Eastech Holding Limited and Subsidiaries

Consolidated Financial Statements for the Three Months Ended March 31, 2026 and 2025 and Independent Auditors' Review Report

Notice to Readers

For the convenience of readers, the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language consolidated financial statements shall prevail.

INDEPENDENT AUDITORS' REVIEW REPORT

The Board of Directors and Shareholders
Eastech Holding Limited

Introduction

We have reviewed the accompanying consolidated balance sheets of Eastech Holding Limited ("Eastech") and its subsidiaries (collectively, the "Group") as of March 31, 2026 and the related consolidated statements of comprehensive income, the consolidated statements of changes in equity and cash flows for the three months then ended March 31, 2026 and 2025, and the related notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with International Accounting Standards 34 "Interim Financial Reporting". Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

We conducted our reviews in accordance with Statement on Review Engagements of the Republic of China No. 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our reviews, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects the consolidated financial position of the Group as of March 31, 2026, its consolidated financial performance for the three months ended March 31, 2026 and 2025, as well as its consolidated financial performance and its consolidated cash flows for the three months then ended March 31, 2026 and 2025 in accordance with International Accounting Standard 34 "Interim Financial Reporting".

The engagement partners on the reviews resulting in this independent auditors’ review report are Jung-Chin Liu and Tzu-Ping Huang.

Ernst & Young
Taipei, Taiwan
Republic of China

April 29, 2026

EASTECH HOLDING LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

AS OF MARCH 31, 2026 AND DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars)

ASSETS		March 31, 2026		December 31, 2025		LIABILITIES AND EQUITY		March 31, 2026		December 31, 2025
Accounts	Notes	Amount	%	Amount	%	Accounts	Notes	Amount	%	Amount	%
CURRENT ASSETS						CURRENT LIABILITIES
Cash and cash equivalents	6.(1)	$1,945,298	28.65	$1,796,680	27.25	Short-term bank borrowings	6.(8)	16,213	0.24	35,078	0.53
Accounts receivable, net	6.(3), 6.(12) and 8	1,657,699	24.42	1,782,450	27.04	Accounts payable	6.(9)	2,291,447	33.75	1,939,865	29.42
Inventories	6.(5) and 8	1,338,023	19.71	1,117,905	16.96	Other payables	6.(9)	1,076,976	15.86	819,523	12.43
Other receivables and prepayments	6.(4)	464,916	6.85	512,190	7.77	Current tax liabilities	6.(14)	14,207	0.21	3,766	0.06
Current tax assets		311	-	5,200	0.08	Lease liabilities - current	6.(7)	42,464	0.63	71,556	1.09
Total current assets		5,406,247	79.63	5,214,425	79.10	Total current liabilities		3,441,307	50.69	2,869,788	43.53
NON-CURRENT ASSETS						NON-CURRENT LIABILITIES
Financial assets at fair value through profit or loss - non-current	6.(2)	216,000	3.18	216,000	3.28	Deferred tax liabilities	6.(7)	24,416	0.36	24,704	0.37
						Lease liabilities - non-current		193,022	2.84	184,659	2.80
						Total non-current liabilities		217,438	3.20	209,363	3.17
Property, plant and equipment	6.(6) and 8	814,529	12.00	808,335	12.26	Total liabilities		3,658,745	53.89	3,079,151	46.70
Right-of-use assets	6.(7)	267,231	3.94	281,012	4.26
Intangible assets	8	20,874	0.31	21,179	0.32	EQUITY ATTRIBUTABLE TO SHAREHOLDERS
Deferred tax assets		40,116	0.59	38,412	0.58	OF THE PARENT
Prepaid Fixed Assets (Non-current)		23,982	0.35	13,281	0.20	Share capital - common stock	6.(11)	791,365	11.66	791,145	12.00
Total non-current assets		1,382,732	20.37	1,378,219	20.90	Capital surplus	6.(11)	1,166,206	17.18	1,166,067	17.69
						Retained earnings	6.(11)
						Legal reserve		17,034	0.25	17,034	0.26
						Unappropriated earnings		1,049,341	15.46	1,498,428	22.73
						Exchange differences on translating the financial statements of foreign operations	6.(11)	130,307	1.91	64,838	0.98
						Treasury shares	6.(11)	(24,019)	(0.35)	(24,019)	(0.36)
						Total equity		3,130,234	46.11	3,513,493	53.30
TOTAL ASSETS		$6,788,979	100.00	$6,592,644	100.00	TOTAL LIABILITIES AND EQUITY		$6,788,979	100.00	$6,592,644	100.00

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

EASTECH HOLDING LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025

(In Thousands of New Taiwan Dollars, except for earnings per share)

Accounts	Notes	For the three months ended March 31,
		2026		2025
		Amount	%	Amount	%
NET SALES	6.(12)	$2,323,130	100.00	$2,691,775	100.00
COST OF SALES	6.(5) and 6.(12)	1,977,207	85.11	2,285,788	84.92
GROSS PROFIT		345,923	14.89	405,987	15.08
OPERATING EXPENSES	6.(10) and 6.(12)
Selling and distribution		46,823	2.02	44,930	1.67
General and administrative		184,671	7.95	191,036	7.10
Expected credit losses (reversal gain)	6.(3)	24	-	(4)	-
Total operating expenses		231,518	9.97	235,962	8.77
OPERATING PROFIT		114,405	4.92	170,025	6.31
NON-OPERATING INCOME AND EXPENSES
Other income	6.(12)	44,262	1.91	25,924	0.96
Foreign exchange (loss) gain, net		(18,009)	(0.78)	24,698	0.92
Other losses	6.(12)	(1,138)	(0.05)	(3,898)	(0.14)
Finance costs	6.(12)	(2,835)	(0.12)	(3,230)	(0.12)
Total non-operating income and expenses		22,280	0.96	43,494	1.62
PROFIT BEFORE TAX		136,685	5.88	213,519	7.93
INCOME TAX EXPENSE	6.(13)	(15,198)	(0.65)	(20,273)	(0.75)
NET PROFIT FOR THE PERIOD		121,487	5.23	193,246	7.18
OTHER COMPREHENSIVE INCOME (NET OF INCOME TAX)
Items that may be reclassified subsequently to profit or loss:		65,469	2.82	11,153	0.41
Exchange differences on translating foreign operations		65,469	2.82	11,153	0.41
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD		$186,956	8.05	$204,399	7.59
EARNINGS PER SHARE (NT$)	6.(14)
Basic earnings per share after income tax		$1.54		$2.50
Diluted earnings per share after income tax		$1.54		$2.46

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

EASTECH HOLDING LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025

(In Thousands of New Taiwan Dollars)

Descriptions	EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT
	Share Capital - Common Stock	Capital Surplus	Retained Earnings		Exchange Differences on Translating Foreign Operations	Treasured Stock	Total Equity
			Legal Reserve	Unappropriated Earnings
BALANCE AT JANUARY 1, 2025	$772,807	$1,139,883	$10,801	$1,519,944	$196,436	$(24,019)	$3,615,852
Appropriation of earnings of 2024	-	-	-	(815,089)	-	-	(815,089)
Cash dividend of common stock	-	-	4,234	(4,234)	-	-	-
Legal reserve of subsidiaries	-	-	-	-	-	-	-
Net profit for the three months ended March 31, 2025	-	-	-	193,246	-	-	193,246
Other comprehensive income for the three months ended March 31, 2025	-	-	-	-	11,153	-	11,153
Total comprehensive income for the three months ended March 31, 2025	-	-	-	193,246	11,153	-	204,399
Compensation costs of employee stock options	-	91	-	-	-	-	91
Issuance of common stock under employee share options	11,360	8,312	-	-	-	-	19,672
BALANCE AT MARCH 31, 2025	$784,167	$1,148,286	$15,035	$893,867	$207,589	$(24,019)	$3,024,925
BALANCE AT JANUARY 1, 2026	$791,145	$1,166,067	$17,034	$1,498,428	$64,838	$(24,019)	$3,513,493
Appropriation of earnings of 2025	-	-	-	(570,574)	-	-	(570,574)
Cash dividend of common stock	-	-	-	-	-	-	-
Net profit for the three months ended March 31, 2026	-	-	-	121,487	-	-	121,487
Other comprehensive income for the three months ended March 31, 2026	-	-	-	-	65,469	-	65,469
Total comprehensive income for the three months ended March 31, 2026	-	-	-	121,487	65,469	-	186,956
Issuance of common stock under employee share options	220	139	-	-	-	-	359
BALANCE AT MARCH 31, 2026	$791,365	$1,166,206	$17,034	$1,049,341	$130,307	$(24,019)	$3,130,234

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

EASTECH HOLDING LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025

(In Thousands of New Taiwan Dollars)

