Stock Code: 2415

CX Technology Corporation

Parent-only Financial Report and Independent Auditors’ Report

2025 and 2024

Address: 20F., No. 179, Liaoning St., Zhongshan Dist., Taipei City

Telephone No.: (02) 23898686

§Table of Contents§

	ITEM	PAGE	NO. OF NOTES TO THE FINANCIAL REPORT
I.	Cover	1	-
II.	Table of Contents	2	-
III.	Independent Auditors’ Report	3~7	-
IV.	Parent-only Balance Sheet	8	-
V.	Parent-only Statement of Comprehensive Income	9~10	-
VI.	Parent-only Statement of Changes in Equity	11	-
VII.	Parent-only Statement of Cash Flows	12~13	-
VIII.	Notes to the Parent-only Financial Report
	(I) History of the Company	14	I
	(II) Date and procedures of approval of the financial report	14	II
	(III) Application of new and amended standards and interpretations	14~17	III
	(IV) Summary of material accounting policies	17~27	IV
	(V) Main sources of uncertainty of material accounting judgments, estimates and assumptions	27	V
	(VI) Description of major accounts	27~53	VI~XXVI
	(VII) Related party transactions	53~55	XXVII
	(VIII) Pledged and mortgaged assets	55	XXVIII
	(IX) Material contingent liabilities and unrecognized contractual commitments	55	XXIX
	(X) Material disaster losses	-	-
	(XI) Material subsequent events	56	XXX
	(XII) Others	56~57	XXXI
	(XIII) Note disclosures
	1. Information of material transactions	57, 59~63	XXXII
	2. Information of investee companies	57, 64~65	XXXII
	3. Information of investments in Mainland China	57, 66~67	XXXII
	(XIV) Segment information	-	-
IX.	Statements of Major Accounting Items	68~77	-

Independent Auditors' Report

To CX Technology Corporation:

Audit Opinions

We audited the parent-only balance sheet of CX Technology Corporation as of December 31, 2025 and 2024, and its parent-only statement of comprehensive income, parent-only statement of changes in equity and parent-only statement of cash flows for the periods from January 1 to December 31, 2025 and 2024, and the notes to the parent-only financial report (including the summary of material accounting policies).

In our opinion, based on our audit results and other independent auditors' reports (see the Other Matters paragraph), with respect to all material aspects, the foregoing parent-only financial report was prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and thus provided a fair presentation of the parent-only financial positions of CX Technology Corporation on December 31, 2025 and 2024 and the parent-only financial performance and cash flows for the periods from January 1 to December 31, 2025 and 2024.

Basis for Audit Opinions

We conducted the audit in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards. Our responsibilities under such standards are further described in the paragraph of Responsibilities of CPAs for the Audit of the Parent-only Financial Report. As CPAs who are subject to independence requirements, we have, in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, remained independent from CX Technology Corporation and fulfilled all other responsibilities under the requirements. According to our audit results and other independent auditors' reports, we believe that we have acquired sufficient and appropriate audit evidence as the basis of our audit opinions.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in the audit of the parent-only financial report of CX Technology Corporation for 2025. Such matters were addressed in the context of our audit of the parent-only financial report as a whole and, in forming our opinions thereon, we have not provided any separate opinion on these matters.

The key audit matters for CX Technology Corporation’s parent-only financial report for 2025 are described as follows:

Recognition of sales revenue – Authenticity of recognized sales revenue from certain customers

CX Technology Corporation has been dedicated to expanding the market for magnetic components for speakers. The relevant consolidated sales revenue for 2025 decreased slightly compared to the same period last year, but sales revenue from some specific customers showed a growth trend, and the amount of sales revenue is significant, having a significant impact on the financial performance of CX Technology Corporation. Therefore, the authenticity of sales revenue recognition from these specific customers is considered a key audit matter. See Notes 4 and 21 to the parent-only financial report for the accounting policies and information disclosures related to the recognition of sales revenue.

We implemented the following main audit procedures for such matter:

Understanding, assessing and testing the effectiveness of the design and implementation of the internal control system for the sales revenue recognition.
Randomly reviewing the order or shipment receipts, invoices or commercial invoices for the customers and verifying the authenticity of sales revenue recognition.
Randomly reviewing the collection of payments from the customers to verify that the sales revenue can be traced back to them.
Reviewing subsequent sales returns and discounts for abnormalities.

Other Matters

Included in the foregoing parent-only financial report for 2025 and 2024, the financial reports of PHU HUNG SECURITIES CORPORATION, the investee companies of CX Technology (Cayman) Corporation, an investee company accounted for using the equity method, were audited by other CPAs. Therefore, our opinions expressed on the foregoing parent-only financial report with respect to the amounts in the financial reports of PHU HUNG SECURITIES CORPORATION is based on the CPAs’ reports. The aforesaid investee companies’ investments accounted for using the equity method as of December 31, 2025 and 2024, audited by the CPAs,

were NTD 1,169,953 thousand and NTD 1,212,333 thousand, respectively, accounting for 32% and 34% of CX Technology Corporation’s total assets; their share of relevant comprehensive income recognized using the equity method for the periods from January 1 to December 31, 2025 and 2024 was NTD 47,195 thousand and NTD (513) thousand, respectively, accounting for 109% and 0% of CX Technology Corporation’s total comprehensive income.

Responsibilities of the Management and Governance Units for the Parent-only Financial Statements

The management was responsible for preparing the parent-only financial report with fair presentation in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and maintaining necessary internal control related to the preparation of the parent-only financial report to ensure that the parent-only financial report was free of material misstatements due to fraud or error.

In preparing the parent-only financial report, the management was also responsible for evaluating CX Technology Corporation’s going concern ability, disclosure of relevant matters and use of the going concern basis of accounting, unless the management intended to liquidate or cease the operation of CX Technology Corporation or there were no other actual feasible solutions other than liquidation or cessation of operation.

The governance units of CX Technology Corporation (including the Audit Committee) were responsible for supervising the financial reporting process.

Responsibilities of CPAs for the Audit of the Parent-only Financial Statements

The purpose of our audit of the parent-only financial report was to obtain reasonable assurance about whether the parent-only financial report was free of material misstatements due to fraud or error, with an audit report issued thereafter. Reasonable assurance means a high degree of assurance. However, there was no guarantee that any material misstatement contained in the parent-only financial report could be discovered during the audit conducted in accordance with the auditing standards. A misstatement may be due to fraud or error. A misstatement was deemed material if the individual or aggregate amount misstated was reasonably expected to affect economic decisions made by users of the parent-only financial report.

We relied on our professional judgment and maintained our professional skepticism during the audit conducted pursuant to the auditing standards. We also performed the following tasks:

Identifying and assessing the risk of misstatements in the parent-only financial report due to fraud or error; designing and implementing appropriate measures in response to the assessed risk; and acquiring sufficient and appropriate audit evidence as the basis of our audit opinions. Since fraud may involve collusion, forgery, intentional omission, fraudulent statement or
5 -

violation of internal control, the risk of not detecting a material misstatement resulting from fraud is higher than that resulting from error.

Acquiring necessary understanding of the internal control related to the audit to design audit procedures appropriate for the current circumstances, provided that the purpose of the foregoing was not to express opinions regarding the effectiveness of the internal control of CX Technology Corporation.
Assessing the appropriateness of the accounting policies adopted by the management and the reasonableness of the accounting estimates and relevant disclosures made by the management.
Drawing a conclusion about the appropriateness of the management’s use of the going concern basis of accounting and whether there was material uncertainty in an event or circumstance which might cast significant doubt about the ability of CX Technology Corporation to remain a going concern. If any material uncertainty is deemed to exist in such event or circumstance, we must provide a reminder in the audit report for the users of the parent-only financial report to pay attention to the relevant disclosures therein, or revise our audit opinions when any such disclosure was inappropriate. Our conclusion was based on the audit evidence obtained as of the date of this audit report. However, future events or circumstances could result in a situation where CX Technology Corporation is no longer able to remain a going concern.
Assessing the overall presentation, structure and contents of the parent-only financial report (including relevant notes) and whether the parent-only financial report provided a fair presentation of the relevant transactions and events.
Acquiring sufficient and appropriate audit evidence of the financial information of the entities forming CX Technology Corporation to provide opinions regarding the parent-only financial report. We are responsible for guidance, supervision and implementation in relation to CX Technology Corporation’s audit cases and for the formation of audit opinions for CX Technology Corporation.

The matters for which we communicated with the governance units include the planned scope and time of audit, and our material audit findings (including significant internal control deficiencies identified during the audit).

We also provided a declaration to the governance units stating that as CPAs who are subject to independence requirements, we have complied with the independence requirements in the Norm of Professional Ethics for Certified Public Accountants of the Republic of China and communicated with the governance units regarding all relationships and other matters (including relevant safeguard measures) that were deemed likely to affect the independence of CPAs.

The key audit matters in the audit of the parent-only financial report of CX Technology Corporation for 2025 were determined by us from the matters regarding which we communicated with the governance units. We shall specify such matters in the audit report, except where public disclosure of certain matters is prohibited by applicable laws or regulations or where, under very exceptional circumstances, we have decided not to communicate certain matters in the audit report due to the reasonable expectation that any negative effect arising from such communication would be greater than the public interest enhanced.

Deloitte Taiwan
CPA Kathy Huang

CPA Hugh C. Chang

No. of Approval Document from the Securities and Futures Commission
Tai-Cai-Zheng-Liu-Zi No. 0920123784

No. of Approval Document from the Financial Supervisory Commission
Jin-Guan-Zheng-Shen-Zi No. 1120349008

March 12, 2026

CX Technology Corporation

Parent-only Balance Sheet

December 31, 2025 and 2024

Unit: NTD thousand

Code	Asset	December 31, 2025		December 31, 2024
		Amount	%	Amount	%
Current assets
1100	Cash (Notes 4 and 6)	$ 141,361	4	$ 127,765	3
1170	Accounts receivable (Notes 4, 5, 7, 8, 21 and 28)	141,507	4	139,244	4
1200	Other receivables (Notes 4 and 8)	602	-	99	-
1210	Other receivables – related parties (Notes 4, 8 and 27)	111,383	3	44,937	1
1220	Current income tax assets (Notes 4 and 23)	5,454	-	-	-
1410	Prepayments	6,644	-	6,238	-
1470	Other current assets (Note 14)	1,153	-	19,863	1
11XX	Total current assets	408,104	11	338,146	9
Non-current assets
1535	Financial assets measured at amortized cost – non-current (Notes 4, 5, 7, 8, and 28)	120,000	4	120,000	4
1550	Investments accounted for using the equity method (Notes 4 and 10)	2,998,475	83	3,067,091	85
1600	Property, plant and equipment (Notes 4 and 11)	8,543	-	9,218	-
1755	Right-of-use assets (Notes 4 and 12)	6,024	-	11,063	-
1780	Intangible assets (Notes 4 and 13)	1,639	-	120	-
1840	Deferred income tax assets (Notes 4 and 23)	67,832	2	56,334	2
1975	Net defined benefit assets – non-current (Notes 4 and 19)	1,000	-	955	-
1920	Deposits paid	24	-	24	-
1990	Other non-current assets	878	-	90	-
15XX	Total non-current assets	3,204,415	89	3,264,895	91
1XXX	Total assets	$ 3,612,519	100	$ 3,603,041	100
Code	Liabilities and equity
Current liabilities
2100	Short-term loans (Notes 4, 15 and 28)	$ 580,000	16	$ 410,000	11
2110	Short-term notes payable (Note 15)	49,902	1	139,918	4
2170	Accounts payable (Note 16)	-	-	11	-
2180	Accounts payable – related parties (Notes 16 and 27)	419,953	12	361,031	10
2219	Other payables (Note 17)	44,058	1	28,108	1
2220	Other payables– related parties (Note 27)	1,100	-	11	-
2230	Current income tax liabilities (Notes 4 and 23)	20,846	1	22,480	1
2280	Lease liabilities – current (Notes 4 and 12)	4,887	-	4,606	-
2320	Long-term liabilities due in one year (Notes 4, 15 and 28)	92,857	3	92,524	2
2365	Refund liabilities – current (Notes 4 and 18)	32,989	1	33,595	1
2399	Other current liabilities	4,035	-	7,069	-
21XX	Total current liabilities	1,250,627	35	1,099,353	30
Non-current liabilities
2540	Long-term loans (Notes 4, 15 and 28)	620,833	17	713,690	20
2570	Deferred income tax liabilities (Notes 4 and 23)	46,650	1	25,475	1
2580	Lease liabilities – non-current (Notes 4 and 12)	1,234	-	6,523	-
25XX	Total non-current liabilities	668,717	18	745,688	21
2XXX	Total liabilities	1,919,344	53	1,845,041	51
Equity (Notes 4, 10, 19, 20 and 23)
Share capital
3110	Common shares	900,000	25	900,000	25
3200	Capital reserves	213,854	6	213,854	6
Retained earnings
3310	Legal reserves	299,190	8	288,862	8
3320	Special reserves	-	-	36,267	1
3350	Undistributed earnings	319,468	9	239,936	7
3300	Total retained earnings	618,658	17	565,065	16
3400	Other equity	( 39,337)	( 1)	79,081	2
3XXX	Total equity	1,693,175	47	1,758,000	49
Total liabilities and equity		$ 3,612,519	100	$ 3,603,041	100

The notes attached hereto constitute part of the parent-only financial report.
(See the audit report issued by Deloitte Taiwan on March 12, 2026)

Chairman: Albert Ting

General Manager: Johnson Hsiao

Chief Accountant: Kevin Chen

CX Technology Corporation
Parent-only Statement of Comprehensive Income
January 1 to December 31, 2025 and 2024
Unit: NTD thousand; NTD for earnings per share

Code		2025		2024
		Amount	%	Amount	%
4100	Net sales revenue (Notes 4, 18 and 21)	$ 1,130,313	100	$ 1,157,823	100
5110	Cost of sales (Notes 9 and 27)	909,828	80	930,702	80
5900	Gross operating profit	220,485	20	227,121	20
	Operating expenses (Notes 4, 8, 11, 12, 13, 19 and 22)
6100	Sales expense	23,823	2	23,139	2
6200	Management expense	62,426	6	58,823	5
6450	Expected credit impairment loss	228	-	307	-
6000	Total operating expenses	86,477	8	82,269	7
6510	Other net revenues, gains, expenses and losses (Notes 22 and 27)	17,927	2	12,818	1
6900	Net operating profits	151,935	14	157,670	14
	Non-operating revenues and expenses (Notes 4, 10 and 22)
7100	Interest revenue	2,525	-	1,557	-
7020	Other gains and losses	606	-	5,215	-
7050	Financial cost	( 29,895 )	( 3 )	( 24,059 )	( 2 )
7070	Share of profit (loss) of subsidiaries accounted for using the equity method	73,069	7	( 12,145 )	( 1 )
7000	Total non-operating revenues and expenses	46,305	4	( 29,432 )	( 3 )
7900	Pre-tax profit	198,240	18	128,238	11
7950	Income tax expenses (Notes 4 and 23)	35,230	3	25,481	2
8200	Net profit in the current year	163,010	15	102,757	9

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Code		2025		2024
		Amount	%	Amount	%
	Other comprehensive income (Notes 4, 10, 19 and 23)
8310	Items not reclassified as profit or loss
8311	Remeasurement of defined benefits plans	$ 30	-	$ 655	-
8326	Share of other comprehensive income of subsidiaries accounted for using the equity method - Unrealized equity instrument profit or loss measured at fair value through other comprehensive income	40	-	9,747	1
8349	Income tax related to items not reclassified	( 1,456 )	-	( 2,080 )	-
		( 1,386 )	-	8,322	1
8360	Items likely to be subsequently reclassified as profit or loss
8361	Exchange differences on translation of financial statements of foreign operations	( 145,827 )	( 13 )	133,679	11
8371	Share of other comprehensive income of subsidiaries accounted for using the equity method - exchange difference in the financial statement translation of the foreign operation	( 1,787 )	-	607	-
8399	Income tax related to items likely to be reclassified	29,165	2	( 26,736 )	( 2 )
		( 118,449 )	( 11 )	107,550	9
8300	Other after-tax comprehensive income (net) in the current year	( 119,835 )	( 11 )	115,872	10
8500	Total comprehensive income in the current year	$ 43,175	4	$ 218,629	19
	EPS (Note 24)
9750	Basic	$ 1.81		$ 1.14
9850	Diluted	$ 1.81		$ 1.14

The notes attached hereto constitute part of the parent-only financial report.

