted for inventory recognition. Cost is determined using the weighted-average method. The cost of finished goods and work in progress comprises raw materials, direct labour, 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 applicable variable selling expenses.

(14) Investments accounted for using equity method / associates

A. Associates are all entities over which the Group has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognized at cost.

B. The Group's share of its associates' post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. When the Group's share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognize further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

C. When changes in an associate's equity do not arise from profit or loss or other comprehensive income of the associate and such changes do not affect the Group's ownership percentage of the associate, the Group recognizes change in ownership interests in the associate in 'capital surplus' in proportion to its ownership.

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D. Unrealized gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

E. For the reciprocal investments between the Company and another company, investment income or loss was recognized under equity method based on the amount prior to recognition of profit or loss.

F. At the balance sheet date, the Group performs an impairment test for an investment in an associate when there is an indication that the investment may be impaired. The entire carrying amount of the investment (including goodwill) is tested for impairment as a single asset, by comparing its recoverable amount (higher of value in use and fair value less costs of disposal) with its carrying amount. Any impairment loss recognized forms part of the carrying amount of the investment. Any reversal of impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

(15) Property, plant and equipment

A. Property, plant and equipment are initially recorded at cost.

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:

Buildings and structures	7 ~ 20 years
Machinery and equipment	1.5 ~ 10 years
Office equipment	2 ~ 5 years
Leasehold improvements	5 ~ 10 years
Other equipment	2 ~ 5 years

(16) 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 low-value 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 fixed payments, less any lease incentives receivable.

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. 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.

(17) Intangible assets

A. Computer software
Computer software is stated at cost and amortized on a straight-line basis over its estimated useful life of 3 to 5 years.

B. Customer relationship
The customer relationships were acquired through a business combination and are recognized at fair value as of the acquisition date. The fair value was determined based on a valuation report. These relationships are amortized on a straight-line basis over their estimated useful life of 13 years.

C. Goodwill
Goodwill arises in a business combination accounted for by applying the acquisition method.

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(18) Borrowings

Borrowings comprise short-term bank borrowings. 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.

(19) 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 accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(20) Financial liabilities at fair value through profit or loss

A. Financial liabilities are classified in this category of held for trading if acquired principally for the purpose of repurchasing in the short-term. Derivatives are also categorized as financial liabilities held for trading unless they are designated as hedges.

B. At initial recognition, the Group measures the financial liabilities at fair value. All related transaction costs are recognized in profit or loss. The Group subsequently measures these financial liabilities at fair value with any gain or loss recognized in profit or loss.

(21) Derecognition of financial liabilities

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

(22) Non-hedging and embedded derivatives

Non-hedging derivatives are initially recognized at fair value on the date a derivative contract is entered into and recorded as financial assets or financial liabilities at fair value through profit or loss. They are subsequently remeasured at fair value and the gains or losses are recognized in profit or loss.

(23) 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 expense in that period when the employees render service.

B. Pensions

(a) Defined contribution plans

For defined contribution plans, the contributions are recognised as pension expense when they are due on an accrual basis. Prepaid contributions are recognised 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 defined benefit net 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. Remeasurements arising on defined benefit plans are recognized in other comprehensive income in the period in which they arise and are recorded as retained earnings.

iii. Past service costs are recognised immediately in profit or loss.

C. Employees' compensation and directors' and supervisors' remuneration

Employees' compensation and directors' and supervisors' remuneration are recognized as expenses and liabilities, provided that such recognition is required under legal obligation 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.

(24) Employee share-based payment

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.

(25) 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.

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.

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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. 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 utilised. 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 recognised amounts and there is an intention to settle on a net basis or realise 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 realise the asset and settle the liability simultaneously.

F. A deferred tax asset shall be recognized for the carryforward of unused tax credits resulting from acquisitions of equipment or technology, research and development expenditures and equity investments to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilised.

(26) 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 deducted from equity attributable to the Company's equity holders. Where such shares are subsequently reissued, the difference between their book value 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.

(27) Dividends

Dividends are recorded in the Company's financial statements in the period in which they are resolved by the Company's shareholders. Cash dividends are recorded as liabilities.

(28) Revenue recognition

Sale of goods

A. The Group manufactures and sells image sensor and electronic components. Sales are recognized when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer's acceptance of the products.

~28~

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. Revenue from these sales is recognized based on the price specified in the contract, net of the estimated volume discounts and sales discounts and allowances. The sales usually are made with a credit term of 30-90 days after monthly billing, which is consistent with market practice. As the time interval between the transfer of committed goods or service 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.

(29) Business combinations

A. The Group uses the acquisition method to account for business combinations. The consideration transferred for an acquisition is measured as the fair value of the assets transferred, liabilities incurred or assumed and equity instruments issued at the acquisition date, plus the fair value of any assets and liabilities resulting from a contingent consideration arrangement. All acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. For each business combination, the Group measures at the acquisition date components of non-controlling interests in the acquiree that are present ownership interests and entitle their holders to the proportionate share of the entity's net assets in the event of liquidation at either fair value or the present ownership instruments' proportionate share in the recognised amounts of the acquiree's identifiable net assets. All other non-controlling interests should be measured at the acquisition-date fair value.

B. The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the fair value of any previous equity interest in the acquiree over the fair value of the identifiable assets acquired and the liabilities assumed is recorded as goodwill at the acquisition date. If the total of consideration transferred, non-controlling interest in the acquiree recognised and the fair value of previously held equity interest in the acquiree is less than the fair value of the identifiable assets acquired and the liabilities assumed, the difference is recognised directly in profit or loss on the acquisition date.

(30) 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. Government grants related to property, plant and equipment are presented by deducting the grants from the asset's carrying amount and are amortized to profit or loss over the estimated useful lives of the related assets as reduced depreciation expenses.

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(31) Operating segments

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

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 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

None.

DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash on hand and revolving funds	$ 148	$ 230
Checking accounts and demand deposits	3,056,310	3,067,216
Time deposits	-	36,420
Total	$ 3,056,458	$ 3,103,866

A. The Group transacts with a variety of financial institutions all with high credit quality to diversify 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.

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

Items	December 31, 2025	December 31, 2024
Current items:
Financial assets mandatorily measured at fair value through profit or loss
Hybrid instruments	$ 266,971	$ 98,175
Derivative instruments	7,689	-
	274,660	98,175
Valuation adjustment	(14,538)	(6,853)
Total	$ 260,122	$ 91,322

Non-current items:

Financial assets mandatorily measured at fair value through profit or loss

Hybrid instruments $ 100,000 $ -

Valuation adjustment (2,558) -

Total $ 97,442 $ -

A. Amounts recognized in profit or (loss) in relation to financial assets at fair value through profit or loss are listed below:

	Years ended December 31,
	2025	2024
Financial assets mandatorily measured at fair value through profit or loss
Hybrid instruments	($ 10,243)	($ 6,853)
Derivative instruments	118,197	1,074
Total	$ 107,954	($ 5,779)

B. The Group has no financial assets at fair value through profit or loss pledged to others.

C. The Group entered into contracts relating to derivative financial assets which were not accounted for under hedge accounting. The information is listed below:

Derivative instruments	December 31, 2025
	Contract amount (Notional principal) (In thousands)	Maturity date of the contract
Current items:
Cross currency swap	USD 1,000	2026.03.05
Forward exchange contracts	USD 2,000	2026.01.08
Forward exchange contracts	USD 1,000	2026.01.15
Forward exchange contracts	USD 1,000	2026.01.22
Forward exchange contracts	USD 2,000	2026.01.29
Forward exchange contracts	USD 1,000	2026.01.29
Forward exchange contracts	USD 1,000	2026.02.05
Forward exchange contracts	USD 2,000	2026.02.05
Forward exchange contracts	USD 2,000	2026.02.12
Forward exchange contracts	USD 1,000	2026.02.12
Forward exchange contracts	USD 1,000	2026.02.12
Forward exchange contracts	USD 2,000	2026.02.26
Forward exchange contracts	USD 1,000	2026.02.26
Forward exchange contracts	USD 2,000	2026.03.05

~32~

Derivative instruments	December 31, 2025
	Contract amount (Notional principal) (In thousands)	Maturity date of the contract
Forward exchange contracts	USD 2,000	2026.03.05
Forward exchange contracts	USD 2,000	2026.03.12
Forward exchange contracts	USD 2,000	2026.03.12

December 31, 2024: There were no outstanding derivative instruments.

(a) Cross currency swap

The Group entered into cross currency swap contracts which were exchange swap transactions between foreign currencies to hedge the volatility risk of the exchange rate. However, these cross currency swap contracts are not accounted for under hedge accounting.

(b) Forward foreign exchange contracts

The Group entered into forward foreign exchange contracts to sell USD to hedge the volatility risk of the exchange rate. However, these forward foreign exchange contracts are not accounted for under hedge accounting.

(3) Financial assets at amortized cost

Items	December 31, 2025	December 31, 2024
Current items:
Time deposits with maturity over three months	$ -	$ 32,725
Special-purpose demand deposits	12	12
Total	$ 12	$ 32,737

A. Amounts recognized in profit in relation to financial assets at amortized cost are listed below:

	Years ended December 31,
	2025	2024
Interest income	$ 118	$ 1,916

B. As at 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 were $12 and $32,737, respectively.

C. The Group has no financial assets at amortized cost pledged to others.

D. Information on financial assets at amortized cost relating to credit risk is provided in Note 12(2). 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.

E. The special-purpose demand deposits refer to the Group's certain self-owned capital deposited into the trust account which is restricted only for the purpose of equity investments.

(4) Accounts receivable

	December 31, 2025	December 31, 2024
Accounts receivable	$ 500,232	$ 664,194
Accounts receivable - related parties	20,379	1,273
Less: Loss allowance	( 141)	( 200)
	$ 520,470	$ 665,267

A. The ageing analysis of accounts receivable (including related parties) that were past due but not impaired is as follows:

	December 31, 2025	December 31, 2024
Not past due	$ 520,611	$ 664,036
Up to 30 days	-	1,431
	$ 520,611	$ 665,467

The above ageing analysis was based on past due date.

B. As of December 31, 2025 and 2024, accounts receivable were all from contracts with customers. As of January 1, 2024, the balance of receivables from contracts with customers amounted to $336,833.

C. The Group does not hold any collateral as security.

D. 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 Group’s accounts receivable (including related parties) were $520,470 and $665,267, respectively.

E. Information on accounts receivable relating to credit risk is provided in Note 12(2).

(5) Inventories

	December 31, 2025
	Cost	Allowance for valuation loss	Book value
Raw materials	$ 135,677	($ 1,628)	$ 134,049
Work in progress	31,647	( 33)	31,614
Finished goods	223,222	( 2,005)	221,217
Total	$ 390,546	($ 3,666)	$ 386,880
	December 31, 2024
	Cost	Allowance for valuation loss	Book value
Raw materials	$ 140,550	($ 4,419)	$ 136,131
Work in progress	26,136	( 10)	26,126
Finished goods	222,573	( 6,222)	216,351
Total	$ 389,259	($ 10,651)	$ 378,608

A. The cost of inventories recognized as expense for the period:

	Years ended December 31,
	2025	2024
Cost of goods sold	$ 2,964,657	$ 3,346,812
Gain on reversal of market value decline of inventories (Note)	( 6,985)	( 4,158)
Others	( 846)	( 848)
Total	$ 2,956,826	$ 3,341,806

Note: The gain from price recovery was caused by the reversal of allowance for inventory which were subsequently scrapped or sold.

