Stock Code: 4952

Generalplus Technology Inc.

Parent Company Only Financial Statements and Independent Auditors’ Report

For the Years Ended December 31, 2025 and 2024

Address: No. 19, Industry E. Rd. IV, Hsinchu Science Park, Hsinchu City

Tel: 886-3-6662118

§CONTENTS§

ITEM		PAGE	NOTE NO.
1.	COVER	1	-
2.	TABLE OF CONTENTS	2	-
3.	ACCOUNTANT’S AUDIT REPORT	3~6	-
4.	PARENT COMPANY ONLY BALANCE SHEET	7	-
5.	PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME	8~9	-
6.	PARENT COMPANY ONLY STATEMENT OF CHANGES IN EQUITY	10	-
7.	PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS	11~12	-
8.	PARENT COMPANY ONLY FINANCIAL STATEMENT NOTES
(1)	COMPANY HISTORY	13	1
(2)	THE DATE WHEN THE FINANCIAL REPORTS WERE AUTHORIZED FOR ISSUANCE AND THE PROCESS INVOLVED	13	2
(3)	APPLICABILITY OF NEW ISSUING & REVISED STANDARDS AND INTERPRETATION	13~16	3
(4)	SUMMARY AND EXPLANATION OF MATERIAL ACCOUNTING POLICIES	16~27	4
(5)	PRIMARY SOURCES OF UNCERTAINTY IN MAJOR ACCOUNTING JUDGMENTS, ESTIMATES, AND ASSUMPTIONS	27	5
(6)	DESCRIPTION OF SIGNIFICANT ACCOUNTING ITEMS	27~53	6~28
(7)	TRANSACTION WITH RELATED PARTIES	53~55	29
(8)	PLEDGED ASSETS	55	30
(9)	SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACTUAL COMMITMENTS	55~56	31
(10)	SIGNIFICANT DISASTER LOSSES	-	-
(11)	SIGNIFICANT SUBSEQUENT EVENTS	-	-
(12)	INFORMATION ON FOREIGN CURRENCY ASSETS AND LIABILITIES WITH SIGNIFICANT IMPACT	56	32
(13)	NOTE DISCLOSURE
	1. INFORMATION ON MATERIAL TRANSACTIONS	57; 58~59	33
	2. INFORMATION ABOUT THE INVESTMENT BUSINESS	57; 60	33
	3. INFORMATION OF INVESTMENT FROM MAINLAND CHINA	57; 61~62	33
(14)	DEPARTMENTAL INFORMATION	-	-
9.	STATEMENTS OF MAJOR ACCOUNTING ITEMS	63~77	-

Independent Auditor’s Report

The Board of Directors and Shareholders
Generalplus Technology Inc.

Audit opinion

We have audited the parent company only balance sheets of Generalplus Technology Inc. as of December 31, 2025 and 2024, and the parent company only statements of comprehensive income, changes in equity, cash flows, and accompanying notes (including significant accounting policies) for the years ended December 31, 2025 and 2024.

In our opinion, the parent company only financial statements referred to above present fairly, in all material respects, the financial position of Generalplus Technology Inc. as of December 31, 2025 and 2024, and the 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 the audit opinion

We conducted our audit in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and Generally Accepted Auditing Standards. Our responsibility under those standards is further described in the auditor’s responsibility section of our auditor’s report. The personnel of our firm who are subject to the rules of independence have complied with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China and have maintained their independence from Generalplus Technology Inc. We believe that we have obtained sufficient and appropriate audit evidence to provide a basis for our audit opinion.

Key audit matters

The key audit matters refer to the matters that, in the auditor’s professional judgment, were of most significance in the audit of the parent company only financial statements of Generalplus Technology Inc. for the year ended December 31, 2025. These matters were addressed in the

context of the audit of the parent company only financial statements as a whole, and we do not represent the separate opinion on these matters.

The key audit matters for the parent company only financial statements of Generalplus Technology Inc. for the year ended December 31, 2025 are described below:

Revenue from specific products

Sales revenue transactions of Generalplus Technology Inc. is subject to a risk of occurrence. Sales to specific products with significant transaction amounts and growth in sales revenue pose higher risks to the recognition of revenue. Therefore, this matter has been identified as a key audit matter by the auditor. Please refer to Note 4 and 22 for further details.

The auditor’s procedures for this include:

The auditor understands the relevant internal control system and operating procedures related to the sales transaction cycle to confirm and evaluate whether the internal control operations related to sales transactions are effective.
The auditor selects samples from sales details, examines customer original orders, sales delivery notes, shipping notes, outsourcing factory shipping notices or logistics receipt documents or export declarations, and sales invoices to confirm the authenticity of revenue occurrence by checking for abnormal receipts from sales and payment objects.

Responsibilities of management and directors for the parent company only financial statements

Management’s responsibility is to prepare the parent company only financial statements present fairly, in all material respects, according to Regulations Governing the Preparation of Financial Reports by Securities Issuers as well as maintain necessary internal control related to the preparation of the parent company only financial statements in order to ensure there is no major untrue expression on the financial statements due to fraud or error.

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

The responsibilities of the governing body (including the audit committee) include overseeing the financial reporting process of Generalplus Technology Inc.

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

Our objectives are to obtain reasonable assurance about whether the parent company only financial statements as a whole are free from material misstatement, whether due to fraud or

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

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

Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for audit opinions. Because fraud may be related to conspiracy, forgery, deliberate omission, false statement or breach of internal control, the risk of a material misstatement caused by fraud which is not identified is higher than the risk of a material misstatement caused by any error.
Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the internal control effectiveness of Generalplus Technology Inc.
Assess the appropriateness of management’s use of accounting policies and the reasonability of the accounting estimate and relevant disclosure.
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 Generalplus Technology Inc. to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause Generalplus Technology Inc. to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the parent company only financial statements (including the relevant notes), and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
5 -

We have obtained sufficient and appropriate evidence to audit the parent company only financial information of Generalplus Technology Inc. to express an opinion on the parent company only financial statements. We are responsible for the guidance, supervision and execution of the audit and for forming an audit opinion on Generalplus Technology Inc.

We communicate with the governing body regarding, among other matters, the planned scope and timing of the audit and significant audit findings (including any significant deficiency in internal controls that we identify during our audit).

We have also provided the governing body with a statement that the independence-regulated personnel of the firm to which we are affiliated have complied with the Code of Ethics for Professional Accountants with respect to independence, and communicate with the governing body about all relationships and other matters (including related protective measures) that may be considered to affect the accountant's independence.

We have determined the key audit matter for the audit of the Parent Company Only Financial Statements of Generalplus Technology Inc. for the year ended December 31, 2025 from the communications we have had with the governing body. We identified such matter in our auditor's report, except for those matters that are not permitted by law to be disclosed publicly or, in the rarest of circumstances, we decided not to communicate those matters in our auditor's report because we reasonably could expect the negative effect of such communication to outweigh the public interest.

The engagement partners on the audits resulting in this independent auditors' report are Tung Hui Yeh and Ya Yun Chang

Deloitte & Touche
Taipei, Taiwan
Republic of China
February 25, 2026

Notices to Readers

The accompanying parent company only financial statements are intended only to present the parent company only financial position, financial performance, and its cash flows in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the International Financial Reporting Standards, International Accounting Standards, interpretations as well as related guidance endorsed by the Financial Supervisory Commission of the Republic of China. The standards, procedures and practices to audit such parent company only financial statements are those generally accepted and applied in the Republic of China.

The independent auditors' report and the accompanying parent company only financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of, the English and Chinese language independent auditors' report and parent company only financial statements, the Chinese version shall prevail.

Generalplus Technology Inc.
Parent Company Only Balance Sheet
At Dec. 31, 2025 and Dec. 31, 2024
Unit: NT$ thousands

Code	Assets	Dec. 31, 2025		Dec. 31, 2024		Code	Liabilities and Equity	Dec. 31, 2025		Dec. 31, 2024
		Amount	%	Amount	%			Amount	%	Amount	%
Current assets
1100	Cash and cash equivalents (Note 4 and 6)	$ 805,331	29	$ 831,694	29	2100	Short-term loans (Note 17)	$ 127,291	5	$ 75,078	2
1110	Financial assets measured at FVTPL-current (Note 4 and 7)	70,167	3	164,288	6	2170	Accounts payable (Note 18 and 29)	151,239	5	149,836	5
1170	Notes and accounts receivable (Note 4,10 and 29)	352,278	13	389,401	13	2220	Other payables-Related parties (Note 29)	17,243	1	23,853	1
1220	Current tax assets (Note 4 and 24)	8,575	-	-	-	2230	Current income tax liabilities (Note 4 and 24)	33,692	1	50,761	2
130X	Inventories (Note 4 and 11)	466,083	17	520,025	18	2300	Other payable assets (Note 4 and 14)	748	-	759	-
1470	Other current assets (Note 4 and 16)	11,648	1	11,896	-	21XX	Other current liabilities (Note 19 and 22)	139,185	5	202,751	7
11XX	Total current assets	1,714,082	63	1,917,304	66		Total current liabilities	469,398	17	503,038	17
Non-current assets
1535	Financial assets measured at amortized cost are assets (Note 4,8 and 9)	100,329	4	50,258	2	2580	Lease liabilities - non-current (Note 4 and 14)	28,564	1	30,492	1
1550	Investment accounted for using the equity method (Note 4 and 12)	576,393	21	566,585	19	2640	Net defined benefit liability (Note 4 and 20)	13,290	1	13,013	1
1600	Property, plant and equipment(Note 4 and 13)	207,345	7	190,510	6	2645	Guarantee deposits	114,941	4	118,210	4
1755	Right-of-use assets (Note 4 and 14)	27,175	1	29,359	1	25XX	Total non-current liabilities	156,795	6	161,715	6
1780	Intangible assets (Note 4 and 15)	25,032	1	17,265	1	2XXX	Total liabilities	626,193	23	664,753	23
1840	Deferred tax assets (Note 4 and 24)	21,050	1	25,627	1
1990	Other non-current assets (Note 4, 16, 30 and 31)					Equity (Note 4 and 21)
		68,121	2	111,642	4	3110	Share capital
15XX	Total non-current assets	1,025,445	37	991,246	34	3200	Common shares	1,088,158	40	1,088,158	37
						3200	Capital surplus	141,967	5	141,967	5
						3310	Retained earnings
						3320	Legal reserve	596,981	22	571,814	20
						3350	Special reserve	35,993	1	55,438	2
						3300	Unappropriated retained earnings	283,929	10	422,413	14
						3300	Total retained earnings	916,903	33	1,049,665	36
						3400	Other equity-other	( 33,694 )	( 1 )	( 35,993 )	( 1 )
						3XXX	Total equity	2,113,334	77	2,243,797	77
1XXX	Total assets	$ 2,739,527	100	$ 2,908,550	100		Total liabilities and equity	$ 2,739,527	100	$ 2,908,550	100

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

Generalplus Technology Inc.
Parent Company Only Statements of Comprehensive Income
From Jan. 1 to Dec. 31, 2025 and from Jan. 1 to Dec. 31, 2024
Unit: NT$ thousands
Except the earnings per share is in NT$

Code		2025		2024
		Amount	%	Amount	%
4000	Operating revenue(Note 4, 22 and 29)	$ 2,020,747	100	$ 2,359,785	100
5000	Operating costs (Note 4, 11, 23 and 29)	1,341,747	66	1,491,550	63
5900	Gross profit	679,000	34	868,235	37
5910	Unrealized sales profit with subsidiaries	( 1,299 )	-	( 2,547 )	-
5950	Realized gross profit from operations	677,701	34	865,688	37
	Operating expense(Note 15, 20, 23 and 29)
6100	Selling and marketing	75,645	4	87,978	4
6200	General and administration	91,946	5	103,028	4
6300	Research and development	425,193	21	448,691	19
6000	Total operating expenses	592,784	30	639,697	27
6900	Income from operations	84,917	4	225,991	10
	Non-operating Income and expenses (Note 4 and 23)
7100	Interest income	14,214	1	12,017	-
7010	Other income	36,662	2	1,719	-
7020	Other gains and losses	( 7,261 )	-	14,596	1
7050	Financial costs	( 10,552 )	(1)	( 14,352 )	(1)
7070	Investment income recognized under equity method	8,808	-	13,881	1
7000	Non-operating income and expenses, net	41,871	2	27,861	1

(Continued on the next page)

(Continued from previous page)

Code		2025		2024
		Amount	%	Amount	%
7900	Net profit before income tax	$ 126,788	6	$ 253,852	11
7950	Income tax expense(Note 4 and 24)	14,437	-	6,965	1
8200	Net profit for the period	112,351	6	246,887	10
	Other comprehensive income(Note 4, 20 and 21)
8310	Items that will not be reclassified subsequently to profit or loss:
8311	Remeasurements of defined benefit plan	( 277 )	-	4,783	-
8360	Items that may be reclassified subsequently to profit or loss:
8380	Share of other comprehensive income of subsidiaries accounted for using the equity method	2,299	-	19,445	1
8300	Other comprehensive income (net of income tax) for the year	2,022	-	24,228	1
8500	Total other comprehensive income for the period	$ 114,373	6	$ 271,115	11
	Earnings per share(Note 25)
9750	Basic	$ 1.03		$ 2.27
9850	Diluted	$ 1.03		$ 2.25

