FOXSEMICON INTERGRATED TECHNOLOGY INC. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORT DECEMBER 31, 2025 AND 2024

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

INDEPENDENT AUDITORS' REPORT

To the Board of Directors and Shareholders of Foxsemicon Integrated Technology Inc.

Opinion

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

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

Basis of opinion

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

Key audit matters for the Group’s 2025 consolidated financial statements are stated as follows:

Sales revenue cut-off

Description

Please refer to Note 4(31) for accounting policy on revenue recognition, Note 5(1) for critical judgement on revenue recognition, and Note 6(20) for details of revenue. For the year ended December 31, 2025, the balance of revenue amounted to NT$20,841,660 thousand.

The Group has three sales transaction types, including direct shipment from the factory, FOB destination, and hub. For FOB destination and hub, revenue is recognized when goods are shipped to the destination or picked up by customers (when control of the product is transferred). The supporting documents for revenue recognition include receipts from customers (FOB destination), reports or other information provided by hub custodians and inventory movement record of hub. The process of revenue recognition contains numerous manual procedures, which may potentially result in inaccurate timing of revenue recognition.

Since there are numerous daily revenue from hubs and from FOB destination, the transaction amounts prior to and after the balance sheet date are significant to the financial statements, and revenue recognition involves subjective judgment, revenue cut-off has been identified as a key audit matter.

How our audit addressed the matter

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

Evaluated and tested the Group’s internal controls in respect of revenue recognition.
Tested sales transactions that took place shortly before and after the balance sheet date, by verifying customers’ receipt notes, supporting documents provided by hub custodian, inventory movement records, and costs of goods sold recognized in the correct reporting periods.
Confirmed the inventory quantities with hub custodian and agreed the results to accounting records.

Evaluation of inventories

Description

Please refer to Note 4(14) for description of accounting policy on inventory valuation, Note 5(2) for accounting estimates and assumption uncertainty in relation to inventory valuation, and Note 6(6) for details of inventories. As of December 31, 2025, the balances of inventories and allowance for valuation loss on inventories amounted to NT$4,586,180 thousand and NT$156,311 thousand respectively.

The Group is primarily engaged in manufacture and sales of semiconductors and automation equipment and components. As technology changes rapidly, the life cycles of electronic products are short, prices are easily influenced by fluctuation in market price, there is higher risk of incurring inventory valuation losses or obsolescence. The Group measures inventories sold at the lower of cost and net realizable value. For inventories that are over a certain age and individually identified obsolete or ruined inventory, losses are recognized at net realizable value.

The Group’s allowance for inventory valuation losses mainly arises from individually identified obsolete or ruined inventory, and since the value of inventories is significant, inventory types are various, the individual identification of inventory usually involves human judgement and the valuation contains uncertainty. Thus, we identified the

valuation of allowance for valuation loss on inventories as one of key audit matters.

How our audit addressed the matter

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

Ascertained whether the policies and procedures on allowance for inventory valuation losses were reasonable and consistently applied in all the periods.
Verified the appropriateness of the system logic in calculating the ageing of inventories, and confirmed the information in the reports is consistent with the relevant policies.
Assessed the reasonableness of separately identified obsolete and damaged inventories and verified against information obtained during the stock count.
For net realizable value of inventories over normal age and those individually identified obsolete and damaged inventory, we discussed with the management, obtained supporting documents and reviewed the calculation of inventory loss.

Assessment of the reasonableness of the purchase price allocation for business combination

Description

Please refer to Note 4(34) for accounting policies on business combination, and Note 6(27) for details of business combination. The Group acquired 51% shares of FairTech Corporation in May 29, 2025 for a consideration of NT$1,704,043 thousand plus contingent cash consideration of NT291,347 thousand, and the allocation of purchase price of the business combination was finalized during the fourth quarter of 2025.

The acquisition price and the amount of intangible assets arising from the business acquisition are significant and the net fair value of identifiable assets and liabilities and the allocation of intangible assets are based on management's estimation and subjective judgement. Thus, we considered the purchase price allocation for the above business combination a key audit matter.

How our audit addressed the matter

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

Assessed the appropriateness and objectivity of the appraisers appointed by the management; and
Reviewed identification of intangible assets, fair value measurement of identifiable intangible assets, discount rates and the reasonableness of goodwill calculation in the purchase price allocation report prepared by external experts.
The auditors used the work of valuation experts to assist in assessing the reasonableness of significant assumptions, such as projected growth rates and discount rates, adopted in the model.

Other matter – Parent company only financial reports

We have audited and expressed an unqualified opinion on the parent company only financial statements of Foxsemicon Integrated Technology Inc. as at and for the years ended December 31, 2025 and 2024.

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

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

In preparing the consolidated financial statements, management is responsible for

assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

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

Auditors’ responsibilities for the audit of the consolidated financial statements

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

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

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design

audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

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

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

From the matters communicated with those charged with governance, we determine

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

Hsu, Sheng-Chung Wu, Jen-Chieh For and on Behalf of PricewaterhouseCoopers, Taiwan February 26, 2026

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

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

FOXSEMICON INTERGRATED TECHNOLOGY INC. AND SUBSIDIARIES AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2025 AND 2024 (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

	Assets	Notes	December 31, 2025		December 31, 2024
			AMOUNT	%	AMOUNT	%
Current assets
1100	Cash and cash equivalents	6(1)	$ 6,625,513	23	$ 7,526,593	33
1110	Current financial assets at fair value through profit or loss	6(2)	-	-	326	-
1136	Current financial assets at amortized cost	6(4)	1,405,776	5	2,679,224	12
1170	Accounts receivable	6(5) and 7	1,502,608	5	1,694,802	7
1200	Other receivables	7	267,141	1	11,719	-
1220	Current income tax assets		241	-	-	-
130X	Inventory	6(6)	4,429,869	16	3,888,007	17
1410	Prepayments		448,378	2	344,638	1
11XX	Total current assets		14,679,526	52	16,145,309	70
Non-current assets
1510	Non-current financial assets at fair value through profit or loss	6(2)	55,462	-	48,505	-
1517	Non-current financial assets at fair value through other comprehensive income	6(3)	151,061	-	338,492	1
1535	Non-current financial assets at amortised cost	6(4) and 8	482,320	2	8,053	-
1550	Investments accounted for using equity method		106,088	-	109,559	1
1600	Property, plant and equipment	6(7) and 9	10,333,644	37	5,186,102	22
1755	Right-of-use assets	6(8) and 7	217,621	1	585,449	3
1760	Investment property		447	-	26,953	-
1780	Intangible assets	6(9)	1,572,161	6	36,504	-
1840	Deferred income tax assets		15,280	-	10,100	-
1900	Other non-current assets	6(13)	615,600	2	633,493	3
15XX	Total non-current assets		13,549,684	48	6,983,210	30
1XXX	Total assets		$ 28,229,210	100	$ 23,128,519	100

(Continued)

	Liabilities and Equity	Notes	December 31, 2025		December 31, 2024
			AMOUNT	%	AMOUNT	%
Current liabilities
2100	Short-term loans	6(10)	$ 2,194,500	8	$ 30,000	-
2120	Current financial liabilities at fair value through profit or loss	6(2)	-	-	1,802	-
2130	Current contract liabilities	6(20)	114,838	-	333,823	2
2170	Accounts payable		1,434,190	5	1,711,501	7
2200	Other payables	6(11)	3,431,659	12	2,074,232	9
2230	Current tax liabilities		370,221	1	406,177	2
2280	Current lease liabilities	7	53,538	-	72,600	-
2320	Long-term liabilities, current portion	6(14)(15)	281,463	1	628,584	3
2399	Other current liabilities, others	6(12)	145,761	1	290,545	1
21XX	Total current liabilities		8,026,170	28	5,549,264	24
Non-current liabilities
2540	Long-term loans	6(15)	1,207,521	4	1,423,956	6
2570	Deferred income tax liabilities		270,466	1	85,575	1
2580	Non-current lease liabilities	7	184,603	1	547,468	2
2600	Other non-current liabilities	6(27)	580,678	2	314,809	1
25XX	Total non-current liabilities		2,243,268	8	2,371,808	10
2XXX	Total Liabilities		10,269,438	36	7,921,072	34
Equity
Equity attributable to owners of parent
Share capital
3110	Common stock	6(16)	1,098,196	4	1,060,004	4
3130	Certificate of entitlement to new shares from convertible bond		6,059	-	16,245	-
3140	Advance receipts for share capital		1,455	-	1,692	-
	Capital surplus	6(18)
3200	Capital surplus		6,166,283	22	5,715,305	25
	Retained earnings	6(19)
3310	Legal reserve		1,413,498	5	1,142,209	5
3320	Special reserve		6,336	-	6,336	-
3350	Unappropriated retained earnings		7,432,325	26	6,927,340	30
	Other equity interest
3400	Other equity interest		415,307	2	338,316	2
31XX	Equity attributable to owners of the parent		16,539,459	59	15,207,447	66
36XX	Non-controlling interests		1,420,313	5	-	-
3XXX	Total equity		17,959,772	64	15,207,447	66
	Significant Contingent Liabilities and Unrecognized Contract Commitments	9
	Significant Events after the Balance Sheet Date	11
3X2X	Total liabilities and equity		$ 28,229,210	100	$ 23,128,519	100

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

FOXSEMICON INTERGRATED TECHNOLOGY INC. AND SUBSIDIARIES AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2025 AND 2024

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

	Items	Notes	Year ended December 31
			2025		2024
			AMOUNT	%	AMOUNT	%
4000	Operating revenue	6(20) and 7	$ 20,841,660	100	$ 16,454,476	100
5000	Operating costs	6(6)	( 15,600,775)	( 75)	( 12,165,987)	( 74)
5900	Gross profit from operations		5,240,885	25	4,288,489	26
	Operating expenses	6(23)
6100	Selling expenses		( 506,389)	( 3)	( 420,758)	( 3)
6200	Administrative expenses		( 919,656)	( 4)	( 639,645)	( 4)
6300	Research and development expenses		( 704,756)	( 3)	( 565,253)	( 3)
6450	Impairment (loss) gain	12(2)	377	-	( 630)	-
6000	Total operating expenses		( 2,130,424)	( 10)	( 1,626,286)	( 10)
6900	Net operating income		3,110,461	15	2,662,203	16
	Non-operating income and expenses
7100	Interest income		166,522	1	237,730	2
7010	Other income	6(21)	198,953	1	134,057	1
7020	Other gains and losses	6(22)	( 343,967)	( 2)	235,413	1
7050	Finance costs	7	( 64,212)	-	( 41,308)	-
7060	Share of loss of associates and joint ventures accounted for using equity method		( 8,644)	-	( 13,442)	-
7000	Total non-operating revenue and expenses		( 51,348)	-	552,450	4
7900	Profit (loss) before income tax		3,059,113	15	3,214,653	20
7950	Income tax expense	6(25)	( 641,871)	( 3)	( 602,010)	( 4)
8200	Profit for the period		$ 2,417,242	12	$ 2,612,643	16

(Continued)

FOXSEMICON INTERGRATED TECHNOLOGY INC. AND SUBSIDIARIES AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2025 AND 2024

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

	Items	Notes	Year ended December 31
			2025		2024
			AMOUNT	%	AMOUNT	%
	Components of other comprehensive income that will not be reclassified to profit or loss
8311	Other comprehensive income, before tax, actuarial gains (losses) on defined benefit plans	6(13)
8316	Unrealized gain on valuation of financial assets at fair value through the comprehensive	6(3)	$ 4,614	-	$ 4,633	-
8310	Components of other comprehensive income that will not be reclassified to profit or loss		(182,460)	(1)	149,747	1
	Components of other comprehensive income that will not be reclassified to profit or loss		(177,846)	(1)	154,380	1
	Financial statements translation difference of foreign operations		252,607	1	239,959	1
8370	Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss		6,844	-	3,943	-
8360	Other comprehensive loss that will be reclassified to profit or loss		259,451	1	243,902	1
8300	Other comprehensive income for the year		$ 81,605	-	$ 398,282	2
8500	Total comprehensive income for the year		$ 2,498,847	12	$ 3,010,925	18
	Profit attributable to:
8610	Owners of the parent		$ 2,336,288	11	$ 2,612,643	16
8620	Non-controlling interests		80,954	1	-	-
			$ 2,417,242	12	$ 2,612,643	16
	Total comprehensive income attributable to:
8710	Owners of the parent		$ 2,417,400	12	$ 3,010,925	18
8720	Non-controlling interests		81,447	-	-	-
			$ 2,498,847	12	$ 3,010,925	18
	Earnings per share (in dollars)	6(26)
9750	Basic earnings per share		$	21.44	$	25.22
9850	Diluted earnings per share		$	20.74	$	22.70

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

FOXSEMICON INTERGRATED TECHNOLOGY INC. AND SUBSIDIARIES AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

YEARS ENDED DECEMBER 31, 2025 AND 2024

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

	Equity attributable to owners of the parent
		Capital			Retained Earnings			Other equity interest			Total	Non-controlling interests	Total equity
		Certificate of entitlement to new shares from convertible bond	Advance receipts for share capital	Total capital surplus, additional paid-in capital	Legal reserve	Special reserve	Unappropriated retained earnings	Financial statements translation differences of foreign operations	Total Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income
2024
Balance at January 1, 2024		$ 971,861	$ 246	$ 2,286	$ 4,051,311	$ 943,255	$ 6,336	$ 5,586,669	($ 58,452)	$ 98,728	$ 11,602,240	$ -	$ 11,602,240
Profit for the year		-	-	-	-	-	-	2,612,643	-	-	2,612,643	-	2,612,643
Other comprehensive income (loss) for the year		-	-	-	-	-	-	4,633	243,902	149,747	398,282	-	398,282
Total comprehensive income		-	-	-	-	-	-	2,617,276	243,902	149,747	3,010,925	-	3,010,925
Appropriations of 2023 earnings	6(19)
Legal reserve		-	-	-	-	198,954	-	( 198,954)	-	-	-	-	-
Cash dividends		-	-	-	-	-	-	( 1,173,260)	-	-	( 1,173,260)	-	( 1,173,260)
Conversion of convertible bonds	6(18)	77,439	15,999	-	1,458,254	-	-	-	-	-	1,551,692	-	1,551,692
Executive employee stock options	6(18)	10,704	-	( 594)	146,127	-	-	-	-	-	156,237	-	156,237
Share-based payment	6(17)(18)	-	-	-	59,761	-	-	-	-	-	59,761	-	59,761
Disposal of equity instruments at fair value through other comprehensive income		-	-	-	-	-	-	95,609	-	( 95,609)	-	-	-
Change for non controlling interest		-	-	-	( 148)	-	-	-	-	-	( 148)	-	( 148)
Balance at December 31, 2024		$ 1,060,004	$ 16,245	$ 1,692	$ 5,715,305	$ 1,142,209	$ 6,336	$ 6,927,340	$ 185,450	$ 152,866	$ 15,207,447	$ -	$ 15,207,447
2025
Balance at January 1, 2025		$ 1,060,004	$ 16,245	$ 1,692	$ 5,715,305	$ 1,142,209	$ 6,336	$ 6,927,340	$ 185,450	$ 152,866	$ 15,207,447	$ -	$ 15,207,447
Profit for the year		-	-	-	-	-	-	2,336,288	-	-	2,336,288	80,954	2,417,242
Other comprehensive income (loss) for the year		-	-	-	-	-	-	4,121	259,451	( 182,460)	81,112	493	81,605
Total comprehensive income		-	-	-	-	-	-	2,340,409	259,451	( 182,460)	2,417,400	81,447	2,498,847
Appropriations of 2024 earnings	6(19)
Legal reserve		-	-	-	-	271,289	-	( 271,289)	-	-	-	-	-
Cash dividends		-	-	-	-	-	-	( 1,564,135)	-	-	( 1,564,135)	( 27,930)	( 1,592,065)
Conversion of convertible bonds	6(18)	30,686	( 10,186)	-	304,366	-	-	-	-	-	324,866	-	324,866
Executive employee stock options	6(18)	7,506	-	( 237)	110,243	-	-	-	-	-	117,512	-	117,512
Share-based payment	6(17)(18)	-	-	-	54,434	-	-	-	-	-	54,434	-	54,434
Change in equity of associates and joint ventures accounted for using equity method		-	-	-	524	-	-	-	-	-	524	-	524
Adjustments arising from changes in percentage of ownership in subsidiaries		-	-	-	( 18,589)	-	-	-	-	-	( 18,589)	-	( 18,589)
Business combination transaction		-	-	-	-	-	-	-	-	-	-	1,366,796	1,366,796
Balance at December 31, 2025		$ 1,098,196	$ 6,059	$ 1,455	$ 6,166,283	$ 1,413,498	$ 6,336	$ 7,432,325	$ 444,901	($ 29,594)	$ 16,539,459	$ 1,420,313	$ 17,959,772