	For the three months ended March 31,			For the three months ended March 31,
	2026	2025		2026	2025
CASH FLOWS FROM OPERATING ACTIVITIES			CASH FLOWS FROM INVESTING ACTIVITIES:
Profit before income tax	$136,685	$213,519	Payments for acquiring property, plant and equipment	(26,603)	(75,698)
Depreciation of property, plant and equipment	37,589	40,590	Proceeds from disposal of property, plant and equipment	162	1,953
Depreciation of right-of-use assets	20,459	18,850	Increase in intangible assets	(2,132)	(1,204)
Amortization of intangible assets	2,713	1,355	Increase in prepaid fixed assets	(10,701)	-
Allowance for inventories provision and inventories write-off	10,732	11,878	Net cash used in investing activities	(39,274)	(74,949)
Expected credit losses (reversal gain)	24	(4)
Loss on change in fair value of convertible bonds value through profit or loss	-	2	CASH FLOWS FROM FINANCING ACTIVITIES:
Interest expense	2,835	3,230	Repayments of short-term bank borrowings	(18,865)	-
Interest income	(11,383)	(17,003)	Repayments of the principal portion of lease liabilities	(22,064)	(18,436)
Gain on modifications of lease	-	(21)	Exercise of employee share options	359	19,672
Compensation costs of employee stock options	-	91	Net cash (used in) generated from financing activities	(40,570)	1,236
Loss on disposal and written off of property, plant and equipment	31	1,779
Operating cash flows before working capital changes
Accounts receivable	124,727	211,166
Other receivables and prepayments	47,274	(76,874)
Inventories	(230,851)	(29,799)
Accounts payable	351,582	(83,458)
Other payables	(318,331)	(106,553)
Cash generated from operating activities	174,086	188,748
Interest received	11,383	17,003	EFFECT OF EXCHANGE RATE CHANGES	47,370	7,341
Interest paid	(2,835)	(3,136)	NET INCREASE IN CASH AND CASH EQUIVALENTS	148,618	117,458
Income tax paid	(1,542)	(18,785)	CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD	1,796,680	2,588,960
Net cash generated from operating activities	181,092	183,830	CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	$1,945,298	$2,706,418

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

EASTECH HOLDING LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

General information

Eastech Holding Limited (the “Company”) is an investment holding company incorporated in Cayman Islands on February 1, 2011.

The Company was set up to acquire Eastern Asia Technology (HK) Limited (the “EAH”) and its subsidiaries (the “EAH Group”) and to list on the Taiwan Stock Exchange. EAH Group was originally a subsidiary under Eastern Asia Technology Limited (the “EATL”, a company formerly listed on Singapore Stock Exchange and delisted in February 2011) and was principally engaged in the production and sales of speaker systems and headphones. Through restructuring, the Company acquired 100% interests in EAH Group from EATL with a consideration determined based on the carrying amount of EAH Group as at December 31, 2011. After the acquisition, the Company (as EAH Group) applied primary listing on the Taiwan Stock Exchange, and the shares of the Company commenced trading on the Taiwan Stock Exchange from November 5, 2012.

For the integration between the speaker systems and 3C electronic appliances to boost the sales, EAH acquired 99.98% interests in Eastech Electronics (Taiwan) Inc. (“ETT”) and its subsidiaries from Luster Green Limited in January 2015. The principal activities of ETT and its subsidiaries are to design, production and sales of smart speakers and audio/video (“AV”) electronics home entertainment systems.

In order to maximize the allocation and to diffuse the risk of cost inflation and tariff on the current main production base, EAH established a wholly-owned subsidiary - Eastech (VN) Company Limited in Vietnam on January 25, 2019, as second production base, with the accumulated registered capital of US$8 million. Following the transfer of retained earnings to capital in the first half of the year, the capital of Eastech (VN) Company Limited has been accumulated to US$12 million.

In order to develop new technology and design the product, EAH established a wholly-owned subsidiary - Eastech Innovations (TW) Inc. on July 2, 2020. Following several capital injection and a capital reduction with cash refund amount to NT$65,000 thousand in December 2025, the paid-in capital decreased from NT$215,000 thousand to NT$150,000 thousand.

The Company’s and its subsidiaries (collectively as the “Group”) principal places of operation are located in Hong Kong and Huizhou, Guangdong Province, China and Hai Phong Vietnam.

Approval of financial statements

The consolidated financial statements were approved and authorized for issue by the Company’s board of directors on April 29, 2026.

Application of new, amended and revised standards and interpretations

(1) Standards and interpretations effective for the year

The Group has adopted all new, revised and amended International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), Interpretations of IFRS (IFRIC) and Interpretations of IAS (SIC) (collectively, the "IFRSs") issued into effect after fiscal year beginning on January 1, 2026. Except for the following, whenever applied, the initial application of the amendments to the IFRSs issued into effect would not have any material impact on the Group's consolidated financial statements for the three months ended March 31, 2026.

(2) Standards or interpretations issued, revised or amended, by International Accounting Standards Board ("IASB") which are endorsed by FSC, and not yet adopted by the Group as at the end of the reporting period are listed below.

Items	New, Revised or Amended Standards and Interpretations	Effective Date issued by IASB
a	IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in Associates and Joint Ventures” – Sale or Contribution of Assets between an Investor and its Associate or Joint Ventures	To be determined by IASB
b	IFRS 18 “Presentation and Disclosure in Financial Statements”	1 January 2027
c	Disclosure Initiative – Subsidiaries without Public Accountability: Disclosures (IFRS 19)	1 January 2027
d	Translation to a Hyperinflationary Presentation Currency (Amendments to IAS 21 and IAS 29)	1 January 2027

As of the date the consolidated financial statements were authorized for issue, the Group assessed the aforementioned new or amended standards and interpretations have no material impact on the Group. However, IFRS 18 "Presentation and Disclosure in Financial Statements" will replace IAS 1 Presentation of Financial Statements, there will be changes to the presentation of financial statements of the Group. The main changes are as below:

A. Improved comparability in the statement of profit or loss (income statement)

IFRS 18 requires entities to classify all income and expenses within their statement of profit or loss into one of five categories: operating; investing; financing; income taxes; and discontinued operations. The first three categories are new, to improve the structure of the income statement, and requires all entities to provide new defined subtotals, including operating profit or loss. The improved structure and new subtotals will give investors a consistent starting point for analyzing entities' performance and make it easier to compare entities.

B. Enhanced transparency of management-defined performance measures

IFRS 18 requires entities to disclose explanations of those entity-specific measures that are related to the income statement, referred to as management-defined performance measures.

C. Useful grouping of information in the financial statements

IFRS 18 sets out enhanced guidance on how to organize information and whether to provide it in the primary financial statements or in the notes. The changes are expected to provide more detailed and useful information. IFRS 18 also requires entities to provide more transparency about operating expenses, helping investors to find and understand the information they need.

Summary of significant accounting policies

(1) Statement of compliance

The consolidated financial statements have been prepared in accordance with International Accounting Standards 34 "Interim Financial Reporting" and Rule No.10200546801 issued by the Financial Supervisory Commission (the "FSC"). These interim consolidated financial statements do not include all the disclosures required by IFRSs which normally included in annual consolidated financial statements. Moreover, the IFRSs applicable to these consolidated financial statements have no difference with the IFRS, IAS, interpretations as well as interpretation announcement which are endorsed by FSC.

(2) Basis of preparation

The consolidated financial statements have been prepared on a historical cost basis, except for financial instruments that have been measured at fair value. The consolidated financial statements are expressed in thousands of New Taiwan Dollars ("NT$") unless otherwise stated.

A. The basis of consolidated financial statements is consistent with those applied in the consolidated financial statements for the year ended December 31, 2025.

B. The consolidated financial statements had been originally presented in the functional currency of the Company - NTD.

C. Pursuant to the above basis of preparation of the consolidated financial statements, the detail information of the subsidiaries was as follows:

Name of Investor	Name of Investee	Main Business	Percentage of Ownership Interest		Descriptions
			March 31, 2026	December 31, 2025
The Company	Eastern Asia Technology (HK) Limited (“EAH”)	Sales of speaker systems and headphones	100.00	100.00	The Company acquired EAH 100% ownership interest on March 31, 2011 and thereby obtained 100% controlling power over EAH and its subsidiaries.
EAH	Eastech (Huizhou) Co., Ltd. (“EAHZ”)	Production, assembly and sales of speaker systems, accessories, headphones, smart speakers and AV electronics home entertainment systems	100.00	100.00	The Company acquired EAH 100% ownership interest on March 31, 2011 and thereby obtained 100% controlling power over EAH and its subsidiaries.
EAH	Eastech (SZ) Co., Ltd. (“ESZ”)	Import and export trading of audio accessories, machinery and equipment, etc.	100.00	100.00	ESZ was established by EAH on November 13, 2013
EAH	Scan-Speak A/S (“ScS”)	Research and development, production and sales of high-end transducers	100.00	100.00	EAH acquired ScS 100% ownership interest on April 1, 2014
EAH	Eastech (VN) Company Limited (“EAVN”)	Production, assembly and sales of transducer speakers, bluetooth speakers and headphones	100.00	100.00	EAVN was established by EAH on January 25, 2019
EAH	Eastech (SG) Pte. Ltd. (“ESG”)	Research and development of system architecture/new product concept/state-of-the-art products/sound and acoustics advance technology	100.00	100.00	ESG was established by ETH in October 2017 and was transferred 100% ownership from ETH to EAH in July 2019.
EAH	EATL Electronics (HK) Limited (“ETH”)	Sales of smart speakers and AV electronics home entertainment systems and headphones	100.00	100.00	ETH was acquired in January 2015 and was transferred 100% ownership from ETH to EAH in September 2021.
EAH	Eastech Innovations (TW) Inc. (“ETW”)	New technology research, product design and development	100.00	100.00	ETW was established by EAH on July 2, 2020
EASZ	Eastech Acoustic (SZ) Co., Ltd. (“EASZ”)	New technology research, product design and development	100.00	-	EASZ was established by EAH on March 2, 2026

(3) Other significant accounting policies

Except for the following, please refer to Note 4 of the consolidated financial statements for the year ended December 31, 2025.

A. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax. Interim period income taxes are assessed on an annual basis and calculated by applying to an interim period's pre-tax income the tax rate that would be applicable to expected total annual earnings. The estimate of the annual effective tax rate includes only current income tax expense, while deferred income tax is recognized and measured in accordance with IAS 12 "Income Taxes," consistent with the annual financial reporting requirements.

