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FIC GLOBAL, INC. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS' REPORT

DECEMBER 31, 2025 AND 2024

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

FIC GLOBAL, INC. AND SUBSIDIARIES
DECEMBER 31, 2025 AND 2024 CONSOLIDATED FINANCIAL STATEMENTS
AND INDEPENDENT AUDITORS’ REPORT
TABLE OF CONTENTS

Contents	Page
1. Cover Page	1
2. Table of Contents	2 ~ 3
3. Declaration of Consolidated Financial Statements of Affiliated Enterprises	4
4. Independent Auditors’ Report	5 ~ 13
5. Consolidated Balance Sheets	14 ~ 15
6. Consolidated Statements of Comprehensive Income	16
7. Consolidated Statements of Changes in Equity	17
8. Consolidated Statements of Cash Flows	18 ~ 19
9. Notes to the Consolidated Financial Statements	20 ~ 107
(1) History and Organization	20
(2) The Date of Authorization for Issuance of the Financial Statements and Procedures for Authorization	20
(3) Application of New Standards, Amendments and Interpretations	20 ~ 21
(4) Summary of Material Accounting Policies	21 ~ 42
(5) Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty	42

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Contents

Contents	Page
(6) Details of Significant Accounts	43 ~ 82
(7) Related Party Transactions	82 ~ 87
(8) Pledged Assets	88
(9) Significant Contingent Liabilities and Unrecognized Contract Commitments	88
(10) Significant Disaster Loss	88
(11) Significant Events after the Balance Sheet Date	88 ~ 89
(12) Others	89 ~ 103
(13) Supplementary Disclosures	104
(14) Segment Information	104 ~ 107

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FIC GLOBAL, INC.

Declaration of Consolidated Financial Statements of Affiliated Enterprises

For the year ended December 31, 2025, pursuant to the “Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises,” the company that is required to be included in the consolidated financial statements of affiliates, is the same as the company required to be included in the consolidated financial statements of parent and subsidiary companies under International Financial Reporting Standard 10. Also, if relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies, it shall not be required to prepare separate consolidated financial statements of affiliates.

Hereby declare,

FIC Global, Inc.

Chien Ming-Chih, Chairman

March 27, 2026

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INDEPENDENT AUDITORS' REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of FIC Global, Inc.

Opinion

We have audited the accompanying consolidated balance sheets of FIC Global, Inc. and subsidiaries (the "Group") as at December 31, 2025 and 2024, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of material accounting policies.

In our opinion, based on our audits and the reports of other auditors (refer to the Other matter section), the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2025 and 2024, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the Financial Supervisory Commission.

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the Group in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. Based on our audits and the reports of the other independent auditors, 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 consolidated financial statements for the year ended December 31, 2025. These matters were addressed in the context of our audit of the consolidated financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

Key audit matters for the consolidated financial statements for the year ended December 31, 2025 are stated as follows:

Significant Business Combination

Description

In January 2025, the Group acquired Guan Zhi Holdings Limited. Refer to Note 4(36) for the related accounting policies and Note 6(30) for the details of business combination.

The purchase price was allocated based on the purchase price allocation report provided by the external expert who was appointed by the management. As this transaction was significant for the year ended December 31, 2025, it has been identified as one of the key audit matters.

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How our audit addressed the matter

We performed the following audit procedures on the above key audit matter:

Conducted interview with the management to obtain an understanding of the purpose and evaluation process of the transaction, and reviewed the meeting minutes of the Board of Directors’ Meeting, relevant acquisition negotiation documents and stock purchase agreement to verify whether the matters resolved in the meeting were consistent with the contents stipulated in the stock purchase agreement.
Obtained purchase price allocation report provided by the valuation expert who was appointed by the management and assessed the independence of the external expert.
Reviewed the accounting treatment of this transaction and the presentation and disclosure in the financial statements.

Existence of sales revenue

Description

Refer to Note 4(34) for accounting policies on revenue recognition, and Note 6(21) for the details of operating revenue.

The Group is primarily engaged in the research and development, production and sales of optical communication, automotive electronics, surveillance products and industrial computers, electronic contract manufacturing of computers and server products. Since product orders are affected by project cycles, the Group will have to focus on accepting orders of new projects, which has a significant impact on the consolidated operating revenue. Thus, the existence of sales revenue has been identified as one of the key audit matters.

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How our audit addressed the matter

We performed the following audit procedures in respect of the above key audit matter:

Obtained an understanding of and assessed the Group’s internal controls over sales transactions.
Selected samples of sales transactions from sales customers and verified against related vouchers to ascertain existence of sales revenue.

Evaluation of inventories

Description

Refer to Note 4(14) for the accounting policies on the evaluation of inventories. Note 5(2) for the uncertainty of accounting estimates and assumptions for evaluation of inventories, and Note 6(5) for the details of inventory.

Due to the rapid technological innovations and competition within the industry, frequent releases of new products result in potential price fluctuations and product marginalization in the market. Additionally, it also affects the estimation of net realizable values of inventories. In response to changing markets and its development strategies, the Group adjusts its inventory levels. As a result, the related inventory levels for the product line as mentioned above are significant. Inventories are stated at the lower of cost and net realizable value. Since the evaluation of inventories is subject to management’s judgement and the accounting estimations will have significant influence on the net realizable values of inventories, the evaluation of inventories has been identified as one of the key audit matters.

How our audit addressed the matter

We performed the following audit procedures on the above key audit matter:

Assessed the policy on allowance for inventory valuation loss based on our understanding of the operations and industry of the Group.

Inspected the management’s individually identified out-of-date inventory list and checked the related supporting documents.
Tested the basis of market value used in calculating the net realizable values of inventory and validated the accuracy of net realizable value calculation of selected samples.

Other matter - Reference to the audits of other auditors

We did not audit the financial statements of certain consolidated subsidiaries and investments accounted for under the equity method which were audited by other auditors. Therefore, our opinion expressed herein, insofar as it relates to the amounts included in respect of these subsidiaries and associates, is based solely on the reports of the other auditors. Total assets of these subsidiaries amounted to $1,256,220 thousand and $291,020 thousand, constituting 9% and 2% of consolidated total assets as at December 31, 2025 and 2024, respectively, total operating revenues of $0, constituting 0% of consolidated total operating revenues for both years then ended, the balance of investments accounted for under the equity method amounted of $115,496 thousand and $108,862 thousand, constituting 1% and 1% of consolidated total assets as at December 31, 2025 and 2024, respectively, and the comprehensive income recognized from associates and joint ventures accounted for under the equity method amounted to $14,290 thousand and $6,611 thousand, constituting 568% and 2% of consolidated total comprehensive income for the years then ended, respectively.

Other matter – Parent company only financial reports

We have audited and expressed an unmodified opinion with an Other matter section on the parent company only financial statements of FIC Global, Inc. as at and for the years ended December 31, 2025 and 2024.

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Responsibilities of management and those charged with governance for the consolidated statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the Financial Supervisory Commission, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group'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 Group 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 Group's financial reporting process.

Auditors' responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated 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 Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

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

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Group to cease to continue as a going concern.

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Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

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

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

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From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors' 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.

Lin, Po-Chuan

Chang, Shu-Chiung

For and on Behalf of PricewaterhouseCoopers, Taiwan

March 31, 2026

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

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

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FIC GLOBAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

Assets	Notes	December 31, 2025		December 31, 2024
		AMOUNT	%	AMOUNT	%
Current assets
1100	Cash and cash equivalents	6(1)	$ 3,262,919	25	$ 2,444,233	17
1110	Financial assets at fair value through profit or loss - current	6(2)
			374,525	3	32,160	-
1136	Current financial assets at amortised cost	6(3) and 8
			55,448	-	977,150	7
1140	Current contract assets	6(21)	7,888	-	11,149	-
1150	Notes receivable, net	6(4) and 8	255,242	2	269,232	2
1170	Accounts receivable, net	6(4)	2,850,035	21	3,705,770	26
1180	Accounts receivable - related parties	7	14,512	-	43,699	1
1199	Finance lease receivable due from related parties, net	6(10) and 7
			14,338	-	15,578	-
1200	Other receivables		71,596	1	40,489	-
1210	Other receivables due from related parties	7
			5,945	-	5,042	-
1220	Current tax assets		33,167	-	44,091	-
130X	Inventories	6(5)	2,214,237	17	2,873,634	20
1410	Prepayments	7	286,947	2	702,647	5
1479	Other current assets, others		11,812	-	4,735	-
11XX	Total current assets		9,458,611	71	11,169,609	78
Non-current assets
1517	Non-current financial assets at fair value through other comprehensive income	6(6)
			8,776	-	32,624	-
1535	Non-current financial assets at amortised cost	6(3) and 8
			-	-	10,000	-
1550	Investments accounted for under equity method	6(7)
			425,858	3	428,034	3
1600	Property, plant and equipment	6(8) and 7	1,412,134	11	850,601	6
1755	Right-of-use assets	6(9)	682,563	5	537,702	4
1760	Investment property, net	6(11) and 8	865,944	6	896,851	7
1780	Intangible assets	6(30)	213,649	2	28,241	-
1840	Deferred income tax assets	6(27)	143,543	1	180,552	1
1920	Guarantee deposits paid		101,581	1	62,658	1
194K	Long-term finance lease receivable due from related parties, net	6(10) and 7
			-	-	13,640	-
1975	Net defined benefit asset, non-current	6(16)	8,173	-	6,474	-
1990	Other non-current assets		13,283	-	28,776	-
15XX	Total non-current assets		3,875,504	29	3,076,153	22
1XXX	Total assets		$ 13,334,115	100	$ 14,245,762	100

(Continued)

FIC GLOBAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

	Liabilities and Equity	Notes	December 31, 2025		December 31, 2024
			AMOUNT	%	AMOUNT	%
Current liabilities
2100	Short-term borrowings	6(12)	$ 274,283	2	$ 57,767	1
2120	Current financial liabilities at fair value through profit or loss	6(2)	-	-	10,932	-
2130	Current contract liabilities	6(21) and 7	212,280	2	231,677	2
2150	Notes payable		307	-	307	-
2170	Accounts payable		1,370,986	10	2,448,116	17
2180	Accounts payable - related parties	7	7,607	-	8,823	-
2200	Other payables	6(13)	917,837	7	706,943	5
2220	Other payables - related parties	7	123,589	1	1,896,478	13
2230	Current income tax liabilities		14,385	-	18,326	-
2250	Current provisions		10,503	-	7,241	-
2280	Current lease liabilities	6(9)	286,269	2	252,696	2
2310	Advance receipts		190,773	2	620,591	4
2320	Long-term liabilities, current portion	6(14)(15)	42,032	-	580,125	4
2399	Other current liabilities, others		13,675	-	7,611	-
21XX	Total current liabilities		3,464,526	26	6,847,633	48
Non-current liabilities
2540	Long-term borrowings	6(15)	56,695	-	-	-
2550	Non-current provisions		154,484	1	2,770	-
2570	Deferred tax liabilities	6(27)	147,220	1	110,036	1
2580	Non-current lease liabilities	6(9)	383,665	3	315,198	2
2620	Long-term notes and accounts payable to related parties	7	2,554,933	19	378,185	3
2670	Other non-current liabilities	7	60,387	1	46,379	-
25XX	Total non-current liabilities		3,357,384	25	852,568	6
2XXX	Total liabilities		6,821,910	51	7,700,201	54
Equity
Equity attributable to owners of parent
	Share capital	6(18)
3110	Common stock		2,365,422	18	2,365,266	17
	Capital surplus	6(19)
3200	Capital surplus		1,681,927	12	1,639,600	11
	Retained earnings	6(20)
3310	Legal reserve		137,753	1	134,195	1
3320	Special reserve		342,340	3	427,552	3
3350	Unappropriated retained earnings		518,260	4	553,793	4
	Other equity interest
3400	Other equity interest		( 261,954 )	( 2 )	( 342,340 )	( 2 )
31XX	Equity attributable to owners of the parent		4,783,748	36	4,778,066	34
36XX	Non-controlling interests	4(3)	1,728,457	13	1,767,495	12
3XXX	Total equity		6,512,205	49	6,545,561	46
	Significant contingent liabilities and unrecognized contract commitments	9
	Significant events after the balance sheet date	11
3X2X	Total liabilities and equity		$ 13,334,115	100	$ 14,245,762	100

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

FIC GLOBAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars, except earnings per share)

	Items	Notes	Year ended December 31
			2025		2024
			AMOUNT	%	AMOUNT	%
4000	Operating revenue	6(21) and 7	$ 9,833,198	100	$ 13,101,747	100
5000	Operating costs	6(5)(26) and 7	( 8,115,729)	( 82)	( 11,305,707)	( 86)
5900	Net operating margin		1,717,469	18	1,796,040	14
	Operating expenses	6(26) and 7
6100	Selling expenses		( 519,141)	( 5)	( 504,732)	( 4)
6200	General & administrative expenses		( 623,705)	( 7)	( 525,909)	( 4)
6300	Research and development expenses		( 571,071)	( 6)	( 535,595)	( 4)
6450	Expected credit (loss) gain	12(2)	( 17,872)	-	18,924	-
6000	Total operating expenses		( 1,731,789)	( 18)	( 1,547,312)	( 12)
6900	Operating (loss) profit		( 14,320)	-	248,728	2
	Non-operating income and expenses
7100	Interest income	6(22)	52,260	-	60,158	-
7010	Other income	6(23)(30) and 7	258,641	3	42,514	-
7020	Other gains and losses	6(24)	( 294,789)	( 3)	63,207	-
7050	Finance costs	6(25) and 7	( 37,675)	-	( 34,683)	-
7055	Expected credit loss		-	-	( 27,165)	-
7060	Share of profit (loss) of associates and joint ventures accounted for using equity method	6(7)
			27,648	-	( 40,861)	-
7000	Total non-operating revenue and expenses		6,085	-	63,170	-
7900	(Loss) profit before income tax		( 8,235)	-	311,898	2
7950	Income tax expense	6(27)	( 102,161)	( 1)	( 65,393)	-
8200	(Loss) profit for the year		($ 110,396)	( 1)	$ 246,505	2
	Other comprehensive income
	Components of other comprehensive income that will not be reclassified to profit or loss
8311	Gains on remeasurements of defined benefit plans	6(16)	$ 1,538	-	$ 10,812	-
8316	Unrealised losses from investments in equity instruments measured at fair value through other comprehensive income	6(6)	( 4,549)	-	( 1,217)	-
8320	Share of other comprehensive income of associates and joint ventures accounted for using equity method, that will not be reclassified to profit or loss		604	-	501	-
8310	Other comprehensive income that will not be reclassified to profit or loss		( 2,407)	-	10,096	-
	Components of other comprehensive income that will be reclassified to profit or loss
8361	Financial statements translation differences of foreign operations		118,939	1	149,424	1
8370	Share of other comprehensive income of associates and joint ventures accounted for using equity method, that will be reclassified to profit or loss		( 8,650)	-	13,717	-
8360	Other comprehensive income that will be reclassified to profit or loss		110,289	1	163,141	1
8300	Other comprehensive income for the year		$ 107,882	1	$ 173,237	1
8500	Total comprehensive income for the year		($ 2,514)	-	$ 419,742	3
	(Loss) profit attributable to:
8610	Shareholders of the parent		($ 88,869)	( 1)	$ 26,327	-
8620	Non-controlling interests		( 21,527)	-	220,178	2
			($ 110,396)	( 1)	$ 246,505	2
	Comprehensive income attributable to:
8710	Shareholders of the parent		$ 10,504	-	$ 120,792	1
8720	Non-controlling interests		( 13,018)	-	298,950	2
			($ 2,514)	-	$ 419,742	3
	(Loss) earnings per share (in dollars)	6(28)
9750	Basic (loss) earnings per share		($ 0.38)		$ 0.11
9850	Diluted (loss) earnings per share		($ 0.38)		$ 0.11

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

FIC GLOBAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

YEARS ENDED DECEMBER 31, 2025 AND 2024

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

	Equity attributable to owners of the parent
		Retained Earnings				Other equity interest			Non-controlling interests
		Total Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income	Total	Non-controlling interests	Total equity
Years ended December 31, 2024
Balance at January 1, 2024		$ 2,346,758	$ 1,090,188	$ 100,986	$ 379,890	$ 763,384	($ 442,429)	$ 14,877	$ 4,253,654	$ 2,994,421	$ 7,248,075
Profit for the year		-	-	-	-	26,327	-	-	26,327	220,178	246,505
Other comprehensive income (loss) for the year		-	-	-	-	11,008	84,412	(955)	94,465	78,772	173,237
Total comprehensive income (loss)		-	-	-	-	37,335	84,412	(955)	120,792	298,950	419,742
Appropriations of 2023 earnings:	6(20)
Legal reserve		-	-	33,209	-	(33,209)	-	-	-	-	-
Special reserve		-	-	-	47,662	(47,662)	-	-	-	-	-
Cash dividends of ordinary share		-	-	-	-	(164,300)	-	-	(164,300)	-	(164,300)
Changes in ownership interests in subsidiaries	6(17)(19)(29)	-	486,193	-	-	-	-	-	486,193	(1,497,303)	(1,011,110)
Conversion of convertible bonds	6(18)(19)	18,508	18,033	-	-	-	-	-	36,541	-	36,541
Changes in equity of associates and joint ventures accounted for using 6(19) equity method		-	45,186	-	-	-	-	-	45,186	104	45,290
Changes in non-controlling interests		-	-	-	-	-	-	-	-	(28,677)	(28,677)
Disposal of investments in equity instruments designated at fair value 6(6) through other comprehensive income		-	-	-	-	(1,755)	-	1,755	-	-	-
Balance at December 31, 2024		$ 2,365,266	$ 1,639,600	$ 134,195	$ 427,552	$ 553,793	($ 358,017)	$ 15,677	$ 4,778,086	$ 1,767,495	$ 6,545,561
Year ended December 31, 2025
Balance at January 1, 2025		$ 2,365,266	$ 1,639,600	$ 134,195	$ 427,552	$ 553,793	($ 358,017)	$ 15,677	$ 4,778,086	$ 1,767,495	$ 6,545,561
Loss for the year		-	-	-	-	(88,869)	-	-	88,869	(21,527)	(110,398)
Other comprehensive income (loss) for the year		-	-	-	-	1,536	101,860	(4,023)	99,373	8,509	107,882
Total comprehensive (loss) income		-	-	-	-	(87,333)	101,860	(4,023)	10,504	(13,018)	(2,514)
Appropriations of 2024 earnings:	6(20)
Legal reserve		-	-	3,558	-	(3,558)	-	-	-	-	-
Special reserve		-	-	-	(85,212)	85,212	-	-	-	-	-
Cash dividends of ordinary share		-	-	-	-	(47,305)	-	-	(47,305)	-	(47,305)
Changes in ownership interests in subsidiaries	6(17)(19)	-	6,840	-	-	-	-	-	6,840	1,134	7,974
Conversion of convertible bonds	6(18)(19)	156	834	-	-	-	-	-	990	-	990
Changes in equity of associates and joint ventures accounted for using 6(19) equity method		-	34,653	-	-	-	-	-	34,653	36	34,689
Changes in non-controlling interests		-	-	-	-	-	-	-	-	(27,190)	(27,190)
Disposal of investments in equity instruments designated at fair value 6(6) through other comprehensive income		-	-	-	-	17,451	-	(17,451)	-	-	-
Balance at December 31, 2025		$ 2,365,422	$ 1,681,937	$ 137,753	$ 342,340	$ 518,260	($ 256,157)	$ 5,797	$ 4,783,748	$ 1,728,457	$ 6,512,205

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

FIC GLOBAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

	Year ended December 31
	Notes	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
(Loss) profit before tax		$ 8,235	$ 311,898
Adjustments
Adjustments to reconcile profit (loss)
Depreciation	6(26)	568,370	529,501
Amortization	6(26)	14,854	12,395
Expected credit loss		17,872	8,241
Net (gain) loss on financial assets or liabilities at fair value	6(24)
through profit or loss		( 4,406 )	5,710
Interest expense	6(25)	37,675	34,683
Interest income	6(22)	( 52,260 )	( 60,158 )
Dividend income	6(23)	( 874 )	( 1,016 )
Share-based payments	6(17)(26)	7,974	39,870
Share of (gain) loss of associates and joint ventures	6(7)
accounted for using equity method		( 27,648 )	40,861
Gains on disposals of property, plant and equipment	6(24)	( 2,610 )	( 1,292 )
Property, plan and equipment transferred to expenses		22	115
Gains on disposals of investments	6(24)	( 1,401 )	-
Impairment loss on financial assets	6(7)(24)	48,631	9,118
Gains on write-off of past due payable	6(23)	( 223 )	( 1,069 )
Gain recognised in bargain purchase transaction	6(23)(30)	( 214,955 )	-
Loss(Gain) from lease modification	6(9)(24)	6,110	( 748 )
Losses on debt repayment	6(24)	10,627	-
Losses on provision for litigation	6(24)	147,609	-
Gains on financial liabilities at amortised cost	6(24)	( 3,638 )	-
Amortization of government grant income related to assets		( 6,148 )	( 2,961 )
Changes in operating assets and liabilities
Changes in operating assets
Financial assets at fair value through profit or loss		2,515	60,829
Contract assets		( 2,126 )	( 5,662 )
Notes receivable		22,230	( 88,382 )
Accounts receivable		972,086	( 705,538 )
Accounts receivable due from related parties		29,187	( 8,465 )
Other receivables		( 26,067 )	19,510
Other receivables due from related parties		( 903 )	3,072
Inventories		796,535	( 178,044 )
Prepayments		436,918	( 636,246 )
Other current assets		( 7,077 )	( 2,892 )
Changes in operating liabilities
Contract liabilities		( 18,744 )	( 53,049 )
Accounts payable		( 1,276,756 )	575,374
Accounts payable to related parties		( 1,216 )	305
Other payables		( 16,096 )	62,456
Other payables to related parties		11,882	5,147
Provisions		1,519	( 383 )
Advance receipts		( 450,470 )	618,859
Other current liabilities		11,785	( 1,963 )
Net defined benefit liabilities		( 160 )	4,241
Cash inflow generated from operations		1,022,388	594,317
Interest received		52,700	59,652
Dividends received		8,710	12,581
Interest paid		( 32,179 )	( 22,599 )
Income taxes paid		( 44,946 )	( 147,277 )
Net cash flows from operating activities		1,006,673	496,674

(Continued)

FIC GLOBAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

	Year ended December 31
	Notes	2025	2024
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from disposal of financial assets at fair value through other comprehensive income	6(6)	$ 19,299	$ 4,249
Acquisition of financial assets at amortised cost		( 15,713 )	( 938,675 )
Proceeds from disposal of financial assets at amortised cost		947,439	52,790
Acquisition of financial assets at fair value through profit or loss		( 369,168 )	-
Proceeds from disposal of financial assets at fair value through profit or loss		30,207	-
Net cash flow from acquisition of subsidiaries	6(30)	( 184,141 )	-
Proceeds from disposal of subsidiaries		( 6,962 )	-
Acquisition of property, plant and equipment	6(31)	( 582,876 )	( 495,693 )
Proceeds from disposal of property, plant and equipment		7,227	2,588
(Increase) decrease in guarantee deposits paid		( 34,415 )	6,072
Acquisition of intangible assets		( 21,648 )	( 6,447 )
Net cash inflows from business combination	6(30)	103,337	-
Acquisition of use-of-right assets		( 35,675 )	-
Acquisition of investment properties	6(11)	( 3,499 )	( 3,316 )
Decrease in finance lease receivable		14,880	12,641
Increase in other non-current assets		( 1,085 )	( 23,175 )
Receipt of government grants related to assets		21,048	5,625
Net cash flows used in investing activities		( 111,745 )	( 1,383,341 )
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term borrowings	6(32)	204,153	21,238
Redemption of convertible bonds	6(32)	( 579,723 )	-
Repayments of bonds	6(32)	-	( 100 )
Proceeds from long-term debt	6(32)	69,298	-
Increase in guarantee deposits received	6(32)	2,453	4,132
Decrease in financing payables - related parties	6(32)	-	( 152,786 )
Increase in long-term notes and accounts payable to related parties	6(32)	620,000	170,000
Decrease in long-term notes and accounts payable to related parties	6(32)	( 140,712 )	-
Repayments of lease liabilities	6(32)	( 292,761 )	( 262,573 )
Cash dividends paid	6(20)	( 47,305 )	( 164,300 )
Change in non-controlling interests	6(29)	( 28,440 )	785,391
Net cash flows (used in) from financing activities		( 193,037 )	401,002
Effect of exchange rate changes on cash and cash equivalents		116,795	146,951
Net increase (decrease) in cash and cash equivalents		818,686	( 338,714 )
Cash and cash equivalents at beginning of year		2,444,233	2,782,947
Cash and cash equivalents at end of year		$ 3,262,919	$ 2,444,233

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

FIC GLOBAL, INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

History and Organization

FIC Global, Inc. (referred herein as ‘FICG’) is a holding company for investment established by First International Computer, Inc. through a share conversion on August 30, 2004. FICG is primarily engaged in investment holdings. The consolidated subsidiaries are primarily engaged in research and development, manufacturing and sales of optical communication, automobile products, monitoring products, industrial computers and touch screen; electronics manufacturing services for computers and servers; and leases of property. FICG and the consolidated subsidiaries are collectively referred herein as the “Group”. The stocks of FICG were listed on the Taiwan Stock Exchange on August 30, 2004.

