~1~

CREATIVE SENSOR INC. AND
SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS AND
INDEPENDENT AUDITORS' REVIEW REPORT
SEPTEMBER 30, 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 September 30, 2025 and 2024, and the related consolidated statements of comprehensive income for the three months and nine months then ended, as well as the consolidated statements of changes in equity and of cash flows for the nine months 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 (please 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 September 30, 2025 and 2024, and of its consolidated financial performance for the three months and nine months then ended and its consolidated cash flows for the nine months 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.

www.pwc.tw

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

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 conclusion 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$388,141 thousand and NT$401,011 thousand, constituting 3.65% and 4.70% of the consolidated total assets as at September 30, 2025 and 2024, respectively, and the comprehensive income (loss) recognized from associates and joint ventures accounted for using the equity method amounted to NT$66,655 thousand, NT$171,116 thousand, (NT$27,412) thousand and NT$175,032 thousand, constituting 2.47%, 49.38%, (1.36%) and 21.38% of the consolidated total comprehensive income for the three months and nine months then ended, respectively.

Lin, Po-Chuan
LIN, PO-CHUAN

Lin, Yung-Chih
Lin, Yung-Chih

For and on Behalf of PricewaterhouseCoopers, Taiwan
November 10, 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.

www.pwc.tw
~3~

CREATIVE SENSOR INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2025, DECEMBER 31, 2024 AND SEPTEMBER 30, 2024
(Expressed in thousands of New Taiwan dollars)

Assets	Notes	September 30, 2025		December 31, 2024		September 30, 2024
		AMOUNT	%	AMOUNT	%	AMOUNT	%
Current assets
1100	Cash and cash equivalents	6(1)	$ 3,111,412	29	$ 3,103,866	34	$ 3,073,075	36
1110	Financial assets at fair value through profit or loss - current	6(2)	178,744	2	91,322	1	18,723	-
1136	Financial assets at amortized cost - current, net	6(3)	12	-	32,737	1	31,702	-
1170	Accounts receivable, net	6(4)	506,453	5	663,994	7	726,923	9
1180	Accounts receivable - related parties, net	6(4) and 7	19,297	-	1,273	-	-	-
1200	Other receivables		844	-	8,757	-	4,274	-
1210	Other receivables - related parties, net	7	34	-	8	-	24	-
130X	Inventories, net	6(5)	306,223	3	378,608	4	330,624	4
1479	Other current assets		30,122	-	31,658	1	23,542	-
11XX	Total current assets		4,153,141	39	4,312,223	48	4,208,887	49
Non-current assets
1517	Non-current financial assets at fair value through other comprehensive income	6(6) and 8	5,062,038	48	3,278,749	36	2,913,736	34
1550	Investments accounted for using the equity method	6(7)	1,163,775	11	1,205,004	13	1,139,241	14
1600	Property, plant and equipment, net	6(8)	150,919	1	144,408	2	149,129	2
1755	Right-of-use assets	6(9)	69,214	1	79,764	1	82,401	1
1780	Intangible assets		3,450	-	4,649	-	5,303	-
1840	Deferred income tax assets		13,473	-	12,424	-	7,488	-
1990	Other non-current assets		29,221	-	30,689	-	29,401	-
15XX	Total non-current assets		6,492,090	61	4,755,687	52	4,326,699	51
1XXX	Total assets		$ 10,645,231	100	$ 9,067,910	100	$ 8,535,586	100

(Continued)

CREATIVE SENSOR INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2025, DECEMBER 31, 2024 AND SEPTEMBER 30, 2024
(Expressed in thousands of New Taiwan dollars)

	Liabilities and Equity	Notes	September 30, 2025		December 31, 2024		September 30, 2024
			AMOUNT	%	AMOUNT	%	AMOUNT	%
Current liabilities
2100	Short-term borrowings	6(10) and 8	$ 1,300,000	12	$ 1,300,000	14	$ 1,300,000	15
2120	Financial liabilities at fair value through profit or loss - current		8,699	-	24,673	-	3	-
2170	Accounts payable		453,235	4	737,768	8	782,922	9
2180	Accounts payable - related parties	7	192,974	2	220,455	3	90,550	1
2200	Other payables	6(12)	297,889	3	285,907	3	414,365	5
2220	Other payables - related parties	7	2,031	-	403	-	314	-
2230	Income tax payable		50,706	1	96,771	1	71,442	1
2280	Current lease liabilities		10,332	-	10,154	-	10,109	-
2300	Other current liabilities		10,423	-	8,382	-	8,088	-
21XX	Total current liabilities		2,326,289	22	2,684,513	29	2,677,793	31
Non-current liabilities
2570	Deferred income tax liabilities		94,573	1	111,276	1	109,947	1
2580	Non-current lease liabilities		26,339	-	34,059	1	36,615	1
25XX	Total non-current liabilities		120,912	1	145,335	2	146,562	2
2XXX	Total liabilities		2,447,201	23	2,829,848	31	2,824,355	33
Equity attributable to owners of parent
	Share capital	6(15)
3110	Common stock		1,378,245	13	1,341,495	15	1,341,495	16
	Capital surplus	6(16)
3200	Capital surplus		1,114,940	10	986,117	11	986,117	12
	Retained earnings	6(17)
3310	Legal reserve		666,396	6	628,128	7	628,128	7
3350	Unappropriated retained earnings		1,629,567	16	1,499,454	17	1,435,679	17
	Other equity interest	6(18)
3400	Other equity interest		3,503,821	33	1,928,736	21	1,465,680	17
3500	Treasury shares	6(15)	( 95,155)	( 1)	( 145,868)	( 2)	( 145,868)	( 2)
31XX	Equity attributable to owners of the parent		8,197,814	77	6,238,062	69	5,711,231	67
36XX	Non-controlling interests		216	-	-	-	-	-
3XXX	Total equity		8,198,030	77	6,238,062	69	5,711,231	67
	Significant subsequent events	11
3X2X	Total liabilities and equity		$ 10,645,231	100	$ 9,067,910	100	$ 8,535,586	100

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

CREATIVE SENSOR INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

	Items	Notes	Three months ended September 30				Nine months ended September 30
			2025		2024		2025		2024
			AMOUNT	%	AMOUNT	%	AMOUNT	%	AMOUNT	%
4000	Net revenue	6(19) and 7	$ 803,900	100	$ 1,300,128	100	$ 2,760,275	100	$ 3,003,929	100
5000	Cost of revenue	6(5)(23) and 7	( 647,217)	( 80)	( 1,028,336)	( 79)	( 2,181,097)	( 79)	( 2,395,857)	( 80)
5900	Gross profit		156,683	20	271,792	21	579,178	21	608,072	20
	Operating expenses	6(23) and 7
6100	Selling expenses		( 15,523)	( 2)	( 18,424)	( 1)	( 48,148)	( 2)	( 44,667)	( 1)
6200	General and administrative expenses		( 84,098)	( 11)	( 78,496)	( 6)	( 212,768)	( 7)	( 171,293)	( 6)
6300	Research and development expenses		( 17,286)	( 2)	( 22,420)	( 2)	( 58,815)	( 2)	( 57,830)	( 2)
6450	(Impairment loss) impairment gain and reversal of impairment loss determined in accordance with IFRS 9	12(2)
			( 21)	-	( 35)	-	19	-	( 117)	-
6000	Total operating expenses		( 116,928)	( 15)	( 119,375)	( 9)	( 319,712)	( 11)	( 273,907)	( 9)
6900	Income from operations		39,755	5	152,417	12	259,466	10	334,165	11
	Non-operating income and expenses
7100	Interest income	6(20)	12,924	2	9,172	1	45,359	2	25,540	1
7010	Other income	6(21) and 7	129,684	16	126,069	10	132,495	5	130,458	4
7020	Other gains and losses	6(22)	5,319	1	( 4,353)	-	85,740	3	( 33,742)	( 1)
7050	Finance costs	6(9)(10)	( 6,337)	( 1)	( 6,280)	( 1)	( 19,340)	( 1)	( 18,178)	-
7060	Share of profit or loss of associates and joint ventures accounted for using equity method,net	6(7)
			17,278	2	14,872	1	5,608	-	5,182	-
7000	Total non-operating income and expenses		158,868	20	139,480	11	249,862	9	109,260	4
7900	Profit before income tax		198,623	25	291,897	23	509,328	19	443,425	15
7950	Income tax expense	6(24)	( 13,125)	( 2)	( 72,727)	( 6)	( 106,730)	( 4)	( 143,571)	( 5)
8200	Net income		$ 185,498	23	$ 219,170	17	$ 402,598	15	$ 299,854	10
	Other comprehensive income
	Components of other comprehensive income that will not be reclassified to profit or loss
8316	Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income	6(6)(18)
8320	Share of other comprehensive income (loss) of associates and joint ventures accounted for using equity method	6(7)(18)	$ 2,268,426	282	($ 88,587)	( 7)	$ 1,828,886	66	$ 219,381	7
8310	Other comprehensive income that will not be reclassified to profit or loss		172,018	21	229,533	18	( 19,223)	( 1)	241,607	8
	Components of other comprehensive income that will be reclassified to profit or loss		2,440,444	303	140,946	11	1,809,663	65	460,988	15
8361	Exchange differences on translation	6(18)	69,680	9	( 14,172)	( 1)	( 195,452)	( 7)	55,778	2
8367	Unrealized gains (losses) from investments in debt instruments measured at fair value through other comprehensive income	6(6)(18)
8370	Share of other comprehensive (loss) income of associates and joint ventures accounted for using equity method	6(7)(18)	2,018	-	656	-	( 1,701)	-	1,513	-
8300	Other comprehensive income for the period		( 644)	-	( 80)	-	504	-	389	-
8500	Total comprehensive income (loss) that will be reclassified to profit or loss		71,054	9	( 13,596)	( 1)	( 196,649)	( 7)	57,680	2
8610	Owners of parent		$ 2,511,498	312	$ 127,350	10	$ 1,613,014	58	$ 518,668	17
8620	Non-controlling interests		$ 2,696,996	335	$ 346,520	27	$ 2,015,612	73	$ 818,522	27
	Comprehensive income attributable to:
8710	Owners of parent		$ 2,697,015	335	$ 346,520	27	$ 2,015,669	73	$ 818,522	27
8720	Non-controlling interests		$ 2,696,996	335	$ 346,520	27	$ 2,015,612	73	$ 818,522	27
	Earnings per share (in dollars)	6(25)
9750	Basic earnings per share		$ 1.73		$ 2.01		$ 3.80		$ 2.66
9850	Diluted earnings per share		$ 1.72		$ 2.00		$ 3.77		$ 2.64

