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FOXTRON VEHICLE TECHNOLOGIES CO., LTD.

PARENT COMPANY ONLY FINANCIAL

STATEMENTS AND INDEPENDENT AUDITORS’

REPORT

DECEMBER 31, 2025 AND 2024

(Stock Code 2258)

Address : 7F., No. 26, Baogao Rd., Xindian Dist., New

Taipei City, Taiwan (R.O.C)

Tel : (02) 5590-6168

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.

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INDEPENDENT AUDITORS' REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of Foxtron Vehicle Technologies Co., Ltd.

Opinion

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

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

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the parent company only financial statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountant of the 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.

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Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Company’s 2025 parent company only financial statements. These matters were addressed in the context of our audit of the parent company only financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

Key audit matters for the Company’s 2025 parent company only financial statements are stated as follows:

Intangible asset-impairment assessment of car model technology development costs

Description

Refer to Note 4(13) for accounting policies on intangible assets, Note 4(14) for accounting policies on impairment of non-financial assets, Note 5 for significant accounting estimates and assumptions of intangible assets, and Note 6(9) for details of intangible assets.

The Company’s car model technology development costs amounted to $5,946,015 thousand as at December 31, 2025. An impairment assessment is performed annually when there is an indication of impairment. As the calculation of value in use involves management’s judgements, such as the estimation of future cash flows of product life cycles and the determination of discount rate, etc., which are highly uncertain and have a material impact in the estimation of value in use, the impairment assessment of car model technology development costs was identified as a key audit matter.

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How our audit addressed the matter

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

Obtained an understanding of and assessed the key control procedures performed by management, including review and approval of financial budgets and assumptions.
Compared the parameters used in predicting future cash flows with historical experience, economic and industrial forecasts.
Compared the parameters used in determining discount rate with the assumptions on capital cost of cash generating units, and with returns rate on similar assets.
Verified the valuation model calculation.
Assessed the future cash flow sensitivity analysis prepared by management based on the alternative hypothesis using different discount rates, and confirming whether management had adequately managed the possible impact on the estimation uncertainty of impairment valuation.
Evaluated the competence of experts appointed by management.

Sales revenue recognition of electric vehicles

Description

Refer to Note 4(23) for accounting policies on revenue recognition and Note 6(18) for details of sales revenue.

For the year ended December 31, 2025, the net operating revenue recognised by the Company was $4,146,473 thousand, and the sales of various electric vehicle products was the main source of revenue. For the year ended December 31, 2025, the amount and proportion of sales revenue of electric vehicles were material. As the Company may be affected by performance growth pressure and fierce industry competition, the risk of the existence of sales revenue recognition of electric vehicles would increase. Therefore, we identified the existence of sales revenue recognition of electric vehicles a key audit matter.

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How our audit addressed the matter

Assessed and tested the design and operating effectiveness of the key controls over the existence of sales revenue.
Selected samples and performed statistical procedures on sales revenue transactions by checking customer purchase orders, sales transactions vouchers (such as customers' receipts, etc.) and write-off of collection vouchers.
Performed confirmation of material counterparties of sales revenue, including examining whether there is any difference between the customer's recognised amount of sales revenue and the amount indicated in the customers' confirmation, and investigated the differences, if any.

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

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

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

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

Auditors’ responsibilities for the audit of the parent company only financial statements

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

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

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

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements of the current period and are therefore the key audit matters. We describe these matters in our 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, Chieh-Ju

Hsu, Sheng-Chung

For and on behalf of PricewaterhouseCoopers, Taiwan

March 4, 2026

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

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

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FOXTRON VEHICLE TECHNOLOGIES CO., LTD.
PARENT COMPANY ONLY BALANCE SHEETS
DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

Assets	Notes	December 31, 2025		December 31, 2024
		AMOUNT	%	AMOUNT	%
Current assets
1100	Cash and cash equivalents	6(1)	$ 1,639,810	10	$ 4,111,667	20
1136	Financial assets at amortised cost - current	6(2) and 9
			30,874	-	1,148,041	6
1140	Contract assets - current	6(18) and 7	220,924	1	142,532	1
1170	Accounts receivable, net	6(3)	35,910	-	78,351	-
1180	Accounts receivable, net - related parties	7
			65,726	-	57,811	-
1200	Other receivables	7	42,387	-	71,171	-
1220	Income tax assets - current		12,520	-	10,188	-
130X	Inventories	6(4)	1,085,559	6	1,593,342	8
1410	Prepayments	6(5) and 7	428,710	3	530,347	3
11XX	Total current assets		3,562,420	20	7,743,450	38
Non-current assets
1550	Investments accounted for using equity method	6(6)
			55,054	-	82,966	-
1600	Property, plant and equipment	6(7)	4,473,606	27	3,891,093	19
1755	Right-of-use assets	6(8) and 7	315,941	2	377,057	2
1780	Intangible assets	6(9)	6,039,285	36	6,721,446	32
1840	Deferred income tax assets	6(21)	1,469,996	9	1,493,135	7
1900	Other non-current assets	6(10) and 7	926,870	6	367,729	2
15XX	Total non-current assets		13,280,752	80	12,933,426	62
1XXX	Total assets		$ 16,843,172	100	$ 20,676,876	100

(Continued)

FOXTRON VEHICLE TECHNOLOGIES CO., LTD.
PARENT COMPANY ONLY BALANCE SHEETS
DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity	Notes	December 31, 2025		December 31, 2024
		AMOUNT	%	AMOUNT	%
Current liabilities
2130	Contract liabilities - current	6(18) and 7	$ 642,150	4	$ 20,867	1
2170	Accounts payable		364,988	2	1,082,186	5
2180	Accounts payable - related parties	7	137,598	1	219,334	1
2200	Other payables	6(11)	999,033	6	944,146	5
2220	Other payables - related parties	7	107,475	1	130,593	1
2280	Lease liabilities - current		86,192	-	79,772	-
2300	Other current liabilities	9	84,048	-	60,312	-
21XX	Total current liabilities		2,421,484	14	2,537,210	13
Non-current liabilities
2527	Contract liabilities - non-current	6(18)	276,500	2	276,500	1
2550	Provisions for liabilities - non-current	6(12)	111,703	1	89,649	-
2570	Deferred income tax liabilities	6(21)	391,095	2	414,234	2
2580	Lease liabilities - non-current		247,757	1	312,906	2
2600	Other non-current liabilities	6(13)	6,414	-	400	-
25XX	Total non-current liabilities		1,033,469	6	1,093,689	5
2XXX	Total liabilities		3,454,953	20	3,630,899	18
Equity
Share capital
3110	Ordinary share	6(15)	17,482,562	104	17,413,140	84
3140	Advance receipts for share capital	6(15)	11,251	-	-	-
Capital surplus
3200	Capital surplus	6(16)	6,076,409	36	6,066,557	29
Retained earnings
3350	Accumulated deficit	6(17)	( 10,181,151)	( 60)	( 6,434,477)	( 31)
Other equity
3400	Other equity interest		( 852)	-	757	-
3XXX	Total equity		13,388,219	80	17,045,977	82
Significant contingent liabilities and unrecognised contract commitments
3X2X	Total liabilities and equity		$ 16,843,172	100	$ 20,676,876	100

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

FOXTRON VEHICLE TECHNOLOGIES CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars, except for loss per share amount)

	Items	Notes	Year ended December 31
			2025		2024
			AMOUNT	%	AMOUNT	%
4000	Operating revenue	6(18) and 7	$ 4,146,473	100	$ 8,520,611	100
5000	Operating costs	6(4)(19)(20) and 7	( 3,318,348)	( 80)	( 6,910,735)	( 81)
5900	Gross profit from operations		828,125	20	1,609,876	19
6100	Operating expenses
6200	Selling expenses		( 56,060)	( 1)	( 47,596)	( 1)
6300	General and administrative expenses		( 686,615)	( 17)	( 600,723)	( 6)
6300	Research and development expenses		( 3,996,727)	( 96)	( 3,637,657)	( 43)
6000	Total operating expenses		( 4,739,402)	( 114)	( 4,285,976)	( 50)
6900	Net operating loss		( 3,911,277)	( 94)	( 2,676,100)	( 31)
7000	Non-operating income and expenses
7100	Interest income		40,874	1	81,358	1
7010	Other income	7	128,746	3	109,856	1
7020	Other gains and losses	7 and 9	31,238	1	13,223	-
7050	Finance costs		( 5,560)	-	( 4,627)	-
7070	Share of (loss) profit of subsidiaries, associates and joint ventures accounted for using equity method		( 26,303)	( 1)	2,311	-
7000	Total non-operating income and expenses		168,995	4	202,121	2
7900	Loss before income tax		( 3,742,282)	( 90)	( 2,473,979)	( 29)
7950	Income tax benefit	6(21)	-	-	336,650	4
8200	Loss for the year		( $ 3,742,282)	( 90)	( $ 2,137,329)	( 25)
	Components of other comprehensive income that will not be reclassified to profit or loss
8311	Losses on remeasurements of defined benefit plans	6(13)	( $ 4,392)	-	( $ 1,960)	-
8349	Income tax related to components of other comprehensive income that will not be reclassified to profit or loss	6(21)	-	-	392	-
8310	Other comprehensive loss that will not be reclassified to profit or loss		( 4,392)	-	( 1,568)	-
	Components of other comprehensive income that will be reclassified to profit or loss
8361	Currency translation differences		( 1,609)	-	1,898	-
8300	Other comprehensive (loss) income		( $ 6,001)	-	$ 330	-
8500	Total comprehensive loss		( $ 3,748,283)	( 90)	( $ 2,136,999)	( 25)
	Basic and diluted loss per share
9750	Loss per share	6(22)	( $ 2.15)	( $ 1.23)

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

FOXTRON VEHICLE TECHNOLOGIES CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY
YEARS ENDED DECEMBER 31, 2025 AND 2024
(Expressed in thousands of New Taiwan dollars)