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

FOXSEMICON INTERGRATED TECHNOLOGY INC. AND SUBSIDIARIES AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 AND 2024

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

	Year ended December 31
	Notes	2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax		$ 3,059,113	$ 3,214,653
Adjustments
Adjustments to reconcile profit (loss)
Depreciation expense (including investment property and right-of-use assets)	6(9)(23)
Amortization expense	6(23)	671,472	537,995
Gain on write-off of past due payable	6(21)	51,323	13,435
Gain on lease modification	6(8)	( 22,907 )	20,923 )
Share-based payments	6(17)	54,434	59,761
Additional provision recognized	6(12)	54,181	44,045
Share of loss of associates and joint ventures accounted for using equity method		8,644	13,442
Expected credit losses recognized		377 )	630
Gain on financial assets at fair value through profit or less		2,943	1,862
(Gain) loss on disposal of property, plant and equipment	6(22)	1,422	485
Interest income		( 166,522 )	( 237,730 )
Interest expense		64,212	41,308
Dividend income		( 3,725 )	( 3,251 )
Realized profit of deferred income of government		( 64,107 )	( 64,798 )
Changes in operating assets and liabilities
Changes in operating assets
Financial assets and liabilities at fair value through profit or loss, mandatorily		253	507
Accounts receivable net		116,784	( 911,684 )
Accounts receivable related parties		( 53,946 )	140,015
Other receivable		( 245,971 )	115,398
Other receivable related parties		15,827	( 301 )
Inventories		( 333,727 )	( 1,197,842 )
Prepayment		( 89,778 )	( 103,152 )
Changes in operating liabilities
Accounts payable		( 160,518 )	791,094
Accounts payable related parties		( 86,972 )	( 127,120 )
Other payable		252,708	322,055
Other payable related parties		31,809	( 12,040 )
Contract liabilities		( 219,906 )	5,910
Other current liabilities		( 48,123 )	( 18,550 )
Defined benefit plans asset		-	11
Cash inflow generated from operations		2,879,253	2,593,395
Income taxes paid		( 628,821 )	( 418,066 )
Net cash flows from operating activities		2,250,432	2,175,329
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at fair value through profit or loss		( 6,957 )	( 21,145 )
Acquisition of financial assets at amortized cost		( 2,307,849 )	( 5,911,592 )
Disposal of financial assets at amortized cost		3,120,028	6,890,645
Acquisition of Investments accounted for using equity method		-	( 22,500 )
Net cash payments for business combination	6(27)	( 1,262,965 )	-
Acquisition of property, plant and equipment	6(28)	( 3,325,606 )	( 1,923,295 )
Dividends received		3,725	3,251
Proceeds from disposal of property, plant and equipment		79,605	3,411
Proceeds from disposal of financial assets at fair value through other comprehensive	6(3)
Acquisition of intangible assets		( 48,162 )	( 20,110 )
Interest received		166,522	237,730
Increase in refundable deposits		( 8,044 )	-
Decrease (increase) in other non-current assets		-	48,454
Net cash flows used in investing activities		3,589,703	( 601,641 )
CASH FLOWS FROM FINANCING ACTIVITIES
Interest paid		( 66,087 )	( 31,241 )
Repayments of long-term debt		( 401,668 )	70,400
Increase in short-term loans	6(29)	5,896,000	154,000
Decrease in short-term loans	6(29)	( 3,731,500 )	( 159,000 )
Payments of lease liabilities	6(29)	( 62,404 )	( 40,865 )
Proceeds from long-term debt	6(29)	-	163,557

(Continued)

FOXSEMICON INTERGRATED TECHNOLOGY INC. AND SUBSIDIARIES AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 AND 2024

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

	Year ended December 31
	Notes	2025	2024
Payment of cash dividends	6(19)	( $ 1,592,065 )	( $ 1,173,260 )
Executive employee stock options		117,512	156,237
Transactions with non-controlling interests		336,591	-
Net cash flows from (used in) financing activities		496,379	( 1,000,972 )
Effect of changes in foreign currency exchange rates on cash		( 58,188 )	( 2,256 )
Net (decrease) increase in cash and cash equivalents		( 901,080 )	570,460
Cash and cash equivalents at beginning of year		7,526,593	6,956,133
Cash and cash equivalents at end of year		$ 6,625,513	$ 7,526,593

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

FOXSEMICON INTERGRATED TECHNOLOGY INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

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

1. History and Organization

(1) Foxsemicon Integrated Technology Inc. (the “Company”) was incorporated as company limited by shares under the provisions of the Company Act of the Republic of China (R.O.C.) on April 26, 2001, and in accordance with the “Act for Establishment and Administration of Science Parks”, the investment in the science park was approved in April 2003. The company was listed on the Taiwan Stock Exchange Corporation (the “TSEC”) in July 28, 2015.

(2) The Company and its subsidiaries (collectively referred herein as the “Group”) are primarily engaged in research, development, design, manufacturing and sales of subsystems and system integration of semiconductor equipment, subsystems and system integration of TFT-LCD, nano equipment, LED lighting, LED display product and other application product, photoelectric, communication wafer materials and medical devices.

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

These consolidated financial statements were authorized for issuance by the Board of Directors on February 26, 2026.

3. Application of New Standards, Amendments and Interpretation

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

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

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

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

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

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

New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
Specific provisions of Amendments to IFRS 9 and IFRS 7, ‘Amendments to the classification and measurement of financial instruments’	January 1, 2026
Amendments to IFRS 9 and IFRS 7, ‘Contracts referencing nature-dependent electricity’	January 1, 2026
IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendment to IFRS 17, ‘Initial application of IFRS 17 and IFRS 9 – comparative information’	January 1, 2023
Annual Improvements to IFRS Accounting Standards—Volume 11	January 1, 2026

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

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

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

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

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

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

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

4. Summary of Material Accounting Policies

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

(1) Compliance statement

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

(2) Basis of preparation

A. Except for the following items, the consolidated financial statements have been prepared under the historical cost convention: (a) Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss and financial asset at fair value through profit or loss. (b) Defined benefit liabilities recognized based on the net amount of pension fund assets less present value of defined benefit obligation.

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

(3) Basis of consolidation

A. Basis for preparation of consolidated financial statements: (a) All subsidiaries are included in the Group’s consolidated financial statements. Subsidiaries are all entities (including structured entities) controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries. (b) Inter-company transactions, balances and Unrealized gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

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

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

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

B. Subsidiaries included in the consolidated financial statements:

Name of investor	Name of subsidiary	Main business activities	Ownership(%)		Remark
			December 31, 2025	December 31, 2024
Foxsemicon Integrated Technology Inc.	FOXSEMICON INTEGRATED TECHNOLOGY INC. (SAMOA)	Holding company of overseas reinvestment business	100	100

Name of investor	Name of subsidiary	Main business activities	Ownership(%)		Remark
			December 31, 2025	December 31, 2024
Foxsemicon Integrated Technology Inc.	FOXSEMICON LLC.	A company engaged in import and export freight forwarding business	100	100
Foxsemicon Integrated Technology Inc.	FOX AUTOMATION TECHNOLOGY INC.	Manufacture of machinery, equipment and electronic components	100	100
Foxsemicon Integrated Technology Inc.	Frontier Integrated Global Solutions, Inc.	Manufacture of machinery, equipment and electronic components	100	100
Foxsemicon Integrated Technology Inc.	Kainova Technology Inc.	Manufacture of machinery, equipment and electronic components	100	100
Foxsemicon Integrated Technology Inc.	FOXSEMICON INNOVATIONS HOLDING INC.	Holding company of overseas reinvestment business	100	100
Foxsemicon Integrated Technology Inc.	UNIEQ TECHNOLOGY PTE. LTD.	Holding company of overseas reinvestment business	100	100
Foxsemicon Integrated Technology Inc.	UniEQ Integrated Technology CO., Ltd.	Manufacture of machinery, equipment and electronic components	100	100
Foxsemicon Integrated Technology Inc.	FairTech Corporation	Manufacture of machinery, equipment and electronic components	50.75	-	(2)
FOXSEMICON INNOVATIONS HOLDING INC.	FOXSEMICON TECHNOLOGY, LLC	Research and development and manufacture of machinery, equipment and electronic components	100	100
Kainova Technology Inc.	Kaivaco Technology Nanjing Inc.	Manufacture of machinery, equipment and electronic components	100	100	(3)
Kainova Technology Inc.	Kainova Technology USA, LLC	Manufacture of automation equipment installation and Warranty business	100	100
FOXSEMICON INTEGRATED TECHNOLOGY INC.(SAMOA)	MINDTECH CORPORATION	Holding company of overseas reinvestment business	100	100
FOXSEMICON INTEGRATED TECHNOLOGY INC.(SAMOA)	SUCCESS PRAISE CORPORATION	A location for overseas trading for some companies in Mainland China	100	100

Name of investor	Name of subsidiary	Main business activities	Ownership(%)		Remark
			December 31, 2025	December 31, 2024
FOXSEMICON INTEGRATED TECHNOLOGY INC.(SAMOA)	SMART ADVANCE CORPORATION	A location for overseas trading for some companies in Mainland China	100	100	(1)
FOXSEMICON INTEGRATED TECHNOLOGY INC.(SAMOA)	EVER DYNAMIC CORP	A location for overseas trading for some companies in Mainland China	100	100	(1)
FOXSEMICON INTEGRATED TECHNOLOGY INC.(SAMOA)	LOYAL NEWS INTERNATIONAL LIMITED	A location for overseas trading for some companies in Mainland China	100	100	(1)
MINDTECH CORPORATION	Foxsemicon Integrated Technology (Shanghai) Inc.	Production and sales of electronic special equipment, test instruments, and industrial molds	100	100	(3)
Foxsemicon Integrated Technology (Shanghai) Inc.	Foxsemicon Integrated Technology (Kunshan) Inc.	Develop and produce new alloy materials and electronic special equipment for production and sales	100	100
Foxsemicon Integrated Technology (Shanghai) Inc.	Shanghai EnvoFox Integrated Technology Limit Inc.	Operation of environmental protection automatic control system and environmental engineering production and sales business	100	100
UNIEQ TECHNOLOGY PTE. LTD.	UNIEQ EQUIPMENT MANUFACTURING PRIVATE LIMITED	Manufacture of machinery, equipment and electronic components	100	100
FairTech Corporation	FairTech International Corporation	Holding company of overseas reinvestment business	100	-	(2)
FairTech Corporation	Ann-Sun Resource Technology Co., Ltd.	Processing of aerospace equipment	100	-	(2)
FairTech Corporation	FairTech Corporation LLC	Repair of semiconductor equipment	100	-	(2)
FairTech Corporation	Hakka UAV Corporation	Manufacture and research and development of unmanned aerial vehicle	51	-	(2)
FairTech International Corporation	FairTech Asia Pacific Corporation	Holding company of overseas reinvestment business	100	-	(2)

Name of investor	Name of subsidiary	Main business activities	Ownership(%)		Remark
			December 31, 2025	December 31, 2024
FairTech Asia Pacific Corporation	FairTech Suzhou Corporation	Repair of semiconductor equipment	100	-	(2)

(1) The Company's shareholding ratio in EVER DYNAMIC CORP, LOYAL NEWS INTERNATIONAL LIMITED and SMART ADVANCE CORPORATION was 100%. However, all the companies mentioned above ceased operation in 2014. (2) On May 29, 2025, the company acquired 51% of the outstanding common shares of FairTech Corporation in cash, and it and its subsidiaries were included in the consolidated financial statement preparation entity from the investment date. Please refer to Note 6 (27). (3) The disclosure of the subsidiary mentioned above reinvesting in Mainland China, please refer to Note 13.

C. Subsidiaries not included in the consolidated financial statements: None. D. Adjustments for subsidiaries with different balance sheet dates: None. E. Significant restrictions: None. F. Subsidiaries that have non-controlling interests that are material to the Group.

For subsidiaries with significant non-controlling interests within the Group

As of December 31, 2025, the non-controlling interest amounted to $1,420,313, respectively. The information of non-controlling interest and respective subsidiaries is as follows:

Name of subsidiary	Principal place of business	December 31, 2025		Description
		Amount	Ownership
FairTech Corporation	Taiwan	$ 1,420,313	49.25%	Note

Summarised financial information of the subsidiaries:

Balance sheets

	December 31, 2025
Current assets	$ 1,584,753
Non-current assets	2,728,997
Current liabilities	(222,881)
Non-current liabilities	(317,441)
Total net assets	$ 3,773,428

Statements of comprehensive income

	Years ended December 31, 2025
Revenue	$ 783,917
Profit for the period from continuing operations	161,682
Total comprehensive income for the period	$ 161,682
Comprehensive income attributable to non-controlling interest	$ 3,222
Statements of cash flows

	Years ended December 31, 2025
Net cash used in operating activities	$ 522,755
Net cash used in investing activities	(30,432)
Net cash used in financing activities	(24,145)
Effect of exchange rates on cash and cash equivalents	(176)
Decrease in cash and cash equivalents	468,002
Cash and cash equivalents, beginning of period	441,078
Cash and cash equivalents, end of period	$ 909,080

(4) Foreign currency translation

Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates (the "functional currency"). The consolidated financial statements are presented in New Taiwan Dollars, which is the Company's functional and the Group's presentation currency.

A. Foreign currency transactions and balances

(a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognized in profit or loss in the period in which they arise. (b) Monetary assets and liabilities denominated in foreign currencies at the period end are re-translated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognized in profit or loss. (c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognized in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income; their translation differences are recognized in other comprehensive income. However, non-monetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions. (d) All foreign exchange gains and losses based on the nature of those transactions are presented in the statement of comprehensive income within 'other gains and losses'.

B. Translation of foreign operations

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

i. Assets and liabilities presented in each balance sheet are converted at the exchange rates prevailing at the date of that balance sheet; ii. Income and expense presented in each comprehensive income statement are translated at

average exchange rates of that period; and

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

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

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

(5) Classification of current and non-current items

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

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

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

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

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

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

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

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

(6) Cash equivalents

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

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

A. Financial assets at fair value through profit or loss are financial assets that are not measured at

amortized cost or fair value through other comprehensive income.

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

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

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

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

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

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

C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. The Group subsequently measures the financial assets at fair value. The changes in fair value were recognized in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognized as revenue when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

(9) Financial assets at amortized cost

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

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

B. On a regular way purchase or sale basis, financial assets at amortized cost are recognized and derecognized using trade date accounting.

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

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

(10) Accounts and notes receivable

A. Accounts and notes receivable entitle the Group a legal right to receive consideration in exchange for transferred goods or rendered services.

B. The Group initially measures accounts and notes receivable at fair value and subsequently recognizes the amortized interest income over the period of circulation using the effective interest

method and the impairment loss. A gain or loss is recognized in profit or loss.