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

CREATIVE SENSOR INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

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

	Notes	Equity attributable to owners of the parent
		Capital Reserves					Retained Earnings		Other equity interest		Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income		Treasury shares	Total	Non-controlling interests
		Capital stock - common stock	Additional paid-in capital	Treasury stock transactions	Capital surplus, changes in equity of associates and joint ventures accounted for using equity method	Capital surplus, employee share options	Options expired	Legal reserve	Unappropriated retained earnings	Financial statements translation differences of foreign operations	Total equity
Nine months ended September 30, 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		-	-	-	-	-	-	-	299,854	-	-	-	299,854	-	299,854
Other comprehensive income for the period	6(18)	-	-	-	-	-	-	-	-	56,167	462,501	-	518,668	-	518,668
Total comprehensive income		-	-	-	-	-	-	-	299,854	56,167	462,501	-	818,522	-	818,522
Appropriations of 2023 earnings:	6(17)
Legal reserve		-	-	-	-	-	-	56,817	( 56,817)	-	-	-	-	-	-
Cash dividends		-	-	-	-	-	-	-	( 157,270)	-	-	-	( 157,270)	-	( 157,270)
Capital reduction		( 149,055)	-	-	-	-	-	-	-	-	-	5,032	( 144,023)	-	( 144,023)
Share-based payment transactions	6(14)	-	-	-	-	1,775	-	-	-	-	-	-	1,775	-	1,775
Treasury shares transferred to employees		-	-	1,601	-	( 1,775)	88	-	-	-	-	28,846	28,760	-	28,760
Changes in equity of associates and joint ventures accounted for using equity method	6(18)
Disposal of financial assets at fair value through other comprehensive income	6(6)(18)								8,056	-	( 8,056)	-	227	-	227
Balance at September 30, 2024		$ 1,341,495	$ 970,251	$ 14,894	$ 834	$ -	$ 136	$ 628,128	$ 1,435,679	$ 102,499	$ 1,363,181	($ 145,868)	$ 5,711,231	$ -	$ 5,711,231
Nine months ended September 30, 2025
Balance at January 1, 2025		$ 1,341,495	$ 970,251	$ 14,894	$ 834	$ -	$ 136	$ 628,128	$ 1,499,454	$ 112,208	$ 1,816,528	($ 145,868)	$ 6,238,062	$ -	$ 6,238,062
Net income for the period		-	-	-	-	-	-	-	402,655	-	-	-	402,655	( 57)	402,598
Other comprehensive income (loss) for the period	6(18)									( 194,948)	1,807,962	-	1,613,014	-	1,613,014
Total comprehensive income (loss)		-	-	-	-	-	-	-	402,655	( 194,948)	1,807,962	-	2,015,669	( 57)	2,015,612
Appropriations of 2024 earnings:	6(17)
Legal reserve		-	-	-	-	-	-	38,268	( 38,268)	-	-	-	-	-	-
Cash dividends		-	-	-	-	-	-	-	( 272,203)	-	-	-	( 272,203)	-	( 272,203)
Issuance of shares	6(15)	36,750	110,250	-	-	-	-	-	-	-	-	-	147,000	-	147,000
Share-based payment transactions	6(14)	-	-	-	-	18,725	-	-	-	-	-	-	18,725	-	18,725
Treasury shares transferred to employees		-	-	12,878	-	( 18,725)	5,695	-	-	-	-	50,713	50,561	-	50,561
Changes in equity of associates and joint ventures accounted for using equity method		-	-	-	-	-	-	-	38,306	-	( 38,306)	-	-	-	-
Disposal of financial assets at fair value through other comprehensive income	6(6)(18)
Changes in non-controlling interests		-	-	-	-	-	-	-	( 377)	-	377	-	-	-	-
Balance at September 30, 2025		$ 1,378,245	$ 1,080,501	$ 27,772	$ 834	$ -	$ 5,833	$ 666,396	$ 1,629,567	($ 82,740)	$ 3,586,561	($ 95,155)	$ 8,197,814	$ 216	$ 8,198,030

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

CREATIVE SENSOR INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

	Notes	Nine months ended September 30
		2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax		$ 509,328	$ 443,425
Adjustments
Adjustments to reconcile profit (loss)
Depreciation	6(8)(9)(23)	34,297	39,147
Amortization	6(23)	5,178	6,071
Expected credit impairment (gains) losses	12(2)	( 19 )	117
Net (profit) loss on financial assets or liabilities at fair value through profit or loss	6(2)(11)(22)	( 71,273 )	24,553
Foreign currency evaluation of financial assets at fair value through other comprehensive income		4,715	( 2,616 )
Interest expense	6(9)(10)	19,340	18,178
Interest income	6(20)	( 45,359 )	( 25,540 )
Dividend income	6(6)(7)(21)	( 114,331 )	( 111,502 )
Share-based payments	6(14)	18,725	1,775
Share of profit of associates and joint ventures accounted for using equity method	6(7)	( 5,608 )	( 5,182 )
Net gain on disposal of investment	6(22)	( 124,253 )	-
Net loss (gain) on disposal of property, plant and equipment	6(22)	1,151	( 578 )
Gain from lease modification	6(9)(22)	( 37 )	-
Changes in operating assets and liabilities
Changes in operating assets
Financial assets at fair value through profit or loss		( 32,123 )	( 12,555 )
Accounts receivable		157,537	( 390,207 )
Accounts receivable - related paties		( 18,024 )	-
Other receivables		7,521	712
Other receivables - related parties		28,113	23
Inventories		52,239	30,756
Other current assets		2,447	4,445
Changes in operating liabilities
Accounts payable		( 247,587 )	360,850
Accounts payable - related parties		( 15,706 )	89,286
Other payables		15,538	27,214
Other payables - related parties		1,628	( 83 )
Other current liabilities		2,043	2,006
Cash inflow generated from operations		185,480	500,295
Interest received		45,589	25,237
Dividends received		142,449	136,742
Interest paid		( 19,340 )	( 18,178 )
Income tax paid		( 169,303 )	( 69,760 )
Income tax refund received		2,640	1,730
Net cash flows from operating activities		187,515	576,066

(Continued)

CREATIVE SENSOR INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

	Notes	Nine months ended September 30
		2025	2024
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from disposal of financial assets at amortized cost		$ 33,877	$ 166,677
Acquisition of financial assets at fair value through other comprehensive income		( 66,443 )	( 50,000 )
Proceeds from disposal of financial assets at fair value through other comprehensive income	6(6)	7,671	26,568
Redemption at maturity of financial assets at fair value through other comprehensive income		98,115	-
Acquisition of property, plant and equipment	6(26)	( 40,394 )	( 21,192 )
Proceeds from disposal of property, plant and equipment		138	578
Acquisition of intangible assets		( 625 )	( 2,147 )
Increase in refundable deposits		-	( 41 )
Increase in other non-current assets		( 3,164 )	( 5,529 )
Net cash flows from investing activities		29,175	114,914
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of lease principal	6(27)	( 7,630 )	( 7,649 )
Issuance of shares	6(15)	147,000	-
Payment of cash dividends	6(17)	( 272,203 )	( 157,270 )
Change in non-controlling interests arising from the establishment of a subsidiary		274	-
Treasury shares sold to employees		50,561	28,760
Net cash flows used in financing activities		( 81,998 )	( 136,159 )
Effect of exchange rate		( 127,146 )	46,291
Net increase in cash and cash equivalents		7,546	601,112
Cash and cash equivalents at beginning of period		3,103,866	2,471,963
Cash and cash equivalents at end of period		$ 3,111,412	$ 3,073,075

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

~10~

CREATIVE SENSOR INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NINE MONTHS ENDED SEPTEMBER 30, 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 reported to the Board of Directors on November 6, 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 2026 are as follows:

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

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

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

New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’	To be determined by International Accounting Standards Board
IFRS 18, ‘Presentation and disclosure in financial statements’	January 1, 2027 (Note)
IFRS 19, ‘Subsidiaries without public accountability: disclosures’	January 1, 2027
Note : The FSC has announced in a press release on September 25, 2025 that public companies will apply IFRS 18 starting from the fiscal year 2028. Additionally, entities can choose to adopt IFRS 18 earlier based on their requirements after the FSC endorses IFRS 18.
Except for the following, the above standards and interpretations have no significant impact to the Group's financial condition and financial performance based on the Group's assessment:
IFRS 18, ‘Presentation and disclosure in financial statements’
IFRS 18, ‘Presentation and disclosure in financial statements’ replaces IAS 1. The standard introduces a defined structure of the statement of profit or loss, disclosure requirements related to management-defined performance measures, and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes.