	Notes	Ordinary share	Advance receipts for share capital	Capital surplus	Accumulated deficit	Exchange differences on translation of foreign financial statements	Total equity
2024
Balance at January 1		$ 17,413,140	$ -	$ 6,053,782	($ 4,295,580)	($ 1,141)	$ 19,170,201
Loss for the year		-	-	-	( 2,137,329)	-	( 2,137,329)
Other comprehensive income (loss) for the year		-	-	-	( 1,568)	1,898	330
Total comprehensive income (loss) for the year		-	-	-	( 2,138,897)	1,898	( 2,136,999)
Share-based payments	6(14)	-	-	12,775	-	-	12,775
Balance at December 31		$ 17,413,140	$ -	$ 6,066,557	($ 6,434,477)	$ 757	$ 17,045,977
2025
Balance at January 1		$ 17,413,140	$ -	$ 6,066,557	($ 6,434,477)	$ 757	$ 17,045,977
Loss for the year		-	-	-	( 3,742,282)	-	( 3,742,282)
Other comprehensive loss for the year		-	-	-	( 4,392)	( 1,609)	( 6,001)
Total comprehensive income		-	-	-	( 3,746,674)	( 1,609)	( 3,748,283)
Employee stock options	6(14)(15)	69,422	11,251	-	-	-	80,673
Share-based payments	6(14)(16)	-	-	9,852	-	-	9,852
Balance at December 31		$ 17,482,562	$ 11,251	$ 6,076,409	($ 10,181,151)	($ 852)	$ 13,388,219

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

FOXTRON VEHICLE TECHNOLOGIES CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 AND 2024

(Expressed in thousands of New Taiwan dollars)

	Notes	Year ended December 31
		2025	2024
CASH FLOWS FROM OPERATING ACTIVITIES
Loss before tax		($ 3,742,282)	($ 2,473,979)
Adjustments
Adjustments to reconcile profit (loss)
Depreciation	6(19)	740,801	660,368
Amortisation	6(19)	912,611	966,513
Expected credit losses (impairment gain)	12(2)	160	( 1,492 )
Share of loss (profit) accounted for using equity method		26,303	( 2,311 )
Finance costs		5,560	4,627
Interest income		( 40,874 )	( 81,358 )
Share-based payments	6(14)	9,852	12,775
Losses on disposals of property, plant and equipment		-	74
Changes in operating assets and liabilities
Changes in operating assets
Contract assets		( 78,479 )	104,087
Accounts receivable		42,371	50,319
Accounts receivable - related parties		( 7,918 )	67,660
Other receivables		28,783	( 44,579 )
Inventories		508,968	( 997,607 )
Prepayments		101,637	( 137,413 )
Changes in operating liabilities
Contract liabilities		621,283	154,706
Accounts payable		( 717,198 )	531,150
Accounts payable - related parties		( 81,735 )	134,940
Other payables		82,413	340,474
Other payables - related parties		( 24,432 )	36,819
Provisions for liabilities		22,053	77,078
Other current liabilities		23,737	( 17,980 )
Net defined benefit liability		1,635	( 3,016 )
Cash outflow generated from operations		( 1,564,751 )	( 618,145 )
Interest received		40,874	81,358
Interest paid		( 5,560 )	( 4,627 )
Income tax paid		( 2,331 )	( 7,512 )
Net cash flows used in operating activities		( 1,531,768 )	( 548,926 )
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of investments accounted for using equity method		-	( 38,859 )
Decrease in financial assets at amortised cost - current		1,117,168	1,900,684
Acquisition of property, plant and equipment	6(23)	( 1,837,316 )	( 3,162,302 )
Proceeds from disposal of property, plant and equipment		-	282
Acquisition of intangible assets		( 230,450 )	( 474,297 )
Decrease in guarantee deposits		79	1,656
Net cash flows used in investing activities		( 950,519 )	( 1,772,836 )
CASH FLOWS FROM FINANCING ACTIVITIES
Payments of lease liabilities		( 70,243 )	( 74,769 )
Employee stock options exercised	6(15)	80,673	-
Net cash flows from (used in) financing activities		10,430	( 74,769 )
Net decrease in cash and cash equivalents		( 2,471,857 )	( 2,396,531 )
Cash and cash equivalents at beginning of year		4,111,667	6,508,198
Cash and cash equivalents at end of year		$ 1,639,810	$ 4,111,667

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

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FOXTRON VEHICLE TECHNOLOGIES CO., LTD.

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2025 AND 2024

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

1. History and Organisation

Foxtron Vehicle Technologies Co., Ltd. (the “Company”) was incorporated as a company limited by shares under the provisions of the Company Act of the Republic of China (R.O.C.) on November 6, 2020 and was listed on the Taiwan Innovation Board on November 20, 2023. The Company is primarily engaged in the design and manufacture of vehicles and related components. As of December 31, 2025, Hon Hai Precision Ind. Co., Ltd. holds 46% equity interest in the Company, and is the Company’s ultimate parent company.

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

These financial statements were authorised for issuance by the Board of Directors on March 4, 2026.

3. Application of New Standards, Amendments and Interpretations

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

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

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

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

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

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

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

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

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

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

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

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

IFRS 18, 'Presentation and disclosure of 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 parent company only financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

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

(2) Basis of preparation

A. Except for defined benefit liabilities recognised based on the net amount of pension fund assets less present value of defined benefit obligation, the parent company only financial statements have been prepared under the historical cost convention.

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

(3) Foreign currency translation

The functional currency of the Company is determined by the primary economic environment in which the Company operates. The parent company only financial statements are presented in New Taiwan dollars, which is the Company’s functional and 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 where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in profit or loss in the period in which they arise.

(b) Monetary items denominated in foreign currencies are translated at the closing rate at the balance sheet date. Exchange differences arising upon translation at the balance sheet date are recognised in profit or loss.

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

B. Translation of foreign operations

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

(a) Assets and liabilities for each balance sheet presented are translated at the closing exchange

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rate at the date of that balance sheet;

(b) Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and
(c) All resulting exchange differences are recognised in other comprehensive income.

(4) Classification of current and non-current items

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

(a) Assets arising from operating activities that are expected to be realised, or are intended to be sold or consumed within the normal operating cycle;
(b) Assets held mainly for trading purposes;
(c) Assets that are expected to be realised within twelve months from the balance sheet date;
(d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than twelve months after the balance sheet date.

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 within the normal operating cycle;
(b) Liabilities arising mainly from trading activities;
(c) Liabilities that are to be settled within twelve months from the balance sheet date;
(d) It does not have the right at the end of the reporting period to defer settlement of the liability at least twelve months after the reporting period.

(5) Cash equivalents

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

(6) Financial assets at amortised cost

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

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

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

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

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(7) Accounts and notes receivable

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

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

(8) Impairment of financial assets

For financial assets at amortised cost, at each reporting date, the Company recognises the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognises 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 Company recognises the impairment provision for lifetime ECLs.

(9) Derecognition of financial assets

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

(10) Inventories

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

(11) Investments accounted for using equity method

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

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

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

D. Changes in a parent's ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity

~18~

transactions, i.e. transactions with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity.

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

(12) Property, plant and equipment

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

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

C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives or the units of production method to allocate their cost over their estimated benefits. 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:

Molding equipment	3 ~ 5 years
Other equipment	2 ~ 9 years

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

A. Leases are recognised as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Company. For short-term leases or leases of

~19~

low-value assets, lease payments are recognised as an expense on a straight-line basis over the lease term.

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

(a) Fixed payments, less any lease incentives receivable;
(b) Variable lease payments that depend on an index or a rate;
(c) Amounts expected to be payable by the lessee under residual value guarantees;
(d) The exercise price of a purchase option, if the lessee is reasonably certain to exercise that option; and
(e) Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.

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

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

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

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

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

(14) Intangible assets

A. Car model technology is stated at acquisition cost based on the technical value and amortised on a straight-line basis over the estimated useful life of 8 years.
B. Internally generated intangible assets—research and development expenditures

(a) Research expenditures are recognised as an expense as incurred.
(b) Development expenditures that do not meet the following criteria are recognised as expenses as incurred, but are recognised as intangible assets when the following criteria are met:

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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 using the units of production method over their estimated benefits.

C. Patents are amortised on a straight-line basis over their estimated useful lives of 3~14 years.
D. Computer software is stated at cost and amortised on a straight-line basis over the period of 2 to 5 years.

(15) Impairment of non-financial assets

A. The Company 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 recognised for the amount by which the assets 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 recognising impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortised historical cost would have been if the impairment had not been recognised.
B. The recoverable amounts of intangible assets that have not yet been available for use are evaluated periodically. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount.

(16) Accounts and notes payable

A. Accounts payable are liabilities for purchases of raw materials, goods or services and those resulting from operating and non-operating activities.
B. The short-term accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(17) Derecognition of financial liabilities

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

(18) Provisions

Provisions for warranty are recognised when the Company 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

~21~

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 recognised as interest expense. Provisions are not recognised for future operating losses.

(19) Employee benefits

A. Short-term employee benefits

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

B. Pensions

(a) Defined contribution plans

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

(b) Defined benefit plans

i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Group in current period or prior periods. The liability recognised in the balance sheet in respect of defined benefit pension plan 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 Company uses interest rates of government bonds (at the balance sheet date) instead.

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

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

C. Employees' compensation and directors' and supervisors' remuneration

Employees' compensation and directors' and supervisors' remuneration are recognised 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.

(20) Employee share-based payment

For the equity-settled share-based payment arrangements, the employee services received are

~22~

measured at the fair value of the equity instruments granted at the grant date, and are recognised 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 recognised is based on the number of equity instruments that eventually vest.

(21) Income tax

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

D. Deferred tax assets are recognised 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, unrecognised and recognised deferred tax assets are reassessed.

(22) Share capital

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

(23) Revenue recognition

A. Sales of goods

The Company sells electric buses and electric vehicles. Sales are recognised when control of the products has transferred, being when the products are delivered to the buyer, and there is no unfulfilled obligation that could affect the customer's acceptance of the products. The amount of sales revenue can be measured reliably and it is probable that the future economic benefits associated with the transaction will flow to the Company. The delivery of goods is completed

~23~

when the significant risks and rewards of ownership have been transferred to the customer, the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold, and the customer has accepted the goods based on the sales contract or there is objective evidence showing that all acceptance provisions have been satisfied. Revenue is only recognised 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.

B. Service revenue

Service revenue mainly arises from providing technical support services and is recognised under the percentage-of-completion method. The stage of completion is determined based on the proportion of costs invested to the estimated total costs for each individual contract. If the outcome of a contract cannot be reasonably estimated, revenue is recognised only to the extent of expenses incurred that are expected to be recovered. Any changes in construction contract consideration or estimated construction total costs are accounted for as changes in accounting estimates.

C. The customer pays at the time specified in the payment schedule. If the products provided exceed the payment, a contract asset is recognised. If the payments exceed the products provided, a contract liability is recognised.

(24) Government grants

Government grants are recognised at their fair value only when there is reasonable assurance that the Company will comply with any conditions attached to the grants and the grants will be received. Government grants are recognised in profit or loss on a systematic basis over the periods in which the Company recognises expenses for the related costs for which the grants are intended to compensate.