(See the Independent Auditors' Report issued by Deloitte Taiwan on March 12, 2026)

Chairman: Albert Ting

General Manager: Johnson Hsiao

Chief Accountant: Kevin Chen

CX Technology Corporation

Parent-only Statement of Changes in Equity

January 1 to December 31, 2025 and 2024

Unit: NTD thousand unless otherwise specified

Code	Balance on January 1, 2024	Common shares (Notes 4 and 20)		Capital reserves	Retained earnings (Notes 4, 19 and 20)			Other equity items (Notes 4, 10 and 20)		Total equity
		Number of shares (thousand shares)	Amount	(Notes 4 and 20)	Legal reserves	Special reserves	Undistributed earnings	Exchange differences on translation of financial statements of foreign operations	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income
A1	Balance on January 1, 2024	90,000	$ 900,000	$ 212,600	$ 288,862	$ 11,088	$ 161,834	( $36,267 )	$ -	$ 1,538,117
B3	Allocation and distribution of earnings in 2023
Special reserves set aside	-	-	-	-	25,179	( 25,179 )	-	-	-
C7	Other capital reserve changes:
Changes in associates & joint ventures accounted for using equity method	-	-	1,254	-	-	-	-	-	1,254
D1	Net profit in 2024	-	-	-	-	-	102,757	-	-	102,757
D3	Other after-tax comprehensive income in 2024	-	-	-	-	-	524	107,550	7,798	115,872
D5	Total comprehensive income in 2024	-	-	-	-	-	103,281	107,550	7,798	218,629
Z1	Balance on December 31, 2024	90,000	900,000	213,854	288,862	36,267	239,936	71,283	7,798	1,758,000
B1	Allocation and distribution of earnings in 2024:
Legal reserves set aside	-	-	-	10,328	-	( 10,328 )	-	-	-
B5	Cash dividends to the Company's shareholders	-	-	-	-	-	( 108,000 )	-	-	( 108,000 )
B17	Reversed special reserves	-	-	-	-	( 36,267 )	36,267	-	-	-
D1	Net profit in 2025	-	-	-	-	-	163,010	-	-	163,010
D3	Other after-tax comprehensive income in 2025	-	-	-	-	-	( 1,417 )	( 118,449 )	31	( 119,835 )
D5	Total comprehensive income in 2025	-	-	-	-	-	161,593	( 118,449 )	31	43,175
Z1	Balance on December 31, 2025	90,000	$ 900,000	$ 213,854	$ 299,190	$ -	$ 319,468	( $ 47,166 )	$ 7,829	$ 1,693,175

The notes attached hereto constitute part of the parent-only financial report.
(See the Independent Auditors' Report issued by Deloitte Taiwan on March 12, 2026)

Chairman: Albert Ting

General Manager: Johnson Hsiao

Chief Accountant: Kevin Chen

CX Technology Corporation
Parent-only Statement of Cash Flows
January 1 to December 31, 2025 and 2024

Unit: NTD thousand

Code	Cash flow from operating activities	2025	2024
A10000	Pre-tax net profit in the current year	$ 198,240	$ 128,238
A20010	Gains, expenses and losses
A20100	Depreciation expense	6,196	6,066
A20200	Amortization expense	572	2,255
A20300	Expected credit impairment loss	228	307
A20900	Financial cost	29,895	24,059
A21200	Interest revenue	( 2,525 )	( 1,557 )
A22400	Share of profit (loss) of subsidiaries accounted for using the equity method	( 73,069 )	12,145
A22800	Loss (gain) from disposal of intangible assets	5	( 4,673 )
A23900	Unrealized gains with subsidiaries	21,979	24,828
A24000	Realized gains with subsidiaries	( 24,828 )	( 23,025 )
A24100	Net foreign currency exchange (gain) loss	( 946 )	1,456
A29900	Refund liabilities	340	8,684
A30000	Net changes in operating assets and liabilities
A31150	Accounts receivable	( 2,491 )	35,823
A31180	Other receivables	( 503 )	( 6 )
A31190	Other receivables – related parties	( 66,446 )	15,202
A31230	Prepayments	( 406 )	( 844 )
A31240	Other current assets	18,709	( 18,616 )
A32150	Accounts payable	( 11 )	7
A32160	Accounts payable – related parties	58,922	3,674
A32180	Other payables	16,329	3,290
A32190	Other payables - related parties	1,089	11
A32230	Other current liabilities	( 3,034 )	3,801
A32240	Net defined benefit assets	( 15 )	( 4 )
A33000	Cash from operation	178,230	221,121
A33100	Interest received	2,525	1,557
A33300	Interest paid	( 30,274 )	( 23,483 )
A33500	Income tax paid	( 4,931 )	( 42,918 )
AAAA	Net cash inflow from operating activities	145,550	156,277

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Code		2025	2024
	Cash flow from investing activities
B01800	Acquisition of long-term equity investments accounted for using the equity method	($ 3,041)	($ 437,744)
B02700	Acquisition of property, plant and equipment	( 82)	-
B04500	Acquisition of intangible assets	( 1,714)	-
B06700	Increase in other non-current assets	( 1,170)	-
BBBB	Net cash outflow from investing activities	( 6,007)	( 437,744)
	Cash flow from financing activities
C00200	Increase in short-term loans	80,000	90,000
C00500	(Decrease) Increase in short-term notes payable	( 90,016)	50,019
C01600	Borrowing of long-term loans	1,142,857	1,400,000
C01700	Repayment of long-term loans	( 1,145,381)	( 1,223,857)
C04020	Repayment of principal of lease liabilities	( 5,407)	( 5,232)
C04500	Distribution of cash dividends	( 108,000)	-
CCCC	Net cash (inflow) outflow from fundraising activities	( 125,947)	310,930
EEEE	Increase in cash	13,596	29,463
E00100	Cash balance at the beginning of the year	127,765	98,302
E00200	Cash balance at the end of the year	$ 141,361	$ 127,765

The notes attached hereto constitute part of the parent-only financial report.

(See the Independent Auditors' Report issued by Deloitte Taiwan on March 12, 2026)

Chairman: Albert Ting

General Manager: Johnson Hsiao

Chief Accountant: Kevin Chen

CX Technology Corporation
Notes to the Parent-only Financial Report
January 1 to December 31, 2025 and 2024
(All amounts are in NTD thousand unless otherwise specified)

I. History of the Company

CX Technology Corporation (hereinafter referred to as “the Company”) is mainly engaged in the production and sale of various metalworks, electronic product parts/components, and plastic injection products as well as running and investing in relevant businesses. The Company’s stock was listed over the counter on the Taipei Exchange on January 13, 1998, and switched to exchange trading and officially listed on the Taiwan Stock Exchange on September 11, 2000.

Since 2007, the Company has focused on the R&D of a variety of metalworks and plastic injection products and the expansion of the business due to an adjustment to the operating structure. In order to increase operating efficiency, after receiving an order, the Company commissions a subsidiary overseas to process and produce finished products for sale.

The parent-only financial report is presented in NTD, the Company’s functional currency.

II. Date and procedures of approval of the financial report

These parent company only financial statements have been passed by the Board of Directors on March 12, 2026.

III. Application of new and amended standards and interpretations

(I) The International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), interpretations (of IFRIC) and pronouncements of interpretation (of SIC) (hereinafter collectively referred to as “IFRSs”), which have been approved and published by the Financial Supervisory Commission (hereinafter referred to as the “FSC”), have been applied for the first time.

Application of the IFRSs which have been approved and published by the FSC is unlikely to cause any material change to the Company’s accounting policies.

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(II) FSC-approved IFRSs applicable in 2026

New/Amended/Revised standards and interpretations	Effective date as published by IASB
Amendment to IFRS 9 and IFRS 7 “Amendment to Classification and Measurement of Financial Assets”	January 1, 2026
Amendment to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”	January 1, 2026
“Annual Improvements to IFRS - Volume 11”	January 1, 2026
IFRS 17 Insurance Contracts (including the amendments of 2020 and 2021)	January 1, 2023

As of the date of approval and publication of the parent-only financial report, the Company has assessed that the above amendments to standards are unlikely to have any significant effect on the financial position and performance.

(III) IFRSs published by the IASB but not yet approved and published by the FSC

New/Amended/Revised standards and interpretations	Effective date as published by IASB (Note 1)
Amendments to IFRS 10 and IAS 28 – “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”	TBD
IFRS 18 “Presentation and Disclosure in Financial Statements”	January 1, 2027 (Note 2)
IFRS19 “Subsidiaries without Public Accountability: Disclosures” (including amendments as of 2025)	January 1, 2027
Amendments to IAS 21 "Translation to a Hyperinflationary Presentation Currency"	January 1, 2027

Note 1: Unless otherwise specified, the new/amended/revised standards or interpretations above shall come into effect during annual reporting periods beginning on or after the respective effective date.

Note 2: On September 25, 2025, the Financial Supervisory Commission announced that IFRS 18 became effective for Taiwanese companies on January 1, 2028, and companies may choose to apply it earlier once approved by the Financial Supervisory Commission.

IFRS 18 “Presentation and Disclosure in Financial Statements” and related amendments

IFRS 18 will replace IAS 1 "Expression of Financial Statements", and the main changes include:

The Company assessed whether it had specific major operating activities, such as investing in a specific type of asset and providing financing to customers, thereby dividing income and expenses in the income statement into operating, investing, financing, income tax, and discontinued operations categories.
The income statement shall be reported as operating income, pre-tax income before financing, and the sum and total of profit and loss.
Provide guidance on the consolidation and division of rules: The Company must identify the assets, liabilities, equity, income, expenses and cash flows arising from individual transactions or other matters, and classify and consolidate them based on the common characteristics, so that at least one of the items in the financial statements has a similar characteristic. Items with non-similarity characteristics in the main financial statements and notes shall be divided. The Company only marks "others" when informative marks cannot be found.
Increase the disclosure of performance measurement defined by the management: When the Company is engaged in public communication other than financial statement preparation, and when it communicates with financial statement users about the management's view of the Company's overall financial performance, it shall disclose relevant information about performance measurement defined by the management in a single note to the financial statements, including the description of the measurement, how to calculate, the adjustment of the sum or total of the items specified in IFRS accounting standards, and the income tax and non-controlling interests impact of the relevant adjustment items.

In addition, the following amendments to IAS 7 "Statement of Cash Flows" have been made:

When a Company prepares cash flows from operating activities using the indirect method, operating income is the starting point for adjustment.
The interest received by the Company is classified as investment activities, and interest paid and dividends paid are classified as financing activities. If a Company is assessed to have specific key operating activities, it must consider the types of dividend revenue, interest revenue, and interest expenses presented in the income statement to determine the appropriate classification of dividend collection, interest collection, and interest payment in the statement of cash flows. However, each of these cash flows can only be classified within a single activity in the statement of cash flows.
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In addition to the effects above, as of the date of approval and publication of the parent-only financial report, the Company’s assessment of other effects of the above amendments to these standards and interpretations on the financial position and performance is in progress. The relevant effects will be disclosed after the assessment is completed.

IV. Summary of material accounting policies

(I) Statement of compliance

The parent-only financial report was prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

(II) Basis of preparation

Except for net defined benefit assets recognized at the present value of defined benefit obligations less the fair value of plan assets, the parent-only financial report was prepared on the basis of historical cost.

For fair value measurements, the inputs are categorized into Level 1, 2, and 3 based on their observability and significance:

Level 1 inputs: Quoted prices in active markets for identical assets or liabilities accessible on the measurement date (unadjusted).
Level 2 inputs: Inputs other than quoted prices within Level 1 that are observable for the asset or liability, either directly (i.e. the price) or indirectly (i.e. derived from the price).
Level 3 inputs: Unobservable inputs for the asset or liability.

In preparing the parent-only financial report, the Company has accounted for investment in subsidiaries using the equity method. To ensure the profit/loss, other comprehensive income and equity for the current year in the parent-only financial report are identical to those attributable to the owners of the Company in the consolidated financial statements, the differences in accounting treatments on parent-only and consolidated bases are presented as adjustments to “investments accounted for using the equity method,” “share of profits or losses of subsidiaries accounted for using the equity method,” “share of other comprehensive income of subsidiaries accounted for using the equity method” and other related equity items.

(III) Criteria for classification of assets and liabilities as current and non-current

Current assets include:

assets held primarily for the purpose of trading;
assets expected to be realized within 12 months after the balance sheet date; and
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cash and cash equivalents (excluding those restricted to be used for exchange or settlement of liabilities within 12 months after the balance sheet date).

Current liabilities include:

liabilities held primarily for the purpose of trading;
liabilities due for settlement within 12 months after the balance sheet date; and
liabilities whose settlement cannot be unconditionally deferred for at least 12 months after the balance sheet date.

Assets or liabilities other than those classified above as current are classified as non-current.

(IV) Foreign currency

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

Foreign currency monetary items are translated at the closing rate on each balance sheet date. Exchange differences arising from settlement or translation of monetary items are recognized in profit or loss in the current period.

Foreign currency non-monetary items measured at fair value are translated at the exchange rate on the date when the fair values were determined, with the resulting exchange differences recognized in profit or loss of the period.

Foreign currency non-monetary items measured at historical cost are translated at the exchange rate on the transaction date without being retranslated.

In preparing the parent-only financial report, the assets and liabilities of foreign operations (including subsidiaries whose countries of operation are different from those of the Company or which use currencies different from that used by the Company) have been translated into NTD at the exchange rate on each balance sheet date. Revenue, gain, expense and loss items have been translated at the average exchange rate in the current period, and the resulting exchange differences have been recognized in other comprehensive income.