B. The Group has no inventories pledged to others.

(6) Financial assets at fair value through other comprehensive income

Items	December 31, 2025	December 31, 2024
Non-current items:
Debt instruments
Government bonds	$ 63,172	$ 97,693
Valuation adjustment	( 2,267)	482
Subtotal	60,905	98,175
Equity instruments
Listed stocks	1,559,657	1,555,205
Unlisted stocks	3,590	103,590
	1,563,247	1,658,795
Valuation adjustment	2,777,295	1,521,779
Subtotal	4,340,542	3,180,574
Total	$ 4,401,447	$ 3,278,749

A. The Group has elected to classify abovementioned government bonds and shares that are considered to be strategic investments as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $4,401,477 and $3,278,749 as at December 31, 2025 and 2024, respectively.

B. In line with the Group's financial management plan, the Group sold $7,671 and$ 26,568 of equity instrument investments at fair value during the years ended December 31, 2025 and 2024, and the (loss) gain on disposal were ($377) and $10,993, respectively.

C. Amounts recognized in profit or (loss) and other comprehensive income in relation to the financial assets at fair value through other comprehensive income are listed below:

	Years ended December 31,
	2025	2024
Equity instruments at fair value through other comprehensive income
Fair value change recognized in other comprehensive income	$ 1,255,139	$ 580,149
Cumulative (losses) gains reclassified to retained earnings due to derecognition	($ 377)	$ 10,993
Dividend income recognized in profit or loss
Held at end of year	$ 114,242	$ 111,502
Derecognized during the period year	89	-
	$ 114,331	$ 111,502
Debt instruments at fair value through other comprehensive income
Fair value change recognized in other comprehensive income	($ 2,749)	$ 2,476
Interest income recognized in profit or loss	$ 2,320	$ 2,250

D. 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 fair value through other comprehensive income held by the Group was $4,401,477 and $3,278,749, respectively.

E. Details of the Group’s financial assets at fair value through other comprehensive income pledged to others as collateral are provided in Note 8.

F. Information relating to credit risk of financial assets at fair value through other comprehensive income is provided in Note 12(2).

(7) Investments accounted for using equity method

	December 31, 2025		December 31, 2024
	Book value	Shareholding ratio	Book value	Shareholding ratio
Associates:
Tien Da Investment Co., Ltd. (Tien Da)	$ 334,939	29.85%	$ 421,955	29.85%
Teco Image Systems Co., Ltd. (Teco Image)	739,228	29.69%	783,049	29.69%
	$ 1,074,167		$ 1,205,004

Years ended December 31,

	2025		2024
	Share of profit (loss) of associates accounted for using equity method, net	Other comprehensive loss after tax	Share of profit (loss) of associates accounted for using equity method, net	Other comprehensive income after tax
Associates:
Tien Da Investment Co., Ltd. (Tien Da)	$ 9,316	($ 89,930)	$ 5,695	$ 190,281
Teco Image Systems Co., Ltd. (Teco Image)	(11,760)	(10,345)	5,014	143,928
	($ 2,444)	($ 100,275)	$ 10,709	$ 334,209

A. The basic information of the associate that is material to the Group is as follows:

Company name	Principal place of business	Shareholding ratio		Nature of relationship	Method of measurement
		December 31, 2025	December 31, 2024
Teco Image Systems Co., Ltd.	Taiwan	29.69%	29.69%	Strategic investment	Equity method

B. The summarized financial information of the associate that is material to the Group is as follows:

Balance sheet

	Teco Image Systems Co., Ltd.
	December 31, 2025	December 31, 2024
Current assets	$ 1,201,582	$ 972,917
Non-current assets	1,914,876	2,834,529
Current liabilities	( 556,656)	( 486,741)
Non-current liabilities	( 70,014)	( 114,148)
Total net assets	$ 2,489,788	$ 3,206,557
Carrying amount of the associate	$ 739,228	$ 783,049

Statement of comprehensive income

	Years ended December 31,
	2025	2024
Revenue	$ 1,297,590	$ 1,333,853
(Loss) profit for the year from continuing operations	($ 39,608)	$ 86,896
Other comprehensive (loss) income, net of tax	( 34,737)	653,518
Total comprehensive (loss) income	($ 74,345)	$ 740,414
Dividends received from associates	$ 21,716	$ 16,704

C. The carrying amount of the Group's interests in all individually immaterial associates and the Group's share of the operating results are summarized below:

As of December 31, 2025 and 2024, the carrying amount of the Group's individually immaterial associates amounted to $334,939 and $421,955, respectively.

	Years ended December 31,
	2025	2024
Profit for the year from continuing operations	$ 9,316	$ 5,695
Other comprehensive (loss) income, net of tax	( 89,930)	190,281
Total comprehensive (loss) income	($ 80,614)	$ 195,976
Dividends received from associates	$ 6,402	$ -

D. The Group's material associate, Teco Image, has quoted market prices. As of December 31, 2025 and 2024, the fair value was $781,747 and $922,061, respectively.
E. The Group is the single largest shareholder of Teco Image with a $29.69\%$ equity interest. Taking into consideration the extent of other shareholders' participation in previous shareholders' meeting of Teco Image and the voting right record of significant proposals, which indicates that the Group has no current ability to direct the relevant activities of Teco Image, the Group has no control, but only has significant influence, over the investee.
F. In 2024, the Group recognized impairment loss of $31,977 on its investment in Teco Image as the asset's carrying amount exceeded its recoverable amount.
G. The Group has no investments accounted for using equity method pledged to others.

(8) Property, plant and equipment

	2025
	Buildings and structures	Machinery and equipment	Office equipment	Leasehold improvements	Other equipment	Construction in progress and equipment to be inspected	Total
At January 1
Cost	$ 640,318	$ 928,144	$ 52,680	$ 29,348	$ 17,732	$ 2,860	$ 1,671,082
Accumulated depreciation and impairment	( 563,497)	( 879,950)	( 44,151)	( 24,420)	( 14,656)	-	( 1,526,674)
	$ 76,821	$ 48,194	$ 8,529	$ 4,928	$ 3,076	$ 2,860	$ 144,408
Opening net book value as at January 1	$ 76,821	$ 48,194	$ 8,529	$ 4,928	$ 3,076	$ 2,860	$ 144,408
Acquisition through business combination	-	3,529	2,164	7,629	2,463	-	15,785
Additions	1,005	1,251	104	2,097	1,673	91,504	97,634
Transfers	-	3,674	-	-	45	( 3,719)	-
Disposals	-	( 4,658)	-	-	-	-	( 4,658)
Depreciation	( 16,175)	( 10,610)	( 3,298)	( 2,331)	( 1,300)	-	( 33,714)
Net exchange differences	( 1,823)	( 1,027)	32	158	24	11	( 2,625)
Closing net book value as at December 31	$ 59,828	$ 40,353	$ 7,531	$ 12,481	$ 5,981	$ 90,656	$ 216,830
At December 31
Cost	$ 628,870	$ 944,680	$ 73,877	$ 106,380	$ 37,967	$ 90,656	$ 1,882,430
Accumulated depreciation and impairment	( 569,042)	( 904,327)	( 66,346)	( 93,899)	( 31,986)	-	( 1,665,600)
	$ 59,828	$ 40,353	$ 7,531	$ 12,481	$ 5,981	$ 90,656	$ 216,830

~38~

	2024
	Buildings and structures	Machinery and equipment	Office equipment	Leasehold improvements	Other equipment	Construction in progress and equipment to be inspected	Total
At January 1
Cost	$609,760	$956,905	$46,024	$29,012	$16,939	$2,493	$1,661,133
Accumulated depreciation
and impairment	(520,413)	(911,848)	(40,856)	(24,393)	(13,173)	-	(1,510,683)
	$89,347	$45,057	$5,168	$4,619	$3,766	$2,493	$150,450
Opening net book value as at
January 1	$89,347	$45,057	$5,168	$4,619	$3,766	$2,493	$150,450
Additions	-	681	5,938	1,909	414	18,590	27,532
Transfers	-	18,332	-	-	17	(18,349)	-
Depreciation	(16,907)	(18,013)	(2,635)	(1,831)	(1,289)	-	(40,675)
Net exchange differences	4,381	2,137	58	231	168	126	7,101
Closing net book value as at
December 31	$76,821	$48,194	$8,529	$4,928	$3,076	$2,860	$144,408
At December 31
Cost	$640,318	$928,144	$52,680	$29,348	$17,732	$2,860	$1,671,082
Accumulated depreciation
and impairment	(563,497)	(879,950)	(44,151)	(24,420)	(14,656)	-	(1,526,674)
	$76,821	$48,194	$8,529	$4,928	$3,076	$2,860	$144,408

A. The aforementioned property, plant and equipment were all for its own use.
B. The Group has no property, plant and equipment pledged as collateral or no interest was capitalized as part of property, plant and equipment.

(9) Leasing arrangements - lessee

A. The Group leases various assets including land use right, buildings and business vehicles. Rental contracts are typically made for periods of 1 to 50 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.
B. Short-term leases with a lease term of 12 months or less comprise certain buildings and transportation equipment.
C. The carrying amount of right-of-use assets and the depreciation charge are as follows:

	Land use right	Buildings	Transportation equipment	Total
At January 1, 2025	$ 35,782	$ 42,250	$ 1,732	$ 79,764
Acquisition through business combination	17,555	-	-	17,555
Additions	-	-	125	125
Depreciation	( 1,678)	( 9,566)	( 911)	( 12,155)
Net exchange differences	( 140)	-	-	( 140)
At December 31, 2025	$ 51,519	$ 32,684	$ 946	$ 85,149
	Land use right	Buildings	Transportation equipment	Total
At January 1, 2024	$ 35,125	$ 3,815	$ -	$ 38,940
Additions	-	47,831	2,494	50,325
Depreciation	( 1,096)	( 9,396)	( 762)	( 11,254)
Net exchange differences	1,753	-	-	1,753
At December 31, 2024	$ 35,782	$ 42,250	$ 1,732	$ 79,764

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

	Years ended December 31,
	2025	2024
Items affecting profit or loss
Interest expense on lease liabilities	$ 951	$ 516
Expense on short-term lease contracts	585	110
Gain from lease modification	37	-

E. For the years ended December 31, 2025 and 2024, the Group's total cash outflow for leases was $12,125 and $10,786, respectively.

F. On June 29, 2007, the Group signed a land use right contract with Gaoxin branch of the Bureau of Land and Resources Bureau in Nanchang City, Jiangxi Province, People's Republic of China with a term of 50 years. All rentals had been paid on the contract date. The aforementioned amounts were recognized in right-of-use assets—land use right.