(25) Operating segments

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

5. Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

Accounting estimates are based on the situation at the balance sheet date to estimate future events, though there could be differences between the actual events and estimation. Estimates and assumptions on the risk of possible critical adjustments to the carrying amount of assets and liabilities for the next fiscal year are as follows:

A. Impairment assessment of tangible and intangible assets (excluding goodwill)

The Company assesses impairment based on its subjective judgement and determines the separate cash flows of a specific group of assets, useful lives of assets and the future possible income and expenses arising from the assets depending on how assets are utilised and industrial characteristics.

~24~

Any changes of economic circumstances or estimates due to the change of Company strategy might cause material impairment on assets in the future.

B. Realisability of deferred tax assets

Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences can be utilised. Assessment of the realisability of deferred tax assets involves critical accounting judgements and estimates of the management, including the assumptions of expected future sales revenue growth rate and profit rate, available tax credits, tax planning, etc. Any variations in global economic environment, industrial environment, and laws and regulations might cause material adjustments to deferred tax assets.

As of December 31, 2025, the Company recognised deferred tax assets amounting to $1,469,996.

6. Details of Significant Accounts

(1) Cash and cash equivalents

	December 31, 2025	December 31, 2024
Cash on hand	$ 30	$ 30
Demand deposits	1,639,780	4,111,637
	$ 1,639,810	$ 4,111,667

Details of the Company’s restricted cash which is classified as ‘financial assets at amortised cost – current’ are provided in Note 9.

(2) Financial assets at amortised cost

Items	December 31, 2025	December 31, 2024
Current items:
Restricted assets	$ 30,874	$ 48,041
Time deposits with maturity over three months	-	1,100,000
	$ 30,874	$ 1,148,041

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

	Years ended December 31,
	2025	2024
Interest income	$ 10,558	$ 36,354

(3) Accounts receivable

	December 31, 2025	December 31, 2024
Accounts receivable	$ 36,071	$ 78,442
Less: Allowance for uncollectible accounts	( 161)	( 91)
	$ 35,910	$ 78,351

A. As of December 31, 2025 and 2024, accounts receivable were all from contracts with customers. As of January 1, 2024, the balance of accounts receivable from contracts with customers amounted to $128,826.

B. The Company has no accounts receivable pledged to others as collateral.
C. Information relating to credit risk of accounts receivable is provided in Note 12(2).

(4) Inventories

	December 31, 2025	December 31, 2024
Raw materials	$ 758,934	$ 954,003
Work in progress	375,370	547,420
Finished goods	875	-
Inventory in transit	16,993	103,741
	1,152,172	1,605,164
Less: Allowance for inventory valuation losses	( 66,613)	( 11,822)
	$ 1,085,559	$ 1,593,342

The cost recognised as expense for the year:

	Years ended December 31,
	2025	2024
Cost of goods sold	$ 3,213,437	$ 6,822,711
Valuation losses	54,791	5,288
Warranty costs	43,805	80,199
Other service costs	6,315	2,537
	$ 3,318,348	$ 6,910,735

(5) Prepayments

	December 31, 2025	December 31, 2024
Excess business tax paid	$ 398,216	$ 412,260
Other prepayments	17,749	51,145
Prepayments to suppliers	12,745	66,942
	$ 428,710	$ 530,347

(6) Investments accounted for using equity method

	2025	2024
At January 1	$ 82,966	$ 39,898
New investment accounted for using equity method	-	38,859
Share of (loss) profit of investments accounted for using equity method	( 26,303)	2,311
Changes in other equity items	( 1,609)	1,898
At December 31	$ 55,054	$ 82,966

On April 15, 2024, the Company acquired 100% of the share capital of Foxtron Vehicle Technologies USA, Inc. for USD 1.2 million.

(7) Property, plant and equipment

	Molding equipment	Other equipment	Construction in progress and equipment under acceptance	Total
At January 1, 2025
Cost	$ 3,812,732	$ 801,079	$ 756,580	$ 5,370,391
Accumulated depreciation and impairment	( 1,315,770)	( 163,528)	-	( 1,479,298)
	$ 2,496,962	$ 637,551	$ 756,580	$ 3,891,093
Opening net book amount as at January 1, 2025	$ 2,496,962	$ 637,551	$ 756,580	$ 3,891,093
Additions	454,341	109,167	677,556	1,241,064
Transfers	101,520	280,542	( 372,441)	9,621
Depreciation	( 503,499)	( 164,673)	-	( 668,172)
Closing net book amount as at December 31, 2025	$ 2,549,324	$ 862,587	$ 1,061,695	$ 4,473,606
At December 31, 2025
Cost	$ 4,368,593	$ 1,190,788	$ 1,061,695	$ 6,621,076
Accumulated depreciation and impairment	( 1,819,269)	( 328,201)	-	( 2,147,470)
	$ 2,549,324	$ 862,587	$ 1,061,695	$ 4,473,606

	Molding equipment	Other equipment	Construction in progress and equipment under acceptance	Total
At January 1, 2024
Cost	$ 1,695,638	$ 207,357	$ 145,978	$ 2,048,973
Accumulated depreciation and impairment	( 820,591)	( 61,642)	-	( 882,233)
	$ 875,047	$ 145,715	$ 145,978	$ 1,166,740
Opening net book amount as at January 1, 2024	$ 875,047	$ 145,715	$ 145,978	$ 1,166,740
Additions	1,436,847	437,417	1,447,133	3,321,397
Transfers	680,247	156,661	( 836,531)	377
Disposals	-	( 356)	-	( 356)
Depreciation	( 495,179)	( 101,886)	-	( 597,065)
Closing net book amount as at December 31, 2024	$ 2,496,962	$ 637,551	$ 756,580	$ 3,891,093
At December 31, 2024
Cost	$ 3,812,732	$ 801,079	$ 756,580	$ 5,370,391
Accumulated depreciation and impairment	( 1,315,770)	( 163,528)	-	( 1,479,298)
	$ 2,496,962	$ 637,551	$ 756,580	$ 3,891,093

(8) Leasing arrangements—lessee

A. The Company leases various assets including land, buildings and structures and other equipment.

Rental contracts are as follows:

Land: 20 years

Buildings and structures: 2~20 years

Other equipment: 14 months~6 years

Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.

B. Short-term leases with a lease term of 12 months or less comprise certain dormitories and offices.

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	$ 140,613	$ 148,353
Buildings and structures	173,147	227,419
Other equipment	2,181	1,285
	$ 315,941	$ 377,057
	December 31, 2025	December 31, 2024
	Depreciation	Depreciation
Land	$ 7,740	$ 5,675
Buildings and structures	64,152	57,007
Other equipment	737	621
	$ 72,629	$ 63,303

D. For the years ended December 31, 2025 and 2024, the additions to right-of-use assets were $11,513 and $243,035, respectively.

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

Items affecting profit or loss	Years ended December 31,
	2025	2024
Interest expense on lease liabilities	$ 5,214	$ 4,271
Expense on short-term lease contracts	$ 10,444	$ 22,067
Expense on leases of low-value assets	$ 28	$ 20

For the years ended December 31, 2025 and 2024, the Company's total cash outflow for leases were $85,929 and $101,127, respectively.

(9) Intangible assets

	Patents	Computer software	Car model technology costs	Total
At January 1, 2025
Cost	$ 90,000	$ 245,103	$ 8,739,846	$ 9,074,949
Accumulated amortisation and impairment	( 61,997)	( 122,062)	( 2,169,444)	( 2,353,503)
	$ 28,003	$ 123,041	$ 6,570,402	$ 6,721,446
Opening net book amount as at January 1, 2025	$ 28,003	$ 123,041	$ 6,570,402	$ 6,721,446
Additions - acquired separately	-	5,737	-	5,737
Additions - from internal development	-	-	224,713	224,713
Amortisation	( 11,128)	( 52,383)	( 849,100)	( 912,611)
Closing net book amount as at December 31, 2025	$ 16,875	$ 76,395	$ 5,946,015	$ 6,039,285
At December 31, 2025
Cost	$ 90,000	$ 250,562	$ 8,964,559	$ 9,305,121
Accumulated amortisation and impairment	( 73,125)	( 174,167)	( 3,018,544)	( 3,265,836)
	$ 16,875	$ 76,395	$ 5,946,015	$ 6,039,285

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	Patents	Computer software	Car model technology costs	Total
At January 1, 2024
Cost	$ 90,000	$ 173,987	$ 8,336,665	$ 8,600,652
Accumulated amortisation and impairment	( 47,273)	( 75,413)	( 1,264,304)	( 1,386,990)
	$ 42,727	$ 98,574	$ 7,072,361	$ 7,213,662
Opening net book amount as at January 1, 2024	$ 42,727	$ 98,574	$ 7,072,361	$ 7,213,662
Additions - acquired separately	-	71,116	-	71,116
Additions - from internal development	-	-	403,181	403,181
Amortisation	( 14,724)	( 46,649)	( 905,140)	( 966,513)
Closing net book amount as at December 31, 2024	$ 28,003	$ 123,041	$ 6,570,402	$ 6,721,446
At December 31, 2024
Cost	$ 90,000	$ 245,103	$ 8,739,846	$ 9,074,949
Accumulated amortisation and impairment	( 61,997)	( 122,062)	( 2,169,444)	( 2,353,503)
	$ 28,003	$ 123,041	$ 6,570,402	$ 6,721,446

A. The Company assessed the impairment of recoverable amount for the car model technology costs at the end of financial reporting period and used the value-in-use as the basis for calculating the recoverable amount. These calculations for value-in use used future cash flow projections of product life cycles of the Company. The annual discount rates used as of December 31, 2025 and 2024 were $11.13\%$ and $11.66\%$ , respectively. No impairment loss was recognised on the Group's car model technology costs for the years ended December 31, 2025 and 2024.
B. For the years ended December 31, 2025 and 2024, the amounts of the Company's intangible assets under development shown as the above car model technology costs were $132,027 and$ 724,769, respectively.
C. Details of amortisation on intangible assets are as follows:

	Years ended December 31,
	2025	2024
Operating costs	$ 54,100	$ 110,140
Operating expenses	858,511	856,373
	$ 912,611	$ 966,513
(10) Other non-current assets
	December 31, 2025	December 31, 2024
Prepayments for business equipment	$ 918,896	$ 348,856
Guarantee deposits	7,974	8,053
Net defined benefit asset	-	14
Other non-current assets	-	10,806
	$ 926,870	$ 367,729
(11) Other payables
	December 31, 2025	December 31, 2024
Wages and salaries payable	$ 597,873	$ 538,235
Design and development fee payable	210,191	200,695
Payable on machinery and equipment	83,969	111,495
Service fees payable	12,055	21,557
Taxes payable	9,716	13,055
Other payables	85,229	59,109
	$ 999,033	$ 944,146
(12) Provisions
	2025	2024
	Warranty provision	Warranty provision
At January 1	$ 89,649	$ 12,572
Additions	43,805	83,540
Used during the year	( 21,751)	( 3,122)
Reversal	-	( 3,341)
At December 31	$ 111,703	$ 89,649
Analysis of total provisions:
Non-current	$ 111,703	$ 89,649

Provision for warranty arising from the sales of electric buses is adjusted and calculated by considering attrition rates of parts and components in the future or other factors that affect product quality when the Company has a present legal or constructive obligation, and it is probable that an outflow of economic resources will be required to settle the obligation. The Company accrues liabilities for parts and components with warranty obligations and the amount of the obligation can be reliably estimated. Most of the warranties provided by the Group last for 3 to 8 years. The Group's provision for warranty is calculated based on purchasing costs of the new products.

