FIS - Audit Report / Information 2025

Fortune Information Systems Corporation

Parent Company Only Financial Statements for the Years Ended December 31, 2025 and 2024 and Independent Auditors’ Report

INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Stockholders

Fortune Information Systems Corp.

Opinion

We have audited the accompanying parent company only financial statements of Fortune Information Systems Corporation (the “Company”), which comprise the parent company only balance sheets as of December 31, 2025 and 2024, and the parent company only statements of comprehensive income, parent company only statements of changes in equity and parent company only statements of cash flows for the years then ended, and the related notes to the parent company only financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the parent company only financial position of the Company as of December 31, 2025 and 2024, and its parent company only financial performance and its parent company only cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards generally accepted in the ROC. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements section of our report. We are independent of the Company in accordance with The Norm of Professional Ethics for Certified Public Accountant of the ROC, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the parent company only financial statements for the year ended December 31, 2025. These matters were addressed in the context of our audit of the parent company only financial statements as a whole,

and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

The descriptions of the key audit matters of the 2025 parent company only financial statements are as follows:

Revenue recognition for system integration

The Company’s primary revenue is derived from system integration services. Revenue is recognized based on the stage of completion of each contract, which is measured by the proportion of costs incurred to date relative t o the estimated total contract costs. As the determination of the stage of completion involves significant judgment, contracts with significant amounts that remain incomplete at the end of the period may materially affect the accuracy of revenue recognitio n for system integration. Accordingly, the recognition of revenue from such significant and incomplete system integration contracts at period -end is considered a key audit matter.

Our audit procedures in response to the above key audit matter included understanding and evaluating the processes related to the accuracy of revenue recognition for system integration; performing detailed testing of contracts that were incomplete at period-end to verify the accuracy of costs incurred; and reviewing whether there were any significant subsequent adjustments to the estimated total contract costs and the stage of completion.

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

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

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

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

Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements

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

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

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements for the year ended December 31, 2025 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 s o would

reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audit resulting in this independent auditors’ report are Cai,You-Ling and Liu,Wen-Ling.

Deloitte & Touche Taipei, Taiwan Republic of China Mar. 6, 2026

Notice to Readers

The accompanying parent company only financial statements are intended only to present the parent company only financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China (ROC) and not those of any other jurisdictions. The standards, procedures and practices to review such parent company only financial statements are those generally applied in the ROC.

For the convenience of readers, the independent auditors’ review report and the accompanying parent company only financial statements have been translated into English from the original Chinese version prepared and used in the ROC. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language auditors’ review report and parent company only financial statements shall prevail.

FORTUNE INFORMATION SYSTEMS CORPORATION

PARENT COMPANY ONLY BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

	ASSETS CURRENT ASSETS Cash and cash equivalents`（`Note 6`）` Contract assets`（`Note 16`）` Notes receivable`（`Note 7`）` Accounts receivables`（`Note 7, 16 and 22`）` Other receivables`（`Note 22`）` Inventories`（`Note 8`）` Prepayments`（`Note 22`）` Other current assets Total current assets NON-CURRENT ASSETS Investments accounted for using the equity method (Note 9) Property, plant and equipment`（`Note 10`）` Right-of-use assets`（`Note 11`）` Investment properties`（`Note 12`）` Other intangible assets Deferred tax assets`（`Note 18`）` Refundable deposits Long-term accounts receivables`（`Note 7`）` Net defined benefit assets`（`Note 14`）` Total non-current assets TOTAL LIABILITIESAND EQUITY CURRENT LIABILITIES Contract liabilities`（`Note 16`）` Notes payable Accounts payables`（`Note 22`）` Other payables`（`Note 13 and 22`）` Current tax liabilities Lease liabilities`（`Note 11 and 22`）` Other current liabilities Total current liabilities NON-CURRENT LIABILITIES Deferred tax liabilities`（`Note 18`）` Lease liabilities`（`Note 11 and 22`）` Other non-current liabilities Total non-current liabilities Total liabilities EQUITY`（`Note 15`）` Common stock Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity interests Total equity TOTAL		December 31, 2025 Amount `％` $ 181,747 11 343,729 20 755 - 129,433 8 4,429 - 100,131 6 15,718 1 1,255 - 777,197 46 550,487 32 207,374 12 13,525 1 59,629 3 309 - 620 - 88,651 5 8,920 1 - - 929,515 54 $ 1,706,712 100 $ 30,580 2 3 - 213,057 13 120,582 7 11,622 1 7,179 - 37,824 2 420,847 25 10 - 6,496 - 4,101 - 10,607 - 431,454 25 699,612 41 62,361 4 197,382 11 - - 316,880 19 514,262 30 977) - 1,275,258 75 $ 1,706,712 100	December 31, 2025 Amount `％` $ 181,747 11 343,729 20 755 - 129,433 8 4,429 - 100,131 6 15,718 1 1,255 - 777,197 46 550,487 32 207,374 12 13,525 1 59,629 3 309 - 620 - 88,651 5 8,920 1 - - 929,515 54 $ 1,706,712 100 $ 30,580 2 3 - 213,057 13 120,582 7 11,622 1 7,179 - 37,824 2 420,847 25 10 - 6,496 - 4,101 - 10,607 - 431,454 25 699,612 41 62,361 4 197,382 11 - - 316,880 19 514,262 30 977) - 1,275,258 75 $ 1,706,712 100		December 31, 2024 Amount `％` $ 433,333 24 221,210 12 2,780 - 116,613 6 2,774 - 106,003 6 26,222 2 1,056 - 909,991 50 524,359 29 210,548 11 18,391 1 60,253 3 143 - 729 - 75,071 4 5,176 - 28,203 2 922,873 50 $ 1,832,864 100 $ 44,432 3 20 - 335,121 18 122,391 7 11,441 1 6,450 - 36,185 2 556,040 31 5,642 - 11,985 1 4,101 - 21,728 1 577,768 32 699,612 38 62,361 3 190,121 11 3,480 - 298,168 16 491,769 27 1,354 - 1,255,096 68 $ 1,832,864 100	December 31, 2024 Amount `％` $ 433,333 24 221,210 12 2,780 - 116,613 6 2,774 - 106,003 6 26,222 2 1,056 - 909,991 50 524,359 29 210,548 11 18,391 1 60,253 3 143 - 729 - 75,071 4 5,176 - 28,203 2 922,873 50 $ 1,832,864 100 $ 44,432 3 20 - 335,121 18 122,391 7 11,441 1 6,450 - 36,185 2 556,040 31 5,642 - 11,985 1 4,101 - 21,728 1 577,768 32 699,612 38 62,361 3 190,121 11 3,480 - 298,168 16 491,769 27 1,354 - 1,255,096 68 $ 1,832,864 100
			Amount $ 181,747 343,729 755 129,433 4,429 100,131 15,718 1,255 777,197 550,487 207,374 13,525 59,629 309 620 88,651 8,920 - 929,515 $ 1,706,712 $ 30,580 3 213,057 120,582 11,622 7,179 37,824 420,847 10 6,496 4,101 10,607 431,454 699,612 62,361 197,382 - 316,880 514,262 977) 1,275,258 $ 1,706,712			Amount $ 433,333 221,210 2,780 116,613 2,774 106,003 26,222 1,056 909,991 524,359 210,548 18,391 60,253 143 729 75,071 5,176 28,203 922,873 $ 1,832,864 $ 44,432 20 335,121 122,391 11,441 6,450 36,185 556,040 5,642 11,985 4,101 21,728 577,768 699,612 62,361 190,121 3,480 298,168 491,769 1,354 1,255,096 $ 1,832,864
		(

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

FORTUNE INFORMATION SYSTEMS CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

OPERATING REVENUES (Notes 16 and 22) OPERATING COSTS (Notes 8, 17 and 22) GROSS PROFIT FROM OPERATIONS OPERATING EXPENSES (Notes 17 and 22) OPERATING INCOME NON-OPERATING INCOME AND EXPENSES`（`Note 17 and 22`）` Interest income Other income Other gains and losses, net Finance costs Share of profit or loss of subsidiaries accounted for using the equity method (Note 9) Total non-operating income and expenses INCOME BEFORE INCOME TAX INCOME TAX EXPENSE (Note 18) NET INCOME OTHER COMPREHENSIVE INCOME (LOSS) （Note 14 and 18） Items that will not be reclassified subsequently to profit or loss: Remeasurements of defined benefit plans Income tax related to items that will not be reclassified subsequently to profit or loss Items that may be reclassified subsequently to profit or loss: Exchange differences arising on translation of foreign operations Other comprehensive income, net of income tax TOTAL COMPREHENSIVE INCOME EARNINGS PER SHARE (NT$, Note 19) Basic earnings per share Diluted earnings per share		2025		`％` 100 89 11 8 3 - 2 - - 2 4 7 1 6 - - - - 6		2024
						Amount $ 1,243,701 1,087,734 155,967 114,126 41,841 1,676 10,239 1,799 502 ) 28,145 41,357 83,198 16,333 66,865 $ 7,180 1,435 ) 4,834 10,579 $ 77,444 $ 0.96 $ 0.95		`％`
					( (			100 87 13 9 4 - 1 - - 2 3 7 2 5 1 - - 1 6

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

FORTUNE INFORMATION SYSTEMS CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars)

Others

C a p i t a l St o c k-		Earnings	Unappropriated Earnings $ 289,498 ( 7,770 ) ( 201 ) ( 55,969 ) 66,865 5,745 72,610 298,168 ( 7,261 ) 3,480 ( 62,966 ) 87,509 ( 2,050) 85,459 $ 316,880		Total Equity
Shares (In Thousands) 69,961 - - - - - - 69,961 - - - - - - 69,961	Legal Capital Reserve $ 182,351 7,770 - - - - - 190,121 7,261 - - - - - $ 197,382	SpecialCapital Reserve $ 3,279 - 201 - - - - 3,480 - ( 3,480 ) - - - - $ -
		(	( ( ( ( (	( (	$ 1,233,621 - - 55,969 ) 66,865 10,579 77,444 1,255,096 - - 62,966 ) 87,509 ( 4,381) 83,128 $ 1,275,258

FORTUNE INFORMATION SYSTEMS CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax Adjustments for: Depreciation expense Amortization expense Expected credit loss Finance costs Interest income Share of gain of subsidiaries accounted for using the equity method Gain on disposal of non-current assets held for sale Reversal of write-down of inventories Loss (gain) on foreign exchange, net Changes in operating assets and liabilities Contract assets Notes receivable Accounts receivable Other receivables Inventories Prepayments Other current assets Net defined benefit assets Contract liabilities Notes payable Accounts payable Other payables Other current liabilities Cash (used in) generated from operations Interest received Interest paid Income taxes paid Net cash (used in) generated from operating activities	2025 $ 99,575 12,029 853 15 1,075 ( 2,895 ) ( 30,459 ) - ( 543 ) 9 ( 122,519 ) 2,025 ( 16,579 ) ( 1,655 ) 5,408 10,504 ( 199 ) 28,203 ( 13,852 ) ( 17 ) ( 122,064 ) ( 1,809 ) 1,639 ( 151,256 ) 2,895 ( 1,075 ) ( 19,458) ( 168,894)	2024
		$ 83,198 12,399 768 727 502 ( 1,676 ) ( 28,145 ) ( 1,440 ) ( 509 ) ( 221 ) 58,295 ( 1,895 ) 4,153 35,844 ( 39,372 ) 4,103 968 ( 260 ) ( 5,412 ) 41,124 ( 6,817 ) 22,649 178,983 1,676 ( 502 ) ( 11,246) 168,911