(V) Investment in subsidiaries

The Company accounts for investment in subsidiaries using the equity method.

The subsidiaries refer to entities over which the Company has control.

Under the equity method, the investment in subsidiaries is initially recognized at cost, and the amount of increase or decrease in the carrying amount of such investment after the date of acquisition depends on the Company's share of profits/losses and other

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comprehensive income in the subsidiaries and the profits received therefrom. Additionally, changes in the Company's share of other equity in the subsidiaries are recognized in proportion to the shareholding percentage.

For impairment assessment, the Company takes into account cash generating units as a whole based on financial reports and compares the recoverable amount and carrying amount of the investment. When the recoverable amount of the asset increases afterwards, the reversal of the impairment loss is recognized as profit, provided that the carrying amount of the asset after the reversal of the impairment loss does not exceed the asset's carrying amount less amortization under the circumstance that the impairment loss was not recognized. Impairment losses attributable to goodwill shall not be reversed in subsequent periods.

The unrealized profits or losses of the downstream transactions between the Company and subsidiaries are eliminated in the parent-only financial report. Profits or losses arising from the upstream and side-stream transactions between the Company and subsidiaries are recognized in the parent-only financial report only to the extent where such profits or losses do not involve the equity of the Company in the subsidiaries.

(VI) Property, plant and equipment

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

Each significant part of property, plant and equipment is separately accounted for in depreciation on a straight-line basis over its useful life. The Company reviews the estimated useful life, residual value, and method of depreciation at least at the end of each year and prospectively accounts for the effect of changes in accounting estimates.

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

(VII) Intangible assets

Separate acquisition

Intangible assets with a definite useful life acquired separately are initially measured at cost and subsequently measured at cost net of accumulated amortization and accumulated impairment losses. Intangible assets are amortized on a straight-line basis over their useful lives. The Company reviews

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their estimated useful lives, residual values and methods of amortization at least at the end of each year and prospectively accounts for the effect of changes in accounting estimates.

Derecognition

For derecognition of any intangible asset, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss in the current period.

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

The Company assesses whether there is any sign of possible impairment of property, plant and equipment, right-of-use assets, investment property and intangible assets on each balance sheet date. If there is any such sign, the recoverable amount of the assets is estimated. If the recoverable amount of an asset is not estimable, the Company estimates the recoverable amount of the cash generating unit of the asset.

The recoverable amount is the higher of the fair value less costs of sale and the value in use. When the recoverable amount of an asset or cash generating unit is less than its carrying amount, the carrying amount of the asset or cash generating unit is decreased to its recoverable amount, and the impairment loss is recognized in profit or loss.

When the impairment loss is reversed subsequently, the carrying amount of the asset or cash generating unit is increased to the revised recoverable amount, provided that the increased carrying amount does not exceed the carrying amount (less amortization or depreciation) of the asset or cash generating unit determined under the circumstance that the impairment loss of the asset or cash generating unit was not recognized in prior years. The reversal of impairment losses is recognized in profit or loss.

(IX) Financial instruments

Financial assets and financial liabilities are recognized in the parent-only balance sheet when the Company becomes a party to the financial instrument contract.

For the initial recognition of financial assets and financial liabilities, if the financial assets or financial liabilities are not measured at fair value through profit or loss, they are measured at fair value plus transaction costs directly attributable to the acquisition or issuance of the financial assets or financial liabilities. Transaction costs directly attributable to acquisition or issuance of the financial assets or financial

20 -

liabilities measured at fair value through profit or loss are immediately recognized in profit or loss.

Financial assets

The regular transactions of financial assets are recognized and derecognized based on the accounting on the transaction date.

(1) Type of measurements

The Company holds the following type of financial assets: Financial assets measured at amortized cost.

Financial assets measured at amortized cost

If the Company’s invested financial assets meet both of the following two conditions, they are classified as financial assets measured at amortized cost:

A. The financial assets have been held under an operating model for the purpose of holding these assets to collect contractual cash flows; and
B. The contractual terms of the financial assets generate cash flows on a specific date that are solely for the purpose of paying principal and interest.

After initial recognition, financial assets measured at amortized cost (including cash, accounts receivable measured at amortized cost, other receivables (including those from related parties), and guarantee deposits paid) are measured at the amortized cost equal to the total carrying amount determined using the effective interest method less any impairment loss. Any foreign currency exchange gain or loss is recognized in profit or loss.

The interest revenue is calculated as the effective interest rate times the total carrying amount of financial assets, except in the following two circumstances:

A. For any credit-impaired financial assets purchased or originated, the interest revenue is calculated as the credit-adjusted effective interest rate times the amortized cost of the financial assets.
B. For any financial assets which are not credit-impaired on purchase or origination but subsequently become credit-impaired, the interest revenue is calculated as the effective interest rate times the amortized cost of the financial assets in the reporting period after such credit impairment.

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A credit-impaired financial asset means that the issuer or debtor has incurred significant financial difficulties or defaulted, that the debtor is likely to file for bankruptcy or other financial reorganization, or that the active market of the financial asset has disappeared due to financial difficulties.

(2) Impairment of financial assets

The Company assesses impairment losses on financial assets (including accounts receivable) measured at amortized cost based on expected credit losses on each balance sheet date.

Loss allowance for accounts receivable is recognized based on lifetime expected credit losses. For other financial assets, they are first assessed to see if the credit risk significantly increases after initial recognition. If there is no significant increase, the loss allowance is recognized based on 12-month expected credit losses. If there is a significant increase, the loss allowance is recognized based on lifetime expected credit losses.

Expected credit losses are weighted average credit losses with the risk of a default occurring as the weighting. Twelve-month expected credit losses represent the expected credit losses on a financial instrument resulting from possible default events within 12 months after the reporting date. Lifetime expected credit losses represent the expected credit losses on a financial instrument from all possible default events over the expected lifetime of the financial instrument.

For the purpose of internal credit risk management, the Company determines that a default has occurred on financial assets under any of the following circumstances without considering the collateral held thereby:

A. Any internal or external information has indicated the debtor is unable to pay off debts.

B. Any payment is overdue more than 60 days, unless any reasonable and supportable information makes it appropriate to postpone the default criteria.

The impairment loss on all financial assets is deducted from the carrying amount of the financial assets through allowance accounts.

(3) Derecognition of financial assets

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The Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset become invalid, or when the financial asset and almost all the risks and returns over the ownership of the asset are transferred to other companies.

For derecognition of a financial asset measured at amortized cost in its entirety, the difference between its carrying amount and the consideration received is recognized in profit or loss.

2. Equity instruments

The debts and equity instruments issued by the Company are classified as financial liabilities or equity according to the substance of contract agreements and the definition of financial liabilities and equity instruments.

The equity instruments issued by the Company are recognized based on the amount obtained from the payment amount less the direct issuance cost.

3. Financial liabilities

(1) Subsequent measurement

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

(2) Derecognition of financial liabilities

For derecognition of a financial liability, the difference between its carrying amount and the consideration paid (including any non-cash asset transferred or any liability assumed) is recognized in profit or loss.

(X) Liability provision

The amount of a liability provision recognized is the best estimate of the expenses required to pay off obligations on the balance sheet date, which takes into account the risk and uncertainty of the obligations.

Refund liabilities are product returns and discounts that are considered likely to occur based on historical experience, the management’s judgment, and other known reasons and recorded as minus items of operating revenues in the year when the relevant products are sold.

(XI) Revenue recognition

After identifying the performance obligations in a customer contract, the Company allocates the transaction price to each performance obligation, and then recognizes revenue after satisfying each performance obligation.

Revenue from sales of goods
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The consolidated company's revenue from sale of goods is from the sale of speaker parts, automobile and motorcycle parts, parts for travel use, and other customized parts. The Company recognizes revenue and accounts receivable at the point where the goods sold arrive at the customer-designated location or shipping point since the customer has the right to determine the price of the goods and use them, has the main responsibility to resell the goods, and takes the risk that the goods may become obsolete by then.

Provision of services

Service revenue is recognized when services are provided.

(XII) Leases

The Company assesses whether a contract is (or contains) a lease on the date of conclusion of the contract.

The Company is the lessee

The lease payments for leases of low-value underlying assets and short-term leases to which the recognition exemption applies are recognized as expense on a straight-line basis over the lease term. All other leases are recognized in right-of-use assets and lease liabilities on the lease commencement date.

Right-of-use assets are initially measured at cost (including initial measurement of lease liabilities), which are subsequently measured at cost less accumulated depreciation and accumulated impairment losses and adjusted for any remeasurement of the lease liabilities. The right-of-use assets are separately presented in the parent-only balance sheet.

The right-of-use assets are depreciated on a straight-line basis over the period from the lease commencement date to the earlier of the expiration of the useful life or the lease term.

The lease liabilities are initially measured at the present value of lease payments (including fixed payments). If the interest rate implicit in the lease can be readily determined, the lease payments are discounted at the interest rate. When such interest rate cannot be readily determined, the lessee's incremental borrowing rate of interest is used.

Subsequently, the lease liabilities are measured at amortized cost under the effective interest method, and the interest expenses are amortized over the lease term. The lease liabilities are separately presented in the parent-only balance sheet.

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(XIII) Cost of borrowing

All costs of borrowing are recognized in profit or loss in the period in which the borrowing occurred.

(XIV) Employee benefits

Short-term employee benefits

Liabilities related to short-term employee benefits are measured at the undiscounted amount expected to be paid in exchange for the services rendered by employees.

Post-employment benefits

Under the defined contribution retirement plan, pension contributions are recognized as expenses during the period when services are rendered by employees.

Defined benefit costs (including service costs, net interest, and remeasurement) under the defined benefit retirement plan are calculated actuarially using the projected unit credit method. Service costs and net interest on net defined benefit assets are recognized as employee benefit expenses at the time of their occurrence. Remeasurement (including actuarial profits or losses and return on plan assets less interest) is recognized in other comprehensive income and presented in retained earnings when it occurred. It is not reclassified into profit or loss in subsequent periods.

The net defined benefit liability (asset) represents the deficit (surplus) of the Group’s defined benefit plan. Net defined benefit assets shall not exceed the present value of refunds of contributions from the plan or reductions in future contributions.

(XV) Income tax

Income tax expenses are the total of current income tax and deferred income tax.

Current income tax

The Company determines the current income (loss) in accordance with the Republic of China’s laws and regulations on income tax, and with these as a basis, calculates the income tax payable (recoverable).

The additional income tax levied on undistributed earnings calculated in accordance with the Income Tax Act of the Republic of China is recognized in the year when the related resolution is adopted at the shareholders’ meeting.

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Adjustments to the income tax payable in prior years are recognized in current income tax.

Deferred income tax

Deferred income tax is calculated based on the temporary difference between the carrying amount of assets and liabilities in the book and the tax base for calculation of taxable income.

Deferred income tax liabilities are generally recognized based on all taxable temporary differences; deferred income tax assets are recognized when it is likely that there will be taxable income available to offset the deductible temporary differences and loss carryforwards.

Taxable temporary differences associated with investment in subsidiaries are recognized as deferred income tax liabilities unless the Company is able to control the timing of the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax assets for deductible temporary differences associated with such investments are recognized only to the extent that it is probable that sufficient taxable income will be available against which the temporary differences can be utilized, and that they are expected to reverse in the foreseeable future.

The carrying amount of deferred income tax assets is reviewed on each balance sheet date and reduced to the extent where it is no longer probable that sufficient taxable income will be available to allow the recovery of all or part of the assets. Those that are not initially recognized as deferred income tax assets are also reviewed on each balance sheet date and increased to the extent that it is probable that sufficient taxable income will be available in the future to allow the recovery of all or part of the assets.

Deferred income tax assets and liabilities are measured at the tax rate of the period when the liabilities or assets are expected to be settled or realized. The tax rate is based on the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax liabilities and assets are measured to reflect the tax consequences that would follow from the manner in which the Company expects, at the balance sheet date, to recover or settle the carrying amount of its assets and liabilities.

26 -

27 -
Current and deferred income taxes

Current and deferred income taxes are recognized in profit or loss, except for those related to items recognized in other comprehensive income or directly presented in equity, which are recognized separately in other comprehensive income or directly presented in equity.

V. Main sources of uncertainty of material accounting judgments, estimates and assumptions

In adopting accounting policies, the Company’s management must make judgments, estimates and assumptions in respect of information that is not readily available from other sources based on historical experience and other relevant factors. The actual results could differ from the estimates.

With material accounting estimates taken into account, the management will continue to review the estimates and basic assumptions. If a correction of the estimates affects only the current period, it is recognized in the period when it is made. If a correction of the estimates affects both the current and future periods, it is recognized in the period when it is made and in the future period.

Main source of uncertainty of estimates and assumptions – impairment of financial assets

The estimated impairment of accounts receivable and financial assets measured at amortized cost is based on the Company’s assumptions about the probability of default and loss given default. The Company takes into account historical experience, current market conditions, and forward-looking information to make assumptions and select inputs for impairment assessment. See Note 8 for the important assumptions and inputs used. If the actual cash flow in the future is less than what the Company expected, a significant impairment loss may occur.

VI. Cash

	December 31, 2025	December 31, 2024
Cash on hand and working capital	$ 191	$ 137
Bank checks and demand deposits	141,170	127,628
	$ 141,361	$ 127,765

The market interest rate range for bank deposits on the balance sheet date is as follows:

	December 31, 2025	December 31, 2024
Bank deposits	0.00%~3.68%	0.00%~4.00%

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VII. Financial assets measured at amortized cost

	December 31, 2025	December 31, 2024
Non-current
Pledged accounts receivable	$ 120,000	$ 120,000

For information on the pledging of the financial assets measured at amortized cost, see Note 28.

VIII. Accounts receivable and other receivables

	December 31, 2025	December 31, 2024
Accounts receivable
Measurement at amortized cost
Total carrying amount	$ 262,109	$ 259,618
Less: Loss allowance	( 602 )	( 374 )
Classified to financial assets measured at amortized cost – non-current	( 120,000 )	( 120,000 )
	$ 141,507	$ 139,244
Other receivables
Business tax refund receivable	$ 501	$ 81
Others	101	18
	$ 602	$ 99
Other receivables – related parties (Note 27)	$ 111,383	$ 44,937

(I) Accounts receivable

Accounts receivable measured at amortized cost

The Company takes out accounts receivable insurance for goods sold and regularly reviews the recoverability of accounts receivable from customers based on an aging analysis of the accounts receivable from the customers, their credit ratings, the economic environment, and other factors. The average credit period for the sale of goods is 60–90 days and no interest accrues on the accounts receivable. To reduce the credit risk, the Company’s management appoints a team dedicated to the determination of credit limits, credit approval, and the implementation of other monitoring procedures to ensure appropriate actions are taken for the recovery of overdue accounts receivable. In addition, the Company reviews the recoverable amount of accounts receivable one by one on the balance sheet date to make sure appropriate impairment losses have been set aside for the accounts receivable that cannot be recovered. Thus,

the management of the Company believes that the credit risk that the Company is exposed to has been mitigated significantly.