The Date of Authorization for Issuance of the Financial Statements and Procedures for Authorization

These consolidated financial statements were authorized for issuance by the Board of Directors on March 27, 2026.

Application of New Standards, Amendments and Interpretations

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

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

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

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

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

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

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New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 9 and IFRS 7, ‘Amendments to the classification and measurement of financial instruments’	January 1, 2026
Amendments to IFRS 9 and IFRS 7, ‘Contracts referencing nature-dependent electricity’	January 1, 2026
IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendment to IFRS 17, ‘Initial application of IFRS 17 and IFRS 9 – comparative information’	January 1, 2023
Annual Improvements to IFRS Apepunting Standards-Volume 11	January 1, 2026
The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.
(3) IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC
New standards, interpretations and amendments issued by IASB but not yet included in the IFRSs Accounting Standards as endorsed by the FSC are as follows:
New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’	To be determined by International Accounting Standards Board
IFRS 18, ‘Presentation and disclosure in financial statements’	January 1, 2027(Note)
IFRS 19, ‘Subsidiaries without public accountability: disclosures’	January 1, 2027
Amendments to IAS 21, ‘Translation to a Hyperinflationary Presentation Currency’	January 1, 2027
Note: The FSC has announced in a press release on September 25, 2025 that public companies will apply IFRS 18 starting from the fiscal year 2028. Additionally, entities can choose to adopt IFRS 18 earlier based on their requirements after the FSC endorses IFRS 18.
Except for the following, the above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.
IFRS 18, ‘Presentation and disclosure in financial statements’
IFRS 18, ‘Presentation and disclosure in financial statements’ replaces IAS 1. The standard introduces a defined structure of the statement of profit or loss, disclosure requirements related to management-defined performance measures, and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes.

4. Summary of Material Accounting Policies

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

(1) Compliance statement

The consolidated financial statements of the Group have been prepared in accordance with the "Regulations Governing the Preparation of Financial Reports by Securities Issuers", International Financial Reporting Standards, International Accounting Standards, IFRIC® Interpretations, and SIC® Interpretations that came into effect as endorsed by the FSC (collectively referred herein as the "IFRSs").

(2) Basis of preparation

A. Except for the following items, the consolidated financial statements have been prepared under the historical cost convention:

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

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

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

B. The preparation of financial statements in conformity with IFRSs Accounting Standards requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(3) Basis of consolidation

A. Basis for preparation of consolidated financial statements:

(a) All subsidiaries are included in the Group's consolidated financial statements. Subsidiaries are all entities (including structured entities) controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.

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

(c) Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

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

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

B. Subsidiaries included in the consolidated financial statements:

Name of investor	Name of subsidiary	Main business activities	Ownership (%)		Description
			December 31, 2025	December 31, 2024
FIC Global, Inc.	First International Computer, Inc. (FIC, Inc.)	Computer system analysis, planning and maintenance, EMS and import and export trade business	100%	100%
	FICTA Technology Inc. (FICTA)	Communication product business	69%	69%
	3CEMS Corp. (3CEMS)	Investment	61%	61%
	Ubiqconn Technology, Inc. (Ubiqconn)	Manufacturing and sales of industrial computers, automotive electronics, electronic components and peripheral equipment	44%	44%
	Guan Zhi Holdings Limited (GZH)	Investment and trading of touch screen	14.9%	-	Notes 2

Name of investor	Name of subsidiary	Main business activities	Ownership (%)		Description
			December 31, 2025	December 31, 2024
FIC, Inc.	FIC First International Holding B.V. (FIC Holding)	Investment	100%	100%
	High Standard Global Corp. (High Standard)	Investment	100%	100%
	Access Trend Limited (Access)	International trade business	100%	100%
	Brilliant World Limited (Brilliant)	Investment	100%	100%
	FIC TURN POWER INC.(FIC TURN POWER)	Smart energy storage charging	-	51%	Notes 1
	3CEMS	Investment	37%	37%
	FICG(JAPAN) Inc. (FICG Japan)	Sales, import and export or brokerage of communication equipment, control equipment, computers and other electronic application equipment	100%	100%
	GZH	Investment and trading of touch screen	85.1%	-	Notes 2
	GZE Guan Zhi Electronics Inc. (GZE Guan Zhi)	Investment	100%	-	Notes 3

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Name of investor	Name of subsidiary	Main business activities	Ownership (%)		Description
			December 31, 2025	December 31, 2024
GZH	Dongguan Guan Zhi Electronics Ltd. (GZE)	Research and development, manufacturing and sales of electronic materials, electronic components, display devices and touch screen	100%	-	Notes 2
FICTA	Ubiqconn	Manufacturing and sales of industrial computers, automotive electronics, electronic components and peripheral equipment	17%	17%
Ubiqconn	Ruggon Corporation (Ruggon)	Sales of industrial computers, automotive electronics, electronic components and peripheral equipment	100%	100%
	Ubiqconn Technology (USA) Inc. (Ubiqconn USA)	Sales of industrial computers, automotive electronics, electronic components and peripheral equipment	100%	100%
	Ubiqconn Technology Europe GmbH(UEG)	Sales of industrial computers, automotive electronics, electronic components and peripheral equipment	100%	100%
	Ubiqconn Technology Holding Inc.(UNH)	Investment	100%	-	Notes 4
UNH	E3 Displays,LLC (E3D)	Provision of optical bonding and design services for touchscreens and displays	100%	-	Notes 5

~25~

Name of investor	Name of subsidiary	Main business activities	Ownership (%)
			December 31, 2025	December 31, 2024
3CEMS	Prime Foundation Inc.(Prime)	Investment	100%	100%
	Danriver System Inc.
(Danriver System)	Investment	100%	100%
	Broad Technology Inc.
(Broad)	Investment	100%	100%
	Danriver Inc.
(Danriver)	Investment	100%	100%
	3CEMS Investment Management Limited
(3CEMS HK)	Investment	-	100%	Notes 6
High Standard	Fic (Suzhou) Inc.
(FIC SZ)	Real estate leasing business	100%	100%
FIC Holding	3CEMS Europe B.V.
(3CEMS Europe)	Import and export of electronic products and after-sale service	100%	100%
Danriver System	Danriver System (Guangzhou) Inc.
(Danriver System GZ)	Manufacturing of smart equipment for sports consumption, software development and sales	100%	100%
Broad	Broad Technology (Guangzhou) Inc.
(Broad GZ)	Real estate leasing business	100%	100%
Danriver	Danriver Technology (Guangzhou) Inc.
(Danriver GZ)	Real estate leasing business	100%	100%
Prime	Perfect Union Global Inc. (PUG)	Investment	100%	100%

~26~

Name of investor	Name of subsidiary	Main business activities	Ownership (%)		Description
			December 31, 2025	December 31, 2024
Danriver GZ	Guangshang Advanced Technology (Guangzhou) Ltd.(Prime GZ)	Design, production, and sales services in optical communication, automotive electronics, aerospace electronics, industrial electronics, marine electronics, communication electronics, medical electronics, and consumer electronics.	0.01%	0.01%
PUG	Prime GZ	Design, production, and sales services in optical communication, automotive electronics, aerospace electronics, industrial electronics, marine electronics, communication electronics, medical electronics, and consumer electronics.	87.45%	87.45%
Prime GZ	Prime Base Inc. (Prime Base)	Investment, assembly service and trading of printed circuit board and electronic parts and components	100%	100%
	Amertek Computer (Shenzhen) Co., Ltd. (Amertek)	Production and sales of desk personal computers and main board	100%	100%
	PRO3C(Malaysia) SDN. BHD.(PRO3C)	Production and sales of PCBA	100%	100%
	Guangzhou Guangying Electronics Co., Ltd(Guangying)	Wholesale of electronic products	100%	-	Notes 7
Amertek	Ameraris Technology (Shenzhen) Co., Ltd. (Amerwis)	Research and development and the trading	100%	100%

~27~

Note 1: FIC, Inc. sold a 36% equity interest in subsidiary, FIC Turn Power Inc., in March 2025 so that FIC, Inc. lost control over the subsidiary. FIC, Inc. recognised its investment retained in the former subsidiary at fair value on the date that control ceased and recognised gains of $1,401 presented as other gains and losses in the statements of comprehensive income.

Note 2: FIC, Inc. acquired an 85.1% equity interest in Guan Zhi Holdings Limited for a total consideration of US$1 (in dollars) and obtained control over the entity on January 1, 2025. Under the terms of the acquisition agreement, the remaining 14.9% equity interest was assessed not to be exposed to the risks and rewards of changes in the value of equity, and thus FIC, Inc. did not recognise non-controlling interests. Refer to Note 6(30) for details. In December 2025, the Company and FIC, Inc. agreed with the holders of the remaining 14.9% interest that the Company would repurchase the remaining interests in advance on behalf of FIC, Inc. The effective settlement date was set on January 1, 2026.

Note 3: In November 2025, FIC, Inc. established a subsidiary, Guan Zhi Electronic.

Note 4: In March 2025, Ubiqconn established a subsidiary, Ubiqconn Technology Holding Inc.

Note 5: On July 1, 2025, UNH acquired 100% ownership of E3 Displays, LLC. Please refer to Note 6 (30) for details.

Note 6: 3CEMS Investment Management Limited has completed liquidation in November 2025.

Note 7: In October 2024, Prime GZ established a subsidiary, Guangzhou Guangying Electronics Co., Ltd., and invested RMB 1,000 thousand in the entity in June 2025.

C. Subsidiaries not included in the consolidated financial statements: None.

D. Adjustments for subsidiaries with different balance sheet dates: None.

E. Significant restrictions: None.

F. Subsidiaries that have non-controlling interests that are material to the Group:

(a) As of December 31, 2025 and 2024, the non-controlling interest amounted to $1,728,457 and $1,767,495, respectively.

(b) The Group had no subsidiaries that have non-controlling interests that are material as of December 31, 2025 and 2024.

(4) Foreign currency translation

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The consolidated financial statements are presented in NTD, which is the Company’s functional and the Group’s presentation currency.

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A. Foreign currency transactions and balances

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

(b) Monetary assets and liabilities denominated in foreign currencies at the period end are re-translated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognized in profit or loss.

(c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognized in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognized in other comprehensive income. However, non-monetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.

(d) All foreign exchange gains and losses are presented in the statement of comprehensive income within ‘other gains and losses’.

B. Translation of foreign operations

(a) The operating results and financial position of all the group entities and associates that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

i. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;

ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and

iii. All resulting exchange differences are recognized in other comprehensive income.

(b) When the foreign operation partially disposed of or sold is an associate, exchange differences that were recorded in other comprehensive income are proportionately reclassified to profit or loss as part of the gain or loss on sale. In addition, even when the Group retains partial interest in the former foreign associate after losing significant influence over the former foreign associate, such transactions should be accounted for as disposal of all interest in these foreign operations.

(c) When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, even when the Group retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operation.

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(d) Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing exchange rates at the balance sheet date.

(5) Classification of current and non-current items

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

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

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

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

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

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

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

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

(6) Cash equivalents

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

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

A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortized cost or fair value through other comprehensive income.

B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognized and derecognized using trade date accounting.

C. At initial recognition, the Group measures the financial assets at fair value and recognizes the transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognizes the gain or loss in profit or loss.

D. The Group recognizes the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

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

A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Group has made an irrevocable election at initial recognition to recognize changes in fair value in other comprehensive income and debt instruments which meet all of the following criteria:

(a) The objective of the Group’s business model is achieved both by collecting contractual cash flows and selling financial assets; and
(b) The assets’ contractual cash flows represent solely payments of principal and interest.

B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognized and derecognized using trade date accounting.

C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. The Group subsequently measures the financial assets at fair value:

The changes in fair value of equity investments that were recognized in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognized as revenue when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

(9) Financial assets at amortized cost

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

(10) Accounts and notes receivable

A. Accounts and notes receivable entitle the Group a legal right to receive consideration in exchange for transferred goods or rendered services.
B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(11) Impairment of financial assets

For financial assets at amortized cost including accounts receivable that have a significant financing component, at each reporting date, the Group recognizes the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognizes the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable that do not contain a significant financing component, the Group recognizes the impairment provision for lifetime ECLs.

(12) Derecognition of financial assets

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

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

~31~

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

C. The contractual rights to receive cash flows of the financial asset have been transferred; however, the Group has not retained control of the financial asset.

(13) Leasing arrangements (lessor) - operating leases

A. Based on the terms of a lease contract, a lease is classified as a finance lease if the lessee assumes substantially all the risks and rewards incidental to ownership of the leased asset.

(a) At commencement of the lease term, the lessor should record a finance lease in the balance sheet as ‘lease receivables’ at an amount equal to the gross investment in the lease (including initial direct costs). The difference between gross lease receivable and the present value of the receivable is recognized as ‘unearned finance income of finance lease’.

(b) The lessor should allocate finance income over the lease term based on a systematic and rational basis reflecting a constant periodic rate of return on the lessor’s net investment in the finance lease.

(c) Lease payments (excluding costs for services) during the lease term are applied against the gross investment in the lease to reduce both the principal and the unearned finance income.

B. Lease income from an operating lease (net of any incentives given to the lessee) is recognized in profit or loss on a straight-line basis over the lease term.

(14) Inventories

Inventories are stated at the lower of cost and net realizable value. Cost is determined using the weighted-average method. The cost of finished goods and work in progress comprises raw materials, direct labor, other direct costs and related production overheads (allocated based on normal operating capacity). It excludes borrowing costs. The item by item approach is used in applying the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.

(15) Investments accounted for using equity method / associates

A. Associates are all entities over which the Group has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognized at cost.

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

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C. When changes in an associate’s equity do not arise from profit or loss or other comprehensive income of the associate and such changes do not affect the Group’s ownership percentage of the associate, the Group recognizes change in ownership interests in the associate in ‘capital surplus’ in proportion to its ownership.

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

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

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

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

(16) Property, plant and equipment

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

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

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

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

Buildings and structures
- Main buildings of the plant	48 ~ 50 years
- Air conditioning system	5 ~ 10 years
- Sewage treatment system	5 ~ 10 years
Machinery and equipment	3 ~ 10 years
Transportation equipment	2 ~ 10 years
Office equipment	2 ~ 10 years
Leasehold improvements	2 ~ 5 years
Other equipment	2 ~ 8 years

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

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

B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of fixed payments, less any lease incentives receivable.

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

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

(a) The amount of the initial measurement of lease liability;
(b) Any lease payments made at or before the commencement date;
(c) Any initial direct costs incurred by the lessee.

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

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

(18) Investment property

An investment property is stated initially at its cost and measured subsequently using the cost model. Except for land, investment property is depreciated on a straight-line basis over its estimated useful life of 48 ~ 50 years.

(19) Intangible assets

A. Computer software

Computer software is stated at cost and amortized on a straight-line basis over its estimated useful life of 3 to 10 years.

B. Customer relationships and proprietary technology arises in a business combination and recognized at their fair value as of the acquisition date. The basis for the fair value recognition is derived from the valuation report. These assets are amortized on a straight-line basis over their estimated useful lives of 3 to 13.5 years.

C. Goodwill

Goodwill arises in a business combination accounted for by applying the acquisition method.

(20) Impairment of non-financial assets

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

B. The recoverable amount of goodwill is evaluated periodically. An impairment loss is recognized for the amount by which the asset's carrying amount exceeds its recoverable amount. Impairment loss of goodwill previously recognized in profit or loss shall not be reversed in the following years.

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

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(21) Borrowings

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

(22) Notes and accounts payable

A. Accounts payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities.

B. The short-term notes and accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

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

A. Financial liabilities are classified in this category of held for trading if acquired principally for the purpose of repurchasing in the short-term. Derivatives are also categorized as financial liabilities held for trading unless they are designated as hedges.

B. At initial recognition, the Group measures the financial liabilities at fair value. All related transaction costs are recognized in profit or loss. The Group subsequently measures these financial liabilities at fair value with any gain or loss recognized in profit or loss.

(24) Convertible bonds payable

Convertible bonds issued by the Group contain conversion options (that is, the bondholders have the right to convert the bonds into the Group’s common shares by exchanging a fixed amount of cash for a fixed number of common shares), call options and put options. The Group classifies the bonds payable upon issuance as a financial asset, a financial liability or an equity instrument (‘capital surplus - share options’) in accordance with the contract terms. They are accounted for as follows:

A. The embedded call options and put options are recognized initially at net fair value as ‘financial assets at fair value through profit or loss’. They are subsequently remeasured and stated at fair value on each balance sheet date; the gain or loss is recognized as ‘gain or loss on valuation of financial assets or financial liabilities at fair value through profit or loss’.

B. The host contracts of bonds are initially recognized at fair value. Any difference between the initial recognition and the redemption value is accounted for as the discount on bonds payable and subsequently is amortized in profit or loss as an adjustment to ‘finance costs’ over the period of circulation using the effective interest method.

C. The embedded conversion options which meet the definition of an equity instrument are initially recognized in ‘capital surplus - share options’ at the residual amount of total issue price less the amount of financial assets at fair value through profit or loss and net bonds payable as stated above. Conversion options are not subsequently remeasured.

D. Any transaction costs directly attributable to the issuance are allocated to each liability or equity component in proportion to the initial carrying amount of each abovementioned item.

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E. When bondholders exercise conversion options, the liability component of the bonds (including bonds payable and ‘financial assets or financial liabilities at fair value through profit or loss’) shall be remeasured on the conversion date. The issuance cost of converted common shares is the total carrying amount of the abovementioned liability component and ‘capital surplus - share options’.

(25) Derecognition of financial liabilities

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

(26) Offsetting financial instruments

Financial assets and liabilities are offset and reported in the net amount in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously.

(27) Non-hedging derivatives

Non-hedging derivatives are initially recognised at fair value on the date a derivative contract is entered into and recorded as financial assets or financial liabilities at fair value through profit or loss. They are subsequently remeasured at fair value and the gains or losses are recognised in profit or loss.

(28) Provisions

Provisions (including warranties, litigation) are recognized when the Group has a present legal or constructive obligation as a result of past events, and it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation on the balance sheet date, which is discounted using a pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the obligation. When discounting is used, the increase in the provision due to passage of time is recognized as interest expense. Provisions are not recognized for future operating losses.

(29) Employee benefits

A. Salaries and other 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 expense in that period when the employees render service.

B. Pensions

(a) Defined contribution plan

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

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(b) Defined benefit plans

i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Group in current period or prior periods. The liability recognized in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability; when there is no deep market in high-quality corporate bonds, the Group uses interest rates of government bonds (at the balance sheet date) instead.

ii. Remeasurements arising on defined benefit plans are recognized in other comprehensive income in the period in which they arise and are recorded as retained earnings.

iii. Past service costs are recognized immediately in profit or loss.

C. Employees' compensation and directors' remuneration

Employees' compensation and directors' remuneration are recognized as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates. If employee compensation is paid by shares, the Group calculates the number of shares based on the closing price at the previous day of the board meeting resolution.

(30) Employee share-based payment

A. For the equity-settled share-based payment arrangements, the employee services received are measured at the fair value of the equity instruments granted at the grant date, and are recognized as compensation cost over the vesting period, with a corresponding adjustment to equity. The fair value of the equity instruments granted shall reflect the impact of market vesting conditions and non-vesting conditions. Compensation cost is subject to adjustment based on the service conditions that are expected to be satisfied and the estimates of the number of equity instruments that are expected to vest under the non-market vesting conditions at each balance sheet date. Ultimately, the amount of compensation cost recognized is based on the number of equity instruments that eventually vest.

B. Restricted stocks:

(a) Restricted stocks issued to employees are measured at the fair value of the equity instruments granted at the grant date, and are recognized as compensation cost over the vesting period.