(13) Pensions

A. Defined benefit plan

(a) The Company has a defined benefit pension plan, which applies to employees who transferred on November 6, 2020. Also, the Company would assess the balance in the aforementioned labor pension reserve account by the end of December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions for the deficit by next March.

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

	December 31, 2025	December 31, 2024
Present value of defined benefit obligations	$ 47,824	$ 47,809
Fair value of plan assets	( 41,810)	( 47,823)
Net defined benefit liability
(shown as ‘other non-current assets’ and
‘other non-current liabilities’)	$ 6,014	($ 14)

	2025
	Present value of defined benefit obligations	Fair value of plan assets	Net defined benefit liability
At January 1	$ 47,809	$ 47,823	$ (14)
Current service cost	44	-	44
Interest expense (income)	765	765	-
	48,618	48,588	30
Remeasurements:
Return on plan assets (excluding amounts included in interest income or expense)	-	( 757)	757
Experience adjustments	3,635	-	3,635
	3,635	( 757)	4,392
Pension fund contribution	-	( 1,592)	1,592
Paid pension	( 4,429)	( 4,429)	-
At December 31	$ 47,824	$ 41,810	$ 6,014

	2024
	Present value of defined benefit obligations	Fair value of plan assets	Net defined benefit liability
At January 1	$ 48,851	$ 47,780	$ 1,071
Current service cost	180	-	180
Interest expense (income)	586	574	12
	49,617	48,354	1,263
Remeasurements:
Return on plan assets (excluding amounts included in interest income or expense)	-	(568)	568
Experience adjustments	1,392	-	1,392
	1,392	(568)	1,960
Pension fund contribution	-	37	(37)
Paid pension	(3,200)	-	(3,200)
At December 31	$ 47,809	$ 47,823	($ 14)

(d) The Fund of the Company’s defined benefit pension plan is comprised of demand deposits that were used exclusively for specific purposes.

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

	Years ended December 31,
	2025	2024
Discount rate	1.3%	1.6%
Future salary increases	1.0%	1.0%

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

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

	Discount rate		Future salary increases
	Increase 0.25%	Decrease 0.25%	Increase 0.25%	Decrease 0.25%
December 31, 2025
Effect on present value of defined benefit obligation	($ 639)	$ 657	$ 652	($ 639)
December 31, 2024
Effect on present value of defined benefit obligation	($ 727)	$ 746	$ 756	($ 741)

The sensitivity analysis above is based on one assumption which changed while the other

conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analysing sensitivity and the method of calculating net pension liability in the balance sheet are the same.

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

(f) Expected contributions to the defined benefit pension plan of the Company for the year ending December 31, 2026 amount to $1,616.

(g) As of December 31, 2025, the weighted average duration of the retirement plan is 6 years.

B. Defined contribution plan

(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 contributes monthly an amount based on 6% of the employees' monthly salaries and wages to the employees' individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.

(b) The pension costs under the defined contribution pension plan of the Company for the years ended December 31, 2025 and 2024 were $48,040 and $40,181, of which $4,456 and $6,354 were capitalised as part of internally generated intangible assets, respectively.

(14) Share-based payment

A. For the year ended December 31, 2025, the Company's share-based payment arrangements were as follows:

Type of arrangement	Grant date	Quantity granted	Vesting conditions
Employee stock options	2023.1.18	46,728,000 shares	Note

Note: Employees who were granted the employee stock options starting from the date of grant and employees who will serve until September 30, 2025 can exercise their employee stock options in batches at the ratio of 72.15% and 27.85%, respectively.

~35~

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

	2025		2024
	No. of options	Weighted-average exercise price (in dollars)	No. of options	Weighted-average exercise price (in dollars)
Options outstanding at January 1	12,508	$ 10	12,686	$ 10
Options exercised	( 8,067)	10	-	-
Options expired	( 133)	10	( 178)	-
Options outstanding at December 31	4,308	$ 10	12,508	$ 10

For the exercise of stock options, the weighted-average stock price at the exercise date was NT$39.81 (in dollars) for the year ended December 31, 2025.

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

Type of arrangement	Grant date	Stock price (in dollars)	Exercise price (in dollars)	Expected price volatility (%)(Note)	Expected option life	Risk-free interest rate	Fair value per unit
Employee stock options	January 18, 2023	$ 10.86	$ 10	32.00~ 34.04	0.08~ 2.78	0.87~ 1.08	$0.9832~ 2.7880

Note: Expected price volatility rate pertained to the standard deviation of return on the target stock.

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

	Years ended December 31,
	2025	2024
Equity-settled	$ 9,852	$ 12,775

(15) Share capital

A. The Company was incorporated by Hua-Chuang Automobile Information Technical Center Co., Ltd. ("Hua-Chuang") and Hon Hai Precision Ind. Co., Ltd. ("Hon Hai") jointly on November 6, 2020. As of December 31, 2025, the Company's authorised capital was $25,000,000, consisting of 2,500,000 thousand shares of ordinary stock, and the paid-in capital was $17,482,562 with a par value of $10 (in dollars) per share.

B. Movements in the number of the Company's ordinary shares (including advance receipts for ordinary shares) outstanding are as follows:

	2025	2024
	Number of shares (in thousands)	Number of shares (in thousands)
At January 1	1,741,314	1,741,314
Employee stock options exercised	8,067	-
At December 31	1,749,381	1,741,314

C. For the year ended December 31, 2025, the Company issued 8,067 thousand ordinary shares due to the exercise of employee stock options based on the employee share options plan, of which 6,942 thousand shares, with the record date for capital increase set on December 19, 2025, were reclassified to common stock. As of December 31, 2025, the remaining 1,125 thousand shares were recognised as 'Advance receipts for ordinary shares' as the registration of the change in capital had not yet been completed.

(16) 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 capitalised mentioned above should not exceed 10% of the paid-in capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

	2025
	Share premium	Employee stock options	Total
At January 1	$ 6,041,907	$ 24,650	$ 6,066,557
Share-based payments	-	9,852	9,852
Employee stock options exercised	19,355	( 19,355)	-
At December 31	$ 6,061,262	$ 15,147	$ 6,076,409
	2024
	Share premium	Employee stock options	Total
At January 1	$ 6,041,907	$ 11,875	$ 6,053,782
Share-based payments	-	12,775	12,775
At December 31	$ 6,041,907	$ 24,650	$ 6,066,557

(17) Accumulated deficit

A. The current year's earnings, if any, shall first be used to pay all taxes and offset prior years' operating losses and then 10% of the remaining amount shall be set aside as legal reserve and special reserve as regulated by the competent authority. However, if the legal reserve has

accumulated to an amount equal to the paid-in capital, this provision shall not apply. In addition, after the special reserve is set aside or reversed in accordance with the relevant laws and regulations, the remainder plus the beginning unappropriated earnings comprise the cumulative distributable earnings, which shall be distributed to shareholders according to the distribution plan proposed by the Board of Directors and submitted to the shareholders for approval.

Dividends and bonuses and all or part of capital surplus or legal reserve distributed in the form of cash regulated by Article 241 of the Company Act shall be authorised to be resolved by the Board of Directors with a majority vote at its meeting attended by two-thirds of the total number of directors and reported to the shareholders during their meeting and are not subject to the aforementioned regulations of resolutions from the shareholders.

When planning the Company's dividend distribution plan, the Company considers its profitability, capital requirements for future operating plan and changes in the industrial environment, taking into consideration the shareholder's long-term equity and the Company's long-term financial plan, at least 30% of the Company's distributable earnings for the year shall be appropriated as dividends in the form of cash or shares, and cash dividends shall account for at least 10% of the total dividends distributed.

B. 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.

C. For the information relating to employees' compensation and directors' and supervisors' remuneration, refer to Note 6(20).

D. The Company had accumulated losses for the year ended December 31, 2024 as resolved by the Board of Directors on May 23, 2025. The Company had accumulated losses for the year ended December 31, 2023 as resolved by the shareholders at their meeting on May 23, 2024. The Company had no earnings for distribution because of the accumulated losses for both years. For details regarding the resolution of the Board of Directors and the shareholders, refer to the Market Observation Post System of the Taiwan Stock Exchange.

(18) Operating revenue

A. Disaggregation of revenue from contracts with customers

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

~38~

	Year ended December 31,
	2025		2023
Sales revenue	$	4,104,386	$	8,491,505
Service revenue		42,087		29,106
	$	4,146,473	$	8,520,611
Year ended December 31, 2024	Taiwan		Japan
At a point in time	$	4,104,386	$	-
Over time		42,077		10
	$	4,146,463	$	10
Year ended December 31, 2023	Taiwan		China
At a point in time	$	8,474,719	$	2,971
Over time		29,047		-
	$	8,503,766	$	2,971

(a) The sales of electric bus are subject to variable consideration. For the years ended December 31, 2025 and 2024, the sales revenue of the aforementioned electric bus were $746,388 and$ 264,753, of which $369,388 and $49,897, respectively, represents the amount with variable consideration. Under the agreement, the aforementioned variable consideration was based on the maximum subsidy amount that can be fully obtained from the relevant units of the Ministry of Transportation and Communications and the portion that cannot be reached will be deducted from the payment. Based on the Company's assessment, it is highly probable that a significant reversal of the variable consideration will not occur. However, payment is subject to the customers' receipt of government subsidies.
(b) As of December 31, 2025, the supporting documents with added value rate of more than $50\%$ had been prepared by the Group. The customers have obtained the subsidies related to the aforementioned variable consideration.
(c) As of December 31, 2025, certain applications for subsidy have been approved by the competent authority and accordingly, the related variable consideration was recognised as revenue. For the remaining subsidy applications, the related variable consideration will be recognised as revenue once the requirements and conditions for the subsidy are met.

