EVEROHMS - Audit Report / Information 2025

Stock Code: 6834

Ever Ohms Technology Co., Ltd.

Parent company only Financial Statements and Independent Auditors' Report 2025 and 2024

Address: No. 3, S. 4th Rd., Qianzhen Dist., Kaohsiung City
TEL: (07)811-6611

§Table of Contents§

| Item | | Page | No. of Notes to Parent company only
Financial Statements |
| --- | --- | --- | --- |
| I. | Cover | 1 | - |
| II. | Table of Contents | 2 | - |
| III. | Independent Auditors' Report | 3~5 | - |
| IV. | Parent Company Only Balance Sheets | 6 | - |
| V. | Parent Company Only Statements of Comprehensive Income | 7~9 | - |
| VI. | Parent Company Only Statements of Changes in Equity | 10 | - |
| VII. | Parent Company Only Statements of Cash Flows | 11~12 | - |
| VIII. | Notes to Parent Company Only Financial Statements | | |
| | (I) Company History | 13 | I. |
| | (II) Approval Date and Procedures of The Financial Statements | 13 | II. |
| | (III) Application of New and Revised International Financial Reporting Standards | 13~16 | III. |
| | (IV) Summary of Significant Accounting Policies | 16~26 | IV. |
| | (V) Significant Accounting Assumptions and Judgments, and Major Sources of Estimation Uncertainty | 27 | V. |
| | (VI) Summary of Significant Accounting Items | 27~52 | VI~XXV |
| | (VII) Related party transaction | 52~54 | XXVI. |
| | (VIII) Pledged Assets | 54 | XXVII. |
| | (IX) Significant Contingent Liabilities and Unrecognized Commitments | 54 | XXVIII. |
| | (X) Losses Due to Major Disasters | - | - |
| | (XI) Significant Events | - | - |
| | (XII) Information on foreign-currency-denominated financial assets and liabilities | 54~55 | XXIX. |
| | (XIII) Other Disclosures | | |
| | 1. Information on Significant Transactions | 55, 57~59 | XXX. |
| | 2. Information on Investees | 55, 60 | XXX. |
| | 3. Information on Investment in Mainland China | 55~56, 61 | XXX. |
| IX. | Statements of Major Accounting Items | 62~74 | - |

Independent Auditors' Report

To: Ever Ohms Technology Co., Ltd.

Audit opinions

We have audited the accompanying parent company only financial statements of Ever Ohms Technology Co., Ltd. (the "Company"), which comprise the parent company only balance sheets as of December 31, 2025 and 2024, and the parent company only statements of comprehensive income, parent company only changes in equity and parent company only cash flows for the years then ended, and the notes to the parent company only financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the parent company only financial position of the Company as of 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 of the Republic of China.

Basis for Opinion

We conducted our audits in accordance with the Regulation Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards in the R.O.C.. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Parent company only Financial Statements section of our report. The auditors of the firm, subject to the independence regulations, have maintained independence from the Company in accordance with the Code of Ethics and perform other obligations of such Code. We believe that the audit evidence we have obtained is sufficient 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 Company for the year ended December 31, 2025. 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, and we do not provide a separate opinion on these matters.

Key audit matters for the Company's Parent company only financial statements for the year ended December 31, 2025 are stated as follows:

Authentic of the income from sales to certain customers

As said in Note 20 of the parent-only financial report, the main revenue of the Company comes from sales of various resistor products, the amount in 2025 made significant growth compared to the previous year and the average number of days for collecting payment and the number of credit days are not equivalent. Therefore, pursuant to the provisions of Statements of Audit Standards related to preset revenues as with significant risk, the authenticity of sales from certain customers is listed as the key audit matters.

We have executed the following responding audit procedures for the certain aspects specified in the aforesaid key audit matters, included:

I. Understanding and testing the effectiveness of the internal control operation related to the authenticity of revenue recognition
II. Obtaining detailed information on sales revenue from specific customers, selecting appropriate samples, reviewing the delivery documents and payment documents, and checking whether the payment subject is consistent with the sales subject, in order to confirm the actual occurrence of the revenue.

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 necessary internal control as management determines is necessary to enable the preparation of Parent company only financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the Parent company only financial statements, the responsibilities of the management include 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 auditors' 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 the auditing standards in the R.O.C. will always detect a material misstatement when it exists in the Parent company only financial statements.

Misstatements can arise from fraud or error. Misstatements 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 the Parent company only financial statements.

As part of an audit in accordance with the auditing standards in the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

I. Identify and assess the risk of material misstatement of the Parent company only financial statements due to fraud or error, design and adopt appropriate countermeasures for the risks assessed, and obtain sufficient and appropriate audit evidence in order to be used as the basis for the opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
II. Obtain a necessary understanding of internal control concerning the inspection in order to design appropriate inspection procedures that are appropriate for the time being. The purpose, however, is not to effectively express opinions on the internal control of the Company.
III. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management level.

IV. According to the audit evidence obtained, evaluate the appropriateness of the continuous operation accounting basis and whether events or circumstances possibly generating material concerns on the continuous operation ability of the Company have significant uncertainty, and provide conclusion thereto. In case where we consider that such events or circumstances have a material uncertainty, then relevant disclosure of the Parent company only financial statements are required to be provided in our audit report to allow users of Parent company only financial statements to be aware of such events or circumstances, 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 auditors' report. Nevertheless, future events or circumstances may cause the Company to have no ability for continuous operation.

V. Evaluate the overall presentation, structure and content of the Parent company only financial statements, including relevant notes, and whether the Parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

VI. Obtain sufficient and appropriate audit evidence regarding the financial information of the entity of the Company, and express an opinion on Parent company only financial statements. We handle the guidance, supervision and execution of the audit on the Company and are responsible for preparing the opinion for the Company.

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.

From the matters communicated with those charged with governance, we determine those matters that were of most significant in the audit of the Company's 2025 Parent company only financial statements 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.

Deloitte Taiwan
Wang, Teng-Wei, CPA
Hsu, Kai-Ning, CPA

Financial Supervisory Commission Approval Document No.
Jin-Guan-Zheng-Shen-Zhi No. 1100356048

Financial Supervisory Commission Approval Document No.
Jin-Guan-Zheng-Shen-Zhi No. 1090347472

February 26, 2026

Ever Ohms Technology Co., Ltd.
Parent company only Balance Sheets
December 31, 2025 and 2024
Unit: NT$1,000

Code	ASSETS	December 31, 2025		December 31, 2024
		Amount	%	Amount	%
Current asset
1100	Cash and cash equivalents (Notes 4 and 6)	$ 307,691	14	$ 284,043	13
1110	Financial assets at fair value through profit or loss - current (Notes 4 and 7)	64,728	3	62,832	3
1150	Notes receivable (Notes 4 and 9)	7,588	-	10,651	1
1170	Accounts receivable, net (Notes 4 and 9)	239,792	11	212,980	10
1180	Accounts receivable - related parties (Notes 4, 9 and 26)	203,774	9	200,945	9
1200	Other receivables	4,686	-	4,603	-
1220	Income tax assets of the period	-	-	954	-
130X	Inventories (Notes 4, 5 and 10)	304,489	14	234,292	11
1410	Prepayments	16,799	1	13,030	1
1479	Other current assets	778	-	1,738	-
11XX	Total current assets	1,150,325	52	1,026,068	48
non-current assets
1517	Financial assets at fair value through other comprehensive profit or loss - non-current (Notes 4 and 8)	71,726	3	95,156	5
1550	Investment accounted for under the equity method (Notes 4 and 11)	78,175	4	64,130	3
1600	Property, plant and equipment (Notes 4, 12, 27 and 28)	733,572	33	813,039	38
1755	Right-of-use assets (Notes 4 and 13)	19,163	1	20,718	1
1760	Investment property (Notes 4 and 14)	4,956	-	5,241	-
1805	Goodwill (Note 4)	27,219	1	27,219	1
1821	Other intangible assets (Notes 4 and 15)	7,504	1	8,872	1
1840	Deferred tax assets (Notes 4 and 22)	35,738	2	37,523	2
1915	Prepayments for business facilities	21,133	1	8,651	-
1920	Refundable deposits	2,959	-	4,649	-
1960	Prepayments for investments (Note 8)	43,641	2	-	-
1990	Other non-current assets	6,213	-	8,705	1
15XX	Total non-current assets	1,051,999	48	1,093,903	52
1XXX	Total assets	$ 2,202,324	100	$ 2,119,971	100
Code Liabilities and Equity
Current liabilities
2100	Short-term borrowings (Notes 16 and 27)	$ 490,000	22	$ 390,000	18
2170	Accounts payable	103,522	5	86,796	4
2180	Accounts payable - related parties (Note 26)	24,629	1	30,503	2
2219	Other payables (Note 17)	117,250	6	117,474	6
2230	Current tax liabilities	706	-	2,964	-
2280	Lease liabilities - current (Notes 4 and 13)	3,449	-	3,319	-
2399	Other current liabilities (Note 4)	3,074	-	2,583	-
21XX	Total current liabilities	742,630	34	633,639	30
non-current liabilities
2570	Deferred tax liabilities (Notes 4 and 22)	5,776	-	1,570	-
2580	Lease liabilities - non-current (Notes 4 and 13)	16,665	1	18,352	1
2640	Net defined benefit liabilities - non-current (Notes 4 and 18)	2,479	-	1,995	-
2645	Deposits received	595	-	595	-
25XX	Total non-current liabilities	25,515	1	22,512	1
2XXX	Total Liabilities	768,145	35	656,151	31
Equity (Note 19)
3110	Common share capital	884,711	40	884,711	42
3200	Additional paid-in capital	455,675	21	455,675	22
Retained earnings
3310	Legal reserves	69,761	3	64,604	3
3351	undistributed earnings	45,882	2	51,574	2
3300	Total retained earnings	115,643	5	116,178	5
3400	Other equities	( 21,850 )	( 1 )	7,256	-
3XXX	Total equity	1,434,179	65	1,463,820	69
3X2X	Total liabilities and equities	$ 2,202,324	100	$ 2,119,971	100

The accompanying notes are an integral part of the Parent company only financial report.

Chairman: Liao, Chen-Yi,
Manager: Huang, Hung-Chieh,
Accounting Officer: Yang, Shan-Yu

Ever Ohms Technology Co., Ltd.
Parent company only Statements of Comprehensive Income
For the years ended December 31, 2025 and 2024
Unit: Expressed in NT$ thousand; except earnings per share expressed in NT$)

Code		2025		2024
		Amount	%	Amount	%
4000	Net operating revenue (Notes 4, 20 and 26)	$ 1,328,984	100	$ 1,220,800	100
5000	Operating costs (Notes 10, 21 and 26)	1,111,806	84	1,023,128	84
5900	Gross profit	217,178	16	197,672	16
5910	Unrealized incomes from sales	( 1,451 )	-	( 1,681 )	-
5920	Realized gains (losses) on sales	1,655	-	( 640 )	-
5950	Gross operating profit realized	217,382	16	195,351	16
	Operating expenses (Notes 9 and 21)
6100	Selling expenses	57,286	4	53,659	4
6200	Administrative expenses	96,662	7	89,653	7
6300	Research and development expenses	36,814	3	30,433	3
6450	Expected credit impairment losses (income)	120	-	( 157 )	-
6000	Total operating expenses	190,882	14	173,588	14
6900	Operating profit	26,500	2	21,763	2
	Non-operating income (Notes 21 and 26)
7100	Interest revenue	6,040	1	7,488	1
7190	Other income	9,368	1	8,418	1
7020	Other gains or losses	1,615	-	25,159	2
7050	Financial costs	( 8,727 )	( 1 )	( 6,491 )	( 1 )

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Code		2025		2024
		Amount	%	Amount	%
7060	Share of profit or loss of subsidiaries and associates using the equity method	$ 16,588	1	$ 8,816	1
7000	Total non-operating incomes and expenses	24,884	2	43,390	4
7900	Profit before tax	51,384	4	65,153	6
7950	Income tax expenses (Notes 4 and 22)	( 6,986 )	( 1 )	( 8,386 )	( 1 )
8200	Current net profit	44,398	3	56,767	5
	Other comprehensive income
	Items not reclassified subsequently to profit or loss
8311	Remeasurement of defined benefit programs (Note 18)	( 872 )	-	1,985	-
8316	Unrealized gains (losses) on investments in equity instruments as at fair value through other comprehensive income (Note 19)	( 27,000 )	( 2 )	( 9,810 )	( 1 )
8330	Share of other comprehensive income of subsidiaries accounted for using the equity method (Note 19)	( 2,708 )	-	-	-
8349	Income taxes related to the items not re-classified (Note 22)	174	-	( 398 )	-
8310		( 30,406 )	( 2 )	( 8,223 )	( 1 )
	Items that may be reclassified subsequently to profit or loss
8361	Exchange differences on translating the financial statements of foreign operations (Note 19)	752	-	1,472	-
8399	Income tax relating to items that may be reclassified (Notes 19 and 22)	( 150 )	-	( 294 )	-

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Code		2025		2024
		Amount	%	Amount	%
8360		$ 602	-	$ 1,178	-
8300	Other comprehensive income of the year (net amount after tax)	( 29,804 )	( 2 )	( 7,045 )	( 1 )
8500	Total comprehensive income (loss) for the year	$ 14,594	1	$ 49,722	4
	Earnings per share (Note 23)
9710	Basic	$ 0.50		$ 0.64
9810	Diluted	$ 0.50		$ 0.64

The accompanying notes are an integral part of the Parent company only financial report.

