~1~

CREATIVE SENSOR INC. AND
SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS AND
INDEPENDENT AUDITORS' REVIEW REPORT
MARCH 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.

pwc 資誠

INDEPENDENT AUDITORS' REVIEW REPORT TRANSLATED FROM CHINESE

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

Introduction

We have reviewed the accompanying consolidated balance sheets of Creative Sensor Inc. and subsidiaries (the "Group") as at March 31, 2025 and 2024, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the three-month periods then ended, and notes to the consolidated financial statements, including a summary of material accounting policies. Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, "Interim Financial Reporting" that came into effect as endorsed by the Financial Supervisory Commission. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.

Scope of Review

We conducted our reviews in accordance with the Standard on Review Engagements 2410, "Review of Financial Information Performed by the Independent Auditor of the Entity" of the Republic of China. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our reviews and the reports of other auditors (refer to the Other matter section), nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as at March 31, 2025 and 2024, and of its consolidated financial performance, and its consolidated cash flows for the three-month periods then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, "Interim Financial Reporting" that came into effect as endorsed by the Financial Supervisory Commission.

資誠聯合會計師事務所 PricewaterhouseCoopers, Taiwan

110208 臺北市信義區基隆路一段 333 號 27 樓

27F, No. 333, Sec. 1, Keelung Rd., Xinyi Dist., Taipei 110208, Taiwan

T: +886 (2) 2729 6666, F: +886 (2) 2729 6686, www.pwc.tw

pwc 資誠

Other matter

We did not review the financial statements of certain investments accounted for using the equity method which were reviewed by other auditors. Therefore, our report 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 using the equity method amounted to NT$330,344 thousand and NT$238,634 thousand, constituting 3.89% and 3.02% of the consolidated total assets as at March 31, 2025 and 2024, respectively, and the comprehensive (loss) income recognized from associates and joint ventures accounted for using the equity method amounted to (NT$91,611) thousand and NT$4,118 thousand, constituting 24.84% and 0.65% of the consolidated total comprehensive (loss) income for the three-months periods then ended, respectively.

Lin, Po-Chuan

Lin, Yung-Chih

For and on Behalf of PricewaterhouseCoopers, Taiwan

May 8, 2025

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

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

~3~

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

Assets	Notes	March 31, 2025		December 31, 2024		March 31, 2024
		AMOUNT	%	AMOUNT	%	AMOUNT	%
Current assets
1100	Cash and cash equivalents	6(1)	$ 3,258,710	38	$ 3,103,866	34	$ 2,645,936	33
1110	Financial assets at fair value through profit or loss - current	6(2)	93,604	1	91,322	1	-	-
1136	Financial assets at amortized cost - current, net	6(3)	12	-	32,737	1	198,828	3
1170	Accounts receivable, net	6(4)	598,938	7	663,994	7	338,023	4
1180	Accounts receivable - related parties, net	6(4) and 7	86	-	1,273	-	-	-
1200	Other receivables		4,911	-	8,757	-	6,514	-
1210	Other receivables - related parties, net	7	25	-	8	-	52	-
130X	Inventories, net	6(5)	300,315	4	378,608	4	301,011	4
1479	Other current assets		29,800	-	31,658	1	16,873	-
11XX	Total current assets		4,286,401	50	4,312,223	48	3,507,237	44
Non-current assets
1517	Non-current financial assets at fair value through other comprehensive income	6(6) and 8	2,926,990	35	3,278,749	36	3,172,816	40
1550	Investments accounted for using the equity method	6(7)	1,031,464	12	1,205,004	13	938,571	12
1600	Property, plant and equipment, net	6(8)	139,794	2	144,408	2	161,236	2
1755	Right-of-use assets	6(9)	77,423	1	79,764	1	40,140	1
1780	Intangible assets		4,244	-	4,649	-	5,757	-
1840	Deferred income tax assets		6,336	-	12,424	-	8,148	-
1990	Other non-current assets		29,956	-	30,689	-	77,665	1
15XX	Total non-current assets		4,216,207	50	4,755,687	52	4,404,333	56
1XXX	Total assets		$ 8,502,608	100	$ 9,067,910	100	$ 7,911,570	100

(Continued)

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

	Liabilities and Equity	Notes	March 31, 2025		December 31, 2024		March 31, 2024
			AMOUNT	%	AMOUNT	%	AMOUNT	%
Current liabilities
2100	Short-term borrowings	6(10) and 8	$ 1,300,000	15	$ 1,300,000	14	$ 1,300,000	16
2120	Financial liabilities at fair value through profit or loss - current	6(11)	12,720	-	24,673	-	15,899	-
2170	Accounts payable		574,015	7	737,768	8	442,066	6
2180	Accounts payable - related parties	7	209,691	3	220,455	3	-	-
2200	Other payables	6(12)	540,209	6	285,907	3	391,250	5
2220	Other payables - related parties	7	1,489	-	403	-	-	-
2230	Income tax payable		99,492	1	96,771	1	49,730	1
2280	Current lease liabilities		10,241	-	10,154	-	2,444	-
2300	Other current liabilities		12,262	-	8,382	-	6,550	-
21XX	Total current liabilities		2,760,119	32	2,684,513	29	2,207,939	28
Non-current liabilities
2570	Deferred income tax liabilities		113,547	1	111,276	1	61,116	1
2580	Non-current lease liabilities		31,528	1	34,059	1	1,539	-
25XX	Total non-current liabilities		145,075	2	145,335	2	62,655	1
2XXX	Total liabilities		2,905,194	34	2,829,848	31	2,270,594	29
Equity attributable to owners of parent
	Share capital	6(14)
3110	Common stock		1,341,495	16	1,341,495	15	1,490,550	19
	Capital surplus	6(15)
3200	Capital surplus		986,117	11	986,117	11	984,177	12
	Retained earnings	6(16)
3310	Legal reserve		628,128	7	628,128	7	571,311	7
3350	Unappropriated retained earnings		1,335,323	16	1,499,454	17	1,216,471	16
	Other equity interest	6(17)
3400	Other equity interest		1,451,907	18	1,928,736	21	1,558,213	19
3500	Treasury shares	6(14)	( 145,868)	( 2)	( 145,868)	( 2)	( 179,746)	( 2)
31XX	Equity attributable to owners of the parent		5,597,102	66	6,238,062	69	5,640,976	71
36XX	Non-controlling interests		312	-	-	-	-	-
3XXX	Total equity		5,597,414	66	6,238,062	69	5,640,976	71
3X2X	Total liabilities and equity		$ 8,502,608	100	$ 9,067,910	100	$ 7,911,570	100

