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ENNOSTAR INC.
PARENT COMPANY ONLY FINANCIAL
STATEMENTS AND INDEPENDENT AUDITORS'
REPORT
DECEMBER 31, 2025 AND 2024

For the convenience of readers and for information purpose only, the auditors' report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors' report and financial statements shall prevail.

INDEPENDENT AUDITORS' REPORT
PWCR25000437

To the Board of Directors and Shareholders of ENNOSTAR Inc.

Opinion

We have audited the accompanying parent company only balance sheets of ENNOSTAR Inc. (the “Company”) as at December 31, 2025 and 2024, and the parent company only statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the parent company only financial statements, including a summary of material accounting policies.

In our opinion, based on our audits and the reports of other independent auditors, as described in the other matters section of our report, the accompanying parent company only financial statements present fairly, in all material respects, the parent company only financial position of the Company as at December 31, 2025 and 2024, and its parent company only financial performance and its parent company only cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the parent company only Financial Statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountants of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient

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and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the parent company only financial statements of the current period. These matters were addressed in the context of our audit of the parent company only financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

Key audit matters in relation to the parent company only financial statements for the year ended December 31, 2025 are outlined as follows:

Investments accounted for using equity method-evaluation of inventories

Description

The subsidiaries of the Company is primarily engaged in manufacturing and sales of LED wafers, chips, packages and modules. Due to rapid technological developments, short product lifespans and frequent fluctuations of market prices, the risk of decline in market value and obsolescence for inventories is high. The subsidiaries of the Company evaluates net realized values for inventories which aged over a specific period of time and specific obsolete inventories in order to provide allowance for valuation loss. Since the identification of the above obsolete inventories and their respective net realizable values are subject to management's judgment, it was identified as one of the key audit matters.

How our audit addressed the matter

Our key audit procedures performed in respect of the above included the following:

Obtained an understanding of the Company and subsidiaries's operations and the nature of its industry and interviewed with management to understand the probability of future sales for those out-of-date inventories and to evaluate the reasonableness of allowance for valuation loss.

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Obtained and validated the accuracy of the detailed listings of inventories aged over a specific period of time and specific obsolete inventories. Validated information of historical sales and discounts for those obsolete inventories to assess the reasonableness of policies in providing allowance for inventory valuation loss.

Other matter – Audit by Other Independent Auditors

We did not audit the 2025 and 2024 financial statements of certain equity investments accounted for under the equity method. Those financial statements were audited by other independent auditors, whose reports thereon were furnished to us, and our opinion expressed herein, insofar as it relates to the amounts included in the parent company only financial statements and certain information disclosed in Note 13 relative to these investments, was based solely on the reports of the other independent auditors. These equity investments amounted to NT$1,517,837 thousand and NT$1,738,261 thousand, constituting 3.65% and 3.71% of the parent company only total assets as of December 31, 2025 and 2024, and their comprehensive income (loss) (including share of loss of associates and joint ventures accounted for under equity method and share of other comprehensive income/(loss) of associates and joint ventures accounted for under equity method) amounted to NT$37,451 thousand and (NT$276,315) thousand, constituting (1.07%) and (46.43%) of the parent company only comprehensive income (loss) for the years then ended.

Responsibilities of management and those charged with governance for the parent company only financial statements

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and for such internal control as management determines is necessary to enable the preparation of the parent company only financial statements that are free from material misstatement, whether due to fraud or error.

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In preparing the parent company only financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance, including the audit committee, are responsible for overseeing the Company’s financial reporting process.

Auditor’s responsibilities for the audit of the parent company only financial statements

Our objectives are to obtain reasonable assurance about whether the parent company only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these parent company only financial statements.

As part of an audit in accordance with Standards on Auditing of the Republic of China, we exercise professional judgment and professional skepticism throughout the audit.

We also:

Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve

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collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Li, Tien-Yi
Chou, Chien-Hung
For and on behalf of PricewaterhouseCoopers, Taiwan
March 6, 2026

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

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

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ENNOSTAR INC.
PARENT COMPANY ONLY BALANCE SHEETS
DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

Assets	Notes	December 31, 2025		December 31, 2024
		AMOUNT	%	AMOUNT	%
Current assets
1100	Cash and cash equivalents	6(1)	$ 593,889	2	$ 1,387,760	3
1200	Other receivables		834	-	2,491	-
1210	Other receivables - related parties	7	169,574	-	145,766	-
1410	Prepayments	7	24,038	-	7,846	-
1470	Other current assets		3	-	3	-
11XX	Current Assets		788,338	2	1,543,866	3
Non-current assets
1535	Non-current financial assets at amortised cost	6(2) and 8	-	-	120,000	-
1550	Investments accounted for using equity method	6(3)	40,735,267	98	45,115,194	97
1600	Property, plant and equipment	6(4)	17,133	-	13,473	-
1755	Right-of-use assets	6(5)	1,840	-	1,123	-
1780	Intangible assets	6(6)	2,815	-	1,808	-
1900	Other non-current assets		25,014	-	25,005	-
15XX	Non-current assets		40,782,069	98	45,276,603	97
1XXX	Total assets		$ 41,570,407	100	$ 46,820,469	100
Liabilities and Equity
Current liabilities
2100	Short-term borrowings	6(7)	$ -	-	$ 450,000	1
2200	Other payables		141,978	-	172,603	-
2220	Other payables-related parties	7	5,181	-	1,750	-
2230	Current tax liabilities		980	-	11,112	-
2280	Current lease liabilities		1,557	-	879	-
2300	Other current liabilities		11,488	-	8,050	-
21XX	Current Liabilities		161,184	-	644,394	1
Non-current liabilities
2580	Non-current lease liabilities		304	-	248	-
2XXX	Total Liabilities		161,488	-	644,642	1
Equity
	Share capital	6(9)
3110	Share capital - common stock		7,379,405	18	7,379,405	16
	Capital surplus	6(10)
3200	Capital surplus		36,135,091	87	38,403,057	82
	Retained earnings	6(11)
3350	Accumulated deficit		( 2,686,904) ( 7) (		( 1,422,637) ( 3)
	Other equity interest	6(12)
3400	Other equity interest		716,490	2	1,951,165	4
3500	Treasury shares	6(9)	( 135,163)	-	( 135,163)	-
3XXX	Total equity		41,408,919	100	46,175,827	99
3X2X	Total liabilities and equity		$ 41,570,407	100	$ 46,820,469	100

The accompanying notes are an integral part of these parent company only financial statements.

ENNOSTAR INC.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2025 AND 2024

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

	Items	Notes	Year ended December 31
			2025		2024
			AMOUNT	%	AMOUNT	%
4000	Sales revenue	6(13) and 7	$ 694,780	100	$ 582,208	100
5000	Operating costs	6(3)(14)(15)	( 3,408,247)	( 491)	( 1,989,596)	( 342)
5900	Gross loss from operations		( 2,713,467)	( 391)	( 1,407,388)	( 242)
5950	Net gross loss from operations		( 2,713,467)	( 391)	( 1,407,388)	( 242)
6900	Operating loss		( 2,713,467)	( 391)	( 1,407,388)	( 242)
	Non-operating income and expenses
7100	Interest income		14,422	2	17,606	3
7010	Other income		3,489	1	1,419	-
7020	Other gains and losses		( 1,839)	-	269	-
7050	Finance costs		( 4,984)	( 1)	919	-
7000	Total non-operating income and expenses		11,088	2	18,375	3
7900	Loss before income tax		( 2,702,379)	( 389)	( 1,389,013)	( 239)
7950	Income tax (expense) benefit	6(16)	( 12,575)	( 2)	3,939	1
8200	Loss for the year		( $ 2,714,954)	( 391)	( $ 1,385,074)	( 238)
	Other comprehensive (loss) income
	Components of other comprehensive (loss) income that will not be reclassified to profit or loss
8330	Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using equity method, components of other comprehensive (loss) income that will not be reclassified to profit or loss	6(3)
8349	Income tax related to components of other comprehensive income that will not be reclassified to profit or loss	6(3)(16)
8310	Components of other comprehensive (loss) income that will not be reclassified to profit or loss		250,311	36	( 115,994)	( 20)
	Components of other comprehensive (loss) income that will be reclassified to profit or loss		( 661,496)	( 95)	1,328,058	228
	Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using equity method, components of other comprehensive (loss) income that will be reclassified to profit or loss	6(3)
8399	Income tax related to components of other comprehensive income that will be reclassified to profit or loss		( 117,422)	( 17)	652,570	112
8360	Components of other comprehensive (loss) income that will be reclassified to profit or loss		341	-	423	-
8300	Other comprehensive (loss) income		( 117,081)	( 17)	652,147	112
8500	Total comprehensive (loss) income for the year		( $ 778,577)	( 112)	$ 1,980,205	340
	Total comprehensive (loss) income		( $ 3,493,531)	( 503)	$ 595,131	102
	Loss per share (NT$)	6(17)
9750	Total basic loss per share		( $ 3.69)	( $ 1.87)
9850	Total diluted loss per share		( $ 3.69)	( $ 1.87)

The accompanying notes are an integral part of these parent company only financial statements.