(11) Impairment of financial assets

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

(12) Derecognition of financial assets

The Group derecognizes a financial asset when the contractual rights to receive the cash flows from the financial asset expire.

(13) Leasing arrangements (lessor)—operating leases

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

(14) Inventories

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

(15) Investments accounted for using equity method / associates

A. Associates are all entities over which the Group has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognized at cost, including goodwill recognized at the time of acquisition, and less any accumulated impairment loss arising from subsequent evaluations.

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

C. When changes in an associate's equity do not arise from profit or loss or other comprehensive

income of the associate and such changes do not affect the Group’s ownership percentage of the associate, the Group recognizes the Group’s share of change in equity of the associate in ‘capital surplus’ in proportion to its ownership.

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

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

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

G. When the Group disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognized in other comprehensive income in relation to the associate, are reclassified to profit or loss. If it retains significant influence over this associate, the amounts previously recognized in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.

H. When the Group disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognized as capital surplus in relation to the associate are transferred to profit or loss. If it retains significant influence over this associate, the amounts previously recognized as capital surplus in relation to the associate are transferred to profit or loss proportionately.

(16) Property, plant and equipment

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

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

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

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

Buildings and structures: 25~50 year(s)

Machinery and equipment: 5~10 year(s)

Other equipment: 2~15 year(s)

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

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

B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental loan interest rate. Lease payments are comprised of the Fixed payments. The Group subsequently measures the lease liability at amortized cost using the interest method and recognizes interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognized as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

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

(18) Investment property

An investment property is stated initially at its cost and measured subsequently using the cost model. Except for land, investment property is depreciated on a straight-line basis over its estimated useful life of 35 years.

(19) Intangible assets

A. Computer software

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

B. Internally generated intangible assets—research and development expenditures

(a) Research expenditures are recognized as an expense as incurred.

(b) Development expenditures that do not meet the following criteria are recognized as expenses as incurred, but are recognized as intangible assets when the following criteria are met:

i. It is technically feasible to complete the intangible asset so that it will be available for use or sale;

ii. An entity intends to complete the intangible asset and use or sell it;

iii. An entity has the ability to use or sell the intangible asset;

iv. It can be demonstrated how the intangible asset will generate probable future economic benefits;

v. Adequate technical, financial and other resources to complete the development and to use or sell the intangible asset are available; and

vi. The expenditure attributable to the intangible asset during its development can be reliably measured.

(c) Upon being available for use, internally generated intangible assets are amortised on a straight-line basis over their estimated useful life.

C. Goodwill

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

D. Patent rights and technical skills are amortised on a straight-line basis over its estimated useful life of 10 to 19 years.

E. Customer relationship and supplier relationship are obtained as a result of a business combination and are amortised on a straight-line basis over its estimated life of 15 years.

(20) Impairment of non-financial assets

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

(21) Loans

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

(22) Notes and accounts payable

Accounts payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities. The Group initially measures notes and accounts payable at fair value and subsequently measured at amortized cost using the effective interest method. However, short-term accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

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

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

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

(24) Convertible bonds payable

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

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

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

C. The embedded conversion options which meet the definition of an equity instrument are initially recognized in ‘capital surplus—share options’ at the residual amount of total issue price less bonds payable as stated above. Conversion options are not subsequently remeasured.

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

E. When bondholders exercise conversion options, the liability component of the bonds shall be remeasured on the conversion date. The carrying amount of common shares issued due to the conversion shall be based on the adjusted carrying amount of the abovementioned liability component plus the carrying amount of capital surplus - share options.

(25) Derecognition of financial liabilities

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

(26) Offsetting financial instruments

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

(27) Provisions

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

B. Under the Climate Change Response Act and its regulations in the ROC, carbon fees levied are not applicable under IFRIC 21, 'Levies' but are recognised and measured in accordance with IAS 37, 'Provisions, Contingent Liabilities and Contingent Assets'. If the estimated annual emissions are probable to exceed the threshold for levying, liabilities in relation to emission fees are estimated and accrued based on the proportion of emissions already incurred to the estimated annual emissions in the interim financial statements.

(28) Employee benefits

A. Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid and are recognized as expenses in the period in which the employees render service.

B. Pension

(a) Defined contribution plan

For defined contribution plans, the Company has no legal or constructive obligation to make additional contributions after a fixed amount is contributed to a public or privately managed and independent pension fund. The contributions are recognized as pension expenses when they are due on an accrual basis. Prepaid contributions are recognized as an asset to the extent of a cash refund or a reduction in the future payments.

(b) Defined benefit plan

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

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

C. Employees’ compensation and directors’ remuneration

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

(29) Share-based payment - employees’ bonus and compensation

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

(30) Income tax

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

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

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

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

E. Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realized the asset and settle the liability simultaneously. Deferred tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realized the asset and settle the liability simultaneously.

F. Tax incentives arising from research and development expenditures were accounted for using income tax credits.

(31) Dividends

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

(32) Revenue recognition

A. The Group manufactures and sells related products of semi-conductor equipment. Sales are recognized when control of the products has transferred, being when the products are delivered to the buyer, the buyer has full discretion over the price to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, or when the product is delivered to the shipping warehouse and the product is pulled in by the customer, or the Group has objective evidence that all criteria for acceptance have been satisfied. A receivable is recognized when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due. Revenue is only recognized to the extent that it is highly probable that a significant reversal will not occur. The estimation is subject to an assessment at each reporting date. A refund liability is recognized for expected volume discounts payable to customers in relation to sales made until the end of the reporting period.

B. The Group is engaged in the repair of semi-conductor equipment, environmental automation, environmental engineering and other related services. Revenue from providing services is recognized in the accounting period in which the services are rendered. For fixed price contracts, revenue is recognized based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided. This is determined based on the actual labor hours spent relative to the total expected labor hours. The customer pays at the time specified in the payment schedule. If the services rendered exceed the payment, a contract asset is recognized. If the payments exceed the services rendered, a contract liability is recognized.

C. As the time interval between the transfer of committed goods or service and the payment of customer does not exceed one year, the Group does not adjust the transaction price to reflect the time value of money.

(33) Government grants

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

(34) Business combinations

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

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

(35) Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The Group’s chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments.

Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

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

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

Revenue recognition

The Group determines whether the nature of its performance obligation is to provide the specified goods or services itself (i.e. the Group is a principal) or to arrange for the other party to provide those goods or services (i.e. the Group is an agent) based on the transaction model and its economic substance. The Group is a principal if it controls a promised good or service before it transfers the good or service to a customer. The Group recognizes revenue at gross amount of consideration to which it expects to be entitled in exchange for those goods or services transferred. The Group is an agent if its performance obligation is to arrange for the provision of goods or services by another party. The Group recognizes revenue at the amount of any fee or commission to which it expects to be entitled in exchange for arranging for the other party to provide its goods or services.

Indicators that the Group controls the good or service before it is provided to a customer include the following:

A. The Group is primarily responsible for the provision of goods or services; B. The Group assumes the inventory risk before transferring the specified goods or services to the customer or after transferring control of the goods or services to the customer. C. The Group has discretion in establishing prices for the goods or services.

(2) Critical accounting estimates and assumptions

The Group makes estimates and assumptions based on the expectation of future events that are believed to be reasonable under the circumstances at the end of the reporting period. The resulting accounting estimates might be different from the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:

A. Impairment assessment of goodwill

The Group assesses impairment of goodwill based on subjective judgment which includes identifying and allocating assets, liabilities and goodwill to related cash-generating unit to determine recoverable amount of this unit.

As of December 31, 2025, information on the carrying amount of goodwill is provided in Note 6(9).

B. Evaluation of inventories

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

As of December 31, 2025, information on the carrying amount of inventories is provided in Note 6(6).

6. Details of Significant Accounts

(1) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Petty cash and cash on hand	$ 1,885	$ 1,318
Checking accounts and demand deposits	4,510,102	6,182,484
Cash equivalents
Time deposits	2,113,526	1,342,791
	$ 6,625,513	$ 7,526,593

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

B. Time deposits with maturity in excess of three months and restricted time deposits on December 31, 2025 and 2024 have been listed under “financial assets at amortized cost - current” and “financial assets at amortized cost - non-current”, please refer to Note 6(4).

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

Items	December 31, 2025	December 31, 2024
Current items:
Financial assets mandatorily measured at fair value through profit or loss
Derivative instruments	$ -	$ 326
Non-current items:
Financial assets mandatorily measured at fair value through profit or loss
Beneficiary certificates	$ 55,462	$ 48,505
Items	December 31, 2025	December 31, 2024
Current items:
Financial liabilities mandatorily measured at fair value through profit or loss
Derivative instruments	$ -	$ 1,802

A. Financial assets at fair value through profit or loss is as follows:

(a) Beneficiary certificate: Private fund investment.

(b) Derivative instruments: Forward foreign exchange contracts, unsecured convertible bonds under repurchase and resale agreement.

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

	Years ended December 31,
	2025	2024
Derivative instruments	($ 544)	($ 2,639)

C. The non-hedging derivative instruments transaction and contract information are as follows:

December 31, 2024
Derivative Financial Assets	Contract amount (Nominal Principal in thousands)		Contract period
Current items:
Foreign exchange forward contracts	USD(sell)	7,000	November 2024~February 2025
	CNH(buy)	50,722

As of December 31, 2025, the Group has no derivative financial instruments for which hedge accounting was not applied.

The Group enters into foreign exchange forward transactions to reduce the following risk of exchange rate:

i. Operating activities: Import of raw materials and export sales. ii. Investing activities: Import of machinery and equipment. iii. Financing activities: Long-term and short-term foreign currency assets and liabilities.

D. The Group did not have financial assets measured at fair value through other comprehensive income pledged to others.

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

	December 31, 2025	December 31, 2024
Non-current items:
Equity instruments
Unlisted stocks	$ 67,824	$ 241,070
Listed stocks	83,237	97,422
	$ 151,061	$ 338,492

A. The Group has elected to classify investments that are considered to be strategic investments as financial assets at fair value through other comprehensive income. B. The Group doesn't have financial assets measure at fair value through other comprehensive income pledged to other.

C. The details of financial assets measured at fair value through other comprehensive profit and loss recognized in profit and loss and comprehensive profit and loss are as follows:

	Years ended December 31,
	2025	2024
Equity instruments at fair value through other comprehensive income
Fair value recognized in other comprehensive income	($ 182,460)	$ 149,747
Cumulated gains reclassified to retained earnings due to derecognition	$ -	$ 95,609
Dividend income recognized in profit or loss Held at end of period	$ 3,725	$ 3,251

For information on financial assets measured at fair value through other comprehensive gains and losses, please refer to table 3.

(4) Financial assets at amortised cost

Items	December 31, 2025	December 31, 2024
Current items:
Time deposits with maturity in excess of three months	$ 1,405,776	$ 2,679,224
Non-current items:
Restricted deposits	$ 343,605	$ -
Time deposits with maturity in excess of one year	125,888	-
Pledged time deposits	12,827	8,053
	$ 482,320	$ 8,053

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

	Years ended December 31
	2025	2024
Interest income	$ 37,835	$ -

B. The details of the Group provides financial assets at amortised cost as collateral, please refer to Note 8. C. The details of the Group's restricted deposits, please refer to Note 6(27).

(5) Accounts receivable

	December 31, 2025	December 31, 2024
Notes recevable	$ 31	$ 110
Accounts receivable	1,504,445	1,695,554
Less: Allowance for uncollectible accounts	( 1,868)	( 862)
	$ 1,502,608	$ 1,694,802

A. The Group did not hold any collateral on its accounts. B. As of December 31, 2025 and 2024, accounts receivable were all from contracts with customers. And as of January 1, 2024, the balance of receivables from contracts with customers amounted to $782,872. C. Information relating to credit risk is provided in Note 12(2).

(6) Inventories

	December 31, 2025
	Cost	Allowance for valuation loss	Book value
Raw materials	$ 1,080,634	($ 38,006)	$ 1,042,628
Work in progress	1,625,248	( 13,939)	1,611,309
Finished goods	1,880,298	( 104,366)	1,775,932
	$ 4,586,180	($ 156,311)	$ 4,429,869
	December 31, 2024
	Cost	Allowance for valuation loss	Book value
Raw materials	$ 1,012,730	($ 24,787)	$ 987,943
Work in progress	1,462,082	( 12,035)	1,450,047
Finished goods	1,541,122	( 91,105)	1,450,017
	$ 4,015,934	($ 127,927)	$ 3,888,007

The cost of inventories recognized as expense for the year:

	Years ended December 31,
	2025	2024
Cost of goods sold	$ 15,628,534	$ 12,194,494
Loss on decline in market value	86,147	56,965
Sales of scraps	( 129,009)	( 111,916)
Others	15,103	26,444
	$ 15,600,775	$ 12,165,987

(7) Property, plant and equipment

	Land	Buildings and structures	Machinery and equipment	Other equipment	Unfinished construction and equipment under acceptance	Total
January 1, 2025
Cost	$ -	$1,557,665	$3,341,283	$1,658,486	$1,336,843	$7,894,277
Accumulated depreciation	-	(407,140)	(1,662,694)	(638,341)	-	(2,708,175)
	$ -	$1,150,525	$1,678,589	$1,020,145	$1,336,843	$5,186,102
2025
Opening net book amount as at January 1	$ -	$1,150,525	$1,678,589	$1,020,145	$1,336,843	$5,186,102
Additions	139,109	594,806	640,695	194,719	2,800,301	4,369,630
Disposals	-	-	(74,151)	(208)	(3,824)	(78,183)
Acquired from business combinations	297,865	642,041	183,186	17,582	30,881	1,171,555
Reclassifications	-	-	-	-	(38)	(38)
Transfer	60,979	366,897	387,651	10,319	(800,154)	25,692
Depreciation charge	-	(79,395)	(340,805)	(178,545)	-	(598,745)
Net exchange differences	10,311	46,075	44,607	1,484	155,154	257,631
Closing net book amount as at December 31	$508,264	$2,720,949	$2,519,772	$1,065,496	$3,519,163	$10,333,644
At December 31
Cost	$508,264	$3,389,159	$4,662,749	$1,904,272	$3,519,163	$13,983,607
Accumulated depreciation	-	(668,210)	(2,412,977)	(838,776)	-	(3,919,963)
	$508,264	$2,720,949	$2,249,772	$1,065,496	$3,519,163	$10,063,644

	Buildings and structures	Machinery and equipment	Other equipment	Unfinished construction and equipment under acceptance	Total
January 1, 2024
Cost	$ 624,660	$ 3,141,027	$ 756,666	$ 1,462,112	$ 5,984,465
Accumulated depreciation	( 357,120)	( 1,332,856)	( 513,591)	-	( 2,203,567)
	$ 267,540	$ 1,808,171	$ 243,075	$ 1,462,112	$ 3,780,898
2024
Opening net book amount as at January 1	$ 267,540	$ 1,808,171	$ 243,075	$ 1,462,112	$ 3,780,898
Additions	2,016	105,650	133,272	1,510,827	1,751,765
Disposals	-	( 3,277)	( 619)	-	( 3,896)
Reclassifications	-	-	-	( 193)	( 193)
Transfers	915,162	17,043	767,629	( 1,699,695)	139
Depreciation charge	( 41,196)	( 304,938)	( 130,331)	-	( 476,465)
Net exchange differences	7,003	55,940	7,119	63,792	133,854
Closing net book amount as at December 31	$1,150,525	$ 1,678,589	$1,020,145	$ 1,336,843	$ 5,186,102
At December 31
Cost	$1,557,665	$ 3,341,283	$1,658,486	$ 1,336,843	$ 7,894,277
Accumulated depreciation	( 407,140)	( 1,662,694)	( 638,341)	-	( 2,708,175)
	$1,150,525	$ 1,678,589	$1,020,145	$ 1,336,843	$ 5,186,102

A. Information about the property, plant and equipment that were pledged to others as collaterals is provided in Note 8. B. Information about the property, plant and equipment acquired from the Group's business combination for the year ended December 31, 2025, refer to Note 6(27) for details.