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

CREATIVE SENSOR INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

THREE MONTHS ENDED MARCH 31, 2025 AND 2024

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

	Items	Notes	Three months ended March 31
			2025		2024
			AMOUNT	%	AMOUNT	%
4000	Net revenue	6(18) and 7	$ 1,075,577	100	$ 678,429	100
5000	Cost of revenue	6(5)(22) and 7	( 837,863)	( 78)	( 561,519)	( 83)
5900	Gross profit		237,714	22	116,910	17
	Operating expenses	6(22) and 7
6100	Selling expenses		( 16,095)	( 1)	( 11,794)	( 2)
6200	General and administrative expenses		( 53,284)	( 5)	( 35,253)	( 5)
6300	Research and development expenses		( 19,098)	( 2)	( 16,880)	( 2)
6450	Impairment gain and reversal of impairment	12(2)
	loss determined in accordance with IFRS 9		20	-	-	-
6000	Total operating expenses		( 88,457)	( 8)	( 63,927)	( 9)
6900	Income from operations		149,257	14	52,983	8
	Non-operating income and expenses
7100	Interest income	6(19)	14,687	1	4,652	1
7010	Other income	6(20) and 7	1,250	-	2,847	-
7020	Other gains and losses	6(21)	6,113	1	( 19,351)	( 3)
7050	Finance costs	6(9)(10)	( 6,624)	( 1)	( 5,597)	( 1)
7060	Share of profit or loss of associates and joint ventures accounted for using equity method, net	6(7)
			( 3,289)	-	( 3,102)	-
7000	Total non-operating income and expenses		12,137	1	( 20,551)	( 3)
7900	Profit before income tax		161,394	15	32,432	5
7950	Income tax expense	6(23)	( 53,322)	( 5)	( 8,569)	( 1)
8200	Net income		$ 108,072	10	$ 23,863	4
	Other comprehensive income
	Components of other comprehensive income that will not be reclassified to profit or loss
8316	Unrealized (losses) gains from investments in equity instruments measured at fair value through other comprehensive income	6(6)(17)
			($ 319,036)	( 29)	$ 528,145	78
8320	Share of other comprehensive (loss) income of associates and joint ventures accounted for using equity method	6(7)(17)
			( 170,009)	( 16)	24,142	3
8310	Other comprehensive (loss) income that will not be reclassified to profit or loss		( 489,045)	( 45)	552,287	81
	Components of other comprehensive income that will be reclassified to profit or loss
8361	Exchange differences on translation	6(17)	14,042	1	57,289	9
8367	Unrealized (losses) gains from investments in debt instruments measured at fair value through other comprehensive income	6(6)(17)
			( 1,584)	-	1,113	-
8370	Share of other comprehensive (loss) income of associates and joint ventures accounted for using equity method	6(7)(17)
			( 242)	-	478	-
8360	Other comprehensive income that will be reclassified to profit or loss		12,216	1	58,880	9
8300	Other comprehensive (loss) income for the period		($ 476,829)	( 44)	$ 611,167	90
8500	Total comprehensive (loss) income for the period		($ 368,757)	( 34)	$ 635,030	94
	Profit, attributable to:
8610	Owners of parent		$ 108,072	10	$ 23,863	4
8620	Non-controlling interests		-	-	-	-
			$ 108,072	10	$ 23,863	4
	Comprehensive income attributable to:
8710	Owners of parent		($ 368,757)	( 34)	$ 635,030	94
8720	Non-controlling interests		-	-	-	-
			($ 368,757)	( 34)	$ 635,030	94
	Earnings per share (in dollars)	6(24)
9750	Basic earnings per share		$ 1.04	$ 0.21
9850	Diluted earnings per share		$ 1.04	$ 0.21

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

CREATIVE SENSOR INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
THREE MONTHS ENDED MARCH 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		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	Options expired	Legal reserve	Unappropriated retained earnings	Financial statements translation differences of foreign operations
Three months ended March 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		-	-	-	-	-	-	23,863	-	-	-	23,863	-	23,863
Other comprehensive income for the period	6(17)	-	-	-	-	-	-	-	57,767	553,400	-	611,167	-	611,167
Total comprehensive income		-	-	-	-	-	-	23,863	57,767	553,400	-	635,030	-	635,030
Appropriation of 2023 earnings:	6(16)
Cash dividends		-	-	-	-	-	-	( 157,270 )	-	-	-	( 157,270 )	-	( 157,270 )
Changes in equity of associates and joint ventures accounted for using equity method	6(17)	-	-	-	( 24 )	-	-	8,022	-	( 8,022 )	-	( 24 )	-	( 24 )
Disposal of financial assets at fair value through 6(6)(17) other comprehensive income		-	-	-	-	-	-	10,993	-	( 10,993 )	-	-	-	-
Balance at March 31, 2024		$ 1,490,550	$ 970,251	$ 13,293	$ 583	$ 50	$ 571,311	$ 1,216,471	$ 104,099	$ 1,454,114	($ 179,746)	$ 5,640,976	$ -	$ 5,640,976
Three months ended March 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		-	-	-	-	-	-	108,072	-	-	-	108,072	-	108,072
Other comprehensive income (loss) for the period	6(17)	-	-	-	-	-	-	-	13,800	( 490,629 )	-	( 476,829 )	-	( 476,829 )
Total comprehensive income (loss)		-	-	-	-	-	-	108,072	13,800	( 490,629 )	-	( 368,757 )	-	( 368,757 )
Appropriation of 2024 earnings:	6(16)
Cash dividends		-	-	-	-	-	-	( 272,203 )	-	-	-	( 272,203 )	-	( 272,203 )
Changes in non-controlling interests		-	-	-	-	-	-	-	-	-	-	-	312	312
Balance at March 31, 2025		$ 1,341,495	$ 970,251	$ 14,894	$ 834	$ 138	$ 628,128	$ 1,335,323	$ 126,008	$ 1,325,899	($ 145,868)	$ 5,597,102	$ 312	$ 5,597,414

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
THREE MONTHS ENDED MARCH 31, 2025 AND 2024

	Notes	Three months ended March 31
		2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax		$ 161,394	$ 32,432
Adjustments
Adjustments to reconcile profit (loss)
Depreciation	6(8)(9)(22)	12,591	12,938
Amortization	6(22)	1,817	2,158
Expected credit impairment gains	12(2)	( 20 )	-
Net loss on financial assets or liabilities at fair value through profit or loss	6(2)(11)(21)	15,205	40,552
Foreign currency evaluation of financial assets at fair value through other comprehensive income		( 395 )	( 3,735 )
Interest expense	6(9)(10)	6,624	5,597
Interest income	6(19)	( 14,687 )	( 4,652 )
Share of loss of associates and joint ventures accounted for using equity method	6(7)	3,289	3,102
Net gain on disposal of property, plant and equipment	6(21)	( 9 )	( 154 )
Gain from lease modification	6(21)	( 37 )	-
Changes in operating assets and liabilities
Changes in operating assets
Financial assets at fair value through profit or loss		( 29,440 )	6,065
Accounts receivable		65,076	( 1,190 )
Accounts receivable - related paties		1,187	-
Other receivables		3,519	( 613 )
Other receivables - related parties		( 17 )	( 5 )
Inventories		82,448	58,236
Other current assets		1,858	11,114
Changes in operating liabilities
Accounts payable		( 171,886 )	21,314
Accounts payable - related parties		( 13,515 )	-
Other payables		( 20,243 )	( 11,391 )
Other payables - related parties		1,086	( 397 )
Other current liabilities		3,880	468
Cash inflow generated from operations		109,725	171,839
Interest received		14,876	3,837
Interest paid		( 6,624 )	( 5,597 )
Income tax paid		( 42,557 )	( 258 )
Net cash flows from operating activities		75,420	169,821

(Continued)

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

	Notes	Three months ended March 31
		2025	2024
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from disposal of financial assets at amortized cost		$ 33,877	$ -
Acquisition of financial assets at fair value through other comprehensive income		( 66,443 )	-
Proceeds from disposal of financial assets at fair value through other comprehensive income	6(6)	-	26,568
Redemption at maturity of financial assets at fair value through other comprehensive income		98,115	-
Acquisition of property, plant and equipment	6(25)	( 1,814 )	( 13,088 )
Proceeds from disposal of property, plant and equipment		9	154
Acquisition of intangible assets		( 247 )	( 239 )
Increase in other non-current assets		( 349 )	( 50,002 )
Net cash flows from (used in) investing activities		63,148	( 36,607 )
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of lease principal	6(26)	( 2,532 )	( 2,559 )
Change in non-controlling interests arising from the establishment of a subsidiary		312	-
Net cash flows used in financing activities		( 2,220 )	( 2,559 )
Effect of exchange rate		18,496	43,318
Net increase in cash and cash equivalents		154,844	173,973
Cash and cash equivalents at beginning of period		3,103,866	2,471,963
Cash and cash equivalents at end of period		$ 3,258,710	$ 2,645,936

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

~10~

CREATIVE SENSOR INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

THREE MONTHS ENDED MARCH 31, 2025 AND 2024

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

1. 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.