G. On March 16, 2023, a subsidiary of the Group entered into a lease agreement with Clark Development Corporation for a parcel of industrial land. The lease term is 10 years, and the lease has been recognized as a right-of-use asset under the line item 'Land Use Rights'.

(10) Short-term borrowings

Type of borrowings	December 31, 2025	Interest rate range	Collateral
Bank borrowings
Unsecured borrowings	$ 550,000	1.890%~1.975%	None
Secured borrowings	750,000	1.890%~2.075%	Stock
	$ 1,300,000
Type of borrowings	December 31, 2024	Interest rate range	Collateral
Bank borrowings
Unsecured borrowings	$ 550,000	1.890%~2.200%	None
Secured borrowings	750,000	1.870%~2.030%	Stock
	$ 1,300,000

For the years ended December 31, 2025 and 2024, the Group's interest expense recognized in profit or loss amounted to $25,132 and $24,343, respectively.

(11) Financial liabilities at fair value through profit or loss

Items	December 31, 2025	December 31, 2024
Current items:
Financial liabilities mandatorily measured at fair value through profit or loss
Derivative instruments	$ 10,268	$ 24,673

A. Amounts recognized in profit or loss in relation to financial liabilities at fair value through loss are listed below:

	Years ended December 31,
	2025	2024
Net loss recognized in profit or loss
Financial liabilities mandatorily measured at fair value through profit or loss
Derivative instruments	($ 67,440)	($ 103,738)

B. The Group entered into contracts relating to derivative financial liabilities which were not accounted for under hedge accounting. The information is listed below:

Derivative instruments	December 31, 2025
	Contract amount (Notional principal) (In thousands)	Maturity date of the contract
Current items:
Cross currency swap	USD 1,000	2026.01.08
Cross currency swap	USD 1,000	2026.01.08
Cross currency swap	USD 2,000	2026.01.08
Cross currency swap	USD 2,000	2026.01.08
Cross currency swap	USD 2,000	2026.01.15
Cross currency swap	USD 1,000	2026.01.15
Cross currency swap	USD 1,000	2026.01.22
Cross currency swap	USD 1,000	2026.01.29
Cross currency swap	USD 1,000	2026.01.29
Cross currency swap	USD 1,000	2026.01.29
Cross currency swap	USD 1,000	2026.02.05
Cross currency swap	USD 2,000	2026.02.05
Cross currency swap	USD 2,000	2026.02.12
Cross currency swap	USD 2,000	2026.02.12
Cross currency swap	USD 1,000	2026.02.26
	December 31, 2024
Derivative instruments	Contract amount (Notional principal) (In thousands)	Maturity date of the contract
Current items:
Cross currency swap	USD 2,000	2025.01.09
Cross currency swap	USD 1,000	2025.01.09
Cross currency swap	USD 2,000	2025.01.16
Cross currency swap	USD 1,000	2025.01.16
Cross currency swap	USD 1,000	2025.01.16
Cross currency swap	USD 2,000	2025.01.23
Cross currency swap	USD 1,000	2025.01.23
Cross currency swap	USD 1,000	2025.02.06
Cross currency swap	USD 1,000	2025.02.06
Cross currency swap	USD 2,000	2025.02.13

December 31, 2024

| Derivative instruments | Contract amount
(Notional principal)
(In thousands) | Maturity date
of the contract |
| --- | --- | --- |
| Cross currency swap | USD 1,000 | 2025.02.13 |
| Cross currency swap | USD 1,000 | 2025.02.13 |
| Cross currency swap | USD 2,000 | 2025.02.20 |
| Cross currency swap | USD 1,000 | 2025.02.26 |
| Cross currency swap | USD 1,000 | 2025.02.26 |
| Cross currency swap | USD 2,000 | 2025.03.06 |
| Cross currency swap | USD 1,000 | 2025.03.06 |
| Cross currency swap | USD 1,000 | 2025.03.06 |
| Cross currency swap | USD 2,000 | 2025.03.13 |
| Forward exchange contracts | USD 2,000 | 2025.01.09 |
| Forward exchange contracts | USD 2,000 | 2025.01.09 |
| Forward exchange contracts | USD 2,000 | 2025.01.16 |
| Forward exchange contracts | USD 1,000 | 2025.01.16 |
| Forward exchange contracts | USD 2,000 | 2025.01.23 |
| Forward exchange contracts | USD 2,000 | 2025.01.23 |
| Forward exchange contracts | USD 2,000 | 2025.02.06 |
| Forward exchange contracts | USD 1,000 | 2025.02.06 |
| Forward exchange contracts | USD 1,000 | 2025.02.13 |
| Forward exchange contracts | USD 2,000 | 2025.02.20 |
| Forward exchange contracts | USD 1,000 | 2025.02.20 |
| Forward exchange contracts | USD 2,000 | 2025.02.26 |
| Forward exchange contracts | USD 2,000 | 2025.02.26 |
| Forward exchange contracts | USD 2,000 | 2025.03.06 |
| Forward exchange contracts | USD 2,000 | 2025.03.13 |

(a) Cross currency swap
The Group entered into cross currency swap contracts which were exchange swap transactions between foreign currencies to hedge the volatility risk of the exchange rate. However, these cross currency swap contracts are not accounted for under hedge accounting.

(b) Forward foreign exchange contracts
The Group entered into forward foreign exchange contracts to sell USD to hedge the volatility risk of the exchange rate. However, these forward foreign exchange contracts are not accounted for under hedge accounting.

~43~

~44~

(12) Other payables

	December 31, 2025	December 31, 2024
Accrued employees’ compensation and directors’ remuneration	$ 73,748	$ 60,908
Bonus payable	89,828	85,455
Royalties payable	52,191	52,191
Wages and salaries payable	33,804	38,926
Others	63,806	48,427
	$ 313,377	$ 285,907

(13) Pensions

A. (a) The Company has a defined benefit pension plan in accordance with the Labor Standards Act, 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 Act. 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.

(b) The Group's other foreign subsidiaries make pension contributions to the relevant pension management entities in accordance with local laws and regulations.

	December 31, 2025	December 31, 2024
Present value of defined benefit obligations	$ 13,541	$ 4,470
Fair value of plan assets	( 28,405)	( 26,146)
Net defined benefit assets	($ 14,864)	($ 21,676)

(d) Movements in net defined benefit assets are as follows:

	Present value of defined benefit obligations	Fair value of plan assets	Net defined benefit asset
2025
Balance at January 1	$ 4,470	($ 26,146)	($ 21,676)
Business Combinations	8,835	( 305)	8,530
Current Service Cost	634	-	634
Interest expense (income)	564	( 448)	116
	14,503	( 26,899)	( 12,396)
Remeasurements:
Return on plan assets
(excluding amounts included in interest income or expense)	-	( 1,774)	( 1,774)
Change in financial assumptions	( 53)	-	( 53)
Experience adjustments	4	-	4
	( 49)	( 1,774)	( 1,823)
Pension Contributions	-	( 296)	( 296)
Paid pension	( 330)	330	-
Foreign exchange (losses) gains	( 583)	234	( 349)
Balance at December 31	$ 13,541	($ 28,405)	($ 14,864)
	Present value of defined benefit obligations	Fair value of plan assets	Net defined benefit asset
2024
Balance at January 1	$ 4,620	($ 23,761)	($ 19,141)
Interest expense (income)	60	( 309)	( 249)
	4,680	( 24,070)	( 19,390)
Remeasurements:
Return on plan assets
(excluding amounts included in interest income or expense)	-	( 2,076)	( 2,076)
Change in financial assumptions	( 226)	-	( 226)
Experience adjustments	16	-	16
	( 210)	( 2,076)	( 2,286)
Balance at December 31	$ 4,470	($ 26,146)	($ 21,676)

(e) 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 utilization plan and the "Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund"(Article 6: The scope of utilization 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 utilization 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 managing and operating that fund and hence the Company is unable to disclose the classification of plan asset fair value in accordance with IAS 19 paragraph 142. The percentage composition of fair value of plan assets as of December 31, 2025 and 2024 is given in the Annual Labor Retirement Fund Utilization Report announced by the government.

(f) The other foreign subsidiaries of the Group operate under local pension systems that are classified as defined benefit plans. Under these plans, the retirement benefits are determined based on an employee's years of service and salary level preceding the date of retirement.

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

	Years ended December 31,
	2025	2024
Discount rate	1.40%~6.36%	1.70%
Future salary increases	3.00%~5.00%	3.00%

Future mortality rate was estimated based on the 6th Taiwan Standard Ordinary Experience Mortality Table.

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

	Discount rate		Future salary increases
	Increase by	Decrease by	Increase by	Decrease by
December 31, 2025	0.25% and 1%	0.25% and 1%	0.25% and 1%	0.25% and 1%
Effect on present value of defined benefit obligation	$ 7,832	$ 9,767	$ 9,792	$ 7,798
	Discount rate		Future salary increases
December 31, 2024	Increase 0.25%	Decrease 0.25%	Increase 0.25%	Decrease 0.25%
Effect on present value of defined benefit obligation	($ 135)	$ 140	$ 127	($ 123)

The sensitivity analysis above is based on one assumption that 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.

(h) The parent company of the Group applied for a suspension of contributions to its labor pension reserve fund on April 23, 2025, and February 5, 2025. Approvals were granted to suspend these contributions for the years 2025 and 2024, respectively.

(i) Expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2026 amount to $2,240.

(j) As of December 31, 2025, the weighted average duration of that retirement plan is 12~12.59 years.

B. (a) 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.

(b) The Group's mainland China subsidiaries participate in a pension scheme as stipulated by the government of the People's Republic of China. Monthly contributions are made to a defined contribution pension fund based on a prescribed percentage of the total monthly salary of employees. The pension benefits for each employee are administered and managed by the government. Apart from these monthly contributions, the Group has no further pension obligations.

(c) The pension costs under the defined contribution pension plans of the Group for the years ended December 31, 2025 and 2024 were $17,461 and $17,664, respectively.

(14) Share-based payment

A. For the years ended December 31, 2025 and 2024, the Group's share-based payment arrangements were as follows:

Type of arrangement	Grant date	Quantity granted	Contract period	Vesting conditions
Treasury shares transferred to employees	2024.04.25	1,660,000	NA	Vested immediately
Treasury shares transferred to employees	2025.05.09	2,430,000	NA	Vested immediately

The above share-based payment arrangements are settled by equity.

B. Details of the share-based payment arrangements are as follows:

	Year ended December 31, 2025
	No. of options	Weighted-average exercise price (in dollars)
Options granted	2,430,000	$ 29.99
Options exercised	(1,691,000)	29.99
Options expired	(739,000)	29.99
Options outstanding at December 31	-
	Year ended December 31, 2024
	No. of options	Weighted-average exercise price (in dollars)
Options granted	937,750	$ 29.99
Options granted	722,250	26.33
Options exercised	(327,900)	29.99
Options exercised	(722,100)	26.33
Options expired	(609,850)	29.99
Options expired	(150)	26.33
Options outstanding at December 31	-

C. The weighted-average stock prices of stock options at exercise dates for the years ended December 31, 2025 and 2024 were $49.05 and $29.50, respectively.