(8) Leasing arrangements—lessee

A. The Group leases various assets including land, buildings and structures. Rental contracts are typically made for periods of 5 to 35 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for loan purposes.

B. Short-term leases with a lease term of 12 months, include dormitories and transportation equipment. C. The carrying amount of right-of-use assets and the depreciation charge are as follows:

	December 31, 2025	December 31, 2024
	Carrying amount	Carrying amount
Land	$ 75,994	$ 81,162
Buildings and structures	141,627	504,287
	$ 217,621	$ 585,449
	Years ended December 31,
	2025	2024
	Depreciation charge	Depreciation charge
Land	$ 5,151	$ 5,271
Buildings and structures	66,761	54,438
	$ 71,912	$ 59,709

D. Information about the right-of-use assets acquired from the Group's business combination for the years ended December 31, 2025 was $4,318 please provide in Note 6(27). E. Information about the Group's additions to right-of-use assets for the year ended December 31, 2024 was $308,397; and information relating to acquire right-of-use assets from related parties is provided in Note 7. F. Information on profit or loss in relation to lease contracts is as follows:

	Years ended December 31,
	2025	2024
Items affecting profit or loss
Interest expense on lease liabilities	$ 23,365	$ 15,667
Expense on short-term lease contracts	$ 60,023	$ 46,284
Gain on lease modification	$ 22,907	$ -

G. For the years ended December 31, 2025 and 2024, the Group's total cash outflow for leases were $145,792 and $102,816, respectively.

(9) Intangible asset

	Patent rights and technical skills	Computer software	Goodwill	Customer relationship	Total
At January 1, 2025
Cost	$ -	$ 96,411	$ -	$ -	$ 96,411
Accumulated amortization and impairment	-	( 59,907)	-	-	( 59,907)
	$ -	$ 36,504	$ -	$ -	$ 36,504

2025

Opening net book amount
as at January 1	$	-	$ 36,504	$	$ 36,504
Additions		485	47,677	-	48,162
Acquired from business combinations		272,158	813	918,635	347,449
Amortisation charge	(	16,634)	( 21,177)	-	( 13,512)
Net exchange		-	( 237)	-	( 237)
Closing net book amount
as at December 31	$	256,009	$ 63,580	$ 918,635	$ 333,937
At December 31
Cost	$	274,938	$ 160,769	$ 918,635	$ 347,449
Accumulated amortization and impairment	(	18,929)	( 97,189)	-	( 13,512)
	$	256,009	$ 63,580	$ 918,635	$ 333,937
Computer software	$ 74,428
---	---
At January 1, 2024
Cost
Accumulated amortization and impairment	( 45,647)
	$ 28,781

2024

Opening net book amount
as at January 1		$ 28,781
Additions		20,110
Amortisation charge		( 13,435)
Net exchange		1,048
Closing net book amount
as at December 31		$ 36,504
At December 31
---	---
Cost	$ 96,411
Accumulated amortization and impairment	( 59,907)
	$ 36,504

A. Details of amortization on intangible asset are as follows:

	December 31, 2025	December 31, 2024
Operating costs	$ 8,912	$ 3,823
Selling expenses	28,740	-
Administrative expenses	5,708	4,039
Research and development expenses	7,963	5,573
	$ 51,323	$ 13,435

B. Goodwill is allocated as follows to the Group's cash-generating units identified according to operating segments:

	December 31, 2025	December 31, 2024
Taiwan	$ 918,635	$ -

C. Regarding the intangible asset arising from the Group's business combination for the year ended December 31, 2025, refer to Note 6(27) for details.

(10) Short-term loans

Type of borrowings	December 31, 2025	Interest rate range	Collateral
Bank borrowings
Bank unsecured borrowings	$ 2,194,500	1.84%-1.95%	None.
Type of borrowings	December 31, 2024	Interest rate range	Collateral
Bank borrowings
Bank unsecured borrowings	$ 30,000	2.22%	None.

(11) Other payables

	December 31, 2025	December 31, 2024
Salary and bonus payable	$ 1,082,050	$ 748,490
Payables for equipment	1,042,292	85,467
Processing fees payable	435,257	531,401
Employees’ compensation payable	348,885	362,985
Employee benefit payable	17,140	15,821
Others	506,035	330,068
	$ 3,431,659	$ 2,074,232

(12) Other current liabilities

	December 31, 2025	December 31, 2024
Provisions	$ 96,174	$ 70,862
Refund liabilities	258	25,759
Supplemental loan	-	161,175
Others	49,329	32,749
	$ 145,761	$ 290,545

A. The Group entered into supplemental capacity addendum contracts with its customers. The Group received the supplemental loans in advanced and reserves certain capacity to the

customers. The deposits would be returned in accordance with the contracts. Besides, the amount of estimated volume discounts in the contracts has been recognized as refund liabilities.

B. The information of provisions is as follows:

	Provisions for warranty
	2025
Balance at January 1	$ 70,862
Provisions assumed in business combination	4,165
Additional provisions recognized	85,701
Reversed during the year	(31,520)
Used during the year	(33,034)
Balance at December 31	$ 96,174

The provisions of the Group are related to the sales of the semi-conductor and automatic equipment. Provisions are estimated based on the information of the historical warranty data of the products.

(13) Pension

A. (a) The Company has a defined benefit pension plan in accordance with the Labor Standards Law, covering all regular employees' service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company contributes monthly an amount equal to 2% of the employees' monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions for the deficit by next March.

(b) The amounts recognized in the balance sheet are as follows: (shown as “Other non-current assets”)

	December 31, 2025	December 31, 2024
Present value of defined benefit obligations	$ 33,280	$ 36,510
Fair value of plan assets	( 46,371)	( 45,382)
Net defined benefit asset	($ 13,091)	($ 8,872)

	Present value of defined benefit obligations	Fair value of plan assets	Net defined benefit asset
2025
At January 1	$ 36,510	$ 45,382	($ 8,872)
Current service cost	362	-	362
Interest cost	1,113	-	1,113
Interest income	-	1,079	( 1,079)
	37,985	46,461	( 8,476)
Remeasurements:
Return on plan assets	-	4,791	( 4,791)
Change in financial assumptions	1,074	-	1,074
Experience adjustments	( 897)	-	( 897)
	177	4,791	( 4,614)
Pension fund contribution	-	1	( 1)
Paid pension	( 4,882)	( 4,882)	-
At December 31	$ 33,280	$ 46,371	($ 13,091)
	Present value of defined benefit obligations	Fair value of plan assets	Net defined benefit asset
2024
At January 1	$ 36,976	$ 41,226	($ 4,250)
Current service cost	63	-	63
Interest cost	443	-	443
Interest income	-	495	( 495)
	37,482	41,721	( 4,239)
Remeasurements:
Return on plan assets	-	3,661	( 3,661)
Change in financial assumptions	( 1,126)	-	( 1,126)
Experience adjustments	154	-	154
	( 972)	3,661	( 4,633)
At December 31	$ 36,510	$ 45,382	($ 8,872)

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

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

	Years ended December 31
	December 31, 2025	December 31, 2024
Discount rate	1.30%	1.60%
Future salary increases	3.50%	3.50%

Assumptions regarding future mortality experience are set based on actuarial advice in accordance with published statistics and experience in each territory.

Sensitivity analysis of the effect on present value of defined benefit obligation due from the changes of main actuarial assumptions was as follows:

	Discount rate		Future salary increases
	Increase 0.25%	Decrease 0.25%	Increase 0.25%	Decrease 0.25%
December 31, 2025
Effect on present value of defined benefit obligation	($ 566)	$ 582	$ 496	($ 486)
	Discount rate		Future salary increases
	Increase 0.25%	Decrease 0.25%	Increase 0.25%	Decrease 0.25%
December 31, 2024
Effect on present value of defined benefit obligation	($ 679)	$ 698	$ 594	($ 582)

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

The methods and types of assumptions used in preparing the sensitivity analysis were consistent with previous period.

(f) Expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2026 amount to $0.

(g) As of December 31, 2025, the weighted average duration of that retirement plan is 8 years.

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

(b) The Group's subsidiary in Mainland China contributes monthly pension insurance premiums at 16% of local employees' total salaries in accordance with the pension regulations in the People's Republic of China (PRC). Other than the monthly contributions, the Group has no further obligations.

(c) The pension costs under the defined contribution pension plans of the Group for the years ended December 31, 2025 and 2024, were $175,171 and $142,941, respectively.

(14) Bonds payable

	December 31, 2025	December 31, 2024
Bonds payable	$ -	$ 326,000
Less: Discount on bonds payable	-	( 3,112)
	-	322,888
Less: Long-term liabilities, current portion	-	( 322,888)
	$ -	$ -

A. The issuance of domestic convertible bonds by the Company

(a) The terms of the second unsecured convertible bonds issued by the Company are as follows i. The Company issued $2,000,000, which the amount of fundraising is $2,010,000 and the par rate is 0%, second domestic unsecured convertible bonds, as approved by the regulatory authority. The bonds mature five years from the issue date November 16, 2020 to November 16, 2025 and will be redeemed in cash at face value at the maturity date. The bonds were listed on the Taipei Exchange on November 16, 2020.

ii. The bondholders have the right to ask for conversion of the bonds into common shares of the Company during the period from the date after three months of the bonds issue to the maturity date, except the stop transfer period as specified in the terms of the bonds or the laws/regulations. The rights and obligations of the new shares converted from the bonds are the same as the issued and outstanding common shares.

iii. The conversion price of the bonds is set up based on the pricing model specified in the terms of the bonds, and is subject to adjustments if the condition of the anti-dilution provisions occurs subsequently. The conversion price was NTD 196.9 per share upon issuance. The Company adjusted the conversion price to NTD 156.95 per share as the terms of the bonds on June 28, 2025.

iv. Under the terms of the bonds, all bonds redeemed (including bonds repurchased from the Taipei Exchange), matured and converted are retired and not to be re-issued; all rights and obligations attached to the bonds are also extinguished.

v. The bondholders may request the Company to repurchase the convertible bonds at face value when the bonds are issued for three years.

vi. The Company may repurchase all the bonds outstanding in cash at the bonds' face value at any time after the following events occur: (i) the closing price of the Company's common shares is above the then conversion price by 30% for 30 consecutive trading days during the period from the date after three months of the bonds issue to 40 days before the maturity date, or (ii) the outstanding balance of the bonds is less than 10% of total initial issue amount during the period from the date after three months of the bonds issue to 40 days before the maturity date.

B. Regarding the issuance of convertible bonds, the equity conversion options amounting to $158,325 were separated from the liability component and were recognized in 'capital surplus—share options' in accordance with IAS 32. The call options and put options embedded in bonds payable were separated from their host contracts and were recognized in 'financial assets or liabilities at fair value through profit or loss' in net amount in accordance with IFRS 9 because the economic characteristics and risks of the embedded derivatives were not closely related to those of the host contracts. The effective interest rates of the bonds payable after such separation ranged between 1.1122% and 1.5518%.

C. The conversion of domestic convertible bonds by the Company:

For the years ended December 31, 2025 and 2024, the holders of the company's second unsecured domestic convertible bonds, face value $326,000 and $1,577,700, exercised the conversion right and obtained 2,049,944 and 9,343,808 units of certificate of entitlement to new share from convertible bond (each unit can be exchanged for one outstanding share of the company). The registration were still 605,909 and 1,624,527 units has not completed till December 31, 2025 and 2024.

(15) Long-term liabilities

Type of borrowings	December 31, 2025	Interest rate range	Collateral
Bank borrowings
Secured borrowings	$ 1,168,000	0.885%~1.520%	Property, plant and equipment
Bank unsecured borrowings	320,984	0.885%~2.010%	None
	1,488,984
Less: Long-term liabilities, current portion	(281,463)
	$ 1,207,521
Type of borrowings	December 31, 2024	Interest rate range	Collateral
Bank borrowings
Secured borrowings	$ 1,360,000	0.885%~1.520%	Property, plant and equipment
Bank unsecured borrowings	369,652	1.025%	None
	1,729,652
Less: Long-term liabilities, current portion	(305,696)
	$ 1,423,956

Please refer to Note 8 for further information on property, plant and equipment pledged to others as collateral.

(16) Share capital

As of December 31, 2025, the Company's authorized capital was $1,500,000, consisting of 150,000 thousand shares of ordinary share (including 8,500 thousand shares reserved for employee share options), and the paid-in capital was $1,098,196 with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected.

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

	2025	2024
At January 1	106,000	97,186
Executive employee stock options	751	1,070
Conversion of convertible bonds	3,069	7,744
At December 31	109,820	106,000

(17) Share-based payment

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

Type of arrangement	Grant date	Quantity granted (thousand shares)	Contract period	Vesting conditions
Employee share options	2019.09.27	1,000	5 years	Note
Employee share options	2020.10.30	1,000	5 years	Note
Employee share options	2021.08.09	1,500	5 years	Note
Employee share options	2022.07.08	1,500	5 years	Note
Employee share options	2024.07.22	1,500	5 years	Note

Note: Employees receive 20% after 2 years of service, 60% after 3 years of service, and 100% after 4 years of service.

B. Details of the share-based payment arrangements are as follows:

	2025		2024
	No. of options (thousand shares)	Weighted-average exercise price (in dollars)	No. of options (thousand shares)	Weighted-average exercise price (in dollars)
Options outstanding at January 1	4,404	$ 240.5	4,350	$ 185.6
Options exercised	( 727)	161.7	( 1,011)	154.5
Options given	-	-	1,500	317.0
Options overdue	-	-	( 435)	155.5
Options outstanding at December 31	3,677	256.1	4,404	240.5
Options exercisable at December 31	1,576	233.0	1,103	218.0

Note: Some of the exercised stock options have not been registered, so those are shown as "Advance receipts for share capital".

C. The Company issued common stock for years ended December 31, 2025 and 2024 because employees exercised their stock options under the stock option plan. The registration for the shares mentioned 145,480 and 169,160 shares has not been completed as of December 31, 2025 and 2024.

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

Type of arrangement	Grant date shares)	Stock price (in dollars)	Exercise price (in dollars)	Expected price volatility (%)	Expected option life (year)	Expected dividends (%)	Risk-free interest rate (%)	Fair value per unit
Employee share options	2019.09.27	115.5	115.5	44.51~ 46.91%	3.5~4.5 year(s)	-	0.57~ 0.60%	38.07~ 45
Employee share options	2020.10.30	173	173	46.48~ 49.21%	3.5~4.5 year(s)	-	0.22~ 0.23%	61.8~ 65.95
Employee share options	2021.08.09	229	229	45.82~ 47.45%	3.5~4.5 year(s)	-	0.23~ 0.29%	79.12~ 90.95
Employee share options	2022.07.08	178	178	44.45~ 45.87%	3.5~4.5 year(s)	-	0.96~ 1.02%	59.43~ 69.03
Employee share options	2024.07.22	317	317	35.65~ 39.15%	3.5~4.5 year(s)	-	1.46~ 1.51%	89.02~ 109.46

E. The Group's compensation cost and capital surplus arising from share-based payment transaction amounted to $54,434 and $59,761, for the years ended December 31, 2025 and 2024, respectively.