(Continued)

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FORTUNE INFORMATION SYSTEMS CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from the disposal of non-current assets held for sale Acquisition of property, plant and equipment Decrease (increase) in refundable deposits Acquisitions of Intangible assets Dividends received Net cash (used in) generated from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase in short-term bills payable Decrease in short-term bills payable Repayment of the principal portion of lease liabilities Decrease in other non-current liabilities Cash dividends paid Net cash used in financing activities EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD CASH AND CASH EQUIVALENTS AT END OF THE PERIOD	2025 $ - ( 185 ) ( 13,580 ) ( 729 ) 2,000 ( 12,494) 180,000 ( 180,000 ) ( 7,223 ) - ( 62,966) ( 70,189) ( 9) ( 251,586 ) 433,333 $ 181,747	2024
		$ 4,695 ( 2,758 ) 2,929 ( 357 ) 24,748 29,257 240,000 ( 240,000 ) ( 7,321 ) ( 29 ) ( 55,969) ( 63,319) 221 135,070 298,263 $ 433,333

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

(Concluded)

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FORTUNE INFORMATION SYSTEMS CORPORATION

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. GENERAL

Fortune Information Systems Corp. (hereinafter referred to as the "Company") was established on April 11, 1977 in Taipei City. Its main business activities include: (1) buying, selling, leasing and repairing office machines, office automation equipment, computers and other information equipment, computer peripherals, microfilm equipment, devices, and their parts, accessories and supplies; (2) system analysis and programming of computer and other information software; (3) data processing services for clients, etc.

The Company's shares were listed on the Taipei Exchange since December 4, 1999 。 In September 17, 2001 ， its shares were transferred to list on the Taiwan Stock Exchange.

As of December 31, 2025, the Company has four branches located in Taoyuan, Hsinchu, Taichung, and Kaohsiung.

WPG Holdings Co., Ltd. became the ultimate parent company of the Company through a public tender offer in April 2025, and as of December 31, 2025, held 47.67% of the Company's shares.

The parent company only financial statements are presented in the Company’s functional currency, the New Taiwan dollar.

2. APPROVAL OF THE FINANCIAL STATEMENTS

The Board of Directors approved the parent company only financial statements on March 6, 2026.

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

a. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, “IFRS Accounting Standards”) endorsed and issued into effect by the Financial Supervisory Commission (FSC)

The initial application of the amendments to the IFRS Accounting Standards endorsed and issued into effect by the FSC did not have a material impact on the accounting policies of the Company and its subsidiaries (collectively as the “Company”).

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b. The IFRS Accounting Standards endorsed by the FSC for application starting from 2026.

Effective Date New IFRSs Announced by IASB Amendments to IFRS 9 and IFRS 7 January 1, 2026 “Amendments to the Classification and Measurement of Financial Instruments” Amendments to IFRS 9 and IFRS 7 January 1, 2026 “Contracts Referencing Nature–dependent Electricity” Annual Improvements to IFRS January 1, 2026 Accounting Standards - Volume 11 IFRS 17 “Insurance Contracts”(including January 1, 2023 the amendments issued in 2020 and 2021)

As of the date the parent company only financial statements were authorized for issue, the Company had assessed that the application of above standards would not have a material impact on the Company’ s financial position and financial performance.

c. The IFRS Accounting Standards in issue by IASB but not yet endorsed and issued into effect by the FSC

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

Note 1: Unless stated otherwise, the above IFRS Accounting Standards are effective for annual reporting periods beginning on or after their respective effective dates.

Note 2: On September 25, 2025, the FSC announced that IFRS 18 will take effect starting from January 1, 2028. If early adoption is needed, domestic entities could elect to apply IFRS 18 for an arlier period after the endorsement of IFRS 18 by the FSC.

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IFRS 18 “Presentation and Disclosures in Financial Statements”

IFRS 18 will supersede IAS 1” Presentation of Financial Statements”. The main changes comprise:

⚫ To classify items of income and expenses presented in the statement of profit or loss into the operating, investing, financing, income taxes and discontinued operations categories, the Company shall assess whether it has specified main business activities of investing in particular types of assets and providing financing to customers.
⚫ The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.
⚫ Provides guidance to enhance the requirements of aggregation and disaggregation: The Company shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Company shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Company labels items as ‘other’ only if it cannot find a more informative label.
⚫ Disclosures on Management-defined Performance Measures (MPMs): When in public communications outside financial statements and communicating to users of financial statements management’s view of an aspect of the financial performance of the Company as a whole, the Company shall disclose related information about its MPMs in a single note to the financial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards and the income tax and non -controlling interests effects of related reconciliation items.

In addition, the following consequential amendments have been made to IAS

7 “Statement of Cash Flows”:
⚫ The Company shall use operating profit or loss as the starting point when presenting cash flows from operating activities under the indirect method.
⚫ Interest and dividends received by the Company shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. However, if, after assessment, the Company has a specific main operating activity, it shall determine how to classify dividends received, interest received and interest paid in the statement
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of cash flows by referring to how it classifies dividend income, interest income and interest expense in the statement of profit or loss. The total of each of these cash flows shall be classified in a single category in the statement of cash flows.

Except for the above impact, as of the date the parent company only financial statements were authorized for financial statements were authorized for issue, the Company is continuously assessing the possible impacts of the above amended standards and interpretations on the Company financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

a. Statement of Compliance

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

b. Basis of Preparation

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

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

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

In preparing the individual financial statements, the Company accounts for its investments in subsidiaries using the equity method. In order to align the current year’s profit or loss, other comprehensive income, and equity attributable to owners of the Company in these individual financial statements with those presented in the consolidated financial statements, certain differences arising from accounting treatments under the individual basis and the consolidated basis have been adjusted through “Investments accounted for using the equity method,” “Share of profit or loss of subsidiaries accounted for

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using the equity method,” “Share of other comprehensive income of subsidiaries accounted for using the equity method,” and the related equity items.

c. Current and Non-current Assets and Liabilities

Current assets include:

(1) Assets held primarily for the purpose of trading;
(2) Assets expected to be realized within 12 months after the reporting period; and
(3) Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least one operating cycle after the reporting period.

Current liabilities include:

(1) Liabilities held primarily for the purpose of trading;
(2) Liabilities due to be settled within 12 months after the reporting period; and
(3) It does not have substantive rights to defer settlement of the liability for at least twelve months after the reporting period.

All other assets and liabilities are classified as non-current.

d. Foreign Currencies

When the Company prepares its financial statements, transactions denominated in currencies other than the Company’s functional currency (foreign currencies) are recorded by translating the foreign currency amounts into the functional currency using the exchange rate at the date of the transaction.

Foreign currency monetary items are translated using the closing exchange rate at each balance sheet date. Exchange differences arising from the settlement of monetary items or from the translation of monetary items at exchange rates different from those at which they were initially recorded are recognized in profit or loss in the period in which they arise.

Foreign currency non-monetary items measured at fair value are translated using the exchange rate at the date when the fair value is determined. Exchange differences arising from such translation are recognized in profit or loss for the period. However, if the changes in fair value are recognized in other comprehensive income, the related exchange differences are also recognized in other comprehensive income.

Foreign currency non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and are not retranslated subsequently.

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When preparing parent company only financial statements, the assets and liabilities of foreign operations (including subsidiaries whose functional currency is different from that of the parent company) are translated into New Taiwan Dollars using the exchange rate at each balance sheet date. Revenues and expenses are translated using the average exchange rate for the period, and the resulting exchange differences are recognized in other comprehensive income.

If the Company disposes of its entire interest in a foreign operation, the cumulative exchange differences related to that foreign operation are reclassified to profit or loss.

e. Inventories

Inventories are measured at the lower of cost or net realizable value. Inventories are assessed item by item, except those with similar characteristics which are assessed collectively. Net realizable value refers to 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. The weighted-average method is used in the calculation of cost.

f. Investment in subsidiaries

The Company accounts for its investments in subsidiaries using the equity method.

A subsidiary is an entity that is controlled by the Company.

Under the equity method, investments are initially recognized at cost. After the acquisition date, the carrying amount of the investment is adjusted to ref lect the Company’s share of the subsidiary’s profit or loss and other comprehensive income, as well as distributions received. In addition, changes in the subsidiary’s other equity items that are attributable to the Company are recognized proportionately based on the Company’s ownership interest.

Changes in the ownership interests in a subsidiary that do not result in a loss of control are accounted for as equity transactions. The difference between the carrying amount of the investment and the fair value of the consideration paid or received is recognized directly in equity.

When the Company’s share of losses in a subsidiary equals or exceeds its interest in the subsidiary (including the carrying amount of the investment accounted for using the equity method and any other long-term interests that, in substance, form part of the Company’s net investment in the subsidiary), the Company continues to recognize losses to the extent of its shareholding.

Unrealized gains or losses resulting from downstream transactions between the Company and its subsidiaries are eliminated in the individual financial

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statements. For upstream and lateral transactions, only the portion of gains or losses that is unrelated to the Company’s interest in the subsidiary is recognized in the individual financial statements.

g. Property, Plant and Equipment

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

Owned land is not depreciated.

Except for certain equipment, air conditioning systems, and renovation projects which are depreciated using the declining balance method, the Company depreciates all other assets on a straight-line basis over their estimated useful lives, with each significant component depreciated separately. The Company reviews the estimated useful lives, residual values, and depreciation methods at least at each financial year-end, and applies any changes in accounting estimates prospectively.

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

h. Investment properties

Investment properties are properties held to earn rental income, for capital appreciation, or both. Investment properties also include land held currently with an undetermined future use.

Owned investment properties are initially measured at cost, including transaction costs, and subsequently measured at cost less accumulated depreciation and accumulated impairment losses. The Company depreciates buildings and structures using the straight-line method, while other components continue to be depreciated using the declining balance method.

Property classified under property, plant and equipment is reclass ified as investment property when it ceases to be owner-occupied, using the carrying amount at the date of change in use.

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

i. Intangible Assets

Separately acquired intangible assets with finite useful lives are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment losses. These intangible assets are amortized on a straight-line basis over their estimated useful lives. The Company reviews the estimated useful lives, residual values, and amortization

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methods at least at the end of each financial reporting period and applies the effects of any changes in accounting estimates prospectively.

Upon derecognition of an intangible asset, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss.

j. Impairment of property, plant and equipment, investment properties, right-of-use assets, and intangible assets

At each balance sheet date, the Company assesses whether there is any indication that property, plant and equipment, investment properties, right-of-use assets, and intangible assets may be impaired. If any such indication exists, the recoverable amount of the asset is estimated. If it is not possible to estimate the recoverable amount of an individual asset, the Company determines the recoverable amount of the cash-generating unit (CGU) to which the asset belongs. Shared assets are allocated to the smallest group of CGUs on a reasonable and consistent basis.