D. The fair value of stock options granted is measured using the Black-Scholes option-pricing model. Relevant information is as follows:

Type of arrangement	Grant date	Stock price (in dollars)	Exercise price (in dollars)	Expected price volatility	Expected option life	Risk-free interest rate	Fair value per unit (in dollars)
Treasury shares transferred to employees	2024.04.25	$ 28.55	$ 29.99	23.25% (Note)	0.05 years	1.22%	$ 0.1432
Treasury shares transferred to employees	2024.04.25	$ 28.55	$ 26.33	23.25% (Note)	0.05 years	1.22%	$ 2.2716
Treasury shares transferred to employees	2025.05.09	$ 37.56	$ 29.99	63.99% (Note)	0.05 years	1.22%	$ 7.7057

Note: Expected price volatility rate was estimated by using the daily historical stock price fluctuation data for the last three before the given date.

E. Expenses incurred on share-based payment transactions are shown below:

	Years ended December 31,
	2025	2024
Equity-settled	$ 18,725	$ 1,775

(15) Capital stock

A. As of December 31 2025, the Company's authorized capital was $2,500,000, consisting of 250 million shares of ordinary stock (including 15 million shares reserved for employee stock options), and the paid-in capital was $1,378,245, consisting of 137,825 thousand shares of ordinary stock issued (including 23,475 thousand shares of private placement stock) with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected.

B. For the years ended December 31, 2025 and 2024, movements in the number of the ordinary shares outstanding are as follows:

	2025	2024
At January 1	$ 129,620,700	$ 142,973,000
Employee stock options exercised	1,691,000	1,050,000
Cash capital increase - Private Placement	3,675,000	-
Capital reduction	-	( 14,402,300)
At December 31	$ 134,986,700	$ 129,620,700

C. To increase working capital and meet the capital needs for the Company's long-term development, the stockholders at their special stockholders' meeting on September 17, 2021 adopted a resolution to raise additional cash through private placement. The maximum number of shares to be issued through the private placement is 38,116,500 shares. The private placement will be raised twice within one year starting from the date that the special stockholders' meeting adopted the resolution. The Board of Directors resolved to raise $516,780 by issuing 22,000,000 shares of ordinary shares through private placement at an estimated subscription price of $23.49 (in dollars) per share on September 23, 2021. The registration for the change was completed on November 1, 2021. Pursuant to the Securities and Exchange Act, the ordinary shares raised through the private placement are subject to certain transfer restrictions and cannot be listed on the stock exchange until three years after they have been issued and have been offered publicly. Other than these restrictions, the rights and obligations of the ordinary shares raised through the private placement are the same as other issued ordinary shares.

D. To improve the return on shareholders' equity and adjust the capital structure, the Company proposed to proceed with the capital reduction by returning share capital to shareholders in cash. The capital reduction was resolved by the shareholders during their meeting on May 31, 2024 and subsequently approved by the Taiwan Stock Exchange Corporation on August 13, 2024 per Ref. No.1130013989. The capital reduction amounted to $149,055, the number of shares eliminated was 14,905,500 shares, and the paid-in capital was $1,341,495 after the capital reduction. In addition, the capital reduction was proceeded to eliminate 2,200,000 ordinary shares raised through the private placement. The record date for the capital reduction was August 14, 2024, and the registration for the change was completed on September 6, 2024.

E. In order to support the company's long-term business development, expansion and other capital needs, to enhance the company's competitiveness and improve operating efficiency, etc. the stockholders at their stockholders' meeting on May 20, 2025 adopted a resolution to raise additional cash through private placement. The maximum number of shares to be issued through the private placement is 6,707.5 thousand shares. The private placement will be raised twice within one year starting from the date that the special stockholders' meeting adopted the resolution. The Board of Directors resolved to raise $147,000 by issuing 3,675,000 shares of ordinary shares through private placement at an estimated subscription price of $40 (in dollars) per share on June 2, 2025. The registration for the change was completed on June 20, 2025. Pursuant to the Securities and Exchange Act, the ordinary shares raised through the private placement are subject to certain transfer restrictions and cannot be listed on the stock exchange until three years after they have been issued and have been offered publicly. Other than these restrictions, the rights and obligations of the ordinary shares raised through the private placement are the same as other issued ordinary shares.

F. Treasury shares

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

		December 31, 2025
Name of company holding the shares	Reason for reacquisition	Number of shares	Carrying amount
The Company	To be transferred to employees	2,837,800	$ 95,155
		December 31, 2024
Name of company holding the shares	Reason for reacquisition	Number of shares	Carrying amount
The Company	To be transferred to employees	4,528,800	$ 145,868

(b) Pursuant to the R.O.C. Securities and Exchange Act, the number of shares bought back as treasury share 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.

(c) Pursuant to the R.O.C. Securities and Exchange Act, treasury shares 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 shares should be reissued to the employees within five years from the reacquisition date and shares not reissued within the five-year period are to be retired. Treasury shares to enhance the Company’s credit rating and the stockholders’ equity should be retired within six months of acquisition.

(e) The Board of Directors of the Company resolved to reissue 2,430,000 and 1,660,000 treasury shares to employees on February 27, 2025 and April 25, 2024, respectively. The actual treasury shares reissued amounted to 1,691,000 shares and 1,050,000 shares, respectively.

G. The number of the Company’s shares held by the Company’s associate - Teco Image Systems Co., Ltd. was 26,015,634 shares as of December 31, 2025.

(16) Capital surplus

Pursuant to the R.O.C. Company Act, capital surplus 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 surplus to be capitalized mentioned above should not exceed 10% of the paid-in capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

(17) Retained earnings

A. Under the Company’s Articles of Incorporation, the current a half of year’s earnings, if any, shall be distributed in the following order:

(a) Pay all taxes.

(b) Cover accumulated deficit.

(d) Set aside or reverse special reserve in accordance with related regulations.

(e) The appropriation of the amount of distributable earnings after deducting items from (a) to (d), along with the accumulated unappropriated earnings, shall be proposed by the Board of Directors and resolved by the shareholders.

~51~

The company have to retain employees' compensation and directors' remuneration which will be distributed in the end of current year, before the Company distribute the earnings, the Company operates in a steady growth environment. Since the Company has plans for plant expansion and reinvestment, the current distributable earnings shall be appropriated as shareholders' bonus that account for 80% of the amount. Dividends to shareholders in the form of cash shall generally account for 50% but shall account for at least 5% of total dividends distributed.

B. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company's paid-in capital.

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.

D. (a) Details of 2024 and 2023 earnings appropriation resolved by the stockholders on May 20, 2025 and May 31, 2024, respectively, are as follows:

	Years ended December 31,
	2024		2023
	Amount	Dividends per share (in dollars)	Amount	Dividends per share (in dollars)
Legal reserve	$ 38,268		$ 56,817
Cash dividends	272,203	$ 2.1	157,270	$ 1.1
Total	$ 310,471		$ 214,087

(b) Details of 2025 earnings appropriations resolved by the stockholders on March 9, 2026, respectively, are as follows:

	Year ended December 31,
	2025
	Amount	Dividends per share (in dollars)
Legal reserve	$ 48,811
Cash dividends	283,472	$ 2.1
Total	$ 332,283

(18) Other equity items

	2025
	Unrealized gains (losses) on valuation	Currency translation	Total
At January 1	$ 1,816,528	$ 112,208	$ 1,928,736
Valuation adjustment:
—Group	1,252,390	-	1,252,390
—Associates	( 99,955)	-	( 99,955)
Revaluation transferred to retained earnings:
—Group	377	-	377
—Associates	( 57,217)	-	( 57,217)
Currency translation differences:
—Group	-	( 148,690)	( 148,690)
—Associates	-	( 461)	( 461)
At December 31	$ 2,912,123	($ 36,943)	$ 2,875,180
	2024
	Unrealized gains (losses) on valuation	Currency translation	Total
At January 1	$ 919,729	$ 46,332	$ 966,061
Valuation adjustment:
—Group	582,625	-	582,625
—Associates	333,046	-	333,046
Revaluation transferred to retained earnings:
—Group	( 10,993)	-	( 10,993)
—Associates	( 7,879)	-	( 7,879)
Currency translation differences:
—Group	-	65,419	65,419
—Associates	-	457	457
At December 31	$ 1,816,528	$ 112,208	$ 1,928,736

(19) Operating revenue

	Years ended December 31,
	2025	2024
Revenue from contracts with customers	$ 3,720,643	$ 4,200,192

The Group derives revenue from the following major geographical regions:

Year ended December 31, 2025	China	Thailand	Indonesia	Philippines	Others	Total
Revenue from external customer contracts	$ 1,343,438	$ 645,318	$ 502,777	$ 463,681	$ 765,429	$ 3,720,643
Year ended December 31, 2024	China	Thailand	Indonesia	Philippines	Others	Total
Revenue from external customer contracts	$ 1,864,407	$ 690,141	$ 411,713	$ 527,571	$ 706,360	$ 4,200,192

The Group derives revenue from the transfer of goods and services at a point in time.

(20) Interest income

	Years ended December 31,
	2025	2024
Interest income from bank deposits	$ 59,712	$ 36,942
Interest income from financial assets at fair value through other comprehensive income	2,320	2,250
Interest income from financial assets measured at amortized cost	118	1,916
	$ 62,150	$ 41,108

(21) Other income

	Years ended December 31,
	2025	2024
Dividend income	$ 114,331	$ 111,502
Directors’ and supervisors’ remuneration	13,653	11,832
Rental revenue	3,761	3,782
Government grants	1,407	1,675
Other income	3,917	5,702
	$ 137,069	$ 134,493

(22) Other gains and losses

	Years ended December 31,
	2025	2024
Gain (loss) on financial assets (liabilities)at fair value through profit or loss	$ 40,514	($ 109,517)
Foreign exchange (losses) gains	( 85,721)	73,811
Gain from lease modification	37	-
Gain on disposal of investment(Losses) gains on disposal of property, plant andequipment	124,253	-
Financial assets impairment loss (Note)	-	( 31,977)
Other gains and losses	( 1,412)	( 23,099)
	$ 76,113	($ 89,736)

Note: For impairment loss on investments accounted for using equity method, please refer to Note6(7).