ENNDSTAR INC.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY

YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

	Notes	Share capital - common stock	Capital surplus	Retained earnings			Other equity interest		Treasury stocks	Total equity
				Legal reserve	Special reserve	Unappropriated retained earnings (Accumulated deficit)	Cumulative translation differences of foreign operations	Unrealised gain (loss) from financial assets measured at fair value through other comprehensive income
2024
Balance at January 1, 2024		$ 7,529,405	$ 46,447,060	$ 216,945	$ 154,927	($ 6,814,704)	($ 208,746)	$ 184,450	($ 135,163)	$ 47,374,174
Loss for the year		-	-	-	-	(1,385,074)	-	-	-	(1,385,074)
Other comprehensive income for the year		-	-	-	-	36,558	652,147	1,291,500	-	1,980,205
Total comprehensive income (loss)		-	-	-	-	(1,346,516)	652,147	1,291,500	-	595,131
Appropriation of 2023 earnings
Reversal of special reserve		-	-	-	(54,843)	54,843	-	-	-	-
Legal reserve used to offset accumulated deficits		-	-	(216,945)	-	216,945	-	-	-	-
Special reserve used to offset accumulated deficits		-	-	-	(100,084)	100,084	-	-	-	-
Capital surplus used to offset accumulated deficits	6(10)	-	(6,442,833)	-	-	6,442,833	-	-	-	-
Cash dividends from capital surplus	6(10)	-	(677,646)	-	-	-	-	-	-	(677,646)
Changes in ownership interests in subsidiaries accounted for using equity method	6(10)	-	(399,721)	-	-	-	-	-	-	(399,721)
Changes in equity of associates and joint ventures accounted for using equity method	-	-	(11,226)	-	-	-	-	-	-	(11,226)
Adjustments of capital surplus for the Company's 6(10) cash dividends received by subsidiaries	-	-	1,178	-	-	-	-	-	-	1,178
Difference between consideration and carrying amount of subsidiaries acquired and disposed	6(10)	-	(14,701)	-	-	(42,308)	-	-	-	(57,009)
Employee stock ownership trust cancellation return	6(10)	-	1,596	-	-	-	-	-	-	1,596
Retirement of treasury share	6(9)	(150,000)	(500,650)	-	-	-	-	-	650,650	-
Purchase of treasury shares	6(9)	-	-	-	-	-	-	-	(650,650)	(650,650)
Disposal of equity investments measured at fair value through other comprehensive income	6(12)	-	-	-	-	(31,814)	-	31,814	-	-
Balance at December 31, 2024		$ 7,379,405	$ 38,403,057	$ -	$ -	($ 1,422,637)	$ 443,401	$ 1,507,764	($ 135,163)	$ 46,175,827
2025
Balance at January 1, 2025		$ 7,379,405	$ 38,403,057	$ -	$ -	($ 1,422,637)	$ 443,401	$ 1,507,764	($ 135,163)	$ 46,175,827
Loss for the year		-	-	-	-	(2,714,954)	-	-	-	(2,714,954)
Other comprehensive income (loss) for the year		-	-	-	-	68,619	(117,081)	(730,115)	-	(778,577)
Total comprehensive loss		-	-	-	-	(2,646,335)	(117,081)	(730,115)	-	(3,493,531)
Capital surplus used to offset accumulated deficits	6(10)	-	(1,422,637)	-	-	1,422,637	-	-	-	-
Cash dividends from capital surplus	6(10)	-	(664,146)	-	-	-	-	-	-	(664,146)
Changes in ownership interests in subsidiaries accounted for using equity method	6(10)	-	11,334	-	-	-	-	-	-	11,334
Changes in equity of associates and joint ventures accounted for using equity method	6(10)	-	(202,516)	-	-	(394,100)	-	-	-	(596,616)
Adjustments of capital surplus for the Company's 6(10) cash dividends received by subsidiaries		-	1,154	-	-	-	-	-	-	1,154
Difference between consideration and carrying amount of subsidiaries acquired and disposed	6(10)	-	(88)	-	-	(33,948)	-	-	-	(34,036)
Employee stock ownership trust cancellation return	6(10)	-	1,492	-	-	-	-	-	-	1,492
Other changes in capital surplus	6(10)	-	7,441	-	-	-	-	-	-	7,441
Disposal of equity investments measured at fair value through other comprehensive income	6(12)	-	-	-	-	387,479	-	(387,479)	-	-
Balance at December 31, 2025		$ 7,379,405	$ 36,135,091	$ -	$ -	($ 2,686,904)	$ 326,320	$ 390,170	($ 135,163)	$ 41,408,919

The accompanying notes are an integral part of these parent company only financial statements.

ENNOSTAR INC.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

	Notes	Year ended December 31
		2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Loss before tax		($ 2,702,379)	($ 1,389,013)
Adjustments
Adjustments to reconcile profit (loss)
Depreciation	6(4)(5)(14)	4,976	2,269
Amortization	6(6)(14)	2,114	406
Interest expense		4,984	919
Interest income		(14,422)	(17,606)
Share of loss of associates and joint ventures accounted for using equity method	6(3)
Loss on disposal of investments		2,726,992	1,445,894
Changes in operating assets and liabilities		1,924	-
Changes in operating assets
Other receivables-related parties		(23,808)	(26,886)
Prepayments		(4,273)	7,027
Changes in operating liabilities
Other payables		(31,167)	40,094
Other payables-related parties		3,431	(2,343)
Other current liabilities		3,438	5,341
Cash (outflow) inflow generated from operations		(28,190)	66,102
Interest received		14,917	16,473
Dividend received		802,380	4,004,759
Interest paid		(5,842)	-
Income tax paid		(21,545)	(5,041)
Net cash flows from operating activities		761,720	4,082,293
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from disposal of financial assets at amortised cost		120,000	-
Proceeds from disposal of subsidiaries	6(18)	970	-
Proceeds from disposal of investments accounted for under equity method	6(18)
Acquisition of property, plant and equipment	6(18)	(7,094)	(3,248)
Increase in refundable deposits		(9)	-
Decrease in other receivables due from related parties		-	200,000
Acquisition of intangible assets	6(18)	(13,293)	(2,214)
Net cash flows from investing activities		101,494	194,538
CASH FLOWS FROM FINANCING ACTIVITIES
(Decrease) increase in short-term loans	6(19)	(450,000)	450,000
Decrease in guarantee deposits received	6(19)	-	(8)
Repayments of principle portion of lease liabilities	6(19)	(1,872)	(219)
Cash dividends paid		(664,146)	(677,646)
Purchase of treasury shares		-	650,650)
Capital increase of a subsidiary		(550,000)	(2,627,400)
Proceeds from disposal of ownership interests in subsidiaries		-	12,709
Employee stock ownership trust cancellation return		1,492	1,596
Return of unclaimed overdue dividends by shareholders		7,199	-
Other financing activities		242	-
Net cash flows used in financing activities		(1,657,085)	(3,491,618)
Net (decrease) increase in cash and cash equivalents		(793,871)	785,213
Cash and cash equivalents at beginning of year		1,387,760	602,547
Cash and cash equivalents at end of year		$ 593,889	$ 1,387,760

The accompanying notes are an integral part of these parent company only financial statements.

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ENNOSTAR INC.

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

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

1. HISTORY AND ORGANIZATION

Ennostar Inc. (the “Company”) was incorporated on January 6, 2021. The Company’s share have been traded on the Taiwan Stock Exchange in the Republic of China since the date of its incorporation. The share exchange transaction, wherein the Company was established by Ennostar Corporation (formerly Epistar Corporation, “Ennostar”) and acquired all issued and outstanding ordinary shares of Ennostar and Lextar Electronics Corp. (“Lextar”) by way of share exchange, has been approved both at Ennostar’s board meeting on June 18, 2020 and special shareholders’ meeting on August 7, 2020. The share exchange was conducted at an exchange ratio of 1 ordinary share of Ennostar and Lextar for 0.5 and 0.275 ordinary share of the Company respectively. As a result, Ennostar and Lextar became wholly-owned subsidiaries of the Company on January 6, 2021, and both of Ennostar’s and Lextar’s ordinary shares have been delisted while the ordinary shares of the Company were listed starting from the same date under the symbol “3714”.

The Company was mainly engaged in the management of investee business. The subsidiaries were engaged in the research and development, manufacturing and sales of EPI wafers and chips of A1GaInP, AlGaAs and InGaN and light-emitting diode packages and modules.

2. THE DATE OF AUTHORIZATION FOR ISSUANCE OF THE PARENT COMPANY ONLY FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORIZATION

These parent company only financial statements were authorized for issuance by the Board of Directors on March 6, 2026.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

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

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

New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board (IASB)
Amendments to IAS 21, ‘Lack of exchangeability’	January 1, 2025

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

(2) Effect of new issuances of or amendments to IFRS Accounting Standards as endorsed by the FSC but not yet adopted by the Company

New standards, interpretations and amendments endorsed by the FSC effective from 2026 are as follows:

New Standards, Interpretations and Amendments	Effective date by IASB
Amendments to IFRS 9 and IFRS 7, ‘Amendments to the classification and measurement of financial instruments’	January 1, 2026
Amendments to IFRS 9 and IFRS 7, ‘Contracts referencing nature-dependent electricity’	January 1, 2026
IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendment to IFRS 17, ‘Initial application of IFRS 17 and IFRS 9 – comparative information’	January 1, 2023
Annual Improvements to IFRS Accounting Standards—Volume 11	January 1, 2026
The above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment.

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

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

New Standards, Interpretations and Amendments	Effective date by IASB
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’	To be determined by IASB
IFRS 18, ‘Presentation and disclosure in financial statements’	January 1, 2027(Note)
IFRS 19, ‘Subsidiaries without public accountability: disclosures’	January 1, 2027
Amendments to IAS 21, ‘Translation to a Hyperinflationary Presentation Currency’	January 1, 2027

Note: The FSC has announced in a press release on September 25, 2025 that public companies will apply IFRS 18 starting from the fiscal year 2028. Additionally, entities can choose to adopt IFRS 18 earlier based on their requirements after the FSC endorses IFRS 18.

Except for the following, the above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment. The quantitative impact will be disclosed when the assessment is complete.

IFRS 18, ‘Presentation and disclosure in financial statements’

IFRS 18, ‘Presentation and disclosure in financial statements’ replaces IAS 1. The standard introduces a defined structure of the statement of profit or loss, disclosure requirements related to management-defined performance measures, and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes.

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4. SUMMARY OF MATERIAL ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these parent company only financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

The parent company only financial statements of the Company have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers”.

(2) Basis of preparation

A. Except for the following items, these parent company only financial statements have been prepared under the historical cost convention:

(a) Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.

(b) Financial assets at fair value through other comprehensive income.

(c) Defined benefit liabilities recognized based on the net amount of pension fund assets less present value of defined benefit obligation.

B. The preparation of financial statements in compliance with IFRS Accounting Standards, IAS, IFRIC® Interpretations, and SIC® Interpretations as endorsed by the FSC (collectively referred herein as the “IFRSs”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the parent company only financial statements are disclosed in Note 5.

(3) Foreign currency translation

Items included in the financial statements of the Company’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The parent company only financial statements are presented in New Taiwan dollars, which is the Company’s functional currency.

Foreign currency transactions and balances

A. Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognized in profit or loss in the period in which they arise.

B. Monetary assets and liabilities denominated in foreign currencies at the period end are re-translated at the exchange rates prevailing at the end of the reporting period. Exchange differences arising upon re-translation at the end of the reporting period are recognized in profit or loss.

C. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the end of the reporting period; their translation differences are recognized in profit or loss as part of the fair value gain or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the end of the reporting period; their translation differences are recognized in other comprehensive income. However, non-monetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.

D. All other foreign exchange gains and losses based on the nature of those transactions are presented in the statement of comprehensive income within “other gains and losses”.

(4) Classification of current and non-current items

A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:

(a) Assets that are expected to be realized, or are intended to be sold or consumed in the normal operating cycle;

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

(d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to pay off liabilities for at least twelve months after the reporting period.

