Stock Code: 3149

G-TECH Optoelectronics Corporation
Unconsolidated Financial Statements and
Independent Auditor's Report
For the Years Ended December 31, 2025 and 2024

Company Address: 99 Zhongxing Rd., Tongluo Township, Miaoli County
Telephone: (037) 236-988

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Table of Contents

Item	Page No.
I. Cover Page	1
II. Table of Contents	2
III. Independent Auditor’s Report	3
IV. Balance Sheet	4
V. Statements of Comprehensive Income	5
VI. Statement of Changes In Equity	6
VII. Statements of Cash Flows	7
VIII. Notes to the Unconsolidated Financial Statements
(I) Company History	8
(II) Approval of Dates and Procedures of Financial Statements	8
(III) Application of New, Amended and Revised Standards and Interpretations	8~10
(IV) Summary of Significant Accounting Policies	10~26
(V) Critical Accounting Judgments and Key Sources of Estimation Uncertainty	26~27
(VI) Description of Significant Accounts	27~62
(VII) Related party transaction	62~63
(VIII) Pledged Assets	64
(IX) Significant Contingent Liabilities and Unrecognized Commitments	64
(X) Significant Disaster Loss	64
(XI) Significant Subsequent Events	64
(XII) Others	64~65
(XIII) Disclosures in Notes
1. Information on Significant Transactions	66~67
2. Information on Investees	67
3. Information on Investments in China	67~68
(XIV) Segment Information	68
IX. Details of Important Accounts	69~76

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Independent Auditor’s Report

To the Board of Directors of G-TECH Optoelectronics Corporation:

Audit opinion

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

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

Basis for Opinion

We are entrusted to conduct the audits in accordance with the Regulation Governing Auditing and Certification of Financial Statements by Certified Public Accountants and auditing standards. 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 Norms for Professional Ethics for Certified Public Accountants and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the parent company only financial statements of the Company for the year ended December 31, 2025. These matters were addressed in the context of our audit of the unconsolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key audit matters for the audit of the financial statements are stated as follows:

I. Revenue Recognition

Please refer to Note 4(17) of the parent company only financial statements for the detailed accounting policy on revenue recognition. Please refer to Note 6(20) of the parent company only financial statements for detailed descriptions of the revenue recognition.

Description of Key Audit Matters:

The revenue of the Company mainly comes from product sales to customers, and the sales contract with customers involve different types of transaction terms. For the recognition of sales revenue, the product control transfer status is determined according to the transaction terms of each individual sales contract. Accordingly, the test of the recognition of revenue is identified as a key audit matter for the execution of the audit of the financial statements of the Company.

Corresponding Audit Procedures:

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Evaluate the appropriateness of the accounting policy for revenue recognition;
Understand and test the effectiveness of the design and implementation of internal control over the main revenue types, transaction models, contract terms and transaction conditions of the Company;
Conduct detailed tests on samples and check various forms to ensure the authenticity of transactions; perform cut-off testing before and after the financial reporting date, select samples and verify against relevant documents to determine if the timing of recognition of transactions is reasonable.

II. Investment Property Fair Value Evaluation

Please refer to Note 4(10) of the parent company only financial statements for detailed accounting policy on investment property fair value evaluation. Please refer to Note 5(2) of the parent company only financial statements for detailed accounting estimation and assumption uncertainty for the investment property fair value. Please refer to Note 6(8) of the parent company only financial statements for details of the investment property.

Description of Key Audit Matters:

The investment property of the Company refers to important assets for operation, and its amount accounts for 28% of the total assets. For the investment property, the accounting procedure adopts the standard of IAS 40, and the fair value model is selected for the adoption. Subsequent fair value change is reorganized as current profit/loss. The evaluation of investment properties is performed by external real estate appraisers, using the most appropriate method of the income approach for valuation or the land development analysis approach to determine the fair value. The application of the income approach or land development analysis approach may involve significant uncertainties in the estimation of future rent levels, market conditions, area available for development, expected costs, income and discount rates. If the evaluation of changes in fair value is not appropriate, it may cause the financial statements to be materially misstated. Accordingly, the investment property fair value evaluation is identified as a key audit matter for the execution of the audit of the financial statements of the Company.

Corresponding Audit Procedures:

Assess the professionality, objectiveness and experience of the real estate appraiser retained by the Company to be in charge of the fair value measurement.
Verify the rationality of the material assumptions and critical judgments adopted in its appraisal report, and compare with relevant market information, in order to determine whether the future cash flow, income and discount rate have been handled according to the regulations.
Verify the appraisal report and relevant accounting records in order to determine the accuracy of accounting procedures.

Responsibilities of Management and Those Charged with Governance for the Unconsolidated Financial Statements

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

In preparing the parent company only financial statements, the responsibilities of the management also include assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters

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related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those charged with governance, including the audit committee, are responsible for overseeing the Company's financial reporting process.

Auditor’s Responsibilities for the Audit of the Unconsolidated Financial Statements

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

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

Identify and assess the risk of material misstatement in the parent company only financial statements due to fraud or error, design and adopt appropriate countermeasures for the risks assessed, and obtain sufficient and appropriate audit evidence in order to be used as the basis for the opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain a necessary understanding of internal control concerning the inspection in order to design appropriate inspection procedures that are appropriate for the time being. The purpose, however, is not to effectively express opinions on the internal control of the Company.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management level.
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 ability of the Company to continue as a going concern. If we conclude that a material uncertainty exists, then relevant disclosures of the parent company only financial statements are required to be provided in our audit report to allow users of parent company only financial statements to be aware of such events or circumstances, or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s 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 relevant notes, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient and appropriate audit evidence regarding the financial information of investees under the equity method, and express an opinion on the parent company only financial statements. We handle the guidance, supervision and execution of the audit on the Company and are responsible for preparing the opinion on the Company.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in

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internal control that we identify during our audit.

We have also provided the governance body with a declaration of independence stating that all relevant personnel of the accounting firm have complied with auditors' professional ethics, and communicated with the governance body on all matters that may affect the auditor's independence (including protection measures).

From the matters communicated with those charged with governance, we determine those matters that were of most significant in the audit of the Company's 2025 parent company only financial statements and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation preclude 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 could reasonably be expected to outweigh the public interest benefits of such communication.

KPMG

CPA:

Certificate No. Approved by the Competent Authority of Securities:
Jin-Guan-Zheng-Shen-Zi No. 1130332775
Jin-Guan-Zheng-VI-Zi No.0940129108
March 10, 2026

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G-TECH Optoelectronics Corporation
Balance Sheet
As of December 31, 2025 and 2024

Unit: NT$ thousand

	2025.12.31		2024.12.31			2025.12.31		2024.12.31
	Amount	%	Amount	%	Liabilities and Equity	Amount	%	Amount	%
Asset					Current liabilities:
Current assets:
1100	Cash and cash equivalents (Notes 6(1) and (22))	$ 567,717	12	844,441	19	2100	Short-term borrowings (Notes 6(11), (22) and (25))	$ 168,000	4
1110	Financial asset at fair value through profit or loss – current (Notes 6(2), and (22))	-	-	4,354	-	2130	Contract liabilities - current (Note 6(20))	7,472	-
1170	Notes and accounts receivable, net (Notes 6(4), (20), and (22))	397,175	8	346,821	8	2170	Notes and accounts payable (Note 6(22))	342,984	7
1180	Notes and accounts receivable - related parties, net (Notes 6(4), (20), (22) and 7)	25,418	1	3,829	-	2180	Notes and accounts payable - related parties (Notes 6(22) and 7)	19,480	1
1220	Current income tax assets	2,887	-	1,376	-	2200	Other payables (Note 6(22) and 7)	103,454	2
130X	Inventories (Note 6(5))	90,992	2	173,919	4	2213	Payables on equipment (Notes 6(22) and (25))	672	-
1476	Other financial assets - current (Notes 6(9), (22), 7 and 8)	91,899	2	340,112	7	2250	Liability reserve - current (Note 6(14))	9,346	-
1479	Other current assets (Note 6(10))	16,504	-	40,264	1	2280	Lease liabilities - current (Notes 6(22) and (25))	14	-
	Total current assets	1,192,592	25	1,755,116	39	2322	Long-term borrowings due in one year or one business cycle (Notes 6(12), (22) and (25))	224,017	5
						2399	Other current liabilities	13	-
	Non-current assets:						Total current liabilities	875,452	19
1510	Financial asset at fair value through profit or loss - non-current (Notes 6(2), and (22))	200,784	4	99,960	2		Non-current liabilities:
1517	Financial assets at fair value through other comprehensive income- non-current (Notes 6(3) and 6(22))	27,711	1	-	-	2540	Long-term borrowings (Notes 6(12), (22) and (25))	1,251,316	26
						2550	Provision for liabilities - non-current	15,698	-
1551	Investments accounted for under the equity method (Notes 6(6) and (27))	481,260	10	186,839	4	2570	Deferred income tax liabilities (Note 6(15))	71,137	1
1600	Property, plant and equipment (Notes 6(7), (25), 8 and 9)	1,225,324	26	1,166,985	26			71,137	1
1755	Right-of-use assets	20,760	-	39,567	1			1,338,151	27
1760	Net investment property (Notes 6(8) and 8)	1,328,137	28	1,148,336	26			2,213,603	46
1780	Intangible assets	3,338	-	2,723	-
1840	Deferred income tax assets (Note 6(15))	68,680	1	12,466	-	3110	Ordinary share capital	2,262,336	48
1980	Other financial assets - non-current (Notes 6(9) and (22))	470	-	4,569	-	3200	Capital surplus	811,200	17
1990	Other non-current assets (Notes 6(10), 8 and 9)	221,294	5	94,298	2	3300	Losses to be covered	(989,242)	(21)
	Total non-current assets	3,577,758	75	2,755,743	61	3400	Other equities	472,453	10
	Total Assets	$ 4,770,350	100	4,510,859	100		Total liabilities and equity	$ 4,770,350	100

(Please refer to the notes to the parent company only financial statements enclosed for details)

Chairman of the Board: Chung, Chih-Ming

Managerial Officer: Chung, Chih-Ming

Accounting Officer: Tai-Chiu Wu

G-TECH Optoelectronics Corporation

Statements of Comprehensive Income

From January 1 to December 31, 2025 and 2024

Unit: NT$ thousand

	2025		2024
		Amount	%	Amount	%
4000	Operating revenues (Note 6(20) and 7)	$ 2,016,159	100	1,984,285	100
5000	Operating costs (Notes 6(5), (7) (14) and 7)	2,244,250	111	1,962,422	99
	Gross profit (loss)	(228,091)	(11)	21,863	1
	Operating expenses (Notes 6(4), (7), (14), (16) and (17)):
6100	Selling and marketing expenses	43,559	2	45,535	2
6200	Administrative expenses	176,859	9	149,518	8
6300	Research and development expenses	106,511	5	118,777	6
6450	Estimated credit impairment losses (recovery gains)	3,468	-	(15,752)	(1)
6300	Total operating expenses	330,397	16	298,078	15
	Net operating loss	(558,488)	(27)	(276,215)	(14)
	Non-operating income and expense:
7100	Interest income (Note (21))	15,394	1	15,404	1
7020	Other gains and losses (Note (8), (13) and (21))	4,160	-	65,144	3
7050	Finance costs (Note (21))	(41,887)	(2)	(45,058)	(2)
7070	Share of subsidiaries and associates accounted for using the equity method	(72,193)	(4)	2,020	-
	Total non-operating income and expenses	(94,526)	(5)	37,510	2
	Loss before tax	(653,014)	(32)	(238,705)	(12)
7950	Less: Income tax (gain) expense (Note 6(15))	(48,403)	(2)	2,054	-
	Net loss of current period	(604,611)	(30)	(240,759)	(12)
8300	Other comprehensive income:
8310	Items not reclassified subsequently to profit or loss
8311	Remeasurement of defined benefit plans	4	-	-	-
8349	Less: Income tax related to not recategorized items	-	-	-	-
	Total items that will not be reclassified to profit or loss	4	-	-	-
8360	Items that may subsequently be reclassified to profit or loss (Note 6(16))
8380	Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using equity method - Items may be reclassified into profit or loss	(11,696)	(1)	5,482	-
8399	Less: Income tax related to items that may be reclassified to profit or loss	-	-	-	-
	Total of items that may subsequently be reclassified to profit or loss	(11,696)	(1)	5,482	-
8300	Other comprehensive income (net of tax)	(11,692)	(1)	5,482	-
	Total comprehensive income of current period	$ (616,303)	(31)	(235,277)	(12)
	Loss per share (Note 6(18))
	Basic loss per share (Unit: NT$)	$	(2.86)		(1.45)

(Please refer to the notes to the parent company only financial statements enclosed for details)

Chairman of the Board: Chung, Chih-Ming Managerial Officer: Chung, Chih-Ming Accounting Officer: Tai-Chiu Wu

G-TECH Optoelectronics Corporation

Statement of Changes In Equity

From January 1 to December 31, 2025 and 2024

Unit: NT$ thousand

	Ordinary share capital	Capital collected in advance	Capital surplus	Losses to be covered	Other equity			Total equity
					Difference in exchange from the conversion of financial statements of overseas operating entities	Revalued amount of property	Total
Balance on January 1, 2024	$ 1,443,296	2,760	22,614	(581,144)	165,980	312,687	478,667	1,366,193
Net loss of current period	-	-	-	(240,759)	-	-	-	(240,759)
Other comprehensive income (loss) of current period	-	-	-	-	5,482	-	5,482	5,482
Total comprehensive income of current period	-	-	-	(240,759)	5,482	-	5,482	(235,277)
Covering loss from capital surplus	-	-	(578)	578	-	-	-	-
Issuance of new shares for employees' exercise of stock options	19,040	(2,760)	9,054	-	-	-	-	25,334
Cash capital increase	400,000	-	384,000	-	-	-	-	784,000
Cash capital increase reserved for employee subscription cost	-	-	21,600	-	-	-	-	21,600
Balance on December 31, 2024	1,862,336	-	436,690	(821,325)	171,462	312,687	484,149	1,961,850
Net loss of current period	-	-	-	(604,611)	-	-	-	(604,611)
Other comprehensive income (loss) of current period	-	-	-	4	(11,696)	-	(11,696)	(11,692)
Total comprehensive income of current period	-	-	-	(604,607)	(11,696)	-	(11,696)	(616,303)
Covering loss from capital surplus	-	-	(436,690)	436,690	-	-	-	-
Cash capital increase	400,000	-	800,000	-	-	-	-	1,200,000
Cash capital increase reserved for employee subscription cost	-	-	11,200	-	-	-	-	11,200
Balance on December 31, 2025	$ 2,262,336	-	811,200	(989,242)	159,766	312,687	472,453	2,556,747

(Please refer to the notes to the parent company only financial statements enclosed for details)

Chairman of the Board: Chung, Chih-Ming

Managerial Officer: Chung, Chih-Ming

Accounting Officer: Tai-Chiu Wu

G-TECH Optoelectronics Corporation
Statements of Cash Flows
From January 1 to December 31, 2025 and 2024

	Unit: NT$ thousand
	2025	2024
Cash flows from operating activities:
Net loss before tax in the period	$ (653,014)	(238,705)
Adjustments:
Income/expenses items
Depreciation expense	125,120	126,839
Amortization expense	3,036	1,152
Expected credit losses (gain from price recovery)	3,468	(15,752)
Net loss on financial assets and liabilities at fair value through profit or loss	12,600	10,625
Interest expense	41,887	45,058
Interest income	(15,394)	(15,404)
Dividend income	(72)
Share-based payment cost	11,200	21,600
Share of loss (gain) from subsidiaries, associated companies and joint ventures using the equity method	72,193	(2,020)
Gain on fair value adjustment of investment property	(35,512)	(1,080)
Gains on lease modification	-	(4)
Losses from unfinished construction projects	6,097	-
Total adjustments to reconcile profit and loss	224,623	171,014
Changes in assets/liabilities relating to operating activities:
Net changes in assets relating to operating activities:
Decrease (increase) in notes and accounts receivable (including related parties)	(86,979)	74,768
Inventory decrease (increase)	82,927	(21,125)
Decrease (increase) in other current assets	23,760	(29,693)
(Increase) decrease in other financial assets	(1,693)	3,332
Total net changes in assets related to operating activities	18,015	27,282
Net changes in liabilities related to operating activities:
Increase (decrease) in contract liabilities	(1,397)	7,457
Increase in notes and accounts payable (including related parties)	54,822	41,196
Decrease in other payables	(7,343)	(481)
Decrease in provision for liability	(1,987)	(6,708)
Increase (decrease) in other current liabilities	4	(280)
Total net changes in liabilities related to operating activities	44,099	41,184
Total net changes in assets and liabilities related to operating activities	62,114	68,466
Total adjustments	286,737	239,480
Cash inflow (outflow) from operating activities	(366,277)	775
Interest received	15,394	15,404
Dividends received	72	-
Interest paid	(42,640)	(42,186)
Income tax paid	(1,511)	(977)
Net cash outflow from operating activities	(394,962)	(26,984)

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G-TECH Optoelectronics Corporation
Statements of Cash Flows (continued)
From January 1 to December 31, 2025 and 2024

	Unit: NT$ thousand
	2025	2024
Cash flow from investing activities:
Acquisition of financial assets at fair value through other comprehensive income	(27,711)	-
Acquisition of financial assets at fair value through profit or loss	(607,302)	(167,001)
Disposal of financial assets at fair value through profit or loss	498,232	52,386
Acquisition of investments under equity method	(30,000)	(64,360)
Acquisition of asset group (Note 4(15) and 6(27))	(348,310)	-
Property, plant and equipment acquired	(154,140)	(39,547)
Disposal of property, plant and equipment	6,789	-
Acquisition of intangible assets	(3,651)	(1,753)
Acquisition of Investment property	(144,289)	-
Decrease (increase) in other financial assets	294,358	69,716
Increase in prepayments for equipment	(151,832)	(60,845)
Net cash used in investing activities	(667,856)	(211,404)
Cash flows from financing activities:
Increase in short-term borrowings	168,000	1,287,748
Decrease in short-term borrowings	(700,748)	(969,000)
Repayment of corporate bonds	-	(500,000)
Proceeds from long-term borrowings	328,000	370,000
Repayments of long-term borrowings	(193,417)	(398,827)
Lease principle repayment	(15,741)	(16,327)
Cash capital increase	1,200,000	784,000
Employees’ exercise of stock options	-	25,334
Net cash inflow from financing activities	786,094	582,928
Increase (decrease) in cash and cash equivalents in current period	(276,724)	344,540
Balance of cash and cash equivalents at beginning of period	844,441	499,901
Balance of cash and cash equivalents at end of period	$ 567,717	844,441

(Please refer to the notes to the parent company only financial statements enclosed for details)

Chairman of the Board: Chung, Chih-Ming
Managerial Officer: Chung, Chih-Ming
Accounting Officer: Tai-Chiu Wu

G-TECH Optoelectronics Corporation
Notes to the Unconsolidated Financial Statements
For the Years Ended December 31, 2025 and 2024
(Unless otherwise specified, all amounts should be denominated in NT$ thousand)

I. Company History

G-TECH Optoelectronics Corporation (hereinafter referred to as the “Company”) was approved by the Ministry of Economic Affairs (MOEA) for establishment on June 27, 1996. The place of registration is No. 99, Zhongxing Rd., Tongluo Township, Miaoli County. The main business items of the Company include glass and glass products, electronics parts manufacturing and international trade business, etc.