(23) Employee benefit expense, depreciation and amortization

For the years ended December 31, 2025 and 2024, employee benefit expense, depreciation and amortization categorized by function were summarized as follows:

	Year ended December 31, 2025
	Operating costs	Operating expenses	Total
Employee benefit expense
Wages and salaries	$ 280,969	$ 224,069	$ 505,038
Labor and health insurance fees	15,400	9,833	25,233
Pension costs	14,388	3,823	18,211
Other personnel expenses	19,187	6,192	25,379
Depreciation	27,952	17,917	45,869
Amortization	4,822	2,099	6,921
	Year ended December 31, 2024
	Operating costs	Operating expenses	Total
Employee benefit expense
Wages and salaries	$ 308,833	$ 190,851	$ 499,684
Labor and health insurance fees	24,987	9,134	34,121
Pension costs	13,528	3,887	17,415
Other personnel expenses	23,458	6,037	29,495
Depreciation	38,211	13,718	51,929
Amortization	5,374	2,538	7,912

A. According to the Articles of Incorporation of the Company, the profit before deduction of employees' compensation and directors' remuneration and after covering accumulated losses, shall be distributed as employees' compensation and directors' remuneration. The ratio shall account for 5%~15% for employees' compensation, of which at least 15% shall be distributed to rank-and-file employees and shall not be higher than 5% for directors' remuneration.

B. For the years ended December 31, 2025 and 2024, employees' compensation were accrued at $55,311 and $45,681, respectively; directors' remuneration were accrued at $18,437 and $15,227, respectively. The aforementioned amounts were recognized in salary expenses, and estimated based on the current profit.

C. The employees' compensation and directors' remuneration were estimated and accrued based on 8.92% and 2.97% of distributable profit of current year for the year ended December 31, 2025. The aforementioned employees' compensation will be distributed in the form of cash.

D. The employees' compensation and directors' remuneration for 2024 as resolved by the Board of Directors were in agreement with the amounts recorded in the 2024 financial statements of $45,681 and $15,227, respectively. Employees' compensation will be distributed in the form of cash.

Information about employees' compensation and directors' remuneration of the Company as approved by the Board of Directors will be posted in the "Market Observation Post System" at the website of the Taiwan Stock Exchange.

(24) Income tax

A. Income tax expense

(a) Components of income tax expense:

	Years ended December 31,
	2025	2024
Current tax:
Current tax on profit for the year	$ 170,933	$ 132,482
Tax imposed on undistributed surplus earnings	3,900	17,622
Prior year income tax (over) under estimation	( 788)	2,671
Total current tax	174,045	152,775
Deferred tax:
Origination and reversal of temporary differences	( 3,113)	39,447
Effect of exchange rate	224	168
Total deferred tax	( 2,889)	39,615
Income tax expense	$ 171,156	$ 192,390

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

	Years ended December 31,
	2025	2024
Remeasurement of defined benefit obligations	$ 316	$ 457

B. Reconciliation between income tax expense and accounting profit:

	Years ended December 31,
	2025	2024
Tax calculated based on profit before tax and statutory tax rate (Note)	$ 164,547	$ 190,247
Effect from items disallowed by tax regulations	( 19,736)	( 15,626)
Taxable loss not recognized as deferred tax assets	-	67
Effect of Foreign Earnings	23,233	( 2,591)
Prior year income tax (over) under estimation	( 788)	2,671
Tax on undistributed surplus earnings	3,900	17,622
Income tax expense	$ 171,156	$ 192,390

Note: The basis for computing the applicable tax rate are the rates applicable in the respective countries where the Group entities operate.

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

	2025
	January 1	Recognized in profit or loss	Recognized in other comprehensive income	Acquisition through business combination	December 31
Temporary differences:
- Deferred tax assets:
Unrealized inventory valuation losses	$ 2,559	($ 1,772)	$ -	$ -	$ 787
Unrealized valuation loss on financial assets	6,306	( 2,883)	-	-	3,423
Unrealized expenses	3,559	861	-	-	4,420
Unrealized Foreign exchange Loss	-	5,823	-	-	5,823
Other	-	-	-	979	979
	$ 12,424	$ 2,029	$ -	$ 979	$ 15,432
- Deferred tax liabilities:
Unrealized gain on affiliates	($ 23)	$ 23	$ -	$ -	$ -
Unrealized exchange gain	( 649)	649	-	-	-
Gain on investments accounted for using equity method	( 106,269)	486	-	-	( 105,783)
Defined benefit plan	( 4,335)	( 74)	( 316)	-	( 4,725)
Other	-	-	-	( 2,297)	( 2,297)
	($111,276)	$ 1,084	($ 316)	($ 2,297)	($ 112,805)
	($ 98,852)	$ 3,113	($ 316)	($ 1,318)	($ 97,373)

	2024
Temporary differences:	January 1	Recognized in profit or loss	Recognized in other comprehensive income	Acquisition through business combination	December 31
- Deferred tax assets:
Unrealized gain on affiliates	$11	($11)	$-	$-	$-
Unrealized inventory valuation losses	3,619	(1,060)	-	-	2,559
Unrealized valuation loss on financial assets	-	6,306	-	-	6,306
Unrealized expenses	2,428	1,131	-	-	3,559
	$6,058	$6,366	$-	$-	$12,424
- Deferred tax liabilities:
Unrealized gain on affiliates	$-	($23)	$-	$-	($23)
Unrealized exchange gain	(2,008)	1,359	-	-	(649)
Gain on investments accounted for using equity method	(53,026)	(53,243)	-	-	(106,269)
Unrealized valuation gain on financial assets	(6,144)	6,144	-	-	-
Defined benefit plan	(3,828)	(50)	(457)	-	(4,335)
	($65,006)	($45,813)	($457)	$-	($111,276)
	($58,948)	($39,447)	($457)	$-	($98,852)

(25) Earnings per share

	Year ended December 31, 2025
	Amount after tax	Weighted average number of ordinary shares outstanding (shares in thousands)	Earnings per share (in dollars)
Basic earnings per share
Profit attributable to ordinary shareholders of the parent	$ 429,621	106,692	$ 4.03
Diluted earnings per share
Profit attributable to ordinary shareholders of the parent	$ 429,621	106,692
Assumed conversion of all dilutive potential ordinary shares
Employees’ compensation	-	1,238
Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	$ 429,621	107,930	$ 3.98
	Year ended December 31, 2024
	Amount after tax	Weighted average number of ordinary shares outstanding (shares in thousands)	Earnings per share (in dollars)
Basic earnings per share
Profit attributable to ordinary shareholders of the parent	$ 361,271	110,314	$ 3.27
Diluted earnings per share
Profit attributable to ordinary shareholders of the parent	$ 361,271	110,314
Assumed conversion of all dilutive potential ordinary shares
Employees’ compensation	-	909
Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	$ 361,271	111,223	$ 3.25

The Company applies the equity method for the mutual shareholding of shares with Teco Image Systems Co., Ltd. and applies the treasury stock method for investments on Teco Image Systems Co., Ltd.. In calculating earnings per share, the Company recognizes Teco Image Systems Co., Ltd.'s shareholding as treasury shares which is a deduction from equity.

(26) Business combinations

On October 7, 2025, the Group acquired 100% of the share capital of L&K Industries Philippines, Inc. for $151,381 and obtained the control over L&K Industries Philippines, Inc. The company is primarily engaged in the manufacturing of Color Contact Image Sensor Modules (CISM). The Group expects to expand its future operating scale and improve overall operating performance through the integration of corporate resources.
The following table summarises the consideration paid for L&K Industries Philippines, Inc. and the fair values of the assets acquired and liabilities assumed at the acquisition date:

	October 7, 2025
Purchase consideration
Cash paid	$ 151,381
Fair value of the identifiable assets acquired and liabilities assumed
Cash	21,198
Accounts receivable	41,539
Other accounts receivable	107
Inventories	32,986
Prepaid expenses	563
Other current assets	16
Property, plant and equipment	15,785
Right-of-use assets	17,555
Deferred tax assets	979
Other non-current assets	1,513
Intangible assets	9,094
Accounts payable	( 93,498)
Accrued expenses	( 3,162)
Income tax payable	( 69)
Other current liabilities	( 13,255)
Lease liabilities	( 17,555)
Deferred tax liabilities	( 2,297)
Other non-current liabilities	( 8,530)
Total identifiable net assets	2,969
Goodwill	$ 148,412

The goodwill arising from the above acquisition is $148,412, and the fair value of the acquired identifiable intangible assets-customer relationship is $9,094.
Since October 7, 2025, when the merger with L&K Industries Philippines, Inc. took place, the Company contributed operating revenue and pre-tax net losses of $47,963 and ($3,070), respectively. Assuming L&K Industries Philippines, Inc. was included in the merger from January 1, 2025, the Company's operating revenue and pre-tax net income would be $3,889,503 and $594,332, respectively.

~60~

(27) Supplemental cash flow information

A. Investing activities with partial cash payments:

	Years ended December 31,
	2025	2024
Purchase of property, plant and equipment	$ 97,634	$ 27,532
Add: Opening balance of payable on equipment	348	3,047
Less: Ending balance of payable on equipment	( 549)	( 348)
Cash paid during the year	$ 97,433	$ 30,231

B. Financing activities with no cash flow effects:

	Year ended December 31, 2025
	2025	2024
Dividends Payable	$ -	$ 144,023

(28) Changes in liabilities from financing activities

	2025
	Short-term borrowings	Lease liabilities	Liabilities from financing activities-gross
At January 1	$ 1,300,000	$ 44,213	$ 1,344,213
Changes in cash flow from financing activities	-	( 10,589)	( 10,589)
Increase in lease liabilities	-	87	87
Interest amortized in lease liabilities	-	951	951
Interest paid in lease liabilities	-	( 951)	( 951)
Acquisition through business combination	-	17,555	17,555
Changes in foreign exchange	-	583	583
At December 31	$ 1,300,000	$ 51,849	$ 1,351,849

~62~

	2024
	Short-term borrowings	Lease liabilities	Liabilities from financing activities-gross
At January 1	$ 1,300,000	$ 4,048	$ 1,304,048
Changes in cash flow from financing activities	-	( 10,160)	( 10,160)
Increase in lease liabilities	-	50,325	50,325
Interest amortized in lease liabilities	-	516	516
Interest paid in lease liabilities	-	( 516)	( 516)
At December 31	$ 1,300,000	$ 44,213	$ 1,344,213

7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

Names of related parties	Relationship with the Group
Koryo Electronics Co., Ltd.	The Group’s key management
Yuryo Co., Ltd.	Subsidiaries of the Group’s key management
Shanghai Koryo Electronics Co., Ltd.	Subsidiaries of the Group’s key management
Uneo Inc.	Subsidiaries of the Group’s key management
Teco Image Systems Co., Ltd.	Associate
Teco Image Systems (DongGuan) Co., Ltd.	Associate
Tien Da Investment Co., Ltd.	Associate

(2) Significant related party transactions and balances

A. Operating revenue

	Years ended December 31,
	2025	2024
Sales of goods:
- The Group's key management	$ 4,193	$ 1,341
- Subsidiaries of the Group’s key management	41,545	-
- Associate	4	-
	$ 45,742	$ 1,341

Except that there is no similar type of transaction for reference, sales from aforementioned related parties are based on the price lists in force and terms negotiated with related parties that would be available to third parties. The term is 30 to 75 days after monthly billing of sales.