(18) Capital surplus

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

	2025
	Share premium	Options	Employee stock options	Others	Total
At January 1	$5,499,830	$17,683	$174,691	$23,101	$5,715,305
Share-based payment transactions	-	-	54,434	-	54,434
Employee stock options exercised	152,382	-	(42,139)	-	110,243
Conversion of convertible bonds	322,049	(17,683)	-	-	304,366
Changes in equity of associates and joint ventures accounted	-	-	-	524	524
Recognition of changes in ownership interests in subsidiaries	-	-	-	(18,589)	(18,589)
At December 31	$5,974,261	$-	$186,986	$5,036	$6,166,283
	2024
	Share premium	Options	Employee stock options	Others	Total
At January 1	$3,751,624	$107,297	$169,141	$23,249	$4,051,311
Share-based payment transactions	-	-	59,761	-	59,761
Employee stock options exercised	200,338	-	(54,211)	-	146,127
Conversion of convertible bonds	1,547,868	(89,614)	-	-	1,458,254
Changes in equity of associates and joint ventures accounted	-	-	-	(148)	(148)
At December 31	$5,499,830	$17,683	$174,691	$23,101	$5,715,305

(19) Retained earnings

A. Under the Company's Articles of Incorporation, the current year's earnings, if any, shall first be used to pay all taxes and offset prior years' operating losses (including adjusted undistributed earnings), and then the 10% of the remaining amount shall be set aside as legal reserve until the legal reserve equals the paid-in capital. At least, special reserve shall be appropriated or reversed according to the relevant regulations. The remainder, along with the accumulated unappropriated earnings in the prior year, shall be appropriated to shareholders as dividends, proposed the distribution plan by the Board of Directors and resolved by the shareholders at their meeting.

B. In accordance with the Company Act, the resolution, for all or part of distributable dividends and bonus, capital surplus or legal reserve distributed in cash, will be adopted if more than 2/3 of the directors attend the Board of Directors' meeting and more than 1/2 of the directors present agree to the resolution. This will then be reported to the shareholders' meeting. The regulation which requires approval by the shareholders is not applicable for the above.

C. The Company's dividend policy shall take into account current and future investment environment, capital needs, domestic and foreign competition, and capital budget, etc. along with shareholders' interests and the long-term financial plans. The accumulated distributable earnings are appropriated as dividends or bonuses to shareholders, of which the distributable earnings during the current year shall account for at least 15%. The dividends and bonuses can be distributed in the form of cash or shares and cash dividend shall account for at least 10% of the total dividends and bonuses distributed.

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

E. The appropriations of earnings for 2024 and 2023 have been resolved by the shareholders' meeting on May 28, 2025 and May 27, 2024, respectively, as follows:

	2024		2023
	Amount	Dividends per share (in dollars)	Amount	Dividends per share (in dollars)
Legal reserve	$ 271,289		$ 198,954
Cash dividends	1,564,135	$ 14.5	1,173,260	$ 11.3
	$ 1,835,424		$ 1,372,214

(1) The appropriations of 2024 and 2023 earnings mentioned above is not for difference to the propose from the Board of Directors in February 2025 and 2024.

(2) The cash dividends $1,564,135 proposed by the Board of Directors on February 26, 2025 has fully paid as of the reporting date.

F. The appropriation of 2025 earnings as proposed by the Board of Directors on February 26, 2026 is as follows:

	2025
	Amount	Dividends per share (in dollars)
Legal reserve	$ 234,041
Cash dividends	1,216,590	$ 11.0
	$ 1,450,631

The appropriation mentioned above of 2025 earnings has not been resolved by the shareholders as of February 26, 2026.

Information about the appropriations of earnings as proposed by the Board of Directors and resolved by the shareholders can be demanded in the "Market Observation Post System" at the website of the Taiwan Stock Exchange.

(20) Operating revenue

	Years ended December 31,
	2025	2024
Revenue from contracts with customers	$ 20,841,660	$ 16,454,476

A. Disaggregation of revenue from contracts with customers

The Group derives revenue from the transfer of goods over time and at a point in time. Disaggregation of revenue for the years ended December 31, 2025 and 2024 is as follows:

Years ended December 31, 2025	America	China	Taiwan	Others	Total
Revenue from external customer contracts recognized at a point in time	$ 17,649,746	$ 309,571	$ 2,082,308	$ 800,035	$ 20,841,660
Years ended December 31, 2024	America	China	Taiwan	Others	Total
Revenue from external customer contracts recognized at a point in time	$ 14,283,218	$ 482,325	$ 1,139,718	$ 549,215	$ 16,454,476

B. Contract liabilities

The Group has recognized the following revenue-related contract liabilities:

	December 31, 2025	December 31, 2024	January 1, 2024
Contract liabilities:
Advance sales receipts	$ 114,838	$ 333,823	$ 339,282

(a) Contract liabilities were advance sales receipts. As of December 31, 2025, December 31 2024 and January 1, 2024, contract liabilities were all from contracts with customers. (b) Revenue recognized that was included in the contract liability balance at the beginning of for the years ended December 31, 2025 and 2024 were $275,630 and $103,313 respectively.

(21) Other income

	Years ended December 31,
	2025	2024
Grants income	$ 139,004	$ 86,865
Gain on lease modification	22,907
Rent income	6,578	14,445
Gains on write-off of past due payable	9,293	20,923
Other income, others	21,171	11,824
	$ 198,953	$ 134,057

The grants mentioned above were related to property, plant, and equipment, and were recognized on a systematic basis over the depreciation periods.

(22) Other gains and losses

	Years ended December 31,
	2025	2024
Net foreign exchange (losses) gains	($ 342,571)	$ 240,316
Gains (losses) on financial assets at fair value through profit or loss	( 3,196)	( 2,369)
Gains (losses) on disposals of property, plant and equipment	1,422	( 485)
Other gains and losses	378	( 2,049)
	($ 343,967)	$ 235,413

(23) Expenses by nature

Additional disclosures related to operating costs and operating expenses are as follows:

	Years ended December 31,
	2025	2024
Employee benefit expense	$ 4,330,917	$ 3,261,979
Depreciation expense (Note)	670,657	536,174
Amortisation expense	51,323	13,435
	$ 5,052,897	$ 3,811,588

Note: Depreciation expense includes provision for property, plant and equipment and right-of-use assets.

(24) Employee benefit expense

Nature	Years ended December 31,
	2025	2024
Wages and salaries	$ 3,702,425	$ 2,760,848
Employee stock options	54,434	59,761
Labour and health insurance fees	223,045	161,646
Pension costs	175,567	142,952
Other personnel expenses	175,446	136,772
	$ 4,330,917	$ 3,261,979

A. In accordance with the Articles of Incorporation of the Company, a ratio of distributable profit of the current year, if any, shall be distributed as employees’ compensation and directors’ remuneration after it is resolved by the Board of Directors and reported to the shareholders. The ratio shall be 3%~8% for employees’ compensation and shall not be higher than 0.5% for directors’ and supervisors’ remuneration.

B. For the years ended December 31, 2025 and 2024, employees compensation was accrued at $162,516 and $179,106, respectively; while directors’ remuneration was accrued at $13,177 and $14,786, respectively.

C. Employees’ compensation and directors’ and supervisors’ remuneration of 2025 and 2024 as resolved by the Board of Directors on February 26, 2026 and February 26, 2025 were agreed with those amounts recognized in the 2025 and 2024 financial statements and will be distributed in cash. As of December 31, 2025, the employees’ compensation of 2024 has not paid fully. Information about employees’ compensation and directors’ remuneration of the Company as resolved by the Board of Directors can be demanded in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

(25) Income tax expense

A. Components of income tax expense:

	Years ended December 31,
	2025	2024
Current tax:
Current tax on profits for the period	$ 664,858	$ 589,783
Tax on undistributed surplus earnings	52,388	31,676
Effect from research and development tax credits	( 54,955)	( 65,329)
Prior year income tax (over) underestimation	( 28,033)	8,025
Total current tax	634,258	564,155
Deferred tax:
Origination and reversal of temporary differences	7,613	37,855
Income tax expense	$ 641,871	$ 602,010

B. Reconciliation between income tax expense and accounting profit

	Years ended December 31,
	2025	2024
Tax calculated based on profit before tax and statutory tax rate (note)	$ 888,078	$ 921,055
Effect from items disallowed by tax regulation	( 217,050)	( 297,026)
Effect from research and development tax credits	( 54,955)	( 65,329)
Tax on undistributed surplus earnings	52,388	31,676
Prior year income tax underestimation	( 28,033)	8,025
Temporary differences not recognized as deferred tax assets	1,443	3,609
Income tax expense	$ 641,871	$ 602,010

Note: The basis for computing the applicable tax rate are the rates applicable in the respective countries where the Group entities operate.

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

	2025
	January 1	recognized in profit or loss	Business combinations	Net exchange differences	December 31
Temporary differences:
—Deferred tax assets:
Allowance for inventory valuation loss	$ 1,183	$ 802	$ -	$ -	$ 1,985
Unrealized exchange loss	-	-	-	-	-
Salaries accrued at end of year	6,631	-	-	-	6,631
Government grants	1,310	( 915)	-	( 3)	392
Impairment loss on investments accounted for using the equity method	976	-	-	-	976
Others	-	5,296	-	-	5,296
	$ 10,100	$ 5,183	$ -	($ 3)	$ 15,280
—Deferred tax liabilities:
recognized investment profit or loss which is adopting equity method	( 72,453)	( 10,245)	-	-	( 82,698)
Unrealized exchange gain	( 13,122)	8,920	-	-	( 4,202)
Impact of purchase price allocation adjustments	-	3,755	( 187,321)	-	( 183,566)
	($ 85,575)	$ 2,430	($ 187,321)	$ -	($ 270,466)

	2024
	January 1	recognized in profit or loss	Net exchange differences	December 31
Temporary differences:
—Deferred tax assets:
Allowance for inventory valuation loss	$497	$686	$-	$1,183
Salaries accrued at end of year	6,407	-	224	6,631
Government grants	1,636	(379)	53	1,310
Impairment loss on investments accounted for using the equity method	976	-	-	976
	$9,516	$307	$277	$10,100
—Deferred tax liabilities: recognized investment profit or loss which is adopting equity method	(45,871)	(26,582)	-	(72,453)
Unrealized exchange gain	(1,542)	(11,580)	-	(13,122)
	($47,413)	($38,162)	$-	($85,575)

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

	Years ended December 31,
	2025	2024
Amount of allowance for bad debts in excess of the limit for tax purpose	$36,382	$36,382
Allowance for inventory valuation loss	41,969	54,520
Others	41,737	41,733
	$120,088	$132,635

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

(26) Earnings per share

	Year ended December 31, 2025
	Amount after tax	Weighted average number of ordinary shares outstanding (share in thousands)	Earnings per share (in dollars)
Basic earnings per share
Profit attributable to ordinary shareholders of the parent	$ 2,336,288	108,959	$ 21.44
Diluted earnings per share
Profit attributable to ordinary shareholders of the parent	$ 2,336,288	108,959
Assumed conversion of all dilutive potential ordinary shares
Convertible bonds	14,579	1,455
Employee stock options	-	2,307
Employees’ compensation	-	645
Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	$ 2,350,867	113,366	$ 20.74
	Year ended December 31, 2024
	Amount after tax	Weighted average number of ordinary shares outstanding (share in thousands)	Earnings per share (in dollars)
Basic earnings per share
Profit attributable to ordinary shareholders of the parent	$ 2,612,643	103,607	$ 25.22
Diluted earnings per share
Profit attributable to ordinary shareholders of the parent	$ 2,612,643	103,607
Assumed conversion of all dilutive potential ordinary shares
Convertible bonds	16,446	9,441
Employee stock options	-	2,144
Employees’ compensation	-	644
Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	$ 2,629,089	115,836	$ 22.70

(27) Business combinations

A. On May 29, 2025, the Group acquired 51% of the share capital of FairTech Corporation for cash of $1,704,043 and contingent consideration of $291,347 and obtained the control over FairTech Corporation.

B. The following table summarises the consideration paid for FairTech Corporation and the fair values of the assets acquired and liabilities assumed at the acquisition date, as well as the information regarding non-controlling interest’s proportionate share of the recognized amounts of acquiree’s identifiable net assets at the acquisition date:

	May 29, 2025
Purchase consideration
Cash paid	$ 1,704,043
Contingent consideration	291,347
	1,995,390
Non-controlling interest’s proportionate share of the recognized amounts of acquiree’s identifiable net assets	1,010,499
	3,005,889
Fair value of the identifiable assets acquired and liabilities assumed
Cash	441,078
Accounts receivable	135,910
Inventories	187,807
Other current assets	18,051
Property, plant and equipment	1,171,555
Right-of-use assets	4,318
Patent rights	101,398
Computer software	813
Other non-current assets	9,146
Accounts payable	( 16,356)
Other payables	( 54,982)
Current income tax liabilities	( 53,380)
Provisions	( 4,165)
Other current liabilities	( 26,964)
Other non-current liabilities	( 157,863)
Deferred income tax liabilities	( 187,321)
Total identifiable net assets	1,569,045
Fair value of the identifiable intangible assets
Customer relationship	347,449
Technical skills	170,760
Total identifiable intangible assets	518,209
Goodwill	$ 918,635

C. The fair value of the acquired identifiable intangible assets of $620,420 is provisional pending receipt of the final valuations of those assets.

D. From the date of consolidation of Fairtech corporation by the Group on May 29, 2025, Fairtech corporation generated operating revenue of $902,316 and profit before income tax of $214,008. Had FairTech Corporation been consolidated from January 1, 2025, the consolidated statement of comprehensive income would show operating revenue of $21,291,436 and profit before income tax of $3,174,413.

G. On May 29, 2025, the Group deposited cash amounting to $343,605 with a third-party trust institution according to the equity acquisition agreement, shown as "financial assets at amortized cost".

(28) Supplemental cash flow information

Investing activities with partial cash payments:

	Years ended December 31,
	2025	2024
Purchase of property, plant and equipment	$ 4,369,630	$ 1,751,765
Add: Opening balance of payable on equipment	85,467	61,712
Add: Ending balance of prepaid on equipment	193,888	356,485
Add: Ending balance of prepaid on land	288,547	213,149
Less: Ending balance of payable on equipment	( 1,042,292)	( 85,467)
Less: Opening balance of prepaid on equipment	( 356,485)	( 374,349)
Less: Opening balance of prepaid on land	( 213,149)	-
Cash paid during the period	$ 3,325,606	$ 1,923,295

(29) Changes in liabilities from financing activities

	Lease liabilities	Short-term borrowings	Long-term borrowings (Including current portion)	Bonds payable (Including current portion)	Liabilities from financing activities-gross
At January 1, 2025	$ 620,068	$ 30,000	$ 1,729,652	$ 322,888	$ 2,702,608
Changes in cash flow from financing activities	( 62,404)	2,164,500	( 401,668)	-	1,700,428
Impact of changes in foreign exchange rate	( 9,802)	-	-	-	( 9,802)
Changes in other non-cash items	( 309,721)	-	161,000	( 322,888)	( 471,609)
At December 31, 2025	$ 238,141	$2,194,500	$ 1,488,984	$ -	$ 3,921,625

	Lease liabilities	Short-term borrowings	Long-term borrowings (Including current portion)	Bonds payable (Including current portion)	Liabilities from financing activities-gross
At January 1, 2024	$ 332,692	$ 35,000	$ 1,636,495	$ 1,865,038	$ 3,869,225
Changes in cash flow from financing activities	( 40,865)	( 5,000)	93,157	-	47,292
Impact of changes in foreign exchange rate	28,927	-	-	-	28,927
Changes in other non-cash items	299,314	-	-	( 1,542,150)	( 1,242,836)
At December 31, 2024	$ 620,068	$ 30,000	$ 1,729,652	$ 322,888	$ 2,702,608

7. Related Party Transactions

(1) Names of related parties and relationship

Names of related parties	Relationship with the Group
Hon Hai Precision Industry Co., Ltd. and its subsidiaries (Hon Hai and subsidiaries)	Group with significant influence over the Group
General Interface Solution (GIS) Holding Limited and its subsidiaries (GIS and subsidiaries)	Other related parties
Fredtek Co., Ltd.	Other related parties
Corporate Venture Capital Alliance Innovation Fund	Affiliated company
Lydus Medical Ltd.	Affiliated company

(2) Significant related party transactions

A. Sales

	Years ended December 31,
	2025	2024
Sales of goods:
Group with significant influence over the Group - Hon Hai and subsidiaries	$ 4,753	$ 112

There are no similar transactions for reference for the price of the Group’s sales of goods to related parties. The collection term to related parties is 45~60 days after the invoice date

B. Purchases

	Years ended December 31,
	2025	2024
Purchases of goods:
Fredtek Co., Ltd.	$ 88,017	$ -

There are no similar transactions for reference for the price of the Group’s purchases of goods to related parties. The payment term to related parties is 30 days.