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

Generalplus Technology Inc.
Parent Company Only Statement of Changes in Equity
From Jan. 1 to Dec. 31, 2025 and from Jan. 1 to Dec. 31, 2024
Units: In NT$1,000,
unless otherwise stated

Code		Share capital			Retained earnings			Other equity
		Number of shares (1,000 shares)	Amount	Capital surplus	Legal reserve	Special reserve	Unappropriated retained earnings	Exchange difference on translation of the financial statements of foreign operations	Total equity
A1	Balance as of Jan. 1, 2024	108,816	1,088,158	141,967	555,006	45,462	338,987	( 55,438 )	2,114,142
	Appropriation and distribution of earnings, 2023
B1	Legal reserve	-	-	-	16,808	-	( 16,808 )	-	-
B3	Special reserve	-	-	-	-	9,976	( 9,976 )	-	-
B5	Cash dividends for the shareholders of the Company	-	-	-	-	-	( 141,460 )	-	( 141,460 )
D1	Net income for 2024	-	-	-	-	-	246,887	-	246,887
D3	Other comprehensive income after income tax, 2024	-	-	-	-	-	4,783	19,445	24,228
D5	The total comprehensive income in 2024	-	-	-	-	-	251,670	19,445	271,115
Z1	Balance as of Dec. 31, 2024	108,816	1,088,158	141,967	571,814	55,438	422,413	( 35,993 )	2,243,797
	Appropriation and distribution of earnings, 2024
B1	Legal reserve	-	-	-	25,167	-	( 25,167 )	-	-
B5	Cash dividends for the shareholders of the Company	-	-	-	-	-	( 244,836 )	-	( 244,836 )
B17	Reversal of special reserve	-	-	-	-	( 19,445 )	19,445	-	-
D1	Net income for 2025	-	-	-	-	-	112,351	-	112,351
D3	Other comprehensive income after income tax, 2025	-	-	-	-	-	( 277 )	2,299	2,022
D5	The total comprehensive income, 2025	-	-	-	-	-	112,074	2,299	114,373
Z1	Balance as of Dec. 31, 2025	108,816	$ 1,088,158	$ 141,967	$ 596,981	$ 35,993	$ 283,929	($ 33,694 )	$ 2,113,334

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

10 -

Generalplus Technology Inc.
Parent Company Only Statements of Cash Flows
From Jan. 1 to Dec. 31, 2025 and from Jan. 1 to Dec. 31, 2024
Unit: NT$ thousands

Code	Cash flow from operating activities	2025	2024
A10000	Net profit before income tax	$ 126,788	$ 253,852
A20010	Adjustments to reconcile profit (loss):
A20100	Depreciation expense	42,945	47,096
A20200	Amortization expense	33,856	24,618
A20400	Net gain on fair value changes of financial assets at FVTPL	( 1,308 )	( 1,492 )
A20900	Financial costs	10,552	14,352
A21200	Interest income	( 14,214 )	( 12,017 )
A22400	Investment income recognized under equity method	( 8,808 )	( 13,881 )
A23800	Gain from price recovery of inventory	( 20,000 )	( 1,000 )
A23900	Unrealized sales profit with subsidiaries	1,299	2,547
A24100	Net loss(gain) on foreign currency exchange	943	( 26 )
A30000	Net changes in operating assets and liabilities
A31150	Decrease( increase) in notes receivable and accounts receivable	41,386	( 20,424 )
A31200	Decrease in inventories	73,942	57,492
A31240	Decrease( increase) in other current assets	838	( 1,298 )
A32150	Increase (decrease) in accounts payable	566	( 17,922 )
A32190	Decrease in other payables—related parties	( 6,761 )	( 195 )
A32230	Increase (decrease) in other current liabilities	( 60,837 )	573
A32240	Increase in net defined benefit liabilities	-	79
A33000	Cash from operating activities	221,187	332,354
A33100	Interest received	13,698	11,678
A33300	Interest paid	( 11,976 )	( 14,058 )
A33500	Income taxes paid	( 35,504 )	( 41,667 )
AAAA	Net cash inflow from operating activities	187,405	288,307
	Cash flow from investing activities
B00040	Purchase of financial assets at AC	( 50,145 )	( 50,265 )
B00100	Purchase of financial assets at FVTPL	( 135,000 )	( 288,000 )
B00200	Sale of financial assets at FVTPL	230,429	188,828

(Continued on the next page)

11 -

(Continued from the previous page)

Code		2025	2024
B02700	Purchase of property, plant and equipment	($ 43,220)	($ 30,216)
B03700	Increase in refundable deposits	( 500)	( 803)
B03800	Decrease in refundable deposits	20,039	24,965
B04500	Acquisition of intangible assets	( 42,954)	( 29,497)
B06700	Increase in other non-current assets	( 108)	-
B06800	Decrease in other non-current assets	-	2,183
BBBB	Net cash inflow (outflow) from investing activities	( 21,459)	( 182,805)
	Cash flow from financing activities
C00100	Increase in short-term loans	1,115,175	1,107,846
C00200	Decrease in short-term loans	( 1,062,753)	( 1,061,611)
C03000	Proceeds from guarantee deposits received	3,911	3,714
C03100	Return of guarantee deposits received	( 2,309)	( 12,896)
C04020	Repayment of lease liabilities	( 729)	( 741)
C04500	Issuance of cash dividends	( 244,836)	( 141,460)
CCCC	Net cash outflow from financing activities	( 191,541)	( 105,148)
DDDD	Effect of the changes in exchange rate on cash and cash equivalents	( 768)	( 181)
EEEE	Net Increase (decrease) in cash and cash equivalents	( 26,363)	173
E00100	Beginning balance of cash and cash equivalents	831,694	831,521
E00200	Ending balance of cash and cash equivalents	$ 805,331	$ 831,694

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

Generalplus Technology Inc.
Parent Company Only Financial Statement Notes
For the Years Ended 31 December 2025 and 2024
(Unless otherwise specified, the basic unit for any amount shall be NT$ thousands.)

COMPANY HISTORY

Generalplus Technology Inc. (hereinafter referred to as “the Company”) was established on March 30, 2004 and was approved by the Ministry of Economic Affairs. The Company moved to the Hsinchu Science Park in October 2007, and its main business includes research, development, design, manufacturing, and sales of high-end integrated circuit products. The Company’s stock was listed on the Taiwan Stock Exchange on November 1, 2011.

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

THE DATE WHEN THE FINANCIAL REPORTS WERE AUTHORIZED FOR ISSUANCE AND THE PROCESS INVOLVED

The parent company only financial statements were approved by the board of directors on February 25, 2026.

APPLICABILITY OF NEWLY ISSUED & REVISED STANDARDS AND INTERPRETATION

(1) First-time application of International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), Interpretations (IFRIC) and Standing Interpretations Committee (SIC) as recognized and issued by the Financial Supervisory Commission (FSC) and effective for the current fiscal year.

Amendments to IAS 21 “Lack of Exchangeability”

The application of the Amendments to IAS 21 “Lack of Exchangeability” will not result in any significant change in the accounting policies of the Company.

(2) IFRSs recognized by the FSC applicable in 2026

New/amended/revised standards and interpretations	Effective date published by IASB (Note 1)
Amendments to IFRS 9 and IFRS 7 “Amendments to the Classification and Measurement of Financial Instruments”	Jan. 1,2026
Amendments to IFRS 9 and IFRS 7 “Contracts Referencing Nature-dependent Electricity”	Jan. 1,2026

Annual Improvements to IFRS Accounting Standards-Volume 11
Jan. 1,2026

IFRS 17 “Insurance Contracts” (Including the revisions for 2020 and 2021)
Jan. 1,2023

As of the date the separate financial statements were authorized for issue, the Company has assessed that the above amendments to the standards will not have a material impact on its financial position and financial performance.

(3) IFRSs announced by IASB but have not been approved as effective by the FSC

New/amended/revised standards and interpretations	Effective date published by IASB (Note 1)
Amendments to IFRS 10 and IAS 28 - “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”	To be determined.
IFRS 18 “Presentation and Disclosures in Financial Statements”	Jan. 1, 2027
IFRS 19 “Subsidiaries without Public Accountability Disclosures Standard” (Including the revisions for 2025)	Jan. 1, 2027
Amendments to IAS 21 “Translation to a presentation currency of a hyperinflationary economy”	Jan. 1, 2027

Note 1: Unless otherwise indicated, the above newly issued/ revised/ amended guidelines or interpretations are effective for annual reporting periods beginning on or after the respective dates.

Note 2: On September 25, 2025, the Financial Supervisory Commission (FSC) announced that IFRS 18 shall be applied by domestic companies starting January 1, 2028. Early adoption is permitted upon the FSC’s endorsement of IFRS 18.

IFRS 18 “Presentation and Disclosures in Financial Statements”

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

The Company shall assess whether it has specific main business activities of investing in certain types of assets and providing financing to customers, and accordingly classify the income and expense items in the statement of profit or loss into operating, investing, financing, income tax, and discontinued operations categories.
The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss.
14 -

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

In addition, the following consequential amendments have been made to IAS 7 Statement of Cash Flows:

When the Company prepares cash flows from operating activities using the indirect method, operating profit or loss shall be used as the starting point for reconciliation.
Interest and dividends received by the Company shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. If the Company, upon assessment, determines that it has specific main business activities, it shall consider the categories in which dividend income, interest income, and interest expense are presented in the statement of profit or loss to determine the classification of dividends received, interest received, and interest paid in the statement of cash flows. However, each of the aforementioned cash flows shall be classified in only one category of the statement of cash flows.

In addition to the above effects, as of the date of issuance of the separate financial statements, the Company continues to assess the impact of revisions to other standards and interpretations on its financial position and financial

15 -

performance, and any such impacts will be disclosed when the assessment is completed.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Statement of Compliance

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

(2) Basis of Preparation

The parent company only financial statements have been prepared on the historical cost basis, except for financial instruments carried at fair value and net defined benefit liabilities recognized at the present value of the defined benefit obligation less the fair value of plan assets.

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

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

In preparing the parent company only financial statements, the Company applies the equity method to its investments in subsidiaries. In order to make the profit or loss for the year, other comprehensive income and equity in the parent company only financial statements the same as the profit or loss for the year, other comprehensive income and equity attributable to the owners of the Company in the consolidated financial statements, certain accounting differences between the parent company only basis and the consolidated basis are adjusted for "investments accounted for under the equity method", "share of profit or loss of subsidiaries accounted for under the equity method", "share of other comprehensive income or loss of subsidiaries accounted for under the equity method" and related equity items.

(3) Standard in determining whether the asset or liability are current or non-current

Current assets include:

16 -

assets held mainly for transaction purposes;
assets to be realized within 12 months of the asset balance sheet; and
cash and cash equivalents (but not including cash used to exchange or clear liability within 12 months of the asset balance sheet).

Current liabilities include:
1. liabilities held mainly for transaction purposes;
2. liabilities due for payment within 12 months after the balance sheet date (current liabilities are classified as current even if a long-term refinancing or rescheduling agreement is completed after the balance sheet date and before the adoption of the financial statements); and
3. The liabilities on the balance sheet date does not have an substantive right to defer settlement of the liability for at least 12 months after the balance sheet date.

Assets or liabilities not classified within the above definitions will be classified as non-current assets and liabilities.

(4) Foreign currency

When preparing parent company only financial statements, the Company translates transactions in currencies other than the functional currency of the Company (foreign currencies) into the functional currency at the exchange rates prevailing on the transaction dates.

Monetary items denominated in foreign currencies are translated at the closing rate at each balance sheet date. Exchange differences arising from the settlement of monetary items or the translation of monetary items are recognized in profit or loss in the period in which they occur.

Non-monetary items measured at fair value in foreign currencies are translated at the exchange rates prevailing on the date when the fair value was determined, and the resulting exchange differences are recognized in profit or loss in the current period. However, if the change in fair value is recognized in other comprehensive income, the resulting exchange differences are recorded as other comprehensive income.

Non-monetary items denominated in foreign currencies that are measured at historical cost are translated at the exchange rates ruling at the dates of transactions and are not retranslated.

For the purpose of preparing parent company only financial statements, assets and liabilities of foreign operations (including subsidiaries that operate in countries or

17 -

currencies different from those of the Company) are translated into New Taiwan Dollars at the exchange rates prevailing on each balance sheet date. Income and expense items are translated at the average exchange rate for the period and the resulting exchange differences are included in other comprehensive income.

(5) Inventory

Inventory includes raw materials, finished goods, work-in-process and merchandise. Inventories are measured at the lower of cost or net realizable value. Comparisons between cost and net realizable value are made on an item-by-item basis, except for inventories of the same type. Net realizable value is the estimated selling price under normal circumstances, less estimated costs to complete and estimated costs to sell. The cost of inventories is calculated using the weighted-average method.

(6) Investment in subsidiary

The Company uses the equity method to account for its investment in subsidiaries. A subsidiary refers to an entity that the Company controls.

According to the equity method, the Company recognizes the investment at its initial cost and subsequently adjusts the carrying amount based on its share of the subsidiary's profit or loss and other comprehensive income, as well as any dividend distributions. Moreover, changes in the subsidiary's other equity, which the Company can benefit from, are recognized in proportion to its ownership percentage.