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

These consolidated financial statements were authorized for issuance by the Board of Directors on May 8, 2025.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

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

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

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 2025 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

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
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
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 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
IFRS 18, ‘Presentation and disclosure in financial statements’	January 1, 2027
IFRS 19, ‘Subsidiaries without public accountability: disclosures’	January 1, 2027
Annual Improvements to IFRS Accounting Standards—Volume 11	January 1, 2026

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

Except for the compliance statement, basis of preparation, basis of consolidation and additional policies set out below, the rest of the significant accounting policies applied in the preparation of these consolidated financial statements are the same as those disclosed in Note 4 to the consolidated financial statements as of and for the year ended December 31, 2024. The policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

A. These consolidated financial statements of the Group have been prepared in accordance with the "Regulations Governing the Preparation of Financial Reports by Securities Issuers" and the International Accounting Standard 34, "Interim Financial Reporting" that came into effect as endorsed by the FSC.

B. These consolidated financial statements are to be read in conjunction with the consolidated financial statements for the year ended December 31, 2024.

(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 that 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.

~12~

(3) Basis of consolidation

A. Basis for preparation of consolidated financial statements:
The basis for preparation of these consolidated financial statements is the same as that for the preparation of the consolidated financial statements for the year ended December 31, 2024.

B. Subsidiaries included in the consolidated financial statements:

Name of investor	Name of subsidiary	Main business activities	Ownership (%)
			March 31, 2025	December 31, 2024	March 31, 2024	Footnote
Creative Sensor Inc.	Creative Sensor Inc.	Holding company	100	100	100
Creative Sensor Inc.	Creative Sensor (USA) Co.	Research and development of new product	100	100	100
Creative Sensor Inc.	Sensorem Photonics India Private Limited	Collection of marketing information	91	-	-	Note
Creative Sensor Inc.	Creative Sensor Co. Ltd.	Holding company	100	100	100
Creative Sensor Co., Ltd.	Wuxi Creative Sensor Technology Co., Ltd.	Research and development of image sensor	100	100	100
Creative Sensor Co., Ltd.	Nanchang Creative Sensor Technology Co., Ltd.	Manufacturing of image sensor	100	100	100

Note: It was incorporated in January 2025.

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) Income tax

The interim period income tax expense is recognized based on the estimated average annual effective income tax rate expected for the full financial year applied to the pretax income of the interim period, and the related information is disclosed accordingly.

CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

There was no significant change during this period. Refer to Note 5 in the consolidated financial statements for the year ended December 31, 2024 for related information.

~14~

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

	March 31, 2025	December 31, 2024	March 31, 2024
Cash on hand and revolving funds	$ 74	$ 230	$ 190
Checking accounts and demand deposits	3,221,747	3,067,216	2,609,675
Time deposits	36,889	36,420	36,071
Total	$ 3,258,710	$ 3,103,866	$ 2,645,936

A. The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.
B. The Group has no cash and cash equivalents pledged to others.

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

Items	March 31, 2025	December 31, 2024	March 31, 2024
Current items:
Financial assets mandatorily measured at fair value through profit or loss
Hybrid instruments	$ 99,301	$ 98,175	$ -
Derivative instruments	1,234	-	-
	100,535	98,175	-
Valuation adjustment	( 6,931)	( 6,853)	-
Total	$ 93,604	$ 91,322	$ -

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

	Three months ended March 31,
	2025	2024
Financial assets mandatorily measured at fair value through profit or loss
Derivative instruments	$ 3,818	($ 20,012)

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	March 31, 2025
	Contract amount (notional principal) (In thousands)	Maturity date of the contract
Current items:
Forward exchange contracts	USD 2,000	2025.04.10
Forward exchange contracts	USD 1,000	2025.04.10
Forward exchange contracts	USD 2,000	2025.04.17
Forward exchange contracts	USD 1,000	2025.04.17
Forward exchange contracts	USD 1,000	2025.04.24
Forward exchange contracts	USD 2,000	2025.05.08
Forward exchange contracts	USD 1,000	2025.05.08
Forward exchange contracts	USD 2,000	2025.05.22
Forward exchange contracts	USD 1,000	2025.06.12
Forward exchange contracts	USD 1,000	2025.06.12

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

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	March 31, 2025	December 31, 2024	March 31, 2024
Current items:
Time deposits with maturity over three months	$ -	$ 32,725	$ 198,816
Special-purpose demand deposits	12	12	12
Total	$ 12	$ 32,737	$ 198,828

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

	Three months ended March 31,
	2025	2024
Interest income	$ 118	$ 1,062

B. As at March 31, 2025, December 31, 2024 and March 31, 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, $32,737 and $198,828, 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

	March 31, 2025	December 31, 2024	March 31, 2024
Accounts receivable	$ 599,118	$ 664,194	$ 338,124
Accounts receivable - related parties	86	1,273	-
Less: Loss allowance	( 180)	( 200)	( 101)
	$ 599,024	$ 665,267	$ 338,023

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

	March 31, 2025	December 31, 2024	March 31, 2024
Not past due	$ 597,526	$ 664,036	$ 337,326
Up to 30 days	1,678	1,431	27
31 to 90 days	-	-	771
	$ 599,204	$ 665,467	$ 338,124

The above ageing analysis was based on past due date.

B. As of March 31, 2025, December 31, 2024 and March 31, 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 at March 31, 2025, December 31, 2024 and March 31, 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 were $599,024, $665,267 and $338,023, respectively.

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

(5) Inventories

	March 31, 2025
	Cost	Allowance for valuation loss	Book value
Raw materials	$ 160,110	($ 4,484)	$ 155,626
Work in progress	21,476	( 10)	21,466
Finished goods	129,538	( 6,315)	123,223
Total	$ 311,124	($ 10,809)	$ 300,315
	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
	March 31, 2024
	Cost	Allowance for valuation loss	Book value
Raw materials	$ 141,536	($ 7,050)	$ 134,486
Work in progress	28,375	( 10)	28,365
Finished goods	150,226	( 12,066)	138,160
Total	$ 320,137	($ 19,126)	$ 301,011

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

	Three months ended March 31,
	2025	2024
Cost of goods sold	$ 837,884	$ 557,399
Inventory valuation loss	$ 158	$ 4,317
Others	( 179)	( 197)
Total	$ 837,863	$ 561,519

B. The Group has no inventories pledged to others.

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

Items	March 31, 2025	December 31, 2024	March 31, 2024
Non-current items:
Debt instruments
Government bonds	$ 66,554	$ 97,693	$ 95,127
Valuation adjustment	( 1,102)	482	( 881)
Subtotal	65,452	98,175	94,246
Equity instruments
Listed stocks	1,555,205	1,555,205	1,555,205
Unlisted stocks	103,590	103,590	53,590
	1,658,795	1,658,795	1,608,795
Valuation adjustment	1,202,743	1,521,779	1,469,775
Subtotal	2,861,538	3,180,574	3,078,570
Total	$ 2,926,990	$ 3,278,749	$ 3,172,816

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 $2,926,990, $3,278,749 and $3,172,816 as at March 31, 2025, December 31, 2024 and March 31, 2024, respectively.