The recoverable amount is the higher of fair value less costs of disposal and value in use. If the recoverable amount of an individual asset or a cash-generating unit (CGU) is less than its carrying amount, the carrying amount is reduced to its recoverable amount, and an impairment loss is recognized in profit or loss.

Inventory, property, plant and equipment, and intangible assets recog nized under customer contracts are first assessed for impairment in accordance with the impairment provisions for inventory and the policies outlined above. Subsequently, if the carrying amount of contract cost assets exceeds th e remaining amount of consideration expected to be received for the related goods or services, less the directly related costs, the excess is recognized as an impairment loss. The carrying amount of contract cost assets is then included in the cash-generating unit (CGU) to conduct the impairment assessment for the CGU.

If an impairment loss is subsequently reversed, the carrying amount of the asset, cash-generating unit (CGU), or contract cost asset is increased to its revised recoverable amount. However, the increased carrying amount shall not exceed the carrying amount that would have been determined had no impairment loss been recognized in prior years, after adjusting for amortization or depreciation. A reversal of an impairment loss is recognized in profit or loss.

k. Financial Instruments

Financial assets and financial liabilities are recognized in the parent company only balance sheets when the Company becomes a party to the contractual provisions of the instruments.

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Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss (FVTPL)) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition.

1) Financial assets

The Company adopts trade-date accounting to recognize and derecognize financial assets.

a) Measurement category

Financial assets are classified into the following categories: Financial assets at amortized cost, and debt instrument investments measured at fair value through other comprehensive income (FVOCI).

i. Financial assets at amortized cost

Financial assets that meet the following conditions are subsequently measured at amortized cost:

i) The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

ii) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, Time deposits with original maturities of more than three months, notes and accounts receivable(including non-current), other receivables, refundable deposits, are measured at amortized cost, which equal to gross carrying amount determined by the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

Interest income is calculated by applying the effective interest rate to the amortized cost of the financial asset.

Cash equivalents include time deposits with original maturities within 3 months from the date of acquisition, which are highly liquid, readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These cash equivalents are held for the purpose of meeting short-term cash commitments.

ii Debt instrument investments measured at fair value through other comprehensive income (FVOCI)
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i) The financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and
ii) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Debt instrument investments measured at fair value through other comprehensive income (FVOCI) are measured at fair value. Changes in the carrying amount that relate to interest income calculated using the effective interest method, foreign exchange gains or losses, and impairment losses or reversals are recognized in profit or loss. Other changes in fair value are recognized in other comprehensive income and are reclassified to profit or loss upon disposal of the investment.

b) Impairment of financial assets and contract assets

The Company recognizes a loss allowance for expected credit losses (ECLs) on financial assets at amortized cost (including notes and accounts receivables) , Debt instrument investments measured at fair value through other comprehensive income (FVOCI), contract assets.

The loss allowances for notes and accounts receivables, contract assets are measured at an amount equal to lifetime ECLs. For other financial assets, when the credit risk on the financial instrument has not increased significantly since initial recognition, a loss allowance is recognized at an amount equal to 12-month ECLs. If, on the other hand, there has been a significant increase in credit risk since initial recognition, a loss allowance is recognized at an amount equal to lifetime ECLs.

ECLs reflect the weighted average of credit losses with the respective risks of a default occurring as the weights. Lifetime ECLs represent the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECLs represent the portion of lifetime ECLs that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.

For the purpose of internal credit risk management, and without consideri ng any collateral held, the Company considers a financial asset to be in default when any of the following conditions are met:

i. Internal or external information indicates that the debtor is unlikely to repay its obligations in full.
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ii. The financial asset is more than one year past due, unless there is reasonable and supportable information demonstrating that a longer default criterion is more appropriate.

Impairment losses on all financial assets are recognized by reducing the carrying amount through an allowance account, except for debt instrument investments measured at fair value through other comprehensive income (FVOCI), for which the allowance is recognized in other comprehensive income and does not reduce the carrying amount of the asset.

c) Derecognition of financial assets

The Company derecognizes financial assets only when the contractual rights of the cash flows from the asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset t o another party.

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or los s. On derecognition of a debt instrument investment measured at fair value through other comprehensive income (FVOCI), the difference between its carrying amount and the total of the consideration received and any cumulative gain or loss previously recognized in other comprehensive income is recognized in profit or loss.

2) Equity instruments

Equity instruments issued by the Company are classified as equity based on the substance of the contractual arrangements and the definitions of an equity instrument.

Equity instruments issued by the Company are recognized at the amount of consideration received, net of directly attributable transaction costs.

3) Financial liabilities
a) Recognition

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

b) Derecognition of financial liabilities

The difference between the carrying amount of a financial liability derecognized and the consideration paid is recognized in profit or loss.

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l. Provisions

Provisions are recognized based on the best estimate of the expenditure required to settle the obligation at the balance sheet date, taking into account the risks and uncertainties surrounding the obligation. Provisions are measured at the present value of the estimated cash flows required to settle the oblig ation.

Warranty obligations under sales contracts are recognized at the time the related revenue is recognized, based on management’s best estimate of the expenditure required to settle the Company’s obligations.

m. Revenue Recognition

After identifying the performance obligations in a customer contract, the Company allocates the transaction price to each performance obligation and recognizes revenue when the performance obligation is satisfied.

1) Revenue from sale of goods

Revenue from the sale of goods is derived from the sales of software, hardware, and electronic equipment products. Revenue and contract assets are recognized at the point in time when control of the goods is transferred to the customer, which occurs upon shipment, as the customer has agreed-upon pricing and rights to use the goods, bears the primary responsibility for resale, and assumes the risk of obsolescence. Contract assets are subsequently reclassified as trade receivables when the remaining performance obligations are fulfilled. Advance payments for product sales are recognized as contract liabilities until the products are delivered.

2) Revenue from the provision of services

Service revenue is derived from software and hardware system integration services and maintenance services.

As the Company performs the services, the customer simultaneously receives and consumes the benefits of the performance, and therefore, the related revenue is recognized over time as the services are provided. Since the contract stipulates that payment is made upon customer acceptance, the Company recognizes a contract asset during service performance, which is reclassified as a trade receivable upon completion of acceptance.

n. Leases

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

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1) The Company as lessor

Leases in which the lessee assumes substantially all of the risks and rewards of ownership are classified as finance leases. All other leases are classified as operating leases.

Under operating leases, lease payments, net of lease incentives, are recognized as income on a straight-line basis over the lease term.

2) The Company as lessee

The Company recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for short-term leases and low-value asset leases accounted for applying a recognition exemption where lease payments are recognized as expenses on a straight-line basis over the lease terms.

Right-of-use assets are initially measured at cost, which includes t he initial amount of the lease liability. Subsequently, they are measured at cost less accumulated depreciation. Right-of-use assets are presented separately in the parent company only balance sheet.

Right-of-use assets are depreciated on a straight-line basis from the commencement date of the lease to the earlier of the end of the asset’s useful life or the end of the lease term.

Lease liabilities are initially measured at the present value of lease payments, including fixed payments. If the interest rate implicit in the lease is readily determinable, lease payments are discounted using that rate. If not, the lessee’s incremental borrowing rate is used.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, and interest expense is allocated over the lease term. If changes in the lease term or in an index or rate used to determine lease payments result in a change in future lease payments, the Company remeasures the lease liability and adjusts the right-of-use asset accordingly. However, if the carrying amount of the right-of-use asset has been reduced to zero, any remaining remeasurement amount is recognized in profit or loss. Lease liabilities are presented separately in the parent company only balance sheet.

o. Borrowing costs

Borrowing costs are recognized as an expense in the period in which they are incurred.

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p. Employee Benefits

1) Short-term employee benefits

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related services.

2) Post-employment benefits

Obligations for contributions to defined contribution pension plans are recognized as an expense in profit or loss in the periods during which services are rendered by employees.

The defined benefit costs (including service cost, net interest, and remeasurement) of defined benefitplan use the projected unit credit method for the actuarial valuation. Service cost (including current service cost) and net interest on the net defined benefit liability (asset) are recognized under employee benefit expense as they occur. Remeasurement (including actuarial gains and losses and the return on plan assets, excluding amounts included in net interest) is recognized in other comprehensive income (loss) in retained earnings as it occurs, and is not reclassified to profit or loss subsequently.

Net defined benefit asset is the surplus of the contributions in a defined benefit retirement plan. The net defined benefit asset shall not exceed the present value of any future refunds from the plan or reductions in future contributions.

q. Income Tax

Income tax expense represents the sum of the tax currently payable and deferred tax.

1) Current taxes

Income tax payable (refundable) is based on taxable profit (loss) for the year determined in accordance with the applicable tax laws of each tax jurisdiction.

An additional surtax on undistributed earnings, computed in accordance with the Income Tax Act of the ROC, is recognized in current taxes in the year of approval by a stockholders’ meeting resolution.

Adjustments to income tax payable for prior years are included in current income tax.

2) Deferred taxes

Deferred income tax is calculated based on the temporary differences between the carrying amounts of assets and liabilities in the financial statements and their tax bases used in the computation of taxable income.

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Deferred income tax liabilities are generally recognized for all taxable temporary differences, whereas deferred income tax assets are recognized to the extent that it is probable that taxable profits will be available against which the deductible temporary differences can be utilized.

Deferred income tax liabilities are recognized for all taxable t emporary differences related to investments in subsidiaries, except to the extent that the Company is able to control the timing of the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred income tax assets related to such investments are recognized only to the extent that it is probable that sufficient taxable profits will be available to utilize the temporary differences and that the temporary differences are expected to reverse in the foreseeable future.

The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow the asset to be recovered in whole or in part. Previously unrecognized deferred income tax assets are also reviewed at each balance sheet date and recognized to the extent that it has become probable that future taxable profits will be available against which the assets can be utilized.

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

3) Current and deferred income tax

Current and deferred income tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In such cases, the current and deferred income tax is recognized in other comprehensive income or directly in equity, respectively.

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

When adopting accounting policies, the management of the Company must make judgments, estimates, and assumptions based on historical experience and other relevant factors for information that is not readily available from other sources. The resulting accounting estimates and assumptions might be different from the actual results.

When the Company is developing significant accounting estimates, it incorporates the potential impact into considerations for significant estimates related to cash flow projections, growth rates, discount rates, profitability, and

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other relevant factors. The management will continuously review estimates and underlying assumptions.

The accounting policies, estimates, and underlying assumptions adopted by the Group have been assessed by management, and no significant accounting judgments, estimates, or assumptions with uncertainty were identified.