The Company recognizes the loss allowance for accounts receivable based on the lifetime expected credit losses. The lifetime expected credit losses are calculated using a provision matrix with consideration of the customers' historical default record and current financial position as well as industrial and economic situations. The Company divides customers into different risk groups based on whether they have insurance, and recognizes loss allowances based on the expected loss rates of each group. In addition, for the accounts receivable that are more than 60 days overdue, the Company recognizes a loss allowance of 10% of the accounts receivable if the amount of the accounts receivable is within the insured amount; otherwise, a loss allowance of 100% of the accounts receivable is recognized.

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

The Company's loss allowances for accounts receivable measured using the provision matrix are as follows:

December 31, 2025

	Not overdue	Overdue 1 to 60 days	Overdue 61 to 120 days	Overdue 121 to 180 days	Overdue more than 181 days	Total
Total carrying amount	$ 225,824	$ 35,148	$ 612	$ -	$ 525	$ 262,109
Loss allowance (lifetime expected credit losses)	( 23 )	-	( 54 )	-	( 525 )	( 602 )
Amortized cost	$ 225,801	$ 35,148	$ 558	$ -	$ -	$ 261,507

December 31, 2024

	Not overdue	Overdue 1 to 60 days	Overdue 61 to 120 days	Overdue 121 to 180 days	Overdue more than 181 days	Total
Total carrying amount	$ 211,523	$ 44,303	$ -	$ -	$ 3,792	$ 259,618
Loss allowance (lifetime expected credit losses)	( 3 )	( 7 )	-	-	( 364 )	( 374 )
Amortized cost	$ 211,520	$ 44,296	$ -	$ -	$ 3,428	$ 259,244

Information on changes in the loss allowance for accounts receivable is as follows:

	2025	2024
Balance at beginning of year	$ 374	$ 67
Add: Impairment losses set aside in the year	228	307
Balance at end of year	$ 602	$ 374

(II) Other receivables (including those from related parties)

For other receivables (including those from related parties) that are overdue as of the balance sheet date and for which the Company has not recognized a loss allowance, the Company considers they are recoverable since there is no significant change in their credit quality.

The following is an age analysis of other receivables (including those from related parties) overdue but not impaired:

	December 31, 2025	December 31, 2024
0 to 60 days	$ 42,590	$ 7
61 to 120 days	5,243	2
121 to 180 days	3,299	30
181 or more days	24,463	2,106
	$ 75,595	$ 2,145

The age analysis shown above is conducted with the number of overdue days as the basis.

IX. Inventory

The cost of sales related to inventory for 2025 and 2024 was NT$909,828 thousand and NT$930,702 thousand, respectively. There was no inventory devaluation or obsolescence loss in either 2025 or 2024.

X. Investments accounted for using the equity method

Investment in subsidiaries

	December 31, 2025	December 31, 2024
CX Technology (Cayman)
Corporation (hereinafter referred to as “CX Cayman”)	$ 2,893,012	$ 2,926,903
CX Investment and Consulting Corporation (hereinafter referred to as “CX Investment and Consulting”)	48,666	50,999
Merrimack River Precision Industrial Corporation	56,797	89,189

(hereinafter referred to as "Merrimack River Precision")

$ 2,998,475

$ 3,067,091

Name of subsidiary	Percentage of ownership equity and voting rights
	December 31, 2025	December 31, 2024
CX Cayman	100%	100%
CX Investment and Consulting	100%	100%
Merrimack River Precision	100%	100%

The share of profits/ losses and other comprehensive income in subsidiaries accounted for using the equity method in 2025 and 2024 was recognized based on the financial statements of each subsidiary for the same period audited by CPAs.

Founded in February 2002, CX Cayman operates mainly as an investment holding company. CX Cayman conducted a cash capital increase of USD 7,800 thousand and USD 2,285 thousand in November and March 2024, respectively. As of December 31, 2025, the Company invested USD78,895 thousand in CX Cayman, respectively, mainly to invest in CX VN Holding Corporation (hereinafter referred to as "CX VN Holding"), CX Technology (VN) Corporation (hereinafter referred to as "CX VN"), CX Development Limited (hereinafter referred to as "CX Development"), Phu Hung Far East Holding Corporation (hereinafter referred to as "Phu Hung Far East Holding"), Fortune CX Holding Corporation, CX Technology (Samoa) Corporation (hereinafter referred to as "CX Samoa"), Phu Hung Lien Development Corporation, and Danh Tuyen Development Company Limited (hereinafter referred to as "Danh Tuyen"). Through CX VN Holding and CX Development, the Company invested in CX VN and CX Technology (Shanghai) Corporation mainly engaged in the production and sale of speakers, respectively. The Company also invested in PHU HUNG SECURITIES CORPORATION mainly engaged in stock dealership and brokerage through Phu Hung Far East Holding and in Timing International Trade (Shanghai) Co., Ltd. mainly engaged in general trade through CX Samoa.

In June 1998, the Company established CX Investment and Consulting, which has primarily functioned as an investment holding company. CX Investment and Consulting executed capital increase of USD 100 thousand in September 2025. As of December 31, 2025, the Company's reinvestment in CX Investment and Consulting was USD 3,200 thousand, primarily for reinvestment in Norrice Group Ltd., which is mainly engaged in general investment business. This investment was channeled through Norrice Group Ltd.

into Hung Thanh Development Company. In December 2025, Norrice transferred its equity to CX Cayman.

In September 2013, the Company established Merrimack River Precision, which has primarily focused on the design, development, and manufacturing of multi-purpose and multi-functional plastic injection components. In May 2024, Merrimack River Precision passed a resolution on behalf of the Board of Directors for the 2023 loss compensation proposal and the execution of capital reduction for loss compensation of NTD11,731 thousand and 11,173 thousand shares were canceled. In addition, , cash capital increase was executed immediately after the aforementioned capital reduction, and 11,173 thousand new shares were issued at a par value of NTD10 per share, for a total of NTD111,731 thousand. As of December 31, 2025, the Company invested NTD 438,077 thousand in Merrimack River Precision. Through Merrimack River Precision, the Company founded and invested in Merrimack River Precision Industrial (Samoa) Corporation, and invested in Merrimack River Precision Industrial Corporation (hereinafter referred to as "Merrimack River"), mainly engaged in investment activities, and in Merrimack River Precision Industrial (HD) Co., Ltd. (hereinafter referred to as "Merrimack River (HD)"), mainly engaged in the production and sale of plastic injection parts.

XI. Property, plant and equipment

	Machinery and equipment	Leasehold improvements	Miscellaneous equipment	Total
Cost
Balance on January 1, 2025	$ 385	$ 10,609	$ 3,952	$ 14,946
Add	-	-	82	82
Balance on December 31, 2025	$ 385	$ 10,609	$ 4,034	$ 15,028
Accumulated depreciation
Balance on January 1, 2025	$ 385	$ 1,843	$ 3,500	$ 5,728
Depreciation expense	-	540	217	757
Balance on December 31, 2025	$ 385	$ 2,383	$ 3,717	$ 6,485
Net amount on December 31, 2025	$ -	$ 8,226	$ 317	$ 8,543
Cost
Balance on January 1, 2024	$ 385	$ 10,609	$ 3,952	$ 14,946

Balance on December 31, 2024
$ 385 $ 10,609 $ 3,952 $ 14,946

Accumulated depreciation
Balance on January 1, 2024
$ 385 $ 1,303 $ 3,257 $ 4,945
Depreciation expense
- 540 243 783
Balance on December 31, 2024
$ 385 $ 1,843 $ 3,500 $ 5,728
Net amount on December 31, 2024
$ - $ 8,766 $ 452 $ 9,218

As there was no sign of impairment in 2025 and 2024, the Company did not conduct impairment assessment.

The depreciation expense was calculated on a straight-line basis over the following useful lives:

Machinery and equipment
10 years
Miscellaneous equipment
2 to 6 years
Leasehold improvements
20 years

XII. Lease agreement

(I) Right-of-use assets

	December 31, 2025	December 31, 2024
Carrying amount of right-of-use assets
Buildings	$ 6,012	$ 11,013
Miscellaneous equipment	12	50
	$ 6,024	$ 11,063
	2025	2024
Addition to right-of-use assets	$ 399	$ 14,791
Depreciation expense of right-of-use assets
Buildings	$ 5,401	$ 5,246
Miscellaneous equipment	38	37
	$ 5,439	$ 5,283

(II) Lease liabilities

	December 31, 2025	December 31, 2024
Carrying amount of lease liabilities
Current	$ 4,887	$ 4,606
Non-current	$ 1,234	$ 6,523

The discount ranges for the lease liabilities are as follows:

	December 31, 2025	December 31, 2024
Buildings	2.05%~2.20%	2.05%~2.20%
Miscellaneous equipment	2.17%	2.17%

(III) Material lease activities and terms

The Company rents buildings as offices with a lease term of 1–3 years. Once the lease term expires, the Company shall no longer have the right of first refusal to the rented buildings. It is agreed that the Company shall not sublet the lease in whole or in part without the consent of the lessor.

(IV) Other lease information

	2025	2024
Total cash (outflow) from lease	($ 5,590)	($ 5,413)

XIII. Intangible assets

	Patent rights	Cost of computer software	Total
Cost
Balance on January 1, 2025	$ 1,028	$ 7,832	$ 8,860
Add	-	1,714	1,714
Disposal	( 247)	-	( 247)
Balance on December 31, 2025	$ 781	$ 9,546	$ 10,327
Accumulated amortization
Balance on January 1, 2025	$ 908	$ 7,832	$ 8,740
Amortization expense	47	143	190
Disposal	( 242)	-	( 242)
Balance on December 31, 2025	$ 713	$ 7,975	$ 8,688
Net amount on December 31, 2025	$ 68	$ 1,571	$ 1,639
Cost
Balance on January 1, 2024	$ 1,113	$ 24,832	$ 25,945
Disposal	( 85)	( 17,000)	( 17,085)
Balance on December 31, 2024	$ 1,028	$ 7,832	$ 8,860
Accumulated amortization
Balance on January 1, 2024	$ 883	$ 13,498	$ 14,381
Amortization expense	97	1,890	1,987
Disposal	( 72)	( 7,556)	( 7,628)

35 -

Balance on December 31, 2024
$ 908
$ 7,832
$ 8,740
Net amount on December 31, 2024
$ 120
$ - -
$ 120

The amortization expense was calculated on a straight-line basis over the following useful lives:

Patent rights
7 to 13 years
Cost of computer software
3 to 5 years

XIV. Other assets

	December 31, 2025	December 31, 2024
Current
Temporary payment	$ 1,153	$ 143
Payments for raw materials/materials on behalf of others	-	19,720
	$ 1,153	$ 19,863

XV. Loans

(I) Short-term loans

	December 31, 2025	December 31, 2024
Unsecured loans
Line of credit loans	$ 580,000	$ 410,000

The interest rate for bank loans on December 31, 2025 and 2024, was 2.08%–2.15% and 2.08%–2.31%, respectively.

(II) Short-term notes payable

	December 31, 2025	December 31, 2024
Commercial paper payable	$ 50,000	$ 140,000
Less: Discount of short-term notes payable	( 98 )	( 82 )
	$ 49,902	$ 139,918

The market interest rate range for commercial paper payable on the balance sheet date is as follows:

	December 31, 2025	December 31, 2024
Commercial paper payable	2.17%	2.17%~2.24%

(III) Long-term loans

	Contract expiration date	Material terms	December 31, 2025	December 31, 2024
Secured loans
Taiwan Cooperative Bank	June 17, 2027	Interest paid monthly; principal repaid on maturity date for each draw. The line of credit may be drawn on a revolving basis within the validity period of the contract.	$ 400,000	$ -
Taiwan Cooperative Bank	May 24, 2026	Interest paid monthly; principal repaid on maturity date for each draw. The line of credit may be drawn on a revolving basis within the validity period of the contract.	-	400,000
Unsecured loans
The Shanghai Commercial & Savings Bank, Ltd.	February 23, 2027	Interest paid monthly; principal repaid in 24 installments, with one month for each installment, and the first installment is 12 months after the loan disbursement date	70,833	100,000
KGI Commercial Bank	May 13, 2026	Interest paid monthly; principal repaid on maturity date for each draw. The line of credit may be drawn on a revolving basis within the validity period of the contract.	-	200,000
Export-Import Bank of the Republic of China	February 10, 2025	Interest paid quarterly; principal repaid in 7 installments, with 6 months for each installment, from the date 24 months after the loan disbursement date.	-	8,507
Export-Import Bank of the Republic of China	March 30, 2025	Interest paid quarterly; principal repaid in 7 installments, with 6 months for each installment, from the date 24 months after the loan disbursement date.	-	11,993
Export-Import Bank of the Republic of China	November 30, 2026	Interest paid quarterly; principal repaid in 7 installments, with 6 months for each installment, from the date 24 months after the loan disbursement date.	42,857	85,714
Mega International Commercial Bank	April 28, 2030	Interest paid monthly; principal repaid in 7 installments, with 6 months for each installment, from the date 24 months after the loan disbursement date.	200,000	-
Less: Those due in one year			713,690
(92,857)
$ 620,833	806,214
(92,524)
$ 713,690

As of December 31, 2025 and 2024, the effective annual interest rate was $2.23\% - 2.67\%$ and $2.18\% - 2.23\%$ , respectively.

To make sure there was sufficient medium-term working capital, the Company entered into a credit agreement with The Shanghai Commercial & Savings Bank, Ltd., Export-Import Bank of the Republic of China, Taiwan Cooperative Bank, and Mega International Commercial Bank Co., Ltd., with available line of credit of NTD 70,833 thousand, NTD 42,857 thousand, NTD 400,000 thousand, and NTD 200,000 thousand, receptively. The total line of credit has been drawn on in stages within the contract validity periods. In drawing on the line of credit with Taiwan Cooperative Bank,

receivables equivalent to 30% of the drawn amount must be provided as collateral. If the amount of valid accounts receivable is lower than 30% of the drawn amount of the loan, according to the credit agreement, the difference shall be made up by remitting or depositing the shortage in the dedicated account or the remaining loan amount shall be repaid early.

The Company has provided sufficient accounts receivable as collateral for the long-term loans as agreed in the agreement. See Note 28.

XVI. Accounts payable

	December 31, 2025	December 31, 2024
Accounts payable
Incurred from business activities	$ -	$ 11
Accounts payable – related parties
Incurred from business activities (Note 27)	$ 419,953	$ 361,031

XVII. Other payables

	December 31, 2025	December 31, 2024
Salaries and bonuses payable	$ 15,058	$ 14,815
Remuneration payable to employees and directors	7,765	5,024
Expenses payable	5,494	4,127
Others	15,741	4,142
	$ 44,058	$ 28,108

XVIII. Refund liabilities

	2025	2024
Balance at beginning of year	$ 33,595	$ 23,454
Increase in the year	3,940	15,230
Write-down in the year	( 3,600 )	( 6,546 )
Net exchange difference	( 946 )	1,457
Balance at end of year	$ 32,989	$ 33,595

Refund liabilities from returns and discounts are product returns and discounts that are considered likely to occur based on historical experience, the management's judgment, and other known reasons and recorded as minus items of operating revenues in the period when the relevant products are sold.