II. Approval of Dates and Procedures of Financial Statements

The parent company only financial statements were approved and authorized for issue by the Board of Directors on March 6, 2026.

III. Application of New, Amended and Revised Standards and Interpretations

(I) The impact of the new announcements and revisions of the standards and interpretations endorsed by the Financial Supervisory Commission (“FSC”)

The Company has initially adopted the following new amendments, which do not have a significant impact on its parent company only financial statements, from January 1, 2025.

Amendments to IAS 21 "Lack of Convertibility"
Amendments to IFRS 9 and IFRS 7 "Amendment to Classification and Measurement of Financial Instruments" and application index of Section 4.1 of IFRS 9 and relevant disclosure requirements of IFRS 7

(II) Effect of not adopting the IFRS endorsed by the FSC

The Company assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2026, would not have a significant impact on its parent company only financial statements.

Amendments to IFRS 17 "Insurance Contracts" and IFRS 17
Amendments to IFRS 9 and IFRS 7 "Amendment to Classification and Measurement of Financial Instruments" and application index of Sections 3.1 and 3.3 of IFRS 9 and relevant disclosure requirements of IFRS 7
Annual improvements to International Financial Reporting Standards (IFRSs)
Amendments to IFRS 9 and IFRS 7 "Contracts for Natural-dependent Electricity"

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Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

(III) New standards and Interpretations not yet endorsed by the FSC

The standards and interpretations issued by the IASB but not yet endorsed and issued into effect by the FSC that may be relevant to the Company are as follows:

Newly promulgated or amended standards	Main amendments	Effective date of publication by FSC
IFRS 18 “Expression and Disclosure of Financial Statements”	The new standards introduce three types of income and expenses, two subtotals for the income statement, and one single note related to the management performance measurement. These three amendments and enhancements provide a guideline on how to further classify information in the financial statements, in order to provide a foundation to users with better and more consistent information, which will affect all companies.

• More structured income statement: According to the current standards, companies use different formats to express their operating results, so that investors cannot easily compare the financial performance of different companies. The new standard adopts a more structured income statement, and introduces new definition of "operating profits" as a subtotal, and also specifies that all income and expenses are classified into three new different categories based on company's main operating activities.

• Management Performance Measurements (MPMs): The new standard introduces the definition of management performance measurement, and requires companies to provide the information on each measurement indicator in a single note to the financial statements, and to explain the calculation and how to adjust the measured indicator and the amount recognized in the IFRS | January 1, 2027
Note: On September 25, 2025, the FSC announced in a press release stating that Taiwan would adopt IFRS No. 18 in the 2028 fiscal year. If any company plans to apply the standard earlier, it may do so after the approval of the FSC. |

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Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

Newly promulgated or amended standards	Main amendments	Effective date of publication by FSC
	accounting standards.
• More detailed information: The new standard includes a guideline on how companies can strengthen information classification in the financial statements. This includes the guideline on whether the information needs to be included in the main financial statements or further classified in the notes.

The Company is currently assessing the impact of the aforementioned standards and interpretations on the financial status and business results of the Company, and relevant impacts will be disclosed after the completion of the assessment.

The following newly promulgated and amended standards not yet approved are not expected to have material impact on the unconsolidated financial statements of the Company.

Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”
IFRS 19 "Subsidiaries not Publicly Responsible for Public Expenditure: Disclosure" and amendments to IFRS 19
Amendments to IAS 21 “Translation to Hyperinflationary Presentation Currency”

IV. Summary of Significant Accounting Policies

The significant accounting policies applied in the preparation of the parent company only financial statements are summarized as follows. The following accounting policies have been applied consistently throughout the presented periods in the parent company only financial statements.

(I) Statement of Compliance

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

(II) Basis of Preparation

Measurement bases

The parent company only financial statements have been prepared on the historical cost basis, except for the following significant balance sheet items.

(1) Financial assets at fair value through profit or loss;
(2) Financial assets measured at fair value through other comprehensive income;
(3) Investment property at fair value;
(4) Net defined benefit liabilities are measured as the present value of the defined benefit obligation less the fair value of plan assets.

Functional and presentation currency

The functional currency of the Company is determined based on the currency of the primary economic environment in which it operates. The parent company only

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Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

financial statements are presented in New Taiwan Dollars, which is the Company's functional currency. All financial information is presented in NT$ thousand.

(III) Foreign currency

1. Foreign currency transaction

Transactions in foreign currencies are translated to the functional currency at the exchange rate at the dates of the transactions. At the end of each subsequent reporting period (referred to as the "report date"), foreign currency items are translated to the functional currency at the exchange rate at that date. Non-monetary items measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined. Non-monetary items in a foreign currency that are measured based on historical cost are translated using the exchange rate at the date of transaction.

The foreign exchange difference arising from the conversion is typically recognized in profit or loss; however, it shall be recognized under other comprehensive income for the following conditions:

When it is designated as equity instruments at fair value through other comprehensive income;
When the translation of a financial liability designated as a net investment in a foreign operation is within the effective extend of the hedge; or
When the qualified cash flow hedge is within the effective extend of the hedge.

2. Foreign operation

The assets and liabilities of foreign operations include the reputation and fair value adjustment at the time of acquisition, and it is converted into NTD according to the exchange rate on the report date. The profit and loss items are converted into NTD according to the average exchange rate of the current period. The exchange difference generated is recognized as other comprehensive income.

In case of disposal of foreign operation leading to loss of control, joint control or material impact, the accumulated exchange difference related to the foreign operation shall be reclassified as profit or loss in full. During partial disposal of affiliated enterprise or joint venture investment involving foreign operations, relevant accumulated exchange difference shall be reclassified as profit or loss proportionally.

For monetary accounts receivable or payable of a foreign operation, if there is no repayment plan and repayment cannot be made in the foreseeable future, the foreign exchange profit or loss arising therefrom shall be treated as part of the net investment on such foreign operation and shall be recognized as other comprehensive income.

(IV) Classification of current and non-current assets and liabilities

The Company classifies an asset as current asset under one of the following criteria, and all other assets are classified as non-current:

Assets expected to be realized or intended to be sold or consumed during their normal operating cycle;
Assets primarily held for the purpose of trading;
Assets expected to be realized within twelve months following the reporting period;

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Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

The asset is cash or cash equivalents (as defined in IAS 7), unless its exchange for at least 12 months after the reporting period or its use to settle liabilities is restricted.

The Company classifies a liability as current liability under one of the following criteria, and all other liabilities are classified as non-current:

Liabilities expected to be settled in their normal operating cycle;
Liabilities primarily held for the purpose of trading;
The liability will be settled within twelve months after the reporting period; or
Liabilities that are devoid of the right to defer the settlement for at least 12 months after the reporting period at the end of the reporting date.

(V) Cash and cash equivalents

Cash comprises cash in hand and demand deposits. Cash equivalents refer to short-term investments with high liquidity that are subject to insignificant risk of changes in their fair value and can be cashed into fixed amounts of money. The definition of time deposit is similar to that of cash equivalent; however, the purpose of holding time deposit is for short-term cash commitment rather than investment, to be classified as cash equivalents.

(VI) Financial Instruments

Accounts receivable and debt securities are initially recognized upon receipt. All other financial assets and financial liabilities are initially recognized when the Company becomes a party to the contractual provisions of the instruments. Financial assets not measured at fair value through profit or loss (excluding account receivables not containing a significant financial component) or financial liabilities were initially measured at fair value plus the transaction cost directly attributed to the acquisition or issuance thereof. Accounts receivable not containing a significant financial component were initially measured at the transaction price.

Financial asset

For the purchase or sale of financial assets complying with regular trading, the Company uses the same method to classify the financial assets. All of the purchases and sales of financial assets are recognized using trade-date or settlement-date accounting.

During the initial recognition, the financial assets are classified into the following categories: facial assets measured at amortized cost, equity instruments measured at fair value through other comprehensive income, and financial assets measured at fair value through other comprehensive income.

The Company reclassifies all affected financial assets starting on the first day of the next reporting period only when it changes its business model for managing its financial assets.

(1) Financial assets at amortized cost

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as measured at fair value through profit or loss:

The financial asset is held within a business model whose objective is to hold assets to collect contractual cash flows.

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

The contractual terms of the financial asset give rise on specific dates to cash flows that are solely payments of principle and interest on the principle amount outstanding.

Such assets subsequently use the initially recognized amount plus or less the accumulated amortized value using the effective interest method, and adjust any allowance loss measured at amortized cost. Interest income, foreign exchange gains and losses and impairment losses are recognized in profit or loss. Gains or losses on derecognition are recognized in profit or loss.

(2) Financial assets measured at fair value through other comprehensive income

It refers to an irrevocable choice made during the initial recognition of the Company, and the fair value change of the equity tool investment not held for trading is listed in the other comprehensive income. The aforementioned choice is made according to the instrument basis item by item.

A financial asset measured at FVOCI is initially recognized at fair value, plus any directly attributable transaction costs. It is then subsequently measured at fair value. Except that the foreign exchange gains or losses, interest income calculated using the effective interest method and impairment losses and dividends deriving from equity investments (unless the dividend clearly presents a recovery of part of the cost of the investment) are recognized as income in profit or loss, other net gains and losses of financial assets measured at FVOCI are recognized in OCI, and the unrealized profit or loss of financial assets measured at FVOCI under the equity item is accumulated. On derecognition, gains and losses accumulated in OCI of equipment investments are reclassified to profit or loss. For equity instrument investments, the gains and losses accumulated under the equity item is reclassified to retained earnings instead of being reclassified to profit or loss.

Dividend income derived from equity investments is recognized on the date that the Company's right to receive payment is established (normally refers to the ex-dividend date).

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

Financial assets not measured at amortized cost or through other comprehensive income, as described above, are measured at fair value through profit or loss, including derivative financial assets. At the initial recognition, in order to eliminate or significantly reduce the improper accounting ratio, the Company may designate the financial assets measured at amortized cost or through other comprehensive income as financial assets measured at fair value through profit or loss.

Such assets are subsequently measured at fair value, and the net gain or loss (including any dividends and interest income) is recognized as profit or loss.

(4) Impairment of financial assets

The Company recognizes loss allowances for expected credit losses on financial assets measured at amortized cost (including cash and cash equivalents, financial assets measured at amortized cost, notes receivable and accounts receivable, other receivables and other financial assets).

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Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

The Company measures loss allowances at an amount equal to lifetime expected credit loss (ECL), except for the following which are measured at 12-month ECL:

Debt securities that are determined to have low credit risk at the reporting date; and
Other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.

Loss allowance for trade receivables is measured at an amount equal to lifetime ECLs.

To determine whether the credit risk has significantly increased after the initial recognition, the Company considers reasonable and verifiable information (information that can be obtained without excessive cost or investment), including qualitative and quantitative information, and the analysis conducted by the Company based on past experience, credit assessment and prospective information.

If a contract payment is overdue, the Company assumes a significant increase in the credit risk of the financial asset. The Company assumes that the credit risk on the financial asset has been breached if it is more than 90 days past due.

Lifetime ECLs are the ECLs that result from all possible default events during the expected life of a financial instrument.

12-month ECLs are the portion of ECLs that result from possible default events within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).

The maximum period considered when estimating ECLs is the maximum contractual period over which the Company is exposed to credit risk. Expected credit losses are a probability-weighted estimate of credit losses during the expected lifetime of the financial instrument. Credit loss is measured as the present value of all cash shortfalls, i.e. the difference between the cash flows due to the Company in accordance with contracts and the cash flows that the Company expects to receive. ECLs are discounted at the effective interest rate of the financial asset.

At each reporting date, the Company assess whether financial assets measured at amortized cost are subject to credit impairment. A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Evidence that a financial asset is credit-impaired includes the following observation data:

Significant financial difficulty of the borrower or issuer;
Breach of contract, such as delays or defaults;
For economic or contractual reasons related to the borrower’s financial difficulty, having granted to the borrower a concession that the Company

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Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

would not otherwise consider;

It is probable that the borrower will file for bankruptcy or other financial reorganization; or
The disappearance of an active market for a security due to financial difficulties.

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets.

The gross carrying amount of a financial asset is written off, either in full or partially, to the extent that there is no realistic prospect of recovery for the Company. For corporate accounts, the Company individually analyzes the write-off timing and amount based on whether it is reasonably expected to be recovered. The Company expects that the written off amount will not have significant reversal. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Company's procedures for recovery of amounts due.

(5) Derecognition of financial assets

The Company derecognizes financial assets only when the contractual rights of the cash flows from the asset are terminated, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party, or when nearly all risks and rewards of ownership are not transferred and not retained and the control of the financial asset is not retained.

When the Company signs a transaction for transferring financial assets, if all or nearly all of the risks and rewards of the ownership of the assets transferred are retained, then it is still continued to be recognized in the balance sheet.

Financial liabilities and equity instruments

(1) Classification of liabilities or equity

The debts and equity instruments issued by the Company are classified as financial liabilities or equity according to the substance of contract agreements and the definition of financial liabilities and equity instruments.

(2) Equity transaction

Equity instrument refers to any contract representing the Company with remaining equity from assets after all liabilities have been subtracted. The equity instruments issued by the Company are recognized based on the amount obtained from the payment amount less the direct issuance cost.

(3) Financial liability

Financial liabilities are subsequently measured either at amortized cost or at fair value through profit or loss. Financial liabilities are classified as at fair value through profit or loss when the financial liability is held for trading, is a derivate instrument, or is designated at initial recognition. Financial liabilities measured at fair value through profit or loss are measured at fair value, with any relevant net gains or losses, including any interest expense, recognized in profit or loss.

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Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

Other financial liabilities are subsequently measured at amortized cost calculated using the effective interest method. Interest expense and exchange gain and loss are recognized in the profit or loss. On derecognition, any profits or losses are recognized in profit or loss.

(4) Derecognition of financial liabilities

The Company derecognizes a financial liability when its contractual obligation has been discharged, canceled or has expired. When there are changes in the terms of the financial liabilities and there is significant difference in the cash flow of liabilities after revision, then the original financial liabilities are derecognized, and the revised terms are used as the basis for the recognition of the new financial liabilities at fair value.

During the derecognition of a financial liability, the difference between the carrying amount and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

(5) Offsetting of financial assets and liabilities

The Company only presents financial assets and liabilities on a net basis when the Company currently has the legally enforceable right to offset them, and intends to settle such financial assets and liabilities on a net basis or to realize the assets and settle the liabilities simultaneously.

(VII) Inventories

Inventory is measured based on the lower of the cost and the net realizable value. The cost of inventories consists of all costs of acquisition, production or processing costs and other costs arising from the location and state of use, and the weighted average method is used. The costs of finished products and work in process include the manufacturing expense amortized according to the appropriate ratio under normal production capacity.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.

(VIII) Investments in Associates

Associate refers to an entity where the Company has material impact on its financial and operational policies, but has no control or joint control over.

The Company adopts the equity method for the equity of an associate. Under the equity method, it is recognized at cost during the initial acquisition, and the investment cost includes the transaction cost. The carrying amount of the invested associate includes the goodwill identified during the initial investment, less any accumulated impairment loss.

The parent company only financial statements includes the amount of profit or loss and the amount of other comprehensive income of each invested associate, from the date of having material impact to the date of losing material impact, after adjustments to make the accounting policy consistent with the Company, recognized by the Company according to the equity ratio. When the associate is subject to equity change not for profit or loss or other comprehensive income and when the shareholding percentage of the Company in the associate is not affected, the Company then recognizes the equity change under the share of the associate for the Company as capital reserve according to the shareholding percentage.

The unrealized profit and loss arising from the transactions between the Company and

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Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

associates is recognized in the company’s financial statements only within the scope of the non-related party on the associate. When the loss amount of the associate required for recognition proportionally by the Company is equal to or exceeds its equity in the associate, its loss is no longer recognized, and additional loss and relevant liabilities are recognized only within the scope of occurrence of statutory obligation, presumed obligation or payments made on behalf of the investee.

During the issuance of new shares by an associate, if the Company fails to subscribe according to the shareholding percentage such that there is a change in the shareholding percentage, leading to change in the equity net value of the investment, the change is used to adjust the capital surplus and the investment under equity method. If such adjustment is to offset the capital surplus, but the capital surplus remaining balance from the investment under the equity method is insufficient, the deficit is debited as retained earnings. However, if the Company fails to subscribe according to the shareholding percentage such that its ownership equity on an associate is reduced, the amount related to the associate previously recognized in the other comprehensive income or loss is then reclassified according to the reduced ratio. The basis of the accounting procedure shall be identical to the basis the associate is required to comply with when directly disposing of relevant assets or liabilities.

(IX) Investment in subsidiaries

During the preparation of the parent company only financial statements, the Company uses the equity method for valuation of investees with controlling power. Under the equity method, profit or loss of the current period and other comprehensive income in the parent company only financial statements shall be equal to the amount attributable to owners of the parent in the consolidated financial statements. Owners’ equity in the parent company only financial statements shall be equal to the equity attributable to owners of the parent in the consolidated financial statement.

Changes to the ownership interest of the subsidiaries made by the Company that have not caused the loss of the control thereof are handled as interest transactions with the owner.

(X) Investment Property

Investment property refers to property held for the purpose of earning rents or capital value increase or both, and excluding property provided for normal business sales, for production, for product or labor or for administrative management purposes. Investment property is measured at cost initially, and subsequently measured at fair value. Any change thereof is recognized in profit or loss.

The profit or loss from disposition of investment property (calculated based on the difference between the net disposition amount and the carrying amount of such item) is recognized in profit or loss. If an investment property for sale was previously classified as property, plant and equipment, any relevant

“Other equity - revalued amount of property” is changed to be recognized as retained earnings.