B. Contract assets and liabilities

The Company has recognised the following revenue-related contract assets and liabilities:

	December 31, 2025		December 31, 2024
Contract assets - current:
Sales contracts	$	220,924	$	142,532
Contract liabilities - current:
Service contracts	($	3,235)	($	20,867)
Sales contracts	(	638,915)		-
Contract liabilities - non-current:
Sales contracts	(	276,500)	(	276,500)
	($	918,650)	($	297,367)

(a) Contract assets - service contracts pertain to services rendered but not yet billed; contract assets - sales contracts have variable consideration that is highly probable that a significant reversal will not occur; and contract liabilities represents advance sales receipts. Refer to Note 7 for the information on related parties.
(b) Revenue recognised that was included in the contract liability balance at the beginning of the years ended December 31, 2025 and 2024 was $20,867 and $13,345, respectively.

(19) Expenses by nature

The additional disclosure information relating to operating costs and operating expenses is as follows:

	Years ended December 31,
	2025	2024
Employee benefit expense	$ 1,402,185	$ 1,118,990
Depreciation	740,801	660,368
Amortisation	912,611	966,513
	$ 3,055,597	$ 2,745,871

(20) Employee benefit expense

	Years ended December 31,
	2025	2024
Wages and salaries	$ 1,387,324	$ 1,190,275
Share-based payments	9,852	12,775
Labour and health insurance fees	97,289	77,707
Pension costs	48,084	40,373
Other personnel expenses	8,086	7,798
	$ 1,550,635	$ 1,328,928
The summary according to the listed items is as follows
Operating costs and expenses	$ 1,402,185	$ 1,118,990
Internally generated intangible assets	148,450	209,938
	$ 1,550,635	$ 1,328,928

A. In accordance with the Articles of Incorporation of the Company, a ratio of distributable profit of the current year, after covering accumulated losses, shall be distributed as employees' compensation. The ratio shall be 5% to 7% for employees' compensation, and no less than 10% shall be distributed to non-managerial employees as compensation. Directors' remuneration is determined based on the contribution of the directors and the usual level in the industry.

B. The Company did not accrue employees' compensation and directors' and supervisors' remuneration for the years ended December 31, 2025 and 2024 due to the net losses for both years.

(21) Income tax

A. Income tax benefit

(a) Components of income tax benefit:

	Years ended December 31,
	2025	2024
Deferred tax:
Prior year income tax overestimation	($ 2,036)	($ 392)
Origination and reversal of temporary differences	2,036	( 336,258)
Income tax benefit	$ -	($ 336,650)

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

	Years ended December 31,
	2025	2024
Remeasurement of defined benefit obligations	$ -	($ 392)

B. Reconciliation between income tax benefit and accounting profit

	Years ended December 31,
	2025	2024
Tax income calculated based on loss before tax and statutory tax rate	($ 748,456)	($ 494,796)
Expenses disallowed by tax regulation	164,261	158,538
Prior year income tax underestimation	( 2,036)	( 392)
Changes in the realizability assessment of deferred tax assets	586,231	-
Income tax benefit	$ -	($ 336,650)

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

	2025
	January 1	Recognised in profit or loss	Recognised in other comprehensive income	December 31
Deferred tax assets:
- Temporary differences:
Employee benefits/welfare	$6,527	$-	$-	$6,527
Tax losses	1,408,161	-	-	1,408,161
Others	78,447	(23,139)	-	55,308
	$1,493,135	($23,139)	$-	$1,469,996
Deferred tax liabilities:
- Temporary differences:
Capitalisation of research and development expense	($414,234)	$23,139	$-	($391,095)
	$1,078,901	$-	$-	$1,078,901
	2024
	January 1	Recognised in profit or loss	Recognised in other comprehensive income	December 31
Deferred tax assets:
- Temporary differences:
Employee benefits/welfare	$13,053	($6,526)	$-	$6,527
Tax losses	1,045,261	362,900	-	1,408,161
Others	17,143	60,912	392	78,447
	$1,075,457	$417,286	$392	$1,493,135
Deferred tax liabilities:
- Temporary differences:
Capitalisation of research and development expense	($333,598)	($80,636)	$-	($414,234)
	$741,859	$336,650	$392	$1,078,901

D. Expiration dates of unused tax losses and amounts of unrecognised deferred tax assets are as follows:

December 31, 2025

Year incurred	Amount filed/ assessed	Unused amount	Unrecognised deferred tax assets	Expiry year
2025	$ 3,106,882	$ 3,106,882	$ 3,106,882	2035
2024	1,950,342	1,950,342	22,545	2034
2023	2,251,001	2,251,001	-	2033
2022	1,780,454	1,780,454	-	2032
2021	1,034,296	1,034,296	-	2031
2020	47,255	47,255	-	2030

December 31, 2024

Year incurred	Amount filed/ assessed	Unused amount	Unrecognised deferred tax assets	Expiry year
2024	$ 1,927,797	$ 1,927,797	$ -	2034
2023	2,251,001	2,251,001	-	2033
2022	1,780,454	1,780,454	-	2032
2021	1,034,296	1,034,296	-	2031
2020	47,255	47,255	-	2030

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

(22) Loss per share

	Year ended December 31, 2025
	Amount after tax	Weighted average number of ordinary shares outstanding (shares in thousands)	Loss per share (in dollars)
Basic and diluted loss per share
Loss attributable to ordinary shareholders of the parent	($ 3,742,282)	1,741,561	($ 2.15)
	Year ended December 31, 2024
	Amount after tax	Weighted average number of ordinary shares outstanding (shares in thousands)	Loss per share (in dollars)
Basic and diluted loss per share
Loss attributable to ordinary shareholders of the parent	($ 2,137,329)	1,741,314	($ 1.23)

The employee share options was not included in the calculation of diluted loss per share as it will have an anti-dilutive effect because of loss incurred for the years ended December 31, 2025 and 2024.

(23) Supplemental cash flow information

Investing activities with partial cash payments:

	Years ended December 31,
	2025	2024
Purchase of property, plant and equipment	$ 1,241,064	$ 3,321,397
Add: Opening balance of payable on equipment	117,799	60,023
Less: Ending balance of payable on equipment	( 91,587)	( 117,799)
Add: Ending balance of prepayments on equipment	918,896	348,856
Less: Opening balance of prepayments on equipment	( 348,856)	( 450,175)
Cash paid during the year	$ 1,837,316	$ 3,162,302

~45~

7. Related Party Transactions

(1) Names of related parties and relationship

Names of related parties	Relationship with the Company
Foxtron Vehicle Technologies (Hangzhou) Co., Ltd.	Subsidiary
Foxtron Vehicle Technologies USA, Inc. (Note)	〃
Hon Hai Precision Ind. Co., Ltd. and its subsidiaries (Hon Hai Group)	Group that has control over the Company
Hon Hai Precision Ind. Co., Ltd. (Hon Hai)	〃
Jusda International Logistics (Taiwan) Co., Ltd. (Jusda)	〃
Scienbizip Consulting (Far East) Co., Ltd.	〃
CLOUD NETWORK TECHNOLOGY SINGAPORE PTE. LTD.	〃
SHARP JUSDA LOGISTICS CORPORATION	〃
FORTUNEBAY TECHNOLOGY PTE LTD.	〃
FOXCONN EV SYSTEM LLC	〃
PowerX Semiconductor Corporation	〃
Yulon Motor Co., Ltd. and its subsidiaries (Yulon Group)	Group that has significant influence over the Company
Yulon Motor Co., Ltd. (Yulon Motor)	〃
Hua-Chuang Automobile Information Technical Center Co., Ltd. (Hua-Chuang)	〃
Luxgen Motor Co., Ltd. (Luxgen)	〃
Yue ki Industrial Co., Ltd.	〃
Y-Teks Co., Ltd.	〃
Uni Auto Parts Manufacture Co., Ltd.	〃
Yue Sheng Industrial Co., Ltd.	〃
Yufong Property Management Co., Ltd.	〃
Chuang Jie New Energy Vehicles (Hangzhou) Limited	〃
Yulon Motor Co., Ltd. (China)	〃
Luxgen (Hangzhou) Motor Sales Co., Ltd.	〃
Hangzhou Hua-chuang Automobile Information Technical Center Co., Ltd.	〃
Pan-International Industrial Corp.	Associate of Hon Hai Group
Maxnerva Technology Service Inc.	〃
GENERAL INTERFACE SOLUTION LIMITED	〃
GARUDA INTERNATIONAL LIMITED	〃
Sharp (Taiwan) Electronics Corporation	〃
Yonglin Foundation	Other related parties

Note: In April 2024, the Company incorporated and held a 100% equity interest in Foxtron Vehicle Technologies USA, Inc. and obtained the control over the company, thus it became a subsidiary of the Company since then.

(2) Significant related party transactions

A. Operating revenue

	Years ended December 31,
	2025	2024
Sales of goods:
Luxgen	$ 3,354,601	$ 8,190,410
Other related parties	-	169,830
Hon Hai Group	46	1,508
Others	-	10,550
Sales of services:
Luxgen	37,345	23,472
Yulon Group	2,010	3,639
Hon Hai Group	103	-
Others	-	145
	$ 3,394,105	$ 8,399,554

(a) Services are sold based on the price lists in force and terms that would be available to third parties.

(b) Except for those circumstances wherein there are no similar transactions for reference and the prices and credit periods are negotiated by both parties, other prices for the Company’s sales and provision of services to the abovementioned related parties are similar to the prices for sales and provision of services to third parties.

(c) The abovementioned other sales of services for the year ended December 31, 2024 pertains to operating service fees for the Hon Hai Carnival exhibition services commissioned by the Employee Welfare Committee of Hon Hai Precision Industry Co., Ltd. and paid by Hon Hai Precision Industry Co., Ltd..

(d) The abovementioned revenue from the services contracted but unfulfilled was $52,854 and $86,509 for the years ended December 31, 2025 and 2024, respectively.

B. Purchases

	Years ended December 31,
	2025	2024
Purchases of goods:
Hon Hai Group	$ 87,950	$ 242,216
Associates of Hon Hai Group	34,993	38,859
Yulon Group	37,987	28,504
	$ 160,930	$ 309,579

Except for those circumstances wherein there are no similar transactions for reference and the prices and credit periods are negotiated by both parties, the Company purchases other goods from the abovementioned related parties based on the current price and associates on normal

commercial terms and conditions.