6. CASH AND CASH EQUIVALENTS

		December 31, 2025	December 31, 2025	December 31, 2025	December 31, 2024	December 31, 2024
Cash on hand and revolving
funds			$	381	$	381
Checking accounts and
demand deposits				71,543		243,607
Cash equivalents
Repurchase agreements				109,823		189,345
			$	181,747	$	433,333
Interest rate range during reporting period
		December 31, 2025			December 31, 2024
Repurchase agreements		1.42%`～`1.45%			1.46%`～`1.50%
7. NOTES RECEIVABLE,	ACCOUNTS			RECEIVABLE	AND OTHER
RECEIVABLES
		December 31, 2025			December 31, 2024
Notes receivable
Gross carrying amount at amortized
cost		$		755	$	2,780
Accounts receivable
Gross carrying amount at amortized
cost		$	139,286		$	122,972
Less: Unrealized interest income		(		789 )	(	306 )
Less: Allowance for impairment	loss	(		144)	(	877)
		$	138,353		$	121,789
Current		$	129,433		$	116,613
Non-current		$		8,920	$	5,176

The average credit period of receivable was 60 to 120 days. In order to mitigate credit risk, the management of the Company has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure the recoverability of receivables. In addition, the Company reviews the recoverable amount of trade receivables at balance sheet dates to ensure that adequate allowance is provided for possible irrecoverable amounts. In this regard, the management believes the Company’s credit risk could be reasonably reduced.

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The Company provides for expected credit losses which permits the use of lifetime expected loss provision for all receivable. The expected credit losses on receivable are estimated using a provision matrix by reference to the past default experience of the debtor, the debtor’s cu rrent financial position, economic condition of the industry in which the debtor operates, as well as the GDP forecasts and industry outlook. According to loss patterns for different customer segment, the provision of loss allowance is based on past due status.

The Company writes off a trade receivable when there are evidences indicating that the counterparty is in severe financial difficulty and the trade receivable is considered uncollectible. For trade receivables that have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

The following table details the loss allowance of notes and receivables based on the Company’s provision matrix.

December 31, 2025

Gross carrying amount `（`including unrealized interest income`）` Loss allowance (Lifetime ECLs) Amortized cost		Not Past Due $ 134,260 144) $ 134,116		Overdue 1-60 days	Overdue 61-90 days	Overdue 61-90 days	Overdue 91-120 days	Overdue 91-120 days	O v e r d u e Over 120 days	O v e r d u e Over 120 days		Total
	(			$ 1,772 - $ 1,772		$ - - $ -		$ - - $ -		$ 3,220 - $ 3,220	(	$ 139,252 144) $ 139,108

December 31, 2024

Gross carrying amount `（`including unrealized interest income`）` Loss allowance (Lifetime ECLs) Amortized cost		Not Past Due		Overdue 1-60 days $ 2,746 - $ 2,746		Overdue 61-90 days $ 63 - $ 63	Overdue 91-120 days $ - - $ -	O v e r d u e Over 120 days $ 1,766 ( 758) $ 1,008		Total
		$ 120,871 ( 119) $ 120,752						(	(	$ 125,446 877) $ 124,569

The movements of the loss allowance of receivable were as follow:

Balance at January 1 Add: Net remeasurement of (reversal) loss allowance Less:Write-off Balance at December 31		For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2025 $ 877 15 ( 748 ) $ 144		2024
				$ 150 727 - $ 877

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8. INVENTORIES

December 31, 2025 December 31, 2024 Merchandise $ 100,131 $ 106,003

For the years ended December 31, 2025 and 2024, the cost of goods sold related to inventories amounted to $1,009,763 thousand, $774,729 thousand, respectively, which including the inventory reversal of write-down totaling $543 thousand and $509 thousand, respectively. The reversal of the write-down of inventories to net realizable value was attributable to the sale of those inventories previously written down.

9. SUBSIDIARIES

Investee subsidiary Fortune Information System(Int'l) LTD.（FIS HK） SBAS (HK) LTD.（SBAS） Fortune Technology System Corp. （FTSC）	December 31, 2025 $ 30,150 17,722 502,615 $ 550,487	December 31, 2024	December 31, 2024
			$ 34,858 18,031 471,470 $ 524,359

On reporting day, percentage of ownership and voting rights held by the Company are as below:

ompany are as below:
FIS HK SBAS FTSC	% of Ownership
	December 31, 2025 100% 100% 100%	December 31, 2024
		100% 100% 100%

The company's board of directors resolved to approve the dissolution and liquidation of its subsidiaries, HK FIS and SBAS on May 9, 2024.

10. PROPERTY, PLANT AND EQUIPMENT

Cost Balance, January 1, 2025 Additions Disposals Reclassification Balance, December 31, 2025 Accumulated depreciation andimpairment Balance, January 1, 2025 Depreciation Disposals		Land		Buildings $ 122,531 - - - $ 122,531 $ 53,222 1,679 -	Miscellaneous equipment $ 48,913 185 ( 1,290 ) 709 $ 48,517 $ 44,190 2,397 ( 1,290 )		Total
		$ 136,516 - - - $ 136,516 $ - - -			( (	( (	$ 307,960 185 1,290 ) 709 $ 307,564 $ 97,412 4,076 1,290 )

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Reclassification Balance, December 31, 2025 Carrying amount, December 31, 2025 Cost Balance, January 1, 2024 Additions Disposals Reclassification Balance, December 31, 2024 Accumulated depreciation and impairment Balance, January 1, 2024 Depreciation Disposals Reclassification Balance, December 31, 2024 Carrying amount, December 31, 2024		Land - $ - $ 136,516 Land $ 137,657 - - 1,141) $ 136,516 $ - - - - $ - $ 136,516		Buildings - $ 54,901 $ 67,630 Buildings $ 125,134 - - 2,603) $ 122,531 $ 51,901 1,810 - 489) $ 53,222 $ 69,309	Miscellaneous equipment ( 8) $ 45,289 $ 3,228 Miscellaneous equipment $ 45,371 2,758 ( 49 ) 833 $ 48,913 $ 41,581 2,658 ( 49 ) - $ 44,190 $ 4,723		Total
						(	8) $ 100,190 $ 207,374 Total
	(		( (		( (	( ( ( (	$ 308,162 2,758 49 ) 2,911) $ 307,960 $ 93,482 4,468 49 ) 489) $ 97,412 $ 210,548

No impairment loss was recognized during the years ended December 31, 2025 and 2024.

The methods that property, plant and equipment are depreciated over the estimated useful life of the asset are as below:

Buildings Primary building Air conditioning systems and renovation Miscellaneous equipment	Depreciation method Straight-line basis Fixed-percentage-on- declining-base Fixed-percentage-on- declining-base	Useful life
		50-60 years 15-20 years 3-25 years

As of December 31, 2025 and 2024, there are no cases of mortgages or pledges on property, plant and equipment.

11. LEASE ARRANGEMENTS

a. Right-of-use assets

ht-of-use assets
Carrying amount Buildings Machinery and equipment	December 31, 2025 $ 12,236 1,289 $ 13,525	December 31, 2024
			$ 17,724 667 $ 18,391

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Additions to right-of-use assets Depreciation charge for right-of-use assets Land Buildings Machinery and equipment	December 31, 2025 $ 2,463 $ - 6,268 1,061 $ 7,329	December 31, 2024	December 31, 2024
			$ 16,337 $ 424 6,343 500 $ 7,267

Except for the recognized depreciation, the Company did not have significant sublease or impairment of right-of-use assets during the years ended December 31, 2025 and 2024.

b. Lease liabilities

se liabilities
Carrying amount Current Noncurrent	December 31, 2025 $ 7,179 $ 6,496	December 31, 2024
			$ 6,450 $ 11,985

Range of discount rates for lease liabilities was as follows:

Buildings Machinery and equipment	December 31, 2025 1.19%`～`2.71% 1.90%`～`1.96%	December 31, 2024
		0.88%`～`1.96% 1.90%

c. Material lease-in activities and terms

The significant leasing items of the Company involve renting land and buildings for use as offices and warehouses, with lease terms ranging from 3 to 5 years. The Company does not have bargain purchase options to acquire the leasehold land and buildings at the end of the lease terms. In addition, the Company applies the recognition exemption to leases of buildings and office equipment as short-term lease and certain photocopier qualifying as low-value asset leases and does not recognize right-of-use assets and lease liabilities for these leases. Other material information for leases is as follow:

		FortheYear Ended	December31	December31
				2024
	( Land		(	$ 1,849 $ 9,215) Total $ 72,128

$		$ 37,743

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Accumulated depreciation Balance, January 1, 2025 Depreciation Balance, December 31, 2025 Carrying amount, December 31, 2025 For the Year Ended December 31, 2024 Cost Balances at the beginning and end of the year Accumulated depreciation Balance, January 1, 2024 Depreciation Balance, December 31, 2024 Carrying amount, December 31, 2024		Land $ - - $ - $ 34,385 $ 34,385 $ - - $ - $ 34,385		Buildings $ 11,875 624 $ 12,499 $ 25,244 $ 37,743 $ 11,211 664 $ 11,875 $ 25,868		Total
						$ 11,875 624 $ 12,499 $ 59,629 $ 72,128 $ 11,211 664 $ 11,875 $ 60,253

Depreciation expenses are recognized according to depreciation methods and useful life as follow:

and useful life as follow:
Primary building Air conditioning systems and renovation	Depreciation method Straight-line basis Fixed-percentage-on- declining-base	Useful life
		50 years 5-15 years

The fair value of investment properties was measured using Level 3 inputs by an independent appraiser, Mr. Chung-Hsien Lee, as of each balance sheet date. The valuation was performed using the comparative approach and the direct capitalization method under the income approach. Significan t unobservable inputs used in the valuation include the discount rate. The resulting fair values are as follows:

Fair value Discount rate	December 31, 2025 $ 272,307 1.40%	December 31, 2024	December 31, 2024
			$ 265,290 1.65%

All investment properties of the Company are owned right and interest.

13. OTHER LIABILITIES

HER LIABILITIES
Salaries and bonus payable Payable for receipts under custody Accrued annual leave payable Insurance payable Others	December 31, 2025 $ 65,227 24,390 12,552 4,601 13,812 $ 120,582	December 31, 2024
			$ 51,375 38,265 12,642 4,171 15,938 $ 122,391

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14. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

The pension scheme applicable to the Company, in accordance with the Labor Pension Act, is a government-managed defined contribution plan. Contributions equal to 6% of employees' monthly wages are made to individual pension accounts at the Bureau of Labor Insurance.

b. Defined benefit plans

The pension plan adopted by the Company, in accordance with the Labor Standards Act of the Republic of China (Taiwan), is a government -managed defined benefit plan. Retirement benefits are calculated based on the employees’ years of service and the average monthly salary over the six months prior to the approved retirement date. The Company contributes 2% of total monthly wages to a dedicated account with the Bank of Taiwan, in the name of the Labor Retirement Reserve Supervisory Committee. Before the end of each fiscal year, if the account balance is estimated to be i nsufficient to cover the pension payments for employees expected to meet retirement criteria in the following year, the Company is required to make a supplementary contribution for the shortfall by the end of March of the following year. The dedicated account is managed by the Bureau of Labor Funds, Ministry of Labor, and the Company does not have the right to influence the investment strategy.

The Company reached an agreement in October 2025 with employees covered under the old pension scheme, in accordance with the Labor Standards Act and the Labor Pension Act, to settle their years of service under the old system. Accordingly, no remeasurement of the defined benefit plan was performed in 2025.