C. Accounts receivable

	December 31, 2025	December 31, 2024
Accounts receivable:
Group with significant influence over the Group
- Hon Hai and subsidiaries	$ -	$ 106
The receivables from related parties arise mainly from sale transactions. The receivables are due 45~60 days after the date of sales.

D. Other receivables from related parties

	December 31, 2025	December 31, 2024
Other receivables from related parties:
Group with significant influence over the Group	$ 2,949	$ 4,135
- Hon Hai and subsidiaries
Other related parties
- GIS and subsidiaries	-	1,770
- Others	623	2
	$ 3,572	$ 5,907

Other receivables from related parties mainly refer to payments on behalf of others.

E. Lease transactions – lessee

(a) The Group leases buildings from Hon Hai and its subsidiaries. Rental contracts are typically made for periods from years 2023 to 2027. Rents are paid quarterly.

(b) Lease liabilities

i. Outstanding balance:

	December 31, 2025	December 31, 2024
Group with significant influence over the Group - Hon Hai and subsidiaries	$ 38,481	$ 56,652

ii. Interest expense:

	Years ended December 31,
	2025	2024
Group with significant influence over the Group - Hon Hai and subsidiaries	$ 2,969	$ 3,931

F. Acquisition of financial assets:

	Accounts	No. of shares	Year ended December 31, 2024
			Consideration
Corporate Venture Capital Alliance Innovation Fund	Investments accounted for using equity method	2,250	$ 22,500

The Group had no acquisitions of financial assets from related parties in 2025.

G. Key management compensation

	Years ended December 31,
	2025	2024
Short-term employee benefits	$ 72,121	$ 61,041
Post-employment benefits	648	621
	$ 72,769	$ 61,662

Pledged Assets

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

Pledged asset	Purpose	Book value
		December 31, 2025	December 31, 2024
Building and structure
(shown as property, plant and equipment)	Long-term borrowings	$ 869,271	$ 895,415
Other equipment
(shown as property, plant and equipment)	Long-term borrowings	613,726	686,644
Time deposits
(shown as other non-current assets)	Guarantee of Science Park Bureau	10,869	6,106
Time deposits
(shown as other non-current assets)	Customs guarantee	1,958	1,947
		$ 1,495,824	$ 1,590,112

Significant Contingent Liabilities and Unrecognized Contract Commitments

(1) Contingencies

Except for the recognized provision, the Group was not expected any material liabilities that could arise from the contingent liabilities.

(2) Commitments

Capital expenditure contracted for at the balance sheet date but not yet incurred is as follows:

	December 31, 2025	December 31, 2024
Property, plant and equipment	$ 1,536,915	$ 2,793,481
Intangible asset	$ 490	$ -

Significant Disaster Loss

None.

Significant Events after the Balance Sheet Date

A. The Board of Directors have approved the proposal for the appropriation of earnings in 2025 on February 26, 2026, as described in Note6(19).

B. The Board of Directors have approved the proposal for a capital lending to its Thai subsidiary, UniEQ Integrated Technology Co., Ltd., for a principal amount of USD 25,000,000 and a term of one year, on February 26, 2026.

C. On February 26, 2026, at the Company's Board of Directors meeting, Young Liu, the representative of corporate director Hung Yang Venture Capital Co., Ltd., resigned from his position as Chairman due to a change in the corporate director's designated representative. Subsequently, Bob Chen was elected as the new Chairman by a majority vote of the directors.

Others

(1) Capital management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide the maximum returns for shareholders and to positively reduce the gearing ratio and the cost of capital.

(2) Financial instruments

D. Financial instruments by category

	December 31, 2025	December 31, 2024
Financial assets
Financial assets at fair value through profit or loss	$ 55,462	$ 48,831
Financial assets at fair value through other comprehensive income	151,061	338,492
Financial assets at amortized cost (Note)	10,283,358	11,912,338
	$ 10,489,881	$ 12,299,661
Financial liabilities
Financial liabilities at fair value through profit or loss	$ -	$ 1,802
Financial liabilities at amortised cost (Note)	8,549,333	5,868,273
Lease liability	238,141	620,068
Investment payable of contingent consideration	293,999	-
	$ 9,081,473	$ 6,490,143

Note: Financial assets at amortized cost included cash and cash equivalents, financial assets at amortized cost (included non-current), accounts receivable and other receivables; and financial liabilities at amortized cost included long-term and short-term loans, accounts payable, other payables, long-term liabilities-current portion and bonds payable.

E. Financial risk management policies

(a) Categories of risk

The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, price risk and interest rate risk), credit risk and liquidity risk. The Group’s overall risk management policy focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group’s financial position and financial performance.

(b) Objectives of management

Risk management is carried out by a central treasury department (Group treasury) under policies approved by the Board of Directors. Group treasury identifies, evaluates and hedges financial risks in close co-operation with the Group’s operating units. The Board provides written principles for overall risk management, as well as written policies covering specific areas and matters, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.

F. Significant financial risks and degrees of financial risks

(a) Market risk

Foreign exchange risk

i. Nature

The Group operates internationally and is exposed to foreign exchange risk arising from various currencies, primarily with respect to the USD and RMB. Foreign exchange rate risk arises from recognized assets and liabilities.

ii. Management

Management has set up a policy to require group companies to manage their foreign exchange risk against their functional currency. The group companies are required to hedge their entire foreign exchange risk exposure with the Group treasury.

iii. Degree

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

	December 31, 2025
	Foreign currency amount (In thousands)	Exchange rate	Book value (NTD)	Sensitivity analysis Degree of variation	Effect on profit or loss
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD	$ 219,184	31.43	$ 6,888,953	1%	$ 68,890
USD:RMB	81,584	6.99	2,564,185	1%	25,642
Financial liabilities
Monetary items
USD:NTD	94,384	31.43	2,966,489	1%	29,665
USD:RMB	32,677	6.99	1,027,038	1%	10,270
	December 31, 2024
	Foreign currency amount (In thousands)	Exchange rate	Book value (NTD)	Sensitivity analysis Degree of variation	Effect on profit or loss
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD	$ 189,032	32.79	$ 6,198,359	1%	$ 61,984
USD:RMB	70,000	7.32	2,295,300	1%	22,953
Financial liabilities
Monetary items
USD:NTD	102,064	32.79	3,346,679	1%	33,467
USD:RMB	35,792	7.32	1,173,620	1%	11,736

iv. The total exchange gain, including realized and unrealized, arising from significant foreign exchange variation on the monetary items held by the Group for the years ended December 31, 2025 and 2024, amounted to $342,571 and $240,316, respectively.

Price risk

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

ii. The Group's investments in equity securities comprise shares issued by the domestic and foreign companies which are classified as investments in financial assets at fair value

through other comprehensive income. The prices of equity securities would change due to the change of the future value of investee companies. However, the fluctuation in prices are not expected to have significant influence over the value of investee companies.

Cash flow and fair value interest rate risk

i. The Group’s main interest rate risk arises from long-term and short-term loans. Loans issued at fixed rates expose the Group to fair value interest rate risk. Group policy is to maintain at least 0.5%~2% of its loans at fixed rate. The Group has no significant interest rate based on the assessment.

ii. The Group's interest rate risk arises from long-term borrowings. Long-term borrowings at floating rates expose the Group to cash flow interest rate risk, but most of this risk is offset by cash and cash equivalents held at floating rates. If the long-term borrowing rate increases or decreases by 1%, and all other factors remain unchanged, the net profit after tax from for the years ended December 31, 2025 and 2024 will decrease or increase by $16,299 and $14,571 respectively.

(b) Credit risk

i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, and the contract cash flows of debt instruments stated at amortized cost and at fair value through profit or loss. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors. The utilisation of credit limits is regularly monitored.

ii. The Group adopts industrial characteristics and past experience, the default occurs when the contract payments are past due over 90 days.

iii. Under IFRS 9 which the Group adopts, if the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

iv. The following indicators are used to determine whether the credit impairment of debt instruments has occurred:

(i) It becomes probable that the issuer will enter bankruptcy or other financial reorganization due to their financial difficulties;

(ii) The disappearance of an active market for that financial asset because of financial difficulties;

(iii) Default or delinquency in interest or principal repayments;

(iv) Adverse changes in national or regional economic conditions that are expected to

cause a default.

v. The ageing analysis of receivables (including related parties) is as follows:

	December 31, 2025	December 31, 2024
Not past due	$ 1,584,031	$ 1,620,355
Up to 90 days	172,715	82,224
91 to 180 days	10,348	969
181 to 270 days	1,157	41
271 to 360 days	3,086	-
Over due 360 days	280	3,794
	$ 1,771,617	$ 1,707,383

vi. The Group classifies customers' accounts receivable in accordance with credit rating. The Group applies the modified approach using the loss rate methodology or provision matrix to estimate the expected credit loss. The Group used the market forecast ability of SEMI and The Basel Committee on Banking Supervision to adjust historical and timely information to assess the default possibility of notes receivable and accounts receivable. On December 31, 2025 and 2024, loss allowance estimated by the provision matrix or loss rate methodology is as follows:

December 31, 2025	Group 1	Group 2	Total
Expected loss rate	0.05%-1%	0.05%-1%
Total book value	$ 1,432,700	$ 338,917	$ 1,771,617
Loss allowance	($ 1,336)	($ 532)	($ 1,868)
December 31, 2024	Group 1	Group 2	Total
Expected loss rate	0.05%	0.05%
Total book value	$ 1,676,734	$ 30,649	$ 1,707,383
Loss allowance	($ 837)	($ 25)	($ 862)

Group 1: Standard Poor's, Fitch's, or Moody's rating of A-level, or rated as A-level in accordance with the Group's credit rating for those that do not have external credit ratings.

Group 2: Rated as other than A in accordance with the Group's credit rating for those that have no external credit ratings.

vii. Movements in relation to the Group applying the modified approach to provide loss allowance for receivables (including related parties) are as follows:

	2025	2024
At January 1	$ 862	$ 232
Assumed in business combination	1,382	-
Reversal of impairment loss	(377)	630
Effect of exchange rate changes	1	-
At December 31	$ 1,868	$ 862

viii. The Group wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Group will continue executing the recourse procedures to secure their rights.

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

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

Except for those whose maturity date were less than 360 days as of December 31, 2025 and 2024, the remaining non-derivative financial liabilities (including long-term and short-term loans, accounts payable, other payables, current portion of long-term liabilities and guarantee deposits received) are listed below:

December 31, 2025	Less than 1 year	Between 1 and 3 years	Over 3 years
Non-derivative financial liabilities:
Long-term borrowings	$ 311,407	$ 606,498	$ 673,633
Lease liability	59,856	98,531	110,117
December 31, 2024	Less than 1 year	Between 1 and 3 years	Over 3 years
Non-derivative financial liabilities:
Bonds payable	$ 326,000	$ -	$ -
Long-term borrowings	326,333	645,912	873,792
Lease liability	106,252	217,984	495,169
Deposits received	161,175	-	-

(3) Fair value information

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

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

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

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

B. The carrying amounts of the Group's financial instruments not measured at fair value (including cash and cash equivalents, financial assets at amortized cost, accounts receivable (including due from related parties), other receivables (including due from related parties), long-term and short-term loans, accounts payable, other payables and bonds payable (including current portion) are approximate to their fair values.

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

(a) The related information of natures of the assets is as follows:

December 31, 2025	Level 1	Level 2	Level 3	Total
Assets
Recurring fair value measurements
Financial assets at fair value through profit or loss
Beneficiary certificates	$ -	$ -	$ 55,462	$ 55,462
Financial assets at fair value through other comprehensive income
Equity securities	83,237	-	67,824	151,061
	$ 83,237	$ -	$ 123,286	$ 206,523
Liabilities
Recurring fair value measurements
Investment payable of contingent consideration	-	-	293,999	293,999
	$ -	$ -	$ 293,999	$ 293,999

December 31, 2024	Level 1	Level 2	Level 3	Total
Assets
Recurring fair value measurements
Financial assets at fair value through profit or loss
Beneficiary certificates	$ -	$ -	$ 48,505	$ 48,505
Derivative instruments	-	326	-	326
Financial assets at fair value through other comprehensive income
Equity securities	97,422	-	241,070	338,492
	$ 97,422	$ 326	$ 289,575	$ 387,323
Liabilities
Recurring fair value measurements
Financial assets at fair value through profit or loss
Derivative instruments	$ -	$ 1,802	$ -	$ 1,802

(b) The Group's financial assets at fair value through other comprehensive income on December 31, 2025 and 2024 are financial assets included in Level1, in order to obtain listed stocks, the Group uses closing price as their fair values. (c) Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the consolidated balance sheet date (i.e. yield curves on the Taipei Exchange, average commercial paper interest rates quoted from Reuters).

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

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

	2025	2024
Assets
At January 1	$ 289,575	$ 130,273
Acquired in the period	6,957	21,145
Gains and losses recognized in other comprehensive income	( 166,325)	134,967
Effect of exchange rate changes	( 6,921)	3,190
At December 31	123,286	289,575
Liabilities
At January 1	$ -	$ -
Additions	( 291,347)	-
Loss recognized in profit or loss	( 2,652)	-
At December 31	($ 293,999)	$ -

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

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

	Fair value at December 31, 2025	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
Non-derivative equity instrument:
Private equity fund investment	$ 55,462	Net asset value	Not applicable	Not applicable	Not applicable
Unlisted shares	67,824	Market comparable companies	Liquidity discount	26-35%	The higher the discount rate, the lower the fair value.
	Fair value at December 31, 2024	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
Non-derivative equity instrument:
Private equity fund investment	$ 48,505	Net asset value	Not applicable	Not applicable	Not applicable
Unlisted shares	241,070	Market comparable companies	Liquidity discount	24-40%	The higher the discount rate, the lower the fair value.

H. The Group has carefully assessed the valuation models and assumptions used to measure fair value. However, use of different valuation models or assumptions may result in different measurement. The following is the effect of profit or loss or of other comprehensive income from financial assets and liabilities categorised within Level 3 if the inputs used to valuation models have changed:

	Input	Change	December 31, 2025
			recognized in other comprehensive income
			Favourable change	Unfavourable change
Financial assets
Equity instruments	Liquidity discount	±5%	$ 4,974	($ 4,974)
			December 31, 2024
			recognized in other comprehensive income
	Input	Change	Favourable change	Unfavourable change
Financial assets
Equity instruments	Liquidity discount	±5%	$ 16,591	($ 16,591)

13. Supplementary Disclosures

The disclosures on investee companies were based on financial statements audited by Certified Public Accountants and the following transactions with subsidiaries were eliminated when preparing consolidated financial statements. The following disclosure information is for reference only.

(1) Significant transactions information

A. Loans to others: Please refer to table 1. B. Provision of endorsements and guarantees to others: Please refer to table 2. C. Holding of significant marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 3. D. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company’s paid-in capital: Please refer to table 4. E. Acquisition of real estate with a transaction amount exceeding NTD 300 million or 20% of the Company’s paid-in capital: Please refer to table 5. F. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 6. G. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 7. H. Significant inter-company transactions during the reporting period: Please refer to table 8.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to table 9.