4. SUMMARY OF MATERIAL ACCOUNTING POLICIES

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.

(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:

~12~

Name of investor	Name of subsidiary	Main business activities	Ownership (%)
			September 30, 2025	December 31, 2024	September 30, 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 Collection of marketing information and maintaining relationship with customers	100	100	100
Creative Sensor Inc.	Sensorem Photonics India Private Limited	Collection of marketing information	91	-	-	Note 1
Creative Sensor Inc.	Creative Sensor Co. Ltd.	Holding company	100	100	100
Creative Sensor Co., Ltd.	Wuxi Creative Sensor Technology Co., Ltd.	Research and development of image sensor	-	100	100	Note 2
Creative Sensor Co., Ltd.	Nanchang Creative Sensor Technology Co., Ltd.	Manufacturing of image sensor	100	100	100

Note 1: It was incorporated in January 2025.
Note 2: The liquidation was completed in June 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.

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

There was no significant change during this period. Refer to Note 5 to 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

	September 30, 2025	December 31, 2024	September 30, 2024
Cash on hand and revolving funds	$ 187	$ 230	$ 88
Checking accounts and demand deposits	3,111,225	3,067,216	3,036,808
Time deposits	-	36,420	36,179
Total	$ 3,111,412	$ 3,103,866	$ 3,073,075

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

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

Items	September 30, 2025	December 31, 2024	September 30, 2024
Current items:
Financial assets mandatorily measured at fair value through profit or loss
Hybrid instruments	$ 183,089	$ 98,175	$ -
Derivative instruments	2,045	-	18,723
	185,134	98,175	18,723
Valuation adjustment	( 6,390)	( 6,853)	-
Total	$ 178,744	$ 91,322	$ 18,723

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 September 30,
	2025	2024
Financial assets mandatorily measured at fair value through profit or loss
Derivative instruments	($ 4,861)	$ 38,174
	Nine months ended September 30,
	2025	2024
Financial assets mandatorily measured at fair value through profit or loss
Derivative instruments	$ 109,381	$ 18,203

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	September 30, 2025		September 30, 2024
	Contract amount (notional principal) (In thousands)	Maturity date of the contract	Contract amount (notional principal) (In thousands)	Maturity date of the contract
Current items:
Cross currency swap	USD 2,000	2025.11.13	USD 2,000	2024.10.03
Cross currency swap	USD 1,000	2025.11.13	USD 1,000	2024.10.03
Cross currency swap	USD 2,000	2025.11.13	USD 1,000	2024.10.03
Cross currency swap	USD 1,000	2025.11.20	USD 2,000	2024.10.09
Cross currency swap	USD 1,000	2025.11.20	USD 1,000	2024.10.09
Cross currency swap	USD 1,000	2025.11.20	USD 1,000	2024.10.09
Cross currency swap	-	-	USD 1,000	2024.11.14
Cross currency swap	-	-	USD 1,000	2024.11.14
Cross currency swap	-	-	USD 1,000	2024.11.14
Cross currency swap	-	-	USD 2,000	2024.11.21
Cross currency swap	-	-	USD 1,000	2024.11.21
Cross currency swap	-	-	USD 1,000	2024.11.27
Cross currency swap	-	-	USD 2,000	2024.12.12
Cross currency swap	-	-	USD 1,000	2024.12.19
Cross currency swap	-	-	USD 1,000	2024.12.19
Forward exchange contracts	USD 2,000	2025.10.16	USD 2,000	2024.10.09
Forward exchange contracts	USD 2,000	2025.10.23	USD 2,000	2024.10.09
Forward exchange contracts	USD 2,000	2025.10.30	USD 2,000	2024.10.09
Forward exchange contracts	USD 2,000	2025.10.30	USD 2,000	2024.10.17
Forward exchange contracts	USD 2,000	2025.10.30	USD 2,000	2024.10.17
Forward exchange contracts	USD 1,000	2025.11.06	USD 2,000	2024.10.17
Forward exchange contracts	USD 1,000	2025.11.06	USD 1,000	2024.10.17
Forward exchange contracts	USD 1,000	2025.11.13	USD 2,000	2024.11.14
Forward exchange contracts	USD 2,000	2025.11.13	USD 2,000	2024.11.14
Forward exchange contracts	USD 1,000	2025.12.11	USD 2,000	2024.11.21
Forward exchange contracts	-	-	USD 1,000	2024.11.21
Forward exchange contracts	-	-	USD 2,000	2024.11.27
Forward exchange contracts	-	-	USD 1,000	2024.11.27
Forward exchange contracts	-	-	USD 2,000	2024.12.12
Forward exchange contracts	-	-	USD 1,000	2024.12.12
Forward exchange contracts	-	-	USD 2,000	2024.12.19

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

(1) 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.

(2) 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	September 30, 2025	December 31, 2024	September 30, 2024
Current items:
Time deposits with maturity over three months	$ -	$ 32,725	$ 31,690
Special-purpose demand deposits	12	12	12
Total	$ 12	$ 32,737	$ 31,702

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

	Three months ended September 30,
	2025	2024
Interest income	$ -	$ 265
	Nine months ended September 30,
	2025	2024
Interest income	$ 118	$ 1,662

B. As at September 30, 2025, December 31, 2024 and September 30, 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 $31,702, 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.

~16~

(4) Accounts receivable

	September 30, 2025	December 31, 2024	September 30, 2024
Accounts receivable	$ 506,611	$ 664,194	$ 727,141
Accounts receivable - related parties	19,297	1,273	-
Less: Loss allowance	( 158)	( 200)	( 218)
	$ 525,750	$ 665,267	$ 726,923

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

	September 30, 2025	December 31, 2024	September 30, 2024
Not past due	$ 523,380	$ 664,036	$ 716,089
Up to 30 days	2,528	1,431	11,052
	$ 525,908	$ 665,467	$ 727,141

The above ageing analysis was based on past due date.

B. As of September 30, 2025, December 31, 2024 and September 30, 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 September 30, 2025, December 31, 2024 and September 30, 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 $525,750, $665,267 and $726,923, respectively.

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

(5) Inventories

	September 30, 2025
	Cost	Allowance for valuation loss	Book value
Raw materials	$ 140,607	($ 1,744)	$ 138,863
Work in progress	20,211	( 66)	20,145
Finished goods	149,085	( 1,870)	147,215
Total	$ 309,903	($ 3,680)	$ 306,223

	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
	September 30, 2024
	Cost	Allowance for valuation loss	Book value
Raw materials	$ 180,279	($ 11,009)	$ 169,270
Work in progress	37,557	( 10)	37,547
Finished goods	131,635	( 7,828)	123,807
Total	$ 349,471	($ 18,847)	$ 330,624

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

	Three months ended September 30,
	2025	2024
Cost of goods sold	$ 648,629	$ 1,027,087
(Gain on reversal of market value decline of inventories) inventory valuation loss (Note)	( 1,320)	1,447
Others	( 92)	( 198)
Total	$ 647,217	$ 1,028,336
	Nine months ended September 30,
	2025	2024
Cost of goods sold	$ 2,188,544	$ 2,392,372
(Gain on reversal of market value decline of inventories) inventory valuation loss (Note)	( 6,971)	4,038
Others	( 476)	( 553)
Total	$ 2,181,097	$ 2,395,857

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

B. The Group has no inventories pledged to others.

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

Items	September 30, 2025	December 31, 2024	September 30, 2024
Non-current items:
Debt instruments
Government bonds	$ 61,378	$ 97,693	$ 94,411
Valuation adjustment	( 1,130)	482	( 481)
Subtotal	60,248	98,175	93,930
Equity instruments
Listed stocks	1,547,158	1,555,205	1,555,205
Unlisted stocks	103,590	103,590	103,590
	1,650,748	1,658,795	1,658,795
Valuation adjustment	3,351,042	1,521,779	1,161,011
Subtotal	5,001,790	3,180,574	2,819,806
Total	$ 5,062,038	$ 3,278,749	$ 2,913,736

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 $5,062,038, $3,278,749 and $2,913,736 as at September 30, 2025, December 31, 2024 and September 30, 2024, respectively.

B. In line with the Group's financial management plan, the Group sold $4,823, $0, $7,671 and $26,568 of equity instrument investments at fair value during the three months and nine months ended September 30, 2025 and 2024, and the (loss) gain on disposal were ($304), $0, ($377) and $10,993, respectively.