The amounts recognized in the parent company only balance sheet in respect of the defined benefit plan are as follows:

the defined benefit plan are as follows:
Present value of defined benefit obligations Fair value of plan assets Net defined benefit assets	December31,2024
	( (	$ 15,818 44,021) $ 28,203)

The movements in the net defined benefit asset are as follows

Balance, January 1, 2024 Interest expense (income) Recognized in profit or loss Remeasurements Return on plan assets (excluding amounts included in net interest	Present value of defined benefit obligations $ 19,628 134 134 -	Fair value of plan assets ($ 40,391) ( 394) ( 394) ( 7,470 )	Net defined benefit assets
			($ 20,763) ( 260) ( 260) ( 7,470 )

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Actuarial loss (gain) Changes in financial assumptions Experience adjustments Recognized in other comprehensive income Payments from plan assets Balance, December 31, 2024	Present value of defined benefit obligations ( 326 ) 616 290 ( 4,234) $ 15,818	Fair value of planassets - - ( 7,470) 4,234 ($ 44,021)	Net defined benefit assets
		( (	( 326 ) 616 ( 7,180) - ($ 28,203)

The Company is exposed to the following risks under the pension scheme governed by the Labor Standards Act:

1) Investment Risk: The Bureau of Labor Funds, Ministry of Labor, manages the labor retirement fund through both direct management and outsourcing, investing the fund in domestic (and foreign) equity securities, debt securities, and bank deposits, among other assets. However, the return on the Company’s plan assets is calculated based on an amount not lower than the interest rate of a 2-year fixed deposit at a local bank.
2) Interest Rate Risk: A decrease in the interest rate on government bonds would increase the present value of the defined benefit obligation. However, the return on the debt investments within the plan assets would also increase, partially offsetting the impact on the net defined benefit asset.
3) Salary Risk: The calculation of the present value of the defined benefit obligation is based on the future salaries of plan members. Therefore, an increase in the salaries of plan members will result in an increase in the present value of the defined benefit obligation.

The present value of the Company's defined benefit obligation is actuarially determined by a qualified actuary. The significant assumptions as of the measurement date are as follows:

ent date are as follows:
Discount rate Expected salary growth rate	December 31, 2024
	1.50% 3.00%

If the significant actuarial assumptions were to change by a reasonable possible amount, with all other assumptions held constant, the effect on the present value of the defined benefit obligation would be as follows:

December 31, 2024

Discount rate Increase 0.25% ( Decrease 0.25% Expected salary growth rate Increase 0.25% Decrease 0.25% (	$ 317) $ 326 $ 316 $ 309)

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Since actuarial assumptions may be interrelated, the likelihood of a change in a single assumption alone is low. Therefore, the sensitivity analysis above may not fully reflect the actual changes in the present value of the defined benefit obligation.

ligation.
Expected contributions within one year Average duration of the defined benefit obligation	December 31, 2024
		$ 487 8.1 years

15. EQUITY

a. Common shares

TY mon shares
Number of shares authorized (in thousand) Shares authorized Number of shares issued and fully paid (in thousand) Shares capital ital surplus Arising from issuance of common shares Arising from treasury share transactions	December 31, 2025 107,000 $ 1,070,000 69,961 $ 699,612 December 31, 2025 $ 37,105 25,256 $ 62,361	December 31, 2024
		107,000 $ 1,070,000 69,961 $ 699,612 December 31, 2024
			$ 37,105 25,256 $ 62,361

b. Capital surplus

Capital surplus generated from the excess of the issue price over the par value of capital stock(including the issuance of common stock and treasury share transactions above face value, etc.), may used to offset a deficit, in addition, when the Company have no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital , however, when capital is allocated, it is limited to a certain percentage of the Company’s capital surplus and once a year.

c. Retained earnings and dividend policy

The Company’s Articles of Incorporation provide that appropriation for legal reserve should be made at 10% of annual net income, less any accumulated deficit. From the remainder of the net income, appropriation for special reserve will be made based on relevant laws and regulations. Any further remaining profits plus unappropriated earnings shall be distributed in accordance with the proposal submitted by the Board of Directors for approval at a stockholders’ meeting. For the policies on distribution compensation of employees, please refer to Note 17(f).

The Company is currently in the growth phase of its industry life cycle, and in order to consider the future funding needs of the Company and meet the needs of shareholders for cash inflows, if there are undistributed profits after

35 -

the annual settlement, not less than 60% of the net income shall be distributed as dividends to shareholders, of which cash dividends shall not exceed 50% of the total cash and stock dividends paid out during the year. However, when the earnings per share for the year are less than NT$ 3, the proportion of cash dividends paid out may be increased to a maximum of 100%.

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

The Company appropriated a special legal reserve upon its initial adoption of IFRSs. In accordance with the relevant regulations governing the appropriation of special legal reserves, if a company has already appropriated a special legal reserve upon its initial adoption of IFRSs, it shall appropriate an additional special legal reserve for the difference between the amount already appropriated and the net amount of other components of equity deducted. Subsequently, when the net amount of other components of equity deducted is reversed, the corresponding portion of the special legal reserve may be reversed and distributed as earnings.

The appropriation of earnings for 2024 and 2023, which was resolved by the Company’s shareholders’ meeting on June 30, 2025 and June 18, 2024, was as follows:

ows:
Legal reserve Special reserve Cash dividends	Appropriation of Earnings 2024 2023 $ 7,261 $ 7,770 ( 3,480 ) 201 62,966 55,969	Dividend Per Share (NT$)
	2024 $ 7,261 ( 3,480 ) 62,966	2024 $ 0.9	2023
			$ 0.8

The appropriation of earnings for 2025, which was proposed by the Board of Directors of the company was as follows:

Legal reserve Special reserve Cash dividends	Appropriation of Earnings $ 8,546 977 69,961	Dividend Per Share (NT$)
		$ 1.0

The proposed earnings distribution for 2025 is subject to approval at the Annual General Meeting of shareholders scheduled to be held on May 27, 2026

16. REVENUE

a. Contract balances

December 31, 2025 December 31, 2024 January 1, 2024

Accounts receivables (Note 7) Contract assets Contract liability	$ 138,353 $ 343,729 $ 30,580	$ 121,789 $ 221,210 $ 44,432	$ 126,669 $ 279,505 $ 49,844

36 -

The Company measures the loss allowance for contract assets at an amount equal to lifetime ECLs. The contract assets will be transferred to accounts receivable when the corresponding invoice is billed to the client, and the contract assets have substantially the same risk as the trade receivables. Therefore, the Company concluded that the expected loss rates for trade receivables can be applied to the contract assets.

Changes in contract assets and contract liabilities primarily result from differences between the timing of satisfying performance obligations and the timing of customer payments. During the current year, other than adjustments arising from the measurement of the percentage of completion, there were no significant changes.

b. Revenue from contracts with customers

nuefrom contracts with custom
Type of products or services Revenue from the sale of goods and system integration Revenue from rendering of services	FortheYear Ended	December31
	2025 $ 1,131,654 373,036 $ 1,504,690		2024
			$ 878,823 364,878 $ 1,243,701

17. NET INCOME

a. Other gains and losses

Net foreign exchange gain(loss) Gain on disposal of non-current assets held for sale		FortheYear Ended	December31	December31
		2025 $ 49 - $ 49		2024
				$ 359 1,440 $ 1,799

b. Interest income

rest income
Bank deposits Installment Accounts Receivable Interest Others ance costs Interest expense on lease liabilities Interest expense on bank loans Others	FortheYear Ended	December31
	2025 $ 2,398 418 79 $ 2,895 For the Year Ended		2024
		$ 1,306 288 82 $ 1,676 December 31
	2025 $ 321 729 25 $ 1,075		2024
			$ 61 441 - $ 502

c. Finance costs
37 -

d. Depreciation and amortization

reciation and amortization
Property, plant and equipment Right-of-use assets Investment property Other intangible assets Total An analysis of depreciation by function Operating costs Operating expenses An analysis of amortization by function Operating costs Operating expenses ployee benefits expenses Short-term employee benefits Salary Labor and health insurance Others Post-employment benefits(Note 14) Defined contribution plans Defined benefit plans Total employee benefits expenses An analysis of employee benefits expense by function Operating costs Operating expenses	FortheYear Ended	December31
	2025 $ 4,076 7,329 624 853 $ 12,882 $ 8,761 3,268 $ 12,029 $ 286 567 $ 853 For the Year Ended		2024
		$ 4,468 7,267 664 768 $ 13,167 $ 8,298 4,101 $ 12,399 $ 263 505 $ 768 December 31

	2025 $ 249,398 22,311 10,427 282,136 10,226 - 10,226 $ 292,362 $ 185,428 106,934 $ 292,362		2024
		(	$ 224,622 20,618 10,166 255,406 9,685 260) 9,425 $ 264,831 $ 169,098 95,733 $ 264,831

e. Employee benefits expenses

f. Compensation of employees

According to the Company’s articles of incorporation, the Company do not have to accrue remuneration of directors. The compensation of employees is accrued at the rate of 6% of net profit before income tax and before deduction of employee remuneration for the year. Pursuant to the amendment of the Securities and Exchange Act in August 2024, the Company’s shareholders approved a resolution in 2025 to amend the Articles of Incorporation, stipulating that, in the event the Company earns profit for the year, 6% of the current period’s profit before tax and before deduction of employe e remuneration shall be allocated as employee remuneration. Of the total amount of employee remuneration, not less than 40% shall be distributed to rank-and- file employees. However, where the Company has accumulated

38 -

deficits, the amount required to offset such deficits shall be retained in advance. Employees of the Company’s parent or subsidiaries who meet certain criteria may also be eligible to receive such remuneration. For the years ended December 31, 2025 and 2024, The estimate of compensation of employees was approved by the Board of Directors on March 6, 2026 and March 11, 2025, respectively, as follows:

For the Year Ended December 31

Compensation of employees			2025 Amount Estimate Rate(`％`) $ 6,356 6		2024
			Amount $ 6,356	Amount $ 5,310	Estimate Rate(`％`) 6

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

There is no difference between the actual amounts of employees’ compensation paid and amounts recognized in the parent company only financial statements for the years ended December 31, 2024 and 2023.