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(b) For restricted stocks where those stocks do not restrict distribution of dividends to employees but employees must return the dividends received if they resign during the vesting period, when the Group receives dividends from employees resigning during the vesting period, the Group credits related amounts that were previously debited from retained earnings, legal reserve or capital surplus at the date of dividends declared.

(c) For restricted stocks where employees have to pay to acquire those stocks, if the employees resign during the vesting period, they must return the stocks to the Group and the Group must refund their payments on the stocks. For restricted stocks issued with consideration with the grant date set on or after October 11, 2024, the Group recognises the payments from the employees who had paid to acquire the stocks as liabilities at the grant date; For restricted stocks issued with consideration with the grant date set on or before October 10, 2024, the Group recognises the payments from the employees who are expected to resign during the vesting period as liabilities at the grant date, and recognises the payments from the employees who are expected to be eventually vested with the stocks in ‘capital surplus – others’.

(31) Income tax

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

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

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

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

(32) Share Capital

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

(33) Dividends

Dividends are recorded in the Company’s financial statements in the period in which they are resolved by the Company’s shareholders. Cash dividends are recorded as liabilities; stock dividends are recorded as stock dividends to be distributed and are reclassified to ordinary shares on the effective date of new shares issuance.

(34) Revenue recognition

A. Sales revenue and electronics manufacturing services revenue

(a) The Group manufactures and sells optical communication, automobile products, monitoring products and industrial computer; and engages in electronics manufacturing services for computers and servers. Sales are recognized when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, or the Group has objective evidence that all criteria for acceptance have been satisfied.

(b) The Company’s obligation to provide a repair for faulty products under the standard warranty terms is recognised as a provision.

(c) A receivable is recognized when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

B. Service revenue

(a) The Group provides technology development services. Revenue from providing services is recognized in the accounting period in which the services are rendered. For fixed-price contracts, revenue is recognized based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided. This is determined based on the actual costs incurred relative to the total expected costs. The customer pays at the time specified in the payment schedule. If the services rendered exceed the payment, a contract asset is recognized. If the payments exceed the services rendered, a contract liability is recognized.

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(b) The Group’s estimate about revenue, costs and progress towards complete satisfaction of a performance obligation is subject to a revision whenever there is a change in circumstances. Any increase or decrease in revenue or costs due to an estimate revision is reflected in profit or loss during the period when the management become aware of the changes in circumstances.

(c) Revenue from a consulting service contract in which the Group bills a fixed amount for service provided is recognized at the amount to which the Group has the right to invoice.

C. Rental revenue

Refer to Note 4(13) for accounting policies of rental revenue.

(35) Government grants

Government grants are recognized at their fair value only when there is reasonable assurance that the Group will comply with any conditions attached to the grants and the grants will be received. Government grants are recognized in profit or loss on a systematic basis over the periods in which the Group recognizes expenses for the related costs for which the grants are intended to compensate. Government grants related to property, plant and equipment are recognized as non-current liabilities and are amortized to profit or loss over the estimated useful lives of the related assets using the straight-line method.

(36) Business combinations

A. The Group uses the acquisition method to account for business combinations. The consideration transferred for an acquisition is measured as the fair value of the assets transferred, liabilities incurred or assumed and equity instruments issued at the acquisition date, plus the fair value of any assets and liabilities resulting from a contingent consideration arrangement. All acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. For each business combination, the Group measures at the acquisition date components of non-controlling interests in the acquiree that are present ownership interests and entitle their holders to the proportionate share of the entity’s net assets in the event of liquidation at either fair value or the present ownership instruments’ proportionate share in the recognised amounts of the acquiree’s identifiable net assets. All other non-controlling interests should be measured at the acquisition-date fair value.

B. The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the fair value of any previous equity interest in the acquiree over the fair value of the identifiable assets acquired and the liabilities assumed is recorded as goodwill at the acquisition date. If the total of consideration transferred, non-controlling interest in the acquiree recognised and the fair value of previously held equity interest in the acquiree is less than the fair value of the identifiable assets acquired and the liabilities assumed, the difference is recognised directly in profit or loss on the acquisition date.

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(37) Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The Group’s chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors that makes strategic decisions.

(38) Financial liabilities- put option of non-controlling interests

The acquisition agreement signed between the Group and non-controlling interests contains a put option of non-controlling interests. Upon initial recognition, based on the substance of the arrangement and the definitions of financial liabilities, financial assets, and equity instruments, the instrument or its components were classified as financial liabilities. A forward contract that contains an obligation for the Group to purchase its own equity instruments for cash or another financial asset gives rise to a financial liability for the present value of the redemption amount. Financial liabilities are recognised initially at the present value of the redemption amount. Subsequently, financial liabilities are measured at amortized cost.

Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

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

(1) Critical judgements in applying the Group’s accounting policies

None.

(2) Critical accounting estimates and assumptions

Evaluation of inventories

As inventories are stated at the lower of cost and net realizable value, the Group must determine the net realizable value of inventories on balance sheet date using judgements and estimates. Due to the rapid technology innovation, the Group evaluates the amounts of normal inventory consumption, obsolete inventories or inventories without market selling value on balance sheet date, and writes down the cost of inventories to the net realizable value. Such an evaluation of inventories is principally based on estimated past product sales experience. Therefore, there might be material changes to the evaluation.

As of December 31, 2025, the carrying amount of inventories was $2,214,237.

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6. Details of Significant Accounts

(1) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash on hand and petty cash	$ 570	$ 2,114
Checking accounts and demand deposits	1,738,155	1,777,155
Cash equivalents-time deposits	1,324,194	664,964
Cash equivalents-short term repurchase agreements	200,000	-
	$ 3,262,919	$ 2,444,233

A. The annual interest rate of the Group’s repurchase agreements was 1.32% for the year. The bond matures within three months and is a highly liquid cash equivalent.

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

C. The Group classified cash and cash equivalents that was pledged to others as current financial assets at amortized cost. Refer to Note 8.

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

Items	December 31, 2025	December 31, 2024
Current items:
Financial assets mandatorily measured at fair value through profit or loss
Listed stocks	$ 310,983	$ 2,015
Beneficiary certificates	63,542	30,145
	$ 374,525	$ 32,160
Financial liability held for trading
Derivative instruments
- Call/put options of convertible bonds	$ -	$ 10,932

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

	Year ended December 31
	2025	2024
Financial assets and liabilities mandatorily measured at fair value through profit or loss
Equity instruments
Gains or losses on valuation and disposal	$ 3,272	($ 373)
Dividend income	645	169
Beneficiary certificates	133	577
Derivative instruments	1,001	( 5,914)
	$ 5,051	($ 5,541)

B. The Group has no financial assets at fair value through profit or loss pledged to others.

(3) Financial assets at amortized cost

Items	December 31, 2025	December 31, 2024
Current items:
Time deposits with original maturity over three months	$ 28,796	$ 931,432
Restricted bank deposits	26,652	45,718
	$ 55,448	$ 977,150
Non-Current items:
Restricted bank deposits	$ -	$ 10,000

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

	Year ended December 31
	2025	2024
Interest income	$ 5,463	$ 2,950

B. As of December 31, 2025 and 2024, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at amortized cost held by the Group was $55,448 and $987,150, respectively.

C. Details of the Group’s financial assets at amortized cost pledged to others as collateral are provided in Note 8.

D. Information relating to credit risk of financial assets at amortized cost is provided in Note 12(2). The counterparties of the Group’s investments in certificates of deposits are financial institutions with high credit quality, so the Group expects that the probability of counterparty default is low.

(4) Notes and accounts receivable

	December 31, 2025	December 31, 2024
Notes receivable	$ 255,242	$ 269,232
Less: Allowance for uncollectible accounts	-	-
	$ 255,242	$ 269,232
Accounts receivable	$ 2,902,418	$ 3,736,167
Less: Allowance for uncollectible accounts	( 52,383)	( 30,397)
	$ 2,850,035	$ 3,705,770

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

	December 31, 2025		December 31, 2024
	Accounts receivable	Notes receivable	Accounts receivable	Notes receivable
Not past due	$ 2,539,227	$ 255,242	$ 3,103,878	$ 269,232
Up to 30 days	338,953	-	618,471	-
31 to 90 days	14,171	-	36,256	-
91 to 180 days	13,321	-	11,317	-
Over 180 days	11,258	-	9,944	-
	$ 2,916,930	$ 255,242	$ 3,779,866	$ 269,232

The above ageing analysis was based on past due date.

B. As of December 31, 2025 and 2024, accounts receivable and notes receivable were all from contracts with customers. As of January 1, 2024, the balance of receivables from contracts with customers and allowance for uncollectible accounts amounted to $2,953,823 and $64,688, respectively.

C. As of December 31, 2025 and 2024, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Group's notes and accounts receivable (including related parties) was $3,119,789 and $4,018,701, respectively.

D. Details of the Group's notes and accounts receivable pledged to others as collateral are provided in Note 8.

E. As of December 31, 2025 and 2024, the Group had outstanding discounted notes receivable amounting to $150,206 and $140,962, respectively. The Group has payment obligation when the drawers of the notes refuse to pay for the notes at maturity. However, in general, the Group does not expect that the drawers of the notes would refuse to pay for the notes at maturity. The liabilities arising on discounted notes receivable were presented as other payables.

F. Information relating to credit risk of notes and accounts receivable is provided in Note 12(2).

(5) Inventories

	December 31, 2025
	Cost	Allowance for valuation loss	Book value
Raw materials	$ 1,552,304	($ 305,175)	$ 1,247,129
Work in progress	523,835	( 32,507)	491,328
Finished goods	457,899	( 16,590)	441,309
Inventory in transit	34,471	-	34,471
	$ 2,568,509	($ 354,272)	$ 2,214,237

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	December 31, 2024
	Cost	Allowance for valuation loss	Book value
Raw materials	$ 1,671,814	($ 285,520)	$ 1,386,294
Work in progress	469,936	( 25,843)	444,093
Finished goods	1,022,700	( 16,691)	1,006,009
Inventory in transit	37,238	-	37,238
	$ 3,201,688	($ 328,054)	$ 2,873,634

Operating costs that the Group recognized for the year:

	Year ended December 31
	2025	2024
The cost of inventories recognized as expense for the year
Cost of goods sold	$ 8,069,637	$ 11,348,295
Gain on reversal of decline in market value	( 18,665)	( 110,360)
Cost of goods	8,050,972	11,237,935
Cost of rental sales	64,757	67,772
Total operating costs	$ 8,115,729	$ 11,305,707

For the years ended December 31, 2025 and 2024, The Group reversed from a previous inventory write-down and accounted for as reduction of cost of goods sold because of sales.

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

	December 31, 2025	December 31, 2024
Non-current items:
Equity instruments
Listed stocks	$ 7,561	$ 31,294
Unlisted stocks	1,215	1,330
	$ 8,776	$ 32,624

A. The Group has elected to classify equity instruments investments that are considered to be strategic investment as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $8,776 and $32,624 as at December 31, 2025 and 2024, respectively.

B. For the years ended December 31, 2025 and 2024, due to strategic operational planning, the Group divested equity instrument investments with a fair value of $19,299 and $4,249, incurring a cumulative gain (loss) on disposal amounting to $17,451 and ($1,755), respectively.

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

	Year ended December 31
	2025	2024
Equity instruments at fair value through other comprehensive income
Fair value change recognized in other comprehensive income	($ 4,549)	($ 1,217)
Cumulative (gain) loss transferred to retained earnings due to derecognition.	($ 17,451)	$ 1,755
Dividend income recognized in profit or loss
Held at the end of the year	$ 229	$ 847

D. The Group has no financial assets at fair value through other comprehensive income pledged to others.

(7) Investments accounted for using equity method / associates

A. Details are as follows:

	December 31, 2025	December 31, 2024
LEO Systems, Inc.	$ 87,319	$ 82,122
Formosa21 Inc.	23,568	20,324
Amerwave Technology (Shenzhen) Co., Ltd.	62,988	56,234
City Smarter Technologies Co.	252	330
Geointelligence Systems, Inc.	694	733
Web Information Technology Inc.	-	-
Lambert Newmedia, Inc.	-	-
Witology Technology Co., Ltd.	3,915	5,683
Ideenion Holding Inc.	247,122	262,608
	$ 425,858	$ 428,034

B. The basic information of the Group's associates is as follows:

	Shareholding ratio
	December 31, 2025	December 31, 2024
LEO Systems, Inc.	6%	6%
Formosa21 Inc.	29%	29%
Amerwave Technology (Shenzhen) Co., Ltd.	19%	19%
City Smarter Technologies Co.	19%	19%
Geointelligence Systems, Inc.	1%	1%
Web Information Technology Inc.	42%	42%
Lambert Newmedia, Inc.	24%	24%
Witology Technology Co., Ltd.	20%	20%
Ideenion Holding Inc.	35%	27%

Investment profit or loss that the Group recognized are listed below:

	Year ended December 31
	2025	2024
LEO Systems, Inc.	$ 12,139	$ 8,332
Formosa21 Inc.	3,244	( 894)
Amerwave Technology (Shenzhen) Co., Ltd.	6,683	6,949
City Smarter Technologies Co.	( 78)	( 182)
Geointelligence Systems, Inc.	57	128
Web Information Technology Inc.	-	-
Lambert Newmedia, Inc.	-	-
Witology Technology Co., Ltd.	( 1,768)	( 1,540)
Ideenion Holding Inc.	7,371	( 53,654)
	$ 27,648	($ 40,861)

(a) As the Group has significant influence over LEO Systems, Inc., Amerwave Technology (Shenzhen) Co., Ltd., City Smarter Technologies Corporation and Geointelligence Systems, Inc., these associates are accounted for under equity method although its shareholding ratios in these associates are less than $20\%$ .
(b) Ideenion Holding Inc. increased its capital in February, April and July 2024. The Company did not acquire shares proportionally to its interest. As a result, the shareholding ratio decreased from $35\%$ to $27\%$ , and capital surplus increased by $\$44,775$ . Ideenion Holding Inc. retired its restricted shares, resulting in an increase in the Company's shareholding ratio from $27\%$ to $35\%$ and an increase in capital surplus of $\$34,510$ .

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

As of December 31, 2025 and 2024 the carrying amount of the Group's individually immaterial associates amounted to $425,858 and$ 428,034, respectively.

	Year ended December 31
	2025	2024
Profit (loss) for the year	$ 27,648	($ 40,861)
Other comprehensive income, net of tax	( 8,046)	14,218
Total comprehensive income for the year	$ 19,602	($ 26,643)

The above-mentioned share of profit or loss and other comprehensive income of associates accounted for under equity method was recognized based on each associate's financial statements of the same period that were audited by auditors, except for Web Information Technology Inc., Lambert Newmedia, Inc. and City Smarter Technologies Corporation for the years ended December 31, 2025 and 2024. The management believed there will be no significant influence although the above-mentioned financial statements of the investee companies were not audited by independent auditors.

D. The fair value of the Group’s associates with quoted market prices is as follows:

	December 31, 2025	December 31, 2024
LEO Systems, Inc.	$ 158,654	$ 161,755

E. As the recoverable amount of the investment in Ideenion Holding Inc. was lower than the carrying amount, the Group recognised an impairment loss of $48,631 and $9,118 for the year ended December 31, 2025 and 2024, respectively.

~49~

(8) Property, plant and equipment

	Buildings and structures	Machinery and equipment	Transportation equipment	Office equipment	Leasehold improvements	Other equipment	Construction in progress and equipment under installation	Total
January 1, 2025
Cost	$ 227,438	$ 1,826,290	$ 8,310	$ 184,260	$ 107,369	$ 136,578	$ 119,115	$ 2,609,360
Accumulated depreciation and impairment	( 205,541)	( 1,237,122)	( 6,479)	( 133,181)	( 52,547)	( 123,889)	-	( 1,758,759)
	$ 21,897	$ 589,168	$ 1,831	$ 51,079	$ 54,822	$ 12,689	$ 119,115	$ 850,601
January 1, 2025	$ 21,897	$ 589,168	$ 1,831	$ 51,079	$ 54,822	$ 12,689	$ 119,115	$ 850,601
Additions	9,431	54,467	376	28,528	7,679	12,092	407,860	520,433
Disposals	-	( 4,349)	-	( 253)	-	( 15)	-	( 4,617)
Reclassifications	-	216,912	-	2,477	1,524	1,457	16,451	238,821
Depreciation	( 7,228)	( 186,126)	( 910)	( 26,216)	( 23,981)	( 7,361)	-	( 251,822)
Disposal of subsidiaries	-	-	-	( 446)	-	( 86)	-	( 532)
Acquired from business	-	28,974	-	540	-	2,737	-	32,251
Net exchange differences	19	1,332	( 15)	90	( 313)	91	25,795	26,999
December 31, 2025	$ 24,119	$ 700,378	$ 1,282	$ 55,799	$ 39,731	$ 21,604	$ 569,221	$ 1,412,134
December 31, 2025
Cost	$ 236,755	$ 2,645,595	$ 7,348	$ 214,500	$ 124,059	$ 333,492	$ 569,221	$ 4,130,970
Accumulated depreciation and impairment	( 212,636)	( 1,945,217)	( 6,066)	( 158,701)	( 84,328)	( 311,888)	-	( 2,718,836)
	$ 24,119	$ 700,378	$ 1,282	$ 55,799	$ 39,731	$ 21,604	$ 569,221	$ 1,412,134

	2024
	Buildings and structures	Machinery and equipment	Transportation equipment	Office equipment	Leasehold improvements	Other equipment	Construction in progress and equipment under installation	Total
January 1, 2024
Cost	$204,652	$1,496,411	$6,757	$154,438	$66,551	$128,607	$73,361	$2,130,777
Accumulated depreciation
and impairment	(190,958)	(1,063,856)	(5,467)	(109,487)	(27,191)	(115,641)	-	(1,512,600)
	$13,694	$432,555	$1,290	$44,951	$39,360	$12,966	$73,361	$618,177
January 1, 2024	$13,694	$432,555	$1,290	$44,951	$39,360	$12,966	$73,361	$618,177
Additions	7,008	59,153	1,360	20,310	40,060	4,485	338,999	471,375
Disposals	-	(1,238)	-	(58)	-	-	-	(1,296)
Reclassifications	7,039	267,287	-	7,214	57	1,145	(295,712)	(12,970)
Depreciation	(6,345)	(181,810)	(865)	(22,484)	(25,689)	(6,073)	-	(243,266)
Net exchange differences	501	13,221	46	1,146	1,034	166	2,467	18,581
December 31, 2024	$21,897	$589,168	$1,831	$51,079	$54,822	$12,689	$119,115	$850,601
December 31, 2024
Cost	$227,438	$1,826,290	$8,310	$184,260	$107,369	$136,578	$119,115	$2,609,360
Accumulated depreciation and
impairment	(205,541)	(1,237,122)	(6,479)	(133,181)	(52,547)	(123,889)	-	(1,758,759)
	$21,897	$589,168	$1,831	$51,079	$54,822	$12,689	$119,115	$850,601
A. The Group has no interest capitalized as part of property, plant and equipment.
B. Property, plant and equipment of the Group are all assets for its own use.
C. The Group has no property, plant and equipment that were pledged to others as collateral.

(9) Leasing arrangements - lessee

Right-of-use assets

A. The Group leases various assets including land use right, buildings and structures and transportation equipment. Rental contract of land use right is made for a period of 50 years, and the remaining assets are 2 to 10 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants.

B. Short-term leases with a lease term of 12 months or less comprise warehouse and equipment.

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

	December 31, 2025	December 31, 2024
	Carrying amount	Carrying amount
Land use right	$ 10,954	$ 11,442
Buildings and structures	668,648	523,978
Others	2,961	2,282
	$ 682,563	$ 537,702
	Year ended December 31
	2025	2024
	Depreciation charge	Depreciation charge
Land use right	$ 461	$ 470
Buildings and structures	282,346	253,614
Others	1,184	1,115
	$ 283,991	$ 255,199

D. For the years ended December 31, 2025 and 2024, the additions to right-of-use assets were $395,820 and $329,447, respectively.

E. Except for depreciation, the remaining information on profit or loss in relation to lease contracts is as follows:

	Year ended December 31
	2025	2024
Items affecting profit or loss
Interest expense on lease liabilities	$ 19,562	$ 18,228
Expense on short-term lease contracts	55,581	65,304
(Loss) gain on lease modification	( 6,110)	748
Gain from subleasing right-of-use assets	1,056	1,717

F. For the years ended December 31, 2025 and 2024, the Group’s total cash outflow for leases were $367,904 and $346,105, respectively.

Lease liabilities

Carrying amount of the lease liabilities	December 31, 2025	December 31, 2024
Current	$ 286,269	$ 252,696
Non-current	$ 383,665	$ 315,198

(10) Leasing arrangements – lessor

A. The Group leases various assets including land, buildings and land use right. Rental contracts are typically made for periods of 1 and 12 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.