(3) Information on investments in Mainland China

A. Basic information: Please refer to table 10.

B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: The Company provided purchases and sales to an investee company in the Mainland Area, Foxsemicon Integrated Technology (Shanghai) Inc., through SUCCESS PRAISE CORPORATION. The transactions have been fully written-off in the consolidated financial statements. Please refer to Note 13(1) for the significant transactions of purchases, sales, receivables and payables between the Company and investee companies in the Mainland Area.

14. Operating Segment Information

(1) General information

The Group is primarily engaged in the production and sales of semiconductor equipment subsystems and system integration. The chief operating decision-maker allocates resources and assesses performance based on the overall financial statements. It is identified that the Group is a single operating segment and there is only one reportable operating segment.

The Group's operating segment information is prepared in accordance with the Group's accounting policies. The chief operating decision-maker allocates resources and assesses performance of the operating segments primarily based on the operating revenue and profit (loss) before tax of individual operating segment.

(2) Information on products and services

Revenue from external customers is mainly from the sales business of abovementioned single reportable segments. Therefore products revenue is the reportable segment revenue.

(3) Geographical information

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

	Year ended		Year ended
	December 31, 2025 Revenue	December 31, 2025 Non-current assets	December 31, 2024 Revenue	December 31, 2024 Non-current assets
America	$ 17,649,746	$ 319,417	$ 14,283,218	$ 397,961
Taiwan	2,082,308	4,827,633	1,139,718	2,237,632
China	309,571	1,682,899	482,325	1,938,586
Thailand		5,908,761		1,642,351
Others	800,035	1,033	549,215	260,024
	$ 20,841,660	$ 12,739,743	$ 16,454,476	$ 6,476,554

(4) Major customer information

For the years ended December 31, 2025 and 2024, details of revenue from which customers accounted for at least 10% of operating revenues in the consolidated statement of comprehensive income are as follows:

Years ended December 31,
2025	2024
Sales revenue	Sales revenue
$ 16,481,408	$ 13,957,363

Customer - Group A

Foxsemicon Integrated Technology Inc. and subsidiaries

Loans to others

Year ended December 31, 2025

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

No.	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the year ended December 31, 2025	Balance at December 31, 2025	Actual amount drawn down	Interest rate	Nature of loan	Amount of transactions with the borrower	Reason for short-term financing	Allowance for doubtful accounts	Item	Value	Limit on loans granted to a single party	Ceiling on total loans granted	Footnote
0	Foxsemicon Integrated Technology Inc.	Foxsemicon Integrated Technology (Kunshan) Inc.	Other receivables due from related parties	Y	$ 785,750	$ -	$ -	2.80%	Business transactions	$ 2,837,118	-	$ -	None.	$ -	$ 2,837,118	$ 9,923,675	Notes 1 and 2
1	FOX Automation Technology Inc.	UniEQ Integrated Technology Co., Ltd	Other receivables due from related parties	Y	295,561	295,561	295,561	2.00%	Working Capital	-	Working Capital	-	None.	-	358,898	358,898	Note 3
2	Foxsemicon Integrated Technology (Shanghai) Inc.	UniEQ Integrated Technology Co., Ltd	Other receivables due from related parties	Y	1,888,320	1,888,320	-	1.30%	Working Capital	-	Working Capital	-	None.	-	2,593,386	2,593,386	Note 3

Note 1: For the companies who have business relationship with the Company, ceiling on total loans to others shall not exceed 60% of the net assets value of the Company. Note 2: For the companies who have business relationship with the Company, financial limit on loans granted to a single party shall not exceed the amount of business transactions occurred between the creditor and borrower. The amount of business transactions means the higher between the actual sales and the actual purchases in the last year or in the following year and shall not exceed 20% of the net assets value of the Company. Note 3: The total loans extended by the subsidiary to companies with which it has short-term financing arrangements should not exceed 40% of the subsidiary's net assets; the loans to any single such company shall not exceed 40% of the subsidiary's net assets. Note 4: The total loans extended by the parent company to companies with which it has short-term financing arrangements should not exceed 40% of the parent company's net assets; the loans to any single such company shall not exceed 35% of the parent company's net assets. Note 5: The net assets referred to above are based on the latest audited or reviewed financial statements.

Table 1, Page 1

Foxsemicon Integrated Technology Inc. and subsidiaries

Provision of endorsements and guarantees to others

Year ended December 31, 2025

Table 2 Expressed in thousands of NTD (Except as otherwise indicated)

No.	Endorser/guarantor	Company name	Relationship with the endorser/guarantor	Limit on endorsements/guarantees provided for a single party	Maximum outstanding endorsement/guarantee amount as of December 31, 2025	Outstanding endorsement/guarantee amount at December 31, 2025	Actual amount drawn down	Amount of endorsements /guarantees secured with collateral	Ratio of accumulated endorsement/guarantee amount to net asset value of the Endorser/guarantor company	Ceiling on total amount of endorsements/guarantees provided	Provision of endorsements/guarantees by parent company to subsidiary	Provision of endorsements/guarantees by subsidiary to parent company	Provision of endorsements/guarantees to the party in Mainland China	Footnote
0	Foxsemicon Integrated Technology Inc.	Foxsemicon Technology, LLC.	Note 1	$ 8,269,729	$ 197,380	$ 197,380	$ 121,948	-	1.20	$ 16,539,459	Y	N	N	Note 2

Note 1: A subsidiary that the Company and subsidiaries directly or indirectly held more than 50% equity interests of common shares. Note 2: The ceiling on total amount of endorsements/guarantees provided to others by the Company is the Company's net assets in the latest financial statement which was reviewed or audited by independent accountant. Limit on total endorsements/guarantees provided for a single party is 50% of the Company's net assets in the latest financial statement which was reviewed or audited by independent accountant. Note 3: Limit on endorsements and guarantees to a company of which the Company directly or indirectly holds 100%, should not exceed 10% of the company's net assets in the latest financial statement which was reviewed or audited by independent accountant. Limit on endorsements and guarantees to a single party shall not exceed 80% of the company's net assets.

Foxsemicon Integrated Technology Inc. and subsidiaries

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

Year ended December 31, 2025

Table 3

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account	As of December 31, 2025				Footnote
				Number of shares	Book value	Ownership (%)	Fair value
Foxsemicon Integrated Technology Inc.	Common stock of Advanced Optoelectronic Technology, Inc.	None.	Financial asset measured at fair value through other comprehensive income-non-current	167,000	$ 2,405	0.12	$ 2,405
Foxsemicon Integrated Technology Inc.	Common stock of ChenFull Precision Co. Ltd	None.	Financial asset measured at fair value through other comprehensive income-non-current	745,000	80,832	1.26	80,832
Foxsemicon Integrated Technology Inc.	Partnership of AVITIC FUND	None.	Financial assets at fair value through profit or loss - non-current	-	55,462	8.00	55,462
MINDTECH CORPORATION	Common stock of SuperbVue Solutions Inc.	None.	Financial asset measured at fair value through other comprehensive income-non-current	12,250,000	-	10.03	-	Note
MINDTECH CORPORATION	Common stock of Pollux Technologies, Inc.	None.	Financial asset measured at fair value through other comprehensive income-non-current	7,350,000	20,819	11.60	20,819	Note
MINDTECH CORPORATION	Common stock of Linyange Semiconductor, Inc.	None.	Financial asset measured at fair value through other comprehensive income-non-current	4,900,000	19,387	10.03	19,387	Note
Foxsemicon Integrated Technology (Shanghai) Inc.	MEMS CORE Co., Ltd	None.	Financial asset measured at fair value through other comprehensive income-non-current	137,754	27,618	18.00	27,618

Note: The shareholding ratio above is agreed upon in the investment contract and the article of association of those companies. However, it is still in the period of capital injection.

Foxsemicon Integrated Technology Inc. and subsidiaries

Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Companys paid-in capital

Year ended December 31, 2025

Table 4

Investor	Marketable securities	General ledger account	Counterparty	Relationship with the investor	Transaction currency	Balance as at January 1, 2025		Addition		Disposal				End of the period
						Number of shares	Amount	Number of shares	Amount	Number of shares	Selling price	Book value	Gain (loss) on disposal	Number of shares	Amount
Foxsemicon Integrated Technology Inc.	FairTech Corporation	Note 1	FairTech Corporation	Note 3	NTD	-	$ -	16,495,055	$ 2,318,799	-	$ -	$ -	$ -	16,459,055	$ 2,318,799
Foxsemicon Integrated Technology Inc.	UniEQ Integrated Technology Co., Ltd	Note 1	UniEQ Integrated Technology Co., Ltd	Note 2	NTD	45,819,999	4,353,356	10,840,000	1,037,212	-	-	-	-	56,659,999	5,390,568
Foxsemicon Integrated Technology Inc.	Foxsemicon Innovations Holding Inc.	Note 1	Foxsemicon Innovations Holding Inc.	Note 2	NTD	15,000,000	451,191	10,000,000	315,550	-	-	-	-	25,000,000	766,741

Note 1: Code of general ledger account is "investments accounted for under equity method". Note 2: A subsidiary directly owned by the Company with 100% ownership. Note 3: A subsidiary directly owned by the Company with 50.75% ownership.

Foxsemicon Integrated Technology Inc. and subsidiaries

Acquisition of real estate reaching NT$300 million or 20% of paid-in capital or more

Year ended December 31, 2025

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

Real estate acquired by	Real estate acquired	Date of the event (Note 1)	Currency	Transaction amount (Note 2)	Payment amount	Counterparty	Relationship with the counterparty	Footnote	If the counterparty is a related party, information as to the last transaction of the real estate is disclosed below:				Basis or reference used in setting the price	Reason for acquisition of real estate and status of the real estate	Other commitments
									Original owner who sold the real estate to the	Relationship between the original owner and the	Date of the original transaction	Amount
UniEQ Integrated Technology Co., Ltd	Unfinished Construction	2023/11/10	THB	$ 3,273,049	$ 2,769,536	Acter Technology Co. Ltd. + T.Y. Lin Engineering Consulting Co., Ltd	None.	Not applicable	Not applicable	Not applicable	Not applicable	Not applicable	Price comparison and negotiation	Operation requirement	None.
UniEQ Integrated Technology Co., Ltd	Unfinished Construction	2023/11/10	THB	720,720	288,000	Santa Corporation Public Company Limited	None.	Not applicable	Not applicable	Not applicable	Not applicable	Not applicable	Price comparison and negotiation	Operation requirement	None.
UniEQ Integrated Technology Co., Ltd	Unfinished Construction	2025/11/8	THB	640,000	64,000	WHA Premium Growth Freehold and Leasehold Real Estate Investment Trust	None.	Not applicable	Not applicable	Not applicable	Not applicable	Not applicable	Price comparison and negotiation	Operation requirement	None.

Note1: A forecast transaction information in the capital budget approved by the Board of Directors, and the actual transaction referred to the order of UniEQ Integrated Technology Co., Ltd. Note 2: An actual contracted amount of UniEQ Integrated Technology Co., Ltd.

Foxsemicon Integrated Technology Inc. and subsidiaries

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

Year ended December 31, 2025

Table 6

Expressed in thousands of NTD

(Except as otherwise indicated)

Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction				Compared to third party transactions		Notes/accounts receivable (payable)
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Foxsemicon Integrated Technology Inc.	SUCCESS PRAISE CORPORATION	Subsidiaries	Purchases	$ 7,877,323	62	45 days from the invoice date	Note 1	No significant difference	($ 1,170,633)	( 42)
Foxsemicon Integrated Technology Inc.	Foxsemicon Integrated Technology (Kunshan) Inc.	Subsidiaries	Purchases	2,871,631	22	45 days from the invoice date	Note 1	No significant difference	( 628,320)	( 23)
Foxsemicon Integrated Technology Inc.	UniEQ Integrated Technology Co., Ltd	Subsidiaries	Purchases	544,010	4	45 days from the invoice date	Note 1	No significant difference	( 204,363)	( 7)
Foxsemicon Integrated Technology (Shanghai) Inc.	SUCCESS PRAISE CORPORATION	Affiliated company	Sale	7,967,179	88	45 days from the invoice date	Note 1	No significant difference	1,181,471	72
Foxsemicon Integrated Technology (Shanghai) Inc.	Foxsemicon Integrated Technology (Kunshan) Inc.	Subsidiaries	Sale	279,558	3	45 days from the invoice date	Note 1	No significant difference	39,905	2
Foxsemicon Integrated Technology (Shanghai) Inc.	Frontier Integrated Global Solutions, Inc.	Affiliated company	Sale	312,969	3	45 days from the invoice date	Note 1	No significant difference	84,964	5
Foxsemicon Integrated Technology (Shanghai) Inc.	UniEQ Integrated Technology Co., Ltd	Affiliated company	Sale	299,227	3	45 days from the invoice date	Note 1	No significant difference	241,371	15
Foxsemicon Integrated Technology (Kunshan) Inc.	Foxsemicon Integrated Technology (Shanghai) Inc.	Parent company	Sale	1,179,557	28	45 days from the invoice date	Note 1	No significant difference	228,108	19
Foxsemicon Integrated Technology (Kunshan) Inc.	UniEQ Integrated Technology Co., Ltd	Affiliated company	Sale	108,242	3	45 days from the invoice date	Note 1	No significant difference	357,074	29

Note 1: Unless there are similar transactions, the prices and terms were determined in accordance with mutual agreements. Otherwise, the transaction terms were similar to general transaction terms. Note 2: Opposite related party transaction is not disclosed.

Foxsemicon Integrated Technology Inc. and subsidiaries

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

Year ended December 31, 2025

Table 7

Creditor	Counterparty	Relationship with the counterparty	Balance as at December		Turnover rate	Overdue receivables		Amount collected subsequent to the balance sheet date	Allowance for Creditor Counterparty doubtful accounts
			31, 2025			Amount	Action taken
Foxsemicon Integrated Technology Inc.	Foxsemicon Integrated Technology (Shanghai) Inc.	Subsidiaries	$ 890,029	Note	Not applicable	$ 434,508	Subsequent collection	$ 333,898	$ -
Foxsemicon Integrated Technology Inc.	UniEQ Integrated Technology Co., Ltd	Subsidiaries	258,307	Note	Not applicable	192,842	Positive	-	-
Foxsemicon Integrated Technology (Shanghai) Inc.	SUCCESS PRAISE CORPORATION	Affiliated company	1,181,471		5.9	379,856	Subsequent collection	379,856	-
Foxsemicon Integrated Technology (Shanghai) Inc.	UniEQ Integrated Technology Co., Ltd	Affiliated company	241,371		2.3	192,803	Positive	-	-
Foxsemicon Integrated Technology (Kunshan) Inc.	Foxsemicon Integrated Technology Inc.	Ultimate parent	628,320		4.7	367,787	Subsequent collection	251,596	-
Foxsemicon Integrated Technology (Kunshan) Inc.	Foxsemicon Integrated Technology (Shanghai) Inc.	Parent company	228,108		4.7	36,277	Subsequent collection	33,454	-
Foxsemicon Integrated Technology (Kunshan) Inc.	UniEQ Integrated Technology Co., Ltd	Affiliated company	357,074		0.5	352,379	Positive	-	-
UniEQ Integrated Technology Co., Ltd	Foxsemicon Integrated Technology Inc.	Parent company	204,363		5.3	22,199	Subsequent collection	19,475	-
SUCCESS PRAISE CORPORATION	Foxsemicon Integrated Technology Inc.	Ultimate parent	1,170,633		5.8	68,921	Subsequent collection	68,921	-

Note: Receivables arising from the procurement of raw materials on behalf of others.