B. Purchases

	Years ended December 31,
	2025	2024
Purchases of goods:
—The Group's key management
—Koryo Electronics	$ 505,431	$ 233,742

Except that there is no similar type of transaction for reference, purchases from aforementioned related parties are based on the price lists in force and terms negotiated with related parties that would be available to third parties. The term is 120 days after monthly billing of purchases.

C. Receivables from related parties

	December 31, 2025	December 31, 2024
Accounts receivable:
—The Group’s key management	$ 113	$ 1,273
—Subsidiaries of the Group’s key management	20,266	-
Other accounts receivable:
—Associate	11	8
Total	$ 20,390	$ 1,281

D. Payables to related parties

	December 31, 2025	December 31, 2024
Accounts payable:
—The Group’s key management
—Koryo Electronics	$ 225,777	$ 220,455
Other payables:
—Associate	2,140	402
—Subsidiaries of the Group’s key management	798	1
—The Group’s key management	490	-
Total	$ 229,205	$ 220,858

The payables bear no interest.

E. Property transaction

	Years ended December 31,
	2025	2024
Associates	$ 560	$ -

F. Cost of conversion (Shown as Cost of goods sold)

	Years ended December 31,
	2025	2024
Associates-Teco Image	$ 769	$ 303

G. Consulting fees (Shown as part of Selling expenses)

	Years ended December 31,
	2025	2024
Subsidiaries of the Group’s key management	$ 6,287	$ 4,239

H. Outsourcing labor costs (Shown as part of Selling expenses, General and administrative expenses and Research and development expenses)

	Years ended December 31,
	2025	2024
Associates-Teco Image	$ 8,886	$ 7,234

I. Other income

	Years ended December 31,
	2025	2024
Subsidiaries of the Group’s key management	$ 358	$ 1,370
Associates	80	157
	$ 438	$ 1,527

(3) Key management compensation

	Years ended December 31,
	2025	2024
Short-term employee benefits	$ 50,961	$ 53,600
Share-based payments	3,082	389
	$ 54,043	$ 53,989

PLEDGED ASSETS

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

Pledged asset	Book value
		December 31, 2025	December 31, 2024
Non-current financial assets at fair value through other comprehensive income		$ 3,192,000	$ 1,983,600	Short-term borrowings
9. SIGNIFICANT CONTINGENT COMMITMENTS	LIABILITIES AND UNRECOGNIZED CONTRACT

(1) Contingencies

None.

(2) Commitments

None.

~65~

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT SUBSEQUENT EVENTS AFTER THE BALANCE SHEET DATE

(1) The appropriation of 2025 earnings as resolved by the Board of Directors on March 9, 2026 has not yet been approved by the shareholders. Refer to Note 6(17) for further information.

(2) On March 9, 2026, the Board of Directors of the Company resolved to issue common shares through private placement up to a maximum of 6,891.2 thousand shares. The Company plans to submit this proposal for approval at the shareholders' meeting and authorize the Board of Directors to carry out the issuance in two installments within one year from the date of the shareholders' resolution, depending on market conditions and the Company's needs.

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 repurchase treasury shares to optimize capital structure. The Group monitors capital on the basis of the gearing ratio or net worth per share. The former is calculated as net debt divided by total capital while the latter is calculated with total equity divided by number of shares. Total borrowings is net debt. Total capital is calculated as 'equity' as shown in the consolidated balance sheet plus net debt.

During the year ended December 31, 2025, the Group's strategy, which was unchanged from 2024, was to maintain the gearing ratio steady.

The gearing ratios at December 31, 2025 and 2024 were as follows:

	December 31, 2025	December 31, 2024
Net debt	$ 1,300,000	$ 1,300,000
Total equity	$ 7,616,698	$ 6,238,062
Total capital	$ 8,916,698	$ 7,538,062
Gearing ratio	15%	17%

(2) Financial instruments

A. Financial instruments by category

	December 31, 2025	December 31, 2024
Financial assets
Financial assets at fair value through profit or loss
Financial assets mandatorily measured at fair value through profit or loss	$ 260,122	$ 91,322
Financial assets at fair value through other comprehensive income
Designation of equity instruments	4,340,542	3,180,574
Qualifying debt instrument	60,905	98,175
Financial assets at amortized cost
Cash and cash equivalents	3,056,458	3,103,866
Financial assets at amortized cost	12	32,737
Accounts receivable (including related parties)	520,470	665,267
Other receivables (including related parties)	730	8,765
Guarantee deposits paid	3,040	1,798
	$ 8,242,279	$ 7,182,504
Financial liabilities
Financial liabilities at fair value through profit or loss
Financial liabilities mandatorily measured at fair value through profit or loss	$ 10,268	$ 24,673
Financial liabilities at amortized cost
Short-term borrowings	1,300,000	1,300,000
Accounts payable (including related parties)	841,171	958,223
Other payables (including related parties)	316,805	286,310
	$ 2,468,244	$ 2,569,206
Lease liability (including current and non-current portion)	$ 51,849	$ 44,213

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. The Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group’s financial position and financial performance.

(b) Risk management is carried out by a central treasury department (Group treasury) in accordance with internal plans or 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 as well as acquisition and disposal of assets.

C. Significant financial risks and degrees of financial risks

(a) Market risk

Foreign exchange risk

i. The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the USD and RMB. Foreign exchange risk arises from future commercial transactions, recognized assets and liabilities and net investments in foreign operations.

ii. Management has set up a policy to require group companies to manage their foreign exchange risk against their functional currency. The group companies are required to hedge their entire foreign exchange risk exposure with the Group treasury. Foreign exchange risk arises when future commercial transactions or recognized assets or liabilities are denominated in a currency that is not the entity's functional currency. To manage their foreign exchange risk arising from future commercial transactions and recognized assets and liabilities, entities in the Group use cross currency swap and forward foreign exchange contracts, transacted with Group treasury.

iii. The Group hedges foreign exchange rate by using forward exchange contracts and cross currency swap. However, the Group does not adopt hedging accounting. Details of financial assets or liabilities at fair value through profit or loss are provided in Notes 6(2) and 6(11).

iv. The Group's businesses involve some non-functional currency operations (the Company's and certain subsidiaries' functional currency: NTD; other certain subsidiaries' functional currency: RMB and USD). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations are as follows:

~67~

~68~

	December 31, 2025
	Foreign currency amount (in thousands)	Exchange rate	Book value (NTD)
(Foreign currency: functional currency)
Financial assets
Monetary items
USD : NTD	$ 76,622	31.38	$ 2,404,398
RMB : NTD	300	4.46	1,338
USD : RMB	48,627	7.03	1,525,915
Financial liabilities
Monetary items
USD : NTD	$ 41,699	31.38	$ 1,308,515
USD : RMB	21,822	7.03	684,744
	December 31, 2024
	Foreign currency amount (in thousands)	Exchange rate	Book value (NTD)
(Foreign currency: functional currency)
Financial assets
Monetary items
USD : NTD	$ 66,093	32.73	$ 2,163,224
RMB : NTD	300	4.55	1,356
USD : RMB	53,222	7.19	1,741,956
Financial liabilities
Monetary items
USD : NTD	$ 34,167	32.73	$ 1,118,286
USD : RMB	27,371	7.19	895,853

v. The total exchange (loss) gain, including realized and unrealized, arising from significant foreign exchange variation on the monetary items held by the Group were ($85,721) and $73,811 for the years ended December 31, 2025 and 2024, respectively.

vi. Analysis of foreign currency market risk arising from significant foreign exchange variation:

(Foreign currency: functional currency)	Year ended December 31, 2025
	Sensitivity analysis
	Degree of variation	Effect on profit or loss	comprehensive income
Financial assets
Monetary items
USD:NTD	1%	$ 24,044	$ -
RMB:NTD	1%	13	-
USD:RMB	1%	15,259	-
Financial liabilities
Monetary items
USD:NTD	1%	$ 13,085	$ -
RMB:NTD	1%	6,848	-
USD:RMB	0%	-	-
(Foreign currency: functional currency)	Year ended December 31, 2024
	Sensitivity analysis
	Degree of variation	Effect on profit or loss	comprehensive income
Financial assets
Monetary items
USD:NTD	1%	$ 21,632	$ -
RMB:NTD	1%	14	-
USD:RMB	1%	17,420	-
Financial liabilities
Monetary items
USD:NTD	1%	$ 11,183	$ -
RMB:NTD	1%	8,959	-

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 and financial assets at fair value through other comprehensive income. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group.

ii. The Group’s investments in equity securities comprise domestic listed and unlisted stocks. 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, as a result of gains/losses on equity securities classified as at fair value through profit or loss. For the years ended December 31, 2025 and 2024, other components of equity would have increased/decreased by $434,054 and $318,057, respectively, as a result of other comprehensive income on equity investment classified as at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

i. The Group’s main interest rate risk arises from the borrowings with variable rates, which expose the Group to cash flow interest rate risk. For the years ended December 31, 2025 and 2024, the Group’s borrowings at variable rate were mainly denominated in New Taiwan dollars.

ii. The Group’s borrowings are measured at amortised 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 of New Taiwan dollars had increased/decreased by 0.25% with all other variables held constant, profit, net of tax for the years ended December 31, 2025 and 2024 would have increased/decreased by $2,600, 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, and the contract cash flows of debt instruments stated at amortized cost and at fair value through other comprehensive income.

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. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors. The utilization of credit limits is regularly monitored.

iii. The Group adopts the assumption under IFRS 9, that is, the default occurs when the contract payments are past due over 90 days.

~70~

iv. The Group adopts the following assumption under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition:

If the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

v. The following indicators are used to determine whether the credit impairment of debt instruments has occurred:

(i) It becomes probable that the issuer will enter bankruptcy or other financial reorganization due to their financial difficulties;

(ii) The disappearance of an active market for that financial asset because of financial difficulties;

(iii) Default or delinquency in interest or principal repayments;

(iv) Adverse changes in national or regional economic conditions that are expected to cause a default.

vi. The Group classifies customers' accounts receivable in accordance with customer types. The Group applies the simplified approach using loss rate methodology to estimate expected credit loss under the provision matrix basis.

vii. The Group wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Group will continue executing the recourse procedures to secure their rights. As of December 31, 2025 and 2024, the Group had no written-off financial assets that are still under recourse procedures.

viii. The Group's accounts receivable arose from customers with excellent credit, and the expected loss rate was 0.03%. On December 31, 2025 and 2024, the total book value of accounts receivable and loss allowance were $520,611, $665,467 and $141, $200, respectively.