XIX. Post-employment benefit plans

(I) Defined contribution plan

The pension system under the “Labor Pension Act,” as applied by the Company, is a defined contribution plan managed by the government. A pension contribution equal to 6% of an employee’s monthly salary is made and deposited into his/her personal account at the Bureau of Labor Insurance.

(II) Defined benefit plan

The pension system adopted by the Company according to the “Labor Standards Act” is a defined retirement benefit plan managed by the government. The years of service rendered and the average wage of six months prior to the retirement approval date shall be the reference for calculation of the pension to be paid to the employee. The Company makes a pension contribution of 5% of the total monthly salary of an employee and deposits the amount in the dedicated account at the Bank of Taiwan in the name of the Labor Pension Fund Supervisory Committee. Before the end of each year, if the estimated balance in the account is inadequate to make a full payment of pensions to the employees who may meet the retirement conditions in the next year, the Company will make up the difference in one appropriation before the end of March the following year. The account is managed by the Bureau of Labor Funds, Ministry of Labor and the Company does not have the right to influence the investment management strategies.

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

	December 31, 2025	December 31, 2024
Present value of defined benefit obligations	$ 5,264	$ 4,816
Fair value of plan assets	( 6,264)	( 5,771)
Net defined benefit assets	($ 1,000)	($ 955)

38 -

The changes in net defined benefit (assets) liabilities are as follows:

	Present value of defined benefit obligations	Fair value of plan assets	Net defined benefit (assets) liabilities
Balance on January 1, 2025	$ 4,816	($ 5,771)	($ 955)
Interest expense (revenue)	72	( 87)	( 15)
Recognized in profit or loss	72	( 87)	( 15)
Remeasurement
Return on plan assets (excluding interest calculated at discount rate)	-	( 406)	( 406)
Actuarial loss – changes in financial assumptions	104	-	104
Actuarial loss – experience adjustments	272	-	272
Recognized in other comprehensive income	376	( 406)	( 30)
Balance on December 31, 2025	$ 5,264	($ 6,264)	($ 1,000)
Balance on January 1, 2024	$ 4,945	($ 5,241)	($ 296)
Interest expense (revenue)	62	( 66)	( 4)
Recognized in profit or loss	62	( 66)	( 4)
Remeasurement
Return on plan assets (excluding interest calculated at discount rate)	-	( 464)	( 464)
Actuarial gain – changes in financial assumptions	( 107)	-	( 107)
Actuarial gain – experience adjustments	( 84)	-	( 84)
Recognized in other comprehensive income	( 191)	( 464)	( 655)
Balance on December 31, 2024	$ 4,816	($ 5,771)	($ 955)

Due to the pension system under the "Labor Standards Act," the Company is exposed to the following risks:

Investment risk: The Bureau of Labor Funds, Ministry of Labor has invested the labor pension fund in domestic (foreign) equity and debt securities, and bank deposits separately. The investment is conducted at the discretion of the Bureau or under the mandated management. However, the gain generated from the Company's plan assets shall be calculated with an interest rate not below the interest rate for a 2-year time deposit with local banks.

Interest rate risk: A decrease in the interest rates of government bonds will increase not only the present value of defined benefit obligations, but also the return on debt investments in plan assets. Both increases have a partial offsetting effect against the impact of net defined benefit liabilities.
Salary risk: The present value of defined benefit obligations is calculated based on the future salary of the plan participants. As a result, an increase in the salary of the plan participants will raise the present value of defined benefit obligations.

The present value of the defined benefit obligations of the Company is calculated actuarially by a qualified actuary. The material assumptions on the date of measurement are as follows:

	December 31, 2025	December 31, 2024
Discount rate	1.250%	1.500%
Average long-term salary adjustment rate	3.250%	3.250%

In the event of reasonably possible changes in the material actuarial assumptions, the resulting increase (decrease) in the present value of defined benefit obligations is as follows, provided that all other assumptions remain the same:

	December 31, 2025	December 31, 2024
Discount rate
Increase by 0.25%	($ 104)	($ 103)
Decrease by 0.25%	$ 108	$ 107
Expected salary increase rate
Increase by 0.25%	$ 104	$ 103
Decrease by 0.25%	($ 101)	($ 100)

Since the actuarial assumptions may be correlated and changes in only a single assumption are unlikely to occur, the sensitivity analysis above may not reflect actual changes in the present value of defined benefit obligations.

	December 31, 2025	December 31, 2024
Average maturity period of defined benefit obligations	8 years	8.7 years

XX. Equity

(I) Common share capital

	December 31, 2025	December 31, 2024
Number of authorized shares (thousand shares)	126,367	126,367
Authorized share capital	$1,263,666	$1,263,666
Number of issued shares with full payment received (thousand shares)	90,000	90,000
Issued share capital	$900,000	$900,000

Common shares are issued at a par value of NTD 10, with each share entitled to one voting right and the right to receive dividends.

(II) Capital reserves

The Company's capital reserve is mainly recognized as the premium of stock issuance and the changes in equity of subsidiaries under equity method. Any surplus in capital reserves from the issuance of shares above their par value (including the issuance of common shares above their par value) may be used to make up for losses or to distribute cash dividends or be contributed to the share capital if the Company has no losses, provided that such contribution to the share capital does not exceed a certain percentage of the paid-in share capital each year.

Effects of equity transactions recognized due to changes in subsidies' equity may only be used to offset losses.

(III) Retained earnings and dividend policy

According to the earnings distribution policy in the Company's Articles of Incorporation, if the Company has earnings at the year's final accounting, they shall be first used to pay the tax and make up for any cumulative losses in accordance with laws. The Company shall then make a 10% contribution of the balance to the legal reserve and use the residual for the provision/reversal of special reserves pursuant to the laws. The residual balance that can be used as distributable earnings in the current year shall be added to the undistributed earnings from prior years as accumulated distributable earnings, and the Board of Directors shall prepare an earnings distribution proposal and submit it to the shareholders' meeting for approval of distribution of shareholder dividends and bonuses. For the employee and director remuneration distribution policy in the Company's Articles of Incorporation, please refer to Note 22(5), "Remuneration to employees and directors."

41 -

According to the Articles of Incorporation of the Company, the dividend policy is adopted by the Company in consideration of the current and future development plans, investment environment, financing needs and domestic competition as well as the shareholders' interests and other factors. The dividend policy is implemented in the following ways: 1. The amount of total dividends distributed shall not be less than 30% of the distributable earnings in the current year; however, if the accumulated distributable earnings are less than 3% of the paid-in share capital, the dividends may not be paid. 2. Shareholders' dividends and bonuses may be distributed in the form of cash or stock and the cash dividend shall be more than 30% of the total dividends.

Transfers to legal reserves shall be made until the balance of the legal reserves reaches the Company's total paid-in share capital. The legal reserves may be used to offset losses. When the Company has no losses and if the legal reserves exceed the total paid-in share capital by 25%, the excess amount may be contributed to the share capital or distributed in cash.

The Company's 2024 and 2023 earning distribution proposals approved at the annual general meeting held on June 16, 2025, and June 18, 2024, are as follows:

	2024	2023
Legal reserves	$ 10,328	$ -
Provision for (reversal of) special reserves	($ 36,267)	$ 25,179
Cash dividends	$ 108,000	$ -
Cash dividends per share (NTD)	$ 1.2	$ -
After-tax net loss in the current year		($ 19,657)
Remeasurement of defined benefits plans in the current year		71
Loss to be offset in the current year		($ 19,586)

On March 12, 2026, the Board of Directors proposed distribution of earnings in 2025 as follows:

	2025
Legal reserves set aside	$ 16,159
Special reserves set aside	$ 39,337
Cash dividends	$ 43,200
Stock dividends	$ 100,000
Cash dividends per share (NTD)	$ 0.48
Stock dividends per share (NTD)	$ 1.11

The proposal for distribution of earnings in 2025 will be subject to a resolution of the annual shareholders' meeting expected to be held on June 11, 2026.

(IV) Special reserves

Special reserves are set aside for exchange differences on translation of financial statements of foreign operations (including subsidiaries). In distributing earnings, special reserves shall be set aside for the difference between the net amount of items stated as deductions from other shareholders' equity and the amount of the special reserves set aside on the end date of the reporting period. When there is reversal of deductions from other stockholders' equity thereafter, part of the earnings distributed may be reserved.

XXI. Revenue

	2025	2024
Revenue from contracts with customers
Revenue from sales of goods	$1,130,313	$1,157,823

(I) See Notes 4 and 8 for description of contracts with customers.
(II) Contract balance

	December 31, 2025	December 31, 2024	January 1, 2024
Accounts receivable (Note 8)	$ 261,507	$ 259,244	$ 295,374

XXII. Net profit in the current year

(I) Other net revenues, gains (expenses and losses)

	2025	2024
Gain from procurement on behalf of subsidiaries	$ 13,891	$ 10,223
Total foreign currency exchange gains	59,890	17,626
Total foreign currency exchange losses	( 55,849 )	( 15,018 )
Loss from disposal of intangible assets	( 5 )	( 13 )
	$ 17,927	$ 12,818

44 -

(II) Financial cost

	2025	2024
Interest on bank loans	$ 28,255	$ 21,771
Total interest expense on financial liabilities measured at amortized cost	1,456	2,108
Interest on lease liabilities	184	180
	$ 29,895	$ 24,059

(III) Depreciation and amortization

	2025	2024
Summary of depreciation expenses by function
Operating expenses	$ 6,196	$ 6,066
Summary of amortization expenses by function
Operating expenses	$ 572	$ 2,255

(IV) Employee benefit expense

	2025	2024
Post-employment benefits
Defined contribution plan	$ 1,602	$ 1,552
Defined benefit plan (Note 19)	( 15 )	( 4 )
	1,587	1,548
Other employee benefits	58,177	53,500
Total employee benefit expenses	$ 59,764	$ 55,048
Summarized by function
Operating expenses	$ 59,764	$ 55,048

(V) Remuneration to employees and directors

According to the Company's Articles of Incorporation, no less than 1% and no more than 2.5% of the current year's pre-tax profit before deduction of remuneration distributed to employees, directors shall be appropriated as employee remuneration and director remuneration, respectively. Following the amendments to the Securities and Exchange Act in August 2024, the Company resolved to amend its Articles of Incorporation at the 2025 shareholders' meeting for resolution, expressly stating that at least 20% of the aforementioned remuneration of employees should be allocated to entry-level employees. The remuneration of the directors and the estimated employee remuneration (including entry-level employees remuneration) for 2025 and 2024 were

approved by the Board of Directors in a board resolution on March 12, 2026 and March 10, 2025, respectively.

Estimated percentage

	2025	2024
Remuneration to employees	1.27%	1.27%
Remuneration of directors	2.50%	2.50%
Amount
	2025	2024
	Cash	Cash
Remuneration to employees	$ 2,615	$ 1,692
Remuneration of directors	$ 5,150	$ 3,332

Any change in the amount after the date of approval and publication of the annual parent-only financial report is treated as a change in accounting estimates and will be adjusted to be accounted for in the next year.

There is no difference between the actually distributed amounts of the remuneration to employees and to directors in 2024 and the amounts recognized in the parent-only financial report of 2024.

The Company reported a loss for 2023 and, as a result, did not estimate remuneration for employees or the remuneration of the directors.

For information on the employee remuneration and director remuneration approved by the Board of Directors, visit the “Market Observation Post System” of the Taiwan Stock Exchange.

XXIII. Income tax

(I) Income tax recognized in profit or loss

Income tax expenses (benefits) mainly consist of the following items:

	2025	2024
Current income tax
Incurred in the current year	$ 25,571	$ 29,140
Adjustments from prior years	(27,727)	3,788
	(2,156)	32,928
Deferred income tax
Incurred in the current year	14,077	(11,080)
Adjustments from prior years	23,309	3,633
	37,386	(7,447)
Income tax expense recognized in profit or loss	$ 35,230	$ 25,481

Adjustments to accounting income and income tax expenses (benefits) are as follows:

	2025	2024
Pre-tax profit	$ 198,240	$ 128,238
Income tax of net profit before tax calculated at the statutory rate	$ 39,648	$ 25,648
Adjustments for prior years’ tax	( 4,418 )	7,421
Others	-	( 7,588 )
Income tax expense recognized in profit or loss	$ 35,230	$ 25,481

(II) Income tax recognized in other comprehensive income

	2025	2024
Deferred income tax
Incurred in the current year
— Exchange differences on translation of foreign operations	$ 29,165	($ 26,736)
— Share of other comprehensive income of subsidiaries accounted for using the equity method	( 9 )	( 1,949 )
— Remeasurement of defined benefits plans	( 1,447 )	( 131 )
	$ 27,709	($ 28,816)

(III) Current income tax liabilities

	December 31, 2025	December 31, 2024
Current income tax liabilities
Income tax payable	$ 20,846	$ 22,480

(IV) Deferred income tax assets and liabilities

Changes in deferred income tax assets and liabilities are as follows:

2025

	Balance at beginning of year	Recognized in profit or loss	Recognized in other comprehensive income	Adjustment of income tax of the previous year	Balance at end of year
Deferred income tax assets
Temporary differences
Unrealized deferred gain	$ 4,966	($ 570)	$ -	$ -	$ 4,396
Defined benefit retirement plan	2,916	-	( 1,441)	( 1,475)	-
Liability provision	6,719	( 121)	-	-	6,598
Investments accounted for using the equity method	38,148	6,789	-	( 22,346)	22,591
Exchange differences from foreign operations	1,563	-	29,165	-	30,728
Others	2,022	1,497	-	-	3,519
	$ 56,334	$ 7,595	$ 27,724	($ 23,821)	$ 67,832
Deferred income tax liabilities
Temporary differences
Investments accounted for using the equity method	$ 24,486	$ 21,403	$ 9	($ 706)	$ 45,192
Unrealized exchange gain	989	266	-	-	1,255
Defined benefit plan	-	3	6	194	203
	$ 25,475	$ 21,672	$ 15	($ 512)	$ 46,650

2024

	Balance at beginning of year	Recognized in profit or loss	Recognized in other comprehensive income	Adjustment of income tax of the previous year	Balance at end of year
Deferred income tax assets
Temporary differences
Unrealized deferred gain	$ 4,605	$ 361	$ -	$ -	$ 4,966
Defined benefit retirement plan	3,047	-	( 131)	-	2,916
Liability provision	4,691	2,028	-	-	6,719
Investments accounted for using the equity method	29,769	8,379	-	-	38,148
Exchange differences from foreign operations	28,299	-	( 26,736)	-	1,563
Others	3,210	( 1,188)	-	-	2,022
	$ 73,621	$ 9,580	($ 26,867)	$ -	$ 56,334
Deferred income tax liabilities
Temporary differences
Investments accounted for using the equity method	$ 18,335	$ 4,202	$ 1,949	$ -	$ 24,486
Unrealized exchange gain	3,058	( 2,069)	-	-	989
	$ 21,393	$ 2,133	$ 1,949	$ -	$ 25,475

(V) Approval of income tax returns

The profit-seeking enterprise income tax returns of the Company as of 2023 were approved by the tax authority.