B. The Group leases land and buildings under a finance lease. Based on the terms of the lease contract, the lease period covers the main part of the leased assets’ economic life. Information on profit or loss in relation to lease contracts is as follows:

	Year ended December 31
	2025	2024
Finance income from the net investment in the finance lease	$ 1,056	$ 1,717

C. The maturity analysis of the undiscounted lease payments in the finance lease is as follows:

	December 31, 2025	December 31, 2024
Less than 1 year	$ 14,639	$ 15,936
Between 1 and 5 years	-	14,639
	$ 14,639	$ 30,575

D. Reconciliation of the undiscounted lease payments and the net investment in the finance lease is provided as follows:

	December 31, 2025
	Current	Non-current
Undiscounted lease payments	$ 14,639	$ -
Unearned finance income	( 301)	-
Net investment in the lease	$ 14,338	$ -
	December 31, 2024
	Current	Non-current
Undiscounted lease payments	$ 15,936	$ 14,639
Unearned finance income	( 358)	( 999)
Net investment in the lease	$ 15,578	$ 13,640

E. The Group’s lease receivables are not past due, and no significant deterioration in credit risk ratings was noted.

F. Gain arising from operating lease agreements for the years ended December 31, 2025 and 2024 are as follows:

	Year ended December 31
	2025	2024
Operating revenue - rent revenue	$ 111,530	$ 129,776
Non-operating income - other income	11,199	7,955
	$ 122,729	$ 137,731

G. The maturity analysis of the lease payments under the operating leases is as follows:

	December 31, 2025	December 31, 2024
Less than 1 year	$ 83,553	$ 77,369
Between 1 and 5 years	37,992	66,919
Over 5 years	35	461
	$ 121,580	$ 144,749

(11) Investment property

	2025
	Land	Land use right	Buildings and structures	Total
January 1, 2025
Cost	$ 19,772	$ 162,719	$ 1,642,923	$ 1,825,414
Accumulated depreciation	-	( 66,697)	( 861,866)	( 928,563)
	$ 19,772	$ 96,022	$ 781,057	$ 896,851
January 1, 2025	$ 19,772	$ 96,022	$ 781,057	$ 896,851
Additions	-	-	3,499	3,499
Depreciation charge	-	( 3,268)	( 29,289)	( 32,557)
Net exchange differences	-	( 212)	( 1,637)	( 1,849)
December 31, 2025	$ 19,772	$ 92,542	$ 753,630	$ 865,944
December 31, 2025
Cost	$ 19,772	$ 162,486	$ 1,644,248	$ 1,826,506
Accumulated depreciation	-	( 69,944)	( 890,618)	( 960,562)
	$ 19,772	$ 92,542	$ 753,630	$ 865,944

	2024
	Land	Land use right	Buildings and structures	Total
January 1, 2024
Cost	$19,772	$157,232	$1,583,174	$1,760,178
Accumulated depreciation	-	(61,214)	(807,154)	(868,368)
	$19,772	$96,018	$776,020	$891,810
January 1, 2024	$19,772	$96,018	$776,020	$891,810
Additions	-	-	3,316	3,316
Reclassifications	-	-	3,344	3,344
Depreciation charge	-	(3,336)	(27,700)	(31,036)
Net exchange differences	-	3,340	26,077	29,417
December 31, 2024	$19,772	$96,022	$781,057	$896,851
December 31, 2024
Cost	$19,772	$162,719	$1,642,923	$1,825,414
Accumulated depreciation	-	(66,697)	(861,866)	(928,563)
	$19,772	$96,022	$781,057	$896,851

A. Rental income from investment property and direct operating expenses arising from investment property are shown below:

	Year ended December 31
	2025	2024
Rental income from investment property	$114,825	$132,994
Direct operating expenses arising from the investment property that generated rental income during the year	$66,172	$69,188
Direct operating expenses arising from the investment property that did not generate rental income during the year	$21,684	$21,308

B. The fair value of the investment property and the land use right attributable to it held by the Group as at December 31, 2025 and 2024 was $3,532,730 and $3,589,070, respectively, which was valued by independent valuers and referred to market evidence on transaction price of similar property.

C. Information about the investment property that was pledged to others as collateral is provided in Note 8.

(12) Short-term borrowings

	December 31, 2025	December 31, 2024
Unsecured bank borrowings	$ 274,283	$ 57,767
Interest rate range	2.75%~4.00%	3.40%~3.50%
(13) Other payables
	December 31, 2025	December 31, 2024
Wages, salaries and bonuses payable	$ 339,530	$ 316,784
Compensation due to directors and employees	-	1,075
Tax payable	19,725	23,301
Freight payable	6,445	19,022
Payable on machinery and equipment	202,055	23,138
Payable on shares	14,294	14,435
Insurance expense payable	10,633	11,797
Material processing fees payable	6,226	8,023
Discounted notes receivable	150,206	140,962
Professional service payable	9,838	18,227
Purchases on behalf of others	4,465	-
Others	154,420	130,179
	$ 917,837	$ 706,943

(14) Bonds payable

	December 31, 2025	December 31, 2024
Bonds payable	$ 28,100	$ 597,400
Less: Discount on bonds payable	(241)	(17,275)
	27,859	580,125
Less: Current portion or exercise of put options	(27,859)	(580,125)
	$ -	$ -

The Group obtained approval from the competent authority to issue the first domestic unsecured convertible bonds (referred herein as the 'first convertible bonds') for a total issue amount of $700,000 based on 101% of the face value.

A. The issuance terms are as follows:

(a) Issuance period: 3 years (September 10, 2021 to September 10, 2024)
(b) Coupon rate: 0% fixed per annum
(c) Repayment term:

The first convertible bonds will be redeemed in cash at face value at the maturity date by the Company, except for those which had been repurchased in advance and repurchased and retired through a securities firm by FICG or the bondholders had exercised conversion of options and put options.

(d) Conversion period:

The bondholders have the right to ask FICG for conversion of the convertible bonds into common shares of FICG during the period from the date after three months of the first convertible bonds issue, except for those which had been repurchased in advance and repurchased and retired through a securities firm by FICG or the stop transfer period as specified in the laws and regulations or the consignment contract.

(e) Conversion price:

The conversion price of the first convertible bonds is $19.45 (in dollars) which is 105.36% of the reference price. The reference price was based on one of the simple arithmetic average of the closing prices of FICG’s common shares on the Taiwan Stock Exchange for one business day, three business days and five business days before the effective date set by FICG. The conversion price of the bonds is subject to adjustments if the condition of the anti-dilution provisions occurs subsequently. The conversion price will be reset based on the pricing model specified in the terms of the bonds on each effective date regulated by the terms. The conversion price is $18.87 (in dollars) on December 31, 2025.

(f) Put options:

The bondholders have the right to require FICG to redeem the first convertible bonds at the price of the bonds’ face value plus 1.0025% of the face value as interests upon two years from the issue date (September 10, 2023).

(g) Call options:

FICG may repurchase the first convertible bonds in advance after the following events occur:

i. The closing price of FICG common shares is above the then conversion price by 30% for 30 consecutive trading days during the period from the date after three months of the bonds issue to 40 days before the maturity date.

ii. FICG may repurchase all the bonds outstanding in cash at the bonds’ face value at any time after the outstanding balance of the bonds is less than 10% of total initial issue amount during the period from the date after three months of the bonds issue to 40 days before the maturity date.

B. From January 1, 2024 to September 10, 2024, the first convertible bonds totalling $34,200 had been converted into 1,813 thousand shares of common stock.

C. Regarding the issuance of convertible bonds, the equity conversion options amounting to $38,198 were separated from the liability component and were recognized in ‘capital surplus - share options’ in accordance with IAS 32. The call options and put options embedded in bonds payable were separated from their host contracts and were recognized in ‘financial assets at fair value through profit or loss’ in net amount in accordance with IFRS 9 because the economic characteristics and risks of the embedded derivatives were not closely related to those of the host contracts. The effective interest rate of the bonds payable after such separation was 1.77%.

~57~

D. The convertible bonds had expired on September 10, 2024, and the face value totaling $699,900 had been converted into 36,142 thousand shares of common stock. Due to the conversion, capital surplus of $347,347 was incurred and capital surplus - share options decreased by $38,193. The Company had repaid the unconverted bonds totaling $100 (face value) and transferred expired conversion options of $5 to other capital surplus simultaneously.

The Group obtained approval from the competent authority to issue the second domestic unsecured convertible bonds (referred herein as the ‘second convertible bonds’) for a total issue amount of $600,000 based on 101% of the face value.

A. The issuance terms are as follows:

(a) Issuance period: 3 years (May 31, 2023 to May 31, 2026)
(b) Coupon rate: 0% fixed per annum
(c) Repayment term:

The second convertible bonds will be redeemed in cash at face value at the maturity date by the Company, except for those which had been repurchased in advance and repurchased and retired through a securities firm by FICG or the bondholders had exercised conversion of options and put options.

(d) Conversion period:

The bondholders have the right to ask FICG for conversion of the convertible bonds into common shares of FICG during the period from the date after three months of the second convertible bonds issue, except for those which had been repurchased in advance and repurchased and retired through a securities firm by FICG or the stop transfer period as specified in the laws and regulations or the consignment contract.

(e) Conversion price:

The conversion price of the second convertible bonds is $66.25 (in dollars) which is 105.13% of the reference price. The reference price was based on one of the simple arithmetic average of the closing prices of FICG’s common shares on the Taiwan Stock Exchange for one business day, three business days and five business days before the effective date set by FICG. The conversion price of the bonds is subject to adjustments if the condition of the anti-dilution provisions occurs subsequently. The conversion price will be reset based on the pricing model specified in the terms of the bonds on each effective date regulated by the terms. The conversion price is $63.96 (in dollars) on December 31, 2025.

(f) Put options:

The bondholders have the right to require FICG to redeem the second convertible bonds at the price of the bonds’ face value plus 2.01% of the face value as interests upon two years from the issue date (May 31, 2025).

(g) Call options:

FICG may repurchase the second convertible bonds in advance after the following events occur:

~58~

ii. FICG may repurchase all the bonds outstanding in cash at the bonds' face value at any time after the outstanding balance of the bonds is less than 10% of total initial issue amount during the period from the date after three months of the bonds issue to 40 days before the maturity date.

B. On May 31, 2025, the bondholders required the Company to redeem the second convertible bonds at the price of the bonds' face value plus 2.01% of the face value as interests. The bonds' face value amounted to $568,300 and the settlement resulted in a loss of $10,627, which was recognised in other gains and losses in the statement of comprehensive income.

C. The second convertible bonds totalling $1,000 (face value) had been converted into 16 thousand shares of common stock. As of December 31, 2025, the second convertible bonds totalling $3,600 had been converted into 56 thousand shares of common stock.

D. Regarding the issuance of convertible bonds, the equity conversion options amounting to $33,711 were separated from the liability component and were recognized in 'capital surplus - share options' in accordance with IAS 32. The call options and put options embedded in bonds payable were separated from their host contracts and were recognized in 'financial assets at fair value through profit or loss' in net amount in accordance with IFRS 9 because the economic characteristics and risks of the embedded derivatives were not closely related to those of the host contracts. The effective interest rate of the bonds payable after such separation was 2.09%.

(15) Long-term borrowings

Type of borrowings	Interest rate range	Collateral	December 31, 2025
Long-term bank borrowings
Unsecured borrowings	2.80%	None	$ 70,868
Less: Current portion			( 14,173)
			$ 56,695

A. The Group entered into a loan facility agreement with a credit line of RMB 36,000 thousand. The facility term is from January 2025 to January 2027. A grace period applies from January 2025 to January 2026, only interest is payable in that period. Thereafter, principal is repaid in semi-annual instalments, with interest paid together with each instalment. The aforementioned agreement is a project loan agreement for the acquisition of property, plant and equipment.

B. As of December 31, 2024, the Group did not have any long-term borrowings.

(16) Pensions

A. (a) The Company and its domestic subsidiaries have a defined benefit pension plan in accordance with the Labor Standards Act, covering all regular employees' service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law.

Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company and its domestic subsidiaries contribute monthly an amount equal to $2\% \sim 10\%$ of the employees' monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company and its domestic subsidiaries would assess the balance in the aforementioned labor pension reserve account by the end of December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company and its domestic subsidiaries will make contributions for the deficit by next March.

(b) The amounts recognized in the balance sheet are as follows:

	December 31, 2025	December 31, 2024
Present value of defined benefit obligations	($ 79,193)	($ 78,719)
Fair value of plan assets	87,366	85,193
Net defined benefit assets	$ 8,173	$ 6,474

	2025
	Present value of defined benefit obligations	Fair value of plan assets	Net defined benefit liability
At January 1	($ 78,719)	$ 85,193	$ 6,474
Current service cost	( 411)	-	( 411)
Interest (expense) income	( 1,257)	1,376	119
	( 80,387)	86,569	6,182
Remeasurements:
Return on plan assets (excluding amounts included in interest income or expense)	-	6,217	6,217
Change in financial assumptions	( 1,726)	-	( 1,726)
Experience adjustments	( 2,953)	-	( 2,953)
	( 4,679)	6,217	1,538
Pension fund contribution	-	453	453
Paid pension	5,873	( 5,873)	-
At December 31	($ 79,193)	$ 87,366	$ 8,173

	2024
	Present value of defined benefit obligations	Fair value of plan assets	Net defined benefit liability
At January 1	($ 87,324)	$ 87,227	($ 97)
Current service cost	( 433)	-	( 433)
Interest (expense) income	( 1,113)	1,060	( 53)
Gain (loss) on settlement	-	( 964)	( 964)
	( 88,870)	87,323	( 1,547)
Remeasurements:
Return on plan assets (excluding amounts included in interest income or expense)	-	7,582	7,582
Change in financial assumptions	2,560	-	2,560
Experience adjustments	( 937)	1,607	670
	1,623	9,189	10,812
Pension withdrawal	-	( 3,326)	( 3,326)
Pension fund contribution	-	535	535
Paid pension	8,528	( 8,528)	-
At December 31	($ 78,719)	$ 85,193	$ 6,474

(d) The Bank of Taiwan was commissioned to manage the Fund of the Company's and domestic subsidiaries' defined benefit pension plan in accordance with the Fund's annual investment and utilisation plan and the "Regulations for Revenues, Expenditures, Safeguard and Utilisation of the Labor Retirement Fund" (Article 6: The scope of utilisation for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitisation products, etc.). With regard to the utilisation of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorized by the Regulator. The Company and domestic subsidiaries have no right to participate in managing and operating that fund and hence the Company and domestic subsidiaries are unable to disclose the classification of plan assets fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2025 and 2024 is given in the Annual Labor Retirement Fund Utilisation Report announced by the government.

(e) The principal actuarial assumptions used were as follows:

	Year ended December 31
	2025	2024
Discount rate	1.25% ~1.50%	1.50% ~1.625%
Future salary increases	2.00% ~2.50%	2.0%~2.5%

Assumptions regarding future mortality experience are set based on the $6^{\text{th}}$ Taiwan Standard Ordinary Experience Mortality Table.

Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

	Discount rate		Future salary increases
	Increase 0.25%	Decrease 0.25%	Increase 0.25%	Decrease 0.25%
December 31, 2025
Effect on present value of defined benefit obligation	$ 1,696	($ 1,751)	($ 1,709)	$ 1,664
December 31, 2024
Effect on present value of defined benefit obligation	$ 1,764	($ 1,822)	($ 1,780)	$ 1,732

The sensitivity analysis above is based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analysing sensitivity and the method of calculating net pension liability in the balance sheet are the same.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous period.

(f) Expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2026 amount to $453.
(g) As of December 31, 2025, the weighted average duration of the retirement plan is $7.7\sim 14$ years.

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

(b) The Company's mainland China subsidiaries have a defined contribution plan. Monthly contributions to an independent fund administered by the government in accordance with the pension regulations in the People's Republic of China (PRC) are based on certain percentage of employees' monthly salaries and wages. Other than the monthly contributions, the Group has no further obligations.

(c) Certain German and US subsidiaries have established an individual pension plan sponsored by the Company. The Company and employees are cooperatively liable for the contributions of retirement funds for each participating employee. The Company contributes based on 9.3% and 5% of the employees' total salaries, respectively.

(d) The pension costs under the defined contribution pension plan of the Group for the years ended December 31, 2025 and 2024 were $233,718 and $184,306, respectively.

(17) Share-based payment

A. For the years ended December 31, 2025 and 2024, FICG's share-based payment arrangements were as follows:

Type of arrangement	Grant date	Quantity granted (in thousands)	Vesting conditions
Restricted stocks to employees	2023.07.06	3,993	Note 1
Restricted stocks to employees	2025.12.01	702	Note 2
Cash capital increase reserved for employee preemption	2024.04.12	831	Vested immediately

Note 1: Employees who have served for three years can obtain 60% of the quantity granted; employees who have served for five years, the cumulative vested share ratio will be 100%. The shares cannot be transferred during the vesting period, and the remaining rights are the same as those of ordinary shares. In addition, the vested shares cannot be transferred within one year after the initial public offering of the company.

Note 2: Employees who have served for one year will be vested at 30%; employees who have served for two years will be vested at 60%; and employees who have served for three years will be cumulatively 100% vested. The shares cannot be transferred during the vesting period, and the remaining rights are the same as those of ordinary shares. In addition, the vested shares cannot be transferred within one year after the initial public offering of the company.

~63~

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

Entity	Type of arrangement	Grant date	Share price (in dollars)	Exercise price (in dollars)	Expected price volatility	Expected option life	Risk-free interest rate	Fair value per unit (in dollars)
Prime GZ	Restricted stocks to employees	2023.07.06	RMB 7.33	RMB 4.7	-	-	-	RMB 2.37
Prime GZ	Restricted stocks to employees	2025.12.01	RMB 7.33	RMB 4.7	-	-	-	RMB 2.37
Ubiqconn	Cash capital increase reserved for employee preemption	2024.4.12	NTD 96.8	NTD 65	48.59% (Note)	0.07 year	1.22%	NTD 31.8579

Note: Expected price volatility rate was estimated by using the Company's daily historical stock price volatility in the last three months before the grant date.

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

	Year ended December 31
	2025	2024
Equity-settled	$ 7,974	$ 39,870

(18) Share capital

A. As of December 31, 2025, the Company's authorized capital was $25,000,000 and the paid-in capital was $2,365,422 with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected.

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

	2025	2024
At January 1	236,527	234,676
Conversion of convertible bonds	16	1,851
At December 31	236,543	236,527

B. For the year ended December 31, 2025, the Company converted convertible bonds totalling $1,000 into 16 thousand shares of common stock. The registration procedure was in progress.

C. For the year ended December 31, 2024, the Company converted convertible bonds totalling $36,700 into 1,851 thousand shares of common stock. The registration procedure was completed.

D. 21,000 thousand shares of the share capital issued as of December 31, 2025 and 2024 were private placement marketable securities that the Company conducted in 2007. The transfer of such marketable securities shall be restricted by Article 43-8 of the Securities and Exchange Act. After three full years have elapsed since the delivery date, a letter of approval issued by the Taiwan Stock Exchange that meets the listing standards must be obtained before applying to the Securities and Futures Bureau of the Financial Supervisory Commission for supplemental public issuance.

(19) Capital surplus

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

	2025
	Share premium	Difference between consideration and carrying amount of subsidiaries acquired or disposed	Changes in ownership interests in subsidiaries	Net change in equity of associates	Options	Other	Total
At January 1	$ 785,733	$ 194,508	$ 567,134	$ 58,222	$ 33,565	$ 438	$ 1,639,600
Changes in ownership interests in subsidiaries	-	-	6,840	-	-	-	6,840
Conversion of convertible bonds	890	-	-	-	( 56)	-	834
Redemption of convertible bonds	-	-	-	-	( 31,930)	31,930	-
Changes in equity of associates and joint ventures accounted for using equity method	-	-	-	34,653	-	-	34,653
At December 31	$ 786,623	$ 194,508	$ 573,974	$ 92,875	$ 1,579	$32,368	$ 1,681,927

2024

	Share premium	Difference between consideration and carrying amount of subsidiaries acquired or disposed	Changes in ownership interests in subsidiaries	Net change in equity of associates	Options	Other	Total
At January 1	$ 765,693	$ 194,508	$ 80,941	$ 13,036	$ 35,577	$ 433	$ 1,090,188
Changes in ownership interests in subsidiaries	-	-	486,193	-	-	-	486,193
Conversion/Redemption of convertible bonds	20,040	-	-	-	( 2,012)	5	18,033
Changes in equity of associates and joint ventures accounted for using equity method	-	-	-	45,186	-	-	45,186
At December 31	$ 785,733	$ 194,508	$ 567,134	$ 58,222	$ 33,565	$ 438	$ 1,639,600

(20) Retained earnings

A. Under FICG's Articles of Incorporation, the current year's earnings, if any, shall first be used to pay all taxes and offset prior years' operating losses and then 10% of the remaining amount shall be set aside as legal reserve until the legal reserve equals the paid-in capital. After that, special reserve shall be set aside or reverse in accordance with Article 41 of Securities and Exchange Act. The remainder, if any, along with accumulated undistributed earnings shall be proposed by the Board of Directors and resolved by the shareholders.

B. In order to take the capital needs into account, strengthen the financial structure and appropriately meet the shareholders' demand for cash inflow, the Company may distribute earnings in cash or stock dividends, of which the cash shall be no less than 1% of the total distributed dividends.

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

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

E. The appropriations of 2024 earnings as resolved by the shareholders on May 28, 2025, and the appropriations of 2023 earnings as resolved by the shareholders on June 6, 2024, are as follows:

	Year ended December 31
	2024		2023
	Amount	Dividend per share (in dollars)	Amount	Dividend per share (in dollars)
Legal reserve	$ 3,558		$ 33,209
(Reversal of) special reserve	(85,212)		47,662
Cash dividends	47,305	$ 0.20	164,300	$ 0.70

F. The appropriations of FICG's 2025 earnings as resolved by the Board of Directors on March 27, 2026 are as follows:

	Year ended December 31, 2025
	Amount	Dividend per share (in dollars)
Reversal of special reserve	($ 80,386)
Cash dividends	47,308	$ 0.20

The appropriations of 2025 earnings have not yet been resolved by the shareholders.

G. Information regarding the profit distribution resolutions approved by the Company's shareholders' meetings is available on the Market Observation Post System.

(21) Operating revenue

	Year ended December 31
	2025	2024
Revenue from contracts with customers	$ 9,721,668	$ 12,971,971
Revenue from leasing real estate	111,530	129,776
	$ 9,833,198	$ 13,101,747

A. Disaggregation of revenue from contracts with customers

The Group derives revenue from the transfer of goods and services over time and at a point in time in the following major product lines:

Year ended December 31, 2025	Sales revenue	Service revenue	Total
Revenue from external customer contracts	$ 9,500,934	$ 220,734	$ 9,721,668
Timing of revenue recognition
At a point in time	$ 9,500,934	$ 38,686	$ 9,539,620
Over time	-	182,048	182,048
	$ 9,500,934	$ 220,734	$ 9,721,668
Year ended December 31, 2024	Sales revenue	Service revenue	Total
Revenue from external customer contracts	$ 12,822,902	$ 149,069	$ 12,971,971
Timing of revenue recognition
At a point in time	$ 12,822,902	$ 9,658	$ 12,832,560
Over time	-	139,411	139,411
	$ 12,822,902	$ 149,069	$ 12,971,971

B. Contract assets and liabilities

(a) The Group has recognized the following revenue-related contract assets and liabilities:

	December 31, 2025	December 31, 2024	January 1, 2024
Contract assets:
Contract assets – Service contract	$ 7,888	$ 11,149	$ 5,487
Contract liabilities:
Contract liabilities – Sales contract	$ 161,827	$ 174,233	$ 266,978
Service contract	50,453	57,444	17,748
	$ 212,280	$ 231,677	$ 284,726

(b) Revenue recognized that was included in the contract liability balance at the beginning of the year:

	Year ended December 31
	2025	2024
Revenue recognized that was included in the contract liability balance at the beginning of the year
Sales contracts	$ 109,167	$ 219,154
Service contracts	55,199	14,268
	$ 164,366	$ 233,422

C. Revenue from leasing real estate for the years ended December 31, 2025 and 2024 are provided in Note 6(10).

(22) Interest income

	Year ended December 31
	2025	2024
Interest income from bank deposits	$ 39,270	$ 58,171
Other interest income	12,990	1,987
	$ 52,260	$ 60,158

(23) Other income

	Year ended December 31
	2025	2024
Rental revenue (Note 1)	$ 11,199	$ 7,955
Dividend income	874	1,016
Gains on write-off of past due payable	223	1,069
Gain recognised in bargain purchase transaction (Note 2)	214,955	-
Other income	31,390	32,474
	$ 258,641	$ 42,514

Note 1: Rental income for the years ended December 31, 2025 and 2024 are provided in Note 6(10).