Foxsemicon Integrated Technology Inc. and subsidiaries

Significant inter-company transactions during the reporting periods

Year ended December 31, 2025

Table 8

Expressed in thousands of NTD

(Except as otherwise indicated)

Number (Note 1)	Company name	Counterparty	Relationship (Note 2)	Transaction (Note 4)
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
0	Foxsemicon Integrated Technology Inc.	SUCCESSPRAISECORPORATION	(1)	Purchases	$ 7,877,323	45 days from the invoice date	38
0	Foxsemicon Integrated Technology Inc.	Foxsemicon Integrated Technology (Kunshan) Inc.	(1)	Purchases	2,871,631	45 days from the invoice date	14
0	Foxsemicon Integrated Technology Inc.	UniEQ Integrated Technology Co., Ltd	(1)	Purchases	544,010	45 days from the invoice date	3
0	Foxsemicon Integrated Technology Inc.	SUCCESSPRAISECORPORATION	(1)	Accounts payable	1,170,633	45 days from the invoice date	4
0	Foxsemicon Integrated Technology Inc.	Foxsemicon Integrated Technology (Kunshan) Inc.	(1)	Accounts payable	628,320	45 days from the invoice date	2
0	Foxsemicon Integrated Technology Inc.	UniEQ Integrated Technology Co., Ltd	(1)	Accounts payable	204,363	45 days from the invoice date	1
0	Foxsemicon Integrated Technology Inc.	Foxsemicon Integrated Technology (Shanghai) Inc.	(1)	Other receivable	890,029	45 days from the invoice date	3
0	Foxsemicon Integrated Technology Inc.	UniEQ Integrated Technology Co., Ltd	(1)	Other receivable	258,307	45 days from the invoice date	1
1	Foxsemicon Integrated Technology (Shanghai) Inc.	SUCCESSPRAISECORPORATION	(3)	Sales	7,967,179	45 days from the invoice date	38
1	Foxsemicon Integrated Technology (Shanghai) Inc.	Foxsemicon Integrated Technology (Kunshan) Inc.	(1)	Sales	279,558	45 days from the invoice date	1
1	Foxsemicon Integrated Technology (Shanghai) Inc.	Frontier Integrated Global Solutions, Inc.	(3)	Sales	312,969	45 days from the invoice date	2
1	Foxsemicon Integrated Technology (Shanghai) Inc.	UniEQ Integrated Technology Co., Ltd	(3)	Sales	299,227	45 days from the invoice date	1
1	Foxsemicon Integrated Technology (Shanghai) Inc.	SUCCESSPRAISECORPORATION	(3)	Accounts receivable	1,181,471	45 days from the invoice date	4

Table 8, Page 1

				Transaction (Note 4)
Number(Note 1)	Company name	Counterparty	Relationship (Note 2)	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
1	Foxsemicon Integrated Technology (Shanghai) Inc.	UniEQ Integrated Technology Co., Ltd	(3)	Accounts receivable	$ 241,371	45 days from the invoice date	1
2	Foxsemicon Integrated Technology (Kunshan) Inc.	Foxsemicon Integrated Technology (Shanghai) Inc.	(2)	Sales	1,179,557	45 days from the invoice date	6
2	Foxsemicon Integrated Technology (Kunshan) Inc.	UniEQ Integrated Technology Co., Ltd	(3)	Sales	108,242	45 days from the invoice date	1
2	Foxsemicon Integrated Technology (Kunshan) Inc.	Foxsemicon Integrated Technology (Shanghai) Inc.	(2)	Accounts receivable	228,108	45 days from the invoice date	1
2	Foxsemicon Integrated Technology (Kunshan) Inc.	UniEQ Integrated Technology Co., Ltd	(3)	Accounts receivable	357,074	45 days from the invoice date	1

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows: (1)Parent company is '0'. (2)The subsidiaries are numbered in order starting from '1'. Note 2: Relationship between transaction company and counterparty is classified into the following three categories; fill in the number of category each case belongs to: (1)Parent company to subsidiary. (2)Subsidiary to parent company. (3)Subsidiary to subsidiary. Note 3: The disclosures are related parties reaching $100 million or 20% of paid-in capital or more only, otherwise are not disclosed. Note 4: Percentage of total consolidated revenues or total assets is calculated using the total consolidated assets at the end of the year when the subject of transaction is an asset/liability, and is calculated by total consolidated revenues during the year when the subject of transaction is a revenue/expense. However, the transactions were eliminated when preparing the consolidated financial statements.

Foxsemicon Integrated Technology Inc. and subsidiaries

Information on investees

Year ended December 31, 2025

Table 9 Expressed in thousands of NTD (Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial investment amount		Shares held as at December 31, 2025			Net income of investee as of December 31, 2025	Investment income (loss) recognised by the Company for the year ended December 31, 2025	Footnote
				Balance as at December 31, 2025	Balance as at December 31, 2024	Number of shares	Ownership (%)	Book value
Foxsemicon Integrated Technology Inc.	FOXSEMICON INTEGRATED TECHNOLOGY INC.(SAMOA)	Samoa	Reinvestment and holding company	$ 1,253,890	$ 1,253,890	40,474,913	100	$ 6,647,812	$ 940,982	$ 940,982
Foxsemicon Integrated Technology Inc.	Foxsemicon Innovations Holding Inc.	US	Reinvestment and holding company	766,741	451,191	25,000,000	100	202,072	(	199,385)
Foxsemicon Integrated Technology Inc.	FOXSEMICON LLC.	US	Exports/Imports Logistics	1,751	1,751	50,000	100	33,317	25	25
Foxsemicon Integrated Technology Inc.	UNIEQ TECHNOLOGY PTE. LTD.	Singapore	Reinvestment and holding company	6,039	944	200,000	100	4,963	(	693)
Foxsemicon Integrated Technology Inc.	FOX Automation Technology Inc.	Taiwan	Manufacturing of machinery and equipment and electronic parts	312,573	312,573	20,000,000	100	897,245	290,076	290,076
Foxsemicon Integrated Technology Inc.	Frontier Integrated Global Solutions, Inc.	Taiwan	Manufacturing of machinery and equipment and electronic parts	5,000	5,000	500,000	100	60,759	33,821	33,821
Foxsemicon Integrated Technology Inc.	Kainova Technology Inc.	Taiwan	Manufacturing of machinery and equipment and electronic parts	55,000	55,000	5,500,000	100	125,578	41,273	41,273
Foxsemicon Integrated Technology Inc.	FairTech Corporation	Taiwan	Manufacturing of machinery and equipment and electronic parts	2,318,799	Note 3	16,495,055	50.75	2,353,113	158,460	80,727	Note 1
Foxsemicon Integrated Technology Inc.	Lydus Medical Ltd.	Israel	Research, design and sale of medical machinery	89,790	89,790	416,310	16.21	76,717	(	33,969)
Foxsemicon Integrated Technology Inc.	SMART BREAST CORPORATION	US	Manufacturing of medical machinery	17,643	17,643	7,890,640	17.62	-	(	19,567)
Foxsemicon Integrated Technology Inc.	Corporate Venture Capital Alliance Innovation Fund	Taiwan	Reinvestment and holding company	45,000	45,000	4,500,000	21.43	29,371	(	14,959)
Foxsemicon Integrated Technology Inc.	UniEQ Integrated Technology Co., Ltd.	Thailand	Manufacturing of machinery and equipment and electronic parts	5,390,568	4,353,356	56,659,999	100	5,356,706	(	263,527)
FOXSEMICON INTEGRATED TECHNOLOGY INC.(SAMOA)	MINDTECH CORPORATION	Samoa	Reinvestment and holding company	2,451,540	2,557,620	34,977,541	100	6,519,464	922,033	922,033
FOXSEMICON INTEGRATED TECHNOLOGY INC.(SAMOA)	SUCCESS PRAISE CORPORATION	Samoa	Reinvestment and holding company	119,434	124,602	3,800,000	100	128,336	18,950	18,950
Foxsemicon Innovations Holding Inc.	Foxsemicon Technology, LLC	US	Research and Development and manufacturing of machinery and equipment and electronic parts	784,179	490,211	Note 2	100	201,987	(	199,377)

Table 9, Page 1

Investor	Investee	Location	Main business activities	Initial investment amount		Shares held as at December 31, 2025			Net income of investee as of December 31, 2025	Investment income (loss) recognised by the Company for the year ended December 31, 2025	Footnote
				Balance as at December 31, 2025	Balance as at December 31, 2024	Number of shares	Ownership (%)	Book value
Kainova Technology Inc.	Kainova Technology USA, LLC.	US	Research and Development and manufacturing of machinery and	$ 12,572	$ 13,116	40,000	100	$ 7,724 ($	2,681)	($ 2,681)
UNIEQ TECHNOLOGY PTE. LTD.	UNIEQ EQUIPMENT MANUFACTURING PRIVATE LIMITED	Inida	Research and Development and manufacturing of machinery and equipment and electronic parts	942	384	270,000	100	640 (	128)	( 128)
FairTech Corporation	FairTech International Corporation	Samoa	Reinvestment and holding company	42,162	Note 3	2,000,000	100	29,044	7,132	7,132	Note 1
FairTech Corporation	Ann-Sun Resource Technology Co., Ltd.	Taiwan	Processing of aerospace equipment	14,410	Note 3	1,441,000	100	21,723	3,473	3,473	Note 1
FairTech Corporation	FairTech Corporation LLC	South Korea	Repair of semiconductor equipment	5,685	Note 3	Note 2	100	27,586	2,913	2,913	Note 1
FairTech Corporation	Hakka UAV Corporation	Taiwan	Manufacture and research and development of unmanned aerial vehicle	40,800	Note 3	4,080,000	51	57,619	6,575	3,353	Note 1
FairTech International Corporation	FairTech Asia Pacific Corporation	Samoa	Reinvestment and holding company	37,332	Note 3	2,000,000	100	28,749	7,169	7,169	Note 1
FairTech International Corporation	Quiz Technology Enterprise Inc.	Samoa	Reinvestment and holding company	6,289	Note 3	5,000,000	100	-	-	-	Note 4
Quiz Technology Enterprise Inc.	Ranking Trading Incorporated	Samoa	Reinvestment and holding company	6,132	Note 3	10,000,000	100	-	-	-	Note 4

Note 1: The Company started to recognize gain or loss of associates and joint ventures accounted for using equity method in the month of acquisition Note 2: The company is a limited company and has no shares issued. Note 3: On May 29, 2025, the Company acquired $51%$ of the shares of FairTech Corporation., and has recognized its share of gains and losses of the subsidiary and its consolidated subsidiaries from the date. Note 4: Quiz Technology Enterprise Inc. and Ranking Trading Incorporated have completed their dissolution and liquidation on November 10, 2025.

Foxsemicon Integrated Technology Inc. and subsidiaries

Information on investments in Mainland China

Year ended December 31, 2025

Table 10

Expressed in thousands of NTD

(Except as otherwise indicated)

Investee in Mainland China	Main business activities	Paid-in capital (Note 1)	Investment method (Note 2)	Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2025	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31, 2025		Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2025	Net income of investee as of December 31, 2025	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31, 2025 (Note 3)	Book value of investments in Mainland China as of December 31, 2025	Accumulated amount of investment income remitted back to Taiwan as of December 31, 2025
					Remitted to Mainland China	Remitted back to Taiwan
Foxsemicon Integrated Technology (Shanghai) Inc.	Production and sales of electronic special equipment, test instruments, and industrial models	$ 2,451,540	2	$ 2,451,540	$ -	$ -	$ 2,451,540	$ 910,884	100	$ 910,884	$ 6,483,466	$ -
Kaivaco Technology Nanjing Inc.	Production and sales of electronic special equipment, test instruments, and industrial models	6,356	1	6,356	-	-	6,356	(268)	100	(268)	6,695	-
FairTech Suzhou Corporation	Repair of semiconductor equipment	35,202	2	-	-	-	53,745	7,207	100	7,207	28,509	-

Company name	Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2025	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA
Foxsemicon Integrated Technology Inc.	2,451,540	3,173,533	9,928,548
Kainova Technology Inc.	6,356	6,757	80,000
FairTech Corporation	53,745	-	787,671

Note 1: The amounts in the table are shown in New Taiwan Dollars. Transactions denominated in foreign currencies are translated into New Taiwan Dollars at the spot exchange rates at the balance sheet date. Note 2: Investment methods are classified into the following three categories; fill in the number of category each case belongs to:

(1)Directly invest in a company in Mainland China. (2)Invested in Mainland China through the third party, FOXSEMICON INTERGRATED TECHNOLOGY INC. (3)Others

Note 3:Investment income (loss) recognition is based on financial statements that are audited or reviewed by R.O.C. parent company's CPA.

Note 4: The Company reinvested in Mainland China investees, Foxsemicon Integrated Technology (Kunshan) Inc. and Shanghai EnvoFox integrated technology limit inc. through the investing business in Mainland China investee, which were not required to file an application to the Investment Commission of Ministry of Economic Affairs (MOEA). However, the investing business in Mainland China is a controlling company and shall apply the reinvestment to the Investment Commission of Ministry of Economic Affairs (MOEA).

Table 10, Page 2

AI assistant

Fiti — Audit Report / Information 2025

52322_rns_2026-04-16_ecfddf4f-4bdd-455b-ab8c-2baaedbc0d20.pdf

INDEPENDENT AUDITORS' REPORT

Opinion

Basis of opinion

Key audit matters

Sales revenue cut-off

Description

How our audit addressed the matter

Evaluation of inventories

Description

How our audit addressed the matter

Assessment of the reasonableness of the purchase price allocation for business combination

Description

How our audit addressed the matter

Other matter – Parent company only financial reports

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

Auditors’ responsibilities for the audit of the consolidated financial statements

FOXSEMICON INTERGRATED TECHNOLOGY INC. AND SUBSIDIARIES AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2025 AND 2024

FOXSEMICON INTERGRATED TECHNOLOGY INC. AND SUBSIDIARIES AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2025 AND 2024

FOXSEMICON INTERGRATED TECHNOLOGY INC. AND SUBSIDIARIES AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

YEARS ENDED DECEMBER 31, 2025 AND 2024

FOXSEMICON INTERGRATED TECHNOLOGY INC. AND SUBSIDIARIES AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 AND 2024

FOXSEMICON INTERGRATED TECHNOLOGY INC. AND SUBSIDIARIES AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 AND 2024

FOXSEMICON INTERGRATED TECHNOLOGY INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024

1. History and Organization

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

3. Application of New Standards, Amendments and Interpretation

4. Summary of Material Accounting Policies

(1) Compliance statement

(2) Basis of preparation

(3) Basis of consolidation

(4) Foreign currency translation

6. Details of Significant Accounts

(1) Cash and cash equivalents

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

(6) Inventories

(28) Supplemental cash flow information

(29) Changes in liabilities from financing activities

7. Related Party Transactions

(1) Names of related parties and relationship

(2) Significant related party transactions

A. Sales

B. Purchases

C. Accounts receivable

D. Other receivables from related parties

E. Lease transactions – lessee

Price risk

Cash flow and fair value interest rate risk

(b) Credit risk

13. Supplementary Disclosures

(1) Significant transactions information

(2) Information on investees

(3) Information on investments in Mainland China

14. Operating Segment Information

(1) General information

(2) Information on products and services

(3) Geographical information

(4) Major customer information

Foxsemicon Integrated Technology Inc. and subsidiaries

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

Foxsemicon Integrated Technology Inc. and subsidiaries

Foxsemicon Integrated Technology Inc. and subsidiaries

Foxsemicon Integrated Technology Inc. and subsidiaries

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

Foxsemicon Integrated Technology Inc. and subsidiaries

Significant inter-company transactions during the reporting periods

Foxsemicon Integrated Technology Inc. and subsidiaries

Fiti Audit Report / Information 2025