When assessing impairment, the Company considers the cash-generating unit as a whole and compares its recoverable amount with its carrying amount. If the recoverable amount of an asset increases, the reversal of the impairment loss is recognized as a gain. However, the carrying amount of an asset after the reversal of the impairment loss cannot exceed the carrying amount of the asset before recognizing the impairment loss, less any amortization charged.

(7) Property, plant and equipment

Property, plant, and equipment are recognized at cost and subsequently measured at the amount after deducting accumulated depreciation.

Depreciation is calculated using the straight-line method over the useful life of the asset, and each significant portion is separately depreciated. The Company reviews the estimated useful life, residual value, and depreciation method at the end of each fiscal year and defers the impact of accounting estimate changes.

18 -

The difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss when property, plant, and equipment are derecognized.

(8) Intangible assets

Acquired separately

When the Company acquires intangible assets with limited useful lives separately, it recognizes them initially at cost and subsequently measures them at cost less accumulated amortization. The amortization is recognized on a straight-line basis over the useful life of the intangible asset. To ensure the accuracy of the accounting estimates, the Company reviews the estimated useful lives, residual values, and amortization methods at the end of each fiscal year and defers the impact of any changes in accounting estimates.

Derecognition

The difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss of the year when intangible assets are derecognized.

(9) Impairment of property, plant and equipment, right-of-use assets and intangible assets

The Company evaluates on each balance sheet date whether there are any indications that the carrying amounts of its property, plant and equipment, right-of-use assets and intangible assets may be impaired. If any indication of impairment exists, the estimated recoverable amount of the asset is determined. If it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. For jointly-used assets, they are allocated to the individual cash-generating units on a rational and consistent basis.

The recoverable amount is the higher fair value less selling cost and use value. If the recoverable amount of an individual asset or cash generating unit is less than its carrying amount, the carrying amount of the asset or cash generating unit shall be reduced to its recoverable amount, with the impairment loss recognized in profit or loss.

When the following recoverable amount increases, the carrying amount of the asset or cash generating unit increases to the amount that can be recovered after the revision. However, the increased carrying amount shall not exceed that (minus

19 -

amortization or depreciation) determined by the asset or cash generating unit where the impairment loss was not recognized in the previous year. The reversal of impairment loss is recognized in profit or loss.

(10) Financial instruments

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

On initial recognition, financial assets and financial liabilities that are not measured at fair value through profit or loss are measured at fair value plus transaction costs that are directly attributable to the acquisition or issuance of the financial assets or financial liabilities. Transaction costs directly attributable to the acquisition or issue of financial assets or financial liabilities measured at fair value through profit or loss are recognized immediately in profit or loss.

Financial assets

The transaction practice of the financial assets adopts accounting recognition and de-recognition on the transaction day.

(1) Measurement types

The types of financial assets held by the Company are financial assets at fair value through profit or loss and financial assets at amortized cost.

A. Financial assets measured at FVTPL

Financial assets measured at FVTPL include financial assets mandatorily measured at FVTPL. Financial assets mandatorily classified as at FVTPL include investments in equity instruments which are not designated as at FVTOCI.

Financial assets measured at fair value through profit or loss are measured at fair value, with remeasurement gains or losses recognized in other gains and losses. For the determination of fair value, please refer to Note 28.

B. Financial assets at amortized cost

The Company's investments in financial assets are classified as financial assets measured at amortized cost if both of the following conditions are met:

a. they are held within an operating model whose objective is to hold the financial assets to collect the contractual cash flows; and

20 -

b. the contractual terms give rise to cash flows at a specific date, which are solely payments of principal and interest on the principal amount outstanding.

Financial assets measured at amortized cost (including cash and cash equivalents, debt instrument investments, accounts receivable measured at amortized cost, other receivables, refundable deposits, and restricted assets) are measured at amortized cost less any impairment losses, determined using the effective interest method, after the original recognition. Any foreign exchange gains or losses are recognized in profit or loss.

Interest income is calculated by multiplying the effective interest rate by the total carrying amount of the financial assets, except in the following two cases:

a. Interest income on credit-impaired financial assets acquired or created is calculated by multiplying the credit-adjusted effective interest rate by the amortized cost of the financial assets.

b. Interest income on credit-impaired financial assets that are not acquired or originated but subsequently become credit-impaired is computed using the effective interest rate multiplied by the amortized cost of the financial assets from the next reporting period after the impairment.

A credit-impaired financial asset is one for which the issuer or the debtor has experienced significant financial difficulties, defaulted, it is probable that the debtor will declare bankruptcy or other financial reorganization, or an active market for the financial asset has disappeared due to financial difficulties.

Cash equivalents include time deposits that are highly liquid, readily convertible into known amounts of cash and subject to a low risk of changes in value within 3 months from the date of acquisition and are used to meet short-term cash commitments.

(2) Impairment of financial assets

The Company evaluates the impairment losses of financial assets measured at amortized cost (including accounts receivable) on each balance sheet date based on expected credit losses.

21 -

An allowance for credit losses is recognized for accounts receivable based on the expected credit losses over the remaining period. For other financial assets, the credit risk is assessed to determine whether there has been a significant increase since the initial recognition. If there is no significant increase, an allowance is recognized for 12-month expected credit losses. If there is a significant increase, an allowance is recognized for expected credit losses over the remaining period.

The expected credit losses are the weighted average of credit losses based on the probability of default. The 12-month expected credit losses represent the expected credit losses from possible defaults within 12 months after the reporting date, while the expected credit losses over the remaining period represent the expected credit losses from possible defaults during the expected remaining period of the financial assets.

For internal credit risk management purposes, the Company determines that a financial asset has defaulted without considering the collateral held if any of the following conditions exist:

A. Internal or external information shows that the debtor is unlikely to settle its debts.

B. The payment is overdue by more than 30 days unless there is reasonable and demonstrable information indicating that a later default criterion is more appropriate.

The impairment losses of all financial assets are adjusted through an allowance account to reduce their carrying amounts.

(3) Derecognition of financial assets

The Company derecognizes financial assets only when the contractual rights to the cash flows from the financial assets have lapsed or when the financial assets have been transferred and substantially all the risks and rewards of ownership of the assets have been transferred to other enterprises.

When financial assets are derecognized in their entirety at amortized cost, the difference between the carrying amount and the consideration received is recognized in profit or loss.

Equity instruments
22 -

The equity instruments issued by the Company are classified as financial liabilities or equity instruments based on the substance of the contractual agreement and the definition of equity instruments.

The amount received for the equity instruments issued by the Company is recognized by deducting the directly attributable costs of the issue.

Financial liabilities

(1) Subsequent measurement

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

(2) Derecognition of financial liabilities

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

(11) Provision for liabilities

The amount recognized as provision for liabilities is the best estimate of the amount required to settle the obligation as of the balance sheet date, taking into account the risks and uncertainties associated with the obligation. The provision for liabilities is measured using the discounted value of the estimated cash flows required to settle the obligation.

(12) Revenue recognition

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

Revenue from sales of goods

Revenue from sales of goods comes from sales of integrated circuit (IC) products. Since customers have already established the price and the right to use the product, and assume the primary responsibility for resale and the risk of obsolescence when the IC products are shipped or delivered to the customer's designated location, the Company recognizes revenue and accounts receivable at that point in time.

Revenue is not recognized when materials are removed for processing because control of the processed product has not been transferred.

(13) Leasing

On the contract establishment date, the Company evaluates whether the contract is a lease (or contains a lease).

23 -

The Company as a lessee:

For leases other than low-value and short-term leases that qualify for recognition exemptions, lease payments are recognized as expenses on a straight-line basis over the lease term. For all other leases, the right-of-use asset and lease liability are recognized on the lease commencement date.

The right-of-use asset is initially measured at cost, which includes the initial measurement of the lease liability, any lease payments made before the lease commencement date less any lease incentives received, initial direct costs, and estimates of the costs of dismantling and removing the underlying asset. Subsequently, it is measured at cost less accumulated depreciation and impairment losses, and adjusted for any remeasurement of the lease liability. The right-of-use asset is presented separately on the balance sheet as an individual asset.

Depreciation is recognized on a straight-line basis over the shorter of the lease term and the asset's useful life.

The lease liability is initially measured at the present value of lease payments, including payments that depend on an index or rate. If the implicit interest rate is readily determinable, the lessee uses that rate to discount the lease payments. If not, the lessee uses its incremental borrowing rate.

Subsequently, the lease liability is measured at amortized cost using the effective interest method, and interest expense is recognized over the lease term. If changes in the lease term or the index or rate used to determine lease payments result in changes to future lease payments, the lease liability is remeasured, and the right-of-use asset is correspondingly adjusted. However, if the carrying amount of the right-of-use asset has been reduced to zero, any remaining remeasurement amount is recognized in profit or loss. The lease liability is presented separately on the balance sheet as an individual liability.

(14) Borrowing costs

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

(15) Government grants

Government grants are recognized only when it is reasonable to believe that the Company will comply with the conditions attached to the grants and the grants will be received.

24 -

Government grants related to income are recognized systematically in the income statement over the period necessary to match them with the related costs that they are intended to compensate.

If a government grant is used to compensate for expenses or losses that have already occurred, or is intended to provide immediate financial support to the Company with no future related costs, it is recognized in the income statement in the period in which it becomes receivable.

(16) Employee benefits

Short-term employee benefits

Short-term employee benefits related liabilities are measured at the non-discounted amount expected to be paid in exchange for employee services.

Post-employment benefits

The defined retirement benefits provided by the Company’s retirement plan are recognized as expenses in the amount of retirement benefits that should be allocated during the period of employee service.

The defined benefit cost of the defined benefit retirement plan (including service cost, net interest, and re-measurement amounts) is calculated using the projected unit credit method. Service costs (including current service costs) and net defined benefit liabilities (assets) net interest are recognized as employee benefit expenses when they occur. Re-measurement amounts (including actuarial gains and losses and plan asset returns after deducting interest) are recognized in other comprehensive income when they occur and included in retained earnings, and are not reclassified to profit or loss in subsequent periods.

Net defined benefit liabilities (assets) refer to the remaining balance of the provision for the defined benefit retirement plan. The net defined benefit assets cannot exceed the present value of the plan’s refundable contributions or the reduced future contributions.

(17) Income tax

Income tax expense is the sum of current income taxes and deferred income taxes.

Current income tax

The Company determines the current income (loss) in accordance with the regulations of each jurisdiction in which it files income tax returns and calculates the income tax payable (recoverable) accordingly.

25 -

The income tax on undistributed earnings under the Income Tax Act of the ROC is recognized in the year of the resolution of the shareholders' meeting.

Adjustments to prior years' income tax payable are included in the current period's income tax.

Deferred income tax

Deferred income tax is calculated based on the temporary differences between the carrying amount of assets and liabilities on the books and the basis for the calculation of taxable income.

Deferred tax liabilities are generally recognized for all temporary differences in taxable income, while deferred tax assets are recognized when there is a high likelihood that the taxable income will be used as a tax deduction for deductible temporary differences.

Deferred income tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries, except where the Company can control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred income tax assets are recognized for deductible temporary differences associated with such investments only to the extent that it is probable that sufficient taxable income will be available to allow the temporary differences to be realized and the temporary differences are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced for those where it is no longer probable that there will be sufficient taxable income to allow all or part of the assets to be recovered. Deferred tax assets not previously recognized as such are also reviewed at each balance sheet date and the carrying amount is increased for those where it is probable that taxable income will be available to recover all or part of the assets.

Deferred tax assets and liabilities are measured by the tax rate of the expected liabilities settlement or assets realization in the current period, according to the tax rate and the tax law which have been legalized or substantively legalized on the balance sheet date. The measurement of deferred tax liabilities and assets reflects the tax consequences of the way in which the Company is expected to

26 -

recover or pay off the carrying amount of its assets and liabilities on the balance sheet date.

Current and deferred tax

The current and deferred tax are recognized in profit or loss.

PRIMARY SOURCES OF UNCERTAINTY IN MAJOR ACCOUNTING JUDGMENTS, ESTIMATES, AND ASSUMPTIONS

When the Company adopts an accounting policy, management must make relevant judgments, estimates, and assumptions of relevant information that is difficult to obtain from other sources based on historical experience and other relevant factors.

In developing significant accounting estimates, the Company has considered the potential impacts of the United States reciprocal tariff measures in its assessments of major assumptions, including projected cash flows, growth rates, discount rates and profitability. Management will continue to review the estimates and underlying assumptions.

Based on management's assessment, the accounting policies, estimates and underlying assumptions adopted by the Company do not involve significant accounting judgments, estimates, or uncertainties in assumptions.

CASH AND CASH EQUIVALENTS

	Dec. 31, 2025	Dec. 31, 2024
Cash on hand and working capital	$ 3,058	$ 3,440
Checks and demand deposits	109,273	58,254
Cash equivalents
Time deposits in banks	693,000	770,000
	$ 805,331	$ 831,694

The market interest rate range for bank deposits as of the balance sheet date was as follows:

	Dec. 31, 2025	Dec. 31, 2024
Bank deposit	0.01%~1.62%	0.01%~1.60%

FINANCIAL INSTRUMENTS MEASURED AT FVTPL

	Dec. 31, 2025	Dec. 31, 2024
Financial assets - current
Mandatorily measured at FVTPL
Non-derivative financial assets
-Fund beneficiary certificate	$ 70,167	$164,288

28 -
FINANCIAL ASSETS MEASURED AT AMORTIZED COST ARE ASSETS

	Dec. 31, 2025	Dec. 31, 2024
Uncurrent
Domestic investment
-Corporate bonds	$100,329	$ 50,258

In November 2024, our company purchased 5-year corporate bonds issued by Taiwan Power Company with a par value of NT$50 million. The coupon rate is 1.90%, and the effective interest rate is 1.76%.