Chairman: Liao, Chen-Yi,

Manager: Huang, Hung-Chieh,

Accounting Officer: Yang, Shan-Yu

Ever Ohms Technology Co., Ltd.
Parent company only Statement of Changes in Equity
For the years ended December 31, 2025 and 2024

Unit: NT$1,000

Code		Common share capital	Additional paid-in capital	Retained earnings			Other items of equity
				Legal reserves	undistributed earnings (accumulated deficit)	Total	Exchange differences on translation of the financial statements of foreign operations	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income	Subtotal	Total equity
A1	Balance as of January 1, 2024	$ 884,711	$ 455,675	$ 64,604	($ 4,698)	$ 59,906	($ 1,462)	$ 15,268	$ 13,806	$ 1,414,098
D1	2024 Net profit	-	-	-	56,767	56,767	-	-	-	56,767
D3	Other comprehensive income (loss) for 2024	-	-	-	1,587	1,587	1,178	( 9,810)	( 8,632)	( 7,045)
D5	Total comprehensive income of 2024	-	-	-	58,354	58,354	1,178	( 9,810)	( 8,632)	49,722
Q1	Disposal of investments in equity instruments measured at fair value through other comprehensive income	-	-	-	( 2,082)	( 2,082)	-	2,082	2,082	-
Z1	Balance as of December 31, 2024	884,711	455,675	64,604	51,574	116,178	( 284)	7,540	7,256	1,463,820
	Earning provision and appropriate for 2024 (Note 19)
B1	Legal reserves	-	-	5,157	( 5,157)	-	-	-	-	-
B5	Cash dividends to shareholders	-	-	-	( 44,235)	( 44,235)	-	-	-	( 44,235)
		-	-	5,157	( 49,392)	( 44,235)	-	-	-	( 44,235)
D1	2025 Net profit	-	-	-	44,398	44,398	-	-	-	44,398
D3	Other comprehensive income (loss) for 2025	-	-	-	( 698)	( 698)	602	( 29,708)	( 29,106)	( 29,804)
D5	Total comprehensive income of 2025	-	-	-	43,700	43,700	602	( 29,708)	( 29,106)	14,594
Z1	Balance as of December 31, 2025	$ 884,711	$ 455,675	$ 69,761	$ 45,882	$ 115,643	$ 318	($ 22,168)	($ 21,850)	$ 1,434,179

The accompanying notes are an integral part of the Parent company only financial report.

Chairman: Liao, Chen-Yi,

Manager: Huang, Hung-Chieh,

Accounting Officer: Yang, Shan-Yu

Ever Ohms Technology Co., Ltd.
Parent company only Statements of Cash Flows
For the years ended December 31, 2025 and 2024
Unit: NT$1,000

Code	Cash flows from operating activities	2025	2024
A10000	Net profit before tax for the year	$ 51,384	$ 65,153
A20010	Income/expenses items
A20100	Depreciation expense	159,468	155,990
A20200	Amortization expenses	11,835	11,944
A20300	Expected credit impairment losses
(reversal of gains)	120	( 157 )
A20400	Net loss (gain) on financial assets at fair value through profit or loss	( 8,732 )	2,501
A22300	Share of profit or loss of subsidiaries and associates using the equity method	( 16,588 )	( 8,816 )
A20900	Financial costs	8,727	6,491
A21200	Interest revenue	( 6,040 )	( 7,488 )
A21300	Dividend income	( 4,465 )	( 4,615 )
A22500	Net gains on disposal of property, plant and equipment	-	( 406 )
A23700	Inventories losses	7,088	14,080
A23900	Unrealized incomes from sales	1,451	1,681
A24000	Realized loss (gain) from sales	( 1,655 )	640
A30000	Net changes in operating assets and liabilities
A31130	Notes receivable	3,063	( 371 )
A31150	Trade receivable	( 26,932 )	( 60,985 )
A31160	Accounts receivable - related parties	( 2,829 )	( 67,293 )
A31180	Other receivables	( 93 )	( 743 )
A31200	Inventories	( 77,285 )	40,258
A31230	Prepayments	( 3,769 )	4,241
A31240	Other current assets	( 1,535 )	( 3,405 )
A32150	Accounts payable	16,726	26,208
A32160	Accounts payable - related parties	( 5,874 )	13,936
A32180	Other payables	( 1,754 )	25,631
A32230	Other current liabilities	491	362
A32240	Net defined benefit liability	( 388 )	( 66 )
A33000	Cash provided by operating activities	102,414	214,771
A33100	Interest received	6,050	7,556
A33200	Dividends received	5,256	5,185
A33300	Interest paid	( 9,490 )	( 7,808 )

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Code		2025	2024
A33500	Income tax paid	($ 2,275)	($ 610)
AAAA	Net cash inflow from operating activities	101,955	219,094
	Cash flows from investing activities
B00010	Acquisition of financial assets at fair value through other comprehensive income	-	( 85,216 )
B00020	Disposal of financial assets at fair value through other comprehensive income	-	4,204
B00200	Disposal of financial assets at FVTPL	3,266	-
B02000	Increase in prepayments for investments	( 43,641 )	-
B02700	Acquisition of property, plant and equipment	( 85,876 )	( 102,083 )
B02800	Proceeds from disposal of property, plant and equipment	-	419
B03700	Increase in refundable deposits	( 759 )	( 318 )
B03800	Decrease in refundable deposits	2,449	1,168
B04500	Acquisition of intangible asset	( 1,458 )	( 128 )
B06700	Increase in other non-current assets	( 4,022 )	( 7,278 )
BBBB	Net cash outflow from investment activities	( 130,041 )	( 189,232 )
	Cash flows from financing activities
C00100	Increase in short-term borrowings	100,000	-
C00200	Decrease in short-term borrowings	-	( 10,000 )
C04020	Repaid principal of lease liabilities	( 4,031 )	( 5,063 )
C04500	Distribution of cash dividends	( 44,235 )	-
CCCC	Net cash inflow (outflow) from financing activities	51,734	( 15,063 )
EEEE	Net increase in cash and cash equivalents for the year	23,648	14,799
E00100	Beginning cash and cash equivalents of the year	284,043	269,244
E00200	End cash and cash equivalents of the year	$ 307,691	$ 284,043

The accompanying notes are an integral part of the Parent company only financial report.

Chairman: Liao, Chen-Yi,

Manager: Huang, Hung-Chieh,

Accounting Officer: Yang, Shan-Yu

Ever Ohms Technology Co., Ltd.
Notes to Parent company only Financial Statements
For the years ended December 31, 2025 and 2024
(In thousands New Taiwan Dollars, unless stated otherwise)

I. Company History

Ever Ohms Technology Co., Ltd. ("the Company") was approved to incorporate on February 16, 1970. The Company mainly operates the businesses of research and development, manufacturing, and sales of various thick-film resistors, thin-film resistors, and metal-plate resistors.

The Company's shares have been listed on the Taiwan Stock Exchange for trading since September 2022.

The financial statements were expressed in New Taiwan dollars, which is the Company's functional currency.

II. Approval Date and Procedures of The Financial Statements

These parent company only financial statements were released upon the approval of the Board of Directors on February 26, 2026.

III. Application of New and Revised International Financial Reporting Standards

(I) Initial application of the amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, "IFRSs") endorsed and issued into effect by the Financial Supervisory Commission (FSC).

Amendments to IAS 21 "Lack of Exchangeability"

The application of the amendment to IAS 21 "Lack of Exchangeability" will not result in a significant change in the Company's accounting policies.

(II) IFRSs endorsed by FSC applicable in 2026

New, Revised or Amended Standards and Interpretations	Release and effective date by International Accounting Standards Board (IASB)
Amendments to International Financial Reporting Standard 9 and 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 Accounting Standards Annual Improvements – Volume 11"	January 1, 2026
IFRS 17 "Insurance Contracts" (including the amendments from 2020 and 2021)	January 1, 2023

Amendments to International Financial Reporting Standard 9 and 7: "Amendments to the Classification and Measurement of Financial Instruments"

Amendments to the application guidance on the classification of financial assets The amendments mainly amend the requirements for the classification of financial assets, including:

(1) If a financial asset contains a contingency that may change the timing or amount of contractual cash flows, and the nature of the contingency is not directly related to basic loan risk and cost changes (e.g., whether the debtor achieves a specific carbon emission reduction target), such financial assets will still have contractual cash flows consisting entirely of principal and interest on the outstanding principal amount when the following two conditions are met:

The contractual cash flows arising from all possible scenarios (before or after the occurrence of contingencies) consist entirely of interest payments on the principal and the outstanding principal amount; and
There is no significant difference between the contractual cash flows arising from all possible scenarios and the cash flows of financial instruments with identical contractual terms but lacking contingent features.

(2) Financial assets without recourse are those for which the enterprise has the final right to receive cash flows, with the contract limiting those cash flows to those generated by specific assets.

(3) Clarify that the contractual connection tool uses a waterfall payment structure to create multiple tiers of securities, establishing a payment priority for financial asset holders. This results in a concentration of credit risk and a disproportionate allocation of cash shortfalls from the underlying pool among the different tiers.

Amendments to the application guidance on derecognition of financial liabilities

The amendment mainly explains that financial liabilities should be derecognized on the settlement date. However, when an enterprise uses an electronic payment system to settle financial liabilities with cash, it may elect to derecognize the financial liabilities before the settlement date if the following conditions are met:

The enterprise does not have the practical ability to withdraw, stop, or cancel the payment instruction.
An enterprise lacks the actual ability to access the cash to be used for settlement because of payment instructions.
The settlement risk associated with the electronic payment system is not significant.

The Company shall apply the amendment retrospectively without restating comparative periods and recognize the cumulative effect of the initial application as of the date of initial application. However, if an enterprise does not rely on hindsight and is able to recompile the data, it can choose to recompile the comparison period.

In addition to the above impacts, as of the date the Parent company only financial statements were authorized for issue, the Company has assessed the possible impact that the application of other standards would have on the Company's financial position and financial performance, and has determined that there would be no such material impact.

(III) IFRSs already announced by IASB but not yet endorsed and issued into effect by the FSC

14 -

15 -

New, Revised or Amended Standards and Interpretations	Effective Date Announced by IASB (Note 1)
Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”	To be confirmed
IFRS 18 “Presentation and Disclosure in Financial Statements”	January 1, 2027 (Note 2)
IFRS 19 “Subsidiaries without Public Accountability: Disclosures” (including amendments for 2025)	January 1, 2027
Amendments to IAS 21 “Translation to a Hyperinflationary Presentation Currency”	January 1, 2027

Note 1: Unless stated otherwise, the above New, Revised or Amended Standards and Interpretations are effective for annual reporting periods beginning on or after their respective effective dates.

Note 2: On September 25, 2025, the FSC announced that Taiwanese companies will be required to adopt IFRS 18 starting January 1, 2028, or may choose to adopt it earlier upon FSC approval.

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

IFRS 18 will replace IAS 1 “Expression of Financial Statements”. The main changes include:

The Company shall assess whether it has made investments in specific types of assets and provided financing to customers through its core operating activities, and based on this assessment, classify the income and expense items in the income statement into operating, investing, financing, income tax, and discontinued operations.
The income statement shall present operating profit, profit before financing and income tax, as well as subtotals and the total amount of profit.
Provide guidance on the principles of aggregation and disaggregation: The Company must identify the assets, liabilities, equity, income, expenses and cash flows from individual transactions or other matters, and classify and aggregate them based on the common characteristics, so that at least one of the items in the financial statements is with a similar characteristic. Items with distinct characteristics should be disaggregated in the main financial statements and notes. The Company only marks such items as "other" when a more informative label is not available.
Increase disclosure of management-defined performance measures: When the Company communicates publicly outside of the financial statements, and when management communicates its views on the Company’s overall financial performance to users of the financial statements, the Company shall disclose information related to management-defined performance measures in a single note to the financial statements. This disclosure shall include a description of the measure, how it is calculated, reconciliation to the nearest IFRS accounting standard line item or total, and the related income tax and non-controlling interest effects of the reconciliation items.

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

When the indirect method is used to prepare the statement of cash flows from operating activities, operating profit or loss should be used as the starting point for reconciliation.

The interest and dividend income received by the Company should be classified as investing activities, and the interest and dividend paid should be classified as financing activities. If the Company is assessed to have specific major operating activities, it must consider the nature of dividend income, interest income, and interest expense presented in the income statement to determine the appropriate classification of dividend receipts, interest receipts, and interest payments in the statement of cash flows. However, each of these cash flows may only be classified within a single activity in the statement of cash flows.

Addition to the aforementioned influences, up to the approval and released date of the Parent company only financial statements, the Company will continue evaluating other influences on financial status and performance resulting from amendments to the rules or explanations. The related influences are to be disclosed once the evaluation is accomplished.

IV. Summary of Significant Accounting Policies

(I) Compliance Statement

These Parent company only financial statements were prepared in accordance with the "Regulations Governing the Preparation of Financial Reports by Securities Issuers".

(II) Basis of preparation

The Parent company only financial statements have been prepared on the historical cost basis except for financial instruments and the present value of the defined benefit obligation deducting the net defined benefit liabilities (assets) of the fair value of any plan assets which are measured at fair value.

The fair value measurements are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

Level 1 inputs: quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.
Level 2 inputs: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 inputs: unobservable inputs for the asset or liability.

In preparing the Parent company only financial statements, the equity method is adopted to the investments in subsidiaries and associates. For the purpose of making the current profit and loss, other comprehensive income and equity in the Parent company only financial statements identical to those in the Company's owner, several accounting treatment differences under the parent company only and consolidation basis are adjusted into "Investments Accounted for Using Equity Method", "Share of the Profit or Loss of Subsidiaries and Associates Accounted for Using the Equity Method", "Share of Other Comprehensive Income of Subsidiaries and Associates Accounted for Using Equity Method" and related items.

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(III) Classification of Current and Non-current Assets and Liabilities

Current assets include:

Assets held primarily for the purpose of trading;
Assets that are expected to be realized within twelve months from the balance sheet date; and
Cash and cash equivalent (unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the date of statement of financial position).

Current liabilities include:

Liabilities held primarily for the purpose of trading;
Settlements are expected to be due and made within twelve months from the balance sheet date, and
Liabilities that do not have substantial rights to defer the settlement period to at least 12 months after the balance sheet date

Assets and liabilities that are not classified as current are classified as non-current.

(IV) Foreign currency

In preparing the Parent company only financial statements, transactions in currencies (foreign currencies) other than the Company’s functional currency are recognized at the exchange rates prevailing at the dates of the transactions.

Foreign currency monetary amount is translated at the closing rate at each date of the balance sheet. Exchange differences arising from settlement or translation are recognized as profit or loss at the period.

Non-monetary items carried at historical cost is reported using the exchange rate at the date of the transaction and will not be calculated again.

In preparing the Parent company only financial statements, assets and liabilities from foreign operation, including subsidiaries whose location or currency are different from the Company, are translated into the presentation currency, the New Taiwan dollar, at the exchange rates prevailing at the end of the reporting period. Income and expense items are translated at the average exchange rates at the period. The resulting currency translation differences are recognized in other comprehensive income.