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

	Three months ended September 30,
	2025	2024
Equity instruments at fair value through other comprehensive income
Fair value change recognized in other comprehensive income	$ 2,268,426	($ 88,587)
Cumulative losses reclassified to retained earnings due to derecognition	($ 304)	$ -
Dividend income recognized in profit or loss Held at end of period	$ 114,152	$ 111,277
Debt instruments at fair value through other comprehensive income
Fair value change recognized in other comprehensive income	$ 2,018	$ 656
Interest income recognized in profit or loss	$ 630	$ 570

	Nine months ended September 30,
	2025	2024
Equity instruments at fair value through other comprehensive income
Fair value change recognized in other comprehensive income	$ 1,828,886	$ 219,381
Cumulative (losses) gains reclassified to retained earnings due to derecognition	($ 377)	$ 10,993
Dividend income recognized in profit or loss Held at end of period	$ 114,242	$ 111,502
Debt instruments at fair value through other comprehensive income
Fair value change recognized in other comprehensive income	($ 1,701)	$ 1,513
Interest income recognized in profit or loss	$ 1,665	$ 1,680

D. As of September 30, 2025, December 31, 2024 and September 30, 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 $5,062,038, $3,278,749 and $2,913,736, 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

	September 30, 2025		December 31, 2024		September 30, 2024
	Book value	Shareholding ratio	Book value	Shareholding ratio	Book value	Shareholding ratio
Associates:
Tien Da Investment
Co., Ltd. (Tien Da)	$ 388,141	29.85%	$ 421,955	29.85%	$ 401,011	29.85%
Teco Image Systems
Co., Ltd. (Teco Image)	775,634	29.69%	783,049	29.69%	738,230	29.69%
	$1,163,775		$1,205,004		$1,139,241

~21~

Three months ended September 30,

	2025		2024
	Share of profit of associates accounted for using equity method, net	Other comprehensive income after tax	Share of profit of associates accounted for using equity method, net	Other comprehensive income after tax
Associates:
Tien Da Investment Co., Ltd. (Tien Da)	$ 10,249	$ 56,406	$ 6,590	$ 164,526
Teco Image Systems Co., Ltd. (Teco Image)	7,029	114,968	8,282	64,927
	$ 17,278	$ 171,374	$ 14,872	$ 229,453
	Nine months ended September 30,
	2025		2024
	Share of profit (loss) of associates accounted for using equity method, net	Other comprehensive income after tax	Share of profit (loss) of associates accounted for using equity method, net	Other comprehensive income after tax
Associates:
Tien Da Investment Co., Ltd. (Tien Da)	$ 9,923	($ 37,335)	$ 6,172	$ 168,860
Teco Image Systems Co., Ltd. (Teco Image)	( 4,315)	18,616	( 990)	73,136
	$ 5,608	($ 18,719)	$ 5,182	$ 241,996

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

Company name	Principal place of business	Shareholding ratio		Nature of relationship	Method of measurement
		September 30, 2025	December 31, 2024
Teco Image Systems Co., Ltd.	Taiwan	29.69%	29.69%	Strategic investment	Equity method
Company name	Principal place of business	Shareholding ratio		Nature of relationship	Method of measurement
		September 30, 2024
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.
	September 30, 2025	December 31, 2024	September 30, 2024
Current assets	$ 1,204,841	$ 972,917	$ 1,101,127
Non-current assets	3,046,579	2,834,529	2,504,602
Current liabilities	( 620,617)	( 486,741)	( 688,836)
Non-current liabilities	( 77,438)	( 114,148)	( 64,085)
Total net assets	$ 3,553,365	$ 3,206,557	$ 2,852,808
Share in associate’s net assets	$ 775,634	$ 783,049	$ 706,253
Goodwill	-	-	31,977
Carrying amount of the associate	$ 775,634	$ 783,049	$ 738,230

Statement of comprehensive income

	Three months ended September 30,
	2025	2024
Revenue	$ 304,824	$ 388,205
Profit for the period from continuing operations	$ 50,426	$ 64,007
Other comprehensive income, net of tax	849,104	230,768
Total comprehensive income	$ 899,530	$ 294,775
Dividends received from associates	$ 21,716	$ -
	Nine months ended September 30,
	2025	2024
Revenue	$ 1,025,820	$ 952,578
Profit for the period from continuing operations	$ 56,859	$ 50,784
Other comprehensive income, net of tax	366,873	335,881
Total comprehensive income	$ 423,732	$ 386,665
Dividends received from associates	$ 21,716	$ 16,704

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

As of September 30, 2025, December 31, 2024 and September 30, 2024, the carrying amount of the Group's individually immaterial associates amounted to $388,141, $421,955 and $401,011, respectively.

	Three months ended September 30,
	2025	2024
Profit for the period from continuing operations	$ 10,249	$ 6,590
Other comprehensive income, net of tax	56,406	164,526
Total comprehensive income	$ 66,655	$ 171,116
Dividends received from associates	$ -	$ -
	Nine months ended September 30,
	2025	2024
Profit for the period from continuing operations	$ 9,923	$ 6,172
Other comprehensive (loss) income, net of tax	( 37,335)	168,860
Total comprehensive (loss) income	($ 27,412)	$ 175,032
Dividends received from associates	$ 6,402	$ -

D. The Group's material associate, Teco Image, has quoted market prices. As of September 30, 2025, December 31, 2024 and September 30, 2024, the fair value was $978,854, $922,061 and $876,960, 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.

~23~

(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	1,004	1,182	89	2,130	798	35,649	40,852
Transfers	-	3,674	-	-	45	( 3,719)	-
Disposals	-	( 1,289)	-	-	-	-	( 1,289)
Depreciation	( 12,089)	( 8,311)	( 2,624)	( 1,727)	( 885)	-	( 25,636)
Net exchange differences	( 4,172)	( 2,649)	( 55)	( 312)	( 160)	( 68)	( 7,416)
Closing net book value as at September 30	$ 61,564	$ 40,801	$ 5,939	$ 5,019	$ 2,874	$ 34,722	$ 150,919
At September 30
Cost	$ 605,030	$ 892,662	$ 50,906	$ 31,033	$ 17,477	$ 34,722	$ 1,631,830
Accumulated depreciation and impairment	( 543,466)	( 851,861)	( 44,967)	( 26,014)	( 14,603)	-	( 1,480,911)
	$ 61,564	$ 40,801	$ 5,939	$ 5,019	$ 2,874	$ 34,722	$ 150,919

	2024
	Buildings and structures	Machinery and equipment	Office equipment	Leasehold improvements	Other equipment	Construction in progress and equipment to be inspected	Total
At January 1
Cost	$609,760	$956,905	$46,024	$29,012	$16,939	$2,493	$1,661,133
Accumulated depreciation
and impairment	(520,413)	(911,848)	(40,856)	(24,393)	(13,173)	-	(1,510,683)
	$89,347	$45,057	$5,168	$4,619	$3,766	$2,493	$150,450
Opening net book value as at
January 1	$89,347	$45,057	$5,168	$4,619	$3,766	$2,493	$150,450
Additions	-	681	5,530	1,758	209	15,088	23,266
Transfers	-	15,671	-	-	17	(15,688)	-
Depreciation	(12,680)	(14,062)	(1,851)	(1,311)	(863)	-	(30,767)
Net exchange differences	3,846	1,829	50	200	147	108	6,180
Closing net book value as at
September 30	$80,513	$49,176	$8,897	$5,266	$3,276	$2,001	$149,129
At September 30
Cost	$636,083	$925,371	$52,121	$29,156	$17,472	$2,001	$1,662,204
Accumulated depreciation
and impairment	(555,570)	(876,195)	(43,224)	(23,890)	(14,196)	-	(1,513,075)
	$80,513	$49,176	$8,897	$5,266	$3,276	$2,001	$149,129

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	( 794)	( 7,174)	( 693)	( 8,661)
Net exchange differences	( 2,014)	-	-	( 2,014)
At September 30, 2025	$ 32,974	$ 35,076	$ 1,164	$ 69,214
	Land use right	Buildings	Transportation equipment	Total
At January 1, 2024	$ 35,125	$ 3,815	$ -	$ 38,940
Additions	-	47,831	2,494	50,325
Depreciation	( 822)	( 7,004)	( 554)	( 8,380)
Net exchange differences	1,516	-	-	1,516
At September 30, 2024	$ 35,819	$ 44,642	$ 1,940	$ 82,401

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

	Three months ended September 30,
	2025	2024
Items affecting profit or loss
Interest expense on lease liabilities	$ 167	$ 211
Expense on short-term lease contracts	132	30

E. For the nine months ended September 30, 2025 and 2024, the Group's total cash outflow for leases was $8,563 and $8,018, 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	September 30, 2025	Interest rate range	Collateral
Bank borrowings
Unsecured borrowings	$ 550,000	1.890%~1.975%	None
Secured borrowings	750,000	1.890%~2.030%	Stock
	$ 1,300,000
Type of borrowings	December 31, 2024	Interest rate range	Collateral
Bank borrowings
Unsecured borrowings	$ 550,000	1.890%~2.200%	None
Secured borrowings	750,000	1.870%~2.030%	Stock
	$ 1,300,000
Type of borrowings	September 30, 2024	Interest rate range	Collateral
Bank borrowings
Unsecured borrowings	$ 550,000	1.835%~1.975%	None
Secured borrowings	750,000	1.830%~1.975%	Stock

For the three months and nine months ended September 30, 2025 and 2024, the Group's interest expense recognized in profit or loss amounted to $6,171, $6,069, $18,803 and $17,863, respectively.