In December 2025, our company purchased 5-year corporate bonds issued by Taiwan Semiconductor Manufacturing Company Limited with a par value of NT$50 million. The coupon rate is 1.54%, and the effective interest rate is 1.41%.

Refer to Note 9 for information relating to credit risk management and expected credit loss for financial assets at amortized cost.

CREDIT RISK MANAGEMENT OF DEBT INSTRUMENT INVESTMENTS

The Company's debt instruments are financial assets measured at amortized cost :

	Dec. 31, 2025	Dec. 31, 2024
Total carrying amount	$ 100,329	$ 50,258
Allowance for loss
Amortized cost	-	-
	$ 100,329	$ 50,258

Our company only invests in debt instruments with a credit rating of investment grade or higher and that are considered to have low credit risk under impairment assessment. The credit rating information is provided by independent rating agencies. We continuously monitor external rating information to track changes in the credit risk of the invested debt instruments. Additionally, we review other information such as bond yield curves and significant disclosures from debtors to assess whether there has been a significant increase in credit risk since initial recognition.

In assessing the 12-month expected credit loss or lifetime expected credit loss of debt instrument investments, our company considers the historical default probabilities and loss given default associated with each rating category provided by external rating agencies, the current financial status of the debtor, and the industry outlook in which the debtor operates.

Our current internal credit risk rating framework is as follows:

Credit Rating	Definition	Basis for Expected Credit Loss Recognition	Expected Credit Loss Rate
The debtor has low credit Performing risk and sufficient ability to meet contractual cash flows.		12-month expected credit loss	-

NOTES AND ACCOUNTS RECEIVABLE (INCLUDING RELATED PARTIES)

	Dec. 31, 2025	Dec. 31, 2024
Accounts receivable
Measured at amortized cost
Non-related parties	$341,406	$375,161
Related parties (Note 29)	10,872	14,240
Less: allowance for loss	-	-
	$352,278	$389,401

The main credit period for the Company's sales of goods is 30 to 45 days with no interest charged on accounts receivable. The Company continuously monitors credit exposure and the credit rating of counterparties. To mitigate credit risk, the Company's management assigns a dedicated team to make decisions on credit limits, credit approvals, and other monitoring procedures to ensure appropriate actions are taken to collect overdue accounts receivable. In addition, the Company reviews the recoverable amounts of accounts receivable on a case-by-case basis as of the balance sheet date to ensure that appropriate impairment losses have been recognized for uncollectible accounts. Accordingly, the Company's management believes that credit risk has been significantly reduced.

The Company recognizes provisions for doubtful accounts based on expected credit losses over the remaining life of the receivables. The expected credit losses over the remaining life of the receivables are calculated using an expected loss matrix that considers customers' past default records and current financial conditions, as well as industry and economic conditions. As the Company's historical experience with credit losses indicates no significant differences in loss patterns among different customer groups, the expected loss matrix does not differentiate among customer groups and only sets expected credit loss rates based on the number of days past due for accounts receivable.

29 -

If there is evidence that counterparties are facing severe financial difficulties and the Company cannot reasonably expect to recover the amounts due, the Company writes off the relevant accounts receivable directly, but continues to pursue collection activities. The amount collected from the recovery is recognized in profit or loss.

The Company's provisions for doubtful accounts for accounts receivable are measured based on the expected loss matrix as follows:

Dec. 31, 2025

	Not overdue	Overdue 1-30 days	Overdue 31-90 days	Overdue 91-180 days	Total
Expected credit loss ratio	-	-	-	-	-
Total carrying amount	$ 352,278	$ -	$ -	$ -	$ 352,278
Allowance for loss (lifetime expected credit losses)	-	-	-	-	-
Amortized cost	$ 352,278	$ -	$ -	$ -	$ 352,278

Dec. 31, 2024

	Not overdue	Overdue 1-30 days	Overdue 31-90 days	Overdue 91-180 days	Total
Expected credit loss ratio	-	-	-	-	-
Total carrying amount	$ 389,401	$ -	$ -	$ -	$ 389,401
Allowance for loss (lifetime expected credit losses)	-	-	-	-	-
Amortized cost	$ 389,401	$ -	$ -	$ -	$ 389,401

INVENTORY

	Dec. 31, 2025	Dec. 31, 2024
Finished goods and merchandise	$ 99,443	$ 81,269
Work in progress	180,601	224,342
Raw materials	186,039	214,414
	$466,083	$520,025

The nature of cost of goods sold is as follows:

	2025	2024
Cost of inventories sold	$ 1,361,747	$ 1,492,550
Inventory write-downs and gain from price recovery	( 20,000)	( 1,000)
	$1,341,747	$1,491,550

The reversal of the write-down of inventories to net realizable value was due to the disappearance of the factors that had previously caused the net realizable value of inventories to fall below cost.

31 -

12. INVESTMENT ACCOUNTED FOR USING THE EQUITY METHOD

Investee subsidiaries

	Dec. 31, 2025	Dec. 31, 2024
Unlisted company
Generalplus International (Samoa) Inc.	$576,393	$566,585
	Percentage of equity and voting rights
Name of Subsidiary	Dec. 31, 2025	Dec. 31, 2024
Generalplus International (Samoa) Inc.	100%	100%

Please refer to Note 33 for details of the subsidiary companies in which the Company holds indirect investments.

13. PROPERTY, PLANT AND EQUIPMENT

	Buildings	Accessories and equipment attached to buildings	Machinery and equipment	Testing equipment	Tools and machinery for production	Total
Cost
Balance on Jan. 1, 2025	$254,987	$91,689	$11,892	$530,229	$61,660	$950,457
Addition	-	-	15,586	41,265	1,955	58,806
Disposal	-	-	-	(66)	(3,216)	(3,282)
Balance on Dec. 31, 2025	254,987	91,689	27,478	571,428	60,399	1,005,981
Accumulated depreciation
Balance on Jan. 1, 2025	79,430	90,790	11,013	520,106	58,608	759,947
Depreciation expense	6,071	364	3,477	30,354	1,705	41,971
Disposal	-	-	-	(66)	(3,216)	(3,282)
Balance on Dec. 31, 2025	85,501	91,154	14,490	550,394	57,097	798,636
Dec. 31, 2025-net	$169,486	$535	$12,988	$21,034	$3,302	$207,345
Cost
Balance on Jan. 1, 2024	$254,987	$91,496	$11,892	$506,079	$75,269	$939,723
Addition	-	193	-	28,945	1,078	30,216
Disposal	-	-	-	(4,795)	(14,687)	(19,482)
Balance on Dec. 31, 2024	254,987	91,689	11,892	530,229	61,660	950,457
Accumulated depreciation
Balance on Jan. 1, 2024	73,359	90,426	8,640	489,531	71,392	733,348
Depreciation expense	6,071	364	2,373	35,370	1,903	46,081
Disposal	-	-	-	(4,795)	(14,687)	(19,482)
Balance on Dec. 31, 2024	79,430	90,790	11,013	520,106	58,608	759,947
Dec. 31, 2024-net	$175,557	$899	$879	$10,123	$3,052	$190,510

No impairment losses were recognized in 2025 and 2024.

Depreciation expense is depreciated on a straight-line basis over the following number of years of useful life:

Buildings 42 years
Accessories and equipment attached to buildings 4-10 years
Machinery and Equipment 4 years
Testing equipment 1-6 years
Tools and machinery for production 4-5 years

14. LEASE AGREEMENT

(1) Right-of-use assets

	Dec. 31, 2025	Dec. 31, 2024
Right-of-use assets Carrying amount
Lands	$ 27,175	$ 29,359
	2025	2024
Right-of-use assets-Depreciation expense
Lands and buildings	$ 974	$ 1,015

(2) Lease liabilities

	Dec. 31, 2025	Dec. 31, 2024
Lease liabilities Carrying amount
Current	$ 748	$ 759
Non-current	$ 28,564	$ 30,492

The discount rate range for the Lease liabilities is as follows:

	Dec. 31, 2025	Dec. 31, 2024
Lands	2.39%	2.39%

(3) Important Tenant Activities and Terms

The Company leases land for use as factories and offices for a period of 20 years. The land lease in Taiwan is based on the announced land price for rent adjustment. There is no preferential purchase right for the land and buildings leased by the Company at the end of the lease term.

32 -

(4) Other leasing information

	Dec. 31, 2025	Dec. 31, 2024
Short-term lease expenses	$ 3,364	$ 3,759
Total amount of cash (outflow) from lease	($ 4,804)	($ 5,257)

The Company has chosen to apply exemption for short-term leases of parking spaces and other leases, and does not recognize the related right-of-use assets and lease liabilities for such leases.

INTANGIBLE ASSETS

	Cost of computer software	Technology licensing cost	Patent rights	Total
Cost
Balance on Jan. 1, 2025	$ 365,847	$ 400,188	$ 17,130	$ 783,165
Acquired separately	29,670	11,953	-	41,623
Balance on Dec. 31, 2025	$ 395,517	$ 412,141	$ 17,130	$ 824,788
Accumulated amortization
Balance on Jan. 1, 2025	$ 356,820	$ 394,921	$ 14,159	$ 765,900
Amortization expense	27,446	5,718	692	33,856
Balance on Dec. 31, 2025	$ 384,266	$ 400,639	$ 14,851	$ 799,756
Dec. 31, 2025-net	$ 11,251	$ 11,502	$ 2,279	$ 25,032
Cost
Balance on Jan. 1, 2024	$ 340,663	$ 394,544	$ 17,130	$ 752,337
Acquired separately	25,184	5,644	-	30,828
Balance on Dec. 31, 2024	$ 365,847	$ 400,188	$ 17,130	$ 783,165
Accumulated amortization
Balance on Jan. 1, 2024	$ 335,087	$ 392,761	$ 13,434	$ 741,282
Amortization expense	21,733	2,160	725	24,618
Balance on Dec. 31, 2024	$ 356,820	$ 394,921	$ 14,159	$ 765,900
Dec. 31, 2024-net	$ 9,027	$ 5,267	$ 2,971	$ 17,265

The cost is amortized on a straight-line basis over the following useful lives:

Computer software

1-5 years

Technology licensing

1-5 years

Patent rights

8-18 years

Amortization expense listed by function:

	2025	2024
Operating costs	$ 754	$ -
Selling and marketing expenses	182	498
General and administration expense	152	516
Research and development expenses	32,768	23,604
	$ 33,856	$ 24,618

OTHER ASSETS

	Dec. 31, 2025	Dec. 31, 2024
Current
Income tax refund receivable	$ 5,360	$ 4,381
Prepayments	2,846	6,335
Prepayments for goods	1,348	-
Other receivables	1,196	606
Others	898	574
	$ 11,648	$ 11,896
Non-current
Refundable deposits (Note 31)	$ 62,450	$ 87,889
Restricted assets (Note 30)	3,000	3,000
Prepayments for purchases	2,671	20,753
	$ 68,121	$111,642

Advance payments are mainly prepayments made under capacity cooperation agreements signed between the Company and its suppliers. The advance payments made according to the contractual provisions will be offset against the payment for goods over a period of five years, subject to the fulfillment of the production capacity conditions stipulated in the contract.

LOAN

Short-term loans

	Dec. 31, 2025	Dec. 31, 2024
Unsecured Borrowing
Line of credit loans	$127,291	$ 75,078

The interest rate for revolving loans from banks as of December 31, 2025 and 2024 is $4.48\% \sim 4.60\%$ and $5.49\% \sim 5.70\%$ .

35 -
ACCOUNTS PAYABLE

	Dec. 31, 2025	Dec. 31, 2024
Accounts payable
Generated from operating activities
Non-related parties	$151,172	$149,372
Related parties (Note 29)	67	464
	$151,239	$149,836

The average accounts payable period for this Company's business-related expenses is between 30 and 60 days. The Company has established a financial risk management policy to ensure that all accounts payable are settled within the agreed credit period.

OTHER LIABILITIES

	Dec. 31, 2025	Dec. 31, 2024
Current
Salaries, bonuses and rewards payable to employees	$102,921	$155,870
Labor insurance premiums payable	13,004	13,972
Refund liabilities (Note)	1,118	6,401
Others	22,142	26,508
	$139,185	$202,751

Note: These refer to related product returns and discounts. Based on historical experience, management judgment, and other known reasons, the Company estimates the possible occurrence of product returns and discounts and records them as a deduction from revenue in the period in which the relevant products are sold.

BENEFITS AFTER RETIREMENT PLAN

(1) Defined contribution plan

The retirement plan that the Company adopts under the "Labor Pension Act" is a government-managed defined contribution retirement plan. The Company contributes 6% of each employee's monthly salary to their individual account with the Labor Insurance Bureau for retirement purposes.