B. Explanatory about the seasonality of interim operations

The Group's majority of clients are internationally renowned audio-visual brand enterprises. In line with the relevant European and American customers' Christmas holiday sales, the Group's production and sales is focus on the third quarter of the year to make sure stock availability before Christmas holiday. The first half of the year is typically the case of the off-season operation; therefore, the Group has a seasonal cycle of operations.

Material accounting judgments and key sources of estimation uncertainty

The same material accounting judgments and key sources of estimates and assumptions have been followed in these consolidated financial statements as were applied in the preparation of the Group's consolidated financial statements for the year ended December 31, 2025. Please refer to Note 5 of the consolidated financial statements for the year ended December 31, 2025.

Contents of significant accounts

(1) Cash and cash equivalents

	March 31, 2026	December 31, 2025
Cash on hand	$722	$353
Cash at bank	716,899	493,185
Fixed deposits	1,167,973	1,238,338
Repurchase agreement	59,704	64,804
Total	$1,945,298	$1,796,680

Cash equivalents comprise term deposits and repurchase agreement which are highly liquid and are readily convertible into cash with low risk of changes in value.

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

	March 31, 2026	December 31, 2025,
Financial assets - non-current
Mandatorily classified as at FVTPL
Non-derivative financial assets
Domestic unlisted stocks	$216,000	$216,000

(3) Accounts receivable

	March 31, 2026	December 31, 2025,
Accounts receivable	$1,674,483	$1,798,843
Less: Allowance for impairment loss	(16,784)	(16,393)
Total	$1,657,699	$1,782,450

The accounts receivable pledged as collateral for bank borrowing are set out in Note 8.

The Group's average credit period of sales of goods was 68 days (65 days in 2025). No interest was charged on accounts receivable. The Group uses other publicly available financial information or its own trading records to rate its major customers. The Group's exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the risk management committee annually.

The Group measures the loss allowance for accounts receivable at an amount equal to lifetime ECLs (excluding accounts receivable that recognizes loss allowance at full amount). The expected credit losses on accounts receivable are estimated using a provision matrix by reference to the past default experience of the debtor and an analysis of the debtor's current financial position and adjusted for general economic conditions of the industry in which the debtors operate. As the Group's historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Group's different customer base.

The Group writes off the accounts receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery, e.g. when the debtor has been placed under liquidation, or when the accounts receivable are over 180 days past due, whichever occurs earlier.

The following table details the loss allowance of accounts receivable based on the Group's provision matrix:

March 31, 2026

	Not Past Due	1 to 180 Days	181 to 365 Days	Over One Year	Total
Gross carrying amount	$1,594,592	$63,107	$24	$16,760	$1,674,483
Loss allowance
(Lifetime ECLs)	-	-	(24)	(16,760)	(16,784)
Amortized cost	$1,594,592	$63,107	$-	$-	$1,657,699

December 31, 2025

	Not Past Due	1 to 180 Days	181 to 365 Days	Over One Year	Total
Gross carrying amount	$1,665,770	$116,680	$156	$16,237	$1,798,843
Loss allowance
(Lifetime ECLs)	-	-	(156)	(16,237)	(16,393)
Amortized cost	$1,665,770	$116,680	$-	$-	$1,782,450

The movements of the loss allowance of accounts receivable were as follows:

	For the Three Months Ended March 31, 2026	For the Year Ended December 31, 2025
Balance at the beginning of the period	$16,393	$16,888
Add: Impairment losses recognized	24	158
Effect of exchange rate change	367	(653)
Balance at the end of the period	$16,784	$16,393

(4) Other receivables and prepayments

	March 31, 2026	December 31, 2025
Other receivables, net	$75,451	$103,278
Prepayments for purchases	111,468	79,098
Prepayments	21,821	21,725
Prepayments for purchases of equipment and mold	23,929	10,769
Value-added tax recoverable and refundable	196,183	263,029
Guarantee deposits	36,064	34,291
Total	$464,916	$512,190

As of March 31, 2026 and December 31, 2025, the amounts of temporary payments as described in Note 6. (9) were $55,450 thousand and $81,068 thousand, respectively.

(5) Inventories

	March 31, 2026	December 31, 2025
Raw materials	$682,015	$615,238
Work-in-process	373,941	241,623
Finished goods	91,445	161,001
Goods in transit	190,622	100,043
Total	$1,338,023	$1,117,905

The cost of inventories recognized as cost of goods sold for the three months ended March 31, 2026 and 2025 was $1,977,207 thousand and $2,285,788 thousand, respectively, which included $10,732 thousand and $11,878 thousand, allowance for inventories provision and inventories write-off, respectively.

The inventories pledged as collateral for bank borrowing are set out in Note 8.

(6) Property, plant and equipment

A. Details of property, plant and equipment were as follows:

	March 31, 2026	December 31, 2025
Cost	$1,550,678	$1,497,581
Accumulated depreciation and impairment	(736,149)	(689,246)
Carrying amount	$814,529	$808,335
Buildings and leasehold improvements	$295,437	$293,408
Machinery and office equipment	465,839	473,575
Construction in progress	53,253	41,352
Carrying amount	$814,529	$808,335

B. Changes in property, plant and equipment are as follows:

	Buildings and Leasehold Improvements	Machinery and Office Equipment	Construction in Progress	Total
Cost
Balance at January 1, 2025	$319,921	$1,217,044	$11,974	$1,548,939
Additions	1,443	41,950	211,709	255,102
Disposals	(23,423)	(194,692)	(757)	(218,872)
Reclassification	53,429	128,578	(182,007)	-
Transfer to intangible assets	-	(24,254)	-	(24,254)
Effect of exchange rate change	(19,713)	(44,054)	433	(63,334)
Balance at December 31, 2025	331,657	1,124,572	41,352	1,497,581
Additions	734	7,044	18,825	26,603
Disposals	-	(3,178)	-	(3,178)
Reclassification	-	8,412	(8,412)	-
Effect of exchange rate change	5,402	22,782	1,488	29,672
Balance at March 31, 2026	$337,793	$1,159,632	$53,253	$1,550,678

	Buildings and Leasehold Improvements	Machinery and Office Equipment	Construction in Progress	Total
Accumulated depreciation and impairment
Balance at January 1, 2025	$41,258	$688,384	$-	$729,642
Depreciation	12,053	150,552	-	162,605
Disposals	(12,774)	(146,765)	-	(159,539)
Transfer to intangible assets	-	(18,535)	-	(18,535)
Effect of exchange rate change	(2,288)	(22,639)	-	(24,927)
Balance at December 31, 2025	38,249	650,997	-	689,246
Depreciation	3,429	34,160	-	37,589
Disposals	-	(2,985)	-	(2,985)
Effect of exchange rate change	678	11,621	-	12,299
Balance at March 31, 2026	$42,356	$693,793	$-	$736,149

Management assesses no indication of impairment, therefore, no impairment loss is recognized as of March 31, 2026 and December 31, 2025 accordingly.

C. The above items of property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives as follows:

Buildings and leasehold improvements Building in Vietnam were 40 to 55 years; and leasehold improvements were depreciated over 2 to 10 years.

Machinery equipment 5 to 10 years

Office equipment 1 to 10 years

D. Property, plant and equipment pledged as collateral for bank borrowings are set out in Note 8.

(7) Lease arrangements

A. Right-of-use assets

	March 31, 2026	December 31, 2025
Carrying amounts
Land and buildings	$137,066	$159,426
Machinery and office equipment	130,165	121,586
Total	$267,231	$281,012

	For the Three Months Ended March 31
	2026	2025
Additions to right-of-use assets	$22,491	$6,273
Depreciation charge for right-of-use assets
Land and buildings	$12,936	$13,482
Machinery and office equipment	7,523	5,368
Total	$20,459	$18,850

Except for the aforementioned addition and recognized depreciation, the Group did not have significant sublease or impairment of right-of-use assets during the three months ended March 31, 2026 and for the year ended December 31, 2025.

B. Lease liabilities

	March 31, 2026	December 31, 2025
Carrying amounts
Current	$42,464	$71,556
Non-current	193,022	184,659
Total	$235,486	$256,215

Range of discount rate for lease liabilities was as follows:

	March 31, 2026	December 31, 2025
Land and buildings	2.23%~5.00%	2.23%~5.00%
Machinery and office equipment	3.49%~5.30%	4.15%~5.30%

C. Material lease-in activities and terms

The Group leases lands, offices, and other operating assets for the operations and manufacturing purpose. The Group does not have bargain purchase options to acquire the leased assets at the end of the lease terms. In addition, since land use right in respect of lands at Vietnam were obtained by way of lease as they could not be directly acquired subject to restrictions of laws, the Group's land use rights in Vietnam have been paid in full at the inception of the lease. The details of land use right held by the Group were as follows:

March 31, 2026 and December 31, 2025

Company Name	Location	Description	Tenure/Unexpired Term
EAVN	Lot B2-4, Cong Hoa Industrial Park, Tran Hung Dao Ward, Hai Phong City, Vietnam	41,227.5 sq. ft. land (the land use right is recognized under right-of-use assets)	Lease for a term of 40 years from January 2019 to April 2058

D. Other lease information

	For the Three Months Ended March 31
	2026	2025
Expenses relating to short-term leases	$1,331	$4,830
Total cash outflow for leases	$(25,919)	$(26,275)
Short-term lease commitments exempt from recognition	$4,151	$5,836

The Group leases certain motor vehicles, employee dormitories and etc. which qualify as short-term leases. The Group has elected to apply the recognition exemption and thus, did not recognize right-of-use assets and lease liabilities for these leases.