B. In line with the Group's financial management plan, the Group sold $0 and $26,568 of equity instrument investments at fair value during the three months ended March 31, 2025 and 2024, and the gain on disposal were $0 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:

	Three months ended March 31,
	2025	2024
Equity instruments at fair value through other comprehensive income
Fair value change recognized in other comprehensive income	($ 319,036)	$ 528,145
Cumulative gains reclassified to retained earnings due to derecognition	$ -	$ 10,993
Debt instruments at fair value through other comprehensive income
Fair value change recognized in other comprehensive income	($ 1,584)	$ 1,113
Interest income recognized in profit or loss	$ 385	$ 546

D. As of March 31, 2025, December 31, 2024 and March 31, 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 $65,452, $98,175 and $94,246, 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

	March 31, 2025		December 31, 2024		March 31, 2024
	Book value	Shareholding ratio	Book value	Shareholding ratio	Book value	Shareholding ratio
Associates:
Tien Da Investment Co., Ltd. (Tien Da)	$ 330,344	29.85%	$ 421,955	29.85%	$ 238,634	29.85%
Teco Image Systems Co., Ltd. (Teco Image)	701,120	29.69%	783,049	29.69%	699,937	29.69%
	$1,031,464		$1,205,004		$ 938,571

Three months ended March 31,

	2025		2024
	Share of loss of associates accounted for using equity method, net	Other comprehensive loss after tax	Share of loss of associates accounted for using equity method, net	Other comprehensive income after tax
Associates:
Tien Da Investment Co., Ltd. (Tien Da)	($ 235)	($ 91,376)	($ 239)	$ 4,357
Teco Image Systems Co., Ltd. (Teco Image)	( 3,054)	( 78,875)	( 2,863)	20,263
	($ 3,289)	($ 170,251)	($ 3,102)	$ 24,620

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

Shareholding ratio
Company name	Principal place of business	March 31, 2025	December 31, 2024	Nature of relationship	Method of measurement
Teco Image Systems Co., Ltd.	Taiwan	29.69%	29.69%	Strategic investment	Equity method
Shareholding ratio
Company name	Principal place of business	March 31, 2024		Nature of relationship	Method of measurement
Teco Image Systems Co., Ltd.	Taiwan	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.
	March 31, 2025	December 31, 2024	March 31, 2024
Current assets	$ 909,926	$ 972,917	$ 941,435
Non-current assets	2,502,676	2,834,529	2,379,084
Current liabilities	( 517,475)	( 486,741)	( 588,819)
Non-current liabilities	( 104,941)	( 114,148)	( 77,173)
Total net assets	$ 2,790,186	$ 3,206,557	$ 2,654,527
Share in associate’s net assets	$ 701,120	$ 783,049	$ 651,249
Goodwill	-	-	31,977
Carrying amount of the associate	$ 701,120	$ 783,049	$ 683,226

Statement of comprehensive income

	Three months ended March 31,
	2025	2024
Revenue	$ 300,092	$ 244,834
Profit (loss) for the period from continuing operations	$ 10,566	($ 4,296)
Other comprehensive (loss) income, net of tax	( 353,788)	187,728
Total comprehensive (loss) income	($ 343,222)	$ 183,432

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 March 31, 2025, December 31, 2024 and March 31, 2024, the carrying amount of the Group's individually immaterial associates amounted to $330,344, $421,955 and $238,634, respectively.

	Three months ended March 31,
	2025	2024
Loss for the period from continuing operations	($ 235)	($ 239)
Other comprehensive (loss) income, net of tax	( 91,376)	4,357
Total comprehensive (loss) income	($ 91,611)	$ 4,118

D. The Group's material associate, Teco Image, has quoted market prices. As of March 31, 2025, December 31, 2024 and March 31, 2024, the fair value was $718,272, $922,061 and $611,366, 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. The Group has no investments accounted for using equity method pledged to others.

~21~

(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
Additions	-	711	89	879	708	957	3,344
Transfers	-	3,077	-	-	45	(3,122)	-
Depreciation	(4,239)	(3,424)	(1,156)	(573)	(272)	-	(9,664)
Net exchange differences	962	612	9	64	36	23	1,706
Closing net book value as at March 31	$73,544	$49,170	$7,471	$5,298	$3,593	$718	$139,794
At March 31
Cost	$648,576	$956,019	$52,838	$30,319	$18,623	$718	$1,707,093
Accumulated depreciation and impairment	(575,032)	(906,849)	(45,367)	(25,021)	(15,030)	-	(1,567,299)
	$73,544	$49,170	$7,471	$5,298	$3,593	$718	$139,794

	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	-	-	29	-	-	15,148	15,177
Depreciation	(4,138)	(4,851)	(578)	(418)	(257)	-	(10,242)
Net exchange differences	3,498	1,606	43	176	134	394	5,851
Closing net book value as at
March 31	$88,707	$41,812	$4,662	$4,377	$3,643	$18,035	$161,236
At March 31
Cost	$634,177	$961,712	$46,971	$29,270	$17,515	$18,035	$1,707,680
Accumulated depreciation
and impairment	(545,470)	(919,900)	(42,309)	(24,893)	(13,872)	-	(1,546,444)
	$88,707	$41,812	$4,662	$4,377	$3,643	$18,035	$161,236

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
Additions	-	-	125	125
Depreciation	( 278)	( 2,392)	( 257)	( 2,927)
Net exchange differences	461	-	-	461
At March 31, 2025	$ 35,965	$ 39,858	$ 1,600	$ 77,423
	Land use right	Buildings	Transportation equipment	Total
At January 1, 2024	$ 35,125	$ 3,815	$ -	$ 38,940
Additions	-	-	2,494	2,494
Depreciation	( 268)	( 2,289)	( 139)	( 2,696)
Net exchange differences	1,402	-	-	1,402
At March 31, 2024	$ 36,259	$ 1,526	$ 2,355	$ 40,140

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

	Three months ended March 31,
	2025	2024
Items affecting profit or loss
Interest expense on lease liabilities	$ 192	$ 23
Expense on short-term lease contracts	132	18
Gain from lease modification	37	-

E. For the three months ended March 31, 2025 and 2024, the Group's total cash outflow for leases was $2,856 and $2,600, 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.

(10) Short-term borrowings

Type of borrowings	March 31, 2025	Interest rate range	Collateral
Bank borrowings
Unsecured borrowings	$ 550,000	1.89%~1.975%	None
Secured borrowings	750,000	1.87%~2.03%	Stock
	$ 1,300,000
Type of borrowings	December 31, 2024	Interest rate range	Collateral
Bank borrowings
Unsecured borrowings	$ 550,000	1.89%~2.20%	None
Secured borrowings	750,000	1.87%~2.03%	Stock
	$ 1,300,000
Type of borrowings	March 31, 2024	Interest rate range	Collateral
Bank borrowings
Unsecured borrowings	$ 550,000	1.7%~1.975%	None
Secured borrowings	750,000	1.7%~1.85%	Stock
	$ 1,300,000

For the three months ended March 31, 2025 and 2024, the Group's interest expense recognized in profit or loss amounted to $6,432 and $5,574, respectively.

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

Items	March 31, 2025	December 31, 2024	March 31, 2024
Current items:
Financial liabilities
mandatorily measured
at fair value through
profit or loss
Derivative instruments	$ 12,720	$ 24,673	$ 15,899

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

	Three months ended March 31,
	2025	2024
Net losses recognized in profit or loss
Financial liabilities mandatorily measured at fair value through profit or loss
Derivative instruments	($ 19,023)	($ 20,540)

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	March 31, 2025
	Contract amount (notional principal) (In thousands)	Maturity date of the contract
Current items:
Cross currency swap	USD 2,000	2025.04.10
Cross currency swap	USD 1,000	2025.04.10
Cross currency swap	USD 1,000	2025.04.17
Cross currency swap	USD 1,000	2025.04.17
Cross currency swap	USD 1,000	2025.04.17
Cross currency swap	USD 2,000	2025.04.24
Cross currency swap	USD 1,000	2025.04.24
Cross currency swap	USD 2,000	2025.05.08
Cross currency swap	USD 2,000	2025.05.15
Cross currency swap	USD 1,000	2025.05.15
Cross currency swap	USD 1,000	2025.05.15
Cross currency swap	USD 1,000	2025.05.15
Cross currency swap	USD 2,000	2025.05.22
Cross currency swap	USD 1,000	2025.05.22
Cross currency swap	USD 1,000	2025.05.22
Cross currency swap	USD 2,000	2025.05.28
Cross currency swap	USD 2,000	2025.05.28
Cross currency swap	USD 2,000	2025.06.05
Cross currency swap	USD 1,000	2025.06.05
Cross currency swap	USD 1,000	2025.06.05
Cross currency swap	USD 2,000	2025.06.12
Cross currency swap	USD 2,000	2025.06.12
Cross currency swap	USD 1,000	2025.06.12
Cross currency swap	USD 1,000	2025.06.12
Cross currency swap	USD 2,000	2025.06.18