The rental income from investment property is recognized as non-operating income under the straight-line method during the lease period, and the lease incentive offered during the lease period is recognized as part of the rental income.

(XI) Property, plant and equipment

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Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

Recognition and measurement

Items of property, plant and equipment are measured at cost (including capitalized borrowing costs) less subsequent accumulated depreciation and any subsequent accumulated impairment loss.

When the useful lifetimes of the major components of the property, plant and equipment are different, then it is handled as an independent item (main component) of the property, plant and equipment.

The gain or loss arising from the disposal of property, plant and equipment is recognized in profit or loss.

Subsequent cost

Subsequent expenditure is capitalized only when it is possible that the future economic benefits associated with the expenditure will flow to the Company.

Depreciation

The depreciation of an asset is determined after deducting its residual amount from its original cost and is depreciated using the straight-line method over its useful life in order to be recognized in profit or loss.

Land is not depreciated.

The estimated useful lives for current and comparative years are as follows:

(1) Houses and buildings 7~25 years
(2) Machinery equipment 3~7 years
(3) Other equipment 2~5 years
(4) Leasehold improvements 1~10 years

The key components of houses and buildings mainly include the facility main building, electric power equipment and construction, and cleanroom systems, etc., and depreciation is calculated based on their useful lifetimes of 25 years, 10 years and 10 years respectively.

Depreciation methods, useful lives and residual values are reviewed by the Company at each reporting date, and are adjusted appropriately when it is determined necessary.

Reclassification to investment property

When the purpose of a property for own use is changed to an investment property, such property is reclassified to investment property based on the fair value at the time of change of its purpose. The profit generated is then remeasured, and it is recognized in profit or loss within the scope of the accumulated impairment previously recognized for such property. The remaining difference is then recognized under other comprehensive income, and it is cumulated to "Other equity - revalued amount of property". Any loss is recognized in profit or loss; however, if the reduced value is still within the revalued amount of the property, then the reduced amount is recognized in other comprehensive income, and the revalued amount in the equity is offset and reduced.

(XII) Leases

At the inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

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Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

1. Lessee

The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. In addition, the Company periodically assesses whether the right-of-use asset has any impairment and handles any impairment loss already incurred, and under the condition where remeasurement on the lease liability occurs, the right-of-use-asset is adjusted.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date. It is discounted using the interest rate implicit in the lease or, if the rate cannot be readily determined, the Company's incremental borrowing rate is used. Generally, the Company uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprise the following:

Fixed payments, including in-substance fixed payments;
Variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
Amounts expected to be payable under a residual value guarantee; and
The exercise price under a purchase option or lease termination that the Group is reasonably certain to exercise, or penalties required for a lease.

The lease liability is measured at amortized cost using the effective interest method, and it is remeasured under the following conditions:

When there is a change in future lease payments arising from a change in index or rate;
When there is a change in the estimate of the amount expected to be payable under a residual value guarantee;
There is a change in the evaluation of the option to purchase the underlying asset;
If there is a change in the assessment of whether to exercise an extension or termination option, and a change to the assessment of the lease period;
When there is change to the lease subject matter, scope or other terms.

When the lease liability is remeasured due to the aforementioned change in future lease payments arising from a change in an index or rate, change in residual value guarantee and change in purchase, extension or termination option assessment, a corresponding adjustment is made to the carrying amount of the right-of-use asset, and it is recorded in profit or loss when the carrying amount of the right-of-use asset has been reduced to zero.

For change of lease in the reduction of the scope of lease, the carrying amount of the right-of-use asset is reduced in order to reflect the termination of all or a portion of the lease, and the amount of difference with the lease liability is remeasured for

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Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

recognition in profit or loss.

The Company presents right-of-use assets and lease liability that do not meet the definition of investment property in single items in the balance sheet respectively.

For short-term leases of other equipment and low-value underlying asset leases, the Company chooses not to recognize them as right-of-use assets or lease liabilities, but recognizes relevant lease payments associated with these leases as expenses on a straight-line basis over the lease term.

Lessor

For transactions with the Company as the lessor, the lease contracts are classified on the lease establishment date depending on whether nearly all of the risks and remunerations associated with the underlying asset ownership are transferred. If true, it is classified as financial lease; if false, it is classified as operating lease. During evaluation, the Company considers relevant specific indicators including whether the lease period covers the key components of the underlying asset economic lifetime.

If the Company is a sub-lessor, the primary lease and sub-lease transactions are dealt with separately, and the right-of-use assets generated from the primary lease are used to evaluate the classification of the sub-lease transactions. If the primary lease refers to a short-term lease and is exempted for recognition, then the sub-lease transaction shall be classified as operating lease.

If the agreement includes lease and non-lease components, the Company uses the consideration for an amortization contract specified in IFRS 15.

For operating lease, the Company adopts the straight-line basis to recognize the lease payment collected during the lease period as the rental income.

(XIII) Intangible assets

Recognition and measurement

Research and development activity related expenses are recognized in profit or loss when such expenses are incurred.

A development expense is capitalized only when it can be measured reliably, product or process technology or commercial feasibility has been reached, future economic benefit is likely to flow into the Company, and the Company has the intention and sufficient resources to complete such development and has further used or sold the asset. Other development expenses are recognized in profit or loss when such expenses are incurred. After the initial recognition, the capitalized development expense is measured based on the amount obtained from the cost less the accumulated amortization and cumulative impairment.

Other intangible assets with limited useful life acquired by the Company, including computer software and other intangible assets, etc., are measured by the cost less the cumulative amortization and cumulative impairment.

Subsequent expenditure

Subsequent expenditure is only capitalized when future economic benefits can be added to relevant specific assets. All other expenses are recognized in profit or loss when such expenses are incurred, including internally developed goodwill and brands.

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Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

3. Amortization

Amortization is calculated according to the asset cost less the estimated residual value, and starting from the available-for-use state of the intangible asset, the straight-line approach is used to recognize it in profit or loss for its estimated useful life.

The estimated useful lives for current and comparative years are as follows:

(1) Computer software 1~3 years
(2) Other intangible assets 7~10 years

Amortization methods, useful lives and residual values of the intangible assets are reviewed by the Company at each reporting date, and are adjusted appropriately when it is determined necessary.

(XIV) Impairment of Non-financial Assets

The Company assesses whether there is any indication that there might be an impairment in the carrying amount of non-financial assets (excluding inventory, deferred income tax assets and investment property measured at fair value) on each reporting day. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. Goodwill is tested for impairment annually.

For the purpose of testing the impairment, a group of assets of most of the cash inflow that is independent from the cash inflow of other individual assets or asset groups is used as the smallest identifiable asset group. The goodwill obtained from the merger of enterprises is amortized to each cash generating unit or cash generating unit Group that is expected to gain benefits from the synergy of the merger.

The recoverable amount for an individual asset or a cash generating unit is the higher of its fair value less costs of disposal or its value in use. During the assessment of the use value, the future cash flow estimation uses a pre-tax discount rate for calculating the current value, and the discount rate shall reflect the current market assessment on the currency time value and the unit specific risk arising from the asset or cash.

If the recoverable amount of an asset is less than its carrying amount, it is recognized as an impairment loss.

An impairment loss shall be recognized immediately in profit or loss, and the carrying amount of each of the assets is reduced proportionally to the carrying amount of other assets in the unit.

Non-financial assets are reversed only in the range not exceeding the carrying amount (less depreciation or amortization) of the asset that has not been determined during the recognition of the impairment loss in the previous year.

Goodwill Impairment loss is not reversed. Non-financial assets other than good will are reversed only in the range not exceeding the carrying amount (less depreciation or amortization) of the asset that has not been determined during the recognition of the impairment loss in the previous year.

(XV) Acquisition of a group of assets not related to a business.

When the Company acquires a group of assets that does not constitute a business, it identifies and recognizes the individual identifiable assets and liabilities acquired, and allocates the transaction price to those individual identifiable assets and liabilities. During amortization, the total transaction price is amortized to each identifiable asset and

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Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

liability based on their relative fair values as of the purchase date, which establishes the individual transaction price. Next, the difference between the initial measurement amount and the individual transaction price shall be accounted for in accordance with the applicable standards.

No goodwill is generated from such transactions.

(XVI) Provision for liability

Provisions for liabilities are recognized when the Company has an obligation as a result of past events, and the Company is likely to be subject to an outflow of economic resources that will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions for liabilities are 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 liability. The amortization of the discount is recognized as interest expense.

Restore

According to applicable contracts, when the Company bears the obligation to disassemble, remove or restore the site location for parts of the property, plant and equipment, the present value of cost expected to be incurred due to the disassembly, removal or restoration of the site location is recognized as provision for liabilities.

Sales return and allowance

Possible goods return and allowance are estimated according to the empirical value, and they are recognized as the deduction of the sales revenue at the year when the goods are sold. For current obligations arising from past events, the amount and time of occurrence are uncertain; therefore, it is classified as provision for liabilities.

Carbon fee

Carbon fee levied under the Climate Change Response Act of Taiwan (ROC) and its implementing regulations is calculated based on the proportion of greenhouse gas emissions already reported as of the reporting date, relative to the annual greenhouse gas emissions, when an assessment indicates that annual emissions are likely to surpass the levy threshold. In addition, liability provision is also estimated accordingly.

(XVII) Recognition of Revenue

Revenue from Contracts with Customers

Revenue is measured based on the consideration to which the Company expects to be entitled in exchange for rendering services to its customers. Revenue is recognized in the reporting period when the Company satisfies a performance obligation by transferring its control of the product or service to the customer. The main revenue items of the Company are explained as follows:

(1) Sales of goods

The Company manufactures panel display screen materials and glass products, and also sells such products. The Company recognizes revenue when the control of products is transferred. Product control transfer refers to when the product has been delivered to the customer, and the customer has the full discretion on the sales channel and price of the product, and the unfulfilled obligations of the customer for accepting the product have not been affected.

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Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

Delivery refers to a product being transferred to a specific location, and its obsolete and loss risks have been transferred to the customer, and the customer has accepted the product according to the sales contract, the acceptance clauses have become invalid, or the Company has objective evidence to consider that all acceptance criteria have been satisfied.

The company recognizes the accounts receivable upon the delivery of goods since the Company has the right to collect consideration unconditionally at such time point.

(2) Financial component

The Company expects that the time period between the time in the customer contract of transferring products or services to the customer and the time when the customer makes payment for such products or services is less than one year; therefore, the Company has not adjusted the currency time value of the transaction price.

(XVIII) Employee benefits

Defined contribution plans

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

Defined benefit plan

The Company's net obligation in respect to defined benefit pension plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods, and such benefit is discounted to determined its present value. In addition, the fair value of any plan assets is deducted.

The defined benefit obligation is calculated annually by a qualified actuary using the projected unit credit method. When the calculation results in a benefit to the Company, the recognized asset is limited to the total of the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. In order to calculate the present value of economic benefits, consideration is given to any minimum funding requirements.

Remeasurements of the net defined benefit liability, which comprise actuarial gains or losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (excluding interest) are recognized immediately in other comprehensive income and accumulated in the retained earnings. The net interest expense (income) of the net defined benefit liability (asset) determined by the Company is based on the net defined benefit liability (asset) and discount rate determined at the beginning of the reporting period of the use year. The net interest expense and other expenses of the defined benefit plan is recognized in profit or loss.

When the plan is corrected or reduced, relevant benefit changes arising from the previous service cost or reduced profit or loss are immediately recognized in profit or loss. When the Company is subject to settlement, the settlement profit or loss of the defined benefit plan is recognized.

Short-term employee benefits

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Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

Obligations for short-term employee benefits are recognized as expenses in the period when services are provided. When the Company is required to bear current statutory or presumed payment obligation due to the service previously provided by an employee, and when such obligation can be estimated reliably, such amount is recognized as liabilities.

Termination benefits

Separation benefits refer to when the Company cannot cancel the offer of such benefits or recognizes relevant restructuring costs, and whichever occurs first is recognized as expense. When the separation benefits are not expected to be fully repaid within 12 months after the report date, they are discounted.

(XIX) Share-based compensation

Equity-settled share-based payment agreements are recognized as expenses based on the fair value of the provision date and within the receipt period of such compensation, and the relative equity is increased. The expense recognized is adjusted based on the expected compensation amount satisfying the service conditions and the non-market vesting conditions. In addition, the amount finally recognized uses the compensation amount complying with the service conditions and the non-market vesting conditions on the vesting date as the basis for measurement.

The non-vesting conditions of share-based compensation have been reflected in the measurement of the share-based payments and payment date fair value, and it is not required to make verified adjustments for the difference between the expected result and actual result.

The fair value amount of cash-settled share appreciation rights offered to employees is recognized as expense and the relative liabilities are increased during the period when the employees satisfy the condition for obtaining the compensation. The liabilities are remeasured according to the fair value of the share appreciation rights on each report date and settlement date, and any change thereof is recognized in profit or loss.

The payment date for the share-based payments of the Company refers to the subscription price approved by the board of directors and the date when employees are permitted to subscribe the shares.

(XX) Income Taxes

Income tax includes both current tax and deferred tax. Except for expenses related to business combinations or recognized directly in equity or other comprehensive income, all current and deferred taxes shall be recognized in profit or loss.

The Company determines that interest or penalties related to income tax (including uncertain tax positions) do not meet the definition of income tax; therefore, the accounting handling under IAS 37 is adopted.

The Company considers supplementary tax required for payment under the global minimum tax – Pillar Two Standards to be within the scope of IAS 12 “Income Taxes” and has applied the temporary mandatory exemption for deferred income tax accounting related to supplementary taxes. The actual supplementary tax incurred is recognized as current income tax.

Current taxes comprise the expected tax payable or receivable on the taxable income (or loss) for the year and any adjustment to tax payable or receivable in respect of previous

~25~

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

years. The amount is measured according to the statutory rate or the substantive legislative rate on the reporting date in order to present the most optimal estimation value of the expected payment or receipt amount.

Deferred taxes arise due to temporary differences between the carrying amounts of assets and liabilities at reporting date and their respective tax bases. Temporary differences resulting from the following circumstances shall not be recognized as deferred taxes:

Assets or liabilities originally recognized in a transaction that is not a business combination, and at the time of the transaction (i) does not affect accounting profits and taxable income (loss) and (ii) does not generate equivalent taxable and deductible temporary differences;
Temporary differences arising from equity investments in subsidiaries, associates and joint ventures, where the Company is able to control the reversal of the temporary difference and where there is a high probability that such temporary differences will not reverse in the future; and
Taxable temporary difference arising from initial recognition of goodwill.

A deferred tax asset shall be recognized for unused tax losses, unused tax credits, and deductible temporary differences to the extent that it is possible that future taxable profit will be available against which it can be utilized. In addition, such deferred tax assets shall also be reviewed at each reporting date, and are reduced to the extent that it is no longer probable that the related tax benefit will be realized; or the originally reduced amount is reversed within the scope that it is likely to become sufficient taxable income.

Deferred tax shall be measured at the tax rates that are expected to apply to the period when expected temporary difference is reversed, based on tax rates that have been enacted or substantively enacted by the end of the reporting period.

The deferred tax assets and liabilities of the Company are only offset against each other when the following criteria are met:

The Group has the legal right to settle tax assets and liabilities on a net basis; and
The taxing of deferred tax assets and liabilities is related to one of the following taxing authorities of one identical taxation agent for the income tax:

(1) Levied by the same taxing authority; or

(2) Levied by different taxing authorities, but where each such authority intends to settle tax assets and liabilities of significant amounts on a net basis every year of the period of expected asset realization or debt liquidation, or where the timing of asset realization and debt liquidation matches with each other.

(XXI) Earnings per Share

The Company discloses the Company's basic and diluted earnings per share attributable to ordinary equity holders of the Company. The calculation of the basic earnings per share of the Company is based on the profit attributable to the ordinary shareholders of the Company, divided by the weighted average number of ordinary shares outstanding. The calculation of the diluted earnings per share is based on the profit attributable to the ordinary shareholders of the Company, divided by the weighted average number of ordinary shares outstanding after the adjustment of the effects of all dilutive potential ordinary shares.

(XXII) Segment Information

The Company has disclosed the information of segments in the consolidated financial

~26~

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

statements; therefore, information of segments is not disclosed in the unconsolidated financial statements.

The Company is composed of operating segments engaged in operating activities that may generate revenue and incur expenses (including income and expenses related to transactions among other components in the Group). The operating results of all operating segments are reviewed by the main operation decision maker of the Company in order to make decision on the allocation of resource for the segments and to evaluate their performance. Each operating segment is equipped with independent financial information.

V. Critical Accounting Judgments and Key Sources of Estimation Uncertainty

When the parent company only financial statements are prepared by the management, it is necessary to make judgments and estimates about the future (including climate-related risks and opportunities), which will affect the adoption of accounting policies and the amount of assets, liabilities, revenues and expenses reported. Actual results may differ from these estimates.

The management of the Company continues to review the estimates and basic assumptions, which are consistent with the risk management and climate-related commitments of the Company. Changes in the estimated value are deferred and recognized in the period of change and the affected future period.

Information of critical judgments in applying accounting policies that have significant effect on the recognized amount indicated in these parent company only financial statements is as follows:

(I) Judgment on whether significant influence exists over the investee company

The Company holds 20% of the voting shares of Slamko Limited, but based on the available facts, The Group does not participate in the company's operations or financial decision-making, nor does it have representation on the Board of Directors or other material influence. Therefore, the Company has determined that it does not have significant influence over the company, and the related investments are not accounted for using the equity method.

The following assumptions and uncertainties have major risks that may lead to material adjustments in assets and liability carrying amounts in the next fiscal year, and relevant information is as follows:

(II) Loss allowance for accounts receivable

The loss allowance for accounts receivable of the Company is estimated based on the assumption of the risk of breach and the expected loss rate. The Company considers the historical experience, current market condition and prospective estimation on each reporting date in order to determine the assumption required to be adopted and selection of inputs during the calculation of impairment loss. Please refer to Note 6(4) for detailed explanation on relevant assumption and inputs.

(III) Fair value of financial assets through profit or loss or other comprehensive income

The Company holds equity of SAFE and non-publicly listed companies, which are valued using the binomial tree model, the comparable company approach, and the discounted cash flow method, respectively.

(IV) Investment property fair value

The investment properties of the Company are subsequently measured using both the

~27~

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

land development analysis approach and the discounted cash flow analysis under the income approach.