(2) Defined benefit plan

Sunplus mMedia Inc. (a subsidiary of Sunplus Technology Co., Ltd.) transferred its MP3, PMP, and DPF product business units to the Company on December 1, 2009, based on the regulations of the Business Mergers and Acquisitions Act. Sunplus

mMedia Inc. also transferred its employees in these product business units to the Company. The Company assumes the employees' years of service, retirement conditions, and related rights and obligations in accordance with the Labor Standards Act.

The retirement plan that the Company implements in accordance with the Labor Standards Act is a government-managed defined benefit retirement plan. The calculation of employee retirement benefits is based on their years of service and the average salary for the six months prior to their approved retirement date. The Company contributes 2% of the total monthly salary to the employee retirement fund, which is deposited into a dedicated account with the Bank of Taiwan in the name of the Supervisory Committee of Business Entities' Labor Retirement Reserve. If the estimated balance in the account is insufficient to pay employees who will reach retirement conditions in the following year, the Company will make a one-time additional contribution to cover the shortfall before the end of the current year. The account is managed by the Bureau of Labor Funds under the Ministry of Labor, and the Company has no authority over the investment management strategy.

The amounts included in the parent company only balance sheets for defined benefit plans are shown below:

	Dec. 31, 2025	Dec. 31, 2024
Current value of defined benefit obligations	$ 28,251	$ 26,685
Fair value of plan assets	( 14,961 )	( 13,672 )
Net defined benefit liability	$ 13,290	$ 13,013

Changes in the net defined benefit liabilities are as follows:

| | Defined Benefits
Present Value
of Volunteer
Services | Plan assets
Fair value | Net defined
benefit
Liabilities |
| --- | --- | --- | --- |
| Balance on Jan. 1, 2024 | $ 30,014 | ($ 12,297) | $ 17,717 |
| Interest expense (income) | 390 | ( 161) | 229 |
| Recognized in profit or losses | 390 | ( 161) | 229 |
| Remeasurements | | | |
| Return on plan assets
(except the amount
included in net
interest) | - | ( 1,064 ) | ( 1,064 ) |
| Actuarial (gain)
loss | | | |

37 -

-Changes in financial assumptions	( 578 )	-	( 578 )
-Experience adjustments	( 3,141 )	-	( 3,141 )
Recognized in other comprehensive income	( 3,719 )	( 1,064 )	( 4,783 )
Distribution by the employer	$ -	($ 150)	($ 150)
Dec. 31, 2024	26,685	( 13,672 )	13,013
Interest expense (income)	353	( 220 )	133
Recognized in profit or losses	353	( 220 )	133
Remeasurements
Return on plan assets (except the amount included in net interest)	-	( 936 )	( 936 )
Actuarial (gain ) loss
-Changes in financial assumptions	591	-	591
-Experience adjustments	622	-	622
Recognized in other comprehensive income	1,213	( 936 )	277
Distribution by the employer	-	( 133 )	( 133 )
Dec. 31, 2025	$ 28,251	($ 14,961)	$ 13,290

The amounts recognized in profit or loss for defined benefit plans are summarized by function as follows:

	2025	2024
Research and development expenses	$ 133	$ 223

The Company is exposed to the following risks under the defined benefit plan in accordance with the Labor Standards Act:

Investment risk: The Supervisory Committee of Business Entities' Labor Retirement Reserve, through its own management and commissioned management, invests the labor retirement funds in domestic (foreign) equity securities, debt securities, bank deposits, and other targets. However, the

distribution of plan assets by the Company is based on a return calculated at no less than the local bank’s two-year fixed deposit interest rate.

Interest rate risk: A decrease in the interest rate of government bonds will increase the present value of defined benefit obligations, but the return on investment in plan assets will also increase, partially offsetting the effect on the net defined benefit liability.
Salary risk: The present value of the defined benefit obligation is calculated with reference to the future salaries of plan members. An increase in plan members’ salaries will increase the present value of the defined benefit obligation.

The present value of the Company’s defined benefit obligation is determined by a qualified actuary, and the significant assumptions used in the calculation are as follows:

	Dec. 31, 2025	Dec. 31, 2024
Discount rate	1.300%	1.600%
Expected growth rate of salary	3.625%	3.625%
Turnover rate	2%~26%	2%~26%

If there is a reasonable possibility of significant changes in the actuarial assumptions, while all other assumptions remain constant, the increase (decrease) in the present value of the defined benefit obligation would be as follows:

	Dec. 31, 2025	Dec. 31, 2024
Discount rate
Increase by 0.25%	($ 493)	($ 493)
Decrease by 0.25%	$ 512	$ 507
Expected growth rate of salary
Increase by 1%	$ 1,995	$ 1,986
Decrease by 1%	($ 1,829)	($ 1,811)

Due to the possible correlation between actuarial assumptions, it is unlikely that a single assumption will change, so the sensitivity analysis above may not reflect the actual changes in the present value of defined benefit plan.

	Dec. 31, 2025	Dec. 31, 2024
Amount to be distributed within 1 year	$ 133	$ 133
Average due period for defined benefit obligations	7 years	8 years

EQUITY

(1) Share Capital

Common share

	Dec. 31, 2025	Dec. 31, 2024
Number of shares authorized (1,000 shares)	140,000	140,000
Authorized share capital	$1,400,000	$1,400,000
Number of issued and fully paid shares (1,000 shares)	108,816	108,816
Share capital of issued shares	$1,088,158	$1,088,158

The par value of the issued common stock is NT$10 per share, and each share has one voting right and the right to receive dividends.

The reserved capital in the designated capital stock for employee stock option certificates is 10,000 thousand shares.

(2) Capital surplus

	Dec. 31, 2025	Dec. 31, 2024
May be used to offset losses, distribute cash dividends, or be capitalized into share capital(1)
Issuance of ordinary shares	$141,967	$141,967

The capital surplus may be used to offset losses, and may also be used to distribute cash or increase capital when the Company is not in deficit. However, when increasing capital, the annual limit is determined by a certain percentage of the paid-in capital.

(3) Retained earnings and dividend policy

According to the profit distribution policy stipulated in the Company's pre-revised articles of association, if there is a profit after the annual settlement, in addition to paying the business income tax in accordance with the law and offsetting losses from previous years, 10% of the legal reserve shall be allocated first, but this limit does not apply if the legal reserve has reached the total capital amount. Then, in accordance with laws and regulations or the regulations of the competent authority, the remaining profits, together with the accumulated undistributed profits from the previous period, shall be distributed to the shareholders as dividends after the board

39 -

of directors proposes a distribution proposal and submits it to the shareholders' meeting for approval. However, the ratio of profit distribution and cash dividends to shareholders may be adjusted based on the actual profits and financial situation of the current year and resolved by the shareholders' meeting. The total amount of dividends distributed each year shall be no less than 10% of the newly distributable profits of that year. However, if it is less than 1% of the paid-in capital, it may not be distributed. The aforementioned cash dividends shall not be less than 10% of the total dividends payable to shareholders.

The employee and director compensation distribution policy stipulated in the Company's articles of association is referred to in Note 23(7) regarding compensation to employees and compensation to directors.

If there are items reducing shareholder equity due to accumulated losses from the previous year or occurring in the current year but not sufficient to be set aside from the current year's after-tax profit, the same amount shall be set aside as a special profit reserve from the accumulated undistributed profits from the previous year before proposing allocation for distribution.

The legal reserve shall be set aside until its balance reaches the total amount of the Company's paid-in capital. The legal reserve may be used to offset losses. If the Company has no deficit, the excess of legal reserve over 25% of the paid-in capital may be distributed in cash in addition to capitalization.

At the shareholders' meetings held on May 27, 2025 and May 24, 2024, the Company resolved to distribute the earnings for 2024 and 2023, respectively, as follows:

	2024	2023
Legal reserve	$ 25,167	$ 16,808
Special reserve	($ 19,445)	$ 9,976
Cash dividends	$244,836	$141,460
Cash dividends per share (NT$)	$ 2.25	$ 1.30

The proposed profit distribution plan for the fiscal year 2025 by the board of directors of the Company on February 25, 2026 is as follows:

	2025
Legal reserve	$ 11,207
Special reserve	($ 2,299)
Cash dividends	$108,816
Cash dividends per share (NT$)	$ 1.00

The profit distribution plan for the fiscal year 2025 is subject to the resolution of the shareholders' meeting to be held on May 27, 2026.

(4) Special reserve

	2025	2024
Beginning balance	$ 55,438	$ 45,462
Transfer to special reserve
Deduction from other equity items	-	9,976
Reversal of special reserve
Deduction reversal from other equity items	(19,445)	-
Ending balance	$ 35,993	$ 55,438

(5) Other equity interest items

Exchange differences on translation

	2025	2024
Beginning balance	($ 35,993)	($ 55,438)
Generated in the fiscal year
Share of subsidiaries accounted for using the equity method	2,299	19,445
Other comprehensive income in the fiscal year	2,299	19,445
Ending balance	($ 33,694)	($ 35,993)

REVENUE

	2025	2024
Revenue from customer contracts
Revenue from sales of goods	$ 1,998,691	$ 2,339,635
Others	22,056	20,150
	$ 2,020,747	$ 2,359,785

(1) Explanation of customer contracts

Revenue from sales of goods

IC products are sold to agents. The Company agrees on the selling price of goods with the order, and estimates the discount amount and return rate based on past experience and market conditions to determine the amount of revenue recognition and recognition of refund liabilities (recorded as other current liabilities).

(2) Breakdown of revenue from customer contracts

	Reporting Department:
	Direct Sales - IC Products
	2025	2024
Main Regional Markets:
Taiwan	$ 1,061,408	$ 1,216,114
Mainland China	948,135	1,128,998
Japan	10,034	13,220
Singapore	1,170	1,453
	$ 2,020,747	$ 2,359,785
Main Products:
IC Products	$ 1,998,691	$ 2,339,635
Others	22,056	20,150
	$ 2,020,747	$ 2,359,785
Recognition Timing:
Satisfied at a point of time	$ 2,020,747	$ 2,359,785
23. NET PROFIT OF OPERATING UNIT
(1) Interest income
	2025	2024
Bank deposit	$ 14,214	$ 12,017
(2) Other income
	2025	2024
Government grant income (Note 26)	$ 30,000	$ -
Litigation compensation income	4,678	-
Others	1,984	1,719
	$ 36,662	$ 1,719
(3) Other gains and (losses)
	2025	2024
Net gain on financial assets measured at FVTPL	$ 1,308	$ 1,492
Foreign exchange gain (loss)	( 8,569 )	13,104
	($ 7,261 )	$ 14,596
(4) Finance costs
	2025	2024
Interests from bank loans	$ 7,014	$ 9,178
Imputed interest on deposits received	2,827	4,417
Lease liabilities interest	711	757
	$ 10,552	$ 14,352

(5) Depreciation and Amortization

	2025	2024
Depreciation expense is summarized by function
Operating cost	$ 4,730	$ 3,615
Operating expense	38,215	43,481
	$ 42,945	$ 47,096
Amortization expense is aggregated by function
Operating cost	$ 754	$ -
Operating expense	33,102	24,618
	$ 33,856	$ 24,618

For the allocation of amortization expense of intangible assets to each line item, please refer to Note 15.

(6) Employee benefits expenses

	2025	2024
Benefits after retirement
Defined contribution plan	$ 16,632	$ 16,719
Defined benefit plan (Note 20)	133	223
Other employee benefits	374,869	433,653
Total employee benefit expenses	$391,634	$450,595
Aggregated by function
Operating costs	$ 55,175	$ 54,033
Operating expenses	336,459	396,562
	$391,634	$450,595

(7) Compensation to employees and compensation to directors

In accordance with the Company's articles of association, the Company shall allocate employee compensation and director compensation of no less than 1% and no more than 1.5% of the pre-tax profit deducted by the distribution of the current year. In response to the amendment of the Securities and Exchange Act in August 2024, the Company plans to propose an amendment to its Articles of Incorporation at the 2025 Annual General Shareholders' Meeting, to stipulate that no less than 10% of the annual employee compensation allocation shall be distributed to grassroots employees. The estimated employee compensation(Including Compensation for Rank-and-File Employees) and director compensation for the years 2025 and 2024 were determined by the board of directors on February 25, 2026 and February 19, 2025, respectively:

Estimated calculation ratio

	2025	2024
Compensation of employees	1%	13%
Compensation of directors	1%	1%
Amount
	2025	2024
	Cash	Cash
Compensation of employees	$ 1,300	$ 40,000
Compensation of directors	$ 1,294	$ 2,968

If there is any change in the amount after the parent company only financial statements for the year have been approved and published, the adjustment will be made in the next year's financial statements based on accounting estimates.

The actual distribution amounts of employee compensation and director compensation for the years 2024 and 2023 are not different from the recognized amounts in the parent company only financial statements for the years 2024 and 2023.

For information on the Company's board resolutions regarding employee compensation and director compensation, please refer to the "MOPS" of the Taiwan Stock Exchange.