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

Items	September 30, 2025	December 31, 2024	September 30, 2024
Current items:
Financial liabilities
mandatorily measured
at fair value through
profit or loss
Derivative instruments	$ 8,699	$ 24,673	$ 3

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

	Three months ended September 30,
	2025	2024
Net loss recognized in profit or loss
Financial liabilities mandatorily measured at fair value through profit or loss
Derivative instruments	($ 27,606)	($ 3,002)
	Nine months ended September 30,
	2025	2024
Net loss recognized in profit or loss
Financial liabilities mandatorily measured at fair value through profit or loss
Derivative instruments	($ 38,108)	($ 42,756)

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	September 30, 2025
	Contract amount (notional principal) (In thousands)	Maturity date of the contract
Current items:
Cross currency swap	USD 1,000	2025.10.16
Cross currency swap	USD 2,000	2025.10.23
Cross currency swap	USD 1,000	2025.10.30
Cross currency swap	USD 1,000	2025.10.30
Cross currency swap	USD 2,000	2025.10.30
Cross currency swap	USD 2,000	2025.11.06
Cross currency swap	USD 1,000	2025.11.06
Cross currency swap	USD 1,000	2025.11.06
Cross currency swap	USD 2,000	2025.11.06
Cross currency swap	USD 1,000	2025.11.26
Cross currency swap	USD 2,000	2025.12.04
Cross currency swap	USD 1,000	2025.12.11
Forward exchange contracts	USD 2,000	2025.11.20
Forward exchange contracts	USD 1,000	2025.11.20
Forward exchange contracts	USD 1,000	2025.11.20
Forward exchange contracts	USD 1,000	2025.11.26
Forward exchange contracts	USD 2,000	2025.12.04
Forward exchange contracts	USD 1,000	2025.12.04
Forward exchange contracts	USD 2,000	2025.12.04
Forward exchange contracts	USD 1,000	2025.12.11
Forward exchange contracts	USD 2,000	2025.12.11
	December 31, 2024
Derivative instruments	Contract amount (notional principal) (In thousands)	Maturity date of the contract
Current items:
Cross currency swap	USD 2,000	2025.01.09
Cross currency swap	USD 1,000	2025.01.09
Cross currency swap	USD 2,000	2025.01.16
Cross currency swap	USD 1,000	2025.01.16
Cross currency swap	USD 1,000	2025.01.16
Cross currency swap	USD 2,000	2025.01.23
Cross currency swap	USD 1,000	2025.01.23
Cross currency swap	USD 1,000	2025.02.06
Cross currency swap	USD 1,000	2025.02.06
Cross currency swap	USD 2,000	2025.02.13

December 31, 2024

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

September 30, 2024

Derivative instruments	Contract amount (notional principal) (In thousands)	Maturity date of the contract
Current items:
Forward exchange contracts	USD 2,000	2024.12.19

(a) Cross currency swap

(b) Forward foreign exchange contracts

(12) Other payables

	September 30, 2025	December 31, 2024	September 30, 2024
Accrued employees’ compensation and directors’ remuneration	$ 75,063	$ 60,908	$ 50,675
Bonus payable	79,362	85,455	78,496
Royalties payable	52,191	52,191	52,191
Wages and salaries payable	27,244	38,926	39,318
Dividend payable	-	-	144,023
Others	64,029	48,427	49,662
	$ 297,889	$ 285,907	$ 414,365

(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 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 and nine months ended September 30, 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.

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 and nine months ended September 30, 2025 and 2024 were $4,552, $4,398, $14,326 and $12,981, respectively.

(14) Share-based payment

A. For the nine months ended September 30, 2025 and 2024, the Group's share-based payment arrangements were as follows:

Type of arrangement	Grant date	Quantity granted	Contract period	Vesting conditions
Treasury shares transferred to employees	2024/4/25	1,660,000	NA	Vested immediately
Treasury shares transferred to employees	2025/5/9	2,430,000	NA	Vested immediately

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

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

	Nine months ended September 30, 2025
	No. of options	Weighted-average exercise price (in dollars)
Options granted	2,430,000	$ 29.99
Options exercised	(1,691,000)	29.99
Options expired	(739,000)	29.99
Options outstanding at September 30	-

C. The weighted-average stock prices of stock options at exercise dates for the nine months ended September 30, 2025 and 2024 were $49.05 and $29.50, respectively.

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

	Nine months ended September 30, 2024
	No. of options	Weighted-average exercise price (in dollars)
Options granted	937,750	$ 29.99
Options granted	722,250	26.33
Options exercised	(327,900)	29.99
Options exercised	(722,100)	26.33
Options expired	(609,850)	29.99
Options expired	(150)	26.33
Options outstanding at September 30	-
Type of arrangement	Grant date	Stock price (in dollars)
---	---	---
Treasury shares transferred to employees	2024/4/25	$ 28.55
Treasury shares transferred to employees	2024/4/25	$ 28.55
Treasury shares transferred to employees	2025/5/9	$ 37.56

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

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

	Nine months ended September 30,
	2025	2024
Equity-settled	$ 18,725	$ 1,775

~34~

(15) Capital stock

A. As of September 30, 2025, the Company’s authorized capital was $2,500,000, consisting of 250 million shares of ordinary stock (including 15 million shares reserved for employee stock options), and the paid-in capital was $1,378,245, consisting of 137,825 thousand shares of ordinary stock issued (including 23,475 thousand shares of private placement stock) with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected.

B. For the nine months ended September 30, 2025 and 2024, movements in the number of the ordinary shares outstanding are as follows:

	2025	2024
At January 1	$ 129,620,700	$ 142,973,000
Employee stock options exercised	1,691,000	1,050,000
Cash capital increase - private placement	3,675,000	( 14,402,300)
At September 30	$ 134,986,700	$ 129,620,700

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

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

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

F. Treasury shares

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

Name of company holding the shares	Reason for reacquisition	September 30, 2025
		Number of shares	Carrying amount
The Company	To be transferred to employees	2,837,800	$ 95,155
		December 31, 2024
Name of company holding the shares	Reason for reacquisition	Number of shares	Carrying amount
The Company	To be transferred to employees	4,528,800	$ 145,868
		September 30, 2024
Name of company holding the shares	Reason for reacquisition	Number of shares	Carrying amount
The Company	To be transferred to employees	4,528,800	$ 145,868

(b) Pursuant to the R.O.C. Securities and Exchange Act, the number of shares bought back as treasury share should not exceed 10% of the number of the Company's issued and outstanding shares and the amount bought back should not exceed the sum of retained earnings, paid-in capital in excess of par value and realized capital surplus.

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

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

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

G. The number of the Company’s shares held by the Company’s associate - Teco Image Systems Co., Ltd. was 26,015,634 shares as of September 30, 2025.

(16) Capital surplus

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

(17) Retained earnings

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

(a) Pay all taxes.

(b) Cover accumulated deficit.

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

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

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

~36~

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

C. In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.

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

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

Abovementioned distribution of 2024 earnings is consistent with the proposal of the Board of Directors of the Company on February 27, 2025.

Information about earnings appropriation as resolved at the Board of Directors’ and stockholders’ meetings will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

(18) Other equity items

	2025
	Unrealized gains (losses) on valuation	Currency translation	Total
At January 1	$ 1,816,528	$ 112,208	$ 1,928,736
Valuation adjustment:
—Group	1,827,185	-	1,827,185
—Associates	( 19,223)	-	( 19,223)
Revaluation transferred to retained earnings:
—Group	377	-	377
—Associates	( 38,306)	-	( 38,306)
Currency translation differences:
—Group	-	( 195,452)	( 195,452)
—Associates	-	504	504
At September 30	$ 3,586,561	($ 82,740)	$ 3,503,821
	2024
	Unrealized gains (losses) on valuation	Currency translation	Total
At January 1	$ 919,729	$ 46,332	$ 966,061
Valuation adjustment:
—Group	220,894	-	220,894
—Associates	241,607	-	241,607
Revaluation transferred to retained earnings:
—Group	( 10,993)	-	( 10,993)
—Associates	( 8,056)	-	( 8,056)
Currency translation differences:
—Group	-	55,778	55,778
—Associates	-	389	389
At September 30	$ 1,363,181	$ 102,499	$ 1,465,680

(19) Operating revenue

	Three months ended September 30,
	2025	2024
Revenue from contracts with customers	$ 803,900	$ 1,300,128
	Nine months ended September 30,
	2025	2024
Revenue from contracts with customers	$ 2,760,275	$ 3,003,929

The Group derives revenue from the following major geographical regions:

Three months ended September 30, 2025	China	Thailand	Indonesia	Philippines	Others	Total
Revenue from external customer contracts	$ 281,581	$ 161,095	$ 82,730	$ 119,658	$ 158,836	$ 803,900
Three months ended September 30, 2024	China	Thailand	Indonesia	Philippines	Others	Total
Revenue from external customer contracts	$ 557,529	$ 233,992	$ 137,770	$ 160,047	$ 210,790	$ 1,300,128
Nine months ended September 30, 2025	China	Thailand	Indonesia	Philippines	Others	Total
Revenue from external customer contracts	$ 1,032,542	$ 492,757	$ 361,009	$ 342,887	$ 531,080	$ 2,760,275
Nine months ended September 30, 2024	China	Thailand	Indonesia	Philippines	Others	Total
Revenue from external customer contracts	$ 1,332,010	$ 529,283	$ 260,327	$ 389,356	$ 492,953	$ 3,003,929