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

18. INCOME TAXES

a. The major components of income tax expense recognized in profit or loss are as follows:

ollows:
Current tax In respect of the period Income tax on unappropriated earnings Deferred tax In respect of the period Income tax expense recognized in profit or loss	(	FortheYear Ended	December31
		2025 $ 19,346 293 19,639 7,573) $ 12,066	2024
			$ 15,624 550 16,174 159 $ 16,333

The reconciliation between accounting income and income tax expense is as follows:

ows:
Profit before tax Income tax expense calculated at the statutory tax rate on profit before tax Tax-exempt income Income tax on unappropriated earnings Land value increment tax Unrecognized temporary differences	For the Year Ended	December31
		2024
		$ 83,198 $ 16,640 ( 5,814 ) 550 54 4,903

39 -

For the Year Ended December31 2025 2024 Adjustment to current income tax expense of prior years recognized in the current year - - Income tax expense recognized in profit or loss $ 12,066 $ 16,333 ome tax recognized in other comprehensive income(loss) FortheYear EndedDecember31 2025 2024 Current deferred tax Remeasurements from defined benefit plans $ 2,050 $ 1,435			For the Year Ended	December31	December31
					2024
			2025 $ 2,050		2024
					$ 1,435

b. Income tax recognized in other comprehensive income(loss)
c. Deferred income tax assets and liabilities

The movements in deferred income tax assets and liabilities are as follows: For the Year Ended December 31, 2025

Deferred tax assets Temporary difference Allowance for inventory write-down Deferred tax liability Temporary difference Unrealized foreign exchange gain Defined Benefit Retirement Plan			Opening Balance		Recognized in Profit or Loss ( $ 109 ) $ 9 ( 7,691) ($ 7,682)	Recognized in Other Comprehensive Income (Loss)	Recognized in Other Comprehensive Income (Loss)	Recognized in Other Comprehensive Income (Loss)			Closing Balance
			$ 729 $ 1 5,641 $ 5,642		(			$ - $ - 2,050 $ 2,050			$ 620 $ 10 - $ 10
					( (

For the Year Ended December 31, 2024

Deferred tax assets Temporary difference Allowance for inventory write-down Unrealized foreign exchange loss Deferred tax liability Temporary difference Unrealized foreign exchange gain Defined Benefit Retirement Plan		Opening Balance	Recognized in Profit or Loss ( $ 101 ) ( 4) ($ 105) $ 1 53 $ 54	Recognized in Other Comprehensive Income (Loss) $ - - $ - $ - 1,435 $ 1,435		Closing Balance
		$ 830 4 $ 834 $ - 4,153 $ 4,153				$ 729 - $ 729 $ 1 5,641 $ 5,642

40 -

d. Income tax examinations

The Company’s income tax returns have been assessed and approved by the tax authorities for all years up to and including the 2023 fiscal year.

19. EARNINGS PER SHARE

The earnings and weighted average number of common shares used for calculation of earnings per share were as follows:

Net income

FortheYear Ended	December31	December31
2025 $ 87,509 For the Year Ended		2024
	$ 66,865 December 31
2025 69,961 178 70,139		2024
		69,961 254 70,215

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

20. CAPITAL RISK MANAGEMENT

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

The capital structure of the Company consists of equity of the Company (comprising issued capital, reserves, retained earnings, and other equity).

The Company is not subject to any other external capital requirements.

41 -

21. FINANCIAL INSTRUMENTS

a. Fair value of financial instruments not measured at fair value

The management of the Company considers that the carrying amount of financial assets and financial liabilities, which are not measured at fair value, is close to their fair value.

b. Category of financial instruments

tegory of financial instruments
Financial assets Amortized cost`（`Note 1`）` Financial liabilities Amortized cost`（`Note 2`）`	December 31, 2025 $ 413,935 334,403	December 31, 2024
		$ 635,747 458,293

Note 1: The balance includes financial assets measured at amortized cost, which comprise cash and cash equivalents, note receivables, account receivables (including noncurrent), other receivables, and refundable deposits.
Note 2: The balance includes financial liabilities measured at amortized cost which comprise note payables, accounts payables, other payables and guarantee deposits.
c. Financial risk management objectives and policies

The main financial instruments of the Company include debt instrument investments, notes and account receivables, account payables, lo ans, and lease liabilities. The financial management department of the Company provides services for the business units, coordinates the operation of the domestic financial market, and supervises and manages financial risks related to the operation of the Company by analyzing the internal risk reports of the risks according to the level and scope of risks. Such risks include market risk (foreign exchange risk and interest rate risk), credit risk and liquidity risk.

(1) Market risk

The Company’s activities exposed it primarily to the financial risks of changes in foreign currency exchange rates and interest rates.

(a) Foreign currency risk

The Company had foreign financial instrument investments, which exposed the Company to exchange rate risk.

The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities of non-functional currency calculated at the end of the reporting period are set out in Note 25.

42 -

Sensitivity analysis

The Company was mainly exposed to USD fluctuations.

If the New Taiwan Dollar (the functional currency) appreciates or depreciates by 5% against the U.S. Dollar, the Company’s profit before tax for the years 2025 and 2024 would increase or decrease by $77 thousand and $26 thousand, respectively. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis included only outstanding foreign currency denominated monetary items, and adjusts their translation at the end of the reporting period for a 5% change in foreign currency rates. The sensitivity analysis related to foreign currency exchange rate risk mainly focuses on the calculation of foreign currency monetary items as of the reporting period end date.

(b) Interest rate risk

The Company was exposed to interest rate risk because borrowed funds at both fixed and floating interest rates. The risk is managed by the Company by maintaining an appropriate mix of fixed and floating rate borrowings. The Company regularly assesses its hedging activities to ensure they align with interest rate views and established risk preferences, in order to ensure the use of the most cost-effective hedging strategies.

The carrying amount of the Company’s financial assets and financial liabilities with exposure to interest rate risk at the end of the reporting period were as follows:

Fair value interest rate risk `－`Financial assets `－`Financial liabilities Cash flow interest rate risk `－`Financial assets	December 31, 2025 $ 118,743 13,675 22,405	December 31, 2024
		$ 189,345 18,435 20,814

Sensitivity analysis

If interest rates had been 5% higher/lower and all other variable s were held constant, the Company’s pre-tax profit for the years ended December 31, 2025 and 2024 would decrease/increase by $1,120 thousands and $1,041 thousands, respectively.

43 -

(2) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Company. As at the end of the reporting years, the Company’s maximum exposure to credit risk, which would cause a financial loss to the Company due to failure of counterparties to discharge an obligation and financial guarantees provided by the Company could arise from:

(a) The carrying amount of the respective recognized financial assets as stated in the parent company only balance sheets
(b) The amount of contingent liabilities in relation to finan cial guarantees issued by the Company.

The policy that the Company adopts is to only make transactions with reputable targets, and the Company will obtain full collateral when necessary so as to reduce the risk of financial loss owing to delinquency. The Company only transacts with entities that are rated the equivalent of investment grade and above. This information is supplied by independent rating agencies where available and, if not available, the Company uses other publicly available financial information and its own trading records to rate its major customers. The Company’s exposure and the credit ratings of its counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the risk management specialists annually.

To lower the credit risk, management of the merged company appoints a specific team to handle decisions on credit limits, credit appro val and other monitoring procedures to ensure that appropriate actions are taken to recover overdue receivables. In addition, the Company would review the recoverable amount of each receivables on the parent company only balance sheet dates to ensure that impairment loss is recognized for unrecoverable receivables. As a result, the Company's management concludes that the credit risk of the Company is significantly reduced.

The Company continuously evaluates the financial condition of accounts receivable customers and will purchase credit insurance contracts if necessary.

The Company does not hold any collateral or other credit enhancement instruments to mitigate credit risk of financial assets.

44 -

(3) Liquidity risk

The Company manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Company’s operations and mitigate the effects of fluctuations in cash flows. In addition, management monitors the utilization of bank borrowings and ensures compliance with loan covenants.

As of December 31, 2025 and 2024, the Company had available unutilized bank loan facilities set out in (b) below.

a. Liquidity and interest rate risk tables for non-derivative financial liabilities

The remaining contractual maturity analysis of non-derivative financial liabilities was based on the earliest date at which the Company might be required to repay and was compiled based on the undiscounted cash flows of financial liabilities (including principal and estimated interest). Therefore, the maturity analysis of non-derivative financial liabilities was compiled in accordance with the agreed repayment date.

December 31, 2025

On Demand or Less than 1 Month Non-derivative financial liabilities Non-interest bearing $ 93,652 Lease liabilities 643 $ 94,295 December 31, 2024 On Demand or Less than 1 Month Non-derivative financial liabilities Non-interest bearing $ 41,222 Lease liabilities 561 $ 41,783	On Demand or Less than 1 Month Non-derivative financial liabilities Non-interest bearing $ 93,652 Lease liabilities 643 $ 94,295 December 31, 2024 On Demand or Less than 1 Month Non-derivative financial liabilities Non-interest bearing $ 41,222 Lease liabilities 561 $ 41,783	On Demand or Less than 1 Month Non-derivative financial liabilities Non-interest bearing $ 93,652 Lease liabilities 643 $ 94,295 December 31, 2024 On Demand or Less than 1 Month Non-derivative financial liabilities Non-interest bearing $ 41,222 Lease liabilities 561 $ 41,783	1-3 Months $ 65,992 1,285 $ 67,277 1-3 Months $ 256,183 1,122 $ 257,305	1-3 Months	3 Months to 1 Year $ 171,754 5,440 $ 177,194 3 Months to 1 Year $ 156,078 5,050 $ 161,128	3 Months to 1 Year	3 Months to 1 Year	3 Months to 1 Year	Over 1 year $ 761 6,552 $ 7,313 Over 1 year $ 761 12,199 $ 12,960		Over 1 year
							$ 171,754 5,440
							$ 177,194
Non-derivative financial liabilities Non-interest bearing Lease liabilities

The operating capital of the Company is sufficient to support its operations, and therefore there is no concern of a shortage of funds.

b. Financing facilities

ancing facilities
Unsecured bank facilities `－`Amount used `－`Amount unused	December 31, 2025 $ 80,444 299,556 $ 380,000	December 31, 2024
			$ 69,679 241,967 $ 311,646

45 -

22. RELATED-PARTY TRANSACTIONS

The Company’s ultimate parent company is WPG Holdings Co., Ltd. Except as disclosed in other notes, transactions between the Company and other related parties are as follows.

a. Related party name and category

s are as follows. ated party name and category
Related Party Name WPG Holdings Limited. CECGP Electronics Corp.`（`CEC`）` Fullcourt Sports Ltd. (Fullcourt Sports) Genuine C&C Inc. (Genuine) Zero One Technology Co., Ltd. (Zero One) Unicomp Information Co., Ltd. (Unicomp) Petacom Technology Co.,Ltd (Petacom) FTSC	Related Party Category Ultimate parent Investor with significant influence over the Company Brother corporation Brother corporation Other related parties Other related parties Other related parties Subsidiary	Note
		Note 1 Note 2 Note 2 Note 3 Note 4 Note 4 Note 4 Note 4

Note 1 ： On April 29, 2025, WPG Holdings Limited became the ultimate parent company of our company through a public tender offer.

Note 2 ： The related party relationship was terminated on April 29, 2025.

Note 3 ： The entity became a related party on April 29, 2025.

Note 4 ： The entity became a related party on May 22, 2025.

b. Operating revenue

erating revenue
Account Item	Related Party Category/Name Investor with significant influence over the Company Brother corporation Subsidiary	For the Year Ended December 31
		2025 $ 154 - 13,464 $ 13,618	2024
Operating revenue			$ 452 902 12,534 $ 13,888

The terms of the transactions with related parties were not significantly different from those with unrelated parties.

c. Subsidiaries

sidiaries
Account Item Subsidiaries	Related Party Category/Name Brother corporation Other Related Parties	For the Year Ended December 31
		2025 $ 7,075 21,105 $ 28,180	2024
			$ - - $ -

Purchases are based on market prices less discounts, reflecting the purchase volume and the relationship with the related party.