C. Receivables from related parties

	December 31, 2025	December 31, 2024
Accounts receivable:
Luxgen	$ 65,759	$ 57,840
Less: Allowance for uncollectible accounts	( 33)	( 29)
	$ 65,726	$ 57,811

The receivables are due 7 to 45 days after the date of sales. The receivables are unsecured in nature and bear no interest.

D. Other receivables

	December 31, 2025	December 31, 2024
Luxgen	$ 861	$ -
Yulon Motor	49	-
	$ 910	$ -

E. Contract liabilities - service contracts

	December 31, 2025	December 31, 2024
Luxgen	$ 3,235	$ 20,858

F. Payables to related parties

	December 31, 2025	December 31, 2024
Yulon Motor	$ 52,695	$ 143,559
Hon Hai Group	52,473	51,576
Associates of Hon Hai Group	14,080	19,607
Yulon Group	18,350	4,592
	$ 137,598	$ 219,334

The payables are due 30 to 90 days after the date of purchase or the date the service has been provided. The payables bear no interest.

G. Prepayments (shown as 'prepayments' and 'other non-current assets')

	December 31, 2025	December 31, 2024
Yulon Group	$ 94,967	$ 63,311
Associates of Hon Hai Group	8	-
	$ 94,975	$ 63,311

Prepayments mainly consist of prepayments for business equipment and research and development prototype costs, etc.

~47~

H. Other payables

	December 31, 2025	December 31, 2024
Hon Hai Group	$ 23,487	$ 68,502
Yulon Group	63,237	34,947
Subsidiary	20,719	26,780
Associates of Hon Hai Group	32	364
	$ 107,475	$ 130,593

Other payables mainly refer to payment on behalf of others, administration service fee, design and development fee and payable on equipment, etc.

I. Lease transactions - lessee

(a) The Company leased laboratories from Yulon Motor for the year ended December 31, 2024. Rental contracts were typically made for periods of 20 years. Rents are paid monthly. The Company leased offices from Hon Hai for the year ended December 31, 2023. Rental contracts were typically made for periods of 2 years. Rents were paid quarterly or annually. The Group obtained right-of-use assets amounting to $0 and $88,548 from Yulon Motor and Hon Hai for the years ended December 31, 2025 and 2024, respectively.

Lease liabilities

	Years ended December 31,
	December 31, 2025	December 31, 2024
Hon Hai	$ 93,315	$ 143,798
Yulon Motor	83,275	87,011
	$ 176,590	$ 230,809

The Company's interest expense arising from lease liabilities for the years ended December 31, 2025 and 2024 amounted to $2,731 and $2,382, respectively.

(b) The Company leased offices from Yulon Motor and Yulon Group and leased warehouses from Hon Hai Group for the years ended December 31, 2025 and 2024. Rental contracts were both made for periods of 12 months or less.

Rent expense

	Years ended December 31,
	2025	2024
Yulon Motor	$ 8,405	$ 17,518
Hon Hai Group	1,098	43
Yulon Group	381	-
	$ 9,884	$ 17,561

J. Other costs and expenses

Years ended December 31,
	2025	2024
Professional service fees
- Yulon Motor	$ 12,663	$ 108
- Subsidiary	66,049	49,516
- Hon Hai Group	77,784	73,289
- Associates of Hon Hai Group	5,492	11,965
- Yulon Group	-	1,579
Other costs and expenses
- Yulon Motor	1,259,509	3,371,924
- Yulon Group	26,881	96,413
- Associates of Hon Hai Group	5,921	91,952
- Hon Hai Group	87,484	78,542
	$ 1,541,783	$ 3,775,288

The costs for Yulon Motor parts for the year ended December 31, 2025 and 2024 amounted to $1,110,130 and $2,999,627, respectively. Other costs and expenses primarily consisted of shipping fees, prototyping costs and subcontracting fees.

K. Non-operating income

	2025	2024
Yulon Group	$ 37,733	$ 75
Hon Hai Group	74	144
Associates of Hon Hai Group	-	15
	$ 37,807	$ 234

L. Property transactions

(a) Acquisition of property and equipment

	2025	2024
Yulon Group	$ 20,646	$ 774,534
Luxgen (Hangzhou)	-	61,888
Luxgen	-	32,811
Hon Hai Group	-	6,010
Associates of Hon Hai Group	-	1,161
	$ 20,646	$ 876,404

(b) Acquisition of intangible assets – computer software

	2025	2024
Yulon Group	$ 17,920	$ 1,626

(3) Key management compensation

Years ended December 31,
	2025	2024
Short-term employee benefits	$ 70,969	$ 72,229
Post-employment benefits	1,071	1,147
Share-based payments	9,852	12,775
	$ 81,892	$ 86,151

Pledged Assets

None.

Significant Contingent Liabilities and Unrecognised Contract Commitments

(1) Contract Commitments

A. The Company participated in the subsidy plan of the Science and Technology Research and Development Project of the Ministry of Economic Affairs. The period of the plan was from December 1, 2020 to November 30, 2022. The Company shall pay a performance guarantee of $128,000 based on the contract as of December 31, 2022. The guarantee had been pledged by the joint performance guarantee letter issued by the bank. As of December 31, 2025 and 2024, the Company had applied for and received subsidy totaling $128,000 and $128,000, respectively. However, as certain parts of the project have not yet been completed, portions of the subsidy amounting to $3,551 and $3,551 have been classified as restricted deposits (shown as ‘financial assets at amortised cost - current’).

B. The Company participated in the Industrial Upgrading Innovation Platform Guidance Program of the Ministry of Economic Affairs. The period of the program is from January 1, 2023 to June 30, 2025. The program was approved on May 18, 2023. The signing of the subsidy contract had been completed on September 22, 2023. The Company will receive subsidy of $269,474 based on the progress of execution.

As of December 31, 2025 and 2024, the Company had applied for and received a subsidy of $265,614 and $250,000, respectively, and recognised gain on deferred government grants in the amount of $37 and $22,501 (shown as ‘other current liabilities’), respectively. The Company recognised gain on government grants in the amount of $41,655 and $89,097 (shown as ‘other income’) for the years ended December 31, 2025 and 2024, respectively.

C. The Company also participated in the A+ Corporate Innovation R&D Project of the Ministry of Economic Affairs from April 1, 2024 to March 31, 2027. The project was approved on April 12, 2024, and the subsidy contract was signed in June 2024. The Company is eligible to receive subsidies totaling $125,000 based on the project execution progress.

As of December 31, 2025, the Company had applied for and received a subsidy of $125,000, and recognised gain on deferred government grants in the amount of $39,128 (shown as ‘other current liabilities’). The Company recognised gain on government grants in the amount of $27,280 (shown as ‘other income’) for the year ended December 31, 2025.

(2) Commitments

A. 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	$ 659,207	$ 548,905

B. On December 19, 2025, the Company’s Board of Directors resolved to acquire 92,700 thousand ordinary shares of Luxgen Motor Co., Ltd. from Yulon Motor Co., Ltd. for a total consideration of $787,600. As of December 31, 2025, the share transaction is still pending review and approval by the Fair Trade Commission.

Significant Disaster Loss

None.

Significant Events after the Balance Sheet Date

None.

Others

(1) Capital management

The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to provide maximum returns for shareholders and to reduce the gearing ratio and cost of capital positively. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce the gearing ratio and the cost of capital.

(2) Financial instruments

A. Financial instruments by category

	December 31, 2025	December 31, 2024
Financial assets
Financial assets at amortised cost
Cash and cash equivalents	$ 1,639,810	$ 4,111,667
Financial assets at amortised cost	30,874	1,148,041
Accounts receivable (including related parties)	101,636	136,162
Other receivables	42,387	71,171
Guarantee deposits paid	7,974	8,053
	$ 1,822,681	$ 5,475,094

	December 31, 2025	December 31, 2024
Financial liabilities
Financial liabilities at amortised cost
Accounts payable (including related parties)	$ 502,586	$ 1,301,520
Other payables (including related parties)	1,106,508	1,074,739
Guarantee deposits received	400	400
	$ 1,609,494	$ 2,376,659
Lease liability	$ 333,949	$ 392,678

B. Financial risk management policies

(a) The Company's activities expose it to a variety of financial risks: market risk (including foreign exchange risk), credit risk and liquidity risk. The Company's overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Company's financial position and financial performance.
(b) Company treasury identifies, evaluates and hedges financial risks in close cooperation with the Company's operating units. The Board provides written policies covering specific areas and matters, such as operation procedures on acquisition or disposal of assets and use of derivative financial instruments.

C. Significant financial risks and degrees of financial risks

(a) Market risk

Foreign exchange risk

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

	December 31, 2025
	Foreign currency amount (in thousands)	Exchange rate	Book value (NTD)	Sensitivity analysis
				Degree of variation	Effect on profit or loss	Effect on other comprehensive income
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD	$ 11,153	31.43	$350,539	1%	$3,505	$ -
RMB:NTD	10,473	4.496	47,087	1%	471	-
Foreign operations
USD:NTD	$ 287	31.43	$ 9,032	1%	$ -	$ 90
RMB:NTD	10,236	4.496	46,022	1%	-	460
Financial liabilities
Monetary items
USD:NTD	$ 6,640	31.34	$208,687	1%	$2,087	$ -
RMB:NTD	87,703	4.496	394,312	1%	3,943	-

~53~

	December 31, 2024
	Foreign currency amount (in thousands)	Exchange rate	Book value (NTD)	Sensitivity analysis Degree of variation	Effect on profit or loss	Effect on other comprehensive income
(Foreign currency: functional currency)
Financial assets
Monetary items
USD:NTD	$ 4,136	32.79	$135,623	1%	$1,356	$ -
RMB:NTD	78,324	4.478	350,734	1%	3,507	-
Foreign operations
USD:NTD	$ 1,219	32.79	$ 39,971	1%	$ -	$ 400
RMB:NTD	9,601	4.478	42,995	1%	-	430
Financial liabilities
Monetary items
USD:NTD	$ 6,468	32.79	$212,083	1%	$2,121	$ -
RMB:NTD	146,688	4.478	656,869	1%	6,569	-

The total exchange gain, including realised and unrealised, arising from significant foreign exchange variation on the monetary items held by the Company for the years ended December 31, 2025 and 2024, amounted to $31,238 and $13,297, respectively (shown as 'other gains and losses').

Price risk

There was no significant market risk of variation in price as the Company did not engage in investment target with price risk.

Cash flow and fair value interest rate risk

There was no cash flow risk of change in interest rate as the Company did not invest in interest rate products and had no borrowings.

(b) Credit risk

i. Credit risk refers to the risk of financial loss to the Company arising from default by the clients or counterparties of financial instruments on the contract obligations.