Note 2: Refer to Note 6(30) for details of gain recognised in bargain purchase for the year ended December 31, 2025.

(24) Other gains and losses

	Year ended December 31
	2025	2024
Gains on disposals of property, plant and equipment	$ 2,610	$ 1,292
Gains on disposal of investments (Note 1)	1,401	-
(Losses) gains on lease modification	( 6,110)	748
Net currency exchange (losses) gains	( 96,782)	125,104
Net gains (losses) on financial assets and liabilities at fair value through profit or loss	4,406	( 5,710)
Grant revenue (Note 1)	18,701	59,277
Gains on financial liabilities at amortised cost (Note 2)	3,638	-
Impairment loss on financial assets (Note 3)	( 60,602)	( 111,215)
Losses on debt repayment (Note 4)	( 10,627)	-
Losses on provision for litigation (Note 5)	( 147,609)	-
Other losses	( 3,815)	( 6,289)
	($ 294,789)	$ 63,207

Note 1: The grant revenue arose from government subsidies for vocational training and value growth. The grant revenue which is related to property, plant and equipment is recognized on a straight-line basis over their estimated useful life.

Note 2: Gains on financial liabilities at amortized cost pertained to the early redemption of liabilities, which arose from the acquisition of Guan Zhi Holdings Limited, Refer to Note 6(30) for details. In December 2025, the Company and FIC, Inc. agreed with the holders of the remaining 14.9% interest that the Company would repurchase the remaining interests in advance on behalf of FIC, Inc. The effective settlement date was set on January 1, 2026.

Note 3: The impairment losses on investments accounted for using the equity method of the Group for the years ended December 31, 2025 and 2024 were $48,631 and $9,118, respectively. Refer to Note 6(7) for details. In addition, for the years ended 2025 and 2024, the Company recognized impairment losses on financial assets of $11,971 and $102,097, respectively. Refer to Note 11.c for details in the consolidated financial statements for the year ended 2024.

Note 4: Refer to Note 6(14) for details of losses on debt repayment for the year ended December 31, 2025.

Note 5: Refer to Note 9(a) for details of losses on provision for litigation for the year ended December 31, 2025.

(25) Finance costs

	Year ended December 31
	2025	2024
Interest expense	$ 12,694	$ 4,163
Lease liabilities	19,562	18,228
Bonds payable	5,374	12,251
Others	45	41
	$ 37,675	$ 34,683

(26) Employee benefit expense and expenses by nature

	Year ended December 31
	2025	2024
Employee stock options	$ 7,974	$ 39,870
Short-term employee benefits	2,951,001	2,621,439
Post-employment benefits	234,010	185,756
Depreciation	568,370	529,501
Amortization	14,854	12,395

A. In accordance with the Articles of Incorporation of the Company, a ratio of distributable profit of the current year, if any, shall be distributed as employees 'compensation and directors' remuneration. The ratio shall be 2%~10% for employees' compensation and at least 30% of the total employee compensation is allocated to non-management employees, including those of subsidiaries who satisfy certain eligibility requirements. The ratio shall not be higher than 1.5% for directors' remuneration. However, if the Company has accumulated deficit, earnings shall be first reserved to cover accumulated losses.

B. Employees' compensation and directors' remuneration of the Company were accrued as follows:

	Year ended December 31
	2025	2024
Employees' compensation	$ -	$ 1,008
Directors' remuneration	-	67
	$ -	$ 1,075

The company reported a pre-tax loss in fiscal year 2025, so no employee or director compensation was estimated. The employees' compensation and directors' remuneration were accrued based on 3% and 0.2% of distributable profit of current year for the year ended December 31, 2024.

The employees' compensation and directors' remuneration for 2024, as resolved by the Board of Directors on March 28, 2025, amounted to $1,008 and $67, respectively. These amounts were consistent with those recognized in the 2024 financial statements. The employees' compensation will be distributed in cash.

For 2023, the employees' compensation and directors' remuneration as resolved by the Board of Directors amounted to $14,222 and $1,422, respectively. The difference of $4,266 between the amounts resolved by the Board of Directors and the amounts recognized in the 2023 financial statements, due to changes in accounting estimates, will be adjusted in the profit or loss for 2024.

The above employees' compensation in 2024 and 2023 includes employees of subsidiaries who meet certain conditions.

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

(27) Income taxes

A. Income tax expense

	Year ended December 31
	2025	2024
Current tax:
Current tax on profits for the year	$ 58,017	$ 81,138
Tax on undistributed surplus earnings	3,496	8,385
Prior year income tax over estimation	( 7,773)	( 27,534)
Total current tax	53,740	61,989
Deferred tax:
Origination and reversal of temporary differences	48,421	3,404
Total deferred tax	48,421	3,404
Income tax expense	$ 102,161	$ 65,393

B. Reconciliation between income tax expense and accounting profit

	Year ended December 31
	2025	2024
Income tax calculated by applying statutory rate to the (loss) profit before tax	($ 13,868)	$ 38,655
Expenses disallowed by tax regulation	62,952	63,888
Tax exempt income by tax regulation	( 8,762)	( 12,072)
Temporary differences not recognized as deferred tax assets	79,083	34,937
Temporary differences not recognized as deferred tax liabilities	( 4,272)	( 31,020)
Tax losses not recognized as deferred tax assets	15,345	42,039
Effect from investment tax credits	( 7,295)	( 44,548)
Change in assessment of realization of deferred tax assets	( 16,745)	( 7,337)
Prior year income tax over estimation	( 7,773)	( 27,534)
Tax on undistributed surplus earnings	3,496	8,385
Income tax expense	$ 102,161	$ 65,393

C. Amounts of deferred tax assets or liabilities as a result of temporary differences and tax losses are as follows:

	2025
	January 1	Recognized in profit or loss	Translation differences	Business combination	December 31
Deferred tax assets:
Temporary differences:
Loss on inventories	$ 50,415	($ 337)	($ 121)	$ -	$ 49,957
Unrealised exchange loss	1,661	( 1,366)	( 39)	-	256
Book-tax differences of rights-of-use assets	89,347	( 24,722)	( 689)	-	63,936
Others	13,007	( 3,116)	( 91)	-	9,800
Taxable loss	26,122	( 6,528)	-	-	19,594
	$ 180,552	($ 36,069)	($ 940)	$ -	$ 143,543
Deferred tax liabilities:
Temporary differences:
Unrealised exchange gain	( 23,254)	9,701	242	-	( 13,311)
Book-tax differences of lease liabilities	( 86,354)	25,804	709	-	( 59,841)
Difference in depreciation between tax and accounting	-	1,233	( 1,725)	( 23,852)	( 24,344)
Others	( 428)	( 49,090)	( 12)	( 194)	( 49,724)
	($ 110,036)	($ 12,352)	($ 786)	($ 24,046)	($ 147,220)
	$ 70,516	($ 48,421)	($ 1,726)	($ 24,046)	($ 3,677)

~75~

	2024
	January 1	Recognized in profit or loss	Translation differences	December 31
Deferred tax assets:
Temporary differences:
Loss on inventories	$ 64,145	($ 15,091)	$ 1,361	$ 50,415
Unrealised exchange loss	3,929	( 2,364)	96	1,661
Book-tax differences of rights-of-use assets	73,777	12,955	2,615	89,347
Others	9,836	3,020	151	13,007
Taxable loss	6,314	19,808	-	26,122
	$ 158,001	$ 18,328	$ 4,223	$ 180,552
Deferred tax liabilities:
Temporary differences:
Unrealised exchange gain	( 12,936)	( 9,849)	( 469)	( 23,254)
Book-tax differences of lease liabilities	( 71,712)	( 12,102)	( 2,540)	( 86,354)
Others	( 637)	219	( 10)	( 428)
	($ 85,285)	($ 21,732)	($ 3,019)	($ 110,036)
	$ 72,716	($ 3,404)	$ 1,204	$ 70,516

D. The Group’s Expiration dates of unused tax losses and amounts of unrecognized deferred tax assets domestically are as follows:

December 31, 2025
Year incurred	Amount filed/ assessed	Unused amount	Unrecognized deferred tax assets	Expiry year
2017	$ 1,933,258	$ 1,844,036	$ 1,844,036	2027
2018	46,637	41,652	41,652	2028
2019	41,301	29,346	29,346	2029
2020	86,197	68,480	68,480	2030
2021	56,036	55,082	54,737	2031
2022	339,619	336,876	318,338	2032
2023	71,523	70,312	70,312	2033
2024	226,092	225,100	127,361	2034
2025	41,214	40,816	40,583	2035

December 31, 2024

Year incurred	Amount filed/ assessed	Unused amount	Unrecognized deferred tax assets	Expiry year
2017	$ 1,933,258	$ 1,844,036	$ 1,844,036	2027
2018	46,637	41,652	41,652	2028
2019	41,301	29,346	29,346	2029
2020	86,197	68,480	68,480	2030
2021	56,036	55,082	54,737	2031
2022	339,619	336,876	318,338	2032
2023	72,145	70,859	58,349	2033
2024	223,150	222,158	124,419	2034

E. The amounts of deductible temporary differences that were not recognized as deferred tax assets are as follows:

Deductible temporary differences	December 31, 2025	December 31, 2024
	$ 3,314,989	$ 3,036,878

F. The Company has not recognized taxable temporary differences associated with investment in subsidiaries as deferred tax liabilities. As of December 31, 2025 and 2024, the amounts of temporary differences unrecognized as deferred tax liabilities were $21,360 and $155,098, respectively.

G. The Company's and domestic subsidiaries' income tax returns which were assessed and approved by the Tax Authority are as follows:

The company	Assessed year
FICG	2023
FIC	2023
FICTA	2023
Ubiqconn	2023
Ruggon	2023

(28) Earnings (loss) per share

	Year ended December 31, 2025
	Amount after tax	Weighted average number of ordinary shares outstanding (shares in thousands)	Loss per share (in dollars)
Basic loss per share
Loss attributable to ordinary shareholders of the parent	($ 88,869)	236,528	($ 0.38)
	Year ended December 31, 2024
	Amount after tax	Weighted average number of ordinary shares outstanding (shares in thousands)	Earnings per share (in dollars)
Basic earnings per share
Profit attributable to ordinary shareholders of the parent	$ 26,327	235,459	$ 0.11
Diluted earnings per share
Profit attributable to ordinary shareholders of the parent	$ 26,327	235,459
Employees’ compensation	-	84
Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	$ 26,327	235,543	$ 0.11

Note: For the year ended December 31, 2024, the Company’s convertible bonds had anti-dilutive effect, thus, they were not included in the calculation of diluted earnings per share.

(29) Transactions with non-controlling interest

A. Acquisition of additional interest in a subsidiary

In December 2024, the Group’s subsidiary, 3CEMS Corporation, acquired an additional 40.59% of its own shares for a total consideration of $1,927,443. The carrying amount of non-controlling interest in 3CEMS Corporation was $2,078,979 at the acquisition date. This transaction resulted in a decrease in the non-controlling interest by $2,020,414 and an increase in the equity attributable to owners of the parent by $92,971. The effect of changes in interests in 3CEMS Corporation on the equity attributable to owners of the parent for the year ended December 31, 2024 is shown below:

	Year ended December 31, 2024
Consideration paid to non-controlling interests	($ 1,927,443)
Carrying amount of non-controlling interests acquired	2,020,414
Capital surplus	$ 92,971

B. The Group did not participate in the capital increase raised by a subsidiary proportionally to its interest to the subsidiary

(a) In May 2024, the Group’s subsidiary, Ubiqconn Technology, Inc., issued 11,000 thousand shares of common stock, with a par value of $10 (in NTD) per share. Total issuance price is $871,463.

As the Group did not acquire shares proportionately to its interest, the comprehensive shareholding ratio decreased from 64% to 56%. This transaction resulted in a decrease in the non-controlling interest by $405,535 and an increase in the equity attributable to owners of the parent by $405,535.

(b) In August 2024, the Group’s subsidiary, Fic Turn Power Inc. increased its cash capital by issuing new shares amounting to 1,020 thousand common stocks with a par value of NT$10 (in NTD) per share, and the capital increase amounted to $10,200. As the Group did not acquire shares proportionately to its interest, the comprehensive shareholding ratio decreased from 51.02% to 51%. This transaction resulted in a decrease in the non-controlling interest by $2 and an increase in the equity attributable to owners of the parent by $2.

The effects of changes in interests on the equity attributable to owners of the parent for the year ended December 31, 2025 and 2024 is shown below:

	Year ended December 31, 2024
Cash	$ 876,463
Increase in the carrying amount of non-controlling interest	( 470,926)
Increase in capital surplus	$ 405,537

C. The Group did not conduct any transaction with non-controlling interest in 2025.

~78~

(30) Business combinations

A. Acquisition of Guan Zhi Holdings Limited

(a) To broaden the business scope, the Group’s subsidiary, FIC, Inc. proposed to strategically invest in the research and development, manufacturing, and sales of touch screen products to develop the Group’s markets in Japan and the U.S. Accordingly, FIC, Inc. acquired an 85.1% equity interest in Guan Zhi Holdings Limited (“Guan Zhi Holdings”) and obtained control over the entity on January 1, 2025. The seller strategically adjusted management resource allocation and Guan Zhi Holdings was not the core business to the seller’s group and did not reach the required performance for years. Accordingly, the consideration was set at US$1, resulting in gain recognised in bargain purchase transactions of $214,955 (shown as ‘other income’). The calculation method of acquisition price was agreed in the acquisition agreement for acquiring the remaining 14.9% equity interest after two years. Based on the contractual terms, the shareholders are not exposed to the risks and rewards arising from changes in the value of the invested equity; accordingly, the 14.9% interest was not recognised as non-controlling interests on the acquisition date. Instead, the related consideration was recognised at its present value as redemption liabilities (shown as ‘other non-current liabilities’)

(b) The following table summarizes the consideration paid for Guan Zhi Holdings Limited and the fair values of the assets acquired and liabilities assumed at the acquisition date:

	January 1, 2025
Purchase consideration
Cash	$ -
Fair value of identifiable assets acquired and liabilities assumed
Cash	103,337
Notes and Accounts receivable	192,103
Inventories	147,058
Property, plant and equipment	24,197
Other current and non-current assets	8,115
Accounts payable	( 189,442)
Other payables	( 42,943)
Other current and non-current liabilities	( 20,679)
Redemption liability (recognized under
Other non-current liabilities – other)	( 6,791)
Total fair value of net identifiable assets	214,955
Gain recognised in bargain purchase transaction	($ 214,955)

~79~

B. Acquisition of E3 Displays, LLC

(a) On March 12, 2025, the Group’s Board of Directors resolved to acquire all shares of E3 Displays, LLC through the newly established U.S. subsidiary, Ubiqconn Technology Holding Inc., with a total transaction amount of $184,438 (US$6,294 thousand), and the Group obtained the control over E3 Displays, LLC on July 1, 2025. The company is primarily engaged in manufacturing of touchscreens and provision of display optical bonding and design services. As a result of the acquisition, the Group is expected to strengthen the vertical integration capabilities in the rugged computer market and accelerate the expansion in the U.S. market.

(b) The following table summarises the consideration paid for E3 Displays, LLC and the fair values of the assets acquired and liabilities assumed at the acquisition date:

	July 1,2025
Purchase consideration
Cash	$ 184,438
Fair value of identifiable assets acquired and liabilities assumed
Cash	297
Notes and Accounts receivable	24,913
Inventories	28,775
Property, plant and equipment	8,054
Right-of-use assets	30,792
Intangible assets	92,002
Other current and non-current assets	7,472
Accounts payable	( 11,793)
Other payables	( 6,188)
Lease liabilities	( 33,033)
Bank loan	( 7,179)
Other current and non-current liabilities	( 368)
Deferred tax liabilities	( 24,046)
Total fair value of net identifiable assets	109,698
Goodwill	$ 74,740

(c) The operating revenue included in the consolidated statement of comprehensive income since July 1, 2025 contributed by E3 Displays, LLC was $107,548. E3 Displays, LLC also contributed loss before income tax of $22,046 over the same period. Had E3 Displays, LLC been consolidated from January 1, 2025, the consolidated statement of comprehensive income would show operating revenue of $9,940,706 and loss before income tax of ($67,847).

(31) Supplemental cash flow information

A. Investing activities with partial cash payments

	Year ended December 31
	2025	2024
Purchase of property, plant and equipment	$ 520,433	$ 471,375
Add: Opening balance of payable on equipment (including related parties)	23,138	47,456
Add: Increase in prepayments for equipment (Note)	241,360	-
Less: Ending balance of payable on equipment	( 202,055)	( 23,138)
Cash paid during the year	$ 582,876	$ 495,693

Note: Prepayments for equipment are presented under other non-current assets, part of which was transferred to property, plant and equipment during the current period.

B. Financing activities with no cash flow effects

	Year ended December 31
	2025	2024
Convertible bonds being converted to capital stocks	$ 990	$ 36,541

(32) Changes in liabilities from financing activities

	January 1, 2025	Cash flows	Non-cash changes		December 31, 2025
			Foreign exchange change	Others
Short-term borrowings	$ 57,767	$ 204,153	$ 5,184	$ 7,179	$ 274,283
Other payables - related parties	-	-	-	102,148	102,148
Long-term borrowings (including current portion)	-	69,298	1,570	-	70,868
Bonds payable (including current portion)	580,125	( 579,723)	-	27,457	27,859
Lease liabilities	567,894	( 292,761)	7,058	387,743	669,934
Guarantee deposits received	33,498	2,453	-	( 9,333)	26,618
Long-term accounts payable	378,185	479,288	( 87,311)	1,784,771	2,554,933
	$ 1,617,469	($ 117,292)	($ 73,499)	$2,299,965	$ 3,726,643

~82~

	January 1, 2024	Cash flows	Non-cash changes		December 31, 2024
			Foreign exchange change	Others
Short-term borrowings	$ 35,233	$ 21,238	$ 1,296	$ -	$ 57,767
Other payables - related parties	340,826	( 152,786)	20,145	( 208,185)	-
Bonds payable (including current portion)	604,495	( 100)	-	( 24,270)	580,125
Lease liabilities	542,874	( 262,573)	11,501	276,092	567,894
Guarantee deposits received	29,366	4,132	-	-	33,498
Long-term accounts payable	-	170,000	-	208,185	378,185
	$ 1,552,794	($ 220,089)	$ 32,942	$ 251,822	$ 1,617,469

7. Related Party Transactions

(1) Names of related parties and relationship

Names of related parties	Relationship with the Group
LEO Systems, Inc. (LEO Systems)	Associate
Amerwave Technology (Shenzhen) Co., Ltd. (Amerwave)	"
Geointelligence Systems, Inc. (Geointelligence)	"
Formosa21 Inc. (Formosa21)	"
Ideenion Holding Inc. (Ideenion)	"
University Venture Co., Ltd. (University Venture)	Other related party (substantial related party)
eCommunications, Inc. (eCommunications)	"
Supreme Image Limited (Supreme)	"
Lohas Biotech Development Corp. (Lohas)	"
GloryMakeup Inc. (GloryMakeup)	"
CGCH Foundation for Education (CGCHF)	"
Via Technologies, Inc. (Via)	"
Xander International Corp. (Xander)	"
Via Next Technologies, Inc. (Via Next)	"
Abundant Sustainability LTD.(Abundant)	"
Genuine Profit Limited (Genuine)	"
MING-JEH CHIEN	"
MIN-Yi CHIEN	"
King's Sports Co. Ltd. (King's Sports)	"
Chia Chao Investment Inc. (Chia Chao)	Other related party (major shareholder)
WYC God-loving Foundation for Charity (GLF)	"
Zong Jing Investment Inc. (Zong Jing)	"

(2) Significant related party transactions

A. Operating revenue

	Year ended December 31
	2025	2024
Sales of goods:
-Associates	$ 2,874	$ -
-Other related parties	127,984	218,502
	$ 130,858	$ 218,502
Service revenue:
-Associates	$ 5,640	$ 5,640
-Other related parties	9,480	22,478
	$ 15,120	$ 28,118

(a) Due to the diversity of the Group's product specifications, the specifications of the products sold to related parties may not be the same as those sold to non-related parties, thus, the sales prices cannot be compared. The terms of transactions with related parties are the same as those with non-related parties.

(b) The Group entered into consulting contracts with the above-mentioned related parties, and transaction prices and terms are made based on agreements.

B. Purchases

	Year ended December 31
	2025	2024
Purchases of goods
-Associates	$ 5,013	$ 3,470
-Other related parties	1,949	204
	$ 6,962	$ 3,674

Purchases based on the price lists in force and terms that would be available to third parties.

C. Receivables from related parties

	December 31, 2025	December 31, 2024
Accounts receivable:
-Associates	$ 515	$ 515
-Other related parties	13,997	43,184
	$ 14,512	$ 43,699
Finance lease receivable, net:
-Associates
LEO Systems	$ 7,954	$ 8,646
Formosa21	1,727	1,873
-Other related parties
GloryMakeup	2,186	2,380
Lohas	1,911	2,074
Others	560	605
	$ 14,338	$ 15,578
	December 31, 2025	December 31, 2024
Long-term finance lease receivable, net:
-Associates
LEO Systems	$ -	$ 7,567
Formosa21	-	1,643
-Other related parties
GloryMakeup	-	2,080
Lohas	-	1,818
Others	-	532
	$ -	$ 13,640
	December 31, 2025	December 31, 2024
Other receivables:
-Associates	$ 5,926	$ 3,873
-Other related parties	19	1,169
	$ 5,945	$ 5,042

Other receivables from related parties arise mainly from service receivables related to the logistics human resources.

D. Payables to related parties:

	December 31, 2025	December 31, 2024
Accounts payable:
-Associates	$ -	$ 615
-Other related parties	7,607	8,208
	$ 7,607	$ 8,823
Other payables:
-Associates	$ 63	$ 53
-Other related parties
Supreme	-	1,257,764
Genuine	-	437,351
eCommunications	21,355	9,434
Others	23	191,876
	$ 21,441	$ 1,896,478

As of December 31, 2024, other payables mainly represented amounts payable for the repurchase of treasury shares of 3CEMS Corporation.