The inputs used by the fair value evaluation techniques for the aforementioned financial assets and investment properties are Level 3.

The accounting policies and disclosures of the Company include the use of fair value to measure its financial, non-financial assets and liabilities. The Company establishes a relevant internal control system for the fair value measurement, and the Financial Department is responsible for verifying all material fair value measurements (including Level 3 fair value) and periodically verifies the material inputs and adjustment that cannot be observed. If the inputs used in the measurement of fair value use external third party information, the Financial Department evaluates the evidence that supports the inputs provided by the third party in order to determine that the valuation and its fair value level classification comply with the requirements of the IFRSs. For the property of the Company, it is assumed that the Company has retained an external appraiser to perform appraisal according to the valuation method and parameters announced by the FSC.

When the Company measures its assets and liabilities, it uses the observable inputs in the market as much as possible. The levels of fair value are classified in the following different levels according to the inputs used in the valuation technique:

Level 1: Public quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Input parameters other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: Input parameters of assets or liabilities not based on the observable market information (non-observable parameters).

In case of any transfer event or condition of fair value among levels, the Company recognizes such transfer at the report date. Please refer to Note 6(8) Investment Property and Note 6(22) Financial Instruments for relevant information regarding the assumptions used in measuring fair value.

VI. Description of Significant Accounts

(I) Cash and cash equivalents

	2025.12.31	2024.12.31
Cash on hand and petty cash	$ 520	812
Demand deposits	336,334	390,804
Checking accounts	40	40
Time deposits	230,823	452,785
	$ 567,717	844,441

The cash and cash equivalents above are not pledged as collateral. Pledged time deposits have been reclassified as other financial assets. Please see Note 8 for details.
The Company's exposure to interest rate risk and the sensitivity analysis on the financial assets and liabilities of the Company are disclosed in Note 6(22).

~28~

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

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

	2025.12.31	2024.12.31
Financial assets designated at fair value through profit or loss:
Current:
Stocks listed on domestic markets	$ -	3,963
Beneficiary certificates	-	391
Subtotal	-	4,354
Non-current:
Foreign unlisted stocks		24,133
Simple Agreement for Future Equity (SAFE)	200,784	75,827
Subtotal	200,784	99,960
Total	$ 200,784	104,314

Please refer to Note 6(21) for the amount of remeasurement recognized in profit or loss at fair value.
None of the aforementioned financial assets has been pledged as collateral.

(III) Financial assets measured at fair value through other comprehensive income

	2025.12.31	2024.12.31
Equity instruments measured at fair value through other comprehensive income- non current:
Stocks of foreign unlisted company	$ 27,711	-

The Company held equity instrument investments, not held for trading purposes, which have been designated as measured at fair value through other comprehensive income.
The Company holds 20% of the voting shares in Slamko Limited, which is primarily engaged in the agency of electronic components. The management of the Company clearly demonstrates that it does not have significant influence over Slamko Limited, as 71% of the remaining 80% of its common shares are controlled by a single shareholder who also manages the company's routine operations and participates in its policy establishment.
The Company designated equity instrument investments measured at fair value through other comprehensive income, and no dividend income was recognized for 2025 and 2024.
No investments were disposed by the Company for the year ended 2025 and 2024 and there was no transfer of any cumulative gain or loss within equity relating to these investments.
None of the aforementioned financial assets has been pledged as collateral.

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Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

(IV) Notes and accounts receivable (including related party)

	2025.12.31	2024.12.31
Notes receivable	$ 8,109	18,428
Accounts receivable	431,462	367,321
Accounts receivable - related party	25,418	3,829
Less: Allowance for loss	(42,396)	(38,928)
	$ 422,593	350,650

The Company applies the simplified approach to provide for its expected credit losses, i.e., the use of lifetime expected loss provision for all notes and account receivables. To measure the expected credit losses, the notes and accounts receivables have been grouped based on shared credit risk characteristics and the days past due, as well as incorporated forward looking information, including overall economic and relevant industry information. The expected credit loss analysis for notes and accounts receivables of the Company is as follows:

	2025.12.31
	Carrying amounts of notes receivable and accounts receivable	Weighted average expected credit loss rate	Estimated credit loss during existence of allowances
Not overdue	$416,423	0%~0.80%	3,313
Overdue less than 90 days	8,436	0%~30.13%	2,542
Overdue more than 91 days	40,130	0%~100%	36,541
	$416,423		42,396
	2024.12.31
	Carrying amounts of notes receivable and accounts receivable	Weighted average expected credit loss rate	Estimated credit loss during existence of allowances
Not overdue	$337,228	0%~0.56%	1,882
Overdue less than 90 days	2,359	0%~18.50%	436
Overdue more than 91 days	49,992	0%~100%	36,610
	$389,579		38,928

The movement in the allowance for impairment with respect to notes and accounts receivable of the Company is as follows:

	2025	2024
Beginning retained earnings	$ 38,928	202,982
Impairment loss recognized	3,468	-
Amount written off due to uncollectibility this year	-	(148,302)
Impairment loss reversed	-	(15,752)
Balance at end of the period	$ 42,396	38,928

The accounts receivable of December 31, 2024 overdue for more than 90 days are mainly from important customers, which purchase optical adhesives from the Group and sell them to large-scale manufacturers which produce various liquid crystal displays in Shenzhen, China. Because of COVID-19, the operations on the upstream

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Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

and downstream parts of the supply chain have been impacted. As a consequence, the payments for goods have been temporarily suspended. For the purpose of protecting its own rights and interests, the Company has filed civil lawsuits with Xiamen Intermediate People's Court, China, and appropriated allowance for losses. Bankruptcy payment was received after 2024, and the uncollectible amount was written off.

On December 31, 2025 and 2024, the accounts receivable of the Company were not pledged as collateral.

(V) Inventories

	2025.12.31	2024.12.31
Raw materials and supplies	$ 31,935	42,567
Work in progress	27,926	8,176
Finished goods	29,944	110,735
Merchandise inventory	1,187	12,441
	$ 90,992	173,919

The details of the inventory related expenses of the Company recognized for 2025 and 2024 are as follows:

	2025	2024
Inventory sale recognition	$ 2,034,680	1,808,931
Loss for write-down (reversal gain) of inventories	(3,443)	1,804
Idle production capacity cost	213,013	151,687
	$ 2,244,250	1,962,422

On December 31, 2025 and 2024, the inventories of the Company were not pledged as collateral.

(VI) Investment Accounted for Using Equity Method

The investments of the Company accounted for using the equity method at the report date are as follows:

	2025.12.31	2024.12.31
Subsidiaries	$ 481,260	186,839

Subsidiaries

Please refer to the 2025 consolidated financial statements for details.

Guarantee

On December 31, 2025 and 2024, the investments of the Company accounted for using the equity method were not pledged as collateral.

(VII) Property, plant and equipment

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

Details of the cost, depreciation and impairment of property, plant and equipment of the Company for 2025 and 2024 are as follows:

	Land	Houses and buildings	Machinery and equipment	Other equipment	Leasehold improvement	Uncompleted projects and equipment to be inspected	Total
Cost or deemed cost:
Balance on January 1, 2025	$ 319,648	1,392,206	256,835	37,458	16,968	14,694	2,037,809
Additions	-	100	1,891	4,149		146,504	152,644
Disposals and retirements	-	(60,664)	(18,913)	(8,989)	(450)	(6,097)	(95,113)
Reclassifications	-	36,257	12,880	11,956		(36,257)	24,836
Balance on December 31, 2025	$ 319,648	1,367,899	252,693	44,574	16,518	118,844	2,120,176
Balance on January 1, 2024	$ 319,648	1,375,883	258,357	37,427	16,518	43,324	2,051,157
Additions	-	8,208	21,827	839	450	8,839	40,163
Disposals and retirements	-	(29,354)	(23,349)	(808)	-	-	(53,511)
Reclassifications	-	37,469		-	-	(37,469)	-
Balance on December 31, 2024	$ 319,648	1,392,206	256,835	37,458	16,968	14,694	2,037,809
Depreciation and impairment loss:
Balance on January 1, 2025	$ -	762,546	73,779	17,766	16,733	-	870,824
Depreciation in the current year	-	67,561	31,431	7,263	-	-	106,255
Disposals and retirements	-	(60,664)	(12,827)	(8,521)	(215)	-	(82,227)
Balance on December 31, 2025	$ -	769,443	92,383	16,508	16,518	-	894,852
Balance on January 1, 2024	$ -	723,260	67,611	9,546	16,518	-	816,935
Depreciation in the current year	-	68,640	29,517	9,028	215	-	107,400
Disposals and retirements	-	(29,354)	(23,349)	(808)	-	-	(53,511)
Balance on December 31, 2024	$ -	762,546	73,779	17,766	16,733	-	870,824
Carrying value:
December 31, 2025	$ 319,648	598,456	160,310	28,066	-	118,844	1,225,324
January 1, 2024	$ 319,648	652,623	190,746	27,881	-	43,324	1,234,222
December 31, 2024	$ 319,648	629,660	183,056	19,692	235	14,694	1,166,985

On December 31, 2025 and 2024, they were provided to the financial institution, in part, as mortgage guarantee. Please refer to Note 8 for details.

(VIII) Investment Property

	Proprietary assets		Total
	Land	Houses and buildings
Cost or deemed cost:
Balance on January 1, 2025	$ 518,388	629,948	1,148,336
Net gain (loss) arising from fair value adjustments	55,185	(19,673)	35,512
Purchase addition	142,843	-	142,843

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

	Proprietary assets
	Land	Houses and buildings	Total
Subsequent expenditures are recognized as additions to the carrying amount of assets	1,446	-	1,446
Balance on December 31, 2025	$ 717,862	610,275	1,328,137
Opening balance on January 1, 2024	$ 469,576	677,680	1,147,256
Net gain (loss) arising from fair value adjustments	48,812	(47,732)	1,080
Balance on December 31, 2024	$ 518,388	629,948	1,148,336

On March 12, 2025, the Company entered into a real estate purchase agreement with an individual to jointly develop the land. The total contract price was NT$168,050,000. The counterparty is an unrelated party. The Company and the individual each borne NT$142,843,000 and NT$25,207,000, respectively. As of December 31, 2025, the transaction price and related agency fees had been paid in full, and the land transfer was completed in September of the same year.
The inputs used in the fair value valuation technique for the subsequent measurement of investment property of the Company belongs to Level 3. Please refer to the aforementioned statement of change for details of the adjustment of carrying amounts at the beginning and end of the period for Level 3. Besides, there were no transfers to or from Level 3 of the fair value hierarchy in the current period.
For the subsequent measurement of investment property of the Company adopting the discounted cash flow analysis method under income approach for valuation, relevant important contract terms and valuation information is as follows:

(1) December 31, 2025

Subject property	Land and buildings of three factories in
Local rent status	NT$ 783~NT$ 800/ping/month
Rent status of similar property	NT$ 790/ping/month
Current condition	Available for rent
Past income amount	NT$ 758/ping/month
Income capitalization rate	3.140%
Discount rate	3.170%
Outsourced or own appraisal	Outsourced appraisal
Appraisal firm	Hua Shin Appraisers Firm
Name of appraiser	Chen-Hsu Chiang, Chih-Ming Cheng
Date of appraisal	2025/9/30
Outsourced appraisal fair value	NT$ 1,182,017 thousand

(2) December 31, 2024

The tenant moved out in November 2024 and the property was still available for rent on December 31, 2024, with no new lease signed.

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

Subject property	Land and buildings of three factories in
Important contract terms	1. Rent: NT$ 949/ping/month
	2. Lease period: 136 months
	3. Total taxes annually borne by the lessor in the future: NT$ 2,771 thousand
Local rent status	NT$ 783~NT$ 800/ping/month
Rent status of similar property	NT$ 790/ping/month
Current condition	Available for rent
Past income amount	NT$ 895/ping/month
Income capitalization rate	5.416%
Discount rate	4.120%
Outsourced or own appraisal	Outsourced appraisal
Appraisal firm	Hua Shin Appraisers Firm
Name of appraiser	Chen-Hsu Chiang, Chih-Ming Cheng
Date of appraisal	2024/9/30
Outsourced appraisal fair value	NT$ 1,148,336 thousand

Pursuant to Article 34 of the Regulations on Real Estate Appraisal, the procedures of income appraisal are estimating effective gross income, estimating total expenses, calculating net operating income, determining the capitalization rate or discount rate, and calculating the income value. The estimation of the aforementioned parameters refers to relevant data of the subject property for appraisal and comparable property with identical or similar characteristics in the most recent three years. Adjustment is made through comprehensive determination of the continuity, stability and growth status in order to confirm the availability and reasonableness of the data. The change status of the income (cash inflow) and expense (cash outflow) of each period is determined based on the past income and expense (cash flow) of the subject property, comparable property income and expense (cash flow) in the same industry or substituting comparable property, idle or loss ratio and present or possible planned income and expense in the future. The objective net income after the deduction of total expense from the total revenue is based on the objective net income of the subject property under the most effective use, and the incomes of similar properties in the neighborhood under the most effective use conditions are used as a reference for the estimation.

The determination of the discount rate adopts the risk premium method, and it considers the factors of the time deposit interest rate of the bank, government bond interest rate, risk of property investment, currency change status and change trend of property price, etc., in order to determine the likely rate of return on the most common investment, thereby adjusting the differences of individual characteristics between the investment and the subject property. The present discount rate is determined based on the floating rate on the two-year time savings small deposits offered by Chunghwa Post Co. Ltd. plus 0.75%, namely 2.470%, along with the consideration of the factors of the difficulty in terms of the liquidity, risk,

~34~

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

appreciation, and management of the subject property income status, plus the risk premium of 0.70% and 1.65% on December 31, 2025 and 2024, such that the discount rates of the subject property are determined to be 3.170% and 4.120% respectively. Regarding the estimation of the capitalization rate, the net income of comparable property is divided by the price, followed by the weighted average method to obtain the capitalization rate as 3.140% and 5.416% respectively.

The aforementioned fair value valuation technique and material unobservable inputs are explained in the following table:

Fair value valuation technique	Material unobservable inputs	Relationships between material unobservable inputs and fair value measurements
The discounted cash flow analysis (DCF) under income approach is used as the evaluation method, and the contract rent price provided by the Company during the lease period is used for evaluation. After the expiration of the lease period, the market rent price is used for evaluation. Discounted cash flow analysis under income approach: it refers to the net income and value at the end of the period during the future discounted cash flow of the subject property analysis period, and after discount at appropriate discount rate, the sum of the estimated subject property values are added. Such method is applicable to the property investment evaluation for the purpose of investment.	The risk-adjusted discount rate for December 31, 2025 and December 31, 2024 were 3.170% and 4.120%, respectively.	The estimated fair value will be increased (or decreased) if:
• Discount rate after risk adjustment decreases (increases).

The following land within the Company's investment properties could not be valued using the income method due to its undeveloped status, and was therefore valued in accordance with Article 9 of the Regulations Governing the Preparation of Financial Reports by Securities Issuers, applying the land development analysis method. Relevant valuation information is provided below:

(1) December 31, 2025

Subject property	Lot No. 311 and 312, Datong Section, Yancheng District, Kaohsiung City
Estimated total sales amount	NT$ 467,887 thousand
Profit margin	17.00%
Comprehensive interest rate on capital	4.754%

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

Subject property	Lot No. 311 and 312, Datong Section, Yancheng District, Kaohsiung City
Outsourced or own appraisal	Outsourced appraisal
Appraisal firm	Hua Shin Appraisers Firm
Name of appraiser	Chen-Hsu Chiang
Date of appraisal	December 31, 2025
Outsourced appraisal fair value	NT$ 146,120 thousand

The key points of the aforementioned land development plans include defining the scope of land development, establishing projected timelines, investigating development costs and associated expenses, gathering market data, conducting site surveys, and assessing the current environmental conditions. After assessing various economic indicators, population and employment figures, interest rates, and broader economic factors like market supply and demand, no significant anomalies were detected. Based on such assessment, an estimated total sales amount post-development or construction is calculated, in order to determine the pre-development land value.

The aforementioned fair value valuation technique and material unobservable inputs are explained in the following table:

Fair value valuation technique	Material unobservable inputs	Relationships between material unobservable inputs and fair value measurements
Management assesses and measures the impact of estimates used in different land development analysis evaluation techniques. These estimates are consistent with those used by other market participants, following the Company’s evaluation.	• Profit margin (17.00% as of 2025.12.31).
• Comprehensive interest rate on capital (4.754% as of 2025.12.31).	The estimated fair value will be increased (or decreased) if:
• Profit margin decrease (increase).
• Comprehensive interest rate on capital decrease (increase).

As of December 31, 2025 and 2024, the Company didn't offer any pledge or guarantee for the investment property. For details, please refer to Note 8.

(IX) Other financial assets (including current and non-current)

	2025.12.31	2024.12.31
Current:
Time deposit - pledged as collateral	$ 46,173	336,432
Income tax refund receivable	135	3,477
Other receivables - proceeds from stock settlement	29,355	-
Other receivables - proceeds from civil mediation settlement (Note 6(22))	11,568	-
Other receivables - others (including related parties)	4,668	203

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

	$ 91,899	340,112
Non-current:
Refundable deposits
	$ 470	4,569

Please refer to Note 7 for details regarding the disclosure of the aforementioned other receivables-related parties.
Please refer to Note 8 for the other financial assets pledged as collateral.

(X) Other current assets and non-current assets

	2025.12.31	2024.12.31
Other current assets:
Prepaid expenses	$ 7,652	18,313
Advance payment	3,468	18,935
Overpaid sales tax	5,384	3,016
	$ 16,504	40,264
Other non-current assets:
Prepayments for equipment	$ 221,294	94,298

(XI) Short-term borrowings

Statement of short-term borrowings of the Company is as follows:

	2025.12.31	2024.12.31
Unsecured bank loans	$ 68,000	367,748
Secured bank loans	100,000	333,000
	$ 168,000	700,748
Unused amount	$ 300,000	-
Interest rate interval	2.59% ~2.70%	2.21% ~2.968%

For details of some assets pledged and mortgaged by the Company as guarantee for short-term loans from banks, please refer to Note 8.

(XII) Long-term borrowings

Statement, criteria and terms of long-term borrowings of the Company are as follows:

	2025.12.31	2024.12.31
Unsecured bank loans	$ 169,704	43,250
Secured bank loans	1,305,629	1,297,500
Less: Portion with maturity due in one year	(224,017)	(184,491)
Total	$ 1,251,316	1,156,259
Unused amount	$ -	200,000
Interest rate interval	2.22% ~2.72%	2.22% ~2.59%

For the Company's assets pledged as collateral, in part, please refer to Note 8.