XXIV. Earnings per share

	Unit: NTD per share
	2025	2024
Basic earnings per share	$ 1.81	$ 1.14
Diluted earnings per share	$ 1.81	$ 1.14

The net profit and weighted average number of common shares used to calculate the earnings per share are shown below:

Net profit in the current year

	2025	2024
Net profit in the current year	$ 163,010	$ 102,757

Number of shares

	Unit: Thousand shares
	2025	2024
Weighted average number of common shares used for calculation of basic EPS	90,000	90,000
Effect of dilutive potential common shares:
Remuneration to employees	114	55
Weighted average number of common shares used for calculation of diluted EPS	90,114	90,055

If the Company may choose to distribute the remuneration to employees in shares or cash, the diluted EPS is calculated by adding the number of dilutive potential common shares to the weighted average number of outstanding shares under the assumption that the employee remuneration will be distributed in shares. The dilutive effect of the potential common shares is taken into account when calculating the diluted EPS before a resolution is adopted on the number of shares distributable as remuneration for employees.

XXV. Capital risk management

The Company has conducted capital management mainly for the purpose of ensuring that the Company can operate on a going concern basis while maximizing shareholders' return by optimizing the balance of debts and equity.

48 -

XXVI. Financial instruments

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

The management of the Company believes that the carrying amounts of financial assets and financial liabilities not measured at fair value are close to their fair values or their fair values cannot be measured reliably.

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

The Company does no hold financial instruments measured at fair value on a recurring basis.

(III) Types of financial instruments

	December 31, 2025	December 31, 2024
Financial assets
Financial assets measured at amortized cost (Note 1)	$ 514,376	$ 431,988
Financial liabilities
Measurement at amortized cost (Note 2)	1,785,324	1,724,906

Note 1: The balance includes financial assets measured at amortized cost, such as cash, financial assets measured at amortized cost, accounts receivable, other receivables (including those from related parties and excluding tax refund receivable) and refundable deposits.

Note 2: The balance includes the financial liabilities measured at amortized cost, such as short-term loans, short-term notes payable, accounts payable (including those to related parties), other payables (including those to related parties; excluding salaries and bonuses payable, pensions payable, and remuneration payable to employees, directors), and long-term loans (including long-term liabilities due in one year).

(IV) Purposes and policies of financial risk management

The Company’s primary financial instruments include accounts receivable, other receivables (including those from related parties), deposits paid, accounts payable (including those to related parties), other payables (including those to related parties), loans and lease liabilities. The Company’s financial management department is responsible for providing services to business units, planning and coordinating operations for entry into domestic and international financial markets, and monitoring and managing financial risks in relation to the Company’s operations using internal risk reports that analyze risk exposure based on the level and scope of the risks. Such

49 -

risks include market risks, exchange rate risk, interest rate risk, credit risk and liquidity risk.

The important financial activities of the Company are audited and approved by the Board of Directors according to related regulations and the internal control system. These financial activities are executed under internal control.

Market risks

The Company is exposed to the financial market risks, primarily changes in foreign currency exchange rates and interest rates, due to its operation.

(1) Exchange rate risk

The Company operates multinationally and thus is exposed to the exchange rate risks from different currencies, the US dollar in particular. Relevant exchange rate risks come from the credit, debt and foreign currency investment in foreign operations that are paid and collected in foreign currency in the future.

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

Sensitivity analysis

The Company is affected primarily by fluctuations in the exchange rates of USD.

The sensitivity analysis only includes outstanding foreign currency monetary items. An adjustment is made to the year-end translation of the items based on an exchange rate change of 3%. The positive number in the following table means the amount of decrease in the pre-tax profit when the functional currency of the entity appreciates by 3% against USD. When the functional currency of the entity depreciates by 3% against USD, the effect on the pre-tax profit is a negative number of the same amount.

Effect of USD	2025	2024
Profit or loss	$ 875	$ 135

(2) Interest rate risk

The interest rate risk exposure occurs due to the borrowing of funds by entities under the Company at both fixed and floating interest rates. The Company manages interest rate risks by maintaining a proper combination

50 -

of fixed and floating interest rates. The Company's interest rate risk originates from long-term and short-term loans. Loans issued at floating interest rates expose the Company to cash flow interest rate risk. Part of the risk is offset by cash and cash equivalents held at floating interest rates. On the other hand, loans issued at fixed interest rates expose the Company to fair value interest rate risk. The Company's loans are mainly at floating interest rates. In 2025 and 2024, the Company's loans calculated at floating interest rates were denominated in NTD.

The carrying amounts of the financial assets and liabilities of the Company exposed to the interest rate risk on the balance sheet date are as follows:

	December 31, 2025	December 31, 2024
With fair value interest rate risk
Financial assets	$ -	$ -
Financial liabilities	56,023	151,047
With cash flow interest rate risk
Financial assets	109,068	99,796
Financial liabilities	1,293,690	1,216,214

Sensitivity analysis

With respect to the sensitivity analysis of interest rate risk, the Company uses the financial assets and financial liabilities exposed to cash flow interest rate risk on the balance sheet date as the calculation basis. The Company uses a 1% increase/decrease in market interest rates as a reasonably possible change for reporting interest rate risk to management. With all other variables remaining unchanged, a 1% decrease in the market rate would reduce/increase the Company's pre-tax profit in 2025 and 2024 by NTD 11,846 thousand and NTD 11,164 thousand, respectively.

2. Credit risk

Credit risk refers to the risk of counterparties' default on contractual obligations which may result in financial losses. The policy adopted by the Company only allows the Company to conduct transactions with counterparties with good credit in order to reduce the risk of financial losses and continuously monitor the Company's exposure to credit risk and the credit of the counterparties.

51 -

The Company’s credit risk is mainly concentrated in the top three group customers. As of December 31, 2025 and 2024, 74% and 69% of the total accounts receivable were from the aforesaid group customers, respectively. The group customers of the Company consist of multiple corporate entities operating separately and independently and are distributed various regions. The Company does not concentrate on a single corporate entity or region. In addition, the Company also continuously assesses the financial position of accounts receivable customers and takes out commercial credit insurance contracts. Hence, the Company faces limited credit risk. On the balance sheet date, the Company’s maximum amount exposed to credit risk was equal to the carrying amount of the financial assets stated.

Liquidity risk

The Company manages and maintains sufficient cash to sustain operations and mitigate the effects of cash flow fluctuations. The management of the Company monitors the use of the bank financing facility and ensures compliance with the terms of loan contracts.

(1) Liquidity risk tables for non-derivative financial liabilities

The tables below detail the remaining contractual maturity analysis of the Company’s non-derivative financial liabilities within the agreed repayment term. They are compiled based on the earliest repayment date given to the Company and the non-discounted cash flow of the financial liabilities (including the cash flow of the interest and principal).

December 31, 2025

	Repaid immediately or within less than 1 year	1 to 5 years
Non-interest-bearing liabilities	$ 441,733	$ -
Lease liabilities	4,967	1,238
Instruments with floating interest rate	690,037	634,904
Instruments with fixed interest rate	50,000	-
	$ 1,186,737	$ 636,142

December 31, 2024

	Repaid immediately or within less than 1 year	1 to 5 years
Non-interest-bearing liabilities	$ 368,774	$ -
Lease liabilities	5,188	6,205
Instruments with floating interest rate	517,948	719,315
Instruments with fixed interest rate	140,000	-
	$ 1,031,910	$ 725,520

(2) Financing facility

Bank loans are an important source of liquidity for the Company. The Company's undrawn financing facility with banks on the balance sheet date is as follows:

	December 31, 2025	December 31, 2024
Bank loan facility
Undrawn amount	$ 841,435	$ 574,180

XXVII. Related party transactions

In addition to those disclosed in other notes, the transactions between the Company and related parties are as follows:

(I) Names of related parties and their relationship with the consolidated company

Names of related parties	Relationship with the Company
Merrimack River Precision Industrial Corporation (Merrimack River Precision)	Subsidiary
CX Technology (VN) Corporation (CX VN)	Subsidiary
Norrice Group Ltd. (Norrice)	Subsidiary
CX Technology (Samoa) Corporation (CX Samoa)	Subsidiary
Merrimack River Precision Industrial (HD) Co., Ltd. (Merrimack River (HD))	Subsidiary
Phu Hung Lien Development Corporation	Subsidiary
Phu Hung Far East Holding Corporation	Subsidiary
Fortune CX Holding Corporation	Subsidiary
CX Development Limited	Subsidiary

54 -

(II) Purchase

Types/Names of related parties	2025	2024
Subsidiary
CX VN	$ 889,974	$ 915,611
Others	18,121	19,233
	$ 908,095	$ 934,844

The Company purchases from the above-mentioned related parties. Since there is no comparable party, the transaction prices are not comparable. There is no significant difference in payment terms compared to general suppliers.

(III) Other receivables from related parties (excluding loans to related parties)

Account	Types/Names of related parties	December 31, 2025	December 31, 2024
Other receivables – related parties	Subsidiary
	CX VN	$ 66,509	$ 36,440
	CX Samoa	41,137	6,101
	Norrice	3,211	2,318
	Others	526	78
		$ 111,383	$ 44,937

The other receivables from CX VN listed in the table above originated from the Company's sale of raw materials and machinery and equipment purchased on behalf of CX VN. The gain from the markup for purchasing the raw materials and machinery and equipment on behalf of the subsidiary has no major irregularities from regular transaction terms. The remaining other receivables are routine expenses paid by the Company on behalf of the subsidiaries.

With respect to the deferred gain from the Company's sale of machinery and equipment and raw materials/materials to CX VN, the realized deferred gain in 2025 and 2024 was NTD 24,828 thousand and NTD 23,025 thousand (stated as other net revenues, gains, expenses and losses), respectively.

(IV) Payables to related parties (excluding borrowings from related parties)

Account	Types/Names of related parties	December 31, 2025	December 31, 2024
Accounts payable – related parties	Subsidiary
	CX VN	$ 417,914	$ 360,703
	Others	2,039	328
		$ 419,953	$ 361,031

The accounts payable are payments made by the Company to the related party for purchasing finished goods.

(V) Other payables to related parties (excluding loans from related parties)

Account	Types/Names of related parties	December 31, 2025	December 31, 2024
Other payables - related parties	Subsidiary
	CX VN	$ 864	$ 11
	Others	236	-
		$ 1,100	$ 11

(VI) Remuneration to key management

	2025	2024
Short-term employee benefits	$ 23,108	$ 21,154
Post-employment benefits	287	324
	$ 23,395	$ 21,478

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

XXVIII. Pledged and mortgaged assets

The following assets were provided by the Company as collateral for the Company's bank loans:

	December 31, 2025	December 31, 2024
Pledged accounts receivable
(stated as financial assets measured at amortized cost – non-current)	$ 120,000	$ 120,000

XXIX. Material contingent liabilities and unrecognized contractual commitments

(I) As of December 31, 2025 and 2024, the Company provided endorsement/guarantee for CX VN's bank loans, amounting to NTD 377,160 thousand (USD 12,000 thousand) and NTD 393,420 thousand (USD 12,000 thousand), respectively.

(II) As of December 31, 2025 and 2024, the Company provided endorsement/guarantee for Merrimack River Precision's bank loans, both amounting to NTD 80,000 thousand.

(III) As of December 31, 2025 and 2024, the Company provided endorsement/guarantee for Merrimack River (HD)'s bank loans, amounting to NTD 245,154 thousand (USD 7,800 thousand) and NTD 255,723 thousand (USD 7,800 thousand), respectively.

55 -

XXX. Material subsequent events

Considering the strategic needs of capacity expansion, green sustainability, and the introduction of new technologies, the Company’s Board of Directors passed a board resolution on February 12, 2026, to increase the capital of CX Cayman by USD 40,000 thousand and acquire right-of-use assets for land in Vietnam through investee companies to build its second factory in Ho Chi Minh City, Vietnam. The estimated total transaction amount is USD 26,117 thousand, and the contract is pending signature.

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

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

Unit: Exchange rate in NTD; foreign currencies in thousand dollars/NTD thousand

December 31, 2025

	Foreign currency	Exchange rate	Carrying amount
Foreign currency assets
Monetary items
USD	$ 14,337	31.43(USD:NTD)	$ 450,623
EUR	471	36.90(EUR:NTD)	17,384
Investments accounted for using the equity method
USD	94,294	31.43(USD:NTD)	2,941,678
Foreign currency liabilities
Monetary items
USD	13,409	31.43(USD:NTD)	421,456

December 31, 2024

	Foreign currency	Exchange rate	Carrying amount
Foreign currency assets
Monetary items
USD	$ 11,189	32.79(USD:NTD)	$ 366,816

EUR 669 34.14(EUR:NTD) 22,853

Investments accounted for using the equity method
USD	90,831	32.79(USD:NTD)	2,977,902
Foreign currency liabilities
Monetary items
USD	11,051	32.79(USD:NTD)	362,305

The realized and unrealized foreign currency exchange gains of the Company in 2025 and 2024 were NTD 4,041 thousand and NTD 2,608 thousand, respectively. As there are numerous foreign currencies used for foreign currency transactions, it is not possible to disclose the exchange gain/loss of each foreign currency with material effect.

XXXII. Note disclosures

(I) Information of material transactions:

Funds loaned to others. (See Table 1)
Endorsements/guarantees to others. (See Table 2)
Significant securities held at the end of the period (excluding investments in subsidiaries, associates, and joint ventures). (See Table 3)
Purchase/sale of goods from/to related parties equaling or exceeding NTD100 million or 20% of the paid-in capital. (See Table 4)
Payments receivable from related parties equaling or exceeding NTD100 million or 20% of the paid-up capital. (See Table 5)

(II) Information of investee companies. (See Table 6)

(III) Information of investments in Mainland China

Information about investee companies in Mainland China, such as the name, main business activities, paid-in capital, investment method, inward and outward remittance of funds, shareholding percentage, the ending carrying amount of the investment, investment gains or losses received, and limit on the amount of investment in Mainland China. (See Table 7)
The following material transactions with the investee companies in Mainland China directly or indirectly through a third area, and the prices, payment terms and unrealized profits/losses of such transactions. (See Table 8)
57 -

(1) The amount and percentage of purchases, and the year-end balance and percentage of the related payables.

(2) The amount and percentage of sales, and the year-end balance and percentage of the related receivables.

(3) The amount of property transactions and the resulting amount of profits/losses.

(4) The year-end balance of endorsements/guarantees and collateral provided, and their purposes.

(5) The maximum balance, year-end balance, interest rate range, and total interest for the year on financing provided.

(6) Other transactions with significant effect on the profits/losses or financial conditions in the current year, such as the rendering or receiving of services.