(V) Inventories

Inventories include raw materials, semi-finished products, work in process, finished good Inventory and products. Inventories are stated at the lower of cost or net realizable value. The lower of cost and net realizable value is based on the individual inventory items. Net realized value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and the estimated costs necessary to make the sale. The inventory cost is measured by using weighted average method.

(VI) Investment in subsidiaries

The Company’s investments in the subsidiaries are accounted for using the equity method. Subsidiaries are entities which the Company holds the control of.

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Under the equity method, an investment is initially recognized in the statements of financial positional cost and adjusted thereafter to recognize the Company's share of profit or loss and other comprehensive income of the subsidiaries as well as the distribution received. In addition, the Company also recognizes its share in the changes in equities of subsidiaries.

Changes in equity in the ownership of subsidiaries which do not result in loss of control are disposed as equity transaction. The difference between carrying amount invested and the fair value paid and payable or received and receivable is directly recognized as equity.

The Company considers cash-generating unit in the entire financial statement as testing for impairment and compares its recoverable amount with its carrying amount. If the recoverable amount of assets increases, the reversal of impairment loss will be recognized as profit. However, the carrying amount of assets after the reversal of impairment loss shall not exceed the carrying amount that would have been determined net of required amortization and have no impairment loss been recognized.

Unrealized profit and loss from downstream transactions with a subsidiary are eliminated in the Parent company only financial statements. Profit and loss from upstream and transactions between subsidiaries are recognized in the Company's Parent company only financial statements only to the extent that interests in the subsidiary are not related to the Company.

(VII) Investment in associates

An associate is an enterprise over which the Company has significant influence but is not a subsidiary or a joint venture. The Company adopts the equity method to account for its investment in associates.

Under the equity method, an investment in an associate is initially recognized in the statements of financial positional cost and adjusted thereafter to recognize the Company's share of profit or loss and other comprehensive income of the associate as well as the distribution received. In addition, for the changes in the equity of the associate, the Company's entitlement to the changes in the equity of the associate are recognized according to the shareholding ratio.

When an associate issues new shares, if the Company fails to subscribe to the shares proportionally to its shareholding, resulting in a change in the shareholding ratio and thus causing an increase or decrease in the net equity investment, the increase or decrease should adjust the capital reserve - recognized under the equity method in changes to the net equity and investments in associates, and the investments accounted for using the equity method. However, if the shareholding ratio is not subscribed or acquired, resulting in a decrease in the ownership interest of the associate, the amount recognized in other comprehensive income related to the associate shall be reclassified according to the proportion of decrease. The same basis must be followed for the direct disposal of the relevant assets or liabilities; if the aforementioned adjustment should be debited to the capital surplus, and if the balance of the capital surplus generated from the investment by equity method is insufficient, the difference is debited to the retained earnings.

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When assessing impairment, the Company treats the entire book value (including goodwill) of the investment as a single asset to compare the recoverable amount with the book value, and conducts an impairment test. The recognized impairment loss is not allocated to any assets that constitute an integral part of the book value of the investment, including goodwill. Any reversal of the impairment loss is recognized to the extent of the subsequent increase in the recoverable amount of the investment.

Gains and losses arising from upstream, downstream, and lateral transactions between the Company and an associate are recognized in the parent company only financial statements only to the extent that they are not related to the Company's equity in the associate.

(VIII) Property, Plant and Equipment

The property, plant and equipment are recognized at costs and subsequently measured at costs of the amount less accumulated depreciation.

Property, plant and equipment in the course of construction for production are recognized as the balance of cost deducting the accumulated impairment losses and such cost includes professional service fees and borrowing costs eligible for capitalization. These assets are measured at the lower of cost or net realizable value before they are expected to be used. The proceeds from sales and cost are recognized in profit or loss. Upon completion and ready for intended use, such assets are classified to the appropriate categories of property, plant and equipment, and depreciation of these assets commences.

Except that the self-owned lands are not provided with depreciation, depreciation is provided using the straight-line method for other property, plant and equipment, and each significant part is depreciated separately. The Company reviews the estimated useful lives, residual values and depreciation method at least at the end of each reporting period, and with the effect of any changes in estimates accounted for on a prospective basis.

On derecognition of an item of property, plant and equipment, the difference between the sales proceeds and the carrying amount of the asset is recognized in profit or loss.

(IX) Investment Property

Investment property is property held to earn rentals or for capital appreciation or both (including the right-of-use assets meeting the definition of investment property).

Investment property self-owned is initially measured at cost, including transaction costs, and subsequent measurement shall be presented at a amount of costs subtracted by accumulated depreciation and accumulated impairment losses.

Investment property acquired with lease is initially measured at cost, and subsequent measurement shall be presented at a amount of costs subtracted by accumulated depreciation, and the remeasurement is adjusted for the lease liabilities.

The depreciation of all investment properties are provided on the straight line basis.

Property, plant and equipment and property of the right-of-use asset are transferred to investment property at the carrying amount when no longer used by the owner.

On derecognition of an investment property, the difference between the sales proceeds and the carrying amount of the asset is recognized in profit or loss.

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(X) Goodwill

The goodwill acquired in a business combination adopts the amount of goodwill recognized on the date of acquisition as the cost, and the subsequent measurement is at the amount of cost deducting the accumulated impairment loss.

For the purpose of testing impairment, the goodwill is distributed to each cash generating unit, or the cash generating unit groups (“CGU”) expected to benefitted from the combination synergy of the Company.

Every year, or when any sign showing that the cash generating units to which the goodwill is distributed may be impaired, the cash generating unit is tested for impairment by comparing the carrying amount of the unit including the goodwill and the recoverable amount. If the goodwill distributed to a cash generating unit is acquired in a business combination during the year, such unit shall be tested for impairment before the end of the year. If the cash generating units to which the goodwill is distributed has a recoverable amount lower than the carrying amount, the impairment loss is to reduce the carrying amount of the distributed goodwill in that cash generating unit, and then reduce the carrying amount of each asset within the unit proportionally. Any impairment loss is directly recognized as the loss of the current period. Impairment loss of goodwill shall not be reversed in the subsequent period.

(XI) Other intangible assets

Acquired individually

Intangible assets with finite useful lives acquired separately are initially measured at cost and subsequently at cost less accumulated amortization. The intangible assets are amortized on the straight line basis within the useful life. The Company reviews the estimated useful lives, residual values and amortization method at least at the end of each reporting period, and with the effect of any changes in estimates accounted for on a prospective basis.

Internally generated - research and development expenditure

The expenditure of research is recognized as expense upon occurrence.

Acquired in a business combination

The intangible asset acquired in a business combination is measured at the fair value on the date of acquisition, and recognized separately from the goodwill; the subsequent measurement approach is same as the intangible asset acquired alone.

Derecognition

On derecognition of an item of intangible assets, the difference between the sales proceeds and the carrying amount of the asset is recognized in profit or loss of the period.

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(XII) Impairment of property, plant and equipment, right-of-use asset, investment property, and other intangible assets (except for goodwill).

The Company assesses if any sign showing that property, plant and equipment, right-of-use assets, investment property and other intangible assets (excluding goodwill) may be impaired at each balance sheet date; if there is any sign of impairment, the recoverable amount of such asset is estimated. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated on a reasonable and consistent basis to the smallest CGU group.

Where the recoverable amount is the higher between the fair value less costs to sell and the value in use, if the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.

When impairment loss subsequently reverses, the carrying amounts of the asset or cash-generating units are increased to the revised recoverable amounts. However, the increased carrying amounts shall not exceed the carrying amounts of the asset, cash-generating units which were not recognized as impairment loss at the past period (less amortization or depreciation). The reversal of impairment loss is recognized as profit or loss.

(XIII) Financial instruments

Financial assets and liabilities shall be recognized in the Parent company only financial statements when the Company becomes a party to the contractual provisions of the instruments.

If financial assets and financial liabilities are not measured at fair value, they are measured at the transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

Financial asset

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

(1) Classification of measurement

Financial assets held by the Company are classified to financial assets measured at fair value, measured at amortized cost, and equity instruments measured at fair value through other comprehensive income.

A. Financial assets at FVTPL

Financial assets at fair value through profit or loss are those mandatorily at fair value through profit or loss. Financial assets at fair value through profit or loss are investments in equity instruments that the Company has not designated to be at fair value through other comprehensive income.

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Financial assets measured at fair value through profit or loss are measured at fair value. Dividends and interest are recognized in other income, and then the profit or loss is recognized in other gains and losses. Please refer to Note 25 for the methods to determine the fair value.

B. Financial assets measured at amortized cost

When the financial assets invested by the Company satisfies the following two criteria at the same time, it is classified as amortized cost financial assets:

a. Where the financial assets are held under certain business model, and the purpose of such model is to hold the financial assets in order to collect contract cash flows; and

b. Where contract terms generated cash flow of specific date, and such cash flow is completely for the payment of the interest of principle and external circulating principle amount.

After initially recognized, financial assets measured at amortized cost (including cash and cash equivalent, notes and accounts receivables at the amortized costs, account receivables, other receivables, and refundable deposits) are measured at the amortized cost of the carrying amount determined with effective interest method less any impairment loss. Any foreign currency exchange gains and losses are recognized as profit or loss, and the interest income is calculated as the effective interest rate multiplies the total carrying amount of the financial assets.

Credit losses on financial assets are significant financial difficulty of the borrower, a breach of contract, it becoming probable that the borrower will enter bankruptcy or other financial reorganization, or the disappearance of an active market for the financial asset because of financial difficulties.

Cash equivalents, for the purpose of meeting short-term cash commitments, consist of highly liquid time deposits and bonds repurchase agreements that are readily convertible to known amounts of cash, which are subject to an insignificant risk of changes in value and acquired within three months.

C. Investments in equity instruments measured at fair value through other comprehensive income

On initial recognition, the Company may irrevocably designate investments in equity instruments that is not held for trading and not recognized as contingent consideration as at FVTOCI.

Investments in equity instruments measured at fair value through other comprehensive income are measured at fair value. Subsequently the changes in fair value are reported in other comprehensive income and accumulated in other equity. On disposal of investments, the accumulated profit or loss is directly transferred to retained earnings and it is not reclassified to profit or loss.

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The dividend from investments in equity instruments measured at fair value through other comprehensive income are recognized in profit or loss upon the Company's right to receive payment is established, except for apparently the dividend representing the recovery of the partial investment cost.

(2) Impairment of financial assets

At the date of each balance sheet, the Company reviews expected credit losses to estimate the impairment loss of financial assets, including accounts receivable, measured at the amortized cost.

The loss allowance for accounts receivable is measured at an amount equal to useful lives expected credit losses. Other financial assets are assessed to determine whether the credit risk has significantly increased since the original recognition. If there is no significant increase, then the allowance loss is recognized according to the 12-month expected credit loss. If it has increased significantly, then allowance loss is recognized according to the lifetime expected credit loss.

Expected credit losses are weighted average credit losses with the probability of default events. The 12-month expected credit losses are expected credit losses that result from default events possible within 12 months after the reporting date. Lifetime expected credit losses result from all possible default events over the expected life of the financial instruments.

For the purpose of internal controls on credit risk, without considering the collaterals it holds, the Company determines the events where the debtor is impossible to repay the debt as a breach of contract:

All impairment losses on financial assets is decreased its carrying amount through contra accounts.

(3) Derecognition of financial assets

The Company derecognizes the financial assets only when the contractual rights to the cash flows from the financial assets expire, or when it transfers the financial assets and substantially all the risks and rewards of ownership of the financial assets to another entity.

On derecognition of financial assets at amortized cost in its entirety, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. On derecognition of Investments in equity instruments measured at fair value through other comprehensive income, the cumulative gain or loss that had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss.

Equity instrument

The equity instruments issued by the Company are recognized at the amount of proceeds obtained deducting the direct issuance costs.

Financial liability

(1) Follow-up measurement

The financial liabilities held by the Company are measured at amortized cost using effective interest method.

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(2) Derecognition of financial liabilities

On the derecognition of financial liabilities, the difference between their carrying amount and the consideration paid and payable, including any transfer of non-cash assets or liabilities, is recognized as profit or loss.

(XIV) Revenue recognition

The Company allocates the transaction price to each performance obligation and recognizes the revenue when each of the obligation is satisfied after the customer has identified it.

Sales revenue

The income from sales of merchandise is from the sales of electronic parts and components. Since the customers have the right of pricing and use, bear the responsibility of resales, and assume the risk of obsolete products at the time when the electronic part and component products are delivered to the customers, the Company recognizes the income and the accounts receivable at this point; the payment advance for product sales is recognized as a contract liability.

Service income

The service income is generated from the processing of products such as electronic parts and components for customers, and recognized at the time when the service provision is completed.

(XV) Lease

At the inception of a contract, the Company assesses whether the contract is, or contains, a lease.

The Company as lessor

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

The sublease of right-of-use assets of the Company is classified by reference to right-of-use assets, instead of underlying assets. However, if the main lease is short-term lease applicable to recognition exemption of the Company, such sublease is classified as operating leases.

Under the operating lease, lease payments are recognized as revenue on a straight-line basis.

The Company as lessee

Except for payments for low-value asset leases and short-term leases applicable to exemption of recognition are recognized as expenses on a straight-line basis, the Group recognizes right-of-use assets and lease liabilities for all leases at the commencement date of the lease.

Right-of-use asset is initially measured at cost, and subsequent measurement shall be presented at a amount of costs subtracted by accumulated depreciation and accumulated impairment losses, and the remeasurement is adjusted of the lease liabilities. Right-of-use assets are presented on a separate line in the Parent company only balance sheets.

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Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.

Lease liabilities are initially measured at the current value of lease payment. The lease payments are discounted using the interest rate in a lease if that rate can be readily determined. If that rate cannot be readily determined, the Group uses the incremental borrowing rate.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in the lease payment in a lease term, the Company remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized as profit or loss. Lease liabilities are presented on a separate line in the standalone balance sheets.

(XVI) Borrowing costs

Borrowing Costs requires that borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset, that necessarily takes a substantial period of time to get ready for its intended use or sale, are included in the cost of the asset.

Where funds are borrowed specifically, costs eligible for capitalization are the actual costs incurred less any income earned on the temporary investment of such borrowings.

Other borrowing costs at the period are recognized as profit or loss.

(XVII) Government grants

A government grant is recognized only when there is reasonable assurance that the Company will comply with any conditions attached to the grant and the grant will be received.