E. Contract liability

	December 31, 2025	December 31, 2024
-Other related parties
Associates	$ 1,297	$ -
Others	2,380	648
	$ 3,677	$ 648

F. Prepayments

	December 31, 2025	December 31, 2024
-Other related parties
Via Next	$ 182,700	$ 613,874

The prepayments pertained to the amounts prepaid by the Group to related parties for purchases, while an equivalent amount has been collected from non-related parties and shown as receipts received in advance.

G. Guarantee deposits paid

	December 31, 2025	December 31, 2024
-Associates	$ 4,945	$ 2,721
-Other related parties	245	245
	$ 5,190	$ 2,966

H. Property transaction

Acquisition of property, plant and equipment

	Year ended December 31
	2025	2024
-Associates	$ 620	$ -
-Other related parties	-	91
	$ 620	$ 91

I. Loans from related parties:

Loans from related parties

	December 31, 2025	December 31, 2024
Other payables
-Other related parties
Supreme	$ 102,148	$ -
Long-term accounts payable
-Other related parties
Chia Chao	$ 676,000	$ 170,000
Supreme	1,205,781	208,185
Genuine	419,275	-
Others	253,877	-
	$ 2,554,933	$ 378,185
	Year ended December 31
---	---	---
	2025
	Interest income	Rate
Long-term accounts payable
-Other related parties
Chia Chao	$ 2,341	0.5%
Zong Jing	146	0.5%
University Venture	60	0.5%
	$ 2,547

Borrowings from Supreme, Genuine and certain other related parties incurred during the years ended 2025 and 2024 were non-interest-bearing.

J. Rent income

	Year ended December 31
	2025	2024
Associates
Amerwave	$ -	$ 2,358
LEO Systems	4,040	3,950
Others	259	251
Other related parties	769	751
	$ 5,068	$ 7,310

The rental prices of the Group and its related parties are based on the rental rates in the neighborhood, and the rent is receivable monthly.

K. Other income

	Year ended December 31
	2025	2024
-Associates	$ 10,685	$ 8,280
-Other related parties	71	66
	$ 10,756	$ 8,346

Other income is mainly from the service revenue related to the logistics human resources.

L. Operating expenses

	Year ended December 31
	2025	2024
-Associates	$ 27	$ 121
-Other related parties	73,537	59,567
	$ 73,564	$ 59,688

Operating expenses are mainly from the sales commission and miscellaneous.

(3) Key management compensation

	Year ended December 31
	2025	2024
Salaries and other short-term employee benefits	$ 74,035	$ 82,392
Post-employment benefits	2,241	1,791
	$ 76,276	$ 84,183

~88~

8. Pledged Assets

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

Pledged assets	Book value		Purpose
	December 31, 2025	December 31, 2024
Financial assets measured at amortised cost - current	$ 26,652	$ 45,718	Time deposits pledged for customs, bank borrowings, guarantee for research project and litigation provisions
Financial assets measured at amortised cost - non-current	-	10,000	Performance guarantee.
Notes receivable	150,206	140,962	Discounted notes receivable
Investment property	36,172	-	Bank borrowings
	$ 213,030	$ 196,680

9. Significant Contingent Liabilities and Unrecognized Contract Commitments

(a) Contingencies

The Company's subsidiary, FIC, Inc. ("FIC"), obtained tenders from Ministry of National Defense Republic of China in September 2018 and January 2019 (hereinafter referred to as the "First Project" and the "Second Project", respectively) and entered into procurement cooperation agreements with suppliers. On November 14, 2025, FIC received a civil complaint filed with the Taipei District Court. As the delivery of fiber cloth by the First Project supplier was made in China, the MND rescinded the agreements for breach and requested refund of the full procurement price together with punitive penalty and interest, totaling $113,488. The litigation is pending in first-instance proceedings. As the supplier is the same for both projects, the Group has recognised a provision for an estimated loss of $153,088, which was shown as provisions for liabilities – non-current.

(b) Commitments

None.

10. Significant Disaster Loss

None.

11. Significant Events after the Balance Sheet Date

A. The Company's subsidiary, 3CEMS Corp, increased capital of US$9 million as resolved by the Board of Directors and shareholders' special meeting on February 26, 2026 and March 13, 2026, respectively.

B. For appropriations of 2025 earnings as submitted by the Board of Directors on March 27, 2026, refer to Note 6(20) for details.

12. Others

(1) Capital management

The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while maximizing the return to shareholders through the optimization of the debt and equity balance.

The Group’s capital structure comprises net debt (pertaining to borrowings, net of cash and cash equivalents) and equity attributable to owners of parent (pertaining to share capital, capital surplus, retained earnings and other equity items).

(2) Financial instruments

A. Financial instruments by category

	December 31, 2025	December 31, 2024
Financial assets
Financial assets at fair value through profit or loss
Financial assets mandatorily measured at fair value through profit or loss	$ 374,525	$ 32,160
Financial assets measured at fair value through other comprehensive income
Designation of equity instrument	$ 8,776	$ 32,624
Financial assets at amortised cost
Cash and cash equivalents	$ 3,262,919	$ 2,444,233
Financial assets at amortised cost	55,448	987,150
Notes receivable	255,242	269,232
Accounts receivable	2,850,035	3,705,770
Accounts receivable-related parties	14,512	43,699
Finance lease receivable	14,338	15,578
-related parties
Other receivables	71,596	40,489
Other receivables-related parties	5,945	5,042
Long-term finance lease receivable-related parties	-	13,640
Guarantee deposits paid	101,581	62,658
	$ 6,631,616	$ 7,587,491

	December 31, 2025	December 31, 2024
Financial liabilities
Financial liabilities at fair value through profit or loss
Financial liabilities held for trading	$ -	$ 10,932
Financial liabilities at amortised cost
Short-term borrowings	$ 274,283	$ 57,767
Notes payable	307	307
Accounts payable	1,370,986	2,448,116
Accounts payable-related parties	7,607	8,823
Other payables	917,837	706,943
Other payables-related parties	123,589	1,896,478
Bond payables (including current portion)	27,859	580,125
Long-term borrowings (including current portion)	70,868	-
Long-term notes and accounts payable	2,554,933	378,185
Guarantee deposits received(shown as ‘other non-current liabilities’)	26,618	33,498
	$ 5,374,887	$ 6,110,242
Lease liabilities-current	$ 286,269	$ 252,696
Lease liabilities-non-current	383,665	315,198
	$ 669,934	$ 567,894

B. Financial risk management policies

(a) The Group's activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk.
(b) Group treasury identifies, evaluates and hedges financial risks in close cooperation with the Group's operating units.

C. Significant financial risks and degrees of financial risks

(a) Market risk

Exchange rate risk

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

ii. The Group is required to hedge its' entire foreign exchange risk exposure with Group treasury. Exchange rate risk is measured through a forecast of highly probable USD and RMB expenditures.

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

	December 31, 2025
(Foreign currency: functional currency)	Foreign currency amount (In thousands)	Exchange rate	Book value (NTD) (in thousand)
Financial assets
Monetary items
USD : NTD	$ 64,815	31.4300	$ 2,037,135
USD : RMB	128,611	31.4300	4,042,244
RMB : NTD	200	4.4960	899
RMB : USD	18,521	4.4960	83,270
Financial liabilities
Monetary items
USD : NTD	$ 63,392	31.4300	$ 1,992,411
USD : RMB	56,569	31.4300	1,777,964
RMB : USD	183,820	4.4960	826,455
	December 31, 2024
(Foreign currency: functional currency)	Foreign currency amount (In thousands)	Exchange rate	Book value (NTD) (in thousand)
Financial assets
Monetary items
USD : NTD	$ 138,621	32.7850	$ 4,544,689
USD : RMB	154,239	32.7850	5,056,726
RMB : NTD	836	4.4780	3,744
RMB : USD	555	4.4780	2,485
Financial liabilities
Monetary items
USD : NTD	$ 135,433	32.7850	$ 4,440,171
USD : RMB	101,763	32.7850	3,336,300
RMB : USD	231,486	4.4780	1,036,594

iv. The unrealized total exchange (loss) gain, including realized and unrealized, arising from significant foreign exchange variation on the monetary items held by the Group for the years ended December 31, 2025 and 2024, amounted to ($96,782) and $125,104, respectively.

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

Year ended December 31, 2025
(Foreign currency: functional currency)	Degree of variation	Effect on profit or loss	Effect on other comprehensive income
Financial assets
Monetary items
USD:NTD	1%	$ 20,371	$ -
USD:RMB	1%	40,422	-
RMB:NTD	1%	9	-
RMB:USD	1%	833	-
Financial liabilities
Monetary items
USD:NTD	1%	$ 19,924	$ -
USD:RMB	1%	17,780	-
RMB:USD	1%	8,265	-

Year ended December 31, 2024

(Foreign currency: functional currency)	Degree of variation	Effect on profit or loss	Effect on other comprehensive income
Financial assets
Monetary items
USD:NTD	1%	$ 45,447	$ -
USD:RMB	1%	50,567	-
RMB:NTD	1%	37	-
RMB:USD	1%	25	-
Financial liabilities
Monetary items
USD:NTD	1%	$ 44,402	$ -
USD:RMB	1%	33,363	-
RMB:USD	1%	10,366	-

Price risk

i. The Group’s equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group.

ii. The Group’s investments in equity securities comprise shares and open-end funds issued by the domestic companies. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 1% with all other variables held constant, post-tax profit for the years ended December 31, 2025 and 2024 would have increased/decreased by $3,745 and $322, respectively, as a result of gains/losses on equity securities classified as at fair value through profit or loss. Other components of equity would have increased/decreased by $88 and $326, respectively, because of other comprehensive income on available-for-sale equity investment and equity investment classified as at fair value through other comprehensive income.

~93~

~94~

Cash flow and fair value interest rate risk

i. The Group’s main interest rate risk arises from long-term and short-term borrowings with variable rates, which expose the Group to cash flow interest rate risk. During 2025 and 2024, the Group’s borrowings at variable rate were mainly denominated in Chinese Yuan and New Taiwan dollars.

ii. The Group’s borrowings are measured at amortized cost. The borrowings are periodically contractually repriced and to that extent are also exposed to the risk of future changes in market interest rates.

iii. If the borrowing interest rate had increased/decreased by 1% with all other variables held constant, profit after tax for the years ended December 31, 2025 and 2024 would have increased/decreased by $2,761 and $462, respectively. Changes in interest expense mainly results from floating rate borrowings.

(b) Credit risk

i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the contract cash flows of accounts receivable based on the agreed terms.

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

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

iv. The Group adopts following assumptions under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition:

If the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

v. The Group classifies customer’s accounts receivable in accordance with credit risk on trade. The Group applies the modified approach using a provision matrix based on the loss rate methodology to estimate expected credit loss.

vi. The Group wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Group will continue executing the recourse procedures to secure their rights. On December 31, 2025 and 2024, the Group had no written-off financial assets that are still under recourse procedures.

vii. The expected loss rate for well-reputed customers of group A is 0.2%. For the years ended December 31, 2025 and 2024, the total book value of accounts receivable amounted to $1,397,286 and $2,286,430, and loss allowance amounted to $2,886 and $4,430, respectively.

viii. The expected loss rate for well-reputed customers of group B is 0.2%~7%. For the years ended December 31, 2025 and 2024, the total book value of accounts receivable amounted to $42,218 and $29,492, and loss allowance amounted to $84 and $154, respectively.

ix. The Group used the forecastability of Business Indicators Database and Basel Committee on Banking Supervision to adjust historical and timely information to assess the default possibility of notes and accounts receivable (including related parties) from the fair credit condition customers of the group C and D. On December 31, 2025 and 2024, the provision matrix is as follows:

(i) Group C

December 31, 2025	Expected loss rate	Total book value	Loss allowance
Not past due	0.20%~4.80%	$ 1,518,906	$ 6,579
Up to 30 days	0.20%~14.08%	161,660	13,292
31 to 60 days	0.20%~68.29%	6,603	2,332
61 to 90 days	0.20%~100%	6,412	3,663
91 to 180 days	100%	12,258	12,258
Over 180 days	100%	11,258	11,258
		$ 1,717,097	$ 49,382
December 31, 2024	Expected loss rate	Total book value	Loss allowance
Not past due	0.20%~0.21%	$ 1,354,899	$ 1,905
Up to 30 days	0.20%~0.83%	186,710	1,072
31 to 90 days	0.20%~32.53%	7,630	1,237
61 to 90 days	0.20%~100%	493	14
91 to 180 days	100%	11,317	11,317
Over 180 days	100%	9,944	9,944
		$ 1,570,993	$ 25,489

(ii) Group D

December 31, 2025	Expected loss rate	Total book value	Loss allowance
Not past due	0.20%	$ 15,467	$ 31
Up to 30 days	0.20%	104	-
31 to 60 days	0.20%	-	-
61 to 90 days	0.20%	-	-
91 to 180 days	100%	-	-
Over 180 days	100%	-	-
		$ 15,571	$ 31
December 31, 2024	Expected loss rate	Total book value	Loss allowance
Not past due	0.2%	$ 60,232	$ 120
Up to 30 days	0.2%	91,718	183
31 to 90 days	0.2%	10,233	21
61 to 90 days	0.2%	-	-
91 to 180 days	100%	-	-
Over 180 days	100%	-	-
		$ 162,183	$ 324

x. Movements in relation to the Group applying the modified approach to provide loss allowance for notes and accounts receivable (including related parties) are as follows:

	2025
	Notes and accounts receivable (including related parties)
At January 1	$	30,397
Provision for impairment		17,872
Write-offs	(	2,112)
Effect of foreign exchange		487
Acquisition from business combination		5,739
At December 31	$	52,383
	2024
	Notes and accounts receivable (including related parties)
At January 1	$	64,688
Reversal of impairment	(	18,924)
Write-offs	(	17,227)
Effect of foreign exchange		1,860
At December 31	$	30,397

For provisioned loss in 2025 and 2024, the (provision for) reversal of impairment loss arising from customers' contracts are ($17,872) and $18,924, respectively.

xi. The financial assets at amortized cost and other financial assets held by the Group are the bank deposits and restricted bank deposits with maturity term of over three months, and no material issues of credit rating levels were incurred. Further, there was no material expected credit loss.

xii. The carrying amount of other receivables on December 31, 2025 and 2024 after the recoverability assessment were $112,052 and $80,973, $40,489 and $27,165, respectively.

xiii. The contract asset and credit risk rating has no significant abnormal situation. There are no significant expected credit losses.

i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group treasury. Group treasury monitors rolling forecasts of the Group's liquidity requirements to ensure it has sufficient cash to meet operational needs.

ii. The table below analyses the Group's non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

~97~

December 31, 2025	Less than 1 year	Between 1 and 5 years	Over 5 years
Non-derivative financial liabilities
Short-term borrowings	$274,283	$-	$-
Notes payable	307	-	-
Accounts payable (including related parties)	1,378,593	-	-
Other payables (including related parties)	1,041,426	-	-
Bonds payable (including current portion)	28,100	-	-
Lease liabilities	298,276	290,104	163,916
Long-term borrowings	16,042	56,755	-
Long-term notes and accounts payable (including related parties)	3,730	2,559,644	-
December 31, 2024	Less than 1 year	Between 1 and 5 years	Over 5 years
Non-derivative financial liabilities
Short-term borrowings	$57,767	$-	$-
Notes payable	307	-	-
Accounts payable (including related parties)	2,456,939	-	-
Other payables (including related parties)	2,603,421	-	-
Bonds payable (including current portion)	597,400	-	-
Lease liabilities	267,174	324,324	-
Long-term notes and accounts payable	-	378,185	-

(3) Fair value information

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

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

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

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

B. Fair value information of investment property at cost is provided in Note 6(11).

C. Financial instruments not measured at fair value

The carrying amounts of cash and cash equivalents, financial assets at amortized cost, notes receivable, accounts receivable (including related parties), other receivables (including related parties), finance lease receivable (including related parties), guarantee deposits paid, short-term borrowings, notes payable, accounts payables (including related parties), other payables (including related parties), long-term borrowings (including current portion), bonds payable, guarantee deposits received, lease liabilities and long-term notes and accounts payable (including related parties) are approximate to their fair values.

D. The related information on financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities at December 31, 2025 and 2024 are as follows:

(a) The related information on the nature of the assets and liabilities is as follows:

December 31, 2025	Level 1	Level 2	Level 3	Total
Assets
Recurring fair value measurements
Financial assets at fair value through profit or loss
Equity securities	$ 310,983	$ -	$ -	$ 310,983
Beneficiary certificates	63,542	-	-	63,542
Financial assets at fair value through other comprehensive income
Equity securities	7,561	-	1,215	8,776
	$ 382,086	$ -	$ 1,215	$ 383,301
December 31, 2024	Level 1	Level 2	Level 3	Total
Assets
Recurring fair value measurements
Financial assets at fair value through profit or loss
Equity securities	$ 2,015	$ -	$ -	$ 2,015
Beneficiary certificates	30,145	-	-	30,145
Financial assets at fair value through other comprehensive income
Equity securities	31,294	-	1,330	32,624
	$ 63,454	$ -	$ 1,330	$ 64,784
Laibilty
Recurring fair value measurements
Financial liabilities at fair value through Derivative instruments
-call/put options of bonds	$ -	$ -	$ 10,932	$ 10,932

(b) The methods and assumptions the Group used to measure fair value are as follows:

i. The instruments the Group used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:

Market quoted price	Listed stocks	Open-end fund
	Closing price	Net Asset Value

ii. Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques or by reference to counterparty quotes.

iii. When assessing non-standard and low-complexity financial instruments, the Group adopts valuation technique that is widely used by market participants. The inputs used in the valuation method to measure these financial instruments are normally observable in the market.

iv. The valuation of derivative financial instruments is based on valuation model widely accepted by market participants. Forward foreign exchange contracts are generally valued based on prevailing forward exchange rates.

v. The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Group's financial and non-financial instruments. As a result, the estimate generated by valuation model will be slightly adjusted based on additional inputs, such as model risk or liquidity risk. In accordance with the Group's management policies and relevant control procedures relating to the valuation models used for fair value measurement, management believes adjustment to valuation is necessary in order to reasonably represent the fair value of financial and non-financial instruments at the consolidated balance sheet. The inputs and pricing information used during valuation are carefully assessed and adjusted based on current market conditions.

E. For the years ended December 31, 2025 and 2024, there was no transfer between Level 1 and Level 2.

F. The following chart is the movement of Level 3 for the years ended December 31, 2025 and 2024:

	2025
	Equity instruments	options of bonds	Total
At January 1	$ 1,330	($ 10,932)	($ 9,602)
Gains and losses recognized in profit or loss expenses	-	( 1,514)	( 1,514)
Gains and losses recognized in other comprehensive Recorded as unrealised gains (losses) on valuation of investments in equity instruments measured at fair value through other comprehensive income	( 115)	-	( 115)
Redeemed during the year	-	12,446	12,446
At December 31	$ 1,215	$ -	$ 1,215

	2024
	Equity instruments	options of bonds	Total
At January 1	$ 14,421	($ 5,039)	$ 9,382
Gains and losses recognized in profit or loss expenses	-	( 5,914)	( 5,914)
Gains and losses recognized in other comprehensive
Recorded as unrealised gains (losses) on valuation of investments in equity instruments measured at fair value through other comprehensive income	( 8,842)	-	( 8,842)
Converted during the year	-	21	21
Transfer out from Level 3	( 4,249)	-	( 4,249)
At December 31	$ 1,330	($ 10,932)	($ 9,602)

G. For the year ended December 31, 2025 and 2024, there was no transfer into or out from Level 3.

H. Treasury segment is in charge of valuation procedures for fair value measurements being categorized within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and making any other necessary adjustments to the fair value.

Treasury segment set up valuation policies, valuation processes and rules for measuring fair value of financial instruments and ensure compliance with the related requirements in IFRS.

I. The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

	Fair value at December 31, 2025	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
Non-derivative equity instrument:
Unlisted shares	$ 1,215	Market comparable companies	Price to book ratio multiple, discount for lack of marketability	2.47 ~3.67	The higher the multiple, the higher the fair value; the higher the discount for lack of marketability, the lower the fair value
	Fair value at December 31, 2024	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
Non-derivative equity instrument:
Unlisted shares	$ 1,330	Market comparable companies	Price to book ratio multiple, discount for lack of marketability	3.99 ~ 28.27	The higher the multiple, the higher the fair value; the higher the discount for lack of marketability, the lower the fair value
Derivative instrument:
Call/put options of bonds	($ 10,932)	The Binomial-Tree approach to convertible bonds	Volatility rate	39.11%	The higher the price volatility, the higher the fair value

J. The Group has carefully assessed the valuation models and assumptions used to measure fair value. However, use of different valuation models or assumptions may result in different measurement.

~104~

13. Supplementary Disclosures

(1) Significant transactions information

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

(2) Information on investees

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

(3) Information on investments in Mainland China

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

14. Segment Information

(1) General information

The Group is engaged in research and development, production and sales of optical communication, automotive electronics, surveillance product and the industrial computers, electronic contract manufacturing of computers and server products and leasing real estate, which was the information reported to the chief operating decision-maker for the purpose of resource allocation and the assessment of segment performance. The Group focused on the differences in law and regulation in different countries which required different marketing strategies.

The reportable segments are as follows:

A. 3CEMS and its subsidiaries
B. Ubiqconn and its subsidiaries
C. FIC Inc. and its subsidiaries
D. Other companies

(2) Measurement of segment information

The Group’s segment is measured with revenue and the operating profit, which is used as a basis for the Group in assessing the performance of operating segments. The accounting policies of the operating segments are in agreement with the significant accounting policies Summarized in Note 4. The Group did not provide the amounts of total assets and total liabilities to chief operating decision-maker.