B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:

(a) Liabilities that are expected to be settled in the normal operating cycle;

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

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

(5) Cash equivalents

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

(6) Financial asset at amortised cost

A. Financial assets at amortised cost are those that meet all of the following criteria:

(a) The objective of the Company’s business model is achieved by collecting contractual cash flows.

(b) The assets’ contractual cash flows represent solely payments of principal and interest.

B. On a regular way purchase or sale basis, financial assets at amortised cost are recognised and derecognised using trade date accounting.

C. At initial recognition, the Company measures the financial assets at fair value plus transaction costs. Interest income from these financial assets is included in finance income using the effective interest method. A gain or loss is recognised in profit or loss when the asset is derecognised or impaired.

D. The Company’s time deposits which do not fall under cash equivalents are those with a short maturity period and are measured at initial investment amount as the effect of discounting is immaterial.

(7) Derecognition of financial assets

The Company derecognizes a financial asset when one of the following conditions is met:

A. The contractual rights to receive cash flows from the financial asset expire.

B. The contractual rights to receive cash flows from the financial asset have been transferred and the Company has transferred substantially all risks and rewards of ownership of the financial assets.

C. The Company neither retains nor transfers substantially all risks and rewards of ownership of the financial asset; however, it has not retained control of the financial asset.

(8) Investments accounted for using equity method - subsidiaries and associates

A. Subsidiaries are all entities (including structured entities) controlled by the Company. The Company controls an entity when the Company is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

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B. Inter-company transactions, balances and unrealised gains or losses on transactions between companies within the Company are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Company.

C. The Company’s share of its associates’ post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Company’s share of losses in a subsidiary equals or exceeds its interest in the subsidiary, the Company continues to recognise losses proportionate to its ownership.

D. Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity.

E. When the Company loses control of a subsidiary, the Company remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognised in profit or loss. All amounts previously recognised in other comprehensive income in relation to the subsidiary are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Company loses control of a subsidiary, all gains or losses previously recognised in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

F. Associates are all entities over which the Company has significant influence but no control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using equity method and are initially recognized at cost.

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

H. When changes in an associate’s equity that are not recognized in profit or loss or other comprehensive income of the associate and such changes does not affect the Company’s ownership percentage of the associate, the Company recognizes change in ownership interests in the associate in ‘capital surplus’ in proportion to its ownership.

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

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J. In the case that an associate issues new shares and the Company does not subscribe or acquire new shares proportionately, which results in a change in the Company's ownership percentage of the associate but maintains significant influence on the associate, then 'capital surplus' and 'investments accounted for using equity method' shall be adjusted for the increase or decrease of its share of equity interest. If the above condition causes a decrease in the Company's ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of.

K. Upon loss of significant influence over an associate, the Company remeasures any investment retained in the former associate at its fair value. Any difference between fair value and carrying amount is recognised in profit or loss.

L. When the Company disposes its investment in an associate, if it loses significant influence over this associate, the amounts previously recognized in other comprehensive income in relation to the associate, are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it still retains significant influence over this associate, then the amounts previously recognized in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.

M. When the Company disposes its investment in an associate, if it loses significant influence over this associate, the amounts previously recognised as capital surplus in relation to the associate are transferred to profit or loss. If it retains significant influence over this associate, then the amounts previously recognised as capital surplus in relation to the associate are transferred to profit or loss proportionately.

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

O. Pursuant to the "Regulations Governing the Preparation of Financial Reports by Securities Issuers," profit (loss) of the current period and other comprehensive income in the parent company only financial statements shall be equal to the amount attributable to owners of the parent in the consolidated financial statements. Owners' equity in the parent company only financial statements shall be equal to equity attributable to owners of the parent in the consolidated financial statements.

(9) Property, plant and equipment

A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalized.

B. Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.

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D. The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets' residual values and useful lives differ from previous estimates or the patterns of consumption of the assets' future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, 'Accounting Policies, Changes in Accounting Estimates and Errors', from the date of the change.

The estimated useful lives of property, plant and equipment are as follows:

Office equipment	2 ~ 20 years
Leasehold improvements	3 ~ 15 years

(10) Leasing arrangements (lessee)—right-of-use assets/ lease liabilities

A. Leases are recognised as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Company. For short-term leases or leases of low-value assets, lease payments are recognised as an expense on a straight-line basis over the lease term.

B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate.

Lease payments are comprised of the following:

(a) Fixed payments, less any lease incentives receivable;
(b) Variable lease payments that depend on an index or a rate;
(c) Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.

The Company subsequently measures the lease liability at amortised cost using the interest method and recognises interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognised as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

C. At the commencement date, the right-of-use asset is stated at cost comprising the following:

(a) The amount of the initial measurement of lease liability;
(b) Any lease payments made at or before the commencement date;
(c) Any initial direct costs incurred by the lessee; and
(d) An estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease.

The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset's useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognised as an adjustment to the right-of-use asset.

D. For lease modifications that decrease the scope of the lease, the lessee shall decrease the carrying amount of the right-of-use asset and remeasure the lease liability to reflect the partial or full termination of the lease, and recognise the difference in profit or loss. For all other lease modifications, the lessee shall remeasure the lease liability and adjust the right-of-use asset, correspondingly.

(11) Intangible assets

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

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(12) Impairment of non-financial assets

A. The Company assesses at each reporting date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. Except for goodwill, when the circumstances or reasons for recognizing impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortized historical cost would have been if the impairment had not been recognized.

B. The recoverable amounts of goodwill and intangible assets that have not yet been available for use are evaluated periodically. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. Impairment loss of goodwill previously recognized in profit or loss shall not be reversed in the following years.

C. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units, or Companies of cash-generating units, that is/are expected to benefit from the synergies of the business combination. Each unit or Company of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at the operating segment level.

(13) Borrowings

A. Borrowings comprise of long-term and short-term bank borrowings. Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds and the redemption value is recognized in profit or loss over the period of the borrowings using the effective interest method.

B. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the drawn-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalized as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

(14) Derecognition of financial liabilities

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

(15) Employee benefits

A. Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognized as expenses in that period when the employees render service.

B. Pensions

For defined contribution plans, the contributions are recognized as pension expenses when they are due on an accrual basis. Prepaid contributions are recognized as an asset to the extent of a cash refund or a reduction in the future payments.

C. Employees’ compensation and directors’ remuneration

Employees’ compensation and directors’ remuneration are recognized as expenses and liabilities, provided that such recognition is required under legal obligation or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates.

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(16) Income tax

A. The tax expense for the period comprises current and deferred tax. Tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or items recognized directly in equity, in which cases the tax is recognized in other comprehensive income or equity.

B. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year when the stockholders resolve to retain the earnings.

C. Deferred income tax is recognized, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the parent company only financial statements. However, the deferred income tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Company and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred income tax is determined using tax rates and laws that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

D. Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. At each reporting date, unrecognized and recognized deferred income tax assets are reassessed.

(17) Share capital

A. Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or stock options are shown in equity as a deduction, net of tax, from the proceeds.

B. Where the Company repurchases the Company's equity share capital that has been issued, the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the Company's equity holders. Where such shares are subsequently reissued, the difference between their carrying amount and any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the Company's equity holders.

(18) Dividends

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

CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

The preparation of these parent company only financial statements requires management to make critical judgements in applying the Company's accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year; and the related information is addressed below:

(1) Critical judgements in applying the Company's accounting policies

None.

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(2) Critical accounting estimates and assumptions

Investments accounted for using equity method-evaluation of inventories

As inventories are stated at the lower of cost and net realizable value, the subsidiaries of the Company must determine the net realizable value of inventories at the end of the reporting period using judgements and estimates. Due to the rapid technology innovation, the subsidiaries of the Company evaluates the amounts of obsolete inventories or inventories without market selling value at the end of the reporting period, and writes down the cost of inventories to the net realizable value. Such an evaluation of inventories requires management to make critical judgement, so there might be material changes to the evaluation.

As of December 31, 2025, the carrying amount of inventories of the subsidiaries of the Company was $4,289,645.

DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Demand deposits	$ 18,889	$ 22,168
Time deposits	465,000	1,219,671
Bonds sold under repurchase agreement	110,000	145,921
	$ 593,889	$ 1,387,760

The Company transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.

(2) Financial assets at amortised cost

Items	December 31, 2025	December 31, 2024
Non-current items:
Restricted bank deposits	$ -	$ 120,000

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

	Year end December 31, 2025	Year end December 31, 2024
Interest income	$ 619	$ 1,482

B. As of December 31, 2024, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at amortised cost held by the Company were $120,000.

C. Details of the Company's financial assets at amortised cost pledged to others as collateral are provided in Note 8.

D. Information relating to financial risk of financial assets at amortised cost is provided in Note 12(2). The counterparties of the Company's investments in certificates of deposit are financial institutions with high credit quality, so the Company expects that the probability of counterparty default is remote.

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(3) Investments accounted for using equity method

	December 31, 2025	December 31, 2024
Subsidiaries:
Ennostar Corporation	$ 29,415,886	$ 33,053,517
Lextar Electronics Corp.	8,535,332	9,846,938
Harvestar Investment Corp.	906,852	614,511
Calystar Investment Corp.	610,530	362,891
Amengine Corporation	-	4,045
	39,468,600	43,881,902
Associates:
Tyntek Corporation	$ 616,919	$ 625,132
LEADSTAR Micro-Crystal Display Corporation (JiangSu) Ltd.	357,353	330,280
GCS Holdings, Inc.	292,395	277,880
	1,266,667	1,233,292
	$ 40,735,267	$ 45,115,194

A. Subsidiaries

Information on subsidiaries is provided in Note 4(3) of the 2025 consolidated financial statements.

B. Associates

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

As of December 31, 2025 and 2024, the carrying amount of the Company's individually immaterial associates amounted to $1,266,667 and $1,233,292, respectively.

Attributable to the Company:	Year end December 31, 2025	Year end December 31, 2024
Profit (loss) for the year from continuing operations	$ 22,297	($ 70,005)
Other comprehensive (loss) income	( 5,724)	35,093
Total comprehensive income (loss)	$ 16,573	($ 34,912)

C. The investment loss from equity method investees for the years ended December 31, 2025 and 2024 amounted to $2,726,992 and $1,445,894, respectively.

D. The other comprehensive (loss) income from equity method investees for the years ended December 31, 2025 and 2024 amounted to ($778,577) and $1,980,205, respectively.