58 -

CX Technology Corporation

Funds Loaned to Others

January 1 to December 31, 2025

Table 1
Unit: NTD thousand unless otherwise specified

No. (Note 1)	Lending company	Borrower	Account	Whether the borrower is a related party	Maximum balance in the current year	Balance at end of year (Note 4)	Actual drawdown amount	Interest rate range	Nature of loaning (Note 3)	Business transaction amount	Reasons for the need of short-term financing	Appropriated allowance for losses	Collateral		Limit on loans to individual borrowers (Note 2)	Limit on total loans (Note 2)
													Name	Value
1	CX Investment and Consulting Corporation	Norrice Group Limited	Other receivables - related parties	Yes	$ 3,143 (USD 100,000)	$ -	$ -	0%	2	$ -	Working capital	$ -	—	—	$ 9,733	$ 19,466

Note 1: Number column description:
(1) "0" is reserved for the issuer.
(2) Each investee company is numbered in sequential order starting from 1.

Note 2: The total funds loaned by the Company to others and to a single enterprise shall not exceed 40% and 20% of such company's net worth in the most recent period, respectively.

Note 3: Nature of loaning: 1. Business relationships. 2. Needs for short-term financing.

Note 4: Translated based on the exchange rate on December 31, 2025.

59 -

CX Technology Corporation
Endorsements/Guarantees for Others
January 1 to December 31, 2025

Table 2
Unit: NTD thousand unless otherwise specified

No. (Note 1)	Endorser/Guarantor	Endorsed/Guaranteed company		Limit on endorsements/guarantees for a single enterprise (Note 4)	Maximum endorsement/guarantee balance in the current year	Ending endorsement/guarantee balance (Note 5)	Actual drawdown amount (Note 3)	Endorsement and Guarantee Amount Secured by Property	Cumulative amount of endorsements/guarantees as a share of the net worth in the financial statements for the most recent period (%)	Maximum limit on endorsements/guarantees (Note 4)	Endorsements/guarantees made by the parent company for subsidiaries	Endorsements/guarantees made by subsidiaries for the parent company	Endorsements/guarantees made for the operations in Mainland China
		Company name	Relationship (Note 2)
0	CX Technology Corporation	Merrimack River Precision Industrial (IID) Co. Ltd	2	$ 846,588	$ 258,999 (USD 7,800,000)	$ 245,154 (USD 7,800,000)	$ 62,860 (USD 2,000,000)	$ -	14.48%	$ 846,588	Yes	No	No
0	CX Technology Corporation	Merrimack River Precision Industrial Corporation	2	846,588	80,000	80,000	-	-	4.72%	846,588	Yes	No	No
0	CX Technology Corporation	CX Technology (VN) Corporation	2	846,588	398,460 (USD 12,000,000)	377,160 (USD 12,000,000)	-	-	22.28%	846,588	Yes	No	No

Note 1: Number column description:
(1) "0" is reserved for the issuer.
(2) Each investee company is numbered in sequential order starting from 1.

Note 2: The relationship between the endorser/guarantee and the endorsed/guaranteed company is classified into seven categories as follows. It is only necessary to mark the type:
(1) Companies with business relationships.
(2) Companies where the Company directly and indirectly holds more than 50% of shares with voting rights.
(3) Companies directly and indirectly holding more than 50% of shares with voting rights in the Company.
(4) Companies where the Company directly and indirectly holds up to 90% or more of shares with voting rights.
(5) Companies in the same industry or joint builders that are required to provide mutual guarantee pursuant to contracts for undertaking construction projects.
(6) Companies receiving endorsements/guarantees from all shareholders proportionally to their shareholding due to a joint venture relationship.
(7) Joint and several security provided by companies in the same industry for each other as a performance guarantee in sales contracts for pre-construction homes pursuant to the Consumer Protection Act.

Note 3: Translated based on the exchange rate on December 31, 2025.

Note 4: The limit on endorsements/guarantees was set in accordance with Article 36-1 of the Securities and Exchange Act and according to the operating procedures for endorsements/guarantees approved by the shareholders' meeting. The limit on the Company's total external endorsements/guarantees and endorsements/guarantees to a single enterprise is 50% of the net worth of the Company.

60 -

CX Technology Corporation

Significant securities held at the end of the period.

December 31, 2025

Table 3
Unit: NTD thousand unless otherwise specified

Holding company	Type and name of securities	Relationship with the securities issuer	Account	At end of year
				Number of shares	Carrying amount	Shareholding percentage	Fair value
Fortune CX Holding Corporation	SharesPHU HUNG ASSURANCE CORPORATION	—	Financial assets measured at fair value through profit or loss - current	4,001,901	USD 2,208,058	8.9	USD 2,208,058	Note 1
	PHU HUNG LIFE INSURANCE JOINT STOCK CORPORATION	—	Financial assets measured at fair value through other comprehensive income - non-current	21,582,515	USD 2,444,840	5.5	USD 2,444,840	Note 1 & 3
Phu Hung Lien Development Corporation	SharesPHU HUNG LIFE INSURANCE JOINT STOCK CORPORATION	—	Financial assets measured at fair value through other comprehensive income - non-current	20,304,445	USD 2,300,062	5.1	USD 2,300,062	Note 1 & 3

Note 1: There was no restricted use of securities due to collateral provision, pledging of loans, or other agreements.
Note 2: In accordance with Article 17 of the Regulations Governing the Preparation of Financial Reports by Securities Issuers, the Company's investee company PHU HUNG SECURITIES CORPORATION is a securities firm, and its securities are exempted from disclosure in the above table.
Note 3: The Group's equity investment in PHU HUNG LIFE lost significant influence at the end of October 2024. As a result, the equity method was discontinued and the investment was reclassified as a financial asset measured at fair value through other comprehensive income.

61 -

CX Technology Corporation
Purchase/Sale of Goods from/to Related Parties Equaling or Exceeding NTD100 million or 20% of the Paid-in Capital
January 1 to December 31, 2025

Table 4
Unit: NTD thousand

Purchasing (selling) company	Counterparty	Relationship	Transaction				Differences of transaction terms from those of regular transactions and reasons for such differences		Notes/Accounts receivable (payable)
			Purchase (Sale)	Amount	Share of total purchase (sale)	Credit period	Unit price	Credit period	Balance	Share of total accounts and notes receivable (payable)
CX Technology Corporation	CX Technology (VN) Corporation	Sub-subsidiary	Purchase	$ 889,974	88%	Same as regular transactions	$ -	—	($ 417,914)	( 90%)
CX Technology (VN) Corporation	CX Technology Corporation	Ultimate parent company	Sale	( 889,974 )	( 67%)	Same as regular transactions	-	—	417,914	82%

62 -

CX Technology Corporation
Receivables from Related Parties Equaling or Exceeding NTD100 million or 20% of the Paid-in Capital
December 31, 2025

Table 5
Unit: NTD thousand

Company stating receivables	Counterparty	Relationship	Balance of receivables from related parties	Overdue receivables from related parties		Subsequently recovered amount of receivables from related parties (Note 1)	Appropriated allowance for losses
				Amount	Treatment
CX Technology (VN) Corporation	CX Technology Corporation	Parent company	Accounts receivable - $ 417,914 related parties	2.28	$ -	-	$ 79,740	Note 2
CX Technology (Cayman) Corporation	CX Technology (VN) Corporation	Subsidiary	Dividends receivable 225,039	-	-	-	Note 3	Note 2
CX VN Holding Corporation	CX Technology (VN) Corporation	Subsidiary	Dividends receivable 216,214	-	-	-	Note 3	Note 2
CX Technology (Cayman) Corporation	CX VN Holding Corporation	Subsidiary	Dividends receivable 276,126	-	-	-	Note 3	Note 2

Note 1: Subsequently means during January 1 and March 12, 2026.
Note 2: As assessed, there was no need to set aside an allowance for losses.
Note 3: Due to the local laws and regulations that restrict the remittance of local earnings in Vietnam, as of the date of the financial statements, the amount has not been recovered.

63 -

CX Technology Corporation

Name, Place of Registration, and Other Information of Investee Companies

January 1 to December 31, 2025

Table 6
Unit: NTD thousand unless otherwise specified

Name of investor company	Name of investee company	Place of registration	Main business activities	Initial investment amount (Note 1)		Held at the end of period			(Loss) Profit of investee company in the year	Investment (loss) gain recognized in the year	Remarks
				End of the year	End of previous year	Number of shares	Percentage	Carrying amount (Note 1)
CX Technology Corporation	CX Technology (Cayman) Corporation	Grand Pavilion Commercial Centre, Oleander way,802 West Bay Road,P.O.Box 32052,Grand Cayman KY1-1208, Cayman Islands	General investment	$ 2,477,647	$ 2,477,647	78,895,000	100.0	$ 2,893,012	$ 107,014	$ 107,014	Subsidiary
	CX Investment and Consulting Corporation	Porcullis Chambers 4th Floor,Elm Skelton Building,3076 Sir Francis Drake Highway, Road Town, Tortola, British Virgin Islands VG1110	General investment	107,020	103,979	3,200,000	100.0	48,666	( 3,340 )	( 3,340 )	Subsidiary
	Merrimack River Precision Industrial Corporation	20F., No. 179, Liaoning St., Zhongshan Dist., Taipei City	Production and sale of plastic injection parts	438,077	438,077	12,000,000	100.0	56,797	( 30,605 )	( 30,605 )	Subsidiary
CX Technology (Cayman) Corporation	CX Technology (VN) Corporation	Lot CT, Lot T, Area C, Tan Thuan Export Processing Zone, Tan Thuan Dong Ward, Ho Chi Minh City, Vietnam	Production and sale of metal parts	241,321	241,321	20,666,859	51.0	515,607	126,831	-	Subsidiary
	CX VN Holding Corporation	Grand Pavilion Commercial Centre, Oleander way,802 West Bay Road,P.O.Box 32052,Grand Cayman KY1-1208, Cayman Islands	General investment	231,953	231,953	7,380,000	100.0	435,490	62,147	-	Subsidiary
	CX Development Limited	15/F.,BOC Group Life Assurance Tower,136 Des Voeux Road Central,Central, Hong Kong	General investment	282,870	282,870	9,000,000	100.0	105,342	( 19,832 )	-	Subsidiary
	Pbu Hung Far East Holding Corporation	Porcullis Chambers 4th Floor,Elm Skelton Building,3076 Sir Francis Drake Highway, Road Town, Tortola, British Virgin Islands VG1110	General investment	1,100,993	1,100,993	35,030,000	100.0	1,188,580	46,864	-	Subsidiary
	Fortune CX Holding Corporation	Porcullis Chambers 4th Floor,Elm Skelton Building,3076 Sir Francis Drake Highway, Road Town, Tortola, British Virgin Islands VG1110	General investment	346,830	346,830	11,035,000	100.0	147,284	76	-	Subsidiary
	CX Technology ( Samoa ) Corporation	Porcullis Chambers, P.O. Box 1225, Apia, Samoa	General investment	226,296	226,296	7,200,000	100.0	( 52,203 )	( 46,688 )	-	Subsidiary
	Pbu Hung Lien Development Corporation	Porcullis Chambers 4th Floor,Elm Skelton Building,3076 Sir Francis Drake Highway, Road Town, Tortola, British Virgin Islands VG1110	General investment	248,611	248,611	7,910,000	100.0	( 73,518 )	( 95 )	-	Subsidiary

(Continued to next page)

(Continued from previous page)

Name of investor company	Name of investee company	Place of registration	Main business activities	Initial investment amount (Note 1)		Held at the end of period			(Loss) Profit of investee company in the year
				End of the year	End of previous year	Number of shares	Percentage	Carrying amount (Note 1)
CX VN Holding Corporation	CX Technology (VN) Corporation	Lot CT, Lot T, Area C, Tan Thuan Export Processing Zone, Tan Thuan Dong Ward, Ho Chi Minh City, Vietnam	Production and sale of metal parts	$ 231,858
[USD 7,376,963]	$ 231,858
[USD 7,376,963]	19,864,341	49.0	$ 495,388
[USD 15,761,634]	$ 126,831
[USD 4,099,363]	$ -	Subsidiary
Phu Hung Far East Holding Corporation	PHU HUNG SECURITIES CORPORATION	21st Floor, Phu My Hung Tower, 08 Hoang Van Thai Street, Tan Phu Ward, Ho Chi Minh City, Vietnam	Stock dealership and brokerage	1,391,562
[USD 44,274,948]	1,391,562
[USD 44,274,948]	92,004,600	46.0	1,169,953
[USD 37,224,087]	102,597
[USD 88,305,578,493]	-	Subsidiary
CX Investment and Consulting Corporation	Norrice Group Ltd.	Vistra Corporate Services Centre, Wickhams Cay II, Road Town, Tortola, VG1110 British Virgin Islands	General investment	97,433
[USD 3,100,000]	97,433
[USD 3,100,000]	3,100,000	67.4	45,503
[USD 1,447,745]	(4,962)
[USD (159,222)]	-	Subsidiary
Merrimack River Precision Industrial Corporation	Merrimack River Precision Industrial ( Samoa ) Corporation	Portcullis Chambers, P.O. Box 1225, Apia, Samoa.	General investment	386,025	379,936	12,720,000	100.0	25,202	(35,105)
[USD (1,120,063)]	-	Subsidiary
Merrimack River Precision Industrial ( Samoa ) Corporation	Merrimack River Precision Industrial Corporation	Porcullis Chambers 4th Floor, Eilen Skelton Building, 3076 Sir Francis Drake Highway, Road Town, Tortola, British Virgin Islands VG1110	General investment	298,585
[USD 9,500,000]	298,585
[USD 9,500,000]	9,500,000	100.0	53,576
[USD 1,704,608]	(15,603)
[USD (497,640)]	-	Subsidiary
Merrimack River Precision Industrial Corporation	Merrimack River Precision Industrial ( HD ) Co., Ltd.	Factory B9, B10, B11, B12, B13, Lot3, West Subdivision, Phu Thai Industrial Park, Phu Thai commune, Hai Phong city, Vietnam	Production and sale of plastic injection parts	298,585
[USD 9,500,000]	298,585
[USD 9,500,000]	-	100.0	52,756
[USD 1,678,512]	(15,609)
[USD (497,839)]	-	Subsidiary

Note 1: Translated based on the exchange rate on December 31, 2025.
Note 2: For information on the investee companies in Mainland China, see Table 7.
Note 3: Calculated based on the CPA-audited financial statements of the investee companies for the same period.