24. INCOME TAX FOR CONTINUING OPERATIONS

(1) Income tax recognized in profit or losses

Main components of income tax expenses recognized in profit or losses:

	2025	2024
Current income tax
Currently Generated	$ 17,360	$ 42,985
Adjustments for the prior year	( 7,500 )	( 34,525 )
Deferred income tax
Currently Generated	4,577	( 1,495 )
Income tax expense recognized in profit or losses	$ 14,437	$ 6,965

The reconciliations of accounting income and income tax expenses are as follows:

	2025	2024
Net profit before tax	$126,788	$253,852
Net profit before tax - Income	$ 25,358	$ 50,770

tax expense calculated at statutory tax rate
Income tax impact of adjustment items
Expenses that cannot be deducted when determining taxable income
( 262 ) ( 298 )
Temporary differences
( 1,747 ) 5,687
Tax credit
( 5,989 ) ( 13,174 )
Current income tax
17,360 42,985
Deferred income tax
Temporary differences
4,577 ( 1,495 )
Adjustments to current income from tax expense in prior years
( 7,500 ) ( 34,525 )
Income tax expense recognized in profit or losses
$ 14,437 $ 6,965

(2) Income tax liabilities in the current period

	Dec. 31, 2025	Dec. 31, 2024
Income tax assets in the current period
Tax refund receivable	$ 8,575	$ -
Income tax liabilities in the current period
Income tax payable	$ 33,692	$ 50,761

(3) Deferred tax assets

The Company will offset certain deferred tax assets and liabilities that meet the offsetting criteria.

Changes in deferred tax assets and liabilities are as follows:

2025

Deferred tax assets	Beginning balance	Recognized in profit or losses	Ending balance
Temporary differences
Unrealized inventory losses	$ 16,795	($ 5,010)	$ 11,785
Unrealized foreign exchange losses (gains)	( 1,922)	2,871	949
Others	10,754	( 2,438 )	8,316
	$ 25,627	($ 4,577 )	$ 21,050

2024

Deferred tax assets	Beginning balance	Recognized in profit or losses	Ending balance
Temporary differences
Unrealized inventory losses	$ 16,995	($ 200)	$ 16,795
Unrealized foreign exchange losses (gains)	656	( 2,578)	( 1,922)
Others	6,481	4,273	10,754
	$ 24,132	$ 1,495	$ 25,627

(4) Income tax assessment

As of the end of the 2023 fiscal year, the Company's income tax returns have been approved by the tax authorities.

EARNINGS PER SHARE

	2025	2024
Basic earnings per share	$ 1.03	$ 2.27
Diluted earnings per share	$ 1.03	$ 2.25

The earnings and weighted average number of ordinary shares used to calculate earnings per share are as follows:

Net income in the fiscal year

	2025	2024
Net profit	$112,351	$246,887
Net profit used to calculate Basic earnings per share	112,351	246,887
Influence of dilutive potential common shares :
Compensation of employees	-	-
Net profit used to calculate Basic earnings per share	$112,351	$246,887

Number of shares
Unit: Thousands of shares

	2025	2024
Weighted average number of shares of common stock used to calculate Basic earnings per share	108,816	108,816
Influence of dilutive potential common shares:
Compensation of employees	136	779
Weighted average number of shares of common stock used to calculate Diluted earnings per share	108,952	109,595

When the Company chooses to pay employee compensation in the form of stock or cash, when calculating diluted earnings per share, it is assumed that the employee compensation will be issued in the form of stock, and the weighted average number of outstanding shares is included when the potential common stock has a dilutive effect to calculate diluted earnings per share. When calculating diluted earnings per share before the decision to issue shares for employee compensation in the next year, the dilutive effect of such potential common stock is also considered.

26. GOVERNMENT ASSISTANCE

In October 2025, the Company obtained a government grant under the “Subsidy Program for Driving the Advanced Development of Domestic IC Design Companies” of the Industrial Upgrading and Innovation Platform Guidance Program from the Industrial Development Administration, Ministry of Economic Affairs. Government grant income of NT$30,000 thousand was recognized for the year 2025.

27. CAPITAL RISK MANAGEMENT

The Company conducts capital management to ensure that it can optimize debt and equity balances to maximize shareholder returns before continuing to operate.

The capital structure of the Company consists of net debt (borrowings minus cash and cash equivalents) and equity (including share capital, capital reserve, retained earnings, and other equity items).

The Company does not need to comply with other external capital regulations.

28. FINANCIAL INSTRUMENTS

(1) Fair value information - Financial Instruments Not Measured at Fair Value

Dec. 31, 2025

	Carrying Amount	Level 1	Level 2	Level 3	Total Fair Value
Financial Assets
Measured at amortized cost:
- Domestic corporate bonds	$ 100,329	$ -	$ 100,517	$ -	$ 100,517

Dec. 31, 2024

	Carrying Amount	Level 1	Level 2	Level 3	Total Fair Value
Financial Assets
Measured at amortized cost:
- Domestic corporate bonds	$ 50,258	$ -	$ 50,110	$ -	$ 50,110

The fair value classified under Level 2 was determined based on quotations from the Taipei Exchange (TPEx), operated by the Taipei Exchange Foundation.

(2) Fair value information - financial instruments measured at fair value on a recurring basis

Fair value hierarchy

Dec. 31, 2025

	Level 1	Level 2	Level 3	Total
Financial assets measured at FVTPL:
Mutual fund certificates	$ 70,167	$ -	$ -	$ 70,167
Dec. 31, 2024	Level 1	Level 2	Level 3	Total
Financial assets measured at FVTPL:
Mutual fund certificates	$ 164,288	$ -	$ -	$ 164,288

There were no transfers between Level 1 and Level 2 fair value measurements in fiscal 2025 and 2024.

(3) Types of financial instruments

	Dec. 31, 2025	Dec. 31, 2024
Financial assets
Measured at FVTPL
Mandatorily measured at FVTPL	$ 70,167	$ 164,288
Measured at amortized cost (Note 1)	1,324,584	1,362,848
Financial liability
Measured at amortized cost (Note 2)	410,714	366,977

Note 1: The balance includes financial assets measured at amortized cost, such as cash and cash equivalents, debt instrument investments, accounts receivable (including related parties), other receivables, refundable deposits, and restricted assets.

Note 2: The balance includes financial liabilities measured at amortized cost, such as short-term borrowings, accounts payable (including related parties), other payable-related parties, and deposits received.

(4) Financial risk management objectives and policies

The Company's main financial instruments include investment fund certificates, investment corporate bonds, accounts receivable, short-term loans, accounts payable, and lease liabilities. The Company's finance management department provides services to various business units, coordinating and managing the Company's financial risks related to its operations by monitoring and supervising internal risk reports on exposure to risks based on their level and breadth of analysis. These risks include market risk (including foreign exchange risk, interest rate risk, and other price risks), credit risk, and liquidity risk.

The finance management department reports to the board of directors on a quarterly basis.

Market risk

The Company's main financial risks arising from its operational activities are foreign exchange rate risk (see (1) below) and interest rate risk (see (2) below). There have been no changes to the Company's exposure to market risk related to its financial instruments or its methods for managing and measuring such risks.

(1) Exchange rate risk

A portion of the cash inflows and outflows of the Company are in foreign currencies, so there is a natural hedging effect. Our management of exchange rate risk is aimed at hedging, not profit.

The strategy for managing exchange rate risk is to regularly review the net positions of various currency assets and liabilities and manage the risk of those net positions.

The Company uses short-term foreign currency borrowings to mitigate exchange rate volatility. The currency of the short-term foreign currency borrowings must be the same as that of the hedged item. By using the above tool in conjunction with the contract terms of the hedged item, we maximize the effectiveness of the hedge.

For non-functional currency denominated monetary assets and monetary liabilities (including monetary items denominated in non-functional

49 -

currencies that have been eliminated in the consolidated financial statements) on the balance sheet date, please refer to Note 32.

Sensitivity analysis

The Company is mainly affected by fluctuations in the exchange rates of USD.

The following table provides a detailed sensitivity analysis of the Company's exposure to exchange rate risk, assuming a NT$1 increase or decrease against each relevant foreign currency. The NT$1 change represents the sensitivity rate used internally by the Group for reporting exchange rate risk to key management personnel and reflects management's assessment of a reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign-currency-denominated monetary items at the end of the reporting period, with adjustments made to reflect a NT$1 fluctuation in the exchange rates at year-end. Negative amounts in the table indicate a decrease in profit before tax resulting from a NT$1 appreciation against the respective foreign currency; conversely, a depreciation of NT$1 would have an equal but opposite effect on profit before tax.

	The impact of USD
	2025	2024
Profit and loss	($ 1,272)	($ 5,227)

(2) Interest rate risk

Due to the Company's use of floating-rate borrowings, there is an interest rate risk. The Company manages its interest rate risk by maintaining an appropriate mix of fixed and floating-rate instruments. The Company regularly evaluates its hedging activities to ensure that they align with its interest rate outlook and established risk preferences, in order to adopt the most cost-effective hedging strategies.

As of the balance sheet date, the financial assets and financial liabilities subject to interest rate risk for the Company are as follows:

	Dec. 31, 2025	Dec. 31, 2024
Fair value interest rate risk
-Financial assets	$ 575,000	$ 635,000
-Financial liability	144,253	149,461
Cash flow rate risk
-Financial assets	230,269	196,250
-Financial liability	127,291	75,078

Sensitivity analysis

The following sensitivity analysis is based on the interest rate risk of non-derivative financial instruments on the balance sheet date. For floating rate assets and liabilities, the analysis assumes that the amount of assets and liabilities outstanding on the balance sheet date will remain outstanding throughout the reporting period. The variable rate used by the Company to report interest rates to key management personnel is an increase or decrease of 0.125%, which also represents an assessment by management of the reasonable range of possible interest rate changes.

If the interest rate increases/decreases by 0.125%, while all other variables remain constant, the Company’s profit before tax for the 2025 and 2024 will increase/decrease by NT$129 thousand and NT$151 thousand, respectively.

Credit risk

Credit risk refers to the risk of financial loss that may be incurred by the Company due to the counterparty’s failure to fulfill its contractual obligations. As of the balance sheet date, the maximum credit risk exposure to financial loss that the Company may face from counterparty non-performance mainly comes from the carrying amount of financial assets recognized in the parent company only balance sheet.

To mitigate credit risk, the Company’s management has assigned a dedicated team to make credit decisions, approve credit and monitor procedures to ensure appropriate actions are taken to recover overdue receivables. In addition, the Company reviews the recoverable amount of receivables on a case-by-case basis as of the balance sheet date to ensure that any unrecoverable receivables have been adequately impaired. Based on this, the Company’s management believes that the Company’s credit risk has significantly reduced.

In addition, it should be noted that the majority of the Company’s liquidity transactions are conducted with financial institutions and corporate organizations that possess favorable credit ratings, which in turn mitigates the potential credit risk exposure.

With regards to accounts receivable, the Company’s customer base is diversified across various industries and geographic regions. The Company

51 -

maintains a diligent assessment of the financial health of its accounts receivable customers to ensure that the credit risk is effectively managed.

As of December 31, 2025 and 2024, the five largest customers' accounts receivable balances accounted for 76% and 83%, respectively, of the Company's accounts receivable balance. The credit concentration risk for the remaining accounts receivable is relatively insignificant.

3. Liquidity risk

The Company manages and maintains sufficient positions of cash and cash equivalents to support the operations of the Group and mitigate the impact of cash flow volatility. The Company's management oversees the utilization of bank financing facilities and ensures compliance with loan contract terms.

The Company has not utilized its unused short-term bank financing facilities, as explained in the following (2) financing facilities.

(1) Liquidity and interest rate risk table of non-derivative financial liabilities

The remaining contract maturity analysis of non-derivative financial liabilities is prepared based on the undiscounted cash flow of financial liabilities (including principal and estimated interest) based on the earliest date when the company may be required to repay. Therefore, the bank borrowings that the Company can be required to repay immediately are within the earliest period in the table below, without considering the probability of the bank immediately executing the right; the maturity analysis of other non-derivative financial liabilities is prepared based on the agreed repayment date.

For interest cash flows paid at floating interest rates, the undiscounted interest amount is derived based on the yield curve on the balance sheet date.

Dec. 31, 2025

	Request pay-as-you-go or Less than 1 month	1-3 months	3 months to 1 year	1-5 years	More than 5 years
Non-interest bearing liabilities	$ 109,007	$ 72,989	$ -	$ -	$ -
Lease liabilities	120	240	1,080	5,760	33,000
Floating-rate instruments	-	127,578	-	-	-
Fixed-rate instruments	-	-	-	394	116,817
	$ 109,127	$ 200,807	$ 1,080	$ 6,154	$ 149,817

Further information on the maturity analysis of the financial liabilities above is as follows:

	Request pay-as-you-go or less than 1 year	1-5 years	5-10 years	10-15 years	15-20 years	More than 20 years
Lease liabilities	$ 1,440	$ 5,760	$ 7,200	$ 7,200	$ 7,200	$ 11,400

Dec. 31, 2024

	Request pay-as-you-go or Less than 1 month	1-3 months	3 months to 1 year	1-5 years	More than 5 years
Non-interest bearing liabilities	$ 115,952	$ 73,447	$ -	$ -	$ -
Lease liabilities	125	250	1,123	5,992	35,827
Floating-rate instruments	26,602	48,529	-	-	-
Fixed-rate instruments	-	-	-	407	121,711
	$ 142,679	$ 122,226	$ 1,123	$ 6,399	$ 157,538

Further information on the maturity analysis of the financial liabilities above is as follows:

	Request pay-as-you-go or less than 1 year	1-5 years	5-10 years	10-15 years	15-20 years	More than 20 years
Lease liabilities	$ 1,498	$ 5,992	$ 7,490	$ 7,490	$ 7,490	$ 13,357

(2) Finance facilities

	Dec. 31, 2025	Dec. 31, 2024
Unsecured bank overdraft facilities (reviewed annually)
- Used amount	$ 127,291	$ 75,078
-Unused amount	1,287,009	1,252,772
	$ 1,414,300	$ 1,327,850

TRANSACTION WITH RELATED PARTIES

The parent company of Generalplus Technology Inc. is Sunplus Technology Co., Ltd. and as of Dec. 31, 2025 and Dec. 31, 2024, Sunplus Technology Co., Ltd. and its subsidiaries held a total of 47.80% of the common stock of Generalplus Technology Inc.. As Generalplus Technology Inc. is a listed company in Taiwan, the remaining shares are widely held by other shareholders. Considering the absolute and relative voting power

of other shareholders, as well as the distribution of shares held, Sunplus Technology Co., Ltd. still has control over Generalplus Technology Inc.