E. The fair value of the Company's material associates with quoted market prices is as follows:

	December 31, 2025	December 31, 2024
GCS Holdings, Inc.	$ 2,062,898	$ 1,227,808
Tyntek Corporation	409,343	544,997
	$ 2,472,241	$ 1,772,805

(4) Property, plant and equipment

	Office equipment	Leasehold improvements	Total
At January 1, 2025
Cost	$ 5,294	$ 12,478	$ 17,772
Accumulated depreciation and impairment	( 949)	( 3,350)	( 4,299)
	$ 4,345	$ 9,128	$ 13,473
2025
Opening net book amount at January 1	$ 4,345	$ 9,128	$ 13,473
Additions	6,803	-	6,803
Depreciation charge	( 1,809)	( 1,334)	( 3,143)
Closing net book amount at December 31	$ 9,339	$ 7,794	$ 17,133
At December 31, 2025
Cost	$ 12,097	$ 12,478	$ 24,575
Accumulated depreciation and impairment	( 2,758)	( 4,684)	( 7,442)
	$ 9,339	$ 7,794	$ 17,133
	Office equipment	Leasehold improvements	Total
At January 1, 2024
Cost	$ 1,379	$ 11,699	$ 13,078
Accumulated depreciation and impairment	( 340)	( 2,021)	( 2,361)
	$ 1,039	$ 9,678	$ 10,717
2024
Opening net book amount at January 1	$ 1,039	$ 9,678	$ 10,717
Additions	3,915	779	4,694
Depreciation charge	( 609)	( 1,329)	( 1,938)
Closing net book amount at December 31	$ 4,345	$ 9,128	$ 13,473
At December 31, 2024
Cost	$ 5,294	$ 12,478	$ 17,772
Accumulated depreciation and impairment	( 949)	( 3,350)	( 4,299)
	$ 4,345	$ 9,128	$ 13,473

(5) Leasing arrangements—lessee

A. The Company leases assets is consists of a company vehicle. Rental contracts are typically made for periods of 2 to 3 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.

B. The carrying amount of right-of-use assets and the depreciation charge are as follows:

| | December 31, 2025
Carrying amount | Year ended December 31, 2025
Depreciation charge |
| --- | --- | --- |
| Transportation equipment | $ 1,840 | $ 1,833 |
| | December 31, 2024
Carrying amount | Year ended December 31, 2024
Depreciation charge |
| Transportation equipment | $ 1,123 | $ 331 |

C. For the years ended December 31, 2025 and 2024, the additions to right-of-use assets were $2,550 and $1,454, respectively.

D. The information on profit and loss accounts relating to lease contracts is as follows:

| | Year end
December 31, 2025 | Year end
December 31, 2024 |
| --- | --- | --- |
| Items affecting profit or loss | | |
| Interest expense on lease liabilities | $ 51 | $ 10 |
| Expense on short-term lease contracts | 29 | 690 |

E. For the years ended December 31, 2025 and 2024, the Company's total cash outflow for leases were $1,900 and $975, respectively.

(6) Intangible assets

	2025	2024
	Software	Software
At January 1
Cost	$ 2,214	$ -
Accumulated amortisation and impairment	( 406)	-
	$ 1,808	$ -
Opening net book amount as at January 1	$ 1,808	$ -
Additions	3,121	2,214
Amortisation charge	( 2,114)	( 406)
Closing net book amount at December 31	$ 2,815	$ 1,808
At December 31
Cost	$ 5,335	$ 2,214
Accumulated amortisation and impairment	( 2,520)	( 406)
	$ 2,815	$ 1,808

Details of amortisation on intangible assets are as follows:

| | Year end
December 31, 2025 | Year end
December 31, 2024 |
| --- | --- | --- |
| Operating costs | $ 2,114 | $ 406 |

(7) Short-term borrowings

December 31, 2025: None.
Type of borrowings	December 31, 2024	Interest rate range	Collateral
Bank borrowings
Unsecured borrowings	$ 450,000	2.84%	None

(8) Pensions

A. Effective July 1, 2005, the Company and its domestic subsidiaries have established a defined contribution pension plan (the "New Plan") under the Labor Pension Act (the "Act"), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company and its domestic subsidiaries contribute monthly an amount based on 6% of the employees' monthly salaries and wages to the employees' individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.

B. The pension costs under the defined contribution pension plans of the Company for the years ended December 31, 2025 and 2024 were $22,867 and $19,874, respectively.

(9) Share capital

A. As of December 31, 2025, the Company’s authorized capital was $15,000,000, consisting of 1,500,000 thousand shares of ordinary stock (including 50,000 thousand shares reserved for employee stock options), and the paid-in capital was $7,379,405 with a par value of $10 (in dollars) per share.

Movements of the Company’s outstanding ordinary shares are as follows (expressed in thousands of shares):

	2025	2024
At January 1	736,658	751,658
Purchase of treasury shares	-	(15,000)
At December 31	736,658	736,658

B. The stockholders at their annual stockholders’ meeting on May 31, 2022 adopted a resolution to raise additional cash through private placement with the effective date set on July 8, 2022, which will be used for capital expenditure of constructing/building a 6-inch wafer plant for Micro LEDs and purchasing the equipment related to epitaxy and LED chips, etc. The resolution issue 70,000 thousand shares of ordinary shares at a price of NT$51.82 per share for a total amount of $3,627,400 through private placement and had been registered. Pursuant to the Securities and Exchange Act of the ROC, the common shares raised through the private placement are subject to certain transfer restrictions and cannot be listed on the stock exchange until three years after they have been issued and have applied for retroactive handling of public issuance procedures. Other than these restrictions, the rights and obligations of the ordinary shares raised through the private placement are the same as other issued common shares.

C. Treasury shares

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

(Unit: share in thousands/ dollars in thousands)

Reason for reacquisition	2025
	At January 1	Increase	Decrease	At December 31	Book value
Held by subsidiaries	1,282	-	-	1,282	$ 135,163
			2024
Reason for reacquisition	At January 1	Increase	Decrease	At December 31	Book value
Held by subsidiaries	1,282	-	-	1,282	$ 135,163
Maintain the company’s credit and shareholders’ rights	-	15,000	(15,000)	-	-

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

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

(d) Pursuant to the rules governing share repurchase by the Company, treasury shares should be reissued to the employees within three years from the reacquisition date and shares not reissued within the three-year period are to be retired. Treasury shares to enhance the Company’s credit rating and the stockholders’ equity should be retired within six months of acquisition.

(e) The retirement procedure of the 15,000 thousand treasury shares that were purchased by the Company to enhance the Company’s credit rating and the stockholders’ equity had been completed. In addition, the registration for the change had been completed on October 15, 2024.

~25~

D. Information of the Company's shares held by subsidiaries is as follows:

	December 31, 2025		December 31, 2024
Lighting Investment Corporation	1,282 thousand shares		1,282 thousand shares
Book value	$	135,163	$	135,163
Fair value	$	45,845	$	53,603

(10) Capital surplus

Pursuant to the Company Act, capital surplus, including additional paid-in capital in excess of par and donation, shall be exclusively used to cover accumulated deficit or to issue new stock or cash to shareholders in proportion to their ownership when the Company has no accumulated deficit. However, pursuant to the R.O.C. Securities and Exchange Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stock and donations can be capitalized once a year, provided that the Company has no accumulated deficit and the amount to be capitalized does not exceed 10% of the paid-in capital. If the Company's surplus reserves are insufficient to cover capital losses, it may not use capital reserves to supplement them.

	2025
	Share premium	Treasury share transactions	Changes in ownership interests in subsidiaries using equity method	Change in net equity of associates and joint ventures accounted for using equity method	Other
At January 1	$ 37,876,528	$ 270,407	$ 53,606	$ 202,516	$ -
Cash dividends	( 664,146)	-	-	-	-
Offset deficit	( 1,422,637)	-	-	-	-
Change in equity of associates and joint ventures accounted for using equity method	-	-	-	( 202,516)	-
Difference between consideration and carrying amount of subsidiaries acquired or disposed	-	-	( 88)	-	-
Changes in ownership interests in subsidiaries accounted for using equity method	-	-	11,334	-	-
Adjustments of capital surplus for the Company's cash dividends received by subsidiaries	-	1,154	-	-	-
Employee stock ownership trust cancellation return	1,492	-	-	-	-
Return of unclaimed overdue dividends by shareholders	7,199	-	-	-	-
Other	-	-	-	-	242
At December 31	$ 35,798,436	$ 271,561	$ 64,852	$ -	$ 242

	2024
	Share premium	Treasury share transactions	Changes in ownership interests in subsidiaries accounted for using equity method	Change in net equity of associates and joint ventures accounted for using equity method
At January 1	$ 45,765,290	$ 86,753	$ 381,275	$ 213,742
Cash dividends	( 677,646)	-	-	-
Offset deficit	( 6,442,833)	-	-	-
Change in equity of associates and joint ventures accounted for using equity method	-	-	-	( 11,226)
Difference between consideration and carrying amount of subsidiaries acquired or disposed	-	-	( 14,701)	-
Changes in ownership interests in subsidiaries accounted for using equity method	-	( 86,753)	( 312,968)	-
Adjustments of capital surplus for the Company's cash dividends received by subsidiaries	-	1,178	-	-
Retirement of treasury shares	( 769,879)	269,229	-	-
Employee stock ownership trust cancellation return	1,596	-	-	-
At December 31	$ 37,876,528	$ 270,407	$ 53,606	$ 202,516

(11) Retained earnings

A. In accordance with the Company's Articles of Incorporation, 10% of current year's earnings, after paying all taxes and dues and covering prior years' losses, shall be appropriated as legal reserve until the total equals the issued share capital. Special reserve shall be appropriated or reversed when needed. The remaining earnings along with the prior years' accumulated unappropriated earnings are considered as distributable earnings, and shall be distributed by the Board of Directors. When issuing new shares, the distribution shall be submitted through a resolution at the shareholders' meeting. If the distribution is in cash, it shall be resolved by the Board of Directors. The distribution shall be based on the proportion of shares held by each shareholder.

B. The Company appropriates earnings based on the factors such as current and future investment environment, capital needs, domestic and overseas competition and capital budget, along with the consideration of shareholders' interest and capital adequacy. The appropriation of cash dividends shall not be lower than 10% of the total dividend appropriated to shareholders.

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

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

E. The appropriations of 2023 loss and dividends had been resolved at the shareholders' meeting on May 24, 2024. It was decided to offset the loss with capital surplus and distribute cash dividends of $677,646 (0.9 dollar per share).

F. The appropriation of 2024 loss and dividends had been resolved at the shareholders' meeting on May 23, 2025. It was decided to offset the loss with capital surplus. On the same day, the Board of Directors approved the cash dividends distribution from capital surplus of $664,146 (approximately $0.9 dollars per share).