~37~

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

(XIII) Operating lease

For the lease on the investment property and a portion of the facilities of the Company, since nearly all of the risks and remunerations associated with the ownership of the underlying asset are not transferred, the lease contracts are classified as operating lease. Please refer to Note 6(8) Investment Property for details.

The original lessee terminated the lease in November 2024. The Company found a new tenant in January 2025. However, as the Company had other plans for the leased property, it terminated the lease agreement early on August 5 of the same year. Presently, no new tenant has moved into the investment property.

2025 and 2024 rental incomes from investment property were NT$4,438 thousand and NT$54,000 thousand.

(XIV) Employee benefits

defined benefit plan

The present value of the Company's defined benefit obligations and the fair value of the plan assets are adjusted as follows:

	2025.12.31	2024.12.31
Present value of a defined benefit obligation	$ 709	637
Fair value of plan assets	(21)	(6)
Net defined benefit liabilities	$ 688	631

Breakdown of the Company's employee benefit liabilities is as follows:

	2025.12.31	2024.12.31
Short-term leave with pay liabilities	$ 7,828	8,457

The Company established the pension fund account for the defined benefit plan in the Bank of Taiwan. According to the Labor Standards Act, the plan provides benefits based on an employee's length of service and average monthly salary for the six-month period prior to retirement.

(1) Composition of plan assets

The Company allocates pension funds in accordance with the "Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund", and such funds are managed by the Bureau of Labor Funds, Ministry of Labor (referred to as "Bureau of Labor Funds"). Minimum annual distribution of the funds by the bureau shall be no less than the earnings attainable from the two-year time deposits with the interest rates offered by local banks.

Up to the reporting date, the labor pension reserve account of the Company at Bank of Taiwan amounted to a balance of NT$ 21 thousand. For information on labor pension fund asset management, including fund yield rates and asset allocation, please refer to the information published on the website of the Labor Pension Fund Supervisory Committee under the Executive Yuan's Ministry of Labor.

(2) Movements in present value of defined benefit plan obligation

The movement in the present value of the Company's defined benefit obligation for 2025 and 2024 is as follows:

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

	2025	2024
Defined benefit obligation as of January 1	$ 637	-
Current service costs and interest	76	6
Remeasurements of the net defined benefit liability (asset)
- Actuarial gains and losses arising from changes in demographic assumptions	31	-
- Equity arising from changes in financial assumptions	39	-
- Actuarial gains and losses from experience adjustments	(74)	-
Past service cost	-	631
Defined benefit obligation as of December 31	$ 709	637

(3) Changes in the fair value of plan assets

Changes in the fair value of the Company's defined benefit plan assets for 2025 are as follows:

	2025	2024
Fair value of the plan assets as of January 1	$ 6	-
Contribution made for the plan	15	6
Fair value of the plan assets as of December 31	$ 21	6

(4) Expenses recognized in profit or loss

The expenses recognized as income by the Company for the years ended December 31, 2025 and 2024 are as follows:

	2025	2024
Current service costs	$ 76	6
Past service cost	-	631
	$ 76	637
Operating costs	$ 76	637

(5) Actuarial assumptions

The significant actuarial assumptions used by the Company to determine the present value of defined benefit obligations at the financial reporting date are as follows:

	2025.12.31	2024.12.31
Discount rate	1.50 %	1.75 %
Future salary increase rate	2.00 %	2.00 %

The Company expects to contribute NT$76 thousand to the defined benefit plan within one year following the 2025 reporting date.

The weighted average duration of the defined benefit obligation is 23 years.

~39~

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

(6) Sensitivity analysis

As of December 31, 2025 and 2024, the impact of the primary actuarial assumption adopted on the defined benefit obligation present value was as follows:

	Impact on defined benefit obligation
	Increase by 0.25%	Decrease by 0.25%
December 31, 2025
Discount rate	$ (40)	42
Future salary increases	41	(39)
December 31, 2024
Discount rate	(37)	39
Future salary increases	39	(36)

The sensitivity analysis above is based on other conditions that are unchanged but only one assumption is changed. In practice, more than one assumption may change all at once. The method of analyzing sensitivity and the method of calculating net defined benefit liabilities in the balance sheet are the same.

Defined contribution plans

The Company has made monthly contributions equal to 6.00% of each employee's monthly salary to the labor pension personal account at the Bureau of the Labor Insurance in accordance with the provisions of the Labor Pension Act. Under this defined contribution plan, the Company contributes a fixed amount to the Bureau of the Labor Insurance without additional legal or constructive obligations.

The Company's pension costs under the defined contribution plan for the years 2025 and 2024 are as follows:

	2025	2024
Operating costs	$ 5,923	7,611
Selling and marketing expenses	1,110	1,155
Administrative expenses	2,671	2,389
Research and development expenses	1,898	2,000
	$ 11,602	13,155

(XV) Income Taxes

Statement of the income tax (gain) expense of the Company for the years ended December 31, 2025 and 2024 is as follows:

	2025	2024
Current tax expenses
Generated in the current period	$ -	2
Deferred income tax (gains) expenses
Origination and reversal of temporary differences	(48,403)	2,052
Income tax (gains) expenses	$ (48,403)	2,054

~40~

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

The reconciliation of the Company’s income tax (gains) expenses and loss before tax is as follows:

	2025	2024
Loss before tax	$ (653,014)	(238,705)
Income tax calculated according to the domestic tax rate of the country of the Company	(130,603)	(47,741)
Permanent differences	(9,316)	1,134
Change of unrecognized temporary differences	91,516	48,661
Income tax (gains) expenses	$ (48,403)	2,054

Deferred tax assets and liabilities

(1) Unrecognized deferred tax assets

The items not recognized as deferred tax assets by the Company are as follows:

	2025.12.31	2024.12.31
Deductible temporary differences	$ 437,686	408,839
Tax loss	964,148	1,089,270
	$ 1,401,834	1,498,109

Regarding tax losses, according to the provisions of the Income Tax Act specifying that losses of the past ten years approved by the taxation authority may be deducted from the net profit of the current year, followed by the payment of the income tax. The reason for not recognizing such items as deferred income tax assets is because the Company is not very likely to have sufficient taxable income in the future for deductible temporary difference use. Up to December 31, 2025, the deduction time-limit for tax losses of the Company not recognized as deferred income tax assets is as follows:

Year with loss	Non-deducted loss	Final year for deduction
Approved value for 2016	$ 113,975	2026
Approved value for 2017	1,862,692	2027
Approved value for 2018	337,430	2028
Approved value for 2019	346,172	2029
Approved value for 2020	254,791	2030
Approved value for 2021	245,323	2031
Approved value for 2022	464,316	2032
Approved value for 2023	189,846	2033
Declared value for 2024	347,213	2034
Estimated value for 2025	658,982	2035
	$ 4,820,740

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Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

(2) Recognized deferred tax assets and liabilities

Changes in the deferred tax assets and liabilities for 2025 and 2024 are as follows:

Deferred tax assets:

	Loss deduction
January 1, 2025	$ 12,466
Recognized in income statement	56,214
December 31, 2025	$ 68,680
January 1, 2024	$ 8,617
Recognized in income statement	3,849
December 31, 2024	$ 12,466

Deferred income tax liabilities:

	Investment Property	Others	Total
January 1, 2025	$ 61,275	2,051	63,326
Recognized as profit or loss	9,862	(2,051)	7,811
December 31, 2025	$ 71,137	-	71,137
January 1, 2024	$ 57,425	-	57,425
Recognized in income statement	3,850	2,051	5,901
December 31, 2024	$ 61,275	2,052	63,326

The profit-seeking enterprise income tax return filing of the Company has been assessed by the tax competent authority up to 2023.

(XVI) Capital and other equity

Ordinary share

As of December 31, 2025 and 2024, the Company's total authorized capital stock amounted to NT$5,000,000 thousand, at par value of NT$10 per share, for 500,000 thousand shares. The aforementioned total authorized capital stock refers to ordinary shares, and the number of shares issued is 226,234 thousand and 186,234 thousand shares, respectively. All proceeds from shares issued have been collected.

On March 7, 2025, the Board of Directors resolved to issue new shares through a private placement, offering 40,000 thousand common shares at a par value of NT$10 per share for a total of NT$400,000 thousand, a resolution which was subsequently approved by the shareholders on June 19, 2025. No subscribers have been identified as of December 31, 2025.

On December 13, 2024, the Company's Board of Directors approved a resolution to issue new shares through a cash capital increase. The proposal involves issuing 40,000 thousand common shares with a par value of NT$10 per share. This cash capital increase was approved by the FSC on March 4, 2025, and the Board of Directors authorized the Chairman to determine the issue price at NT$30, resulting in a total issue price of NT$1,200,000 thousand. In addition, May 14, 2025, was set as the record date for the capital increase, and the legal registration procedures were completed on June 11 of the same year. In addition, the Company reserved 10% of newly issued shares for employee subscription pursuant to Article 267 of the Company Act, and recognized remuneration cost of NT$11,200 thousand on the distribution date.

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Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

On March 5, 2024, the Company’s Board of Directors approved a resolution to issue new shares through a cash capital increase. The proposal involves issuing 40,000 thousand common shares with a par value of NT$10 per share. This cash capital increase was approved by the FSC on April 24, 2024 and the Board of Directors authorized the Chairman to determine the issue price at NT$19.6, resulting in a total issue price of NT$784,000 thousand. In addition, June 19, 2024, was set as the record date for the capital increase, and the legal registration procedures were completed on July 17 of the same year. In addition, the Company reserved 10% of newly issued shares for employee subscription pursuant to Article 267 of the Company Act, and recognized a remuneration cost of NT$21,600 thousand on the distribution date.

The Company's employees exercised 1,628 thousand stock options in 2024, with 585 thousand shares, 350 thousand shares, and 693 thousand shares registered for change on June 6, 2024, October 4, 2024, and November 26, 2024, respectively.

2. Capital surplus

The capital surplus balance content of the Company is as follows:

	2025.12.31	2024.12.31
Share premium	$ 802,436	408,883
Share-based Payment	8,764	15,083
Convertible corporate bonds	-	12,724
	$ 811,200	436,690

In accordance with the Company Act, after having first offset losses using capital surplus, the realized capital surplus can be used to issue new shares or cash dividends according to the original percentage of shares of shareholders. The aforementioned realized capital surplus includes share premiums from the outstanding shares issued at a price above the par value and donation gains. In accordance with the Regulations Governing the Offering and Issuance of Securities by Securities Issuers, the amount of capital surplus to increase share capital shall not exceed 10% of the paid-in capital amount.

The Company has passed the 2024 and 2023 proposals for covering losses through the resolutions of the annual shareholders’ meetings on July 19, 2025, and May 27, 2024, which covered the losses by capital surplus of NT$436,690 thousand and NT$578 thousand, respectively. Relevant information can be inquired via channels such as the MOPS.

3. Retained earnings

According to the Company’s Articles of Incorporation, the Company’s surplus distribution or loss allowance may be made after the end of each half of the fiscal year. If there is a surplus in the final accounts for each half of the fiscal year, the Company shall first pay off taxes, make up for accumulated losses, estimate and reserve employee compensation, and then set aside 10% as legal reserve. However, this provision shall not apply if the statutory surplus reserve has reached the total capital of the Company. Meanwhile, the special reserve shall be allocated or reverse according to the laws and regulations or the competent authority’s regulations. If

~43~

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

there is any surplus, the balance plus the accumulated undistributed earnings in the first half of the fiscal year shall be distributed as the shareholder dividends subject to the distribution plan proposed by the Board of Directors. If the dividends are distributed in the form of new shares, the distribution shall be subject to the resolution of a shareholders' meeting, while if they are distributed in cash, the distribution shall be subject to the resolution of the Board of Directors.

If the Company intends to distribute all or part of the dividends, bonuses, statutory surplus reserve or capital reserve in cash, the proposal shall be authorized by a board of directors meeting with over 2/3 of the entire board members attending and approval of over half of those present at the meeting and then submit the proposal to the shareholders' meeting for resolution.

The Company is currently in a growing phase, and will strive for business development and expansion in the future. The Company's surplus distribution shall be made based on its future capital expenditure budget and capital needs. However, the distribution of shareholders' dividends shall not be less than 20% of the lower value of the earnings after tax or distributable earnings of the current period. Among the dividends distributed in the current year, the cash dividends shall not be less than 50%.

(1) Legal reserves

When a company incurs no loss, it may, pursuant to a resolution to be adopted by the shareholders' meeting as required, distribute its legal reserve by issuing new shares or cash; however, it shall be limited to the portion of legal reserve exceeding 25% of the issued share capital.

(2) Special reserves

The Company subsequently measures investment properties using the fair value model as required by the FSC. For the net increase in fair value from the initial adoption of the fair value model, the Company allocates an equal amount to special surplus reserves. Furthermore, when distributing distributable earnings each year, the Company allocates special surplus reserves in the following order: For the net increase in fair value arising from the continued application of the fair value model to investment property recorded in the current year, an equal amount of special surplus reserve is appropriated from the current period's undistributed earnings. For net increase in fair value accumulated in prior periods, an equal amount of special surplus reserve as the amount appropriated from prior periods' undistributed earnings may not be distributed. Subsequently, when the accumulated net increase in fair value of investment property decreases or investment property is disposed, the reduced portion or the reversal of earnings distribution based on the disposal may be appropriated.

For the difference between the market price and book value of the parent company's shares held by the subsidiary at the end of the period, a special reserve of the same amount is appropriated based on the shareholding proportion and is not available for distribution. Where the market price subsequently recovers, any increase in value may be reversed to the special surplus reserve proportionally to the shareholding ratio.

The difference between the net decrease in other shareholders' equity for the

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

year and the special surplus reserve set aside described in the preceding paragraph are charged to current profit or loss and supplemented by prior years’ retained earnings. Amounts of other shareholders’ equity decreases accumulated in prior years are not be distributed and are supplemented by prior years’ retained earnings. Subsequently, if there is a reversal of the amount debited to "Other shareholder's equity," the earnings may be distributed from the reversal amount accordingly.

(3) Distribution of retained earnings

The Company's general shareholders' meeting resolved the 2024 deficit compensation proposal on June 19, 2025, and the 2023 deficit compensation proposal was also resolved by the general shareholders' meeting on May 27, 2024. Please visit the MOPS for relevant information.

Other equity (net after tax)

	Difference in exchange from the conversion of financial statements of overseas operating entities	Revalued amount of property	Total
Balance on January 1, 2025	$ 171,462	312,687	484,149
Share of translation difference of subsidiaries under the equity method	(11,696)	-	(11,696)
Balance on December 31, 2025	$ 159,766	312,687	472,453
Balance on January 1, 2024	$ 165,980	312,687	478,667
Share of translation difference of subsidiaries under the equity method	5,482	-	5,482
Balance on December 31, 2024	$ 171,462	312,687	484,149

(XVII) Share-based Payment

Up to December 31, 2024, the Company has made the following share-based payments:

| Type | Equity transactions
Employee stock option |
| --- | --- |
| Grant date | 2020-09-17 |
| Grant quantity (thousand/unit) | 3,000 |
| Contract period | 4 years |
| Vesting conditions | Immediate vesting |
| Actual turnover rate of current period | 0% |
| Estimated turnover rate for the future | 0% |

The Company has passed the issuance of employee stock options through the resolution of the board of directors' meeting on August 21, 2020. The present issuance of total number of new common shares is 3,000 thousand shares, and the subscription price is to be specified based on the closing price of common shares of the Company on that day. Such shares are to be issued within one year from the date when the notice of effective registration of the competent authority is served, and such shares may be issued all at once or at discreet times depending upon the actual

~45~

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

needs. The aforementioned issuance of employee stock options has been registered effectively with the Securities and Futures Bureau, FSC on September 16, 2020, and according to the resolution of the board of directors' meeting on September 17, 2020, such shares are to be issued fully and the grant date fair value is NT$10.4. Due to the cash capital increase on May 23, 2022, the fair value was adjusted as NT$10.3. Due to the capital reduction to make up for losses on August 17, 2023, the fair value was adjusted as NT$16.0. Due to the cash capital increase on June 19, 2024, the fair value was adjusted as NT$15.2.

Except that subscribers shall comply with the transfer suspension period of two years after the grant of employee stock options according to the law, the accumulated exercisable subscription rights ratio is as follows:

Stock warrants grant period	2020
Matured for two years	60%
Matured for three years	100%

Measurement parameter of fair value at grant date

The Company adopts the Black-Scholes option valuation model to estimate the fair value of the share-based payments at grant date, and the inputs for the model are as follows:

	2020
Dividend rate (Note)	-%
Expected volatility (%)	45.77%
Expected life of stock options (years)	4 years
Risk-free interest rate (%)	0.2916%

Note: According to the 2020 Employee Stock Options Issuance Regulations of the Company, the subscription price will be adjusted (anti-dilution price adjustment) along with the issuance of dividends; therefore, it is not included in the calculation.

Detailed information on the aforementioned employee share options is as follows:

	2024
	Weighted-average exercise price (NT$)	Subscription quantity (thousand shares)
Outstanding capital stock on January 1	$ 16.00	1,788
Loss quantity of current period	15.20	(160)
Exercised quantity in current period (pre-capital increase)	16.00	(735)
Exercised quantity in current period (post-capital increase)	15.20	(893)
Outstanding capital stock on December 31	$ -	-

The outstanding subscription right information of the Company on December 31, 2024, is as follows:

	2024
Execution price interval	15.2 ~ 16.00
Weighted-average remaining contractual life (years)	-

The Company did not incur any expenses arising from employee share options in

~46~

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

2025 or 2024.

On December 13, 2024, and March 5, 2025, the Board of Directors resolved to issue new shares through a cash capital increase. In addition, in accordance with Article 267 of the Company Act, 10% of the new shares was reserved for employee subscription. Remuneration costs of NT$11,200 thousand and NT$21,600 thousand were recognized in 2025 and 2024, respectively; please refer to Note 6(16).

(XVIII) Loss per share

	2025	2024
Basic loss per share
Loss attributable to common shareholders of the Company	$ (604,611)	(240,759)
Number of common shares with retroactive adjustment outstanding shares for basic loss per share	211,549	166,483
Basic loss per share (NT$)	$ (2.86)	(1.45)

For 2025 and 2024, the losses took place and there was no diluted effect. Accordingly, it is not necessary to disclose the diluted earnings per share.