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

(20) Interest income

	Three months ended September 30,
	2025	2024
Interest income from bank deposits	$ 12,294	$ 8,337
Interest income from financial assets at fair value through other comprehensive income	630	570
Interest income from financial assets measured at amortized cost	-	265
	$ 12,924	$ 9,172
	Nine months ended September 30,
	2025	2024
Interest income from bank deposits	$ 43,576	$ 22,198
Interest income from financial assets at fair value through other comprehensive income	1,665	1,680
Interest income from financial assets measured at amortized cost	118	1,662
	$ 45,359	$ 25,540

(21) Other income

	Three months ended September 30,
	2025	2024
Rental revenue	$ 877	$ 917
Government grants	262	339
Directors’ and supervisors’ remuneration	13,653	11,832
Dividend income	114,241	111,277
Other income	651	1,704
	$ 129,684	$ 126,069
	Nine months ended September 30,
	2025	2024
Rental revenue	$ 2,845	$ 2,861
Government grants	267	1,666
Directors’ and supervisors’ remuneration	13,653	11,832
Dividend income	114,331	111,502
Other income	1,399	2,597
	$ 132,495	$ 130,458

(22) Other gains and losses

	Three months ended September 30,
	2025	2024
(Loss) gain on financial assets (liabilities)at fair value through profit or loss	($ 32,467)	$ 35,172
Foreign exchange gains (losses)	39,312	(38,311)
(Losses) gains on disposal of property, plant andequipment	(1,160)	3
Other gains and losses	(366)	(1,217)
	$ 5,319	($ 4,353)

	Nine months ended September 30,
	2025	2024
Gain (loss) on financial assets (liabilities)at fair value through profit or loss	$ 71,273	($ 24,553)
Foreign exchange (losses) gains	( 107,591)	12,968
Gain from lease modification	37	-
Gain on disposal of investment	124,253	-
(Losses) gains on disposal of property, plant and equipment	( 1,151)	578
Other gains and losses	( 1,081)	( 22,735)
	$ 85,740	($ 33,742)

(23) Employee benefit expense, depreciation and amortization

For the three months and nine months ended September 30, 2025 and 2024, employee benefit expense, depreciation and amortization categorized by function were summarized as follows:

	Three months ended September 30, 2025
	Operating costs	Operating expenses	Total
Employee benefit expense
Wages and salaries	$ 65,426	$ 59,212	$ 124,638
Labor and health insurance fees	3,608	1,916	5,524
Pension costs	3,487	1,065	4,552
Other personnel expenses	4,328	1,395	5,723
Depreciation	6,052	4,397	10,449
Amortization	1,208	457	1,665
	Three months ended September 30, 2024
	Operating costs	Operating expenses	Total
Employee benefit expense
Wages and salaries	$ 93,784	$ 71,971	$ 165,755
Labor and health insurance fees	8,559	1,845	10,404
Pension costs	3,416	982	4,398
Other personnel expenses	6,682	1,703	8,385
Depreciation	8,466	4,584	13,050
Amortization	1,293	626	1,919

	Nine months ended September 30, 2025
	Operating costs	Operating expenses	Total
Employee benefit expense
Wages and salaries	$ 207,260	$ 178,247	$ 385,507
Labor and health insurance fees	11,721	7,182	18,903
Pension costs	11,175	3,151	14,326
Other personnel expenses	14,738	4,417	19,155
Depreciation	20,810	13,487	34,297
Amortization	3,506	1,672	5,178
	Nine months ended September 30, 2024
	Operating costs	Operating expenses	Total
Employee benefit expense
Wages and salaries	$ 217,663	$ 141,591	$ 359,254
Labor and health insurance fees	18,161	6,518	24,679
Pension costs	9,942	3,039	12,981
Other personnel expenses	15,880	4,316	20,196
Depreciation	25,838	13,309	39,147
Amortization	4,168	1,903	6,071

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 $5\% \sim 15\%$ for employees' compensation, of which at least $15\%$ shall be distributed to rank-and-file employees and shall not be higher than $5\%$ for directors' remuneration.

B. For the three months and nine months ended September 30, 2025 and 2024, employees' compensation were accrued at $20,302,$ 25,938, $47,521, and $38,006, respectively; directors' remuneration were accrued at $6,767, $8,645 $15,840 and $12,668, respectively. The aforementioned amounts were recognized in salary expenses, and estimated based on the current profit.

The employees' compensation and directors' remuneration for 2024 as resolved by the Board of Directors were in agreement with the amounts recorded in the 2024 financial statements of $45,681 and$ 15,227, respectively. Employees' compensation will be distributed in the form of cash, as of November 10, 2025, payment of the above amounts has yet to be completed.

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

(24) Income tax

A. Income tax expense

Components of income tax expense:

	Three months ended September 30,
	2025	2024
Current tax:
Current tax on profit for the period	$ 33,576	$ 37,373
Tax imposed on undistributed surplus earnings	( 5)	-
Prior year income tax under estimation	34	-
Total current tax	33,605	37,373
Deferred tax:
Origination and reversal of temporary differences	( 20,520)	35,385
Effect of exchange rate	40	( 31)
Total deferred tax	( 20,480)	35,354
Income tax expense	$ 13,125	$ 72,727
	Nine months ended September 30,
	2025	2024
Current tax:
Current tax on profit for the period	$ 121,884	$ 79,602
Tax imposed on undistributed surplus earnings	3,562	17,622
Prior year income tax (over) under estimation	( 786)	2,671
Total current tax	124,660	99,895
Deferred tax:
Origination and reversal of temporary differences	( 17,751)	43,510
Effect of exchange rate	( 179)	166
Total deferred tax	( 17,930)	43,676
Income tax expense	$ 106,730	$ 143,571

B. The Company's income tax returns through 2022 have been assessed and approved by the Tax Authority.

(25) Earnings per share

	Three months ended September 30, 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	$ 185,517	107,083	$ 1.73
Diluted earnings per share
Profit attributable to ordinary shareholders of the parent	$ 185,517	107,083
Assumed conversion of all dilutive potential ordinary shares
Employees’ compensation	-	826
Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	$ 185,517	107,909	$ 1.72
	Three months ended September 30, 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	$ 219,170	109,171	$ 2.01
Diluted earnings per share
Profit attributable to ordinary shareholders of the parent	$ 219,170	109,171
Assumed conversion of all dilutive potential ordinary shares
Employees’ compensation	-	623
Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	$ 219,170	109,794	$ 2.00

	Nine months ended September 30, 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	$ 402,655	105,924	$ 3.80
Diluted earnings per share
Profit attributable to ordinary shareholders of the parent	$ 402,655	105,924
Assumed conversion of all dilutive potential ordinary shares
Employees’ compensation	-	982
Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	$ 402,655	106,906	$ 3.77
	Nine months ended September 30, 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	$ 299,854	112,562	$ 2.66
Diluted earnings per share
Profit attributable to ordinary shareholders of the parent	$ 299,854	112,562
Assumed conversion of all dilutive potential ordinary shares
Employees’ compensation	-	861
Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	$ 299,854	113,423	$ 2.64

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

(26) Supplemental cash flow information

A. Investing activities with partial cash payments:

	Nine months ended September 30,
	2025	2024
Purchase of property, plant and equipment	$ 40,852	$ 23,266
Add: Opening balance of payable on equipment	348	3,047
Less: Ending balance of payable on equipment	( 806)	( 5,121)
Cash paid during the period	$ 40,394	$ 21,192

B. Investing activities with partial cash collections:

	Nine months ended September 30,
	2025	2024
Disposal of financial assets at fair value through other comprehensive income	$ 7,671	$ 26,568

C. Financing activities with no cash flow effects

	Nine months ended September 30,
	2025	2024
Dividends payable	$ -	$ 144,023

(27) 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	-	( 7,630)	( 7,630)
Increase in lease liabilities	-	87	87
Interest amortized in lease liabilities	-	537	537
Interest paid in lease liabilities	-	( 537)	( 537)
At September 30	$ 1,300,000	$ 36,670	$ 1,336,670

~47~

	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	-	( 7,649)	( 7,649)
Increase in lease liabilities	-	50,325	50,325
Interest amortized in lease liabilities	-	315	315
Interest paid in lease liabilities	-	( 315)	( 315)
At September 30	$ 1,300,000	$ 46,724	$ 1,346,724

7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

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

(2) Significant related party transactions and balances

A. Operating revenue

	Three months ended September 30,
	2025	2024
Sales of goods:
— Subsidiaries of the Group’s key management	$ 18,354	$ -
— The Group's key management	673	26
	$ 19,027	$ 26
	Nine months ended September 30,
	2025	2024
Sales of goods:
— Subsidiaries of the Group’s key management	$ 21,561	$ -
— The Group's key management	2,355	26
	$ 23,916	$ 26

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 September 30,
	2025	2024
Purchases of goods:
— The Group's key management
— Koryo Electronics	$ 122,001	$ 91,922
	Nine months ended September 30,
	2025	2024
Purchases of goods:
— The Group's key management
— Koryo Electronics	$ 356,651	$ 92,808

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

	September 30, 2025	December 31, 2024	September 30, 2024
Accounts receivable:
— The Group’s key management Subsidiaries	$ 18,621	$ -	$ -
— The Group’s key management	676	1,273	-
Other accounts receivable:
— Associate-Teco Image	34	8	24
	$ 19,331	$ 1,281	$ 24

D. Payables to related parties

	September 30, 2025	December 31, 2024	September 30, 2024
Accounts payable:
— The Group’s key management
— Koryo Electronics	$ 192,974	$ 220,455	$ 90,550
Other payables:
— Associate	2,031	402	-
— Subsidiaries of the Group’s key management	-	1	314
	$ 195,005	$ 220,858	$ 90,864

The payables bear no interest.