46 -

d. Operating cost

erating cost
Account Item	Related Party Category/Name Subsidiary	For the Year Ended December 31
		2025 $ 9,346	2024
Operating cost			$ 9,693

Purchases are made at market prices less discounts to reflect the volume purchased and the nature of the relationship with the related party.

e. Contract liabilities

ntract liabilities
Account Items Related Party Category/Name Contract liabilities Brother corporation eivables from related parties(Excluding A c c o u n t I t e m s Related Party Category/Name Accounts receivable Investor with significant influence over the Company Subsidiary Other receivable Subsidiary	December 31, 2025	December 31, 2024 $ 451 parties) December 31, 2024 $ 133 8,621 $ 8,754 $ 2,695	December 31, 2024
	$ - loans to related December 31, 2025 $ - 10,135 $ 10,135 $ 3,549

f. Receivables from related parties(Excluding loans to related parties)

The Company did not obtain guarantees for receivables from related parties. The Company did not recognize allowance loss for receivables from related parties for the years ended December 31, 2025 and 2024.

g. Contract liabilities

A c c o u n t I t e m s Related Party Category/Name December 31, 2025 December 31, 2024 Contract liabilities Other Related Parties $ 7 $ -

h. Payables to related parties

A c c o u n t I t e m s Contract liabilities ables to related	Related Party Category/Name Other Related Parties parties	December 31, 2025 $ 7	December 31, 2024 $ -	December 31, 2024 $ -
A c c o u n t I t e m s Accounts payable Other accounts payable	Related Party Category/Name Brother corporation Other Related Parties Zero One Others Subsidiary	December 31, 2025 $ 2,814 2,198 379 2,577 $ 5,391 $ 1,748	December 31, 2024
				$ - - - - $ - $ 1,185

The outstanding balance of amounts due to related parties is unsecured.

i. Others

For the Year Ended December 31

A c c o u n t I t e m s Other income Support service income (presented as a deduction from costs and expenses)	Related Party Category/Name Subsidiary Subsidiary		2025 $ 1,977 $ 38,858		2024
					$ 2,025 $ 30,126

47 -

The significant transactions between the Company and related parties were conducted at terms and conditions, including pricing and payment terms, comparable to those with other related parties.

j. Lease agreements

For the Year Ended	December 31	December 31	December 31
		2024
	$ 16,337 December 31, 2024

2025 $ 99 $ 15			2024
			$ 23 $ 46

The Company pays building rental to related parties once a month or every two months, with reference to local rental rates.

k. Endorsements/guarantees provided

The amount that the Company provides endorsements/guarantees for its subsidiary is as follow:

FTSC	December 31, 2025 $ 300,000	December 31, 2024	December 31, 2024
			$ 300,000

l. Compensation of key management personnel

Short-term employee benefits Post-employment benefits		For the Year Ended	December 31	December 31
		2025 $ 30,567 622 $ 31,189		2024
				$ 25,946 405 $ 26,351

The compensation of the board members and the Company’s management is determined by the remuneration committee based on personal performances and market conditions.

23. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

End of the reporting period, the amount of the guarantee issued through financial institutions by the Company are as follow:

December 31, 2025 December 31, 2024 Financial institution guarantee $ 80,444 $ 69,679

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24. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The Company’ significant financial assets and liabilities denominated in foreign currencies aggregated by the foreign currencies other than functional currencies and the related exchange rates between foreign currencies and respecti ve functional currencies were as follows:

	December 31, 2025	Carrying Amount (In Thousands) $ 1,540 $ 47,872	Carrying Amount (In Thousands) $ 1,540 $ 47,872
Foreign Currencies (In Thousands) $ 49 11,856 Foreign Currencies (In Thousands) $ 16 12,527	Exchange Rate 31.43`（`USD`：`NTD`）` 4.04`（`HKD`：`NTD`）` December31,2024 Exchange Rate 32.79`（`USD`：`NTD`）` 4.22`（`HKD`：`NTD`）`

		Carrying Amount (In Thousands)
			$ 525 $ 52,889

The unrealized foreign exchange gains and losses resulting from fluctuations in the U.S. Dollar exchange rate, which had a significant impact, were a gain of $49 thousand and $6 thousand for the years 2025 and 2024, respectively.

25. ADDITIONAL DISCLOSURES

a. Information on significant transactions
(1) Financings provided: Table 1.
(2) Endorsement/guarantee provided: Table 2.
(3)Marketable securities held (excluding investments in subsidiaries): None.
(4)Total purchases from or sales to related parties of at least NT$100 million or 20% of the paid-in capital: None.
(5)Receivables from related parties of at least NT$100 million or 20% of the paid-in capital: None.
49 -
b. Information on investees: Table 4.
c. Information on investments in mainland China
(1) The names of investees in mainland China, the main businesses and products, issued capital, method of investment, information on inflow or outflow of capital, ownership, net income or loss and recognized investment gain or loss, ending balance, amount received as earnings distributions from the investment, and limitation on investment: None.
(2) Significant direct or indirect transactions with the investee companies, the prices and terms of payment, and unrealized gain or loss: None
50 -

Table 1

FORTUNE INFORMATION SYSTEMS CORPORATION

FINANCINGS PROVIDED

FOR THE YEAR ENDED DECEMBER 31, 2025

(Amounts in Thousands of New Taiwan Dollars)

No (Note 1)	Financing Company	Counterparty	Financial Statement Account	Related Party	Maximum Balance for the Period`（`Note 2`）`	Ending Balance	Amount Actually Drawn	Interest Rate	Nature for Financing `（`Note 4`）`	Transaction Amounts	Reason for Financing	Allowance for Bad Debt	Collateral	Collateral	Financing Limits for Each Borrowing Company `（`Note 3`）`	Financing Company’s Total Financing Amount Limits `（`Note 3`）`	Note
													Item	Value
0	The Company	FTSC	Other receivables	Yes	$ 300,000	$ 300,000	$ -	The interest on funds lent shall be calculated on a daily basis and shall not be lower than the Company's cost of funds on the day of theloan.	2	$ -	Operating capital	$ -	`－`	$ -	$ 382,577	$ 382,577

Note1 : 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 maximum balance of funds lent to others during the year, in response to the funding needs of its subsidiaries, FTSC, the Company intends to lend up to $300,000 thousands respectively, and such loans may

be made in installments.
Note 3 : In accordance with the Company’s policy, limit on total loans shall not exceed 30% of the Company’s net assets based on the latest financial statements, and limit on loans to its subsidiaries shall not exceed 30% of the limit on total loans. Limit on loans to others shall not exceed 10% of the limit on total loans.

Note 4 ： Nature for Financing:

(1) Business dealings.
(2) Short-term financing needs.
51 -

Table 2

FORTUNE INFORMATION SYSTEMS CORPORATION

ENDORSEMENTS/GUARANTEES PROVIDED

FOR THE YEAR ENDED DECEMBER 31, 2025

(Amounts in Thousands of New Taiwan Dollars)

No (Note 1)	Endorsement/ Guarantee Provider	Guaranteed Party	Guaranteed Party	Limits on Endorsement/ Guarantee Amount Provided to Each Guaranteed Party`（`Note 3`）`	Maximum Balance for the Period	Ending Balance	Amount Actually Drawn	Amount of Endorsement/ Guarantee Collateralized by Properties	Ratio of Accumulated Endorsement/ Guarantee to Net Equity per Latest Financial Statements`（％）`	Maximum Endorsement/ Guarantee Amount Allowable `（`Note 3`）`	Guarantee Provided by Parent Company	Guarantee Provided by A Subsidiary	Guarantee Provided to Subsidiaries in Mainland China
		Name	Nature of Relationship `（`Note 2`）`
0	The Company	FTSC	2	$ 637,629	$ 300,000	$ 300,000	$ 50,380	$ -	23.52	$ 1,275,258	Y	N	N
1	FTSC	The Company	3	251,306	200,000	200,000			39.79	502,612	N	Y	N

Note1 : 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’

Note2 ： Nature for endorsement/ guarantee provided:

(1) Business dealings.
(2) Companies with direct and indirect ownership of voting shares exceeding 50%. 。
(3) Direct/indirect subsidiary.

Note 3 ： In accordance with the Company’s policy, limit on endorsement/ guarantee provided to a single party shall not exceed 5 0% of the Company’s net assets based on the latest financial statements, and limit on total endorsement/ guarantee provided shall not exceed 100% of the Company’s net assets based on the latest financial statements.

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Table 3

FORTUNE INFORMATION SYSTEMS CORPORATION

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES OF AT LEAST NT$100 MILLION OR 20% OF THE PAID -IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2025

(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Company Name	Related Party	Nature of Relationship		Transaction Details	Transaction Details		Transactions with Terms Different form Others	Transactions with Terms Different form Others	Notes/Accounts Payable or Receivable	Notes/Accounts Payable or Receivable	Note
			Purchase/Sale	Amount	% to Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% to Total
FTSC	Zero One	Other related party	Purchase	$ 112,838	5%	Based on contract terms	On the same terms as ordinary transactions	On the same terms as ordinary transactions	$ 133,226	21%	-

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Table 4

FORTUNE INFORMATION SYSTEMS CORPORATION

NAMES, LOCATIONS, AND RELATED INFORMATION OF INVESTEES OVER WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCE FOR THE YEAR ENDED DECEMBER 31, 2025

(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	Balance as of December 31, 2025	Balance as of December 31, 2025	Balance as of December 31, 2025	Net Income (Losses) of the Investee	Share of Profits/Losses of Investee	Note (Note 1)
				December 31, 2025	December 31, 2024	Shares	Percentage of Ownership	Carrying Value
The Company	HK FIS SBAS FTSC	Hong Kong Hong Kong Taipei	Information Information Information Service	$ 38,484 1,452 400,000	$ 38,484 1,452 400,000	8,426,000 20,000 46,000,000	100% 100% 100%	$ 30,150 17,722 502,615	( $ 3,159 ) 473 33,169	( $ 3,159 ) 473 33,145	Subsidiary Subsidiary Subsidiary

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FORTUNE INFORMATION SYSTEMS CORPORATION

STATEMENT OF CASH AND CASH EQUIVALENTS

DECEMBER 31, 2025

STATEMENT 1 Item Bank deposits Foreign currency deposits Check deposits Current deposits Cash on hand and working capital Cash equivalents Repurchase agreements Total	(In Thousands of New Taiwan Dollars) Description Amount The amounts are primarily USD 48 thousand and RMB 353 thousand, with exchange rates of 31.43 and 4.496, respectively. $ 3,090 49,138 19,315 381 109,823 $ 181,747	(In Thousands of New Taiwan Dollars) Description Amount The amounts are primarily USD 48 thousand and RMB 353 thousand, with exchange rates of 31.43 and 4.496, respectively. $ 3,090 49,138 19,315 381 109,823 $ 181,747	(In Thousands of New Taiwan Dollars) Description Amount The amounts are primarily USD 48 thousand and RMB 353 thousand, with exchange rates of 31.43 and 4.496, respectively. $ 3,090 49,138 19,315 381 109,823 $ 181,747
			$ 3,090 49,138 19,315 381 109,823 $ 181,747

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FORTUNE INFORMATION SYSTEMS CORPORATION

STATEMENT OF NOTES AND ACCOUNTS RECEIVABLE DECEMBER 31, 2025

STATEMENT 2

(In Thousands of New Taiwan Dollars)

Customer name Related Parties FTSC Non-Related parties Company A Company B Company C Company D Company E Company F Company G Company H Company I Others`（`Note`）` Subtotal Less: Allowances for impairment loss Total		Notes Receivable $ - 327 111 90 74 42 41 - - - 70 755 - $ 755		Accounts Receivable $ 10,135 72 902 - - - - 27,147 14,788 9,637 75,816 128,362 144 $ 138,353		Amount
						$ 10,135 399 1,013 90 74 42 41 27,147 14,788 9,637 75,886 129,117 144 $ 139,108

Note: The balances of all individual items did not exceed 5% of the total balance of this account.