Where the government grants are to give the Company the immediate financial support, with no future related costs, shall be recognized as profit or loss in the period in which it is receivable.

(XVIII) Employee benefits

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.

Pensions

For defined contribution plans, the amount of contribution payable in respect of service rendered by employees in that period should be recognized as expenses.

Defined benefit costs (including service cost, net interest and remeasurement) under the defined benefit retirement benefit plans are determined using the Projected Unit Credit Method. Service cost (including the service cost of the period) and net interest on the net defined benefit liability are recognized as employee benefits expense in the period they occur.

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Remeasurement, comprising actuarial gains and losses and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which they occur.

Net defined benefit liability represents the actual deficit in the Group's defined benefit plan. Net defined benefit liability shall not exceed the present value of refunds from the plan or reductions in future contributions to the plan.

(XIX) Income tax

The income tax expense represents the sum of the tax currently payable and deferred tax.

Tax currently payable

According to Income Tax Act in Republic of China, an additional income tax levied at unappropriated earnings are recognized in shareholders' meeting.

Income tax payable for prior period is adjusted to the current income tax.

Deferred tax

Deferred tax is accounted for temporary differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax basis used in the computation of taxable profit or loss.

Deferred tax liability is generally recognized for all taxable temporary differences. Deferred tax asset is recognized for deductible temporary differences or tax credit generated to the extent that taxable profit is probably available.

The carrying amount of deferred tax assets is reviewed at the date of balance sheet and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be recovered. The deferred tax assets originally not recognized is also reviewed at the date of balance sheet and increased to the extent that it is probable that sufficient taxable profits will be available to allow all or part of the deferred tax asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the year in which the liability is settled or the asset is recovered, based on tax rates and laws that have been enacted or substantively enacted by the date of balanced sheet. The measurement of deferred tax liabilities and assets reflects the tax consequences that arise from the manner in which the Company expects, at the date of balance sheet, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax

Current and deferred tax are recognized in profit or loss, except the current and deferred tax that relates to items recognized in other comprehensive income or directly in equity are recognized respectively in other comprehensive income or directly in equity.

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V. Significant Accounting Assumptions and Judgments, and Major Sources of Estimation

Uncertainty

In the application of the Company's accounting policies, the management is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experiences and other factors that are considered relevant. Actual results may differ from these estimates.

Major sources of estimates and assumption uncertainty are as below:

Impairment of inventories

Inventory's net realizable value is the balance of expected selling price during the ordinary course of business deducting the expected costs to be input until completion and related variable selling expenses. Such estimates are evaluated based on the current market conditions and historic sales experience of the similar products; the changes in the market conditions may materially affect such estimation results.

VI. Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash on hand and penny cash	$ 71	$ 109
Check and demand deposit	62,594	73,530
Cash equivalents
Time deposits with an initial maturity of within three months	192,013	165,404
Repurchase agreements	53,013	45,000
	$ 307,691	$ 284,043

VII. Financial assets at FVTPL - Current

	December 31, 2025	December 31, 2024
Financial asset
Financial assets designated as at FVTPL
Non-derivative financial assets
Private placement of the domestic TPEx listed shares	$ 3,348	$ 4,207
Hybrid financial assets
Convertible bonds of TPEx-listed companies	61,380	58,625
	$ 64,728	$ 62,832

VIII. Financial assets at fair value through other comprehensive income- non-current

	December 31, 2025	December 31, 2024
Investment in equity instrument
TWSE/TPEx-listed stocks	$ 31,586	$ 18,540
Domestic shares not listed in TWSE or TPEx	19,143	20,598
Foreign unlisted stocks	20,997	56,018
	$ 71,726	$ 95,156

The Company's Board of Directors resolved to participate in the cash capital increase of an unlisted foreign company in November 2025, and an investment payment of CNY 9.92 million was made in December 2025, classified as prepaid investment.

IX. Notes receivable and accounts receivable

	December 31, 2025	December 31, 2024
Notes receivable
Occurred due to operation
Amortized cost
Total carrying amount	$ 7,588	$ 10,651
Accounts receivable - non-related parties
Amortized cost
Total carrying amount	$ 240,122	$ 213,190
Less: Allowance for bad debts	330	210
	$ 239,792	$ 212,980
Accounts receivable - related parties (Note 26)
Amortized cost
Total carrying amount	$ 203,774	$ 200,945

The Company has the average credit period for product sales of 30 to 150 days. To mitigate credit risk, the management of the Company has designated functional personnel responsible for decision on line of credit, credit approval and other supervision to ensure proper action has been taken to collect overdue receivables. In addition, the collectible amount of accounts receivable shall be reviewed individually at the date of balance sheet to ensure the uncollectible receivables has been listed to appropriate impairment loss. Accordingly, the management of the Company considers the Company's credit risk has significantly decreased.

The loss allowance for receivables is measured at an amount equal to useful lives expected credit losses. The expected credit losses during the duration considers the default history of the customer in the past, the current financial position, and the conditions of the industry and economy. The experience on the Company's credit losses presents that types of loss on different customer groups do not bring obvious differences, without further grouping customers.

The Company's loss allowance for receivables are analyzed by the aging of the overdue days, as follows:

December 31, 2025

	Not Past Due	Past due 0 - 30 days	Past due 31 - 60 days	Past due 61 - 180 days	Past due over 180 days	Total
Expected credit loss rate (%)	0~0.1	0~1	2	10~60	100
Total carrying amount	$ 406,728	$ 44,722	$ 2	$ 12	$ 20	$ 451,484
Loss allowance (lifetime ECLs)	(233)	(75)	-	(2)	(20)	(330)
Amortised cost	$ 406,495	$ 44,647	$ 2	$ 10	$ -	$ 451,154

December 31, 2024

	Not Past Due	Past due 0 - 30 days	Past due 31 - 60 days	Past due 61 - 180 days	Past due over 180 days	Total
Expected credit loss rate (%)	0~0.1	0~1	2	10~60	100
Total carrying amount	$ 415,995	$ 8,740	$ 37	$ 14	$ -	$ 424,786
Loss allowance (lifetime ECLs)	( 210 )	-	-	-	-	( 210 )
Amortised cost	$ 415,785	$ 8,740	$ 37	$ 14	$ -	$ 424,576

The information on changes in the Company's loss allowance on accounts receivable is as follows:

	2025	2024
Balance at the beginning of the year	$ 210	$ 606
Current recognition (reversal)	120	( 157 )
Current write-off	-	( 239 )
Balance at the end of the year	$ 330	$ 210

X. Inventories

	December 31, 2025	December 31, 2024
Raw materials	$ 65,603	$ 50,952
Materials	8,756	7,529
Semi-finished products	69,155	67,811
Work in process	24,539	43,326
Finished goods	111,500	59,419
Merchandise	10,797	5,255
Inventories in transit	14,139	-
	$ 304,489	$ 234,292

The operating costs related to inventory in 2025 and 2024 were NT$1,111,806 thousand and NT$1,023,128 thousand, respectively, including:

	2025	2024
Loss of scrapped inventory	$ 6,579	$ 14,042
Loss on physical inventory	509	38
Revenue from sale of scraps	( 5,562 )	( 5,104 )
	$ 1,526	$ 8,976

XI. Investment accounted for using the equity method

	December 31, 2025	December 31, 2024
Investment in subsidiaries	$ 66,041	$ 52,705
Investment in associates	12,134	11,425
	$ 78,175	$ 64,130

Please refer to Tables 4 and 5 for the information on the business nature and country of registration of the investee company under the equity method.

(I) Investment in subsidiaries

	December 31, 2025		December 31, 2024
	Amount	Equity %	Amount	Equity %
Shenzhen Ever Ohms Electronic Co., Ltd. (Ever Ohms Electronic)	$ 66,041	100	$ 52,705	100

The Company invested to incorporate Ever Ohms Electronic in April 2018, engaging in the sales of various resistors. As of December 31, 2025, the accumulated investment is NT$60,359 thousand.

(II) Investment in associates

	December 31, 2025		December 31, 2024
	Amount	Equity %	Amount	Equity %
Associates that are not individually material
Not TWSE/TPEx Listed Companies	$ 12,134	20	$ 11,425	20

The Company's share of profit and loss and other comprehensive income of the above-mentioned associate under the equity method is recognized based on the associate's unaudited financial statements for the same period; the management of the Company made the evaluation on the above-mentioned investee company using its financial statements that are not audited by the CPAs, and no significant impact has been generated.

XII. Property, Plant and Equipment 2025

	Land	Building	Machinery and equipment	Other equipment	Unfinished construction and equipment to be inspected	Total
Cost
Balance as of January 1, 2025	$ 100,810	$ 392,513	$ 1,097,825	$ 64,471	$ 56,323	$ 1,711,942
Addition	-	33,395	64,348	5,642	( 27,698 )	75,687
Disposal	-	-	( 27,131 )	( 200 )	-	( 27,331 )
Balance as of December 31, 2025	$ 100,810	$ 425,908	$ 1,135,042	$ 69,913	$ 28,625	$ 1,760,298
Accumulated depreciation
Balance as of January 1, 2025	$ -	$ 160,830	$ 706,302	$ 31,771	$ -	$ 898,903
Depreciation expense	-	24,182	122,580	8,392	-	155,154
Disposal	-	-	( 27,131 )	( 200 )	-	( 27,331 )
Balance as of December 31, 2025	$ -	$ 185,012	$ 801,751	$ 39,963	$ -	$ 1,026,726
Net amount on December 31, 2025	$ 100,810	$ 240,896	$ 333,291	$ 29,950	$ 28,625	$ 733,572

2024

	Land	Building	Machinery and equipment	Other equipment	Unfinished construction and equipment to be inspected	Total
Cost
Balance as of January 1, 2024	$ 100,810	$ 392,513	$ 1,030,429	$ 45,590	$ 67,086	$ 1,636,428
Addition	-	-	82,156	19,732	( 10,763 )	91,125
Disposal	-	-	( 14,760 )	( 851 )	-	( 15,611 )
Balance as of December 31, 2024	$ 100,810	$ 392,513	$ 1,097,825	$ 64,471	$ 56,323	$ 1,711,942
Accumulated depreciation
Balance as of January 1, 2024	$ -	$ 138,330	$ 599,549	$ 25,993	$ -	$ 763,872
Depreciation expense	-	22,500	121,513	6,616	-	150,629
Disposal	-	-	( 14,760 )	( 838 )	-	( 15,598 )
Balance as of December 31, 2024	$ -	$ 160,830	$ 706,302	$ 31,771	$ -	$ 898,903
Net amount on December 31, 2024	$ 100,810	$ 231,683	$ 391,523	$ 32,700	$ 56,323	$ 813,039

The addition of property, plant and equipment and the payment amount in the statement of cash flows are reconciled as below:

31 -

Investing activities affecting both cash and non-cash items
Addition of property, plant and equipment
Increase (decrease) in prepayment for plants and Capitalization of interest
Decrease (increase) in accounts payable, equipment
Cash paid for purchasing property, plant and equipment

2025	2024
$ 75,687	$ 91,125
12,482	( 6,185 )
( 1,208 )	( 1,317 )
( 1,085 )	18,460
$ 85,876	$ 102,083

Depreciation is computed on a straight-line basis over the following estimated useful life:

Buildings
Offices, car parks, plants, and warehouses
7 to 50 years

Machinery and equipment
Packaging equipment
2 to 10 years
Laser equipment
5 to 10 years
Sputtering equipment
4 to 10 years
Printing equipment
1 to 10 years
Others
1 to 10 years
Other equipment
1 to 20 years

Please see note 27 for the amount of property, plant, and equipment pledged as collaterals.

XIII. Lease agreements
(I) Right-of-use assets
2025

Cost	Land	Transportation Equipment	Total
Balance as of January 1, 2025	$ 29,495	$ 9,287	$ 38,782
Addition	-	2,474	2,474
Derecognition upon expiration of lease	-	( 8,117 )	( 8,117 )
Balance as of December 31, 2025	$ 29,495	$ 3,644	$ 33,139
Accumulated depreciation
Balance as of January 1, 2025	$ 10,814	$ 7,250	$ 18,064
Depreciation expense	1,790	2,239	4,029
Derecognition upon expiration of lease	-	( 8,117 )	( 8,117 )
Balance as of December 31, 2025	$ 12,604	$ 1,372	$ 13,976
Net amount on December 31, 2025	$ 16,891	$ 2,272	$ 19,163

2024

Cost	Land	Transportation Equipment	Total
Balance as of January 1, 2024	$ 29,495	$ 10,963	$ 40,458
Addition	-	1,170	1,170
Derecognition upon expiration of lease	-	( 2,846 )	( 2,846 )
Balance as of December 31, 2024	$ 29,495	$ 9,287	$ 38,782
Accumulated depreciation
Balance as of January 1, 2024	$ 9,025	$ 6,810	$ 15,835
Depreciation expense	1,789	3,286	5,075
Derecognition upon expiration of lease	-	( 2,846 )	( 2,846 )
Balance as of December 31, 2024	$ 10,814	$ 7,250	$ 18,064
Net amount on December 31, 2024	$ 18,681	$ 2,037	$ 20,718

Except for the additions and depreciation expenses recognized listed above, there was no significant sublease or impairment of the Company's right-of-use assets in 2025 and 2024.

(II) Lease liabilities

	December 31, 2025	December 31, 2024
Carrying amount of lease liabilities
Current	$ 3,449	$ 3,319
Non-current	$ 16,665	$ 18,352

Ranges of discount rates (%) for lease liabilities are as follows:

	December 31, 2025	December 31, 2024
Land	1.31~1.64	1.31~1.64
Transportation Equipment	1.79~1.94	1.07~1.79

(III) Material leases and terms

The lands where the Company's plant is located are leased from the Export Processing Zone Administration, MOEA (previously named: Export Processing Zone Division, MOEA). The lease term is 5-10 years, or expiring in 2025 and 2036; the contract may be renewed upon the expiration. In case the lands are repriced by the government pursuant to laws during the lease term, the rent will be calculated and collected based on the adjusted land price from the next day of land price announcement.

(IV) Information on other lease

	2025	2024
Expenses relating to short-term leases	$ 528	$ 537
Expenses of low-value asset leases	$ 255	$ 233
Total cash outflow for leases	$ 5,127	$ 6,173

For the leases qualifying as short-term leases or leases of low-value assets, the Company has elected to apply the recognition exemption and thus did not recognize right-of-use assets and lease liabilities for these leases.