According to the Company's credit policy, each local entity in the Company 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. Credit risk arises from cash and cash equivalents, deposits with banks and financial institutions, as well as credit exposures to other financial instruments. The Company

had no significant credit risk as its counterparties and performing parties were all banks with good credit quality and had no significant compliance concern.

ii. If the contract payments were past due over 90 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition. The default occurs when the contract payments are past due over 360 days.

iii. 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 reorganisation due to their financial difficulties;

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

(iii) Adverse changes in national or regional economic conditions that are expected to cause a default.

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

	December 31, 2025	December 31, 2024
Not past due	$ 101,830	$ 136,282
0 to 90 days	-	-
	$ 101,830	$ 136,282

The above ageing analysis was based on past due date.

v. The Company applies the following approaches to assess the expected credit losses (ECLs) of accounts receivable and contract assets:

(i) Assess the ECLs on an individual basis if a significant default has occurred to certain customers;

(ii) Classify the other customers' accounts receivable based on the Company's credit rating standards and estimates the ECLs using loss rate methodology or provision matrix;

(iii) Adjust the loss rates constructed from historical and recent information by taking into account the business cycle indicators of the National Development Council and forecasts of the Basel Committee on Banking Supervision.

(iv) The loss allowance for accounts receivable (including related parties) and contract assets using loss rate methodology or provision matrix on December 31, 2025 and 2024 is as follows:

	Group 1	Group 2	Groups 3 and 4	Total
December 31, 2025
Expected loss rate	0.0500%	0.1100%	10.97-16.00%
Total book value	$ 65,759	$ 256,156	$ 1,082	$ 322,997
Loss allowance	$ 33	$ 282	$ 122	$ 437
	Group 1	Group 2	Groups 3 and 4	Total
December 31, 2024
Expected loss rate	0.0500%	0.1100%	10.87%~19.25%
Total book value	$ 57,840	$ 221,092	$ 39	$ 278,971
Loss allowance	$ 29	$ 243	$ 5	$ 277

Company 1: Standard Poor's, Fitch's, or Moody's rating of A-level, or rated as A-level in accordance with the Company's credit policies for those that have no external credit ratings.

Company 2: Standard Poor's or Fitch's rating of BBB, Moody's rating of Baa, or rated as B or C in accordance with the Company's credit policies for those that have no external credit ratings.

Company 3: Standard Poor's or Fitch's rating of BB + and below, or Moody's rating of Ba1 and below.

Company 4: Rated as other than A, B, or C in accordance with the Company's credit policies for those that have no external credit ratings.

vi. Movements in loss allowance for accounts receivable (including related parties) and contract assets are as follows:

	2025	2024
At January 1	$ 277	$ 1,769
Impairment loss (gain on reversal of)	160	(1,492)
At December 31	$ 437	$ 277

i. Cash flow forecasting is performed in the operating entities of the Company and aggregated by Company treasury. Company treasury monitors rolling forecasts of the Company's liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times.

ii. Details of the expected expiration of the Company's unused borrowing facilities are as follows:

-57-

Within one year
December 31, 2025
$ 7,802,090
December 31, 2024
$ 2,065,770

iii. The table below analyses the Company's non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Additionally, the Company has no derivative financial liabilities.

December 31, 2025	Less than 1 year	Between 1 and 2 years	Between 2 and 5 years	Over 5 years	Total
Non-derivative financial liabilities
Lease liability	$ 62,246	$ 44,909	$ 47,898	$ 191,605	$ 346,658
	Less than 1 year	Between 1 and 2 years	Between 2 and 5 years	Over 5 years	Total
December 31, 2024
Non-derivative financial liabilities
Lease liability	$ 84,872	$ 71,286	$ 73,878	$ 204,468	$ 434,504

(3) Fair value information

A. The Company had no financial and non-financial instruments measured at fair value on December 31, 2025 and 2024.
B. The carrying amounts of the Company's financial instruments not measured at fair value (cash and cash equivalents, financial assets at amortised cost, contract assets, accounts receivable, other current assets, other non-current assets, contract liabilities, accounts payable, other payables and other current liabilities) are approximate to their fair values.

Supplementary Disclosures

(1) Significant transactions information

A. Loans to others: None.
B. Provision of endorsements and guarantees to others: None.
C. Holding of significant marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): None.
D. 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 1.
E. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 2.
F. Significant inter-company transactions during the reporting periods: None.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to table 3.

(3) Information on investments in Mainland China

A. Basic information: Please refer to table 4.
B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: None..

Segment Information

(1) General information

The Company operates business only in a single industry. The Board of Directors, who allocates resources and assesses performance of the Company as a whole, has identified that the Company has only one reportable operating segment.

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

The Company operates business only in a single industry. The Company's information about segment profit or loss, assets and liabilities is in agreement with those shown in the financial statements. Refer to the balance sheets and statements of comprehensive income.

(3) Information on products and geographical information

Refer to Note 6(18) and the statement of operating revenue.

(4) Major customer information

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

	Years ended December 31,
	2025	2024
Company A	$ 3,391,946	$ 8,213,882
Company B	611,724	5,174
	$ 4,003,670	$ 8,219,056

Foxtron Vehicle Technologies Co., Ltd.

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 1

Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction				Differences in transaction terms compared to third party transactions		Notes/accounts receivable (payable)		Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
The Company	Luxgen Motor Co., Ltd.	The group with significant influence to the Company	Sales of goods and services	$ 3,391,946	82	Note 1	Note 2	Note 2	$ 65,759	65

Note 1: Sales of goods are settled on a net 7 days basis, and service income is settled on a net 45 days basis from the end of the month in which the invoice is issued.
Note 2: Except for the fact that there is no similar transaction to be complied with and the terms of the transaction were determined by mutual agreement, the other terms of the transaction are approximately the same as the transaction terms made with the third party.

Foxtron Vehicle Technologies Co., Ltd.

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

Year ended December 31, 2025

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

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31, 2025	Turnover rate	Overdue receivables		Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount	Action taken
The Company	Luxgen Motor Co., Ltd.	The group with significant influence over the Company	$ 65,759	55	$ -	-	$ 65,759	$ 33

Table 2 page 1

Foxtron Vehicle Technologies Co., Ltd.

Information on investees

Year ended December 31, 2025

Table 3

Expressed in thousands of NTD

(Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial investment amount		Shares held as at December 31, 2025			Net profit (loss) of the investee for the year ended December 31, 2025	Investment income (loss) recognised by the Company for the year ended December 31, 2025	Footnote
				Balance as at December 31, 2025	Balance as at December 31, 2024	Number of shares	Ownership (%)	Book value
The Company	Foxtron Vehicle Technologies USA, INC	USA	Engaging in the business of receiving orders for complete vehicles and parts, vehicle certification, and quality assurance.	$ 38,859	$ 38,859	12,000	100	$ 9,032	($ 29,054)	($ 29,054)

Foxtron Vehicle Technologies Co., Ltd.
Information on investments in Mainland China
Year ended December 31, 2025

Table 4													Expressed in thousands of NTD (Except as otherwise indicated)
Investee in Mainland China	Main business activities	Paid-in capital	Investment method (Note 1)	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2025	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 for the year ended December 31, 2025	Ownership held by the Company (direct or indirect)	Investment income for the year ended December 31, 2025	Book value of investments in Mainland China as of December 31, 2025	Book value of investments in Mainland China as of December 31, 2025	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Foxtron Vehicle Technologies(Hangzhou) Co., Ltd.	Primarily engaged in procurement of vehicle components.	$ 44,960	(1)	$ 44,361	$ -	$ -	$ 44,361	$ 2,751	100	$ 2,751	$ 46,022	$ -	Note 2 and 3
Company name	Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2025 (Note 5)	Investment amount approved Commission of the Ministry of Economic Affairs (MOEA) (Note 5)	Ceiling on investments in Mainland China imposed by the investment Commission of MOEA
---	---	---	---
Foxtron Vehicle Technologies Co., Ltd.	$ 44,361	$ 44,960	$ 8,032,931

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

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

Note 2: Foxtron Vehicle Technologies (Hangzhou) Co., Ltd. investment amount of RMB10,000,000 was approved by the Investment Commission of the Ministry of Economic Affairs (MOEA). The capital injection was completed on April 20, 2023.

Note 3: The 'Investment income (loss) recognised by the Company for the year ended December 31, 2025' column was recognised based on the financial statements that are audited and attested by CPA.

Note 4: Limit on the Company's investment in Mainland China is 60% of the Company's net assets.

Note 5: The investment amount approved by the Investment Commission of Ministry of Economic Affairs (MOEA) and the investment amount transmitted from Taiwan to mainland China at the end of the year both amounted to RMB10,000,000, and the difference was due to the exchange rate.

Table 4 page 1

Statement 1, Page1

FOXTRON VEHICLE TECHNOLOGIES CO., LTD.

STATEMENT OF CASH AND CASH EQUIVALENTS

FOR THE YEAR ENDED DECEMBER 31, 2025

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

Statement 1
| Items | Summary | Amount |
| --- | --- | --- |
| Petty cash and cash on hand | | $ 30 |
| Cash in banks | | |
| Demand deposits | | |
| Foreign currency deposits | | 1,242,606 |
| | USD 11,117 thousand dollars, exchange rate $31.43 | 349,398 |
| | RMB 10,261 thousand dollars, exchange rate $4.50 | 46,131 |
| | EUR 44 thousand dollars, exchange rate $36.90 | 1,640 |
| | JPY 10 thousand dollars, exchange rate $0.2 | 2 |
| | NZD - thousand dollars, exchange rate $18.12 | 3 |
| | | $ 1,639,810 |

Statement 2, Page1

FOXTRON VEHICLE TECHNOLOGIES CO., LTD.

STATEMENT OF INVENTORIES

FOR THE YEAR ENDED DECEMBER 31, 2025

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

Statement 2

Items	Amount		Note
	Cost	Net realisable value
Materials	$ 758,934	$ 755,583	Net realisable value for raw materials is determined at replacement cost. Goods in progress and finished goods are evaluated based on their net realisable value.
Work in progress	375,370	375,370
Finished goods	875	875
Inventory in transit	16,993	16,993
	1,152,172	$ 1,148,821
Less: Allowance for valuation loss	( 66,613)
	$ 1,085,559

Statement 3, Page1

FOXTRON VEHICLE TECHNOLOGIES CO., LTD.