(XIX) Compensation of employees and directors

On June 19, 2025, the Company amended its Articles of Incorporation by resolution of the shareholders' meeting. According to the amended Articles of Incorporation, if the Company makes a profit for the year (defined as pre-tax profit before distribution of employee and director bonuses), it shall allocate 8% of the profit for employee remuneration (with at least 50% distributed to entry-level employees) and no more than 0.1% for director remuneration. However, if the Company still has accumulated losses, profits shall be reserved for making up the accumulated losses first. The employee remuneration may be made in the form of shares or cash, and the subjects for receiving the shares or cash may include employees of the affiliated companies meeting certain specific criteria and the board of directors shall be authorized to establish said specific criteria. The preceding two paragraphs shall be executed in accordance with the resolution of the Board of Directors meeting and shall be reported to the shareholder meeting. The provisions of the Articles of Incorporation prior to the amendment stipulated that if the Company made a profit for the year (profit being defined as pre-tax income before allocation of employee and director bonuses), 8% of the profit shall be distributed to employees as remuneration, and no more than 0.1% to directors as remuneration. However, if the Company still has accumulated losses, profits shall be reserved for making up the accumulated losses first. The employee remuneration may be made in the form of shares or cash, and the subjects for receiving the shares or cash may include employees of the affiliated companies meeting certain specific criteria and the board of directors shall be authorized to establish said specific criteria. The preceding two paragraphs shall be executed in accordance with the resolution of the Board of Directors meeting and shall be reported to the shareholder meeting.

For 2024 and 2023, the loss to be offset took place for the Company. Accordingly, the Company is not required to estimate the remuneration to employees and directors. For the relevant information, please visit the MOPS, etc.

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Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

(XX) Revenue from Contracts with Customers

Disaggregation of revenue

	2025
	Smart buildings	Smart cars	Smart optoelectronics	Total
Primary regional markets:
Taiwan	$ 229,773	82,143	77,739	389,655
Mainland China	-	809	295,949	296,758
United States	-	74,054	1,121,406	1,195,460
Vietnam	-	19,822	80,032	99,854
Others	-	24,403	10,029	34,432
	$ 229,773	201,231	1,585,155	2,016,159
Primary product/service line:
Optoelectronic glass - automotive glass	$ -	201,231	-	201,231
Green building glass	229,773	-	-	229,773
Optoelectronic glass - consumer electronics	-	-	1,585,155	1,585,155
	$ 229,773	201,231	1,585,155	2,016,159
	2024
---	---	---	---	---
	Smart buildings	Smart cars	Smart optoelectronics	Total
Primary regional markets:
Taiwan	$ 213,369	467,810	22,841	704,020
Mainland China	-	11,036	193,627	204,663
United States	-	91,983	930,549	1,022,532
Vietnam	-	-	22,471	22,471
Others	-	28,375	2,224	30,599
	$ 213,369	599,204	1,171,712	1,984,285
Primary product/service line:
Optoelectronic glass - automotive glass	$ -	599,204	-	599,204
Green building glass	213,369	-	-	213,369
Optoelectronic glass - consumer electronics	-	-	1,171,712	1,171,712
	$ 213,369	599,204	1,171,712	1,984,285

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

Contract balance

	2025.12.31	2024.12.31	2024.1.1
Notes and accounts receivable	$ 464,989	389,579	612,648
Less: Allowance for loss	(42,396)	(38,929)	(202,982)
Total	$ 422,593	350,650	409,666
Contract liabilities	$ 7,472	8,869	1,412

For the disclosures of notes and accounts receivable and impairment thereof, please refer to Note 6(4).

The beginning contract liabilities of January 1, 2025 and 2024, recognized as the revenue for 2025 and 2024, amounted to NT$8,844 thousand and NT$1,412 thousand, respectively.

(XXI) Non-operating income and expense

Interest income

Statement of interest income of the Company is as follows:

	2025	2024
Interest income	$ 15,394	15,404

Other gains and losses

Statement of other gains and losses of the Company is as follows:

	2025	2024
Foreign exchange gains (losses)	$ (12,773)	29,714
Gain on fair value adjustment of investment property	35,512	1,080
Net loss on financial assets and liabilities at fair value through profit or loss	(12,600)	(10,625)
Rental income	8,476	57,490
Dividend income	72	-
Losses from breach of contract	(2,959)	-
Losses from unfinished construction projects	(6,097)	-
Other income	13,517	2,023
Other expenses	(18,988)	(14,538)
	$ 4,160	65,144

Financial costs

Statement of financial costs of the Company is as follows:

	2025	2024
Interest expense
Bank borrowings	$ 41,747	43,262
Corporate bonds payable	-	1,386
Others	140	410
	$ 41,887	45,058

(XXII) Financial Instruments

Credit risk

(1) Maximum credit risk exposure amount

The maximum credit risk exposure of financial assets is equal to their carrying

~49~

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

amount.

(2) Concentration of credit risk

The main potential credit risk of the Company comes from the financial commodities of cash and cash equivalents and accounts receivable. The cash of the Company is deposited at different financial institutions. The Company controls the credit risk of each financial institution exposed, and believes that there is no likelihood of obvious concentration of material credit risk in the cash and cash equivalents of the Company.

Customers of the Company are concentrated in the optoelectronics industry, and to reduce accounts receivable credit risk, the Company continues to evaluate the financial status of customers, and periodically evaluates the feasibility of recovery of accounts receivable and appropriates allowance for losses, and impairment loss is within the expectations of the management. On December 31, 2025 and 2024, the accounts receivable of these customers of the Company were 50.49% and 50.32% respectively, indicating that the Company is subject to obvious concentration of credit risk.

(3) Credit risk of receivables

Please refer to Note 6(4) for details on the credit risk exposure information related to notes receivable and accounts receivable. Other financial assets measured at amortized cost include other accounts receivable, restricted deposits and time deposit certificates.

The aforementioned financial assets refer to financial assets with low credit risk; therefore, the allowance for losses for such periods is measured according to the 12-month expected credit loss amount (please refer to Note 4(6) for details on how the Company makes the judgment on low credit risk). The changes in the provision for loss for 2025 and 2024 are as follows:

	Other receivables
Balance as of December 31, 2025 (opening balance)	$ 646
Balance on January 1, 2024	$ 672
Impairment loss recognized	(26)
Balance on December 31, 2024	$ 646

For the other receivables of the Company, an amount of NT$11,568 thousand thereof represents settlement receivables resulting from civil mediation at the Intermediate People's Court in Wuxi City, Jiangsu Province, concerning previously overdue accounts receivable. The agreement stipulates that the counterparty will pay US$375 thousand on March 31, 2026. If such payment fails to be made by this time-limit, the Company may seek compulsory enforcement for the unpaid amount and collect default interest. The Company has obtained a court mediation order with enforcement and default penalty clauses. Based on this legal protection, the Company judges that credit risk and potential losses are significantly reduced, such that the twelve-month expected credit loss model is used for the measurement. As of December 31, 2025, no loss allowance has been recognized for this item.

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

Liquidity risk

The following are the contractual maturities of financial liabilities, including estimated interest payments but excluding the impact of netting agreements.

	Carrying amount	Contractual cash flows	Within 1 year	1-3 years	3-5 years	Over 5 years
December 31, 2025
Non-derivative financial liabilities
Secured bank loans	$ 1,405,629	1,493,608	294,649	835,438	61,101	302,420
Unsecured bank loans	237,704	243,924	134,476	109,448	-	-
Notes and accounts payable (including related parties)	362,464	362,464	362,464	-	-	-
Other payables	103,454	103,454	103,454	-	-	-
Payables on equipment	672	672	672	-	-	-
Lease liabilities	14	14	14	-	-	-
	$ 2,109,937	2,204,136	895,729	944,886	61,101	302,420
	Carrying amount	Contractual cash flows	Within 1 year	1-3 years	3-5 years	Over 5 years
---	---	---	---	---	---	---
December 31, 2024
Non-derivative financial liabilities
Secured bank loans	$ 1,630,500	1,724,668	524,610	722,443	377,421	100,194
Unsecured bank loans	410,998	416,829	401,045	15,784	-	-
Notes and accounts payable (including related parties)	307,642	307,642	307,642	-	-	-
Other payables	82,909	82,909	82,909	-	-	-
Payables on equipment	2,168	2,168	2,168	-	-	-
Lease liabilities	15,557	15,697	15,697	-	-	-
	$ 2,449,774	2,549,913	1,334,071	738,227	377,421	100,194

The Company does not expect that the timing of the occurrence of the cash flows estimated through the maturity date analysis will be significantly earlier, or that the actual cash flow amount will be significantly different.

Exchange rate risk

(1) Currency risk exposure

The Company’s financial assets and liabilities exposed to significant exchange rate risk are as follows:

	2025.12.31			2024.12.31
	Foreign currency	Exchange rate	TWD	Foreign currency	Exchange rate	TWD
Financial asset
Monetary items
USD : NTD	$ 12,098	31.43	380,229	21,682	32.79	710,854
RMB : NTD	34	4.4960	155	67	4.4780	299
EUR : NTD	6	36.90	230	6	34.14	214
JPY : NTD	61,833	0.2008	12,416	16,938	0.2099	3,555
Non-monetary items
USD : NTD	1,702	31.43	53,505	1,781	32.79	58,393
Financial liability
Monetary items
USD : NTD	9,618	31.43	302,292	9,785	32.79	320,788

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

(2) Sensitivity analysis

The Company’s exposure to foreign currency risk mainly comes from cash and cash equivalents, accounts receivable, loans and borrowings, and accounts payable that are denominated in foreign currencies, and foreign exchange gain or loss occurs during the translation. On December 31, 2025 and 2024, in case of 1% depreciation or appreciation of the NTD against the USD, RMB, EUR, and JPY, assuming all other factors remain constant, would have resulted in a decrease or increase of NT$726 thousand and NT$3,153 thousand in net loss after tax for 2025 and 2024, respectively. The analysis for the two periods adopted the same basis.

(3) Exchange gain or loss of monetary items

As the functional currency of the Company is diversified, the information about exchange gain or loss of monetary items is disclosed by summarization. The net foreign currency exchange gain (including realized and unrealized) in 2025 and 2024 was NT$(12,773) thousand and NT$29,714 thousand, respectively.

Interest rate risk analysis

Please refer to the note on liquidity risk management for the interest rate exposure of the Company’s financial assets and liabilities. The sensitivity analyses below were determined based on the exposure to interest rates for non-derivative instruments on the reporting date. Regarding

liabilities with variable interest rates, the analysis is on the basis of the assumption that the amount of assets outstanding at the report date was outstanding throughout the year. The rate of change is expressed as the increment or decrement by 1% when reporting internally to the management personnel of the Company, which also represents the management’s assessment of the reasonable interest rate change.

If the interest rate had increased or decreased by 1%, under conditions where other variables remained unchanged, then the Company’s net loss before tax would have decreased or increased by NT$10,761 thousand and NT$11,979 thousand in 2025 and 2024 respectively, which was mainly due to the demand deposits, time deposits and loans at variable interest rate of the Company.

Fair value information

(1) Categories and fair value of financial instruments

The financial assets and liabilities measured at fair price through profit or loss of the Company are measured at fair price based on the repetitiveness. The information on the carrying amount and fair value of various financial assets and financial liabilities (including fair value and level information; however, for the carrying amount of financial instruments not measured at fair value as the reasonable close value of fair value, and lease liabilities, their fair values are not required to be disclosed according to the regulations) is as follows:

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Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

	2025.12.31
	Carrying amount	Fair value
		Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss
SAFE	$ 200,784	-	-	200,784	200,784
Financial assets measured at fair value through other comprehensive income
Foreign unlisted stocks	27,711	-	-	27,711	27,711
Financial assets at amortized cost
Cash and cash equivalents	567,717	-	-	-	-
Notes and accounts receivable (including related parties)	422,593	-	-	-	-
Other financial assets - (current and non-current)	92,369	-	-	-	-
Subtotal	1,082,679	-	-	-	-
Total	$ 1,311,174	-	-	228,495	228,495
Financial liabilities measured at amortized cost
Short-term borrowings	$ 168,000	-	-	-	-
Notes and accounts payable (including related parties)	362,464	-	-	-	-
Other payables	103,454	-	-	-	-
Payables on equipment	672	-	-	-	-
Lease liabilities (current and non-current)	14	-	-	-	-
Long-term borrowings (including the portion with maturity in one year)	1,475,333	-	-	-	-
Total	$ 2,109,937	-	-	-	-

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Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

	2024.12.31
	Carrying amount	Fair value
		Level 1	Level 2	Level 3	Total
Financial assets at fair value through profit or loss
Stocks listed on domestic markets	$ 3,963	3,963	-	-	3,963
Foreign unlisted stocks	24,133	-	-	24,133	24,133
Beneficiary certificates	391	391	-	-	391
SAFE	75,827	-	-	75,827	75,827
Subtotal	104,314	4,354	-	99,960	104,314
Financial assets at amortized cost
Cash and cash equivalents	844,441	-	-	-	-
Notes and accounts receivable (including related parties)	350,650	-	-	-	-
Other financial assets - (current and non-current)	344,681	-	-	-	-
Subtotal	1,539,772	-	-	-	-
Total	$ 1,644,086	4,354	-	99,960	104,314
Financial liabilities measured at amortized cost
Short-term borrowings	$ 700,748	-	-	-	-
Notes and accounts payable (including related parties)	307,642	-	-	-	-
Other payables	82,909	-	-	-	-
Payables on equipment	2,168	-	-	-	-
Lease liabilities (current and non-current)	15,557	-	-	-	-
Long-term borrowings (including the portion with maturity in one year)	1,340,750	-	-	-	-
Total	$ 2,449,774	-	-	-	-

(2) Fair value valuation technique for financial instruments not measured at fair value

The methods and assumptions the Company adopted to estimate the instruments not measured at fair value are as follows:

(2.1) Financial assets at amortized cost

If a public price is available in an active market, that price is used as the fair value. If no market price is available for reference, an estimation is made using a valuation method or quotation from the counterparty is used.

(2.2) Financial assets and liabilities at amortized cost

If there is transaction or quote information from a market maker, then the latest transaction price and quote information are used as the basis for the evaluation of the fair value. If no market price is available for

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Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

reference, then a valuation method is used for estimation. The estimation and assumption adopted for the valuation method refers to the discounted value of the cash flow estimated fair value.

(3) Fair value valuation technique for financial instruments measured at fair value

(3.1) Non-derivative financial instruments

When a financial instrument has an active market open quote, then the open quote of the active market is used for the fair value. For the market price of the main exchange and announced by the exchange center of the central government determined to be on-the-run securities, the publicly listed equity instruments and debt instruments with an active market open quote are determined to have a basis for fair value.

If an open quote of a financial instrument can be timely and frequently obtained from an exchange, broker, underwriter, industry association, pricing service institution or competent authority, and the price represents an actual and frequently occurring fair market transaction, then the financial instrument has an active market open quote. If the aforementioned criteria are not met, then the market is deemed to be inactive. In general, when the bid-ask spread is great, and the bid-ask spread obviously increases or the trading volume is small, then it serves as indicators of an inactive market.

Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the balance sheet date (such as the reference yield curve of TPEx, Reuterrs commercial paper interest rate average price).

If a financial instrument held by the Company has no active market, then its fair value is determined according to the following category and attribute:

Equity instrument without open quote: The market comparable company method is used to estimate the fair value, and its main assumption is to use the estimated surplus before tax and before amortization of the investee and the earnings multiples inferred from the market quotation of domestic TWSE(TPEx) listed companies as the basis for measurement. For the estimated value, the discount effect of the lack of market liquidity of such equity security has been adjusted.

(3.2) Derivative financial instruments

The valuation is based on the valuation model widely used and accepted by users in the market, such as discount method and option pricing model. Forward exchange agreement is typically evaluated based on the

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Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

current forward exchange rate.

(4) Transfer between Level 1 and Level 2

The Company had no transfer of financial assets and liabilities in fiscal years 2025 and 2024.

(5) Details of changes in Level 3

	Measured at fair value through profit or loss	Measured at fair value through other comprehensive income
	SAFE and equity instrument without open quotation	Equity instrument without open quotation	Total
January 1, 2025	$ 99,960	-	99,960
Total gains or losses
Recognized as profit or loss	(20,446)	-	(20,446)
Purchase	121,270	27,711	148,981
December 31, 2025	$ 200,784	27,711	228,495
Total gains or losses
Recognized as profit or loss	(11,351)	-	(11,351)
Purchase	111,311	-	111,311
December 31, 2024	$ 99,960	-	99,960

(6) Quantified information on significant unobservable inputs (Level 3) used in fair value measurement

The fair value measurement of the Company is primarily classified as Level 3, and mainly consists of financial assets at fair value through profit or loss – equity securities investments.

Most of the fair values of the Company are classified as Level 3 and rely on a single significant unobservable input, while equity instrument investments lacking an active market rely on multiple significant unobservable inputs. The significant unobservable input value of equity instrument investment without an active market is independent from each other, so there is no interconnection.

The quantitative information on the significant unobservable inputs is as follows:

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

Item	Valuation technique	Material unobservable inputs	Relationship between material unobservable inputs and fair value
Financial assets measured at fair value through profit or loss - equity instrument investment without an active market	Comparable company method	Debt to equity ratio multiplied by (4.81 and 3.57 respectively as of December 31, 2025 and December 31, 2024)
Discount for lack of marketability (30% as of both 2025.12.31 and 2024.12.31)	The higher the multiplier, the higher the fair value.
The higher the discount for lack of marketability, the lower the fair value
Financial assets at fair value through profit or loss - SAFE	Binary tree model	Volatility (56.09% for both 2025.12.31 and 2024.12.31)	The higher the volatility, the higher the fair value
Financial assets measured at fair value through other comprehensive income - Slamko	Cash flow discount method	Sustainable growth rate (1.72% as of 2025.12.31)
Weighted average cost of capital (17.39% as of 2025.12.31)
Discount for lack of marketability (30% as of 2025.12.31)
Discount for controlling interest (32.24% as of 2025.12.31)	The higher the sustainable growth rate, the higher the fair value
The higher the weighted average cost of capital, minority interest discount and lack of marketability discount, the lower the fair value

(7) Fair value measurement for Level 3, and sensitivity analysis of fair value on reasonably possible alternative assumptions

The Company's fair value measurement on the financial instruments is considered reasonable; however, when different valuation model or valuation parameters are used, it may lead to different valuation result. If valuation parameters change, financial instruments classified as Level 3 will have effects on the profit/loss or other comprehensive income, stated as follows:

	Inputs	upward or downward comprehensive income change	Changes in fair value reflected in profit or loss for the period		Changes in fair value reflected in Others
			Favorable change	Unfavorable change	Favorable change	Unfavorable change
December 31, 2025
Financial assets at fair value through profit or loss
Investments in equity instrument without active market	Share net worth ratio	±5%	$ 107	(107)	-	-
Investments in equity instrument without active market	Liquidity discount	±5%	153	(153)	-	-
SAFE	Volatility	±5%	101	-	-	-
Financial assets measured at fair value through other comprehensive income
Slamko	Sustainable growth rate	±0.2%	-	-	437	(424)
Slamko	Weighted average cost	±0.2%	-	-	665	(648)
Slamko	Liquidity discount	±5%	-	-	3,487	(3,487)
Slamko	Control premium	±5%	-	-	3,602	(3,602)
December 31, 2024
Financial assets at fair value through profit or loss
Investments in equity instrument without active market	Share net worth ratio	±5%	$ 1,207	(1,207)	-	-
Investments in equity instrument without active market	Liquidity discount	±5%	1,724	(1,724)	-	-
SAFE	Volatility	±5%	32	(55)	-	-

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Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

The Company’s favorable and unfavorable changes refer to fluctuation of fair value, and the fair value is calculated according to unobservable inputs of different level via the valuation technique. The fair value of the financial instrument is affected by more than one inputs, the table above only reflects the effect caused by the change of one single input, and the correlation and difference among inputs are not considered.