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FORTUNE INFORMATION SYSTEMS CORPORATION

STATEMENT OF INVENTORIES

DECEMBER 31, 2025

STATEMENT 3

(In Thousands of New Taiwan Dollars)

Items Computer equipment Imaging products Less: Allowance for inventory valuation losses Total	Book value $ 103,130 101 103,231 3,100 $ 100,131	Net realizable value (Note)	Net realizable value (Note)
			$ 103,623 106 $ 103,729

Note: The market value is determined based on net realizable value.

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FORTUNE INFORMATION SYSTEMS CORPORATION

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

DECEMBER 31, 2025

STATEMENT 4

(In Thousands of New Taiwan Dollars)

Beginning Balance Addition Name Shares (In thousand) Amount Shares (In thousand) Amount HK FIS 8,426 $ 34,858 - $ - SBAS 20 18,031 - - FTSC 43,700471,470 2,300 - Total $ 524,359 $ - Note 1: Including 1. Share of profit or loss of subsidiaries accounted for using the equity method $ 30,459 2. Exchange differences on translation of the financial statements of foreign operations ( 2,331 ) 3. Cash dividends received from subsidiaries ( 2,000) $ 26,128	Decrease Shares (In thousand) Amount - $ - - - - - $ -	Decrease Shares (In thousand) Amount - $ - - - - - $ -	I n c r e a s e (Decrease) in Using the Equity Method `（`Note 1`）` ( $ 4,708 ) ( 309 ) 31,145 $ 26,128	Ending Balance	Ending Balance		Amount $ 30,150 17,722 502,615 $ 550,487	Net value of equity $ 30,150 17,722 502,612 $ 550,484	Note
	Shares (In thousand) - - -			S h a r e s (In thousand) 8,426 20 46,000	Percentage of ownership`％` 100 100 100
									Note 2 Note 2 Note 2

Note 2: As of December 31, 2025, there were no 。
pledges or collateral arrangements.
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FORTUNE INFORMATION SYSTEMS CORPORATION STATEMENT OF CHANGES IN RIGHT-OF-USE ASSETS DECEMBER 31, 2025

STATEMENT 5

STATEMENT 5
Item Cost Balance, January 1, 2025 Additions Balance, December 31, 2025 Accumulated depreciation Balance, January 1, 2025 Depreciation Balance, December 31, 2025 Carrying amount, December 31, 2025	Buildings $ 19,310 780 $ 20,090 $ 1,586 6,268 $ 7,854 $ 12,236	Machinery and equipment $ 1,501 1,683 $ 3,184 $ 834 1,061 $ 1,895 $ 1,289		Total
				$ 20,811 2,463 $ 23,274 $ 2,420 7,329 $ 9,749 $ 13,525

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FORTUNE INFORMATION SYSTEMS CORPORATION

STATEMENT OF ACCOUNTS PAYABLE

DECEMBER 31, 2025

STATEMENT 6


TEMENT 6		(In Thousands of		New Taiwan Dollars)
	VendorName			Amount
Related Parties
Others (Note)			$	5,391
Non-Related parties
Company A				73,745
Company B				25,275
Company C				17,840
Company D				11,220
Others (Note)				79,586
Subtotal				207,666
Total			$	213,057

Note ： The amount of individual company included in others does not exceed 5% of the account balance.

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FORTUNE INFORMATION SYSTEMS CORPORATION

STATEMENT OF LEASE LIABILITIES

DECEMBER 31, 2025

STATEMENT 7 (In Thousands of New Taiwan Dollars)

Item Buildings Machinery and equipment Less: Classified as current portion due within one year Lease liabilities – non-current	Description Used as an office Used for software development and testing	LeaseTerms 3~5 years 3 years	DiscountRates		Amount
			1.19%`～`2.71% 1.90%`～`1.96%	(	$ 12,371 1,304 7,179) $ 6,496

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FORTUNE INFORMATION SYSTEMS CORPORATION

STATEMENT OF OPERATING REVENUE

FOR THE YEAR ENDED DECEMBER 31, 2025

(In Thousands of New Taiwan Dollars) Items Amount Revenue from the sale of goods and system integration $ 1,132,699 Less: Sales returns and allowances 1,045 Net sales 1,131,654 Revenue from rendering of services 373,036 Total $ 1,504,690

STATEMENT 8

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FORTUNE INFORMATION SYSTEMS CORPORATION

STATEMENT OF OPERATING COST

FOR THE YEAR ENDED DECEMBER 31, 2025

STATEMENT 9

(In Thousands of New Taiwan Dollars)

Item Inventory, beginning of year Add: Purchases Less: Reclassified to other operating costs Reclassified to property, plant and equipment and other assets Inventory, ending of year Subtotal Provision for inventory valuation Costs of goods sold Costs of service Total		Amount
		$ 109,647 1,012,272 7,947 1,008 103,231 1,009,733 30 1,009,763 322,748 $ 1,332,511

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FORTUNE INFORMATION SYSTEMS CORPORATION

STATEMENT OF OPERATING EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2025

STATEMENT 10

(In Thousands of New Taiwan Dollars)

Item Salaries and pension Insurance expense Professional service fees Others (Note) Total		Amount
		$ 96,943 6,945 5,801 14,113 $ 123,802

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

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FORTUNE INFORMATION SYSTEMS CORPORATION

STATEMENT OF EMPLOYEE BENEFIT BY FUNCTION

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

	(In Thousands of New Taiwan Dollars) FOR THE YEAR ENDED DECEMBER 31	(In Thousands of New Taiwan Dollars) FOR THE YEAR ENDED DECEMBER 31	(In Thousands of New Taiwan Dollars) FOR THE YEAR ENDED DECEMBER 31	(In Thousands of New Taiwan Dollars) FOR THE YEAR ENDED DECEMBER 31	(In Thousands of New Taiwan Dollars) FOR THE YEAR ENDED DECEMBER 31
	2025	Total $ 245,530 22,311 10,226 3,868 10,427 $ 292,362		2024
Classified as Operating Costs $ 155,722 15,366 6,959 - 7,381 $ 185,428	Classified as Operating Expenses $ 89,808 6,945 3,267 3,868 3,046 $ 106,934		Classified as Operating Costs $ 140,974 14,285 6,499 - 7,340 $ 169,098	Classified as Operating Expenses $ 78,376 6,333 2,926 5,272 2,826 $ 95,733	Total
					$ 219,350 20,618 9,425 5,272 10,166 $ 264,831

Note 1: The average number of employees of the Company was 258 in 2025 and 260 in 2024, the number of directors who do not concurrently serve as employees was 5 and 4, respectively.
Note 2: The average employee benefits expenses for the years 2025 and 2024 were $1,140 thousand and $1,014 thousand, respectively. The average employee salary expenses for the years 2025 and 2024 were $970 thousand and $857 thousand. The average employee salary expenses increased by 13% and 6% in the two respective years.
Note 3: a. Board of directors and managers

The independent directors and directors of the Company are entitled to a monthly transportation allowance. The compensation for the Chairman, directors concurrently holding other positions in the Company, and executives, is assessed and approved by the Compensation Committee based on the Company’s operational performance and past compensation practices, and then recommended to the Board of Directors. The year-end bonus for the Chairman, directors concurrently holding other positions in the Company, and executives is equivalent to one month’s base salary (including position allowances). For those who have not completed a full year of service, the bonus will be prorated (based on the number of months served divided by 12, multiplied by the base salary). The performance bonuses, employee compensation, and other irregular incentives for the Chairman, directors concurrently holding

65 -

other positions in the Company, and executives will be reviewed and determined by the Compensation Committee, taking into account the Company’s operational performance and individual achievements.

b. Employees

The salaries of employees in the Company include base salary, meal allowances, bonuses, and other forms of compensation. The remuneration received by employees during normal working hours shall not be less than the minimum wage. The Company may adjust salaries based on factors such as the salary market, price levels, and the Company's operating conditions. If the Company makes a profit for the year, employee compensation will be allocated in accordance with the Company's Articles of Association, based on the pre-tax net income for the current period, before any distribution of employee compensation. However, if the Company has accumulated losses, a reserve amount should be set aside in advance for the purpose of covering such losses. When employee compensation is distributed in the form of stocks or cash, it must be decided by the Board of Directors in accordance with the law and reported to the shareholders' meeting.

66 -

AI assistant

FIS — Audit Report / Information 2025

52106_rns_2026-04-29_5e729edc-56dc-4a7d-878b-b968b1ed4604.pdf

Fortune Information Systems Corporation

INDEPENDENT AUDITORS’ REPORT

Opinion

Basis for Opinion

Key Audit Matters

Revenue recognition for system integration

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

Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements

Notice to Readers

FORTUNE INFORMATION SYSTEMS CORPORATION

FORTUNE INFORMATION SYSTEMS CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

FORTUNE INFORMATION SYSTEMS CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY

Others

FORTUNE INFORMATION SYSTEMS CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

FORTUNE INFORMATION SYSTEMS CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

FORTUNE INFORMATION SYSTEMS CORPORATION

1. GENERAL

2. APPROVAL OF THE FINANCIAL STATEMENTS

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

b. Basis of Preparation

c. Current and Non-current Assets and Liabilities

d. Foreign Currencies

e. Inventories

f. Investment in subsidiaries

g. Property, Plant and Equipment

h. Investment properties

i. Intangible Assets

k. Financial Instruments

l. Provisions

m. Revenue Recognition

n. Leases

o. Borrowing costs

p. Employee Benefits

q. Income Tax

5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. CASH AND CASH EQUIVALENTS

December 31, 2025

December 31, 2024

8. INVENTORIES

9. SUBSIDIARIES

10. PROPERTY, PLANT AND EQUIPMENT

11. LEASE ARRANGEMENTS

13. OTHER LIABILITIES

14. RETIREMENT BENEFIT PLANS

15. EQUITY

16. REVENUE

17. NET INCOME

d. Depreciation and amortization

e. Employee benefits expenses

18. INCOME TAXES

d. Income tax examinations

19. EARNINGS PER SHARE

Net income

20. CAPITAL RISK MANAGEMENT

21. FINANCIAL INSTRUMENTS

Sensitivity analysis

(b) Interest rate risk

Sensitivity analysis

(2) Credit risk

(3) Liquidity risk

December 31, 2025

b. Financing facilities

22. RELATED-PARTY TRANSACTIONS

d. Operating cost

23. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

24. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

25. ADDITIONAL DISCLOSURES

FORTUNE INFORMATION SYSTEMS CORPORATION

FORTUNE INFORMATION SYSTEMS CORPORATION

ENDORSEMENTS/GUARANTEES PROVIDED

FORTUNE INFORMATION SYSTEMS CORPORATION

FORTUNE INFORMATION SYSTEMS CORPORATION

FIS Audit Report / Information 2025