CX Technology Corporation
Information of investments in Mainland China
January 1 to December 31, 2025
Unit: NTD thousand unless otherwise specified
Table 7

Name of investee company in Mainland China	Main business activities	Paid-in capital (Note 5)	Method of investment	Amount of investments remitted or recovered in the year
				Outward remittance	Recovery
CX Technology (Shanghai) Corporation (CX Shanghai)	Production and sale of magnetic components for speakers	$ 282,870
[USD 9,000,000]	2	$ 131,883
[USD 4,196,086]	$ -	$ -	$ 131,883
[USD 4,196,086]	($ 19,479)
[RMB (4,495,098)]	100%	($ 19,479)
[USD (625,675)]	$ 105,664
[USD 3,361,899]	$ 145,751
[USD 4,803,914]	Note 1 & 9
Tening International Trade (Shanghai) Co., Ltd	General trade	$ 6,286
[USD 200,000]	2	$ 6,286
[USD 200,000]	-	-	$ 6,286
[USD 200,000]	( 103)
[RMB (27,909)]	100%	( 103)
[USD (3,243)]	$ 5,219
[USD 166,039]	-	Note 2 & 9
Accumulated amount of investments remitted from Taiwan to Mainland China at end of the year (Note 5)	Amount of investments approved by the Investment Commission, MOEA (Notes 3 and 5)	Limit on the amount of investments in Mainland China specified by the Investment Commission, MOEA (Note 4)
---	---	---
$ 138,169 (USD 4,396,086)	$ 289,156 (USD 9,200,000)	$ 1,015,905

Note 1: It is a company in Mainland China invested in by the Company through CX Development Limited founded and invested in by the Company in a third area. For the relevant investment structure, see Note 10 to the parent-only financial report.
Note 2: It is a company in Mainland China invested in by the Company through CX Technology (Samoa) Corporation founded and invested in by the Company in a third area. For the relevant investment structure, see Note 10 to the parent-only financial report.
Note 3: The investment was approved and registered by the MOEA with Letter Jing-Shen-Ei-Zi No. 091025709 dated August 29, 2002, Letter Jing-Shen-Er-Zi No. 093015988 dated July 28, 2004, and Letter Jing-Shen-Er-Zi No. 10700100610 dated May 7, 2018.
Note 4: Calculated based on 60% of the net worth in the Company's financial statements for the most recent period as required by the MOEA's Letter Jing-Shen-Zi No. 09704604680.
Note 5: Translated based on the exchange rate on December 31, 2025.
Note 6: Translated based on the monthly average exchange rate in 2025.
Note 7: Calculated based on the financial statements of the investee companies audited by the parent company's CPA for the period.
Note 8: Translated based on the historical exchange rate.
Note 9: In 2017, CX Shanghai repatriated investment income, totaling USD 4,803,914, through an investee company.

CX Technology Corporation

Material Transactions with Investee Companies in Mainland China, Either Directly or Indirectly through a Third Area, and Their Prices, Payment Terms, and Unrealized Profits/Losses

January 1 to December 31, 2025

Table 8
Unit: NTD thousand

Name of investee company in Mainland China	Type of transaction	Purchase (Sale)		Price	Transaction terms		Notes/Accounts receivable (payable)		Unrealized profit/loss	Remarks
		Amount	%		Payment terms	Compared to regular transactions	Amount	%
CX Technology (Shanghai) Corporation	Sale	($ 43,387)	( 3%)	$ -	No significant differences	Same as regular transactions	$ 13,160	3%	$ -	Note 1
CX Technology (Shanghai) Corporation	Purchase	51,748	93%	-	No significant differences	Same as regular transactions	( 22,316)	( 86%)	-	Note 1
Timing International Trade (Shanghai) Co., Ltd	Sale	( 51,748)	( 77%)	-	No significant differences	Same as regular transactions	22,316	79%	-	Note 1

Note 1: Subsidiary to subsidiary.

67 -

§Contents of Statements of Major Accounting Items§

ITEM	NO./INDEX
Statements of Assets, Liabilities and Equity
Statement of Cash	Statement 1
Statement of Notes and Accounts Receivable	Statement 2
Statement of Changes in Long-term Equity	Statement 3
Investments Accounted for Using the Equity Method
Statement of Changes in Financial Assets at Amortized Cost - Non-current	Note 7
Statement of changes in property, plant and equipment	Note 11
Statement of changes in intangible assets	Note 13
Statement of deferred income tax assets	Note 23
Statement of short-term loans	Statement 4
Statement of short-term notes payable	Note 15
Statement of other payables	Note 17
Statement of Refund Liabilities - Current	Note 18
Statement of long-term loans	Statement 5
Statement of deferred income tax liabilities	Note 23
Statements of Profits and Losses
Statement of operating revenues	Statement 6
Statement of operating costs	Statement 7
Statement of operating expenses	Statement 8
Statement of other net revenues, gains, expenses and losses	Note 22
Statement of Financial Costs	Note 22
Employee benefit, depreciation, depletion, and amortization expenses in the year, by function	Statement 9

68 -

CX Technology Corporation
Statement of Cash and Cash Equivalents
December 31, 2025

Statement 1
Unit: NTD thousand unless otherwise specified

Item	Summary	Amount
Petty cash		$ 191
Demand deposits
Demand deposits – NTD		14,808
Demand deposits – foreign currency	USD 2,975,290.20; exchange rate: USD 1=NTD 31.43	93,513
Demand deposits – foreign currency	EUR 20,129.05; exchange rate: EUR 1=NTD 36.90	743
Demand deposits – foreign currency	CNY 970.19; exchange rate: EUR 1=NTD 4.50	4
		109,068
Check deposits		32,102
		$ 141,361

69 -

CX Technology Corporation
Statement of Notes and Accounts Receivable
December 31, 2025

Statement 2
Unit: NTD thousand

Name	Amount
Accounts receivable
Company A	$ 116,466
Company B	81,254
Company C	36,866
Company D	16,640
Others (Note 1)	10,883
	262,109
Less: Loss allowance	( 602 )
Classified to financial assets measured at amortized cost – non-current (Note 2)	( 120,000 )
	( 120,602 )
	$ 141,507

Note 1: The balance of each item does not exceed 5% of the balance of the account.
Note 2: For the accounts receivable of NTD 120,000 thousand, the collateral for the loan has been provided.
Please refer to Note 28 to the parent company only financial statements.

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CXTecchnology Corporation
Statement of Changes in Long-term Equity Investments Accounted for Using the Equity Method
December 31, 2025

Statement 3

Unit: NTD thousand

Name	Balance at beginning of year		Increase in the year (Note 1)		Decrease in the current year (Note 1)		Investment (loss) gain	Balance at end of year			Net equity value	Provision as collateral or pledging	Remarks
	Number of shares	Amount	Number of shares	Amount	Number of shares	Amount		Number of shares	Shareholding percentage (%)	Amount
Non-listed (non-OTC) companies
Cayman	78,895,000	$ 2,926,903	-	$ 24,868	-	($ 165,773)	$ 107,014	78,895,000	100	$ 2,893,012	$ 2,914,991	—	Note 3
Investment and Consulting	3,100,000	50,999	100,000	3,041	-	( 2,034 )	( 3,340 )	3,200,000	100	48,666	48,666	—	Note 2
Merrimack River	12,000,000	89,189	-	-	-	( 1,787 )	( 30,605 )	12,000,000	100	56,797	56,797	—	Note 2
Precision		$ 3,067,091		$ 27,909		($ 169,594)	$ 73,069			$ 2,998,475	$ 3,020,454

Note 1: The increase in the amount for the current year is attributable to a capital increase of NTD 3,041 thousand (USD 100 thousand), an adjustment of the valuation gain or loss of the subsidiary measured at fair value through other comprehensive income of NTD 40 thousand, and realized gains of NTD 24,828 thousand. The decrease in the amount for the current year is attributable to unrealized gains of NTD 21,979 thousand and the exchange difference of NTD 147,615 thousand in the financial statements of foreign operating institutions.
Note 2: The amount of change in the current year refers to the investment loss, the exchange difference arising from the translation of the financial statements of foreign operations, and the exchange difference arising from the translation of the financial statements of subsidiaries under the equity method.
Note 3: The difference between the net equity value and carrying amount of the investee company is NTD 21,979, the unrealized gross profit from the Company's purchase of raw materials on behalf of the subsidiary.

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CX Technology Corporation
Statement of Short-term Loans
December 31, 2025

Statement 4
Unit: NTD thousand

Short-term bank loans	Balance at end of year	Drawdown period	Interest rate range (%)	Mortgage or collateral	Remarks
Hua Nan Commercial Bank, Ltd.	$ 50,000	114.12.10-115.03.10	Floating 2.13	—	Interest paid monthly; principal repaid at maturity
Bank of Taiwan	50,000	114.11.27-115.02.25	Floating 2.08	—	Interest paid monthly; principal repaid at maturity
Shin Kong Commercial Bank Co., Ltd.	100,000	114.11.27-115.01.08	Floating 2.09	—	Interest paid monthly; principal repaid at maturity
Taipei Fubon Bank	50,000	114.12.10-115.02.06	Floating 2.09	—	Interest paid monthly; principal repaid at maturity
Taipei Fubon Bank	30,000	114.12.10-115.02.06	Floating 2.09	—	Interest paid monthly; principal repaid at maturity
First Commercial Bank	90,000	114.10.17-115.01.16	Floating 2.13	—	Interest paid monthly; principal repaid at maturity
KGI Commercial Bank	40,000	114.10.17-115.01.16	Floating 2.15	—	Interest paid monthly; principal repaid at maturity
KGI Commercial Bank	100,000	114.12.18-115.03.18	Floating 2.15	—	Interest paid monthly; principal repaid at maturity
Mega International Commercial Bank	70,000	114.10.07-115.01.05	Floating 2.08	—	Interest paid monthly; principal repaid at maturity
	$ 580,000

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CX Technology Corporation
Statement of Long-term Loans
December 31, 2025

Statement 5
Unit: NTD thousand

Creditor	Contract period (Note 1)	Repayment method	Annual interest rate	Ending amount	Mortgage or collateral	Remarks
Export-Import Bank of the Republic of China	2021.11.30-2026.11.30	The 21th day of March, June, September and December refers to the interest collection date; principal repaid in 7 installments, with 6 months for each installment, and the first installment is 24 months after the loan disbursement date.	Floating 2.23%	$ 42,857	—	Note 1
Mega International Commercial Bank	2025.04.28-2030.04.28	Interest paid monthly; principal repaid in 7 installments, with 6 months for each installment, and the first installment is 24 months after the loan disbursement date.	Floating 2.67%	200,000	—	Note 1
Taiwan Cooperative Bank	2025.06.20-2027.06.17	Interest paid monthly; principal repaid at maturity	Floating 2.23%	300,000	Note 2	Note 1
Taiwan Cooperative Bank	2025.12.17-2027.06.17	Interest paid monthly; principal repaid at maturity	Floating 2.23%	100,000	Note 2	Note 1
The Shanghai Commercial & Savings Bank, Ltd.	2024.05.16-2027.05.16	Interest paid monthly; principal repaid in 24 installments, with one month for each installment, and the first installment is 12 months after the loan disbursement date.	Floating 2.23%	70,833	—	Note 1
				713,690
Less: Those due in one year				( 92,857 )
				$ 620,833

Note 1: See Note 15 to the parent-only financial report.
Note 2: The Company provided accounts receivable amounting to NTD 120,000 thousand as collateral for the line of credit with Taiwan Cooperative Bank.

CX Technology Corporation
Statement of Operating Revenues
January 1 to December 31, 2025

Statement 6
Unit: NTD thousand unless otherwise specified

Name	PCS	Unit selling price (NTD)	Amount
Sales revenue
Shell pots	43,494,652	9.43	$ 410,003
Front plates	49,829,602	4.80	239,018
Back plates	17,241,896	9.93	171,178
Aluminum cones	5,408,291	20.70	111,973
2PCS	1,315,349	63.24	83,186
Loundspeakers	7,134,383	10.83	77,232
Others (Note)	7,200,583	5.79	41,662
Total sales revenues			1,134,252
Less: Sales returns and discounts			( 3,939 )
Net sales revenue			$ 1,130,313

Note: The amount of each item does not exceed 5% of the balance of the account.

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CX Technology Corporation
Statement of Operating Costs
January 1 to December 31, 2025

Statement 7

Unit: NTD thousand

Name	Amount
Finished goods at the beginning of year	$ -
Finished goods purchased in the year	911,109
Finished goods at the end of year	-
Cost of sales before adjustment	911,109
Other cost adjustments	( 1,281 )
Cost of sales	$ 909,828

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CX Technology Corporation
Statement of Operating Expenses
December 31, 2025

Statement 8
Unit: NTD thousand unless otherwise specified

Name	Sales expense	Management expense	Total
Salary expense	$ 14,380	$ 39,831	$ 54,211
Travel expense	1,822	1,359	3,181
Insurance expense	2,554	2,401	4,955
Depreciation expense	2,518	3,678	6,196
Service expense	162	5,880	6,042
Others (Note)	2,615	9,277	11,892
	$ 24,051	$ 62,426	$ 86,477

Note: The amount of each item does not exceed 5% of the balance of the account. Sales expense includes the expected credit impairment loss of NTD 228 thousand.

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CX Technology Corporation
Employee Benefit, Depreciation and Amortization expenses in the Year, by Function
January 1 to December 31, 2025 and 2024

Statement 9
Unit: NTD thousand

| | 2025
Classified as operating expenses | 2024
Classified as operating expenses |
| --- | --- | --- |
| Employee benefit expense | | |
| Salary expense | $ 38,914 | $ 36,808 |
| Labor and health insurance expense | 3,517 | 3,197 |
| Pension expense | 1,587 | 1,548 |
| Director remuneration | 13,711 | 11,327 |
| Other employee benefit expenses | 2,035 | 2,168 |
| | $ 59,764 | $ 55,048 |
| Depreciation expense | $ 6,196 | $ 6,066 |
| Amortization expense | $ 572 | $ 2,255 |

Note 1: For the current year and last year, the number of employees were 37 and 36 people respectively, which included 7 non-employee directors for both years.

Note 2:
1. The average employee benefit expense in this year and the previous one was NTD 1,535 thousand and NTD 1,508 thousand.
2. The average employee salary expense in this year and the previous one was NTD 1,297 thousand and NTD 1,269 thousand.
3. Average change in the employee salary expense 2.2%.
4. The policies related to the salary and remuneration of directors, managerial officers, and employees is described as follows:

(1) Policy for payment of remuneration to directors

The compensation and remuneration of the Company’s directors shall be determined and paid in accordance with the Articles of Incorporation. According to the Articles of Incorporation, if the Company has a profit in the current year, no more than 2.5% of the profit shall be set aside for the remuneration of the directors. However, if there are accumulated losses, part of the profit shall first be retained to make up for the losses. The remuneration of the directors mentioned above shall be proposed to the shareholders’ meeting for resolution.

(2) Policy for payment of remuneration to managerial officers and employees

The remuneration of the Company’s managerial directors and employees includes salary, bonus, and employee remuneration and is determined based on the position they are in, their responsibilities and performance, with remuneration levels in the industry taken into account. According to the Articles of Incorporation, if the Company has a profit in the current year, no less than 1.0% of the profit shall be set aside for employee remuneration. However, if there are accumulated losses, part of the profit shall first be retained to make up for the losses. An amount greater than 20% of the remuneration of employees described in preceding paragraph shall be appropriated as the remuneration of entry-level employees. The remuneration of the managerial officers mentioned above shall be proposed to the shareholders’ meeting for resolution.

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