(XXIII) Financial risk management

Overview

The Company is exposed to the following risks arising from the use of financial instruments:

(1) Credit risk
(2) Liquidity risk
(3) Market risk

This note discloses information about the Company’s exposure to the aforementioned risks, and its goals, policies and procedures regarding the measurement and management of these risks. For additional quantitative disclosures of these risks, please refer to the notes regarding each risk disclosed throughout the parent company only financial statements.

Risk management framework

The board of directors is fully responsible for the establishment and oversight of the risk management framework of the Company. For the board of directors, the chairperson’s office is responsible for the development and control of the financial risk management policies of the Company and to provide reports on the operation thereof to the board of directors periodically.

The establishment of the financial risk management policy of the Company is to identify and analyze the financial risk faced by the Company, and to set up appropriate financial risk limits and control, as well as to monitor risk and risk limit compliance. The financial risk management policy is reviewed periodically to reflect market conditions and changes in the operation of the Company. The Company, through training, management standards and operation procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.

The audit committee of the Company monitors the management personnel, such as monitoring of the financial risk management policy and procedure compliance of the Company, and reviews the appropriateness of relevant financial management framework for the risks faced by the Company. The internal auditing personnel of the Company provides assistance to the board of directors of the Company to perform their role of supervision. Such personnel undertakes both regular and ad hoc reviews of risk management controls and procedures, and the results thereof are reported to the audit committee.

Credit risk

Credit risk refers to the risk of financial loss of the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises primarily from the Company’s receivables from customers’ notes and accounts as well as bank deposits.

(1) Accounts receivable and other receivables

The credit risk exposure of the Company is mainly affected by the individual condition of each customer. However, the management considers the basic

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Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

statistical data of customers of the Company, including the industry of customers and country default risk since such factors may affect the credit risk.

The Company has established a credit policy, and according to such policy, before the Company makes standard payment and delivery terms, it is necessary to analyze the credit raking of each new customer individually.

The Company has set up an allowance for bad debt account to reflect the estimated losses arising from notes receivable and others receivable as well as investments. The allowance for debt account mainly consists of a specific loss component relating to individually significant exposure, and a combinational loss component established for losses already occurred but not yet identified in similar asset groups. The combinational loss account allowance account is determined based on the statistical data of past payments of similar financial assets.

(2) Investment

The credit risk of bank deposits and other financial instruments is measured and monitored by the financial department of the Company. Since the transaction counterparties and the contract performance parties of the Company are banks with excellent credit standing, there are no non-compliance issues; therefore, there is no significant credit risk.

(3) Guarantee

The Company's policy is executed in accordance with the Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies. Up to December 31, 2025 and 2024, the Company has not provided any endorsements/guarantees.

Liquidity risk

Liquidity risk refers to the risk that the Company is unable to deliver cash or other financial assets for repayment of financial debts, and the risk of failure to perform relevant obligations. The Company's liquidity management method is to ensure that under general conditions and conditions of pressure, the Company is still able to have sufficient working capital capable of paying liabilities that are due for payment, such that unacceptable loss would not occur or the risk of the reputation of the Company being damaged would not occur.

As at December 31, 2025 and 2024, the loans not utilized by the Company amounted to NT$300,000 thousand and NT$ 200,000 thousand respectively.

Market risk

Market risk refers to the risk in the change of market prices, such as foreign exchange rates and interest rates, affecting the Company's income or the value of holdings of financial instruments. The objective of market risk management is to manage and control market risk exposure within an acceptable range, and to optimize investment returns.

To manage the market risk, the Company engages in derivative instrument transactions and also generates financial assets and liabilities accordingly. The all transactions were executed in accordance with the instructions of the board of directors.

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Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

(1) Exchange rate risk

The Company is exposed to currency risk on transactions of sales, purchases and loans that are denominated in a currency other than the respective functional currencies of the Group. The functional currencies of the Group are mainly NTD and USD. The main pricing currency for such transactions is NTD and USD.

In addition, based on the principle of natural hedging, the Company performs hedging according to the capital demand of each currency and the net position with respect to the market exchange condition.

(2) Interest rate risk

The Company’s policy is to ensure that the loan interest rate change risk exposure is evaluated according to the international economic status and market interest rates.

(XXIV) Capital management

The Company’s capital management objective is to safeguard the Company’s ability to continue as a going concern in order to continue to provide returns for shareholders and interests of other stakeholders, as well as to maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, execute capital reduction to return share capital to shareholders, issue new shares or sell assets in order to repay debts.

The Company, similar to others in the same industry, uses the debt-to-capital ratio as the basis for capital control and monitoring. Such ratio is calculated by dividing the net liabilities by the total capital. The net liabilities refer to the total liabilities indicated on the balance sheet less cash and cash equivalents. Total capital refers to all components (i.e. share capital, capital surplus, retained earnings and other equity) of equity plus net liabilities.

The capital management strategy of the Company in 2025 was to ensure that the Company is able to perform financing at a reasonable cost. Debt-to-capital ratio at report date is as follows:

	2025.12.31	2024.12.31
Total liabilities	$ 2,213,603	2,549,009
Less: Cash and cash equivalent	(567,717)	(844,441)
Net liabilities	1,645,886	1,704,568
Total equity	2,556,747	1,961,850
Capital after adjustment	$ 4,202,633	3,666,418
Debt-to-capital ratio	39.16%	46.49%

In 2025, the Company repaid its loans and increased its operating funds by capital increase in cash, thereby causing the drop in the debt-capital ratio.

(XXV) Non-cash transaction investments and financing activities

Statement of the change to the acquisition of property, plant and equipment of the Company for 2025 and 2024 is as follows:

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

	2025	2024
Purchase of property, plant and equipment in the current period	$ 152,644	40,163
Add: Equipment and construction payables at beginning of the period	2,168	1,552
Less: Equipment and construction payables at end of the period	(672)	(2,168)
	$ 154,140	39,547

Changes in liabilities arising from financing activities were as follows:

	2025.1.1	Cash flows	Non-cash changes	Impact of changes in foreign exchange rate	2025.12.31
Long-term borrowings	$ 1,340,750	134,583	-	-	1,475,333
Short-term borrowings	700,748	(532,748)	-	-	168,000
Lease liabilities	15,557	(15,741)	198	-	14
Total liabilities from financing activities	$ 2,057,055	(413,906)	198	-	1,643,347
	2024.1.1	Cash flows	Non-cash changes	Impact of changes in foreign exchange rate	2024.12.31
---	---	---	---	---	---
Long-term borrowings	$ 1,369,577	(28,827)	-	-	1,340,750
Short-term borrowings	382,000	318,748	-	-	700,748
Lease liabilities	1,676	(16,327)	30,208	-	15,557
Corporate bonds payable	498,614	(500,000)	1,386	-	-
Total liabilities from financing activities	$ 2,251,867	(226,406)	31,594	-	2,057,055

(XXVI) Sound financial plan

Due to rapid industry changes and the impact of global inflation, raw material costs remain high. Weak demand in the end market and continued economic stagnation have resulted in sustained losses for the Company in recent years. To ensure continued operations and gradually improve its financial structure and cash flow, the management team has consecutively adopted the following measures. In response to these circumstances, the Company plans to adopt the following plans:

Operations

(1) Actively combining various core technical developments for integrated applications in order to satisfy high customization demands and new technologies for terminal products, and continuing to enhance and adjust market order acceptance capability, thereby strengthening and expanding the market while satisfying customer demands and enhancing the foundation to improve

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

the market share.

(2) With the rise of new technologies such as the internet of things, artificial intelligence and 5G networks, touch screens are constantly being developed for factory control, automobile, smart home, education, healthcare and other various applications, which are exactly the directions for our company's product development. In addition, we are continuously developing new products and refining our market positioning to capture sales in niche markets.

(3) We also expand the customer base and extend product applications related to our core competencies, including the expansion of our offerings from glass processing for consumer electronics to TP module services, and our film coating technology now serves a diverse range of industries including optoelectronics, healthcare, and construction, all while focusing on speed, service, cost-effectiveness, and quality.

(4) Customers have also expanded from LCM and industrial control plant in the early stage to the end customers, such as sports, in-vehicle and buildings. The 3D formation technology is designed based on the concept of simplicity, safety, innovation, aesthetic, durability, and light weight, in order to fully reflect the quality of glass processing in the display of the automotive glass products, such as the dashboards, central control system, multimedia voice, back view, and other display, as well as the applications of buttons, interior, etc.

Management

(1) Implementing the streamlined organizational policy, and fully utilizing the advantages of outsourcing to rigorously control costs and expenditures.

(2) Improving production management efficiency, smooth production, reducing material waste, and implementing strictly control inventory to minimize obsolescence losses.

(3) Improving the accuracy of sales forecasts, rigorously controlling raw material purchases, enhancing the flexibility of capital use, improving efficiency and reducing operating costs.

(4) Expediting the introduction of second source materials in order to effectively control and reduce material costs.

(5) Implementing strictly control expenditure review to reduce expenses and avoid unnecessary waste.

(6) In the future, the focus will be on the introduction of new technologies or manufacturing processes, and the necessary capital expense for improving machinery and equipment production efficiency will be increased. In addition, rigorous investment benefit analysis will also be thoroughly executed in order to maximize the capital expenditure effect.

Finance

(1) Implement cost and expense reduction plans, save expenditures and maintain safe levels for capital and reduce the cumulation of inventories.

(2) Continue negotiating bank quotas and limits, and enhancing the business dealings with banks in order to ensure sufficient working capital. Also plan to increase medium- and long-term financing and repay short-term liabilities to improve its financial structure.

(XXVII) Acquisition of asset group

On April 22, 2025, the Company’s Board of Directors approved the acquisition of 100%

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Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

of the equity interest in SD Global Vietnam Limited Liability Company from Ryukil CNS Co., Ltd., a non-affiliated party, for US$10,000 thousand. Subsequently, the two parties signed a supplementary agreement to increase the purchase amount by US$1,000 thousand, bringing the total transaction amount to US$11,000 thousand (approximately equivalent to NT$348,310 thousand).

As the fair values of land use rights, property, and plant and equipment constitute the vast majority of the purchase price in the aforementioned equity transaction, and since the elements sufficient to constitute a business are excluded, this transaction is considered to not meet the definition of a business under "IFRS 3 Business Combination", such that it is accounted for as an asset acquisition.

For information on the transaction consideration and the identifiable assets acquired, please refer to the 2025 consolidated financial statements for details.

VII. Related party transaction

(I) Names and relationship with related parties

Related party name	Relationship with the Company	Remarks
Chin Ming Glass Co., Ltd.	Its chairman is a relative within the first degree of kinship of the Chairman of the Company
Chen Pang Blind Industrial Corporation	The chairman of the company is the same person as a Director of the Company.
Chung, Chih-Ming	Chairman of the Company
SD GLOBAL VIETNAM LIMITED LIABILITY COMPANY	Subsidiary of the Company
Fast Achievement Global Ltd.	"
Golden Start Global Corp.	"
G - TECH OPTOELECTRONICS (VIETNAM) CO., LTD	"
Charmtex Global Corp.	"
Ruizhida Optoelectronics (Chengdu) Co., Ltd.	"

The related parties of subsidiaries of the Company and others that have had transactions with the Company during the periods covered in these parent company only financial statements are as follows:

(II) Significant transactions with related parties

Operating income

The significant sales of the Company to related parties were as follows:

	2025	2024
Subsidiaries	$ 26,057	-
Other related parties	21,640	18,562
	$ 47,697	18,562

The price and payment collection terms for the sales of the Company to other related parties are open account 60 days, and there are no major differences for general

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Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

customers.

Purchase

Purchase costs of the Company from related parties were as follows:

	2025	2024
Subsidiaries	$ 288	-
Other related parties	105,500	95,468
	$ 105,788	95,468

The purchases from related parties by the Company refer to single suppliers, and the payment terms are open account 60 days, and the payment terms for general suppliers are LC120 days and open account 30~90 days.

Receivables from related parties

Statement of receivables from related parties of the Company is as follows:

Item	Types of related parties	2025.12.31	2024.12.31
Accounts receivable - related parties	Subsidiaries	$ 20,823	-
"	Other related parties	4,595	3,829
		$ 25,418	3,829
Other receivables - related party	Subsidiaries	$ 2,247	-

Payable to related parties

Statement of payables to related parties of the Company is as follows:

Item	Types of related parties	2025.12.31	2024.12.31
Accounts payable - related parties	Subsidiaries	$ 295	-
"	Other related parties	19,185	24,497
		$ 19,480	24,497
Other payables	Other related parties	$ -	19
	Key management of the Company	-	30
		$ -	49

(III) Personnel transactions from key management

Remuneration of key management includes:

	2025	2024
Short-term employee benefits	$ 15,894	15,718

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

VIII. Pledged Assets

Statement of the carrying value of pledged or secured assets of the Company is as follows:

Asset name	Pledged or secured subject matter	2025.12.31	2024.12.31
Other financial assets - current	Customs bonds and bank borrowings	$ 46,173	336,432
Property, plant and equipment	Bank borrowings	903,396	978,889
Investment Property	Bank borrowings	1,182,017	1,148,336
Other non-current assets	Bank borrowings	29,610	29,610
		$ 2,161,196	2,493,267

IX. Significant Contingent Liabilities and Unrecognized Commitments

The contract prices for the Company's equipment purchases were as follows:

	2025.12.31	2024.12.31
Signed contract prices	$ 485,898	298,485
Paid amount	$ 340,138	108,992

X. Significant disaster loss: None.

XI. Significant Subsequent Events

On March 6, 2026, the Company's Board of Directors approved a resolution to sell the land located at Lot No. 458, 460, 461, and 463 of the Zhongxing Section in Tonglu Township, Miaoli County, and the structures on the land (located at Lot No. 87, 87-1, 87-2, and 89, Zhongxing Road, Zhongping Village, Tonglu Township, Miaoli County) for a total of NT$2.58 billion. This transaction is expected to be completed within one year. Accordingly, under IFRS 5, the property is reclassified from property, plant and equipment and investment property to non-current assets held for sale.

XII. Others

A summary of employee benefits, depreciation, depletion and amortization expenses, by function, is as follows:

| By function
By nature | 2025 | | | 2024 | | |
| --- | --- | --- | --- | --- | --- | --- |
| | Operating costs | Operating expenses | Total | Operating costs | Operating expenses | Total |
| Employee benefit expense | | | | | | |
| Salary expense | 139,971 | 147,545 | 287,516 | 186,566 | 137,995 | 324,561 |
| Labor and health insurance expense | 15,862 | 10,676 | 26,538 | 20,783 | 10,425 | 31,208 |
| Pension expense | 5,999 | 5,679 | 11,678 | 8,248 | 5,544 | 13,792 |
| Remuneration of Directors | - | 3,024 | 3,024 | - | 3,024 | 3,024 |
| Other employee benefit expenses | 9,035 | 6,146 | 15,181 | 10,661 | 6,178 | 16,839 |
| Depreciation expense | 110,719 | 11,907 | 122,626 | 111,494 | 12,804 | 124,298 |
| Amortization expense | 231 | 2,805 | 3,036 | 229 | 923 | 1,152 |

~65~

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

In 2025 and 2024, the depreciation in other profit and loss under the non-operating income and expense of the Company amounted to NT$2,494 thousand and NT$2,541 thousand respectively. Additional information on the number of employees and employee benefit expenses of the Company for 2025 and 2024 is as follows:

	2025	2024
Number of employees	361	458
Number of directors without concurrent position as employee	6	6
Average employee benefit expenses	$ 960	855
Average employee salary expense	$ 810	718
Adjustment status of average employee salary expense	6.12 %	14.77 %
Remuneration of supervisors	$ -	-

Information on the Company’s remuneration policy (including directors, managerial officers and employees) is as follows:

(I) Director

Directors’ remuneration shall include transportation fees, business operation expenses, and surplus distribution. After the Company’s remuneration for directors has been reviewed by the Remuneration Committee according to the Company’s Articles of Incorporation, the Board of Directors is authorized to set the salaries for the directors based on their participation in the Company’s operations, contribution value, as well as the industry standards. The remuneration distribution standard for surplus distribution to directors is based on the Company’s Articles of Incorporation, which shall be submitted to the board of directors for review and be issued after it has passed the shareholders meeting resolution.

(II) President and vice presidents

The remuneration of the president and vice president includes salary, employee dividends, employee stock options, and new restricted shares for subscription. Salary standards are based on contributions to the Company and reference to peer standards. The employee dividend distribution standard shall be based on the Company’s Articles of Incorporation, be submitted to the Remuneration Committee for deliberation, and then issued after the proposal has passed the resolution of the board of directors’ or shareholders’ meeting. Employee stock options, and new restricted shares for subscription issuance standards were evaluated based on contributions to the Company and its future development.