XIV. Investment Property 2025

	Main structure	Right-of-use assets	Total
Cost
Balance as of January 1, 2025 and December 31, 2025	$ 7,618	$ 395	$ 8,013
Accumulated depreciation
Balance as of January 1, 2025	$ 2,526	$ 246	$ 2,772
Depreciation expense	245	40	285
Balance as of December 31, 2025	$ 2,771	$ 286	$ 3,057
Net amount on December 31, 2025	$ 4,847	$ 109	$ 4,956
2024
	Main structure	Right-of-use assets	Total
Cost
Balance as of January 1, 2024	$ 7,618	$ 384	$ 8,002
Addition	-	11	11
Balance as of December 31, 2024	$ 7,618	$ 395	$ 8,013
Accumulated depreciation
Balance as of January 1, 2024	$ 2,280	$ 206	$ 2,486
Depreciation expense	246	40	286
Balance as of December 31, 2024	$ 2,526	$ 246	$ 2,772
Net amount on December 31, 2024	$ 5,092	$ 149	$ 5,241

Depreciation is computed on a straight-line basis over the following estimated useful life for the investment property

Main buildings 26 years

Right-of-use assets 10 years

The Company's investment property is located in Kaohsiung Linguang Technology Industrial Park (previously name: Linguang Park, Kaohsiung Export Processing Zone). The lands are owned by the government, and the Company only possesses the ownership of the main buildings, and the lands (right-of-use asset) are used via the long-term lease. Therefore, the market transactions are infrequent, and no reliable substitute fair value estimate is available; hence the fair value cannot be determined reliably.

Lease term of the investment property is one year.

The operating lease payments receivable for the buildings is as follows:

	December 31, 2025		December 31, 2024
Within a year	$ 500		$ 500
Other intangible assets
2025
	Patent right	Proprietary technologies	Computer software	Total
Cost
Balance as of January 1, 2025	$ 3,077	$ 20,700	$ 17,107	$ 40,884
Acquired individually	63	-	1,395	1,458
Balance as of December 31, 2025	$ 3,140	$ 20,700	$ 18,502	$ 42,342
Accumulated amortization
Balance as of January 1, 2025	$ 1,934	$ 13,455	$ 16,623	$ 32,012
Amortization expenses	283	2,070	473	2,826
Balance as of December 31, 2025	$ 2,217	$ 15,525	$ 17,096	$ 34,838
Net amount on December 31, 2025	$ 923	$ 5,175	$ 1,406	$ 7,504
2024
	Patent right	Proprietary technologies	Computer software	Total
Cost
Balance as of January 1, 2024	$ 2,949	$ 20,700	$ 17,107	$ 40,756
Acquired individually	128	-	-	128
Balance as of December 31, 2024	$ 3,077	$ 20,700	$ 17,107	$ 40,884
Accumulated amortization
Balance as of January 1, 2024	$ 1,657	$ 11,385	$ 15,460	$ 28,502
Amortization expenses	277	2,070	1,163	3,510
Balance as of December 31, 2024	$ 1,934	$ 13,455	$ 16,623	$ 32,012
Net amount on December 31, 2024	$ 1,143	$ 7,245	$ 484	$ 8,872

For the aforesaid useful life, the amortization expenses are provided for intangible assets on the straight line basis for the following useful life:

Patent right	10 to 19 years
Proprietary technologies	10 years
Computer software	5 years

XVI. Short-term borrowings

	December 31, 2025	December 31, 2024
Unsecured borrowings
Credit loans	$ 490,000	$ 390,000
Annual interest rate (%)	1.85~2.09	1.92~2.1

XVII. Other payables

	December 31, 2025	December 31, 2024
Wages and bonuses payable	$ 41,354	$ 44,548
Payable expenses for repair and consumables	26,564	24,670
Accounts payable, equipment	10,370	9,285
Utility expenses payable	6,961	5,976
Premium payable	6,584	6,125
Employees’ remuneration and directors’ remuneration payable	6,000	6,000
Freight payable	5,663	4,291
Others	13,754	16,579
	$ 117,250	$ 117,474

XVIII. Post-employment benefit plans

(I) Defined contribution plans

The pension system of the "Labor Pension Act" is applicable to the Company, belonging to the affirmed appropriation of pension plan under the management of the government, and pension is appropriated at the rate of 6% of the monthly salary of employees into the personal dedicated account of the Bureau of Labor Insurance.

(II) Defined benefit plan

Part of the employees of the Company has labor pension system as defined benefit plans under the Labor Standards Act of R.O.C.. The payment of the employee pension is made based on an employee's length of service and average monthly salary for the six-month period prior to retirement approved. The Company contributes the pension as 2% of the total monthly salary, to the Labor Retirement Reserve Supervisory Committee for depositing the contribution in the dedicated account under the name of the committee with Bank of Taiwan. Before the end of a year, if the balance in the dedicated account is estimated insufficient to pay the workers expected qualified for retirement in the next year, such difference will be contributed in a lump sum by the end of next March. The Funds are operated and managed by the government's designated authorities. Accordingly, the Company does not have any right to intervene in the investments of the Funds.

The amount of defined benefit plans recognized in the Parent company only balance sheets is as follows:

	December 31, 2025	December 31, 2024
Present value of a defined benefit obligation	$ 15,710	$ 14,826
Fair value of plan assets	( 13,231 )	( 12,831 )
Net defined benefit liability	$ 2,479	$ 1,995

Movements in net defined benefit liabilities are as follows:

	Present value of defined benefit obligation	Fair value of plan assets	Net defined benefit liability
January 1, 2025	$ 14,826	($ 12,831)	$ 1,995
Recognized in profit or loss - interest expenses (incomes)	241	( 209 )	32
Remeasurement of the net defined benefit liability/asset
Return on plan assets (excluding amounts included in net interest expense)	-	( 918 )	( 918 )
Actuarial loss - changes in financial assumptions	221	-	221
Actuarial loss - experience adjustments	1,569	-	1,569
Defined benefit costs recognized in other comprehensive income	1,790	( 918 )	872
Contributions from employer	-	( 120 )	( 120 )
Benefits paid	( 1,147 )	847	( 300 )
December 31, 2025	$ 15,710	($ 13,231)	$ 2,479
January 1, 2024	$ 16,169	($ 12,123)	$ 4,046
Recognized in profit or loss - interest expenses (incomes)	222	( 168 )	54
Remeasurement of the net defined benefit liability/asset
Return on plan assets (excluding amounts included in net interest expense)	-	( 1,057 )	( 1,057 )
Actuarial gain - changes in financial assumptions	( 424 )	-	( 424 )

(Continued on next page)

(Continued)

	Present value of defined benefit obligation	Fair value of plan assets	Net defined benefit liability
Actuarial gain - experience adjustments	($ 504)	$ -	($ 504)
Defined benefit costs recognized in other comprehensive income	( 928)	( 1,057)	( 1,985)
Contributions from employer	-	( 120)	( 120)
Benefits paid	( 637)	637	-
December 31, 2024	$ 14,826	($ 12,831)	$ 1,995

Due to the defined benefit plans under the Labor Standards Act of R.O.C. the Company is exposed to the following risks:

Investment risk

The pension funds are invested in domestic and foreign equity securities, debt securities, bank deposits, etc. The investment is conducted at the discretion of the Bureau of Labor Funds' designated authorities or under the mandated management. However, the distributable amount of plan assets of the Company shall not be less than the return calculated by the average interest rate on a two-year time deposit published by the local banks.

Interest rate risk

A decrease in a bond interest rate will increase the present value of the defined benefit obligation. However, the return on the debt investments of the plan assets will increase as well. The two will be partially offset on net defined benefit liabilities

Salary risk

The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation.

The actuarial valuations of the present value of the defined benefit obligation of the Company are carried out by qualified actuaries. The principal assumptions are as follows:

	December 31, 2025	December 31, 2024
Discount rate (%)	1.50	1.625
Expected salary increase rate (%)	3.00	3.00

If reasonably likely changes respectively occur in the principal assumptions and all other assumptions are held constant, the amount of present value of the defined benefit obligation is increased or decreased as follows:

	December 31, 2025	December 31, 2024
Discount rate
Increase by 0.25%	($ 438)	($ 408)
Decrease by 0.25%	$ 455	$ 424
Expected salary increase rate
Increase by 0.25%	$ 440	$ 411
Decrease by 0.25%	($ 426)	($ 397)

The sensitivity analysis presented above may not reflect the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

	December 31, 2025	December 31, 2024
Contributions expected in one year	$ 120	$ 120
Average maturity of defined benefit obligation	11.4 years	11.2 years
XIX. Equity
(I) Common share capital	December 31, 2025	December 31, 2024
Authorized shares (in thousands)	150,000	150,000
Authorized share capital (par value NT$10 per share)	$ 1,500,000	$ 1,500,000
Number of issued shares (in thousands)	88,471	88,471
Issued share capital (par value NT$10 per share)	$ 884,711	$ 884,711

Par value of NTD 10 per share for the issued common shares, and each share is entitled to one voting right and the right to receive dividends.

The Company's regular shareholders' meeting has passed the resolution for the amendments to the authorized shares and capital on June 24, and has completed the change registration on July 18, 2024.

(II) Additional paid-in capital

	December 31, 2025	December 31, 2024
May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (Note)
Premium of share issuance	$ 433,889	$ 433,889
Consolidated premium	21,786	21,786
	$ 455,675	$ 455,675

Note: Such capital surplus may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or capitalized as share capital, provided that the amount of capital reserve is limited to a certain percentage of the paid-in capital each year.

(III) Retained earnings and dividends policy

Pursuant to the earning distribution policy specified in the Articles of Incorporation, if there is any surplus in the Company's earnings as concluded by the annual accounting book close, after paying tax and making up for accumulated losses, 10% shall be set aside as legal reserve, except when the legal reserve has reached the Company's paid-in capital. If there is any remaining balance, with the undistributed earnings in previous years it shall be set aside as the cumulative distributable earnings. For information on the accrual basis of the employees' remuneration and remuneration of directors and the actual appropriations, refer to Note 21(7) employees' remuneration and remuneration of directors.

The Company's future dividend policy is to distribute the dividends based on the principle of stability and balance; other than considering the accumulation of the Company's capital, and the impacts on the Company's operation, the share dividends may be distributed, based on the Company's business planning, to reserve the funds required; the remaining may be distributed in cash dividends, but the cash dividends may not be less than 10% of the total dividends.

The dividend policy in the preceding paragraph is for principle only. The Company may decide the most appropriate dividend policy based on the actual operation the year with consideration of the capital budget planning for the next year.

Legal capital reserve shall be set aside until its balance equals to full amount of the paid-in capital at least. Legal reserves may be used to offset the deficit. When the Group has no deficit, the portion in excess of 25% of the paid-in capital may be used to distribute as dividends in stocks or cash.

The Company's regular shareholders' meeting on June 24, 2024 resolved to approve the proposal of 2023 deficit compensation.

The distribution of earnings of 2024 was resolved in the regular shareholders' meeting on May 27, 2025 as below:

	Appropriation of Earnings	Dividends Per Share (NT$)
Legal reserves	$ 5,157
Cash dividends	$ 44,235	$ 0.5

The distribution of earnings and dividends per share for 2025 had been proposed by the board of directors on May 26, 2026 as follows:

	Appropriation of Earnings	Dividends Per Share (NT$)
Legal reserves	$ 4,371
Special reserve	$ 21,850
Cash dividends	$ 17,694	$ 0.2

The distribution of earnings for 2025 are subject to the resolution of the regular shareholders' meeting to be held in May 2026.

(IV) Other items of equity

Exchange differences on translation of the financial statements of foreign operations

	2025	2024
Balance at the beginning of the year	($ 284)	($ 1,462)
Income tax expense generated in the current year
Exchange differences from exchanging the net assets of the foreign operations	752	1,472
Income tax from exchanging the net assets of the foreign operations	( 150)	( 294)
Balance at the end of the year	$ 318	($ 284)

Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income

	2025	2024
Balance at the beginning of the year	$ 7,540	$ 15,268
Income tax expense generated in the current year
Unrealized gain/(loss) - Equity instruments	($ 27,000)	($ 9,810)
Share of subsidiaries accounted for using the equity method	( 2,708)	-
Other comprehensive income or loss for the year	( 29,708)	( 9,810)
The accumulated gain or loss on the disposal of equity instruments is transferred to the retained earnings.	-	2,082
Balance at the end of the year	($ 22,168)	$ 7,540

XX. Revenue

	2025	2024
Revenue from contracts with customers
Sales revenue	$ 1,326,662	$ 1,218,348
Service income	2,322	2,452
	$ 1,328,984	$ 1,220,800

41 -

(I) Contract balance

	December 31, 2025	December 31, 2024	January 1, 2024
Notes receivable and accounts receivable - Net	$ 451,154	$ 424,576	$ 295,770

(II) Details of revenue from contracts with customers

	2025	2024
Major income from products and service
Thick-film resistors	$ 544,243	$ 518,569
Thin-film resistors	358,080	346,014
Mental-plate resistors	423,428	353,242
Others	3,233	2,975
	$ 1,328,984	$ 1,220,800

XXI. Net income before tax

(I) Interest revenue

	2025	2024
Cash in banks	$ 6,027	$ 7,471
Others	13	17
	$ 6,040	$ 7,488

(II) Other income

	2025	2024
Rental income	$ 2,951	$ 2,808
Dividend income	4,465	4,615
Others	1,952	995
	$ 9,368	$ 8,418

(III) Other gains or losses

	2025	2024
Net gains on disposal of property, plant and equipment	$ -	$ 406
Net gain on foreign currency exchange	1,171	29,490
Net gains (losses) of financial assets held for trading	8,732	( 2,501 )
Others	( 8,288 )	( 2,236 )
	$ 1,615	$ 25,159

(IV) Financial costs

	2025	2024
Interest on bank loans	$ 9,481	$ 7,309
Interest on lease liabilities	313	340
Interest of short-term notes payable	133	148
Other interest expenses	8	11
Less: amount listed as asset costs qualified for the element.	( 1,208 )	( 1,317 )
	$ 8,727	$ 6,491

The annual interest rate of the capitalization of interest is as below:

	2025		2024
	Property, plant and equipment (%)	1.88~2.17	1.84~2.08
(V)	Depreciation and amortization
		2025	2024
	Property, Plant and Equipment	$ 155,154	$ 150,629
	Right-of-use assets	4,029	5,075
	Investment Property	285	286
	Other intangible assets	2,826	3,510
	Other current and non-current assets	9,009	8,434
	Total	$ 171,303	$ 167,934
	An analysis of depreciation by function
	Operating costs	$ 140,698	$ 136,613
	Operating expenses	18,485	19,091
	Non-operating expenditures	285	286
		$ 159,468	$ 155,990
	An analysis of amortization by function
	Operating costs	$ 5,689	$ 4,034
	Operating expenses	6,146	7,910
		$ 11,835	$ 11,944
(VI)	Employee benefit expense
		2025	2024
	Short-term employee benefits	$ 311,533	$ 289,510
	Pensions
	Defined contribution plans	10,992	10,186
	Defined benefit plans (Note 18)	32	54
	Total employee benefit expenses	$ 322,557	$ 299,750
	An analysis by function
	Operating costs	$ 235,027	$ 214,196
	Operating expenses	87,530	85,554
		$ 322,557	$ 299,750

(VII) Employees' remuneration and directors' remuneration

Articles of Incorporation of the Company stipulate to distribute employees' remuneration and remuneration of directors at the rates no less than 2% to 15% and no higher than 10%, respectively, of net profit before income tax, employees' compensation, and remuneration of directors. In response to the amendment to the Securities and Exchange Act in August 2024, the Company's shareholders' meeting has passed a resolution to amend the Articles of Incorporation in 2025, stipulating that at least 20% of the aforementioned employee remuneration must be allocated to entry-level employees.