March 31, 2025

Derivative instruments	Contract amount (notional principal) (In thousands)	Maturity date of the contract
Forward exchange contracts	USD 2,000	2025.05.08
Forward exchange contracts	USD 2,000	2025.05.15
Forward exchange contracts	USD 1,000	2025.05.15
Forward exchange contracts	USD 2,000	2025.05.28
Forward exchange contracts	USD 2,000	2025.06.05
Forward exchange contracts	USD 2,000	2025.06.05
Forward exchange contracts	USD 2,000	2025.06.05
	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
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

~28~

Derivative instruments	December 31, 2024
	Contract amount (notional principal) (In thousands)	Maturity date of the contract
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
	March 31, 2024
Derivative instruments	Contract amount (notional principal) (In thousands)	Maturity date of the contract
Current items:
Cross currency swap	USD 2,000	2024.4.19
Cross currency swap	USD 2,000	2024.4.19
Cross currency swap	USD 2,000	2024.4.19
Cross currency swap	USD 1,000	2024.4.19
Cross currency swap	USD 1,000	2024.4.19
Cross currency swap	USD 1,000	2024.4.19
Cross currency swap	USD 1,000	2024.4.19
Cross currency swap	USD 2,000	2024.5.14
Cross currency swap	USD 2,000	2024.5.14
Cross currency swap	USD 1,000	2024.5.14
Cross currency swap	USD 1,000	2024.5.14
Forward exchange contracts	USD 2,000	2024.4.19
Forward exchange contracts	USD 2,000	2024.4.19
Forward exchange contracts	USD 2,000	2024.4.19
Forward exchange contracts	USD 4,000	2024.5.14
Forward exchange contracts	USD 2,000	2024.5.14
Forward exchange contracts	USD 2,000	2024.5.14
Forward exchange contracts	USD 2,000	2024.5.14
Forward exchange contracts	USD 2,000	2024.5.14

(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

(12) Other payables

	March 31, 2025	December 31, 2024	March 31, 2024
Accrued employees’ compensation and directors’ remuneration	$ 78,384	$ 60,908	$ 41,688
Bonus payable	64,716	85,455	64,966
Royalties payable	52,191	52,191	52,191
Wages and salaries payable	33,527	38,926	25,897
Dividend payable	272,203	-	157,270
Others	39,188	48,427	49,238
	$ 540,209	$ 285,907	$ 391,250

(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. In July 2023 and February 2025, the Department of Labor, Taipei City Government approved that the Company cease contributing to the retirement fund temporarily for 2025 and 2024, respectively.

(b) For the aforementioned pension plan, no pension cost was recognized for the three months ended March 31, 2025 and 2024.

(c) Expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2025 amount to $0.

~29~

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 Company's mainland China subsidiaries, Nanchang Creative Sensor Technology Co., Ltd. and Wuxi Creative Sensor Technology Co., Ltd., have a defined contribution plan. Monthly contributions to an independent fund administered by the government in accordance with the pension regulations in the People's Republic of China (PRC) are based on certain percentage of employees' monthly salaries and wages. Other than the monthly contributions, the Group has no further obligations.

(c) The pension costs under the defined contribution pension plans of the Group for the three months ended March 31, 2025 and 2024 were $5,060 and $4,300, respectively.

(14) Capital stock

A. As of March 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 $1,341,495, consisting of 134,150 thousand shares of ordinary stock issued (including 19,800 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 three months ended March 31, 2025 and 2024, the number of the ordinary shares outstanding were 129,621 and 142,973 thousand shares, respectively.

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.

~30~

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. The record date for the capital reduction was August 14, 2024, and the registration for the change was completed on September 6, 2024.

E. On February 27, 2025, the Board of Directors of the Company resolved to issue common shares through private placement up to a maximum of 6,707.5 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.

F. Treasury shares

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

		March 31, 2025
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
		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
		March 31, 2024
Name of company holding the shares	Reason for reacquisition	Number of shares	Carrying amount
The Company	To be transferred to employees	6,082,000	$ 179,746

(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.

~31~

(e) The Board of Directors of the Company resolved to reissue 1,660,000 and 1,670,000 treasury shares to employees on April 25, 2024 and April 12, 2023, respectively. The actual treasury shares reissued amounted to 1,050,000 shares and 1,661,000 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 March 31, 2025.

(15) 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.

(16) Retained earnings

A. Under the Company’s Articles of Incorporation, the current 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.

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.

~32~

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. (1) The appropriations of 2024 earnings had been resolved by the Board of Directors during its meeting on February 27, 2025 which will be reported in the shareholders' meeting during 2025. The details are as follows:

	Year ended December 31, 2024
	Amount	Dividends per share (in dollars)
Legal reserve	$ 38,268
Cash dividends	272,203	$ 2.1
Total	$ 310,471

(2) Details of 2023 earnings appropriations as resolved by the stockholders on May 31, 2024 are as follows:

	Year ended December 31, 2023
	Amount	Dividends per share (in dollars)
Legal reserve	$ 56,817
Cash dividends	157,270	$ 1.1
Total	$ 214,087

(17) 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	(320,620)	-	(320,620)
—Associates	(170,009)	-	(170,009)
Currency translation differences:
—Group	-	14,042	14,042
—Associates	-	(242)	(242)
At March 31	$ 1,325,899	$ 126,008	$ 1,451,907

~34~

	2024
	Unrealized gains (losses) on valuation	Currency translation	Total
At January 1	$ 919,729	$ 46,332	$ 966,061
Valuation adjustment:
—Group	529,258	-	529,258
—Associates	24,142	-	24,142
Revaluation transferred to retained earnings:
—Group	( 10,993)	-	( 10,993)
—Associates	( 8,022)	-	( 8,022)
Currency translation differences:
—Group	-	57,289	57,289
—Associates	-	478	478
At March 31	$ 1,454,114	$ 104,099	$ 1,558,213

(18) Operating revenue

	Three months ended March 31,
	2025	2024
Revenue from contracts with customers	$ 1,075,577	$ 678,429

The Group derives revenue from the following major geographical regions:

Three months ended March 31, 2025	China	Thailand	Indonesia	Philippines	Others	Total
Revenue from external customer contracts	$ 398,126	$ 197,103	$ 158,473	$ 142,114	$ 179,761	$ 1,075,577
Three months ended March 31, 2024	China	Thailand	Indonesia	Philippines	Others	Total
Revenue from external customer contracts	$ 330,314	$ 126,832	$ 15,349	$ 92,534	$ 113,400	$ 678,429

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

(19) Interest income

	Three months ended March 31,
	2025	2024
Interest income from bank deposits	$ 14,184	$ 3,044
Interest income from financial assets at fair value through other comprehensive income	385	546
Interest income from financial assets measured at amortized cost	118	1,062
	$ 14,687	$ 4,652

(20) Other income

	Three months ended March 31,
	2025	2024
Rental revenue	$ 1,016	$ 869
Government grants	5	1,327
Other income	229	651
	$ 1,250	$ 2,847

(21) Other gains and losses

	Three months ended March 31,
	2025	2024
Losses on financial assets (liabilities) at fair value through profit or loss	($ 15,205)	($ 40,552)
Foreign exchange gains	21,632	32,220
Gain from lease modification	37	-
Gains on disposal of property, plant and equipment	9	154
Other gains and losses	( 360)	( 11,173)
	$ 6,113	($ 19,351)

(22) Employee benefit expense, depreciation and amortization

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

	Three months ended March 31, 2025
	Operating costs	Operating expenses	Total
Employee benefit expense
Wages and salaries	$ 72,221	$ 51,031	$ 123,252
Labor and health insurance fees	4,245	2,356	6,601
Pension costs	4,015	1,045	5,060
Other personnel expenses	5,642	1,601	7,243
Depreciation	7,984	4,607	12,591
Amortization	1,182	635	1,817
	Three months ended March 31, 2024
	Operating costs	Operating expenses	Total
Employee benefit expense
Wages and salaries	$ 51,700	$ 29,047	$ 80,747
Labor and health insurance fees	4,034	2,066	6,100
Pension costs	3,287	1,013	4,300
Other personnel expenses	4,129	1,166	5,295
Depreciation	8,664	4,274	12,938
Amortization	1,504	654	2,158

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 and shall not be higher than 5% for directors' remuneration.