(8) Bank Borrowings

	March 31, 2026		December 31, 2025
	Rate	Amount	Rate	Amount
Secured borrowings
Bank Borrowings	4.77%~7.01%	$16,213	4.74%~7.78%	$35,078

The above represents bank borrowings utilized by the subsidiary, ScS, to fund capital expenditures related to its plant relocation.

The secured borrowings pledged as collateral for bank borrowing are set out in Note 8.

(9) Accounts payable and other payables

A. Accounts payable were mainly due to the suppliers. The Group's payment terms were from 30 to 120 days. No interest is charged by accounts payable in general. The Group has financial risk management policies to ensure settlement of all payables within payment term.

B. Details of other payables were as follows:

	March 31, 2026	December 31, 2025
Accrued salaries	$99,427	$274,793
Dividend payable	570,574	-
Temporary receivables (Note)	70,948	111,413
Accrued employee’s severance pay	171,103	179,725
Other payables	164,924	253,592
Total	$1,076,976	$819,523

Note: Temporary receivables are mainly sample fee, test fee, safety certification fee, etc. received in advance. Since the Group produces customized audio-visual electronic products for individual customer demand, related costs associated with the customized audio-visual electronic products, payment on behalf and installment prepayments based on agreements negotiated by both parties, are recorded in temporary payments (please refer to Note 6.(4)) and temporary receivables, respectively. After completion of the project (customer confirmed), the Group will reverse the aforementioned temporary payments and temporary receivables at the same time and the differences are recorded as income.

(10) Retirement benefit plans

Defined Contribution Plans

ETW adopt a pension plan under the Labor Pension Act (the "LPA"), which is a state-managed defined contribution plan. Under the LPA, an entity makes monthly contributions to employees' individual pension accounts at 6% of monthly salaries and wages.

The employees of the Group's subsidiaries in Hong Kong, the PRC, Singapore, Denmark and Vietnam are members of a state-managed retirement benefit plan operated by the government of Hong Kong, the PRC, Singapore, Denmark and Vietnam. The subsidiaries are required to contribute a specified percentage of payroll costs to the retirement benefit scheme to fund the benefits. The only obligation of the Group with respect to the retirement benefit plan is to make the specified contributions.

(11) Equity

A. Share capital

The initial setup capital of the Company is NT$1,000 thousand (registered capital is denominated in NTD). After several capital increments, the ordinary share capital of the Company as of March 31, 2026 and December 31, 2025 were $791,365 thousand and $791,145 thousand, respectively, divided into 79,137 thousand shares and 79,115 thousand shares, each with a nominal amount of NT$10 per share. All of the shares were ordinary shares, each carrying the rights to vote and receive dividends.

The movements of the shares issued and outstanding were as follows:

	(In Thousands of Shares)
	Number of Shares
January 1, 2025	77,281
Conversion of convertible bonds	568
Exercise of employee stock options	1,266
December 31, 2025	79,115
Exercise of employee stock options	22
March 31, 2026	79,137

B. Treasury shares

As of March 31, 2026 and December 31, 2025, the details of treasury shares were as follows:

Purpose of Buy-back	Number of Shares(In Thousands of Shares)
Shares held by its subsidiaries	453

For the purpose of short-term investment, related information regarding shares of the Company held by its subsidiaries on the balance sheet date was as follows:

March 31, 2026

| Subsidiary | Number of Shares Held
(In Thousands of Shares) | Carrying Amount | Market Value |
| --- | --- | --- | --- |
| ETW | 453 | $24,019 | $35,561 |

The subsidiaries holding treasury shares, however, are bestowed shareholder's rights, except the rights to participate in any share issuance for cash and to vote.

C. Capital surplus

Capital surplus arising from issuance of common shares may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital limited to 10% of the Company's capital annually. As of March 31, 2026 and December 31, 2025, the capital surplus of the Company are as follows:

	March 31, 2026	December 31, 2025
May be used to offset a deficit, distributed as cash dividends, or transferred to share capital
Arising from issuance of common share	$860,923	$860,738
Arising from convertible bonds	276,218	276,218
Expired employee stock option	2,656	2,656
May not be used for any purpose
Arising from employee restricted shares	26,409	26,409
Arising from employee stock options	-	46
Total	$1,166,206	$1,166,067

D. Retained earnings and dividend policy

Under the dividend policy as set forth in the Company Articles, where the Company made profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside or reversing a special reserve in accordance with the laws and regulations, and then any remaining net profit together with any undistributed earnings shall be used by the board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for the distribution of dividends and bonuses to shareholders. The remaining net profit in a fiscal year could be distributed by the Company, subject to the following requirements:

The dividends/bonus distribution to the shareholders under this clause shall not be less than 10% of the remaining net profit for the period, and the cash dividend shall not be less than 50% of the total dividends/bonus distribution and the remaining distribution may be in shares dividends. However, if the Company only distributes cash dividend, it can be resolved by special resolution of the board of the directors. For information about the accrual basis of the employees’ and directors’ compensation and the actual appropriations, please refer to Note 6.(12)(D) for details.

When a special reserve is appropriated for cumulative net debit balance reserves from prior periods, the sum of net profit for current period and items other than net profit that are included directly in the unappropriated earnings for current period is used if the prior unappropriated earnings is not sufficient.

The following cash dividends were approved by the board of directors on February 24, 2025.

The dividends per share for 2024 were as follows:

Ordinary shares - cash dividends	2024
	NT$10.47151662 per share (Note), totaling NT$815,089 thousand

The following cash dividends were approved by the board of directors on February 23, 2026.

Note: The Company has issued convertible bonds and employee stock options which then lead to the total amount of the outstanding common shares may vary subsequently. Hence, the Company will adjust dividend distribution ratio before ex-dividend base date. The 2024 adjusted earnings per share was NT$10.39433232.

The dividends per share for 2025 were as follows:

Ordinary shares - cash dividends	2025
	NT$7.20999801 per share, totaling NT$570,574 thousand

Legal reserve

Subsidiaries in China shall appropriate legal reserve fund (recognized under legal reserves) and provide other fund (recognized under liabilities items) from the profit after tax. Legal reserve fund subject to a proportion not less than 10% of the profit after tax after offsetting accumulated losses in prior years and no appropriation shall be made when the accumulated amount reaches 50% of the registered capital. The provision in respect of other fund shall be determined by the Company upon passing of directors' resolution; however, it has not yet been approved as of March 31, 2026.

Appropriation of earnings to legal reserve shall be made until the legal reserve equals ETW's paid-in capital. Legal reserve may be used to offset deficit. If ETW has no deficit and its legal reserve has exceeded 25% of its paid-in capital, the excess may be transferred to capital or distributed in cash.

E. Share-based payment arrangements

Employee stock options

As of March 31, 2026, the Company has no outstanding employee stock options.

Information on employee stock options is as follows:

	For the Three Months Ended March 31, 2026		For the Year Ended December 31, 2025
Employee Stock Options	Number of Options	Weighted-average Exercise Price (NT$)	Number of Options	Weighted-average Exercise Price (NT$)
Balance at the beginning of period	22	16.30	1,328	17.28
Executed	(22)	16.30	(1,266)	17.17
Write-off	-	-	(40)	15.20
Balance at the end of period	-	-	22	16.30
Options exercisable, end of period	-		22

The costs of employee stock options were as follows:

	For the Three Months Ended March 31
	2026	2025
Compensation costs of employee stock options	$-	$91

F. Other equity items

Exchange differences on translating the financial statements of foreign operations

Exchange differences relating to the translation of the results and net assets of the Group’s foreign operations from their functional currencies to the Company’s presentation currency were recognized directly in other comprehensive income and accumulated in the foreign currency translation reserve. When all or a part of the foreign operations are disposed, exchange differences previously accumulated in the foreign currency translation reserve were reclassified to profit or loss on the disposal of the foreign operation.

(12) Consolidated net profit

In addition to the disclosures made in other notes, the consolidated net profit shall include:

A. Net revenue

(a) Contract information

(i) Revenue from the sale of goods

The Group sells audio system-related products and recognizes revenue at which time the goods are delivered to the customer’s specific location. The Group does not provide any after-sales services, such as warranty, right to return, etc. The quotation of products is based on the current market price of the raw materials, the labor input and direct costs, and the expected profit. The term of sales of products are fixed price, not volatile. Since payment terms granted to customers are usually less than 180 days, there is no significant financing component from contracts with customers.

(ii) Revenue from project service (recognized under non-operating income)

Please refer to the remark in Note 6.(12)E.

(b) Contract balances

	March 31, 2026	December 31, 2025
Accounts receivable, net (Note 6.(3))	$1,657,699	$1,782,450

Product category	For the Three Months Ended March 31
	2026	2025
Home audio	$1,599,805	$1,720,586
Personal audio	513,606	738,725
Transducer speaker	85,429	83,880
Others	124,290	148,584
Total	$2,323,130	$2,691,775

B. Depreciation and amortization expenses

	For the Three Months Ended March 31
	2026	2025
Depreciation of property, plant and equipment	$37,589	$40,590
Depreciation of right-of-use assets	20,459	18,850
Amortization of intangible assets	2,713	1,355
Total	$60,761	$60,795

C. Remuneration of directors and key management personnel and employee benefits expense

	For the Three Months Ended March 31
	2026	2025
Remuneration of directors and key management
Short-term benefits	$71,760	$96,538
Post-employment benefits	1,021	1,011
Share-based payments	-	30
Employee benefits
Short-term benefits	242,338	305,059
Post-employment benefits	25,331	23,496
Share-based payments	-	61
Total	$340,450	$426,195

D. Employees' and directors' compensation

Under the Company's Article of Incorporation, the Company should distribute employees' compensation at the rates no less than 1% and no higher than 15% and directors' compensation at the rates no higher than 2%, respectively, of net profit before income tax, employees' and directors' compensation.