The appropriations of employees' remuneration and directors' remuneration for 2025 and 2024 were approved to be distributed in cash by the board of directors on February 26, 2026 and March 6, 2025 and respectively, were as below:

Remuneration of employees

	2025	2024
Amount	$ 4,000	$ 4,000
Provision ratio (%)	7	6
Directors' remunerations
	2025	2024
Amount	$ 2,000	$ 2,000
Provision ratio (%)	3.5	3

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

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

(VIII) Gains (losses) on foreign currency exchange

	2025	2024
Foreign exchange gains	$ 312,003	$ 129,825
Foreign exchange losses	( 310,832 )	( 100,335 )
Net gains	$ 1,171	$ 29,490

XXII. Income tax

(I) Main components of income tax expense (benefit) recognized in profit or loss
	2025	2024
Tax currently payable
Income tax expense generated in the current year	$ 1,189	$ 3,574
Adjustment on prior years	( 218 )	-
	971	3,574
Deferred tax
Income tax expense generated in the current year	6,015	4,812
Income tax expense recognized in profit or loss	$ 6,986	$ 8,386

A reconciliation of accounting income and income tax expense is as follows:

	2025	2024
Profit before tax	$ 51,384	$ 65,153
For the net profit before tax, the income tax expense is calculated at the statutory rate (20%)	$ 10,277	$ 13,031
Permanent differences	( 1,511 )	137
Tax-free income	( 1,344 )	( 1,234 )
The investment deductible available for deduction for the period	( 2,431 )	( 3,623 )
Unrecognized temporary difference	198	-
Unrecognized loss carryforwards	2,015	75
Adjustment on prior years	( 218 )	-
Income tax expense recognized in profit or loss	$ 6,986	$ 8,386
(II) Income tax recognized in other comprehensive income
	2025	2024
Deferred income tax expense (gains)
Occurred in the year
Remeasurement of defined benefit programs	($ 174 )	$ 398
Exchange differences on translation of foreign operations	150	294
	($ 24 )	$ 692

(III) Deferred tax assets and liabilities

The changes in the deferred income tax assets and liabilities are as below: 2025

	Balance at the beginning of the year	Recognized in profit or loss	Defined benefit costs recognized in other comprehensive income	Balance at the end of the year
Deferred tax income assets
Temporary difference
Defined benefit retirement plans	$ 504	($ 183)	$ 174	$ 495
Inventories losses	11,502	( 995)	-	10,507
Unrealized losses on subsidiaries	336	( 41)	-	295
Exchange losses	56	87	-	143

(Continued on next page)

(Continued)

	Balance at the beginning of the year	Recognized in profit or loss	Defined benefit costs recognized in other comprehensive income	Balance at the end of the year
Deferred tax income assets
Foreign investment losses under equity method	$ 1,141	($ 1,141)	$ -	$ -
Others	1,790	1,237	( 150)	2,877
Loss carryforwards	16,688	( 2,015)	-	14,673
Investment tax credit	5,506	1,242	-	6,748
	$ 37,523	($ 1,809)	$ 24	$ 35,738
Deferred tax liabilities
Temporary difference
Exchange gains	$ 1,465	$ 2,432	$ -	$ 3,897
Foreign investment gains adopted the equity method	-	1,879	-	1,879
Others	105	( 105)	-	-
	$ 1,570	$ 4,206	$ -	$ 5,776
2024
	Balance at the beginning of the year	Recognized in profit or loss	Defined benefit costs recognized in other comprehensive income	Balance at the end of the year
Deferred tax income assets
Temporary difference
Defined benefit retirement plans	$ 902	$ -	($ 398)	$ 504
Inventories losses	13,820	( 2,318)	-	11,502
Unrealized losses on subsidiaries	-	336	-	336
Exchange losses	1,684	( 1,628)	-	56
Foreign investment losses under equity method	2,593	( 1,452)	-	1,141
Others	1,605	479	( 294)	1,790
Loss carryforwards	16,763	( 75)	-	16,688
Investment tax credit	4,385	1,121	-	5,506
	$ 41,752	($ 3,537)	($ 692)	$ 37,523
Deferred tax liabilities
Temporary difference
Others	$ 295	$ 1,275	$ -	$ 1,570

(IV) The tax authorities have examined the income tax returns of the Company through 2023.

XXIII. Earnings per share

The net profit and weighted average number of ordinary shares outstanding in calculating earnings per share were as follows:

(I)	Net income for the year	2025	2024
	The net profit used in calculating the basic and diluted earnings per share	$ 44,398	$ 56,767
(II)	Number of shares (thousand shares)	2025	2024
	Weighted average number of ordinary shares in computation of basic earnings per share	88,471	88,471
	Impact of potentially dilutive ordinary shares Remuneration of employees	163	128
	Weighted average number of ordinary shares used in the computation of diluted earnings per share	88,634	88,599

Since the Company offered to settle compensation paid to employees in cash or shares, the Company assumed the entire amount of the compensation would be settled in shares and the resulting potential shares were included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares was included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

XXIV. Capital risk management

The Company manages its capital to ensure that it is able to maximize shareholders return as a going concern through the optimization of the debt and equity balance.

The Company's capital structure is consist of net debt (leases less cash and cash equivalent) and equity (share capital, capital surplus, retained earnings and other equity).

The Company is allowed not to follow other external laws or regulations on capital.

XXV. Financial instruments

(I) Information of fair value - financial instruments that are not measured at fair value The management of the Company considers that the carrying amounts of financial assets and liabilities that are not measured at fair value approximates its fair value.

(II) Information of fair value - financial assets measured at fair value on the repetitive basis.

Fair value hierarchy

December 31, 2025

	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Non-derivative financial assets
Private placement of the domestic TPEx listed shares	$ -	$ 3,348	$ -	$ 3,348
Hybrid financial assets
Convertible bonds of TPEx-listed companies	-	61,380	-	61,380
	$ -	$ 64,728	$ -	$ 64,728
Financial assets at fair value through other comprehensive income
Investment in equity instrument
TWSE/TPEx-listed stocks	$ 31,586	$ -	$ -	$ 31,586
Domestic shares not listed in TWSE or TPEx	-	-	19,143	19,143
Foreign unlisted stocks	-	-	20,997	20,997
	$ 31,586	$ -	$ 40,140	$ 71,726
December 31, 2024
	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Non-derivative financial assets
Private placement of the domestic TPEx listed shares	$ -	$ 4,207	$ -	$ 4,207
Hybrid financial assets
Convertible bonds of TPEx-listed companies	-	58,625	-	58,625
	$ -	$ 62,832	$ -	$ 62,832

(Continued on next page)

(Continued)

	Level 1	Level 2	Level 3	Total
Financial assets at fair value through other comprehensive income
Investment in equity instrument
TWSE/TPEx-listed stocks	$ 18,540	$ -	$ -	$ 18,540
Domestic shares not listed in TWSE or TPEx	-	-	20,598	20,598
Foreign unlisted stocks	-	-	56,018	56,018
	$ 18,540	$ -	$ 76,616	$ 95,156

The convertible bonds exercisable in 2025 were partially converted into the Company's common shares. Because the shares are now quoted on an active market, the bonds were reclassified from Level 2 to Level 1.

There was no transfer of fair value measurements between Level 1 and Level 2 for 2024.

Reconciliation of Level 3 fair value measurements on financial assets

Financial asset	2025	2024
Balance at the beginning of the year	$ 76,616	$ 23,954
Defined benefit costs recognized in other comprehensive income	( 36,476 )	( 9,810 )
Purchase	-	85,216
Disposal	-	( 4,204 )
Transfer from Level 3	-	( 18,540 )
Balance at the end of the year	$ 40,140	$ 76,616

Valuation techniques and input value used in Level 2 fair value measurement

Class of financial instruments	Valuation technique and input value
Private placement of the domestic TPEx listed shares	The fair value is determined by the management by referring the price evaluation evidenced with the observable market prices.
Convertible bonds of TPEx-listed companies	The fair value is determined by the management by referring the price evaluation evidenced with the observable market prices.

Valuation techniques and input value used in Level 3 fair value

The fair value of the common stock of the domestic and foreign unlisted company that is not traded in the active market is measured by the market approach with reference to the evaluation multiplier of comparable companies.

48 -

(III) Categories of financial instruments

	December 31, 2025	December 31, 2024
Financial asset
Financial assets at amortized cost (Note 1)	$ 762,505	$ 713,620
Financial assets at FVTPL compulsorily	64,728	62,832
Financial assets at fair value through other comprehensive income
Investment in equity instrument	71,726	95,156
Financial liability
Amortized cost (Note 2)	735,996	625,368

Note 1: The balances include financial assets measured at amortized cost, which comprise cash and cash equivalents, notes and accounts receivable (related parties included), other receivables (tax refund receivable excluded), and refundable deposits.

Note 2: The balances included financial liabilities measured at amortized cost, which comprise short-term and long-term loans, accounts payable (related parties included), other payables, and other financial liabilities at amortized cost such as other payables and guarantee deposits.

(IV) Financial risk management objectives and policies

The majority of the Company's financial instruments include time deposit, equity instrument investments, notes and accounts receivable, accounts payable, other payables, short-term borrowings and lease liabilities, etc. The financial management department provides service for each unit by organizing and coordinating the market operation nationally and internationally, supervising and analyzing risk exposure according to the extent and breadth of risk, and managing financial risks associated with the Company's operation. Such risks include market risk (including foreign currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

Market risk

The Company is exposed to the financial market risks, primarily changes in foreign currency exchange rates (refer to (1) below) and interest rates (refer to (2) below), due to its operation.

(1) Foreign currency risk

Please see Note 29 for the carrying amount of monetary assets and liabilities denominated in non-functional currency at the date of balance sheet.

Sensitivity analysis

The Company is mainly affected by fluctuations in USD and CNY.

The following table details the Company's sensitivity analysis to a 1% increase and decrease in NTD (the functional currency) against the relevant foreign currency. The rate of 1% is the sensitivity rate used when reporting foreign currency risk internally to the key management and represents the management's assessment of the reasonably likely change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and the end-of-year exchange rate is adjusted to 1% increase and decrease. The positive number in the table below means when the functional currency depreciates 1% against each related currency, the amount increased for the net profit before tax; when the functional currency appreciates 1% against each related currency, the effect on the profit before tax is the same amount but negative.

	Effects on profit or loss
	2025	2024
USD	$ 2,810	$ 2,149
CNY	3,113	3,427

(2) Interest rate risk

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

	December 31, 2025	December 31, 2024
Cash flow interest rate risk
Financial asset	$ 62,594	$ 73,530
Financial liability	365,000	175,000

In addition, for the fixed interest rate time deposit, repurchase agreements, short-term borrowings, and lease liabilities held by the Company, the risk of their fair value is not material.

Sensitivity analysis

The following sensitivity analysis is determined in accordance with interest rate risk of non-derivative instruments at the date of balance sheet. For the floating rate assets and liabilities, the analysis is to assume that the amount of assets and liabilities outstanding at the date of balance sheet is all outstanding at the reporting period.

Where the interest rate increases/decreases by 1%, and all other variables stay the same, the profit before tax of the Company for 2025 and 2024 would decreases/increase NT$3,024 thousand and NT$1,015 thousand, respectively, mainly because the Company holds the bank deposits and borrowings of floating interest rates.

(3) Other price risk

The Company is exposed to price risk due to investments in equity securities. The management of the Company manages the risk by investing in portfolio with different risks. The risk of equity price for the

Company mainly concentrates on the equity instrument not listed in TWSE or TPEx.

Sensitivity analysis

The following sensitivity is analyzed according to the exposure to equity price risk at the date of balance sheet.

Where the equity price increases/decreases 1%, the net profit before tax for 2025 and 2024 would increase/decrease for NT$647 thousand and NT$628 thousand, respectively, due to the changes in the fair value of the financial assets at FVTPL.

If the equity price increases/decreases by 1%, the other comprehensive income in 2025 and 2024 will increase and decrease NT$717 thousand and NT$952 thousand, respectively, due to changes in fair value of financial assets measured at FVTOCI.

2. Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. As at the end of the reporting period, the Company's maximum exposure to credit risk which will cause a financial loss to the consolidated company due to failure of counterparties to discharge an obligation could arise from the carrying amount of the respective recognized financial assets as stated in the Parent company only balance sheets.

The policy adopted by the Company is to only deal with the counterparties with great credibility and reputation, and evaluate the major customers with the publicly available financial information and the transaction histories of the both parties. The Company continuously monitors the credit exposures and evaluate the credit of the counterparties, with control over the credit exposures via the annual credit facilities for the counterparties.