In addition to the disclosures made in other notes, the following are transactions between the Company and related parties:

(1) Name of related party and its relationships

Name of related party	Relationship with the Company
Sunplus Technology Co., Ltd.	The parent company of Generalplus Technology Inc.
Sunplus Innovation Technology Inc.	Sister company
Generalplus Technology (Shenzhen)	Subsidiary
Co.,Ltd.(Generalplus Shenzhen)
Generalplus Technology (Hong Kong)	Subsidiary
Co.,Ltd.(Generalplus Hong Kong)

(2) Operating revenue

Accounting item	Type of related party/name	2025	2024
Sales revenue	Subsidiary	$ 101,029	$ 125,596
	Sister companies	326	439
		$ 101,355	$ 126,035

The selling prices and payment terms for sales to related parties are determined through negotiations based on costs and market conditions, and there are no other comparable transactions.

(3) Receivables from related parties

Accounting item	Type of related party/name	Dec. 31, 2025	Dec. 31, 2024
Accounts receivable	Subsidiary	$ 10,872	$ 14,240

Receivables from related parties outstanding are not secured. No provision for impairment losses was recognized for receivables from related parties in 2025 and 2024.

(4) Related party payables

Accounting item	Type of related party/name	Dec. 31, 2025	Dec. 31, 2024
Accounts payable	Parent Company	$ 67	$ 464
Other payables- Related parties	Subsidiary
	Generalplus	$ 15,362	$ 21,757
	Shenzhen
	Generalplus	1,881	2,096
	Hong Kong
		$ 17,243	$ 23,853

The balance of payables to related parties outstanding is not secured.

(5) Other related party transactions

Accounting item	Type of related party/name	2025	2024
Cost of goods sold	Parent Company	$ 1,839	$ 3,432
Operating expenses	Subsidiary
	Generalplus	$ 60,713	$ 62,463
	Shenzhen
	Generalplus	11,863	12,569
	Hong Kong
	Parent Company	2,034	1,665
		$ 74,610	$ 76,697

The prices and transaction terms for testing fees with related parties are equivalent to those with unrelated parties.

The determination of transaction terms for support service expenses with related parties is based on mutual agreement, and there are no other comparable transactions.

(6) Compensation to key management personnel:

Short-term employee benefits	2025	2024
	$ 27,694	$ 25,113

The compensation to directors and other key management personnel is determined based on individual performance and market trends.

PLEDGED ASSETS

Collateral provided for leased land:

Other assets - restricted assets	Dec. 31, 2025	Dec. 31, 2024
	$ 3,000	$ 3,000

SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACTUAL COMMITMENTS

Except as disclosed in other notes, the significant commitments of the Company as of the balance sheet date are as follows:

Long-term purchase contracts

In December 2021, the Company signed a long-term supply contract with a supplier, under which the parties agreed to deliver the agreed-upon supply and price from January 1, 2022, to December 31, 2026. The contract stipulates that if either party fails to fulfill the agreed-upon purchase or supply quantity, the other party has the

right to claim compensation of a certain amount. Pursuant to the contract, the Company has already paid the supplier US$1,944 thousand as a guarantee for capacity supply.

32. INFORMATION ON FOREIGN CURRENCY ASSETS AND LIABILITIES WITH SIGNIFICANT IMPACT

The following information is presented in terms of foreign currencies other than the functional currencies of the Company, and the exchange rates disclosed refer to the exchange rates of these currencies converted to the functional currency. The significant foreign currency assets and liabilities are as follows:

Dec. 31, 2025
Unit: Thousands of each foreign currency

Financial assets	Foreign currency	Exchange rate	Carrying amount
Monetary items
USD	$ 13,525	31.430	$ 425,091
JPY	60,708	0.2008	12,190
RMB	1,667	4.496	7,495
HKD	51	4.038	206
Financial liabilities
Monetary items
USD	12,253	31.430	385,112

Dec. 31, 2024
Unit: Thousands of each foreign currency

Financial assets	Foreign currency	Exchange rate	Carrying amount
Monetary items
USD	$ 15,585	32.785	$ 510,954
RMB	665	4.478	2,978
JPY	7,380	0.2099	1,549
HKD	61	4.222	258
Financial liabilities
Monetary items
USD	10,358	32.785	339,587

The foreign exchange gains (losses) (realized and unrealized) of the Company for the years 2025 and 2024 were NT($8,569) thousand and NT$13,104 thousand, respectively. Due to the complexity of foreign currency transactions, it is not possible to disclose the exchange gains and losses by significant foreign currencies.

56 -

NOTE DISCLOSURE

(1) Information on material transactions:
1. Financings provided: None
2. Endorsements/guarantees provided: None
3. Marketable securities held (excluding investments in subsidiaries and associates): Table 1
4. Total purchases from or sales to related parties of at least NT$100 million or 20% of the paid-in capital: Table 2
5. Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: None

(2) Information about the investment business (Table 3)

(3) Information of investment from mainland china:
1. The name, main business, paid-in capital, investment method, funds inflow/outflow, shareholding ratio, investment gains/losses, end-of-period investment book value, investment gains/losses already remitted, and investment limits for investing in mainland China for the invested companies in mainland China. (Table 4)
2. Significant transactions with the investees in Mainland China, directly or indirectly through third regions, and their prices, payment terms, and unrealized gains or losses: (Table 5)

57 -

Generalplus Technology Inc.
Marketable securities held at the end of the period
Dec. 31, 2025

Units: In NT$1,000, unless otherwise stated

Table 1

Holding company	Type and name of marketable securities	Relationship with the issuer of marketable securities	Financial statement account	End of term				Remark
				Number of shares	Carrying amount	Shareholding %	Fair value
Generalplus Technology Inc.	Yuanta De-Li Money Market Fund	-	Financial assets at FVTPL – current	4,067,795	$ 70,167	-	$ 70,167	Note
	Taiwan Power Company 5th Unsecured Ordinary Corporate Bonds, Series A, FY2024	-	Financial assets measured at amortized cost are assets – uncurrent	-	50,189	-	50,377	-
	Taiwan Semiconductor Manufacturing Company Limited First Unsecured Corporate Bonds, Series A, FY2023	-	Financial assets measured at amortized cost are assets – uncurrent	-	50,140	-	50,140	-

Note: Calculated based on the net asset value of the fund as of December 31, 2025.

58 -

Generalplus Technology Inc.
Total purchases from or sales to related parties of at least NT$100 million or 20% of the paid-in capital
From Jan. 1 to Dec. 31, 2025

Table 2
Unit: In thousands of New Taiwan dollars and foreign currency

Company name	Related party	Relationship	Transaction Details				Abnormal Transaction		Notes/Accounts Payable or Receivable		Note
			Purchase/ Sales	Amount	% of Total	Payment Terms	Unit price	Credit period	Ending Balance	% of Total
Generalplus Technology Inc.	Generalplus Technology (Shenzhen) Co., Ltd.	Subsidiary	Sales	$ 101,029	5.00%	Net 45 days end of the month	$ -	—	$ 10,872	3.09%	—

59 -

Generalplus Technology Inc.
Information on the invested company's name, location, and related details
From Jan. 1 to Dec. 31, 2025

Table 3
Unit: In thousands of New Taiwan dollars and foreign currency

Name of the Investment Company	Name of the Investee Company	Location	Main businesses	Original investment amount		Holdings as of the end of the period			Investee company Profit or loss for the period	The investment income or loss recognized during the period	Remark
				End of the period	End of last year	Number of shares	Ratio	Carrying amount
Generalplus Technology Inc.	Generalplus International (Samoa) Inc.	Samoa	Investment	$ 599,999 (US$ 19,090)	$ 599,999 (US$ 19,090)	19,090,000	100%	$ 576,393	$ 8,808	$ 8,808	Subsidiary
Generalplus International (Samoa) Inc.	Generalplus (Mauritius) Inc.	Mauritius	Investment	599,999 (US$ 19,090)	599,999 (US$ 19,090)	19,090,000	100%	587,666	8,808	8,808	Subsidiary
Generalplus (Mauritius) Inc.	Generalplus Technology (HK) Co., Ltd.	Hong Kong	Marketing	12,258 (US$ 390)	12,258 (US$ 390)	-	100%	10,881	(247)	(247)	Subsidiary

Note 1: The original foreign currency is calculated based on the exchange rate as of December 31, 2025.
Note 2: For information related to the investee companies in mainland China, please refer to Table 4.

60 -

Generalplus Technology Inc.
Investment information in mainland China
From Jan. 1 to Dec. 31, 2025

Units: In NT$1,000, unless otherwise stated

Table 4

Mainland China Investee Company Name	Main businesses	Paid-in capital	Investment Method	Cumulative investment amount remitted from Taiwan in the beginning of current period	Remittance or Investment recoveries Amount		Cumulative investment amount remitted from Taiwan at the end of current period	Investee company Profit or loss for the period	Shareholding percentage of the Company's direct or indirect investments	Recognized Investment income during current period (Note 2)	Investments carrying value at end of current period	Investment income remitted back to Taiwan as of end of current period
					Export	Take back
Generalplus Technology (Shenzhen) Co., Ltd.	Development of IC product applications, sales, after-sales service, and market research and survey	$ 587,741 (US$ 18,700)	(Note 1)	$ 587,741 (US$ 18,700)	$ -	$ -	$ 587,741 (US$ 18,700)	$ 9,055	100%	$ 9,055	$ 576,764	$ -
Cumulative amount of investment from Taiwan to China at the end of the period	Investment amount approved by the Investment Review Committee of MOEA	Investments amount limit in mainland China according to the regulations of the Investment Review Committee of MOEA. (60% of the net asset value)
---	---	---
$ 587,741 (US$18,700)	$ 587,741 (US$18,700)	$1,268,000

Note 1: Investment in mainland China can be made through establishing a company in a third country and then investing in a company in China.
Note 2: The original foreign currency is calculated based on the exchange rate as of December 31, 2025.

61 -

Generalplus Technology Inc.

The following significant transactions with Mainland China investees, directly or indirectly through third parties, and their prices, payment terms, unrealized gains or losses, and other related information

From Jan. 1 to Dec. 31, 2025

Table 5
Unit: NT$1,000

Name of investee company in Mainland China	Type of transaction	Research and development fees - management and technical support service fees, sales revenue		Price	Transaction terms		Other accounts payable - related parties, accounts and notes receivable		Unrealized gains or losses	Remark
		Amount	%		Payment terms	Comparison with general transactions	Amount	%
Generalplus Technology (Shenzhen) Co., Ltd.	Sales revenue	$ 101,029	5.00%	Priced according to contract terms	In accordance with mutually agreed terms	No other comparable transactions available	$ 10,872	3.09%	$ 11,275	None
	Expenses for commissioned development and support services	60,713	14.28%	Priced according to contract terms	In accordance with mutually agreed terms	No other comparable transactions available	15,362	89.09%	-	None

62 -

63 -

§STATEMENTS OF MAJOR ACCOUNTING ITEMS§

ITEM	REFERENCE
Statements of assets, liabilities, and equity items:
Statements of cash and cash equivalents	Table 1
Statement of financial assets measured at fair value through profit or loss - current	Table 2
Statement of accounts receivable	Table 3
Statement of inventories	Table 4
Statement of other current assets	Note 16
Statement of financial assets measured at amortized cost are assets – non-current	Note 8
Statement of investment accounted for using the equity method	Table 5
Statement of changes in property, plant and equipment	Note 13
Statement of changes in accumulated depreciation of property, plant and equipment	Note 13
Statement of changes in right-of-use assets	Table 6
Statement of changes in accumulated depreciation of right-of-use assets	Table 6
Statement of changes in intangible assets	Note 15
Statement of deferred tax assets	Note 24
Statement of other non-current assets	Note 16
Statement of Short-term loans	Table 7
Statement of accounts payable	Table 8
Statement of lease liabilities	Table 9
Statement of other current liabilities	Note 19
Statements of profit or loss items:
Statement of operating revenue	Table 10
Statement of operating costs	Table 11
Statement of operating expenses	Table 12
Statement of finance costs	Note 23
Summary statement of current period employee benefits, depreciation, depletion and amortization expenses by function	Table 13

Generalplus Technology Inc.
Statements of cash and cash equivalents
Dec. 31, 2025

Units: In NT$1,000, unless otherwise stated

Table 1

Name	Amount
Bank deposits
Time deposits (Note 1)	$696,000
Demand deposit	79,373
Foreign currency demand deposits (Note 2)	29,896
Check deposit	4
	805,273
Cash on hand and working capital (Note 3)	3,058
Less: restricted assets (included in other non-current assets)	( 3,000)
Total	$805,331

Note 1: Including highly liquid cash equivalents that can be converted into fixed cash at any time with minimal value fluctuations, maturing successively before October 31, 2026 with interest rates ranging from $0.750\%$ to $1.675\%$.