For the three months ended March 31, 2026 and 2025, the employees' compensation and directors' compensation are as follows:

Accrual rate

	For the Three Months Ended March 31, 2026	For the Three Months Ended March 31, 2025
Employees’ compensation	3.4%	6.1%
Directors’ compensation	1.7%	1.9%

Amount

	For the Three Months Ended March 31, 2026	For the Three Months Ended March 31, 2025
Employees’ compensation	$2,400	$4,400
Directors’ compensation	$4,900	$14,200

The Group held the board of directors on February 23, 2026, and had the resolution of the employees' and directors' compensation of 2025. The employee's and directors' compensation of 2025 were as follows:

Amount

	For the Year Ended December 31, 2025
Employees’ compensation	$30,641
Directors’ compensation	$15,988

If there is a change in the amounts after the annual consolidated financial statements are authorized for issue, the differences are recorded as a change in the accounting estimate.

There was no significant difference between the actual amounts of employees' and directors' compensation paid and the amounts recognized in the consolidated financial statements for the year ended December 31, 2025.

Information on the employees' compensation and directors' compensation resolved by the Company's board of directors is available at the Market Observation Post System website of the Taiwan Stock Exchange.

E. Other income

	For the Three Months Ended March 31
	2026	2025
Government grants	$745	$773
Project service revenue	18,675	901
Interest income	11,383	17,003
Scrap income	5,096	950
Rental revenue	420	840
Gain on disposal of property, plant and equipment	92	1,923
Reversal of accrued employee’s severance	4,387	3,092
Others	3,464	442
Total	$44,262	$25,924

F. Other losses

	For the Three Months Ended March 31
	2026	2025
Loss on fair value change of financial instruments at FVTPL	$-	$2
Loss on disposal and written off of property, plant and equipment	123	3,702
Others	1,015	194
Total	$1,138	$3,898

G. Finance costs

	For the Three Months Ended March 31
	2026	2025
Guarantee interest on convertible bonds	$-	$66
Interest expense on bonds payable	-	94
Interest on lease liabilities	2,524	3,009
Interest expense arising from bank borrowings	300	-
Others	11	61

Total

$2,835 $3,230

(13) Income taxes

A. Income tax recognized in profit or loss

Major components of tax expense were as follows:

	For the Three Months Ended March 31
	2026	2025
Current tax
In respect of the current year	$18,108	$20,255
Adjustments for prior years	-	8
Deferred tax
In respect of the current year	(2,910)	10
Income tax expense recognized in profit or loss	$15,198	$20,273

The Group uses the estimated effective annual interest rate and calculating the income tax expense of each interim period. Therefore, the Group is unable to disclose the difference between the accounting income and the taxable income.

The Company was incorporated in accordance with the International Business Companies Order issued by the government of the Cayman Islands and is exempted from income tax charged by the government of the Cayman Islands.

The local tax rate for the subsidiaries in the PRC is 25%. However, according to local corporate income tax laws, the applicable preferential income tax is reduced from 25% to 15% once obtained the innovation and high technology enterprise certificates jointly issued by the local tax authority and the Departments of Ministry of Science and Technology and Ministry of Finance of the PRC. The aforementioned certificate must be reviewed and reissued every three years. EAHZ is subject to the applicable preferential income tax rate from 2024 to 2026.

In accordance with Enterprise Income Tax Law of the PRC as well as the interpretations and implementation of some clauses in the arrangement between the Mainland of China and Hong Kong Special Administrative Region on the avoidance of double taxation, if the foreign enterprise allocates dividend to the Hong Kong Company, 5% levy tax is imposed on the earnings distribution when it meets certain conditions.

The tax rate in Hong Kong is a two-level progressive tax. Tax rate for taxable income less than HK$2 million is 8.25%, and for taxable income more than HK$2 million is 16.5%.

The local tax rates for the subsidiaries in Denmark and Singapore are 22% and 17%, respectively. The local tax rate for the subsidiary in Vietnam is 20%. EAVN can enjoy the income tax exemption for the first two years after making profit and proceed with fifty

percent reduction for the four subsequent years. The local tax rate for the subsidiaries in Taiwan is 20%.

B. Income tax assessments

The Company and its subsidiaries are located in the Cayman Islands, the PRC, Hong Kong, Singapore, Vietnam and Denmark. Their tax authorities will not take the initiative to send a tax returns assessment to enterprises. When there are tax disputes, they issue a tax payment notice to enterprises and reserve the right to propose additional taxes. The tax authorities have assessed income tax returns of ETW up to 2024.

(14) Earnings per share

	For the Three Months Ended March 31
	2026	2025
Basic earnings per share	$1.54	$2.50
Diluted earnings per share	$1.54	$2.46

The net profit and weighted average number of ordinary shares outstanding used in the computation of earnings per share are as follows:

	For the Three Months Ended March 31
	2026	2025
Net profit the period attributable to owners of the Company	$121,487	$193,246
Net profit used in the computation of basic earnings per share	$121,487	$193,246
Effect of potentially dilutive net profit:
Convertible bonds (after tax)	-	95
Net profit used in the computation of diluted earnings per share	$121,487	$193,341

No. of Share

	(In Thousands of Shares) For the Three Months Ended March 31
	2026	2025
Weighted average number of ordinary shares used in the computation of basic earnings per share	78,682	77,356
Effect of potentially dilutive ordinary shares:
Employee stock options	2	733
Convertible bonds	-	526

Weighted average number of ordinary shares used in the computation of diluted earnings per share
78,684 78,615

(15) Supplementary cash flow information

Non-cash financing activities

For the Three Months Ended
March 31

Dividends declared but unpaid
2026 2025
$570,574 $815,089

Transactions with related parties

Balance transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note. Besides information disclosed elsewhere in other notes, details of transactions between the Group and other related parties are disclosed below:

Remuneration of Key Management Personnel

The remuneration of directors and key management was determined by the remuneration committee based on the performance of individuals and market trends. Please refer to Note 6.(12)C. for details.

Assets pledged

The following assets were provided as collateral for bank borrowings. Part of loan guarantees is provided by the Chairman of the Company.

	March 31, 2026	December 31, 2025
Intangible assets	$8,643	$8,659
Machineries and office equipment	25,927	26,905
Inventories and accounts receivable	80,949	79,075
Construction in progress	603	461
Total	$116,122	$115,100

Commitments and contingent liabilities

The Group did not have any material contingent liabilities. The commitments not recognized as of the end of the reporting period are as follows:

Property, plant and equipment

March 31, 2026

December 31, 2025

$46,317

$41,138

Losses due to major disasters

None.

Significant subsequent events

None.

Other

(1) DISCLOSURE ON FINANCIAL INSTRUMENTS

A. Capital risk management

The Group's capital risk management policy is consistent as consolidated financial statements for the year ended December 31, 2025. In addition, the Group is not subject to any externally imposed capital requirements.

B. Fair value of financial instruments

(a) Fair value of financial instruments not measured at fair value on a recurring basis

If a non-derivative instrument has short maturity, its future amount receivable and payable approximate its carrying amount, and its carrying amount provides a reasonable basis for estimation of fair value, then the fair value of which shall be estimated based on its carrying amount as shown in the balance sheet. Hence, in addition to the carrying amounts of the following financial instruments approximate their fair values.

Fair value hierarchy

March 31, 2026

	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Domestic – unlisted stocks	$-	$-	$216,000	$216,000
December 31, 2025	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL

Domestic – unlisted stocks

$- $- $216,000 $216,000

There were no measurement transfers between Level 1 and Level 2 of fair value for the three months ended March 31, 2026 and for the year ended December 31, 2025.

(b) Reconciliation of Level 3 fair value measurements of financial instruments

For the three months ended March 31, 2026:

Financial Assets (Liabilities)	FVTPL		Total
	Derivatives	Equity Instruments
Beginning balance	$-	$216,000	$216,000
Recognized in profit or loss	-	-	-
Ending balance	$-	$216,000	$216,000
Recognized in losses - unrealized	$-	$-	$-

For the year ended December 31, 2025:

Financial Assets (Liabilities)	FVTPL		Total
	Derivatives	Equity Instruments
Beginning balance	$2	$131,205	$131,207
Recognized in profit or loss	(2)	84,795	84,793
Ending balance	$-	$216,000	$216,000
Recognized in losses - unrealized	$-	$84,795	$84,795

None.

C. Categories of financial instruments

	March 31, 2026	December 31, 2025
Financial assets
Financial assets at FVTPL
Mandatorily at FVTPL	$216,000	$216,000
Financial assets at amortized cost (Note 1)	3,659,062	3,635,631
Total	$3,875,062	$3,851,631
Financial liabilities
Financial liabilities at amortized cost (Note 2)	$3,313,688	$2,683,053

Note 1: The balance includes financial assets at amortized cost, which comprise cash and bank deposits, accounts receivable, other receivables and guarantee deposits, etc.

Note 2: The balances include financial liabilities at amortized cost, which comprise bank borrowings, accounts payable, other payables and convertible bonds, etc.