The credit risk of the Company mainly concentrates on the following accounts receivable:

	December 31, 2025	December 31, 2024
Company A	$ 171,596	$ 180,675
Company B	56,962	76,202
	$ 228,558	$ 256,877

As of December 31, 2025 and 2024, the ratio of total accounts receivable from the aforesaid companies were 51% and 62%, respectively.

3. Liquidity risk

The Company manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Company's operations and mitigate the effects of fluctuations in cash flows. In addition, the management of the Company monitors the utilization of borrowings and ensures compliance with loan conditions. The bank borrowing is a material source of liquidity to the Company. As of December 31, 2025 and 2024, the undrawn short-term credit facilities from banks of the Company were NT$620,000 thousand and NT$635,000 thousand, respectively.

51 -

Liquidity and interest risks of non-derivative financial liabilities

The remaining contractual maturity analysis for the non-derivative financial liabilities is prepared based on the earliest date to be required for the repayment, by the undiscounted cash flow of the financial liabilities.

	Within 6 months	6 months to one year	More than one year	Total
December 31, 2025
Non-derivative financial liabilities
Non-interest bearing liabilities	$ 239,401	$ 6,000	$ 595	$ 245,996
Lease liabilities	1,862	1,862	17,816	21,540
Floating-rate instrument	365,319	-	-	365,319
Fixed-rate instrument	125,126	-	-	125,126
	$ 731,708	$ 7,862	$ 18,411	$ 757,981

The further information on a maturity analysis of lease liability is below:

	Less than One Year	1-5 Years	6-10 Years	11-15 Years	16-20 Years
Lease liabilities	$ 3,724	$ 10,834	$ 4,331	$ 2,651	$ -
	Within 6 months	6 months to one year	More than one year	Total
---	---	---	---	---
December 31, 2024
Non-derivative financial liabilities
Non-interest bearing liabilities	$ 228,773	$ 6,000	$ 595	$ 235,368
Lease liabilities	2,377	1,231	19,754	23,362
Floating-rate instrument	175,089	-	-	175,089
Fixed-rate instrument	215,125	-	-	215,125
	$ 621,364	$ 7,231	$ 20,349	$ 648,944

The further information on a maturity analysis of lease liability is below:

	Less than One Year	1-5 Years	6-10 Years	11-15 Years	16-20 Years
Lease liabilities	$ 3,608	$ 10,752	$ 5,689	$ 3,313	$ -

XXVI. Related party transaction

The transactions of the Company with other related parties are as below:

(I) Related party name and categories

Related Party Name	Relationship with the Company
Shenzhen Ever Ohms Electronic Co., Ltd. (Ever Ohms Electronic)	Subsidiary
Stackpole Technology Inc. (Stackpole)	Fellow subsidiary with materially influential investors
Leader New Energy Technology Co., Ltd. (Leader New Energy)	Associates (The Company is the corporate director of that company)
Abeco Electronic Co., Ltd. (Abeco)	Other related party (the Company is the corporate director of that company)

53 -

(II) Operating revenue

Related party category	2025	2024
Subsidiary	$ 442,696	$ 491,599
Fellow subsidiary with materially influential investors	66,258	39,673
Associates	2,350	2,542
Other related parties	13,019	6,810
	$ 524,323	$ 540,624

The selling prices and payment terms of the Company to sell products to the said related party is not materially different from the ordinary customers.

(III) Purchase

Related party category	2025	2024
Subsidiary	$ 427	$ 11,065
Associates	100,254	92,286
	$ 100,681	$ 103,351

Since the Company does not purchase the same products from unrelated parties, the purchase prices cannot be compared, and there is no significant difference between the payment terms and the general manufacturers.

(IV) Receivables from related parties

Line Item	Related party category	December 31, 2025	December 31, 2024
Accounts receivable - related parties	Subsidiary	$ 171,596	$ 180,675
	Fellow subsidiary with materially influential investors	28,012	16,366
	Associates	1,121	670
	Other related parties	3,045	3,234
		$ 203,774	$ 200,945

No allowance of loss is provided for the outstanding receivables of related parties without guarantee and the receivables of related parties

(V) Receivables of related parties

Line Item	Related party category	December 31, 2025	December 31, 2024
Accounts payable - related parties	Subsidiary	$ 431	$ 5,640
	Associates	24,198	24,863
		$ 24,629	$ 30,503

No guarantee is provided for the balance of outstanding receivables of related parties.

(VI) Related party transaction

Line Item	Related party category	2025	2024
Other income	Subsidiary	$ 1	$ 2
	Associates	396	-
	Other related parties	-	298
		$ 397	$ 300
Other expenses	Fellow subsidiary with materially influential investors	$ -	$ 464

(VII) Remuneration of key management personnel

	2025	2024
Short-term employee benefits	$ 15,015	$ 14,761
Pensions	169	180
	$ 15,184	$ 14,941

XXVII. Pledged Assets

The Company provided the following assets as the collaterals for the credit facility of borrowings:

	December 31, 2025	December 31, 2024
Self-owned lands	$ 100,810	$ 100,810
Buildings	81,220	84,716
	$ 182,030	$ 185,526

XXVIII. Significant Contingent Liabilities and Unrecognized Commitments

As of December 31, 2025 and 2024, the contract price of purchasing property, plant and equipment not recognized by the Company were NT$36,922 thousand and NT$21,983 thousand respectively.

XXIX. Information on foreign-currency-denominated financial assets and liabilities

The information of the financial asset and liability in foreign currencies other than functional currency with material impact of the Company is as below:

Unit: each foreign currency thousand/NT$ thousand/exchange rate: NT$
	Foreign currency	Exchange rate		Carrying amount
December 31, 2025
Financial assets of monetary items
USD	$ 10,477	31.43	(USD/NT$)	$ 329,303
CNY	71,575	4.496	(CNY/NT$)	321,801
Financial liabilities of monetary items
USD	1,535	31.43	(USD/NT$)	48,261
CNY	2,331	4.496	(CNY/NT$)	10,481
December 31, 2024
Financial assets of monetary items
USD	7,185	32.785	(USD/NT$)	235,563
CNY	79,321	4.478	(CNY/NT$)	355,197

(Continued on next page)

(Continued)

	Foreign currency	Exchange rate		Carrying amount
Financial liabilities of monetary items
USD	$ 630	32.785	(USD/NT$)	$ 20,653
CNY	2,780	4.478	(CNY/NT$)	12,448

The Company net gains from the foreign currency exchange (both realized and unrealized) for 2025 and 2024 were NT$1,171 thousand and NT$29,490 thousand, respectively. Due to the variety of the currencies of the foreign currency transaction, the exchange gains and losses cannot be disclosed by the foreign currencies with material impacts.

XXX. Other Disclosures

(I) Information about significant transactions and (II) investees

Financing provided to others: None.
Endorsements/guarantees provided: None.
Significant marketable securities held (excluding investment in subsidiaries, affiliates and joint venture equity): Table 1.
Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: Table 2.
Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: Table 3.
Information on investees: Table 4.

(III) Information on Investment in Mainland China

Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area: (Table 5).
Significant direct or indirect transactions through a third area with the investee in the Mainland Area, and its prices and terms of payment, unrealized gain or loss are as follows:

(1) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period:

	Purchase		Accounts payable
	Amount	% in the account	Amount	% in the account
Ever Ohms Electronic	$ 427	-	$ 431	-

(2) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period:

	Sales		Trade receivable
	Amount	% in the account	Amount	% in the account
Ever Ohms Electronic	$ 442,696	33	$ 171,596	38

(3) The amount of property transactions and the amount of the resultant gains or losses: None.

(4) End balance of endorsement/guarantee provided for notes or collateral provided, and the purposes thereof: None.

(5) The highest balance, end balance, interest rate range, and the total interests of the current period for financing: none.

(6) Other transactions that significantly impacted the current year's profit or loss or financial position: None.

56 -

Ever Ohms Technology Co., Ltd.
Details of significant marketable securities held at the end of the period
December 31, 2025
Unit: NT$ thousand unless indicated otherwise

Table 1

Holding company name	Marketable securities types and name	Relationship with the issuers	Financial statement account	End of period
				Number of shares or unit	Carrying amount	Shareholding percentage (%)	Market value (equity net value)
The Company	Shares
	Empower Technology Corporation	-	Financial assets at FVTPL - Current	219,467	$ 3,348	1	$ 3,348
	Convertible corporate bonds
	TAI-TECH Advanced Electronics Co., Ltd.	-	Financial assets at FVTPL - Current	450,000	61,380	-	61,380
					$ 64,728		$ 64,728
	Shares
	Abeco Electronic Co., Ltd.	The Company is the corporate director of that company	Financial assets at fair value through other comprehensive income- non-current	930,240	$ 19,143	10	$ 19,143
	ABICO Asia Capital Corporation	-	Financial assets at fair value through other comprehensive income- non-current	1,030,000	28,222	1	28,222
TAI-TECH Advanced Electronics Co., Ltd.	-	Financial assets at fair value through other comprehensive income- non-current	22,956	3,364	-	3,364
	Liz Electronics(Nantong) Co., Ltd.	-	Financial assets at fair value through other comprehensive income- non-current	-	20,997	9	20,997
					$ 71,726		$ 71,726

Ever Ohms Technology Co., Ltd.
Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital:
January 1 to December 31, 2025

Table 2
Unit: NT$ thousand unless indicated otherwise

Buyer/Seller	Related Party	Relationship	Transaction Details				The status and reasons of the transaction terms different from common transactions		Note/ Accounts Receivable (Payable)
			Purchase/Sale	Amount	Percentage to Total Purchase (Sales) %	Payment Terms	Unit Price	Payment Terms	balance	Percentage to Note/ Accounts Receivable (Payable)
The Company	Ever Ohms Electronic	Subsidiary	Sales	($ 442,696)	( 33 )	Monthly settlement for 90 days	General transaction conditions	General transaction conditions	$ 171,596	38
	Leader New Energy Technology Co., Ltd.	Associates	Purchase	100,254	16	Monthly settlement for 60 days	General transaction conditions	General transaction conditions	( 24,198 )	19

58 -

Ever Ohms Technology Co., Ltd.
Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital
December 31, 2025

Table 3
Unit: NT$ thousand unless indicated otherwise

Company accounted for account receivable	Related Party	Relationship	Balance of receivables from related parties	Turnover rate (times)	Overdue		Amount of recovered receivables from related parties after the balance sheet date	Amount provided for the allowance of losses
					Amount	Actions Taken
The Company	Ever Ohms Electronic	Subsidiary	$ 171,596	2.51	$ 37,175	Received after the balance sheet date	$ 22,030	$ -

59 -

Ever Ohms Technology Co., Ltd.
Information on investees
January 1 to December 31, 2025
Unit: NT$1,000

Table 4

Investor	Investee	Location of the area	Main business	Initial investment amount		Held at the end of the year			Profit of the investee for the current year	Investment gains recognized in the current year	Remarks
				End of the year	End of previous year	Number of shares (thousand shares)	ratio % (%)	Carrying amount
The Company	Leader New Energy Technology Co., Ltd.	Taiwan	OEM and sales of resistance materials	$ 10,000	$ 10,000	1,000	20	$ 12,134	$ 8,247	$ 1,500	Associates

60 -

Ever Ohms Technology Co., Ltd.
Information on Investment in Mainland China
January 1 to December 31, 2025
Unit: NT$ thousand unless indicated otherwise

Table 5

Name of Investee in Mainland China	Main business	Paid-in capital (Note 1)	Investment method	Accumulated investment amount of outflow from Taiwan at the beginning of the year	Investment Flows		Accumulated investment amount of outflow from Taiwan at the end of the year	Current income (losses) of the investee	Shareholding percentage of direct or indirect investment by the Company (%)	Gain (loss) on investment recognized for the period (Note 2)	Book value of investment at the end of year	The investment gains repatriated as of the period
					Outward remittance	Repatriation
Shenzhen Ever Ohms Electronic Co., Ltd.	Sales of various types of resistors	$ 62,860	Direct investment in mainland China	$ 60,359	$ -	$ -	$ 60,359	$ 15,088	100.00	$ 15,088	$ 66,041	$ -
Investor	Accumulated investment amount of outflow in China mainland from Taiwan at the end of the period	Investment amount approved by Investment Commission, MOEA (Note 3)	Limit of investment of the Company in mainland China, MOEA (Note 4)
---	---	---	---
The Company	$ 60,359	$ 60,359	$ 860,507

Note 1: The said USD are translated at the end spot exchange rate, NT$31.43.
Note 2: The investment gains and losses are recognized in the financial statement audited and attested by the CPAs of the Company
Note 3: The accumulated investment amount remitted from Taiwan to mainland China at the end of the year, and the investment amount approved by Investment Commission, MOEA are both USD2,000,000
Note 4: Limit of investment of the Company in mainland China, MOEA is $\times 60\%$ of the Company's net worth.