STATEMENT OF ACCOUNTS PAYABLE

FOR THE YEAR ENDED DECEMBER 31, 2025

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

Statement 3
| Suppliers Name | Description | Amount | Note |
| --- | --- | --- | --- |
| Accounts payable | | | |
| A company | | $ 33,658 | |
| B company | | 28,972 | |
| C company | | 24,205 | |
| Others | | 278,153 | The balance of each supplier has not exceeded 5% of total account balance. |
| | | 364,988 | |
| Accounts payable | | | |
| – related parties | | | |
| Yulon Motor Co., Ltd. | | $ 52,695 | |
| Cloud Network Technology | | 35,875 | |
| Singapore Pte.Ltd. | | | |
| Others | | | The balance of each supplier has not exceeded 5% of total account balance. |
| | | 49,028 | |
| | | $ 502,586 | |

Statement 4, Page1

FOXTRON VEHICLE TECHNOLOGIES CO., LTD.

STATEMENT OF OTHER PAYABLES

FOR THE YEAR ENDED DECEMBER 31, 2025

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

Statement 4

Items	Description	Amount
Wages and salaries payable		$ 597,873
Design and development fee payable		236,474
Payable on machinery and equipment		91,587
Service fees payable	Mainly includes outsourced design service fees, management service fees and professional service fees, etc.	38,508
Taxes payable		9,773
Others		132,293
		$ 1,106,508

Statement 5, Page1

FOXTRON VEHICLE TECHNOLOGIES CO., LTD.

STATEMENT OF OPERATING REVENUE

FOR THE YEAR ENDED DECEMBER 31, 2025

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

Statement 5
| Items | Volume | Amount | Note |
| --- | --- | --- | --- |
| Sales of electric vehicle | 2,994 vehicles | $ 3,354,601 | |
| Sales of electric bus | 70 buses | 749,785 | |
| Service revenue | | 42,087 | |
| | | $ 4,146,473 | |

Statement 6, Page1

FOXTRON VEHICLE TECHNOLOGIES CO., LTD.

STATEMENT OF OPERATING COST

FOR THE YEAR ENDED DECEMBER 31, 2025

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

Statement 6

Items	Total
Raw materials at beginning	$ 1,057,744
Add: Materials purchased during the year	1,766,780
Less: Raw materials at the end of year	( 775,927)
Materials used for the year	2,048,597
Manufacturing overhead	1,507,000
Used research and development expenses	( 551,330)
Manufacturing cost	3,004,267
Add: Beginning work in progress	547,420
Less: Ending work in progress	( 375,370)
Cost of finished goods	3,176,317
Add: Beginning finished goods	-
Less: Ending finished goods	( 875)
Transferred into finished goods	( 7,349)
Total cost of sales	3,168,093
Cost of services	6,315
Warranty cost	43,805
Others	45,344
Add: Valuation loss on inventories	54,791
Total operating cost	$ 3,318,348

Statement 7, Page1

FOXTRON VEHICLE TECHNOLOGIES CO., LTD.

STATEMENT OF SELLING EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2025

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

Statement 7
| Items | Description | Amount | Note |
| --- | --- | --- | --- |
| Wages and salaries | | $ 28,390 | |
| Commission service fees | | 4,342 | |
| Freight | | 4,185 | |
| Other expenses | | 19,143 | The balance of each item has not exceeded 5% of the selling expenses. |
| | | $ 56,060 | |

Statement 8, Page1

FOXTRON VEHICLE TECHNOLOGIES CO., LTD.

STATEMENT OF ADMINISTRATIVE EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2025

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

Statement 8
| Items | Description | Amount | Note |
| --- | --- | --- | --- |
| Wages and salaries | | $ 370,011 | |
| Commission service fees | | 86,976 | |
| Depreciation | | 119,862 | |
| Other expenses | | 109,766 | The balance of each item has not exceeded 5% of the administrative expenses. |
| | | $ 686,615 | |

Statement 9, Page1

FOXTRON VEHICLE TECHNOLOGIES CO., LTD.

STATEMENT OF RESEARCH AND DEVELOPMENT EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2025

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

Statement 9
| Items | Description | Amount | Note |
| --- | --- | --- | --- |
| Wages and salaries | | $ 853,790 | |
| Depreciation | | 545,121 | |
| Amortisation | | 854,298 | |
| Commission service fees | | 652,206 | |
| | | | The balance of each item has not exceeded 5% of the research and development expenses. |
| Other expenses | | 1,091,312 | |
| | | $ 3,996,727 | |

FOXTRON VEHICLE TECHNOLOGIES CO., LTD.
SUMMARY STATEMENT OF CURRENT PERIOD EMPLOYEE BENEFITS, DEPRECIATION, DEPLETION AND AMORTIZATION EXPENSES BY
FUNCTION
FOR THE YEAR ENDED DECEMBER 31, 2025
(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

Statement 10

	Year ended December 31, 2025				Year ended December 31, 2024
	Classified as Operating Costs	Classified as Operating Expenses	Intangible assets generated internally within the Company	Total	Classified as Operating Costs	Classified as Operating Expenses	Intangible assets generated internally within the Company	Total
Employee benefit expense
Wages and salaries	$ 53	$ 1,252,191	$ 135,080	$ 1,387,324	$ 2,127	$ 996,720	$ 191,428	$ 1,190,275
Labour and health insurance fees	-	88,375	8,914	97,289	-	65,551	12,156	77,707
Pension costs	-	43,628	4,456	48,084	-	34,019	6,354	40,373
Share-based payment	-	9,852	-	9,852	-	12,775	-	12,775
Remuneration to directors	-	1,984	-	1,984	-	1,840	-	1,840
Other employee benefits expense	-	8,086	-	8,086	-	7,798	-	7,798
	$ 53	$ 1,404,116	$ 148,450	$ 1,552,619	$ 2,127	$ 1,118,703	$ 209,938	$ 1,330,768
Depreciation expense	$ -	$ 740,801	$ -	$ 740,801	$ -	$ 660,368	$ -	$ 660,368
Amortisation expense	$ 54,100	$ 858,511	$ -	$ 912,611	$ 110,140	$ 856,373	$ -	$ 966,513

Note:
A. For the years ended December 31, 2025 and 2024, the Company had 998 and 860 employees, respectively. Among them, there were 9 non-employee directors for both years.
B. Average employee benefit expense for the years ended December 31, 2025 and 2024 were $1,568 and $1,562, respectively.
C. Average employees' salaries for the years ended December 31, 2025 and 2024 were $1,403 and $1,399, respectively.
D. Adjustment of average employees' salaries was 0.3%.
E. The Company has set up an Audit Committee. Therefore, there were no supervisors' remuneration.

Statement 10, Page1

STATEMENT 10, Page2

FOXTRON VEHICLE TECHNOLOGIES CO., LTD.

SUMMARY STATEMENT OF CURRENT PERIOD EMPLOYEE BENEFITS, DEPRECIATION, DEPLETION AND AMORTIZATION EXPENSES BY FUNCTION (Cont.)

FOR THE YEAR ENDED DECEMBER 31, 2025

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

Statement 10

F. The Company’s remuneration policy (including directors, supervisors, managers and employees):

Directors and managers:

(1) The remuneration and attendance fees for directors (including independent directors) were distributed in accordance with the "Regulations Governing the Salaries and Remuneration for Directors and Managers" adopted by the Board of Directors.

(2) Directors (including independent directors) received fixed remuneration and attendance fees.

(3) Managers’ remuneration includes fixed salary and variable salary (various types of bonuses). Salaries are determined by reference to the general pay levels in the same industry and items such as position title, grade level, educational background and professional skill.

Bonus is distributed based on the managers’ personal performance and the contribution to the Company

Employees: Salaries are determined by reference to the general pay levels in the same industry, and bonuses are assessed based on the Company’s overall operating performance, personal performance and the contribution to the Company.

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Foxtron — Audit Report / Information 2025

51996_rns_2026-04-28_8c7a8bf0-1b7c-4fd6-b376-1fbc3f459035.pdf

INDEPENDENT AUDITORS' REPORT TRANSLATED FROM CHINESE

Opinion

Basis for opinion

Key audit matters

Intangible asset-impairment assessment of car model technology development costs

Description

How our audit addressed the matter

Sales revenue recognition of electric vehicles

Description

How our audit addressed the matter

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

FOXTRON VEHICLE TECHNOLOGIES CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2025 AND 2024

FOXTRON VEHICLE TECHNOLOGIES CO., LTD.

FOXTRON VEHICLE TECHNOLOGIES CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2025 AND 2024

FOXTRON VEHICLE TECHNOLOGIES CO., LTD.

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2025 AND 2024

1. History and Organisation

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

3. Application of New Standards, Amendments and Interpretations

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

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

4. Summary of Material Accounting Policies

(1) Compliance statement

(2) Basis of preparation

(3) Foreign currency translation

(12) Property, plant and equipment

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

B. Service revenue

C. The customer pays at the time specified in the payment schedule. If the products provided exceed the payment, a contract asset is recognised. If the payments exceed the products provided, a contract liability is recognised.

(24) Government grants

(25) Operating segments

5. Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

A. Impairment assessment of tangible and intangible assets (excluding goodwill)

B. Realisability of deferred tax assets

6. Details of Significant Accounts

(1) Cash and cash equivalents

(2) Financial assets at amortised cost

(3) Accounts receivable

(4) Inventories

(5) Prepayments

(6) Investments accounted for using equity method

(16) Capital surplus

(17) Accumulated deficit

B. Contract assets and liabilities

(19) Expenses by nature

(20) Employee benefit expense

(21) Income tax

(23) Supplemental cash flow information

7. Related Party Transactions

(1) Names of related parties and relationship

B. Financial risk management policies

Price risk

Cash flow and fair value interest rate risk

(b) Credit risk

FOXTRON VEHICLE TECHNOLOGIES CO., LTD.

STATEMENT OF CASH AND CASH EQUIVALENTS

FOR THE YEAR ENDED DECEMBER 31, 2025

FOXTRON VEHICLE TECHNOLOGIES CO., LTD.

STATEMENT OF INVENTORIES

FOR THE YEAR ENDED DECEMBER 31, 2025

FOXTRON VEHICLE TECHNOLOGIES CO., LTD.

STATEMENT OF ACCOUNTS PAYABLE

FOR THE YEAR ENDED DECEMBER 31, 2025

FOXTRON VEHICLE TECHNOLOGIES CO., LTD.

STATEMENT OF OTHER PAYABLES

FOR THE YEAR ENDED DECEMBER 31, 2025

FOXTRON VEHICLE TECHNOLOGIES CO., LTD.

STATEMENT OF OPERATING REVENUE

FOR THE YEAR ENDED DECEMBER 31, 2025

FOXTRON VEHICLE TECHNOLOGIES CO., LTD.

STATEMENT OF OPERATING COST

FOR THE YEAR ENDED DECEMBER 31, 2025

Foxtron Audit Report / Information 2025