D. Financial risk management objectives and policies

The Group’s major financial instruments include cash and cash in bank, accounts receivable, other financial assets, bank borrowings and financial liabilities etc. Details of the aforementioned financial instruments have been disclosed in the consolidated financial statements.

Set out below are the risks related to the financial instruments, policies to mitigate the risks, how the management monitor the risks in order to adopt timely, appropriate and effective measures.

E. Financial risk information

Based on the internal report containing analysis of exposure of and amount involved in risks by financial units, the Group monitors and manages financial risks relating to the enterprise as a whole, the domestic and international financial market and the operations of the Group. These risks include market risk (foreign exchange risk and interest rate risk), credit risk and liquidity risk.

Financial units of the Group constantly report to the management. Management will then monitor the risks and execute policies according to its duties and responsibilities so as to mitigate exposure.

There is no change on the Group’s type of exposure and its management and measurement thereof.

(a) Market risk

The Group’s financial instrument transaction is exposed to foreign exchange risk and interest rate risk (refer to (b) and (c) below).

(b) Foreign exchange risk

The Group has foreign currency-denominated transactions that are exposed to the risk caused by fluctuation of exchange rates in the market. To monitor the risk, the responsible team of the Group reviews constantly the portion of assets and liabilities

that are exposed to the risk and makes appropriate adjustment so as to control any risk arising from fluctuation of exchange rates.

Since the principal currency of the Group is the US dollar, thus the Group is exposed to risk of exchange rate fluctuation. Fortunately, the risk is mitigated as the majority of receivables and payables and bank borrowings are denominated in US dollar.

As of the reporting period, the carrying amounts of the significant foreign currency-denominated assets and liabilities that are expected to be exposed to exchange rates fluctuation were as follows:

	Assets
	March 31, 2026	December 31, 2025
USD	$2,933,363	$3,078,130
	Liabilities
	March 31, 2026	December 31, 2025
USD	$665,901	$553,281

The following table details the Company's sensitivity to a 5% increase and decrease in the foreign currency against the relevant foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management's assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis included only outstanding foreign currency denominated monetary items designated as cash flow hedges and adjusts their translation at the end of the reporting period for a 5% change in foreign currency rates. A positive number below indicates an increase in pre-tax profit associated with currency strengthen 5% against the relevant currency. For a 5% weakening of currency against the relevant currency, there would be an equal and opposite impact on pre-tax profit would be negative.

	Currency USD Impact
	For the Three Months Ended March 31, 2026	For the Year Ended December 31, 2025
Profit or loss	$113,373	$126,240

The management considers that the sensitivity analysis is unrepresentative of the inherent foreign exchange rate risk as the year end exposure does not reflect the exposure during the period.

As the Group does not have any floating-rate borrowings, it is not exposed to interest rate fluctuations.

(d) Credit risk

The Group is exposed to credit risk in the event of the counterparties' failure to perform their obligations under the contracts. The credit risk of the Group is assessed based on the contracts with positive fair values as at the end of the reporting period. Counterparties of the Group are creditworthy financial institutes and corporate entities, and the extent of credit risk that may arise from the counterparties and their creditworthiness are reviewed annually by a special team. Therefore, it is expected that the credit risk is insignificant.

The accounts receivables of the Group concentrate in certain clients who are mainly internationally renowned brands of media players and are not connected. Credit assessments on the financial status of the clients have been conducted. Therefore, it is expected that the credit risk from accounts receivables is minimal.

The maximum exposure of the Group to credit risk is the net amount of carrying amount less amount required to be offset and impairment loss required to be recognized under relevant rules (i.e. carrying amount of financial assets), without taking into account any security and other credit enhancement. The credit risk on derivative financial instruments is limited because the counterparties are banks with high credit ratings assigned by international credit-rating agencies.

(e) Liquidity risk

Appropriate management structure addressing liquidity risk is formulated by the management to monitor short, medium and long term financing and solvency. As such, the Group is not exposed to any liquidity risk attributable to failure to perform obligation under the contract due to inability to finance funds.

The table below analyzes the remaining unexpired maturity of non-derivative financial liabilities with fixed term of repayment based on the undiscounted cash flow of the financial liabilities on the earliest date that repayment shall be made on demand, and the interest and principal are included in the analysis. In respect of the interest cash flow payable at floating rates, the undiscounted interests are estimated based on yield curve as at the end of the reporting period. Maturities of contracts are estimated on the earliest date of repayment on demand. When the amount payable or receivable is not fixed, disclosure of such amount is determined based on the estimated interest rate derived from the yield curve on the balance sheet date.

	March 31, 2026
	Effective Interest Rate	On Demand or Within 1 Year	2 Years to 5 Years	More than 5 Years	Total
Non-interest-bearing liabilities

Accounts payable	-	$2,291,447	$-	$-	$2,291,447
Other payables	-	435,454	-	-	435,454
Dividend payables		570,574	-	-	570,574
Interest bearing liabilities
Lease liabilities	2.23%~5.30%	48,794	142,867	51,523	243,184
Bank borrowings	4.77%~7.01%	17,168	-	-	17,168
	December 31, 2025
---	---	---	---	---	---
	Effective Interest Rate	On Demand or Within 1 Year	2 Years to 5 Years	More than 5 Years	Total
Non-interest bearing liabilities
Accounts payable	-	$1,939,865	$-	$-	$1,939,865
Other payables	-	708,110	-	-	708,110
Interest bearing liabilities
Lease liabilities	2.23%~5.30%	76,440	128,305	58,636	263,381
Bank borrowings	4.74%~7.78%	37,274	-	-	37,274

F. Financial facilities

	March 31, 2026	December 31, 2025
Secured borrowings
Amount unused	$1,359,349	$661,297

G. Significant assets and liabilities denominated in foreign currencies

The following information was aggregated by the foreign currencies other than functional currencies of the Group entities and the exchange rates between foreign currencies and respective functional currencies were disclosed. The significant assets and liabilities denominated in foreign currencies were as follows:

March 31, 2026

	Unit: Foreign Currencies (In Thousands)
	Foreign Currencies	Function Currencies	Exchange Rate (Note)	Carrying Amount (NT$)
Financial assets

Monetary items
USD	$87,355	HKD	31.96	$2,791,428
USD	1,519	NTD	31.96	48,544
USD	438	RMB	31.96	14,005
USD	2,032	DKK	31.96	64,924
USD	453	VND	31.96	14,462
	$91,797			$2,933,363
	Foreign Currencies	Function Currencies	Exchange Rate (Note)	Carrying Amount (NT$)
Financial liabilities
Monetary items
USD	$10,688	HKD	31.96	$341,530
USD	3,429	RMB	31.96	109,563
USD	867	DKK	31.96	27,704
USD	5,855	VND	31.96	187,104
	$20,839			$665,901

December 31, 2025

	Foreign Currencies	Unit: Foreign Currencies (In Thousands)
		Function Currencies	Exchange Rate (Note)	Carrying Amount (NT$)
Financial assets
Monetary items
USD	$93,931	HKD	31.41	$2,950,364
USD	1,702	NTD	31.41	53,454
USD	294	RMB	31.41	9,235
USD	1,599	DKK	31.41	50,211
USD	473	VND	31.41	14,866
	$97,999			$3,078,130
	Foreign Currencies	Function Currencies	Exchange Rate (Note)	Carrying Amount (NT$)
Financial liabilities
Monetary items
USD	$7,931	HKD	31.41	$249,104
USD	5,236	RMB	31.41	164,466
USD	559	DKK	31.41	17,543
USD	3,889	VND	31.41	122,168
	$17,615			$553,281

Note: Exchange rates represent the closing exchange rate of foreign currency into New Taiwan dollars.

Information of foreign exchange (losses) gains is as follows:

	For the Three Months Ended March 31
	2026	2025
Realized foreign exchange (losses) gains	$(27,769)	$30,751
Unrealized foreign exchange gains (losses)	9,760	(6,053)
	$(18,009)	$24,698

It is impractical to disclose net foreign exchange gains (losses) by each significant foreign currency due to the variety of the foreign currency transactions and functional currencies of the group entities.

(2) Reconciliation of liabilities arising from financing activities

For the three months ended March 31, 2026:

	Bank Borrowings	Convertible Bonds	Lease Liability	Total Liabilities from Financing Activities
2026.1.1	$35,078	$-	$256,215	$291,293
Cash flow-principal	(18,865)	-	(22,064)	(40,929)
Interest paid on lease liabilities	-	-	(2,524)	(2,524)
Non-cash changes (Note)	-	-	(2,242)	(2,242)
Exchange rate fluctuations	-	-	6,101	6,101
2026.3.31	$16,213	$-	$235,486	$251,699

For the three months ended March 31, 2025:

	Bank Borrowings	Convertible Bonds	Lease Liability	Total Liabilities from Financing Activities
2026.1.1	$-	$17,654	$146,836	$164,490
Cash flow-principal	-	-	(18,436)	(18,436)
Interest paid on lease liabilities	-	-	(3,009)	(3,009)
Non-cash changes (Note)	-	94	8,703	8,797
Exchange rate fluctuations	-	-	1,486	1,486
2026.3.31	$-	$17,748	$135,580	$153,328

Note: Including amortization of convertible payables, conversion of convertible bonds into equity, acquiring assets by leasing and financial costs of lease liabilities.

Segment information

Operating Segments

IFRS 8 requires that operating units shall be identified based on the internal report to the chief decision maker for periodical review for the purpose of resource allocation to each component of the Group and assessment of their performance. Since the Group is engaged in the processing of speaker systems, and AV electronics products, under the model that the Hong Kong subsidiaries outsource production orders to the subsidiaries in PRC and Vietnam, there is no other segment which has allocated resources or whose performance has been assessed other than processing of speaker systems, earphones and AV electronics products.