B. For the three months ended March 31, 2025 and 2024, employees' compensation were accrued at $13,107 and $3,120, respectively; directors' remuneration were accrued at $4,369 and $1,040, respectively. The aforementioned amounts were recognized in salary expenses, and estimated based on the current profit.

The employees' compensation and directors' remuneration for 2024 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, however, the relevant compensation has not yet been actually paid.

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.

~36~

(23) Income tax

A. Income tax expense

Components of income tax expense:

	Three months ended March 31,
	2025	2024
Current tax:
Current tax on profit for the period	$ 44,295	$ 14,414
Prior year income tax under(over)estimation	630	(26)
Total current tax	44,925	14,388
Deferred tax:
Origination and reversal of temporary differences	8,359	(5,980)
Effect of exchange rate	38	161
Total deferred tax	8,397	(5,819)
Income tax expense	$ 53,322	$ 8,569

B. Except for the 2021 income tax return, the Company’s income tax returns through 2022 have been assessed and approved by the Tax Authority.

(24) Earnings per share

	Three months ended March 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	$ 108,072	103,605	$ 1.04
Diluted earnings per share
Profit attributable to ordinary shareholders of the parent	$ 108,072	103,605
Assumed conversion of all dilutive potential ordinary shares
Employees’ compensation	-	738
Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	$ 108,072	104,343	$ 1.04

~38~

	Three months ended March 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	$ 23,863	114,067	$ 0.21
Diluted earnings per share
Profit attributable to ordinary shareholders of the parent	$ 23,863	114,067
Assumed conversion of all dilutive potential ordinary shares
Employees’ compensation	-	823
Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	$ 23,863	114,890	$ 0.21

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.

(25) Supplemental cash flow information

A. Investing activities with partial cash payments:

	Three months ended March 31,
	2025	2024
Purchase of property, plant and equipment	$ 3,344	$ 15,177
Add: Opening balance of payable on equipment	348	3,047
Less: Ending balance of payable on equipment	( 1,878)	( 5,136)
Cash paid during the period	$ 1,814	$ 13,088

B. Financing activities with no cash flow effects

	Three months ended March 31,
	2025	2024
Dividend payable	$ 272,203	$ 157,270

(26) 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	-	( 2,532)	( 2,532)
Increase in lease liabilities	-	88	88
Interest amortized in lease liabilities	-	192	192
Interest paid in lease liabilities	-	( 192)	( 192)
At March 31	$ 1,300,000	$ 41,769	$ 1,341,769
	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	-	( 2,559)	( 2,559)
Increase in lease liabilities	-	2,494	2,494
Interest amortized in lease liabilities	-	23	23
Interest paid in lease liabilities	-	( 23)	( 23)
At March 31	$ 1,300,000	$ 3,983	$ 1,303,983

~39~

~40~

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
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

	Three months ended March 31,
	2025	2024
Sales of goods:
—The Group's key management	$ 181	$ -

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

	Three months ended March 31,
	2025	2024
Purchases of goods:
—The Group's key management	$ 117,043	$ -

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

	March 31, 2025	December 31, 2024	March 31, 2024
Accounts receivable:
—The Group’s key management	$ 86	$ 1,273	$ -
Other accounts receivable:
—Associates	25	8	52
	$ 111	$ 1,281	$ 52

D. Payables to related parties

	March 31, 2025	December 31, 2024	March 31, 2024
Accounts payable:
— The Group’s key management
— Koryo Electronics	$ 209,691	$ 220,455	$ -
Other payables:
— Associate	1,489	402	-
— Subsidiaries of the Group’s key management	-	1	-
	$ 211,180	$ 220,858	$ -

The payables bear no interest.

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

	Three months ended March 31,
	2025	2024
Associates	$ 182	$ -

F. Consulting fees (Shown as part of selling expenses)

	Three months ended March 31,
	2025	2024
Subsidiaries of the Group’s key management	$ 1,133	$ 894

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

	Three months ended March 31,
	2025	2024
Associates	$ 1,830	$ 2,023

H. Other income

	Three months ended March 31,
	2025	2024
Subsidiaries of the Group’s key management	$ 38	$ -
Associates	30	50
	$ 68	$ 50

(3) Key management compensation

	Three months ended March 31,
	2025	2024
Short-term employee benefits	$ 14,021	$ 13,464

~42~

8. PLEDGED ASSETS

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

Pledged asset	Book value			Purpose
	March 31, 2025	December 31, 2024	March 31, 2024
Non-current financial assets at fair value through other comprehensive income	$ 1,862,000	$ 1,983,600	$ 2,207,800	Short-term borrowings

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

(1) Contingencies

None.

(2) Commitments

None.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT SUBSEQUENT EVENTS AFTER THE BALANCE SHEET DATE

None.

12. OTHERS

(1) Capital management

There is no significant change in this period. Refer to Note 12 to the consolidated financial statements as of and for the year ended December 31, 2024 for the related information.

(2) Financial instruments

A. Financial instruments by category

	March 31, 2025	December 31, 2024	March 31, 2024
Financial assets
Financial assets at fair value through profit or loss
Financial assets mandatorily measured at fair value through profit or loss	$ 93,604	$ 91,322	$ -
Financial assets at fair value through other comprehensive income
Designation of equity instruments	2,861,538	3,180,574	3,078,570
Qualifying debt instrument	65,452	98,175	94,246
Financial assets at amortized cost
Cash and cash equivalents	3,258,710	3,103,866	2,645,936
Accounts receivable (including related parties)	599,024	665,267	338,023
Other receivables (including related parties)	4,936	8,765	6,566
Guarantee deposits paid	1,798	1,798	1,681
Financial assets at amortized cost	12	32,737	198,828
	$ 6,885,074	$ 7,182,504	$ 6,363,850

~43~

	March 31, 2025	December 31, 2024	March 31, 2024
Financial liabilities
Financial liabilities at fair value through profit or loss
Financial liabilities mandatorily measured at fair value through profit or loss	$ 12,720	$ 24,673	$ 15,899
Financial liabilities at amortized cost
Short-term borrowings	1,300,000	1,300,000	1,300,000
Accounts payable (including related parties)	783,706	958,223	442,066
Other payables (including related parties)	541,698	286,310	391,250
	$ 2,638,124	$ 2,569,206	$ 2,149,215
Lease liability (including current and non-current portion)	$ 41,769	$ 44,213	$ 3,983

B. Financial risk management policies

There is no significant change in this period. Refer to Note 12 to the consolidated financial statements as of and for the year ended December 31, 2024 for the related information.