G. The appropriations of 2025 loss had been approved by the Board of Directors on March 6, 2026. It was decided to offset the loss with capital surplus.

(12) Other equity items

	2025
	Currency translation	Unrealized gain or loss	Total
At January 1	$ 443,401	$ 1,507,764	$ 1,951,165
Revaluation - gross	-	( 980,426)	( 980,426)
Revaluation - tax	-	250,311	250,311
Disposal of investments in equity instruments designated at fair value through other comprehensive income	-	( 387,479)	( 387,479)
Currency translation
-Group	( 117,422)	-	( 117,422)
-Tax on Group	341	-	341
At December 31	$ 326,320	$ 390,170	$ 716,490
	2024
	Currency translation	Unrealized gain or loss	Total
At January 1	($ 208,746)	$ 184,450	($ 24,296)
Revaluation - gross	-	1,400,160	1,400,160
Revaluation - tax	-	( 108,660)	( 108,660)
Disposal of investments in equity instruments designated at fair value through other comprehensive income	-	31,814	31,814
Currency translation
-Group	652,570	-	652,570
-Tax on Group	( 423)	-	( 423)
At December 31	$ 443,401	$ 1,507,764	$ 1,951,165

(13) Operating revenue

	Year end December 31, 2025	Year end December 31, 2024
Other operating revenue	$ 694,780	$ 582,208

(14) Expenses by nature

	Year end December 31, 2025	Year end December 31, 2024
Employee benefit expenses	$ 571,586	$ 467,514
Depreciation	$ 4,976	$ 2,269
Amortisation	$ 2,114	$ 406

(15) Employee benefit expenses

| | Year end
December 31, 2025 | Year end
December 31, 2024 |
| --- | --- | --- |
| Wages and salaries | $ 486,870 | $ 403,326 |
| Labor and health insurance expenses | 35,923 | 27,953 |
| Pension costs | 22,867 | 19,874 |
| Other personnel expenses | 25,926 | 16,361 |
| | $ 571,586 | $ 467,514 |

A. According to the Articles of Incorporation of the Company, the Company shall distribute employees' compensation and directors' remuneration based on 0.1%~15% and no higher than 2% of the distributable profit of the current period, respectively. If the Company has accumulated deficit, earnings should be reserved to cover losses. For the aforementioned distributed employees' compensation, the Company shall distribute no less than 20% for rank-and-file employees' compensation.

B. For the years ended December 31, 2025 and 2024, the employees' compensation and directors' remuneration were not estimated, because the Company incurred a loss during this period.

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

(16) Income tax

A. Income tax expense (benefit)

(a) Components of income tax expense (benefit):

| | Year end
December 31, 2025 | Year end
December 31, 2024 |
| --- | --- | --- |
| Current tax on profits for the year | $ 11,173 | $ 16,153 |
| Prior year income tax underestimation (overestimation) | 1,402 | (20,092) |
| Income tax expense (benefit) | $ 12,575 | ($ 3,939) |

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

| | Year end
December 31, 2025 | Year end
December 31, 2024 |
| --- | --- | --- |
| Change in fair value of financial assets at fair value through other comprehensive (income) loss | ($ 250,105) | $ 108,484 |
| Currency translation differences | 88 | 253 |
| Share of other comprehensive (income) loss of | (635) | 346 |
| Remeasurement of defined benefit obligations | - | 7,334 |
| Total | ($ 250,652) | $ 116,417 |

B. Reconciliation between income tax expense (benefit) and accounting profit

| | Year end
December 31, 2025 | | Year end
December 31, 2024 | |
| --- | --- | --- | --- | --- |
| Tax calculated based on loss before tax and statutory tax rate | ($) | 540,476 | ($) | 277,803 |
| Expenses disallowed and tax exempt income by tax regulation | | 556,626 | | 278,705 |
| Temporary differences not recognised as deferred tax liabilities and assets | ( | 4,977) | | 15,251 |
| Prior year income tax underestimation (overestimation) | | 1,402 | ( | 20,092) |
| Income tax expense (benefit) | $) | 12,575 | ($) | 3,939 |

C. Expiration dates of unused tax losses and amounts of unrecognised deferred tax assets are as follows: None.

D. The amounts of deductible temporary difference that are not recognised as deferred tax assets are as follows:

	December 31, 2025	December 31, 2024
Deductible temporary differences	$ 24,883	$ 76,257

E. The Company's income tax returns through 2023 have been assessed and approved by the Tax Authority.

(17) Loss per share

	Year ended December 31, 2025
	Amount after tax	Weighted average number of outstanding ordinary shares (share in thousands)	Loss per share (in dollars)
Basic loss and diluted loss per share
Loss for the year	($ 2,714,954)	736,568	($ 3.69)
	Year ended December 31, 2024
	Amount after tax	Weighted average number of outstanding ordinary shares (share in thousands)	Loss per share (in dollars)
Basic loss and diluted loss per share
Loss for the year	($ 1,385,074)	741,912	($ 1.87)

(18) Supplemental cash flow information

Investing activities with partial cash payments

| | Year end
December 31, 2025 | Year end
December 31, 2024 |
| --- | --- | --- |
| Purchase of property, plant and equipment | $ 6,803 | $ 4,694 |
| Add: Opening balance of payable on equipment | 1,856 | 410 |
| Less: Ending balance of payable on equipment | ( 1,565) | ( 1,856) |
| Cash paid during the year | $ 7,094 | $ 3,248 |

~31~

Purchase of intangible assets
Add: Ending balance of prepayments
Less: Ending balance of payables
(including non-current portion)
Cash paid during the year

Year end
December 31, 2025
$ 3,121
11,919
( 1,747 )
$ 13,293
Year end
December 31, 2024
$ 2,214
Year end
December 31, 2025
$ 1,890
Year end
December 31, 2025

Proceed from disposal of subsidiaries and associates
(19) Changes in liabilities from financing activities

2025

	Short-term borrowings	Lease liabilities	Liabilities from financing activities-gross
At January 1	$ 450,000	$ 1,127	$ 451,127
Changes in cash flow from financing activities	( 450,000)	( 1,872)	( 451,872)
Effect of interest	-	51	51
Changes in other non-cash items	-	2,555	2,555
At December 31	$ -	$ 1,861	$ 1,861

2024

	Short-term borrowings	Guarantee deposits received	Lease liabilities	Liabilities from financing activities-gross
At January 1	$ -	$ 8	$ -	$ 8
Changes in cash flow from financing activities	450,000	( 8)	( 219)	449,773
Effect of interest	-	-	10	10
Changes in other non-cash items	-	-	1,336	1,336
At December 31	$ 450,000	$ -	$ 1,127	$ 451,127

~32~

7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

Names of related parties	Relationship with the Company
Ennostar Corporation	Subsidiary of the Company
Lextar Electronics Corp.	Subsidiary of the Company
Amengine Corporation	Subsidiary of the Company(Note 1)
Unikorn Semiconductor Corporation	Subsidiary of the Company
Trendylite Corporation	Subsidiary of the Company
Vogito Innovation Co., Ltd.	Subsidiary of the Company
Wellybond Corporation	Subsidiary of the Company
Hexawave, Inc.	Subsidiary of the Company(Note 2)
LEADSTAR Micro-Crystal Display Corporation(Jiangsu) Ltd.	Associates
AUO Education Service Corp. (AUES)	Other related parties
AET Corporation	Other related parties

Note 1: Because the company's shares held by the Company were sold and the Company resigned the director's position, the relationship between two companies was changed from subsidiary party to non-related party since June 2025.

Note 2: Because the company's shares held by the Company were sold and the Company resigned the director's position, the relationship between two companies was changed from subsidiary party to non-related party since September 2025.

(2) Significant related party transactions

A. Operating revenue:

| | Year end
December 31, 2025 | Year end
December 31, 2024 |
| --- | --- | --- |
| Ennostar Corporation | $ 449,254 | $ 390,142 |
| Lextar Electronics Corp. | 245,526 | 184,991 |
| Other subsidiaries | - | 6,558 |
| Associates | - | 517 |
| | $ 694,780 | $ 582,208 |

Service agreements are all signed with related parties, so there is no comparison to third parties.

B. Receivables from related parties:

	December 31, 2025	December 31, 2024
Other receivables:
Ennostar Corporation	$ 107,696	$ 100,104
Lextar Electronics Corp.	61,745	45,442
Other subsidiaries	133	220
	$ 169,574	$ 145,766

The other receivables from related parties are mainly from services. Receivables are not pledged to others and have no interest and allowance for uncollectible accounts receivable.

C. Payables from related parties:

	December 31, 2025	December 31, 2024
Other payables:
Ennostar Corporation	$ 3,354	$ 1,481
Unikorn Semiconductor Corporation	1,404	136
Other subsidiaries	318	133
Other related parties	105	-
	$ 5,181	$ 1,750

The payables to related parties arise mainly from collections and payments on behalf of others. The payables bear no interest.

D. Prepaid expense

	December 31, 2025	December 31, 2024
Other related parties	$ -	$ 68

E. Loans to /from related parties:

Loans to related parties:

(a) Outstanding balance:

As of December 31, 2025 and 2024, there were no loans to/from related parties.

(b) Interest income

	Year end December 31, 2025	Year end December 31, 2024
Unikorn Semiconductor Corporation	$ -	$ 4,084

The loans to related parties are repayable monthly and carry interest at 2.15% per annum for the years ended December 31, 2024. The principal will be repaid upon maturity.

(3) Key management compensation

	Year end December 31, 2025	Year end December 31, 2024
Salaries and other short-term employee benefits	$ 64,077	$ 68,123
Post-employment benefits	405	524
Termination benefits	559	-
Total	$ 65,041	$ 68,647

PLEDGED ASSETS

The Company's asserts pledged as collateral are as follows:

Pledged asset	Book value		Purpose
	December 31, 2025	December 31, 2024
Time deposits
(Shown in "Non-current financial assets at amortised cost")	$ -	$ 120,000	Long-term borrowings

SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

None.

SIGNIFICANT DISASTER LOSS

None.

SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

None

~34~

12. OTHERS

(1) Capital risk management

The Company’s capital management policy is established taking into account the industry characteristics, the Company’s future development and changes in external environments. The Company plans the working capital, capital expenditures, investments and dividends required for the future based on the capital management policy, makes financial analysis, and examines its capital structure periodically and makes appropriate adjustments to ensure that the Company may grow and operate indefinitely.