Note 2: Including US$392,000 (exchange rate: US$1=NT$31.430), JPY$60,708,000 (exchange rate: JPY$1=NT$0.2008), and RMB$1,197,000 (exchange rate: RMB$1=NT$4.496).

Note 3: Including RMB$470,000 (exchange rate: RMB$1=NT$4.496), US$9,000 (exchange rate: US$1=NT$31.430), and HK$51,000 (exchange rate: HK$1=NT$4.038).

64 -

Generalplus Technology Inc.
Statement of financial assets measured at fair value through profit or loss - current
Dec. 31, 2025

Units: In NT$1,000, unless otherwise stated

Table 2

Financial instrument name	Shares	Acquisition cost	Fair value		Remark
			Net value	Total
Yuanta De-Li Money Market Fund	4,067,795	$ 70,000	$17.2494	$ 70,167	Note

Note: The fair value is calculated based on the net value of the fund as of the end of December 2025.

65 -

Generalplus Technology Inc.
Statement of notes and accounts receivable
Dec. 31, 2025

Table 3
Unit: NT$1,000

Customer name	Amount
Accounts receivable - related parties
Generalplus Technology (Shenzhen)	$ 10,872
Co.,Ltd.
Accounts receivable - others
A customer	145,167
B customer	50,700
C customer	36,928
D customer	21,744
E customer	19,185
Others (Note)	67,682
	341,406
Less : allowance for loss	-
Total	$352,278

Note: The balance of each account does not exceed 5% of the balance of this account.

66 -

Generalplus Technology Inc.
Statement of inventories
Dec. 31, 2025

Table 4
Unit: NT$1,000

Item	Amount
	Cost	Net realizable value
Finished goods and merchandise	$ 99,443	$ 147,935
Work-in-progress	180,601	455,766
Raw materials	186,039	635,148
Total	$ 466,083	$ 1,238,849

67 -

Generalplus Technology Inc.
Statement of changes in investments accounted for using the equity method
From Jan. 1 to Dec. 31, 2025

Units: In NT$1,000, unless otherwise stated

Table 5

Name of the Investment Company	Opening balance		Investment income from equity method valuation	Exchange difference on translation of the financial statements of foreign operations	Realized (unrealized) gross profit on sales	Ending balance			Equity value	Remark
	Shares	Amount				Shares	Shareholding %	Amount
Generalplus International (Samoa) Inc.	19,090,000	$ 566,585	$ 8,808	$ 2,299	($ 1,299)	19,090,000	100	$ 576,393	$ 587,668	Note

Note: Calculated based on the audited financial statements for the year 2025 by certified public accountants.

68 -

Generalplus Technology Inc.
Statement of changes in right-of-use assets and changes in accumulated depreciation of
right-of-use assets
From Jan. 1 to Dec. 31, 2025

Table 6	Units: In NT$1,000, unless otherwise stated
	Land
Cost
Balance on Jan. 1, 2025	$ 35,436
Lease modification	( 1,210)
Balance on Dec. 31, 2025	34,226
Accumulated depreciation
Balance on Jan. 1, 2025	6,077
Depreciation	974
Balance on Dec. 31, 2025	7,051
Dec. 31, 2025-net	$ 27,175

69 -

Generalplus Technology Inc.
Statement of short-term loans
Dec. 31, 2025

Units: In NT$1,000, unless otherwise stated

Table 7

Bank Name	Balance End of Year	Period	Range of Interest rate	Finance facilities	Pledged or Mortgaged
Revolving credit facility
Shanghai Commercial Bank Limited	$ 75,078	114.06.06~115.06.06	4.48%	USD$6,000,000	-
Mega International Commercial Bank Co., Ltd.	55,002	114.12.21~115.12.20	4.60%	NTD400,000	-
	$ 127,291

70 -

Generalplus Technology Inc.
Statement of accounts payable
Dec. 31, 2025

Table 8
Unit: NT$1,000

Supplier Name	Amount
Accounts Payable - Related Parties
Sunplus Technology Co., Ltd.	$ 67
Accounts Payable - Others
Supplier A	28,498
Supplier B	22,133
Supplier C	20,201
Supplier D	19,875
Supplier E	15,400
Supplier F	12,502
Others (Note)	32,563
	151,172
	$151,239

Note: The balance of each account does not exceed 5% of the balance of this account.

71 -

Generalplus Technology Inc.
Statement of lease liabilities
Dec. 31, 2025

Units: In NT$1,000, unless otherwise stated

Table 9

Item	Lease term	Discount rate	Amount
Land	From Jan. 2022 to Nov. 2053	2.39%	$ 29,312
Less: lease liabilities - current			( 748 )
Lease liabilities - non-current			$ 28,564

72 -

Generalplus Technology Inc.
Statement of operating revenue
From Jan. 1 to Dec. 31, 2025

Table 10
Unit: NT$1,000

Item	Quantity (in thousands)	Amount
Operating revenue
IC	339,707	$ 2,023,954
Others		22,056
		2,046,010
Sales returns and allowances		( 25,263 )
		$ 2,020,747

73 -

Generalplus Technology Inc.
Statement of operating costs
From Jan. 1 to Dec. 31, 2025

Table 11
Unit: NT$1,000

Item	Amount
Beginning inventory of raw materials	$ 214,414
Materials purchased in current year	945,248
Materials transferred to expenses	( 1,170 )
Ending inventory of raw materials	( 186,039 )
Materials consumed in current year	972,453
Manufacturing costs	306,223
Cost of goods manufactured	1,278,676
Beginning work in process	224,342
Work in process transferred to expenses	( 6,574 )
Ending work in process	( 180,601 )
Cost of goods produced	1,315,843
Beginning finished goods and merchandise	81,269
Goods purchased in current year	43,347
Goods transferred to expenses and others	731
Ending finished goods and merchandise	( 99,443 )
Operating costs	$ 1,341,747

74 -

Generalplus Technology Inc.
Statement of operating expenses
From Jan. 1 to Dec. 31, 2025

Table 12
Unit: NT$1,000

Item	Marketing expenses	Administrative expenses	Research and development expenses
Royalty expenses	$ 25,164	$ -	$ -
Payroll expenses	19,541	44,258	228,160
Commission expenses	11,863	-	-
Professional service fees	11,017	9,407	-
Depreciation expenses	444	3,395	34,376
Amortization expenses	182	152	32,768
Miscellaneous expenses	32	11,831	524
Management and technical support service fees	-	504	60,713
Other expenses(Note)	7,402	22,399	68,652
	$ 75,645	$ 91,946	$ 425,193

Note: The balance of each account does not exceed 5% of the balance of this account.

75 -

Generalplus Technology Inc.
Summary statement of current period employee benefits, depreciation, depletion and amortization expenses by function
From Jan. 1 to Dec. 31, 2025 and from Jan. 1 to Dec. 31, 2024
Table 13
Unit: NT$1,000

	2025			2024
	Classified as operating costs	Classified as Operating expenses	Total	Classified as operating costs	Classified as Operating expenses	Total
Employee benefits
Salary expenses	$ 47,069	$ 289,729	$ 336,798	$ 46,244	$ 346,419	$ 392,663
Labor and health insurance costs	4,098	22,612	26,710	3,968	23,710	27,678
Pension costs	2,439	14,326	16,765	2,387	14,555	16,942
Compensation for directors	-	2,230	2,230	-	3,755	3,755
Other employee benefits	1,569	7,562	9,131	1,434	8,123	9,557
	$ 55,175	$ 336,459	$ 391,634	$ 54,033	$ 396,562	$ 450,595
Depreciation expense	$ 4,730	$ 38,215	$ 42,945	$ 3,615	$ 43,481	$ 47,096
Amortization expense	$ 754	$ 33,102	$ 33,856	$ -	$ 24,618	$ 24,618

Note:

1: The Company had 226 employees in the current year and 230 employees in the previous year, including 6 and 6 non-executive directors, respectively.

2: (1) The average employee welfare expense for this year was NT$1,770 thousand [(total employee welfare expense for this year minus total director compensation) / (total number of employees for this year minus number of non-executive directors)].

The average employee welfare expense for the previous year was NT$1,995 thousand [(total employee welfare expense for the previous year minus total director compensation) / (total number of employees for the previous year minus number of non-executive directors)].

(2) The average employee salary expense for this year was NT$1,531 thousand [total salary expense for this year / (total number of employees for this year minus number of non-executive directors)].

The average employee salary expense for the previous year was NT$1,753 thousand [total salary expense for the previous year / (total number of employees for the previous year minus number of non-executive directors)].

(3) The adjustment and variation of the average employee salary expense is (12.66)% [(average employee salary expense for this year minus average employee salary expense for the previous year) / average employee salary expense for the previous year].

(4) The Company established an audit committee in the fiscal year of 2012, so there was no supervisor for the fiscal years of 2025 and 2024.

(5) Please describe the Company's compensation policy (including for directors, executives, and employees).

A. According to the Company's articles of association, no more than 1.5% should be allocated for director compensation. According to Article 15-2 of the Company's articles of association, "When the directors of the Company perform their duties, the Company may pay them compensation regardless of whether the Company's operations are profitable or not. The amount of the compensation shall be determined by the board of directors in reference to the usual level of compensation in the industry. When the Company has profits, compensation shall be distributed in accordance with the provisions of Article 26 of the articles of

76 -

association.” Taking into account the current operating scale and the Company’s current operating conditions, the policy and establishment of independent director compensation paid by the Company are positively correlated with the Company’s operating performance and future risk.

B. The total compensation for the president and vice president includes salary, bonuses, and employee compensation, which are determined by reference to the industry’s standard for similar positions and responsibilities. The policy and procedures for determining the compensation paid to the president and vice president are positively correlated with the Company’s operating performance.

C. According to the Company’s articles of association, no less than 1% should be allocated for employee compensation. No less than 10% of the employee compensation appropriated for the current year shall be distributed to non-management employees. The Company has formulated a “Salary Management Method” to provide diverse and competitive salary, welfare, and reward plans. In order to encourage employees to grow together with the Company, employee compensation is disbursed annually based on the Company’s operating performance and the employee’s contribution, as well as their achievement of goals.

77 -

AI assistant

Generalplus Annual Report 2025

52447_rns_2026-04-30_b7c8ee19-49f4-48b2-a9d6-9a9757938510.pdf

Audit opinion

Basis for the audit opinion

Key audit matters

Revenue from specific products

Responsibilities of management and directors for the parent company only financial statements

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

Notices to Readers

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Statement of Compliance

(2) Basis of Preparation

(3) Standard in determining whether the asset or liability are current or non-current

12. INVESTMENT ACCOUNTED FOR USING THE EQUITY METHOD

13. PROPERTY, PLANT AND EQUIPMENT

14. LEASE AGREEMENT

(1) Right-of-use assets

(2) Lease liabilities

(3) Important Tenant Activities and Terms

24. INCOME TAX FOR CONTINUING OPERATIONS

(1) Income tax recognized in profit or losses

26. GOVERNMENT ASSISTANCE

27. CAPITAL RISK MANAGEMENT

28. FINANCIAL INSTRUMENTS

Sensitivity analysis

(2) Interest rate risk

3. Liquidity risk

(1) Liquidity and interest rate risk table of non-derivative financial liabilities

32. INFORMATION ON FOREIGN CURRENCY ASSETS AND LIABILITIES WITH SIGNIFICANT IMPACT

§STATEMENTS OF MAJOR ACCOUNTING ITEMS§

AI assistant

Generalplus — Annual Report 2025

52447_rns_2026-04-30_b7c8ee19-49f4-48b2-a9d6-9a9757938510.pdf

Audit opinion

Basis for the audit opinion

Key audit matters

Revenue from specific products

Responsibilities of management and directors for the parent company only financial statements

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

Notices to Readers

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Statement of Compliance

(2) Basis of Preparation

(3) Standard in determining whether the asset or liability are current or non-current

12. INVESTMENT ACCOUNTED FOR USING THE EQUITY METHOD

13. PROPERTY, PLANT AND EQUIPMENT

14. LEASE AGREEMENT

(1) Right-of-use assets

(2) Lease liabilities

(3) Important Tenant Activities and Terms

24. INCOME TAX FOR CONTINUING OPERATIONS

(1) Income tax recognized in profit or losses

26. GOVERNMENT ASSISTANCE

27. CAPITAL RISK MANAGEMENT

28. FINANCIAL INSTRUMENTS

Sensitivity analysis

(2) Interest rate risk

3. Liquidity risk

(1) Liquidity and interest rate risk table of non-derivative financial liabilities

32. INFORMATION ON FOREIGN CURRENCY ASSETS AND LIABILITIES WITH SIGNIFICANT IMPACT

§STATEMENTS OF MAJOR ACCOUNTING ITEMS§

More from Generalplus

Generalplus Annual Report 2025