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

	Three months ended September 30,
	2025	2024
Associates-Teco Image	$ 188	$ -
	Nine months ended September 30,
	2025	2024
Associates-Teco Image	$ 579	$ -

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

	Three months ended September 30,
	2025	2024
Subsidiaries of the Group’s key management	$ 1,067	$ 908
	Nine months ended September 30,
	2025	2024
Subsidiaries of the Group’s key management	$ 3,326	$ 2,675

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

	Three months ended September 30,
	2025	2024
Associates-Teco Image	$ 2,075	$ 1,346
	Nine months ended September 30,
	2025	2024
Associates-Teco Image	$ 6,586	$ 5,564

H. Other income

	Three months ended September 30,
	2025	2024
Subsidiaries of the Group’s key management Associates	$ 239	$ -
	8	48
	$ 247	$ 48
	Nine months ended September 30,
	2025	2024
Subsidiaries of the Group’s key management Associates	$ 277	$ -
	63	150
	$ 340	$ 150
(3) Key management compensation
	Three months ended September 30,
	2025	2024
Short-term employee benefits	$ 13,652	$ 26,110
	Nine months ended September 30,
	2025	2024
Short-term employee benefits	$ 45,330	$ 51,496
Share-based payments	3,082	389
	$ 48,412	$ 51,885

PLEDGED ASSETS

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

Pledged asset	Book value			Purpose
	September 30, 2025	December 31, 2024	September 30, 2024
Non-current financial assets at fair value through other comprehensive income	$ 3,613,800	$ 1,983,600	$ 1,854,400	Short-term borrowings

SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

(1) Contingencies

None.

(2) Commitments

None.

SIGNIFICANT DISASTER LOSS

None.

~51~

11. SIGNIFICANT SUBSEQUENT EVENTS AFTER THE BALANCE SHEET DATE

On October 7, 2025, the Company acquired a 100% equity interest in L&K Industries Philippines, Inc. for a total purchase consideration of NT$151,380 thousand.

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

	September 30, 2025	December 31, 2024	September 30, 2024
Financial assets
Financial assets at fair value through profit or loss
Financial assets mandatorily measured at fair value through profit or loss	$ 178,744	$ 91,322	$ 18,723
Financial assets at fair value through other comprehensive income
Designation of equity instruments	5,001,790	3,180,574	2,819,806
Qualifying debt instrument	60,248	98,175	93,930
Financial assets at amortized cost
Cash and cash equivalents	3,111,412	3,103,866	3,073,075
Financial assets at amortized cost	12	32,737	31,702
Accounts receivable (including related parties)	525,750	665,267	726,923
Other receivables (including related parties)	878	8,765	4,298
Guarantee deposits paid	1,798	1,798	1,722
	$ 8,880,632	$ 7,182,504	$ 6,770,179

September 30, 2025 December 31, 2024 September 30, 2024

Financial liabilities
Financial liabilities at fair value through profit or loss
Financial liabilities mandatorily measured at fair value through profit or loss	$ 8,699	$ 24,673	$ 3
Financial liabilities at amortized cost
Short-term borrowings	1,300,000	1,300,000	1,300,000
Accounts payable (including related parties)	646,209	958,223	873,472
Other payables (including related parties)	299,920	286,310	414,679
	$ 2,254,828	$ 2,569,206	$ 2,588,154
Lease liability (including current and non-current portion)	$ 36,670	$ 44,213	$ 46,724

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:

	September 30, 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	$ 74,800	30.52	$ 2,282,896	1%	$ 22,829	$ -
RMB : NTD	300	4.29	1,287	1%	13	-
USD : RMB	49,161	7.11	1,500,394	1%	15,004	-
Financial liabilities
Monetary items
USD : NTD	$ 40,005	30.52	$ 1,220,953	1%	$ 12,210	$ -
USD : RMB	18,812	7.11	574,142	1%	5,741	-
	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	-

~54~

	September 30, 2024
	Foreign currency amount (in thousands)	Exchange rate	Book value (NTD)	Segree of variation	Effect on profit or loss	Effect on other comprehensive income
(Foreign currency: functional currency)
Financial assets
Monetary items
USD : NTD	$ 69,992	31.69	$ 2,218,046	1%	$ 22,180	$ -
RMB : NTD	300	4.52	1,356	1%	14	-
USD : RMB	53,537	7.01	1,696,588	1%	16,966	-
Financial liabilities
Monetary items
USD : NTD	$ 36,885	31.69	$ 1,168,886	1%	$ 11,689	$ -
USD : RMB	24,660	7.01	781,475	1%	7,815	-

v. The total exchange gain (loss), including realized and unrealized, arising from significant foreign exchange variation on the monetary items held by the Group were $39,312, ($38,311), ($107,591) and $12,968 for the three months and nine months ended September 30, 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 nine months ended September 30, 2025 and 2024, other components of equity would have increased/decreased by $500,179 and $281,981, respectively, as a result of other comprehensive income on equity investment classified as at fair value through other comprehensive income.

~55~

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 nine months ended September 30, 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 and nine months ended September 30, 2025 and 2024 would have increased/decreased by $650, $650, $1,950 and $1,950, respectively. The main factor is that changes in interest expense result from floating-rate borrowings.

(b) Credit risk

i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, and the contract cash flows of debt instruments stated at amortized cost and at fair value through other comprehensive income.

ii. The Group manages its credit risk taking into consideration the entire group’s concern. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analyzing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors. The utilization of credit limits is regularly monitored.

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

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 September 30, 2025, December 31, 2024 and September 30, 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 September 30, 2025, December 31, 2024 and September 30, 2024, the total book value of accounts receivable and loss allowance were $525,908, $665,467, $727,141 and $158, $200, $218, 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)	Other receivables (including related parties)	Total
At January 1	$ 200	$ -	$ 200
Provision for impairment	( 42)	23	( 19)
Reversal for impairment	-	( 23)	( 23)
At September 30	$ 158	$ -	$ 158

~57~

	2024
	Accounts receivable (including related parties)	Other receivables (including related parties)	Total
At January 1	$ 101	$ -	$ 101
Provision for impairment	117	-	117
At September 30	$ 218	$ -	$ 218

For the nine months ended September 30, 2025 and 2024, the impairment losses and gains arising from customers' contracts were ($19) and $117, respectively.

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

	September 30, 2025
	12 months	Lifetime		Total
		Significant increase in credit risk	Impairment of credit
Financial assets at amortized cost	$ 12	$ -	$ -	$ 12
Financial assets at fair value through other comprehensive income	$ 60,248	$ -	$ -	$ 60,248
	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

~58~

	September 30, 2024
	12 months	Lifetime		Total
		Significant increase in credit risk	Impairment of credit
Financial assets at amortized cost	$ 31,702	$ -	$ -	$ 31,702
Financial assets at fair value through other comprehensive income	$ 93,930	$ -	$ -	$ 93,930

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.

September 30, 2025	Less than 1 year	Between 1 and 2 years	Between 2 and 5 years
Non-derivative financial liabilities
Short-term borrowings	$ 1,303,626	$ -	$ -
Accounts payable (including related parties)	646,209	-	-
Other payables (including related parties)	299,920	-	-
Lease liability	10,886	10,290	16,654
Derivative financial liabilities
Cross currency swap	$ 7,879	$ -	$ -
Forward foreign exchange contracts	820	-	-
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	-	-
September 30, 2024	Less than 1 year	Between 1 and 2 years	Between 2 and 5 years
Non-derivative financial liabilities
Short-term borrowings	$ 1,301,711	$ -	$ -
Accounts payable (including related parties)	873,472	-	-
Other payables (including related parties)	414,679	-	-
Lease liability	10,844	10,844	26,930
Derivative financial liabilities
Forward foreign exchange contracts	$ 3	$ -	$ -

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.

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, notes receivable, 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:

September 30, 2025	Level 1	Level 2	Level 3	Total
Assets:
Recurring fair value measurements
Financial assets at fair value through profit or loss
Hybrid instruments	$ -	$ -	$ 176,699	$ 176,699
Derivative instruments	-	2,045	-	2,045
Financial assets at fair value through other comprehensive income
Equity securities	4,901,790	-	100,000	5,001,790
Debt instruments	60,248	-	-	60,248
Total	$4,962,038	$ 2,045	$ 276,699	$5,240,782

~61~

September 30, 2025	Level 1	Level 2	Level 3	Total
Liabilities:
Recurring fair value measurements
Financial liabilities at fair value through profit or loss
Derivative instruments	$ -	$ 8,699	$ -	$ 8,699
December 31, 2024	Level 1	Level 2	Level 3	Total
Assets:
Recurring fair value measurements
Financial assets at fair value through profit or loss
Hybrid instruments	$ -	$ -	$ 91,322	$ 91,322
Financial assets at fair value through other comprehensive income
Equity securities	3,080,574	-	100,000	3,180,574
Debt instruments	98,175	-	-	98,175
Total	$3,178,749	$ -	$ 191,322	$3,370,071
Liabilities:
Recurring fair value measurements
Financial liabilities at fair value through profit or loss
Derivative instruments	$ -	$ 24,673	$ -	$ 24,673
September 30, 2024	Level 1	Level 2	Level 3	Total
Assets:
Recurring fair value measurements
Financial assets at fair value through profit or loss	$ -	$ 18,723	$ -	$ 18,723
Financial assets at fair value through other comprehensive income
Equity securities	$2,719,806	$ -	$ 100,000	$2,819,806
Debt instruments	93,930	-	-	93,930
Total	$2,813,736	$ 18,723	$ 100,000	$2,932,459
Liabilities:
Recurring fair value measurements
Financial liabilities at fair value through profit or loss
Derivative instruments	$ -	$ 3	$ -	$ 3