(2) Financial instruments

A. Financial instruments by category

	December 31, 2025	December 31, 2024
Financial assets
Financial assets at amortised cost
Cash and cash equivalents	$ 593,889	$ 1,387,760
Financial assets at amortised cost	-	120,000
Other receivables (including related parties)	170,408	148,257
Guarantee deposits paid	25,014	25,005
Other financial assets	3	3
	$ 789,314	$ 1,681,025
Financial liabilities
Financial liabilities at amortised cost
Short-term borrowings	$ -	$ 450,000
Other payables (including related parties)	147,159	174,353
	$ 147,159	$ 624,353
Lease liabilities (including current portion)	$ 1,861	$ 1,127

B. Financial risk management policies

(a) The Company’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk.

(b) Risk management is carried out by finance departments of the Company under policies approved by the Board of Directors. Finance departments of the Company identify, evaluate and hedges financial risks in close co-operation with the Company’s operating units. The Board provides written principles for overall risk management, as well as written policies covering specific areas and matters, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and no-derivative financial instruments, and investment of excess liquidity.

C. Significant financial risks and degrees of financial risks

(a) Market risk

Foreign exchange risk

i. The Company operates internationally and is exposed to exchange rate risk arising from the transactions of the Company used in various functional currency, primarily with respect to the USD and RMB. Exchange rate risk arises from future commercial transactions and recognised assets and liabilities.

ii. The Company is required to hedge their entire foreign exchange risk exposure with the Company treasury.

iii. The Company's businesses involve some non-functional currency operations (the functional currency of the Company is NTD). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

	December 31, 2025
	Foreign currency amount (in thousands)	Exchange rate	Book value (in thousands of NTD)
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD	$ 1	31.430	$ 34
		December 31, 2024
	Foreign currency amount (in thousands)	Exchange rate	Book value (in thousands of NTD)
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD	$ 607	32.785	$ 19,892
Financial liabilities
Non-monetary items
USD:NTD	$ 517	32.785	$ 16,964

iv. Please refer to the following table for the details of unrealized exchange gain (loss) arising from significant foreign exchange variation on the monetary items held by the Company.

	Year ended December 31, 2025
	Unrealized exchange gain (loss)
	Foreign currency amount (in thousands)	Exchange rate	Book value (in thousands of NTD)
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD	$ -	31.430	$ 1,488

	Year ended December 31, 2024
Unrealized exchange gain (loss)
Foreign currency amount (in thousands)	Exchange rate
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD	$ -
Financial liabilities
Monetary items
USD:NTD	$ -

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

	Year ended December 31, 2025
	Sensitivity analysis
	Degree of variation	Effect on profit or loss	Effect on other comprehensive income
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD	1%	$ -	$ -
	Year ended December 31, 2024
	Sensitivity analysis
	Degree of variation	Effect on profit or loss	Effect on other comprehensive income
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD	1%	$ 199	$ -
Financial liabilities
Non-monetary items
USD:NTD	1%	($ 170)	$ -

Cash flow and interest rate risk

i. The Company's interest rate risk arises from bank deposits and borrowings. Borrowings issued at variable rates expose the Company to cash flow interest rate risk.
ii. Based on the simulations performed on sensitivity analysis for interest rate risk, the maximum impact on post-tax profit of a $0.1\%$ shift would be increased/decreased of $\$594$ and $\$73$ for the years ended December 31, 2025 and 2024. The simulation is done on a quarterly basis to ensure that the potential maximum loss is within the limit set by the management.

(b) Liquidity risk

i. Cash flow forecasting is performed in the operating entities of the Company and aggregated by Company treasury. Company treasury monitors rolling forecasts of the Company's liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants on any of its borrowing facilities. Such forecasting takes into consideration the Company's debt financing plans, covenant compliance, compliance with internal balance sheet ratio targets and external regulatory or legal requirements.

ii. Surplus cash are invested in interest bearing current accounts, time deposits, money market deposits and marketable securities, with appropriate maturities or sufficient liquidity to provide sufficient headroom and meet the above-mentioned forecasts. As of December 31, 2025 and 2024, the Company held money market position of $593,889 and $1,387,760, respectively, and those are expected to readily generate cash inflows for managing liquidity risk.

iii. The Company has the following undrawn borrowing facilities:

	December 31, 2025	December 31, 2024
Floating rate:
Expiring within one year	$ 1,900,000	$ 2,550,000
Expiring beyond one year	-	100,000
	$ 1,900,000	$ 2,650,000

iv. The table below shows analysis of the Company's non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the end of the reporting period to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

Non-derivative financial liabilities:
December 31, 2025	Less than 1 year	Between 1 and 5 years	Between 5 and 7 years	Over 7 years
Other payables
(including related parties)	$ 147,159	$ -	$ -	$ -
Lease liabilities	1,639	408	-	-
Non-derivative financial liabilities:
December 31, 2024	Less than 1 year	Between 1 and 5 years	Between 5 and 7 years	Over 7 years
Short-term borrowings	$ 450,000	$ -	$ -	$ -
Other payables
(including related parties)	174,353	-	-	-
Lease liabilities	899	250	-	-

The Company does not expect the timing of the estimated cash outflows through the maturity date analysis will be significantly earlier, or expect the actual cash flow amount will be significantly different.

(3) Fair value information

The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Company's investment in listed stocks and beneficiary certificates is included in Level 1.

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

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

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

A. Loans to others: Please refer to table 1.
B. Provision of endorsements and guarantees to others: Please refer to table 2.
C. Holding of significant marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 3.
D. Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more: Please refer to table 4.
E. Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more: Please refer to table 5.
F. Significant inter-company transactions during the reporting periods: Please refer to table 6.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to table 7.

(3) Information on investments in Mainland China

A. Basic information: Please refer to table 8.
B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Please refer to table 1, table 4, table 5 and table 6.

14. SEGMENT INFORMATION

None.

~38~

ENNOSTAR INC.

Loans to others

Year ended December 31, 2025

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

No.	Creditor	Borrower	General ledger account	Is a related party	outstanding balance during the year ended December 31,2025	Balance at December 31,2025	Actual amount drawn down	Interest rate	Nature of loan	Amount of transactions with the borrower	Reason for short-term financing	Allowance for doubtful accounts	Collateral		Limit on loans granted to a single party	Ceiling on total loans granted	Footnote
													Item	Value
1	Ennostar Corporation	Unikorn Semiconductor Corporation	Other receivables-related parties	Y	$ 1,100,000	$ 800,000	$ 750,000	1.585%–1.65%	Short-term financing	$ -	Working capital	$ -	None	$ -	$ 2,946,173	$ 8,838,519	Note 1
2	Epicrystal Corporation (Changzhou) Ltd.	Episky Corporation (Xiamen) Ltd	Other receivables-related parties	Y	1,624,320	809,280	359,680	0.98%	Short-term financing	-	Working capital	-	Promissory Note	1,258,880	1,644,313	1,644,313	Note 2
3	United LED Shan Dong Corporation	Episky Corporation (Xiamen) Ltd	Other receivables-related parties	Y	146,336	-	-	Markup on short-term cost of capital	Short-term financing	-	Working capital	-	None	-	191,093	191,093	Note 3
4	Lextar Electronics (Chuzhou) Corp.	Episky Corporation (Xiamen) Ltd	Other receivables-related parties	Y	823,140	809,280	-	Reference to short-term cost of capital	Short-term financing	-	Working capital	-	Promissory Note	809,280	3,745,471	3,745,471	Note 4
5	Lextar Electronics corp.	Hexawave, Inc.	Other receivables	N	10,000	-	-	Reference to short-term cost of capital	Short-term financing	-	Working capital	-	None	-	733,013	2,199,039	Note 5

Note 1: Limit on loans granted by Ennostar corporation., the ceiling to total loans granted is 30% of its net asset and to a single party is 10% of its net asset.
Note 2: Limit on loans granted by the subsidiary of Ennostar, Epicrystal Corp. (ChangZhou), limit on total loans is 40% of the Epicrystal Corp. (ChangZhou)'s net asset, and 30% of the net asset based on the latest financial statements of ENNOSTAR Inc., and to a single party is 40% of the Epicrystal Corp. (ChangZhou)'s net asset, and 10% of the net asset based on the latest financial statements of ENNOSTAR Inc.
Note 3: Limit on loans granted by the subsidiary of Ennostar, United LED Shan Dong, limit on total loans is 40% of the United LED Shan Dong's net asset, and 30% of the net asset based on the latest financial statements of ENNOSTAR Inc., and to a single party is 40% of the United LED Shan Dong's net asset, and 10% of the net asset based on the latest financial statements of ENNOSTAR Inc.
Note 4: Limit on loans granted by Lextar Electronics (Chuzhou) Corp. to ENNOSTAR Inc. and a fellow subsidiary that is 100% controlled by the ENNOSTAR Inc. located outside Taiwan, limit on total loans is net asset of the Company, and to a single party is net asset of the Company. The maximum term of the financing is three years.
Note 5: Limit on loans granted by Lextar Electronics Corp., the ceiling to total loans granted is 30% of its net assets and to a single party is 10% of its net asset.

ENNOSTAR INC.
Provision of endorsements and guarantees to others
Year ended December 31, 2025

Table 2

Party being endorsed/guaranteed
Number ( Note 1 )	Endorser/ guarantee	Company name	Relationship with the endorser/ guarantee provided for a single party (Note 2)	Limit on endorsements/ guarantees provided for a single party (Note 3)	Maximum outstanding endorsement/ guarantee amount as of December 31, 2025	Outstanding endorsement/ guarantee amount at December 31, 2025	Actual amount drawn down	Amount of endorsements /guarantees secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantee company	Ceiling on total amount of endorsements/ guarantees provided (Note 3)	Provision of endorsements /guarantees by parent company to subsidiary	Provision of endorsements/ guarantees by subsidiary to parent company	Provision of endorsements/ guarantees to the party in Mainland China	Footnote
1	Ennostar Corporation	ENNOSTAR Inc.	3	$ 8,838,519	$ 750,000	$ -	$ -	$ -	$ -	$ 8,838,519	N	Y	N	Note 3

Note 1: The numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows:

(1) The Company is '0'.

(2) The subsidiaries are numbered in order starting from '1'.

Note 2: Relationship between the endorser/guarantee and the party being endorsed/guaranteed is classified into the following seven categories; fill in the number of category each case belongs to:

(1) Having business relationship.

(2) The endorser/guarantee parent company owns directly or indirectly more than 50% voting shares of the endorsed/guaranteed subsidiary.

(3) The endorser/guarantee parent company and its subsidiaries jointly own directly or indirectly more than 50% voting shares of the endorsed/guaranteed company.

(4) The endorsed/guaranteed parent company directly or indirectly owns more than 90% voting shares of the endorser/guarantee subsidiary.