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

| | 2025
Accounts receivable
(including related parties) | 2024
Accounts receivable
(including related parties) |
| --- | --- | --- |
| At January 1 | $ 200 | $ 101 |
| (Reversal) provision for impairment | ( 59) | 99 |
| At December 31 | $ 141 | $ 200 |

ix. After conducting individual assessments on the collectability of the Company's certain other receivables (including related parties), the total amount of other receivables (including related parties) amounted to $753 and $8,765, and the loss allowance amounted to $23 and $0 as of December 31, 2025 and 2024, respectively.

x. Among the impairment losses (reversal of impairment losses) recognized in the years 2025 and 2024, the impairment losses (reversal of impairment losses) on contract receivables from customers (including related parties) and other receivables (including related parties) amounted to ($36) and $99, respectively.

xi. For investments in debt instruments at amortized cost, and at fair value through other comprehensive income, the credit rating levels are presented below:

	December 31, 2025
	12 months	Lifetime		Total
		Significant increase in credit risk	Impairment of credit
Financial assets at amortized cost	$ 12	$ -	$ -	$ 12
Financial assets at fair value through other comprehensive income	$ 60,905	$ -	$ -	$ 60,905
	December 31, 2024
	12 months	Lifetime		Total
		Significant increase in credit risk	Impairment of credit
Financial assets at amortized cost	$ 32,737	$ -	$ -	$ 32,737
Financial assets at fair value through other comprehensive income	$ 98,175	$ -	$ -	$ 98,175

The financial assets at amortized cost held by the Group are all time deposits with maturity over three months and special-purpose demand deposit. The credit risk rating has no significant abnormal situation.

The financial assets at fair value through other comprehensive income held by the Group are all government bonds. The Group assesses the 12 month expected credit loss and lifetime expected credit loss based on the probability of default and default loss provided by external credit rating agencies. The credit risk rating has no significant abnormal situation.

~72~

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.

ii. The table below analyzes the Group's non-derivative financial liabilities and net-settled or gross-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities and to the expected maturity date for derivative financial liabilities.

The amounts disclosed in the table are the contractual “undiscounted” cash flows.

December 31, 2025	Less than 1 year	Between 1 and 2 years	Between 2 and 5 years	Over five years
Non-derivative financial liabilities
Short-term borrowings	$ 1,303,397	$ -	$ -	$ -
Accounts payable (including related parties)	841,171	-	-	-
Other payables (including related parties)	316,805	-	-	-
Lease liability	13,787	12,968	23,439	6,701
Derivative financial liabilities
Cross currency swap	$ 10,268	$ -	$ -	$ -
December 31, 2024	Less than 1 year	Between 1 and 2 years	Between 2 and 5 years	Over five years
Non-derivative financial liabilities
Short-term borrowings	$ 1,303,533	$ -	$ -	$ -
Accounts payable (including related parties)	958,223	-	-	-
Other payables (including related parties)	286,310	-	-	-
Lease liability	10,844	10,844	24,219	-
Derivative financial liabilities
Cross currency swap	$ 10,165	$ -	$ -	$ -
Forward foreign exchange contra	14,508	-	-	-

iii. 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. The fair value of the Group’s investment in listed stocks and government bonds with quoted market prices is included in Level 1.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of the Groups investment in derivative instruments is included in Level 2.

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

B. Financial instruments not measured at fair value

The carrying amounts of cash and cash equivalents, accounts receivable (including related parties), other receivables (including related parties), financial assets at amortized cost-current, guarantee deposits paid, short-term borrowings, accounts payable (including related parties), other payables (including related parties) and lease liability are approximate to their fair values.

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

(a) The related information on the nature of the assets and liabilities is as follows:

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	$ -	$ -	$ 97,442	$ 97,442
Hybrid instruments	-	-	252,433	252,433
Derivative instruments	-	7,689	-	7,689
Financial assets at fair value through other comprehensive income
Equity securities	4,340,542	-	-	4,340,542
Debt instruments	60,905	-	-	60,905
Total	$4,401,447	$ 7,689	$ 349,875	$4,759,011
Liabilities:
Recurring fair value measurements
Financial liabilities at fair value through profit or loss
Derivative instruments	$ -	$ 10,268	$ -	$ 10,268

~75~

December 31, 2024	Level 1	Level 2	Level 3	Total
Assets:
Recurring fair value measurements
Financial assets at fair value through profit or loss
Hybrid instruments	$ -	$ -	$ 91,322	$ 91,322
Financial assets at fair value through other comprehensive income
Equity securities	3,080,574	-	100,000	3,180,574
Debt instruments	98,175	-	-	98,175
Total	$3,178,749	$ -	$ 191,322	$3,370,071
Liabilities:
Recurring fair value measurements
Financial liabilities at fair value through profit or loss
Derivative instruments	$ -	$ 24,673	$ -	$ 24,673

(b) The methods and assumptions the Group used to measure fair value are as follows:

i The instruments the Group used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:

	Listed shares	Government bonds
Market quoted price	Closing price	Closing price

ii Except for financial instruments with active markets, the fair value of other 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 (i.e. yield curves on the Taipei Exchange, average commercial paper interest rates quoted from Reuters).

iii. When assessing non-standard and low-complexity financial instruments, for example, debt instruments without active market, interest rate swap contracts, foreign exchange swap contracts and options, the Group adopts valuation technique that is widely used by market participants. The inputs used in the valuation method to measure these financial instruments are normally observable in the market.

iv. The valuation of derivative financial instruments is based on valuation model widely accepted by market participants, such as present value techniques and option pricing models. Forward exchange contracts are usually valued based on the current forward exchange rate.

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

E. The following chart is the movement of Level 3 for the years ended December 31, 2025 and 2024:

	2025		2024
	Equity instrument		Equity instrument
At January 1	$	191,322	$	50,000
Acquired during the year		168,513		148,175
Recorded as non-operating expense	(	9,960)	(	6,853)
At December 31	$	349,875	$	191,322

F. For the years ended December 31, 2025 and 2024, there was no transfer into or out from Level 3.

G. Treasury segment is in charge of valuation procedures for fair value measurements being categorised 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.

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:

	Fair value at December 31, 2025	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
Non-derivative equity instrument Venture capital shares	$ 97,442	Net asset value	Not applicable	Not applicable	Not applicable
Hybrid instruments Convertible promissory note	252,433	Market comparable companies	Price-to-book ratio multiple, discount for lack of marketability	Not applicable	The higher the multiple, the higher the fair value; the higher the discount for lack of marketability, the lower the fair value

	Fair value at December 31, 2024	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
Non-derivative equity instrument Venture capital shares	$ 100,000	Net asset value	Not applicable	Not applicable	Not applicable
Hybrid instruments Convertible promissory note	91,322	Market comparable companies	Price-to-book ratio multiple, discount for lack of marketability	Not applicable	The higher the multiple, the higher the fair value; the higher the discount for lack of marketability, the lower the fair value

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

A. Loans to others: Please refer to table 1.
B. Provision of endorsements and guarantees to others: None.
C. Holding of significant marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 2.
D. Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more: Please refer to table 3.
E. Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more: Please refer to table 4.
F. Significant inter-company transactions during the reporting period: Please refer to table 5.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to table 6.

(3) Information on investments in Mainland China

A. Basic information: Please refer to table 7.
B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland China: Refer to table 5.

~78~

14. SEGMENT INFORMATION

(1) General information

The Group operates business only in a single industry. The Chief Operating Decision-Maker, who allocates resources and assesses performance of the Group as a whole, has identified that the Group has only one reportable operating segment.

(2) Segment information

The segment information provided to the Chief Operating Decision-Maker for the reportable segments is as follows:

	Year ended December 31, 2025
	Single operating segment	Reconciliation and elimination	Total
Reportable segment income
Revenue from external customers	$ 3,720,643	$ -	$ 3,720,643
Total	$ 3,720,643	$ -	$ 3,720,643
Reportable segment profit	$ 600,528	$ -	$ 600,528
Segment profit, including:
Interest income	$ 62,150	$ -	$ 62,150
Depreciation and amortization	$ 52,790	$ -	$ 52,790
Share of profit of associates and joint ventures accounted for using equity method	($ 2,444)	$ -	($ 2,444)
Income tax expense	$ 171,156	$ -	$ 171,156
	Year ended December 31, 2024
---	---	---	---
	Single operating segment	Reconciliation and elimination	Total
Reportable segment income
Revenue from external customers	$ 4,200,192	$ -	$ 4,200,192
Total	$ 4,200,192	$ -	$ 4,200,192
Reportable segment profit	$ 553,661	$ -	$ 553,661
Segment profit, including:
Interest income	$ 41,108	$ -	$ 41,108
Depreciation and amortization	$ 59,841	$ -	$ 59,841
Share of profit of associates and joint ventures accounted for using equity method	$ 10,709	$ -	$ 10,709
Income tax expense	$ 192,390	$ -	$ 192,390

(3) Reconciliation for segment income

The Group has only one reportable operating segment. The profit and assets of the reportable segment are consistent with that in the consolidated financial statements. Related information is as follows:

	Years ended December 31,
	2025	2024
Reportable segment income	$ 600,528	$ 553,661
Income before tax from continuing operations	$ 600,528	$ 553,661
Reportable segment assets	$ 10,352,436	$ 9,067,910
Total assets	$ 10,352,436	$ 9,067,910

(4) Information on products and services

It is not applicable since the Group operates as a single item.

(5) Geographical information

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

	Years ended December 31,
	2025		2024
	Revenue	Non-current assets	Revenue	Non-current assets
China	$ 1,343,438	$ 175,949	$ 1,864,407	$ 177,936
Thailand	645,318	-	690,141	-
Indonesia	502,777	-	411,713	-
Philippines	463,681	1,056	527,571	-
Others	765,429	289,199	706,360	58,100
	$ 3,720,643	$ 466,204	$ 4,200,192	$ 236,036

(6) Major customer information

Information relating to major customers who account for more than 10% of sales revenue disclosed on the consolidated statements of comprehensive income for the years ended December 31, 2025 and 2024 is as follows:

	Years ended December 31,
	2025		2024
	Sales amount	Percentage (%)	Sales amount	Percentage (%)
Customers
Company A	$ 619,808	17	$ 615,864	15
Company B	502,777	14	525,504	13
Company C	442,528	12	443,558	11

Creative Sensor Inc.

Loans to others.

Year ended December 31, 2025

Table 1
Expressed in thousands of NTD
(Except as otherwise indicated)

Number (Note 1)	companies lending funds	Loan recipients	Transaction Item	Related Party (Yes/No)	Highest Amount During the Period (Note 2)	Ending Balance (Note 2)	Actual Disbursed Amount (Note 2)	Interest Range	Nature of Loan (Note 3)	Business Transaction Amount	Reason for Short-Term Financing Necessity	Allowance for Doubtful Accounts	Collateral Name	Value	Loan Limit to Individual Counterparty	Total Loan Limit	Note
0	The Company	L&K Industries Philippines, Inc.	Other receivables – related parties	Yes	$ 62,750	$ 62,750	$ 16,629	4%	2	$ -	Operating turnover	$ -	None	$ -	$ 761,670	$ 3,046,679	Note 4

Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows:
(1). The Company is '0'.
(2). The subsidiaries are numbered in order starting from '1'.
Note 2: The amount is translated at the spot exchange rates prevailing at the end of year.
Note 3: The column of 'Nature of loan' shall fill in 'Business transaction or 'Short-term financing'.
(1). Business transaction is "1".
(2). Short-term financing is "2".
Note 4: The calculation methods for the ceiling on total loans granted and limit on loans granted to a single party as prescribed in the Company's "Procedures for Provision of Loans" are as follows:
(1). Ceiling on total loans granted shall not exceed 40% of the net assets of the Company's most recent financial statements.
(2). For short-term financing, limit on loans granted to a single party shall not exceed 10% of the net assets of the Company's most recent financial statements.
(3). For loans granted between the foreign companies whose voting rights are 100% directly or indirectly owned by the Company, ceiling on total loans granted shall not exceed 60% of the lending company's net assets; limit on loan granted to a single party shall not exceed 40% of the lending company's net assets. The duration of each loan shall not exceed one year or one operating cycle, whichever is longer.