61 -

§Statements of Major Accounting Items§

Item	No./Index
Statements of assets, liabilities, and equity items
Statement of cash and cash equivalents	Table 1
Statement of Financial Assets at FVTPL - Current	Table 1
Statement of notes receivable	Table 2
Statement of accounts receivable	Table 3
Statement of inventories	Table 4
Statement of changes in financial assets measured at fair value through profit or loss - non-current	Table 5
Statement of changes in investments accounted for using the equity method	Table 6
Statement of changes in property, plant and equipment	Note 12
Statement of accumulated depreciation for property, plant and equipment	Note 12
Statement of changes in right-of-use assets	Note 13
Statement of changes in investment properties	Note 14
Statement of accumulated depreciation for investment properties	Note 14
Statement of changes in intangible assets	Note 15
Statement of deferred tax assets	Note 22
Statement of short-term borrowings	Table 7
Statement of accounts payable	Table 8
Statement of other payables	Note 17
Statement of deferred tax liabilities	Note 22
Statements of profit or loss items
Statement of operating revenue	Table 9
Statement of operating costs	Table 10
Statement of operating expenses	Table 11
Statement of other net incomes and expenses	Note 21
Summary of the employee welfare, depreciation, and amortization expenses by function	Table 12

62 -

Ever Ohms Technology Co., Ltd.
Statement of cash and cash equivalents
December 31, 2025

Table 1
Unit: NT$ thousand unless indicated otherwise

Item	Description	Amount
Cash on hand and penny cash		$ 71
Cash in banks
Demand deposits		18,333
Foreign currency demand deposit
	USD 1,305,497.06	41,032
	CNY 156,283.6	703
	EUR 68,450.44	2,526
Cash equivalents
Time deposits	USD 3,378,000; interest rate at 3.37% to 3.90% per annum; maturity date: 2026.01.11 - 2026.01.29	106,171
	CNY 19,093,000; interest rate 0.75% to 1.20% per annum; maturity date: 2026.01.05 - 2026.01.26	85,842
Repurchase agreements	Interest rate at 1.22%~ 1.25% per annum; maturity date: 2026.01.08	53,013
		$ 307,691

Note: The exchange rate for USD is US$1 = NT$31.43
The exchange rate for CNY is CNY$1 = NT$4.496
The exchange rate for EUR is EUR$1 = NT36.9

Ever Ohms Technology Co., Ltd.
Statement of notes receivable
December 31, 2025

Table 2
Unit: NT$1,000

Customer name	Description	Amount
Non-related parties
Company A		$ 2,174
Company B		1,543
Company C		594
Company D		466
Company E		445
Company F		440
Company G		399
Others (Note)		1,527
		$ 7,588

Note: No balance of any other item exceed 5 percent of the balance of this item

64 -

Ever Ohms Technology Co., Ltd.
Statement of accounts receivable
December 31, 2025

Table 3
Unit: NT$1,000

Customer name	Description	Amount
Related parties
Ever Ohms Electronic		$ 171,596
Stackpole		28,012
Others (Note)		4,166
		203,774
Non-related parties
Company A		56,962
Company B		31,445
Others (Note)		151,715
		240,122
Less: Allowance for bad debts		330
		239,792
		$ 443,566

Note: No balance of any other item exceed 5 percent of the balance of this item

65 -

Ever Ohms Technology Co., Ltd.
Statement of inventories
December 31, 2025

Table 4
Unit: NT$1,000

Item	Amount
	Carrying amount	Net realizable value (Note)
Raw materials	$ 65,603	$ 70,849
Materials	8,756	8,939
Semi-finished products	69,155	103,473
Work in process	24,539	33,466
Finished goods	111,500	157,516
Merchandise	10,797	17,797
Inventories in transit	14,139	14,139
	$ 304,489	$ 406,179

Note: Please refer to Note 4, the summary of the material accounting policies for the determination approach of the net realizable value.

66 -

Ever Ohms Technology Co., Ltd.
Statement of changes in financial assets measured at fair value through profit or loss - non-current
2025

Table 5
Unit: NT$ thousand unless indicated otherwise

Name	Balance at the beginning of the year		Increase during this year (Note 1)		Decrease during this year (Note 2)		Balance at the end of the year		Guarantee or pledge status
	No. of shares	Amount	No. of shares	Amount	No. of shares	Amount	No. of shares	Amount
Shares
Abeco	930,240	$ 20,598	-	$ -	-	$ 1,455	930,240	$ 19,143	None
Asia Energy Rate	1,030,000	18,540	-	9,682	-	-	1,030,000	28,222	None
TAI-TECH Advanced Electronics Co., Ltd.	-	-	22,956	3,570	-	206	22,956	3,364	None
Liz Electronics	-	56,018	-	-	-	35,021	-	20,997	None
		$ 95,156		$ 13,252		$ 36,682		$ 71,726

Note 1: It includes an unrealized gain adjustment of NT$9,682 thousand and the conversion of convertible bonds to stocks worth NT$3,570 thousand, measured at fair value through profit or loss.
Note 2: Unrealized loss valuation adjustment of NT$ 36,682 thousand

67 -

Ever Ohms Technology Co., Ltd.
Statement of changes in investments accounted for using the equity method
2025

Table 6
Unit: NT$ thousand unless indicated otherwise

Investee	Beginning amount		Increase during this year (Note 1)		Decrease during this year (Note 2)		Balance at the end of the year			Net worth of equity		Guarantee or pledge status
	No. of shares	Amount	No. of shares	Amount	No. of shares	Amount	No. of shares	Shareholding %	Amount	Unit price (NT$)	Total amount
Ever Ohms Electronic	-	$ 52,705	-	$ 16,044	-	$ 2,708	-	100	$ 66,041	$ -	$ 67,444	None
Leader New Energy Technology Co., Ltd.	-	11,425	-	1,500	-	791	-	20	12,134	-	12,134	None
		$ 64,130		$ 17,544		$ 3,499			$ 78,175		$ 79,578

Note 1: The increase this year includes a profit of NTD15,088 thousand from investments in subsidiaries, a realized profit of NTD 204 thousand from subsidiaries, an exchange difference of NTD 752 thousand from translating the financial statements of foreign operations, and a profit of NTD 1,500 thousand from investments in associates.
Note 2: The decrease this year includes recognition of a share of other comprehensive income from subsidiaries of NTD 2,708 thousand and receipt of cash dividends from associates of NTD 791 thousand.

Ever Ohms Technology Co., Ltd.
Statement of short-term borrowings
December 31, 2025

Table 7
Unit: NT$ thousand unless indicated otherwise

Loan type and bank	Loan period	Annual interest rate (%)	Amount at the end of the year	Financing facilities	Pledged or guaranteed
Credit loans
Yuanta Bank	2025.10.27 - 2026.03.03	2.03	$ 80,000	$ 80,000	None
Taipei Fubon Bank	2025.09.12 - 2026.03.11	2.09	80,000	180,000	None
CTBC	2025.12.05 - 2026.01.05	2.07	75,000	200,000	None
Mega Bank	2025.12.04 - 2026.03.24	1.98	70,000	70,000	None
First Bank	2025.12.10 - 2026.03.10	2.06	50,000	80,000	None
E-Sun Bank	2025.07.08 - 2026.05.21	1.92	50,000	100,000	None
Bank of Taiwan	2025.09.02 - 2026.02.24	1.85	50,000	50,000	None
Cathay Union Bank	2025.11.10 - 2026.05.08	2.05	35,000	50,000	None
			$ 490,000	$ 810,000

69 -

Ever Ohms Technology Co., Ltd.
Statement of accounts payable
December 31, 2025

Table 8
Unit: NT$1,000

Name of supplier	Amount
Related parties
Ever Ohms Electronic	$ 431
Leader New Energy Technology Co., Ltd.	24,198
	24,629
Non-related parties
Company A	31,213
Company B	14,726
Company C	9,442
Company D	6,881
Company E	6,006
Others (Note)	35,254
	103,522
	$ 128,151

Note: No balance of any other item exceed 5 percent of the balance of this item

70 -

Ever Ohms Technology Co., Ltd.
Statement of operating revenue
2025

Table 9		Unit: NT$1,000
Item	Quantity (KPCS)	Amount
Total operating revenue
Thick-film resistors	14,798,733	$ 546,096
Thin-film resistors	1,413,135	358,628
Mental-plate resistors	455,957	424,352
Others (Note)	24,092	3,240
		1,332,316
Less: Sales returned	4,155	1,286
Sales discount		2,046
		$ 1,328,984

Note: No balance of any other item exceed 10 percent of the balance of this item.

71 -

Ever Ohms Technology Co., Ltd.
Statement of operating costs
2025

Table 10
Unit: NT$1,000

Item	Amount
Direct raw materials
Beginning raw materials	$ 58,481
Plus: Purchased during the year	400,934
Less: expense of transfer	( 83,095 )
Raw materials for sale	( 13,246 )
Others	( 326 )
Ending raw materials	( 74,359 )
	288,389
Direct labour	180,193
Production overheads	486,923
Production cost	955,505
Plus: beginning work in progress and semi-finished products	111,137
Purchased during the year	26
Less: expense of transfer	( 12,263 )
Others	( 265 )
Ending work in progress and semi-finished products	( 93,694 )
Cost of finished goods inventory	960,446
Plus: Beginning finished goods	59,419
Purchased during the year	80,509
Less: expense of transfer	( 898 )
Others	( 6,395 )
Finished goods inventory at the end of the year	( 111,500 )
Cost of sales	981,581
Cost of sales for purchased merchandise
Plus: Beginning merchandise	5,255
Purchased during the year	134,986
Less: expense of transfer	( 187 )
Others	( 175 )
Ending merchandise	( 10,797 )
	129,082
Loss of scrapped inventory	6,579
Loss on physical inventory	509
Income from sale of scrap	( 5,562 )
Other operating costs	( 383 )
Operating costs	$ 1,111,806

72 -

Ever Ohms Technology Co., Ltd.
Statement of operating expenses
2025

Table 11
Unit: NT$1,000

Item	Selling expenses	Administrative expenses	Research and development expenses	Total
Salary expenditure (including directors' compensations)	$ 15,832	$ 42,520	$ 13,775	$ 72,127
Depreciation	3,714	8,137	6,634	18,485
Import/Export expenses	19,324	-	-	19,324
Provisions	1,427	2,365	2,354	6,146
Sample fee	6,432	-	-	6,432
Test fee	-	-	7,109	7,109
Other expenses (Note)	10,557	43,640	6,942	61,139
Subtotal	$ 57,286	$ 96,662	$ 36,814	190,762
Expected credit impairment losses				120
				$ 190,882

Note: No balance of any other item exceed 5 percent of the balance of each item

Ever Ohms Technology Co., Ltd.
Summary of the employee welfare, depreciation, and amortization expenses by function
2025 and 2024
Unit: NT$1,000

	2025				2024
	These belong to operating costs	These belong to operating expenses	These belong to non-operating expenses	Total	These belong to operating costs	These belong to operating expenses	These belong to non-operating expenses	Total
Employee benefit expense
Salary expense	$ 195,532	$ 68,924	$ -	$ 264,456	$ 178,161	$ 67,727	$ -	$ 245,888
Labor and health insurance expense	20,822	7,266	-	28,088	18,367	6,577	-	24,944
Pension expense	7,540	3,484	-	11,024	6,791	3,449	-	10,240
Remuneration of Directors	-	3,203	-	3,203	-	3,221	-	3,221
Other employee benefit expenses	11,133	4,653	-	15,786	10,877	4,580	-	15,457
	$ 235,027	$ 87,530	$ -	$ 322,557	$ 214,196	$ 85,554	$ -	$ 299,750
Depreciation expense	$ 140,698	$ 18,485	$ 285	$ 159,468	$ 136,613	$ 19,091	$ 286	$ 155,990
Amortization expenses	5,689	6,146	-	11,835	4,034	7,910	-	11,944

Note 1: For the years of 2025 and 2024, the average number of employees were 446 and 440 employees, respectively, which included four non-employee directors for both years.
Note 2: 1. The average employee benefit expenses in 2025 and 2024 were NT$723 thousand and NT$680 thousand, respectively.
2. The average employee wage expenses in 2025 and 2024 were NT$598 thousand and NT$564 thousand, respectively.
3. Average employee wages and salaries increased by about 6% in 2025, primarily due to salary adjustments.
4. The Company has established an Audit Committee to replace supervisors, so there is no remuneration to supervisors.
Note 3: The remuneration policy (include directors, managerial officers and employees) are as following:
1. Policy of directors' remunerations:
The Articles of Incorporation and the Charter of the Remuneration Committee are complied with; the proposal is made by the Remuneration Committee, and submitted to the board of directors for resolutions.
(1) Pursuant to Article 21 of the Articles of Incorporation, the Company shall, based on the profit of a year, distribute the remuneration to employees at a rate of not less than 2% and no more than 15%, and the remuneration to directors at a rate of not more than 10% of such. However, the company's accumulated losses shall have been covered."
(2) Independent directors' remunerations: other than the fixed wage compensation paid by the Company monthly, the independent directors may receive the reasonable remunerations different from the ordinary directors.
(3) Attendance fee: the Company pays the attendance fees based on the number of meetings convened.
2. Policy of managerial officers' remunerations:
The Remuneration Committee reviews the managerial officers' remunerations regularly. The performance evaluation and remuneration of managerial officers shall refer to the general payment level of the peers, while considering the personal performance evaluation results, time input, duties assumed, achievement of the personal goals, performance when taking other posts, the remunerations given to other posts equivalent by the Company in the recent years, as well as the achievement of the Company's short- and long-term business goals, and the Company's financial position, to evaluate the correlative reasonableness between the personal performance and the Company's operating performance, and the future risks.
3. Policy of employees' remunerations:
The employees' remunerations mainly include basic salaries, additional salaries, year-end bonuses and employees' compensations. The overall remuneration policy refers to the wage market conditions and the Company's operation, to determine the wage payment standards. Meanwhile, the adjustments are made based on the market wages, labor market movements, macroeconomy and changes of industry prosperity, and the requirements of governmental regulations, when appropriate. The wages and compensations of the employees are based on the experiences and education backgrounds, professional knowledge and skills, seniority of the profession, and person performance of the employees, but regardless their ages, genders, races, religions, political positions, or marital status, among other factors. Every year, subject to an employee's personal performance, the promotion and salary adjustment are made every year. The correlations between the employees' remunerations and the business performance or results are based on Article 21 of the Articles of Incorporation, the Company shall, based on the profit of a year, distribute the remuneration to employees at a rate of not less than 2% and no more than 15%, and the remuneration to directors at a rate of not more than 10% of such. However, the company's accumulated losses shall have been covered. Of the employees' compensation amount referred to in the preceding paragraph, more than 20% shall be set aside for the distribution of compensation to grassroots employees.

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EVEROHMS Audit Report / Information 2025

52641_rns_2026-04-22_c6cc8ced-1f66-4e98-9c30-52c696feaec9.pdf

Audit opinions

Basis for Opinion

Key Audit Matters

Responsibilities of Management and Those Charged with Governance for the Parent company only Financial Statements

Auditor's Responsibilities for the Audit of the Parent company only Financial Statements

XXIII. Earnings per share

XXIV. Capital risk management

XXV. Financial instruments

Sensitivity analysis

2. Credit risk

3. Liquidity risk

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EVEROHMS — Audit Report / Information 2025

52641_rns_2026-04-22_c6cc8ced-1f66-4e98-9c30-52c696feaec9.pdf

Audit opinions

Basis for Opinion

Key Audit Matters

Responsibilities of Management and Those Charged with Governance for the Parent company only Financial Statements

Auditor's Responsibilities for the Audit of the Parent company only Financial Statements

XXIII. Earnings per share

XXIV. Capital risk management

XXV. Financial instruments

Sensitivity analysis

2. Credit risk

3. Liquidity risk

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EVEROHMS Audit Report / Information 2025