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:

	March 31, 2025
	Foreign currency amount (in thousands)	Exchange rate	Book value (NTD)	Sensitivity analysis
				Degree of variation	Effect on profit or loss	Effect on other comprehensive income
(Foreign currency: functional currency)
Financial assets
Monetary items
USD : NTD	$ 72,391	33.10	$ 2,396,142	1%	$ 23,961	$ -
RMB : NTD	300	4.61	1,383	1%	14	-
USD : RMB	49,773	7.18	1,647,486	1%	16,475	-
Financial liabilities
Monetary items
USD : NTD	$ 30,584	33.10	$ 1,012,330	1%	$ 10,123	$ -
USD : RMB	21,166	7.18	700,595	1%	7,006	-
	December 31, 2024
	Foreign currency amount (in thousands)	Exchange rate	Book value (NTD)	Sensitivity analysis
				Degree of variation	Effect on profit or loss	Effect on other comprehensive income
(Foreign currency: functional currency)
Financial assets
Monetary items
USD : NTD	$ 66,093	32.73	$ 2,163,224	1%	$ 21,632	$ -
RMB : NTD	300	4.55	1,356	1%	14	-
USD : RMB	53,222	7.19	1,741,956	1%	17,420	-
Financial liabilities
Monetary items
USD : NTD	$ 34,167	32.73	$ 1,118,286	1%	$ 11,183	$ -
USD : RMB	27,371	7.19	895,853	1%	8,959	-

~46~

March 31, 2024

	Foreign currency amount (in thousands)	Exchange rate	Book value (NTD)	Sensitivity analysis
				Degree of variation	Effect on profit or loss	Effect on other comprehensive income
(Foreign currency: functional currency)
Financial assets
Monetary items
USD : NTD	$ 45,871	31.99	$ 1,467,413	1%	$ 14,674	$ -
RMB : NTD	300	4.51	1,353	1%	14	-
USD : RMB	34,136	7.10	1,092,011	1%	10,920	-
Financial liabilities
Monetary items
USD : NTD	$ 20,247	31.99	$ 647,702	1%	$ 6,477	$ -
USD : RMB	12,273	7.10	392,613	1%	3,926	-

v. The total exchange gain, including realized and unrealized, arising from significant foreign exchange variation on the monetary items held by the Group were $21,632 and $32,220 for the three months ended March 31, 2025 and 2024, respectively.

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 three months ended March 31, 2025 and 2024, other components of equity would have increased/decreased by $286,154 and $317,282, respectively, as a result of other comprehensive income on equity investment classified as at fair value through other comprehensive income.

~47~

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 three months ended March 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 three months ended March 31, 2025 and 2024 would have increased/decreased both by $650. 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.

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 March 31, 2025, December 31, 2024 and March 31, 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 March 31, 2025, December 31, 2024 and March 31, 2024, the total book value of accounts receivable and loss allowance were $599,204, $665,467, $338,124 and $180, $200, $101, respectively.

ix. 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 for impairment | (20) | - |
| At March 31 | $ 180 | $ 101 |

For the three months ended March 31, 2025 and 2024, the impairment losses and gains arising from customers’ contracts were $20 and $0, respectively.

~48~

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

	March 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	$ 65,452	$ -	$ -	$ 65,452
	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
	March 31, 2024
	12 months	Lifetime		Total
		Significant increase in credit risk	Impairment of credit
Financial assets at amortized cost	$ 198,828	$ -	$ -	$ 198,828
Financial assets at fair value through other comprehensive income	$ 94,246	$ -	$ -	$ 94,246

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.

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.

March 31, 2025	Less than 1 year	Between 1 and 2 years	Between 2 and 5 years
Non-derivative financial liabilities
Short-term borrowings	$ 1,303,519	$ -	$ -
Accounts payable (including related parties)	783,706	-	-
Other payables (including related parties)	541,698	-	-
Lease liability	11,794	11,794	10,825
Derivative financial liabilities
Cross currency swap	$ 11,517	$ -	$ -
Forward foreign exchange contracts	1,203	-	-
December 31, 2024	Less than 1 year	Between 1 and 2 years	Between 2 and 5 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 contracts	14,508	-	-

March 31, 2024	Less than 1 year	Between 1 and 2 years	Between 2 and 5 years
Non-derivative financial liabilities
Short-term borrowings	$ 1,301,929	$ -	$ -
Accounts payable	442,066	-	-
Other payables	391,250	-	-
Lease liability	2,478	851	710
Derivative financial liabilities
Cross currency swap	$ 9,744	$ -	$ -
Forward foreign exchange contracts	6,155	-	-

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:

March 31, 2025	Level 1	Level 2	Level 3	Total
Assets:
Recurring fair value measurements
Financial assets at fair value through profit or loss
Hybrid instruments	$ -	$ 1,234	$ 92,370	$ 93,604
Financial assets at fair value through other comprehensive income
Equity securities	2,761,538	-	100,000	2,861,538
Debt instruments	65,452	-	-	65,452
Total	$2,826,990	$ 1,234	$ 192,370	$3,020,594
Liabilities:
Recurring fair value measurements
Financial liabilities at fair value through profit or loss
Derivative instruments	$ -	$ 12,720	$ -	$ 12,720
December 31, 2024	Level 1	Level 2	Level 3	Total
Assets:
Recurring fair value measurements
Financial assets at fair value through profit or loss
Convertible bond	$ -	$ -	$ 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

March 31, 2024	Level 1	Level 2	Level 3	Total
Assets:
Recurring fair value measurements
Financial assets at fair value through other comprehensive income
Equity securities	$3,028,570	$ -	$ 50,000	$3,078,570
Debt instruments	94,246	-	-	94,246
Total	$3,122,816	$ -	$ 50,000	$3,172,816
Liabilities:
Recurring fair value measurements
Financial liabilities at fair value through profit or loss
Derivative instruments	$ -	$ 15,899	$ -	$ 15,899

(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 three months ended March 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 three months ended March 31, 2025 and 2024:

	2025		2024
	Equity instrument		Equity instrument
At January 1	$	191,322	$	50,000
Effect of exchange rate		1,048		-
At March 31	$	192,370	$	50,000

F. For the three months ended March 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 March 31, 2025	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	92,370	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

~55~

	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
	Fair value at March 31, 2024	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
Non-derivative equity instrument
Venture capital shares	$ 50,000	Net asset value	Not applicable	Not applicable	Not applicable

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

A. Loans to others: None.

B. Provision of endorsements and guarantees to others: None.

C. Holding of material marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 1.

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 2.

E. Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more: Please refer to table 3.

F. Material inter-company transactions during the reporting periods: Please refer to table 4.

(2) Information on investees

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

(3) Information on investments in Mainland China

A. Basic information: Please refer to table 6.

B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland China: Refer to table 4.

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.

~56~

(2) Segment information

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

	Three months ended March 31, 2025
	Single operating segment	Reconciliation and elimination	Total
Reportable segments income
Revenue from external customers	$ 1,075,577	$ -	$ 1,075,577
Total	$ 1,075,577	$ -	$ 1,075,577
Reportable segments profit	$ 161,394	$ -	$ 161,394
Segments profit, including:
Interest income	$ 14,687	$ -	$ 14,687
Depreciation and amortization	$ 14,408	$ -	$ 14,408
Share of loss of associates and joint ventures accounted for using equity method	($ 3,289)	$ -	($ 3,289)
Income tax expense	$ 53,322	$ -	$ 53,322
	Three months ended March 31, 2024
	Single operating segment	Reconciliation and elimination	Total
Reportable segments income
Revenue from external customers	$ 678,429	$ -	$ 678,429
Total	$ 678,429	$ -	$ 678,429
Reportable segments profit	$ 32,432	$ -	$ 32,432
Segments profit, including:
Interest income	$ 4,652	$ -	$ 4,652
Depreciation and amortization	$ 15,096	$ -	$ 15,096
Share of loss of associates and joint ventures accounted for using equity method	($ 3,102)	$ -	($ 3,102)
Income tax expense	$ 8,569	$ -	$ 8,569