(3) Information about segment profit or loss, assets and liabilities

The segment information provided to the chief operating decision-maker for the reportable segments is as follows:

Year ended December 31, 2025	3CEMS and its subsidiaries	Ubiqconn and its subsidiaries	FIC Inc. and its subsidiaries	Other companies	Adjustments and write-offs	Total
Revenue from external customers	$ 6,436,792	$ 1,875,197	$ 1,188,945	$ -	$ -	$ 9,500,934
Service revenue from external customers	-	90,821	124,273	5,640	-	220,734
Rental income from external customers	41,766	-	69,764	-	-	111,530
Inter-segment revenue	44,104	4,067	28,386	15,788	( 92,345)	-
Segment revenue	$ 6,522,662	$ 1,970,085	$ 1,411,368	$ 21,428	($ 92,345)	$ 9,833,198
Segment income (loss)	$ 63,192	($ 113,214)	$ 28,113	$ 2,395	$ 5,194	($ 14,320)
Segment income (loss) including:
Depreciation and amortization	$ 459,890	$ 76,721	$ 47,911	$ 640	($ 1,938)	$ 583,224

Year ended December 31, 2024	3CEMS and its subsidiaries	Ubiqconn and its subsidiaries	FIC Inc. and its subsidiaries	Other companies	Adjustments and write-offs	Total
Revenue from external customers	$ 10,805,831	$ 1,935,910	$ 81,161	$ -	$ -	$ 12,822,902
Service revenue from external customers	-	84,957	58,472	5,640	-	149,069
Rental income from external customers	65,825	-	63,951	-	-	129,776
Inter-segment revenue	48,823	558	1,099	16,203	( 66,683)	-
Segment revenue	$ 10,920,479	$ 2,021,425	$ 204,683	$ 21,843	($ 66,683)	$ 13,101,747
Segment income (loss)	$ 491,259	($ 141,850)	($ 121,481)	$ 13,197	$ 7,603	$ 248,728
Segment income (loss) including:
Depreciation and amortization	$ 438,869	$ 64,139	$ 40,147	$ 679	($ 1,938)	$ 541,896

(4) Reconciliation for segment income (loss)

A. Sales between segments are carried out at arm’s length. The revenue from external customers reported to the chief operating decision-maker is measured in a manner consistent with that in the statement of comprehensive income.

B. A reconciliation of reportable segment income or loss to the income (loss) before tax from continuing operations is provided as follows:

	Year ended December 31
	2025	2024
Segments (loss) income	($ 14,320)	$ 248,728
Non-operating income and expenses	6,085	63,170
(Loss) income before tax from continuing operations	($ 8,235)	$ 311,898

(5) Information on products and services

Details of revenue are as follows:

	Year ended December 31
	2025	2024
Sales revenue	$ 9,500,934	$ 12,822,902
Service revenue	220,734	149,069
Rental of real estate revenue	111,530	129,776
	$ 9,833,198	$ 13,101,747

(6) Geographical information

Geographical information for the years ended December 31, 2025 and 2024 is as follows:

	Year ended December 31
	2025		2024
	Revenue	Non-current assets	Revenue	Non-current assets
China	$ 2,778,134	$ 1,829,981	$ 6,072,131	$ 2,011,772
Taiwan	2,661,758	324,150	2,623,192	305,557
US	1,329,096	212,180	1,207,756	-
Malaysia	444,809	820,811	645,749	23,175
Others	2,619,401	451	2,552,919	1,667
	$ 9,833,198	$ 3,187,573	$ 13,101,747	$ 2,342,171

(7) Major customer information

Major customer information of the Group for the years ended December 31, 2025 and 2024 is as follows:

	Year ended December 31
	2025		2024
	Revenue	Percentage of operating revenue	Revenue	Percentage of operating revenue
A	$ 1,885,810	19%	$ 2,022,003	15%
C	1,709,158	17%	5,088,692	39%
B	1,178,624	12%	1,131,812	9%
	$ 4,773,592	48%	$ 8,242,507	63%

FIC GLOBAL, INC. AND SUBSIDIARIES

Loans to others

Year ended December 31, 2025

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

No. (Note 1)	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the year ended December 31, 2025	Balance at December 31, 2025	Actual amount drawn down	Interest rate	Nature of loan (Note 2)	Amount of transactions with the borrower	Reason for short-term financing	Allowance for doubtful accounts	Collateral		Limit on loans granted to a single party	Ceiling on total loans granted	Footnote
													Item	Value
1	FIC, Inc.	Access	Other receivables	Yes	$ 44,002	$ 22,001	$ 22,001	2.55-3.85	2	$ -	For operational need	$ -	-	$ -	$ 571,117	$ 761,409	Note 3
2	FIC Holding	Access	Other receivables	Yes	83,394	83,394	83,394	2.00-3.00	2	-	For operational need	-	-	-	275,784	367,712	Note 5
3	Brilliant	Access	Other receivables	Yes	663,173	663,173	617,600	1.80-4.81	2	-	For operational need	-	-	-	4,306,213	5,741,617	Note 5
4	FICTA	FIC, Inc.	Other receivables	Yes	240,000	240,000	240,000	2.065-2.19	2	-	For operational need	-	-	-	270,920	309,622	Note 4
5	Prime	Doniver System	Other receivables	Yes	125,720	125,720	125,720	3.95	2	-	For operational need	-	-	-	6,240,225	8,320,300	Note 7
6	Doniver	PUG	Other receivables	Yes	443,163	443,163	443,163	2.10-3.95	2	-	For operational need	-	-	-	1,438,330	1,917,773	Note 7
		Broad	Other receivables	Yes	308,014	276,584	249,869	2.55-3.95	2	-	For operational need	-	-	-	1,438,330	1,917,773	Note 7
		Doniver System	Other receivables	Yes	66,003	66,003	66,003	3.95	2	-	For operational need	-	-	-	1,438,330	1,917,773	Note 7
7	Doniver GZ	Doniver	Other receivables	Yes	361,445	361,445	282,495	0.00-3.00	2	-	For operational need and post due accounts receivable	-	-	-	509,770	679,693	Note 7
8	Doniver System GZ	Doniver System	Other receivables	Yes	440,334	440,334	358,378	0.00-3.45	2	-	For operational need and post due accounts receivable	-	-	-	677,760	903,680	Note 7
		GZE	Other receivables	Yes	80,928	8,992	8,992	7.00	2	-	For operational need	-	-	-	180,736	180,736	Note 6
9	Broad GZ	Broad	Other receivables	Yes	908,169	908,169	795,808	0.00-3.45	2	-	For operational need and post due accounts receivable	-	-	-	1,124,921	1,499,895	Note 7
10	Access	FIC SZ	Other receivables	Yes	400,590	-	-	0.00	2	-	Past due accounts receivable	-	-	-	1,584,072	2,112,096	Note 5
11	Prime GZ	Amerisk	Other receivables	Yes	134,880	-	-	3.00	2	-	For operational need	-	-	-	2,031,857	2,031,857	Note 6
12	Prime base	PRO3C	Other receivables	Yes	215,725	235,725	172,865	4.30-4.41	2	-	For operational need	-	-	-	377,234	502,978	Note 5
13	3CEMS	GZH	Other receivables	Yes	125,720	25,144	-	4.45	2	-	For operational need	-	-	-	1,263,151	1,263,151	Note 6
		FIC, Inc.	Other receivables	Yes	47,145	47,145	25,144	4.25	2	-	For operational need	-	-	-	1,263,151	1,263,151	Note 6
14	E3D	Phoenix Optical Polymers, LLC	Other receivables	No	3,020	1,679	1,679	5.00	2	-	For operational need	-	-	-	36,022	48,029	Note 3
15	FIC SZ	GZE	Other receivables	Yes	26,077	26,077	26,077	4.40	2	-	For operational need	-	-	-	161,217	214,956	Note 3

Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows:
(1) The Company is '0'.
(2) The subsidiaries are numbered in order starting from '1'
Note 2: The column of 'Nature of loan' shall fill in 'Business transaction or 'Short-term financing'.
(1) Business association is labeled as '1'
(2) Short-term financing is labeled as '2'.
Note 3: According to the FICG's and the inventors' "Regulations for Provision of Loans", the limit on loans granted to a single party shall not exceed 30% of the inventors' net assets value, and the ceiling on total loans shall not exceed 40% of the inventors' net assets value.
Note 4: According to the inventors' "Regulations for Provision of Loans", the limit on loans granted to a single party shall not exceed 35% of the inventors' net assets value, and the ceiling on total loans shall not exceed 40% of the inventors' net assets value.
Note 5: According to the inventors' "Regulations for Provision of Loans", the overseas subsidiaries' loans are granted to the Company directly and indirectly holds 100% of the shares, the limit on loans granted to a single party shall not exceed 150% of the inventors' paid-in capital.
Note 6: According to the inventors' "Regulations for Provision of Loans", the overseas subsidiaries' loans are granted to the Company directly and indirectly holds 100% of the shares, the limit on loans granted to a single party shall not exceed 150% of the inventors' paid-in capital.
Note 7: According to the inventors' "Regulations for Provision of Loans", the less or less granted to a single party shall not exceed 40% of the inventors' net assets value, and the ceiling on total loans shall not exceed 40% of the inventors' net assets value.
Note 7: According to the inventors' "Regulations for Provision of Loans", the overseas subsidiaries' loans are granted to the Company directly and indirectly holds 100% of the shares, the limit on loans granted to a single party shall not exceed 150% of the inventors' paid-in capital.

FIC GLOBAL, INC. AND SUBSIDIARIES

Provision of endorsements and guarantees to other

Year ended December 31, 2025

Table 2

Number (Note 1)	Endorser/guarantor	Party being endorsed/guaranteed		Limit on endorsements/guarantees provided for a single party (Note 3)	Maximum outstanding endorsement/guarantee amount as of December 31, 2025 (Note 4)	Outstanding endorsement/guarantee amount at December 31, 2025 (Note 5)	Actual amount drawn down (Note 6)	Amount of endorsements/guarantees secured wit collateral	Ratio of accumulated endorsement/guarantee amount to net asset value of the endorser/guarantor company	Ceiling on total amount of endorsements/guarantees provided (Note 3)	Provision of endorsements/guarantees by parent company to subsidiary	Provision of endorsements/guarantees by subsidiary to parent company (Note 7)	Provision of endorsements/guarantees to the party in Mainland China (Note 7)	Footnote
		Company num	Relationship with the endorser/guarantor (Note 2)
0	FICG	GZE	(2)	$ 5,913,555	$ 269,760	$ 269,760	$ 30,298	-	6%	$ 11,827,110	Y	N	Y
		FICG Japan	(2)	5,913,555	10,040	10,040	-	-	0%	11,827,110	Y	N	N
1	Prime GZ	Amertek	(2)	1,523,893	1,798,400	1,124,000	119,594	-	22%	2,539,822	N	N	Y	Note 8
		PROIC	(2)	1,523,893	224,800	224,800	-	-	4%	2,539,822	N	N	N
2	FIC, Inc.	FICG Japan	(2)	4,749,795	60,240	60,240	-	-	3%	9,499,590	N	N	N

Note 1: The numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows:
(1) The Company is '0'
(2) The subsidiaries are numbered in order starting from '1
Note 2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following seven categories; fill in the number of category each case belongs to:
(1) Having business relationship
(2) The endorser/guarantor company owns directly or indirectly more than 50% voting shares of the endorsed/guaranteed company.
(3) The endorsed/guaranteed company owns directly or indirectly more than 50% voting shares of the endorser/guarantor company.
(4) The endorsed/guaranteed parent company directly or indirectly owns more than 90% voting shares of the endorser/guarantor subsidiary.
(5) Mutual guarantee of the trade as required by the construction contract.
(6) Due to joint venture, each shareholder provides endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership.
(7) The performance guarantees for the sale of pre-sales contracts under the Consumer Protection Law are jointly guaranteed.

Note 3:
| | Limit on endorsements/guarantees provided for a single party | Ceiling on total amounts of endorsements / guarantees provided |
| --- | --- | --- |
| FICG | 250% of paid-in capital | 500% of paid-in capital |
| Prime Technology (Guangzhou) Inc. | 30% of equity | 50% of equity |
| FIC, Inc. | 250% of paid-in capital | 500% of paid-in capital |
| | Endorsement guarantees due to a parent-subsidiary relationship must not exceed Prime GZ net worth. | |

Note 4: Fill in the year-to-date maximum outstanding balance of endorsements/guarantees provided as of the reporting period.
Note 5: Fill in the amount approved by the Board of Directors or the chairman of the chairman has been authorised by the Board of Directors based on subparagraph 8, Article 12 of the Regulations Loaning of Funds and Making of Endorsements/Guarantees by Public Companies.
Note 6: Fill in the actual amount of endorsements/guarantees used by the endorsed/guaranteed company.
Note 7: Fill in 'Y' for those cases of provision of endorsements/guarantees by listed parent company to subsidiary and provision by subsidiary to listed parent company, and provision to the party in Mainland China.
Note 8: Prime GZ has provided endorsements/guarantees for Amertek Computer (Shenzhen) Co., Ltd. and the maximum outstanding balance as of the end of the current month amounted to NTD 1,798,400 thousand (RMB 400,000 thousand *4.4960).
The endorsements/guarantees are subject to the limit reported to the shareholders annually. The previous limit of RMB 150,000 thousand expired when a new limit was approved at the shareholders' meeting in 2025.
The new limit of RMB 250,000 thousand was reported to the Board of Directors on March 20, 2025, and became effective upon shareholders' approval on April 9, 2025.

FIC GLOBAL, INC. AND SUBSIDIARIES

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

December 31, 2025

Table 3

Expressed in thousands of NTD

(Except as otherwise indicated)

As of December 31, 2025

Securities held by	Marketable securities(Note 1)	Relationshipwith thesecurities issuer(Note 2)	Generalledger account	Number ofshare (in thousands)	Book value(Note 3)	Ownership (%)	Fair value
First International Computer, Inc.	Stocks
	Digitimes Inc.	None	Financial assets at fair value through profit or loss - non - current	63	$ -	0.00	$ -
	Changing Information Technology Inc.	None	Financial assets at fair value through other comprehensive income -non - current	95	7,561	0.50	7,561
	IQ Technology Inc.	None	Financial assets at fair value through other comprehensive income -non - current	64	157	0.61	157
	Formosoft International Inc.	None	Financial assets at fair value through other comprehensive income -non - current	14	-	0.54	-
	First Communication Inc.	None	Financial assets at fair value through other comprehensive income -non - current	0	-	0.00	-
	Incomm Technologies Co., Ltd.	None	Financial assets at fair value through profit or loss - non - current	-	-	0.00	-
	Mingo Telecom Inc.	None	Financial assets at fair value through profit or loss - non - current	68	-	1.00	-
	Systems & Software Inc.	None	Financial assets at fair value through profit or loss - non - current	1	-	13.00	-
	Environmental & Ocean Technology Inc.	None	Financial assets at fair value through profit or loss - non - current	100	-	11.00	-
	China United Trust & Investment Corporation	None	Financial assets at fair value through profit or loss - non - current	890	-	1.00	-
	EGtran,Corp.	None	Financial assets at fair value through profit or loss - non - current	1,244	-	2.00	-
	First International Digital,Inc.	None	Financial assets at fair value through profit or loss - non - current	5,400	-	19.00	-
	VREX,Inc.	None	Financial assets at fair value through profit or loss - non - current	667	-	2.00	-
	Turbo Ic,Inc.	None	Financial assets at fair value through profit or loss - non - current	400	-	1.00	-
	CTO Corporation	None	Financial assets at fair value through profit or loss - non - current	-	-	8.00	-
Brilliant	Stocks
	Tech Power Ltd.	None	Financial assets at fair value through profit or loss - non - current	200	-	16.00	-
	Opennoko Inc,	None	Financial assets at fair value through profit or loss - non - current	1,450	-	10.00	-
	eVionys,Inc.	None	Financial assets at fair value through profit or loss - non - current	144	-	1.00	-
	Asia Technology 3 Ltd.	None	Financial assets at fair value through profit or loss - non - current	1	-	2.00	-

Table 3, Page 1

FIC GLOBAL, INC. AND SUBSIDIARIES

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

December 31, 2025

Table 3

Expressed in thousands of NTD

(Except as otherwise indicated)

As of December 31, 2025

Securities held by	Marketable securities( Note 1 )	Relationshipwith thesecurities issuer( Note 2 )	Generalledger account	Number ofshare (in thousands)	Book value( Note 3 )	Ownership (%)	Fair value
Brilliant	Preference share
	Asia Technology 3 Ltd.	None	Financial assets at fair value through profit or loss - non - current	1	$ -	2.00	$ -
	Lineo Inc.	None	Financial assets at fair value through profit or loss - non - current	333	-	1.00	-
	Neo Paradigm Labs Inc.	None	Financial assets at fair value through profit or loss - non - current	4,348	-	11.00	-
	Showiz,Inc.	None	Financial assets at fair value through profit or loss - non - current	1,500	-	5.00	-
	iPilot,Inc.	None	Financial assets at fair value through profit or loss - non - current	800	-	9.00	-
	Streaming21,Inc.	None	Financial assets at fair value through profit or loss - non - current	1,052	-	1.00	-
	Vweb Corporation	None	Financial assets at fair value through profit or loss - non - current	500	-	1.00	-
FICTA Technology Inc.	Stocks
	Solar Applied Materials Technology Corp.	None	Financial assets at fair value through profit or loss - current	20	1,330	0.00	1,330
	Navitas Semiconductor Corporation (USD)	None	Financial assets at fair value through profit or loss - current	7	1,459	0.00	1,459
	Sipp Technology Corporation	None	Financial assets at fair value through other comprehensive income -non - current	288	1,058	3.65	1,058
	Funds
Ubiqconn	Fubon Money Market Fund	None	Financial assets at fair value through profit or loss - current	3,408	53,535	0.00	53,535
	Stocks
	Fubon Financial Holding Co., Ltd. Preferred Shares C	None	Financial assets at fair value through profit or loss - current	100	5,340	0.00	5,340
	Union Bank of Taiwan Preferred Shares A	None	Financial assets at fair value through profit or loss - current	118	6,431	0.00	6,431
	TS Financial Holding Co., Ltd. Class E Preferred Shares	None	Financial assets at fair value through profit or loss - current	31,771	296,423	0.11	296,423
	Funds
	Yuanta US 20+ Year AAA-A Corporate Bond ETF	None	Financial assets at fair value through profit or loss - current	77	2,476	0.00	2,476
	Cathay US Corporate A- and Above 10+ Years Liquid ETF	None	Financial assets at fair value through profit or loss - current	71	2,494	0.00	2,494
	CTBC USD Corporate 10+ Year High Grade Capped Bond ET	None	Financial assets at fair value through profit or loss - current	73	2,502	0.00	2,502
	CTBC Banking Senior 10+ Year Bond ETF	None	Financial assets at fair value through profit or loss - current	69	2,535	0.00	2,535

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and marketable securities derived from the above items that fall within the scope of IFRS 9, "Financial Instruments".
Note 2: Leave the column blank if the issuer of marketable securities is non-related party
Note 3: Fill in the amount after adjusted at fair value; fill in the acquisition cost or amortised cost deducted by accumulated impairment for the marketable securities not measured at fair value.
Note 4: The number of shares of securities and their amounts pledged as security or pledged for loans and their restrictions on use under some agreements should be stated in the footnote if the securities presented herein have such conditions

FIC GLOBAL, INC. AND SUBSIDIARIES

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

Year ended December 31, 2023

Table 4

Expressed in thousands of NTD

(Except as otherwise indicated)

Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction				Compared to third party transactions		Notes/accounts receivable (payable)
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Prime GZ	Prime Base	Subsidiary	Sales	$ 3,433,707	55%	Periodic settlement or offsetting, the payment period was 120 days.	Same as non-related parties	Similar transactions with non- related parties	$ 1,386,188	51%
Prime GZ	Prime Base Taiwan branch	Subsidiary	Sales	2,041,218	33%	Periodic settlement or offsetting, the payment period was 120 days.	Same as non-related parties	Similar transactions with non- related parties	427,611	16%
Amertek	Prime Base Taiwan branch	Subsidiary	Sales	1,665,147	75%	Periodic settlement or offsetting, the payment period was 60 days.	Same as non-related parties	Similar transactions with non- related parties	509,597	84%
Ubiquom	Ruggen	Subsidiary	Sales	169,014	9%	The payment period was 30 days	Note 2	Similar transactions with non- related parties	25,979	16%
GZH	GZE	Subsidiary	Sales	642,958	42%	Periodic settlement or offsetting, the payment period was 60 days.	Same as non-related parties	Similar transactions with non- related parties	54,871	23%
GZH	FICG Japan	Subsidiary	Sales	137,679	9%	Periodic settlement or offsetting, the payment period was 60 days.	Same as non-related parties	Similar transactions with non- related parties	14,384	6%
GZE	GZH	Subsidiary	Sales	1,022,494	84%	Periodic settlement or offsetting, the payment period was 60 days.	Same as non-related parties	Similar transactions with non- related parties	181,676	84%
Prime Base	Prime GZ	Subsidiary	Sales	572,343	26%	Periodic settlement or offsetting, the payment period was 60 days.	Same as non-related parties	Similar transactions with non- related parties	229,352	71%

Note 1: These transactions are shown in revenue, and related transactions were no longer disclosed.
Note 2: There were no similar sales prices available for comparison due to the difference in the products sold to related parties.

FIC GLOBAL, INC. AND SUBSIDIARIES

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

Year ended December 31, 2025

Expressed in thousands of NTD

(Except as otherwise indicated)

Table 5

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31, 2025	Turnover rate	Overdue		Amount collected subsequent to the balance sheet dat	Allowance for doubtful accounts
					Amount	Action taken
Access	FIC SZ	Subsidiary	$ 222,773	-	$ -	-	$ -	$ -
Brilliant	Access	Subsidiary	617,600	Note	-	-	-	-
Prime	Danriver System	Subsidiary	125,720	Note	-	-	-	-
Danriver	Broad	Subsidiary	249,869	Note	-	-	-	-
Danriver	PUG	Subsidiary	443,163	Note	-	-	-	-
Danriver GZ	Danriver	Subsidiary	282,495	Note	-	-	-	-
Danriver System GZ	Danriver System	Subsidiary	358,378	Note	-	-	-	-
Broad GZ	Broad	Subsidiary	795,808	Note	-	-	-	-
Prime GZ	Prime Base	Subsidiary	1,386,188	4.89	-	-	57,961	-
Prime GZ	Prime Base Taiwan branch	Subsidiary	427,611	1.30	-	-	84,415	-
Amertek	Prime Base Taiwan branch	Subsidiary	509,597	1.91	-	-	223,356	-
FICTA	FIC, Inc.	Subsidiary	240,000	Note	-	-	-	-
GZE	GZH	Subsidiary	181,676	7.19	-	-	115,620	-
Prime Base	PRO3C	Subsidiary	172,865	Note	-	-	-	-
Prime Base	Prime GZ	Subsidiary	229,352	3.17	-	-	-	-

Note: The calculation of turnover rate was not applicable because it was a loan to others.