(III) Employee

The employees’ remuneration includes full pay (base salary, meal allowance, position allowance), other allowances, cash gifts, performance bonuses, year-end bonuses, employee bonuses and employee stock options. The full pay is paid based on normal market level of the industry, positions in the Company and contributions to the Company. In combination with the Company’s operating conditions and with reference to domestic economic growth rate, price index and salary adjustment within the industry, the salary adjustment policies are established based on individuals’ job performance and value contribution. Other allowances, cash gifts, performance bonuses, year-end bonuses, employee bonuses and employee stock options are distributed in compliance with the Articles of Incorporation and administrative measures of the Company.

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

XIII. Disclosures in Notes

(I) Information on Significant Transactions

The information on material transactions that should be further disclosed by the Company in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers in 2025 is as follows:

Loaning of funds to others:

Unit: NT$ thousand

Serial No.	Lending company	Borrowing party	Transaction item	Whether it is a related party	Current maximum amount	Balance at end of the period	Amount actually drawn	Interest rate interval	Nature of the loaning of funds (Note 1)	Transaction amount	Reason for short-term financing needs	Appropriation of allowance for loss	Collaterals		Limit of loaning to individual borrower (Note 3)	Total limit of loaning of funds to others (Note 2)
													Name	Value
0	G-TECH Optoelectronics Corporation	SD GLOBAL VIETNAM LIMITED LIABILITY COMPANY	Other receivable - refund party	Yes	188,580	188,580	-	0.00%	2	-	Business revolving fund	-	-	-	1,022,699	1,278,374

Note 1: The method of filling out the capital loan and nature is as follows:
(1) For those with business contact, please fill in 1.
(2) For those necessary for short-term financing, please fill in 2.

Note 2: Total limit of loan granted
(1) The total amount of loans the Company extends to others shall not exceed 50% of its net worth.
(2) Companies or firms requiring short-term financing may lend funds to others, up to a total amount not exceeding 40% of the Company's net worth.

Note 3: Maximum amount of loan permitted to a single borrower
(1) For companies or entities that have business dealings with the Company, the amount of funding provided to each individual counterparty shall not exceed the amount of their existing business transactions with the Company. The amount of business transactions referred to herein means the greater of the actual purchase and sale amounts between the parties in the most recent year or the projected amount for the coming year.
(2) If a company for which the Company directly or indirectly holds more than 20% of the voting shares, or a company that directly or indirectly holds more than 20% of the Company's voting shares, has short-term financing needs, the amount of loan granted to each entity shall not exceed 40% of the Company's net worth.
(3) For companies that do not meet the above conditions but require short-term financing, individual loan amounts shall not exceed 20% of the Company's net worth.
(4) The net worth in the preceding paragraph shall be based on the data in the Company's most recent financial statements that have been audited or reviewed by a certified public accountant.
(5) For foreign companies for which the Company directly or indirectly holds 100% of the voting shares, the aggregate amount of loan granted and the loan limit for each individual borrower shall not exceed 100% of the lending company's net asset value.

Note 4: Where the amounts in NTD in this table involve foreign currencies, they are converted to NTD using the spot exchange rate as of the financial reporting date.

Endorsements/guarantees made for others: None.
Significant securities held (excluding investment in subsidiaries, associates, and joint venture equity):

Unit: NT$ thousand

Holding company name	Marketable securities type and name	Relationship with the issuer	Financial statement account	End of period				Remarks
				Shares	Carrying amount	Shareholding ratio	Market price
The Company	IX ACQUISITION CORP.	SAFE	-	Financial assets at fair value through profit or loss- non-current	470,609	200,784	- %	200,784
"	Shimko Limited	Shares	-	Financial assets measured at fair value through other comprehensive income - non-current	2,250	27,711	20.00 %	27,711
"	AERKOMN INC.	Shares	-	Financial assets at fair value through profit or loss- non-current	175,000	-	0.96 %	-

Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more: None.

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

Receivables from related parties reaching $100 million or 20% of paid-in capital or more: None.

(II) Information on Investees:

The information on investees of the Company in 2025 (excluding investees in China) is as follows:

Unit: NT$ thousand/US$ thousand

Investors	Name of investee	Location	Main business items	Original investment amount		Shareholding at the end of the period			Investees' profit/loss in the period	Current investment profit/loss recognized
				End of the period	End of the preceding year	Shares	Ratio	Carrying amount
The Company	Fast Achievement Global Ltd.	Cayman Islands	Holding	16,972 (USD540)	16,972 (USD540)	540,000	100.00 %	56,784	(428) (USD(14))	(428) (US(14))
"	Golden Start Global Corp.	Samsu	Holding	2,243,831 (USD71,391)	2,243,831 (USD71,391)	71,391,373	100.00 %	60,414	(8,867) (USD(266))	(8,867) (USD(284))
"	G-TECH OPTOELECTRONICS (VIETNAM)CO., LTD.	Vietnam	Sales, design, manufacturing and processing of optical glass and accessories	62,860 (USD2,000)	62,860 (USD2,000)	2,000,000	100.00 %	12,881	(41,037) (VND(34,484,660))	(41,037) (VND(34,484,660))
"	SD GLOBAL VIETNAM LIMITED LTD	Vietnam	"	345,730 (USD11,000)	-	11,000,000	100.00 %	321,179	(28,604) (VND (24,037,015))	(21,863) (VND(18,372,755))
"	G-Tech Tactical Technology Corporation	Taiwan	Glass and glass products, manufacturing of electronic components, international trade business, and manufacturing of aircraft and parts	30,000	-	3,000,000	100.00 %	30,002	2	2
Fast Achievement Global Ltd.	Brave Advance International Corp.	Samsu	Holding	15,715 (USD500)	15,715 (USD500)	500,000	25.00 %	53,505 (USD1,702)	(806) (USD(26))	(202) (USD(6))
Golden Start Global Corp.	Chamtex Global Corp.	Samsu	Holding	2,243,202 (USD71,371)	2,243,202 (USD71,371)	71,371,373	100.00 %	60,414 (USD1,922)	(8,867) (US(284))	(8,867) (USD(284))

(III) Information on investments in Mainland China:

Information of name of investees in China, and main business items:

Unit: NT$ thousand

Names of the investees in Mainland China	Main business items	Paid-in capital	Investment method	Opening aggregate investment amount remitted out from Taiwan	Remitted or recovered investment amount of the period		Closing aggregate investment amount remitted out from Taiwan	Investees' profit/loss in the period	Ratio of shareholding directly or indirectly invested by the Company	Recognized returns and losses on investments in the period	Closing carrying value of investments	Remitted returns on investments in the end of the period
					Outward remittance	Recovery
Hongda Photoelectric Glass (Dongguan) Co., Ltd.	Manufacturing and sale of TFT-LCD punch Panel display materials	746,148 (USD23,740)	Note 1	746,148 (USD23,740)	-	-	746,148 (USD23,740)	(5,071) (USD(162))	25.00 %	(1,268) (USD(41))	17,597 (USD560)	-
Ruizhida Optoelectronics (Chengdu) Co., Ltd.	Manufacturing and sale of TFT-LCD punch Panel display materials	2,200,100 (USD70,000)	Note 2	2,200,100 (USD70,000)	-	-	2,200,100 (USD70,000)	(8,932) (USD(286))	100.00 %	(8,932) (USD(286))	51,851 (USD1,650)	-

Note 1: The Company invested in Hongda Photoelectric Glass (Dongguan) Co., Ltd. in China indirectly via the investee Brave Advance International Corp. of the investment enterprise Fast Achievement Global Ltd. in a third region.
Note 2: The Company invested in Ruizhida Optoelectronics (Shenzhen) Co., Ltd. in China indirectly via the investee Chamtex Global Corp. of the investment enterprise Golden Start Global Corp. in a third region.
Note 3: The exchange rate is calculated based on USD 31.43 to NTD 1 and VND 0.00118 to NTD 1 as of December 31, 2025.

~68~

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

Upper limit on the amount of investment in Mainland China:

Aggregate amount remitted from Taiwan for investments in Mainland China in the period	Investment amount approved by the Investment Commission, Ministry of Economic Affairs	Limit of investments in Mainland China specified by the Investment Commission, Ministry of Economic Affairs
2,946,248
(USD93,740)	2,946,248
(USD93,740)	-
(Including machine construction fee of 269,764)
(USD8,583)	(Including machine construction fee of 291,545)
(USD9,276)	-

The Company received a certificate from the Industrial Development Bureau of the Ministry of Economic Affairs on August 23, 2022, confirming its compliance with the operational scope of its headquarters. The certificate was valid from August 22, 2022, to August 21, 2025, and it has been subsequently renewed on September 22, 2025, with a new certificate valid from August 22, 2025, to August 21, 2028, and is therefore exempt from investment limits.

Significant transactions with investees in China: None.

XIV. Segment Information

Please refer to the 2025 consolidated financial statements for details.

G-TECH Optoelectronics Corporation
Statement of Cash and Cash Equivalents
December 31, 2025
Unit: NT$ thousand

Item	Summary	Amount
Cash on hand and petty cash		$ 520
Bank deposits
Demand deposits		275,070
Checking accounts		40
Foreign currency deposits	USD 1,550 thousand, JPY 61,503 thousand and RMB 33 thousand	61,264
Time deposits	NT$230,273 thousand	230,823
		$ 567,717

Statement of Notes and Accounts Receivable (Including Related Parties)

Customer	Summary	Amount	Remarks
Customer A	Loan	$ 193,341
Customer B	〃	41,467
Customer C	〃	32,019
Customer D	〃	30,545
Customer E	〃	24,863
Others	〃	142,754	Customer amount of each account is less than 5% of the balance of this subject
Total		464,989
Less: Allowance for impairment		(42,396)
Net		$ 422,593

~69~

G-TECH Optoelectronics Corporation
Inventory ledger
December 31, 2025
Unit: NT$ thousand

Item	Amount		Remarks
	Cost	Net realizable value
Raw materials and supplies	$ 69,497	69,550	Replacement cost of an asset
Work in progress	27,926	27,926	Net realizable value
Finished goods	36,743	38,957	"
Merchandise	1,190	1,190	"
Subtotal	$ 135,356	137,623
Less: Allowance for loss	(44,364)
Total	$ 90,992

Statement of Changes in Property, Plant and Equipment
From January 1 to December 31, 2025

Please refer to Note 6(7) for relevant information.

~70~

G-TECH Optoelectronics Corporation
Statement of Changes in Investments Accounted for Using Equity Method
From January 1 to December 31, 2025 Unit: NT$ thousand

Name of investee	Beginning retained earnings		Increase in the current period		Decrease in the current period
	Number of shares (thousand shares)	Amount	Number of shares (thousand shares)	Amount	Number of shares (thousand shares)	Amount	Investment profit/loss	Translation adjustment	Number of shares (thousand shares)	Shareholding percentage %	Amount	Unit price	Total	Guarantee or pledge status
Fast Achievement Global Ltd.	540	$ 59,475	-	-	-	-	(428)	(2,263)	540	100.00 %	56,784	105.16	56,784	None
Golden Start Global Corp.	71,391	69,705	-	-	-	-	(8,867)	(424)	71,391	100.00 %	60,414	0.85	60,414	"
G-TECH OPTOELECTRONICS (VIETNAM) CO., LTD	2,000	57,659	-	-	-	-	(41,037)	(3,741)	2,000	100.00 %	12,881	6.44	12,881	"
SD GLOBAL Vietnam Limited Liability Company	-	-	11,000	348,310	-	-	(21,863)	(5,268)	11,000	100.00 %	321,179	27.40	301,404	"
G-Tech Tactical Technology Corporation	-	-	3,000	30,000	-	-	2	-	3,000	100.00 %	30,002	10.00	30,002	"
Subtotal		186,839		378,310		-	(72,193)	(11,696)			481,260
Add: Investment loan balance accounted for under the equity method		-		-		-	-	-			-
Total		$ 186,839		378,310		-	(72,193)	(11,696)			481,260

~71~

G-TECH Optoelectronics Corporation
Statement of Changes in Investment Property
From January 1 to December 31, 2025

Unit: NT$ thousand

Please refer to Note 6(8) for relevant information.

Statement of other non-current assets
December 31, 2025

Please refer to Note 6(10) for the relevant information.

Statement of Short-term Borrowings

Loan nature	Loan institution	Amount	Loan term	Interest rate
Secured borrowings	Sunny Bank	$ 100,000	2025/12/30~2026/12/30	2.5900 %
Credit loan	Hua Nan Commercial Bank	68,000	2025/09/15~2026/03/15	2.7000 %
		$ 168,000

~72~

G-TECH Optoelectronics Corporation
Statement of Long-term Borrowings
December 31, 2025

Unit: NT$ thousand

Loan nature	Loan institution	Amount	Loan term	Interest rate	Pledge or guarantee	Remarks
Secured borrowings	Bank of Panhsin	$ 190,000	2024/04/08~2031/04/08	2.420 %	Property, plant and equipment	Started to repay principle on 2031.04.08
"	"	100,000	2024/09/06~2031/04/08	2.420 %	"	Started to repay principle on 2031.04.08
"	"	100,000	2025/03/31~2031/04/08	2.420 %	"	Started to repay principle on 2031.04.08
"	"	100,000	2025/04/08~2031/04/08	2.420 %	"	Started to repay principle on 2031.04.08
"	Sunny Bank	392,800	2020/07/14~2027/07/14	2.590 %	"	Started to repay principle on August 14, 2023
"	The Shanghai Commercial & Savings Bank	53,629	2022/10/12~2027/09/15	2.220 %	"	Started to repay principle on 2022-10-15
"	Taiwan Cooperative Bank	369,200	2023/12/26~2028/12/16	2.388 %	"	Started to repay principle on 2024.01.26
Unsecured borrowings	The Shanghai Commercial & Savings Bank	128,000	2025/07/18~2028/04/30	2.720 %	-	Started to repay principle on 2025.08.15
"	"	26,814	2022/06/06~2027/09/15	2.220 %	-	Started to repay principle on 2022-10-15
"	"	14,890	2021/10/08~2026/10/08	2.220 %	-	Started to repay principle on 2022-10-15
	Total	1,475,333
	Less: Due in one year	(224,017)
	Net	$ 1,251,316

Statement of Notes and Accounts Payable (Including Related Parties)

Name of Supplier	Summary	Amount	Remarks
Supplier A	Loan	$ 121,300
Supplier B	"	33,297
SD Global	"	20,823
Others	"	187,044	Customer amount of each account is less than 5% of the balance of this subject
		$ 362,464

G-TECH Optoelectronics Corporation
Statement of Operating Revenue
From January 1 to December 31, 2025
Unit: NT$ thousand

Item	Quantity	Amount
Smart optoelectronics glass	20,241 thousand pieces	$ 1,585,155
Smart building glass	5,172 thousand pieces	229,773
Smart car glass	393 thousand pieces	201,231
Net operating income		$ 2,016,159

~74~

G-TECH Optoelectronics Corporation
Statement of Operating Costs
From January 1 to December 31, 2025

Item	Summary	Unit: NT$ thousand Amount
Merchandise inventory at beginning of the current period		$ 12,447
Plus: Purchase in the current period		1,320,402
Less: Merchandise inventory at end of the current period		(1,190)
Merchandise sale cost		1,331,659
Raw materials at beginning of the current period		45,489
Plus: Purchase in the current period		376,456
Less: Raw materials at end of the current period		(50,164)
Picked up by Segment for use		(392)
Scrapped inventories		(828)
Direct raw material consumption		370,561
Materials at beginning of the current period		33,244
Plus: Purchase in the current period		40,896
Less: Materials at end of the current period		(19,333)
Picked up by Segment for use		(24,136)
Material consumption		30,671
Direct labor		43,290
Production overheads		193,855
Production cost		638,377
Plus: Work in progress at beginning of the current period		8,176
Less: Work in progress at end of the current period		(27,926)
Finished goods cost		618,627
Plus: Finished goods at beginning of the current period		122,371
Less: Finished goods at end of the current period		(36,743)
Picked up by Segment for use		(72)
Recognition expense		(1,608)
Recognized as sample fee		(147)
Scrapped inventories		(2,558)
Product sales cost		699,870
Loss from inventory devaluation gain from price recovery		(3,443)
Idle production capacity		213,013
Income from sale of scraps		(235)
Loss on scrapped inventories		3,386
Operating costs		$ 2,244,250

G-TECH Optoelectronics Corporation
Statement of Operating Expenses
From January 1 to December 31, 2025
Unit: NT$ thousand

Item	Selling and marketing expenses	Administrative expenses	Research and development expenses	Total
Salary expense	$ 19,421	93,849	34,275	147,545
Insurance expense	2,337	6,536	4,315	13,188
Depreciation	-	6,524	5,383	11,907
Import/export expense	2,882	3,482	588	6,952
Consumables	-	-	29,977	29,977
Material expense	-	-	8,727	8,727
Mold expense	-	-	7,033	7,033
Labor expense	6,709	6,264	411	13,384
Commissions expense	3,685	-	-	3,685
Other (Note)	8,525	60,204	15,802	84,531
Total	$ 43,559	176,859	106,511	326,929

Note: The amount of each of other items is less than 5% of the total amount of this subject.

Statement of Other Gains and Losses, Net

Please refer to Note 6(21) for the relevant information.

~76~

AI assistant

G-TECH — Audit Report / Information 2026

52299_rns_2026-05-13_c0c26f26-009d-411e-9e6f-5d3c13371f3a.pdf

Audit opinion

Basis for Opinion

Key Audit Matters

II. Investment Property Fair Value Evaluation

Description of Key Audit Matters:

Corresponding Audit Procedures:

Responsibilities of Management and Those Charged with Governance for the Unconsolidated Financial Statements

Auditor’s Responsibilities for the Audit of the Unconsolidated Financial Statements

G-TECH Optoelectronics Corporation

Statements of Comprehensive Income

G-TECH Optoelectronics Corporation

Statement of Changes In Equity

IV. Summary of Significant Accounting Policies

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

(III) Foreign currency

1. Foreign currency transaction

2. Foreign operation

(IV) Classification of current and non-current assets and liabilities

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

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Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

1. Lessee

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3. Amortization

(XIV) Impairment of Non-financial Assets

(XV) Acquisition of a group of assets not related to a business.

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

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V. Critical Accounting Judgments and Key Sources of Estimation Uncertainty

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

VI. Description of Significant Accounts

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(VIII) Investment Property

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

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(XIII) Operating lease

(XIV) Employee benefits

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

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2. Capital surplus

3. Retained earnings

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

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VII. Related party transaction

(I) Names and relationship with related parties

(II) Significant transactions with related parties

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

Notes to the G-TECH Optoelectronics Corporation parent company only financial statements (continued)

XIV. Segment Information

More from G-TECH

G-TECH Audit Report / Information 2026