Creative Sensor Inc.

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

Year ended December 31, 2025

Table 2
Expressed in thousands of NTD
(Except as otherwise indicated)

Securities held by	Marketable securities categories (Note 1)	Marketable securities	Relationship with the securities issuer	General ledger account	December 31, 2025				Footnote
					Number of shares (in thousands)	Book value (Note 2)	Ownership (%)	Fair value
The Company	Convertible promising note	Convertible promissory note-eJoule Inc.	-	Financial assets at fair value through profit or loss - current	-	$ 252,433	-	$ 252,433
"	Stock	DARJIUN VENTURE CORPORATION	The Company is the Company's corporate director	Non-current financial assets at fair value through profit or loss	10,000	$ 97,442	13.33%	$ 97,442
The Company	Stock	TECO ELECTRIC & MACHINERY CO., LTD.	-	Non-current financial assets at fair value through other comprehensive income	46,987	$ 3,946,908	2.20%	$ 3,946,908	Note 3
"	"	Koryo Electronics Co., Ltd.	The Company's key management	"	9,882	380,457	19.07%	380,457
		GODEX INTERNATIONAL CO., LTD.			181	13,177	0.57%	13,177
"	"	MUTUALPAK		"	39	-	0.40%	-
"	Bond	U.S. Treasury bond U.S. dollar semiannual sovereign bond	-	"	20
						60,905	-	60,905
						$ 4,401,447		$ 4,401,447

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities.
Note 2: Fill in the amount after adjusted at fair value and deducted by accumulated impairment for the marketable securities measured at fair value; fill in the acquisition cost or amortized cost deducted by accumulated impairment for the marketable securities not measured at fair value.
Note 3: Details of the Company's financial assets at fair value through other comprehensive income pledged to others as collateral are provided in Note 8.

Creative Sensor Inc.

Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more

Year ended December 31, 2025

Expressed in thousands of NTD

(Except as otherwise indicated)

Table 3

Purchaser/seller	Counterparty	Relationship with the counterparty	Purchases (sales)	Amount	Transaction			Differences in transaction terms compared to third party transactions (Note 1)		Notes/accounts receivable (payable)
					Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)	Footnote
The Company	Nanchang Creative Sensor Technology Co., Ltd.	The Company's third-tier subsidiary	Purchases	$ 3,063,423	99.08%	120 days after monthly billing	$ -	-	($ 1,247,144)	99.30%	-
Nanchang Creative Sensor Technology Co., Ltd.	Koryo Electronics Co., Ltd.	The Company's key management	"	505,168	20.66%	120 days after monthly billing	-	-	( 225,777)	28.65%	-

Creative Sensor Inc.
Receivables from related parties reaching NTS100 million or 20% of paid-in capital or more
Year ended December 31, 2025

Table 4
Expressed in thousands of NTD
(Except as otherwise indicated)

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31, 2025	Turnover rate	Overdue receivables		Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount	Action taken
Nanchang Creative Sensor Technology Co., Ltd.	The Company	Parent company	$ 1,247,144	2.67	$ -	-	$ 234,818	$ -

Table 4

Creative Sensor Inc.

Significant inter-company transactions during the reporting period

Year ended December 31, 2025

Table 5

Expressed in thousands of NTD

(Except as otherwise indicated)

Transaction

Number (Note 1)	Company name	Counterparty	Relationship (Note 2)	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)	Note
0	The Company	Nanchang Creative Sensor Technology Co., Ltd.	1	Accounts payable	$ 1,247,144	120 days after monthly billing	11.73%	-
"	"	"	"	Purchases	3,063,423	"	83.41%	-
1	"	L&K Industries Philippines, Inc	"	Other receivables	16,629	Note 5	0.16%	-
2	Nanchang Creative Sensor Technology Co., Ltd.	The Company	2	Other payables	37,480	60 days after monthly	0.35%	-

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; fill in the number of category each case belongs to:
(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: Individual transactions not reaching $10,000 and their corresponding transactions will not be disclosed.
Note 5: This pertains to funds lent.

Table 5

Creative Sensor Inc.

Information on investees

Year ended December 31, 2025

Expressed in thousands of NTD

(Except as otherwise indicated)

Initial investment amount Shares held as at December 31, 2025

Investor	Investee	Location	Main business activities	Balance as at December 31, 2025	Balance as at December 31, 2024	Number of shares	Ownership (%)	Book value	Net profit of the investee for the year ended December 31, 2025	Investment income (loss) recognized by the Company for the year ended December 31, 2025 (Note)	Footnote
The Company	Creative Sensor Inc.	British Virgin Islands	Holding company	$ 583,416	$ 583,416	15,414,994	100	$ 1,718,869	$ 215,864	$ 215,864	Subsidiary
The Company	Creative Sensor (USA) Co.	U.S.A.	Collection of marketing information and maintaining customer relationship	3,169	3,169	100,000	100	6,272 (	740) (	740)	Subsidiary
The Company	Sensorem Photonics India Private Limited	India	Collection of marketing information	2,808	-	7,280,000	91	69 (	2,766) (	2,517)	Subsidiary
The Company	L&K Industries Philippines, Inc.	Philippines	Manufacturing of image sensors	151,381	-	1,000,000	100	148,422 (	3,090) (	3,090)	Subsidiary
The Company	Teco Image Systems Co., Ltd.	Taiwan	Design, manufacturing and trading of multi-function printer, fax machine and scanner	737,506	737,506	33,408,000	29.69	739,228 (	39,608) (	11,760)	Investee accounted for using equity method
The Company	Tien Da Investment Co., Ltd.	Taiwan	Investing company	223,040	223,040	21,340,000	29.85	334,939	31,208	9,316	Investee accounted for using equity
Creative Sensor Inc.	Creative Sensor Co., Ltd.	Hong Kong	Holding company	586,837	586,837	15,501,368	100	1,374,888	232,867	-	Subsidiary

Note : The Company has not directly recognized the income (loss) on investment in Creative Sensor Co., Ltd.

Creative Sensor Inc.
Information on investments in Mainland China
Year ended December 31, 2025
Expressed in thousands of NTD
(Except as otherwise indicated)

A. Information on reinvestment in Mainland Area

Investee in Mainland China	Main business activities	Paid-in capital (Note 2)	Investment method (Note 1)	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2025 (Note 3)	Remitted to Mainland China	Remitted back to Taiwan	Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2025 (Note 3)	Net income of investee for the year ended December 31, 2025	Ownership held by the Company (direct or indirect)	Investment income recognized by the Company for the year ended December 31, 2025 (Note 4)	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
Wuxi Creative Sensor Technology Co., Ltd.	Image Sensor	$ -	Note 1	$ 26,677	$ -	$ 26,677	$ -	$ 3,387	100	$ 3,387	$ -	$ 787,376	Note 5
Nanchang Creative Sensor Technology Co., Ltd.	Image Sensor	967,016	Note 1	454,938	-	-	454,938	129,138	100	129,138	1,214,843	527,394	Note 6

Note 1: Investment in the Mainland China was re-invested through a third-party company (Creative Sensor Inc.).
Note 2: The paid-in capital of two investee companies in the original currency amounted to RMB$8,261 thousand and RMB$217,215 thousand, respectively.
Note 3: Wuxi Creative Sensor Technology Co., Ltd.'s accumulated amount of remittance from Taiwan to Mainland China as of January 1 and December 31, 2025 in the original currency was both US$915 thousand. Nanchang Creative Sensor Technology Co., Ltd.'s accumulated amount of remittance from Taiwan to Mainland China as of January 1 and December 31, 2024 in the original currency was both US$14,500 thousand.
Note 4: Investment income recognized for the year ended December 31, 2025 was evaluated and disclosed based on the financial statements audited by R.O.C. parent company's CPA.
Note 5: The investment facility of US$15,005 thousand was approved by the Investment Commission, as of December 31, 2025, the Investment Commission also approved the investment income of US$21,440 thousand which has been remitted back to Taiwan and proceeds from capital reduction of US$14,000 thousand which have been remitted back, and all of them could be used to deduct from the accumulated investment amounts in Mainland China.
Note 6: The investment facility of US$14,500 thousand and US$15,300 thousand of Wuxi Creative Sensor Technology Co., Ltd.'s reinvestment in Nanchang Creative Sensor Technology Co., Ltd. through capitalisation of earnings which was approved by the Investment Commission, as of December 31, 2025, the Investment Commission also approved that the investment income of US$15,121 thousand which has been remitted back to Taiwan, and all of them could be used to deduct from the accumulated investment amounts in Mainland China.

B. Ceiling on reinvestments in Mainland Area

Company name	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
The Company	$ 454,938	$ 454,938	$ 4,570,019

Note 1: Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2025 in original currency amounted to US$15,415 thousand.
Note 2: Investment amount in the original currency approved by the Investment Commission of the Ministry of Economic Affairs (MOEA) amounted to US$15,505 thousand. Furthermore, as of December 31, 2025, the Investment Commission approved that the investment income from reinvestment business in Mainland China remitted back to Taiwan was US$36,561 thousand which could be deducted from the accumulated investment amounts in Mainland China.

Table 7

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CSI — Audit Report / Information 2026

52732_rns_2026-04-24_f188692f-62b5-4116-a5e0-7a0ce011f963.pdf

INDEPENDENT AUDITORS' REPORT TRANSLATED FROM CHINESE

Opinion

Basis for opinion

Key audit matters

Evaluation of the Reasonableness of the Purchase Price Allocation for a Significant Business Combination

Description

How our audit addressed the matter

Other matter – Reference to the audits of the other auditors

Other matter – Parent company only financial reports

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

CREATIVE SENSOR INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2025 AND 2024

CREATIVE SENSOR INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

4. SUMMARY OF MATERIAL ACCOUNTING POLICIES

(1) Compliance statement

(2) Basis of preparation

(3) Basis of consolidation

(12) Other payables

(13) Pensions

(15) Capital stock

(20) Interest income

(21) Other income

7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

(2) Significant related party transactions and balances

A. Operating revenue

10. SIGNIFICANT DISASTER LOSS

11. SIGNIFICANT SUBSEQUENT EVENTS AFTER THE BALANCE SHEET DATE

12. OTHERS

(1) Capital management

Cash flow and fair value interest rate risk

(b) Credit risk

13. SUPPLEMENTARY DISCLOSURES

14. SEGMENT INFORMATION

(1) General information

(2) Segment information

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CSI Audit Report / Information 2026