FIC GLOBAL, INC. AND SUBSIDIARIES

Significant inter-company transactions during the reporting period

Year ended December 31, 2025

Table 6

Expressed in thousands of NTD

(Except as otherwise indicated)

Number (Note 1)	Company name	Counterparty	Relationship (Note 2)	Transaction
				General ledger account	Amount	Transaction term	Percentage of consolidated total operating revenues or total assets (Note 3)
1	Access	FIC SZ	3	Accounts receivable	$ 222,773	Periodic settlement or offsetting, the payment period was 60 days.	2%
2	Brilliant	Access	3	Other receivables-financing-related party	617,600	Collection of payments at maturity according to the agreement.	5%
3	FICTA	FIC, Inc.	3	Other receivables-financing-related party	240,000	Collection of payments at maturity according to the agreement.	2%
4	Ubiqconn	Ruggon	3	Sales	169,014	The payment period was 30 days.	2%
5	Amertek	Prime Base Taiwan branch	3	Accounts receivable	509,597	Periodic settlement or offsetting, the payment period was 60 days.	4%
		Prime Base Taiwan branch	3	Sales	1,665,147	Periodic settlement or offsetting, the payment period was 60 days.	17%
6	Broad GZ	Broad	3	Other receivables-financing-related party	795,808	Collection of payments at maturity according to the agreement.	6%
7	Danriver GZ	Danriver	3	Other receivables-financing-related party	282,495	Collection of payments at maturity according to the agreement.	2%
8	Danriver System GZ	Danriver System	3	Other receivables-financing-related party	358,378	Collection of payments at maturity according to the agreement.	3%
9	Danriver	Broad	3	Other receivables-financing-related party	249,869	Collection of payments at maturity according to the agreement.	2%
		PUG	3	Other receivables-financing-related party	443,163	Collection of payments at maturity according to the agreement.	3%
10	Prime GZ	Prime Base	3	Accounts receivable	1,386,188	Periodic settlement or offsetting, the payment period was 120 days.	10%
		Prime Base Taiwan branch	3	Accounts receivable	427,611	Periodic settlement or offsetting, the payment period was 120 days.	3%
		Prime Base	3	Sales	3,433,707	Periodic settlement or offsetting, the payment period was 120 days.	35%
		Prime Base Taiwan branch	3	Sales	2,041,218	Periodic settlement or offsetting, the payment period was 120 days.	21%
11	GZH	FICG Japan	3	Sales	137,679	Periodic settlement or offsetting, the payment period was 60 days.	1%
		GZE	3	Sales	642,958	Periodic settlement or offsetting, the payment period was 60 days.	7%
12	GZE	GZH	3	Sales	1,022,494	Periodic settlement or offsetting, the payment period was 60 days.	10%
		GZH	3	Accounts receivable	181,676	Periodic settlement or offsetting, the payment period was 60 days.	1%
13	Prime Base	PRO3C	3	Other receivables-financing-related party	172,865	Collection of payments at maturity according to the agreement.	1%
		Prime GZ	3	Sales	572,343	Periodic settlement or offsetting, the payment period was 60 days.	6%
		Prime GZ	3	Accounts receivable	229,352	Periodic settlement or offsetting, the payment period was 60 days.	2%

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:
(1) Parent company is '0'
(2) The subsidiaries are numbered in order starting from '1'

Note 2: Relationship between transaction company and counterparty is classified into the following three categories; fill in the number of category each case belongs to (If transactions between parent company and subsidiaries or between subsidiaries refer to the same transaction, it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the subsidiary is not required to disclose the transaction; for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction.):
(1) Parent company to subsidiary.
(2) Subsidiary to parent company.
(3) Subsidiary to subsidiary.

Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.

Note 4: If the amount of individual transactions does not reach $1\%$ of the consolidated total revenue and $1\%$ of the consolidated total assets, they will not be disclosed; in addition, as the transactions are shown in asset-income form, the relative transactions are not disclosed.

FIC GLOBAL, INC. AND SUBSIDIARIES

Information on investees

Year ended December 31, 2025

Table 7

Expressed in thousands of NTD

(Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial investment amount		Shares held as at December 31, 2025			Net profit (loss) of the investee for the year ended December 31, 2025	Investment income (loss) recognised by the Company for the year ended December 31, 2025
				Balance as at December 31, 2025	Balance as at December 31, 2024	Number of share (in thousands)	Ownership (%)	Book value
FICG	First International Computer, Inc.	Taiwan	Computer system analysis, planning and maintenance, EMS and import and export trade business	$ 4,022,961	$ 4,022,961	189,992	100.00	$ 1,901,924	$ 15,651	$ 17,118
	FICTA Technology Inc.	Taiwan	Communication product business	514,547	514,547	41,496	69.00	493,255	3,913	2,706
	3CEMS Corporation	Cayman Islands	Investment	1,291,806	1,291,806	317,609	61.00	1,922,032	( 34,821)	( 21,193)
	Ubiqconn Technology, Inc.	Taiwan	Manufacturing and sales of industrial computers, automotive electronics, electronic components and peripheral equipment.	580,144	580,144	37,827	44.00	896,382	( 62,366)	( 27,431)
	LEO Systems, Inc.	Taiwan	Sales of information software and hardware products, software planning and design, computer hardware maintenance services, system integration	13,391	13,391	1,787	2.00	30,172	214,913	4,198
	Formosa21 Inc.	Taiwan	Manufacture, distribution, renting, maintenance and import and export trade business of computer system, data communication system, peripheral equipment, terminal equipment and related business machine.	5	5	-	-	5	11,141	1
	Geointelligence Systems, Inc.	Taiwan	Accept the commision of civil engineering planning and design and related business	561	561	43	1.00	694	5,750	57
	Ideenion Holdings Inc.	Cayman Islands	Investment	273,240	273,240	9,000	35.00	247,122	28,684	7,371
	Guan Zhi Holdings Limited	Hong Kong	Investment and trading of touch screen	3,153	-	8,371	15.00	40,387	53,390	-
First International Computer, Inc.	Brilliant World Limited	British Virgin Islands	Investment	2,869,980	2,869,980	91,340	100.00	667,154	19,417	-
	High Standard Global Corporation	British Virgin Islands	Investment	2,704,361	2,704,361	85,050	100.00	541,128	16,675	-
	City Smarter Technologies Corporation	Taiwan	Manufacture and sale of telecommunication equipment, electronic components, computers, peripheral equipment and office equipment.	2,860	2,860	36	19.00	252	( 400)	-
	Access Trend Limited	British Virgin Islands	International Trade business	617,994	617,994	33,600	100.00	( 543,535)	( 31,806)	-

Table 7, Page 1

FIC GLOBAL, INC. AND SUBSIDIARIES

Information on investees

Year ended December 31, 2025

Table 7

Expressed in thousands of NTD

(Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial investment amount		Shares held as at December 31, 2025			Net profit (loss) of the investee for the year ended December 31, 2025	Investment income (loss) recognised by the Company for the year ended December 31, 2025
				Balance as at December 31, 2025	Balance as at December 31, 2024	Number of share (in thousands)	Ownership (%)	Book value
First International Computer, Inc.	FIC First international Holding B.V.	Nederland	Investment	$ 913,148	$ 913,148	4,983	100.00	$ 88,906	$ 1,246	$ -
	3CEMS Corporation	Cayman Islands	Investment	1,267,081	1,267,081	194,212	37.00	1,175,287	(34,821)	-
	LEO Systems, Inc.	Taiwan	Sales of information software and hardware products, software planning and design, computer hardware maintenance services, system integration	124	124	14	0.00	229	214,913	-
	Web Information Technology	Taiwan	Manufacture, development, distribution, renting, maintenance and import and export trade business of computer system, data communication system, peripheral equipment, terminal equipment and related business machine.	28,348	28,348	2,937	42.00	-	-	-
	Lambert Newmedia, Inc.	Taiwan	Computer equipment installation, retail sale of computer software and digital information supply services	2,800	2,800	280	24.00	-	-	-
	FICG(JAPAN) Inc.	JAPAN	Sales, import and export or brokerage of communication equipment, control equipment, computers and other electronic application equipment	15,758	15,758	150	100.00	19,456	5,491	-
	Guan Zhi Holdings Limited	Hong Kong	Investment and trading of touch screen	0	-	47,811	85.00	230,666	53,390	-
	GZE Guan Zhi Electronics Inc.	Cayman Islands	Investment	23,636	-	2,364	100.00	23,407	(229)	-
FIC Holding	3CEMS Europe B.V.	Nederland	Purchase, sale and after-sales service of computers and parts	785	785	7	100.00	-	-	-
FICTA Technology Inc.	Ubiqconn Technology, Inc.	Taiwan	Manufacturing and sales of industrial computers, automotive electronics, electronic components and peripheral equipment.	248,112	248,112	14,751	17.00	349,549	(62,366)	-

Table 7, Page 2

FIC GLOBAL, INC. AND SUBSIDIARIES

Information on investees

Year ended December 31, 2025

Table 7

Expressed in thousands of NTD

(Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial investment amount		Shares held as at December 31, 2025			Net profit (loss) of the investee for the year ended December 31, 2025	Investment income (loss) recognised by the Company for the year ended December 31, 2025
				Balance as at December 31, 2025	Balance as at December 31, 2024	Number of share (in thousands)	Ownership (%)	Book value
FICTA Technology Inc.	LEO Systems, Inc.	Taiwan	Sales of information software and hardware products, software planning and design, computer hardware maintenance services, system integration	$ 75,984	$ 75,984	3,367	4.00	$ 56,918	$ 214,913	$ -
	Formosa21 Inc.	Taiwan	Manufacture, distribution, renting, maintenance and import and export trade business of computer system, data communication system, peripheral equipment, terminal equipment and related business machine.	19,035	19,035	2,038	29.00	23,563	11,141	-
	Witology Technology Company Limited	Taiwan	Research on electronic related industry	10,000	10,000	1,000	20.00	3,915	( 8,840)	-
3CEMS	Prime Foundation Inc.	British Virgin Islands	Investment	1,447,024	1,447,024	27,403	100.00	4,160,150	( 7,431)	-
	Danriver System Inc.	British Virgin Islands	Investment	-	-	8,500	100.00	( 107,694)	( 18,620)	-
	Danriver Inc.	British Virgin Islands	Investment	1,066,527	1,066,527	30,000	100.00	958,887	31,707	-
	Broad Technology,Inc.	British Virgin Islands	Investment	227,388	227,388	5,000	100.00	( 198,041)	( 42,789)	-
Prime Foundation Inc.	Perfect Union Global Inc.	British Virgin Islands	Investment	2,681,086	2,681,086	82,332	100.00	4,000,357	( 5,178)	-
Prime Technology (Guangzhou) Inc.	Prime Base Inc.	Cayman Islands	Investment, assembly service and trading of printed circuit board and electronic parts and components	3,287	3,287	100	100.00	245,317	( 45,743)	-
	PRO3C(Malaysia) SDN BHD.	Malaysia	Production and sales of PCBA	291,876	46,487	2	100.00	305,261	( 22,754)	-
Ubiqconn Technology, Inc.	Ruggon Corporation	Taiwan	Trade of industrial computers, automotive products, electronic components and peripheral equipment.	110,768	110,768	12,000	100.00	66,398	( 21,919)	-
	Ubiqconn Technology (USA) USA Inc.	USA	Trade of industrial computers, automotive products, electronic components and peripheral equipment.	31,871	31,871	10,500	100.00	22,498	12,411	-

Table 7, Page 3

FIC GLOBAL, INC. AND SUBSIDIARIES

Information on investees

Year ended December 31, 2025

Table 7

Expressed in thousands of NTD

(Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial investment amount		Shares held as at December 31, 2025			Net profit (loss) of the investee for the year ended December 31, 2025	Investment income (loss) recognised by the Company for the year ended December 31, 2025
				Balance as at December 31, 2025	Balance as at December 31, 2024	Number of share (in thousands)	Ownership (%)	Book value
Ubiqconn Technology, Inc.	Ubiqconn Technology Europe GmbH	Germany	Trade of industrial computers, automotive products, electronic components and peripheral equipment.	$ 34,652	$ 17,422	25	100.00	$ 10,904	($ 18,479)	$ -
	Ubiqconn Technology Holding Inc.	USA	Investment	295,148	-	1,000	100.00	285,176	( 28,908)	-
UNH	E3 Displays, LLC	USA	Provision of optical bonding and design services for touchscreens and displays	208,742	-	-	100.00	227,338	( 22,046)	-

Table 7, Page 4

FIC GLOBAL, INC. AND SUBSIDIARIES

Information on investments in Mainland China

Year ended December 31, 2025

Table 8
Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31, 2025

Investor in Mainland China	Main business activities	Paid-in capital	Investment method (Note 1)	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2025	Remitted to Mainland China	Remitted back to Taiwan	Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2025	Net income of investor for the year ended December 31, 2025	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31, 2025 (Note 2)	Book value of investments in Mainland China as of December 31, 2025 (Note 12)	Accumulated amount of investment income remitted back to Taiwan as of December 31, 2025	Footnote
Shanghai Zhong Chuan Plastics Co., Ltd.	Production and sales of electronic components and plastic stationery and toys.	$ 121,346	2	$ 121,346	$ -	$ -	$ 121,346	$ -	-	$ -	$ -	$ -	Note 11
Guangzhou Han Rigid Corporation	Production and sales of PVC Rigid Film	1,304,800	2	195,720	-	-	195,720	-	-	-	-	-	Note 11
Shanghai User Electronics Co., Ltd.	Production and sales of software and hardware, computer case and accessories	35,230	2	6,850	-	-	6,850	-	-	-	-	-	Note 11
Broad Technology (Guangzhou) Inc.	Real estate leasing business	326,200	2	587,160	-	-	587,160	6,665	98	6,537	749,947	-	Note 2 (2)B, Note 10, Note 13
Prime Technology (Guangzhou) Inc.	Design, production, and sales services in optical communication, automotive electronics, aerospace electronics, industrial electronics, marine electronics, communication electronics, medical electronics, and consumer electronics.	772,439	2	391,440	-	-	391,440	33,246	86	28,517	4,442,445	-	Note 2 (2)B, Note 7, Note 10
Danriver Technology (Guangzhou) Inc.	Real estate leasing business	195,720	2	391,440	-	-	391,440	8,162	98	8,005	339,847	-	Note 2 (2)B, Note 7, Note 10, Note 13
Fic (Suzhou) Inc.	Real estate leasing business	3,082,634	2	2,770,642	-	-	2,770,642	16,578	100	16,578	537,390	-	Note 2 (2)B
Broadteam Electronics (Guangzhou) Inc.	Production and sales of printed circuit board	820,854	2	-	-	-	-	-	-	-	-	-	Note 4, Note 7, Note 10, Note 11
Danriver System (Guangzhou) Inc.	Production and sales of printed circuit board	326,000	2	-	-	-	-	(2,512)	98	(2,464)	451,840	-	Note 2 (2)B, Note 5, Note 7, Note 10
Delton Electronics (Guangzhou) Inc.	Production and sales of printed circuit board	900,312	2	-	-	-	-	-	-	-	-	-	Note 6, Note 7, Note 11

FIC GLOBAL, INC. AND SUBSIDIARIES

Information on investments in Mainland China

Year ended December 31, 2025

Table 8

Amount remitted from Taiwan to Mainland China/Amount remitted

back to Taiwan for the year ended December 31, 2025

Investee in Mainland China	Main business activities	Paid-in capital	Investment method ( Note 1 )	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2025	Remitted to Mainland China	Remitted back to Taiwan	Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2025	Net income of investee for the year ended December 31, 2025	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31, 2025 ( Note 2 )	Book value of investments in Mainland China as of December 31, 2025 ( Note 12 )	Accumulated amount of investment income remitted back to Taiwan as of December 31, 2025	Footnote
Ficus Systems (Shanghai) Inc.	Production and sales of mobile phone and related accessories	$ 68,750	2	$ -	$ -	$ -	$ -	$ -	$ -	$ -	$ -	$ -	Note 7, Note 11
Success Technology (GuangZhou) Inc.	Production and sales of printed circuit board	336,363	2	-	-	-	-	-	-	-	-	-	Note 9, Note 11
Amertek Computer (Shenzhen) Co., Ltd.	Production and sales of desk personal computers, main board	747,896	2	-	-	-	-	( 120,829)	98	( 118,509)	1,322,649	-	Note 2 (2)B, Note 10
Guangzhou Guangying Electronics Co., Ltd	Wholesale of electronic products	4,068	2	-	-	-	-	( 1)	-	-	4,470	-	Note 2 (2)B
Amerwave Technology (Shenzhen) Co., Ltd.	Production and sales of computer host, main board and control board	282,750	2	-	-	-	-	35,176	19	6,683	62,988	-	Note 2 (2)B, Note 9
China Applied Technology Co., Ltd.	Internet of Things (IoT), Development of intelligent technology, Technology transfer, Technological consultancy and service, Import and export business of goods and technology.	57,580	2	-	-	-	-	-	-	-	-	-	Note 8, Note 11
Amerwis Technology (Shenzhen) Co., Ltd.	Providing research&development services and trading	894	2	-	-	-	-	( 183)	98	( 179)	409	-	Note 2 (2)B, Note 9
Dongguan Guan Zhi Electronics Ltd.	Research and development, manufacturing and sales of electronic materials, electronic components, display devices and touch screen	958,306	2	-	-	-	-	80,809	85	80,809	245,234	-	Note 2 (2)B

Table 8, Page 2

FIC GLOBAL, INC. AND SUBSIDIARIES

Information on investments in Mainland China

Year ended December 31, 2025

Table 8

Company name	Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2025	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA
FIC GLOBAL, INC. AND SUBSIDIARIES	$ 4,464,598	$ 6,363,482	$ 5,073,789

Note 1: Investment methods are classified into the following three categories; fill in the number of category each case belongs to

(1) Directly invest in a company in Mainland China.
(2) Through investing in an existing company in the third area, 3CEMS, Zircon and High standard which then invested in the investee in Mainland China
(3) Others

Note 2: In the Investment income (loss) recognized by the Company for the year ended December 31, 2023 column:

(1) Indicate if the company did not accrue investment income or loss since it was still in preparation.
(2) Indicate the basis for investment income (loss) recognition in the number of one of the following three categories:

A. The financial statements were audited and attested by international accounting firms which are in collaborative relationships with accounting firms in R.O.C.

B. The financial statements were audited and attested by R.O.C. parent company's CPA.

C. Others: The investment income or loss is recognized on the basis of the unreviewed financial statements for the same period.

Note 3: The numbers in this table are expressed in New Taiwan dollars.

Note 4: Broadteam Electronics (Guangzhou) Inc. is based on Jing-Shen-II-Zi Letter No. 91007611 (原著二字第91007611號) as approved by the investment Commission, Ministry of Economic Affairs. As the funds are from the FICG's own funds of its indirectly controlled subsidiaries, there are no funds remitted.

Note 5: Danriver System (Guangzhou) Inc. is based on Jing-Shen-II-Zi Letter No. 92017614 (原著二字第92017614號) as approved by the investment Commission, Ministry of Economic Affairs, but the funds are from the FICG's own funds of its indirectly controlled subsidiaries, so there are no funds remitted.

Note 6: Dchon Electronics (Guangzhou) Inc. is based on Jing-Shen-II-Zi Letter No. 92008097 (原著二字第92008097號) as approved by the investment Commission, Ministry of Economic Affairs, but the funds are from the FICG's own funds of its indirectly controlled subsidiaries, so there are no funds remitted.

Note 7: The investment in Mainland China held by First International Computer, Inc. had been sold to its parent company, FIC GLOBAL, INC. in 2015.

Note 8: As of December 31, 2025, the indirectly acquired of investment in Mainland China business which are the investee purchased by the subsidiary established through in the third area has not been approved by the investment Commission of the Ministry of Economic Affairs.

Note 9: As of December 31, 2025, the investment in Mainland China which are invested through investing in the subsidiary in the third area has not been approved by the investment Commission of the Ministry of Economic Affairs.

Note 10: As of December 31, 2025, Amertuh Limited repaid the accounts payable of First International Computer, Inc. by using the shares of 3CEMS Corp. and CEMS Inc., the repayment amounted to 817,019 thousand and 53,074 thousand.

Note 11: All the ownership has been sold.

Note 12: Listed based on the carrying amount of the investment in Mainland China investee companies at period end.

Note 13: In May 2024, Broad Technology (Guangzhou), Inc. reduced capital by USD 13,000 thousand in cash. In September 2023, Danriver Technology (Guangzhou) Inc. reduced capital by USD 12,000 thousand in cash. The funds from the capital reductions have not yet been fully recovered as of December 31, 2025.

Table 8, Page 3

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FICG — Audit Report / Information 2025

52367_rns_2026-05-11_21380c8b-bd98-4d54-8de5-3c0fb8cc1962.pdf

FIC GLOBAL, INC. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS' REPORT

DECEMBER 31, 2025 AND 2024

INDEPENDENT AUDITORS' REPORT TRANSLATED FROM CHINESE

Opinion

Basis for opinion

Key audit matters

Significant Business Combination

Description

How our audit addressed the matter

Existence of sales revenue

Description

How our audit addressed the matter

Evaluation of inventories

Description

How our audit addressed the matter

Other matter - Reference to the audits of other auditors

Other matter – Parent company only financial reports

Responsibilities of management and those charged with governance for the consolidated statements

Auditors' responsibilities for the audit of the consolidated financial statements

FIC GLOBAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2025 AND 2024

FIC GLOBAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

YEARS ENDED DECEMBER 31, 2025 AND 2024

FIC GLOBAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 AND 2024

4. Summary of Material Accounting Policies

(1) Compliance statement

6. Details of Significant Accounts

(1) Cash and cash equivalents

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

Lease liabilities

(10) Leasing arrangements – lessor

(19) Capital surplus

(20) Retained earnings

(27) Income taxes

7. Related Party Transactions

(1) Names of related parties and relationship

8. Pledged Assets

9. Significant Contingent Liabilities and Unrecognized Contract Commitments

(a) Contingencies

(b) Commitments

10. Significant Disaster Loss

11. Significant Events after the Balance Sheet Date

12. Others

(1) Capital management

(2) Financial instruments

B. Financial risk management policies

C. Significant financial risks and degrees of financial risks

Exchange rate risk

Price risk

Cash flow and fair value interest rate risk

(b) Credit risk

13. Supplementary Disclosures

14. Segment Information

(4) Reconciliation for segment income (loss)

FIC GLOBAL, INC. AND SUBSIDIARIES

FIC GLOBAL, INC. AND SUBSIDIARIES

FIC GLOBAL, INC. AND SUBSIDIARIES

FIC GLOBAL, INC. AND SUBSIDIARIES

FIC GLOBAL, INC. AND SUBSIDIARIES

FIC GLOBAL, INC. AND SUBSIDIARIES

FIC GLOBAL, INC. AND SUBSIDIARIES

FIC GLOBAL, INC. AND SUBSIDIARIES

FIC GLOBAL, INC. AND SUBSIDIARIES

FIC GLOBAL, INC. AND SUBSIDIARIES

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