Since the Group’s speaker systems, earphones and AV electronics sectors have been fully integrated and centrally managed and the financial management information provided to chief decision maker has also been changed to a single segment, the entire Group’s resources to be allocated to and evaluate the overall performance, no longer distinguish from the speaker system, headphones and audio-visual electronic sector. As a result, the operating information to the chief decision maker for periodical review is measured in the same way as the financial statements, which is reported by a single segment. For the three months ended March 31, 2026 and 2025, the revenue and operating results of the operating segment can be found in the consolidated income statement for the three months ended March 31, 2026 and 2025. The product revenue of the Group please refer to Note 6.(12)A.

Separately disclosed items

(1) Information about significant transactions and investees:

A. Financing provided to others (Table 1)

B. Endorsements/guarantees provided (Table 2)

C. Marketable securities held (excluding investments in subsidiaries, associates and joint ventures) (Table 3)

D. Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 4)

E. Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 5)

F. Intercompany relationships and significant intercompany transactions (Table 6)

(2) Information on investees

Information of investee companies (not including investees in Mainland China) (Table 7).

(3) Information on investments in mainland China

A. Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area (Table 8).

B. Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses (Table 8):

(a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period
(b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period
(c) The amount of property transactions and the amount of the resultant gains or losses
(d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes
(e) The highest balance, the end of period balance, the interest rate range, and total current period interest with respect to the financing of funds
(f) Other transactions that have a material effect on the profit or loss for the year or on the financial position, such as the rendering or receipt of services

EASTECH HOLDING LIMITED AND SUBSIDIARIES
FINANCING PROVIDED TO OTHERS
FOR THE THREE MONTHS ENDED MARCH 31, 2026
(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Table 1

No.	Lender	Borrower	Financial Statement Account	Related Party	Highest Balance for the Period	Ending Balance	Actual Borrowing Amount	Interest Rate (%)	Nature of Financing	Business Transaction Amount	Reasons for Short-term Financing	Allowance for Impairment Loss	Collateral		Financing Limit for Each Borrower (Note 1)	Aggregate Financing Limit (Note 1)	Note
													Item	Value
1	EAH	ScS	Other receivables from related parties	Yes	$52,218	$52,106	$52,106	5%	The need for short-term financing	$-	Operating capital	$-	-	$-	$1,589,446	$1,589,446	-
2	ETH	EAVN	Other receivables from related parties	Yes	$67,074	$67,074	$67,074	-	The need for short-term financing	$-	Operating capital	$-	-	$-	$1,536,021	$1,536,021	-

Note1: The individual financing amount provided to parent and a subsidiary that EAH holds, directly or indirectly, 100% of the voting shares shall not exceed 100% of the net worth of EAH.
The individual financing amount provided to the listed parent company and a subsidiary that ETH holds, directly or indirectly, 100% of the voting shares shall not exceed 300% of the net worth of ETH.

Note2: According to the Company and its subsidiaries' guidance of financing provide to others, the amount of financing limit is based on the net value of the most recent financial statements reviewed or audited by CPA. The information on the limit of endorsements/ guarantees announced by the Company in March 2026 is different from the amounts listed above, the reason is that the financial statements of EAH and ETH for the months ended March 31, 2026 have not been reviewed by CPA at the announcement moment, thus the Company announced the information based on the financial statements for the year ended December 31, 2025.

EASTECH HOLDING LIMITED AND SUBSIDIARIES
ENDORSEMENTS/GUARANTEES PROVIDED
FOR THE THREE MONTHS ENDED MARCH 31, 2026
(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Table 2

No.	Endorser/Guarantor	Endorsee/Guarantee		Limit on Endorsement/ Guarantee Given on Behalf of Each Party	Maximum Amount Endorsed/ Guaranteed During the Period	Outstanding Endorsement/ Guarantee at the End of the Period	Actual Borrowing Amount	Amount Endorsed/ Guaranteed by Collateral	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/ Guarantee Limit (Note2)	Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries	Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent	Endorsement/ Guarantee Given on Behalf of Companies in Mainland China	Note
		Name	Relationship (Note1)
0	The Company	EAH	(2)	$12,520,936	$303,573	$303,573	$-	$-	9.70%	$12,520,936	Y	N	N	Note 2, 3
0	The Company	ETH	(2)	12,520,936	1,054,515	1,054,515	-	-	33.69%	12,520,936	Y	N	N	Note 2, 3
0	The Company	EAVN	(2)	12,520,936	191,730	191,730	-	-	6.13%	12,520,936	Y	N	N	Note 2, 3

Note 1: Relationship of the guarantee:
(2) Entities that Company hold, directly or indirectly, more than 50% of voting shares.
(3) Companies hold, directly or indirectly, more than 50% of voting share of entities.

Note 2: The Company's limitations of the endorsements/guarantees are set forth below:
(1) The total amount of the guarantee provided by the Company to other entities shall not exceed four hundred percent (400%) of the Company's consolidated net worth.
(2) The total amount of the guarantee provided by the Company and its subsidiaries to any individual entity shall not exceed five hundred percent (500%) of the Company's consolidated net worth.

Note 3: According to the Company's guidance of endorsement/guarantees provided, the amount of endorsement/guarantees is based on the net value of the most recent financial statements reviewed or audited by CPA. The information on the limit of endorsements/guarantees announced by the Company on March 2026 is different from the amounts listed above, the reason is that the financial statements of the Company for the three months ended March 31, 2026 have not been reviewed by CPA at the announcement moment, thus the Company announced the information based on the financial statements for the year ended December 31, 2025.

EASTECH HOLDING LIMITED AND SUBSIDIARIES
MARKETABLE SECURITIES HELD
AS OF MARCH 31, 2026
(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Table 3

Holding Company Name	Type and Name of Marketable	Type and Name of Marketable	Relationship with the Holding Company	Financial Statement Account	MARCH 31, 2026				Note 1
					Number of Shares	Carrying Amount	Percentage of Ownership	Fair Value
ETW	Taiwan publicly traded stocks	Eastech Holding Limited	Parent and subsidiary	FVTPL - non-current	453,000	$35,561	1%	$35,561	Note 1
ETW	Taiwan non-publicly traded stocks	HT Precision Technologies, Inc.	-	FVTPL - non-current	7,326,155	216,000	19%	216,000	-

Note 1: The stocks are held by the Company’s subsidiary; hence, the investment is accounted for treasury shares.

EASTECH HOLDING LIMITED AND SUBSIDIARIES

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL

FOR THE THREE MONTHS ENDED MARCH 31, 2026

(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Table 4

Buyer	Related Party	Relationship	Transaction Details				Abnormal Transaction		Notes/Accounts Receivable (Payable)		Note
			Purchase/ Sale	Amount	% of Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
EAH	EAVN	Parent and subsidiary	Purchase	$847,562	77%	90 days	$-	-	$(459,376)	(35%)	Note 1
ETH	EAHZ	Fellow subsidiary	Purchase	672,575	61%	90 days	-	-	(829,779)	(72%)	Note 1
ETH	EAVN	Fellow subsidiary	Purchase	476,120	43%	90 days	-	-	(121,238)	(10%)	Note 1
EAVN	EAH	Parent and subsidiary	Purchase	262,044	20%	90 days	-	-	459,376	52%	Note 1
EAVN	ESZ	Fellow subsidiary	Purchase	413,538	32%	90 days	-	-	(411,675)	(36%)	Note 1
EAHZ	ETH	Fellow subsidiary	Sale	(672,575)	(79%)	90 days	-	-	829,779	89%	Note 1
EAH	EAVN	Parent and subsidiary	Sale	(262,044)	(22%)	90 days	-	-	(459,376)	(35%)	Note 1
ESZ	EAVN	Fellow subsidiary	Sale	(413,538)	(100%)	90 days	-	-	411,675	100%	Note 1
EAVN	EAH	Parent and subsidiary	Sale	(847,562)	(63%)	90 days	-	-	459,376	52%	Note 1
EAVN	ETH	Fellow subsidiary	Sale	(476,120)	(35%)	90 days	-	-	121,238	13%	Note 1

Note 1: Intercompany transactions are eliminated in consolidated financial statement.