(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 nine months ended September 30, 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 nine months ended September 30, 2025 and 2024:

	2025	2024
	Equity instrument	Equity instrument
At January 1	$ 191,322	$ 50,000
Acquired during the period	97,440	50,000
Effect of exchange rate	( 12,063)	-
At September 30	$ 276,699	$ 100,000

F. For the nine months ended September 30, 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 September 30, 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	176,699	Market comparable companies	Price-to-book ratio multiple, discount for lack of marketability	Not applicable	The higher the multiple, the higher the fair value; the higher the discount for lack of marketability, the lower the fair value
	Fair value at December 31, 2024	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
Non-derivative equity instrument
Venture capital shares	$ 100,000	Net asset value	Not applicable	Not applicable	Not applicable
Hybrid instruments
Convertible promissory note	91,322	Market comparable companies	Price-to-book ratio multiple, discount for lack of marketability	Not applicable	The higher the multiple, the higher the fair value; the higher the discount for lack of marketability, the lower the fair value
	Fair value at September 30, 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

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.

SEGMENT INFORMATION

(1) General information

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

(2) Segment information

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

	Nine months ended September 30, 2025
	Single operating segment	Reconciliation and elimination	Total
Reportable segment income
Revenue from external customers	$ 2,760,275	$ -	$ 2,760,275
Total	$ 2,760,275	$ -	$ 2,760,275
Reportable segment profit	$ 509,328	$ -	$ 509,328
Segment profit, including:
Interest income	$ 45,359	$ -	$ 45,359
Depreciation and amortization	$ 39,475	$ -	$ 39,475
Share of profit of associates and joint ventures accounted for using equity method	$ 5,608	$ -	$ 5,608
Income tax expense	$ 106,730	$ -	$ 106,730

~65~

Nine months ended September 30, 2024

	Single operating segment	Reconciliation and elimination	Total
Reportable segment income
Revenue from external customers	$ 3,003,929	$ -	$ 3,003,929
Total	$ 3,003,929	$ -	$ 3,003,929
Reportable segment profit	$ 443,425	$ -	$ 443,425
Segment profit, including:
Interest income	$ 25,540	$ -	$ 25,540
Depreciation and amortization	$ 45,218	$ -	$ 45,218
Share of profit of associates and joint ventures accounted for using equity method	$ 5,182	$ -	$ 5,182
Income tax expense	$ 143,571	$ -	$ 143,571

(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:

	Nine months ended September 30,
	2025	2024
Reportable segment income	$ 509,328	$ 443,425
Income before tax from continuing operations	$ 509,328	$ 443,425
Reportable segment assets	$ 10,645,231	$ 8,535,586
Total assets	$ 10,645,231	$ 8,535,586

Creative Sensor Inc. and Subsidiaries

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

Nine months ended September 30, 2025

Table 1

Securities held by	Marketable securities categories (Note 1)	Marketable securities	Relationship with the securities issuer	General ledger account	Number of shares (in thousands)	September 30, 2025			Footnote
						Book value (Note 2)	Ownership (%)	Fair value
The Company	Convertible promising note	Convertible promissory note-eJoule Inc.	-	Fair value through profit or loss	-	$ 176,699	-	$ 176,699
The Company	Stock	TECO ELECTRIC & MACHINERY CO., LTD.	-	Non-current financial assets at fair value through other comprehensive income	46,987	$ 4,468,463	2.20%	$ 4,468,463	Note 3
"	"	Koryo Electronics Co., Ltd.	The Company's key management	"	9,882	433,327	19.07%	433,327
"	"	MUTUALPAK	-	"	39	-	0.40%	-
"	"	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	60,248	-	60,248
						$ 5,062,038		$ 5,062,038

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

Nine months ended September 30, 2025

Expressed in thousands of NTD

(Except as otherwise indicated)

Table 2

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	2,293,414	99.00%	120 days after monthly billing	$	-	- ($	1,154,304)	98.86%
Nanchang Creative Sensor Technology Co., Ltd.	Koryo Electronics Co., Ltd.	The Company's key management	"	356,388	19.92%	120 days after monthly billing	-	-	(	192,974)	29.24%

Creative Sensor Inc. and Subsidiaries
Receivables from related parties reaching NTS100 million or 20% of paid-in capital or more
Nine months ended September 30, 2025

Table 3
Expressed in thousands of NTD
(Except as otherwise indicated)

Creditor	Counterparty	Relationship with the counterparty	Balance as at September 30, 2025	Turnover rate	Overdue receivables		Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount	Action taken
Nanchang Creative Sensor Technology Co., Ltd.	The Company	Parent company	$ 1,154,304	2.78	$ -	-	$ 245,248	$ -

Table 3

Creative Sensor Inc. and Subsidiaries
Material inter-company transactions during the reporting period
Nine months ended September 30, 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)
				General ledger account	Amount	Transaction terms
0	The Company	Nanchang Creative Sensor Technology Co., Ltd.	1	Accounts payable	$ 1,154,304	120 days after monthly billing	10.84%	-
"	"	"	"	Purchases	2,293,414	"	83.09%	-
1	Nanchang Creative Sensor Technology Co., Ltd.	The Company	2	Accounts payable	26,757	60 days after monthly billing	0.25%	-

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

Nine months ended September 30, 2025

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

				Initial investment amount		Shares held as at September 30, 2025
Investor	Investee	Location	Main business activities	Balance as at September 30, 2025	Balance as at December 31, 2024	Number of shares	Ownership (%)	Book value	Net profit of the investee for the nine months ended September 30, 2025	Investment income (loss) recognized by the Company for the nine months ended September 30, 2025 (Note)	Footnote
The Company	Creative Sensor Inc.	British Virgin Islands	Holding company	$ 583,416	$ 583,416	15,414,994	100	$ 1,631,935	$ 175,578	$ 175,578	Subsidiary
The Company	Creative Sensor (USA) Co.	U.S.A.	Research and development of new product	3,169	3,169	100,000	100	6,881	59	59	Subsidiary
The Company	Sensorem Photonics India Private Limited	India	Collection of marketing information	2,808	-	7,280,000	91	1,991	(636)	(579)	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	775,634	56,859	(4,315)	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	388,141	33,244	9,923	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	1,294,529	199,157	-	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

Nine months ended September 30, 2025

Table 6
A. Information on reinvestment in Mainland Area
Expressed in thousands of NTD
(Except as otherwise indicated)

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 September 30, 2025 (Note 3)	Net income of investee for the nine months ended September 30, 2025	Ownership held by the Company (direct or indirect)	Investment income recognized by the Company for the nine months ended September 30, 2025 (Note 4)	Book value of investments in Mainland China as of September 30, 2025	Accumulated amount of investment income remitted back to Taiwan as of September 30, 2025	Footnote
Wuxi Creative Sensor Technology Co., Ltd.	Image Sensor	$ -	Note 1	$ 26,677	$ -	$ 26,677	$ -	$ 3,387	100	$ 3,387	$ -	$ 787,376	Note 5
Nanchang Creative Sensor Technology Co., Ltd.	Image Sensor	967,016	Note 1	422,748	-	-	422,748	95,802	100	95,802	1,309,406	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$915 thousand and RMB$0 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 September 30, 2025 in the original currency was US$915 thousand and US$0 thousand, respectively. Nanchang Creative Sensor Technology Co., Ltd.'s accumulated amount of remittance from Taiwan to Mainland China as of January 1 and September 30, 2025 in the original currency was both US$14,500 thousand.
Note 4: Investment income recognized for the nine months ended September 30,2025 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 September 30, 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. The liquidation of Wuxi Creative Sensor Technology Co., Led. was completed in June 2025.
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 September 30, 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 September 30,	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs	Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA
The Company	$ 442,468	$ 442,468	$ 4,918,818

Note 1: Accumulated amount of remittance from Taiwan to Mainland China as of September 30, 2025 in original currency amounted to US$14,500 thousand.
Note 2: Investment amount in the original currency approved by the Investment Commission of the Ministry of Economic Affairs (MOEA) amounted to US$14,500 thousand. Furthermore, as of September 30, 2025, the Investment Commission approved that the investment income from reinvestment business in Mainland China remitted back to Taiwan was US$15,121 thousand which could be deducted from the accumulated investment amounts in Mainland China.

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CSI — Interim / Quarterly Report 2025

52732_rns_2026-04-24_70dcb93e-8f98-4b2a-9a03-853d3a0f5991.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

NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

CREATIVE SENSOR INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

CREATIVE SENSOR INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NINE MONTHS ENDED SEPTEMBER 30, 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

(4) Income tax

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

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

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

(15) Capital stock

(20) Interest income

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

11. SIGNIFICANT SUBSEQUENT EVENTS AFTER THE BALANCE SHEET DATE

12. OTHERS

(1) Capital management

(2) Financial instruments

A. Financial instruments by category

Price risk

Cash flow and fair value interest rate risk

(b) Credit risk

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

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CSI Interim / Quarterly Report 2025