(5) Mutual guarantee of the trade as required by the construction contract.

(6) Due to joint venture, each shareholder provides endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership.

(7) Companies in the same industry provide among themselves joint and several security for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.

Note 3: In accordance with the Ennostar's Procedures for Provision of endorsements and guarantees to others: the ceiling on total endorsements/guarantees is 30% of the Company's net asset, and the limit on endorsements/guarantees to a single party is 30% of its net asset.

Table 2-1

ENNOSTAR INC.

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

December 31, 2025

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

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account	As of December 31, 2025
				Number of shares	Book value	Ownership (%)	Fair value
Ennostar Corporation	E&E Japan Co.Ltd. (Stock)	None	Non-current investments in equity instruments at fair value through other comprehensive income	140	$ 2,143	17.07	$ 2,143
Ennostar Corporation	NATEC CORPORATION (Stock)	None	Non-current investments in equity instruments at fair value through other comprehensive income	120,000	1,748	7.50	1,748
Ennostar Corporation	Bissol Co.,Ltd. (Stock)	None	Non-current investments in equity instruments at fair value through other comprehensive income	1,000	147	2.50	147
Ennostar Corporation	Lynk Labs,Inc. (Stock)	None	Non-current investments in equity instruments at fair value through other comprehensive income	92,523	-	7.39	-
Ennostar Corporation	Advanced Photoelectronic Technology Limited (Stock)	None	Non-current investments in equity instruments at fair value through other comprehensive income	1,339,235	264,540	13.68	264,540
Ennostar Corporation	Dominant Opto Technologies Sdn. Bhd. (Stock)	None	Non-current investments in equity instruments at fair value through other comprehensive income	35,000,000	711,399	10.00	711,399
Ennostar Corporation	XENIO CORPORATION (Stock)	None	Non-current financial assets at fair value through profit or loss	7,878	-	0.06	-
Ennostar Corporation	PlayNitride Inc. (Stock)	None	Non-current investments in equity instruments at fair value through other comprehensive income	6,407,338	861,787	5.44	861,787

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account	As of December 31, 2025
				Number of shares	Book value	Ownership (%)	Fair value
Ennostar Corporation	OSTENDO TECHNOLOGIES,INC.(Stock)	None	Non-current financial assets at fair value through profit or loss	67,500	$ -	0.04	$ -
Ennostar Corporation	PHECDA TECHNOLOGY CO., LTD	None	Non-current investments in equity instruments at fair value through other comprehensive income	600,000	-	2.11	-
Ennostar Corporation	ELIT FINE CERAMICS CO., LTD.	None	Non-current financial assets at fair value through profit or loss	2,200,000	-	4.49	-
Ennostar Corporation	Nanocrystal Technology Inc.	None	Non-current financial assets at fair value through profit or loss	6,000,000	-	11.11	-
Episky Corporation(Xiamen) Ltd.	China Firstar Optoelectronic Materials Co., Ltd. (Stock)	None	Non-current investments in equity instruments at fair value through other comprehensive income	cash RMB 7,500,000	-	15.00	-
Episky Corporation(Xiamen) Ltd.	APT Electronics Co., Ltd.(Stock)	None	Non-current investments in equity instruments at fair value through other comprehensive income	4,635,240	72,106	0.86	72,106
Episky Corporation(Xiamen) Ltd.	Zhongke Electric Material (Beijing) Co.,Ltd.(Stock)	None	Non-current investments in equity instruments at fair value through other comprehensive income	8,064,516	-	3.72	-
Lighting Investment Corporation	Oree Advanced Illumination Solutions, Inc.(Stock)	None	Non-current financial assets at fair value through profit or loss	79,407	-	5.00	-
Lighting Investment Corporation	TERA XTAL TECHNOLOGY CORPORATION (Stock)	None	Non-current financial assets at fair value through profit or loss	795,000	-	0.42	-

				As of December 31, 2025
Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account	Number of shares	Book value	Ownership (%)	Fair value	Footnote
Lighting Investment Corporation	XENIO CORPORATION (Stock)	None	Non-current financial assets at fair value through profit or loss	16,463	$	-	0.13	$
Lighting Investment Corporation	FormoLight Technologies, Inc. (Stock)	None	Non-current investments in equity instruments at fair value through other comprehensive income	2,038,230	12,972	10.00	12,972
Lighting Investment Corporation	Advanced Photoelectronic Technology Limited (Stock)	None	Non-current investments in equity instruments at fair value through other comprehensive income	562,018	111,016	5.74	111,016
Lighting Investment Corporation	iReach Corporation (Preferred stock)	Investments accounted for using equity method of Ennostar Corporation	Non-current investments in equity instruments at fair value through other comprehensive income	370,000	1,891	-	1,891
Lighting Investment Corporation	ENNOSTAR Inc.(Stock)	Parent company of Ennostar Corporation	Current financial assets at fair value through profit or loss	1,282,377	45,845	0.17	45,845	Note1
Lighting Investment Ltd.	Verticle Inc. (Stock)	None	Non-current financial assets at fair value through profit or loss	582,983	-	3.00	-
Lighting Investment Ltd.	Achrolux Inc. (Stock)	None	Non-current financial assets at fair value through profit or loss	987,500	-	6.91	-
Lighting Investment Ltd.	Advanced Photoelectronic Technology Limited (Stock)	None	Non-current investments in equity instruments at fair value through other comprehensive income	200,000	39,506	2.04	39,506
HUGA Holding (SAMOA) Ltd.	Zhongke Electric Material (Beijing) Co.,Ltd.(Stock)	None	Non-current investments in equity instruments at fair value through other comprehensive income	17,741,935	-	8.19	-

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account	As of December 31, 2025
				Number of shares	Book value	Ownership (%)	Fair value
Epicrystal Corporation (Changzhou) Ltd.	Changzhou Chemsemi Co., Ltd.	None	Non-current investments in equity instruments at fair value through other comprehensive income	cash $ RMB 63,685,809	-	9.60	$ -
Jiangsu Canyang Optoelectronics Ltd	C-Star (Yangzhou) technology Co., Ltd	None	Non-current investments in equity instruments at fair value through other comprehensive income	cash RMB 5,000,000	10,255	13.96	10,255
Wellybond Corporation	Wellysun Inc.(Stock)	None	Non-current investments in equity instruments at fair value through other comprehensive income	2,014,000	19,173	4.23	19,173

Note 1: Transferred from the Ennostar's stocks held as treasury shares.

ENNOSTAR INC.

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

Year ended December 31, 2025

Table 4

Expressed in thousands of NTD

(Except as otherwise indicated)

Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction				Differences in transaction terms		Notes/accounts receivable (payable)		Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Episky Corporation (Xiamen) Ltd.	Ennostar Corporation	Note 1	Sales	($ 973,710)	(	4.39)	90 days after monthend closing	Normal	Normal	$ 230,860	2.89
Episky Corporation (Xiamen) Ltd.	Lextar Electronics (Chuzhou) Corp.	Note 1	Sales	(	201,521)	(	0.91)	90 days after monthend closing	Normal	84,685	1.06
Epicrystal Corporation (Changzhou) Ltd.	Episky Corporation (Xiamen) Ltd.	Note 1	Sales	(	2,174,193)	(	9.80)	180 days after monthend closing	Normal	1,546,888	19.34
Epicrystal Corporation (Changzhou) Ltd.	Ennostar Corporation	Note 1	Sales	(	815,563)	(	3.68)	90 days after monthend closing	Normal	184,257	2.30
Jiangsu Canyang Optoelectronics Ltd.	Episky Corporation (Xiamen) Ltd.	Note 1	Sales	(	246,166)	(	1.11)	120 days after monthend closing	Normal	12,721	0.16
Jiangsu Canyang Optoelectronics Ltd.	Epicrystal Corporation (Changzhou) Ltd.	Note 1	Sales	(	787,725)	(	3.55)	90 days after monthend closing	Normal	252,357	3.16
Jiangsu Canyang Optoelectronics Ltd.	Ennostar Corporation	Note 1	Sales	(	136,782)	(	0.62)	90 days after monthend closing	Normal	20,430	0.26
Ennostar Corporation	Episky Corporation (Xiamen) Ltd.	Note 1	Sales	(	1,112,257)	(	5.01)	90 days after monthend closing	Normal	280,657	3.51
Ennostar Corporation	LEDAZ Co., Ltd	Note 1	Sales	(	303,722)	(	1.37)	120 days after monthend closing	Normal	139,678	1.75
Ennostar Corporation	Lextar Electronics Corp.	Note 1	Sales	(	180,349)	(	0.81)	90 days after monthend closing	Normal	43,726	0.55
Lextar Electronics Corp.	AUO (Suzhou) Co., LTD	Other related parties	Sales	(	226,942)	(	1.02)	120 days after monthend closing	Normal	89,521	1.12

			Transaction				Differences in transaction terms		Notes/accounts receivable (payable)
Purchaser/seller	Counterparty	Relationship with the counterparty	Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)	Footnote
Lextar Electronics Corp.	Darwin Precision (Xiamen) Corporation	Other related parties	Sales	($ 133,306)	( 0.60)	120 days after monthend closing	Normal	Normal	$ 86,356	1.08
Lextar Electronics Corp.	Fortech Electronics (Suzhou) Co., LTD.	Other related parties	Sales	( 187,758)	( 0.85)	120 days after monthend closing	Normal	Normal	79,075	0.99
Lextar Electronics (Chuzhou) Corp.	Lextar Electronics Corp.	Note 1	Sales	( 2,762,448)	( 12.45)	120 days after monthend closing	Normal	Normal	905,806	11.33
ProLight Opto Technology corporation	Shanghai Welight Electronic Co., LTD	Note 1	Sales	( 102,408)	( 0.46)	120 days after monthend closing	Normal	Normal	41,049	0.51
Episky Corporation (Xiamen) Ltd.	Jiangsu Canyang Optoelectronics Ltd.	Note 1	Purchase	246,166	1.77	120 days after monthend closing	Normal	Normal	( 12,721)	( 0.38)
Episky Corporation (Xiamen) Ltd.	Epicrystal Corporation (Changzhou) Ltd.	Note 1	Purchase	2,174,193	15.62	180 days after monthend closing	Normal	Normal	( 1,546,888)	( 46.26)
Episky Corporation (Xiamen) Ltd.	Ennostar Corporation	Note 1	Purchase	1,112,257	7.99	90 days after monthend closing	Normal	Normal	( 280,657)	( 8.39)
Ennostar Corporation	Jiangsu Canyang Optoelectronics Ltd.	Note 1	Purchase	136,782	0.98	90 days after monthend closing	Normal	Normal	( 20,430)	( 0.61)
Ennostar Corporation	Episky Corporation (Xiamen) Ltd.	Note 1	Purchase	973,710	7.00	90 days after monthend closing	Normal	Normal	( 230,860)	( 6.90)
Ennostar Corporation	Epicrystal Corporation (Changzhou) Ltd.	Note 1	Purchase	815,563	5.86	90 days after monthend closing	Normal	Normal	( 184,257)	( 5.51)
Epicrystal Corporation (Changzhou) Ltd.	Jiangsu Canyang Optoelectronics Ltd.	Note 1	Purchase	787,725	5.66	90 days after monthend closing	Normal	Normal	( 252,357)	( 7.55)
Lextar Electronics Corp.	Lextar Electronics (Chuzhou) Corp.	Note 1	Purchase	2,762,448	19.85	120 days after monthend closing	Normal	Normal	( 905,806)	( 27.09)
Lextar Electronics Corp.	Ennostar Corporation	Note 1	Purchase	180,349	1.30	120 days after monthend closing	Normal	Normal	( 43,726)	( 1.31)
Lextar Electronics Corp.	Tyntek Corporation	Note 1	Purchase	186,215	1.34	120 days after monthend closing	Normal	Normal	( 57,193)	( 1.71)

Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction				Differences in transaction terms		Notes/accounts receivable (payable)
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Lextar Electronics (Chuzhou) Corp.	Episky Corporation (Xiamen) Ltd.	Note 1	Purchase	201,521	1.45	90 days after monthend closing	Normal	Normal	($ 84,685)	( 2.53)
Shanghai Weight Electronic Co., LTD	ProLight Opto Technology corporation	Note 1	Purchase	102,408	0.74	120 days after monthend closing	Normal	Normal	( 41,049)	( 1.23)

Note 1: Investee company accounted for using equity method directly or indirectly.

ENNOSTAR INC.

Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more

December 31, 2025

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

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31, 2025		Total	Turnover rate	Overdue receivables		Amount collected subsequent to the balance sheet date	Allowance for doubtful debts
			Accounts receivable	Other receivable			Amount	Action taken
ENNOSTAR Inc.	Ennostar Corporation	Note 2	$ -	$ 107,696	$ 107,696	-	$ -	None	$ 107,696	$ -
Episky Corporation (Xiamen) Ltd.	Ennostar Corporation	Note 2	230,860	2,157	233,017	4.88	-	None	91,764	-
Ennostar Corporation	Episky Corporation (Xiamen) Ltd.	Note 2	280,657	1,046	281,703	3.22	-	None	101,307	-
Ennostar Corporation	Unikorn Semiconductor Corporation	Note 2	15,391	771,684	787,075	0.06	-	None	2,789	-
Epicrystal Corporation (Changzhou) Ltd.	Episky Corporation (Xiamen) Ltd.	Note 2	1,546,888	360,637	1,907,525	2.18	-	None	508,936	-
Epicrystal Corporation (Changzhou) Ltd.	Ennostar Corporation	Note 2	184,257	-	184,257	0.79	-	None	49,998	-
Jiangsu Canyang Optoelectronics Ltd.	Epicrystal Corporation (Changzhou) Ltd.	Note 2	252,357	-	252,357	2.35	-	None	159,565	-
Ennostar Corporation	LEDAZ Co., Ltd	Note 2	139,678	7,266	146,944	1.08	7,266	Note 1	-	7,266
Lextar Electronics (Chuzhou) Corp.	Lextar Electronics Corp.	Note 2	905,806	960	906,766	3.12	-	None	20,120	-

Note 1: All the overdue amounts are being actively collected.
Note 2: Investee company accounted for using equity method directly or indirectly.

ENNOSTAR INC.

Significant inter-company transactions during the reporting periods

Year ended December 31, 2025

Table 6
Expressed in thousands of NTD
(Except as otherwise indicated)

Number (Note 1)	Company name	Counterparty	Relationship (Note 2)	Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
0	ENNOSTAR Inc.	Lextar Electronics Corp.	1	Other operating revenue	$ 245,526	Based on contract terms	1.11
0	ENNOSTAR Inc.	Ennostar Corporation	1	Other operating revenue	449,254	Based on contract terms	2.03
0	ENNOSTAR Inc.	Ennostar Corporation	1	Other receivables	107,696	Based on contract terms	0.21
1	Ennostar Corporation	Episky Corporation (Xiamen) Ltd.	3	Sales revenue	1,112,257	Conducted in the ordinary course of business with terms similar to those with third parties	5.01
1	Ennostar Corporation	Episky Corporation (Xiamen) Ltd.	3	Accounts receivable	280,657	Conducted in the ordinary course of business with terms similar to those with third parties	0.54
1	Ennostar Corporation	Unikorn Semiconductor Corporation	3	Other receivables	771,684	Based on contract terms	1.49
1	Ennostar Corporation	Lextar Electronics Corp.	3	Sales revenue	180,349	Conducted in the ordinary course of business with terms similar to those with third parties	0.81
2	Episky Corporation (Xiamen) Ltd.	Ennostar Corporation	3	Sales revenue	973,710	Conducted in the ordinary course of business with terms similar to those with third parties	4.39

Transaction

Number (Note 1)	Company name	Counterparty	Relationship (Note 2)	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
2	Episky Corporation (Xiamen) Ltd.	Ennostar Corporation	3	Accounts receivable	$ 230,860	Conducted in the ordinary course of business with terms similar to those with third parties	0.45
2	Episky Corporation (Xiamen) Ltd.	Lextar Electronics (Chuzhou) Corp.	3	Sales revenue	201,521	Conducted in the ordinary course of business with terms similar to those with third parties	0.91
3	Epicrystal Corporation (Changzhou) Ltd.	Episky Corporation (Xiamen) Ltd.	3	Sales revenue	2,174,193	Conducted in the ordinary course of business with terms similar to those with third parties	9.80
3	Epicrystal Corporation (Changzhou) Ltd.	Ennostar Corporation	3	Sales revenue	815,563	Conducted in the ordinary course of business with terms similar to those with third parties	3.68
3	Epicrystal Corporation (Changzhou) Ltd.	Episky Corporation (Xiamen) Ltd.	3	Accounts receivable	1,546,888	Conducted in the ordinary course of business with terms similar to those with third parties	2.99
3	Epicrystal Corporation (Changzhou) Ltd.	Ennostar Corporation	3	Accounts receivable	184,257	Conducted in the ordinary course of business with terms similar to those with third parties	0.36
3	Epicrystal Corporation (Changzhou) Ltd.	Episky Corporation (Xiamen) Ltd.	3	Other receivables	360,637	Based on contract terms	0.70
4	Jiangsu Canyang Optoelectronics Ltd.	Episky Corporation (Xiamen) Ltd.	3	Sales revenue	246,166	Conducted in the ordinary course of business with terms similar to those with third parties	1.11
4	Jiangsu Canyang Optoelectronics Ltd.	Epicrystal Corporation (Changzhou) Ltd.	3	Sales revenue	787,725	Conducted in the ordinary course of business with terms similar to those with third parties	3.55
4	Jiangsu Canyang Optoelectronics Ltd.	Ennostar Corporation	3	Sales revenue	136,782	Conducted in the ordinary course of business with terms similar to those with third parties	0.62

Transaction

Number (Note 1)	Company name	Counterparty	Relationship (Note 2)	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
4	Jiangsu Canyang Optoelectronics Ltd.	Epicrystal Corporation (Changzhou) Ltd.	3	Accounts receivable	$ 252,357	Conducted in the ordinary course of business with terms similar to those with third parties	0.49
5	Lextar Electronics (Chuzhou) Corp.	Lextar Electronics Corp.	3	Sales revenue	2,762,448	Conducted in the ordinary course of business with terms similar to those with third parties	12.45
5	Lextar Electronics (Chuzhou) Corp.	Lextar Electronics Corp.	3	Accounts receivable	905,806	Conducted in the ordinary course of business with terms similar to those with third parties	1.75
6	ProLight Opto Technology Corporation	Shanghai Welight Electronic Co., LTD.	3	Sales revenue	102,408	Conducted in the ordinary course of business with terms similar to those with third parties	0.46

Note 1: Parent company is '0'. The subsidiaries are numbered in order starting from '1'.
Note 2: Relationship between transaction company and counterparty is classified into the following three categories; fill in the number of category each case belongs to (If transactions between parent company and subsidiaries or between subsidiaries refer to the same transaction, it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the subsidiary is not required to disclose the transaction; for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction.): (1) Parent company to subsidiary. (2) Subsidiary to parent company. (3) Subsidiary to subsidiary.
Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.
Note 4: Disclosure of the transactions over 100 million New Taiwan dollars only and the related party transactions for counterparty are not disclosed.

ENNOSTAR INC.

Information on investees (Excluding Information on Investment in Mainland China)

Year ended December 31, 2025

Table 7

Expressed in thousands of NTD

(Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial investment amount		Shares held as at December 31, 2025			Net profit (loss) of the investee for the year ended December 31, 2025	Investment income (loss) recognised by the Company for the year ended December 31, 2025	Footnote
				Balance as at December 31, 2025	Balance as at December 31, 2024	Number of shares	Ownership (%)	Book value
ENNOSTAR Inc.	Ennostar Corporation	Taiwan	Resarching, developing, manufacturing and sales of LED wafers and chips	$ 36,794,780	$ 36,794,780	1,207,079,188	100.00	$ 29,415,886	($ 2,221,856)	($ 2,215,252)
ENNOSTAR Inc.	Lextar Electronics Corp.	Taiwan	Resarching, developing, manufacturing and sales of LED wafers, packages and modules	9,924,646	10,724,646	514,916,380	100.00	8,535,332	( 481,818)	( 534,547)
ENNOSTAR Inc.	Harvestar Investment Corp.	Taiwan	General investment	1,440,000	1,150,000	144,000,000	100.00	906,852	471	471
ENNOSTAR Inc.	Tyntek Corporation	Taiwan	Research and development, manufacture, sales of gallium arsenide, infrared, light-emitting diode, laser diode, phototransistor, photodiode, single crystal, epitaxy and chip, and concurrent research and development, manufacture and sales of electro-optical system of export-import trade	584,583	584,583	23,799,000	7.92	616,919	( 76,236)	( 6,095)	Note1
ENNOSTAR Inc.	Amengine Corporation	Taiwan	Developing, manufacturing and sales of optical sensing modules	-	40,212	-	0.00	-	( 304)	( 231)

Table 7-1

Initial investment amount