EASTECH HOLDING LIMITED AND SUBSIDIARIES

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL

AS OF MARCH 31, 2026

(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Table 5

Company Name	Related Party	Relationship	Ending Balance	Turnover Rate	Overdue		Amount Received in Subsequent Period	Allowance for Impairment Loss
					Amount	Actions Taken
EAHZ	ETH	Fellow subsidiary	$829,779	2.97	$-	-	$829,779	$-
ESZ	EAVN	Fellow subsidiary	411,675	4.93	-	-	-	-
EAVN	EAH	Parent and subsidiary	459,376	8.72	-	-	196,808	-
EAVN	ETH	Fellow subsidiary	121,238	8.63	-	-	102,372	-

EASTECH HOLDING LIMITED AND SUBSIDIARIES
INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2026
(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Table 6
| No. (Note 1) | Investee Company | Counterparty | Relationship (Note 2) | Transactions | | | |
| --- | --- | --- | --- | --- | --- | --- | --- |
| | | | | Financial Statement Accounts | Amount | Payment Terms | % of Total Sales or Assets (Note 3) |
| 0 | EASTECH | EAH | 1、2 | Other income | $596,724 | Dividend Income | 26% |
| 0 | EASTECH | EAH | 1、2 | Other receivables from and other payables to related parties | 602,661 | Dividends receivable/payable and receipts/payments on behalf of others | 9% |
| 1 | EAH | EAHZ | 1、2 | Other income | 62,919 | Dividend Income | 3% |
| 1 | EAH | ScS | 1、2 | Other receivables from and other payables to related parties | 52,106 | Short-term financing | 1% |
| 1 | EAH | EAVN | 1、2 | Net sales and purchase | 262,044 | Credit on transfer pricing policy | 11% |
| 1 | EAH | EAHZ | 1、2 | Receivables from and payables to related parties | 59,719 | 90 days | 1% |
| 2 | EAVN | EAH | 1、2 | Net sales and purchase | 847,562 | Credit on transfer pricing policy | 36% |
| 2 | EAVN | ETH | 3 | Net sales and purchase | 476,120 | Credit on transfer pricing policy | 20% |
| 2 | EAVN | ETH | 3 | Receivables from and payables to related parties | 121,238 | 90 days | 3% |
| 2 | EAVN | EAH | 1、2 | Receivables from and payables to related parties | 459,376 | 90 days | 7% |
| 3 | EAHZ | EAH | 1、2 | Net sales and purchase | 30,671 | Credit on transfer pricing policy | 1% |
| 3 | EAHZ | ETH | 3 | Net sales and purchase | 672,575 | Credit on transfer pricing policy | 29% |
| 3 | EAHZ | ETH | 3 | Receivables from and payables to related parties | 829,779 | 90 days | 12% |
| 4 | ESZ | EAVN | 3 | Net sales and purchase | 413,538 | Credit on transfer pricing policy | 18% |
| 4 | ESZ | EAVN | 3 | Receivables from and payables to related parties | 411,675 | 90 days | 6% |
| 5 | ETW | ETH | 3 | Other income and general and administrative expenses administrative | 12,300 | 90 days | 1% |
| 6 | ETH | EAVN | 3 | Other receivables from and other payables to related parties | 67,074 | Short-term financing | 1% |
| 6 | ETH | ScS | 3 | Net sales and purchase | 34,357 | Credit on transfer pricing policy | 1% |
| 6 | ETH | ScS | 3 | Receivables from and payables to related parties | 72,849 | 90 days | 1% |

Note 1: For the disclosure of intercompany transactions within the Group, individual code numbers are assigned to each entity of the Group, which are set forth below:
(1) No. 0 represents the parent company.
(2) The code number for the subsidiaries is listed below:
No. 1: EAH; No. 2: EAVN; No. 3: EAHZ; No. 4: ESZ; No. 5: ETW; No. 6: ETH.
Note 2: There are three categories of the related party transactions:
(1) Parent company to its subsidiary.
(2) Subsidiary to its parent company.
(3) Subsidiary to other subsidiary.
Note 3: In calculation the weight percentages of related party transactions over total sales or total assets, the consolidated total assets is used for calculating the balance sheet item, whereas the consolidated sales up to date is used for calculating the net income items.

EASTECH HOLDING LIMITED AND SUBSIDIARIES
INFORMATION ON INVESTEES
FOR THE THREE MONTHS ENDED MARCH 31, 2026
(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Table 7

Investor Company	Investee Company (Note 1、2)	Location	Main Businesses and Products	Original Investment Amount		As of March 31, 2026			Net Income (Loss) of the Investee	Share of Profit (Loss) (Note 1)
				March 31, 2026	December 31, 2025	Number of Shares	%	Carrying Amount (Note 1)
The Company	EAH	Hong Kong	Sales of speaker systems and headphones	$1,341,546	$1,341,546	80,000,000	100%	$1,341,546	$126,970	$-
EAH	ScS	Denmark	Research, development, production and sales of high-end transducers	250,489	250,489	1,600,000	100%	131,611	(6,053)	-
EAH	ESG	Singapore	Research and development of system architecture/new product concept/state-of-the-art products/sound and acoustics advance technology	1,056	1,056	50,000	100%	1,056	1,757	-
EAH	EAVN	Vietnam	Production, assembly and sales of transducer speakers, bluetooth speakers and headphones	238,206	238,206	-	100%	238,206	17,478	-
EAH	ETW	Taiwan	New technology research, product design and development	150,000	150,000	15,000,000	100%	120,000	(10,642)	-
EAH	ETH	Hong Kong	Sales of smart speakers, AV electronics home entertainment systems and headphones	201,653	201,653	115,000,000	100%	201,653	33,520	-

Note 1: Based on IAS 27 Paragraph 10: The investments in subsidiaries are account for at cost less impairment. Dividends from a subsidiary are recognized in profit or loss.
Note 2: Please refer to Table 8 for the information on investments in mainland China.

EASTECH HOLDING LIMITED AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA

FOR THE THREE MONTHS ENDED MARCH 31, 2026

(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Table 8
1. Information of investee company, main business and products, total amount of paid-in capital, method of investment, remittance of funds, net income of the investee, % of ownership, carrying amount of investments and repatriation of investment income:

Investee Company	Main Businesses and Products	Total Amount of Paid-in Capital (Note 1)	Method of Investment (Note 2)	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2026	Remittance of Funds		Accumulated Outward Remittance for Investment from Taiwan as of March 31, 2026	Net Income of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss) (Note 3)	Carrying Amount as of March 31, 2026 (Note 3)	Accumulated Repatriation of Investment Income as of March 31, 2026	Note
					Outward	Inward
EAHZ	Production, assembly and sales of speaker systems, accessories, headphones, smart speakers and AV electronics home entertainment systems	US 19,303 in thousand	(3)	$-	$-	$-	$-	$8,817	100.00%	$-	$560,860	$-	-
ESZ	Import and export trading of audio accessories, machinery and equipment, etc.	RMB 2,000 in thousand	(2)	-	-	-	-	(9,874)	100.00%	-	-	-	-
EASZ	New technology research, product design and development	RMB 6,000 in thousand	(2)	-	-	-	-	(469)	100.00%	-	-	-	Note 4

Upper limit on the amount of investment in mainland China:

Accumulated Outward Remittance for Investment in Mainland China as of March 31, 2026	Investment Amount Authorized by Investment Commission, MOEA	Upper Limit on the Amount of Investment Stipulated by Investment Commission, MOEA
N/A (Note 2)	N/A (Note 2)	N/A (Note 2)

The significant transactions (including purchases and sales, property transactions, and the rendering or receipt of services) with investee companies in mainland China, either directly or indirectly through a third party: Please see Table 6.
The negotiable instrument endorsements or guarantees or pledges with investee companies in mainland China, either directly or indirectly through a third party: Table 2.
The financing of funds with investee companies in mainland China, either directly or indirectly through a third party: Table 1.

Note 1: The amounts are represented registered capital.

Note 2: The Method of Investment is divided into 3 types as follows:

(1) Direct investment from the Company.
(2) Indirect investment via the Company's subsidiary in Hong Kong.
(3) The Company was established in the Cayman Islands and is a foreign company listed in Taiwan. The companies located in China had established before the Company listed in Taiwan, so the main source of investment funds were not come from Taiwan.

Note 3:

(1) If the investee company is in preparation, and no investment income and losses are recognized, it should be noted.
(2) Recognized investment income (loss):

A. The basis for investment income (loss) recognition is from the financial statements audited and attested by international accounting firm which has cooperative relationship with accounting firm in R.O.C.

B. The basis for investment income (loss) recognition is from the financial statements audited and attested by R.O.C. parent company's CPA.

C. Other. (Based on IAS 27: The investments in subsidiaries are account for at cost less impairment. Dividends from a subsidiary are recognized in profit or loss.)

Note 4: EASZ was established on March 2, 2026, with registered capital of RMB 6,000 thousand. The capital was fully received in April 2026.

AI assistant

EASTECH Interim / Quarterly Report 2026

52463_rns_2026-05-22_f880a3a3-3292-42ef-877b-2bd02943263b.pdf

INDEPENDENT AUDITORS' REVIEW REPORT

Introduction

Scope of Review

Conclusion

EASTECH HOLDING LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

EASTECH HOLDING LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

EASTECH HOLDING LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

March 31, 2026

December 31, 2025

(4) Other receivables and prepayments

B. Lease liabilities

C. Material lease-in activities and terms

Legal reserve

E. Share-based payment arrangements

Employee stock options

Accrual rate

Amount

Amount

(13) Income taxes

B. Income tax assessments

(14) Earnings per share

No. of Share

F. Financial facilities

G. Significant assets and liabilities denominated in foreign currencies

March 31, 2026

EASTECH HOLDING LIMITED AND SUBSIDIARIES

EASTECH HOLDING LIMITED AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA

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EASTECH — Interim / Quarterly Report 2026

52463_rns_2026-05-22_f880a3a3-3292-42ef-877b-2bd02943263b.pdf

INDEPENDENT AUDITORS' REVIEW REPORT

Introduction

Scope of Review

Conclusion

EASTECH HOLDING LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

EASTECH HOLDING LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

EASTECH HOLDING LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

March 31, 2026

December 31, 2025

(4) Other receivables and prepayments

B. Lease liabilities

C. Material lease-in activities and terms

Legal reserve

E. Share-based payment arrangements

Employee stock options

Accrual rate

Amount

Amount

(13) Income taxes

B. Income tax assessments

(14) Earnings per share

No. of Share

F. Financial facilities

G. Significant assets and liabilities denominated in foreign currencies

March 31, 2026

EASTECH HOLDING LIMITED AND SUBSIDIARIES

EASTECH HOLDING LIMITED AND SUBSIDIARIES

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