~57~

(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:

	Three months ended March 31,
	2025	2024
Reportable segment income	$ 161,394	$ 32,432
Income before tax from continuing operations	$ 161,394	$ 32,432
Reportable segment assets	$ 8,502,608	$ 7,911,570
Total assets	$ 8,502,608	$ 7,911,570

~58~

Creative Sensor Inc. and Subsidiaries

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

Three months ended March 31, 2025

Expensed in thousands of NTD

(Except as otherwise indicated)

Table 1

Securities held by	Marketable securities categories (Note 1)	Marketable securities	Relationship with the securities issuer	General ledger account	March 31, 2025				Footnote
					Number of shares (in thousands)	Book value (Note 2)	Ownership (%)	Fair value
The Company	Convertible promissory note	Convertible promissory note-eJoule Inc.	-	Fair value through profit or loss	-	$ 92,370	-	$ 92,370
The Company	Stock	TECO ELECTRIC & MACHINERY CO., LTD.	-	Non-current financial assets at fair value through other comprehensive income	46,987	$ 2,302,362	2.20%	$ 2,302,362	Note 3
"	"	Koryo Electronics Co., Ltd.	The Company's key management	"	9,882	450,619	19.07%	450,619
"	"	MUTUALPAK	-	"	39	-	0.40%	-
"	"	Taiwan Pelican Express Co., Ltd.	-	"	281	8,557	0.29%	8,557
"	"	DARJIUN VENTURE CORPORATION	The Company is the Company's corporate director	"	10,000	100,000	13.33%	100,000
"	Bond	U.S. Treasury bond U.S. dollar semiannual sovereign bond	-	"	20	65,452	-	65,452
						$ 2,926,990		$ 2,926,990

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 Group's financial assets at fair value through other comprehensive income pledged to others as collateral are provided in Note 8.
Note 4: The Company determines the marketable securities which shall be disclosed in this table based on the Materiality Principle.

Creative Sensor Inc. and Subsidiaries

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

Three months ended March 31, 2025

Table 2

Expressed in thousands of NTD

(Except as otherwise indicated)

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	$ 927,053	98.21%	75~90 days after monthly billing	$ -	-	($ 934,106)	97.84%	-
Nanchang Creative Sensor Technology Co., Ltd.	Koryo Electronics Co., Ltd.	The Company's key management	"	116,864	18.60%	120 days after monthly billing	-	-	( 209,503)	26.13%	-

Creative Sensor Inc. and Subsidiaries
Receivables from related parties reaching NTS100 million or 20% of paid-in capital or more
Three months ended March 31, 2025

Expressed in thousands of NTD
(Except as otherwise indicated)

Table 3

Creditor	Counterparty	Relationship with the counterparty	Balance as at March 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	$ 934,106	3.75	$ -	-	$ 338,592	$ -

Table 3

Creative Sensor Inc. and Subsidiaries
Material inter-company transactions during the reporting period
Three months ended March 31, 2025

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

Number (Note 1)	Company name	Counterparty	Relationship (Note 2)	Transaction				Percentage of consolidated total operating revenues or total assets (Note 3)	Note
				General ledger account	Amount	Transaction terms
0	The Company	Nanchang Creative Sensor Technology Co., Ltd.	1	Accounts payable	$	934,106	75–90 days after monthly billing	10.99%	-
"	"	"	"	Purchases		927,053	"	86.19%	-
1	Nanchang Creative Sensor Technology Co., Ltd.	The Company	2	Accounts payable		37,837	60 days after monthly billing	0.45%	-

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.

Table 4

Creative Sensor Inc. and Subsidiaries

Information on investees

Three months ended March 31, 2025

Table 5
Expressed in thousands of NTD
(Except as otherwise indicated)

				Initial investment amount		Shares held as at March 31, 2025
Investor	Investee	Location	Main business activities	Balance as at March 31, 2025	Balance as at December 31, 2024	Number of shares	Ownership (%)	Book value	Net profit of the investee for the three months ended March 31, 2025	Investment income (loss) recognized by the Company for the three months ended March 31, 2025 (Note)	Footnote
The Company	Creative Sensor Inc.	British Virgin Islands	Holding company	$ 583,416	$ 583,416	15,414,994	100	$ 1,896,367	$ 73,766	$ 73,766	Subsidiary
The Company	Creative Sensor (USA) Co.	U.S.A.	Research and development of new product	3,169	3,169	100,000	100	7,630	227	227	Subsidiary
The Company	Sensorem Photonics India Private Limited	India	Collection of marketing information	2,808	-	7,280,000	91	2,808	-	-	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	701,120	10,566 (	3,054)	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	330,344 (	789) (	235)	Investee accounted for using equity method
Creative Sensor Inc.	Creative Sensor Co., Ltd.	Hong Kong	Holding company	586,837	586,837	15,501,368	100	1,530,314	68,698	-	Subsidiary of the company

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

Creative Sensor Inc. and Subsidiaries

Information on investments in Mainland China

Three months ended March 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 March 31, 2025 (Note 3)	Net (loss) income of investee for the three months ended March 31, 2025	Ownership held by the Company (direct or indirect)	Investment (loss) income recognized by the Company for the three months ended March 31, 2025 (Note 4)	Book value of investments in Mainland China as of March 31, 2025	Accumulated amount of investment income remitted back to Taiwan as of March 31, 2025	Footnote
Wuxi Creative Sensor Technology Co., Ltd.	Image Sensor	$ -	Note 1	$ 30,287	$ -	$ -	$ 30,287	$ 3,387	100	$ 3,387	$ -	$ 637,020	Note 5
Nanchang Creative Sensor Technology Co., Ltd.	Image Sensor	967,016	Note 1	479,950	-	-	479,950	71,776	100	71,776	1,377,007	527,394	Note 6

Note 1: Through investing in an existing company in the third area (Creative Sensor Inc.), which then invested in the investee in Mainland China.
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 March 31, 2025 in the original currency was both US$915 thousand. Nanchang Creative Sensor accumulated amount of remittance from Taiwan to Mainland China as of January 1 and March 31, 2025 in the original currency was both US$14,500 thousand.
Note 4: Investment income recognized for the three months ended March 31, 2025 was evaluated and disclosed based on the financial statements reviewed 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 March 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 March 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 March 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	$ 510,237	$ 513,216	$ 3,358,448

Note 1: Accumulated amount of remittance from Taiwan to Mainland China as of March 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 March 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 6

AI assistant

CSI — Interim / Quarterly Report 2025

52732_rns_2026-04-24_b8431318-3bd7-48f4-b947-14ed86be7776.pdf

INDEPENDENT AUDITORS' REVIEW REPORT TRANSLATED FROM CHINESE

Introduction

Scope of Review

Conclusion

Other matter

CREATIVE SENSOR INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

THREE MONTHS ENDED MARCH 31, 2025 AND 2024

CREATIVE SENSOR INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

THREE MONTHS ENDED MARCH 31, 2025 AND 2024

1. HISTORY AND ORGANIZATION

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

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

4. SUMMARY OF MATERIAL ACCOUNTING POLICIES

(1) Compliance statement

(2) Basis of preparation

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

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

(18) Operating revenue

(25) Supplemental cash flow information

7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

(2) Significant related party transactions and balances

A. Operating revenue

B. Purchases

C. Receivables from related parties

8. PLEDGED ASSETS

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

10. SIGNIFICANT DISASTER LOSS

11. SIGNIFICANT SUBSEQUENT EVENTS AFTER THE BALANCE SHEET DATE

12. OTHERS

Price risk

Cash flow and fair value interest rate risk

(b) Credit risk

(3) Fair value information

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

(2) Information on investees

(3) Information on investments in Mainland China

14. SEGMENT INFORMATION

(1) General information

More from CSI

CSI Interim / Quarterly Report 2025